Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 65 - Sales and Use Tax › Subchapter 13 - Sales and Use Tax Exemptions › Part 29 - MANUFACTURING › Section 710:65-13-150.1 - Manufacturing exemption; taxable and exempt transactions

Current through Vol. 41, No. 20, July 1, 2024
(a)
Definitions.
The following
				  words and terms, when used in this Section, shall have the following meaning,
				  unless the context clearly indicates otherwise:
(1)
"Administration"
means
				  activities performed in the areas of general management, communications,
				  security, employee training, personnel administration, including time-keeping,
				  general accounting and purchasing, employee benefit activities and employee
				  recognition, legal services, public relations, and the establishment,
				  maintenance, billing and collection of accounts.
(2)
"Distribution"
means those
				  activities involved in the movement of manufactured items by vehicles,
				  aircraft, watercraft, railroads or pipelines from a manufacturing site to a
				  customer's location.
(3)
"Incidental use"
means that the property or service is used
				  infrequently or for a minor portion of the total time it is used.
(4)
"Manufacturing"
means and includes the activity of
				  converting or conditioning tangible personal property by changing the form,
				  composition, or quality of character of some existing material or materials,
				  including natural resources, by procedures commonly regarded by the average
				  person as manufacturing, compounding, processing or assembling, into a material
				  or materials with a different form or use.
				  "
Manufacturing
" does not include extractive
				  industrial activities such as mining, quarrying, logging, and drilling for oil,
				  gas and water, nor oil and gas field processes, such as natural pressure
				  reduction, mechanical separation, heating, cooling, dehydration and
				  compression
. [68 O.S.S § 1352(14)]
(5)
"Manufacturing
				  operation"
means the designing, manufacturing, compounding,
				  processing, assembling, warehousing, or preparing of articles for sale as
				  tangible personal property. A manufacturing operation begins at the point where
				  the materials enter the manufacturing site and ends at the point where a
				  finished product leaves the manufacturing site.
"Manufacturing
				  operation"
does not include administration, sales,
				  distribution, transportation, site construction, or site maintenance.
				  Extractive activities and field processes shall not be deemed to be a part of a
				  manufacturing operation even when performed by a person otherwise engaged in
				  manufacturing
. [68 O.S. §
											1352(15)
				  ]
(6)
"Manufacturing
				  site"
means a location where a manufacturing operation is
				  conducted, including a location consisting of one or more buildings or
				  structures in an area owned, leased, or controlled by a manufacturer.
[68 O.S. §
											1352(16)
				  ] It is not required that the building or structures owned, leased, or
				  controlled by a manufacturer be located on a single tract of land or on
				  contiguous tracts of land.
(7)
"Predominant or predominantly"
means the most frequent or for the
				  most part.
(8)
"Sales"
means the activities involved in selling a manufacturer's goods to others, and
				  includes advertising or marketing, printing, preparation, and distribution of
				  catalogs and flyers, and product exhibition and promotion.
(9)
"Site construction"
means
				  the construction of buildings and other structures and improvements to real
				  property. The term includes land preparation, new construction, reconstruction,
				  remodeling, renovation, repair, upgrading and making alterations and additions
				  to the real property, whether the work is done by the manufacturer or by other
				  firms.
(10)
"Site
				  maintenance"
means the provision of facilities support services as
				  defined in the North American Industry Classification System, Code 561210.
"Site maintenance"
does not include items used in the
				  manufacturing operation, as defined in this Section, or in waste disposal
				  activities resulting from the manufacturing operations.
(11)
"Transportation"
means to
				  move or carry tangible personal property to a manufacturing site, prior to the
				  time it enters into the manufacturing process, and to move or carry, tangible
				  personal property from a manufacturing site, after such property leaves the
				  manufacturing operation. The term "transportation" includes the purchase,
				  maintenance, repair, overhaul, rebuilding, storage and operation of vehicles
				  and transportation equipment.