Bill Number: OK51RHB 1001 Date: 02-22-2007
HOUSE FLOOR VERSION
THE HOUSE OF REPRESENTATIVES
1 Monday, February 26, 2007
2 Committee Substitute for
3 House Bill No. 1001
4 COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 1001 - By: CAREY of
5 the House and ANDERSON of the Senate.
6 ( Revenue and taxation - Oklahoma sales tax - sales tax
7 exemptions - effective date emergency )
8 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
9 SECTION 1. AMENDATORY 68 O.S. 2001, Section 1356, as last
10 amended by Section 2, Chapter 44, 2nd Extraordinary Session, O.S.L.
11 2006 (68 O.S. Supp. 2005, Section 1356), is amended to read as
12 follows:
13 Section 1356. Exemptions - Governmental and nonprofit
14 entities.
15 There are hereby specifically exempted from the tax levied by
16 Section 1350 et seq. of this title:
17 1. Sale of tangible personal property or services to the
18 United States government or to the State of Oklahoma, any political
19 subdivision of this state or any agency of a political subdivision
20 of this state; provided, all sales to contractors in connection with
21 the performance of any contract with the United States government,
22 State of Oklahoma or any of its political subdivisions shall not be
23 exempted from the tax levied by Section 1350 et seq. of this title,
24 except as hereinafter provided;
1
1 2. Sales of property to agents appointed by or under contract
2 with agencies or instrumentalities of the United States government
3 if ownership and possession of such property transfers immediately
4 to the United States government;
5 3. Sales of property to agents appointed by or under contract
6 with a political subdivision of this state if the sale of such
7 property is associated with the development of a qualified federal
8 facility, as provided in the Oklahoma Federal Facilities Development
9 Act, and if ownership and possession of such property transfers
10 immediately to the political subdivision or the state;
11 4. Sales made directly by county, district or state fair
12 authorities of this state, upon the premises of the fair authority,
13 for the sole benefit of the fair authority or sales of admission
14 tickets to such fairs or fair events at any location in the state
15 authorized by county, district or state fair authorities; provided,
16 the exemption provided by this paragraph for admission tickets to
17 fair events shall apply only to any portion of the admission price
18 that is retained by or distributed to the fair authority. As used
19 in this paragraph, fair event shall be limited to an event held on
20 the premises of the fair authority in conjunction with and during
21 the time period of a county, district or state fair;
22 5. Sale of food in cafeterias or lunch rooms of elementary
23 schools, high schools, colleges or universities which are operated
24 primarily for teachers and pupils and are not operated primarily for
25 the public or for profit;
26 6. Dues paid to fraternal, religious, civic, charitable or
27 educational societies or organizations by regular members thereof,
2
1 provided, such societies or organizations operate under what is
2 commonly termed the lodge plan or system, and provided such
3 societies or organizations do not operate for a profit which inures
4 to the benefit of any individual member or members thereof to the
5 exclusion of other members and dues paid monthly or annually to
6 privately owned scientific and educational libraries by members
7 sharing the use of services rendered by such libraries with students
8 interested in the study of geology, petroleum engineering or related
9 subjects;
10 7. Sale of tangible personal property or services to or by
11 churches, except sales made in the course of business for profit or
12 savings, competing with other persons engaged in the same or a
13 similar business or sale of tangible personal property or services
14 by an organization exempt from federal income tax pursuant to
15 Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
16 made on behalf of or at the request of a church or churches if the
17 sale of such property is conducted not more than once each calendar
18 year for a period not to exceed three (3) days by the organization
19 and proceeds from the sale of such property are used by the church
20 or churches or by the organization for charitable purposes;
21 8. The amount of proceeds received from the sale of admission
22 tickets which is separately stated on the ticket of admission for
23 the repayment of money borrowed by any accredited state-supported
24 college or university or any public trust of which a county in this
25 state is the beneficiary, for the purpose of constructing or
26 enlarging any facility to be used for the staging of an athletic
27 event, a theatrical production, or any other form of entertainment,
3
1 edification or cultural cultivation to which entry is gained with a
2 paid admission ticket. Such facilities include, but are not limited
3 to, athletic fields, athletic stadiums, field houses, amphitheaters
4 and theaters. To be eligible for this sales tax exemption, the
5 amount separately stated on the admission ticket shall be a
6 surcharge which is imposed, collected and used for the sole purpose
7 of servicing or aiding in the servicing of debt incurred by the
8 college or university to effect the capital improvements
9 hereinbefore described;
10 9. Sales of tangible personal property or services to the
11 council organizations or similar state supervisory organizations of
12 the Boy Scouts of America, Girl Scouts of U.S.A. and the Campfire
13 Boys and Girls;
14 10. Sale of tangible personal property or services to any
15 county, municipality, rural water district, public school district,
16 the institutions of The Oklahoma State System of Higher Education,
17 the Grand River Dam Authority, the Northeast Oklahoma Public
18 Facilities Authority, the Oklahoma Municipal Power Authority, City
19 of Tulsa-Rogers County Port Authority, Muskogee City-County Port
20 Authority, the Oklahoma Department of Veterans Affairs, the Broken
21 Bow Economic Development Authority, Ardmore Development Authority,
22 Durant Industrial Authority, Oklahoma Ordnance Works Authority or to
23 any person with whom any of the above-named subdivisions or agencies
24 of this state has duly entered into a public contract pursuant to
25 law, necessary for carrying out such public contract or to any
26 subcontractor to such a public contract. Any person making
27 purchases on behalf of such subdivision or agency of this state
4
1 shall certify, in writing, on the copy of the invoice or sales
2 ticket to be retained by the vendor that the purchases are made for
3 and on behalf of such subdivision or agency of this state and set
4 out the name of such public subdivision or agency. Any person who
5 wrongfully or erroneously certifies that purchases are for any of
6 the above-named subdivisions or agencies of this state or who
7 otherwise violates this section shall be guilty of a misdemeanor and
8 upon conviction thereof shall be fined an amount equal to double the
9 amount of sales tax involved or incarcerated for not more than sixty
10 (60) days or both;
11 11. Sales of tangible personal property or services to
12 private institutions of higher education and private elementary and
13 secondary institutions of education accredited by the State
14 Department of Education or registered by the State Board of
15 Education for purposes of participating in federal programs or
16 accredited as defined by the Oklahoma State Regents for Higher
17 Education which are exempt from taxation pursuant to the provisions
18 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
19 including materials, supplies, and equipment used in the
20 construction and improvement of buildings and other structures owned
21 by the institutions and operated for educational purposes.
22 Any person, firm, agency or entity making purchases on behalf
23 of any institution, agency or subdivision in this state, shall
24 certify in writing, on the copy of the invoice or sales ticket the
25 nature of the purchases, and violation of this paragraph shall be a
26 misdemeanor as set forth in paragraph 10 of this section;
27 12. Tuition and educational fees paid to private institutions
5
1 of higher education and private elementary and secondary
2 institutions of education accredited by the State Department of
3 Education or registered by the State Board of Education for purposes
4 of participating in federal programs or accredited as defined by the
5 Oklahoma State Regents for Higher Education which are exempt from
6 taxation pursuant to the provisions of the Internal Revenue Code, 26
7 U.S.C., Section 501(c)(3);
8 13. a. Sales of tangible personal property made by:
9 (1) a public school,
10 (2) a private school offering instruction for grade
11 levels kindergarten through twelfth grade,
12 (3) a public school district,
13 (4) a public or private school board,
14 (5) a public or private school student group or
15 organization,
16 (6) a parent-teacher association or organization other
17 than as specified in subparagraph b of this paragraph, or
18 (7) public or private school personnel for purposes of
19 raising funds for the benefit of a public or private school, public
20 school district, public or private school board or public or private
21 school student group or organization, or
22 b. Sales of tangible personal property made by or to
23 nonprofit parent-teacher associations or organizations exempt from
24 taxation pursuant to the provisions of the Internal Revenue Code, 26
25 U.S.C., Section 501(c)(3).
26 The exemption provided by this paragraph for sales made by a
27 public or private school shall be limited to those public or private
6
1 schools accredited by the State Department of Education or
2 registered by the State Board of Education for purposes of
3 participating in federal programs. Sale of tangible personal
4 property in this paragraph shall include sale of admission tickets
5 and concessions at athletic events;
6 14. Sales of tangible personal property by:
7 a. local 4-H clubs,
8 b. county, regional or state 4-H councils,
9 c. county, regional or state 4-H committees,
10 d. 4-H leader associations,
11 e. county, regional or state 4-H foundations, and
12 f. authorized 4-H camps and training centers.
13 The exemption provided by this paragraph shall be limited to
14 sales for the purpose of raising funds for the benefit of such
15 organizations. Sale of tangible personal property exempted by this
16 paragraph shall include sale of admission tickets;
17 15. The first Seventy-five Thousand Dollars ($75,000.00) each
18 year from sale of tickets and concessions at athletic events by each
19 organization exempt from taxation pursuant to the provisions of the
20 Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
21 16. Items or services which are subsequently given away by
22 the Oklahoma Tourism and Recreation Department as promotional items
23 pursuant to Section 1834 of Title 74 of the Oklahoma Statutes;
24 17. Sales of tangible personal property or services to fire
25 departments organized pursuant to Section 592 of Title 18 of the
26 Oklahoma Statutes which items are to be used for the purposes of the
27 fire department. Any person making purchases on behalf of any such
7
1 fire department shall certify, in writing, on the copy of the
2 invoice or sales ticket to be retained by the vendor that the
3 purchases are made for and on behalf of such fire department and set
4 out the name of such fire department. Any person who wrongfully or
5 erroneously certifies that the purchases are for any such fire
6 department or who otherwise violates the provisions of this section
7 shall be deemed guilty of a misdemeanor and upon conviction thereof,
8 shall be fined an amount equal to double the amount of sales tax
9 involved or incarcerated for not more than sixty (60) days, or both;
10 18. Complimentary or free tickets for admission to places of
11 amusement, sports, entertainment, exhibition, display or other
12 recreational events or activities which are issued through a box
13 office or other entity which is operated by a state institution of
14 higher education with institutional employees or by a municipality
15 with municipal employees;
16 19. The first Fifteen Thousand Dollars ($15,000.00) each year
17 from sales of tangible personal property by fire departments
18 organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
19 for the purposes of raising funds for the benefit of the fire
20 department. Fire departments selling tangible personal property for
21 the purposes of raising funds shall be limited to no more than six
22 (6) days each year to raise such funds in order to receive the
23 exemption granted by this paragraph;
24 20. Sales of tangible personal property or services to any
25 Boys & Girls Clubs of America affiliate in this state which is not
26 affiliated with the Salvation Army and which is exempt from taxation
27 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
8
1 Section 501(c)(3);
2 21. Sales of tangible personal property or services to any
3 organization, which takes court-adjudicated juveniles for purposes
4 of rehabilitation, and which is exempt from taxation pursuant to the
5 provisions of the Internal Revenue Code, 26 U.S.C., Section
6 501(c)(3), provided that at least fifty percent (50%) of the
7 juveniles served by such organization are court adjudicated and the
8 organization receives state funds in an amount less than ten percent
9 (10%) of the annual budget of the organization;
10 22. Sales of tangible personal property or services to:
11 a. any federally qualified community health center as
12 defined in Section 254c of Title 42 of the United States Code,
13 b. any migrant health center as defined in Section 254b
14 of Title 42 of the United States Code,
15 c. any clinic receiving disbursements of state monies
16 from the Indigent Health Care Revolving Fund pursuant to the
17 provisions of Section 66 of Title 56 of the Oklahoma Statutes,
18 d. any community based health center which meets all of
19 the following criteria:
20 (1) provides primary care services at no cost to the
21 recipient, and
22 (2) is exempt from taxation pursuant to the provisions of
23 Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C., Section
24 501(c)(3), and
25 e. any community mental health center as defined in
26 Section 3-302 of Title 43A of the Oklahoma Statutes;
27 23. Dues or fees, including free or complimentary dues or
9
1 fees which have a value equivalent to the charge that could have
2 otherwise been made, to YMCAs, YWCAs or municipally-owned recreation
3 centers for the use of facilities and programs;
4 24. The first Fifteen Thousand Dollars ($15,000.00) each year
5 from sales of tangible personal property or services to or by a
6 cultural organization established to sponsor and promote
7 educational, charitable and cultural events for disadvantaged
8 children, and which organization is exempt from taxation pursuant to
9 the provisions of the Internal Revenue Code, 26 U.S.C., Section
10 501(c)(3);
11 25. Sales of tangible personal property or services to
12 museums or other entities which have been accredited by the American
13 Association of Museums. Any person making purchases on behalf of
14 any such museum or other entity shall certify, in writing, on the
15 copy of the invoice or sales ticket to be retained by the vendor
16 that the purchases are made for and on behalf of such museum or
17 other entity and set out the name of such museum or other entity.
18 Any person who wrongfully or erroneously certifies that the
19 purchases are for any such museum or other entity or who otherwise
20 violates the provisions of this paragraph shall be deemed guilty of
21 a misdemeanor and, upon conviction thereof, shall be fined an amount
22 equal to double the amount of sales tax involved or incarcerated for
23 not more than sixty (60) days, or by both such fine and
24 incarceration;
25 26. Sales of tickets for admission by any museum accredited
26 by the American Association of Museums. In order to be eligible for
27 the exemption provided by this paragraph, an amount equivalent to
10
1 the amount of the tax which would otherwise be required to be
2 collected pursuant to the provisions of Section 1350 et seq. of this
3 title shall be separately stated on the admission ticket and shall
4 be collected and used for the sole purpose of servicing or aiding in
5 the servicing of debt incurred by the museum to effect the
6 construction, enlarging or renovation of any facility to be used for
7 entertainment, edification or cultural cultivation to which entry is
8 gained with a paid admission ticket;
9 27. Sales of tangible personal property or services occurring
10 on or after June 1, 1995, to children's homes which are supported or
11 sponsored by one or more churches, members of which serve as
12 trustees of the home;
13 28. Sales of tangible personal property or services to the
14 organization known as the Disabled American Veterans, Department of
15 Oklahoma, Inc., and subordinate chapters thereof;
16 29. Sales of tangible personal property or services to youth
17 camps which are supported or sponsored by one or more churches,
18 members of which serve as trustees of the organization;
19 30. Transfer of tangible personal property made pursuant to
20 Section 3226 of Title 63 of the Oklahoma Statutes by the University
21 Hospitals Trust;
22 31. Sales of tangible personal property or services to a
23 municipality, county or school district pursuant to a lease or
24 lease-purchase agreement executed between the vendor and a
25 municipality, county or school district. A copy of the lease or
26 lease-purchase agreement shall be retained by the vendor;
27 32. Sales of tangible personal property or services to any
11
1 spaceport user, as defined in the Oklahoma Space Industry
2 Development Act;
3 33. The sale, use, storage, consumption, or distribution in
4 this state, whether by the importer, exporter, or another person, of
5 any satellite or any associated launch vehicle, including components
6 of, and parts and motors for, any such satellite or launch vehicle,
7 imported or caused to be imported into this state for the purpose of
8 export by means of launching into space. This exemption provided by
9 this paragraph shall not be affected by:
10 a. the destruction in whole or in part of the satellite
11 or launch vehicle,
12 b. the failure of a launch to occur or be successful, or
13 c. the absence of any transfer or title to, or possession
14 of, the satellite or launch vehicle after launch;
15 34. The sale, lease, use, storage, consumption, or
16 distribution in this state of any space facility, space propulsion
17 system or space vehicle, satellite, or station of any kind
18 possessing space flight capacity, including components thereof;
19 35. The sale, lease, use, storage, consumption, or
20 distribution in this state of tangible personal property, placed on
21 or used aboard any space facility, space propulsion system or space
22 vehicle, satellite, or station possessing space flight capacity,
23 which is launched into space, irrespective of whether such tangible
24 property is returned to this state for subsequent use, storage, or
25 consumption in any manner;
26 36. The sale, lease, use, storage, consumption, or
27 distribution in this state of tangible personal property meeting the
12
1 definition of "section 38 property" as defined in Sections
2 48(a)(1)(A) and (B)(i) of the Internal Revenue Code of 1986, that is
3 an integral part of and used primarily in support of space flight;
4 however, section 38 property used in support of space flight shall
5 not include general office equipment, any boat, mobile home, motor
6 vehicle, or other vehicle of a class or type required to be
7 registered, licensed, titled, or documented in this state or by the
8 United States government, or any other property not specifically
9 suited to supporting space activity. The term "in support of space
10 flight", for purposes of this paragraph, means the altering,
11 monitoring, controlling, regulating, adjusting, servicing, or
12 repairing of any space facility, space propulsion systems or space
13 vehicle, satellite, or station possessing space flight capacity,
14 including the components thereof;
15 37. The purchase or lease of machinery and equipment for use
16 at a fixed location in this state, which is used exclusively in the
17 manufacturing, processing, compounding, or producing of any space
18 facility, space propulsion system or space vehicle, satellite, or
19 station of any kind possessing space flight capacity. Provided, the
20 exemption provided for in this paragraph shall not be allowed unless
21 the purchaser or lessee signs an affidavit stating that the item or
22 items to be exempted are for the exclusive use designated herein.
23 Any person furnishing a false affidavit to the vendor for the
24 purpose of evading payment of any tax imposed by Section 1354 of
25 this title shall be subject to the penalties provided by law. As
26 used in this paragraph, "machinery and equipment" means "section 38
27 property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
13
1 Internal Revenue Code of 1986, which is used as an integral part of
2 the manufacturing, processing, compounding, or producing of items of
3 tangible personal property. Such term includes parts and
4 accessories only to the extent that the exemption thereof is
5 consistent with the provisions of this paragraph;
6 38. The amount of a surcharge or any other amount which is
7 separately stated on an admission ticket which is imposed, collected
8 and used for the sole purpose of constructing, remodeling or
9 enlarging facilities of a public trust having a municipality or
10 county as its sole beneficiary;
11 39. Sales of tangible personal property or services which are
12 directly used in or for the benefit of a state park in this state,
13 which are made to an organization which is exempt from taxation
14 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
15 Section 501(c)(3) and which is organized primarily for the purpose
16 of supporting one or more state parks located in this state;
17 40. The sale, lease or use of parking privileges by an
18 institution of The Oklahoma State System of Higher Education;
19 41. Sales of tangible personal property or services for use
20 on campus or school construction projects for the benefit of
21 institutions of The Oklahoma State System of Higher Education,
22 private institutions of higher education accredited by the Oklahoma
23 State Regents for Higher Education or any public school or school
24 district when such projects are financed by or through the use of
25 nonprofit entities which are exempt from taxation pursuant to the
26 provisions of the Internal Revenue Code, 26 U.S.C., Section
27 501(c)(3);
14
1 42. Sales of tangible personal property or services by an
2 organization which is exempt from taxation pursuant to the
3 provisions of the Internal Revenue Code, 26 U.S.C., Section
4 501(c)(3), in the course of conducting a national championship
5 sports event, but only if all or a portion of the payment in
6 exchange therefor would qualify as the receipt of a qualified
7 sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
8 Section 513(i). Sales exempted pursuant to this paragraph shall be
9 exempt from all Oklahoma sales, use, excise and gross receipts
10 taxes;
11 43. Sales of tangible personal property or services to or by
12 an organization which:
13 a. is exempt from taxation pursuant to the provisions of
14 the Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
15 b. is affiliated with a comprehensive university within
16 The Oklahoma State System of Higher Education, and
17 c. has been organized primarily for the purpose of
18 providing education and teacher training and conducting events
19 relating to robotics;
20 44. The first Fifteen Thousand Dollars ($15,000.00) each year
21 from sales of tangible personal property to or by youth athletic
22 teams which are part of an athletic organization exempt from
23 taxation pursuant to the provisions of the Internal Revenue Code, 26
24 U.S.C., Section 501(c)(4), for the purposes of raising funds for the
25 benefit of the team;
26 45. Sales of tickets for admission to a collegiate athletic
27 event that is held in a facility owned or operated by a municipality
15
1 or a public trust of which the municipality is the sole beneficiary
2 and that actually determines or is part of a tournament or
3 tournament process for determining a conference tournament
4 championship, a conference championship, or a national championship;
5 46. Sales of tangible personal property or services to or by
6 an organization which is exempt from taxation pursuant to the
7 provisions of the Internal Revenue Code, 26 U.S.C., Section
8 501(c)(3) and is operating the Oklahoma City National Memorial and
9 Museum, an affiliate of the National Park System;
10 47. Sales of tangible personal property or services to
11 organizations which are exempt from federal taxation pursuant to the
12 provisions of Section 501(c)(3) of the Internal Revenue Code, 26
13 U.S.C., Section 501(c)(3), the memberships of which are limited to
14 honorably discharged veterans, and which furnish financial support
15 to area veterans organizations to be used for the purpose of
16 constructing a memorial or museum;
17 48. Sales of tangible personal property or services on or
18 after January 1, 2003, to an organization which is exempt from
19 taxation pursuant to the provisions of the Internal Revenue Code, 26
20 U.S.C., Section 501(c)(3) that is expending monies received from a
21 private foundation grant in conjunction with expenditures of local
22 sales tax revenue to construct a local public library;
23 49. Sales of tangible personal property or services to a
24 state that borders this state or any political subdivision of that
25 state, but only to the extent that the other state or political
26 subdivision exempts or does not impose a tax on similar sales of
27 items to this state or a political subdivision of this state;
16
1 50. Effective July 1, 2005, sales of tangible personal
2 property or services to the Career Technology Student Organizations
3 under the direction and supervision of the Oklahoma Department of
4 Career and Technology Education;
5 51. Sales of tangible personal property to a public trust
6 having either a single city, town or county or multiple cities,
7 towns or counties or combination thereof as beneficiary or
8 beneficiaries or a nonprofit organization which is exempt from
9 taxation pursuant to the provisions of the Internal Revenue Code, 26
10 U.S.C., Section 501(c)(3) for the purpose of constructing
11 improvements to or expanding a hospital or nursing home owned and
12 operated by any such public trust or nonprofit entity prior to the
13 effective date of this act in counties with a population of less
14 than one hundred thousand (100,000) persons, according to the most
15 recent Federal Decennial Census. As used in this paragraph,
16 constructing improvements to or expanding shall not mean any
17 expense for routine maintenance or general repairs and shall require
18 a project cost of at least One Hundred Thousand Dollars
19 ($100,000.00). For purposes of this paragraph, sales made to a
20 contractor or subcontractor that enters into a contractual
21 relationship with a public trust or nonprofit entity as described by
22 this paragraph shall be considered sales made to the public trust or
23 nonprofit entity. The exemption authorized by this paragraph shall
24 be administered in the form of a refund from the sales tax revenues
25 apportioned pursuant to Section 1353 of this title and the vendor
26 shall be required to collect the sales tax otherwise applicable to
27 the transaction. The purchaser may apply for a refund of the sales
17
1 tax paid in the manner prescribed by this paragraph. Within thirty
2 (30) days after the end of each fiscal year, any purchaser that is
3 entitled to make application for a refund based upon the exempt
4 treatment authorized by this paragraph may file an application for
5 refund of the sales taxes paid during such preceding fiscal year.
6 The Tax Commission shall prescribe a form for purposes of making the
7 application for refund. The Tax Commission shall determine whether
8 or not the total amount of sales tax exemptions claimed by all
9 purchasers is equal to or less than Six Hundred Fifty Thousand
10 Dollars ($650,000.00). If such claims are less than or equal to
11 that amount, the Tax Commission shall make refunds to the purchasers
12 in the full amount of the documented and verified sales tax amounts.
13 If such claims by all purchasers are in excess of Six Hundred Fifty
14 Thousand Dollars ($650,000.00), the Tax Commission shall determine
15 the amount of each purchasers claim, the total amount of all claims
16 by all purchasers, and the percentage each purchasers claim amount
17 bears to the total. The resulting percentage determined for each
18 purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars
19 ($650,000.00) to determine the amount of refundable sales tax to be
20 paid to each purchaser. The pro rata refund amount shall be the
21 only method to recover sales taxes paid during the preceding fiscal
22 year and no balance of any sales taxes paid on a pro rata basis
23 shall be the subject of any subsequent refund claim pursuant to this
24 paragraph;
25 52. Effective July 1, 2006, sales of tangible personal
26 property or services to any organization which assists, trains,
27 educates, and provides housing for physically and mentally
18
1 handicapped persons and which is exempt from taxation pursuant to
2 the provisions of the Internal Revenue Code, 26 U.S.C., Section
3 501(c)(3) and that receives at least eighty-five percent (85%) of
4 its annual budget from state or federal funds. In order to receive
5 the benefit of the exemption authorized by this paragraph, the
6 taxpayer shall be required to make payment of the applicable sales
7 tax at the time of sale to the vendor in the manner otherwise
8 required by law. Notwithstanding any other provision of the
9 Oklahoma Uniform Tax Procedure Code to the contrary, the taxpayer
10 shall be authorized to file a claim for refund of sales taxes paid
11 that qualify for the exemption authorized by this paragraph for a
12 period of one (1) year after the date of the sale transaction. The
13 taxpayer shall be required to provide documentation as may be
14 prescribed by the Oklahoma Tax Commission in support of the refund
15 claim. The total amount of sales tax qualifying for exempt
16 treatment pursuant to this paragraph shall not exceed One Hundred
17 Seventy-five Thousand Dollars ($175,000.00) each fiscal year.
18 Claims for refund shall be processed in the order in which such
19 claims are received by the Oklahoma Tax Commission. If a claim
20 otherwise timely filed exceeds the total amount of refunds payable
21 for a fiscal year, such claim shall be barred;
22 53. The first Two Thousand Dollars ($2,000.00) each year of
23 sales of tangible personal property or services to, by, or for the
24 benefit of a qualified neighborhood watch organization that is
25 endorsed or supported by or working directly with a law enforcement
26 agency with jurisdiction in the area in which the neighborhood watch
27 organization is located. As used in this paragraph, qualified
19
1 neighborhood watch organization means an organization that is a
2 not-for-profit corporation under the laws of the State of Oklahoma
3 that was created to help prevent criminal activity in an area
4 through community involvement and interaction with local law
5 enforcement and which is one of the first two thousand organizations
6 which makes application to the Oklahoma Tax Commission for the
7 exemption after the effective date of this act;
8 54. Sales of tangible personal property to a nonprofit
9 organization, exempt from taxation pursuant to the provisions of the
10 Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized
11 primarily for the purpose of providing services to homeless persons
12 during the day and located in a metropolitan area with a population
13 in excess of five hundred thousand (500,000) persons according to
14 the latest Federal Decennial Census. The exemption authorized by
15 this paragraph shall be applicable to sales of tangible personal
16 property to a qualified entity occurring on or after January 1,
17 2005;
18 55. Sales of tangible personal property or services to or
19 by an organization which is exempt from taxation pursuant to the
20 provisions of the Internal Revenue Code, 26 U.S.C., Section
21 501(c)(3) [made during auction] for events the principal purpose
22 of which is to provide funding for the preservation of wetlands and
23 habitat for wild ducks;
24 56. Sales of tangible personal property or services to or
25 by an organization which is exempt from taxation pursuant to the
26 provisions of the Internal Revenue Code, 26 U.S.C., Section
27 501(c)(3) [made during auction] for events the principal purpose
20
1 of which is to provide funding for the preservation and conservation
2 of wild turkeys;
3 57. Sales of tangible personal property or services to an
4 organization which:
5 a. is exempt from taxation pursuant to the provisions of
6 the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), and
7 b. is part of a network of community-based, autonomous
8 member organizations that meets the following criteria:
9 (1) serves people with workplace disadvantages and
10 disabilities by providing job training and employment services, as
11 well as job placement opportunities and post-employment support,
12 (2) has locations in the United States and at least
13 twenty other countries,
14 (3) collects donated clothing and household goods to sell
15 in retail stores and provides contract labor services to business
16 and government, and
17 (4) provides documentation to the Oklahoma Tax Commission
18 that over seventy-five percent (75%) of its revenues are channeled
19 into employment, job training and placement programs and other
20 critical community services;
21 58. Sales of tickets made on or after September 21, 2005, and
22 complimentary or free tickets for admission issued on or after
23 September 21, 2005, which have a value equivalent to the charge that
24 would have otherwise been made, for admission to a professional
25 athletic event in which a team in the National Basketball
26 Association is a participant, which is held in a facility owned or
27 operated by a municipality, a county or a public trust of which a
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1 municipality or a county is the sole beneficiary, and sales of
2 tickets made on or after the effective date of this act, and
3 complimentary or free tickets for admission issued on or after the
4 effective date of this act, which have a value equivalent to the
5 charge that would have otherwise been made, for admission to a
6 professional athletic event in which a team in the National Hockey
7 League is a participant, which is held in a facility owned or
8 operated by a municipality, a county or a public trust of which a
9 municipality or a county is the sole beneficiary;
10 59. Sales of tickets for admission and complimentary or free
11 tickets for admission which have a value equivalent to the charge
12 that would have otherwise been made to a professional sporting event
13 involving ice hockey, baseball, basketball, football or arena
14 football, or soccer. As used in this paragraph, professional
15 sporting event means an organized athletic competition between
16 teams that are members of an organized league or association with
17 centralized management, other than a national league or national
18 association, that imposes requirements for participation in the
19 league upon the teams, the individual athletes or both, and which
20 uses a salary structure to compensate the athletes;
21 60. Sales of tickets for admission to an annual event
22 sponsored by an educational and charitable organization of women
23 which is exempt from taxation pursuant to the provisions of the
24 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its
25 mission promoting volunteerism, developing the potential of women
26 and improving the community through the effective action and
27 leadership of trained volunteers;
22
1 61. Sales of tangible personal property or services to an
2 organization, which is exempt from taxation pursuant to the
3 provisions of the Internal Revenue Code, 26 U.S.C., Section
4 501(c)(3), and which is itself a member of an organization which is
5 exempt from taxation pursuant to the provisions of the Internal
6 Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
7 organization is primarily engaged in advancing the purposes of its
8 member organizations through fundraising, public awareness or other
9 efforts for the benefit of its member organizations, and if the
10 member organization is primarily engaged either in providing
11 educational services and programs concerning health-related diseases
12 and conditions to individuals suffering from such health-related
13 diseases and conditions or their caregivers and family members or
14 support to such individuals, or in health-related research as to
15 such diseases and conditions, or both. In order to qualify for the
16 exemption authorized by this paragraph, the member nonprofit
17 organization shall be required to provide proof to the Oklahoma Tax
18 Commission of its membership status in the membership organization;
19 62. Sales of tangible personal property or services to or by
20 an organization which is part of a national volunteer womens
21 service organization dedicated to promoting patriotism, preserving
22 American history and securing better education for children and
23 which has at least 168,000 members in 3,000 chapters across the
24 United States;
25 63. Sales of tangible personal property or services to or by
26 a YWCA or YMCA organization which is part of a national nonprofit
27 community service organization working to meet the health and social
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1 service needs of its members across the United States; and
2 64. Sales of tangible personal property or services to or by
3 a veterans organization which is exempt from taxation pursuant to
4 the provisions of the Internal Revenue Code, 26 U.S.C., Section 501
5 (c)(19) and which is known as the Veterans of Foreign Wars of the
6 United States, Oklahoma Chapters.
7 SECTION 2. This act shall become effective July 1, 2007.
8 SECTION 3. It being immediately necessary for the
9 preservation of the public peace, health and safety, an emergency is
10 hereby declared to exist, by reason whereof this act shall take
11 effect and be in full force from and after its passage and approval.
12 COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET,
13 dated 2-22-07 - DO PASS, As Amended and Coauthored.
14 HB1001 HFLR- 2 -House of Representatives
15 UNDERLINED language denotes Amendments to present Statutes.
16 BOLD FACE CAPITALIZED language denotes Committee Amendments.
17 Strike thru language denotes deletion from present Statutes.
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