Bill Number: OK51RSB 393 Filed: 01-15-2007
Author: Rabon
STATE OF OKLAHOMA
1 1st Session of the 51st Legislature (2007)
2 SENATE BILL 393 By: Rabon
3 AS INTRODUCED
4 An Act relating to revenue and taxation; amending 68
5 O.S. 2001, Section 1356, as last amended by Section
6 2, Chapter 44, 2nd Extraordinary Session, O.S.L. 2006
7 (68 O.S. Supp. 2006, Section 1356), which relates to
8 sales tax; modifying certain exemption; providing
9 effective date; and declaring an emergency.
10 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
11 SECTION 1. AMENDATORY 68 O.S. 2001, Section 1356, as
12 last amended by Section 2, Chapter 44, 2nd Extraordinary Session,
13 O.S.L. 2006 (68 O.S. Supp. 2006, Section 1356), is amended to read
14 as follows:
15 Section 1356. Exemptions - Governmental and nonprofit
16 entities.
17 There are hereby specifically exempted from the tax levied by
18 Section 1350 et seq. of this title:
19 1. Sale of tangible personal property or services to the
20 United States government or to the State of Oklahoma, any political
21 subdivision of this state or any agency of a political subdivision
22 of this state; provided, all sales to contractors in connection with
23 the performance of any contract with the United States government,
24 State of Oklahoma or any of its political subdivisions shall not be
1
1 exempted from the tax levied by Section 1350 et seq. of this title,
2 except as hereinafter provided;
3 2. Sales of property to agents appointed by or under contract
4 with agencies or instrumentalities of the United States government
5 if ownership and possession of such property transfers immediately
6 to the United States government;
7 3. Sales of property to agents appointed by or under contract
8 with a political subdivision of this state if the sale of such
9 property is associated with the development of a qualified federal
10 facility, as provided in the Oklahoma Federal Facilities Development
11 Act, and if ownership and possession of such property transfers
12 immediately to the political subdivision or the state;
13 4. Sales made directly by county, district or state fair
14 authorities of this state, upon the premises of the fair authority,
15 for the sole benefit of the fair authority or sales of admission
16 tickets to such fairs or fair events at any location in the state
17 authorized by county, district or state fair authorities; provided,
18 the exemption provided by this paragraph for admission tickets to
19 fair events shall apply only to any portion of the admission price
20 that is retained by or distributed to the fair authority. As used
21 in this paragraph, fair event shall be limited to an event held on
22 the premises of the fair authority in conjunction with and during
23 the time period of a county, district or state fair;
24 5. Sale of food in cafeterias or lunch rooms of elementary
25 schools, high schools, colleges or universities which are operated
26 primarily for teachers and pupils and are not operated primarily for
27 the public or for profit;
2
1 6. Dues paid to fraternal, religious, civic, charitable or
2 educational societies or organizations by regular members thereof,
3 provided, such societies or organizations operate under what is
4 commonly termed the lodge plan or system, and provided such
5 societies or organizations do not operate for a profit which inures
6 to the benefit of any individual member or members thereof to the
7 exclusion of other members and dues paid monthly or annually to
8 privately owned scientific and educational libraries by members
9 sharing the use of services rendered by such libraries with students
10 interested in the study of geology, petroleum engineering or related
11 subjects;
12 7. Sale of tangible personal property or services to or by
13 churches, except sales made in the course of business for profit or
14 savings, competing with other persons engaged in the same or a
15 similar business or sale of tangible personal property or services
16 by an organization exempt from federal income tax pursuant to
17 Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
18 made on behalf of or at the request of a church or churches if the
19 sale of such property is conducted not more than once each calendar
20 year for a period not to exceed three (3) days by the organization
21 and proceeds from the sale of such property are used by the church
22 or churches or by the organization for charitable purposes;
23 8. The amount of proceeds received from the sale of admission
24 tickets which is separately stated on the ticket of admission for
25 the repayment of money borrowed by any accredited state-supported
26 college or university or any public trust of which a county in this
27 state is the beneficiary, for the purpose of constructing or
3
1 enlarging any facility to be used for the staging of an athletic
2 event, a theatrical production, or any other form of entertainment,
3 edification or cultural cultivation to which entry is gained with a
4 paid admission ticket. Such facilities include, but are not limited
5 to, athletic fields, athletic stadiums, field houses, amphitheaters
6 and theaters. To be eligible for this sales tax exemption, the
7 amount separately stated on the admission ticket shall be a
8 surcharge which is imposed, collected and used for the sole purpose
9 of servicing or aiding in the servicing of debt incurred by the
10 college or university to effect the capital improvements
11 hereinbefore described;
12 9. Sales of tangible personal property or services to the
13 council organizations or similar state supervisory organizations of
14 the Boy Scouts of America, Girl Scouts of U.S.A. and the Campfire
15 Boys and Girls;
16 10. Sale of tangible personal property or services to any
17 county, municipality, rural water district, public school district,
18 the institutions of The Oklahoma State System of Higher Education,
19 the Grand River Dam Authority, the Northeast Oklahoma Public
20 Facilities Authority, the Oklahoma Municipal Power Authority, City
21 of Tulsa-Rogers County Port Authority, Muskogee City-County Port
22 Authority, the Oklahoma Department of Veterans Affairs, the Broken
23 Bow Economic Development Authority, Ardmore Development Authority,
24 Durant Industrial Authority, Oklahoma Ordnance Works Authority or to
25 any person with whom any of the above-named subdivisions or agencies
26 of this state has duly entered into a public contract pursuant to
27 law, necessary for carrying out such public contract or to any
4
1 subcontractor to such a public contract. Any person making
2 purchases on behalf of such subdivision or agency of this state
3 shall certify, in writing, on the copy of the invoice or sales
4 ticket to be retained by the vendor that the purchases are made for
5 and on behalf of such subdivision or agency of this state and set
6 out the name of such public subdivision or agency. Any person who
7 wrongfully or erroneously certifies that purchases are for any of
8 the above-named subdivisions or agencies of this state or who
9 otherwise violates this section shall be guilty of a misdemeanor and
10 upon conviction thereof shall be fined an amount equal to double the
11 amount of sales tax involved or incarcerated for not more than sixty
12 (60) days or both;
13 11. Sales of tangible personal property or services to
14 private institutions of higher education and private elementary and
15 secondary institutions of education accredited by the State
16 Department of Education or registered by the State Board of
17 Education for purposes of participating in federal programs or
18 accredited as defined by the Oklahoma State Regents for Higher
19 Education which are exempt from taxation pursuant to the provisions
20 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
21 including materials, supplies, and equipment used in the
22 construction and improvement of buildings and other structures owned
23 by the institutions and operated for educational purposes.
24 Any person, firm, agency or entity making purchases on behalf
25 of any institution, agency or subdivision in this state, shall
26 certify in writing, on the copy of the invoice or sales ticket the
27 nature of the purchases, and violation of this paragraph shall be a
5
1 misdemeanor as set forth in paragraph 10 of this section;
2 12. Tuition and educational fees paid to private institutions
3 of higher education and private elementary and secondary
4 institutions of education accredited by the State Department of
5 Education or registered by the State Board of Education for purposes
6 of participating in federal programs or accredited as defined by the
7 Oklahoma State Regents for Higher Education which are exempt from
8 taxation pursuant to the provisions of the Internal Revenue Code, 26
9 U.S.C., Section 501(c)(3);
10 13. a. Sales of tangible personal property made by:
11 (1) a public school,
12 (2) a private school offering instruction for grade
13 levels kindergarten through twelfth grade,
14 (3) a public school district,
15 (4) a public or private school board,
16 (5) a public or private school student group or
17 organization,
18 (6) a parent-teacher association or organization other
19 than as specified in subparagraph b of this paragraph, or
20 (7) public or private school personnel for purposes of
21 raising funds for the benefit of a public or private school, public
22 school district, public or private school board or public or private
23 school student group or organization, or
24 b. Sales of tangible personal property made by or to
25 nonprofit parent-teacher associations or organizations exempt from
26 taxation pursuant to the provisions of the Internal Revenue Code, 26
27 U.S.C., Section 501(c)(3).
6
1 The exemption provided by this paragraph for sales made by a
2 public or private school shall be limited to those public or private
3 schools accredited by the State Department of Education or
4 registered by the State Board of Education for purposes of
5 participating in federal programs. Sale of tangible personal
6 property in this paragraph shall include sale of admission tickets
7 and concessions at athletic events;
8 14. Sales of tangible personal property by:
9 a. local 4-H clubs,
10 b. county, regional or state 4-H councils,
11 c. county, regional or state 4-H committees,
12 d. 4-H leader associations,
13 e. county, regional or state 4-H foundations, and
14 f. authorized 4-H camps and training centers.
15 The exemption provided by this paragraph shall be limited to
16 sales for the purpose of raising funds for the benefit of such
17 organizations. Sale of tangible personal property exempted by this
18 paragraph shall include sale of admission tickets;
19 15. The first Seventy-five Thousand Dollars ($75,000.00) each
20 year from sale of tickets and concessions at athletic events by each
21 organization exempt from taxation pursuant to the provisions of the
22 Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
23 16. Items or services which are subsequently given away by
24 the Oklahoma Tourism and Recreation Department as promotional items
25 pursuant to Section 1834 of Title 74 of the Oklahoma Statutes;
26 17. Sales of tangible personal property or services to fire
27 departments organized pursuant to Section 592 of Title 18 of the
7
1 Oklahoma Statutes which items are to be used for the purposes of the
2 fire department. Any person making purchases on behalf of any such
3 fire department shall certify, in writing, on the copy of the
4 invoice or sales ticket to be retained by the vendor that the
5 purchases are made for and on behalf of such fire department and set
6 out the name of such fire department. Any person who wrongfully or
7 erroneously certifies that the purchases are for any such fire
8 department or who otherwise violates the provisions of this section
9 shall be deemed guilty of a misdemeanor and upon conviction thereof,
10 shall be fined an amount equal to double the amount of sales tax
11 involved or incarcerated for not more than sixty (60) days, or both;
12 18. Complimentary or free tickets for admission to places of
13 amusement, sports, entertainment, exhibition, display or other
14 recreational events or activities which are issued through a box
15 office or other entity which is operated by a state institution of
16 higher education with institutional employees or by a municipality
17 with municipal employees;
18 19. The first Fifteen Thousand Dollars ($15,000.00) each year
19 from sales of tangible personal property by fire departments
20 organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
21 for the purposes of raising funds for the benefit of the fire
22 department. Fire departments selling tangible personal property for
23 the purposes of raising funds shall be limited to no more than six
24 (6) days each year to raise such funds in order to receive the
25 exemption granted by this paragraph;
26 20. Sales of tangible personal property or services to any
27 Boys & Girls Clubs of America affiliate in this state which is not
8
1 affiliated with the Salvation Army and which is exempt from taxation
2 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
3 Section 501(c)(3);
4 21. Sales of tangible personal property or services to any
5 organization, which takes court-adjudicated juveniles for purposes
6 of rehabilitation, and which is exempt from taxation pursuant to the
7 provisions of the Internal Revenue Code, 26 U.S.C., Section
8 501(c)(3), provided that at least fifty percent (50%) of the
9 juveniles served by such organization are court adjudicated and the
10 organization receives state funds in an amount less than ten percent
11 (10%) of the annual budget of the organization;
12 22. Sales of tangible personal property or services to:
13 a. any federally qualified community health center as
14 defined in Section 254c of Title 42 of the United States Code,
15 b. any migrant health center as defined in Section 254b
16 of Title 42 of the United States Code,
17 c. any clinic receiving disbursements of state monies
18 from the Indigent Health Care Revolving Fund pursuant to the
19 provisions of Section 66 of Title 56 of the Oklahoma Statutes,
20 d. any community based health center which meets all of
21 the following criteria:
22 (1) provides primary care services at no cost to the
23 recipient, and
24 (2) is exempt from taxation pursuant to the provisions of
25 Section 501(c)(3) of the Internal Revenue Code, 26 U.S.C., Section
26 501(c)(3), and
27 e. any community mental health center as defined in
9
1 Section 3-302 of Title 43A of the Oklahoma Statutes;
2 23. Dues or fees, including free or complimentary dues or
3 fees which have a value equivalent to the charge that could have
4 otherwise been made, to YMCAs, YWCAs or municipally-owned recreation
5 centers for the use of facilities and programs;
6 24. The first Fifteen Thousand Dollars ($15,000.00) each year
7 from sales of tangible personal property or services to or by a
8 cultural organization established to sponsor and promote
9 educational, charitable and cultural events for disadvantaged
10 children, and which organization is exempt from taxation pursuant to
11 the provisions of the Internal Revenue Code, 26 U.S.C., Section
12 501(c)(3);
13 25. Sales of tangible personal property or services to
14 museums or other entities which have been accredited by the American
15 Association of Museums. Any person making purchases on behalf of
16 any such museum or other entity shall certify, in writing, on the
17 copy of the invoice or sales ticket to be retained by the vendor
18 that the purchases are made for and on behalf of such museum or
19 other entity and set out the name of such museum or other entity.
20 Any person who wrongfully or erroneously certifies that the
21 purchases are for any such museum or other entity or who otherwise
22 violates the provisions of this paragraph shall be deemed guilty of
23 a misdemeanor and, upon conviction thereof, shall be fined an amount
24 equal to double the amount of sales tax involved or incarcerated for
25 not more than sixty (60) days, or by both such fine and
26 incarceration;
27 26. Sales of tickets for admission by any museum accredited
10
1 by the American Association of Museums. In order to be eligible for
2 the exemption provided by this paragraph, an amount equivalent to
3 the amount of the tax which would otherwise be required to be
4 collected pursuant to the provisions of Section 1350 et seq. of this
5 title shall be separately stated on the admission ticket and shall
6 be collected and used for the sole purpose of servicing or aiding in
7 the servicing of debt incurred by the museum to effect the
8 construction, enlarging or renovation of any facility to be used for
9 entertainment, edification or cultural cultivation to which entry is
10 gained with a paid admission ticket;
11 27. Sales of tangible personal property or services occurring
12 on or after June 1, 1995, to children's homes which are supported or
13 sponsored by one or more churches, members of which serve as
14 trustees of the home;
15 28. Sales of tangible personal property or services to the
16 organization known as the Disabled American Veterans, Department of
17 Oklahoma, Inc., and subordinate chapters thereof;
18 29. Sales of tangible personal property or services to youth
19 camps which are supported or sponsored by one or more churches,
20 members of which serve as trustees of the organization;
21 30. Transfer of tangible personal property made pursuant to
22 Section 3226 of Title 63 of the Oklahoma Statutes by the University
23 Hospitals Trust;
24 31. Sales of tangible personal property or services to a
25 municipality, county or school district pursuant to a lease or
26 lease-purchase agreement executed between the vendor and a
27 municipality, county or school district. A copy of the lease or
11
1 lease-purchase agreement shall be retained by the vendor;
2 32. Sales of tangible personal property or services to any
3 spaceport user, as defined in the Oklahoma Space Industry
4 Development Act;
5 33. The sale, use, storage, consumption, or distribution in
6 this state, whether by the importer, exporter, or another person, of
7 any satellite or any associated launch vehicle, including components
8 of, and parts and motors for, any such satellite or launch vehicle,
9 imported or caused to be imported into this state for the purpose of
10 export by means of launching into space. This exemption provided by
11 this paragraph shall not be affected by:
12 a. the destruction in whole or in part of the satellite
13 or launch vehicle,
14 b. the failure of a launch to occur or be successful, or
15 c. the absence of any transfer or title to, or possession
16 of, the satellite or launch vehicle after launch;
17 34. The sale, lease, use, storage, consumption, or
18 distribution in this state of any space facility, space propulsion
19 system or space vehicle, satellite, or station of any kind
20 possessing space flight capacity, including components thereof;
21 35. The sale, lease, use, storage, consumption, or
22 distribution in this state of tangible personal property, placed on
23 or used aboard any space facility, space propulsion system or space
24 vehicle, satellite, or station possessing space flight capacity,
25 which is launched into space, irrespective of whether such tangible
26 property is returned to this state for subsequent use, storage, or
27 consumption in any manner;
12
1 36. The sale, lease, use, storage, consumption, or
2 distribution in this state of tangible personal property meeting the
3 definition of "section 38 property" as defined in Sections
4 48(a)(1)(A) and (B)(i) of the Internal Revenue Code of 1986, that is
5 an integral part of and used primarily in support of space flight;
6 however, section 38 property used in support of space flight shall
7 not include general office equipment, any boat, mobile home, motor
8 vehicle, or other vehicle of a class or type required to be
9 registered, licensed, titled, or documented in this state or by the
10 United States government, or any other property not specifically
11 suited to supporting space activity. The term "in support of space
12 flight", for purposes of this paragraph, means the altering,
13 monitoring, controlling, regulating, adjusting, servicing, or
14 repairing of any space facility, space propulsion systems or space
15 vehicle, satellite, or station possessing space flight capacity,
16 including the components thereof;
17 37. The purchase or lease of machinery and equipment for use
18 at a fixed location in this state, which is used exclusively in the
19 manufacturing, processing, compounding, or producing of any space
20 facility, space propulsion system or space vehicle, satellite, or
21 station of any kind possessing space flight capacity. Provided, the
22 exemption provided for in this paragraph shall not be allowed unless
23 the purchaser or lessee signs an affidavit stating that the item or
24 items to be exempted are for the exclusive use designated herein.
25 Any person furnishing a false affidavit to the vendor for the
26 purpose of evading payment of any tax imposed by Section 1354 of
27 this title shall be subject to the penalties provided by law. As
13
1 used in this paragraph, "machinery and equipment" means "section 38
2 property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
3 Internal Revenue Code of 1986, which is used as an integral part of
4 the manufacturing, processing, compounding, or producing of items of
5 tangible personal property. Such term includes parts and
6 accessories only to the extent that the exemption thereof is
7 consistent with the provisions of this paragraph;
8 38. The amount of a surcharge or any other amount which is
9 separately stated on an admission ticket which is imposed, collected
10 and used for the sole purpose of constructing, remodeling or
11 enlarging facilities of a public trust having a municipality or
12 county as its sole beneficiary;
13 39. Sales of tangible personal property or services which are
14 directly used in or for the benefit of a state park in this state,
15 which are made to an organization which is exempt from taxation
16 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
17 Section 501(c)(3) and which is organized primarily for the purpose
18 of supporting one or more state parks located in this state;
19 40. The sale, lease or use of parking privileges by an
20 institution of The Oklahoma State System of Higher Education;
21 41. Sales of tangible personal property or services for use
22 on campus or school construction projects for the benefit of
23 institutions of The Oklahoma State System of Higher Education,
24 private institutions of higher education accredited by the Oklahoma
25 State Regents for Higher Education or any public school or school
26 district when such projects are financed by or through the use of
27 nonprofit entities which are exempt from taxation pursuant to the
14
1 provisions of the Internal Revenue Code, 26 U.S.C., Section
2 501(c)(3);
3 42. Sales of tangible personal property or services by an
4 organization which is exempt from taxation pursuant to the
5 provisions of the Internal Revenue Code, 26 U.S.C., Section
6 501(c)(3), in the course of conducting a national championship
7 sports event, but only if all or a portion of the payment in
8 exchange therefor would qualify as the receipt of a qualified
9 sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
10 Section 513(i). Sales exempted pursuant to this paragraph shall be
11 exempt from all Oklahoma sales, use, excise and gross receipts
12 taxes;
13 43. Sales of tangible personal property or services to or by
14 an organization which:
15 a. is exempt from taxation pursuant to the provisions of
16 the Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
17 b. is affiliated with a comprehensive university within
18 The Oklahoma State System of Higher Education, and
19 c. has been organized primarily for the purpose of
20 providing education and teacher training and conducting events
21 relating to robotics;
22 44. The first Fifteen Thousand Dollars ($15,000.00) each year
23 from sales of tangible personal property to or by youth athletic
24 teams which are part of an athletic organization exempt from
25 taxation pursuant to the provisions of the Internal Revenue Code, 26
26 U.S.C., Section 501(c)(4), for the purposes of raising funds for the
27 benefit of the team;
15
1 45. Sales of tickets for admission to a collegiate athletic
2 event that is held in a facility owned or operated by a municipality
3 or a public trust of which the municipality is the sole beneficiary
4 and that actually determines or is part of a tournament or
5 tournament process for determining a conference tournament
6 championship, a conference championship, or a national championship;
7 46. Sales of tangible personal property or services to or by
8 an organization which is exempt from taxation pursuant to the
9 provisions of the Internal Revenue Code, 26 U.S.C., Section
10 501(c)(3) and is operating the Oklahoma City National Memorial and
11 Museum, an affiliate of the National Park System;
12 47. Sales of tangible personal property or services to
13 organizations which are exempt from federal taxation pursuant to the
14 provisions of Section 501(c)(3) of the Internal Revenue Code, 26
15 U.S.C., Section 501(c)(3), the memberships of which are limited to
16 honorably discharged veterans, and which furnish financial support
17 to area veterans organizations to be used for the purpose of
18 constructing a memorial or museum;
19 48. Sales of tangible personal property or services on or
20 after January 1, 2003, to an organization which is exempt from
21 taxation pursuant to the provisions of the Internal Revenue Code, 26
22 U.S.C., Section 501(c)(3) that is expending monies received from a
23 private foundation grant in conjunction with expenditures of local
24 sales tax revenue to construct a local public library;
25 49. Sales of tangible personal property or services to a
26 state that borders this state or any political subdivision of that
27 state, but only to the extent that the other state or political
16
1 subdivision exempts or does not impose a tax on similar sales of
2 items to this state or a political subdivision of this state;
3 50. Effective July 1, 2005, sales of tangible personal
4 property or services to the Career Technology Student Organizations
5 under the direction and supervision of the Oklahoma Department of
6 Career and Technology Education;
7 51. Sales of tangible personal property to a public trust
8 having either a single city, town or county or multiple cities,
9 towns or counties or combination thereof as beneficiary or
10 beneficiaries or a nonprofit organization which is exempt from
11 taxation pursuant to the provisions of the Internal Revenue Code, 26
12 U.S.C., Section 501(c)(3) for the purpose of constructing
13 improvements to or expanding a hospital or nursing home owned and
14 operated by any such public trust or nonprofit entity prior to [the
15 effective date of this act] July 1, 2005 in counties with a
16 population of less than one hundred thousand (100,000) persons,
17 according to the most recent Federal Decennial Census. As used in
18 this paragraph, constructing improvements to or expanding shall
19 not mean any expense for routine maintenance or general repairs and
20 shall require a project cost of at least One Hundred Thousand
21 Dollars ($100,000.00). For purposes of this paragraph, sales made
22 to a contractor or subcontractor that enters into a contractual
23 relationship with a public trust or nonprofit entity as described by
24 this paragraph shall be considered sales made to the public trust or
25 nonprofit entity. The exemption authorized by this paragraph shall
26 be administered in the form of a refund from the sales tax revenues
27 apportioned pursuant to Section 1353 of this title and the vendor
17
1 shall be required to collect the sales tax otherwise applicable to
2 the transaction. The purchaser may apply for a refund of the sales
3 tax paid in the manner prescribed by this paragraph. Within thirty
4 (30) days after the end of each fiscal year, any purchaser that is
5 entitled to make application for a refund based upon the exempt
6 treatment authorized by this paragraph may file an application for
7 refund of the sales taxes paid during such preceding fiscal year.
8 The Tax Commission shall prescribe a form for purposes of making the
9 application for refund. The Tax Commission shall determine whether
10 or not the total amount of sales tax exemptions claimed by all
11 purchasers is equal to or less than [Six Hundred Fifty Thousand
12 Dollars ($650,000.00)] Two Million Dollars ($2,000,000.00). If
13 such claims are less than or equal to that amount, the Tax
14 Commission shall make refunds to the purchasers in the full amount
15 of the documented and verified sales tax amounts. If such claims by
16 all purchasers are in excess of [Six Hundred Fifty Thousand Dollars
17 ($650,000.00)] Two Million Dollars ($2,000,000.00), the Tax
18 Commission shall determine the amount of each purchasers claim, the
19 total amount of all claims by all purchasers, and the percentage
20 each purchasers claim amount bears to the total. The resulting
21 percentage determined for each purchaser shall be multiplied by [Six
22 Hundred Fifty Thousand Dollars ($650,000.00)] Two Million Dollars
23 ($2,000,000.00) to determine the amount of refundable sales tax to
24 be paid to each purchaser. The pro rata refund amount shall be the
25 only method to recover sales taxes paid during the preceding fiscal
26 year and no balance of any sales taxes paid on a pro rata basis
27 shall be the subject of any subsequent refund claim pursuant to this
18
1 paragraph;
2 52. Effective July 1, 2006, sales of tangible personal
3 property or services to any organization which assists, trains,
4 educates, and provides housing for physically and mentally
5 handicapped persons and which is exempt from taxation pursuant to
6 the provisions of the Internal Revenue Code, 26 U.S.C., Section
7 501(c)(3) and that receives at least eighty-five percent (85%) of
8 its annual budget from state or federal funds. In order to receive
9 the benefit of the exemption authorized by this paragraph, the
10 taxpayer shall be required to make payment of the applicable sales
11 tax at the time of sale to the vendor in the manner otherwise
12 required by law. Notwithstanding any other provision of the
13 Oklahoma Uniform Tax Procedure Code to the contrary, the taxpayer
14 shall be authorized to file a claim for refund of sales taxes paid
15 that qualify for the exemption authorized by this paragraph for a
16 period of one (1) year after the date of the sale transaction. The
17 taxpayer shall be required to provide documentation as may be
18 prescribed by the Oklahoma Tax Commission in support of the refund
19 claim. The total amount of sales tax qualifying for exempt
20 treatment pursuant to this paragraph shall not exceed One Hundred
21 Seventy-five Thousand Dollars ($175,000.00) each fiscal year.
22 Claims for refund shall be processed in the order in which such
23 claims are received by the Oklahoma Tax Commission. If a claim
24 otherwise timely filed exceeds the total amount of refunds payable
25 for a fiscal year, such claim shall be barred;
26 53. The first Two Thousand Dollars ($2,000.00) each year of
27 sales of tangible personal property or services to, by, or for the
19
1 benefit of a qualified neighborhood watch organization that is
2 endorsed or supported by or working directly with a law enforcement
3 agency with jurisdiction in the area in which the neighborhood watch
4 organization is located. As used in this paragraph, qualified
5 neighborhood watch organization means an organization that is a
6 not-for-profit corporation under the laws of the State of Oklahoma
7 that was created to help prevent criminal activity in an area
8 through community involvement and interaction with local law
9 enforcement and which is one of the first two thousand organizations
10 which makes application to the Oklahoma Tax Commission for the
11 exemption after the effective date of this act;
12 54. Sales of tangible personal property to a nonprofit
13 organization, exempt from taxation pursuant to the provisions of the
14 Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized
15 primarily for the purpose of providing services to homeless persons
16 during the day and located in a metropolitan area with a population
17 in excess of five hundred thousand (500,000) persons according to
18 the latest Federal Decennial Census. The exemption authorized by
19 this paragraph shall be applicable to sales of tangible personal
20 property to a qualified entity occurring on or after January 1,
21 2005;
22 55. Sales of tangible personal property or services by an
23 organization which is exempt from taxation pursuant to the
24 provisions of the Internal Revenue Code, 26 U.S.C., Section
25 501(c)(3) made during auction events the principal purpose of which
26 is to provide funding for the preservation of wetlands and habitat
27 for wild ducks;
20
1 56. 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) made during auction events the principal purpose of which
5 is to provide funding for the preservation and conservation of wild
6 turkeys;
7 57. Sales of tangible personal property or services to an
8 organization which:
9 a. is exempt from taxation pursuant to the provisions of
10 the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), and
11 b. is part of a network of community-based, autonomous
12 member organizations that meets the following criteria:
13 (1) serves people with workplace disadvantages and
14 disabilities by providing job training and employment services, as
15 well as job placement opportunities and post-employment support,
16 (2) has locations in the United States and at least
17 twenty other countries,
18 (3) collects donated clothing and household goods to sell
19 in retail stores and provides contract labor services to business
20 and government, and
21 (4) provides documentation to the Oklahoma Tax Commission
22 that over seventy-five percent (75%) of its revenues are channeled
23 into employment, job training and placement programs and other
24 critical community services;
25 58. Sales of tickets made on or after September 21, 2005, and
26 complimentary or free tickets for admission issued on or after
27 September 21, 2005, which have a value equivalent to the charge that
21
1 would have otherwise been made, for admission to a professional
2 athletic event in which a team in the National Basketball
3 Association is a participant, which is held in a facility owned or
4 operated by a municipality, a county or a public trust of which a
5 municipality or a county is the sole beneficiary, and sales of
6 tickets made on or after the effective date of this act, and
7 complimentary or free tickets for admission issued on or after the
8 effective date of this act, which have a value equivalent to the
9 charge that would have otherwise been made, for admission to a
10 professional athletic event in which a team in the National Hockey
11 League is a participant, which is held in a facility owned or
12 operated by a municipality, a county or a public trust of which a
13 municipality or a county is the sole beneficiary;
14 59. Sales of tickets for admission and complimentary or free
15 tickets for admission which have a value equivalent to the charge
16 that would have otherwise been made to a professional sporting event
17 involving ice hockey, baseball, basketball, football or arena
18 football, or soccer. As used in this paragraph, professional
19 sporting event means an organized athletic competition between
20 teams that are members of an organized league or association with
21 centralized management, other than a national league or national
22 association, that imposes requirements for participation in the
23 league upon the teams, the individual athletes or both, and which
24 uses a salary structure to compensate the athletes;
25 60. Sales of tickets for admission to an annual event
26 sponsored by an educational and charitable organization of women
27 which is exempt from taxation pursuant to the provisions of the
22
1 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its
2 mission promoting volunteerism, developing the potential of women
3 and improving the community through the effective action and
4 leadership of trained volunteers;
5 61. Sales of tangible personal property or services to an
6 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 which is itself a member of an organization which is
9 exempt from taxation pursuant to the provisions of the Internal
10 Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
11 organization is primarily engaged in advancing the purposes of its
12 member organizations through fundraising, public awareness or other
13 efforts for the benefit of its member organizations, and if the
14 member organization is primarily engaged either in providing
15 educational services and programs concerning health-related diseases
16 and conditions to individuals suffering from such health-related
17 diseases and conditions or their caregivers and family members or
18 support to such individuals, or in health-related research as to
19 such diseases and conditions, or both. In order to qualify for the
20 exemption authorized by this paragraph, the member nonprofit
21 organization shall be required to provide proof to the Oklahoma Tax
22 Commission of its membership status in the membership organization;
23 62. Sales of tangible personal property or services to or by
24 an organization which is part of a national volunteer womens
25 service organization dedicated to promoting patriotism, preserving
26 American history and securing better education for children and
27 which has at least 168,000 members in 3,000 chapters across the
23
1 United States;
2 63. Sales of tangible personal property or services to or by
3 a YWCA or YMCA organization which is part of a national nonprofit
4 community service organization working to meet the health and social
5 service needs of its members across the United States; and
6 64. Sales of tangible personal property or services to or by
7 a veterans organization which is exempt from taxation pursuant to
8 the provisions of the Internal Revenue Code, 26 U.S.C., Section 501
9 (c)(19) and which is known as the Veterans of Foreign Wars of the
10 United States, Oklahoma Chapters.
11 SECTION 2. This act shall become effective July 1, 2007.
12 SECTION 3. It being immediately necessary for the
13 preservation of the public peace, health and safety, an emergency is
14 hereby
15 declared to exist, by reason whereof this act shall take effect and
16 be in full force from and after its passage and approval.
17 51-1-350 JCR 1/15/2007 3:01:42 PM
18 Req. No. \*Req. No.*\Page 1
19 Req. No. 350Page 1
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