1| STATE OF OKLAHOMA |
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2| 1st Session of the 59th Legislature (2023) |
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3|SENATE BILL 391 By: Dossett |
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4| |
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5| |
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6| AS INTRODUCED |
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7| An Act relating to sales tax; amending 68 O.S. 2021, |
| Section 1356, as last amended by Section 1, Chapter |
8| 394, O.S.L. 2022 (68 O.S. Supp. 2022, Section 1356), |
| which relates to exemptions for governmental and |
9| nonprofit entities; providing sales tax exemption for |
| certain nonprofit entity engaged in providing |
10| supplies to benefit students in certain common school |
| districts; updating statutory language; updating |
11| statutory reference; and providing an effective date. |
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12| |
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13| |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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15| SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356, as |
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16|last amended by Section 1, Chapter 394, O.S.L. 2022 (68 O.S. Supp. |
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17|2022, Section 1356), is amended to read as follows: |
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18| Section 1356. Exemptions - Governmental and nonprofit entities. |
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19| There are hereby specifically exempted from the tax levied by |
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20|Section 1350 et seq. of this title: |
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21| 1. Sale of tangible personal property or services to the United |
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22|States government or to the State of Oklahoma this state, any |
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23|political subdivision of this state, or any agency of a political |
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24|subdivision of this state; provided, all sales to contractors in |
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1|connection with the performance of any contract with the United |
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2|States government, State of Oklahoma this state, or any of its |
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3|political subdivisions shall not be exempted from the tax levied by |
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4|Section 1350 et seq. of this title, except as hereinafter provided; |
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5| 2. Sales of property to agents appointed by or under contract |
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6|with agencies or instrumentalities of the United States government |
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7|if ownership and possession of such property transfers immediately |
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8|to the United States government; |
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9| 3. Sales of property to agents appointed by or under contract |
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10|with a political subdivision of this state if the sale of such |
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11|property is associated with the development of a qualified federal |
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12|facility, as provided in the Oklahoma Federal Facilities Development |
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13|Act, and if ownership and possession of such property transfers |
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14|immediately to the political subdivision or the state; |
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15| 4. Sales made directly by county, district, or state fair |
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16|authorities of this state, upon the premises of the fair authority, |
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17|for the sole benefit of the fair authority or sales of admission |
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18|tickets to such fairs or fair events at any location in the state |
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19|authorized by county, district, or state fair authorities; provided, |
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20|the exemption provided by this paragraph for admission tickets to |
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21|fair events shall apply only to any portion of the admission price |
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22|that is retained by or distributed to the fair authority. As used |
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23|in this paragraph, "fair event" shall be limited to an event held on |
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24| |
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1|the premises of the fair authority in conjunction with and during |
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2|the time period of a county, district, or state fair; |
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3| 5. Sale of food in cafeterias or lunchrooms of elementary |
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4|schools, high schools, colleges, or universities which are operated |
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5|primarily for teachers and pupils and are not operated primarily for |
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6|the public or for profit; |
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7| 6. Dues paid to fraternal, religious, civic, charitable, or |
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8|educational societies or organizations by regular members thereof, |
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9|provided, such societies or organizations operate under what is |
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10|commonly termed the lodge plan or system, and provided such |
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11|societies or organizations do not operate for a profit which inures |
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12|to the benefit of any individual member or members thereof to the |
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13|exclusion of other members and dues paid monthly or annually to |
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14|privately owned scientific and educational libraries by members |
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15|sharing the use of services rendered by such libraries with students |
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16|interested in the study of geology, petroleum engineering, or |
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17|related subjects; |
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18| 7. Sale of tangible personal property or services to or by |
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19|churches, except sales made in the course of business for profit or |
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20|savings, competing with other persons engaged in the same, or a |
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21|similar business or sale of tangible personal property or services |
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22|by an organization exempt from federal income tax pursuant to |
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23|Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, |
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24|made on behalf of or at the request of a church or churches if the |
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1|sale of such property is conducted not more than once each calendar |
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2|year for a period not to exceed three (3) days by the organization |
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3|and proceeds from the sale of such property are used by the church |
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4|or churches or by the organization for charitable purposes; |
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5| 8. The amount of proceeds received from the sale of admission |
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6|tickets which is separately stated on the ticket of admission for |
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7|the repayment of money borrowed by any accredited state-supported |
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8|college or university or any public trust of which a county in this |
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9|state is the beneficiary, for the purpose of constructing or |
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10|enlarging any facility to be used for the staging of an athletic |
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11|event, a theatrical production, or any other form of entertainment, |
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12|edification, or cultural cultivation to which entry is gained with a |
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13|paid admission ticket. Such facilities include, but are not limited |
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14|to, athletic fields, athletic stadiums, field houses, amphitheaters, |
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15|and theaters. To be eligible for this sales tax exemption, the |
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16|amount separately stated on the admission ticket shall be a |
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17|surcharge which is imposed, collected, and used for the sole purpose |
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18|of servicing or aiding in the servicing of debt incurred by the |
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19|college or university to effect the capital improvements |
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20|hereinbefore described; |
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21| 9. Sales of tangible personal property or services to the |
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22|council organizations or similar state supervisory organizations of |
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23|the Boy Scouts of America, Girl Scouts of the U.S.A., and Camp Fire |
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24|USA; |
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1| 10. Sale of tangible personal property or services to any |
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2|county, municipality, rural water district, public school district, |
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3|city-county library system, the institutions of The Oklahoma State |
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4|System of Higher Education, the Grand River Dam Authority, the |
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5|Northeast Oklahoma Public Facilities Authority, the Oklahoma |
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6|Municipal Power Authority, City of Tulsa-Rogers County Port |
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7|Authority, Muskogee City-County Port Authority, the Oklahoma |
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8|Department of Veterans Affairs, the Broken Bow Economic Development |
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9|Authority, Ardmore Development Authority, Durant Industrial |
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10|Authority, Oklahoma Ordnance Works Authority, Central Oklahoma |
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11|Master Conservancy District, Arbuckle Master Conservancy District, |
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12|Fort Cobb Master Conservancy District, Foss Reservoir Master |
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13|Conservancy District, Mountain Park Master Conservancy District, |
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14|Waurika Lake Master Conservancy District, and the Office of |
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15|Management and Enterprise Services only when carrying out a public |
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16|construction contract on behalf of the Oklahoma Department of |
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17|Veterans Affairs, and effective July 1, 2022, the University |
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18|Hospitals Trust, or to any person with whom any of the above-named |
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19|subdivisions or agencies of this state has duly entered into a |
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20|public contract pursuant to law, necessary for carrying out such |
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21|public contract or to any subcontractor to such a public contract. |
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22|Any person making purchases on behalf of such subdivision or agency |
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23|of this state shall certify, in writing, on the copy of the invoice |
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24|or sales ticket to be retained by the vendor that the purchases are |
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1|made for and on behalf of such subdivision or agency of this state |
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2|and set out the name of such public subdivision or agency. Any |
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3|person who wrongfully or erroneously certifies that purchases are |
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4|for any of the above-named subdivisions or agencies of this state or |
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5|who otherwise violates this section shall be guilty of a misdemeanor |
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6|and upon conviction thereof shall be fined an amount equal to double |
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7|the amount of sales tax involved or incarcerated for not more than |
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8|sixty (60) days or both; |
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9| 11. Sales of tangible personal property or services to private |
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10|institutions of higher education and private elementary and |
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11|secondary institutions of education accredited by the State |
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12|Department of Education or registered by the State Board of |
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13|Education for purposes of participating in federal programs or |
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14|accredited as defined by the Oklahoma State Regents for Higher |
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15|Education which are exempt from taxation pursuant to the provisions |
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16|of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) including |
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17|materials, supplies, and equipment used in the construction and |
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18|improvement of buildings and other structures owned by the |
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19|institutions and operated for educational purposes. |
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20| Any person, firm, agency, or entity making purchases on behalf |
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21|of any institution, agency, or subdivision in this state, shall |
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22|certify in writing, on the copy of the invoice or sales ticket the |
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23|nature of the purchases, and violation of this paragraph shall be a |
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24|misdemeanor as set forth in paragraph 10 of this section; |
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1| 12. Tuition and educational fees paid to private institutions |
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2|of higher education and private elementary and secondary |
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3|institutions of education accredited by the State Department of |
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4|Education or registered by the State Board of Education for purposes |
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5|of participating in federal programs or accredited as defined by the |
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6|Oklahoma State Regents for Higher Education which are exempt from |
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7|taxation pursuant to the provisions of the Internal Revenue Code, 26 |
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8|U.S.C., Section 501(c)(3); |
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9| 13. a. Sales of tangible personal property made by: |
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10| (1) a public school, |
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11| (2) a private school offering instruction for grade |
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12| levels kindergarten through twelfth grade, |
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13| (3) a public school district, |
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14| (4) a public or private school board, |
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15| (5) a public or private school student group or |
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16| organization, |
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17| (6) a parent-teacher association or organization |
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18| other than as specified in subparagraph b of this |
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19| paragraph, or |
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20| (7) public or private school personnel for purposes |
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21| of raising funds for the benefit of a public or |
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22| private school, public school district, public or |
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23| private school board, or public or private school |
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24| student group or organization, or |
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1| b. Sales of tangible personal property made by or to |
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2| nonprofit parent-teacher associations or organizations |
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3| exempt from taxation pursuant to the provisions of the |
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4| Internal Revenue Code, 26 U.S.C., Section 501(c)(3), |
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5| nonprofit local public or private school foundations |
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6| which solicit money or property in the name of any |
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7| public or private school or public school district. |
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8| The exemption provided by this paragraph for sales made by a |
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9|public or private school shall be limited to those public or private |
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10|schools accredited by the State Department of Education or |
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11|registered by the State Board of Education for purposes of |
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12|participating in federal programs. Sale of tangible personal |
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13|property in this paragraph shall include sale of admission tickets |
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14|and concessions at athletic events; |
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15| 14. Sales of tangible personal property by: |
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16| a. local 4-H clubs, |
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17| b. county, regional, or state 4-H councils, |
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18| c. county, regional, or state 4-H committees, |
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19| d. 4-H leader associations, |
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20| e. county, regional, or state 4-H foundations, and |
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21| f. authorized 4-H camps and training centers. |
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22| The exemption provided by this paragraph shall be limited to |
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23|sales for the purpose of raising funds for the benefit of such |
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24| |
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1|organizations. Sale of tangible personal property exempted by this |
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2|paragraph shall include sale of admission tickets; |
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3| 15. The first Seventy-five Thousand Dollars ($75,000.00) each |
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4|year from sale of tickets and concessions at athletic events by each |
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5|organization exempt from taxation pursuant to the provisions of the |
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6|Internal Revenue Code, 26 U.S.C., Section 501(c)(4); |
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7| 16. Sales of tangible personal property or services to any |
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8|person with whom the Oklahoma Tourism and Recreation Department has |
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9|entered into a public contract and which is necessary for carrying |
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10|out such contract to assist the Department in the development and |
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11|production of advertising, promotion, publicity, and public |
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12|relations programs; |
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13| 17. Sales of tangible personal property or services to fire |
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14|departments organized pursuant to Section 592 of Title 18 of the |
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15|Oklahoma Statutes which items are to be used for the purposes of the |
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16|fire department. Any person making purchases on behalf of any such |
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17|fire department shall certify, in writing, on the copy of the |
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18|invoice or sales ticket to be retained by the vendor that the |
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19|purchases are made for and on behalf of such fire department and set |
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20|out the name of such fire department. Any person who wrongfully or |
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21|erroneously certifies that the purchases are for any such fire |
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22|department or who otherwise violates the provisions of this section |
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23|shall be deemed guilty of a misdemeanor and upon conviction thereof, |
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24|shall be fined an amount equal to double the amount of sales tax |
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1|involved or incarcerated for not more than sixty (60) days, or both; |
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2| 18. Complimentary or free tickets for admission to places of |
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3|amusement, sports, entertainment, exhibition, display, or other |
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4|recreational events or activities which are issued through a box |
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5|office or other entity which is operated by a state institution of |
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6|higher education with institutional employees or by a municipality |
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7|with municipal employees; |
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8| 19. The first Fifteen Thousand Dollars ($15,000.00) each year |
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9|from sales of tangible personal property by fire departments |
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10|organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes |
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11|for the purposes of raising funds for the benefit of the fire |
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12|department. Fire departments selling tangible personal property for |
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13|the purposes of raising funds shall be limited to no more than six |
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14|(6) days each year to raise such funds in order to receive the |
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15|exemption granted by this paragraph; |
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16| 20. Sales of tangible personal property or services to any Boys |
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17|& Girls Clubs of America affiliate in this state which is not |
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18|affiliated with the Salvation Army and which is exempt from taxation |
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19|pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., |
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20|Section 501(c)(3); |
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21| 21. Sales of tangible personal property or services to any |
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22|organization, which takes court-adjudicated juveniles for purposes |
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23|of rehabilitation, and which is exempt from taxation pursuant to the |
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24|provisions of the Internal Revenue Code, 26 U.S.C., Section |
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1|501(c)(3), provided that at least fifty percent (50%) of the |
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2|juveniles served by such organization are court adjudicated and the |
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3|organization receives state funds in an amount less than ten percent |
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4|(10%) of the annual budget of the organization; |
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5| 22. Sales of tangible personal property or services to: |
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6| a. any health center as defined in Section 254b of Title |
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7| 42 of the United States Code, |
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8| b. any clinic receiving disbursements of state monies |
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9| from the Indigent Health Care Revolving Fund pursuant |
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10| to the provisions of Section 66 of Title 56 of the |
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11| Oklahoma Statutes, |
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12| c. any community-based health center which meets all of |
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13| the following criteria: |
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14| (1) provides primary care services at no cost to the |
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15| recipient, and |
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16| (2) is exempt from taxation pursuant to the |
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17| provisions of Section 501(c)(3) of the Internal |
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18| Revenue Code, 26 U.S.C., Section 501(c)(3), and |
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19| d. any community mental health center as defined in |
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20| Section 3-302 of Title 43A of the Oklahoma Statutes; |
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21| 23. Dues or fees including free or complimentary dues or fees |
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22|which have a value equivalent to the charge that could have |
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23|otherwise been made, to YMCAs, YWCAs, or municipally-owned |
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24|recreation centers for the use of facilities and programs; |
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1| 24. The first Fifteen Thousand Dollars ($15,000.00) each year |
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2|from sales of tangible personal property or services to or by a |
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3|cultural organization established to sponsor and promote |
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4|educational, charitable, and cultural events for disadvantaged |
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5|children, and which organization is exempt from taxation pursuant to |
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6|the provisions of the Internal Revenue Code, 26 U.S.C., Section |
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7|501(c)(3); |
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8| 25. Sales of tangible personal property or services to museums |
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9|or other entities which have been accredited by the American |
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10|Association Alliance of Museums. Any person making purchases on |
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11|behalf of any such museum or other entity shall certify, in writing, |
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12|on the copy of the invoice or sales ticket to be retained by the |
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13|vendor that the purchases are made for and on behalf of such museum |
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14|or other entity and set out the name of such museum or other entity. |
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15| Any person who wrongfully or erroneously certifies that the |
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16|purchases are for any such museum or other entity or who otherwise |
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17|violates the provisions of this paragraph shall be deemed guilty of |
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18|a misdemeanor and, upon conviction thereof, shall be fined an amount |
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19|equal to double the amount of sales tax involved or incarcerated for |
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20|not more than sixty (60) days, or by both such fine and |
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21|incarceration; |
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22| 26. Sales of tickets for admission by any museum accredited by |
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23|the American Association Alliance of Museums. In order to be |
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24|eligible for the exemption provided by this paragraph, an amount |
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1|equivalent to the amount of the tax which would otherwise be |
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2|required to be collected pursuant to the provisions of Section 1350 |
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3|et seq. of this title shall be separately stated on the admission |
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4|ticket and shall be collected and used for the sole purpose of |
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5|servicing or aiding in the servicing of debt incurred by the museum |
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6|to effect the construction, enlarging, or renovation of any facility |
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7|to be used for entertainment, edification, or cultural cultivation |
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8|to which entry is gained with a paid admission ticket; |
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9| 27. Sales of tangible personal property or services occurring |
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10|on or after June 1, 1995, to children's homes which are supported or |
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11|sponsored by one or more churches, members of which serve as |
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12|trustees of the home; |
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13| 28. Sales of tangible personal property or services to the |
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14|organization known as the Disabled American Veterans, Department of |
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15|Oklahoma, Inc., and subordinate chapters thereof; |
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16| 29. Sales of tangible personal property or services to youth |
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17|camps which are supported or sponsored by one or more churches, |
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18|members of which serve as trustees of the organization; |
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19| 30. a. Until July 1, 2022, transfer of tangible personal |
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20| property made pursuant to Section 3226 of Title 63 of |
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21| the Oklahoma Statutes by the University Hospitals |
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22| Trust, and |
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23| b. Effective July 1, 2022, transfer of tangible personal |
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24| property or services to or by: |
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1| (1) the University Hospitals Trust created pursuant |
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2| to Section 3224 of Title 63 of the Oklahoma |
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3| Statutes, or |
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4| (2) nonprofit entities which are exempt from |
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5| taxation pursuant to the provisions of the |
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6| Internal Revenue Code of the United States, 26 |
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7| U.S.C., Section 501(c)(3), which have entered |
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8| into a joint operating agreement with the |
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9| University Hospitals Trust; |
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10| 31. Sales of tangible personal property or services to a |
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11|municipality, county, or school district pursuant to a lease or |
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12|lease-purchase agreement executed between the vendor and a |
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13|municipality, county, or school district. A copy of the lease or |
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14|lease-purchase agreement shall be retained by the vendor; |
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15| 32. Sales of tangible personal property or services to any |
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16|spaceport user, as defined in the Oklahoma Space Industry |
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17|Development Act; |
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18| 33. The sale, use, storage, consumption, or distribution in |
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19|this state, whether by the importer, exporter, or another person, of |
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20|any satellite or any associated launch vehicle including components |
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21|of, and parts and motors for, any such satellite or launch vehicle, |
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22|imported or caused to be imported into this state for the purpose of |
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23|export by means of launching into space. This exemption provided by |
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24|this paragraph shall not be affected by: |
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1| a. the destruction in whole or in part of the satellite |
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2| or launch vehicle, |
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3| b. the failure of a launch to occur or be successful, or |
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4| |
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5| c. the absence of any transfer or title to, or |
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6| possession of, the satellite or launch vehicle after |
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7| launch; |
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8| 34. The sale, lease, use, storage, consumption, or distribution |
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9|in this state of any space facility, space propulsion system or |
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10|space vehicle, satellite, or station of any kind possessing space |
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11|flight capacity including components thereof; |
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12| 35. The sale, lease, use, storage, consumption, or distribution |
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13|in this state of tangible personal property, placed on or used |
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14|aboard any space facility, space propulsion system or space vehicle, |
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15|satellite, or station possessing space flight capacity, which is |
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16|launched into space, irrespective of whether such tangible property |
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17|is returned to this state for subsequent use, storage, or |
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18|consumption in any manner; |
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19| 36. The sale, lease, use, storage, consumption, or distribution |
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20|in this state of tangible personal property meeting the definition |
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21|of "section 38 property" as defined in Sections 48(a)(1)(A) and |
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22|(B)(i) of the Internal Revenue Code of 1986, that is an integral |
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23|part of and used primarily in support of space flight; however, |
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24|section 38 property used in support of space flight shall not |
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1|include general office equipment, any boat, mobile home, motor |
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2|vehicle, or other vehicle of a class or type required to be |
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3|registered, licensed, titled, or documented in this state or by the |
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4|United States government, or any other property not specifically |
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5|suited to supporting space activity. The term "in support of space |
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6|flight", for purposes of this paragraph, means the altering, |
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7|monitoring, controlling, regulating, adjusting, servicing, or |
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8|repairing of any space facility, space propulsion systems or space |
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9|vehicle, satellite, or station possessing space flight capacity |
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10|including the components thereof; |
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11| 37. The purchase or lease of machinery and equipment for use at |
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12|a fixed location in this state, which is used exclusively in the |
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13|manufacturing, processing, compounding, or producing of any space |
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14|facility, space propulsion system or space vehicle, satellite, or |
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15|station of any kind possessing space flight capacity. Provided, the |
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16|exemption provided for in this paragraph shall not be allowed unless |
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17|the purchaser or lessee signs an affidavit stating that the item or |
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18|items to be exempted are for the exclusive use designated herein. |
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19|Any person furnishing a false affidavit to the vendor for the |
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20|purpose of evading payment of any tax imposed by Section 1354 of |
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21|this title shall be subject to the penalties provided by law. As |
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22|used in this paragraph, "machinery and equipment" means "section 38 |
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23|property" as defined in Sections 48(a)(1)(A) and (B)(i) of the |
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24|Internal Revenue Code of 1986, which is used as an integral part of |
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1|the manufacturing, processing, compounding, or producing of items of |
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2|tangible personal property. Such term includes parts and |
| |
3|accessories only to the extent that the exemption thereof is |
| |
4|consistent with the provisions of this paragraph; |
| |
5| 38. The amount of a surcharge or any other amount which is |
| |
6|separately stated on an admission ticket which is imposed, |
| |
7|collected, and used for the sole purpose of constructing, |
| |
8|remodeling, or enlarging facilities of a public trust having a |
| |
9|municipality or county as its sole beneficiary; |
| |
10| 39. Sales of tangible personal property or services which are |
| |
11|directly used in or for the benefit of a state park in this state, |
| |
12|which are made to an organization which is exempt from taxation |
| |
13|pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., |
| |
14|Section 501(c)(3) and which is organized primarily for the purpose |
| |
15|of supporting one or more state parks located in this state; |
| |
16| 40. The sale, lease, or use of parking privileges by an |
| |
17|institution of The Oklahoma State System of Higher Education; |
| |
18| 41. Sales of tangible personal property or services for use on |
| |
19|campus or school construction projects for the benefit of |
| |
20|institutions of The Oklahoma State System of Higher Education, |
| |
21|private institutions of higher education accredited by the Oklahoma |
| |
22|State Regents for Higher Education, or any public school or school |
| |
23|district when such projects are financed by or through the use of |
| |
24|nonprofit entities which are exempt from taxation pursuant to the |
| |
Req. No. 1364 Page 17
___________________________________________________________________________
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 an |
| |
14|organization which: |
| |
15| a. is exempt from taxation pursuant to the provisions of |
| |
16| the Internal Revenue Code, 26 U.S.C., Section |
| |
17| 501(c)(3), |
| |
18| b. is affiliated with a comprehensive university within |
| |
19| The Oklahoma State System of Higher Education, and |
| |
20| c. has been organized primarily for the purpose of |
| |
21| providing education and teacher training and |
| |
22| conducting events relating to robotics; |
| |
23| 44. The first Fifteen Thousand Dollars ($15,000.00) each year |
| |
24|from sales of tangible personal property to or by youth athletic |
| |
Req. No. 1364 Page 18
___________________________________________________________________________
1|teams which are part of an athletic organization exempt from |
| |
2|taxation pursuant to the provisions of the Internal Revenue Code, 26 |
| |
3|U.S.C., Section 501(c)(4), for the purposes of raising funds for the |
| |
4|benefit of the team; |
| |
5| 45. Sales of tickets for admission to a collegiate athletic |
| |
6|event that is held in a facility owned or operated by a municipality |
| |
7|or a public trust of which the municipality is the sole beneficiary |
| |
8|and that actually determines or is part of a tournament or |
| |
9|tournament process for determining a conference tournament |
| |
10|championship, a conference championship, or a national championship; |
| |
11| 46. Sales of tangible personal property or services to or by an |
| |
12|organization which is exempt from taxation pursuant to the |
| |
13|provisions of the Internal Revenue Code, 26 U.S.C., Section |
| |
14|501(c)(3) and is operating the Oklahoma City National Memorial and |
| |
15|Museum, an affiliate of the National Park System; |
| |
16| 47. Sales of tangible personal property or services to |
| |
17|organizations which are exempt from federal taxation pursuant to the |
| |
18|provisions of Section 501(c)(3) of the Internal Revenue Code, 26 |
| |
19|U.S.C., Section 501(c)(3), the memberships of which are limited to |
| |
20|honorably discharged veterans, and which furnish financial support |
| |
21|to area veterans' organizations to be used for the purpose of |
| |
22|constructing a memorial or museum; |
| |
23| 48. Sales of tangible personal property or services on or after |
| |
24|January 1, 2003, to an organization which is exempt from taxation |
| |
Req. No. 1364 Page 19
___________________________________________________________________________
1|pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., |
| |
2|Section 501(c)(3) that is expending monies received from a private |
| |
3|foundation grant in conjunction with expenditures of local sales tax |
| |
4|revenue to construct a local public library; |
| |
5| 49. Sales of tangible personal property or services to a state |
| |
6|that borders this state or any political subdivision of that state, |
| |
7|but only to the extent that the other state or political subdivision |
| |
8|exempts or does not impose a tax on similar sales of items to this |
| |
9|state or a political subdivision of this state; |
| |
10| 50. Effective July 1, 2005, sales of tangible personal property |
| |
11|or services to the Career Technology Student Organizations under the |
| |
12|direction and supervision of the Oklahoma Department of Career and |
| |
13|Technology Education; |
| |
14| 51. Sales of tangible personal property to a public trust |
| |
15|having either a single city, town or county or multiple cities, |
| |
16|towns or counties, or combination thereof as beneficiary or |
| |
17|beneficiaries or a nonprofit organization which is exempt from |
| |
18|taxation pursuant to the provisions of the Internal Revenue Code, 26 |
| |
19|U.S.C., Section 501(c)(3) for the purpose of constructing |
| |
20|improvements to or expanding a hospital or nursing home owned and |
| |
21|operated by any such public trust or nonprofit entity prior to July |
| |
22|1, 2008, in counties with a population of less than one hundred |
| |
23|thousand (100,000) persons, according to the most recent Federal |
| |
24|Decennial Census. As used in this paragraph, "constructing |
| |
Req. No. 1364 Page 20
___________________________________________________________________________
1|improvements to or expanding" shall not mean any expense for routine |
| |
2|maintenance or general repairs and shall require a project cost of |
| |
3|at least One Hundred Thousand Dollars ($100,000.00). For purposes |
| |
4|of this paragraph, sales made to a contractor or subcontractor that |
| |
5|enters into a contractual relationship with a public trust or |
| |
6|nonprofit entity as described by this paragraph shall be considered |
| |
7|sales made to the public trust or nonprofit entity. The exemption |
| |
8|authorized by this paragraph shall be administered in the form of a |
| |
9|refund from the sales tax revenues apportioned pursuant to Section |
| |
10|1353 of this title and the vendor shall be required to collect the |
| |
11|sales tax otherwise applicable to the transaction. The purchaser |
| |
12|may apply for a refund of the sales tax paid in the manner |
| |
13|prescribed by this paragraph. Within thirty (30) days after the end |
| |
14|of each fiscal year, any purchaser that is entitled to make |
| |
15|application for a refund based upon the exempt treatment authorized |
| |
16|by this paragraph may file an application for refund of the sales |
| |
17|taxes paid during such preceding fiscal year. The Tax Commission |
| |
18|shall prescribe a form for purposes of making the application for |
| |
19|refund. The Tax Commission shall determine whether or not the total |
| |
20|amount of sales tax exemptions claimed by all purchasers is equal to |
| |
21|or less than Six Hundred Fifty Thousand Dollars ($650,000.00). If |
| |
22|such claims are less than or equal to that amount, the Tax |
| |
23|Commission shall make refunds to the purchasers in the full amount |
| |
24|of the documented and verified sales tax amounts. If such claims by |
| |
Req. No. 1364 Page 21
___________________________________________________________________________
1|all purchasers are in excess of Six Hundred Fifty Thousand Dollars |
| |
2|($650,000.00), the Tax Commission shall determine the amount of each |
| |
3|purchaser's claim, the total amount of all claims by all purchasers, |
| |
4|and the percentage each purchaser's claim amount bears to the total. |
| |
5| The resulting percentage determined for each purchaser shall be |
| |
6|multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to |
| |
7|determine the amount of refundable sales tax to be paid to each |
| |
8|purchaser. The pro rata refund amount shall be the only method to |
| |
9|recover sales taxes paid during the preceding fiscal year and no |
| |
10|balance of any sales taxes paid on a pro rata basis shall be the |
| |
11|subject of any subsequent refund claim pursuant to this paragraph; |
| |
12| 52. Effective July 1, 2006, sales of tangible personal property |
| |
13|or services to any organization which assists, trains, educates, and |
| |
14|provides housing for physically and mentally handicapped persons and |
| |
15|which is exempt from taxation pursuant to the provisions of the |
| |
16|Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that |
| |
17|receives at least eighty-five percent (85%) of its annual budget |
| |
18|from state or federal funds. In order to receive the benefit of the |
| |
19|exemption authorized by this paragraph, the taxpayer shall be |
| |
20|required to make payment of the applicable sales tax at the time of |
| |
21|sale to the vendor in the manner otherwise required by law. |
| |
22|Notwithstanding any other provision of the Oklahoma Uniform Tax |
| |
23|Procedure Code to the contrary, the taxpayer shall be authorized to |
| |
24|file a claim for refund of sales taxes paid that qualify for the |
| |
Req. No. 1364 Page 22
___________________________________________________________________________
1|exemption authorized by this paragraph for a period of one (1) year |
| |
2|after the date of the sale transaction. The taxpayer shall be |
| |
3|required to provide documentation as may be prescribed by the |
| |
4|Oklahoma Tax Commission in support of the refund claim. The total |
| |
5|amount of sales tax qualifying for exempt treatment pursuant to this |
| |
6|paragraph shall not exceed One Hundred Seventy-five Thousand Dollars |
| |
7|($175,000.00) each fiscal year. Claims for refund shall be |
| |
8|processed in the order in which such claims are received by the |
| |
9|Oklahoma Tax Commission. If a claim otherwise timely filed exceeds |
| |
10|the total amount of refunds payable for a fiscal year, such claim |
| |
11|shall be barred; |
| |
12| 53. The first Two Thousand Dollars ($2,000.00) each year of |
| |
13|sales of tangible personal property or services to, by, or for the |
| |
14|benefit of a qualified neighborhood watch organization that is |
| |
15|endorsed or supported by or working directly with a law enforcement |
| |
16|agency with jurisdiction in the area in which the neighborhood watch |
| |
17|organization is located. As used in this paragraph, "qualified |
| |
18|neighborhood watch organization" means an organization that is a |
| |
19|not-for-profit corporation under the laws of the State of Oklahoma |
| |
20|this state that was created to help prevent criminal activity in an |
| |
21|area through community involvement and interaction with local law |
| |
22|enforcement and which is one of the first two thousand organizations |
| |
23|which makes application to the Oklahoma Tax Commission for the |
| |
24|exemption after March 29, 2006; |
| |
Req. No. 1364 Page 23
___________________________________________________________________________
1| 54. Sales of tangible personal property to a nonprofit |
| |
2|organization, exempt from taxation pursuant to the provisions of the |
| |
3|Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized |
| |
4|primarily for the purpose of providing services to homeless persons |
| |
5|during the day and located in a metropolitan area with a population |
| |
6|in excess of five hundred thousand (500,000) persons according to |
| |
7|the latest Federal Decennial Census. The exemption authorized by |
| |
8|this paragraph shall be applicable to sales of tangible personal |
| |
9|property to a qualified entity occurring on or after January 1, |
| |
10|2005; |
| |
11| 55. Sales of tangible personal property or services to or by an |
| |
12|organization which is exempt from taxation pursuant to the |
| |
13|provisions of the Internal Revenue Code, 26 U.S.C., Section |
| |
14|501(c)(3) for events the principal purpose of which is to provide |
| |
15|funding for the preservation of wetlands and habitat for wild ducks; |
| |
16| 56. Sales of tangible personal property or services to or by an |
| |
17|organization which is exempt from taxation pursuant to the |
| |
18|provisions of the Internal Revenue Code, 26 U.S.C., Section |
| |
19|501(c)(3) for events the principal purpose of which is to provide |
| |
20|funding for the preservation and conservation of wild turkeys; |
| |
21| 57. Sales of tangible personal property or services to an |
| |
22|organization which: |
| |
23| a. is exempt from taxation pursuant to the provisions of |
| |
24| |
| |
Req. No. 1364 Page 24
___________________________________________________________________________
1| the Internal Revenue Code, 26 U.S.C., Section |
| |
2| 501(c)(3), and |
| |
3| b. is part of a network of community-based, autonomous |
| |
4| member organizations that meets the following |
| |
5| criteria: |
| |
6| (1) serves people with workplace disadvantages and |
| |
7| disabilities by providing job training and |
| |
8| employment services, as well as job placement |
| |
9| opportunities and post-employment support, |
| |
10| (2) has locations in the United States and at least |
| |
11| twenty other countries, |
| |
12| (3) collects donated clothing and household goods to |
| |
13| sell in retail stores and provides contract labor |
| |
14| services to business and government, and |
| |
15| (4) provides documentation to the Oklahoma Tax |
| |
16| Commission that over seventy-five percent (75%) |
| |
17| of its revenues are channeled into employment, |
| |
18| job training and placement programs, and other |
| |
19| critical community services; |
| |
20| 58. Sales of tickets made on or after September 21, 2005, and |
| |
21|complimentary or free tickets for admission issued on or after |
| |
22|September 21, 2005, which have a value equivalent to the charge that |
| |
23|would have otherwise been made, for admission to a professional |
| |
24|athletic event in which a team in the National Basketball |
| |
Req. No. 1364 Page 25
___________________________________________________________________________
1|Association is a participant, which is held in a facility owned or |
| |
2|operated by a municipality, a county, or a public trust of which a |
| |
3|municipality or a county is the sole beneficiary, and sales of |
| |
4|tickets made on or after July 1, 2007, and complimentary or free |
| |
5|tickets for admission issued on or after July 1, 2007, which have a |
| |
6|value equivalent to the charge that would have otherwise been made, |
| |
7|for admission to a professional athletic event in which a team in |
| |
8|the National Hockey League is a participant, which is held in a |
| |
9|facility owned or operated by a municipality, a county, or a public |
| |
10|trust of which a municipality or a county is the sole beneficiary; |
| |
11| 59. Sales of tickets for admission and complimentary or free |
| |
12|tickets for admission which have a value equivalent to the charge |
| |
13|that would have otherwise been made to a professional sporting event |
| |
14|involving ice hockey, baseball, basketball, football or arena |
| |
15|football, or soccer. As used in this paragraph, "professional |
| |
16|sporting event" means an organized athletic competition between |
| |
17|teams that are members of an organized league or association with |
| |
18|centralized management, other than a national league or national |
| |
19|association, that imposes requirements for participation in the |
| |
20|league upon the teams, the individual athletes, or both, and which |
| |
21|uses a salary structure to compensate the athletes; |
| |
22| 60. Sales of tickets for admission to an annual event sponsored |
| |
23|by an educational and charitable organization of women which is |
| |
24|exempt from taxation pursuant to the provisions of the Internal |
| |
Req. No. 1364 Page 26
___________________________________________________________________________
1|Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission |
| |
2|promoting volunteerism, developing the potential of women, and |
| |
3|improving the community through the effective action and leadership |
| |
4|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 an |
| |
24|organization which is part of a national volunteer women's service |
| |
Req. No. 1364 Page 27
___________________________________________________________________________
1|organization dedicated to promoting patriotism, preserving American |
| |
2|history, and securing better education for children and which has at |
| |
3|least 168,000 members in 3,000 chapters across the United States; |
| |
4| 63. Sales of tangible personal property or services to or by a |
| |
5|YWCA or YMCA organization which is part of a national nonprofit |
| |
6|community service organization working to meet the health and social |
| |
7|service needs of its members across the United States; |
| |
8| 64. Sales of tangible personal property or services to or by a |
| |
9|veteran's organization which is exempt from taxation pursuant to the |
| |
10|provisions of the Internal Revenue Code, 26 U.S.C., Section |
| |
11|501(c)(19) and which is known as the Veterans of Foreign Wars of the |
| |
12|United States, Oklahoma Chapters; |
| |
13| 65. Sales of boxes of food by a church or by an organization, |
| |
14|which is exempt from taxation pursuant to the provisions of the |
| |
15|Internal Revenue Code, 26 U.S.C., Section 501(c)(3). To qualify |
| |
16|under the provisions of this paragraph, the organization must be |
| |
17|organized for the primary purpose of feeding needy individuals or to |
| |
18|encourage volunteer service by requiring such service in order to |
| |
19|purchase food. These boxes shall only contain edible staple food |
| |
20|items; |
| |
21| 66. Sales of tangible personal property or services to any |
| |
22|person with whom a church has duly entered into a construction |
| |
23|contract, necessary for carrying out such contract or to any |
| |
24|subcontractor to such a construction contract; |
| |
Req. No. 1364 Page 28
___________________________________________________________________________
1| 67. Sales of tangible personal property or services used |
| |
2|exclusively for charitable or educational purposes, to or by an |
| |
3|organization which: |
| |
4| a. is exempt from taxation pursuant to the provisions of |
| |
5| the Internal Revenue Code, 26 U.S.C., Section |
| |
6| 501(c)(3), |
| |
7| b. has filed a Not-for-Profit Certificate of |
| |
8| Incorporation in this state, and |
| |
9| c. is organized for the purpose of: |
| |
10| (1) providing training and education to |
| |
11| developmentally disabled individuals, |
| |
12| (2) educating the community about the rights, |
| |
13| abilities, and strengths of developmentally |
| |
14| disabled individuals, and |
| |
15| (3) promoting unity among developmentally disabled |
| |
16| individuals in their community and geographic |
| |
17| area; |
| |
18| 68. Sales of tangible personal property or services to any |
| |
19|organization which is a shelter for abused, neglected, or abandoned |
| |
20|children and which is exempt from taxation pursuant to the |
| |
21|provisions of the Internal Revenue Code, 26 U.S.C., Section |
| |
22|501(c)(3); provided, until July 1, 2008, such exemption shall apply |
| |
23|only to eligible shelters for children from birth to age twelve (12) |
| |
24| |
| |
Req. No. 1364 Page 29
___________________________________________________________________________
1|and after July 1, 2008, such exemption shall apply to eligible |
| |
2|shelters for children from birth to age eighteen (18); |
| |
3| 69. Sales of tangible personal property or services to a child |
| |
4|care center which is licensed pursuant to the Oklahoma Child Care |
| |
5|Facilities Licensing Act and which: |
| |
6| a. possesses a 3-star rating from the Department of |
| |
7| Human Services Reaching for the Stars Program or a |
| |
8| national accreditation, and |
| |
9| b. allows on-site universal prekindergarten education to |
| |
10| be provided to four-year-old children through a |
| |
11| contractual agreement with any public school or school |
| |
12| district. |
| |
13| For the purposes of this paragraph, sales made to any person, |
| |
14|firm, agency, or entity that has entered previously into a |
| |
15|contractual relationship with a child care center for construction |
| |
16|and improvement of buildings and other structures owned by the child |
| |
17|care center and operated for educational purposes shall be |
| |
18|considered sales made to a child care center. Any such person, |
| |
19|firm, agency, or entity making purchases on behalf of a child care |
| |
20|center shall certify, in writing, on the copy of the invoice or |
| |
21|sales ticket the nature of the purchase. Any such person, or person |
| |
22|acting on behalf of a firm, agency, or entity making purchases on |
| |
23|behalf of a child care center in violation of this paragraph shall |
| |
24|be guilty of a misdemeanor and upon conviction thereof shall be |
| |
Req. No. 1364 Page 30
___________________________________________________________________________
1|fined an amount equal to double the amount of sales tax involved or |
| |
2|incarcerated for not more than sixty (60) days or both; |
| |
3| 70. a. Sales of tangible personal property to a service |
| |
4| organization of mothers who have children who are |
| |
5| serving or who have served in the military, which |
| |
6| service organization is exempt from taxation pursuant |
| |
7| to the provisions of the Internal Revenue Code, 26 |
| |
8| U.S.C., Section 501(c)(19) and which is known as the |
| |
9| Blue Star Mothers of America, Inc. The exemption |
| |
10| provided by this paragraph shall only apply to the |
| |
11| purchase of tangible personal property actually sent |
| |
12| to United States military personnel overseas who are |
| |
13| serving in a combat zone and not to any other tangible |
| |
14| personal property purchased by the organization. |
| |
15| Provided, this exemption shall not apply to any sales |
| |
16| tax levied by a city, town, county, or any other |
| |
17| jurisdiction in this state. |
| |
18| b. The exemption authorized by this paragraph shall be |
| |
19| administered in the form of a refund from the sales |
| |
20| tax revenues apportioned pursuant to Section 1353 of |
| |
21| this title, and the vendor shall be required to |
| |
22| collect the sales tax otherwise applicable to the |
| |
23| transaction. The purchaser may apply for a refund of |
| |
24| the state sales tax paid in the manner prescribed by |
| |
Req. No. 1364 Page 31
___________________________________________________________________________
1| this paragraph. Within sixty (60) days after the end |
| |
2| of each calendar quarter, any purchaser that is |
| |
3| entitled to make application for a refund based upon |
| |
4| the exempt treatment authorized by this paragraph may |
| |
5| file an application for refund of the state sales |
| |
6| taxes paid during such preceding calendar quarter. |
| |
7| The Tax Commission shall prescribe a form for purposes |
| |
8| of making the application for refund. |
| |
9| c. A purchaser who applies for a refund pursuant to this |
| |
10| paragraph shall certify that the items were actually |
| |
11| sent to military personnel overseas in a combat zone. |
| |
12| Any purchaser that applies for a refund for the |
| |
13| purchase of items that are not authorized for |
| |
14| exemption under this paragraph shall be subject to a |
| |
15| penalty in the amount of Five Hundred Dollars |
| |
16| ($500.00); |
| |
17| 71. Sales of food and snack items to or by an organization |
| |
18|which is exempt from taxation pursuant to the provisions of the |
| |
19|Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whose primary |
| |
20|and principal purpose is providing funding for scholarships in the |
| |
21|medical field; |
| |
22| 72. Sales of tangible personal property or services for use |
| |
23|solely on construction projects for organizations which are exempt |
| |
24|from taxation pursuant to the provisions of the Internal Revenue |
| |
Req. No. 1364 Page 32
___________________________________________________________________________
1|Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing |
| |
2|end-of-life care and access to hospice services to low-income |
| |
3|individuals who live in a facility owned by the organization. The |
| |
4|exemption provided by this paragraph applies to sales to the |
| |
5|organization as well as to sales to any person with whom the |
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6|organization has duly entered into a construction contract, |
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7|necessary for carrying out such contract or to any subcontractor to |
| |
8|such a construction contract. Any person making purchases on behalf |
| |
9|of such organization shall certify, in writing, on the copy of the |
| |
10|invoice or sales ticket to be retained by the vendor that the |
| |
11|purchases are made for and on behalf of such organization and set |
| |
12|out the name of such organization. Any person who wrongfully or |
| |
13|erroneously certifies that purchases are for any of the above-named |
| |
14|organizations or who otherwise violates this section shall be guilty |
| |
15|of a misdemeanor and upon conviction thereof shall be fined an |
| |
16|amount equal to double the amount of sales tax involved or |
| |
17|incarcerated for not more than sixty (60) days or both; |
| |
18| 73. Sales of tickets for admission to events held by |
| |
19|organizations exempt from taxation pursuant to the provisions of the |
| |
20|Internal Revenue Code, 26 U.S.C., Section 501(c)(3) that are |
| |
21|organized for the purpose of supporting general hospitals licensed |
| |
22|by the State Department of Health; |
| |
23| 74. Sales of tangible personal property or services: |
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24| |
| |
Req. No. 1364 Page 33
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1| a. to a foundation which is exempt from taxation pursuant |
| |
2| to the provisions of the Internal Revenue Code, 26 |
| |
3| U.S.C., Section 501(c)(3) and which raises |
| |
4| tax-deductible contributions in support of a wide |
| |
5| range of firearms-related public interest activities |
| |
6| of the National Rifle Association of America and other |
| |
7| organizations that defend and foster Second Amendment |
| |
8| rights, and |
| |
9| b. to or by a grassroots fundraising program for sales |
| |
10| related to events to raise funds for a foundation |
| |
11| meeting the qualifications of subparagraph a of this |
| |
12| paragraph; |
| |
13| 75. Sales by an organization or entity which is exempt from |
| |
14|taxation pursuant to the provisions of the Internal Revenue Code, 26 |
| |
15|U.S.C., Section 501(c)(3) which are related to a fundraising event |
| |
16|sponsored by the organization or entity when the event does not |
| |
17|exceed any five (5) consecutive days and when the sales are not in |
| |
18|the organization's or the entity's regular course of business. |
| |
19|Provided, the exemption provided in this paragraph shall be limited |
| |
20|to tickets sold for admittance to the fundraising event and items |
| |
21|which were donated to the organization or entity for sale at the |
| |
22|event; |
| |
23| 76. Effective November 1, 2017, sales of tangible personal |
| |
24|property or services to an organization which is exempt from |
| |
Req. No. 1364 Page 34
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1|taxation pursuant to the provisions of the Internal Revenue Code, 26 |
| |
2|U.S.C., Section 501(c)(3) and operates as a collaborative model |
| |
3|which connects community agencies in one location to serve |
| |
4|individuals and families affected by violence and where victims have |
| |
5|access to services and advocacy at no cost to the victim; |
| |
6| 77. Effective July 1, 2018, sales of tangible personal property |
| |
7|or services to or by an association which is exempt from taxation |
| |
8|pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., |
| |
9|Section 501(c)(19) and which is known as the National Guard |
| |
10|Association of Oklahoma; |
| |
11| 78. Effective July 1, 2018, sales of tangible personal property |
| |
12|or services to or by an association which is exempt from taxation |
| |
13|pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., |
| |
14|Section 501(c)(4) and which is known as the Marine Corps League of |
| |
15|Oklahoma; |
| |
16| 79. Sales of tangible personal property or services to the |
| |
17|American Legion, whether the purchase is made by the entity |
| |
18|chartered by the United States Congress or is an entity organized |
| |
19|under the laws of this or another state pursuant to the authority of |
| |
20|the national American Legion organization; |
| |
21| 80. Sales of tangible personal property or services to or by an |
| |
22|organization which is: |
| |
23| a. exempt from taxation pursuant to the provisions of |
| |
24| |
| |
Req. No. 1364 Page 35
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1| the Internal Revenue Code, 26 U.S.C., Section |
| |
2| 501(c)(3), |
| |
3| b. verified with a letter from the MIT Fab Foundation as |
| |
4| an official member of the Fab Lab Network in |
| |
5| compliance with the Fab Charter, and |
| |
6| c. able to provide documentation that its primary and |
| |
7| principal purpose is to provide community access to |
| |
8| advanced 21st century manufacturing and digital |
| |
9| fabrication tools for science, technology, |
| |
10| engineering, art, and math (STEAM) learning skills, |
| |
11| developing inventions, creating and sustaining |
| |
12| businesses, and producing personalized products; |
| |
13| 81. Effective November 1, 2021, sales of tangible personal |
| |
14|property or services used solely for construction and remodeling |
| |
15|projects to an organization which is exempt from taxation pursuant |
| |
16|to the provisions of the Internal Revenue Code, 26 U.S.C., Section |
| |
17|501(c)(3), and which meets the following requirements: |
| |
18| a. its primary purpose is to construct or remodel and |
| |
19| sell affordable housing and provide homeownership |
| |
20| education to residents of Oklahoma that have an income |
| |
21| that is below one hundred percent (100%) of the Family |
| |
22| Median Income guidelines as defined by the U.S. |
| |
23| Department of Housing and Urban Development, |
| |
24| |
| |
Req. No. 1364 Page 36
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1| b. it conducts its activities in a manner that serves |
| |
2| public or charitable purposes, rather than commercial |
| |
3| purposes, |
| |
4| c. it receives funding and revenue and charges fees in a |
| |
5| manner that does not incentivize it or its employees |
| |
6| to act other than in the best interests of its |
| |
7| clients, and |
| |
8| d. it compensates its employees in a manner that does |
| |
9| not incentivize employees to act other than in the |
| |
10| best interests of its clients; |
| |
11| 82. Effective November 1, 2021, sales of tangible personal |
| |
12|property or services to a nonprofit entity, organized pursuant to |
| |
13|Oklahoma law before January 1, 2022, exempt from federal income |
| |
14|taxation pursuant to Section 501(c) of the Internal Revenue Code of |
| |
15|1986, as amended, the principal functions of which are to provide |
| |
16|assistance to natural persons following a disaster, with program |
| |
17|emphasis on repair or restoration to single-family residential |
| |
18|dwellings or the construction of a replacement single-family |
| |
19|residential dwelling. As used in this paragraph, "disaster" means |
| |
20|damage to property with or without accompanying injury to persons |
| |
21|from heavy rain, high winds, tornadic winds, drought, wildfire, |
| |
22|snow, ice, geologic disturbances, explosions, chemical accidents or |
| |
23|spills, and other events causing damage to property on a large |
| |
24|scale. For purposes of this paragraph, an entity that expended at |
| |
Req. No. 1364 Page 37
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1|least seventy-five percent (75%) of its funds on the restoration to |
| |
2|single-family housing following a disaster including related general |
| |
3|and administrative expenses, shall be eligible for the exemption |
| |
4|authorized by this paragraph; |
| |
5| 83. Effective November 1, 2021, through December 31, 2024, |
| |
6|sales of tangible personal property or services to a museum that: |
| |
7| a. operates as a part of an organization which is exempt |
| |
8| from taxation pursuant to the provisions of the |
| |
9| Internal Revenue Code, 26 U.S.C., Section 501(c)(3), |
| |
10| b. is not accredited by the American Alliance of |
| |
11| Museums, and |
| |
12| c. operates on an annual budget of less than One Million |
| |
13| Dollars ($1,000,000.00); |
| |
14| 84. Until July 1, 2022, sales of tangible personal property or |
| |
15|services for use in a clinical practice or medical facility operated |
| |
16|by an organization which is exempt from taxation pursuant to the |
| |
17|provisions of the Internal Revenue Code of the United States, 26 |
| |
18|U.S.C., Section 501(c)(3), and which has entered into a joint |
| |
19|operating agreement with the University Hospitals Trust created |
| |
20|pursuant to Section 3224 of Title 63 of the Oklahoma Statutes. The |
| |
21|exemption provided by this paragraph shall be limited to the |
| |
22|purchase of tangible personal property and services for use in |
| |
23|clinical practices or medical facilities acquired or leased by the |
| |
24|organization from the University Hospitals Authority, University |
| |
Req. No. 1364 Page 38
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1|Hospitals Trust, or the University of Oklahoma on or after June 1, |
| |
2|2021; and |
| |
3| 85. Sales of tangible personal property or services to a |
| |
4|nonprofit entity, organized pursuant to Oklahoma law before January |
| |
5|1, 2019, exempt from federal income taxation pursuant to Section |
| |
6|501(c) of the Internal Revenue Code of 1986, as amended, the |
| |
7|principal functions of which are to provide assistance to natural |
| |
8|persons following a disaster, with program emphasis on repair or |
| |
9|restoration to single-family residential dwellings or the |
| |
10|construction of a replacement single-family residential dwelling. |
| |
11|For purposes of this paragraph, an entity operated exclusively for |
| |
12|charitable and educational purposes through the coordination of |
| |
13|volunteers for the disaster recovery of homes (as derived from Part |
| |
14|III, Statement of Program Services, of Internal Revenue Service Form |
| |
15|990) and offers its services free of charge to disaster survivors |
| |
16|statewide who are low income with no or limited means of recovery on |
| |
17|their own for the restoration to single-family housing following a |
| |
18|disaster including related general and administrative expenses, |
| |
19|shall be eligible for the exemption authorized by this paragraph. |
| |
20|The exemption provided by this paragraph shall only be applicable to |
| |
21|sales made on or after the effective date of this act July 1,2022. |
| |
22|As used in this paragraph, "disaster" means damage to property with |
| |
23|or without accompanying injury to persons from heavy rain, high |
| |
24|winds, tornadic winds, drought, wildfire, snow, ice, geologic |
| |
Req. No. 1364 Page 39
___________________________________________________________________________
1|disturbances, explosions, chemical accidents or spills, and other |
| |
2|events causing damage to property on a large scale; and |
| |
3| 86. Sales of tangible personal property or services to or by a |
| |
4|nonprofit corporation, exempt from federal income taxation pursuant |
| |
5|to Section 501(c)(3) of the Internal Revenue Code of 1986, as |
| |
6|amended, which receives donated school supplies or purchases school |
| |
7|supplies in connection with its charitable purposes and programs |
| |
8|pursuant to authorized employees or representatives of a common |
| |
9|school district who make selections of items such as pencils, pens, |
| |
10|notebook paper, notebooks, crayons, markers, backpacks, and similar |
| |
11|items to be provided to students attending classes in kindergarten |
| |
12|through twelfth grade in a common school district where a |
| |
13|substantial percentage of families residing in the district have |
| |
14|household incomes equal to or less than the federal poverty level as |
| |
15|defined by the United States Department of Health and Human |
| |
16|Services. |
| |
17| SECTION 2. This act shall become effective November 1, 2023. |
| |
18| |
| |
19| 59-1-1364 QD 1/16/2023 6:58:24 AM |
| |
20| |
| |
21| |
| |
22| |
| |
23| |
| |
24| |
| |
Req. No. 1364 Page 40