SB 44 — Sales tax; extending sales tax exemption to contractors in connection to performance of a contract with a tax exempt entity. Effective date.

16.

Sales of tangible personal property or services to any person with whom the Oklahoma Tourism and Recreation Department has entered into a public contract and which is necessary for carrying out such contract to assist the Department in the development and production of advertising, promotion, publicity, and public relations programs;

ENGR.

44 Page 96 17.15.

The first Seventy-five Thousand Dollars ($75,000.00) each year from sale of tickets and concessions at athletic events by each organization exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(4);

16.

Sales of tangible personal property or services to any person with whom the Oklahoma Tourism and Recreation Department has entered into a public contract and which is necessary for carrying out such contract to assist the Department in the development and production of advertising, promotion, publicity, and public relations programs;

17.

Fire departments selling tangible personal property for ENGR.the purposes of raising funds shall be limited to no more than six ENR.

44 Page 107 the purposes of raising funds shall be limited to no more than six (6) days each year to raise such funds in order to receive the exemption granted by this paragraph;

any health center as defined in Section 254b of Title 42 of the United States Code, b.

any clinic receiving disbursements of state monies from the Indigent Health Care Revolving Fund pursuant to the provisions of Section 66 of Title 56 of the Oklahoma Statutes, ENGR.c.

S.

B.

NO.

44 Page 11 c.

23.ENR.

S.

B.

NO.

44 Page 8 23.

Any person making purchases on behalf of any ENGR.such museum or other entity shall certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor that the purchases are made for and on behalf of such museum or other entity and set out the name of such museum or other entity.

S.

B.

NO.

44 Page 12 such museum or other entity shall certify, in writing, on the copy of the invoice or sales ticket to be retained by the vendor that the purchases are made for and on behalf of such museum or other entity and set out the name of such museum or other entity.

Sales of tangible personal property or services occurring on or after June 1, 1995, to children’s homes which are supported or ENGR.ENR.

44 Page 139 sponsored by one or more churches, members of which serve as trustees of the home;

ENGR.31.

S.

B.

NO.

44 Page 14 31.

The sale, use, storage, consumption, or distribution in this state, whether by the importer, exporter, or another person, of anyENR. satellite or any associated launch vehicle including components of, and parts and motors for, any such satellite or launch vehicle, imported or caused to be imported into this state for the purpose of export by means of launching into space.

S.

B.

NO.

44 Page 10 any satellite or any associated launch vehicle including components of, and parts and motors for, any such satellite or launch vehicle, imported or caused to be imported into this state for the purpose of export by means of launching into space.

ENGR.35.

S.

B.

NO.

44 Page 15 35.

The term “in support of space flight”, for purposes of this paragraph, means the altering, monitoring, controlling, regulating, adjusting, servicing, or repairing of any space facility, space propulsion systems or space vehicle,ENR. satellite, or station possessing space flight capacity including the components thereof;

ENGR.

44 Page 1611 37.vehicle, satellite, or station possessing space flight capacity including the components thereof;

37.

ENGR.39.

S.

B.

NO.

44 Page 17 39.

Sales of tangible personal property or services for use on campus or school construction projects for the benefit of institutions of The Oklahoma State System of Higher Education, privateENR. institutions of higher education accredited by the Oklahoma State Regents for Higher Education, or any public school or school district when such projects are financed by or through the use of nonprofit entities which are exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3);

42.

Sales of tangible personal property or services by an organization which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), in the course of conducting a national championship sports event, but only if all or a portion of the payment in exchange therefor would qualify as the receipt of a ENGR.

44 Page 1812 qualifiedprivate sponsorshipinstitutions paymentof describedhigher ineducation accredited by the Oklahoma State Regents for Higher Education, or any public school or school district when such projects are financed by or through the use of nonprofit entities which are exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 513(i).501(c)(3);

42.

Sales of tangible personal property or services by an organization which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), in the course of conducting a national championship sports event, but only if all or a portion of the payment in exchange therefor would qualify as the receipt of a qualified sponsorship payment described in Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 513(i).

Sales of tickets for admission to a collegiate athletic event that is held in a facility owned or operated by a municipality or a public trust of which the municipality is the sole beneficiary andENR. that actually determines or is part of a tournament or ENGR.

44 Page 1913 and that actually determines or is part of a tournament or tournament process for determining a conference tournament championship, a conference championship, or a national championship;

Sales of tangible personal property or services to a state that borders this state or any political subdivision of that state, ENGR.but only to the extent that the other state or political subdivision exempts or does not impose a tax on similar sales of items to this state or a political subdivision of this state;

S.

B.

NO.

44 Page 20 but only to the extent that the other state or political subdivision exempts or does not impose a tax on similar sales of items to this state or a political subdivision of this state;

Sales of tangible personal property to a public trust having either a single city, town or county or multiple cities, towns or counties, or combination thereof as beneficiary or beneficiaries or a nonprofit organization which is exempt from taxationENR. pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) for the purpose of constructing improvements to or expanding a hospital or nursing home owned and operated by any such public trust or nonprofit entity prior to July 1, 2008, in counties with a population of less than one hundred thousand (100,000) persons, according to the most recent Federal Decennial Census.

As used in this paragraph, “constructing improvements to or expanding” shall not mean any expense for routine maintenance or general repairs and shall require a project cost of at least One Hundred Thousand Dollars ($100,000.00).

For purposes of this paragraph, sales made to a contractor or subcontractor that enters into a contractual relationship with a public trust or nonprofit entity as described by this paragraph shall be considered ENGR.

44 Page 2114 salestaxation madepursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) for the purpose of constructing improvements to or expanding a hospital or nursing home owned and operated by any such public trust or nonprofit entity.entity prior to July 1, 2008, in counties with a population of less than one hundred thousand (100,000) persons, according to the most recent Federal Decennial Census.

TheAs exemptionused authorizedin by this paragraphparagraph, shall“constructing beimprovements administeredto inor theexpanding” formshall ofnot amean refundany fromexpense thefor salesroutine taxmaintenance revenuesor apportionedgeneral pursuantrepairs to Section 1353 of this title and the vendor shall berequire requireda toproject collectcost theof salesat taxleast otherwiseOne applicableHundred toThousand theDollars transaction.($100,000.00).

For purposes of this paragraph, sales made to a contractor or subcontractor that enters into a contractual relationship with a public trust or nonprofit entity as described by this paragraph shall be considered sales made to the public trust or nonprofit entity.

The exemption authorized by this paragraph shall be administered in the form of a refund from the sales tax revenues apportioned pursuant to Section of this title and the vendor shall be required to collect the sales tax otherwise applicable to the transaction.

The resulting percentage determined for each purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars ENGR.($650,000.00) to determine the amount of refundable sales tax to be paid to each purchaser.

The pro rata refund amount shall be the only method to recover sales taxes paid during the preceding fiscal year and no balance of any sales taxes paid on a pro rata basis ENR.

44 Page 2215 ($650,000.00)shall tobe determine the amountsubject of refundableany salessubsequent taxrefund toclaim bepursuant paid to eachthis purchaser.paragraph;

The pro rata refund amount shall be the only method to recover sales taxes paid during the preceding fiscal year and no balance of any sales taxes paid on a pro rata basis shall be the subject of any subsequent refund claim pursuant to this paragraph;

The total amount of sales tax qualifying for exempt treatment pursuant to this ENGR.paragraph shall not exceed One Hundred Seventy-five Thousand Dollars ($175,000.00) each fiscal year.

S.

B.

NO.

44 Page 23 paragraph shall not exceed One Hundred Seventy-five Thousand Dollars ($175,000.00) each fiscal year.

54.ENR.

Sales of tangible personal property to a nonprofit organization, exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), organized primarily for the purpose of providing services to homeless persons during the day and located in a metropolitan ENGR.

44 Page 2416 area54. with a population in excess of five hundred thousand (500,000) persons according to the latest Federal Decennial Census.

Sales of tangible personal property to a nonprofit organization, exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), organized primarily for the purpose of providing services to homeless persons during the day and located in a metropolitan area with a population in excess of five hundred thousand (500,000) persons according to the latest Federal Decennial Census.

is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), and ENGR.b.

S.

B.

NO.

44 Page 25 b.

(1) serves people with workplace disadvantages and disabilities by providing job training and employment services, as well as job placement opportunities and post-employment support, (2)ENR. has locations in the United States and at least twenty other countries, (3) collects donated clothing and household goods to sell in retail stores and provides contract labor services to business and government, and (4) provides documentation to the Oklahoma Tax Commission that over seventy-five percent (75%) of its revenues are channeled into employment, job training and placement programs, and other critical community services;

58.

Sales of tickets made on or after September 21, 2005, and complimentary or free tickets for admission issued on or after September 21, 2005, which have a value equivalent to the charge that would have otherwise been made, for admission to a professional athletic event in which a team in the National Basketball Association is a participant, which is held in a facility owned or operated by a municipality, a county, or a public trust of which a ENGR.

44 Page 2617 municipality(2) orhas alocations countyin is the soleUnited beneficiary,States and salesat ofleast ticketstwenty madeother oncountries, or(3) aftercollects Julydonated 1,clothing 2007, and complimentaryhousehold orgoods freeto ticketssell forin admissionretail issuedstores onand orprovides aftercontract Julylabor 1,services 2007, which have a value equivalent to thebusiness chargeand thatgovernment, wouldand have(4) otherwiseprovides beendocumentation made, for admission to a professional athletic event in which a team in the NationalOklahoma HockeyTax LeagueCommission isthat aover participant,seventy-five whichpercent is(75%) heldof inits arevenues facilityare ownedchanneled orinto operatedemployment, byjob atraining municipality,and aplacement county,programs, orand aother publiccritical trustcommunity ofservices; which a municipality or a county is the sole beneficiary;

58.

Sales of tickets made on or after September 21, 2005, and complimentary or free tickets for admission issued on or after September 21, 2005, which have a value equivalent to the charge that would have otherwise been made, for admission to a professional athletic event in which a team in the National Basketball Association is a participant, which is held in a facility owned or operated by a municipality, a county, or a public trust of which a municipality or a county is the sole beneficiary, and sales of tickets made on or after July 1, 2007, and complimentary or free tickets for admission issued on or after July 1, 2007, which have a value equivalent to the charge that would have otherwise been made, for admission to a professional athletic event in which a team in the National Hockey League is a participant, which is held in a facility owned or operated by a municipality, a county, or a public trust of which a municipality or a county is the sole beneficiary;

60.ENR.

Sales of tickets for admission to an annual event sponsored by an educational and charitable organization of women which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and has as its mission promoting volunteerism, developing the potential ENGR.

44 Page 2718 of60. women and improving the community through the effective action and leadership of trained volunteers;

Sales of tickets for admission to an annual event sponsored by an educational and charitable organization of women which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and has as its mission promoting volunteerism, developing the potential of women and improving the community through the effective action and leadership of trained volunteers;

Sales of tangible personal property or services to or by an organization which is part of a national volunteer women’s service organization dedicated to promoting patriotism, preserving American ENGR.history, and securing better education for children and which has at least one hundred sixty-eight thousand members in three thousand chapters across the United States;

S.

B.

NO.

44 Page 28 history, and securing better education for children and which has at least one hundred sixty-eight thousand members in three thousand chapters across the United States;

Sales of tangible personal property or services to or by a veteran’s organization which is exempt from taxation pursuant to the provisionsENR. of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(19) and which is known as the Veterans of Foreign Wars of the United States, Oklahoma Chapters;

S.

B.

NO.

44 Page 19 provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(19) and which is known as the Veterans of Foreign Wars of the United States, Oklahoma Chapters;

ENGR.67.

S.

B.

NO.

44 Page 29 67.

68.ENR.

Sales of tangible personal property or services to any organization which is a shelter for abused, neglected, or abandoned children and which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3);

provided, until July 1, 2008, such exemption shall apply only to eligible shelters for children from birth to age twelve (12) and after July 1, 2008, such exemption ENGR.

44 Page 3020 shall68. apply to eligible shelters for children from birth to age eighteen (18);

Sales of tangible personal property or services to any organization which is a shelter for abused, neglected, or abandoned children and which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3);

provided, until July 1, 2008, such exemption shall apply only to eligible shelters for children from birth to age twelve (12) and after July 1, 2008, such exemption shall apply to eligible shelters for children from birth to age eighteen (18);

Any such person, or person acting on behalf of a firm, agency, or entity making purchases on behalf of a child care center in violation of this paragraph shall be guilty of a misdemeanor and upon conviction thereof shall be ENGR.fined an amount equal to double the amount of sales tax involved or incarcerated for not more than sixty (60) days or both;

70.

a.

Sales of tangible personal property to a service organization of mothers who have children who are serving or who have served in the military, which service organization is exempt from taxation pursuant ENR.

44 Page 3121 finedto anthe amountprovisions equalof tothe doubleInternal theRevenue amountCode of sales1986, taxas involvedamended, or26 incarceratedU.S.C., forSection not501(c)(19) moreand thanwhich sixtyis (60)known daysas orthe both;Blue Star Mothers of America, Inc.

70.

a.

Sales of tangible personal property to a service organization of mothers who have children who are serving or who have served in the military, which service organization is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(19) and which is known as the Blue Star Mothers of America, Inc.

The purchaser may apply for a refund of ENGR.the state sales tax paid in the manner prescribed by this paragraph.

S.

B.

NO.

44 Page 32 the state sales tax paid in the manner prescribed by this paragraph.

Sales of food and snack items to or by an organization which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3),ENR. whose primary and principal purpose is providing funding for scholarships in the medical field;

72.

Sales of tangible personal property or services for use solely on construction projects for organizations which are exempt ENGR.

44 Page 3322 from501(c)(3), taxationwhose pursuantprimary to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and whoseprincipal purpose is providing end-of-lifefunding carefor andscholarships access to hospice services to low-income individuals who live in a facility owned by the organization.medical field;

72.

Sales of tangible personal property or services for use solely on construction projects for organizations which are exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and whose purpose is providing end-of-life care and access to hospice services to low-income individuals who live in a facility owned by the organization.

ENGR.a.

to a foundation which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and which raises tax-deductible contributions in support of a wide range of firearms-related public interest activities of the National Rifle Association of America and other organizations that defend and foster Second Amendment rights, and ENR.

44 Page 3423 a.b.

to a foundation which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and which raises tax-deductible contributions in support of a wide range of firearms-related public interest activities of the National Rifle Association of America and other organizations that defend and foster Second Amendment rights, and b.

Effective November 1, 2017, sales of tangible personal property or services to an organization which is exempt from ENGR.taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and operates as a collaborative model which connects community agencies in one location to serve individuals and families affected by violence and where victims have access to services and advocacy at no cost to the victim;

S.

B.

NO.

44 Page 35 taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and operates as a collaborative model which connects community agencies in one location to serve individuals and families affected by violence and where victims have access to services and advocacy at no cost to the victim;

80.ENR.

Sales of tangible personal property or services to or by an organization which is:

ENGR.

44 Page 3624 a.80.

Sales of tangible personal property or services to or by an organization which is:

a.

Effective November 1, 2021, sales of tangible personal property or services used solely for construction and remodeling projects to an organization which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), and which meets the following requirements:

its primary purpose is to construct or remodel and sell affordable housing and provide homeownership education to residents of Oklahoma that have an income that is below one hundred percent (100%) of the Family ENGR.Median Income guidelines as defined by the U.S.

Department of Housing and Urban Development, b.

it conducts its activities in a manner that serves public or charitable purposes, rather than commercial purposes, c.

it receives funding and revenue and charges fees in a manner that does not incentivize it or its employees to act other than in the best interests of its clients, and ENR.

44 Page 3725 Mediand. Income guidelines as defined by the U.S.

Department of Housing and Urban Development, b.

it conducts its activities in a manner that serves public or charitable purposes, rather than commercial purposes, c.

it receives funding and revenue and charges fees in a manner that does not incentivize it or its employees to act other than in the best interests of its clients, and d.

As used in this paragraph, “disaster” means damage to property with or without accompanying injury to persons from heavy rain, high winds, tornadic winds, drought, wildfire, snow, ice, geologic disturbances, explosions, chemical accidents or ENGR.spills, and other events causing damage to property on a large scale.

S.

B.

NO.

44 Page 38 spills, and other events causing damage to property on a large scale.

Until July 1, 2022, sales of tangible personal property or services for use in a clinical practice or medical facility operated by an organization which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, of the UnitedENR. States, 26 U.S.C., Section 501(c)(3), and which has entered into a joint operating agreement with the University Hospitals Trust created pursuant to Section 3224 of Title 63 of the Oklahoma Statutes.

The exemption provided by this paragraph shall be limited ENGR.

44 Page 3926 toUnited theStates, purchase26 ofU.S.C., tangibleSection personal501(c)(3), property and serviceswhich forhas useentered ininto clinicala practicesjoint oroperating medicalagreement facilitieswith acquired or leased by the organization from the University Hospitals Authority,Trust Universitycreated Hospitalspursuant Trust,to orSection the3224 University of OklahomaTitle on63 orof afterthe JuneOklahoma 1,Statutes. 2021;

The exemption provided by this paragraph shall be limited to the purchase of tangible personal property and services for use in clinical practices or medical facilities acquired or leased by the organization from the University Hospitals Authority, University Hospitals Trust, or the University of Oklahoma on or after June 1, 2021;

For purposes of this paragraph, an entity operated exclusively for charitable and educational purposes through the coordination of volunteers for the disaster recovery of homes (as derived from Part III, Statement of Program Services, of Internal Revenue Service Form 990) and which offers its services free of charge to disaster survivors statewide who are low income with no or limited means of ENGR.recovery on their own for the restoration to single-family housing following a disaster including related general and administrative expenses, shall be eligible for the exemption authorized by this paragraph.

The exemption provided by this paragraph shall only be applicable to sales made on or after July 1, 2022.

As used in this paragraph, “disaster” means damage to property with or without accompanying injury to persons from heavy rain, high winds, tornadic winds, drought, wildfire, snow, ice, geologic disturbances, explosions, chemical accidents or spills and other events causing damage to property on a large scale;

ENR.

44 Page 4027 recovery87. on their own for the restoration to single-family housing following a disaster including related general and administrative expenses, shall be eligible for the exemption authorized by this paragraph.

The exemption provided by this paragraph shall only be applicable to sales made on or after July 1, 2022.

As used in this paragraph, “disaster” means damage to property with or without accompanying injury to persons from heavy rain, high winds, tornadic winds, drought, wildfire, snow, ice, geologic disturbances, explosions, chemical accidents or spills and other events causing damage to property on a large scale;

87.

is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), and ENGR.b.

S.

B.

NO.

44 Page 41 b.

PassedENR. the Senate the 16th day of March, 2026.

9 Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2026.

Presiding Officer of the House of Representatives ENGR.

44 Page 4228 Passed the Senate the 16th day of March, 2026.

Presiding Officer of the Senate Passed the House of Representatives the 4th day of May, 2026.

Presiding Officer of the House of Representatives OFFICE OF THE GOVERNOR Received by the Office of the Governor this ____________________ day of ___________________, 20_______, at _______ o'clock _______ M.

By:

_________________________________ Approved by the Governor of the State of Oklahoma this _________ day of ___________________, 20_______, at _______ o'clock _______ M.

_________________________________ Governor of the State of Oklahoma OFFICE OF THE SECRETARY OF STATE Received by the Office of the Secretary of State this __________ day of __________________, 20 _______, at _______ o'clock _______ M.

By:

_________________________________ ENR.

S.

B.

NO.

44 Page 29