SB 59 — Sales tax; providing exemption for certain organization providing clothing or supplies to certain students. Effective date.

59 Page 64 ofcertify participating in federalwriting, programson orthe accreditedcopy asof defined by the Oklahomainvoice Stateor Regentssales forticket Higherthe Educationnature whichof arethe exemptpurchases, fromand taxationviolation pursuantof tothis theparagraph provisionsshall ofbe thea Internalmisdemeanor Revenueas Codeset offorth 1986,in asparagraph amended,10 26of U.S.C.,this Sectionsection; 501(c)(3);

12.

Tuition and educational fees paid to private institutions of higher education and private elementary and secondary institutions of education accredited by the State Department of Education or registered by the State Board of Education for purposes of participating in federal programs or accredited as defined by the Oklahoma State Regents for Higher Education 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);

Sales of tangible personal property made by or to nonprofit parent-teacher associations or organizations exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., ENGR.Section 501(c)(3), nonprofit local public or private ENR.

59 Page 75 Section 501(c)(3), nonprofit local public or private school foundations which solicit money or property in the name of any public or private school or public school district.

The first Seventy-five Thousand Dollars ($75,000.00) each year from sale of tickets and concessions at athletic events by each ENGR.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 ENR.

59 Page 86 organizationproduction exempt from taxation pursuant to the provisions of theadvertising, Internalpromotion, Revenuepublicity, Codeand ofpublic 1986,relations asprograms; 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;

Complimentary or free tickets for admission to places of amusement, sports, entertainment, exhibition, display, or other ENGR.recreational events or activities which are issued through a box office or other entity which is operated by a state institution of higher education with institutional employees or by a municipality with municipal employees;

S.

B.

NO.

59 Page 9 recreational events or activities which are issued through a box office or other entity which is operated by a state institution of higher education with institutional employees or by a municipality with municipal employees;

Sales of tangible personal property or services to any organization, which takes court-adjudicated juveniles for purposes of rehabilitation, and 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)(3), provided that at least fifty percent (50%) of the juveniles served by such organization are court adjudicated and the organization receives state funds in an amount ENGR.

59 Page 107 provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), provided that at least fifty percent (50%) of the juveniles served by such organization are court adjudicated and the organization receives state funds in an amount less than ten percent (10%) of the annual budget of the organization;

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

ENGR.24.

The first Fifteen Thousand Dollars ($15,000.00) each year from sales of tangible personal property or services to or by a cultural organization established to sponsor and promote educational, charitable, and cultural events for disadvantaged children, and which organization is exempt from taxation pursuant to ENR.

59 Page 118 24.the provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3);

The first Fifteen Thousand Dollars ($15,000.00) each year from sales of tangible personal property or services to or by a cultural organization established to sponsor and promote educational, charitable, and cultural events for disadvantaged children, and which 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)(3);

In order to be eligible for the exemption provided by this paragraph, an amount ENGR.equivalent to the amount of the tax which would otherwise be required to be collected pursuant to the provisions of Section 1350 et seq.

S.

B.

NO.

59 Page 12 equivalent to the amount of the tax which would otherwise be required to be collected pursuant to the provisions of Section 1350 et seq.

30.ENR.

a.

Until July 1, 2022, transfer of tangible personal property made pursuant to Section 3226 of Title 63 of the Oklahoma Statutes by the University Hospitals Trust, and b.

Effective July 1, 2022, transfer of tangible personal property or services to or by:

ENGR.

59 Page 139 (1)30. the University Hospitals Trust created pursuant to Section 3224 of Title 63 of the Oklahoma Statutes, or (2) nonprofit entities which are exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, of the United States, 26 U.S.C., Section 501(c)(3), which have entered into a joint operating agreement with the University Hospitals Trust;

a.

Until July 1, 2022, transfer of tangible personal property made pursuant to Section 3226 of Title 63 of the Oklahoma Statutes by the University Hospitals Trust, and b.

Effective July 1, 2022, transfer of tangible personal property or services to or by:

(1) the University Hospitals Trust created pursuant to Section 3224 of Title 63 of the Oklahoma Statutes, or (2) nonprofit entities which are exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as amended, of the United States, 26 U.S.C., Section 501(c)(3), which have entered into a joint operating agreement with the University Hospitals Trust;

ENGR.a.

the destruction in whole or in part of the satellite or launch vehicle, b.

the failure of a launch to occur or be successful, or ENR.

59 Page 1410 a.c.

the destruction in whole or in part of the satellite or launch vehicle, b.

the failure of a launch to occur or be successful, or c.

however, section 38 property used in support of space flight shall not include general office equipment, any boat, mobile home, motor vehicle, or other vehicle of a class or type required to be ENGR.registered, licensed, titled or documented in this state or by the United States government, or any other property not specifically suited to supporting space activity.

S.

B.

NO.

59 Page 15 registered, licensed, titled or documented in this state or by the United States government, or any other property not specifically suited to supporting space activity.

AnyENR. person furnishing a false affidavit to the vendor for the purpose of evading payment of any tax imposed by Section 1354 of this title shall be subject to the penalties provided by law.

As used in this paragraph, “machinery and equipment” means “section 38 property” as defined in Sections 48(a)(1)(A) and (B)(i) of the Internal Revenue Code of 1986, as amended, which is used as an integral part of the manufacturing, processing, compounding, or producing of items of tangible personal property.

Such term ENGR.

59 Page 1611 includesAny partsperson andfurnishing accessoriesa onlyfalse affidavit to the extentvendor thatfor the exemptionpurpose thereofof isevading consistentpayment withof theany provisionstax imposed by Section 1354 of this paragraph;title shall be subject to the penalties provided by law.

As used in this paragraph, “machinery and equipment” means “section 38 property” as defined in Sections 48(a)(1)(A) and (B)(i) of the Internal Revenue Code of 1986, as amended, which is used as an integral part of the manufacturing, processing, compounding, or producing of items of tangible personal property.

Such term includes parts and accessories only to the extent that the exemption thereof is consistent with the provisions of this paragraph;

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, private 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 ENGR.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 ENR.

59 Page 1712 provisionschampionship 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 501(c)(3);513(i).

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).

The first Fifteen Thousand Dollars ($15,000.00) each year from sales of tangible personal property to or by youth athletic ENGR.teams which are part of an athletic 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), for the purposes of raising funds for the benefit of the team;

S.

B.

NO.

59 Page 18 teams which are part of an athletic 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), for the purposes of raising funds for the benefit of the team;

47.ENR.

Sales of tangible personal property or services to organizations which are exempt from federal taxation pursuant to the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), the memberships of which are limited to honorably discharged veterans, and which furnish financial support to area veterans’ organizations to be used for the purpose of constructing a memorial or museum;

ENGR.

59 Page 1913 48.47.

Sales of tangible personal property or services to organizations which are exempt from federal taxation pursuant to the provisions of Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), the memberships of which are limited to honorably discharged veterans, and which furnish financial support to area veterans’ organizations to be used for the purpose of constructing a memorial or museum;

48.

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 taxation 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 ENGR.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 ENR.

59 Page 2014 priorenters tointo Julya 1,contractual 2008,relationship in counties with a populationpublic oftrust lessor thannonprofit oneentity hundredas thousanddescribed (100,000)by persons,this accordingparagraph shall be considered sales made to the mostpublic recenttrust Federalor Decennialnonprofit Census.entity.

AsThe usedexemption inauthorized by this paragraph,paragraph “constructingshall improvementsbe toadministered orin expanding”the shallform notof meana anyrefund expensefrom forthe routinesales maintenancetax orrevenues generalapportioned repairspursuant to Section of this title and the vendor shall requirebe arequired projectto costcollect ofthe atsales leasttax Oneotherwise Hundredapplicable Thousandto Dollarsthe ($100,000.00).transaction.

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 1353 of this title and the vendor shall be required to collect the sales tax otherwise applicable to the transaction.

The Tax Commission shall determine whether or not the total amount of sales tax exemptions claimed by all purchasers is equal to or less than Six Hundred Fifty Thousand ENGR.Dollars ($650,000.00).

S.

B.

NO.

59 Page 21 Dollars ($650,000.00).

In order to receive the benefit of the exemption authorized by this paragraph, the taxpayer shall be required to make payment of the applicable sales ENGR.ENR.

59 Page 2215 tax at the time of sale to the vendor in the manner otherwise required by law.

As used in this paragraph, “qualified neighborhood watch organization” means an organization that is a not-for-profit corporation under the laws of this state that was created to help prevent criminal activity in an area through ENGR.community involvement and interaction with local law enforcement and which is one of the first two thousand organizations which makes application to the Oklahoma Tax Commission for the exemption after March 29, 2006;

S.

B.

NO.

59 Page 23 community involvement and interaction with local law enforcement and which is one of the first two thousand organizations which makes application to the Oklahoma Tax Commission for the exemption after March 29, 2006;

55.ENR.

Sales of tangible personal property or services 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) for events the principal purpose of which is to provide funding for the preservation of wetlands and habitat for wild ducks;

56.

Sales of tangible personal property or services 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) for events the principal purpose of which ENGR.

59 Page 2416 is55. to provide funding for the preservation and conservation of wild turkeys;

Sales of tangible personal property or services 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) for events the principal purpose of which is to provide funding for the preservation of wetlands and habitat for wild ducks;

56.

Sales of tangible personal property or services 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) for events the principal purpose of which is to provide funding for the preservation and conservation of wild turkeys;

ENGR.ENR.

59 Page 2517 58.

As used in this paragraph, “professional sporting event” means an organized athletic competition between teams that are members of an organized league or association with centralized management, other than a national league or national association, that imposes requirements for participation in the ENGR.league upon the teams, the individual athletes, or both, and which uses a salary structure to compensate the athletes;

S.

B.

NO.

59 Page 26 league upon the teams, the individual athletes, or both, and which uses a salary structure to compensate the athletes;

Sales of tangible personal property or services 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 is itself a member of an 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)(3), if the membership organization is primarily engaged in advancing the purposes of its member organizations through fundraising, public awareness, or other efforts for the benefit of its member organizations, and if the member organization is primarily engaged either in providing educational services and programs concerning health-related diseases and conditions to individuals suffering from such health-related diseases and conditions or their caregivers and family members or support to such individuals, or in health-related research as to ENGR.

59 Page 2718 provisions of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3), if the membership organization is primarily engaged in advancing the purposes of its member organizations through fundraising, public awareness, or other efforts for the benefit of its member organizations, and if the member organization is primarily engaged either in providing educational services and programs concerning health-related diseases and conditions to individuals suffering from such health-related diseases and conditions or their caregivers and family members or support to such individuals, or in health-related research as to such diseases and conditions, or both.

To qualify under the provisions of this paragraph, the organization must be organized for the primary purpose of feeding ENGR.needy individuals or to encourage volunteer service by requiring such service in order to purchase food.

These boxes shall only contain edible staple food items;

ENR.

59 Page 2819 needy66. individuals or to encourage volunteer service by requiring such service in order to purchase food.

These boxes shall only contain edible staple food items;

66.

ENGR.68.

S.

B.

NO.

59 Page 29 68.

a.ENR.

possesses a 3-star rating from the Department of Human Services Reaching for the Stars Program or a national accreditation, and b.

allows on-site universal prekindergarten education to be provided to four-year-old children through a contractual agreement with any public school or school district.

For the purposes of this paragraph, sales made to any person, firm, agency, or entity that has entered previously into a contractual relationship with a child care center for construction and improvement of buildings and other structures owned by the child care center and operated for educational purposes shall be ENGR.

59 Page 3020 considereda. sales made to a child care center.

possesses a 3-star rating from the Department of Human Services Reaching for the Stars Program or a national accreditation, and b.

allows on-site universal prekindergarten education to be provided to four-year-old children through a contractual agreement with any public school or school district.

For the purposes of this paragraph, sales made to any person, firm, agency, or entity that has entered previously into a contractual relationship with a child care center for construction and improvement of buildings and other structures owned by the child care center and operated for educational purposes shall be considered sales made to a child care center.

Provided, this exemption shall not apply to any sales tax levied by a ENGR.city, town, county, or any other jurisdiction in this state.

ENR.

59 Page 3121 city,b. town, county, or any other jurisdiction in this state.

b.

Any purchaser that applies for a refund for the purchase of items that are not authorized for exemption under this paragraph shall be subject to a ENGR.penalty in the amount of Five Hundred Dollars ($500.00);

S.

B.

NO.

59 Page 32 penalty in the amount of Five Hundred Dollars ($500.00);

Any person making purchases on behalf ofENR. such organization 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 organization and set out the name of such organization.

Any person who wrongfully or erroneously certifies that purchases are for any of the above-named organizations or who otherwise violates this section shall be guilty ENGR.

59 Page 3322 of asuch misdemeanororganization andshall uponcertify, convictionin thereofwriting, shallon bethe finedcopy anof amountthe equalinvoice or sales ticket to doublebe theretained amountby ofthe salesvendor taxthat involvedthe orpurchases incarceratedare made for notand moreon thanbehalf sixtyof (60)such daysorganization orand both;set out the name of such organization.

Any person who wrongfully or erroneously certifies that purchases are for any of the above-named organizations or who otherwise violates this section shall be guilty of a misdemeanor and upon conviction thereof shall be fined an amount equal to double the amount of sales tax involved or incarcerated for not more than sixty (60) days or both;

Sales by an organization or entity 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) which are related to ENGR.a fundraising event sponsored by the organization or entity when the event does not exceed any five (5) consecutive days and when the sales are not in the organization’s or the entity’s regular course of business.

Provided, the exemption provided in this paragraph shall be limited to tickets sold for admittance to the fundraising event and items which were donated to the organization or entity for sale at the event;

ENR.

59 Page 3423 a76. fundraising event sponsored by the organization or entity when the event does not exceed any five (5) consecutive days and when the sales are not in the organization’s or the entity’s regular course of business.

Provided, the exemption provided in this paragraph shall be limited to tickets sold for admittance to the fundraising event and items which were donated to the organization or entity for sale at the event;

76.

Effective July 1, 2018, sales of tangible personal property or services to or by an association which is exempt from taxation pursuant to the provisions of the Internal Revenue Code of 1986, as ENGR.amended, 26 U.S.C., Section 501(c)(4) and which is known as the Marine Corps League of Oklahoma;

S.

B.

NO.

59 Page 35 amended, 26 U.S.C., Section 501(c)(4) and which is known as the Marine Corps League of Oklahoma;

able to provide documentation that its primary and principal purpose is to provide community access to advanced 21st century manufacturing and digital fabricationENR. tools for science, technology, engineering, art and math (STEAM) learning skills, developing inventions, creating and sustaining businesses, and producing personalized products;

81.

Effective November 1, 2021, sales of tangible personal property or services used solely for construction and remodeling ENGR.

59 Page 3624 projectsfabrication totools anfor organizationscience, whichtechnology, isengineering, exemptart fromand taxationmath pursuant(STEAM) tolearning theskills, provisionsdeveloping ofinventions, thecreating Internaland Revenuesustaining Codebusinesses, of 1986, as amended, 26 U.S.C., Section 501(c)(3), and whichproducing meetspersonalized theproducts; following requirements:

81.

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, U.S.C., Section 501(c)(3), and which meets the following requirements:

Effective November 1, 2021, sales of tangible personal property or services to a nonprofit entity, organized pursuant to Oklahoma law before January 1, 2022, exempt from federal income taxation pursuant to Section 501(c) of the Internal Revenue Code of ENGR.1986, as amended, the principal functions of which are to provide assistance to natural persons following a disaster, with program emphasis on repair or restoration to single-family residential dwellings or the construction of a replacement single-family residential dwelling.

As used in this paragraph, “disaster” means damage to property with or without accompanying injury to persons ENR.

59 Page 3725 1986,from asheavy amended,rain, thehigh principalwinds, functionstornadic ofwinds, whichdrought, arewildfire, tosnow, provideice, assistancegeologic todisturbances, naturalexplosions, personschemical followingaccidents aor disaster,spills, withand programother emphasisevents oncausing repairdamage or restoration to single-familyproperty residentialon dwellings or the construction of a replacementlarge single-familyscale. residential dwelling.

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.

ENGR.84.

S.

B.

NO.

59 Page 38 84.

86.ENR.

Sales of tangible personal property or services to a nonprofit entity, organized pursuant to Oklahoma law before January 1, 2019, exempt from federal income taxation pursuant to Section 501(c) of the Internal Revenue Code of 1986, as amended, the principal functions of which are to provide assistance to natural persons following a disaster, with program emphasis on repair or ENGR.

59 Page 3926 restoration86. to single-family residential dwellings or the construction of a replacement single-family residential dwelling.

Sales of tangible personal property or services to a nonprofit entity, organized pursuant to Oklahoma law before January 1, 2019, exempt from federal income taxation pursuant to Section 501(c) of the Internal Revenue Code of 1986, as amended, the principal functions of which are to provide assistance to natural persons following a disaster, with program emphasis on repair or restoration to single-family residential dwellings or the construction of a replacement single-family residential dwelling.

Effective July 1, 2022, sales of tangible personal property or services 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 provides support to veterans, active duty members of the Armed Forces, reservists, and members of the National Guard to assist with the transition to ENGR.civilian life and which provides documentation to the Oklahoma Tax Commission that over seventy percent (70%) of its revenue is expended on support for transition to civilian life;

S.

B.

NO.

59 Page 40 civilian life and which provides documentation to the Oklahoma Tax Commission that over seventy percent (70%) of its revenue is expended on support for transition to civilian life;

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 b.ENR.

S.

B.

NO.

59 Page 27 b.

PassedENR. the Senate the 25th day of March, 2025.

Presiding Officer of the Senate Passed the House of Representatives the ____ day of __________, 2025.

Presiding Officer of the House of Representatives ENGR.

59 Page 4128 Passed the Senate the 22nd day of May, 2025.

Presiding Officer of the Senate Passed the House of Representatives the 22nd day of May, 2025.

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.

59 Page 29