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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3916 By: Dollens
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 1356, as last amended by Section
1, Chapter 392, O.S.L. 2025 (68 O.S. Supp. 2025,
Section 1356), which relates to sales tax exemptions
for governmental and nonprofit entities; prohibiting
exemption for certain entity if they charge any
patient insured under a commercial health insurance
policy a certain amount over what the federal
government charges under Medicare; amending 68 O.S.
2021, Section 2359, which relates to organizations
exempt from income taxation; prohibiting exemption
for certain entity if they charge any patient insured
under a commercial health insurance policy a certain
amount over what the federal government charges under
Medicare; amending 68 O.S. 2021, Section 2887, as
amended by Section 1, Chapter 260, O.S.L. 2023 (68
O.S. Supp. 2025, Section 2887), which relates to
exemptions from ad valorem taxation; prohibiting
exemption for certain entity if they charge any
patient insured under a commercial health insurance
policy a certain amount over what the federal
government charges under Medicare; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356, as
last amended by Section 1, Chapter 392, O.S.L. 2025 (68 O.S. Supp.
2025, Section 1356), is amended to read as follows:
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Section 1356. Exemptions - Governmental and nonprofit entities.
There are hereby specifically exempted from the tax levied by
Section 1350 et seq. of this title:
1. Sale of tangible personal property or services to the United
States government or to this state, any political subdivision of
this state, or any agency of a political subdivision of this state;
provided, all sales to contractors in connection with the
performance of any contract with the United States government, this
state, or any of its political subdivisions shall not be exempted
from the tax levied by Section 1350 et seq. of this title, except as
hereinafter provided;
2. Sales of property to agents appointed by or under contract
with agencies or instrumentalities of the United States government
if ownership and possession of such property transfers immediately
to the United States government;
3. Sales of property to agents appointed by or under contract
with a political subdivision of this state if the sale of such
property is associated with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and possession of such property transfers
immediately to the political subdivision or the state;
4. Sales made directly by county, district, or state fair
authorities of this state, upon the premises of the fair authority,
for the sole benefit of the fair authority or sales of admission
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tickets to such fairs or fair events at any location in the state
authorized by county, district, or state fair authorities; provided,
the exemption provided by this paragraph for admission tickets to
fair events shall apply only to any portion of the admission price
that is retained by or distributed to the fair authority. As used
in this paragraph, "fair event" shall be limited to an event held on
the premises of the fair authority in conjunction with and during
the time period of a county, district, or state fair;
5. Sale of food in cafeterias or lunchrooms of elementary
schools, high schools, colleges, or universities which are operated
primarily for teachers and pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, charitable, or
educational societies or organizations by regular members thereof,
provided, such societies or organizations operate under what is
commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a profit which inures
to the benefit of any individual member or members thereof to the
exclusion of other members and dues paid monthly or annually to
privately owned scientific and educational libraries by members
sharing the use of services rendered by such libraries with students
interested in the study of geology, petroleum engineering, or
related subjects;
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7. Sale of tangible personal property or services to or by
churches, except sales made in the course of business for profit or
savings, competing with other persons engaged in the same, or a
similar business or sale of tangible personal property or services
by an organization exempt from federal income tax pursuant to
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
made on behalf of or at the request of a church or churches if the
sale of such property is conducted not more than once each calendar
year for a period not to exceed three (3) days by the organization
and proceeds from the sale of such property are used by the church
or churches or by the organization for charitable purposes;
8. The amount of proceeds received from the sale of admission
tickets which is separately stated on the ticket of admission for
the repayment of money borrowed by any accredited state-supported
college or university or any public trust of which a county in this
state is the beneficiary, for the purpose of constructing or
enlarging any facility to be used for the staging of an athletic
event, a theatrical production, or any other form of entertainment,
edification or cultural cultivation to which entry is gained with a
paid admission ticket. Such facilities include, but are not limited
to, athletic fields, athletic stadiums, field houses, amphitheaters,
and theaters. To be eligible for this sales tax exemption, the
amount separately stated on the admission ticket shall be a
surcharge which is imposed, collected, and used for the sole purpose
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of servicing or aiding in the servicing of debt incurred by the
college or university to effect the capital improvements
hereinbefore described;
9. Sales of tangible personal property or services to the
council organizations or similar state supervisory organizations of
the Boy Scouts of America, Girl Scouts of the U.S.A., and Camp Fire;
10. Sale of tangible personal property or services to any
county, municipality, rural water district, public school district,
city-county library system, the institutions of The Oklahoma State
System of Higher Education, the Grand River Dam Authority, the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Municipal Power Authority, City of Tulsa-Rogers County Port
Authority, Muskogee City-County Port Authority, the Oklahoma
Department of Veterans Affairs, the Broken Bow Economic Development
Authority, Ardmore Development Authority, Durant Industrial
Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
Master Conservancy District, Arbuckle Master Conservancy District,
Fort Cobb Reservoir Master Conservancy District, Foss Reservoir
Master Conservancy District, Mountain Park Master Conservancy
District, Waurika Lake Master Conservancy District and the Office of
Management and Enterprise Services only when carrying out a public
construction contract on behalf of the Oklahoma Department of
Veterans Affairs, and effective July 1, 2022, the University
Hospitals Trust, or to any person with whom any of the above-named
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subdivisions or agencies of this state has duly entered into a
public contract pursuant to law, necessary for carrying out such
public contract or to any subcontractor to such a public contract.
Any person making purchases on behalf of such subdivision or agency
of this state 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 subdivision or agency of this state
and set out the name of such public subdivision or agency. Any
person who wrongfully or erroneously certifies that purchases are
for any of the above-named subdivisions or agencies of this state 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;
11. Sales of tangible personal property or services 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) including materials, supplies, and equipment used in the
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construction and improvement of buildings and other structures owned
by the institutions and operated for educational purposes.
Any person, firm, agency, or entity making purchases on behalf
of any institution, agency or subdivision in this state, shall
certify in writing, on the copy of the invoice or sales ticket the
nature of the purchases, and violation of this paragraph shall be a
misdemeanor as set forth in paragraph 10 of this section;
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);
13. a. Sales of tangible personal property made by:
(1) a public school,
(2) a private school offering instruction for grade
levels kindergarten through twelfth grade,
(3) a public school district,
(4) a public or private school board,
(5) a public or private school student group or
organization,
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(6) a parent-teacher association or organization
other than as specified in subparagraph b of this
paragraph, or
(7) public or private school personnel for purposes
of raising funds for the benefit of a public or
private school, public school district, public or
private school board, or public or private school
student group or organization, or
b. 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.,
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 exemption provided by this paragraph for sales made by a
public or private school shall be limited to those public or private
schools accredited by the State Department of Education or
registered by the State Board of Education for purposes of
participating in federal programs. Sale of tangible personal
property in this paragraph shall include sale of admission tickets
and concessions at athletic events;
14. Sales of tangible personal property by:
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a. local 4-H clubs,
b. county, regional or state 4-H councils,
c. county, regional or state 4-H committees,
d. 4-H leader associations,
e. county, regional or state 4-H foundations, and
f. authorized 4-H camps and training centers.
The exemption provided by this paragraph shall be limited to
sales for the purpose of raising funds for the benefit of such
organizations. Sale of tangible personal property exempted by this
paragraph shall include sale of admission tickets;
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. Sales of tangible personal property or services to fire
departments organized pursuant to Section 592 of Title 18 of the
Oklahoma Statutes, which items are to be used for the purposes of
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the fire department. Any person making purchases on behalf of any
such fire department 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 fire department and set
out the name of such fire department. Any person who wrongfully or
erroneously certifies that the purchases are for any such fire
department or who otherwise violates the provisions of this section
shall be deemed 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;
18. Complimentary or free tickets for admission to places of
amusement, sports, entertainment, exhibition, display, or other
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;
19. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property by fire departments
organized pursuant to Title 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the benefit of the fire
department. Fire departments selling tangible personal property for
the purposes of raising funds shall be limited to no more than six
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(6) days each year to raise such funds in order to receive the
exemption granted by this paragraph;
20. Sales of tangible personal property or services to any Boys
& Girls Clubs of America affiliate in this state which is not
affiliated with the Salvation Army 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);
21. 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
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;
22. Sales of tangible personal property or services to:
a. 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,
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c. any community-based health center which meets all of
the following criteria:
(1) provides primary care services at no cost to the
recipient, and
(2) is exempt from 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), and
d. any community mental health center as defined in
Section 3-302 of Title 43A of the Oklahoma Statutes.
This exemption shall not apply to the entities provided for in
subparagraphs a through d of this paragraph if they charge any
patient insured under a commercial health insurance policy an amount
exceeding two hundred percent (200%) of the Medicare reimbursement
rate for the same service or substantially equivalent service as
published by the Centers for Medicare and Medicaid Services for the
applicable geographic region;
23. Dues or fees including free or complimentary dues or fees
which have a value equivalent to the charge that could have
otherwise been made, to YMCAs, YWCAs, or municipally-owned
municipally owned recreation centers for the use of facilities and
programs;
24. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property or services to or by a
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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);
25. Sales of tangible personal property or services to museums
or other entities which have been accredited by the American
Alliance of Museums. Any person making purchases on behalf of any
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. Any person who
wrongfully or erroneously certifies that the purchases are for any
such museum or other entity or who otherwise violates the provisions
of this paragraph shall be deemed 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 by both such fine and incarceration;
26. Sales of tickets for admission by any museum accredited by
the American Alliance of Museums. In order to be eligible for the
exemption provided by this paragraph, an amount equivalent to the
amount of the tax which would otherwise be required to be collected
pursuant to the provisions of Section 1350 et seq. of this title
shall be separately stated on the admission ticket and shall be
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collected and used for the sole purpose of servicing or aiding in
the servicing of debt incurred by the museum to effect the
construction, enlarging or renovation of any facility to be used for
entertainment, edification, or cultural cultivation to which entry
is gained with a paid admission ticket;
27. Sales of tangible personal property or services occurring
on or after June 1, 1995, to children's homes which are supported or
sponsored by one or more churches, members of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veterans, Department of
Oklahoma, Inc., and subordinate chapters thereof;
29. Sales of tangible personal property or services to youth
camps which are supported or sponsored by one or more churches,
members of which serve as trustees of the organization;
30. 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
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(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;
31. Sales of tangible personal property or services to a
municipality, county, or school district pursuant to a lease or
lease-purchase agreement executed between the vendor and a
municipality, county, or school district. A copy of the lease or
lease-purchase agreement shall be retained by the vendor;
32. Sales of tangible personal property or services to any
spaceport user, as defined in the Oklahoma Space Industry
Development Act;
33. The sale, use, storage, consumption, or distribution in
this state, whether by the importer, exporter, or another person, of
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. This exemption provided by
this paragraph shall not be affected by:
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
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c. the absence of any transfer or title to, or possession
of, the satellite or launch vehicle after launch;
34. The sale, lease, use, storage, consumption, or distribution
in this state of any space facility, space propulsion system or
space vehicle, satellite, or station of any kind possessing space
flight capacity including components thereof;
35. The sale, lease, use, storage, consumption, or distribution
in this state of tangible personal property, placed on or used
aboard any space facility, space propulsion system or space vehicle,
satellite, or station possessing space flight capacity, which is
launched into space, irrespective of whether such tangible property
is returned to this state for subsequent use, storage, or
consumption in any manner;
36. The sale, lease, use, storage, consumption, or distribution
in this state of tangible personal property meeting the definition
of "section 38 property" as defined in Sections 48(a)(1)(A) and
(B)(i) of the Internal Revenue Code of 1986, as amended, that is an
integral part of and used primarily in support of space flight;
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
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. The term "in support of space
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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, satellite, or station possessing space flight capacity
including the components thereof;
37. The purchase or lease of machinery and equipment for use at
a fixed location in this state, which is used exclusively in the
manufacturing, processing, compounding, or producing of any space
facility, space propulsion system or space vehicle, satellite, or
station of any kind possessing space flight capacity. Provided, the
exemption provided for in this paragraph shall not be allowed unless
the purchaser or lessee signs an affidavit stating that the item or
items to be exempted are for the exclusive use designated herein.
Any 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
includes parts and accessories only to the extent that the exemption
thereof is consistent with the provisions of this paragraph;
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38. The amount of a surcharge or any other amount which is
separately stated on an admission ticket which is imposed, collected
and used for the sole purpose of constructing, remodeling, or
enlarging facilities of a public trust having a municipality or
county as its sole beneficiary;
39. Sales of tangible personal property or services which are
directly used in or for the benefit of a state park in this state,
which are made 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 organized
primarily for the purpose of supporting one or more state parks
located in this state;
40. The sale, lease, or use of parking privileges by an
institution of The Oklahoma State System of Higher Education;
41. 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
provisions of the Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c)(3);
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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 exempted
pursuant to this paragraph shall be exempt from all Oklahoma sales,
use, excise, and gross receipts taxes;
43. Sales of tangible personal property or services to or by an
organization which:
a. 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),
b. is affiliated with a comprehensive university within
The Oklahoma State System of Higher Education, and
c. has been organized primarily for the purpose of
providing education and teacher training and
conducting events relating to robotics;
44. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property to or by youth athletic
teams which are part of an athletic organization exempt from
taxation pursuant to the provisions of the Internal Revenue Code of
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1986, as amended, 26 U.S.C., Section 501(c)(4), for the purposes of
raising funds for the benefit of the team;
45. 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
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;
46. 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) and is operating the Oklahoma City
National Memorial and Museum, an affiliate of the National Park
System;
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 or services on or after
January 1, 2003, to an organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code of 1986, as
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amended, 26 U.S.C., Section 501(c)(3) that is expending monies
received from a private foundation grant in conjunction with
expenditures of local sales tax revenue to construct a local public
library;
49. Sales of tangible personal property or services to a state
that borders this state or any political subdivision of that state,
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;
50. Effective July 1, 2005, sales of tangible personal property
or services to the career technology student organizations under the
direction and supervision of the Oklahoma Department of Career and
Technology Education;
51. 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
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
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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
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 purchaser
may apply for a refund of the sales tax paid in the manner
prescribed by this paragraph. Within thirty (30) days after the end
of each fiscal year, any purchaser that is entitled to make
application for a refund based upon the exempt treatment authorized
by this paragraph may file an application for refund of the sales
taxes paid during such preceding fiscal year. The Oklahoma Tax
Commission shall prescribe a form for purposes of making the
application for refund. 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
Dollars ($650,000.00). If such claims are less than or equal to
that amount, the Tax Commission shall make refunds to the purchasers
in the full amount of the documented and verified sales tax amounts.
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If such claims by all purchasers are in excess of Six Hundred Fifty
Thousand Dollars ($650,000.00), the Tax Commission shall determine
the amount of each purchaser's claim, the total amount of all claims
by all purchasers, and the percentage each purchaser's claim amount
bears to the total. The resulting percentage determined for each
purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars
($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
shall be the subject of any subsequent refund claim pursuant to this
paragraph;
52. Effective July 1, 2006, sales of tangible personal property
or services to any organization which assists, trains, educates, and
provides housing for physically and mentally disabled persons 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) and that receives at least eighty-five percent (85%) of
its annual budget from state or federal funds. 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
tax at the time of sale to the vendor in the manner otherwise
required by law. Notwithstanding any other provision of the Uniform
Tax Procedure Code to the contrary, the taxpayer shall be authorized
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to file a claim for refund of sales taxes paid that qualify for the
exemption authorized by this paragraph for a period of one (1) year
after the date of the sale transaction. The taxpayer shall be
required to provide documentation as may be prescribed by the
Oklahoma Tax Commission in support of the refund claim. The total
amount of sales tax qualifying for exempt treatment pursuant to this
paragraph shall not exceed One Hundred Seventy-five Thousand Dollars
($175,000.00) each fiscal year. Claims for refund shall be
processed in the order in which such claims are received by the
Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
the total amount of refunds payable for a fiscal year, such claim
shall be barred;
53. The first Two Thousand Dollars ($2,000.00) each year of
sales of tangible personal property or services to, by, or for the
benefit of a qualified neighborhood watch organization that is
endorsed or supported by or working directly with a law enforcement
agency with jurisdiction in the area in which the neighborhood watch
organization is located. 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
community involvement and interaction with local law enforcement and
which is one of the first two thousand organizations which makes
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application to the Oklahoma Tax Commission for the exemption after
March 29, 2006;
54. 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. The
exemption authorized by this paragraph shall be applicable to sales
of tangible personal property to a qualified entity occurring on or
after January 1, 2005;
55. 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;
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57. Sales of tangible personal property or services to an
organization which:
a. 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. is part of a network of community-based, autonomous
member organizations that meets the following
criteria:
(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) 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
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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;
59. Sales of tickets for admission and complimentary or free
tickets for admission which have a value equivalent to the charge
that would have otherwise been made to a professional sporting event
involving ice hockey, baseball, basketball, football or arena
football, or soccer. 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
league upon the teams, the individual athletes, or both, and which
uses a salary structure to compensate the athletes;
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60. 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;
61. 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
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. In order to qualify for the
exemption authorized by this paragraph, the member nonprofit
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organization shall be required to provide proof to the Oklahoma Tax
Commission of its membership status in the membership organization;
62. 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
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;
63. Sales of tangible personal property or services to or by a
YWCA or YMCA organization which is part of a national nonprofit
community service organization working to meet the health and social
service needs of its members across the United States;
64. Sales of tangible personal property or services to or by a
veteran's 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)(19) and which is known as the Veterans of
Foreign Wars of the United States, Oklahoma Chapters;
65. Sales of boxes of food by a church 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). To qualify under the provisions of this paragraph, the
organization must be organized for the primary purpose of feeding
needy individuals or to encourage volunteer service by requiring
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such service in order to purchase food. These boxes shall only
contain edible staple food items;
66. Sales of tangible personal property or services to any
person with whom a church has duly entered into a construction
contract, necessary for carrying out such contract or to any
subcontractor to such a construction contract;
67. Sales of tangible personal property or services used
exclusively for charitable or educational purposes, to or by an
organization which:
a. 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),
b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities, and strengths of developmentally
disabled individuals, and
(3) promoting unity among developmentally disabled
individuals in their community and geographic
area;
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68. 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);
69. Sales of tangible personal property or services to a child
care center which is licensed pursuant to the Oklahoma Child Care
Facilities Licensing Act and which:
a. 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
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considered sales made to a child care center. Any such person,
firm, agency, or entity making purchases on behalf of a child care
center shall certify, in writing, on the copy of the invoice or
sales ticket the nature of the purchase. 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
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
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 exemption provided by this paragraph shall
only apply to the purchase of tangible personal
property actually sent to United States military
personnel overseas who are serving in a combat zone
and not to any other tangible personal property
purchased by the organization. Provided, this
exemption shall not apply to any sales tax levied by a
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city, town, county, or any other jurisdiction in this
state.
b. 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 purchaser may apply for a refund of
the state sales tax paid in the manner prescribed by
this paragraph. Within sixty (60) days after the end
of each calendar quarter, any purchaser that is
entitled to make application for a refund based upon
the exempt treatment authorized by this paragraph may
file an application for refund of the state sales
taxes paid during such preceding calendar quarter.
The Tax Commission shall prescribe a form for purposes
of making the application for refund.
c. A purchaser who applies for a refund pursuant to this
paragraph shall certify that the items were actually
sent to military personnel overseas in a combat zone.
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
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penalty in the amount of Five Hundred Dollars
($500.00);
71. 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), 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
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. The exemption provided by this paragraph applies to
sales to the organization as well as to sales to any person with
whom the organization has duly entered into a construction contract,
necessary for carrying out such contract or to any subcontractor to
such a construction contract. Any person making purchases on behalf
of 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
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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;
73. Sales of tickets for admission to events held by
organizations exempt from taxation pursuant to the provisions of the
Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
501(c)(3) that are organized for the purpose of supporting general
hospitals licensed by the State Department of Health;
74. Sales of tangible personal property or services:
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
b. to or by a grassroots fundraising program for sales
related to events to raise funds for a foundation
meeting the qualifications of subparagraph a of this
paragraph;
75. 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
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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;
76. Effective November 1, 2017, 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 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;
77. 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
amended, 26 U.S.C., Section 501(c)(19) and which is known as the
National Guard Association of Oklahoma;
78. 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
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amended, 26 U.S.C., Section 501(c)(4) and which is known as the
Marine Corps League of Oklahoma;
79. Sales of tangible personal property or services to the
American Legion, whether the purchase is made by the entity
chartered by the United States Congress or is an entity organized
under the laws of this or another state pursuant to the authority of
the national American Legion organization;
80. Sales of tangible personal property or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisions of the
Internal Revenue Code of 1986, as amended, 26 U.S.C.,
Section 501(c)(3),
b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab Network in
compliance with the Fab Charter, and
c. able to provide documentation that its primary and
principal purpose is to provide community access to
advanced 21st century manufacturing and digital
fabrication 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
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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:
a. 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
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
d. it compensates its employees in a manner that does not
incentivize employees to act other than in the best
interests of its clients;
82. 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
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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
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. For purposes of this paragraph, an entity that expended at
least seventy-five percent (75%) of its funds on 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;
83. Effective November 1, 2021, through December 31, 2024,
sales of tangible personal property or services to a museum that:
a. operates as a part of 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),
b. is not accredited by the American Alliance of Museums,
and
c. operates on an annual budget of less than One Million
Dollars ($1,000,000.00);
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84. 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
United 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
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;
85. Sales of tangible personal property or services to or by a
women's veterans organization, and its subchapters in this state,
that 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 is known as the Oklahoma Women Veterans Organization;
86. 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
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restoration to single-family residential dwellings or the
construction of a replacement single-family residential dwelling.
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
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;
87. 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
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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; and
88. Sales of tangible personal property or services to or by an
organization in this state which:
a. 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. provides documentation to the Oklahoma Tax Commission
showing the organization's principal purpose is to
provide school supplies or articles of clothing for
underserved students attending grades prekindergarten
through twelve at public schools in this state.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2359, is
amended to read as follows:
Section 2359. A. A person or organization exempt from federal
income taxation under the provisions of the Internal Revenue Code
shall also be exempt from the tax imposed by Section 2351 et seq. of
this title in each year in which such person or organization
satisfies the requirements of the Internal Revenue Code for
exemption from federal income taxation. If the exemption applicable
to any person or organization under the provisions of the Internal
Revenue Code is limited or qualified in any manner, the exemption
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from taxes imposed by this article shall be limited or qualified in
a similar manner.
B. Notwithstanding the provisions of subsection A of this
section, the unrelated business taxable income or other income
subject to tax, as computed under the provisions of the Internal
Revenue Code, of any person or organization exempt from the tax
imposed by Section 2351 et seq. of this title and subject to the tax
imposed on such income by the Internal Revenue Code shall be subject
to the tax which would have been imposed by this act but for the
provisions of subsection A of this section.
C. Insurance companies paying, during or for the taxable year,
a tax to this state on gross premium income shall be exempt from the
provisions of this article and the taxes levied thereby.
D. Royalty earned by an inventor from products developed and
manufactured in this state shall be exempt from the tax imposed by
Section 2355 of this title for a seven-year period, pursuant to the
provisions of Section 5064.7 of Title 74 of the Oklahoma Statutes.
E. Tenants of small business incubators shall be exempt for the
tax imposed by Section 2355 of this title, pursuant to the
provisions of Section 5078 of Title 74 of the Oklahoma Statutes.
F. Notwithstanding any other provision of this section, an
organization that operates a hospital otherwise exempt from the tax
under subsection A of this section shall not be exempt if such
hospital charges any patient insured under a commercial health
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insurance policy an amount exceeding two hundred percent (200%) of
the Medicare reimbursement rate for the same service or
substantially equivalent service as published by the Centers for
Medicare and Medicaid Services for the applicable geographic region.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 2887, as
amended by Section 1, Chapter 260, O.S.L. 2023 (68 O.S. Supp. 2025,
Section 2887), is amended to read as follows:
Section 2887. The following property shall be exempt from ad
valorem taxation:
1. All property of the United States, and such property as may
be exempt by reason of treaty stipulations existing at statehood
between the Indians and the United States government, or by reason
of federal laws in effect at statehood, during the time such
treaties or federal laws are in force and effect. In instances
where a federal agency has obtained title to property through
foreclosure, voluntary or involuntary liquidation or bankruptcy,
which was previously subject to ad valorem taxation, the property
may continue to be assessed for ad valorem taxes if such federal
agency has agreed to pay such taxes;
2. All property of this state, and of the counties, school
districts, and municipalities of this state, including property
acquired for the use of such entities pursuant to the terms of a
lease-purchase agreement which provides for the passage of title or
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the release of security interest, if applicable, upon payment of all
rental payments and an additional nominal amount;
3. All property of any college or school, provided such
property is devoted exclusively and directly to the appropriate
objects of such college or school within this state and all property
used exclusively for nonprofit schools and colleges;
4. The books, papers, furniture and scientific or other
apparatus pertaining to any institution, college or society referred
to in paragraph 3 of this section, and devoted exclusively and
directly for the purpose above contemplated, and the like property
of students in any such institution or college, while such property
is used for the purpose of their education;
5. All fraternal orphan homes and other orphan homes;
6. All property used for free public libraries, free museums,
public cemeteries, or free public schools;
7. All property used exclusively and directly for fraternal or
religious purposes within this state. For purposes of this
paragraph, an exemption based on religious purposes includes real
property owned by a church which allows its premises to be used by
an entity if such entity is not required to make rental payments to
the church, is not required to execute a formal lease agreement with
respect to its occupancy of the church premises and conducts
instruction of children from any or all grades for ages preschool
through twelfth grade, including religious instruction consistent
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with the doctrines of the church the premises of which are being
used for that purpose. For purposes of this paragraph, a
requirement by a church to be reimbursed by the entity for utility
expenses, janitorial services or similar expenses shall not be a
basis upon which to remove or deny the exempt status of church
property. Exempt status of church property shall not be removed nor
shall church property be allocated between taxable and exempt status
based on the use of church premises by an entity as described by
this paragraph.
For purposes of administering the exemption authorized by this
section and in order to determine whether a single family
residential property is used exclusively and directly for fraternal
or religious purposes, the fair cash value of a single family
residential property, for which an exemption is claimed as
authorized by this subsection, in excess of Five Hundred Thousand
Dollars ($500,000.00) for the applicable assessment year shall not
be exempt from taxation;
8. All property of any charitable institution organized or
chartered under the laws of this state as a nonprofit or charitable
institution, provided the net income from such property is used
exclusively within this state for charitable purposes and no part of
such income inures to the benefit of any private stockholder,
including property which is not leased or rented to any person other
than a governmental body, a charitable institution or a member of
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the general public who is authorized to be a tenant in property
owned by a charitable institution under Section 501(c)(3) of the
Internal Revenue Code and which includes but is not limited to an
institution that either:
a. additionally satisfies the income standards set forth
in Internal Revenue Service Revenue Procedure 96-32,
which may be audited by the county assessor of the
applicable county, in addition to other requirements
of this subparagraph, as a condition of obtaining and
maintaining the exemption, if:
(1) the property provides residential rental
accommodations regardless of whether services or
meals are provided, and
(2) the property:
(a) is occupied as of the applicable January 1
assessment date if the structure is a
single-family dwelling, or
(b) has an average seventy-five percent (75%)
occupancy rate, based upon the total number
of units suitable for occupancy, during the
calendar year preceding the applicable
January 1 assessment date if the property
contains multiple structures suitable for
multi-family housing. The owner of any
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property subject to the occupancy
requirements prescribed herein shall submit
a report to the county assessor of the
county in which the property is located no
later than December 15 each year regarding
the occupancy rate for the preceding eleven
(11) months. If the report indicates that
the average occupancy rate was less than
seventy-five percent (75%), the county
assessor shall determine the taxable value
of the property for the succeeding
assessment year and the property shall not
be exempt for any subsequent assessment year
unless the average occupancy rate is at
least seventy-five percent (75%) during the
succeeding eleven-month period. Except as
provided in Section 178.6 of Title 60 of the
Oklahoma Statutes, no asset consisting of a
single-family or multi-family dwelling unit
owned by an entity the property of which
would otherwise be exempt pursuant to
subparagraph a of this paragraph shall be
exempt from ad valorem taxation if any such
dwelling unit was improved with or acquired
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with any portion of proceeds from the sale
of obligations issued by any entity
organized pursuant to Section 176 of Title
60 of the Oklahoma Statutes if the interest
income derived from such obligations is
exempt from federal income tax, or
b. (1) for a facility constructed prior to January 1,
2006, is a continuum of care retirement community
providing housing for the aged, licensed under
Oklahoma law, owned by a nonprofit entity
recognized by the Internal Revenue Service as a
Section 501(c)(3) tax-exempt entity and located
in a county with a population of more than five
hundred thousand (500,000) according to the
latest Federal Decennial Census, and
(2) (a) for a facility in which construction was
completed on or after January 1, 2006, is:
i. a continuum of care retirement
community providing housing for the
aged, licensed under Oklahoma law,
ii. owned by a nonprofit entity recognized
by the Internal Revenue Service as a
Section 501(c)(3) tax-exempt entity,
and
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iii. located in any county of the state
regardless of population, or
(b) for a facility other than a facility
described by division (1) of subparagraph b
of this paragraph and which is partially or
fully constructed prior to January 1, 2006,
is:
i. owned and occupied on or after January
1, 2006, by an entity that operates a
continuum of care retirement community
providing housing for the aged,
licensed under Oklahoma law,
ii. owned by a nonprofit entity recognized
by the Internal Revenue Service as a
Section 501(c)(3) tax-exempt entity,
and
iii. is located in any county of the state
regardless of population;
9. All property used exclusively and directly for charitable
purposes within this state, provided the charity using said property
does not pay any rent or remuneration to the owner thereof unless
the owner is a charitable institution described in Section 501(c)(3)
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), or a
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veterans' organization described in Section 501(c)(19) of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(19);
10. All property of any hospital established, organized and
operated by any person, partnership, association, organization,
trust, or corporation, as a nonprofit and charitable hospital,
provided the property and net income from such hospital are used
directly, solely, and exclusively within this state for charitable
purposes and that no part of such income shall inure to the benefit
of any individual, person, partner, shareholder, or stockholder, and
provided further that such hospital facilities shall be open to the
public without discrimination as to race, color or creed and
regardless of ability to pay, and that such hospital is licensed and
otherwise complies with the laws of this state relating to the
licensing and regulation of hospitals. This exemption shall not
apply to the entities provided for in this paragraph if they charge
any patient insured under a commercial health insurance policy an
amount exceeding two hundred percent (200%) of the Medicare
reimbursement rate for the same service or substantially equivalent
service as published by the Centers for Medicare and Medicaid
Services for the applicable geographic region;
11. All libraries and office equipment of ministers of the
Gospel actively engaged in ministerial work in the State of
Oklahoma, where said libraries and office equipment are being used
by said ministers in their ministerial work, shall be deemed to be
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used exclusively for religious purposes and are declared to be
within the meaning of the term "religious purposes" as used in
Article X, Section 6 of the Constitution of the State of Oklahoma;
12. Household goods, tools, implements and livestock of every
person maintaining a home, not exceeding One Hundred Dollars
($100.00) in value or One Thousand Dollars ($1,000.00) in value if
Article X, Section 6 of the Oklahoma Constitution provides for an
exemption in such amount; and in addition thereto, there shall be
exempt from taxation on personal property the further sum of Two
Hundred Dollars ($200.00) to all enlisted and commissioned
personnel, whether on active duty or honorably discharged, who
served in the Armed Forces of the United States during:
a. the Spanish-American War,
b. the period beginning on April 6, 1917, and ending on
July 2, 1921,
c. the period beginning on December 6, 1941, and ending
on such date as the state of national emergency as
declared by the President of the United States shall
cease to exist, or
d. any other or future period during which a state of
national emergency shall have been or shall be
declared to exist by the Congress or the President of
the United States.
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All surviving spouses made so by the death of such enlisted or
commissioned personnel, who are bona fide residents of this state,
shall be entitled to the above additional exemption provided in this
paragraph;
13. Family portraits;
14. All food and fuel provided in kind for the use of the
family not to exceed provisions for one (1) year's time, and all
grain and forage necessary to maintain for one (1) year the
livestock used to provide food for the family. No person from whom
pay is received or expected for board shall be considered a member
of the family within the intent and meaning of this paragraph;
15. All growing crops; and
16. All game animals, fowl and reptile, which are not being
grown for food or sale and which are kept exclusively for
propagation or exhibition, in private grounds or public parks in
this state.
SECTION 4. This act shall become effective November 1, 2026.
60-2-14210 AO 12/16/25