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An Act
ENROLLED SENATE
BILL NO. 1400 By: Rader of the Senate
and
Pae of the House
An Act relating to sales tax; amending 68 O.S. 2021,
Sections 1357, as last amended by Section 1, Chapter
391, O.S.L. 2025, and 1357.5 (68 O.S. Supp. 2025,
Section 1357), which relate to exemptions; combining
certain exemptions for aircraft maintenance and
manufacturing facilities and certain aircraft parts;
modifying certain exemptions; updating statutory
reference; updating statutory language; and providing
an effective date.
SUBJECT: Sales tax exemptions
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
last amended by Section 1, Chapter 391, O.S.L. 2025 (68 O.S. Supp.
2025, Section 1357), is amended to read as follows:
Section 1357. Exemptions – General.
There are hereby specifically exempted from the tax levied by
the Oklahoma Sales Tax Code:
1. Transportation of school pupils to and from elementary
schools or high schools in motor or other vehicles;
ENR. S. B. NO. 1400 Page 2
2. Transportation of persons where the fare of each person does
not exceed One Dollar ($1.00), or local transportation of persons
within the corporate limits of a municipality except by taxicabs;
3. Sales for resale to persons engaged in the business of
reselling the articles purchased, whether within or without the
state, provided that such sales to residents of this state are made
to persons to whom sales tax permits have been issued as provided in
the Oklahoma Sales Tax Code. This exemption shall not apply to the
sales of articles made to persons holding permits when such persons
purchase items for their use and which they are not regularly
engaged in the business of reselling; neither shall this exemption
apply to sales of tangible personal property to peddlers, solicitors
and other salespersons who do not have an established place of
business and a sales tax permit. The exemption provided by this
paragraph shall apply to sales of motor fuel or diesel fuel to a
Group Five vendor, but the use of such motor fuel or diesel fuel by
the Group Five vendor shall not be exempt from the tax levied by the
Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
is exempt from sales tax when the motor fuel is for shipment outside
this state and consumed by a common carrier by rail in the conduct
of its business. The sales tax shall apply to the purchase of motor
fuel or diesel fuel in Oklahoma by a common carrier by rail when
such motor fuel is purchased for fueling, within this state, of any
locomotive or other motorized flanged wheel equipment;
4. Sales of advertising space in newspapers and periodicals;
5. Sales of programs relating to sporting and entertainment
events, and sales of advertising on billboards (including, including
signage, posters, panels, marquees or on other similar surfaces,
whether indoors or outdoors) outdoors, or in programs relating to
sporting and entertainment events, and sales of any advertising, to
be displayed at or in connection with a sporting event, via the
Internet, electronic display devices or through public address or
broadcast systems. The exemption authorized by this paragraph shall
be effective for all sales made on or after January 1, 2001;
6. Sales of any advertising, other than the advertising
described by paragraph 5 of this section, via the Internet,
electronic display devices or through the electronic media including
radio, public address or broadcast systems, television (whether,
ENR. S. B. NO. 1400 Page 3
whether through closed circuit broadcasting systems or otherwise)
otherwise, and cable and satellite television, and the servicing of
any advertising devices;
7. Eggs, feed, supplies, machinery, and equipment purchased by
persons regularly engaged in the business of raising worms, fish,
any insect, or any other form of terrestrial or aquatic animal life
and used for the purpose of raising same for marketing. This
exemption shall only be granted and extended to the purchaser when
the items are to be used and in fact are used in the raising of
animal life as set out above. Each purchaser shall certify, in
writing, on the invoice or sales ticket retained by the vendor that
the purchaser is regularly engaged in the business of raising such
animal life and that the items purchased will be used only in such
business. The vendor shall certify to the Oklahoma Tax Commission
that the price of the items has been reduced to grant the full
benefit of the exemption. Violation hereof by the purchaser or
vendor shall be a misdemeanor;
8. Sale Sales of natural or artificial gas and electricity, and
associated delivery or transmission services, when sold exclusively
for residential use. Provided, this exemption shall not apply to
any sales tax levied by a city or town, or a county or any other
jurisdiction in this state;
9. In addition to the exemptions authorized by Section 1357.6
of this title, sales of drugs sold pursuant to a prescription
written for the treatment of human beings by a person licensed to
prescribe the drugs, and sales of insulin and medical oxygen.
Provided, this exemption shall not apply to over-the-counter drugs;
10. Transfers of title or possession of empty, partially
filled, or filled returnable oil and chemical drums to any person
who is not regularly engaged in the business of selling, reselling
or otherwise transferring empty, partially filled or filled
returnable oil drums;
11. Sales of one-way utensils, paper napkins, paper cups,
disposable hot containers, and other one-way carry out materials to
a vendor of meals or beverages;
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12. Sales of food or food products for home consumption which
are purchased in whole or in part with coupons issued pursuant to
the federal food stamp program as authorized by Sections 2011
through 2036d of Title 7 of the United States Code, as to that
portion purchased with such coupons. The exemption provided for
such sales shall be inapplicable to such sales upon the effective
date of any federal law that removes the requirement of the
exemption as a condition for participation by the state in the
federal food stamp program;
13. Sales of food or food products, or any equipment or
supplies used in the preparation of the food or food products to or
by an organization which:
a. 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
which provides and delivers prepared meals for home
consumption to elderly or homebound persons as part of
a program commonly known as “Meals on Wheels” or
“Mobile Meals”, or
b. 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
which receives federal funding pursuant to the Older
Americans Act of 1965, as amended, for the purpose of
providing nutrition programs for the care and benefit
of elderly persons;
14. a. Sales of tangible personal property or services to or
by organizations which are 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:
(1) are primarily involved in the collection and
distribution of food and other household products
to other organizations that facilitate the
distribution of such products to the needy and
such distributee organizations are exempt from
taxation pursuant to the provisions of Section
ENR. S. B. NO. 1400 Page 5
501(c)(3) of the Internal Revenue Code of 1986,
as amended, 26 U.S.C., Section 501(c)(3), or
(2) facilitate the distribution of such products to
the needy.
b. Sales made in the course of business for profit or
savings, competing with other persons engaged in the
same or similar business shall not be exempt under
this paragraph;
15. Sales of tangible personal property or services to
children’s homes which are located on church-owned property and are
operated 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);
16. Sales of the following:
a. computers, data processing equipment, related
peripherals, and telephone, telegraph or
telecommunications service, and equipment for use in a
qualified aircraft maintenance or manufacturing
facility. In order to qualify for the exemption
provided for by this subparagraph, the cost of the
items purchased by the qualified aircraft maintenance
or manufacturing facility shall equal or exceed the
sum of Two Million Dollars ($2,000,000.00),
b. tangible personal property consumed or incorporated in
the construction or expansion of a qualified aircraft
maintenance or manufacturing facility. For purposes
of this subparagraph, sales made to a contractor or
subcontractor that has previously entered into a
contractual relationship with a qualified aircraft
maintenance or manufacturing facility for construction
or expansion of such a facility shall be considered
sales made to a qualified aircraft maintenance or
manufacturing facility,
c. aircraft and aircraft parts provided such sales occur
at a qualified aircraft maintenance facility including
ENR. S. B. NO. 1400 Page 6
sales of machinery, tools, supplies, equipment, and
related tangible personal property and services used
or consumed in the repair, remodeling, or maintenance
of aircraft or aircraft component parts which occur at
a qualified aircraft maintenance facility, and
d. aircraft engine repairs, modification, and replacement
parts, sales of aircraft frame repairs and
modification, aircraft interior modification, and
paint, and sales of services employed in the repair,
modification, and replacement of parts of aircraft
engines, aircraft frame and interior repair and
modification, and paint.
For purposes of this paragraph, “qualified aircraft maintenance
or manufacturing facility” means a new or expanding facility
primarily engaged in aircraft repair, building or rebuilding,
whether or not on a factory basis, whose total cost of construction
exceeds the sum of Five Million Dollars ($5,000,000.00) and which
employs at least two hundred fifty new full-time-equivalent
employees, as certified by the Oklahoma Employment Security
Commission, upon completion of the facility. In order to qualify
for the exemption provided for by this paragraph, the cost of the
items purchased by the qualified aircraft maintenance or
manufacturing facility shall equal or exceed the sum of Two Million
Dollars ($2,000,000.00) As used in this paragraph, “qualified
aircraft maintenance facility” means a facility operated by an air
common carrier including one or more component overhaul support
buildings or structures in an area owned, leased, or controlled by
the air common carrier, at which there were employed at least two
thousand full-time-equivalent employees in the preceding year as
certified by the Oklahoma Employment Security Commission and which
is primarily related to the fabrication, repair, alteration,
modification, refurbishing, maintenance, building, or rebuilding of
commercial aircraft or aircraft parts used in air common carriage.
As used in this paragraph, “air common carrier” shall also include
members of an affiliated group as defined by 26 U.S.C., Section
1504;
17. Sales of tangible personal property consumed or
incorporated in the construction or expansion of a qualified
aircraft maintenance or manufacturing facility as defined in
ENR. S. B. NO. 1400 Page 7
paragraph 16 of this section. For purposes of this paragraph, sales
made to a contractor or subcontractor that has previously entered
into a contractual relationship with a qualified aircraft
maintenance or manufacturing facility for construction or expansion
of such a facility shall be considered sales made to a qualified
aircraft maintenance or manufacturing facility;
18. Sales of the following telecommunications services:
a. interstate and international 800 service. “800
service” means a telecommunications service that
allows a caller to dial a toll-free number without
incurring a charge for the call. The service is
typically marketed under the name “800”, “855”, “866”,
“877” and “888” toll-free calling, and any subsequent
numbers designated by the Federal Communications
Commission,
b. interstate and international 900 service. “900
service” means an inbound toll telecommunications
service purchased by a subscriber that allows the
subscriber’s customers to call in to the subscriber’s
prerecorded announcement or live service. 900 service
does not include the charge for: collection services
provided by the seller of the telecommunications
services to the subscriber, or service or product sold
by the subscriber to the subscriber’s customer. The
service is typically marketed under the name “900”
service, and any subsequent numbers designated by the
Federal Communications Commission,
c. interstate and international private communications
service. “Private communications service” means a
telecommunications service that entitles the customer
to exclusive or priority use of a communications
channel or group of channels between or among
termination points, regardless of the manner in which
such channel or channels are connected, and includes
switching capacity, extension lines, stations and any
other associated services that are provided in
connection with the use of such channel or channels,
ENR. S. B. NO. 1400 Page 8
d. value-added nonvoice data service. “Value-added
nonvoice data service” means a service that otherwise
meets the definition of telecommunications services in
which computer processing applications are used to act
on the form, content, code or protocol of the
information or data primarily for a purpose other than
transmission, conveyance, or routing,
e. interstate and international telecommunications
service which is:
(1) rendered by a company for private use within its
organization, or
(2) used, allocated or distributed by a company to
its affiliated group,
f. regulatory assessments and charges including charges
to fund the Oklahoma Universal Service Fund, the
Oklahoma Lifeline Fund and the Oklahoma High Cost
Fund, and
g. telecommunications nonrecurring charges including, but
not limited to, the installation, connection, change,
or initiation of telecommunications services which are
not associated with a retail consumer sale;
19. 18. Sales of railroad track spikes manufactured and sold
for use in this state in the construction or repair of railroad
tracks, switches, sidings, and turnouts;
20. Sales of aircraft and aircraft parts provided such sales
occur at a qualified aircraft maintenance facility. As used in this
paragraph, “qualified aircraft maintenance facility” means a
facility operated by an air common carrier including one or more
component overhaul support buildings or structures in an area owned,
leased, or controlled by the air common carrier, at which there were
employed at least two thousand full-time-equivalent employees in the
preceding year as certified by the Oklahoma Employment Security
Commission and which is primarily related to the fabrication,
repair, alteration, modification, refurbishing, maintenance,
building, or rebuilding of commercial aircraft or aircraft parts
ENR. S. B. NO. 1400 Page 9
used in air common carriage. For purposes of this paragraph, “air
common carrier” shall also include members of an affiliated group as
defined by Section 1504 of the Internal Revenue Code of 1986, as
amended, 26 U.S.C., Section 1504. Beginning July 1, 2012, the
exemption shall include sales of machinery, tools, supplies,
equipment, and related tangible personal property and services used
or consumed in the repair, remodeling, or maintenance of aircraft,
aircraft engines or aircraft component parts which occur at a
qualified aircraft maintenance facility;
21. 19. Sales of machinery and equipment purchased and used by
persons and establishments primarily engaged in computer services
and data processing:
a. as defined under Industry Group Numbers 7372 and 7373
of the Standard Industrial Classification (SIC)
Manual, latest version, which derive at least fifty
percent (50%) of their annual gross revenues from the
sale of a product or service to an out-of-state buyer
or consumer, and
b. as defined under Industry Group Number 7374 of the SIC
Manual, latest version, which derive at least eighty
percent (80%) of their annual gross revenues from the
sale of a product or service to an out-of-state buyer
or consumer.
Eligibility for the exemption set out in this paragraph shall be
established, subject to review by the Tax Commission, by annually
filing an affidavit with the Tax Commission stating that the
facility so qualifies and such information as required by the Tax
Commission. For purposes of determining whether annual gross
revenues are derived from sales to out-of-state buyers or consumers,
all sales to the federal government shall be considered to be to an
out-of-state buyer or consumer;
22. 20. Sales of prosthetic devices to an individual for use by
such individual. For purposes of this paragraph, “prosthetic
device” shall have the same meaning as provided in Section 1357.6 of
this title, but shall not include corrective eye glasses, contact
lenses, or hearing aids;
ENR. S. B. NO. 1400 Page 10
23. 21. Sales of tangible personal property or services to a
motion picture or television production company to be used or
consumed in connection with an eligible production. For purposes of
this paragraph, “eligible production” means a documentary, special,
music video or a television commercial or television program that
will serve as a pilot for or be a segment of an ongoing dramatic or
situation comedy series filmed or taped for network or national or
regional syndication or a feature-length motion picture intended for
theatrical release or for network or national or regional
syndication or broadcast. The provisions of this paragraph shall
apply to sales occurring on or after July 1, 1996. In order to
qualify for the exemption, the motion picture or television
production company shall file any documentation and information
required to be submitted pursuant to rules promulgated by the Tax
Commission;
24. 22. Sales of diesel fuel sold for consumption by commercial
vessels, barges and other commercial watercraft;
25. 23. Sales of tangible personal property or services to tax-
exempt independent nonprofit biomedical research foundations that
provide educational programs for Oklahoma science students and
teachers and to tax-exempt independent nonprofit community blood
banks headquartered in this state;
26. 24. Effective May 6, 1992, sales of wireless
telecommunications equipment to a vendor who subsequently transfers
the equipment at no charge or for a discounted charge to a consumer
as part of a promotional package or as an inducement to commence or
continue a contract for wireless telecommunications services;
27. 25. Effective January 1, 1991, leases of rail
transportation cars to haul coal to coal-fired plants located in
this state which generate electric power;
28. Beginning July 1, 2005, sales of aircraft engine repairs,
modification, and replacement parts, sales of aircraft frame repairs
and modification, aircraft interior modification, and paint, and
sales of services employed in the repair, modification, and
replacement of parts of aircraft engines, aircraft frame and
interior repair and modification, and paint;
ENR. S. B. NO. 1400 Page 11
29. 26. Sales of materials and supplies to the owner or
operator of a ship, motor vessel, or barge that is used in
interstate or international commerce if the materials and supplies:
a. are loaded on the ship, motor vessel, or barge and
used in the maintenance and operation of the ship,
motor vessel, or barge, or
b. enter into and become component parts of the ship,
motor vessel, or barge;
30. 27. Sales of tangible personal property made at estate
sales at which such property is offered for sale on the premises of
the former residence of the decedent by a person who is not required
to be licensed pursuant to the Transient Merchant Licensing Act, or
who is not otherwise required to obtain a sales tax permit for the
sale of such property pursuant to the provisions of Section 1364 of
this title; provided:
a. such sale or event may not be held for a period
exceeding three (3) consecutive days,
b. the sale must be conducted within six (6) months of
the date of death of the decedent, and
c. the exemption allowed by this paragraph shall not be
allowed for property that was not part of the
decedent’s estate;
31. 28. Beginning January 1, 2004, sales of electricity and
associated delivery and transmission services, when sold exclusively
for use by an oil and gas operator for reservoir dewatering projects
and associated operations commencing on or after July 1, 2003, in
which the initial water-to-oil ratio is greater than or equal to
five-to-one water-to-oil, and such oil and gas development projects
have been classified by the Corporation Commission as a reservoir
dewatering unit;
32. 29. Sales of prewritten computer software that is delivered
electronically. For purposes of this paragraph, “delivered
electronically” means delivered to the purchaser by means other than
tangible storage media;
ENR. S. B. NO. 1400 Page 12
33. 30. Sales of modular dwelling units when built at a
production facility and moved in whole or in parts, to be assembled
on-site, and permanently affixed to the real property and used for
residential or commercial purposes. The exemption provided by this
paragraph shall equal forty-five percent (45%) of the total sales
price of the modular dwelling unit. For purposes of this paragraph,
“modular dwelling unit” means a structure that is not subject to the
motor vehicle excise tax imposed pursuant to Section 2103 of this
title;
34. 31. Sales of tangible personal property or services to:
a. persons who are residents of Oklahoma and have been
honorably discharged from active service in any branch
of the Armed Forces of the United States or Oklahoma
National Guard and who have been certified by the
United States Department of Veterans Affairs or its
successor to be in receipt of disability compensation
at the one-hundred-percent rate and the disability
shall be permanent and have been sustained through
military action or accident or resulting from disease
contracted while in such active service and registered
with the veterans registry created by the Oklahoma
Department of Veterans Affairs, or
b. the surviving spouse of the person in subparagraph a
of this paragraph if the person is deceased and the
spouse has not remarried and the surviving spouse of a
person who is determined by the United States
Department of Defense or any branch of the United
States military to have died while in the line of duty
if the spouse has not remarried. Sales for the
benefit of an eligible person to a spouse of the
eligible person or to a member of the household in
which the eligible person resides and who is
authorized to make purchases on the person’s behalf,
when such eligible person is not present at the sale,
shall also be exempt for purposes of this paragraph.
The Oklahoma Tax Commission shall issue a separate
exemption card to a spouse of an eligible person or to
a member of the household in which the eligible person
ENR. S. B. NO. 1400 Page 13
resides who is authorized to make purchases on the
person’s behalf, if requested by the eligible person.
Sales qualifying for the exemption authorized by this
paragraph shall not exceed Twenty-five Thousand
Dollars ($25,000.00) per year per individual while the
disabled veteran is living. Sales qualifying for the
exemption authorized by this paragraph shall not
exceed One Thousand Dollars ($1,000.00) per year for
an unremarried surviving spouse. Upon request of the
Tax Commission, a person asserting or claiming the
exemption authorized by this paragraph shall provide a
statement, executed under oath, that the total sales
amounts for which the exemption is applicable have not
exceeded Twenty-five Thousand Dollars ($25,000.00) per
year per living disabled veteran or One Thousand
Dollars ($1,000.00) per year for an unremarried
surviving spouse. If the amount of such exempt sales
exceeds such amount, the sales tax in excess of the
authorized amount shall be treated as a direct sales
tax liability and may be recovered by the Tax
Commission in the same manner provided by law for
other taxes including penalty and interest. The Tax
Commission shall promulgate any rules necessary to
implement the provisions of this paragraph, which
shall include rules providing for the disclosure of
information about persons eligible for the exemption
authorized in this paragraph to the Oklahoma
Department of Veterans Affairs, as authorized in
Section 205 of this title. For purposes of the
exemption authorized by this subparagraph, if the
disability determination that would have been made
while the disabled veteran was still living is not
made final until after the death of the disabled
veteran, the exemption authorized by this subparagraph
may still be claimed by the surviving spouse;
35. 32. Sales of electricity to the operator, specifically
designated by the Corporation Commission, of a spacing unit or lease
from which oil is produced or attempted to be produced using
enhanced recovery methods including, but not limited to, increased
pressure in a producing formation through the use of water or
saltwater if the electrical usage is associated with and necessary
ENR. S. B. NO. 1400 Page 14
for the operation of equipment required to inject or circulate
fluids in a producing formation for the purpose of forcing oil or
petroleum into a wellbore for eventual recovery and production from
the wellhead. In order to be eligible for the sales tax exemption
authorized by this paragraph, the total content of oil recovered
after the use of enhanced recovery methods shall not exceed one
percent (1%) by volume. The exemption authorized by this paragraph
shall be applicable only to the state sales tax rate and shall not
be applicable to any county or municipal sales tax rate;
36. 33. Sales of intrastate charter and tour bus
transportation. As used in this paragraph, “intrastate charter and
tour bus transportation” means the transportation of persons from
one location in this state to another location in this state in a
motor vehicle which has been constructed in such a manner that it
may lawfully carry more than eighteen persons, and which is
ordinarily used or rented to carry persons for compensation.
Provided, this exemption shall not apply to regularly scheduled bus
transportation for the general public;
37. 34. Sales of vitamins, minerals, and dietary supplements by
a licensed chiropractor to a person who is the patient of such
chiropractor at the physical location where the chiropractor
provides chiropractic care or services to such patient. The
provisions of this paragraph shall not be applicable to any drug,
medicine, or substance for which a prescription by a licensed
physician is required;
38. 35. Sales of goods, wares, merchandise, tangible personal
property, machinery, and equipment to a web search portal located in
this state which derives at least eighty percent (80%) of its annual
gross revenue from the sale of a product or service to an out-of-
state buyer or consumer. For purposes of this paragraph, “web
search portal” means an establishment classified under North
American Industry Classification System (NAICS) code 519130 which
operates websites that use a search engine to generate and maintain
extensive databases of Internet addresses and content in an easily
searchable format;
39. 36. Sales of tangible personal property consumed or
incorporated in the construction or expansion of a facility for a
corporation organized under Section 437 et seq. of Title 18 of the
ENR. S. B. NO. 1400 Page 15
Oklahoma Statutes as a rural electric cooperative. For purposes of
this paragraph, sales made to a contractor or subcontractor that has
previously entered into a contractual relationship with a rural
electric cooperative for construction or expansion of a facility
shall be considered sales made to a rural electric cooperative;
40. 37. Sales of tangible personal property or services to a
business primarily engaged in the repair of consumer electronic
goods including, but not limited to, cell phones, compact disc
players, personal computers, MP3 players, digital devices for the
storage and retrieval of information through hard-wired or wireless
computer or Internet connections, if the devices are sold to the
business by the original manufacturer of such devices and the
devices are repaired, refitted or refurbished for sale by the entity
qualifying for the exemption authorized by this paragraph directly
to retail consumers or if the devices are sold to another business
entity for sale to retail consumers;
41. 38. On or after July 1, 2019, and prior to July 1, 2024,
sales or leases of rolling stock when sold or leased by the
manufacturer, regardless of whether the purchaser is a public
services corporation engaged in business as a common carrier of
property or passengers by railway, for use or consumption by a
common carrier directly in the rendition of public service. For
purposes of this paragraph, “rolling stock” means locomotives,
autocars, and railroad cars and “sales or leases” includes railroad
car maintenance and retrofitting of railroad cars for their further
use only on the railways;
42. 39. Sales of gold, silver, platinum, palladium or other
bullion items such as coins and bars and legal tender of any nation,
which legal tender is sold according to its value as precious metal
or as an investment. As used in the paragraph, “bullion” means any
precious metal including, but not limited to, gold, silver,
platinum, and palladium, that is in such a state or condition that
its value depends upon its precious metal content and not its form.
The exemption authorized by this paragraph shall not apply to
fabricated metals that have been processed or manufactured for
artistic use or as jewelry;
ENR. S. B. NO. 1400 Page 16
43. 40. Recovery fees on the rental charge from any item of
heavy equipment property rental as provided for in Section 2807.11
of this title; and
44. 41. Sales of firearm safety devices and gun safety devices.
As used in this paragraph:
a. “firearm safety device” means a gun safe, gun case,
gun lock box, trigger lock, barrel lock, or other
device that is designed to be used to store a firearm
and that is designed to be unlocked only by means of a
key, combination, or other similar means, and
b. “gun safety device” means any integral device to be
equipped or installed on a firearm that permits a user
to program the firearm to operate only for specified
persons designated by the user through computerized
locking devices or other means integral to and
permanently part of the firearm.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1357.5, is
amended to read as follows:
Section 1357.5. A. In order to administer the exemption for
sales to a qualified aircraft maintenance or manufacturing facility
as provided by paragraph 12 of Section 1357 of this title
subparagraph b of paragraph 16 of Section 1357 of Title 68 of the
Oklahoma Statutes, there shall be made a sales tax refund for state
and local sales taxes paid by a qualified purchaser for tangible
personal property purchased to be consumed or incorporated in the
construction or expansion of a qualified aircraft maintenance or
manufacturing facility, as defined in paragraph 11 of Section 1357
of this title 16 of Section 1357 of Title 68 of the Oklahoma
Statutes, in the state from the account created by this section.
B. The Oklahoma Tax Commission shall transfer each month from
sales tax collected the amount which the Commission estimates to be
necessary to make the sales tax refund provided by this section to
an account designated as the Tax Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
ENR. S. B. NO. 1400 Page 17
Tax Commission. The amount of the refund shall not exceed the total
state and local sales taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified aircraft
maintenance or manufacturing facility upon the principal amount of
any refund made to such facility for purposes of administering the
exemption provided by paragraph 12 of Section 1357 of this title
subparagraph b of paragraph 16 of Section 1357 of Title 68 of the
Oklahoma Statutes, shall be determined according to the provisions
of this subsection. For any month during which the Oklahoma Tax
Commission transfers a sum to the account prescribed by subsection B
of this section, the Tax Commission shall determine an interest rate
by determining the rate of interest paid for a three-month Treasury
Bill of the United States government as of the first working day of
the month in which the transfer is made. The interest rate so
determined shall accrue upon the amount transferred to the account.
In each subsequent month, the Tax Commission shall determine the
interest rate paid for a three-month Treasury Bill of the United
States government as of the first working day of the month and such
interest rate shall accrue upon any amount transferred during the
month and upon the amounts previously transferred to the account
together with interest previously accrued upon such amounts.
D. For purposes of this section, state and local sales taxes
paid by a contractor or subcontractor for tangible personal property
purchased by that contractor or subcontractor to be consumed or
incorporated in the construction or expansion of a qualified
aircraft maintenance or manufacturing facility pursuant to a
contract with a qualified facility shall, upon proper showing, be
refunded to the qualified facility.
E. The qualified purchaser shall file, within thirty-six (36)
months of the date of purchase, with the Oklahoma Tax Commission the
following documentation for any refund claimed:
1. Invoices indicating the amount of state and local sales tax
billed;
2. Affidavit of each vendor that state and local sales tax
billed has not been audited, rebated, or refunded to the qualified
purchaser but rather the sales tax charged has been collected by the
vendor and remitted to the Oklahoma Tax Commission; and
ENR. S. B. NO. 1400 Page 18
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
F. In the event that state and local sales tax was paid by a
contractor or subcontractor, the qualified purchaser shall file with
the Oklahoma Tax Commission all documentation required in subsection
E of this section but in lieu of the affidavit of each vendor the
qualified facility shall file, for any refund claimed, an affidavit
from the contractor or subcontractor stating that the sales tax
refund of the qualified purchaser is based on state and local sales
tax paid by the contractor or subcontractor on tangible personal
property purchased to be consumed or incorporated in the
construction or expansion of a qualified aircraft maintenance
facility and that the amount of state and local sales tax claimed
was paid to the vendor and no credit, refund, or rebate has been
claimed by the contractor or subcontractor.
G. Only sales of tangible personal property made after the
effective date of this act January 18, 1991, shall be eligible for
the refund established by this section.
H. The qualified purchaser shall file, within sixty (60) months
of the date of the first purchase, with the Oklahoma Tax Commission
a certification issued by the Oklahoma Employment Security
Commission in order to qualify for the refund authorized by this
section.
SECTION 3. This act shall become effective January 1, 2027.
ENR. S. B. NO. 1400 Page 19
Passed the Senate the 25th day of March, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the 6th day of May, 2026.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________