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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 2144 By: Paxton
AS INTRODUCED
An Act relating to taxation; amending 68 O.S. 2021,
Sections 5401, 5402, and 5403, as amended by Section
75, Chapter 171, O.S.L. 2025 (68 O.S. Supp. 2025,
Section 5403), which relate to farm equipment tax;
requiring certain entities to pay tax in lieu of ad
valorem; modifying definition; defining term;
prescribing date that tax is imposed for certain
entities; requiring tax stamp to be based on fair
cash value for certain entities; requiring stamps to
be retained in log; updating statutory language;
updating statutory reference; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 5401, is
amended to read as follows:
Section 5401. A. A tax is hereby imposed, in lieu of the ad
valorem tax on certain items of the whole goods inventories
agricultural equipment and whole goods attachments, both new and
used items, owned and/or or possessed for sale or lease by retailers
of farm tractors and other equipment as defined by subsection C of
this section and by entities and individuals that operate whole
goods equipment.
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B. Items to be taxed in lieu of ad valorem pursuant to the
provisions of this section are those items of inventory of whole
goods agricultural equipment and whole goods attachments thereto
received from suppliers of agricultural equipment, if said such
items have a retail list price of Five Hundred Dollars ($500.00) or
higher but not including repair or replacement parts and those items
of whole goods agricultural equipment and whole goods attachments
owned by entities and individuals that operate whole goods
equipment. The tax shall be paid by the dealer, entity, or
individual on such items in lieu of the annual ad valorem tax
assessment of dealer’s average inventory or property owned by the
dealer, entity, or individual but shall not relieve any other
property of the dealer, entity, or individual from ad valorem
taxation. Each dealer shall maintain a sales log for applicable
items pursuant to this section with a serial number where
applicable. The log shall be subject to inspection by county
assessors. Equipment sold by consignment or by auctions where the
selling agent does not take title to the equipment shall continue to
be subject to ad valorem taxation. Sales of covered whole goods
items between dealers shall be considered wholesale transactions and
shall not be subject to the tax imposed by this section until sold
at retail.
C. For purposes of this act Sections 2805 and 5401 through 5404
of this title, a retailer of farm tractors and other equipment is
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any person having a franchise or dealer agreement for selling and
retailing farm tractors and farm implements. On and after January
1, 1993, those business entities which do not have a franchise or
dealer agreement for retailing farm equipment, but which from time
to time publicly buy and sell such farm equipment, shall also be
subject to the provisions of this section, and the tax imposed by
this section shall apply to the same items and under the same
conditions as apply to franchised dealers.
D. “Whole goods agricultural equipment” shall be defined as any
machine, including, but not limited to, a farm tractor, combine,
plow, irrigation unit, or baler, capable of performing agricultural
operations either with power from its own engine, or when drawn or
otherwise moved by another whole goods unit. “Whole goods
attachments” shall be defined as those complete attachments which,
when fitted to, drawn, or otherwise moved by other equipment,
perform specialized agricultural operations. Such attachments
include, but shall not be limited to, combine headers, mowers,
swathers, shredders, and cultivation and haying equipment.
E. As used Sections 5401 through 5404 of this title:
1. “Agricultural operation” means a farm, including, but not
limited to, the term as defined in Section 1352.1 of this title, a
poultry operation, orchard, ranch, including the business of raising
horses, and dairy operation, as defined in Section 2357.25 of this
title, operated by an individual or entity; and
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2. “Entities and individuals that operate whole goods
equipment” means an agricultural operation, or any individual or
entity that operates whole goods agricultural equipment or whole
goods attachments in the service of an agricultural operation.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 5402, is
amended to read as follows:
Section 5402. A. The in-lieu tax imposed in Section 5401 of
this title shall apply on the date of sale or lease by a dealer and
shall apply for entities and individuals that operate whole goods
equipment on the date one-half (1/2) or more of the taxes are
required to be paid pursuant to paragraph 1 of subsection A of
Section 2913 of this title and shall be evidenced by a tax stamp.
The tax stamp shall be based on the following actual sales price
without reduction for any trade-in for a dealer and the following
fair cash value for entities and individuals that operate whole
goods equipment:
1. Beginning with sales or fair cash value of Five Hundred
Dollars ($500.00) to One Thousand Nine Hundred Ninety-nine Dollars
($1,999.00): $6.00;
2. Two Thousand Dollars ($2,000.00) to Nine Thousand Nine
Hundred Ninety-nine Dollars ($9,999.00): $12.00;
3. Ten Thousand Dollars ($10,000.00) to Nineteen Thousand Nine
Hundred Ninety-nine Dollars ($19,999.00): $18.00;
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4. Twenty Thousand Dollars ($20,000.00) to Twenty-nine Thousand
Nine Hundred Ninety-nine Dollars ($29,999.00): $24.00;
5. Thirty Thousand Dollars ($30,000.00) to Thirty-nine Thousand
Nine Hundred Ninety-nine Dollars ($39,999.00): $36.00;
6. Forty Thousand Dollars ($40,000.00) to Forty-nine Thousand
Nine Hundred Ninety-nine Dollars ($49,999.00): $48.00;
7. Fifty Thousand Dollars ($50,000.00) to Fifty-nine Thousand
Nine Hundred Ninety-nine Dollars ($59,999.00): $60.00;
8. Sixty Thousand Dollars ($60,000.00) to Sixty-nine Thousand
Nine Hundred Ninety-nine Dollars ($69,999.00): $72.00;
9. Seventy Thousand Dollars ($70,000.00) to Seventy-nine
Thousand Nine Hundred Ninety-nine Dollars ($79,999.00): $84.00;
10. Eighty Thousand Dollars ($80,000.00) to Eighty-nine
Thousand Nine Hundred Ninety-nine Dollars ($89,999.00): $96.00; and
11. Ninety Thousand Dollars ($90,000.00) and above: $108.00.
B. The appropriate tax stamp or stamps shall be affixed by the
dealer to the dealer’s copy of the sales invoice covering new or
used whole goods agricultural equipment and whole goods attachments
thereto sold before transferring ownership to any new or used farm
implement, and the appropriate tax stamp or stamps shall be retained
in a log kept by the entities and individuals that operate whole
goods equipment.
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SECTION 3. AMENDATORY 68 O.S. 2021, Section 5403, as
amended by Section 75, Chapter 171, O.S.L. 2025 (68 O.S. Supp. 2025,
Section 5403), is amended to read as follows:
Section 5403. A. The tax stamp or stamps required by Section
5402 of this title to be retained in a log kept by the entities and
individuals that operate whole goods equipment or affixed upon the
dealer’s copy of the sales invoice covering each new or used whole
goods agricultural equipment or whole goods attachment thereto sold
shall be manufactured or purchased by Service Oklahoma in the
required amounts. The tax stamps shall be of such design, color
combination, and material and value in multiples of Six Dollars
($6.00) as Service Oklahoma shall deem necessary for the
administration of this tax and to afford the best security to the
tax revenue involved. The stamps shall be purchased by dealers,
entities, or individuals in the county where the business or
operation is located.
B. Service Oklahoma may require any manufacturer of such tax
stamps to furnish a bond in such amount as it deems necessary to
protect the state and local taxing entities against loss.
C. Service Oklahoma shall distribute such tax stamps to the
county treasurer of each county, taking such receipt therefor as may
be necessary. The county treasurer shall have the responsibility of
the custody and the sale of the stamps to the person required by
Section 5402 of this title to obtain such stamps. In addition, the
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county treasurer shall have the duty of accounting for such stamps
to their his or her respective counties, and to Service Oklahoma as
it may require.
SECTION 4. This act shall become effective January 1, 2027.
60-2-2913 QD 1/15/2026 1:36:16 PM