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SB474 • 2026

Sales tax; permit requirement; sale for resale tax exemption. Effective date.

Sales tax; permit requirement; sale for resale tax exemption. Effective date.

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Rader
Last action
2025-02-20
Official status
Placed on General Order
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Sales tax; permit requirement; sale for resale tax exemption. Effective date.

Sales tax; permit requirement; sale for resale tax exemption.

What This Bill Does

  • Sales tax; permit requirement; sale for resale tax exemption.
  • Effective date.
  • Bill Summaries/Fiscal Impact for SB 474 (Senate): Introduced (1/9/2025) Fiscal Impact Statements For SB 474 (Senate): SB474 INT FI.PDF (Fiscal (Senate))

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-02-20 Senate

    Placed on General Order

  2. 2025-02-17 Senate

    Reported Do Pass Revenue and Taxation committee; CR filed

  3. 2025-02-04 Senate

    Second Reading referred to Revenue and Taxation

  4. 2025-02-03 Senate

    First Reading

  5. 2025-02-03 Senate

    Authored by Senator Rader

  6. 2025-02-03 Senate

    Coauthored by Representative Lawson (principal House author)

Official Summary Text

Sales tax; permit requirement; sale for resale tax exemption. Effective date.
Bill Summaries/Fiscal Impact for SB 474 (Senate): Introduced (1/9/2025)
Fiscal Impact Statements For SB 474 (Senate): SB474 INT FI.PDF (Fiscal (Senate))

Current Bill Text

Read the full stored bill text
SENATE FLOOR VERSION - SB474 SFLR Page 1
(Bold face denotes Committee Amendments)
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SENATE FLOOR VERSION
February 17, 2025

SENATE BILL NO. 474 By: Rader of the Senate

and

Lawson of the House

An Act relating to sales tax; requiring businesses to
obtain a permit to utilize the sale for resale sales
tax exemption; requiring the Oklahoma Tax Commission
to issue permit upon certain verification;
authorizing the Commission to issue permits by
electronic or other means; requiring vendors to honor
permit for exemption; prohibiting certain vendors
from claiming exemption without permit; providing for
misdemeanor if a person claims an exemption without a
permit; prescribing fine; providing for expiration of
permits; authorizing sellers to use system of
verification upon development; requiring the
Commission to verify validity of permit numbers;
requiring presumption of validity upon certain
verification; providing for codification; and
providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1364.4 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. To utilize the sale for resale sales tax exemption, a
separate sale for resale exemption permit for each business to be
operated must be obtained from the Oklahoma Tax Commission. The

SENATE FLOOR VERSION - SB474 SFLR Page 2
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permit may be obtained at no charge. The Oklahoma Tax Commission
shall grant and issue to each applicant a sale for resale permit for
each business in this state, upon proper application therefor and
verification thereof by the Oklahoma Tax Commission. A business
with multiple locations in this state may operate under one sale for
resale permit. The Oklahoma Tax Commission may additionally provide
for the access to a granted and issued permit electronically, or by
other means as established by the Oklahoma Tax Commission.
B. All vendors shall honor a valid sale for resale permit for
the sales tax exemption authorized under this section and may
utilize the verification procedures outlined in subsection E of this
section. Sales to a person providing proof of such permit shall be
exempt from the tax levied by Section 1350 et seq. of Title 68 of
the Oklahoma Statutes.
C. It shall be unlawful for any person designated as a Group
One, Group Two, Group Three or Group Four vendor, pursuant to
Section 1363 of Title 68 of the Oklahoma Statutes, to claim a sale
for resale exemption within this state unless a sale for resale
permit or permits have been issued to such person. Any person who
claims a sale for resale exemption pursuant to the provisions of
this section without a sale for resale permit or permits, or after a
sale for resale permit has been suspended, upon conviction, shall be
guilty of a misdemeanor punishable by a fine not more than One
Thousand Dollars ($1,000.00).

SENATE FLOOR VERSION - SB474 SFLR Page 3
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D. All sale for resale permits issued pursuant to this section
shall expire at 11:59 p.m. on the next June 30 following the
effective date of issuance.
E. If the Oklahoma Tax Commission develops and adopts an
electronic system for exchanging information with sellers regarding
sale for resale permit numbers of purchasers who are seeking to make
purchases for resale, sellers may use the system to verify the
validity of the sale for resale permit number. The Oklahoma Tax
Commission shall provide such sellers, free of charge, verification
of whether the sale for resale permit numbers are valid. A seller
that verifies a permit number of a purchaser, as outlined in this
subsection, shall create a presumption that the sale was a valid
sale for resale exemption.
SECTION 2. This act shall become effective June 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
February 17, 2025 - DO PASS