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An Act
ENROLLED SENATE
BILL NO. 687 By: Hall of the Senate
and
Caldwell (Trey) of the
House
An Act relating to sales tax exemption; amending 68
O.S. 2021, Section 1357.21, as last amended by
Section 1, Chapter 273, O.S.L. 2024 (68 O.S. Supp.
2024, Section 1357.21), which relates to rebate
payments for the sales tax exemption on the
consumption of qualifying broadband equipment;
requiring the Oklahoma Broadband Office and the
Oklahoma Tax Commission to administer program;
prescribing deadlines and procedure for filing
claims; requiring the Oklahoma Broadband Office to
approve or disapprove all claims; requiring Tax
Commission to issue rebate payment for approved
claims; modifying rebate limit; requiring certain
claims to be made on forms prescribed by the Oklahoma
Broadband Office; providing for electronic submission
of certain report; updating statutory language;
creating the Oklahoma Broadband Rebate Revolving
Fund; providing sources of fund; providing for
expenditures from fund; limiting liability of this
state to balance of fund; making an appropriation to
the Tax Commission; directing transfer of funds; and
providing for codification.
SUBJECT: Sales tax exemption rebate
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357.21, as
last amended by Section 1, Chapter 273, O.S.L. 2024 (68 O.S. Supp.
2024, Section 1357.21), is amended to read as follows:
ENR. S. B. NO. 687 Page 2
Section 1357.21. A. The exemption authorized by the provisions
of paragraph 43 of Section 1357 of this title shall be administered
as a rebate. The rebate program shall be administered by the
Oklahoma Broadband Office and the Oklahoma Tax Commission.
B. No claim for a rebate shall be approved unless the equipment
was purchased in order to establish or expand broadband services in
underserved or unserved areas. As used in this subsection and for
purposes of the exemption authorized by paragraph 43 of Section 1357
of this title, “broadband”, “underserved”, and “unserved” shall mean
those services and areas as defined in Section 139.102 of Title 17
of the Oklahoma Statutes.
C. No claim for rebate shall be approved unless the claimant
establishes that as a result of the equipment purchase there has
been net growth in the number of potential customers served in
underserved or unserved areas.
D. In order to qualify for rebate payments during the fiscal
year beginning July 1, 2022, for equipment or other items qualifying
for the exemption authorized by paragraph 43 of Section 1357 of this
title, the items must shall be purchased and placed in service
between January 1, 2022, and December 31, 2023. Claims for rebates
of sales tax or use tax paid for such equipment purchased in
calendar year 2022 shall be filed with the Oklahoma Tax Commission
not later than September 1, 2023, and in subsequent calendar years
shall be filed with the Oklahoma Tax Commission not later than
September 1 of the following year. Beginning in calendar year 2025,
claims for rebates for sales or use tax paid for such equipment
purchased in calendar year 2025 and subsequent calendar years shall
be filed with the Oklahoma Tax Commission Oklahoma Broadband Office
not later than September 1 of the following year.
E. The Oklahoma Broadband Office shall approve or disapprove
all claims for a rebate payment beginning with claims for rebates
for sales or use tax paid for such equipment purchased in calendar
year 2025 and subsequent calendar years and shall notify the
Oklahoma Tax Commission. Upon notification of approval from the
Oklahoma Broadband Office, the Tax Commission shall issue a rebate
payment for all approved claims from funds in the Oklahoma Broadband
Rebate Revolving Fund, created pursuant to Section 2 of this act.
ENR. S. B. NO. 687 Page 3
F. Qualifying purchases do not include supporting or ancillary
functions, such as office operations, field operations, marketing,
transportation, warehousing, data storage, or similar operations
that do not directly result in the distribution of broadband
Internet service. Property directly used or consumed in or during
the provision, creation, or production of a data processing service
or information service, or property the provider grants, sells, or
leases to the customer for use within the home or establishment
receiving broadband is not eligible for a rebate under this section.
F. G. The total amount of rebates that may be paid shall not
exceed Forty-two Million Dollars ($42,000,000.00) with Thirty-one
Million Five Hundred Thousand Dollars ($31,500,000.00) of the total
reserved for eligible projects serving counties having a population
density of fewer than one hundred persons per square mile and Ten
Million Five Hundred Thousand Dollars ($10,500,000.00) of the total
reserved for eligible projects serving counties having a population
density of one hundred or more persons per square mile Fourteen
Million Seventy-one Thousand Six Hundred Ninety-one Dollars
($14,071,691.00).
G. H. The amount of rebate rebates paid to each claimant shall
be computed by dividing the applicable total rebate pool amount by
the dollar amount of claims timely received by the Tax Commission
with respect to each fiscal year, and paying in full the amount of
the claims submitted if the amount of claims are equal to, or less
than, the total rebate pool, or a pro rata share if the total amount
of claims submitted exceed the rebate pool.
H. I. For the fiscal year beginning July 1, 2023, and all
subsequent fiscal years, the The total amount of rebate rebates that
may be paid shall not exceed Forty-two Million Dollars
($42,000,000.00) Fourteen Million Seventy-one Thousand Six Hundred
Ninety-one Dollars ($14,071,691.00).
I. J. Claims for rebate shall be on such forms as the Oklahoma
Tax Commission may prescribe for such purpose and shall contain any
required information or supporting documentation the Commission
requires to verify eligibility for the rebate payment. Claims for
rebate for sales or use tax paid for equipment purchased in calendar
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year 2025 and subsequent calendar years shall be on such forms as
the Oklahoma Broadband Office may prescribe for such purpose.
J. K. The Oklahoma Department of Commerce shall use information
provided by the Oklahoma Tax Commission and the Oklahoma Broadband
Office to prepare a report to identify the qualifying rural
broadband projects completed with the equipment purchased together
with the location of the equipment and the geographic areas served
as a result of the equipment purchases, including the total number
of potential new customers receiving qualifying broadband services
resulting from the project. The report shall not identify any
entity by name that purchased equipment.
K. L. The report shall be filed not later than April 1, 2025,
with respect to rebates paid for equipment purchases made during
calendar years 2022 and 2023 and April 1 of the second succeeding
year for equipment purchases made in subsequent calendar years. The
Oklahoma Tax Commission and the Oklahoma Broadband Office shall make
information available as required by subsection J K of this section
as claims are completed to assist with the timely preparation of the
report.
L. M. The report shall be electronically filed with the
Governor, the Speaker of the House of Representatives and the
President Pro Tempore of the Senate and posted on the Oklahoma
Broadband Office website.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1357.22 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tax Commission to be designated the “Oklahoma
Broadband Rebate Revolving Fund”. The fund shall be a continuing
fund, not subject to fiscal year limitations, and shall consist of
all monies received by the Tax Commission which are specifically
required by law to be deposited in the fund. All monies accruing to
the credit of the fund are hereby appropriated and may be budgeted
and expended by the Commission for the purpose of paying rebate
claims pursuant to Section 1357.21 of Title 68 of the Oklahoma
Statutes. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
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law with the Director of the Office of Management and Enterprise
Services for approval and payment.
B. The liability of this state to make rebate payments pursuant
to the program created in Section 1357.21 of Title 68 of the
Oklahoma Statutes shall be limited to the balance of the Oklahoma
Broadband Rebate Revolving Fund.
SECTION 3. There is hereby appropriated to the Oklahoma Tax
Commission from any monies not otherwise appropriated from the
General Revenue Fund of the State Treasury for the fiscal year
ending June 30, 2025, the sum of Fourteen Million Seventy-one
Thousand Six Hundred Ninety-one Dollars ($14,071,691.00) to be
transferred to the Oklahoma Broadband Rebate Revolving Fund created
pursuant to Section 2 of this act.
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Passed the Senate the 22nd day of May, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 22nd day of May, 2025.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________