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68-1354.


68-1354.
   
   Tax levy - Rate - Sales subject to tax.
   
   A. There is hereby levied upon all sales, not otherwise exempted in
   the Oklahoma Sales Tax Code, Section 1350 et seq. of this title, an
   excise tax of four and one-half percent (4.5%) of the gross receipts
   or gross proceeds of each sale of the following:
   
   1. Tangible personal property, except newspapers and periodicals;
   
   2. Natural or artificial gas, electricity, ice, steam, or any other
   utility or public service, and associated delivery or transmission
   services, except water, sewage and refuse and those specifically
   exempt pursuant to the provisions of Section 1357 of this title;
   
   3. Transportation for hire to persons by common carriers, including
   railroads both steam and electric, motor transportation companies,
   pullman car companies, airlines, and other means of transportation for
   hire, excluding:
   
   a. transportation services provided by a tourism service broker which
   are incidental to the rendition of tourism brokerage services by such
   broker to a customer regardless of whether or not such transportation
   services are actually owned and operated by the tourism service
   broker. For purposes of this subsection, "tourism service broker"
   means any person, firm, association or corporation or any employee of
   such person, firm, association or corporation which, for a fee,
   commission or other valuable consideration, arranges or offers to
   arrange trips, tours or other vacation or recreational travel plans
   for a customer, and
   
   b. transportation services provided by a funeral establishment to
   family members and other persons for purposes of conducting a funeral
   in this state;
   
   4. Telecommunications services that originate and terminate in this
   state and that originate or terminate in this state and are charged to
   the consumer's telephone number or account in this state regardless of
   where the billing for such service is made, and all local
   telecommunications service and rental charges, including all
   installation and construction charges and all service and rental
   charges having any connection with transmission of any message or
   image. Provided:
   
   a. the term "telecommunications services" shall mean the transmission
   of any interactive, two-way electromagnetic communications, including
   voice, image, data and information, through the use of any medium such
   as wires, cables, microwaves, cellular radio, radio waves, light
   waves, or any combination of those or similar media, but shall not
   include the following:
   
   (1) sales of value-added nonvocal services in which computer
   processing applications are used to act on the form, content, code, or
   protocol of the information to be transmitted, including charges for
   the storage of data or information for subsequent retrieval but not
   including services commonly known as voice mail,
   
   (2) any interstate telecommunications service which is:
   
   (a) rendered by a company for private use within its organization, or
   
   (b) used, allocated, or distributed by a company to its affiliated
   group, or
   
   (3) sales of any carrier access services, right of access services,
   telecommunications services to be resold, or telecommunications
   services used in the subsequent provision of, use as a component part
   of, or integrated into end-to-end telecommunications service, and
   
   b. the term "telecommunications services" shall include, but not be
   limited to sales of any interstate telecommunications services which:
   
   (1) entitle the subscriber to inward or outward calling respectively
   between a station associated with an access line in the local
   telephone system area or a station directly connected to any
   interexchange carrier's facilities and telephone or radiotelephone
   stations in diverse geographical locations specified by the
   subscriber, or
   
   (2) entitle the subscriber to private communications services which
   allow exclusive or priority use of a communications channel or group
   of channels between exchanges, and
   
   c. the term "interstate" includes any international service that
   either originates or terminates outside of the fifty (50) United
   States and the District of Columbia;
   
   5. Printing or printed matter of all types, kinds, or character and,
   except for services of printing, copying or photocopying performed by
   a privately owned scientific and educational library sustained by
   monthly or annual dues paid by members sharing the use of such
   services with students interested in the study of geology, petroleum
   engineering or related subjects, any service of printing or
   overprinting, including the copying of information by mimeograph,
   multigraph, or by otherwise duplicating written or printed matter in
   any manner, or the production of microfiche containing information
   from magnetic tapes or other media furnished by customers;
   
   6. Service of furnishing rooms by hotel, apartment hotel, public
   rooming house, motel, public lodging house, or tourist camp;
   
   7. Service of furnishing storage or parking privileges by auto hotels
   or parking lots;
   
   8. Computer hardware, software, coding sheets, cards, magnetic tapes
   or other media on which prewritten programs have been coded, punched,
   or otherwise recorded, including the gross receipts from the licensing
   of software programs;
   
   9. Foods, confections, and all drinks sold or dispensed by hotels,
   restaurants, or other dispensers, and sold for immediate consumption
   upon the premises or delivered or carried away from the premises for
   consumption elsewhere;
   
   10. Advertising of all kinds, types, and characters, including any and
   all devices used for advertising purposes except those specifically
   exempt pursuant to the provisions of Section 1357 of this title;
   
   11. Dues or fees to clubs including free or complimentary dues or fees
   which have a value equivalent to the charge that would have otherwise
   been made, including any fees paid for the use of facilities or
   services rendered at a health spa or club or any similar facility or
   business;
   
   12. Tickets for admission to or voluntary contributions made to places
   of amusement, sports, entertainment, exhibition, display, or other
   recreational events or activities, including free or complimentary
   admissions which have a value equivalent to the charge that would have
   otherwise been made;
   
   13. Charges made for the privilege of entering or engaging in any kind
   of activity, such as tennis, racquetball, or handball, when spectators
   are charged no admission fee;
   
   14. Charges made for the privilege of using items for amusement,
   sports, entertainment, or recreational activity, such as trampolines
   or golf carts;
   
   15. The rental of equipment for amusement, sports, entertainment, or
   other recreational activities, such as bowling shoes, skates, golf
   carts, or other sports or athletic equipment;
   
   16. The gross receipts from sales from any vending machine without any
   deduction for rental to locate the vending machine on the premises of
   a person who is not the owner or any other deductions therefrom;
   
   17. The gross receipts or gross proceeds from the rental or lease of
   tangible personal property, including rental or lease of personal
   property when the rental or lease agreement requires the vendor to
   launder, clean, repair, or otherwise service the rented or leased
   property on a regular basis, without any deduction for the cost of the
   service rendered. If the rental or lease charge is based on the retail
   value of the property at the time of making the rental or lease
   agreement and the expected life of the property, and the rental or
   lease charge is separately stated from the service cost in the
   statement, bill, or invoice delivered to the consumer, the cost of
   services rendered shall be deducted from the gross receipts or gross
   proceeds;
   
   18. Flowers, plants, shrubs, trees, and other floral items, whether or
   not produced by the vendor, sold by persons engaged in florist or
   nursery business in this state, including all orders taken by an
   Oklahoma business for delivery in another state. All orders taken
   outside this state for delivery within this state shall not be subject
   to the taxes levied in this section;
   
   19. Tangible personal property sold to persons, peddlers, solicitors,
   or other salesmen, for resale when there is likelihood that this state
   will lose tax revenue due to the difficulty of enforcing the
   provisions of the Oklahoma Sales Tax Code because of:
   
   a. the operation of the business,
   
   b. the nature of the business,
   
   c. the turnover of independent contractors,
   
   d. the lack of place of business in which to display a permit or keep
   records,
   
   e. lack of adequate records,
   
   f. the fact that the persons are minors or transients,
   
   g. the fact that the persons are engaged in service businesses, or
   
   h. any other reasonable reason;
   
   20. Any taxable services and tangible personal property including
   materials, supplies, and equipment sold to contractors for the purpose
   of developing and improving real estate even though said real estate
   is intended for resale as real property, hereby declared to be sales
   to consumers or users, however, taxable materials, supplies and
   equipment sold to contractors as provided by this subsection which are
   purchased as a result of and subsequent to the date of a contract
   entered into either prior to the effective date of any law increasing
   the rate of sales tax imposed by this article, or entered into prior
   to the effective date of an ordinance or other measure increasing the
   sales tax levy of a political subdivision shall be subject to the rate
   of sales tax applicable, as of the date such contract was entered
   into, to sales of such materials, supplies and equipment if such
   purchases are required in order to complete the contract. Such rate
   shall be applicable to purchases made pursuant to the contract or any
   change order under the contract until the contract or any change order
   has been completed, accepted and the contractor has been discharged
   from any further obligation under the contract or change order or
   until two (2) years from the date on which the contract was entered
   into whichever occurs first. The increased sales tax rate shall be
   applicable to all such purchases at the time of sale and the
   contractor shall file a claim for refund before the expiration of
   three (3) years after the date of contract completion or five (5)
   years after the contract was entered into, whichever occurs earlier.
   However, the Oklahoma Tax Commission shall prescribe rules and
   regulations and shall provide procedures for the refund to a
   contractor of sales taxes collected on purchases eligible for the
   lower sales tax rate authorized by this subsection; and
   
   21. Any taxable services and tangible personal property sold to
   persons who are primarily engaged in selling their services, such as
   repairmen, hereby declared to be sales to consumers or users.
   
   B. All solicitations or advertisements in print or electronic media by
   Group Three vendors, for the sale of tangible property to be delivered
   within this state, shall contain a notice that the sale is subject to
   Oklahoma sales tax, unless the sale is exempt from such taxation.
   

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