§ 52-24 — Exemptions generally

§ 52-24. - Exemptions generally.

The gross receipts or gross proceeds exempted from the Oklahoma Sales Tax Code (68 O.S. § 1350 et seq.) are hereby exempted from the tax levied under this article. Such receipts or proceeds shall include those derived from: (1) sales of low-point beer taxed as provided by State law; (2) sales of cigarettes and tobacco products as are taxed by State law; (3) sales of raw products from farm orchards or gardens, if such sale is made by the producer of such raw products directly to the consumer or user; gross receipts or gross proceeds derived from the sale of livestock, poultry, poultry products, and dairy products by the producers; exemptions granted by this subdivision shall not apply when such articles are sold, even though by the producer thereof, at or from an "established business place" not on a farm; neither shall this exemption apply unless said articles are produced or grown within the state. The provisions of this Subsection are intended to exempt the sale by livestock producers of livestock sold at special livestock sales. The provisions of this Subsection are intended to exempt the sale of dairy products when sold by a dairyman or farmer who owns all of the cows from which the dairy products he sells are produced. The provisions of this Subsection shall not be construed to exempt sales of dairy products by any other business. The provisions of this Subsection shall not be construed to exempt sales by florists, nurserymen and chicken hatcheries; (4) dues paid to fraternal, religious, civic, charitable or educational societies or organizations by regular members thereof provided such societies or organizations operate under what is commonly termed the lodge plan or system, and, provided such societies or organizations do not operate for a profit which inures to the benefit of any individual member thereof to the exclusion of other members; (5) sales of tangible personal property or services to or by churches, except when such organizations may be engaged in business for profit or savings, competing with other persons engaged in the same or similar business; (6) vehicle transportation of schoolchildren to and from grade schools and high schools; (7) transportation of persons if the fare of each person does not exceed $0.15, or local transportation of persons within the corporate limits of cities and towns except by taxicabs; (8) sales of food in public, common, high school or college cafeterias and lunchrooms operated primarily for teachers and pupils, and not operated primarily for the public or for profit; (9) carrier sales made directly to consumers or users of newspapers or any other periodicals if any individual transaction does not exceed $0.20; (10) sales to the United States government, the State or any of its political subdivisions; (11) the sale of gasoline or motor fuel on which the motor fuel tax, gasoline excise tax or special fuels tax has been paid to the state; (12) sales of crude petroleum or natural or casing-head gas and other products subject to gross production tax under the provisions of the laws of this state. This exemption shall not apply when such products are sold to a consumer or user for consumption or use, except when used for injection into the earth for the purpose of promoting or facilitating the production of oil or gas; (13) sales of motor vehicles, attached optional equipment and accessories on which sale the State motor vehicle excise tax has been paid; (14) sales by county, district and State fairs; (15) the sale of advertising space in newspapers, periodicals and billboard advertising service, and sales of advertising time for radio and television broadcasts; (16) sales for resale to persons regularly 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 by the State Tax Commission as provided by law. This exemption shall not apply to the sales of articles made to persons holding permits when such persons purchase items for their personal use and when they are not regularly engaged in the business of reselling such article; and this exemption shall not apply to sales of tangible personal property to peddlers, solicitors and other salesmen who do not have sales tax permits or established places of business; (17) goods, wares, merchandise, and property sold for use in manufacturing, compounding, processing, assembling or preparing for sale shall be classified as having been sold for the purpose of resale or the subject matter of resale if: a. such goods, wares, merchandise, or property are purchased for the purpose of being manufactured into a finished article and if it becomes a recognizable, integral part of the manufactured, compounded, processed, assembled or prepared products; or b. it is consumed in the process of manufacturing, compounding, processing, assembling or preparing products for resale; (18) sales of machinery and equipment purchased and used by persons establishing new manufacturing or processing plants in the state, and machinery and equipment purchased and used by persons in the operation of manufacturing plants already established in the state, provided, this exemption shall not apply unless such machinery and equipment is incorporated into, and is directly used in, the process of manufacturing property subject to taxation hereunder. The term "manufacturing plants" shall mean those establishments primarily engaged in manufacturing or processing operations, and generally recognized as such; (19) sales of tangible personal property manufactured in this State when sold by the manufacturer to a person who transports it to another state for immediate and exclusive use in some other state; (20) sales of an interest in tangible personal property to a partner or other person who after such sale owns a joint interest in such tangible personal property, if the State sales or use tax has previously been paid on such tangible personal property; (21) sales of containers sold to a person regularly engaged in the business of reselling empty or filled containers, or if said person purchases such containers for the purpose of packaging raw products of farm, garden or orchard, for resale to the consumer or processor. This exemption shall not apply to: a. the sale of containers used more than once and which are ordinarily known as returnable containers unless a tax under this article is collected and paid to the tax collector by such person with respect to each and every transfer of title or possession of such returnable container if made to any consumer or user within this state; b. the sale of labels or other materials delivered along with items sold but which are not necessary or absolutely essential to the sale of the sold merchandise; (22) sales of poultry and livestock feed, and farm machinery as prescribed by the State Sales Tax Code (68 O.S. § 1350 et seq.); (23) sales of farm machinery to be used directly on a farm or ranch in the production, cultivation, planting, sowing, harvesting, processing, spraying, preservation, or irrigation of any livestock, poultry, agricultural, or dairy products produced from such lands. Each purchaser of farm machinery must state in writing on the copy of the invoice or sales ticket to be retained by the seller that he is engaged in farming or ranching and that the farm machinery will be used only in farming or ranching; (24) sales of agricultural fertilizer to persons regularly engaged for profit in the business of farming and/or ranching which are exempt from State sales taxes under provisions of 68 O.S. § 1358.

(Code 1970, § 14-6; Code 1980, § 52-21; Ord. No. 23717, § 2, 10-28-08)