Okla. Stat. tit. 68, § 68-1354

A. There is hereby levied upon all sales, not otherwise

exempted in the Oklahoma Sales Tax Code, 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, except water, sewage and refuse.

Provided, the rate of four and one-half percent (4.5%) shall not

apply to sales subject to the provisions of paragraph 6 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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 445

b. transportation services provided by a funeral

establishment to family members and other persons for

purposes of conducting a funeral in this state;

4. Intrastate, interstate and international telecommunications

services sourced to this state in accordance with Section 1354.30 of

this title and ancillary services. Provided:

a. the term "telecommunications services" shall mean the

electronic transmission, conveyance, or routing of

voice, data, audio, video, or any other information or

signals to a point, or between or among points. The

term "telecommunications services" includes such

transmission, conveyance, or routing in which computer

processing applications are used to act on the form,

code or protocol of the content for purposes of

transmission, conveyance or routing without regard to

whether such service is referred to as voice-over

Internet protocol services or is classified by the

Federal Communications Commission as enhanced or value

added. "Telecommunications services" do not include:

(1) data processing and information services that

allow data to be generated, acquired, stored,

processed, or retrieved and delivered by an

electronic transmission to a purchaser where such

purchaser's primary purpose for the underlying

transaction is the processed data or information,

(2) installation or maintenance of wiring or

equipment on a customer's premises,

(3) tangible personal property,

(4) advertising, including but not limited to

directory advertising,

(5) billing and collection services provided to third

parties,

(6) Internet access services,

(7) radio and television audio and video programming

services, regardless of the medium, including the

furnishing of transmission, conveyance and

routing of such services by the programming

service provider. Radio and television audio and

video programming services shall include, but not

be limited to, cable service as defined in 47

U.S.C. 522(6) and audio and video programming

services delivered by commercial mobile radio

service providers, as defined in 47 C.F.R. 20.3,

(8) ancillary services, or
ing of transmission, conveyance and

routing of such services by the programming

service provider. Radio and television audio and

video programming services shall include, but not

be limited to, cable service as defined in 47

U.S.C. 522(6) and audio and video programming

services delivered by commercial mobile radio

service providers, as defined in 47 C.F.R. 20.3,

(8) ancillary services, or

(9) digital products delivered electronically,

including but not limited to, software, music,

video, reading materials or ring tones,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 446

b. the term "interstate" means a "telecommunications

service" that originates in one United States state,

or a United States territory or possession, and

terminates in a different United States state or a

United States territory or possession,

c. the term "intrastate" means a telecommunications

service that originates in one United States state or

a United States territory or possession, and

terminates in the same United States state or a United

States territory or possession,

d. the term "ancillary services" means services that are

associated with or incidental to the provision of

telecommunications services, including but not limited

to "detailed telecommunications billing", "directory

assistance", "vertical service", and "voice mail

services",

e. in the case of a bundled transaction that includes

telecommunication service, ancillary service, Internet

access or audio or video programming service:

(1) if the price is attributable to products that are

taxable and products that are nontaxable, the

portion of the price attributable to the

nontaxable products may be subject to tax unless

the provider can identify by reasonable and

verifiable standards such portion for its books

and records kept in the regular course of

business for other purposes, including, but not

limited to, nontax purposes, and

(2) the provisions of this paragraph shall apply

unless otherwise provided by federal law, and

f. a sale of prepaid calling service or prepaid wireless

calling service shall be taxable at the time of sale

to the customer;

5. Telecommunications nonrecurring charges, which means an

amount billed for the installation, connection, change or initiation

of telecommunications services received by a customer;

6. 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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 447

7. Service of furnishing rooms by hotel, apartment hotel,

public rooming house, motel, public lodging house, or tourist camp;

8. Service of furnishing storage or parking privileges by auto

hotels or parking lots;

9. 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;

10. 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;

11. 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;
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;

11. 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;

12. 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;

13. 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; provided, that the state tax

generated from the sale of tickets for admission by an aquarium

exempt from taxation pursuant to the provisions of the Internal

Revenue Code, 26 U.S.C., Section 501(c)(3), or owned or operated by

a public trust or political subdivision of this state, shall be

collected and disbursed to the nonprofit organization, public trust

or political subdivision responsible for the aquarium's operations

for use by that entity for promoting visitation primarily to out-of-

state residents;

14. 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;

15. Charges made for the privilege of using items for

amusement, sports, entertainment, or recreational activity, such as

trampolines or golf carts;

16. 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;

17. 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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 448

18. 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;

19. 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;

20. 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,
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;

21. 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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 449

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;

22. 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; and

23. Canoes and paddleboats as defined in Section 4002 of Title

63 of the Oklahoma Statutes.

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.