Okla. Stat. tit. 68, § 68-1358

Exemptions – Agriculture.

A. There are hereby specifically exempted from the tax levied

by Section 1350 et seq. of this title:

1. Sales of agricultural products produced in this state by the

producer thereof directly to the consumer or user when such articles

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are sold at or from a farm and not from some other place of

business, as follows:

a. farm, orchard or garden products, and

b. dairy products sold by a dairy producer or farmer who

owns all the cows from which the dairy products

offered for sale are produced;

provided, the provisions of this paragraph shall not be construed as

exempting sales by florists, nursery operators or chicken

hatcheries, or sales of dairy products by any other business except

as set out herein;

2. Livestock, including cattle, horses, mules or other domestic

or draft animals, sold by the producer by private treaty or at a

special livestock sale;

3. Sale of baby chicks, turkey poults and starter pullets used

in the commercial production of chickens, turkeys and eggs, provided

that the purchaser certifies, in writing, on the copy of the invoice

or sales ticket to be retained by the vendor that the pullets will

be used primarily for egg production;

4. Sale of salt, grains, tankage, oyster shells, mineral

supplements, limestone and other generally recognized animal feeds

for the following purposes and subject to the following limitations:

a. feed which is fed to poultry and livestock, including

breeding stock and wool-bearing stock, for the purpose

of producing eggs, poultry, milk or meat for human

consumption,

b. feed purchased in Oklahoma for the purpose of being

fed to and which is fed by the purchaser to horses,

mules or other domestic or draft animals used directly

in the producing and marketing of agricultural

products, and

c. any stock tonics, water purifying products, stock

sprays, disinfectants or other such agricultural

supplies.

“Poultry” shall not be construed to include any fowl other than

domestic fowl kept and raised for the market or production of eggs.

“Livestock” shall not be construed to include any pet animals such

as dogs, cats, birds or such other fur-bearing animals. This

exemption shall only be granted and extended where the purchaser of

feed that is to be used and in fact is used for a purpose that would

bring about an exemption hereunder executes an invoice or sales

ticket in duplicate on a form to be prescribed by the Oklahoma Tax

Commission. The purchaser may demand and receive a copy of the

invoice or sales ticket and the vendor shall retain a copy;

5. Sales of items to be and in fact used in the production of

agricultural products. Sale of the following items shall be subject

to the following limitations:

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a. sales of agricultural fertilizer to any person

regularly engaged, for profit, in the business of

farming or ranching,

b. sales of agricultural fertilizer to any person engaged

in the business of applying such materials on a

contract or custom basis to land owned or leased and

operated by persons regularly engaged, for profit, in

the business of farming or ranching. In addition to

providing the vendor proof of eligibility as provided

in Section 1358.1 of this title, the purchaser shall

provide the name or names of such owner or lessee and

operator and the location of the lands on which said

materials are to be applied to each such land,

c. sales of agricultural fertilizer, pharmaceuticals and

biologicals to persons engaged in the business of

applying such materials on a contract or custom basis

shall not be considered to be sales to contractors

under this article, and said sales shall not be

considered to be taxable sales within the meaning of

the Oklahoma Sales Tax Code. As used in this section,

"agricultural fertilizer", "pharmaceuticals" and
al fertilizer, pharmaceuticals and

biologicals to persons engaged in the business of

applying such materials on a contract or custom basis

shall not be considered to be sales to contractors

under this article, and said sales shall not be

considered to be taxable sales within the meaning of

the Oklahoma Sales Tax Code. As used in this section,

"agricultural fertilizer", "pharmaceuticals" and

"biologicals" mean any substance sold and used for

soil enrichment or soil corrective purposes or for

promoting the growth and productivity of plants or

animals,

d. sales of agricultural seed or plants to any person

regularly engaged, for profit, in the business of

farming or ranching. This section shall not be

construed as exempting from sales tax, seed which is

packaged and sold for use in noncommercial flower and

vegetable gardens, and

e. sales of agricultural chemical pesticides to any

person regularly engaged, for profit, in the business

of farming or ranching. For the purposes of this

subparagraph, "agricultural chemical pesticides" shall

include any substance or mixture of substances

intended for preventing, destroying, repelling or

mitigating any insect, snail, slug, rodent, bird,

nematode, fungus, weed or any other form of

terrestrial or aquatic plant or animal life or virus,

bacteria or other microorganism, except viruses,

bacteria or other microorganisms on or in living man,

or any substance or mixture of substances intended for

use as a plant regulator, defoliant or desiccant.

The exemption provided in this paragraph shall only be granted

and extended to the purchaser where the items are to be used and in

fact are used in the production of agricultural products;

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6. Sale of farm machinery, repair parts thereto or fuel, oil,

lubricants and other substances used for operation and maintenance

of the 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. The

exemption specified in this paragraph shall apply to such farm

machinery, repair parts or fuel, oil, lubricants and other

substances used by persons engaged in the business of custom

production, cultivation, planting, sowing, harvesting, processing,

spraying, preservation, or irrigation of any livestock, poultry,

agricultural, or dairy products for farmers or ranchers. The

exemption provided for herein shall not apply to motor vehicles;

7. Sales of supplies, machinery and equipment to persons

regularly engaged in the business of raising evergreen trees for

retail sale in which such trees are cut down on the premises by the

consumer purchasing such tree. This exemption shall only be granted

and extended when the items in fact are used in the raising of such

evergreen trees; and

8. Sales of materials, supplies and equipment to an

agricultural permit holder or to any person with whom the permit

holder has contracted to construct facilities which are or which

will be used directly in the production of any livestock, including,

but not limited to, facilities used in the production and storage of

feed for livestock owned by the permit holder. Any person making

purchases on behalf of the agricultural permit holder shall certify,

in writing, on the copy of the invoice or sales ticket to be

retained by the vendor that the purchases are made for and on behalf

of such permit holder and set out the name and permit number of such

holder. Any person who wrongfully or erroneously certifies that

purchases are for an agricultural permit holder or who otherwise

violates this subsection shall be guilty of a misdemeanor and upon

conviction thereof shall be punishable by a fine of an amount equal

to double the amount of sales tax involved or imprisonment in the
such permit holder and set out the name and permit number of such

holder. Any person who wrongfully or erroneously certifies that

purchases are for an agricultural permit holder or who otherwise

violates this subsection shall be guilty of a misdemeanor and upon

conviction thereof shall be punishable by a fine of an amount equal

to double the amount of sales tax involved or imprisonment in the

county jail for not more than sixty (60) days or by both such fine

and imprisonment.

B. As used in this section and Section 1358.1 of this title:

1. “Agricultural products” shall include horses; and

2. “Ranching” or “ranch” shall include the business, or

facilities for the business, of raising horses.

Provided, sales of items at race meetings as defined in Section

200.1 of Title 3A of the Oklahoma Statutes shall not be exempt

pursuant to the provisions of this section and Section 1358.1 of

this title.