Okla. Stat. tit. 68, § 68-2701

- Exceptions and limitations.

A. Any incorporated city or town in this state is hereby

authorized to assess, levy, and collect taxes for general and

special purposes of municipal government as the Legislature may levy

and collect for purposes of state government, subject to the

provisions of subsection F of this section, except ad valorem

property taxes. Provided:

1. Taxes shall be uniform upon the same class subjects, and any

tax, charge, or fee levied upon or measured by income or receipts

from the sale of products or services shall be uniform upon all

classes of taxpayers;

2. Motor vehicles may be taxed by the city or town only when

such vehicles are primarily used or located in such city or town for

a period of time longer than six (6) months of a taxable year;

3. The provisions of this section shall not be construed to

authorize imposition of any tax upon persons, firms, or corporations

exempted from other taxation under the provisions of Sections 348.1,

624 and 321 of Title 36 of the Oklahoma Statutes, by reason of

payment of taxes imposed under such sections;

4. Cooperatives and communications companies are hereby

authorized to pass on to their subscribers in the incorporated city

or town involved, the amount of any special municipal fee, charge or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1117

tax hereafter assessed or levied on or collected from such

cooperatives or communications companies;

5. No earnings, payroll or income taxes may be levied on

nonresidents of the cities or towns levying such tax;

6. The governing body of any city or town shall be prohibited

from proposing taxing ordinances more often than three times in any

calendar year, or twice in any six-month period; and

7. Any revenues derived from a tax authorized by this

subsection not dedicated to a limited purpose shall be deposited in

the municipal general fund.

B. A sales tax authorized in subsection A of this section may

be levied for limited purposes specified in the ordinance levying

the tax. Such ordinance shall be submitted to the voters for

approval as provided in Section 2705 of this title. Any sales tax

levied or any change in the rate of a sales tax levied pursuant to

the provisions of this section shall become effective on the first

day of the calendar quarter following approval by the voters of the

city or town unless another effective date, which shall also be on

the first day of a calendar quarter, is specified in the ordinance

levying the sales tax or changing the rate of sales tax. Such

ordinance shall describe with specificity the projects or

expenditures for which the limited-purpose tax levy would be made.

The municipal governing body shall create a limited-purpose fund and

deposit therein any revenue generated by any tax levied pursuant to

this subsection. Money in the fund shall be accumulated from year

to year. The fund shall be placed in an insured interest-bearing

account and the interest which accrues on the fund shall be retained

in the fund. The fund shall be nonfiscal and shall not be

considered in computing any levy when the municipality makes its

estimate to the excise board for needed appropriations. Money in

the limited-purpose tax fund shall be expended only as accumulated

and only for the purposes specifically described in the taxing

ordinance as approved by the voters.

C. The Oklahoma Tax Commission shall give notice to all vendors

of a rate change at least sixty (60) days prior to the effective

date of the rate change. Provided, for purchases from printed

catalogs wherein the purchaser computed the tax based upon local tax

rates published in the catalog, the rate change shall not be

effective until the first day of a calendar quarter after a minimum

of one hundred twenty-days' notice to vendors. Failure to give

notice as required by this section shall delay the effective date of
ve

date of the rate change. Provided, for purchases from printed

catalogs wherein the purchaser computed the tax based upon local tax

rates published in the catalog, the rate change shall not be

effective until the first day of a calendar quarter after a minimum

of one hundred twenty-days' notice to vendors. Failure to give

notice as required by this section shall delay the effective date of

the rate change to the first day of the next calendar quarter.

D. The change in the boundary of a municipality shall be

effective, for sales and use tax purposes only, on the first day of

a calendar quarter after a minimum of sixty (60) days' notice to

vendors.

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E. If the proceeds of any sales tax levied by a municipality

pursuant to subsection B of this section are being used by the

municipality for the purpose of retiring indebtedness incurred by

the municipality or by a public trust of which the municipality is a

beneficiary for the specific purpose for which the sales tax was

imposed, the sales tax shall not be repealed until such time as the

indebtedness is retired. However, in no event shall the life of the

tax be extended beyond the duration approved by the voters of the

municipality. The provisions of this subsection shall apply to all

sales tax levies imposed by a municipality and being used by the

municipality for the purposes set forth in this subsection prior to

or after July 1, 1995.

F. The sale of an article of clothing or footwear designed to

be worn on or about the human body shall be exempt from the sales

tax imposed by any incorporated city or town, in accordance with and

to the extent set forth in Section 1357.10 of this title.

G. Any municipality that levies a dedicated tax pursuant to a

vote of the people for the purpose of funding public safety or any

other governmental purpose shall not redirect all or a portion of

the dedicated tax revenue to another purpose without a vote of the

people authorizing such action.