Okla. Stat. tit. 68, § 68-509.2

to operate motor vehicles on public highways.

A. The tax levied by this act shall not apply to diesel fuel

used exclusively for purposes other than to operate motor vehicles

on the public highways of this state. Provided that distributors

shall execute on monthly reports, certification that the purchasers

represented to the seller that the diesel fuel was to be used

exclusively for purposes other than to operate motor vehicles on the

public highways.

B. Every person, firm, corporation, partnership or limited

liability company claiming an exemption under the provisions of this

section shall first obtain an annual fuel tax exemption permit from

Oklahoma Statutes - Title 68. Revenue and Taxation Page 321

the Tax Commission by filing a verified application on a form

furnished by the Tax Commission. Each fuel tax exemption permit

holder must furnish a copy of the permit to a supplier prior to

purchasing diesel fuel. Suppliers selling to permit holders must

maintain a record of each sale to a permit holder and shall report

the total gallons of tax-exempt diesel fuel sold during a calendar

month on a form prescribed by the Tax Commission. Said form will

include a listing of the total gallons sold to each permit holder,

by name and exemption number. The supplier shall furnish each

permit holder a copy of its tax-exempt sales for the calendar month.

The supplier and permit holder shall maintain these records for

three (3) years. Any supplier selling diesel fuel that is exempt

under this section may deduct the number of gallons of such diesel

fuel from the total gallonage required to be reported to the Tax

Commission only if prescribed forms listing the tax-exempt sales are

attached to the report required by the Tax Commission. A supplier

shall not deduct from the required report the sale of diesel fuel

made by any other distributor. All fuel tax exemption permits

expire on the 30th day of June of each year and no exemption shall

be allowed to the holder thereof after September 30 of that year.

Provided, the Tax Commission may exempt such purchases after

September 30 upon verifying that the fuel was actually used in

accordance with the exemption provisions of this section.

C. Any person who places diesel fuel that was purchased under

an exemption permit authorized by this section into the fuel tank of

a motor vehicle for use in operating the motor vehicle on the public

highways shall be liable for the taxes levied under Sections 502.1,

502.3, 502.5, 502.7 and 522.1 of this title. Further, the permit

issued shall be subject to cancellation and if so canceled shall not

be reissued for a period of at least one (1) year. Such person

shall also be guilty of a misdemeanor and shall, upon conviction, be

fined not more than One Thousand Dollars ($1,000.00), or shall be

sentenced to a term of not more than one (1) year in the county

jail.

The Tax Commission shall conduct field audits and investigate

the uses for which the holder of an off-road exemption permit has

made of diesel fuel acquired by him under his permit. Upon a

determination that the permit holder has improperly used the diesel

fuel purchased, the Tax Commission shall issue a proposed assessment

against the permit holder, in accordance with Section 221 of this

title, for the diesel fuel taxes levied under this article.

D. The tax levied by Sections 502.1 and 522.1 of this title

shall not apply to diesel fuel used exclusively in road machinery

and equipment built for and being used on location in the

construction, repair or maintenance of public highways, roads and

bridges by road contractors and by counties, cities and towns of

this state. However, this exemption shall not apply to automobiles

Oklahoma Statutes - Title 68. Revenue and Taxation Page 322

or truck-type vehicles such as dump trucks, flatbed trucks and

pickup trucks.

E. The tax levied by Sections 502.1 and 522.1 of this title
onstruction, repair or maintenance of public highways, roads and

bridges by road contractors and by counties, cities and towns of

this state. However, this exemption shall not apply to automobiles

Oklahoma Statutes - Title 68. Revenue and Taxation Page 322

or truck-type vehicles such as dump trucks, flatbed trucks and

pickup trucks.

E. The tax levied by Sections 502.1 and 522.1 of this title

shall not apply to diesel fuel used exclusively in passenger motor

buses or coaches, having a seating capacity of ten or more persons,

when such fuel is purchased by and used exclusively in public

transit systems operated by any county, city or town of this state,

or by any public trust created under the laws of this state of which

a county, city or town of this state is the sole beneficiary

thereof. Provided this exemption shall be allowed only when

supported by a certificate executed by such city or trust on forms

prescribed and furnished by the Oklahoma Tax Commission.

F. The tax levied by Sections 502.1 and 522.1 of this title

shall not apply to diesel fuel purchased by any county, city or town

for use as fuel to propel motor vehicles on the public roads and

highways of this state, when said vehicles are being operated for

the sole benefit of said county, city or town; provided that if the

diesel fuel is placed directly into the fuel supply tank or tanks of

the motor vehicle by the supplier, certification must be made on the

invoice and all such sales must be reported by the supplier on forms

furnished by the Oklahoma Tax Commission.