SB 1662 Summary

• Amends 68 O.S. 2011, Section 1358.1 to clarify the agricultural sales tax exemption process and proof of eligibility requirements.

• Requires persons claiming agricultural exemptions to provide vendors with proof of eligibility at the time of sale, including agricultural exemption permits issued by the Oklahoma Tax Commission.

• Establishes three methods for obtaining exemption permits: county assessor certification for resident farmers/ranchers, direct application to the Tax Commission, or documentation from out-of-state custom farmers showing residency and intended agricultural use.

• Allows permit holders making regular purchases to provide proof once and make subsequent tax-exempt purchases without repeated verification, provided they notify vendors of non-exempt purchases and remit applicable taxes.

• Establishes a $500 penalty for purchasers who misuse exemption permits to buy items not authorized for exemption under Section 1358, and becomes effective November 1, 2012.