Oklahoma § 68-1357.5 - Aircraft maintenance or manufacturing facilities Sales of tangible property consumed or incorporated in construction

§ 68-1357.5. Aircraft maintenance or manufacturing facilities Sales of tangible property consumed or incorporated in construction

or expansion - Sales tax refund - Computation of interest Documentation of claims - Affidavits by contractors.

A. In order to administer the exemption for sales to a

qualified aircraft maintenance or manufacturing facility as provided

by paragraph 12 of Section 1357 of this title, there shall be made a

sales tax refund for state and local sales taxes paid by a qualified

purchaser for tangible personal property purchased to be consumed or

incorporated in the construction or expansion of a qualified

aircraft maintenance or manufacturing facility, as defined in

paragraph 11 of Section 1357 of this title, in the state from the

account created by this section.

B. The Oklahoma Tax Commission shall transfer each month from

sales tax collected the amount which the Commission estimates to be

necessary to make the sales tax refund provided by this section to

an account designated as the Commission determines.

C. Any refund shall be paid from the account prescribed by this

section at the time the claim for refund is approved by the Oklahoma

Tax Commission. The amount of the refund shall not exceed the total

state and local sales taxes paid together with accrued interest upon

such total. The amount of interest paid to a qualified aircraft

maintenance or manufacturing facility upon the principal amount of

any refund made to such facility for purposes of administering the

exemption provided by paragraph 12 of Section 1357 of this title,

shall be determined according to the provisions of this subsection.

For any month during which the Oklahoma Tax Commission transfers a

sum to the account prescribed by subsection B of this section, the

Commission shall determine an interest rate by determining the rate

of interest paid for a three-month Treasury Bill of the United

States government as of the first working day of the month in which

the transfer is made. The interest rate so determined shall accrue

upon the amount transferred to the account. In each subsequent

month, the Commission shall determine the interest rate paid for a

three-month Treasury Bill of the United States government as of the

first working day of the month and such interest rate shall accrue

upon any amount transferred during the month and upon the amounts

Oklahoma Statutes - Title 68. Revenue and Taxation

previously transferred to the account together with interest

previously accrued upon such amounts.

D. For purposes of this section, state and local sales taxes

paid by a contractor or subcontractor for tangible personal property

purchased by that contractor or subcontractor to be consumed or

incorporated in the construction or expansion of a qualified

aircraft maintenance or manufacturing facility pursuant to a

contract with a qualified facility shall, upon proper showing, be

refunded to the qualified facility.

E. The qualified purchaser shall file, within thirty-six (36)

months of the date of purchase, with the Oklahoma Tax Commission the

following documentation for any refund claimed:

1. Invoices indicating the amount of state and local sales tax

billed;

2. Affidavit of each vendor that state and local sales tax

billed has not been audited, rebated, or refunded to the qualified

purchaser but rather the sales tax charged has been collected by the

vendor and remitted to the Oklahoma Tax Commission; and

3. All additional documentation required to be submitted

pursuant to rules promulgated by the Oklahoma Tax Commission.

F. In the event that state and local sales tax was paid by a

contractor or subcontractor, the qualified purchaser shall file with

the Oklahoma Tax Commission all documentation required in subsection

E of this section but in lieu of the affidavit of each vendor the

qualified facility shall file, for any refund claimed, an affidavit

from the contractor or subcontractor stating that the sales tax

refund of the qualified purchaser is based on state and local sales

tax paid by the contractor or subcontractor on tangible personal

property purchased to be consumed or incorporated in the

construction or expansion of a qualified aircraft maintenance

facility and that the amount of state and local sales tax claimed

was paid to the vendor and no credit, refund, or rebate has been

claimed by the contractor or subcontractor.

G. Only sales of tangible personal property made after the

effective date of this act, shall be eligible for the refund

established by this section.

H. The qualified purchaser shall file, within sixty (60) months

of the date of the first purchase, with the Oklahoma Tax Commission

a certification issued by the Oklahoma Employment Security

Commission in order to qualify for the refund authorized by this

section.

Added by Laws 1991, 1st Ex. Sess., c. 2, § 7 emerg. eff. Jan. 18,

1991. Amended by Laws 1993, c. 275, § 13, eff. July 1, 1993.