Oklahoma § 68-1359.1 - Manufacturers - Refund of certain state and local sales

§ 68-1359.1. Manufacturers - Refund of certain state and local sales

taxes.

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

qualified manufacturer or distributor as provided by Section 1359 of

this title, there shall be made a sales tax refund for state and

local sales taxes paid by qualified manufacturers or distributors

for tangible personal property purchased to be consumed or

incorporated in the construction of a new manufacturing or

distribution facility or to expand an existing manufacturing or

distribution facility in the state from the account created by this

section. Provided, no claim for a refund shall be filed by a

distributor pursuant to subparagraph d of paragraph 7 of Section

1359 of this title before July 1, 2006.

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.

Oklahoma Statutes - Title 68. Revenue and Taxation

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

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

or distributor upon the principal amount of any refund made to such

manufacturer or distributor for purposes of administering the

exemption provided by Section 1359 of this title shall be determined

according to the amount earned as invested by the State Treasurer’s

Office. The interest rate shall accrue upon the amount transferred

to the account.

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 of a new or expanded manufacturing

facility pursuant to a contract with a qualified manufacturer or

distributor shall, upon proper showing, be refunded to the qualified

manufacturer or distributor.

E. The qualified manufacturer or distributor shall file with

the 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

manufacturer but rather the sales tax charged has been collected by

the vendor and remitted to the Tax Commission; and

3. All additional documentation required to be submitted

pursuant to rules promulgated by the Tax Commission.

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

contractor or subcontractor, the qualified manufacturer or

distributor shall file with the Tax Commission all documentation

required in subsection E of this section but in lieu of the

affidavit of each vendor the qualified manufacturer or distributor

shall file, for any refund claimed, an affidavit from the contractor

or subcontractor stating that the sales tax refund of the qualified

manufacturer or distributor 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 of a new or expanded business activity 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 June 1,

1988, shall be eligible for the refund established by this section.

H. The qualified manufacturer or distributor shall file, within

thirty-six (36) months of the date of the first purchase which is

Oklahoma Statutes - Title 68. Revenue and Taxation

exempt from taxation pursuant to the provisions of paragraph 7 of

Section 1359 of this title, with the Tax Commission a certification

issued by the Employment Security Commission in order to qualify for

the refund authorized by this section.

I. Notwithstanding the provisions of any state tax law, the

amount refunded under this section shall be assessed if the number

of full-time-equivalent employees drops below the number prescribed

in paragraph 7 of Section 1359 of this title, at any time within

thirty-six (36) months of the date certification is issued by the

Oklahoma Employment Security Commission.

Added by Laws 1988, c. 9, § 2, operative June 1, 1988. Amended by

Laws 1991, c. 133, § 2, emerg. eff. April 29, 1991; Laws 1992, c.

225, § 2, eff. July 1, 1992; Laws 2004, c. 535, § 10, eff. Nov. 1,

2004; Laws 2005, c. 413, § 2, eff. July 1, 2005.