Oklahoma § 68-2105

§ 68-2105.

Exemptions.

Oklahoma Statutes - Title 68. Revenue and Taxation

An original or a transfer certificate of title shall be issued

without the payment of the excise tax levied by Section 2101 et seq.

of this title for:

1. Any vehicle owned by a nonresident person who operates

principally in some other state but who is in Oklahoma only

occasionally;

2. Any vehicle brought into this state by a person formerly

living in another state, who has owned and registered the vehicle in

such other state of residence at least sixty (60) days prior to the

time it is required to be registered in this state; provided,

however, this paragraph shall not apply to businesses engaged in

renting cars without a driver;

3. Any vehicle registered by this state, by any of the

political subdivisions thereof, or by a fire department organized

pursuant to Section 592 of Title 18 of the Oklahoma Statutes to be

used for the purposes of the fire department, or a vehicle which is

the subject of a lease or lease-purchase agreement executed between

the person seeking an original or transfer certificate of title for

the vehicle and a municipality, county, school district, or fire

protection district. The person seeking an original or transfer

certificate of title shall provide adequate proof that the vehicle

is subject to a lease or lease-purchase agreement with a

municipality, county, school district, or fire protection district

at the time the excise tax levied would otherwise be payable.

Service Oklahoma shall have the authority to determine what

constitutes adequate proof as required by this section;

4. Any vehicle, the legal ownership of which is obtained by the

applicant for a certificate of title by inheritance. For the

purposes of this section, "inheritance" means any transfer from a

deceased individual to the direct successor in interest of the

decedent without consideration, whether through probate,

administration, inter vivos trust, transfer-on-death designation, or

joint ownership;

5. Any used motor vehicle, travel trailer, or commercial

trailer which is owned and being offered for sale by a person

licensed as a dealer to sell the same, under the provisions of the

Oklahoma Vehicle License and Registration Act:

a.

if such vehicle, travel trailer, or commercial trailer

has been registered in Oklahoma and the excise tax

paid thereon, or

b.

when such vehicle, travel trailer, or commercial

trailer has been registered in some other state but is

not the latest manufactured model.

Provided, the provisions of this paragraph shall not be

construed as allowing an exemption to any person not licensed as a

dealer of used motor vehicles, travel trailers, or commercial

Oklahoma Statutes - Title 68. Revenue and Taxation

trailers, or as an automotive dismantler and parts recycler in this

state;

6. Any vehicle which was purchased by a person licensed to sell

new or used motor vehicles in another state if:

a.

such vehicle is not purchased for operation or resale

in this state, and

b.

the state from which the dealer is licensed offers

reciprocal privileges to a dealer licensed in this

state, pursuant to a reciprocal agreement between the

duly authorized agent of Service Oklahoma and the

licensing state;

7. Any vehicle, the ownership of which was obtained by the

lienholder or mortgagee under or by foreclosure of a lien or

mortgage in the manner provided by law or to the insurer under

subrogated rights arising by reason of loss under an insurance

contract;

8. Any vehicle which is taxed on an ad valorem basis;

9. Any vehicle or motor vehicle, the legal ownership of which

is obtained by transfers:

a.

from one corporation to another corporation pursuant

to a reorganization. As used in this subparagraph,

the term "reorganization" means:

(1) a statutory merger or consolidation, or

(2) the acquisition by a corporation of substantially

all of the properties of another corporation when

the consideration is solely all or a part of the

voting stock of the acquiring corporation, or of

its parent or subsidiary corporation,

b.

in connection with the winding up, dissolution, or

liquidation of a corporation only when there is a

distribution in kind to the shareholders of the

property of such corporation,

c.

to a corporation where the former owners of the

vehicle or motor vehicle transferred are, immediately

after the transfer, in control of the corporation, and

the stock or securities received by each is

substantially in proportion to the interest in the

vehicle or motor vehicle prior to the transfer,

d.

to a partnership if the former owners of the vehicle

or motor vehicle transferred are, immediately after

the transfer, members of such partnership and the

interest in the partnership received by each is

substantially in proportion to the interest in the

vehicle or motor vehicle prior to the transfer,

e.

from a partnership to the members thereof when made in

the dissolution of such partnership,

Oklahoma Statutes - Title 68. Revenue and Taxation

f.

to a limited liability company if the former owners of

the vehicle or motor vehicle transferred are,

immediately after the transfer, members of the limited

liability company and the interest in the limited

liability company received by each is substantially in

proportion to the interest in the vehicle or motor

vehicle prior to the transfer, or

g.

from a limited liability company to the members

thereof when made in the dissolution of such

partnership;

10. Any vehicle which is purchased by a person to be used by a

business engaged in renting motor vehicles without a driver,

provided:

a.

the vehicle shall not be rented to the same person for

a period exceeding ninety (90) days,

b.

any such vehicle exempted from the excise tax by these

provisions shall not be placed under any type of lease

agreement,

c.

on any such vehicle exempted from the excise tax by

this paragraph that is reregistered in this state,

without a prior sale or transfer to the persons

specified in divisions (1) and (2) of this

subparagraph, at any time prior to the expiration of

twelve (12) months from the date of issuance of the

original title, the seller shall pay immediately the

amount of excise tax which would have been due had

this exemption not been granted plus a penalty of

twenty percent (20%). No such excise tax or penalty

shall become due and payable if the vehicle is sold or

transferred in a condition either physical or

mechanical which would render it eligible for a

salvage title pursuant to law or if the vehicle is

sold and transferred in this state at any time prior

to the expiration of twelve (12) months:

(1) to the manufacturer of the vehicle or its

controlled financing arm, or

(2) to a factory authorized franchised new motor

vehicle dealer which holds a franchise of the

same line-make of the vehicle being purchased, or

d.

when this exemption is claimed, Service Oklahoma shall

issue a special title which shall restrict the

transfer of the title only within this state prior to

the expiration of twelve (12) months unless:

(1) payment of the excise tax plus penalty as

provided in this section is made,

Oklahoma Statutes - Title 68. Revenue and Taxation

(2)

the sale is made to a person specified in

division (1) or (2) of subparagraph c of this

paragraph, or

(3) the vehicle is eligible for a salvage title.

For all other tax purposes vehicles herein exempted shall be

treated as though the excise tax has been paid;

11. Any vehicle of the latest manufactured model, registered

from a title in the name of the original manufacturer or assigned to

the original manufacturer and issued by any state and transferred to

a licensed, franchised Oklahoma motor vehicle dealer, as defined by

Section 1102 of Title 47 of the Oklahoma Statutes, which holds a

franchise of the same line-make as the vehicle being registered;

12. Any new motor vehicle, registered in the name of a

manufacturer or dealer of new motor vehicles, for which a license

plate has been issued pursuant to Section 1116.1 of Title 47 of the

Oklahoma Statutes, if such vehicle is authorized by the manufacturer

or dealer for personal use by an individual. The authorization for

such use shall not exceed four (4) months which shall not be renewed

or the exemption provided by this paragraph shall not be applicable.

The exemption provided by this paragraph shall not be applicable to

a transfer of ownership or registration subsequent to the first

registration of the vehicle by a manufacturer or dealer;

13. Any vehicle, travel trailer, or commercial trailer of the

latest manufacturer model purchased by a franchised Oklahoma dealer

licensed to sell the same which holds a franchise of the same linemake as the vehicle, travel trailer, or commercial trailer being

registered;

14. Any vehicle which is the subject of a lease or leasepurchase agreement and which the ownership of such vehicle is being

obtained by the lessee, if the vehicle excise tax was paid at the

time of the initial lease or lease-purchase agreement;

15. Any vehicle which:

a.

is purchased by a private, nonprofit organization

which is exempt from taxation pursuant to the

provisions of Section 501(c)(3) of the Internal

Revenue Code, 26 U.S.C., Section 501(c)(3), and which

is primarily funded by a fraternal or civic service

organization with at least one hundred local chapters

or clubs, and

b.

is designed and used to provide mobile health

screening services to the general public at no cost to

the recipient, and for which no reimbursement of any

kind is received from any health insurance provider,

health maintenance organization, or governmental

program;

16. Any vehicle which is purchased by an individual who has

been honorably discharged from active service in any branch of the

Oklahoma Statutes - Title 68. Revenue and Taxation

Armed Forces of the United States or Oklahoma National Guard and who

has been certified by the United States Department of Veterans

Affairs, its successor, or the Armed Forces of the United States to

be a disabled veteran in receipt of compensation at the one-hundredpercent rate for a permanent disability sustained through military

action or accident resulting from disease contracted while in such

active service and registered with the veterans registry created by

the Oklahoma Department of Veterans Affairs; provided, that if the

veteran has previously received exemption pursuant to this

paragraph, no registration with the veterans registry shall be

required. This exemption may not be claimed by an individual for

more than one vehicle in a consecutive three-year period, unless the

vehicle is a replacement for a vehicle which was destroyed and

declared by the insurer to be a total loss claim. Service Oklahoma

shall promulgate any rules necessary to implement the provisions of

this section; or

17. Any vehicle on which ownership is transferred by a

repossessor directly back to the owner or owners from whom the

vehicle was repossessed; provided, ownership shall be assigned by

the repossessor within thirty (30) days of issuance of the

repossession title and shall be identical to that reflected in the

vehicle title record immediately prior to the repossession.

Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from

§ 21-105 of Title 47 by Laws 1965, c. 215, § 3. Amended by Laws

1980, c. 85, § 14, eff. Jan. 1, 1981; Laws 1982, c. 180, § 1; Laws

1986, c. 172, § 6, eff. July 1, 1986; Laws 1986, c. 284, § 14,

operative July 1, 1986; Laws 1988, c. 34, § 1, emerg. eff. March 17,

1988; Laws 1988, c. 156, § 5, emerg. eff. May 5, 1988; Laws 1988, c.

240, § 7, emerg. eff. June 24, 1988; Laws 1989, c. 290, § 6, emerg.

eff. May 24, 1989; Laws 1991, c. 331, § 60, eff. Sept. 1, 1991;

Laws 1993, c. 93, § 6, eff. July 1, 1993; Laws 1993, c. 366, § 45,

eff. Sept. 1, 1993; Laws 1994, c. 2, § 24, emerg. eff. March 2,

1994; Laws 1995, c. 41, § 1, eff. Sept. 1, 1995; Laws 1996, c. 289,

§ 7, eff. July 1, 1996; Laws 1998, c. 179, § 3, emerg. eff. April

29, 1998; Laws 1999, c. 149, § 5, eff. July 1, 1999; Laws 2001, c.

248, § 1, emerg. eff. May 23, 2001; Laws 2005, c. 413, § 3, eff.

July 1, 2005; Laws 2013, c. 283, § 1, eff. Nov. 1, 2013; Laws 2016,

c. 312, § 1, eff. Nov. 1, 2016; Laws 2017, c. 229, § 11, eff. Nov.

1, 2020; Laws 2023, c. 71, § 1, eff. Nov. 1, 2023.

NOTE: Laws 1993, c. 347, § 1 repealed by Laws 1994, c. 2, § 34,

emerg. eff. March 2, 1994.