Oklahoma § 68-402 - Amount of tax

§ 68-402. Amount of tax

There shall be levied, assessed, collected and paid in respect

to the articles containing tobacco enumerated in Section 401 et seq.

of this title, a tax in the following amounts:

1. Little Cigars. Upon cigars of all descriptions made of

tobacco, or any substitute therefor, and weighing not more than

three (3) pounds per thousand, the tax levied on the products coming

under this paragraph shall be equal to the tax on such products that

is reported and paid as cigarette tax under Sections 301 through 325

of this title. Further, the tax levied herein shall be paid in the

same manner as required in Sections 301 through 325 of this title;

2. Cigars. Upon cigars of all descriptions made of tobacco, or

any substitute therefor, weighing more than three (3) pounds per

thousand and having a manufacturer's recommended retail selling

price, under the Federal Code, of not exceeding four cents ($0.04)

per cigar, one cent ($0.01) for each cigar;

3. Cigars. Upon all other cigars of all descriptions made of

tobacco, or any substitute therefor, and weighing more than three

(3) pounds per thousand, Twenty Dollars ($20.00) per thousand. For

the purpose of computing the tax, cheroots, stogies, etc., are

hereby classed as cigars;

4. Smoking Tobacco. Upon all smoking tobacco, the tax shall be

twenty-five percent (25%) of the factory list price exclusive of any

trade discount, special discount or deals; and

5. Smokeless Tobacco. Upon smokeless tobacco, the tax shall be

twenty percent (20%) of the factory list price exclusive of any

trade discount, special discount or deals.

It shall not be permissible for a retailer to advertise that the

retailer will absorb the tax due on the taxable merchandise

described herein. Such tax shall be paid by the consumer.

Notwithstanding any other provision of law, the tax levied

pursuant to the provisions of Section 401 et seq. of this title

shall be part of the gross proceeds or gross receipts from the sale

of tobacco products, or both, as those terms are defined in

paragraph 12 of Section 1352 of this title.

Added by Laws 1965, c. 238, § 2, eff. July 1, 1965. Amended by Laws

1972, c. 48, § 1, emerg. eff. March 10, 1972; Laws 1985, c. 179, §

73, operative July 1, 1985; Laws 1999, c. 390, § 6, emerg. eff. June

8, 1999; Laws 2018, 2nd Ex. Sess., c. 8, § 3; Laws 2021, c. 526, §

2, eff. July 1, 2021.

§68-402-1. Additional tax on tobacco products - Rates Apportionment of revenues.

In addition to the tax levied by Section 402 of this title,

there is hereby levied upon the sale, use, exchange or possession of

Oklahoma Statutes - Title 68. Revenue and Taxation

articles containing tobacco as defined in Section 402 of this title,

a tax in the following amounts:

1. Upon cigars of all descriptions made of tobacco, or any

substitute therefor, and weighing more than three (3) pounds per

thousand, and having a manufacturer's recommended retail selling

price, under the Federal Code, of more than four cents ($0.04) for

each cigar, Ten Dollars ($10.00) per thousand. For the purpose of

computing the tax, cheroots, stogies, etc., are hereby classed as

cigars;

2. Upon all smoking tobacco, the tax shall be fifteen percent

(15%) of the factory list price exclusive of any trade discount,

special discount or deals; and

3. Upon smokeless tobacco, the tax shall be ten percent (10%)

of the factory list price exclusive of any trade discount, special

discount or deals.

This tax shall be paid by the consumer and no retailer may

advertise that he will pay or absorb this tax.

The tax herein levied on tobacco products shall be collected on

the same basis and in the same manner and in all respects as the tax

levied by the Tobacco Products Tax Law. The revenue from this

additional tax shall be apportioned by the Oklahoma Tax Commission

in the same manner as provided in Section 404 of this title, for the

apportionment of other tobacco products tax revenue.

Added by Laws 1968, c. 47, § 2, eff. April 1, 1968. Amended by Laws

1972, c. 48, § 2, emerg. eff. March 10, 1972; Laws 1985, c. 179, §

74, operative July 1, 1985; Laws 2018, 2nd Ex. Sess., c. 8, § 4;

Laws 2021, c. 385, § 10, eff. July 1, 2021; Laws 2021, c. 526, § 3,

eff. July 1, 2021.

§68-402-2.

Repealed by Laws 2018, 2nd Ex. Sess., c. 8, § 16.

§68-402-3. Tobacco products tax in addition to tax levied in

Sections 402 to 402-1 - Rates - Apportionment.

A. In addition to the tax levied in Sections 402 and 402-1 of

this title, effective January 1, 2005, there shall be levied,

assessed, collected, and paid in respect to the articles containing

tobacco enumerated in Section 401 et seq. of this title, a tax in

the following amounts:

1. Cigars. Upon all cigars of all descriptions made of

tobacco, or any substitute therefor, and weighing more than three

(3) pounds per thousand, Ninety Dollars ($90.00) per thousand. For

the purpose of computing the tax, cheroots, stogies, etc., are

hereby classed as cigars;

2. Smoking Tobacco. Upon all smoking tobacco, the tax shall be

forty percent (40%) of the factory list price exclusive of any trade

discount, special discount or deals; and

Oklahoma Statutes - Title 68. Revenue and Taxation

3. Smokeless Tobacco. Upon smokeless tobacco, the tax shall be

thirty percent (30%) of the factory list price exclusive of any

trade discount, special discount or deals.

B. Except as provided in subsection C of this section, the

revenue resulting from the additional tax levied in subsection A of

this section shall be apportioned by the Oklahoma Tax Commission and

transmitted to the State Treasurer as follows:

1. Twenty-two and six-hundredths percent (22.06%) shall be

placed to the credit of the Health Employee and Economy Improvement

Act Revolving Fund created in Section 1010.1 of Title 56 of the

Oklahoma Statutes;

2. Three and nine-hundredths percent (3.09%) shall be placed to

the credit of the Comprehensive Cancer Center Debt Service Revolving

Fund created in Section 160.1 of Title 62 of the Oklahoma Statutes;

3. Before July 1, 2008, seven and fifty-hundredths percent

(7.50%) shall be placed to the credit of the Trauma Care Assistance

Revolving Fund created in Section 1-2530.9 of Title 63 of the

Oklahoma Statutes. On and after July 1, 2008, seven and fiftyhundredths percent (7.50%) shall be allocated as follows:

a.

every month, an amount equal to the actual amount

placed to the credit of the Trauma Care Assistance

Revolving Fund pursuant to this paragraph for the same

month of the 2008 fiscal year shall be credited to the

Trauma Care Assistance Revolving Fund,

b.

every month, any amount over and above the amount

placed to the credit of the Trauma Care Assistance

Revolving Fund pursuant to subparagraph a of this

paragraph shall be credited to the Oklahoma Emergency

Response Systems Stabilization and Improvement

Revolving Fund as created in Section 1-2512.1 of Title

63 of the Oklahoma Statutes until the combined amount

credited to the Oklahoma Emergency Response Systems

Stabilization and Improvement Revolving Fund pursuant

to this section and Section 302-5 of this title is

equal to Two Million Five Hundred Thousand Dollars

($2,500,000.00) each year, and

c.

any additional revenue allocated pursuant to this

paragraph shall be placed to the credit of the Trauma

Care Assistance Revolving Fund;

4. Three and nine-hundredths percent (3.09%) shall be placed to

the credit of the Oklahoma State University College of Osteopathic

Medicine Revolving Fund created in Section 160.2 of Title 62 of the

Oklahoma Statutes;

5. Twenty-six and thirty-eight-hundredths percent (26.38%)

shall be placed to the credit of the Oklahoma Health Care Authority

Medicaid Program Fund created in Section 5020 of Title 63 of the

Oklahoma Statutes for the purposes of maintaining programs and

Oklahoma Statutes - Title 68. Revenue and Taxation

services funded under the federal "Jobs and Growth Tax Relief

Reconciliation Act of 2003", reimbursing city/county-owned

hospitals, increasing emergency room physician rates, and providing

TEFRA 134, also known as "Katie Beckett" services;

6. Two and sixty-five-hundredths percent (2.65%) shall be

placed to the credit of the Department of Mental Health and

Substance Abuse Services Revolving Fund created in Section 2-303 of

Title 43A of the Oklahoma Statutes;

7. Forty-four-hundredths of one percent (0.44%) shall be placed

to the credit of the Belle Maxine Hilliard Breast and Cervical

Cancer Treatment Revolving Fund created in Section 1-559 of Title 63

of the Oklahoma Statutes;

8. One percent (1%) shall be placed to the credit of the

Teachers' Retirement System Revolving Fund created in Section 158 of

Title 62 of the Oklahoma Statutes;

9. Two and seven-hundredths percent (2.07%) shall be placed to

the credit of the Education Reform Revolving Fund created in Section

34.89 of Title 62 of the Oklahoma Statutes;

10. Sixty-six-hundredths percent (0.66%) shall be placed to the

credit of the Tobacco Prevention and Cessation Revolving Fund

created in Section 1-105d of Title 63 of the Oklahoma Statutes;

11. Sixteen and eighty-three-hundredths percent (16.83%) shall

be placed to the credit of the General Revenue Fund; and

12. For fiscal years beginning July 1, 2004, and ending June

30, 2006, fourteen and twenty-three-hundredths percent (14.23%)

shall be apportioned to municipalities and counties that levy a

sales tax, in the proportions which total municipal and county sales

tax revenue was apportioned by the Tax Commission in the preceding

month.

For fiscal years beginning July 1, 2006, and thereafter, the

apportionment percentage specified in paragraph 12 of this

subsection will be adjusted by dividing the total municipal and

county sales tax revenue collected in the calendar year immediately

preceding the commencement of the fiscal year by the sum of the

state sales tax revenue and total municipal and county sales tax

revenue collected in the same year. This ratio shall be divided by

the ratio of the total municipal and county sales tax revenue

collected in the calendar year beginning January 1, 2004, and ending

December 31, 2004, divided by the sum of the state sales tax revenue

and total municipal and county sales tax revenue collected in the

same year. The resulting quotient shall be multiplied by fourteen

and twenty-three-hundredths percent (14.23%) to determine the

apportionment percentage for the fiscal year.

For fiscal years beginning July 1, 2006, and thereafter, any

adjustment to the percentage of revenues apportioned to

municipalities and counties shall be reflected in the percent of

revenues apportioned to the General Revenue Fund.

Oklahoma Statutes - Title 68. Revenue and Taxation

C. The net amount of any revenue resulting from a payment in

lieu of excise taxes on little cigars, cigars, smoking tobacco and

smokeless tobacco levied by this section, pursuant to a compact with

a federally recognized Indian tribe or nation after deductions for

deposits into trust accounts pursuant to such compacts, shall be

apportioned by the Tax Commission and transmitted to the State

Treasurer as follows:

1. Thirty-three and forty-nine-hundredths percent (33.49%)

shall be placed to the credit of the Health Employee and Economy

Improvement Act Revolving Fund created in Section 1010.1 of Title 56

of the Oklahoma Statutes;

2. Four and sixty-nine-hundredths percent (4.69%) shall be

placed to the credit of the Comprehensive Cancer Center Debt Service

Revolving Fund created in Section 160.1 of Title 62 of the Oklahoma

Statutes;

3. Before July 1, 2008, eleven and thirty-nine-hundredths

percent (11.39%) shall be placed to the credit of the Trauma Care

Assistance Revolving Fund created in Section 1-2530.9 of Title 63 of

the Oklahoma Statutes. On and after July 1, 2008, eleven and

thirty-nine-hundredths percent (11.39%) shall be allocated as

follows:

a.

every month, an amount equal to the actual amount

placed to the credit of the Trauma Care Assistance

Revolving Fund pursuant to this paragraph for the same

month of the 2008 fiscal year shall be credited to the

Trauma Care Assistance Revolving Fund,

b.

every month, any amount over and above the amount

placed to the credit of the Trauma Care Assistance

Revolving Fund pursuant to subparagraph a of this

paragraph shall be credited to the Oklahoma Emergency

Response Systems Stabilization and Improvement

Revolving Fund as created in Section 1-2512.1 of Title

63 of the Oklahoma Statutes until the combined amount

credited to the Oklahoma Emergency Response Systems

Stabilization and Improvement Revolving Fund pursuant

to this section and Section 302-5 of this title is

equal to Two Million Five Hundred Thousand Dollars

($2,500,000.00) each year, and

c.

any additional revenue allocated pursuant to this

paragraph shall be placed to the credit of the Trauma

Care Assistance Revolving Fund;

4. Four and sixty-nine-hundredths percent (4.69%) shall be

placed to the credit of the Oklahoma State University College of

Osteopathic Medicine Revolving Fund created in Section 160.2 of

Title 62 of the Oklahoma Statutes;

5. Forty and six-hundredths percent (40.06%) shall be placed to

the credit of the Oklahoma Health Care Authority Medicaid Program

Oklahoma Statutes - Title 68. Revenue and Taxation

Fund created in Section 5020 of Title 63 of the Oklahoma Statutes

for the purposes of maintaining programs and services funded under

the federal "Jobs and Growth Tax Relief Reconciliation Act of 2003",

reimbursing city/county-owned hospitals, increasing emergency room

physician rates, and providing TEFRA 134, also known as "Katie

Beckett" services;

6. Four and one-hundredths percent (4.01%) shall be placed to

the credit of the Department of Mental Health and Substance Abuse

Services Revolving Fund created in Section 2-303 of Title 43A of the

Oklahoma Statutes;

7. Sixty-seven-hundredths percent (0.67%) shall be placed to

the credit of the Belle Maxine Hilliard Breast and Cervical Cancer

Treatment Revolving Fund created in Section 1-559 of Title 63 of the

Oklahoma Statutes; and

8. One percent (1%) shall be placed to the credit of the

Tobacco Prevention and Cessation Revolving Fund created in Section

1-105d of Title 63 of the Oklahoma Statutes.

D. It shall not be permissible for a retailer to advertise that

the retailer will absorb the tax due on the taxable merchandise

described herein. Such tax shall be paid by the consumer.

Added by Laws 2004, c. 322, § 10, eff. Dec. 1, 2004 (State Question

No. 713, Legislative Referendum No. 336, adopted at election held

Nov. 2, 2004). Amended by Laws 2008, c. 393, § 10, eff. Nov. 1,

2008; Laws 2018, 2nd Ex. Sess., c. 8, § 5; Laws 2021, c. 526, § 4,

eff. July 1, 2021.