Oklahoma § 68-500.4 - Levy of tax

§ 68-500.4. Levy of tax

A. A tax is imposed on all gasoline, compressed natural gas,

liquefied natural gas and all diesel fuel used or consumed in this

state as follows:

1. Gasoline, sixteen cents ($0.16) per gallon;

2. Diesel fuel, thirteen cents ($0.13) per gallon;

3. Compressed natural gas, five cents ($0.05) per gasoline

gallons equivalent (gge) until the credit authorized pursuant to the

provisions of paragraph 1 of subsection A of Section 2357.22 of this

title expires. Upon the expiration of the credit authorized

pursuant to the provisions of paragraph 1 of subsection A of Section

2357.22 of this title, the rate of tax imposed upon compressed

natural gas shall be equal to the tax rate imposed on diesel fuel

using gasoline gallons equivalent (gge); and

4. Liquefied natural gas, five cents ($0.05) per diesel gallon

equivalent (dge) until the credit authorized pursuant to the

provisions of paragraph 1 of subsection A of Section 2357.22 of this

title expires. Upon the expiration of the credit authorized

pursuant to the provisions of paragraph 1 of subsection A of Section

2357.22 of this title, the rate of tax imposed upon liquefied

natural gas shall be equal to the tax rate imposed on diesel fuel

using diesel gallon equivalent (dge), which shall be equal to six

and six one-hundredths (6.06) pounds of liquefied natural gas.

B. A tax is imposed on all gasoline, diesel fuel and kerosene

used or consumed in this state for use as fuel to generate power in

aircraft engines or for training, testing or research on aircraft

engines in the amount of eight one-hundredths of one cent ($0.0008)

per gallon. All gasoline, diesel fuel and kerosene sold for use

under this subsection shall not be subject to the excise tax levied

in subsection A of this section.

C. Notwithstanding any exemption provided in Section 500.1 et

seq. of this title, all gasoline used or consumed in this state for

use as fuel for farm tractors or stationary engines and used

exclusively for agricultural purposes shall be subject to a tax in

the amount of two and eight one-hundredths cents ($0.0208) per

gallon. All gasoline sold for use pursuant to this subsection shall

not be subject to the excise tax levied in subsection A of this

Oklahoma Statutes - Title 68. Revenue and Taxation

section. The term "farm tractor", as used herein, shall include all

tractor-type, motorized farm implements and equipment but shall not

include motor vehicles of the truck-type, pickup truck-type,

automobiles and other motor vehicles required to be registered and

licensed each year under the Oklahoma Vehicle License and

Registration Act.

D. It is the intent of this section to amend, revise,

incorporate and recodify the tax imposed on motor fuel and that the

tax shall be conclusively presumed to be a direct tax and shall be a

direct tax on the retail or ultimate consumer precollected for the

purpose of convenience and facility to the consumer. The levy and

assessment on other persons as specified in this act shall be as

agents of the state for the precollection of the tax. The

provisions of this section shall in no way affect the method of

collecting the tax as provided in this act. The tax imposed by this

section shall be collected and paid at those times, in the manner,

and by those persons specified in this act.

Added by Laws 1996, c. 345, § 4, eff. Oct. 1, 1996. Amended by Laws

2000, c. 314, § 7, eff. July 1, 2000; Laws 2011, c. 163, § 3, eff.

Jan. 1, 2012; Laws 2013, c. 375, § 3, eff. Jan. 1, 2014.

§68-500.4A. Levy of tax equal to reduction in federal excise tax.

A. In the event that, by federal law, the federal excise tax

imposed on gasoline or diesel fuel or both is reduced from the rate

imposed on January 1, 1996, there shall be levied a tax equal to the

reduction in the federal excise tax on gasoline or diesel fuel or

both. The tax on gasoline or diesel fuel or both shall be imposed

beginning the first day following the reduction in the rate of the

federal excise tax on gasoline or diesel fuel or both. The tax

imposed by this subsection resulting from a reduction in federal

excise tax on gasoline or diesel fuel or both shall not include any

reduction in federal excise tax imposed on diesel fuel for use in

trains pursuant to the Internal Revenue Code, 26 U.S.C., Section

4041, in that the federal excise tax levy on diesel fuel for use in

trains is not appropriated or apportioned to the Federal Highway

Trust Fund.

B. The tax levied pursuant to subsection A of this section

shall be in addition to and applicable to all gasoline and diesel

fuel subject to the tax imposed and levied pursuant to Section 500.4

of Title 68 of the Oklahoma Statutes. It is the intent of this

section that the tax shall be conclusively presumed to be a direct

tax and shall be a direct tax on the retail or ultimate consumer

precollected for the purpose of convenience and facility to the

consumer. The levy and assessment on other persons as specified in

the Motor Fuel Tax Code shall be as agents of the state for the

precollection of the tax. The provisions of this section shall in

no way affect the method of collecting the tax as provided in the

Oklahoma Statutes - Title 68. Revenue and Taxation

Motor Fuel Tax Code. The tax imposed by this section shall be

collected and paid at those times, in the manner, and by those

persons specified in the Motor Fuel Tax Code.

Added by Laws 1997, c. 259, § 1, eff. Nov. 1, 1997.

§68-500.4B. Additional tax imposed on diesel fuel and gasoline Apportionment of revenue.

A. For the purpose of providing revenue for the support of the

functions of state government, in addition to the tax imposed by

Section 500.4 of Title 68 of the Oklahoma Statutes, there is hereby

imposed a tax of:

1. Six cents ($0.06) per gallon on all diesel fuel used or

consumed in this state; and

2. Three cents ($0.03) per gallon on all gasoline used or

consumed in this state.

B. All remaining revenue from the tax imposed by subsection A

of this section and penalties and interest thereon collected by the

Oklahoma Tax Commission, after the requirements of Section 500.63 of

Title 68 of the Oklahoma Statutes have been fulfilled, shall be

deposited as follows:

1. Prior to July 1, 2019, the remaining revenue shall be

apportioned by the Oklahoma Tax Commission and transmitted to the

State Treasurer who shall deposit such revenue in the General

Revenue Fund; and

2. Beginning July 1, 2019, the remaining revenue shall be

apportioned by the Oklahoma Tax Commission and transmitted to the

State Treasurer who shall deposit such revenue in the Rebuilding

Oklahoma Access and Driver Safety Fund created in Section 1521 of

Title 69 of the Oklahoma Statutes.

Added by Laws 2018, 2nd Ex. Sess., c. 8, § 6.