Oklahoma § 68-6003 - Exemptions

§ 68-6003. Exemptions

The following aircraft shall be exempt from provisions of

Section 6001 et seq. of this title:

1. Aircraft manufactured under an Federal Aviation

Administration-approved certificate and which are owned and in the

physical possession of the manufacturer of the aircraft. The

aircraft shall have an aircraft exemption license as provided for in

Section 254 of Title 3 of the Oklahoma Statutes;

Oklahoma Statutes - Title 68. Revenue and Taxation

2. Aircraft owned by dealers and in the dealer’s inventory, not

including aircraft that are used personally or for business. In

order for this exemption to apply, the dealer shall be licensed in

accordance with Section 254.1 of Title 3 of the Oklahoma Statutes;

3. Aircraft of the federal government, any agency thereof, any

territory or possession, any state government, agency, or political

subdivision thereof;

4. Aircraft transferred from one corporation or limited

liability company to another corporation or limited liability

company pursuant to reorganization of the corporation or limited

liability company. For the purpose of this section the term

reorganization means a statutory merger, consolidation, or

acquisition;

5. Aircraft purchased or used by commercial airlines as defined

by paragraph 2 of Section 6001 of this title, provided any such

aircraft does not operate under Part 91 of Title 14 of the Code of

Federal Regulations, 14 C.F.R., Part 91, for more than fifty percent

(50%) of its annual operations. If the operations of such aircraft

are not at least fifty percent (50%) Part 135 charter operations

annually, the excise tax levied pursuant to the provisions of

Section 6002 of this title shall be due and payable. An aircraft

owner shall provide a report to Service Oklahoma on an annual basis

detailing the operations of the aircraft and any supporting flight,

maintenance or charter log books required by Service Oklahoma. For

the purpose of satisfying this requirement, such operations may not

include those chartered by the aircraft owner as an individual or as

a business entity in which the aircraft owner owns a majority

interest;

6. Aircraft transferred in connection with the dissolution or

liquidation of a corporation or limited liability company and only

if included in a payment in kind to the shareholders or members;

7. Aircraft transferred to a corporation for the purpose of

organizing such corporation. However, the former owners of the

aircraft must have control of the corporation in proportion to their

interest in the aircraft prior to the transfer;

8. Aircraft transferred to a partnership or limited liability

company when the organization of the partnership or limited

liability company is by the former owners of the aircraft. However,

the former owners of the aircraft must have control of the

partnership in proportion to their interest in the aircraft prior to

the transfer;

9. Aircraft transferred from a partnership or limited liability

company to the members of the partnership or limited liability

company and if made in payment in kind in the dissolution of the

partnership;

10. Aircraft transferred or conveyed to a partner of a

partnership or shareholder or member of a limited liability company

Oklahoma Statutes - Title 68. Revenue and Taxation

or other person who after such sale owns a joint interest in the

aircraft and on which the sales or use tax levied pursuant to the

provisions of this title or the excise tax levied pursuant to the

provisions of Section 6002 of this title have previously been paid

on the aircraft;

11. Aircraft on which a tax levied pursuant to the provisions

of the laws of another state, equal to or in excess of the excise

tax levied by Section 6002 of this title, has been paid by the

person using the aircraft in this state. Aircraft on which a tax

levied pursuant to the laws of another state, in an amount less than

the excise tax levied by Section 6002 of this title, has been paid

by the person using the aircraft in this state shall be subject to

the levy of the excise tax at a rate equal to the difference between

the rate of tax levied by Section 6002 of this title and the rate of

tax levied by the other state;

12. Aircraft when legal ownership of such aircraft is obtained

by the applicant for a certificate of title by inheritance;

13. Aircraft when legal ownership of such aircraft is obtained

by the lienholder or mortgagee under or by foreclosure of a lien or

mortgage in the manner provided for by law;

14. Aircraft which is transferred between husband and wife or

parent and child where no valuable consideration is given;

15. Aircraft which is purchased by a resident of this state and

used exclusively in this state for agricultural spraying purposes;

provided, if such aircraft is sold, leased or used outside this

state or for a purpose other than agricultural spraying at any time

within three (3) years from the date of purchase, the excise tax

levied pursuant to the provisions of Section 6002 of this title

shall be due and payable. For purposes of this subsection,

“agricultural spraying” means the aerial application of any

substance sold and used for soil enrichment or soil corrective

purposes or for promoting the growth and productivity of plants and

animals;

16. Aircraft which have a selling price in excess of Two

Million Five Hundred Thousand Dollars ($2,500,000.00) and which are

transferred to a purchaser who is not a resident of this state for

immediate transfer out of state;

17. Aircraft which is transferred without consideration between

an individual and an express trust which that individual or the

spouse, child or parent of that individual has a right to revoke;

and

18. Rotary-wing aircraft purchased to be used exclusively for

the purpose of training U.S. military personnel or other training

authorized by the U.S. Government. The exemption provided by this

paragraph shall cease to be effective on January 1, 2018.

Added by Laws 1984, c. 138, § 4, operative July 1, 1984. Amended by

Laws 1985, c. 341, § 3, emerg. eff. July 30, 1985; Laws 1986, c. 41,

Oklahoma Statutes - Title 68. Revenue and Taxation

§ 8, operative July 1, 1986; Laws 1991, c. 184, § 1, eff. July 1,

1991; Laws 1992, c. 225, § 4, eff. July 1, 1992; Laws 1993, c. 41, §

1, emerg. eff. April 5, 1993; Laws 1993, c. 366, § 49, eff. Sept. 1,

1993; Laws 1994, c. 363, § 11, eff. July 1, 1994; Laws 1995, c. 337,

§ 13, emerg. eff. June 9, 1995; Laws 1996, c. 344, § 3, eff. July 1,

1996; Laws 1997, c. 294, § 27, eff. July 1, 1997; Laws 1999, c. 283,

§ 1, eff. July 1, 1999; Laws 2000, c. 138, § 3, eff. July 1, 2000;

Laws 2013, c. 380, § 1, eff. Nov. 1, 2013; Laws 2018, c. 276, § 2,

emerg. eff. May 10, 2018; Laws 2023, c. 365, § 10, eff. July 1,

2024.

NOTE: Laws 1991, 1st Ex.Sess., c. 2, § 14 repealed by Laws 1992, c.

225, § 11, eff. July 1, 1992.