HB 1378: Revenue and taxation; sales tax exemptions; agriculture; definition to include timber; effective date. - Oklahoma

Floor (House) → Floor (Senate) · 5 edits

MODERATE

The bill was amended to transition from the House version to the Senate floor version, incorporating specific committee amendments that clarify eligibility rules and definitions. The changes primarily focus on refining who qualifies for sales tax exemptions on agricultural products and supplies, such as dairy producers and fertilizer applicators, while adding stricter definitions for terms like 'poultry' and 'livestock' to exclude pets. Additionally, the Senate version introduces new requirements for documentation, mandating that purchasers use specific duplicate invoices to verify eligibility for fertilizer and pesticide exemptions.

Scope change

The scope of the bill remains focused on sales tax exemptions for agriculture, but the applicability has been tightened through more precise definitions and added documentation requirements for certain exemptions.

DEFINITION

Added specific definitions to clarify that 'poultry' excludes non-domestic fowl and 'livestock' excludes pet animals like dogs, cats, and birds.

Provided new definitions for 'agricultural fertilizer', 'pharmaceuticals', and 'biologicals' to ensure consistent application of tax exemptions.

REQUIREMENT

Introduced a mandatory requirement for purchasers to execute a duplicate invoice or sales ticket to prove eligibility for feed and fertilizer exemptions.

ELIGIBILITY

Refined eligibility criteria for dairy products by specifying that the seller must own all the cows from which the products are produced.

Updated the rules for fertilizer sales to explicitly include persons applying materials on a contract or custom basis to land owned or leased by farmers.

Enrolled (final version) → Floor (House) · 1 edit

MINOR

The bill text was reformatted from an enrolled version to a floor version, adding page numbers and committee amendment markers. The substantive legal content regarding sales tax exemptions for agriculture, including definitions of agricultural products and livestock, remains unchanged.

TECHNICAL

The document structure was updated to reflect the House floor version, including the addition of page numbers, session details, and notes indicating that bold text represents committee amendments.

Engrossed → Enrolled (final version) · 4 edits · May 28, 2025

MODERATE

The bill was finalized to expand sales tax exemptions for agriculture, specifically adding new exemptions for farm machinery, fuel, and supplies used by custom crop producers. It also clarifies that the exemption for evergreen tree sales applies to the supplies used to raise the trees, not just the trees themselves. Additionally, the sponsor of the bill was updated to include a new co-sponsor.

Scope change

The scope of tax exemptions was expanded to include custom agricultural services and equipment, and the definition of eligible activities for evergreen tree sales was clarified.

SCOPE

Added a new exemption for farm machinery, repair parts, fuel, oil, and lubricants used by persons engaged in custom agricultural production services for farmers and ranchers.

Added a new exemption for supplies and equipment used to raise evergreen trees for retail sale, provided the trees are cut down on the premises by the consumer.

ELIGIBILITY

Clarified that the evergreen tree exemption applies to the supplies and machinery used to raise the trees, not just the final sale of the tree.

TECHNICAL

Updated the bill sponsor list to include Humphrey as a co-sponsor.

Amended And Engrossed → Engrossed · 3 edits · May 28, 2025

MINOR

The amendment adds new exemptions for agricultural pesticides used on living humans or animals and clarifies the scope of farm machinery exemptions to explicitly include production, cultivation, and processing activities. These changes expand the tax relief available to farmers and ranchers by broadening the types of products and uses that qualify for sales tax exemptions.

Scope change

The bill's scope was expanded to include specific exemptions for pesticides used on living humans or animals and to clarify that farm machinery exemptions cover the entire production and processing cycle, not just initial planting or harvesting.

ELIGIBILITY

Added an exemption for agricultural pesticides intended for use on or in living humans, bacteria, or other microorganisms.

Clarified that farm machinery and fuel exemptions apply to the full lifecycle of production, including cultivation, planting, sowing, harvesting, processing, spraying, preservation, and irrigation.

DEFINITION

Adjusted spacing and punctuation in definitions of 'livestock' and 'agricultural fertilizer' to ensure consistent interpretation.

Introduced → Amended And Engrossed · 3 edits · May 28, 2025

MINOR

The bill was amended to add a House Coauthor and update the legislative history to reflect its passage by the Senate and House. The substantive text of the sales tax exemptions for agriculture remains unchanged, though the formatting was adjusted to consolidate the document into a single page.

Scope change

No change to the scope of the bill; the exemptions for agricultural products, livestock, and farm supplies remain the same.

REQUIREMENT

Added a House Coauthor named Humphrey to the bill's authorship.

TECHNICAL

Updated the document header to reflect that the bill has been passed by both the Senate and the House of Representatives.

Reformatted the document to remove page breaks and consolidate the text onto a single page.

Revenue and taxation; sales tax exemptions; agriculture; definition to include timber; effective date.

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