Okla. Stat. tit. 68, § 68-1358.1: Exemptions - Agriculture - Proof of eligibility

A. In order to qualify for any exemption authorized by Section

1358 of this title, at the time of sale, the person to whom the sale

is made shall be required to furnish the vendor proof of eligibility

for the exemption as required by this section.

B. All vendors shall honor the proof of eligibility for sales

tax exemption as authorized by this section and sales to a person

providing such proof shall be exempt from the tax levied by this

article, Section 1350 et seq. of this title.

C. The agricultural exemption permit, the size and design of

which shall be prescribed by the Oklahoma Tax Commission, shall

constitute proof of eligibility for sales tax exemptions authorized

by Section 1358 of this title. The permit shall be obtained by

listing personal property used in farming or ranching by the person

with the county assessor each year as provided by law. If the

assessor determines that the personal property is correctly listed

and assessed for ad valorem taxation and the county treasurer

certifies whether the person has delinquent accounts appearing on

the personal property tax lien docket in the county treasurer’s

office, the assessor shall certify the assessment upon a form

prescribed by the Oklahoma Tax Commission. One copy shall be

retained by the assessor, one copy shall be forwarded to the

Oklahoma Tax Commission and one copy shall be given to the person

listing the personal property. Upon verification that the applicant

qualifies for the exemptions authorized by Section 1358 of this

title and that the applicant has no delinquent accounts appearing on

the personal property tax lien docket in the office of the county

treasurer, a permit shall be issued as prescribed by this section.

The permit shall be renewable every three (3) years in the manner

provided by this section.

D. A person who does not otherwise qualify for a permit

pursuant to subsection C of this section, except as provided in

subsection E of this section, shall file with the Oklahoma Tax

Commission an application for an agricultural exemption permit

constituting proof of eligibility for the sales tax exemptions

authorized by Section 1358 of this title, setting forth such

information as the Tax Commission may require. The application

shall be certified by the applicant that the applicant is engaged in

custom farming operations or in the business of farming or ranching.

If the applicant is a corporation, the application shall be

certified by a legally constituted officer thereof.

The Oklahoma Tax Commission shall accept any of the following as

proof of eligibility for the exemptions authorized by this section

or pursuant to Section 1358 of this title.

1. A copy of IRS Schedule F, a copy of IRS form 1065 or a copy

of IRS form 4835, or any equivalent form prescribed by the Internal

Revenue Service, with respect to a federal income tax return;

2. A one-page business description form provided by the

Oklahoma Tax Commission;

3. Farm Service Agency form 156EZ; or

4. Other documents at the discretion of the Oklahoma Tax

Commission that verify active agriculture production.

E. Except as provided in this subsection, for a person who is a

resident of another state and who is engaged in custom farming

operations in this state, the person shall provide the vendor proof

of residency, the name, address and telephone number of the person

engaging the custom farmer and certification on the face of the

invoice, under the penalty of perjury, that the property purchased

shall be used in agricultural production as proof of eligibility for

the sales tax exemption authorized by Section 1358 of this title.

Any person who is a resident of another state and who is engaged in

custom farming operations in this state and who owns property in

this state, shall obtain proof of eligibility as provided in

subsection C or D of this section.

y, that the property purchased

shall be used in agricultural production as proof of eligibility for

the sales tax exemption authorized by Section 1358 of this title.

Any person who is a resident of another state and who is engaged in

custom farming operations in this state and who owns property in

this state, shall obtain proof of eligibility as provided in

subsection C or D of this section.

F. If an agricultural exemption permit holder purchases

tangible personal property from a vendor on a regular basis, the

permit holder may furnish the vendor proof of eligibility as

provided for in subsections C and D of this section and the vendor

may subsequently make sales of tangible personal property to the

permit holder without requiring proof of eligibility for each

subsequent sale. Provided, the permit holder shall notify the

vendor of all purchases which are not exempt from sales tax under

the provisions of Section 1358 of this title and remit the

applicable amount of tax thereon. If the permit holder fails to

notify the vendor of purchases not exempt from sales tax, then

sufficient grounds shall exist for the Oklahoma Tax Commission to

cancel the agricultural exemption permit of the permit holder who so

failed to notify the vendor.

G. If an out-of-state agricultural exemption permit holder

purchases tangible personal property from a vendor within this state

who is not in the business of shipping the tangible personal

property purchased, then the out-of-state agricultural exemption

permit holder is responsible for providing an export bill of lading

or other documentation to the vendor from whom the tangible personal

property was purchased showing that the point of delivery of such

goods for use and consumption is outside this state.

H. A purchaser who uses an agricultural exemption permit or

provides proof of eligibility pursuant to subsection E of this

section to purchase, exempt from sales tax, items not authorized for

exemption under Section 1358 of this title shall be subject to a

penalty in the amount of Five Hundred Dollars ($500.00).