Okla. Stat. tit. 68, § 68-500.13: Procedures for tax exempt sales of motor fuel to

governmental agencies.

The exemption for sales of motor fuel for use by the United

States or any agency or instrumentality thereof, as provided in

paragraph 5 of Section 500.10 of this title, district-owned public

school vehicles and buses or FFA and 4-H Club trucks used for the

purpose of legally transporting public school children and in the

operation of vehicles used in driver training, as provided in

paragraph 6 of Section 500.10 of this title, for use by a county,

city, town, volunteer fire department, rural electric cooperative,

rural water and sewer district, rural ambulance service district, or

federally recognized Indian tribe, as provided in paragraph 7 of

Section 500.10 of this title, and for use by the Oklahoma Space

Industry Development Authority or any spaceport user, as provided in

paragraph 17 of Section 500.10 of this title, shall be perfected as

follows:

1. The ultimate vendor shall obtain a certificate signed by the

purchasing entity listed in this section setting forth:

a. the name and address of the purchasing entity,

b. the quantity of motor fuel, or if the certificate is

for all the motor fuel purchased by the purchasing

entity, the certificate shall be for a period not to

exceed three (3) years,

c. the exempt use of the motor fuel,

d. the name and address of the ultimate vendor from whom

the motor fuel was purchased,

e. the federal employer identification number of the

purchasing entity, and

f. a statement that the purchasing entity understands

that the fraudulent use of the certificate to obtain

fuel without paying the tax levied pursuant to Section

500.1 et seq. of this title shall result in the

purchaser paying the tax, with penalties and interest,

as well as such other penalties provided in Section

500.1 et seq. of this title;

2. The ultimate vendor, having obtained from the purchasing

entity the certificate, which the ultimate vendor shall retain for a

period of not less than three (3) years, shall execute an ultimate

vendor certificate which shall contain the following information:

a. the name and address of the ultimate vendor,

b. the federal employment identification number of the

ultimate vendor,

c. the quantity of motor fuel sold and the date of the

sale,

d. a certification that the ultimate vendor sold motor

fuel to the purchasing entity for the exempt purpose,

e. that the ultimate vendor has the necessary records to

support the sale of the motor fuel, and

f. that the ultimate vendor understands and agrees that

the fraudulent use of the certificate to obtain fuel

without paying the tax levied pursuant to Section

500.1 et seq. of this title, or paying a refund of the

tax, whether for the ultimate vendor or others, shall

result in the payment of the tax by the ultimate

vendor, with penalties and interest, as well as such

other penalties provided in Section 500.1 et seq. of

this title;

3. The ultimate vendor shall give the executed ultimate vendor

certificate to the supplier who, having made reasonable commercial

inquiries into the accuracy of the information in the certificate,

shall be eligible to claim a credit against the tax liability on the

ensuing monthly report of the supplier. As a condition of obtaining

the credit, the supplier shall credit or refund the tax to the

ultimate vendor who made the sale to the purchasing entity. If

there is an intermediate vendor, or vendors, in the distribution

chain between the supplier and the ultimate vendor, each vendor

shall endorse the certificate, subject to rules promulgated by the

Oklahoma Tax Commission, and transmit the certificate to the

supplier and remit the credit, once received, to the customer of the

intermediate vendor. The supplier and all vendors, if they accept

the certificate in good faith and make a reasonable inquiry as to

the accuracy of the information contained in the certificate, shall

hall endorse the certificate, subject to rules promulgated by the

Oklahoma Tax Commission, and transmit the certificate to the

supplier and remit the credit, once received, to the customer of the

intermediate vendor. The supplier and all vendors, if they accept

the certificate in good faith and make a reasonable inquiry as to

the accuracy of the information contained in the certificate, shall

be held harmless if the purchasing entity has made a fraudulent

claim; and

4. If the sale of motor fuel to the purchasing entity occurs at

a fixed retail pump available to the general public, the ultimate

vendor, having made the sale to the purchasing entity without the

tax, may apply for a refund from the Tax Commission by submitting

the application and supporting documentation as the Tax Commission

shall reasonably prescribe by regulation. However, if the purchase

is charged to a fleet or government fueling credit card, or to an

oil company credit card issued to the purchasing entity, the

ultimate vendor may bill the purchasing entity without the tax and

seek a refund, or utilize the provisions of paragraph 1, 2, or 3 of

this section if the issuer of the card is a supplier.