{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-1358.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-1358.1","heading":"Exemptions - Agriculture - Proof of eligibility","body":"A. In order to qualify for any exemption authorized by Section\n\n1358 of this title, at the time of sale, the person to whom the sale\n\nis made shall be required to furnish the vendor proof of eligibility\n\nfor the exemption as required by this section.\n\nB. All vendors shall honor the proof of eligibility for sales\n\ntax exemption as authorized by this section and sales to a person\n\nproviding such proof shall be exempt from the tax levied by this\n\narticle, Section 1350 et seq. of this title.\n\nC. The agricultural exemption permit, the size and design of\n\nwhich shall be prescribed by the Oklahoma Tax Commission, shall\n\nconstitute proof of eligibility for sales tax exemptions authorized\n\nby Section 1358 of this title. The permit shall be obtained by\n\nlisting personal property used in farming or ranching by the person\n\nwith the county assessor each year as provided by law. If the\n\nassessor determines that the personal property is correctly listed\n\nand assessed for ad valorem taxation and the county treasurer\n\ncertifies whether the person has delinquent accounts appearing on\n\nthe personal property tax lien docket in the county treasurer’s\n\noffice, the assessor shall certify the assessment upon a form\n\nprescribed by the Oklahoma Tax Commission. One copy shall be\n\nretained by the assessor, one copy shall be forwarded to the\n\nOklahoma Tax Commission and one copy shall be given to the person\n\nlisting the personal property. Upon verification that the applicant\n\nqualifies for the exemptions authorized by Section 1358 of this\n\ntitle and that the applicant has no delinquent accounts appearing on\n\nthe personal property tax lien docket in the office of the county\n\ntreasurer, a permit shall be issued as prescribed by this section.\n\nThe permit shall be renewable every three (3) years in the manner\n\nprovided by this section.\n\nD. A person who does not otherwise qualify for a permit\n\npursuant to subsection C of this section, except as provided in\n\nsubsection E of this section, shall file with the Oklahoma Tax\n\nCommission an application for an agricultural exemption permit\n\nconstituting proof of eligibility for the sales tax exemptions\n\nauthorized by Section 1358 of this title, setting forth such\n\ninformation as the Tax Commission may require. The application\n\nshall be certified by the applicant that the applicant is engaged in\n\ncustom farming operations or in the business of farming or ranching.\n\nIf the applicant is a corporation, the application shall be\n\ncertified by a legally constituted officer thereof.\n\nThe Oklahoma Tax Commission shall accept any of the following as\n\nproof of eligibility for the exemptions authorized by this section\n\nor pursuant to Section 1358 of this title.\n\n1. A copy of IRS Schedule F, a copy of IRS form 1065 or a copy\n\nof IRS form 4835, or any equivalent form prescribed by the Internal\n\nRevenue Service, with respect to a federal income tax return;\n\n2. A one-page business description form provided by the\n\nOklahoma Tax Commission;\n\n3. Farm Service Agency form 156EZ; or\n\n4. Other documents at the discretion of the Oklahoma Tax\n\nCommission that verify active agriculture production.\n\nE. Except as provided in this subsection, for a person who is a\n\nresident of another state and who is engaged in custom farming\n\noperations in this state, the person shall provide the vendor proof\n\nof residency, the name, address and telephone number of the person\n\nengaging the custom farmer and certification on the face of the\n\ninvoice, under the penalty of perjury, that the property purchased\n\nshall be used in agricultural production as proof of eligibility for\n\nthe sales tax exemption authorized by Section 1358 of this title.\n\nAny person who is a resident of another state and who is engaged in\n\ncustom farming operations in this state and who owns property in\n\nthis state, shall obtain proof of eligibility as provided in\n\nsubsection C or D of this section.\ny, that the property purchased\n\nshall be used in agricultural production as proof of eligibility for\n\nthe sales tax exemption authorized by Section 1358 of this title.\n\nAny person who is a resident of another state and who is engaged in\n\ncustom farming operations in this state and who owns property in\n\nthis state, shall obtain proof of eligibility as provided in\n\nsubsection C or D of this section.\n\nF. If an agricultural exemption permit holder purchases\n\ntangible personal property from a vendor on a regular basis, the\n\npermit holder may furnish the vendor proof of eligibility as\n\nprovided for in subsections C and D of this section and the vendor\n\nmay subsequently make sales of tangible personal property to the\n\npermit holder without requiring proof of eligibility for each\n\nsubsequent sale. Provided, the permit holder shall notify the\n\nvendor of all purchases which are not exempt from sales tax under\n\nthe provisions of Section 1358 of this title and remit the\n\napplicable amount of tax thereon. If the permit holder fails to\n\nnotify the vendor of purchases not exempt from sales tax, then\n\nsufficient grounds shall exist for the Oklahoma Tax Commission to\n\ncancel the agricultural exemption permit of the permit holder who so\n\nfailed to notify the vendor.\n\nG. If an out-of-state agricultural exemption permit holder\n\npurchases tangible personal property from a vendor within this state\n\nwho is not in the business of shipping the tangible personal\n\nproperty purchased, then the out-of-state agricultural exemption\n\npermit holder is responsible for providing an export bill of lading\n\nor other documentation to the vendor from whom the tangible personal\n\nproperty was purchased showing that the point of delivery of such\n\ngoods for use and consumption is outside this state.\n\nH. A purchaser who uses an agricultural exemption permit or\n\nprovides proof of eligibility pursuant to subsection E of this\n\nsection to purchase, exempt from sales tax, items not authorized for\n\nexemption under Section 1358 of this title shall be subject to a\n\npenalty in the amount of Five Hundred Dollars ($500.00).","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"d61d28b1e761d005f9d8d15b5492353eb79ac4f872d201c8f36302872bfe5fe0","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-1358","next":"us-ok/okla.-stat.-tit.-68-68-1359"},"notice":"GroundRules: Original legal text. Not legal advice."}