{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-1404.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-1404.1","heading":"Manufacturers - Refund of certain state and local use","body":"taxes.\n\nA. In order to administer the exemption for sales to a\n\nqualified manufacturer as provided by Section 1359 of this title as\n\napplicable to the use tax imposed by law, there shall be made a use\n\ntax refund for state and local taxes paid by qualified manufacturers\n\nfor tangible personal property purchased to be consumed or\n\nincorporated in the construction of a new manufacturing facility or\n\nto expand an existing manufacturing facility in the state from the\n\naccount created by this section.\n\nB. The Oklahoma Tax Commission shall transfer each month from\n\nuse tax collected the amount which the Commission estimates to be\n\nnecessary to make the use tax refund provided by this section to an\n\naccount designated as the Commission determines.\n\nC. Any refund shall be paid from the account prescribed by this\n\nsection at the time the claim for refund is approved by the Oklahoma\n\nTax Commission. The amount of the refund shall not exceed the total\n\nstate and local use taxes paid together with accrued interest upon\n\nsuch total. The amount of interest paid to a qualified manufacturer\n\nupon the principal amount of any refund made to such manufacturer\n\nfor purposes of administering the exemption provided by Section 1359\n\nof this title shall be determined according to the provisions of\n\nthis subsection. For any month during which the Oklahoma Tax\n\nCommission transfers a sum to the account prescribed by subsection B\n\nof this section, the Commission shall determine an interest rate by\n\ndetermining the rate of interest paid for a three-month Treasury\n\nBill of the United States government as of the first working day of\n\nthe month in which the transfer is made. The interest rate so\n\ndetermined shall accrue upon the amount transferred to the account.\n\nIn each subsequent month, the Commission shall determine the\n\ninterest rate paid for a three-month Treasury Bill of the United\n\nStates government as of the first working day of the month and such\n\ninterest rate shall accrue upon any amount transferred during the\n\nmonth and upon the amounts previously transferred to the account\n\ntogether with interest previously accrued upon such amounts.\n\nD. For purposes of this section, state and local use taxes paid\n\nby a contractor or subcontractor for tangible personal property\n\npurchased by that contractor or subcontractor to be consumed or\n\nincorporated in the construction of a new or expanded manufacturing\n\nfacility pursuant to a contract with a qualified manufacturer shall,\n\nupon proper showing, be refunded to the qualified manufacturer.\n\nE. The qualified manufacturer shall file with the Oklahoma Tax\n\nCommission the following documentation for any refund claimed:\n\n1. Invoices indicating the amount of state and local use tax\n\nbilled;\n\n2. Affidavit of each vendor that state and local use tax billed\n\nhas not been audited, rebated, or refunded to the qualified\n\nmanufacturer but rather the use tax charged has been collected by\n\nthe vendor and remitted to the Oklahoma Tax Commission; and\n\n3. All additional documentation required to be submitted\n\npursuant to rules promulgated by the Oklahoma Tax Commission.\n\nF. In the event that state and local use tax was paid by a\n\ncontractor or subcontractor, the qualified manufacturer shall file\n\nwith the Oklahoma Tax Commission all documentation required in\n\nsubsection E of this section but in lieu of the affidavit of each\n\nvendor the qualified manufacturer shall file, for any refund\n\nclaimed, an affidavit from the contractor or subcontractor stating\n\nthat the use tax refund of the qualified manufacturer is based on\n\nstate and local use tax, paid by the contractor or subcontractor on\n\ntangible personal property purchased to be consumed or incorporated\n\nin the construction of a new or expanded business activity and that\n\nthe amount of the state and local use tax claimed was paid to the\n\nvendor and no credit, refund, or rebate has been claimed by the\nthe use tax refund of the qualified manufacturer is based on\n\nstate and local use tax, paid by the contractor or subcontractor on\n\ntangible personal property purchased to be consumed or incorporated\n\nin the construction of a new or expanded business activity and that\n\nthe amount of the state and local use tax claimed was paid to the\n\nvendor and no credit, refund, or rebate has been claimed by the\n\ncontractor or subcontractor.\n\nG. Only sales of tangible personal property made after June 1,\n\n1988, shall be eligible for the refund established by this section.\n\nH. The qualified manufacturer shall file, within thirty-six\n\n(36) months of the date of the first purchase which is exempt from\n\ntaxation pursuant to the provisions of subsection (H) of Section\n\n1359 of this title, with the Oklahoma Tax Commission, a\n\ncertification issued by the Employment Security Commission in order\n\nto qualify for the refund authorized by this section.\n\nI. Notwithstanding the provisions of any state tax law, the\n\namount refunded under this section shall be assessed if the number\n\nof full-time-equivalent employees drops below the number prescribed\n\nin subsection (H) of Section 1359 of this title, as amended by\n\nSection 1 of this act, at any time within thirty-six (36) months of\n\nthe date certification is issued by the Oklahoma Employment Security\n\nCommission.","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":"5e053cc0a05add179c2ad1651319b987f46b4b1f9e49f17cf27df99e0671f918","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-1404","next":"us-ok/okla.-stat.-tit.-68-68-1404.3"},"notice":"GroundRules: Original legal text. Not legal advice."}