{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-500.10","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-500.10","heading":"Exemptions from motor fuels tax","body":"Subject to the procedural requirements and conditions set out in\n\nthis section and Sections 500.11 through 500.17 of this title, the\n\nfollowing are exempt from the taxes on motor fuel imposed by Section\n\n500.4 of this title and Section 500.4b of this title:\n\n1. Motor fuel for which proof of export is available in the\n\nform of a terminal-issued destination state shipping paper:\n\na. exported by a supplier who is licensed in the\n\ndestination state, or\n\nb. sold by a supplier to a licensed exporter for\n\nimmediate export;\n\n2. Motor fuel which was acquired by an unlicensed exporter and\n\nas to which the tax imposed by Section 500.4 of this title has\n\npreviously been paid or accrued and was subsequently exported by\n\ntransport truck by or on behalf of the licensed exporter in a\n\ndiversion across state boundaries properly reported in conformity\n\nwith Section 500.46 of this title;\n\n3. Motor fuel exported out of a bulk plant in this state in a\n\ntank wagon if the destination of that vehicle does not exceed\n\ntwenty-five (25) miles from the border of this state and as to which\n\nthe tax imposed by Section 500.4 of this title has previously been\n\npaid or accrued, subject to gallonage limits and other conditions\n\nestablished by the Oklahoma Tax Commission;\n\n4. K-1 kerosene sold at retail through dispensers which have\n\nbeen designed and constructed to prevent delivery directly from the\n\ndispenser into a vehicle fuel supply tank, and K-1 kerosene sold at\n\nretail through nonbarricaded dispensers in quantities of not more\n\nthan twenty-one (21) gallons for use other than for highway\n\npurposes, under such rules as the Tax Commission shall reasonably\n\nrequire;\n\n5. Motor fuel sold to the United States or any agency or\n\ninstrumentality thereof;\n\n6. Motor fuel used solely and exclusively in district-owned\n\npublic school vehicles or FFA and 4-H Club trucks for the purpose of\n\nlegally transporting public school children, and motor fuel\n\npurchased by any school district for use exclusively in school buses\n\nleased or hired for the purpose of legally transporting public\n\nschool children, or in the operation of vehicles used in driver\n\ntraining;\n\n7. Motor fuel used solely and exclusively as fuel to propel\n\nmotor vehicles on the public roads and highways of this state, when\n\nleased or owned and being operated for the sole benefit of a county,\n\ncity, town, a volunteer fire department with a state certification\n\nand rating, rural electric cooperatives, rural water and sewer\n\ndistricts, rural irrigation districts organized under the Oklahoma\n\nIrrigation District Act, conservancy districts and master\n\nconservancy districts organized under the Conservancy Act of\n\nOklahoma, rural ambulance service districts, ambulance districts\n\nestablished under Section 9C of Article X of the Oklahoma\n\nConstitution, or federally recognized Indian tribes;\n\n8. Motor fuel used as fuel for farm tractors or stationary\n\nengines owned or leased and operated by any person and used\n\nexclusively for agricultural purposes, except as to two and eight\n\none-hundredths cents ($0.0208) per gallon of gasoline as provided in\n\nsubsection C of Section 500.4 of this title;\n\n9. Gasoline, diesel fuel and kerosene sold for use as fuel to\n\ngenerate power in aircraft engines, whether in aircraft or for\n\ntraining, testing or research purposes of aircraft engines, except\n\nas to eight one-hundredths of one cent ($0.0008) per gallon as\n\nprovided in subsection B of Section 500.4 of this title;\n\n10. Motor fuel sold within an Indian reservation or within\n\nIndian country by a federally recognized Indian tribe to a member of\n\nthat tribe and used in motor vehicles owned by that member of the\n\ntribe. This exemption does not apply to sales within an Indian\n\nreservation or within Indian country by a federally recognized\n\nIndian tribe to non-Indian consumers or to Indian consumers who are\ntitle;\n\n10. Motor fuel sold within an Indian reservation or within\n\nIndian country by a federally recognized Indian tribe to a member of\n\nthat tribe and used in motor vehicles owned by that member of the\n\ntribe. This exemption does not apply to sales within an Indian\n\nreservation or within Indian country by a federally recognized\n\nIndian tribe to non-Indian consumers or to Indian consumers who are\n\nnot members of the tribe selling the motor fuel;\n\n11. Subject to determination by the Tax Commission, that\n\nportion of diesel fuel:\n\na. used to operate equipment attached to a motor vehicle,\n\nif the diesel fuel was placed into the fuel supply\n\ntank of a motor vehicle that has a common fuel\n\nreservoir for travel on a highway and for the\n\noperation of equipment, or\n\nb. consumed by the vehicle while the vehicle is parked\n\noff the highways of this state;\n\n12. Motor fuel acquired by a consumer out of state and carried\n\ninto this state, retained within and consumed from the same vehicle\n\nfuel supply tank within which it was imported;\n\n13. Diesel fuel used as heating oil, or in railroad locomotives\n\nor any other motorized flanged-wheel rail equipment, or used for\n\nother nonhighway purposes other than as expressly exempted under\n\nanother provision;\n\n14. Motor fuel which was lost or destroyed as a direct result\n\nof a sudden and unexpected casualty;\n\n15. Taxable diesel which had been accidentally contaminated by\n\ndye so as to be unsaleable as highway fuel as proved by proper\n\ndocumentation;\n\n16. Dyed diesel fuel;\n\n17. Motor fuel sold to the Oklahoma Space Industry Development\n\nAuthority or any spaceport user as defined in the Oklahoma Space\n\nIndustry Development Act; and\n\n18. Biofuels or biodiesel produced by an individual with crops\n\ngrown on property owned by the same individual and used in a vehicle\n\nowned by the same individual on the public roads and highways of\n\nthis state.","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":"72264e29025fa95c4e558531edd41b8eed08b274956f45c327cfb99e5b605ed3","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-500.1","next":"us-ok/okla.-stat.-tit.-68-68-500.10-1"},"notice":"GroundRules: Original legal text. Not legal advice."}