Bill > SB44

This bill extends the sales tax exemption for contractors working with tax-exempt entities in Oklahoma. Specifically, the bill modifies existing sales tax law to allow contractors and subcontractors working on contracts with tax-exempt organizations to be eligible for the same sales tax exemption as the exempt entity itself. Contractors can now present the exempt entity's tax exemption letter and documentation of their contractual relationship to vendors when making purchases related to the contract, and vendors must retain this documentation as proof of the exemption. This change means that when a tax-exempt organization, such as a nonprofit, government agency, or educational institution, hires a contractor to perform work, that contractor can make tax-free purchases of materials and services necessary to complete the contract. The bill aims to simplify the sales tax process for contractors working with exempt entities and provide consistent tax treatment across different types of contracts. The bill will become effective on November 1, 2025.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb44&Session=2500