(A) Excise tax. There is levied an excise tax of 3-1/4% upon the gross proceeds or gross receipts derived from all sales taxable under the Oklahoma Sales Tax Code, being 68 O.S. §§ 1301 et seq., including, but not exclusive of the following:
(1) Tangible personal property, except newspapers and periodicals;
(2) Natural or artificial gas, electricity, ice, steam, or any other utility or public service except water, sewage, and refuse and those specifically exempt by this subchapter;
(3) Transportation for hire of persons by common carriers, including railroads, both steam and electric, motor transportation companies, taxicab companies, pullman car companies, airlines, and all other means of transportation for hire;
(4) Service by telephone or telegraph companies to subscribers or users, including transmission of messages, whether local or long distance. This shall include all services and rental charges having any connection with transmission of any message;
(5) Printing or printed matter of all types, kinds, or character and, except for services of printing, copying, or photocopying performed by a privately-owned scientific and educational library sustained by monthly or annual dues paid by members sharing the use of such services with students interested in the study of geology, petroleum engineering, or related subjects, any service of printing or over-printing, including the copying of information by mimeograph or multigraph or by otherwise duplicating written or printed matter in any manner, or the production of microfiche containing information on magnetic tapes furnished by customers;
(6) Service of furnishing rooms by hotel, apartment hotel, public rooming house, motel, public lodging house, or tourist camp;
(7) Service of furnishing storage or parking privileges by auto hotels and parking lots;
(8) Computer hardware or software or coding sheets, cards, or magnetic tapes on which pre-written programs have been coded, punched, or otherwise recorded;
(9) Foods, confections, and all drinks sold or dispensed by hotels, restaurants, or other dispensers and sold for immediate consumption upon the premises or delivered or carried away from the premises for consumption elsewhere;
(10) Advertising of all kinds, types, and characters, including any and all devices used for advertising purposes and the servicing of any advertising devices, except those specifically exempt by this subchapter;
(11) Dues or fees to clubs, including free or complimentary dues or fees which shall have the value equivalent to the charge that would have otherwise been made, including any fees paid for the use of facilities or services rendered at a health spa or club or any similar facility or business;
(12) Tickets for admission to or voluntary contributions made to places of amusement, sports, entertainment, exhibition, display or other recreational events or activities, including free or complimentary admissions which shall have the value equivalent to the charge that would have otherwise been made;
(13) Charges made for the privilege of entering or engaging in any kind of activity, when no admission is charged, spectators, such as tennis, racquetball, or handball, when spectators are charged no admission fee;
(14) Charges made for the privilege of using items for amusement, sports, entertainment, or recreational activity, such as trampolines or golf carts;
(15) The rental of equipment for amusement, sports, entertainment or other recreational activities, such as bowling shoes, skates, golf carts, or other sports or athletic equipment;
(16) The gross receipts from sales through any vending machine without any deduction for rental to locate the vending machine on the premises of a person who is not the owner or any other deductions therefrom;
(17) Gross receipts or gross proceeds from the rental or lease of tangible personal property, including rental or lease of personal property when the rental or lease agreement requires the vendor to launder, clean, repair, or otherwise service the rented or leased property on a regular basis, without any deduction for the cost of the service rendered; provided, if the rental or lease charge is based on the retail value of the property at the time of making the rental or lease agreement and the expected life of the property and the rental or lease charge is separately stated from the service cost in the statement, bill, or invoice delivered to the consumer, the cost of services rendered shall be deducted from the gross receipts or gross proceeds;
(18) Any licensing agreement, rental, lease, or other device or instrument whereby rights to possess or exhibit motion pictures or filmed performances or rights to receive images, pictures, or performances for telecast by any method are transferred; provided, persons regularly engaged in the business of exhibiting motion pictures for which the sale of tickets or admissions is taxed under this subchapter shall not be deemed to be consumers or users in respect to the licensing or exhibiting of copyrighted motion picture features, shorts, cartoons, and scenes from copyrighted features and the sale or licensing of such films shall not be considered a sale within the purview of this subchapter;
(19) Flowers, plants, shrubs, trees, and other floral items, whether or not same was produced by the vendor, sold by persons engaged in florist or nursery business in this state, including all orders taken by a state business for delivery in another state; provided, all orders taken outside this state for delivery within this state shall not be subject to the tax levied by this subchapter;
(20) Tangible personal property sold to persons, peddlers, solicitors, or other salespersons for resale where there is likelihood that this state will lose tax revenue due to the difficulty of enforcing this subchapter because of:
(a) The operation of the business;
(b) The nature of the business;
(c) The turnover of independent contractors;
(d) The lack of place of business in which to display a permit or keep records;
(e) Lack of adequate records;
(f) The persons are minors or transients;
(g) The persons are engaged in service businesses; or
(h) Any other reasonable reason.
(21) Any taxable services and tangible personal property, including materials, supplies, and equipment sold to contractors for the purpose of developing and improving real estate even though such real estate is intended for resale as real property, declared to be sales to consumers or users; however, taxable materials, supplies, and equipment sold to contractors as provided by this division (A)(21) which are purchased as a result of and subsequent to the date of a contract entered into either prior to the effective date of any law increasing the rate of sales tax imposed by this subchapter or entered into prior to the effective date of an ordinance or other measure increasing the sales tax levy of the city shall be subject to the rate of sales tax applicable, as of the date such contract was entered into, to sales of such materials, supplies, and equipment, if such purchases are required in order to complete the contract. The rate shall be applicable to purchases made pursuant to the contractor any change order under the contract until any change order has been completed, accepted, and the contractor has been discharged from any further obligation under the contract or change order or until two years from the date on which the contract was entered into whichever occurs first. The increased sales tax rate shall be applicable to all such purchases at the time of sale; however, the State Tax Commission shall prescribe rules and regulations and shall provide procedures for the refund to a contractor of sales taxes collected on purchases eligible for the lower sales tax rate authorized by this division (A)(21); or
(22) Any taxable services and tangible personal property sold to persons who are primarily engaged in selling their services, such as repairmen, are declared to be sales to consumers or users.
(B) Solicitations or advertisements. All solicitations or advertisements in print or electronic media by group three vendors, for the sale of tangible property to be delivered within this state, shall contain a notice that the sale is subject to state and city sales tax unless the sale is exempt from such tax.
(C) Purpose of revenues. It is hereby declared to be the purpose of this section to provide revenues to create jobs or expand existing jobs in the city by paying costs directly or by paying debt service on obligations issued to finance the costs of assisting in the establishment of business and/or industries, to include the cost of financing facilities to be owned or used by the businesses and/or industries. The excise tax shall be made available and expended for the above purposes for no consideration other than the economic benefit to be provided to the citizens of the city by establishment of the facilities and/or by the creation or retention of the jobs, as will be further specified in agreements to be negotiated. Proceeds of the excise tax shall be administered by the Durant Industrial Authority, provided no proceeds of the excise tax shall be committed or expended without the prior consent and approval by the City Council. None of the excise tax proceeds shall be used to pay administrative costs or salaries of the Durant Industrial Authority or the city. It is the intent of the city to provide assistance and/or incentives to businesses and/or industries that shall pay their employees one and one-half times the federally-mandated minimum wage, and allow the entity a period of five years or less to attain the wage rate for its workforce. Any change of this provision shall require a two-thirds majority vote of the Durant Industrial Authority and offer health insurance benefits to their employees in compliance with 68 O.S. § 3603
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(Prior Code, § 37.032) (Ord. 1408, passed 8-12-2003; Ord. 1665, passed 8-9-2011)