There are specifically exempted from the tax levied by this subchapter:
(A) Transportation of school pupils to and from elementary schools or high schools in motor or other vehicles;
(B) Transportation of persons where the fare of each person does not exceed $1 or local transportation of persons within the corporate limits of a city except by taxicab;
(C) Sales for resale to persons engaged in the business of reselling the articles purchased, whether within or without the state, provided that such sales to residents of this state are made to persons to whom sales tax permits have been issued as provided in this subchapter. This exemption shall not apply to the sales of articles made to persons holding permits when such persons purchase items for their use and which they are not regularly engaged in the business of reselling; neither shall this exemption apply to sales of tangible personal property to peddlers, solicitors, and other salespersons who do not have an established place of business and a sales tax permit. The exemption provided by this division shall apply to sales of motor fuel or diesel fuel to a group five vendor, but the use of such motor fuel or diesel fuel by the group five vendor shall not be exempt from the tax levied herein. The purchase of motor fuel or diesel fuel is exempt from sales tax when the motor fuel is for shipment outside this state and consumed by a common carrier by rail in the conduct of its business. The sales tax shall apply to the purchase of motor fuel or diesel fuel in the state by a common carrier by rail when such motor fuel is purchased for fueling, within this state, of any locomotive or other motorized flanged wheel equipment;
(D) Sales of advertising space in newspapers and periodicals and billboard advertising service and any advertising through the electronic media, including radio, television, and cable television;
(E) Eggs, feed, supplies, machinery, and equipment purchased by persons regularly engaged in the business of raising worms, fish, any insect or any other form of terrestrial or aquatic animal life, and used for the purpose of raising same for marketing. This exemption shall only be granted and extended to the purchaser when the items are to be used and in fact are used in the raising of animal life as set out above. Each purchaser shall certify, in writing, on the invoice or sales ticket retained by the vendor that he or she is regularly engaged in the business of raising such animal life and that the items purchased will be used only in such business. The vendor shall certify to the Oklahoma Tax Commission that the price of the items has been reduced to grant the full benefit of the exemption. Violation hereof by the purchaser or vendor shall be a misdemeanor;
(F) Sales of medicine or drugs prescribed for the treatment of human beings by a person licensed to prescribe the medicine or drugs. This exemption shall not apply to proprietary or patent medicines as defined by 59 O.S. § 353.1;
(G) Transfers of title or possession of empty, partially filled, or filled returnable oil and chemical drums to any person who is not regularly engaged in the business of selling, reselling, or otherwise transferring empty, partially filled, or filled returnable oil drums;
(H) Sales of one-way utensils, paper napkins, paper cups, disposable hot containers, and other one-way carry-out materials to a vendor of meals or beverages;
(I) Sales of food or food products for home consumption which are purchased in whole or in part with coupons issued pursuant to the federal food stamp programs as authorized by 7 U.S.C. §§ 2011 through 2029 as to that portion purchased with such coupons. The exemption provided for such sales shall be inapplicable to such sales upon the effective date of any federal law that removes the requirement of the exemption as a condition for participation by the state in the federal food stamp program;
(J) Sales of computers, data processing equipment, related peripherals and telephone, telegraph or telecommunications service, and equipment to a new or expanding business. In order to qualify for the exemption provided for by this division (J), the sale of the items shall equal or exceed to the sum of $2,000,000. For purposes of this division, qualified purchase means any new or expanding business which adds at least 100 new full-time equivalent employees as certified by the Employment Security Commission. Only sales of computers, data processing equipment, related peripherals, and telephone, telegraph, or telecommunication service and equipment made before July 1, 1992 shall be eligible for the exemption provided by this division (J); and
(K) Nothing in this subchapter shall be construed as limiting or prohibiting the city from levying and collecting taxes on the sale of natural or artificial gas and electricity. Any sales tax levied by the city on natural or artificial gas and electricity shall be in effect regardless of ordinance or contractual provisions referring to previously imposed state sales tax on such items.
(Prior Code, § 37.035)