There are specifically exempted from the tax levied by this subchapter:
(A) Goods, wares, merchandise, and property purchased for the purpose of being used or consumed in the process of manufacturing, compounding, processing, assembling, or preparing for sale a finished article and such goods, wares, merchandise, or property become integral parts of the manufactured, compounded, processed, assembled, or prepared products or are consumed in the process of manufacturing, compounding, processing, assembling, or preparing products for resale. The term MANUFACTURING PLANTS shall mean those establishments primarily engaged in manufacturing or processing operations and generally recognized as such;
(B) Ethyl alcohol when sold and used for the purpose of blending same with motor fuel on which motor fuel tax is levied by state law;
(C) Sale of machinery and equipment purchased and used by persons establishing new manufacturing plants in the state and machinery and equipment purchased and used by persons in the operation of manufacturing plants already established in the state. This exemption shall not apply unless such machinery and equipment is incorporated into, and is directly used in, the process of manufacturing property subject to taxation under this subchapter. The term manufacturing plants shall mean those establishments primarily engaged in manufacturing or processing operations and generally recognized as such;
(D) Sales of containers when sold to a person regularly engaged in the business of reselling empty or filled containers or when purchased for the purpose of packaging raw products of farm, garden, or orchard for resale to the consumer or processor. This exemption shall not apply to the sale of any containers used more than once and which are ordinarily known as returnable containers, except returnable soft drink bottles. Each and every transfer of title or possession of such returnable containers in this state to any person who is not regularly engaged in the business of selling, reselling, or otherwise transferring empty or filled containers shall be taxable under this code. This exemption shall not apply to the sale of labels or other materials delivered along with items sold but which are not necessary or absolutely essential to the sale of the sold merchandise;
(E) Sales of or transfers of title to or possession of any containers used or to be used more than once and which are ordinarily known as returnable containers and which do or will contain water for human consumption and the cartons, crates, pallets, and containers used to transport such returnable containers;
(F) Sale of tangible personal property manufactured in the state when sold by the manufacturer to a person who transports it to another state for immediate and exclusive use in some other state;
(G) Machinery, equipment, fuels, and chemicals incorporated into and directly used or consumed in the process of treatment to substantially reduce the volume or harmful properties of controlled industrial waste at treatment facilities specifically permitted pursuant to the Controlled Industrial Waste Disposal Act, 63 O.S. § 1-2201, or any successor statutes, including but not limited to the Sanitarian and Environmental Specialist Registration Act, 59 O.S. §§ 1150.1 et seq. or the Hazardous Waste Management Act, 27A O.S. §§ 2-7-101 et seq., and operated at the place of waste generation or facilities approved by the State Department of Health for the cleanup of a site of contamination. The term controlled industrial waste may include low-level radioactive waste for the purpose of this division (G);
(H) Sales of tangible personal property to a qualified manufacturer to be consumed or incorporated in a new manufacturing facility or to expand an existing manufacturing facility. For purposes of this division (H), sales made to a contractor or subcontractor that has previously entered into a contractual relationship with a qualified manufacturer for construction or expansion of a manufacturing facility shall be considered sales made to a qualified manufacturer. For the purpose of this division (H), QUALIFIED MANUFACTURER and MANUFACTURING FACILITY shall have the meaning established by 68 O.S. § 1359
;
(I) Sales of tangible personal property purchased and used by a licensed radio or television station in broadcasting. This exemption shall not apply unless such machinery and equipment is used directly in the manufacturing process, is necessary for the proper production of a broadcast signal or is such that the failure of the machinery or equipment to operate would cause broadcasting to cease. This exemption begins with the equipment used in producing live programming or the electronic equipment directly behind the satellite receiving dish or antenna and ends with the transmission of the broadcast signal from the broadcast antenna system. For the purposes of this division (I), PROPER PRODUCTION shall include, but not be limited to, machinery or equipment required by Federal Communications Commission rules and regulations; and
(J) Sales of tangible personal property purchased or used by a licensed cable television operator in cablecasting. This exemption shall not apply unless such machinery and equipment is used directly in the manufacturing process, is necessary for the proper production of a cablecast signal or is such that the failure of the machinery or equipment to operate would cause cablecasting to cease. This exemption begins with the equipment used in producing local programming or the electronic equipment behind the satellite receiving dish, microwave tower, or antenna and ends with the transmission of the signal from the cablecast head-end system. For purposes of this division, PROPER PRODUCTION shall include but not be limited to machinery or equipment required by Federal Communications Commission rules and regulations.
(Prior Code, § 37.037)