ENGROSSED HOUSE
BILL NO. 2550	By:	Roberts (Dustin) of the House

				and

		Brecheen of the Senate

An Act relating to revenue and taxation; amending 68 O.S. 2011, Section 1634, which relates to retail sale of fireworks; authorizing sales tax exemption for certain eligible student fundraising activities; prescribing procedures for application and issuance of exempt transaction card or document; providing for limited duration of exempt transaction card or document; relieving vendors of requirement to collect sales tax based upon exempt transaction; providing vendor not liable for sales tax based upon good-faith reliance; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     68 O.S. 2011, Section 1634, is amended to read as follows:
Section 1634.  A.  Every Except as otherwise provided by subsection D of this section, every retail sale of fireworks by a wholesaler, distributor, manufacturer or a retailer shall be subject to the levy and collection of sales tax pursuant to the provisions of the Oklahoma State Tax Code.
B.  Every retail fireworks location shall possess a valid current sales tax permit issued by the Oklahoma Tax Commission.  The sales tax permit shall be conspicuously posted in the immediate vicinity of the sales operation and shall be immediately available for examination by the public or any enforcement officer.
C.  Vendors that fail to collect sales tax as required by subsection A of this section shall be subject to the penalties provided in Section 1361 of this title.
D.  A vendor shall not collect sales tax on the retail sale of fireworks if the sale is made to a person who presents a valid exempt transaction card issued by the Oklahoma Tax Commission for purposes of a valid student group fundraising event.  A student group shall make application for the exempt transaction card not later than thirty (30) days prior to the anticipated first date upon which fireworks are anticipated to be purchased.  The application shall be in such form as the Tax Commission may prescribe but shall include a verification from an official with the school the student organization is affiliated with, from a certified instructor at the school, from one or more persons authorized by the school district for such purposes or such other persons having authority as may be required by the Tax Commission.  Upon completion of the application and approval of the application by the Tax Commission, one exempt transaction card or document shall be issued which shall be valid for a period not to exceed one hundred twenty (120) days from the date of issuance.  Upon presentation of the exempt transaction card to a fireworks vendor, the vendor shall not be required to collect sales tax on the fireworks purchased for the fundraising activity.  A vendor who relies in good faith on the exempt transaction card shall not be liable for sales tax if the transaction is subsequently determined not to be eligible for the exemption authorized by this subsection.
SECTION 2.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.
Passed the House of Representatives the 11th day of March, 2014.

	
	Presiding Officer of the House
	of Representatives

Passed the Senate the ___ day of __________, 2014.

	
	Presiding Officer of the Senate