STATE OF OKLAHOMA

2nd Session of the 53rd Legislature (2012)

HOUSE BILL 2721	By:	Inman

AS INTRODUCED

An Act relating to revenue and taxation; amending 68 O.S. 2011, Section 1357.10, which relates to sales tax holidays; expanding to include school supplies; reducing value of eligible items; prohibiting exemption for certain items; defining term; providing and effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     68 O.S. 2011, Section 1357.10, is amended to read as follows:
Section 1357.10  A.  The sale of school supplies or an article of clothing or footwear designed to be worn on or about the human body shall be exempt from the tax imposed by Section 1354 of Title 68 of the Oklahoma Statutes this title if:
1.  The sales price of the article is less than One Hundred Dollars ($100.00) Seventy-five Dollars ($75.00); and
2.  The sale takes place during a period beginning at 12:01 a.m. on the first Friday in August and ending at 12 midnight on the following Sunday, covering a period of three (3) days.
B.  Subsection A of this section shall not apply to:
1.  Any special clothing or footwear that is primarily designed for athletic activity or protective use and that is not normally worn except when used for athletic activity or protective use for which it is designed;
2.  Accessories, including jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing; and
3.  Items, including aprons, baby receiving blankets, bathing suits, bathing caps, beach capes, beach coats, costumes, garters, garter belts, girdles, lab coats, slippers and wedding apparel; and
4.  The rental of clothing or footwear.
C.  For the purposes of this section, the term “school supplies” means #2 pencils, pencil cases, loose-leaf paper, pocket folders, crayons, pencil crayons, erasers, glue, glue sticks and scissors.
D.  The Oklahoma Tax Commission shall promulgate any necessary rules to implement the provisions of this section.
SECTION 2.  This act shall become effective July 1, 2012.
SECTION 3.  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.

53-2-8554	CJB	12/28/11