Current through Vol. 42, No. 1, September 16, 2024
(a)
Qualification for the exemption for
health centers, indigent health care clinics, certain community-based health
care centers and community mental health centers. Sales tax does not
apply to the sale of tangible personal property or taxable services when sold
to:
(1) Any health center as defined in
Section 254b(a) of Title 42 of the United States Code;
(2) Any clinic receiving disbursements of
state monies from the Indigent Health Care Revolving Fund pursuant to the
provisions of Section
66
of Title 56 of the Oklahoma Statues;
(3) Any community-based health center which
provides primary care services at no cost to the recipients, and
is exempt from taxation pursuant to the provisions of Section 501(c)(3) of the
Internal Revenue Code,
26 U.S.C.,
Section 501(c)(3). For
purposes of this Section, "primary care services" means health
services related to family medicine, internal medicine, pediatrics, obstetrics,
or gynecology that are furnished by physicians, and where appropriate,
physician assistants, nurse practitioners, or other licensed medical
professionals; or
(4) Any community
mental health center as defined in Section 3-302 of Title 43A of the Oklahoma
Statutes. For purposes of this Section, "
community mental health
center " means
a facility offering:
(A)
A comprehensive array of
community-based mental health services, including, but not limited to,
outpatient treatment, emergency evaluation and care, consultation, education,
rehabilitation services, and aftercare, and
(B)
Certain services at the option of
the center, including, but not limited to, inpatient treatment, training
programs, and research and evaluation programs.
(b)
Application
process. Application for exemption is made by submitting to the Business
Tax Services Division, Oklahoma Tax Commission, Oklahoma City, OK 73194, a
completed Form 13-16-A, contained in Packet E, available online at
www.tax.ok.gov along with the applicable documentation set forth in (c) of this
Section:
(c)
Supporting
documentation required.
(1)
Health centers. Health centers must submit the letter of
notification from the U.S. Department of Health and Human Services, recognizing
that the center qualifies under Section 254b(a) of Title 42 of the United
States Code.
(2)
Clinics
receiving disbursements of state monies from the Oklahoma Indigent Health Care
Revolving Fund. Clinics receiving disbursements of state monies from the
Oklahoma Indigent Health Care Revolving Fund must submit a copy of the letter
or disbursement voucher from the Fund, showing the date the funds were
disbursed.
(3)
Community-based health centers. Community-based health centers
must submit the documentation described in (A) through (C) of this paragraph:
(A) A letter from the Internal Revenue
Service (IRS) recognizing the organization as exempt from federal income
taxation pursuant to
26 U.S.C.
§
501(c)(3);
(B) A written description of the primary care
services provided must be submitted, stating the activities of the
organization, and evidenced by copies of the following, as applicable:
(i) By-laws;
(ii) An audit or other financial statement,
showing the types and amounts of revenue received; and
(iii) Intake documents or other forms used to
obtain information from clients and which specifically reflect that the primary
care services were being provided at no cost to the recipients.
(C) For the purposes of this
paragraph, "at no cost to the recipient" means at no cost to
either the recipient or any unit of government, or any insurance company, or
any other person or entity. Centers which provide primary care services on a
"sliding scale" fee schedule do not qualify for the
exemption.
(4)
Community mental health centers. Community mental health centers
must submit to the Commission, as part of its application, proof of recognition
by the Oklahoma Department of Mental Health and Substance Abuse Services that
applicant qualifies as a Community Mental Health Center, along with a written
description of the comprehensive array of community-based mental health and
other optional services the facility offers, as may be evidenced by copies of:
(A) Articles of incorporation;
(B) By-laws;
(C) Brochure; or
(D) Notarized letter from the President or
Chairman of the organization.
(d)
Exemption limited to eligible,
properly documented transactions. Only sales of tangible personal
property and services purchased by the organization, invoiced to the
organization, and paid for by funds or check directly from the organization
will qualify for the exemption described in this Section.
(e)
Purchases by contractors.
Purchases of taxable personal property or services by a contractor, as defined
by 68 O.S. §1352, are taxable to the contractor. A contractor may not
purchase tangible personal property or services to perform contracts with
qualifying health care organizations exempt from sales tax.
Added at 14 Ok Reg
2711, eff 6-26-97; Amended at 17 Ok Reg 2677, eff 6-25-00; Amended at 24 Ok Reg
2397, eff 6-25-07; Amended at 25 Ok Reg 2070, eff 7-1-08; Amended at 27 Ok Reg
2308, eff 7-11-10; Amended at 28 Ok Reg 961, eff
6-1-11
