Current through Vol. 42, No. 1, September 16, 2024
(a)
Qualification for exemption of
sales to a "qualified purchaser".Exempted from sales tax are
sales of tangible personal property to a public trust having either a
single city, town or county or multiple cities, towns or counties or
combination thereof as beneficiary or beneficiaries or a nonprofit organization
which is exempt from taxation pursuant to the provisions of the Internal
Revenue Code,
26 U.S.C.,
Section 501(c)(3) for the
purpose of constructing improvements to or expanding a hospital or nursing home
owned and operated by any such public trust or nonprofit entity prior to the
effective date of this act in counties with a population of less than one
hundred thousand (100,000) persons, according to the most recent Federal
Decennial Census.
(1) As used in this
section, "constructing improvements to or expanding" shall not mean any
expense for routine maintenance or general repairs and shall require a project
cost of at least One Hundred Thousand Dollars ($100,000.00).
(2) "Qualified purchaser" shall mean
a public trust having either a single city, town or county or multiple
cities, towns or counties or combination thereof as beneficiary or
beneficiaries or a nonprofit organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code,
26 U.S.C.,
Section
501(c)(3).In
addition, sales made to a contractor or subcontractor that enters into
a contractual relationship with a public trust or nonprofit entity as described
by this paragraph shall be considered sales made to the public trust or
nonprofit entity.
(b)
Administration. Pursuant to
statute, the exemption for sales to a "qualified purchaser" as outlined in this
Section will be administered as a refund for sales or use taxes paid by the
"qualified purchaser" to the vendor or, in the case of use tax not required to
be charged by the vendor, self-remitted by the "qualified purchaser" or by a
contractor or subcontractor to the "qualified purchaser."
(c)
Application process.
(1)
Application. All "qualified
purchasers" shall file an Application/Intent to Qualify with the Commission.
The Application/Intent to Qualify shall be on forms provided by the Commission
and shall include, as attachments, specification of the new or expanded
hospital or nursing home facilities and other information requested by the
Commission.
(2)
Review. Upon receipt of the Application, the Application will be
reviewed by the Commission for completeness and compliance with the exemption.
The applicant will be notified of any action taken regarding the Application by
the Commission.
(d)
Claims process.
(1)
Records
required for claim.(A) For each
purchase made, the "qualified purchaser", shall file the following
documentation with the Commission on forms provided for that purpose by the
Commission:
(i) Invoice indicating the amount
of sales taxes billed to the "qualified purchaser" and;
(ii) Affidavit of the vendor of the tangible
personal property reflected on the invoice that sales tax reflected on that
invoice has not been audited, rebated, or refunded to the "qualified purchaser"
but rather the sales tax charge has been collected by the vendor and remitted
to the Commission. Any number of invoices from the same vendor may be attached
to one affidavit so long as the affidavit covers all invoices
attached;
(iii) All additional
documentation required to be submitted by the Commission.
(B) In cases where the sales tax was paid by
a contractor or sub-contractor who has previously entered into a contract with
a "qualified purchaser", the "qualified purchaser" shall file with the
Commission the following:
(i) Invoices
indicating the amount of sales taxes billed;
(ii) An affidavit from the contractor or
sub-contractor who made the purchase of tangible personal property reflected on
the invoice stating that the sales tax reflected on the attached invoice and
claimed by the "qualified purchaser" is based on sales tax paid by the
contractor or sub-contractor on tangible personal property purchased
for the purpose of constructing improvements to or expanding a hospital
or nursing home owned and operated by a"qualified purchaser" and that
the amount of sales tax claimed was paid by the contractor or sub-contractor to
the vendor and no credit, refund or rebate has been claimed by the contractor
or sub-contractor. Any number of invoices can be attached to an affidavit of a
contractor or sub-contractor provided that all invoices attached reflect
purchases made by that contractor or sub-contractor and are reflected in the
affidavit;
(iii) Additional
documentation required by the Commission.
(2)
Filing claims. The refund
request and required documentation must be filed and in the possession of the
Commission on or before the 30th day after the end
of the fiscal year in which the purchases were made.
(3)
Review. The Commission will
review the documentation submitted and determine whether the refund claimed
will be allowed. In the event that the claim is denied, the "qualified
purchaser" who submitted the documentation will be notified by the Commission
as to the reason for denial. The "qualified purchaser" who submitted the
documentation will similarly be notified that a claim has been
approved.
(e)
Fiscal procedure.After the 30th day
after the end of each fiscal year, the Tax Commission shall determine
whether or not the total amount of sales tax exemptions claimed by all
purchasers is equal to or less than Six Hundred Fifty Thousand Dollars
($650,000.00). If such claims are less than or equal to that amount, the Tax
Commission shall make refunds to the purchasers in the full amount of the
documented and verified sales tax amounts. If such claims by all purchasers are
in excess of Six Hundred Fifty Thousand Dollars ($650,000.00), the Tax
Commission shall determine the amount of each purchaser's claim, the total
amount of all claims by all purchasers, and the percentage each purchaser's
claim amount bears to the total. The resulting percentage determined for each
purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars
($650,000.00) to determine the amount of refundable sales tax to be paid to
each purchaser.
Added at 23 Ok Reg
2847, eff 6-25-06
