RESOLUTION NO. THREE: ISOLATED OR OCCASSIONAL SALE EXEMPTION FROM STATE SALES TAX

BE IT RESOLVED by the House of Delegates of the Oklahoma Bar Association that the Association endorse in principle, as published in the Oklahoma Bar Journal and posted to the Web site www.okbar.org, proposed legislation creating new law to be codified as 68 O.S. § 1360.1 relating to exemption of isolated or occasional sales of property or services, substances or things. (Submitted by the OBA Tax Law Section. Adoption recommended by the OBA Board of Governors.)

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law, to be codified in the Oklahoma Statutes as Section 1360.1 of Title 68, unless there is created a duplication in numbering, reads as follows:

Section 1360.1. A. All isolated or occasional sales of tangible personal property or services, substances or things are exempted from any tax imposed by the Oklahoma Sales Tax Code.

B. In this section and Article, “isolated or occasional sale” means the nonrecurring sale of tangible personal property, or services taxable under the Oklahoma Sales Tax Code by a person not engaged at the time of such sale in the business of selling such property or services, and shall include the sale of all or substantially all of the operating assets of a business or of a separate division, branch, or identifiable segment of a business.

C. Within the meaning of subsection B. of this section, a separate division, branch, or identifiable segment of a business exists if before its sale the income and expenses attributable to the separate division, branch, or segment could be separately ascertained from the books of account or record.

SECTION 2. This act shall become effective ___________.

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