Okla. Admin. Code § 710:65-13-85

Current through Vol. 42, No. 4, November 1, 2024

Section 710:65-13-85 - Exemption for refitting, refurbishing, or repairing of consumer electronic goods

(a)Definitions. The following words and terms, when used in this Section shall have the following meaning, unless the context clearly indicates otherwise:

(1)"Qualified devices" means certain electronic consumer goods including but not limited to cell phones, compact disc players, personal computers, MP3 players, digital devices for the storage and retrieval of information through hard-wired or wireless computer or Internet connections.

(2)"Qualified purchaser" means an entity primarily engaged in the repair of consumer electronic goods which purchases from the original manufacturers qualified devices for refitting, refurbishing or repairing and subsequently sells these devices to either retail customers or to businesses primarily engaged in the sale of the enumerated qualified devices.

(3)"Qualified purchases" means only tangible personal property and services directly related to the activity of refitting, refurbishing, and repairing consumer electronic goods purchased from the original manufacturer of the qualified items for subsequent sale or resale. Qualified purchasers may not make exempt purchases for their regular consumer repair business, for other facets of their business or for the refitting, repairing, or refurbishing of consumer electronic goods purchased or acquired from sources other than the original manufacturer of the qualified devices.

(b)General provisions. Effective July 1, 2007, Section 1357(40) of Title 68 provides for a sales tax exemption for sales of tangible personal property or services to a business primarily engaged in the repair of consumer electronic goods if the devices are sold to the business by the original manufacturer of such devices and the devices are repaired, refitted, or refurbished for sale by the entity qualifying for the exemption directly to retail customers or if the devices are sold to another business entity for sale to retail customers.

(c)Application. Application for exemption may be made by filing a signed, sworn statement with the Business Tax Services Division of the Oklahoma Tax Commission, which includes:

(1) The name, address, and federal employer identification number of the applicant and the name and title of the person signing for the applicant;

(2) A complete description of the repair, refitting or refurbishing activities that will take place at the business location;

(3) A statement that applicant is primarily engaged in the repair of consumer electronic goods;

(4) Identification of the original manufacturers of the electronic consumer goods from which the applicant purchases qualified devices;

(5) A statement that applicant, once the consumer electronic goods are refitted, repaired or refurbished, will hold these devices for sale either directly to retail customers or to businesses regularly engaged in selling the qualified devices;

(6) The signature of a person authorized to bind the applicant, signed under penalty of perjury before a notary; and

(7) Copies of written documentation substantiating the purchase of the consumer electronic goods from the original manufacturers of those items along with such additional information as the Business Tax Services Division may require to confirm eligibility.

(d)Review and determination. Upon receipt of the application, the Business Tax Services Division will review and make a determination as to the applicant's eligibility. Upon approval, certification in the form of a letter or card, of the exemption allowed will be forwarded to the applicant.

(e)Issuance, scope, limitations of exemption certification. The certification issued by the Business Tax Services Division will be effective for a period of twelve (12) months, and may be renewed, subject to annual review and recertification of the applicant's eligibility by the Business Tax Services Division.

(f)Denial of certification; cancellation, suspension, revocation of certification. Certification may be denied, cancelled, suspended, or revoked by the Commission for non-compliance with the provisions of this Section, with applicable Oklahoma tax statutes, or for other good cause shown. Proceedings related to the cancellation or refusal to issue a certification pursuant to this Section shall be governed by 710:1-5-100 and 710:1-5-21 through 710:1-5-49 of the permanent rules of the Commission.

Okla. Admin. Code § 710:65-13-85

Added at 25 Ok Reg 2070, eff 7-1-08

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015

Amended by Oklahoma Register, Volume 38, Issue 23, August 16, 2021, eff. 9/1/2021