New Museum Law Started Nov 1 - Museums with budgets under $1 million should submit application for exemption


Posted by OMA on 11/01/2021

New Museum Law Started Nov 1 - 501c3 Museums with budgets under $1 million should submit application for exemption

November 1, Oklahoma's new law that allows Oklahoma museums with budgets less than $1 million to be exempt from paying sales tax on sales of tangible personal property or services to a museum took effect.

A museum meeting the criteria must complete the following steps to make application for this exemption from the Oklahoma Tax Commission:

1) Download the Oklahoma Sales Tax Exemption Packet here. Do not check any boxes as the box of this museum exemption is not currently on the form. The OTC will be updating the form at a later date, and they confirmed to use the current packet for now.

2) Complete the entire form and submit it along with the following documentation:

  • 501c3 letter of determination from the Internal Revenue Service
  • Articles of Incorporation
  • Bylaws
  • Previous year's audit or 990 tax return showing your budget is under $1 million

Once the Oklahoma Tax Commission receives your completed application and documentation, they will be in contact with you regarding your application.

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SUBJECT: Sales tax exemption BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 68 O.S. 2011, Section 1356, as last amended by Section 1, Chapter 413, O.S.L. 2019 (68 O.S. Supp. 2020, Section 1356), is amended to read as follows: Section 1356. Exemptions - Governmental and nonprofit entities. There are hereby specifically exempted from the tax levied by Section 1350 et seq. of this title: 

 

81. Effective November 1, 2021, through December 31, 2024, sales of tangible personal property or services to a museum that: a. operates as a part of an organization which is exempt from taxation pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), b. is not accredited by the American Alliance of Museums, and c. operates on an annual budget of less than One Million Dollars ($1,000,000.00). SECTION 2. This act shall become effective November 1, 2021.