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1--7#"(8#$ )'D%%!2")'"%#%%#(/#6!)'!')'%*)''%!(#,
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12!'!(#"#'6"(8!(#";
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%#$ 4#"'% #*#"/'("%#%!24!*;-
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;04!) *!+"10./.0.?#6.10;
;-4!) *!+"10./.0.?#6.10;
;4!) *!+"10./.0.?#6.10;
;;4!) *!+"10./.0.?#6.10;
;/(#"%#46%#"%!'6'#)!(#";
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;,"%'/(#"# )'6'8/'8!="'#)!(#";
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24(#"$#%!2;
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-3#('%*#$)!+;;
&#%(%);;
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3#'!(#"!)"
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- 6("'8#$/%!'"!)"H8## $!'%&
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; '""')6' /
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01""#/'!(#4#+ %#5)"'%"-
03!/))!(##$)'/"$#6'#)!(#"-
07!(!)/#"(%(#!)'%*-
0'#)!(#":/(#"!!8"-
00$#/%#$!/%
0-'/""D' ;
08'")!(65 '8"%%#$8'")!%3'8!=! %#!//#4# /%"%!2/#4!/%"
 '%";
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05'(#",
0,4!) *!+"11,./00..?@!.11,
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01-4!) *!+",,0./;..?4%.,,0-
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01 ''"%!(#! $#/%#$(/)
04#!*.%!"'%#'(!%"'""
0"%!4 /&! '"%*## !2;
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2!'!(##$/# "#%&)*4#%";
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0-'/"#$4/&!""#$"%!4 4# /%",
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0!"4#%!(##4#""""'##$"%!4 %#!//#4# /%"7!)(")!+$)!>2'8
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0-5'(#"-
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-118)!(#"$#24%"#$9#"
-117#/ "$#%!224%"!)"#$#%#$)%#8#6%!)!8/'";
-1107$/(##$/%!'24(#"*$ /)!',
-11-7$/(824(#"$#"44)'".%!9+!8#'4#%"! '4#%"#$ *  '")
$);1
-117#/ "$#/)!''8$ 6"(8!(#"3 '%')'#$$ ;1
-11;%"%#$ ;1
-117!*%#$%!2*)'/" #//!"'#!)'4#%"! )'/" #  '4#%";
-11,)/(#8! '8$)#6!)"$##%#$"%!%%'!)";
-1117/#))/(#! '=!/#$%!2*"44)'";
-11@#'%! "6!))'!')'%*#$%'!)#4!%#"'=!/#$%!2*%'!)
#4!%#";
-11)/(#*)'8')4/&!""%# $#%#$)%!2'=!/";
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3#'""'#;0
-11044)'"E(%)%%#/ '%$#/#))/()%!2";0
-11-'=!/#$#%#$)%!2"*)'/" %!9+!8##4!%#'4#%";-
-11'=!/*)/%#'/$ "%!"$D' ;-
-11;%!'!8#$1N#$%!2$#! ''"%!(6/#"%";-
-113#))/(##$%!2'!')'%*+&#)"!).%!'). ".4# /#)(!%/#"
#6 #;
-11,'6"'#"#$#%#$)7!*%#$%!2;
-111$ 4!*%*6 #"+'%&#%)'8')4/&!";
-11<) '8%!2 !%'!)"+'%&%!2 $)"'=!/#$%!2;
-114#%!(##$#%#$)'%!9+!8#""(!(#+'%&'-')"#$# 
'=!/#$%!2;,
-11'/"";,
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-110'/"!44)'/!(#4#/""
-11-<# )%!(64##$#$5!/'!)"4#"'')'%*O!)'5/!(#"#$# A'!/'!)
"%!%%"! 'D'*+# D' )!"#$2'"(8# 
-11""!/#$)'/""!(##%!"$!')'%*'"4)!* #(/#$
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"%!%%'!)#4!%#"
-1101A'!)4#%! 4!*%#$%!24#%'!(##$"'""#/!/))!(##$)'/"
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-11024#%4#%",1
-110'/" %!"4#%4#%",1
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-14!) *!+",,./0-.;.?/%.,,1,
-14!) *!+",,./0-.;.?/%.,,1,
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-1-4!) *!+",,./0-.;.?/%.,,1,
-14!) *!+",,./0-.;.?/%.,,1,
-1;4!) *!+",,./0-.;.?/%.,,1,
-104!) *!+",,./0-.;.?/%.,,1,
-104!) *!+",,./0-.;.?/%.,,1
-1-4!) *!+",,./0-.;.?/%.,,1
-14!) *!+",,./0-.;.?/%.,,1
-1;4!) *!+",,./0-.;.?/%.,,1
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-1,4!) *!+",,./0-.;.?/%.,,1
-1,4!) *!+",,./0.,1
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-14!) *!+",,./0-.;.?/%.,,
-14!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-04!) *!+",,./0-.;.?/%.,,
--4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-;4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-,4!) *!+",,./0-.;.?/%.,,
-14!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-04!) *!+",,./0-.;.?/%.,,
--4!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
-;4!) *!+",,./0-.;.?/%.,,
-14!) *!+",,./0-.;.?/%.,,
-4!) *!+",,./0-.;.?/%.,,
15'(#"
174#"#$(/)44#(#%! "#$6"0
1!4!) *!+",,;./0.;.?@)*.,,;0
14!) *!+",,;./0.;.?@)*.,,;-
16*#$%!2%(##$4#(#$#4#4'""'#-
14!) *!+",,;./0.;.?@)*.,,;-
104!) *!+",,;./0.;.?@)*.,,;
104!) *!+",,;./0.;.?@)*.,,;
104!) *!+",,;./0.;.?@)*.,,;
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1-24(#"
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0
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;15'(#"-
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;14#"'(##$%!2;
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;174#".!44#(#%!  '"%'(##$%!2,
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;1; '(#!)2/'"%!2#"4/'!)$)6*24(#"'"4#"'(##$6"1
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44#(#%#$6"
;124(#"$#%!2
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;8'"%!(##$6&'/)""#$)'D5 8!"$#/!8#%!9;
;/# "#$ !)"! "";
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;6#'/"/# #$ )'6'",
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;4!) *!+"11. 2%!# '!*""'#./0..?@!.110
4!) *!+"11. 2%!# '!*""'#./0..?@!.110
,4!) *!+"11. 2%!# '!*""'#./0..?@!.110;
14!) *!+"11. 2%!# '!*""'#./0..?@!.110;
4!) *!+"11. 2%!# '!*""'#./0..?@!.110;
4!) *!+"11. 2%!# '!*""'#./0..?@!.110;
4!) *!+"11. 2%!# '!*""'#./0..?@!.110;
04!) *!+"11. 2%!# '!*""'#./0..?@!.110;
-4!) *!+"11. 2%!# '!*""'#./0..?@!.110;
4!) *!+"110./--..?#6.1100;
;4!) *!+"110./--.;.?#6.1100;
11G#""4# /(#%!2#!"4&!)%.#".#')! 8!".! #*!)%*'%"%"24(#" 0;
117#4%*24%$#! 6!)#%!2!(#)"! 8)!(#"$# %'!(#
-1
115'(#"-
114!) *!+",,,."%2""./..?@!.111-
11!/##'/!))*!%'"9#')#8!")!"!224(#"-
110!%!)! /!"'8&! 8!"!9(8  /(#C3#"%")"-
11A!')%#!94#%#$8#""4# /(#-0
11!2##')/#6 #$#9#+"#/"--
110%&$#))#+'86"'#"P--
110!4!) *!+",,,."%2""./.;.8?A-.,,,--
110644#(#%! "#$4#/ "#$%!2--
110644#(#%! "#$4#/ "#$%!2;1
11-4#%"*/!'"#$#')! 8!"%!"4#% 5"7"#"4/&!"'8#"%#'8#')
)'D/* !%"C7!)("0
117!*%+&#+"&'4'"' '"4%""'8%!""/'%*-
11;7/&!"%#+'%&&#) %!27!*%*4/&!"-
11$ #$#64!*%". 4)'/!%4!*%"! ##"4!*%"=!)
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#/#4)'!%%!24!*)'D/*<"'""/)#"-0,
,3#))/(##$)'D%!2"7#)'(/!) '6'"'#"A!')'8%#7!*--
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!)6*--
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01-'+& %"7!*%-,1
013#))/(##$%!2*%!')#6 #-,
01#(5/!(##$'4#" "%!2##%#$"%!%"!)"-,
017"#!)4#4%*"!)"$##%"' %&"%!%C#%!)"!)""%!%%-,
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-,
01;03#"3#4)'!/'(!(6-,
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;
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?@)*.,,;
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-;4!) *!+",,./;-.-.?@)*.,,;-
-;04!) *!+"1./..?@!.10;-
-;-3 '%$#'6"%%"'!8'/)%!)4#/""'8/##4!(6".6%"! !9(8
!""#/'!(#";-
-;-3 '%$#/!(#!)!/(6'("8#4"%&!%!9)!&#!4# /#+ 
!8'/)%!)4#/""'8!9(8!""#/'!(#";,
-;4!) *!+"1./.;.?@!.10;,
-;;!2/ '%"3&') /!"6'/"5'(#";,
-;!2/ '%$#'6"%%'/%!'%4'"";1
-;,4!) *!+"1./..?@!.10;;
-;,3 '%$#&##+"+&#)#"%4'!*"' /%#!%!) '"!"%"'1! 
1;;
-;14!) *!+"1./.,.?@!.10;
-;5'(#"!2/ '%;
-;4!) *!+"1./.1.?@!.10;1
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-;<3 '%$#!$!/%"#$"!))+' %'";1
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-;4!) *!+"1./..?@!.10;
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-;014!) *!+"1./..?@!.10;
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-;0%!%! '/#%!2/ '%;0
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-;-4!) *!+",,./;-.-.?@)*.,,;0;
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-4/'5 %!2%44!"C)/%#'/5)'8,1
-5'(#",1
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4!*#6,
-064!*%",0
--3 '%!"%!2"4!' ,0
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,-
-;/)!!(##$"(!% %!2,-
-4!) *!+"111./0..?@)*.111,
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-1$ "A')'8#$%!"/#"(%(8/)!',;
-2%"'#"#$($#5)'8 /)!!(#"! 4!*%#$%!2,;
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?@!.,,,0
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?@!.,,,0-
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?@!.,,,0-
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?@!.,,,0-
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
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?@!.,,,0-
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?@!.,,,0-
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
0;4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
0;4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
0;4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
0,4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
014!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0-
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0
004!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0
0-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
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?@!.,,,0
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?@!.,,,0
00,4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0
0-14!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0-04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0--4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0-;4!) *!+",,./.,0;
0-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
0-,4!) *!+",./.-.?@!!*.,,4!) *!+",,./
.4!) *!+",,./0,.0.?@!.,,,0;
014!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0;
04!) *!+",./.;.?@!!*.,,! *!+",,./0,..
?@!.,,,0;
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0
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?@!.,,,0
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?@!.,,,0
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?@!.,,,0
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?@!.,,,0
0;4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0
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?@!.,,,0
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?@!.,,,0
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?@!.,,,0
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?@!.,,,0
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?@!.,,,0,
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?@!.,,,0,
0;,4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0,
014!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0,
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0,
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0,
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0,
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,0,
007!*%#$6!)!(#/#"%"44#(#%#$/#"%"44#4'!(##$!#%
%!%%%#:'" '/(#"/'6'86<'))'8"%!%%,0,
0-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,-1
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,-1
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?@!.,,,-1
0,4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,-1
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0.?@!.,,,-
04!) *!+",./.-.?@!!*.,,! *!+",,./0,.
0.?@!.,,,-
04!) *!+",./.;.?@!!*.,,! *!+",,./0,.
.?@!.,,,-
9)!&#!%!%%"'%)6! !2!(# 7!8;
0 !"11#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0 !"11#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
00 !"11#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0 !"11#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0; !"11;#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0 !"11#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0, !"11,#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0,1 !"11#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0, !"1#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
0, !"1#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,-
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0,0 !"10#$%&'"(%)*!+",./..?@!.,,! !+"
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;1$#/%! /#))/(#,-,
;10'"! 4'#'(",-,
;1-44#6!)#$%!2'8# '!/*6#%",1
;17#6'"'#"!"/)!(6,
1&#%(%),
15'(#",
14)%!(##$9)!&#!3#"(%(#(/)./(#<5'(#"
7#)8!(##$)",0
1!%#$ )'6*#4!*%,
9)!&#!%!%%"'%)6! !2!(# 7!8
13)!""'5/!(##$4#4%*!)!(##$/)!"""'$#'%*#$%!%%,;
107#4%*":/%%#%!2,;
1-A"#%!2"%#)6' ')'#$! 6!)#%!2,;
1!)4#4%* 5 ,
1;7"#!)4#4%* 5 ,,
1;'6"%#/94)#* '"44#%#$$!')*5 ,;
15'(#"3%!'4#4%*%#!"""" *%!%<#! #$D!)'I!(#,;
1,A!%!/%#":/%#$%!25'(#"'8!(#,;
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!$!/% &#"#%8'"%#!"""" $#! 6!)#%!2!(#'"(8! 
!""""%7##$#$8'"%!(#! 4!*%#$%!2"24(#",;
!$!/% &#"#/"#$)'"(8! !""""%!"'""'##$'$#!(#,;0
!$!/% &#"'"(8.!""""%! 4!*%#$%!2,;-
0>/#$/#%*!""""#3!(#A'))'8,;;
-3#%*!""""#!%&,;
-#6!)#$)/% #>/'!)"$##>/C2&!"(##$ '",;
-3%# !* "/'4(#"C!'%!/! "*/#%*!""""#,;
>/"! 4"#) /!(#!)!// '%!(#,;
;!)!(#! !""""%#$4#4%*A!'/!"&6!)"6!),
;4)%!(##$9)!&#!3#"(%(#(/)./(#</!"'8%!2!)$!'
/!"&6!)#$)#/!))*!"""" !)4#4%*,;
;<?"%'4"C'$#/(5  #/%C("#$3#"6!(#3#'""'#,;
;2/)"'##$4#4%*" $# ")4&'I!(##$8!"#)'# '")$),
!24!*E"%#%/#/)"'6#$6!)!'"'8#)#+'8% 6!)4!!%
6!)!(#*/#%*!""""#"4/(#! 2!'!(##$4'"",,1
,%'!(##$%!2!)6!),,
,#(/#$'%%%# /!"!""""%!(#C7)'/(8",,
1'"!)'"4/(##$%!2!)4#4%*,,
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3! !"%!)!4"! 4!/)' (5/!(#"*"%%#D' ! !'%!' 3#4&"'6
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 8%",,-
3#"%#$/#4&"'66'"!)'"4/(#4#8!,,
04/'!)!""'"%!/'6!)!(##$/%!'4#4%*,,
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44!'""!)!(#"!""""%,,
;<##9./# "! !%'!)"%#!'%!' */#%*!""""#,,,
'"!)'"4/(#4#8!!)4#8""4#%%#8'")!%,,,
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11-4!) *!+",,./.;
11-3#%*2/'"#! ""&'4)!+$)!/%"3#4"!(#7!)(";
11(8"#$/#%*2/'"#! 8!'I!(#7#+"!  (",
11; #$4#/ '8"#$/#%*2/'"#! ,
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""'"%!/
11,'9'8$ <') '8$ ! G!)$ D'%"4/'!)< 8%//#%"
4!%%!)'I!(#! '%'I!(#
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17)'/&!'8"$#2/'"#! "-
1#(/#$&!'83#('8&!'8"3!))'8#>/'!)"$#2!'!(#-
10!2)6'"("#$/#%*2/'"#! ("#$/#%*!""""#3&!8"! 
/#/(#")'6*%#/#%*%!"-
1-44#(#%#$'))!8;
144#4'!(#+&"(!%#%"'= ;
1;3#4%!(##$!44#4'!(#"7#/ ;
13!"&$ !)!/!"$L3!"&$ !)!/L 5 
1,3($*'8!44#4'!(#//#%"B!!%"3(5/!%"#$' % "",
114#!*!44#4'!(#",
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1'/'4!) 8%"! )6'"A')'8#(/
12!'!(##$ 8%"! )6'"*%!24!*"A')'84#%"%"
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1-7#+"!  ("#$3#%3#(!/"-
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,"!)%!2  '8&%"/#6* 0
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124(#"
17"#"#)'8!% %#4!*%!2D'"'%"%!4"/# '8;1
10"'8!  '"%'(##$"%!4"//#(8'"%'(##$$ ";1
1-)"! 8)!(#"#/%!*%!4!2'%;
1'#)!(#"7'"&%";
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01&#%(%);
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9)!&#!%!%%"'%)6! !2!(# 7!8-
01#(/"A')'8;
0103(5/!(#*/%!*#$!"*! #%&#>/'!)";
01-("#$5)'8#>/"A')'8/(5/!%;
01A')'8$;0
01;3#"%/(#! !44)'/!(##$!/%;-
-1&#%(%);-
-1A' '8"! '%%#$8'")!%;-
-15'(#";
-10/(64!*%"#%44)'/!(#O!)'5/!(#"44#6!)#(/ '(#!)
'$#!(#;;
-1-/(64!*%"A '8"#/;
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5'(#"
09)!&#!A')&!/%!%7#8!0
-9)!&#!A')&!/%!%7#8!6#)6'8A 
'!(##$!/%;
-&#%(%);
-8'")!(65 '8";
-5'(#"
-0""!/#$#)'8!(#"3!)/)!(##$$#8#'/(6"7!*%#$4#/ "
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--7#4#" !#%#$'6"%%! 24 '%7'# D' $#$))24 '%
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-"#$3 '%&!/%"6A $#'""!/#$#)'8!(#"0
-;O!)'%*@#"7#8!/(66!8A 0
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-,'= +'%&&#) '8%!2"!"$! !44#(#%;
1"%!)'"&%"/!"'8%#D!)'$*$#'/(64!*%'!')'%*$#4!*%#$
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;14!) *!+"1./-..?#6.1,
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;14!) *!+"1./-..?#6.1,
;104!) *!+"1./-..?#6.1,
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;14!) *!+"1./-..?#6.1,
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01;)'8'')'%*%#/'6#%&/ '%"#24(#"-
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01&#%(%)-,
0174#"C8'")!(6'%%C/(64!*%"-,
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01-44)'/!(#$#'/(64!*%C3""!(##$4!*%C+!44)'/!(#C'5/!(#
! 4!*%0
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01;)'8'')'%*$#/%!'%!2/ '%"#24(#"
019)!&#!4!%%#$3#/! 9)!&#!!23#'""'#C)";
01,A!)"#$! )%!44)'/!(###%&'$#!(#C' '8#!M8CA)#*C
7'"&%
01A'6*!4$#!/6'+CB'=4#%
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018'")!(65 '8",
015'(#",
010O!)'%*6%"'8!(#'""'##$$#"%#9)!&#!!23#'""'#;
01-)'8'))#/!)"44#%;
017#/ "$#/#%*#'/'4!)'%*"!)"%!2;
01;!2'%#%!)4!*%";
017!*%#$'/%!)"!)"%!26";
01,7#)8!(##$)";
01!)4#%;0
03#%!/%.#! #$ "%! '8.#%&!8%"D%
$#/!')'%*#$!/%;0
001&#%(%);0
0018'")!(65 '8";0
0015'(#";-
0010<# !* "'8!(##%#$"!)"%!26?/% 6 #"A#"! 
4#/ ";-
001-!)"%!2. '"%'(##$6.!44)'/!')'%*#$!/%;
001'""'##$"!)"%!26"!'%!/!  6)#4%#$!""%";
-114!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,;;
-114!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,;;
-114!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,;;
-1104!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
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,,./0,..?@!.,,,
01, !"1,#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,;
01 !"11#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,;
0 !"1#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,;
0 !"1#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,;
0 !"1#$%&'"(%)*!+",./..?@!.,,! !+"
,,./0,..?@!.,,,;
0114!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,;
014!) *!+",./.-.?@!.,,! *!+",,./0,.0.?
@!.,,,;
014!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,;
014!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,;
0104!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,;
01-4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,;
014!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,;
01;4!) *!+",./.-.?@!!*.,,! *!+",,./0,.0.
?@!.,,,;
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?@!.,,,;
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?@!.,,,
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?@!.,,,
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?@!.,,,
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?@!.,,,
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?@!.,,,
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?@!.,,,
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?@!.,,,
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?@!.,,,
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?@!.,,,
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§68-12-1213. Renumbered as § 1213 of this title by Laws 1965, c.
215, § 2.
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§68-21-103. Renumbered as § 2103 of this title by Laws 1965, c. 215,
§ 3.
§68-101. Tax code.
The several tax laws recodified as Tax Codes, together with this
act, shall be known as the Oklahoma Tax Code.
Laws 1965, c. 235, § 1, emerg. eff. June 17, 1965.
§68-102. Creation - Duties, powers and authority - Membership -
Appointment and confirmation - Removal -Term - Vacancies - Residency
- Administrator.
The "Oklahoma Tax Commission" is hereby created, and shall
possess such duties, powers and authority as are hereinafter defined,
and as are now or as may hereafter be conferred upon it by law. The
Tax Commission shall consist of three (3) persons to be appointed by
the Governor of the State of Oklahoma by and with the consent of the
State Senate of the State of Oklahoma. No more than two (2) members
of the Tax Commission shall be, or shall have been in the previous
six (6) months, members of the same political party. The members of
the Tax Commission shall not be subject to removal from office at the
will and pleasure of the Governor, but may be removed only for cause
and in the manner provided by law for the removal of state officials
not subject to impeachment under the provision of Section 1, Article
VIII, of the Constitution.
The members of the Oklahoma Tax Commission as now constituted
shall continue to serve until the members of the Tax Commission
created by this act are duly appointed, confirmed and qualified.
Within twenty (20) days after the effective date of this act, the
Governor shall appoint a new Tax Commission with the term of office
of one member to expire on the second Monday of January 1955, the
term of office of the second member to expire on the second Monday of
January 1957, and the term of office of the third member to expire on
the second Monday of January 1959. Except as set out above the term
of office of each member of said Commission shall be for six (6)
years with the term of office of one member of the Tax Commission
expiring on the second Monday of January of each odd-numbered year.
Provided, however, that a member of the Commission shall continue to
serve after the expiration of his term of office until his successor
is appointed, confirmed and qualified. In the event of a vacancy in
the membership of the Tax Commission before the expiration of any
term of office, the Governor shall fill such vacancy for the
unexpired term within twenty (20) days, and no member of the
Commission shall be entitled to draw any salary or perform any
service until his appointment is confirmed by the Senate, if the
Senate then be in session. If the Senate be not in session, then
such member may serve and draw his salary until some special or
regular session convenes; and if his appointment is then not
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confirmed within twenty (20) days, he shall cease to perform such
services and cease to draw a salary.
Each member of the Tax Commission shall, at the time of his
appointment, be a resident and citizen of the State of Oklahoma, and
shall devote all of his time to the administration of the affairs of
the Tax Commission. The Governor shall at the time of making the
initial appointments, and also at the time of making each appointment
to fill a vacancy on the Commission as provided by this act,
designate one member to serve as Chairman, one member to serve as
Vice Chairman and one member to serve as Secretary.
The Oklahoma Tax Commission shall appoint an administrator who
shall serve at the pleasure of the Commission and who shall be the
administrative officer of the Commission and manage the activities of
the employees provided for in Sections 104 and 105 of this title.
Amended by Laws 1986, c. 223, § 32, operative July 1, 1986; Laws
1987, c. 236, § 140, emerg. eff. July 20, 1987.
§68-102.1. Salaries.
A. For any period commencing on or after January, 1995, the
annual salary of an officer of the Oklahoma Tax Commission shall be
increased by the percentage or amount provided for salary increases
for employees of the Oklahoma Tax Commission for each fiscal year
beginning with Fiscal Year 1995, if such employee salary increases
are authorized by the Legislature.
B. From and after the beginning date of a term of office which
commences in, or after January 1997, the annual salary, payable
monthly, of the officers of the Tax Commission shall be as follows:
Chairman $85,000.00
Vice-Chairman $84,500.00
Secretary-Member $84,500.00
C. Effective January 2005, from and after the beginning date of
a term of office which commences in or after January 2003, the annual
salary, payable to the officers of the Tax Commission shall be equal
to that paid to a judge of the Workers’ Compensation Court.
D. All such salaries shall be payable monthly out of monies
available for expenditure for such purpose.
Added by Laws 1967, c. 238, § 1, emerg. eff. May 4, 1967. Amended by
Laws 1974, c. 311, § 3, emerg. eff. May 31, 1974; Laws 1976, c. 232,
§ 6, emerg. eff. June 15, 1976; Laws 1978, c. 266, § 7, emerg. eff.
May 10, 1978; Laws 1979, c. 264, § 8, emerg. eff. June 5, 1979; Laws
1980, c. 269, § 6, emerg. eff. June 11, 1980; Laws 1981, c. 333, §
13, eff. July 1, 1981; Laws 1982, c. 350, § 15, emerg. eff. June 2,
1982; Laws 1985, c. 345, § 8, emerg. eff. July 30, 1985; Laws 1986,
c. 223, § 33, operative July 1, 1986; Laws 1989, c. 279, § 14,
operative July 1, 1989; Laws 1992, c. 367, § 21, eff. July 1, 1992;
Laws 1997, c. 384, § 10, emerg. eff. June 11, 1997; Laws 1998, c.
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396, § 1, emerg. eff. June 10, 1998; Laws 2002, c. 389, § 3, emerg.
eff. June 4, 2002.
§68-102.2. Political activities by members of Tax Commission
prohibited.
No member of the Oklahoma Tax Commission shall, directly or
indirectly, solicit, receive or in any manner be concerned in
soliciting or receiving any assessment, subscription or contribution
for any political organization, candidacy or other political purpose.
No member of said Commission shall be a member of any national, state
or local committee of a political party, or an officer or a member of
a committee of a partisan political club, or a candidate for
nomination or election to any paid public office, or take part in the
management or affairs of any political party or in any political
campaign, except to exercise his right as a citizen privately to
express his opinion and to cast his vote.
Laws 1969, c. 335, § 1.
§68-102.3. Additional duties and compensation for commissioners.
In addition to their other duties, the members of the Oklahoma
Tax Commission shall make a continuous study of the critical national
energy crisis to determine its impact on the tax revenues of
Oklahoma, particularly the revenues derived from the gross production
taxes and gasoline and other motor fuel taxes and also to determine
and project the degree of the consequent erosion of the present tax
structure of the state which will be caused by the gradual change
from the use of oil and natural gas as a basic fuel for energy. The
Commission shall make periodic appraisals concerning the several
taxes directly related to the fuels presently used by motor vehicles
and other modes of travel and for heating and cooling, as well as the
tax paid by those engaged in the business of producing oil and gas,
as the use of substitute types of fuels evolve which undoubtedly will
result in substantial changes in the types and size of vehicles used
in the business activities of many taxpayers.
The Commission shall also develop such econometric models as are
deemed necessary, compile data and other information as to the
possible rate of decline in tax revenue and report to the Governor,
Speaker of the House of Representatives and President Pro Tempore of
the Senate by the second Tuesday of every year, to insure the
availability of revenue to properly operate and carry on the
functions of state and local government.
For the performance of such additional duties, the members of
said Commission not receiving the maximum salary provided in Section
102.1 of Title 68 of the Oklahoma Statutes shall be compensated as
follows:
The Chairman of said Commission shall receive Eleven Thousand
Five Hundred Dollars ($11,500.00) per annum and the Vice Chairman and
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Secretary-Member of said Commission shall each receive Fifteen
Thousand Five Hundred Dollars ($15,500.00) per annum, payable
monthly. Provided, it is the intent hereof that no member of said
Commission shall receive total compensation greater than that
provided in Section 102.1 of Title 68 of the Oklahoma Statutes as
amended.
Laws 1974, c. 309, § 4, emerg. eff. May 31, 1974; Laws 1975, c. 247,
§ 7, emerg. eff. June 2, 1975; Laws 1976, c. 232, § 7, emerg. eff.
June 15, 1976; Laws 1978, c. 266, § 8, emerg. eff. May 10, 1978; Laws
1979, c. 264, § 9, emerg. eff. June 5, 1979; Laws 1980, c. 269, § 7,
emerg. eff. June 11, 1980.
§68-103. Conduct of hearings - Production of books and records -
Perjury.
In the performance of its duties, as defined by law, the Tax
Commission, or any member thereof, shall have the power to administer
oaths, to conduct hearings, and to compel the attendance of witnesses
and the production of the books, records and papers of any person,
firm, association or corporation.
Any person, or any member of any firm or association, or any
official, agent or employee of any corporation, who shall fail or
refuse to testify, or who shall fail or refuse to produce any books,
records or papers which the Commission shall require; or who shall
fail or refuse to permit the examination of the same; or who shall
fail or refuse to furnish any other evidence or information which the
Commission, or any member thereof, may require; or who shall fail or
refuse to answer any question which may be put to him by said
Commission, or any member thereof, touching the business, property,
assets or effects of any such person, firm, association or
corporation, or the valuation thereof or the income or profits
therefrom, shall be guilty of a misdemeanor, and, upon conviction,
shall be punished by a fine of not more than Five Hundred Dollars
($500.00), or by imprisonment in the jail of the county where such
offense shall have been committed for not more than one (1) year, or
by both such fine and imprisonment.
Any person, or member of any firm or association, or any
official, agent or employee of any corporation, who shall knowingly
make false answer to any question which may be put to him by the
Commission, or any member thereof, touching the business, property,
assets or effects of any such person, firm, association or
corporation, or the valuation thereof or the income or profits
therefrom; or who shall make or present any false affidavit
concerning any list, schedule, statement, report or return, or for
any other purpose, filed with the Commission or required to be filed
by this Code or by any other law of the state, shall be guilty of the
felony of perjury, and, upon conviction, shall be punished as
provided by law.
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Added by Laws 1965, c. 235, § 1, emerg. eff. June 17, 1965. Amended
by Laws 1997, c. 133, § 550, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 550 from July 1, 1998, to July 1, 1999.
§68-104. Employees and expenses - Bonds.
The Tax Commission may employ such employees and incur such
expense as may be necessary for the proper discharge of its duties
under the limitations and restrictions as hereinafter set out. All
such employees who shall be required to handle public monies, or who
shall be responsible therefor, shall give bonds for the honest and
faithful performance of their duties, in such amounts as may be fixed
by the Commission.
Laws 1965, c. 235, § 1.
§68-105. Attorneys for Commission.
A. The Tax Commission shall employ a Chief Attorney to be
designated "General Counsel" and other attorneys each to be
designated "attorney" who shall be the legal advisors for the
Commission and are authorized to appear for and represent the
Commission in any and all litigation that may arise in the discharge
of its duties.
B. The General Counsel or the district attorney shall initiate
criminal actions for violations of the tax laws of this state in the
district court of the county in which the defendant resides or
maintains a place of business. The attorneys for the Tax Commission
may prosecute such criminal actions or may, upon request of a
district attorney, appear and assist in the prosecution of such
actions initiated by the district attorney.
C. For purposes of this section, the term "tax laws of this
state" means any law of the State of Oklahoma which levies, imposes,
provides for administration of, or in any way relates to a tax, fee,
or revenue raising property which is collected by or required to be
deposited with the Commission.
D. The General Counsel and attorneys shall devote all of their
time to the Commission and their salaries shall be fixed by the
Commission.
Amended by Laws 1983, c. 275, § 3, emerg. eff. June 24, 1983; Laws
1984, c. 292, § 10, operative July 1, 1984; Laws 1985, c. 345, § 14,
emerg. eff. July 30, 1985.
§68-105.1. Designation of peace officer to conduct personnel
investigations and background checks.
The Oklahoma Tax Commission shall have the authority to designate
as a peace officer the employee in the position of Director of
Internal Affairs for the purpose of conducting personnel
investigations and background checks. An employee designated as a
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peace officer pursuant to this section shall have the authority to
review information contained in the files of federal, state or local
law enforcement officials in order to conduct the investigations
prescribed by this section. The employee designated as a peace
officer shall not be authorized to carry a firearm nor shall be
required to be certified pursuant to Section 3311 of Title 70 of the
Oklahoma Statutes.
Added by Laws 1990, c. 339, § 1, emerg. eff. May 31, 1990.
§68-106. Repealed by Laws 2010, c. 413, § 30, eff. July 1, 2010.
§68-107. Disbursements to be within appropriations.
The total amount disbursed by the Tax Commission in any one
fiscal year for the payment of salaries, expenses and incidentals
shall not exceed the amount appropriated therefor by the Legislature.
Laws 1965, c. 235, § 1.
§68-108. Schedule of fees and charges - Transcripts and other
services.
The Tax Commission shall have the authority to adopt and
promulgate a schedule of fees and charges for services rendered
relating to transcripts and certificates as to records; for
transcripts for appeal and other services, involving the furnishing
of copies of proceedings, files and records; and, in case of
transcripts of records for appeal, the Commission may prescribe a
reasonable charge therefor to be paid by the party demanding the
record, which said fees and charges shall be credited to
miscellaneous receipts of the Commission.
Laws 1965, c. 235, § 1.
§68-109. Legislative intent.
It is hereby declared to be the intention of the Legislature that
the purpose of this act is to revise, amend and reenact those
statutes set forth in full herein by deleting language and provisions
contained in Section 3 through Section 10b of Title 68 O.S.1961,
which provisions have long since become obsolete by reason of
changing conditions or superseded by provisions of later laws, to
make same consistent with present conditions and laws and to reenact
same as a part of the Oklahoma Tax Code.
Laws 1965, c. 235, § 1.
§68-110. Repealer.
68 O.S.1961, Sections 1, 3, 4, 5, 6, 7, 8, 9, 10, 10a and 10b,
inclusive, are hereby repealed for the purpose of being revised,
amended and reenacted as herein set forth.
Laws 1965, c. 235, § 1.
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§68-112. Tax Commission Fund - Credits for all miscellaneous
receipts.
All miscellaneous receipts authorized by law to be charged and
collected by the Oklahoma Tax Commission for furnishing of copies of
transcripts, minutes or other recordings of proceedings, or reports
or other information filed with the Commission, or any information
authorized by law to be furnished shall be placed to the credit of
the Oklahoma Tax Commission Fund.
Amended by Laws 1986, c. 269, § 17, operative July 1, 1986.
§68-113. Tax Commission Reimbursement Fund - Full-time employees.
A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tax Commission to be known as the "Tax
Commission Reimbursement Fund". Said revolving fund shall consist of
any funds received by the Tax Commission for data processing services
or equipment rental and any funds received by the Tax Commission from
any incorporated city, town, or county pursuant to a contractual
agreement for the augmentation of the enforcement and collection of
municipal or county taxes entered into pursuant to the provisions of
Sections 1371 or 2702 of this title. The Tax Commission is
authorized to hire full-time-equivalent employees as necessary to
perform such duties as to fulfill contractual agreements authorized
pursuant to Sections 1371 and 2702 of this title, however, such
employees hired to perform such contractual duties shall be supported
solely by funds in the Tax Commission Reimbursement Fund which are
collected by the Tax Commission from incorporated cities, towns, and
counties pursuant to such contractual agreements and such employees
shall be terminated upon the discontinuation of such funds or
inadequate funds to support such positions. Such full-time-
equivalent employees shall be in the unclassified service and shall
not be subject to any provisions of the Oklahoma Personnel Act or to
the Merit Rules for Employment except leave regulations. All fees
collected and apportioned to this fund under the Oklahoma Vehicle
License and Registration Act, Section 1101 et seq. of Title 47 of the
Oklahoma Statutes, may be used by the Motor Vehicle Division of the
Oklahoma Tax Commission to pay all costs incurred in the issuance of
certificates of title and inspection of vehicles, including, but not
limited to, additional computer costs for the Tax Commission and
motor license agents and the check verification system authorized
pursuant to the provisions of paragraph 1 of subsection A of Section
1144 of Title 47 of the Oklahoma Statutes or be used for capital
expenditures as authorized by the Oklahoma State Legislature. For
the fiscal year beginning July 1, 2004, disbursements from the fund
shall be exempt from all agency budget limits.
B. Notwithstanding any other provision in the Oklahoma Statutes
except subsection F of Section 316 and subsection D of Section 418 of
this title, beginning July 1, 2009, all revenue from fees and
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penalties collected pursuant to Sections 304, 316, 415 and 418 of
this title shall be apportioned to the Tax Commission Reimbursement
Fund for administrative expenses incurred in connection with
enforcement of the provisions of Section 301 et seq., Section 346 et
seq., Section 401 et seq. and Section 424 et seq. of this title.
Added by Laws 1985, c. 197, § 8, operative July 1, 1985. Amended by
Laws 1986, c. 170, § 1, emerg. eff. May 9, 1986; Laws 1989, c. 290, §
13, emerg. eff. May 24, 1989; Laws 1990, c. 264, § 113, operative
July 1, 1990; Laws 1997, c. 294, § 8, eff. July 1, 1997 ; Laws 2004,
c. 504, § 16, eff. July 1, 2004; Laws 2009, c. 434, § 1, eff. Jan. 1,
2010; Laws 2011, c. 364, § 1; Laws 2012, c. 304, § 530.
§68-114. Payment of fees for employees in performance of duties.
The Oklahoma Tax Commission may expend monies to pay membership
fees for Commission members or employees of the Commission in
regional or national tax associations as the Commission deems in the
best interest of this state for education and training in tax
administration, practices, and procedures, and any other fees
required to be paid by an employee in the performance of his official
duties.
Added by Laws 1986, c. 269, § 10, operative July 1, 1986.
§68-116. Mineral interests in land - Taxation of owners, heirs,
devisees or assigns - Publication of information from estate tax
records - Confidentiality - Fees - Revolving fund.
For the purpose of assisting the public in locating owners of
mineral interests and other property, or the heirs, devisees and
assigns of such owners, the Oklahoma Tax Commission is authorized and
directed to make available to the public, by display or by request by
mail or otherwise, reports from an annual listing, for the years when
an index is available, of the names of decedents from its estate tax
records, the date of death, address, county in which the probate was
conducted and the number assigned to the probate.
All other information of the Commission shall remain
confidential, as prescribed in Section 205 of Title 68 of the
Oklahoma Statutes or as otherwise provided by law.
The Commission is authorized to prescribe procedures and may
assess reasonable fees to cover costs of the services rendered, and
may establish a revolving fund for such revenues, which may be a
continuing fund not subject to fiscal limitations.
Added by Laws 1988, c. 146, § 1, operative July 1, 1988.
§68-117. Electronic access to data and reports.
The Oklahoma Tax Commission, upon request, shall provide the
Office of Management and Enterprise Services, the Oklahoma State
Senate and the Oklahoma House of Representatives electronic access to
any aggregate data and reports used by the Oklahoma Tax Commission in
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developing revenue estimates and economic forecasts. The aggregate
data and reports which will be made accessible pursuant to the
provisions of this section shall not include any records or other
information required by law to be kept confidential.
Added by Laws 1995, c. 325, § 4, eff. July 1, 1995. Amended by Laws
2012, c. 304, § 531.
§68-118. Written estimate of revenue gain or loss and written
statement of recommendation as to proposed or actual tax law changes
- Annual forecast of gross production tax revenues.
A. Upon receipt of a written request from a member or employee
of the Legislature, the Oklahoma Tax Commission shall provide:
1. A written estimate of the revenue gain or loss to the state
as a result of an actual or proposed change to a state tax law; and
2. A written statement of the Tax Commission's recommendation to
the State Board of Equalization as to the change in the amount
certified as available for appropriation by the Legislature as a
result of an actual or proposed change to a state tax law.
The Tax Commission shall provide such estimate and statement
within two (2) weeks of the date the request was received unless the
member or employee of the Legislature specifies an earlier date. If
the Tax Commission determines that it is unable to provide such
estimate and statement within the time period required by this
section, it shall provide a written explanation and date by which the
estimate and statement will be provided to the member or employee.
B. On or after December 31, 2009, and subject to the
availability of funds, the Tax Commission shall develop the estimates
and statements required by subsection A of this section utilizing a
dynamic revenue estimating model. Such model shall take into
consideration changes in economic activity as a result of the
proposed legislation and consequent revenue gains or losses due to
factors such as taxpayer behavior, employment and business
investment. The Tax Commission may, subject to the laws of this
state relating to confidentiality of information, contract with
institutions of higher education in this state or other entities to
perform its duties as set forth in this subsection. The Tax
Commission is authorized to promulgate rules to carry out the
implementation of this section.
C. For the purpose of providing an annual forecast of gross
production tax revenues from the production of natural and casinghead
gas to the Office of Management and Enterprise Services, the Tax
Commission shall subscribe to appropriate reference materials which
provide economic outlook of future gas prices that have most closely
followed the historical trend of Oklahoma gas prices. To determine
the average differential between the published forecasted prices and
Oklahoma gas prices, the Tax Commission shall compare prices in at
least twenty-four (24) of the immediate thirty-six (36) previous
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months of production. The Tax Commission shall utilize the
procedures provided herein to forecast the collection of gross
production tax revenues from the production of natural and casinghead
gas for the fiscal year beginning July 1, 2005, and each fiscal year
thereafter.
Added by Laws 1995, c. 325, § 5, eff. July 1, 1995. Amended by Laws
2003, c. 397, § 1; Laws 2005, c. 447, § 1; Laws 2007, c. 335, § 3,
eff. Nov. 1, 2007; Laws 2008, c. 378, § 4, emerg. eff. June 4, 2008;
Laws 2012, c. 304, § 532.
§68-119. Notice to vendors in annexed territory of applicable sales
tax rate.
Upon receipt of a notice and map and plat from a governing body
regarding the boundaries of annexation of a territory pursuant to
Section 21-103 or 21-104 of Title 11 of the Oklahoma Statutes, the
Oklahoma Tax Commission shall provide notice to all known sales tax
vendors within the boundaries of the annexed territory regarding the
applicable rate of sales tax.
Added by Laws 2009, c. 197, § 3, eff. Nov. 1, 2009.
§68-120. Out-of-State Tax Collections Enforcement Act of 2017.
A. This act shall be known and may be cited as the "Out-of-State
Tax Collections Enforcement Act of 2017".
B. For the purpose of collecting taxes owed to this state, the
Oklahoma Tax Commission may establish and maintain a division to be
known as the "Out-of-State Tax Collections Enforcement Division".
Pursuant to Section 262 of Title 68 of the Oklahoma Statutes, the Tax
Commission may contract with out-of-state private auditors or audit
firms and may require any person performing an audit to be first
approved by the Tax Commission.
C. The Tax Commission may employ full-time, unclassified, out-
of-state tax auditors or full-time-equivalent contracted auditors to
staff the Division who shall perform audit functions related to
enhancing:
1. Sales and use tax collections related to sales or
transactions involving residents of Oklahoma and out-of-state vendors
with a nexus to the State of Oklahoma; and
2. Collections of any other unpaid taxes owed the State of
Oklahoma by out-of-state individuals, firms and corporations.
D. For purposes of this section, the term "audit function"
includes but is not limited to the auditing of the books of
individuals, firms and corporations which the Tax Commission believes
may owe the State of Oklahoma additional tax monies.
E. The Tax Commission shall annually submit a report to the
Governor, President Pro Tempore of the Senate and Speaker of the
House of Representatives listing the number of individuals, firms and
corporations audited, the types of taxes audited, the amount of taxes
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assessed and the amount of taxes collected as the result of such
audits.
Added by Laws 2017, c. 219, § 1, eff. Nov. 1, 2017.
§68-201. Purpose of Article.
The purpose of this article, which may be cited as the "Uniform
Tax Procedure Code", is to provide, so far as is possible, uniform
procedures and remedies with respect to all state taxes. Unless
otherwise expressly provided in any state tax law, heretofore or
hereafter enacted, the provisions of this article shall control and
shall be exclusive.
Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965.
§68-202. Definitions.
The terms defined in this section shall, in this article, be
construed as follows:
(a) The term "Tax Commission" shall mean the Oklahoma Tax
Commission;
(b) The term "state tax" shall mean any tax which is payable to,
collectible by or administered by the Oklahoma Tax Commission;
(c) The term "state tax law" shall mean any law of the State of
Oklahoma which levies, imposes, or relates to a state tax as herein
defined;
(d) The term "taxpayer" shall mean:
(1) Any person owing or liable to pay any state tax;
(2) Any person required to file a report, a return, or remit any
tax required by the provisions of any state tax law;
(3) Any person required to obtain a license or a permit or to
keep any records under the provisions of any state tax law;
(e) The term "person" means an individual, trust, estate,
fiduciary, partnership, limited liability company, or a corporation,
and shall include any municipal subdivision of the state;
(f) The term "individual" means a natural person;
(g) The term "corporation" means an organization, other than a
partnership, as hereinafter defined:
(1) Created or organized under the laws of Oklahoma;
(2) Qualified to do or doing business in Oklahoma, in a corporate
or organized capacity, by virtue of creation or organization under
the laws of the United States or of some state, territory or
district, or of a foreign country;
(3) Associations, joint-stock companies, insurance companies,
including surety and bond companies;
(4) Business trusts, which shall mean and include common law
trusts, such as Massachusetts trusts and every other business
organization consisting essentially of an arrangement whereby
property is conveyed to one or more trustees for purposes other than
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the protection and conservation of assets or the protection of
debtholders; and
(5) National banking associations, state banks, and trust
companies;
(h) The term "fiduciary" means a guardian, trustee, executor,
administrator, receiver, conservator or any person, whether
individual or corporate, acting in any fiduciary capacity for any
person, trust or estate;
(i) The term "partnership" includes a syndicate, group, pool,
joint venture or other unincorporated organization, through or by
means of which any business, financial operation or venture is
carried on, and which is not a trust or estate or classed as a
corporation within the provisions of this article; and the term
"partner" includes a member of such syndicate, group, pool, joint
venture or organization;
(j) The term "limited liability company" means an organization
other than a corporation or partnership which is organized pursuant
to Section 2000 et seq. of Title 18 of the Oklahoma Statutes. Except
as otherwise specifically provided, for all purposes under Title 68
of the Oklahoma Statutes, a domestic limited liability company shall
be treated the same and taxed as a domestic partnership and a foreign
limited liability company shall be treated the same and taxed as a
foreign partnership, provided that such domestic or foreign limited
liability companies are classified as partnerships for federal income
tax purposes.
Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965; Laws 1985, c. 182,
§ 1, emerg. eff. June 20, 1985; Laws 1993, c. 366, § 26, eff. Sept.
1, 1993.
§68-203. Enforcement by Tax Commission - Rules – Electronic filing.
The Oklahoma Tax Commission is hereby authorized to enforce the
provisions of Section 201 et seq. of this title and to promulgate and
enforce any reasonable rules with respect thereto. The Tax
Commission may also prescribe, promulgate and enforce all necessary
rules for the purpose of making and filing of all reports required
under any state tax law, and such rules as may be necessary to
ascertain and compute the tax payable by any taxpayer subject to
taxation under any state tax law; and may, at all times, exercise
such authority as may be necessary to administer and enforce each and
every provision of any state tax law. The Tax Commission is further
authorized to require any person filing a report or return required
by the provisions of any state tax law to file the report or return
by electronic means. The Tax Commission is also authorized to allow
a taxpayer to file a return on paper that is required by this title
to be filed electronically.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 2003, c. 472, § 2.
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§68-204. Records of official acts of Commission - Fees.
The Tax Commission shall keep a record of all its official acts,
and shall preserve copies of all rules, regulations, decisions and
orders made by it. Copies of any rule, regulation, decision or order
made by it in the administration of this article or any state tax law
may be authenticated under its official seal and, when so
authenticated, shall be evidence in all courts of this state of the
same weight and force as the original thereof. For authenticating
any such copy the Tax Commission shall be paid a fee of One Dollar
($1.00), said fee to be apportioned to the General Revenue Fund of
the state the same as are other fees. Under no circumstances shall
the Tax Commission furnish copies of records which it may by law be
prohibited from making public.
Laws 1965, c. 414, § 2.
§68-205. Records and files of Commission confidential and privileged
- Exceptions - Report.
A. The records and files of the Oklahoma Tax Commission
concerning the administration of the Uniform Tax Procedure Code or of
any state tax law shall be considered confidential and privileged,
except as otherwise provided for by law, and neither the Tax
Commission nor any employee engaged in the administration of the Tax
Commission or charged with the custody of any such records or files
nor any person who may have secured information from the Tax
Commission shall disclose any information obtained from the records
or files or from any examination or inspection of the premises or
property of any person.
B. Except as provided in paragraph 26 of subsection C of this
section, neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files shall be required by any court of this
state to produce any of the records or files for the inspection of
any person or for use in any action or proceeding, except when the
records or files or the facts shown thereby are directly involved in
an action or proceeding pursuant to the provisions of the Uniform Tax
Procedure Code or of the state tax law, or when the determination of
the action or proceeding will affect the validity or the amount of
the claim of the state pursuant to any state tax law, or when the
information contained in the records or files constitutes evidence of
violation of the provisions of the Uniform Tax Procedure Code or of
any state tax law.
C. The provisions of this section shall not prevent the Tax
Commission from disclosing the following information and no liability
whatsoever, civil or criminal, shall attach to any member of the Tax
Commission or any employee thereof for any error or omission in the
disclosure of such information:
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1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxpayer pursuant to the provisions of the Uniform
Tax Procedure Code or of any state tax law;
2. The exchange of information that is not protected by the
federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
pursuant to reciprocal agreements entered into by the Tax Commission
and other state agencies or agencies of the federal government;
3. The publication of statistics so classified as to prevent the
identification of a particular report and the items thereof;
4. The examination of records and files by the State Auditor and
Inspector or the duly authorized agents of the State Auditor and
Inspector;
5. The disclosing of information or evidence to the Oklahoma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, any district
attorney, or agent of any federal law enforcement agency when the
information or evidence is to be used by such officials to
investigate or prosecute violations of the criminal provisions of the
Uniform Tax Procedure Code or of any state tax law or of any federal
crime committed against this state. Any information disclosed to the
Oklahoma State Bureau of Investigation, Attorney General, Oklahoma
State Bureau of Narcotics and Dangerous Drugs Control, any district
attorney, or agent of any federal law enforcement agency shall be
kept confidential by such person and not be disclosed except when
presented to a court in a prosecution for violation of the tax laws
of this state or except as specifically authorized by law, and a
violation by the Oklahoma State Bureau of Investigation, Attorney
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, district attorney, or agent of any federal law enforcement
agency by otherwise releasing the information shall be a felony;
6. The use by any division of the Tax Commission of any
information or evidence in the possession of or contained in any
report or return filed with any other division of the Tax Commission;
7. The furnishing, at the discretion of the Tax Commission, of
any information disclosed by its records or files to any official
person or body of this state, any other state, the United States, or
foreign country who is concerned with the administration or
assessment of any similar tax in this state, any other state or the
United States. The provisions of this paragraph shall include the
furnishing of information by the Tax Commission to a county assessor
to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklahoma Constitution or
Section 2890 of this title. The Tax Commission shall promulgate
rules to give guidance to the county assessors regarding the type of
information which may be used by the county assessors in determining
the amount of gross household income pursuant to Section 8C of
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Article X of the Oklahoma Constitution or Section 2890 of this title.
The provisions of this paragraph shall also include the furnishing of
information to the State Treasurer for the purpose of administration
of the Uniform Unclaimed Property Act;
8. The furnishing of information to other state agencies for the
limited purpose of aiding in the collection of debts owed by
individuals to such requesting agencies;
9. The furnishing of information requested by any member of the
general public and stated in the sworn lists or schedules of taxable
property of public service corporations organized, existing, or doing
business in this state which are submitted to and certified by the
State Board of Equalization pursuant to the provisions of Section
2858 of this title and Section 21 of Article X of the Oklahoma
Constitution, provided such information would be a public record if
filed pursuant to Sections 2838 and 2839 of this title on behalf of a
corporation other than a public service corporation;
10. The furnishing of information requested by any member of the
general public and stated in the findings of the Tax Commission as to
the adjustment and equalization of the valuation of real and personal
property of the counties of the state, which are submitted to and
certified by the State Board of Equalization pursuant to the
provisions of Section 2865 of this title and Section 21 of Article X
of the Oklahoma Constitution;
11. The furnishing of information to an Oklahoma wholesaler of
low-point beer, licensed under the provisions of Section 163.1 et
seq. of Title 37 of the Oklahoma Statutes, or an association or
organization whose membership is comprised of such wholesalers, of
the licensed retailers authorized by law to purchase low-point beer
in this state or the furnishing of information to a licensed Oklahoma
wholesaler of low-point beer of shipments by licensed manufacturers
into this state;
12. The furnishing of information as to the issuance or
revocation of any tax permit, license or exemption by the Tax
Commission as provided for by law. Such information shall be limited
to the name of the person issued the permit, license or exemption,
the name of the business entity authorized to engage in business
pursuant to the permit, license or exemption, the address of the
business entity, and the grounds for revocation;
13. The posting of notice of revocation of any tax permit or
license upon the premises of the place of business of any business
entity which has had any tax permit or license revoked by the Tax
Commission as provided for by law. Such notice shall be limited to
the name of the person issued the permit or license, the name of the
business entity authorized to engage in business pursuant to the
permit or license, the address of the business entity, and the
grounds for revocation;
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14. The furnishing of information upon written request by any
member of the general public as to the outstanding and unpaid amount
due and owing by any taxpayer of this state for any delinquent tax,
together with penalty and interest, for which a tax warrant or a
certificate of indebtedness has been filed pursuant to law;
15. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written request by any member of the
general public as to any agreement entered into by the Tax Commission
concerning a compromise of tax liability for an amount less than the
amount of tax liability stated on such warrant;
16. The disclosure of information necessary to complete the
performance of any contract authorized by this title to any person
with whom the Tax Commission has contracted;
17. The disclosure of information to any person for a purpose as
authorized by the taxpayer pursuant to a waiver of confidentiality.
The waiver shall be in writing and shall be made upon such form as
the Tax Commission may prescribe;
18. The disclosure of information required in order to comply
with the provisions of Section 2369 of this title;
19. The disclosure to an employer, as defined in Sections 2385.1
and 2385.3 of this title, of information required in order to collect
the tax imposed by Section 2385.2 of this title;
20. The disclosure to a plaintiff of a corporation's last-known
address shown on the records of the Franchise Tax Division of the Tax
Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
21. The disclosure of information directly involved in the
resolution of the protest by a taxpayer to an assessment of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosure of the pendency of an
administrative proceeding involving such protest or claim, to a
person called by the Tax Commission as an expert witness or as a
witness whose area of knowledge or expertise specifically addresses
the issue addressed in the protest or claim for refund. Such
disclosure to a witness shall be limited to information pertaining to
the specific knowledge of that witness as to the transaction or
relationship between taxpayer and witness;
22. The disclosure of information necessary to implement an
agreement authorized by Section 2702 of this title when such
information is directly involved in the resolution of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the governing body or to the municipal
attorney, if so designated by the governing body;
23. The furnishing of information regarding incentive payments
made pursuant to the provisions of Sections 3601 through 3609 of this
title or incentive payments made pursuant to the provisions of
Sections 3501 through 3508 of this title;
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24. The furnishing to a prospective purchaser of any business,
or his or her authorized representative, of information relating to
any liabilities, delinquencies, assessments or warrants of the
prospective seller of the business which have not been filed of
record, established, or become final and which relate solely to the
seller's business. Any disclosure under this paragraph shall only be
allowed upon the presentment by the prospective buyer, or the buyer's
authorized representative, of the purchase contract and a written
authorization between the parties;
25. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax permit,
license, exemption, deduction, credit or other tax preference by the
Tax Commission as provided for by law. Such information shall be
limited to the type of permit, license, exemption, deduction, credit
or other tax preference issued or granted, the date and duration of
such permit, license, exemption, deduction, credit or other tax
preference and the amount of such revenue. The provisions of this
paragraph shall not authorize the disclosure of the name of the
person issued such permit, license, exemption, deduction, credit or
other tax preference, or the name of the business entity authorized
to engage in business pursuant to the permit, license, exemption,
deduction, credit or other tax preference;
26. The examination of records and files of a person or entity
by the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control
pursuant to a court order by a magistrate in whose territorial
jurisdiction the person or entity resides, or where the Tax
Commission records and files are physically located. Such an order
may only be issued upon a sworn application by an agent of the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control,
certifying that the person or entity whose records and files are to
be examined is the target of an ongoing investigation of a felony
violation of the Uniform Controlled Dangerous Substances Act and that
information resulting from such an examination would likely be
relevant to that investigation. Any records or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control in the investigation
and prosecution of a felony violation of the Uniform Controlled
Dangerous Substances Act. Any such order issued pursuant to this
paragraph, along with the underlying application, shall be sealed and
not disclosed to the person or entity whose records were examined,
for a period of ninety (90) days. The issuing magistrate may grant
extensions of such period upon a showing of good cause in furtherance
of the investigation. Upon the expiration of ninety (90) days and
any extensions granted by the magistrate, a copy of the application
and order shall be served upon the person or entity whose records
were examined, along with a copy of the records or information
actually provided by the Tax Commission;
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27. The disclosure of information, as prescribed by this
paragraph, which is related to the proposed or actual usage of tax
credits pursuant to Section 2357.7 of this title, the Small Business
Capital Formation Incentive Act or the Rural Venture Capital
Formation Incentive Act. Unless the context clearly requires
otherwise, the terms used in this paragraph shall have the same
meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this
title. The disclosure of information authorized by this paragraph
shall include:
a. the legal name of any qualified venture capital
company, qualified small business capital company, or
qualified rural small business capital company,
b. the identity or legal name of any person or entity that
is a shareholder or partner of a qualified venture
capital company, qualified small business capital
company, or qualified rural small business capital
company,
c. the identity or legal name of any Oklahoma business
venture, Oklahoma small business venture, or Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or
d. the amount of funds invested in a qualified venture
capital company, the amount of qualified investments in
a qualified small business capital company or qualified
rural small business capital company and the amount of
investments made by a qualified venture capital
company, qualified small business capital company, or
qualified rural small business capital company;
28. The disclosure of specific information as required by
Section 46 of Title 62 of the Oklahoma Statutes;
29. The disclosure of specific information as required by
Section 205.5 of this title;
30. The disclosure of specific information as required by
Section 205.6 of this title;
31. The disclosure of information to the State Treasurer
necessary to implement Section 2368.27 of this title; or
32. The disclosure of specific information to the Oklahoma
Health Care Authority for purposes of determining eligibility for
current or potential recipients of assistance from the Oklahoma
Medicaid Program.
D. The Tax Commission shall cause to be prepared and made
available for public inspection in the office of the Tax Commission
in such manner as it may determine an annual list containing the name
and post office address of each person, whether individual,
corporate, or otherwise, making and filing an income tax return with
the Tax Commission.
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It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and publication of the list.
E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state tax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferrals or
other preferential tax treatments. The report shall be prepared not
later than October 1 of each even-numbered year and shall be
submitted to the Governor, the President Pro Tempore of the Senate
and the Speaker of the House of Representatives. The Tax Commission
may prepare and submit supplements to the report at other times of
the year if additional or updated information relevant to the report
becomes available. The report shall include, for the previous fiscal
year, the Tax Commission's best estimate of the amount of state
revenue that would have been collected but for the existence of each
such exclusion, deduction, credit, exemption, deferral or other
preferential tax treatment allowed by law. The Tax Commission may
request the assistance of other state agencies as may be needed to
prepare the report. The Tax Commission is authorized to require any
recipient of a tax incentive or tax expenditure to report to the Tax
Commission such information as requested so that the Tax Commission
may fulfill its obligations as required by this subsection. The Tax
Commission may require this information to be submitted in an
electronic format. The Tax Commission may disallow any claim of a
person for a tax incentive due to its failure to file a report as
required under the authority of this subsection.
F. It is further provided that the provisions of this section
shall be strictly interpreted and shall not be construed as
permitting the disclosure of any other information contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.
G. Unless otherwise provided for in this section, any violation
of the provisions of this section shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not exceeding One
Thousand Dollars ($1,000.00) or by imprisonment in the county jail
for a term not exceeding one (1) year, or by both such fine and
imprisonment, and the offender shall be removed or dismissed from
office.
H. Offenses described in Section 2376 of this title shall be
reported to the appropriate district attorney of this state by the
Tax Commission as soon as the offenses are discovered by the Tax
Commission or its agents or employees. The Tax Commission shall make
available to the appropriate district attorney or to the authorized
agent of the district attorney its records and files pertinent to
prosecutions, and such records and files shall be fully admissible as
evidence for the purpose of such prosecutions.
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Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1976, c. 123, § 1, emerg. eff. May 18, 1976; Laws 1979, c.
30, § 115, emerg. eff. April 6, 1979; Laws 1983, c. 206, § 2, eff.
July 1, 1984; Laws 1984, c. 103, § 1, eff. Nov. 1, 1984; Laws 1985,
c. 356, § 1, emerg. eff. July 30, 1985; Laws 1986, c. 218, § 3,
emerg. eff. June 9, 1986; Laws 1988, c. 281, § 13, operative July 1,
1988; Laws 1988, c. 330, § 16; Laws 1989, c. 249, § 5, emerg. eff.
May 19, 1989; Laws 1990, c. 339, § 2, emerg. eff. May 31, 1990; Laws
1991, c. 293, § 5, emerg. eff. May 30, 1991; Laws 1993, c. 275, § 10,
eff. July 1, 1993; Laws 1994, c. 80, § 1, eff. Sept. 1, 1994; Laws
1994, c. 385, § 1, eff. Sept. 1, 1994; Laws 1995, c. 1, § 23, emerg.
eff. March 2, 1995; Laws 1995, c. 325, § 1, eff. July 1, 1995; Laws
1996, c. 3, § 12, emerg. eff. March 6, 1996; Laws 1997, c. 304, § 1,
emerg. eff. May 29, 1997; Laws 1998, c. 385, § 1, eff. Nov. 1, 1998;
Laws 1999, c. 10, § 37, eff. July 1, 1999; Laws 2000, c. 314, § 4,
eff. July 1, 2000; Laws 2004, c. 303, § 2, eff. July 1, 2004; Laws
2005, c. 375, § 1, eff. Nov. 1, 2005; Laws 2006, c. 281, § 1, emerg.
eff. June 7, 2006; Laws 2007, c. 327, § 2, eff. Nov. 1, 2007; Laws
2008, c. 378, § 5, eff. July 1, 2008; Laws 2009, c. 426, § 2, eff.
Nov. 1, 2009; Laws 2010, c. 459, § 2, eff. July 1, 2010; Laws 2013,
c. 227, § 20, eff. Nov. 1, 2013; Laws 2015, c. 299, § 1, eff. Nov. 1,
2015; Laws 2016, c. 210, § 37, emerg. eff. April 26, 2016.
NOTE: Laws 1994, c. 278, § 5 repealed by Laws 1995, c. 1, § 40,
emerg. eff. March 2, 1995. Laws 1995, c. 274, § 52 repealed by Laws
1996, c. 3, § 25, emerg. eff. March 6, 1996. Laws 2015, c. 10, § 1
repealed by Laws 2016, c. 210, § 38, emerg. eff. April 26, 2016.
§68-205.1. Municipal sales tax - Report of certain information.
A. To determine the actual municipal sales tax liability of any
person engaged in any business upon which the Oklahoma excise tax is
levied, the Oklahoma Tax Commission, notwithstanding the provisions
of Section 205 of this title, shall, upon request, make available
reports to the governing body of each city or town that levies a
municipal sales tax, which shall include, but not be limited to, the
following information:
1. A full and complete list of the names and addresses of
persons who report doing business during the preceding calendar year
within the boundary of the city or town and who have a sales tax
permit;
2. A full and complete list of such persons specified in
paragraph 1 of this subsection who are more than sixty (60) days
delinquent in remitting sales tax levied pursuant to the provisions
of the Oklahoma Sales Tax Code;
3. A full and complete list of sales and use taxes collected by
such persons specified in paragraph 1 of this subsection during the
preceding calendar month;
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4. A full and complete list of taxpayers who were issued a sales
tax permit for a location in the city or town the previous calendar
month; and
5. A full and complete list of taxpayers who have advised the
Oklahoma Tax Commission that business at the location in the city or
town was stopped during the previous calendar month.
B. Upon request by the governing body of a city or town that
levies a municipal sales tax, the Oklahoma Tax Commission,
notwithstanding the provisions of Section 205 of this title, shall
release to such governing body such information or evidence necessary
to be used by such body to prosecute violations of municipal sales
tax ordinances. Such information or evidence shall include, but is
not limited to, the following:
1. Certified copies of sales tax permit applications;
2. Certified copies of sales tax permits;
3. Certified copies of sales tax reports; and
4. Names of Tax Commission employees who may be potential
witnesses for municipal prosecution purposes.
C. Except in reporting to the members of the governing body of
the city or town, no city or town official or employee shall divulge
any information gained from the Oklahoma Tax Commission except that
the municipal prosecutor and other municipal enforcement personnel
may receive all information necessary to enforce municipal sales tax
ordinances.
D. Any city or town official or employee found in violation of
this section shall be removed or dismissed from office in the manner
provided by law. In addition, any violation of the provisions of
this section shall constitute a misdemeanor and shall be punishable
by the imposition of a fine not exceeding One Thousand Dollars
($1,000.00) or by imprisonment in the county jail for a term not
exceeding one (1) year, or by both said fine and imprisonment.
Added by Laws 1976, c. 152, § 1, emerg. eff. May 28, 1976. Amended
by Laws 1984, c. 102, § 2, emerg. eff. April 5, 1984; Laws 1985, c.
95, § 1, eff. Jan. 1, 1986; Laws 1986, c. 218, § 4, emerg. eff. June
9, 1986; Laws 1988, c. 281, § 14, operative July 1, 1988; Laws 2010,
c. 412, § 9, eff. July 1, 2010.
§68-205.2. Claims by state agencies, municipal courts, district
courts, or public housing authorities against state income tax
refunds.
A. For purposes of this section, a "qualifying entity" shall
mean a:
1. State agency;
2. Municipal court;
3. District court;
4. Public housing authority operating pursuant to Section 1062
of Title 63 of the Oklahoma Statutes;
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5. District attorney seeking to collect unpaid court-ordered
monetary obligations; or
6. The designee of an entity described in paragraphs 1 through 5
of this subsection.
B. A qualified entity seeking to collect a debt, unpaid fines
and cost or final judgment of at least Fifty Dollars ($50.00) from an
individual who has filed a state income tax return may file a claim
with the Oklahoma Tax Commission requesting that the amount owed to
the qualified entity be deducted from any state income tax refund due
to that individual. The claim shall be filed electronically in a
form prescribed by the Tax Commission and shall contain information
necessary to identify the person owing the debt, including the full
name and Social Security number of the debtor.
1. Upon receiving a claim from a qualified entity, the Tax
Commission shall deduct the claim amount, plus collection expenses as
provided in this section, from the tax refund due to the debtor and
transfer the amount to the qualified entity. Provided, the Tax
Commission need not report available funds of less than Fifty Dollars
($50.00).
2. The qualified entity shall send notice to the debtor by
regular mail at the last-known address of the debtor as shown by the
records of the Tax Commission when seeking to collect a debt not
reduced to final judgment. The qualified entity shall send notice to
the judgment debtor or municipal court defendant by first-class mail
at the last-known address of the judgment debtor or municipal court
defendant as shown by the records of the Tax Commission when seeking
to collect a final judgment or unpaid municipal fines and cost. The
Tax Commission shall provide in an agreed electronic format to the
Department of Human Services the amount withheld by the Tax
Commission, the home address and the Social Security number of the
taxpayer. The notice shall state:
a. that a claim has been filed with the Tax Commission for
any portion of the tax refund due to the debtor or
municipal court defendant which would satisfy the debt,
unpaid municipal fines and cost, or final judgment in
full or in part,
b. the basis for the claim,
c. that the Tax Commission has deducted an amount from the
refund and remitted it to such qualified entity,
d. that the debtor or municipal court defendant has the
right to contest the claim by sending a written request
to the qualified entity for a hearing to protest the
claim, and if the debtor or municipal court defendant
fails to apply for a hearing within sixty (60) days
after the date of the mailing of the notice, the debtor
or municipal court defendant shall be deemed to have
waived his or her opportunity to contest the claim.
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Provided, if the claim was filed by the Department of
Human Services, the notice shall state that the debtor
must contest the claim by sending a written request to
the Department within thirty (30) days after the date
of the mailing of the notice, and
e. that a collection expense of five percent (5%) of the
gross proceeds owed to the qualified entity has been
charged to the debtor or municipal court defendant and
withheld from the refund.
3. If the qualified entity determines that a refund is due to
the taxpayer, the qualified entity shall reimburse the amount claimed
plus the five-percent collection expense to the taxpayer. The
qualified entity may request reimbursement of the two-percent
collection expense retained by the Tax Commission. Such request must
be made within ninety (90) days of reimbursement to the taxpayer. If
timely requested, the Tax Commission shall make such reimbursement to
the qualified entity within ninety (90) days of the request.
4. In the case of a joint return, the notice shall state:
a. the name of any taxpayer named in the return against
whom no debt, no unpaid fines and cost, or final
judgment is claimed,
b. the fact that a debt, unpaid municipal fines and cost,
or final judgment is not claimed against the taxpayer,
c. the fact that the taxpayer is entitled to receive a
refund if it is due regardless of the debt, municipal
fines and cost, or final judgment asserted against the
debtor or municipal court defendant,
d. that in order to obtain the refund due, the taxpayer
must apply, in writing, for a hearing with the
qualified entity named in the notice within sixty (60)
days after the date of the mailing of the notice.
Provided, if the claim was filed by the Department of
Human Services, the notice shall state that the
taxpayer must apply, in writing, for a hearing with the
Department within thirty (30) days after the date of
the mailing of the notice, and
e. if the taxpayer against whom no debt, no unpaid
municipal fines and cost, or final judgment is claimed
fails to apply in writing for a hearing within sixty
(60) days after the mailing of the notice, the taxpayer
shall have waived his or her right to a refund.
Provided, if the claim was filed by the Department of
Human Services, the notice shall state that if the
taxpayer fails to apply in writing for a hearing with
the Department within thirty (30) days after the date
of the mailing of the notice, the taxpayer shall have
waived his or her right to a refund.
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C. If the qualified entity asserting the claim receives a
written request for a hearing from the debtor or taxpayer against
whom no debt, no municipal fines and cost, or final judgment is
claimed, the qualified entity shall grant a hearing according to the
provisions of the Administrative Procedures Act. It shall be
determined at the hearing whether the claimed sum is correct or
whether an adjustment to the claim shall be made. Pending final
determination at the hearing of the validity of the debt, unpaid
fines and cost, or final judgment asserted by the qualified entity,
no action shall be taken in furtherance of the collection of the
debt, unpaid fines and cost, or final judgment. Appeals from actions
taken at the hearing shall be in accordance with the provisions of
the Administrative Procedures Act.
D. Upon final determination at a hearing, as provided for in
subsection C of this section, of the amount of the debt, unpaid fines
and cost, or final judgment, or upon failure of the debtor or
taxpayer against whom no debt, no unpaid fines and cost, or final
judgment is claimed to request such a hearing, the qualified entity
shall apply the amount of the claim to the debt owed. Any amounts
held by the qualified entity in excess of the final determination of
the debt and collection expense shall be refunded by the qualified
entity to the taxpayer. However, if the tax refund due is inadequate
to pay the collection expense and debt, unpaid fines and cost, or
final judgment, the balance due the qualified entity shall be a
continuing debt or final judgment until paid in full.
E. Upon receipt of a claim as provided in subsection A of this
section, the Tax Commission shall:
1. Deduct from the refund five percent (5%) of the gross
proceeds owed to the qualified entity, and distribute it by retaining
two percent (2%) and transferring three percent (3%) to the qualified
entity, as an expense of collection. The two percent (2%) retained
by the Tax Commission shall be deposited in the Oklahoma Tax
Commission Fund;
2. Transfer the amount of the claimed debt, unpaid fines and
cost, or final judgment or so much thereof as is available to the
qualified entity;
3. Notify the debtor in writing as to how the refund was
applied; and
4. Refund to the debtor any balance remaining after deducting
the collection expense and debt, unpaid fines and cost, or final
judgment.
F. The Tax Commission shall deduct from any state tax refund due
to a taxpayer the amount of delinquent state tax and penalty and
interest thereon, which such taxpayer owes pursuant to any state tax
law prior to payment of such refund.
G. The Tax Commission shall have first priority over all other
qualified entities, when the Tax Commission is collecting a debt,
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municipal court fines and cost, or final judgment pursuant to the
provisions of this section. Subsequent to the Tax Commission
priority, a claim filed by the Department of Human Services for the
collection of child support and spousal support shall have priority
over all other claims filed pursuant to this section. Priority in
multiple claims by other qualified entities pursuant to the
provisions of this section shall be in the order in time, in which
the Tax Commission receives the claim from the qualified entities
required by the provisions of subsection B of this section.
H. The Tax Commission shall prescribe or approve forms and
promulgate rules and regulations for implementing the provisions of
this section.
I. The information obtained by a qualified entity from the Tax
Commission pursuant to the provisions of this section shall be used
only to aid in collection of the debt, unpaid fines and cost, or
final judgment owed to the qualified entity. Disclosure of the
information for any other purpose shall constitute a misdemeanor.
Any employee of a qualified entity or person convicted of violating
this provision shall be subject to a fine not exceeding One Thousand
Dollars ($1,000.00) or imprisonment in the county jail for a term not
exceeding one (1) year, or both fine and imprisonment and, if still
employed by the qualified entity, shall be dismissed from employment.
J. The Tax Commission may employ the procedures provided by this
section in order to collect a debt owed to the Internal Revenue
Service if the Internal Revenue Service requires such procedure as a
condition to providing information to the Commission concerning
federal income tax.
K. The provisions of this section shall not apply to claims
filed under the provisions of Section 2906 or Section 5011 of this
title.
Added by Laws 1983, c. 206, § 1, eff. July 1, 1984. Amended by Laws
1986, c. 269, § 18, operative July 1, 1986; Laws 1989, c. 249, § 6,
eff. July 1, 1989; Laws 1992, c. 66, § 4, eff. July 1, 1992; Laws
1994, c. 29, § 1, eff. Sept. 1, 1994; Laws 1996, c. 146, § 1, eff.
Nov. 1, 1996; Laws 1997, c. 403, § 20, eff. Nov. 1, 1997; Laws 2003,
c. 472, § 3; Laws 2007, c. 135, § 1, eff. July 1, 2007; Laws 2009, c.
258, § 3, emerg. eff. May 22, 2009; Laws 2010, c. 419, § 1, eff. Nov.
1, 2010; Laws 2012, c. 240, § 1, eff. Nov. 1, 2012; Laws 2013, c. 15,
§ 80, emerg. eff. April 8, 2013; Laws 2013, c. 266, § 1, eff. Nov. 1,
2013; Laws 2015, c. 280, § 1, emerg. eff. May 8, 2015.
NOTE: Laws 1986, c. 218, § 5 repealed by Laws 1989, c. 249, § 49,
eff. July 1, 1989. Laws 2012, c. 256, § 1 repealed by Laws 2013, c.
15, § 81, emerg. eff. April 8, 2013. Laws 2013, c. 47, § 1 repealed
by Laws 2015, c. 280, § 2, emerg. eff. May 8, 2015.
§68-205.3. Repealed by Laws 2012, c. 256, § 2, eff. Nov. 1, 2012.
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§68-205.4. Repealed by Laws 2013, c. 227, § 21, eff. Nov. 1, 2013.
§68-205.5. Posting of delinquent taxes list on Internet - Notice -
Removal - Liability limitation.
A. The Oklahoma Tax Commission shall prepare and maintain a list
of all persons who owe delinquent taxes, including interest,
penalties, fees, and costs, in excess of Twenty-five Thousand Dollars
($25,000.00), which are unpaid for more than ninety (90) days after
all appeal rights have expired and for which a tax warrant has been
filed. The Tax Commission shall cause the list to be posted on the
Internet. After providing notice as described in subsection B of
this section, the Internet site shall list the name, address, type of
tax due, and amount of tax due, including interest, penalties, fees,
and costs for each person who has one of the delinquent taxpayer
accounts, and the Internet site shall contain a special page for
those persons who have the one hundred (100) largest delinquent
taxpayer accounts. Except as otherwise provided in this subsection,
the Tax Commission shall update the Internet site on a quarterly
basis. The Tax Commission shall not post on the Internet the name or
related information of any person who has entered into a pay plan
agreement with the Tax Commission and is in compliance with that
agreement, or the name or related information of any person who is
protected by a stay that is in effect under the Federal Bankruptcy
Code. The Internet posting shall be updated each business day to
comply with these prohibitions.
B. At least ninety (90) days before the disclosure of the name
of a delinquent taxpayer prescribed in subsection A of this section,
the Tax Commission shall mail a written notice to the delinquent
taxpayer at the taxpayer’s last known address informing the taxpayer
that the failure to cure the tax delinquency could result in the
taxpayer's name being included in a list of delinquent taxpayers that
is published on the Internet on the website maintained pursuant to
this section. If the delinquent tax has not been paid ninety (90)
days after the notice was mailed, and the taxpayer has not, since the
mailing of the notice, either entered into a written agreement with
the Tax Commission for payment of the delinquency or corrected a
default in an existing agreement to the satisfaction of the Tax
Commission, the Tax Commission may disclose the taxpayer information
in the list of delinquent taxpayers.
C. The name of a taxpayer shall be removed within fifteen (15)
days after the payment in full of the debt or entering into a pay
plan agreement with the Tax Commission.
D. Any disclosure made by the Tax Commission or its employees,
in a good faith effort to comply with the provisions of this section,
shall not be considered a violation of Section 205 of Title 68 of the
Oklahoma Statute or any other statute prohibiting disclosure of
taxpayer information and no liability whatsoever, civil or criminal,
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shall attach to any member of the Tax Commission or any employee
thereof for any error or omission in the disclosure of such
information.
Added by Laws 2009, c. 426, § 3, eff. Nov. 1, 2009.
§68-205.6. Disclosure of taxpayers who claimed tax credits.
A. The Oklahoma Tax Commission shall prepare and maintain a list
of all taxpayers who have claimed any tax credit authorized by any
provisions of state law and related to a tax administered by the Tax
Commission. The Office of Management and Enterprise Services shall
cause the list to be posted on the Internet through the Taxpayer
Transparency Act website in a format which is searchable and can be
exported in raw data form.
The Office of Management and Enterprise Services shall include
the name of each taxpayer who claimed a credit, the amount of such
credit and the specific statutory provision under which the credit
was claimed. The Internet list shall be updated not less than
monthly. The list shall include the identity of all taxpayers or
organizations having any part in the chain of custody or claim to the
credit or credits at any time during the credit's existence from the
initial time the credit is earned, through the time that the credit
is claimed on a tax return.
B. For the purposes of this section "tax credit" means a credit
against tax liability that is a credit administered by the Tax
Commission, excluding credits authorized under paragraphs 1 and 2 of
subsection B of Section 2357, Section 2357.4 and Sections 2357.29 and
2357.43 of this title.
C. In addition to the disclosure required by subsection A of
this section, for any tax credit that may be claimed by any person or
any lawfully recognized business entity pursuant to the provisions of
Sections 2357.62, 2357.63, 2357.73, and 2357.74 of this title, the
Oklahoma Tax Commission shall maintain a list of any person and any
such entity that may be able to claim any such credit as a result of
the allocation of tax credits based upon the pass-through federal
income tax treatment applicable to the entity that makes a qualified
investment, as such term is defined by paragraph 6 of Section 2357.61
of this title and paragraph 7 of Section 2357.72 of this title, in
either a qualified small business capital company or a qualified
rural small business capital company. For purposes of this
subsection, the Tax Commission shall determine the identity of such
persons and legal entities as of the December 31 date of the calendar
year during which the qualified investment is made.
Added by Laws 2010, c. 459, § 3, eff. July 1, 2010. Amended by Laws
2011, c. 273, § 2, eff. Jan. 1, 2012; Laws 2012, c. 304, § 533.
§68-206. Examinations or investigations.
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(a) In the administration of this article or any state tax law,
the Tax Commission may make, or cause to be made by its employees or
agents, an examination or investigation of the place of business, the
tangible personal property, equipment and facilities, and the books,
records, papers, vouchers, accounts and documents of any taxpayer. It
shall be the duty of every taxpayer and of every director, officer,
agent, or employee of every taxpayer to exhibit to the Tax
Commission, or to the employees or agents of such Tax Commission, the
place of business, the tangible personal property, equipment and
facilities, and the books, records, papers, vouchers, accounts and
documents of such taxpayer, and to facilitate any such examination or
investigation so far as it may be in his or her power so to do.
(b) When books, records, papers, vouchers, accounts or documents
of a taxpayer are in the possession of any person, firm or
corporation other than the taxpayer, any member of the Tax Commission
may compel by subpoena the production of such books, records, papers,
vouchers, accounts or documents by the party in possession for
inspection by employees or agents of the Tax Commission. Failure to
obey such a subpoena issued pursuant to this subsection shall be
punishable in the same manner as provided for in Section 243 of this
title.
(c) It shall be lawful for the Tax Commission, or for any
employee or agent of the Tax Commission by it designated, to take the
oath of any person signing any application, deposition, statement,
report or return required by the Tax Commission in the administration
of this article or of any state tax law.
Amended by Laws 1985, c. 356, § 2, emerg. eff. July 30, 1985.
§68-206.1. Tax Commission - Examinations and inspections outside
state - Compensation and expenses.
When it is deemed advisable by the Oklahoma Tax Commission to
examine or inspect the books and records of any taxpayer at a
location outside this state, the necessary and reasonable expenses of
the Tax Commission or its employees incurred in the examination or
inspection shall be reimbursed by the state. Reimbursements for all
necessary and reasonable expenses provided for in this section may
exceed the limits authorized by the State Travel Reimbursement Act.
Added by Laws 1983, c. 166, § 1, emerg. eff. June 6, 1983. Amended by
Laws 1983, c. 275, § 4, emerg. eff. June 24, 1983; Laws 1984, c. 193,
§ 1, emerg. eff. May 14, 1984; Laws 1998, c. 301, § 1, eff. Nov. 1,
1998.
§68-207. Hearings by Tax Commission.
(a) Incidental to the performance of its duties in the
administration of this article or any state tax law, any member of
the Tax Commission shall have the power to administer oaths, conduct
hearings, and compel by subpoena the attendance of witnesses and the
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production of any books, records, or papers of any person, firm, or
corporation. The Tax Commission may examine under oath any taxpayer,
and the directors, officers, agents and employees of any taxpayer, as
well as all other witnesses, relative to the business of such
taxpayer in respect of any matter incident to the administration of
this article or any state tax law.
(b) The fees of witnesses required by the Tax Commission to
attend any hearing shall be the same as those allowed to witnesses
appearing before district courts of this state. Such fees shall be
paid in the manner provided for the payment of other expenses
incident to the administration of this article or of any state tax
law.
(c) Any person desiring a hearing before the Tax Commission shall
file an application for such hearing, signed by himself or his duly
authorized agent, setting out therein:
(1) A statement of the nature of the tax, the amount thereof in
controversy, and the action of the Tax Commission complained of;
(2) A clear and concise assignment of each error alleged to have
been committed by the Tax Commission;
(3) The argument and legal authority upon which each assignment
of error is made; provided, that the applicant shall not be bound or
restricted in such hearing, or on appeal, to the arguments and legal
authorities contained and cited in said application;
(4) A statement of the relief sought by the taxpayer;
(5) A statement of the witnesses, so far as such witnesses are
then known to the taxpayer, showing their names and addresses, and,
if the taxpayer so desires, a request that such witnesses be
subpoenaed;
(6) A verification by such person, or his duly authorized agent,
that the statements and facts therein contained are true.
(d) If, in such application, the taxpayer shall request an oral
hearing, the Tax Commission shall grant such hearing and shall, by
written notice, advise the taxpayer of a date, which shall not be
less than ten (10) days from the date of mailing such written notice,
when such taxpayer may appear before the Tax Commission and present
argument and evidence, oral or written. The Tax Commission shall, as
soon as practicable thereafter, hold a hearing upon the matter and,
pursuant to such hearing, shall, as soon as practicable, make an
order confirming, modifying or vacating its prior determination, and
shall send to the parties appearing before it at such hearing
immediately a copy of such order.
Laws 1965, c. 414, § 2.
§68-208. Notice of hearing.
Any notice required by this article, or any state tax law, to be
given by the Tax Commission shall be in writing and may be served
personally or by mail. If mailed, it shall be addressed to the
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person to be notified at the last-known address of such person. As
used in this article or any other state tax law, "last-known address"
shall mean the last address given for such person as it appears on
the records of the division of the Tax Commission giving such notice,
or if no address appears on the records of that division, the last
address given as appears on the records of any other division of the
Tax Commission. If no such address appears, the notice shall be
mailed to such address as may reasonably be obtainable. If the Tax
Commission receives an address from the United States Postal Service
as a result of a change of address submitted to the United States
Postal Service, “last-known address” shall mean the address provided
to the United States Postal Service. The mailing of such notice
shall be presumptive evidence of receipt of the same by the person to
whom addressed. If the notice has been mailed as provided in this
section, failure of the person to receive such notice shall neither
invalidate nor be grounds for invalidating any action taken pursuant
thereto, nor shall such failure relieve any taxpayer from any tax or
addition to tax or any interest or penalties thereon.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1989, c. 249, § 7, eff. July 1, 1989; Laws 1993, c. 146, § 6;
Laws 2009, c. 426, § 4, emerg. eff. June 1, 2009.
§68-209. Notice to Commission's attorney before judicial hearing -
Costs.
No court of this state shall hear or try any case in which the
Tax Commission is a party plaintiff, defendant or intervener, until
it has been made to appear to said court that notice of the time and
place of said hearing has been given by registered or certified mail,
for at least ten (10) days, to the attorney of the Tax Commission.
Such notice shall be given by the court clerk and the cost thereof
taxed as court costs in the case.
Laws 1965, c. 414, § 2.
§68-210. Bonds.
(a) Any bond required to be filed to protect the State of
Oklahoma under this article or any state tax law must be approved by
the Tax Commission and shall be in such form and amount as such tax
law shall require, or, in the absence of a specific requirement, in
such amount as the Tax Commission may require, and shall be signed as
surety by a surety company authorized to transact business in this
state, or in lieu of such surety bond, there may be filed negotiable
bonds or other obligations of the United States or of the State of
Oklahoma of an actual market value not less than the amount fixed by
such law or by the Tax Commission.
(b) Notwithstanding the limitation as to the amount of any bond
fixed by any tax law requiring a bond, if a taxpayer:
1. Becomes delinquent in the payment of any tax;
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2. Tenders a check in payment of a tax which check is returned
unpaid because of insufficient funds; or
3. Is unable to furnish a financial statement that, in the
judgment of the Tax Commission, indicates ability to properly
discharge his liability for the tax currently accruing against such
taxpayer;
then, in any of such events, the Tax Commission shall demand an
additional bond of such taxpayer in an amount necessary, in the
judgment of the Tax Commission, to protect the revenue of the State.
Provided, that the penal sum of the additional bond and the bond
furnished under the provisions of the law requiring such bond, may
not, in total amount, exceed three (3) months' tax liability.
(c) If any bond or other instrument filed to protect the State
of Oklahoma under this article or any state tax law is revoked or
canceled by the issuer thereof, such issuer shall provide notice of
such revocation or cancellation to the Oklahoma Tax Commission by
certified mail.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1994, c. 278, § 6, eff. Sept. 1, 1994.
§68-211. Return of deposited money or securities to taxpayer.
When, to secure compliance with the provisions of this article or
any other State tax law, money or securities have been deposited with
the Tax Commission, and the Tax Commission is satisfied that the
taxpayer has complied with all tax laws and has, through independent
payment or through authorization granted by the taxpayer to the Tax
Commission to satisfy such tax indebtedness out of the money or
securities deposited, paid all taxes due the State, then the Tax
Commission shall return to the owner all or such part of the
deposited money or securities as remains after the liquidation of
taxpayer's tax liability.
If such money or securities have by the Tax Commission been
deposited with the State Treasurer, then the Tax Commission shall,
under the circumstances above stated, notify the Treasurer that the
money or securities, or such part as the Tax Commission shall direct,
should be returned to the owner.
Laws 1965, c. 414, § 2.
§68-212. Cancellation or refusal of license or permit.
A. The Tax Commission is authorized to cancel or to refuse the
issuance, extension or reinstatement of any license, permit or
duplicate copy thereof, under the provisions of any state tax law or
other law, to any person, firm, or corporation who shall be guilty
of:
1. Violation of any of the provisions of this article;
2. Violation of the provisions of any state tax law;
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3. Violation of the rules and regulations promulgated by the Tax
Commission for the administration and enforcement of any state tax
law;
4. Failure to observe or fulfill the conditions upon which the
license or permit was issued; or
5. Nonpayment of any delinquent tax or penalty.
B. Before any license, permit or duplicate copy thereof may be
canceled, or the issuance, reinstatement, or extension thereof
refused, the Tax Commission shall give the owner of such license or
permit, or applicant therefor, twenty (20) days' notice by registered
mail or certified mail with return receipt requested, of a hearing
before said Tax Commission, granting said person an opportunity to
show cause why such action should not be taken. If the notice has
been mailed as required by this section, failure of the person to
have received actual notice of the hearing shall neither invalidate
nor be grounds for invalidating any action taken at the hearing or
pursuant to the hearing.
C. Upon the cancellation of any license, permit, or duplicate
copy thereof by the Tax Commission, all accrued taxes and penalties,
although said taxes and penalties are not, at the time of the
cancellation, due and payable under the terms of the state tax law
imposing or levying such tax or taxes, shall become due and payable
concurrently with the cancellation of such license, permit or
duplicate copy thereof, and the licensee or permittee shall forthwith
make a report covering the period of time not covered by preceding
reports filed by said person and ending with the date of the
cancellation and shall pay all such taxes and penalties.
D. The Tax Commission may enter its order temporarily suspending
any license, permit or duplicate copy thereof pending a final hearing
before it on the subject of the cancellation of such license, permit
or duplicate copy thereof, and may give notice of such temporary
suspension at the same time that notice of its intention to cancel
any license, permit or duplicate copy or to refuse the issuance,
reinstatement or extension thereof is given, as provided by this
section. After being given notice of any such order of suspension,
it shall be unlawful for any person to continue to operate his
business under any such suspended license, permit or duplicate copy
thereof.
E. In the event any such person shall continue or threaten to
continue such unlawful operations after having received proper notice
of the suspension, cancellation, revocation, or refusal to issue,
extend, or reinstate his license, permit or duplicate copy thereof,
upon complaint of the Tax Commission such person shall be enjoined
from further operating or conducting such unlawful business. In all
cases where injunction proceedings are brought under this article,
the Commission shall not be required to furnish bond, and where
notice of suspension, cancellation, revocation, or refusal to issue,
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extend, or reinstate any license, permit or duplicate copy thereof
has been given in accordance with the provisions of this section, no
further notice shall be required before the issuance of a temporary
restraining order by the district court.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1989, c. 249, § 8, eff. July 1, 1989; Laws 2012, c. 357, § 4,
eff. July 1, 2012.
§68-212.1. Definitions.
A. As used in this section, the term:
1. “Automated sales suppression device” or “zapper” means a
software program, carried on a memory stick or removable compact
disc, accessed through an Internet link, or accessed through any
other means, that falsifies the electronic records of electronic cash
registers and other point-of-sale systems, including, but not limited
to, transaction data and transaction reports;
2. “Electronic cash register” means a device that keeps a
register or supporting documents through the means of an electronic
device or computer system designed to record transaction data for the
purpose of computing, compiling, or processing retail sales
transaction data in whatever manner;
3. “Phantom-ware” means a hidden, preinstalled, or installed-at-
a-later-time programming option embedded in the operating system of
an electronic cash register or hardwired into the electronic cash
register that can be used to create a virtual second till or may
eliminate or manipulate transaction records that may or may not be
preserved in digital formats to represent the true or manipulated
record of transactions in the electronic cash register;
4. “Transaction data” includes items purchased by a customer,
the price for each item, a taxability determination for each item, a
segregated tax amount for each of the taxed items, the amount of cash
or credit tendered, the net amount returned to the customer in
change, the date and time of the purchase, the name, address, and
identification number of the vendor, and the receipt or invoice
number of the transaction; and
5. “Transaction reports” means a report documenting, but not
limited to, the sales, tax collected, media totals, and discount
voids at an electronic cash register that is printed on cash register
tape at the end of a day or shift, or a report documenting every
action at an electronic cash register that is stored electronically.
B. It shall be unlawful to willfully and knowingly sell,
purchase, install, transfer, or possess in this state any automated
sales suppression device or zapper or phantom-ware.
C. Any person convicted of a violation of subsection B of this
section shall be guilty of a felony and shall be punished by
imprisonment of not less than one (1) nor more than five (5) years, a
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fine not to exceed One Hundred Thousand Dollars ($100,000.00), or
both.
D. In addition to the criminal penalty provided in subsection C
of this section, any person violating subsection B of this section
shall be subject to an administrative fine of Ten Thousand Dollars
($10,000.00). Administrative fines collected pursuant to the
provisions of this subsection shall be deposited to the General
Revenue Fund.
E. The Tax Commission shall immediately revoke the sales tax
permit of a person who violated subsection B of this section. A
person whose license is so revoked shall not be eligible to receive
another sales tax permit issued pursuant to Section 1364 of Title 68
of the Oklahoma Statutes for a period of ten (10) years.
Added by Laws 2012, c. 357, § 5, eff. July 1, 2012.
§68-213. Notice to taxpayer on final determination of tax liability
when security on file - Forfeiture of bond and collection of amount
due.
Where, as security for the payment of any state tax, the taxpayer
has filed with the Tax Commission a bond, the Tax Commission shall,
as soon as the tax has been finally determined to be due and payable,
notify the taxpayer and his surety or sureties of such fact by
sending to each of them, addressed to their respective post office
addresses last known to the Tax Commission, a letter by registered or
certified mail with return receipt requested.
If, within thirty (30) days after the mailing of such notice the
amount due remains unpaid, the bond posted shall be forfeited and the
Tax Commission shall proceed to collect the amount due thereunder,
together with any penalties and costs incident thereto. It shall not
be necessary to make the delinquent taxpayer a party to any suit that
may be brought against his surety or sureties.
Laws 1965, c. 414, § 2.
§68-214. Release of property from lien - Execution and recording.
The Oklahoma Tax Commission may release any property from the
lien of any warrant, certificate, judgment, or levy procured by it;
provided, payment shall be made to the Tax Commission of such sum as
it shall deem adequate consideration for such release, or a deposit
shall be made with the Tax Commission of such security as it shall
deem adequate to secure the payment of any debt evidenced by any such
warrant, certificate, judgment, or levy, the lien of which is sought
to be released. Provided further, however, the Tax Commission shall
issue such releases without the payment of any consideration in cases
where it determines that its warrant, certificate or judgment is
clouding the title of such property by reason of error in the
description of properties or similarity of names. Such release shall
be filed in the office of the county clerk in which the lien is filed
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or same shall be recorded in any office in which conveyances of real
estate may be recorded. Such release may be filed in the appropriate
office of the county clerk by the taxpayer or by the Tax Commission.
If such release is filed by the Tax Commission, the Tax Commission
shall collect the filing fee, as authorized by statute, along with
the other consideration for the release. The Tax Commission may file
the release in the appropriate office of the county clerk by
electronic means. Upon collection of the filing fees, the Tax
Commission shall transmit the revenue to the State Treasurer to be
deposited in the Oklahoma Tax Commission Fund. The revenue from the
fees collected shall be remitted monthly by the Tax Commission to the
appropriate county treasurers to be deposited in the appropriate fund
of the county clerk's department.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1986, c. 218, § 6, emerg. eff. June 9, 1986; Laws 1993, c.
146, § 7; Laws 2003, c. 472, § 4.
§68-215. Collection of taxes, penalties, in same manner as personal
debt.
(a) The taxes, fees, interest, and penalties imposed or levied by
any State tax law, or by this article, from the time the same shall
become due, may be collected in the same manner as a personal debt of
the taxpayer to the State of Oklahoma, recoverable in any court of
competent jurisdiction in any action in the name of the State of
Oklahoma, on relation of the Oklahoma Tax Commission. Such suit may
be maintained and prosecuted, and all proceedings taken, to the same
effect and extent as for the enforcement of a right of action for
debt. All provisional remedies available in such actions shall be,
and are hereby made, available to the State of Oklahoma in the
enforcement of the payment of any state tax.
(b) The proceeds of any judgment or order obtained hereunder
shall be paid to the Tax Commission.
Laws 1965, c. 414, § 2.
§68-216. Extension of time for filing return.
The Tax Commission, whenever in its judgment good cause exists
and pursuant to written request, may grant a reasonable extension for
the filing of any return required under any state tax law. The Tax
Commission shall keep a record of every extension granted with the
reason therefor. Except in the case of corporation income or
franchise tax returns, if franchise tax returns are filed at the same
time as the corporate income tax return, the time for filing any
return may not extend in the aggregate later than one-half (1/2) the
period of time for which any such return is filed under the
particular state tax law involved nor may any such extension extend
the date on which any payment of a state tax is due. An extension
not to exceed seven (7) months for the filing of corporation income
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or franchise tax returns, if franchise tax returns are filed at the
same time as the corporate income tax return, shall be allowed. Any
extension granted for the corporate income tax return shall be deemed
to cover the filing of a franchise tax return if a taxpayer elects to
file the franchise tax return at the same time as the corporate
income tax return. An extension shall not extend the date for
payment of the state income or franchise tax due. In case an
extension is granted, the taxpayer may file a tentative return on or
before the date when the return is required by any state tax law
showing the estimated amount of tax for the period covered by the
return and may pay the estimated tax or the first installment thereof
at the time of filing such tentative return and no interest or
penalty shall attach or be payable on sums so paid in due course.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1983, c. 275, § 5, emerg. eff. June 24, 1983; Laws 1997, c.
249, § 1, eff. Sept. 1, 1998.
§68-216.1. Repealed by Laws 1999, c. 390, § 16, emerg. eff. June 8,
1999.
§68-216.2. Tax amnesty program.
For the purpose of encouraging the voluntary disclosure and
payment of taxes owed to this state, the Oklahoma Tax Commission is
hereby authorized and directed to establish a tax amnesty program
during which penalties and one-half interest due on delinquent taxes
assessed by the Tax Commission and imposed pursuant to the provisions
of Title 68 of the Oklahoma Statutes and the Oklahoma Alcoholic
Beverage Control Act shall be waived, except as provided herein. The
amnesty program shall not include any penalties or interest that may
have been assessed pursuant to the Ad Valorem Tax Code or the Motor
Vehicle Excise Tax Code or penalties or interest assessed by an
agency other than the Tax Commission. A taxpayer shall be entitled
to a waiver of penalty and one-half interest due on taxes which are
delinquent prior to August 15, 2002, if the taxpayer voluntarily
files delinquent tax returns and pays the taxes and remaining
interest due during the amnesty period. The amnesty period shall
extend from August 15, 2002, through November 15, 2002. The waiver
of penalties and one-half interest shall apply to:
1. The under-reporting of tax liabilities;
2. The nonpayment of taxes; and
3. The nonreporting of tax liabilities.
The Tax Commission shall promulgate rules detailing the terms and
other conditions of this program.
The Tax Commission is authorized to expend necessary available
funds to publicly advertise this program and shall be exempt from the
provisions of Section 85.7 of Title 74 for the purpose of
implementing this section.
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Added by Laws 2002, c. 458, § 3, eff. July 1, 2002.
§68-216.3. Voluntary Compliance Initiative.
A. For the purpose of encouraging the voluntary disclosure and
payment of taxes owed to this state, the Oklahoma Tax Commission is
hereby authorized and directed, subject to the availability of funds,
to establish a Voluntary Compliance Initiative for eligible taxes, as
provided in this section. A taxpayer shall be entitled to a waiver
of penalty, interest and other collection fees or costs due on
eligible taxes if the taxpayer voluntarily files delinquent tax
returns and pays the taxes due during the compliance initiative. The
time in which a voluntary payment of tax liability may be made or the
taxpayer may enter into a payment program acceptable to the Tax
Commission for the payment of the unpaid taxes in full in the manner
and time established in a written payment program agreement between
the Tax Commission and the taxpayer under the Voluntary Compliance
Initiative is limited to the period beginning on September 14, 2015,
and ending on November 13, 2015.
B. Upon payment of the eligible taxes under the Voluntary
Compliance Initiative established, the Tax Commission shall abate and
not seek to collect any interest, penalties, collection fees, or
costs that would otherwise be applicable and release any liens
imposed. Provided, if the delinquent taxes are remitted to a debt
collection agency contracting with the Tax Commission pursuant to
Section 255 of this title, the debt collection agency contract fee
shall not be waived.
C. As used in this section, "eligible taxes" shall include the
following taxes that were due and payable for any tax period or
periods ending before January 1, 2015:
1. Mixed beverage tax levied pursuant to Section 576 of Title 37
of the Oklahoma Statutes;
2. Gasoline and diesel tax levied pursuant to Section 500.4 of
Title 68 of the Oklahoma Statutes;
3. Gross production and petroleum excise tax levied pursuant to
Sections 1001, 1101 and 1102 of Title 68 of the Oklahoma Statutes;
4. Sales tax levied pursuant to Section 1354 of Title 68 of the
Oklahoma Statutes;
5. Use tax levied pursuant to Section 1402 of Title 68 of the
Oklahoma Statutes;
6. Income tax levied pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes;
7. Withholding tax levied pursuant to Section 2385.2 of Title 68
of the Oklahoma Statutes; and
8. Privilege tax levied pursuant to Section 2370 of Title 68 of
the Oklahoma Statutes.
D. The Tax Commission shall promulgate rules detailing the terms
and other conditions of this program.
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E. The Tax Commission is authorized to expend necessary
available funds, including contracting with third parties, to
publicly advertise, assist in the collection of eligible taxes, and
administer the Voluntary Compliance Initiative and shall be exempt
from the provisions of Section 85.7 of Title 74 of the Oklahoma
Statutes for the purpose of implementing this section.
Added by Laws 2008, c. 395, § 1, emerg. eff. June 3, 2008. Amended
by Laws 2015, c. 332, § 1, emerg. eff. May 20, 2015.
§68-216.4. Voluntary Disclosure Initiative.
A. For the purpose of encouraging the voluntary disclosure and
payment of taxes owed to this state, the Oklahoma Tax Commission is
hereby authorized and directed to establish a Voluntary Disclosure
Initiative for eligible taxes, as provided in this section. A
taxpayer shall be entitled to a waiver of penalty, interest and other
collection fees due on eligible taxes if the taxpayer voluntarily
files delinquent tax returns and pays the taxes due during the
disclosure initiative. The time in which a voluntary payment of tax
liability may be made or the taxpayer may enter into a payment
program acceptable to the Tax Commission for payment of the unpaid
taxes in full in the manner and time established in a written payment
program agreement between the Tax Commission and the taxpayer under
the Voluntary Disclosure Initiative is limited to the period
beginning September 1, 2017, and ending November 30, 2017.
B. Upon payment of the eligible taxes under the Voluntary
Disclosure Initiative established, the Tax Commission shall abate and
not seek to collect any interest, penalties or collection fees that
would otherwise be applicable.
C. As used in this section, "eligible taxes" shall include the
following taxes that were due and payable for any tax period or
periods ending prior to entering into an agreement as provided in the
initiative except as provided in this subsection:
1. Mixed beverage tax levied pursuant to Section 576 of Title 37
of the Oklahoma Statutes;
2. Gasoline and diesel tax levied pursuant to Section 500.4 of
Title 68 of the Oklahoma Statutes;
3. Gross production and petroleum excise tax levied pursuant to
Sections 1001, 1101 and 1102 of Title 68 of the Oklahoma Statutes;
4. Sales tax levied pursuant to Section 1354 of Title 68 of the
Oklahoma Statutes;
5. Use tax levied pursuant to Section 1402 of Title 68 of the
Oklahoma Statutes;
6. Income tax levied pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes for tax periods ending prior to January 1, 2016;
and
7. Withholding tax levied pursuant to Section 2385.2 of Title 68
of the Oklahoma Statutes.
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D. To be eligible to participate in this initiative, taxpayers
must:
1. Not have outstanding tax liabilities other than those
reported pursuant to this initiative;
2. Not have been contacted by the Oklahoma Tax Commission, or
third party acting on behalf of the Commission, with respect to the
taxpayer's potential or actual obligation to file a return or make a
payment to the state;
3. Not have collected taxes from others, such as sales and use
taxes or payroll taxes, and not reported those taxes; and
4. Not have, within the preceding three (3) years, entered into
a voluntary disclosure agreement for the type of tax owed.
E. If the Tax Commission agrees with the proposed terms for
payment of the principal amount of tax due and owing, the penalties
and interest otherwise imposed by law upon the principal amount shall
be waived by operation of law and no further action by the Tax
Commission or by the taxpayer shall be required for the waiver of
such penalty and applicable interest.
F. The Tax Commission shall limit the period for which
additional taxes may be assessed to three (3) taxable years for
annually filed taxes or thirty-six (36) months for taxes that do not
have an annual filing frequency.
G. Taxpayers who meet all of the qualifications specified in
subsection D of this section, except those who have collected taxes
from others, such as sales and use taxes or payroll taxes, and not
reported those taxes, may enter into a modified voluntary disclosure
agreement.
H. The provisions of a modified voluntary disclosure agreement
shall be the same as a voluntary disclosure agreement as specified in
subsection E of this section; provided, the waiver of interest shall
not apply except as may be optionally granted at the discretion of
the Tax Commission, and the period for which taxes must be reported
and remitted or assessed is extended beyond the three-year or thirty-
six-month period provided in subsection F of this section to include
all periods in which tax has been collected but not remitted.
I. The waiver of penalty and interest provided herein is fully
effective provided taxpayer continues payment or collection and
remittance of applicable taxes, as required by law, for a period of
one (1) year after the tax period(s) for which taxes were paid
pursuant to this initiative.
J. The Tax Commission is authorized to expend necessary
available funds, including contracting with third parties, to
publicly advertise, assist in the collection of eligible taxes, and
administer the Voluntary Disclosure Initiative and shall be exempt
from the provisions of Section 85.7 of Title 74 of the Oklahoma
Statutes for the purpose of implementing this section.
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K. The Tax Commission is authorized to promulgate rules
detailing the terms and other conditions of this program.
Added by Laws 2017, c. 327, § 1, eff. July 1, 2017.
§68-216.5. Statutory voluntary compliance initiative – Participation
for previous participants limited.
No taxpayer shall be allowed to participate in a statutory
voluntary compliance initiative, enacted after the effective date of
this act, entitling taxpayers to a waiver of penalty, interest and/or
other collection fees due on unpaid taxes if the taxpayer has
previously participated in a similar initiative; provided:
1. Such limitation shall not preclude a taxpayer from seeking
relief under the provisions of Section 219.1 or 220 of Title 68 of
the Oklahoma Statutes; and
2. The Oklahoma Tax Commission, whenever in its judgment good
cause exists and pursuant to written request, may authorize a waiver
from the limitation provided in this section.
Added by Laws 2019, c. 318, § 1, eff. Nov. 1, 2019.
§68-217. Interest and penalties on delinquent taxes – Interest on
refunds.
A. If any amount of tax imposed or levied by any state tax law,
or any part of such amount, is not paid before such tax becomes
delinquent, there shall be collected on the total delinquent tax
interest at the rate of one and one-quarter percent (1 1/4%) per
month from the date of the delinquency until paid.
B. Interest upon any amount of state tax determined as a
deficiency, under the provisions of Section 221 of this title, shall
be assessed at the same time as the deficiency and shall be paid upon
notice and demand of the Oklahoma Tax Commission at the rate of one
and one-quarter percent (1 1/4%) per month from the date prescribed
in the state tax law levying such tax for the payment thereof to the
date the deficiency is assessed.
C. If any tax due under state sales, use, tourism, mixed
beverage gross receipts, or motor fuel tax laws, or any part thereof,
is not paid within fifteen (15) days after such tax becomes
delinquent a penalty of ten percent (10%) on the total amount of tax
due and delinquent shall be added thereto, collected and paid.
However, the Tax Commission shall not collect the penalty assessed if
the taxpayer remits the tax and interest within sixty (60) days of
the mailing of a proposed assessment or voluntarily pays the tax upon
the filing of an amended return.
D. If any tax due under any state tax law other than those
specified in subsection C of this section, or any part thereof, is
not paid within thirty (30) days after such tax becomes delinquent a
penalty of ten percent (10%) on the total amount of tax due and
delinquent shall be added thereto, collected and paid. However, the
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Tax Commission shall not collect the penalty assessed if the taxpayer
remits the tax and interest within sixty (60) days of the mailing of
a proposed assessment or voluntarily pays the tax upon the filing of
an amended return.
E. If any part of any deficiency, arbitrary or jeopardy
assessment made by the Tax Commission is based upon or occasioned by
the taxpayer's negligence or by the failure or refusal of any
taxpayer to file with the Tax Commission any report or return, as
required by this title, or by any state tax law, within ten (10) days
after a written demand for such report or return has been served upon
any taxpayer by the Tax Commission by letter, the Tax Commission may
assess and collect, as a penalty, twenty-five percent (25%) of the
amount of the assessment. For purposes of this subsection,
"negligence" shall mean the consistent understatement of income,
consistent understatement of receipts or a system of recordkeeping by
the taxpayer that consistently results in an inaccurate reporting of
tax liability.
F. If any part of any deficiency is due to fraud with intent to
evade tax, then fifty percent (50%) of the total amount of the
deficiency, in addition to such deficiency, including interest as
herein provided, shall be added, collected and paid.
G. All penalties or interest imposed by this title, or any state
tax law, shall be recoverable by the Tax Commission as a part of the
tax with respect to which they are imposed, the penalties bearing
interest as provided in this section for the tax, and all penalties
and interest shall be apportioned as provided for the apportionment
of the tax on which such penalties or interest are collected.
H. 1. Whenever an income tax refund is not paid to the taxpayer
within ninety (90) days after the return is filed or due, whichever
is later, with all documents as required by the Tax Commission,
entitling the taxpayer to a refund, then the Tax Commission shall pay
interest on the refund, at the same rate specified for interest on
delinquent tax payments. The payment of interest on refunds provided
for by this section shall apply to tax year 1987 and subsequent tax
years. The Tax Commission shall not be required to pay interest on
an income tax refund which is applied, in whole or in part, to a
prior year tax liability pursuant to Section 2385.17 of this title or
upon an income tax refund applied, in whole or in part, to satisfy a
debt owed to the Internal Revenue Service of the United States or to
a state agency, including the Oklahoma Tax Commission, as provided by
Section 205.2 of this title.
2. For tax returns filed after January 1, 2004, and before
January 2, 2010, whenever an income tax refund is not paid to the
taxpayer within the following number of days after the income tax
return is filed with all documents as required by the Tax Commission
or after the income tax return is due, whichever is later, entitling
the taxpayer to a refund, then the Tax Commission shall pay interest
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on the refund at the same rate specified for interest on delinquent
tax payments:
a. for returns filed electronically, thirty (30) days, and
b. for all other returns, one hundred fifty (150) days.
3. For tax returns filed after January 1, 2010, whenever an
income tax refund is not paid to the taxpayer within the following
number of days after the income tax return is filed with all
documents as required by the Tax Commission entitling the taxpayer to
a refund, then the Tax Commission shall pay interest on the refund at
the same rate specified for interest on delinquent tax payments:
a. for returns filed electronically, forty-five (45) days,
and
b. for all other returns, ninety (90) days.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1983, c. 13, § 1, emerg. eff. March 23, 1983; Laws 1988, c.
87, § 1, operative July 1, 1988; Laws 1988, c. 204, § 9, operative
July 1, 1988; Laws 1989, c. 249, § 9, eff. July 1, 1989; Laws 1990,
c. 339, § 12, eff. July 1, 1990; Laws 1991, c. 342, § 8, emerg. eff.
June 15, 1991; Laws 1993, c. 146, § 8; Laws 1998, c. 385, § 2, eff.
Nov. 1, 1998; Laws 2003, c. 472, § 5; Laws 2004, c. 535, § 1, eff.
Nov. 1, 2004; Laws 2009, c. 156, § 1, eff. Jan. 1, 2010; Laws 2014,
c. 274, § 1, eff. Nov. 1, 2014; Laws 2016, c. 28, § 1, eff. July 1,
2016.
§68-218. Remittance of taxes and fees - Dishonored checks - ATMs in
Commission facilities.
A. All remittances of taxes and fees under any state tax law or
this Code, shall be made payable to the Oklahoma Tax Commission, at
Oklahoma City, Oklahoma, by bank draft, check, cashier's check, money
order, money, electronic funds transfer or nationally recognized
credit or debit card. The Tax Commission shall issue its receipt for
cash or money payment to the taxpayer. If payment is made by a
credit or debit card, the Tax Commission may add an amount equal to
the amount of the service charge incurred as a service charge for the
acceptance of such card. For purposes of this paragraph, "nationally
recognized credit or debit card" means any instrument or device,
whether known as a credit card, credit plate, charge plate, debit
card, or by any other name, issued with or without fee by an issuer
for the use of the cardholder in obtaining goods, services or
anything of value on credit which is accepted by over one thousand
merchants in this state. The Tax Commission shall determine which
nationally recognized cards will be accepted. However, the Tax
Commission must ensure that no loss of state revenue will occur by
the use of such card. The Tax Commission shall promulgate rules to
allow for the orderly implementation of payment by credit or debit
cards.
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B. No remittance other than cash shall be final discharge of
liability due the Tax Commission unless and until it shall have been
paid in cash. All money collected shall be deposited with the State
Treasurer to be distributed as provided by the state tax law under
which the tax was levied.
C. There shall be assessed, in addition to any other penalties
provided for by law, an administrative service fee of Twenty-five
Dollars ($25.00) for each check returned to the Tax Commission or any
agent thereof by reason of the refusal of the bank upon which such
check was drawn to honor the same. However, the fee provided in this
subsection shall not be assessed for any check returned because of
"insufficient funds" unless the check has been presented to the bank
two times and payment declined by the bank.
D. Upon the return of any check by reason of the refusal of the
bank upon which such check was drawn to honor the same, the Tax
Commission may file a bogus check complaint with the appropriate
district attorney who shall refer the complaint to the Bogus Check
Restitution Program established by Section 111 of Title 22 of the
Oklahoma Statutes. Funds collected through the program after
collection of the fee authorized by Section 114 of Title 22 of the
Oklahoma Statutes for deposit in the Bogus Check Restitution Program
Fund in the county treasury shall be transmitted to the Tax
Commission and credited to the tax liability for which the returned
check was drawn and to the administrative service fee provided by
this section.
E. Any remittances for registration fees, license plates or
decals or excise taxes as required by the provisions of the Oklahoma
Vehicle License and Registration Act and Sections 2101 through 2110
of this title may be paid by a nationally recognized credit or debit
card pursuant to the provisions of Section 1144 of Title 47 of the
Oklahoma Statutes.
F. For the convenience of taxpayers, the Tax Commission, through
a contract between the State Treasurer and a financial institution,
is authorized to place an automated teller machine in any facility
owned or leased by the State and occupied by the Tax Commission.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
Laws 1968, c. 50, § 1, emerg. eff. March 18, 1968; Laws 1985, c. 179,
§ 69, operative July 1, 1985; Laws 1985, c. 356, § 3, emerg. eff.
July 30, 1985; Laws 1986, c. 218, § 7, emerg. eff. June 9, 1986; Laws
1989, c. 284, § 4, emerg. eff. May 22, 1989; Laws 1991, c. 75, § 2,
eff. Sept. 1, 1991; Laws 1993, c. 146, § 9; Laws 2006, c. 327, § 1,
eff. July 1, 2006; Laws 2007, c. 155, § 3, eff. Nov. 1, 2007.
§68-218.1. False or bogus check - Penalties.
A. Any person who shall knowingly give a false or bogus check,
as defined in this section, of a value less than Five Hundred Dollars
($500.00) in payment or remittance of any taxes, fees, penalties, or
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interest levied pursuant to any state tax law shall be, upon
conviction, guilty of a misdemeanor punishable by a fine not to
exceed One Thousand Dollars ($1,000.00), or by imprisonment in the
county jail for a term of not more than one (1) year, or by both such
fine and imprisonment. If the value of the false or bogus check
referred to in this subsection is Five Hundred Dollars ($500.00) or
more, such person shall be, upon conviction, guilty of a felony
punishable by a fine not to exceed Five Thousand Dollars ($5,000.00)
or by imprisonment in the State Penitentiary for a term of not more
than ten (10) years or by both such fine and imprisonment.
B. Any person who shall knowingly give two or more false or
bogus checks, the total sum of which is Five Hundred Dollars
($500.00) or more, even though each separate instrument is written
for less than Five Hundred Dollars ($500.00), in payment or
remittance of any taxes, fees, penalties, or interest levied pursuant
to any state tax law shall be, upon conviction, guilty of a felony
punishable by a fine not to exceed Five Thousand Dollars ($5,000.00)
or by imprisonment in the State Penitentiary for a term of not more
than ten (10) years, or by both such fine and imprisonment.
C. For purposes of this section, the term “false or bogus check
or checks” shall include any check or order which is not honored on
account of insufficient funds of the maker to pay same, or because
the check or order was drawn on a closed account or on a nonexistent
account. The making, drawing, uttering or delivering of a check or
order, the payment of which is refused by the drawee, shall be prima
facie evidence of the knowledge of insufficient funds, a closed
account, or a nonexistent account with such bank or other depository
drawee. Said term shall not include any check or order not honored
on account of insufficient funds if the maker or drawer shall pay the
drawee thereof the amount due within five (5) days from the date the
same is presented for payment nor any check or order that is not
presented for payment within thirty (30) days after same is delivered
and accepted.
Added by Laws 1986, c. 218, § 8, emerg. eff. June 9, 1986. Amended
by Laws 1997, c. 133, § 551, eff. July 1, 1999; Laws 1999, 1st
Ex.Sess., c. 5, § 401, eff. July 1, 1999; Laws 2001, c. 437, § 32,
eff. July 1, 2001.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 551 from July 1, 1998, to July 1, 1999.
§68-219. Compounding, settlement or compromise of controversies,
judicial approval in certain cases.
The Oklahoma Tax Commission is authorized to enter into an
agreement to compound, settle or compromise any controversy relating
to taxes collectible by the Tax Commission, or any admitted or
established tax liability as to any tax collectible under any State
Law in the following cases:
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(1) In cases of controversy arising over the amount of tax due,
or,
(2) In case of inability to pay, resulting from insolvency of
the taxpayer.
In any case where the amount of any tax liability which has been
admitted or established exceeds Twenty-five Thousand Dollars
($25,000.00), no agreement to compound, settle or compromise such tax
liability shall be effective until the settlement thereof shall have
been approved by judgment of one of the judges of the district court
of Oklahoma County, after a full hearing thereon.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 2005, c. 362, § 1, eff. Nov. 1, 2005; Laws 2018, c. 66, § 2,
eff. July 1, 2018.
§68-219.1. Abatement of tax liability and interest and penalties
accruing thereto - Settlement agreement - Considerations.
A. In accordance with the provisions of the amendment to Section
5 of Article X of the Oklahoma Constitution as set forth in Senate
Joint Resolution No. 32 of the 2nd Session of the 48th Oklahoma
Legislature, the Oklahoma Tax Commission is hereby authorized to
abate all or any portion of tax liability and interest and penalties
accruing thereto, pursuant to a settlement agreement entered into
with a taxpayer, if the Tax Commission finds, by clear and convincing
evidence, that:
1. Collection of the tax liability and interest and penalties
accruing thereto would reasonably result in the taxpayer declaring
bankruptcy;
2. The tax is uncollectible due to insolvency of the taxpayer
resulting from factors beyond the control of the taxpayer or for
other similar cause beyond the control of the taxpayer;
3. The tax liability is attributable to actions of a person
other than the taxpayer and it would be inequitable to hold the
taxpayer liable for the tax liability; or
4. In cases of nonpayment of trust fund taxes, the taxes were
not collected by the taxpayer from its customer and the taxpayer had
a good faith belief that collection of the taxes was not required.
B. The Tax Commission may consider the following circumstances,
in addition to any other aggravating or mitigating circumstances, in
determining whether or not to enter into an agreement pursuant to the
provisions of this section:
1. Whether the taxpayer has made efforts in good faith to comply
with the tax laws of this state;
2. Whether the taxpayer has benefited from nonpayment of the
tax; and
3. Involvement of the taxpayer in economic activity from which
the tax liability originated.
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C. All agreements entered into pursuant to the provisions of
this section shall provide for the collection of all or a portion of
the tax liability if at all possible, and in all cases collection of
the tax liability shall take precedence over collection of interest
and penalties.
D. Any abatement of tax liability authorized by this section
shall only be granted by a unanimous vote of the members of the Tax
Commission. The decision of the members of the Tax Commission in
denying the abatement of any tax liability pursuant to this section
shall be final and no right of appeal to any court may be taken from
such decision.
E. In any case where the amount of tax liability to be abated
pursuant to an agreement entered into pursuant to the provisions of
this section exceeds Twenty-five Thousand Dollars ($25,000.00), the
agreement shall not become effective until it shall have been
approved by one of the judges of the district court of Oklahoma
County, after a full hearing thereon. Such judge shall be assigned
to the matter by the chief judge on a rotating basis.
F. The provisions of this section shall not be construed to
grant any legal right to any taxpayer for the abatement of any tax
liability. A decision to grant abatement of tax liability pursuant
to the provisions of this section shall be a discretionary act within
the authority of the members of the Tax Commission.
G. No appointed or elected official shall be eligible to seek
relief pursuant to any of the provisions of this section.
H. The Tax Commission shall promulgate rules to implement the
provisions of this section.
Added by Laws 2002, c. 162, § 1, emerg. eff. April 30, 2002. Amended
by Laws 2005, c. 362, § 2, eff. Nov. 1, 2005; Laws 2018, c. 66, § 3,
eff. July 1, 2018.
§68-220. Waiver or remission of interest or penalties - Voluntary
disclosure agreements.
A. The interest or penalty or any portion thereof ordinarily
accruing by reason of a taxpayer's failure to file a report or return
or failure to file a report or return in the correct form as required
by any state tax law or by this Code or to pay a state tax within the
statutory period allowed for its payment may be waived or remitted by
the Oklahoma Tax Commission or its designee provided the taxpayer's
failure to file a report or return or to pay the tax is
satisfactorily explained to the Tax Commission or such designee, or
provided such failure has resulted from a mistake by the taxpayer of
either the law or the facts subjecting him to such tax, or inability
to pay such interest or penalty resulting from insolvency.
B. Except as otherwise provided by subsections C and D of this
section, the waiver or remission of all or any part of any such
interest or penalties in excess of Twenty-five Thousand Dollars
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($25,000.00) shall not become effective unless approved by one of the
judges of the district court of Oklahoma County after a full hearing
thereon.
The application for the approval of such waiver or remission
shall be filed in the office of the court clerk of the court at least
twenty (20) days prior to the entry of the order of the judge finally
approving or disapproving the waiver or remission. The order so
entered shall be a final order of the district court of the county.
C. Taxpayers who (1) do not have outstanding tax liabilities
other than those reported pursuant to a voluntary disclosure
agreement, (2) have not been contacted by the Oklahoma Tax Commission
with respect to the taxpayer's potential or actual obligation to file
a return or make a payment to the state, (3) have not collected taxes
from others, such as sales and use taxes or payroll taxes, and not
reported those taxes, and (4) have not within the preceding three (3)
years entered into a voluntary disclosure agreement for the type of
tax owed may enter into a voluntary disclosure agreement with the Tax
Commission in order to report a state tax liability owed by the
taxpayer. Taxpayers who have collected taxes from others, such as
sales and use taxes or payroll taxes, and not reported those taxes,
may enter into a modified voluntary disclosure agreement as is
provided in subsection F of this section provided that they meet all
the other requirements provided in this subsection. If the Tax
Commission agrees with the proposed terms for payment of the
principal amount of tax due and owing, the penalty otherwise imposed
by law upon the principal amount shall be waived by operation of law
and no further action by the Tax Commission or by the taxpayer shall
be required for the waiver of such penalty amount and fifty percent
(50%) of the otherwise applicable interest amount shall be waived by
operation of law and no further action by the Tax Commission or by
the taxpayer shall be required for the waiver of such interest
amount.
D. The Tax Commission shall limit the period for which
additional taxes may be assessed (the lookback period) to three (3)
taxable years for annually filed taxes or thirty-six (36) months for
taxes that do not have an annual filing frequency.
E. Voluntary disclosure agreements may be denied or nullified by
the Tax Commission if a taxpayer's failure to report or pay is
determined to be the result of a pattern of intentional or gross
negligence regarding compliance with the laws.
F. Taxpayers who meet all of the qualifications specified in
subsection C of this section, except those who have collected taxes
from others, such as sales and use taxes or payroll taxes, and not
reported those taxes, may enter into a modified voluntary disclosure
agreement.
G. The provisions of a modified voluntary disclosure agreement
shall be the same as a voluntary disclosure agreement as specified in
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subsection C of this section, except that (1) waiver of interest
shall not apply except as may be optionally granted at the discretion
of the Tax Commission, and (2) the period for which taxes must be
reported and remitted is extended beyond the three-year or thirty-
six-month period provided in subsection C of this section to include
all periods in which tax has been collected but not remitted.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1989, c. 249, § 10, eff. July 1, 1989; Laws 1993, c. 146, §
10; Laws 1997, c. 294, § 9, eff. July 1, 1997; Laws 2005, c. 362, §
3, eff. Nov. 1, 2005; Laws 2017, c. 310, § 1, eff. Nov. 1, 2017.
§68-221. Reports or returns by taxpayer.
A. If any taxpayer shall fail to make any report or return as
required by any state tax law, the Oklahoma Tax Commission, from any
information in its possession or obtainable by it, may determine the
correct amount of tax for the taxable period. If a report or return
has been filed, the Tax Commission shall examine such report or
return and make such audit or investigation as it may deem necessary.
If, in cases where no report or return has been filed, the Tax
Commission determines that there is a tax due for the taxable period,
or if, in cases where a report or return has been filed, the Tax
Commission shall determine that the tax disclosed by such report or
return is less than the tax disclosed by its examination, it shall in
writing propose the assessment of taxes or additional taxes, as the
case may be, and shall mail a copy of the proposed assessment to the
taxpayer at the taxpayer’s last-known address. Proposed assessments
made in the name of the "Oklahoma Tax Commission" by its authorized
agents shall be considered as the action of the Tax Commission.
B. Any assessment, correction or adjustment made as a result of
an office audit shall be presumed to be the result of an audit of the
report or return only, and such office audit shall not be deemed a
verification of any item in the report or return unless the item
shall have been made the subject of a hearing before the Tax
Commission, and the correctness and amount of such item determined at
such hearing; and such office audit shall not preclude the Tax
Commission from subsequently making further adjustment, correction or
assessment as a result of a field audit of the books and records of
the taxpayer, wherever located, or upon disclosures from any source
other than the return. In cases where no report or return has been
filed, the assessment of the tax on any information available shall
in no event preclude the assessment at any time on subsequently
disclosed information.
C. Within sixty (60) days after the mailing of the aforesaid
proposed assessment, the taxpayer may file with the Tax Commission a
written protest under oath, signed by the taxpayer or the taxpayer’s
duly authorized agent, setting out therein:
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1. A statement of the amount of deficiency as determined by the
Tax Commission, the nature of the tax and the amount thereof in
controversy;
2. A clear and concise assignment of each error alleged to have
been committed by the Tax Commission;
3. The argument and legal authority upon which each assignment
of error is made; provided, that the applicant shall not be bound or
restricted in such hearing, or on appeal, to the arguments and legal
authorities contained and cited in the application;
4. A statement of relief sought by the taxpayer; and
5. A verification by the taxpayer or the taxpayer’s duly
authorized agent that the statements and facts contained therein are
true.
D. If in such written protest the taxpayer shall request an oral
hearing, the Tax Commission shall grant such hearing, and shall, by
written notice, advise the taxpayer of a date, which shall not be
less than ten (10) days from the date of mailing of such written
notice, when such taxpayer may appear before the Tax Commission and
present arguments and evidence, oral or written, in support of the
protest. Hearings shall be held as soon as practicable. In the
event an oral hearing is not requested, the Tax Commission shall
proceed without further notice to examine into the merits of the
protest and enter an order in accordance with its findings. Upon
request of any taxpayer and upon proper showing that the principle of
law involved in the assessment of any tax is already pending before
the courts for judicial determination, the taxpayer, upon agreement
to abide by the decision of the court, may pay the tax so assessed
under protest and such protest shall be resolved in accordance with
the agreement to abide.
E. If the taxpayer fails to file a written protest within the
sixty-day period herein provided for or within the period as extended
by the Tax Commission, or if the taxpayer fails to file the notice
required by Section 226 of this title within thirty (30) days from
the date of mailing of an assessment, then the proposed assessment,
without further action of the Tax Commission, shall become final and
absolute. A taxpayer who fails to file a protest to an assessment of
taxes within the time period prescribed by this section may, within
one (1) year of the date the assessment becomes final, request the
Tax Commission to adjust or abate the assessment if the taxpayer can
demonstrate, by a preponderance of the evidence, that the assessment
or some portion thereof is clearly erroneous. If the Tax Commission
determines that the proper showing has been made, the assessment or
portion thereof determined to be clearly erroneous shall be deemed
not to have become final and absolute. No hearing to adjust or abate
a clearly erroneous assessment may be granted after the Tax
Commission's denial of such a request. An order of the Tax
Commission denying a taxpayer's request to adjust or abate an
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assessment alleged to be clearly erroneous is not an appealable order
under Section 225 of this title. No proceeding instituted by the Tax
Commission to collect a tax liability may be stayed because of a
request made by a taxpayer to adjust or abate an assessment alleged
to be clearly erroneous.
F. The Tax Commission may in its discretion extend the time for
filing a protest for any period of time not to exceed an additional
ninety (90) days. Any extension granted shall not extend the period
of time within which the notice required by Section 226 of this title
may be filed.
G. Within a reasonable time after the hearing herein provided
for, the Tax Commission shall make and enter an order in writing in
which it shall set forth the disposition made of the protest and a
copy of such order shall forthwith be mailed to the taxpayer. The
order shall contain findings of fact and conclusions of law. After
removing the identity of the taxpayer, the Tax Commission shall make
the order available for public inspection and shall publish those
orders the Tax Commission deems to be of precedential value. The
taxpayer may within the time and in the manner provided for by
Section 225 of this title, appeal to the Supreme Court, but in the
event the taxpayer fails to so proceed, the order shall within thirty
(30) days from the date a certified copy thereof is mailed to the
taxpayer, become final. The provisions of Section 226 of this title
shall not apply where a proposed assessment or an assessment of taxes
has been permitted to become final.
H. In all instances where the proposed assessment or the
assessment of taxes or additional taxes has been permitted to become
final, a certified copy of the assessment may be filed in the office
of the county clerk of any county in this state, and upon being so
filed, the county clerk shall enter same upon the judgment docket in
the same manner as provided for in connection with judgments of
district courts. When an assessment is so filed and docketed, it
shall have the same force and be subject to the same law as a
judgment of the district court, and accordingly it shall constitute a
lien on any real estate of the taxpayer located in the county wherein
filed; and execution may issue and proceedings in aid of execution
may be had the same as on judgments of district courts. Such lien is
hereby released and extinguished upon the payment of such assessment,
or, except as otherwise provided herein, upon the expiration of ten
(10) years after the date upon which the assessment was filed in the
office of the county clerk; provided, the Tax Commission may, prior
to the release and extinguishment of such lien, refile the assessment
one time in the office of the county clerk. An assessment so refiled
shall continue the lien until payment of the assessment, or upon the
expiration of ten (10) years after the date upon which the assessment
was refiled in the office of the county clerk. The remedies provided
in this subsection shall be in addition to other remedies provided by
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law. All active liens evidenced by an assessment filed with a county
clerk’s office prior to November 1, 1989, shall be released and
extinguished if the assessment is not refiled prior to November 1,
2001.
I. In order to make more definite the intention of the
Legislature in connection with the applicability or lack of
applicability of the refund provisions of the tax statutes to those
treating with proposed assessments and assessments that have become
final, the Legislature being cognizant of the fact that such intent
has been questioned, it is declared to be the intent of the
Legislature that the refund provisions shall be without application
to taxes where the amount thereof has been determined by an
assessment, other than an assessment designated as an "office audit",
that has become final.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1987, c. 236, § 199, emerg. eff. July 20, 1987; Laws 1989, c.
249, § 11, eff. July 1, 1989; Laws 1999, c. 407, § 1, eff. Nov. 1,
1999; Laws 2002, c. 458, § 1, eff. July 1, 2002.
§68-221.1. Date of postmark deemed to be date of delivery or of
payment.
A. For any return, claim, statement, or other document required
to be filed or any payment required to be made within a prescribed
period or on or before a prescribed date under authority of any
provision of a tax law of this state, the date of the postmark
stamped on the cover in which the return, claim, statement, or other
document or payment is mailed shall be deemed to be the date of
delivery or the date of payment, as the case may be.
B. The provisions of this section shall apply only if:
1. The postmark date falls within the prescribed period or on or
before the prescribed date for filing, including any extension, of
the return, claim, statement, or other document or for making
payment, including any extension granted for making such payment; and
2. The return, claim, statement, or other document or payment
was, within the prescribed period or on or before the prescribed date
for filing, deposited in the mail in the United States in an envelope
or other appropriate wrapper, postage prepaid, properly addressed to
the Oklahoma Tax Commission, agency, officer, or office with which
the return, claim, statement, or other document is required to be
filed, or to which the payment is required to be made.
C. The provisions of this section shall apply in the case of
postmarks not made by the United States Postal Service only and to
the extent provided by rules or regulations prescribed by the Tax
Commission.
D. For purposes of this section, if any return, claim,
statement, or other document or payment, is sent by United States
registered mail, the registration shall be prima facie evidence that
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the return, claim, statement, or other document was delivered to the
Tax Commission, agency, officer, or office to which addressed, and
the date of registration shall be deemed the postmark date. The Tax
Commission is authorized to provide by rules or regulations the
extent to which the foregoing provisions of this subsection with
respect to prima facie evidence of delivery and the postmark date
shall apply to certified mail.
E. The provisions of this section shall not apply with respect
to the filing of a document in, or the making of payment to, any
court, or to currency or other medium of payment unless actually
received and accounted for, or returns, claims, statements or other
documents or payments which are required under any provision of a tax
law or rules of this state to be delivered by any method other than
by mailing.
F. Any reference in this section to the United States mail shall
be treated as including a reference to any designated delivery
service, and any reference in this section to a postmark by the
United States Postal Service shall be treated as including a
reference to any date recorded or marked as described in this
subsection by a designated delivery service. For purposes of this
section, the term “designated delivery service” means a delivery
service provided by a trade or business if the service is designated
by a rule of the Tax Commission for purposes of this section. The
Tax Commission may designate a delivery service under the preceding
sentence only if the Tax Commission determines that the service is
available to the general public, is at least as timely and reliable
on a regular basis as the United States mail, records electronically
to its data base kept in the regular course of its business or marks
on the cover in which any item referred to in this section is to be
delivered, the date on which the item was given to the service for
delivery, and meets all other criteria prescribed by the Tax
Commission. The Tax Commission may provide a rule similar to the
rule stated in the first sentence of this subsection with respect to
any service provided by a designated delivery service which is
substantially equivalent to United States registered or certified
mail.
Added by Laws 1999, c. 293, § 25, eff. Nov. 1, 1999.
§68-222. Procedure on default of taxpayer in enumerated matters.
(a) If any taxpayer shall fail or refuse to make any report or
return as required by any state tax law, or shall fail or refuse to
permit an examination of its books, records or papers, or to appear
and answer questions within the scope of such investigation relating
to any state tax, the Tax Commission may apply to the district court
of the county wherein the taxpayer resides, or to any judge thereof,
for an order requiring such taxpayer to make such report or return,
or requiring the taxpayer, his agents or employees, to appear to
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answer such questions or permit such examination; and the court, or
any Judge thereof, shall thereupon issue an order, upon such
reasonable notice as shall be prescribed thereon, to be served upon
said taxpayer or the agent of such taxpayer directing it to appear
and testify and to produce such books, records and papers as may be
required.
(b) Any person, or any member of any firm or association, failing
to comply with such order, shall be guilty of contempt, and shall be
punished as provided by law in cases of contempt; and the district
court of the county in which such person resides shall have
jurisdiction of contempt cases arising under this Section.
Laws 1965, c. 414, § 2.
§68-223. Limitation of time for assessment of taxes - Extension
agreements - False or fraudulent or failure to file report or return.
A. No assessment of any tax levied under the provisions of any
state tax law except as provided in this section, shall be made after
the expiration of three (3) years from the date the return was
required to be filed or the date the return was filed, whichever
period expires the later, and no proceedings by tax warrant or in
court without the previous assessment for the collection of such tax
shall be begun after the expiration of such period. No assessment
shall be required if a report or return, signed by the taxpayer, was
filed and the liability evidenced by the report or return has not
been paid. If the assessment has been made within the limitation
period set forth in this subsection, the tax may be collected by tax
warrant or court proceeding, but only if the tax warrant is issued or
the proceeding begun within ten (10) years after the assessment of
the tax has become final.
B. Where before the expiration of the time prescribed in
subsection A of this section for the assessment of the tax, both the
Tax Commission and the taxpayer have consented in writing to its
assessment after such time, the tax may be assessed at any time prior
to the expiration of the period agreed upon, and the period so agreed
upon may be extended by subsequent agreements in writing made before
the expiration of the period previously agreed upon. In those
instances where the time to file a claim for a refund has not expired
at the date the extension agreement is entered into, the entering
into such an agreement shall automatically extend the period in which
a refund may be allowed or a claim for a refund may be filed to the
final date of such agreement.
C. In the case of a false or fraudulent report or return, with
intent to evade tax, the tax may be assessed, or a proceeding in
court for collection of such tax may be begun without assessment, at
any time. The term “false or fraudulent” as used in this subsection
shall have the same meaning as when used in Section 6501 of the
Internal Revenue Code.
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D. In the case of a willful attempt in any manner to defeat or
evade tax imposed by this title, the tax may be assessed, or a
proceeding in court for the collection of such tax may be begun
without assessment, at any time.
E. In the case of a failure to file a report or return, the tax
may be assessed, or a proceeding in court for the collection of such
tax may be begun without assessment, at any time.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1996, c. 34, § 1, emerg. eff. April 8, 1996; Laws 1999, c.
168, § 1, eff. Nov. 1, 1999; Laws 2006, c. 134, § 1, eff. July 1,
2006.
§68-224. Declaration of termination of taxable period and
acceleration of assessment.
(a) If the Tax Commission, notwithstanding that a tax return or
report, or the tax with respect thereto, may not yet be due, and
whether prior to or after the close of the taxable period, believes
that:
(1) The tax liability of any person, who has a bond on file with
the Tax Commission to indemnify the state for the payment of any
state tax, has accrued in excess of the amount of the bond, or
(2) A taxpayer intends to depart or remove from the state, or
conceal himself or any of his property subject to a lien for the
payment of any state tax, or
(3) A taxpayer intends to discontinue business, or
(4) A taxpayer intends to do any other act tending to prejudice
or render wholly or partially ineffectual proceedings to compute,
assess or collect any state tax, the Tax Commission shall by its
order declare the taxable period of any State tax terminated for such
person, and shall immediately assess the tax from any information in
its possession, notify the taxpayer, and demand immediate payment
thereof. In the event of any failure or refusal to pay the tax by
the taxpayer upon the demand of the Tax Commission, the tax shall
become delinquent and the Tax Commission shall proceed to collect the
same as in other cases of delinquent tax.
(b) The order of the Tax Commission assessing the tax may be
appealed from as provided in this article, or the taxpayer may
furnish to the Tax Commission security that he will make any return
or report thereafter required to be filed with the Tax Commission,
and pay the tax with respect to the taxable period when due, as
provided for by the general procedure pertaining to the tax involved.
After security is approved and accepted, and such further and other
security with respect to the tax or taxes covered thereby is given,
as the Tax Commission shall, from time to time find necessary and
require, the payment of such taxes shall not be enforced by any
proceedings prior to the expiration of the time otherwise allowed for
paying such taxes.
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(c) In cases where the assessment here authorized is made prior
to the close of the taxable period, and in case the taxpayer elects
to pay his taxes rather than to file a bond as herein provided for,
the taxpayer may pay to the Tax Commission the sum assessed, together
with additions to the tax provided by law, and at the time of making
such payment shall notify the Tax Commission of his intention, at the
close of the taxable period to file suit for recovery as provided in
this article. Upon receipt of such notice the amount paid shall be
segregated and held until the termination of thirty (30) days
following the close of the taxable period for which levied; and if
within such period, namely within thirty (30) days following the
close of the taxable period, taxpayer files suit for recovery, the
fund so segregated shall be further held pending the final
determination of such suit.
Laws 1965, c. 414, § 2.
§68-225. Appeals.
A. Any taxpayer aggrieved by any order, ruling, or finding of
the Oklahoma Tax Commission directly affecting the taxpayer or
aggrieved by a final order of the Tax Commission issued pursuant to
subsection G of Section 221 of this title may appeal therefrom
directly to the Supreme Court of Oklahoma. Provided, any taxpayer
appealing from a final order of the Tax Commission assessing a tax or
an additional tax or denial of a claim for refund may opt to file an
appeal in district court as provided in subsection D of this section.
B. Within thirty (30) days after the date of mailing to the
taxpayer of the order, ruling, or finding complained of, the taxpayer
desiring to appeal shall:
1. File a petition in error in the office of the Clerk of the
Supreme Court; and
2. Request that the Tax Commission prepare for filing with the
Supreme Court, within thirty (30) days, the record of the appeal,
certified by the Secretary of the Tax Commission, and consisting of
any citations, findings, judgments, motions, orders, pleadings and
rulings, together with a transcript of all evidence introduced at any
hearing relative thereto, or such portion of such citations,
findings, judgments, motions, orders, pleadings, rulings, and
evidence as the appealing parties and the Tax Commission may agree to
be sufficient to present fully to the Court the questions involved.
C. Upon request of the taxpayer, the Tax Commission shall
furnish the taxpayer a copy of the proceedings had in connection with
the matter complained of.
D. In lieu of an appeal to the Supreme Court, any taxpayer
aggrieved by a final order of the Tax Commission assessing a tax or
an additional tax or denial of a claim for refund may opt to file an
appeal for a trial de novo in the district court of Oklahoma County
or the county in which the taxpayer resides. If the amount in
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dispute exceeds Ten Thousand Dollars ($10,000.00), the appeal shall
be heard by a district or associate district judge sitting without a
jury. If the amount in dispute does not exceed Ten Thousand Dollars
($10,000.00), the appeal may be heard by a special judge sitting
without a jury. An order resulting from a trial provided pursuant to
this subsection shall be appealable directly to the Supreme Court of
Oklahoma by either party. Such appeal shall be taken in the manner
and time provided by law for appeal to the Supreme Court from the
district court in civil actions. Upon the filing of an appeal, the
order of the district court shall be superseded and neither party
shall be required to give bond. The provisions of this subsection
shall be applicable for tax periods beginning after the effective
date of this act. Provided, if the order applies to multiple tax
periods which begin before and after the effective date of this act,
the appeal provided by this subsection shall be available to the
aggrieved taxpayer.
E. If the appeal is from an order of the Tax Commission or a
district court denying a refund of taxes previously paid and if upon
final determination of the appeal, the order denying the refund is
reversed or modified, the taxes previously paid, together with
interest thereon from the date of the filing of the petition in error
at the rate provided in subsection A of Section 217 of this title,
shall be refunded to the taxpayer by the Tax Commission.
F. Such refunds and interest thereon shall be paid by the Tax
Commission out of monies in the Tax Commission clearing account from
subsequent collections from the same source as the original tax
assessment, provided that in the event there are insufficient funds
for refunds from subsequent collections from the same source, the
refund shall be paid by the Tax Commission from monies appropriated
by the Legislature to the special refund reserve account for such
purposes as hereinafter provided. There is hereby created within the
official depository of the State Treasury an agency special account
for the Tax Commission for the purpose of making such refunds as may
be required under this section, not otherwise provided. This account
shall consist of monies appropriated by the Legislature for the
purpose of making refunds under this section.
G. If the appeal be from an order, judgment, finding, or ruling
of the Tax Commission other than one assessing a tax and from which a
right of appeal is not otherwise specifically provided for in this
article the Uniform Tax Procedure Code, any aggrieved taxpayer may
appeal from that order, judgment, finding, or ruling as provided in
this section. The filing of such an appeal shall supersede the
effect of such order, judgment, ruling, or finding of the Tax
Commission .
H. This section shall be construed to provide to the taxpayer a
legal remedy by action at law in any case where a tax, or the method
of collection or enforcement thereof, or any order, ruling, finding,
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or judgment of the Tax Commission is complained of, or is sought to
be enjoined in any action in any court of this state or the United
States of America.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1978, c. 211, § 1, emerg. eff. April 19, 1978; Laws 1989, c.
249, § 12, eff. July 1, 1989; Laws 1991, c. 342, § 9, emerg. eff.
June 15, 1991; Laws 1994, c. 278, § 7, eff. Sept. 1, 1994; Laws 1998,
c. 385, § 3, eff. Nov. 1, 1998; Laws 1999, c. 293, § 26, eff. Nov. 1,
1999; Laws 2000, c. 314, § 5, eff. July 1, 2000; Laws 2002, c. 458, §
2, eff. July 1, 2002; Laws 2013, c. 287, § 1, eff. Jan. 1, 2014.
§68-226. Action to recover taxes as additional remedy to aggrieved
taxpayer.
(a) In addition to the right to a protest of a proposed
assessment as authorized by Section 221 of this title, a right of
action is hereby created to afford a remedy to a taxpayer aggrieved
by the provisions of this article or of any other state tax law, or
who resists the collection of or the enforcement of the rules or
regulations of the Tax Commission relating to the collection of any
state tax; however, such remedy shall be limited as prescribed by
subsection (c) of this section.
(b) Within thirty (30) days from the date of mailing to the
taxpayer of an assessment for taxes or additional taxes pursuant to
Section 221 of this title by the Tax Commission, any such taxpayer
shall pay the tax to the Tax Commission, and at the time of making
such payment shall give notice to the Tax Commission of his intention
to file suit for recovery of such tax. The taxpayer shall not be
required to file suit within such thirty-day period in order to
prosecute an action as authorized by this section; however, failure
to file such suit within one (1) year from the date of mailing of the
assessment shall result in the assessment becoming final and
absolute. If the taxpayer prevails the Tax Commission shall, by cash
voucher drawn by the Tax Commission upon its official depository
clearing account or special refund reserve account with the State
Treasurer, refund to the taxpayer the amount of tax determined not to
be due pursuant to the final judgment of the court having
jurisdiction, together with interest on such amount at the rate
applicable to money judgments in civil cases from the date of payment
by the taxpayer to the date of the refund by the Tax Commission. The
refunds paid shall be payable as provided in Section 225(d). If the
taxpayer prevails and the court determines that the position of the
Tax Commission in the proceeding was not substantially justified, the
court shall award the taxpayer a judgment for reasonable attorney
fees, reasonable expenses of expert witnesses in connection with the
proceeding and reasonable costs of any study, analysis, engineering
report, test or project which is found by the court to be necessary
for the preparation of the taxpayer's case.
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(c) This section shall afford a legal remedy and right of action
in any state or federal court having jurisdiction of the parties and
the subject matter. It shall be construed to provide a legal remedy
in the state or federal courts by action at law only in cases where
the taxes complained of are claimed to be an unlawful burden on
interstate commerce, or the collection thereof violative of any
Congressional Act or provision of the Federal Constitution, or in
cases where jurisdiction is vested in any of the Courts of the United
States. In all actions brought hereunder service of process upon the
Chairman of the Tax Commission shall be sufficient service, and the
Tax Commission shall be the sole, necessary and proper party
defendant in any such suit, and the State Treasurer shall not be a
necessary or proper party thereto.
(d) Upon request of any taxpayer and upon proper showing that
the principle of law involved in the assessment of any tax is already
pending before the courts for judicial determination, the taxpayer,
upon agreement to abide by the decision of the court, may pay the tax
so assessed under protest, but need not file a suit.
Laws 1965, c. 414, § 2; Laws 1978, c. 211, § 2, emerg. eff. April 19,
1978; Laws 1989, c. 249, § 13, eff. July 1, 1989; Laws 1990, c. 339,
§ 16, emerg. eff. May 31, 1990.
§68-227. Erroneous payments - Claims for refund - Demand for
hearing.
(a) Any taxpayer who has paid to the State of Oklahoma, through
error of fact, or computation, or misinterpretation of law, any tax
collected by the Tax Commission may, as hereinafter provided, be
refunded the amount of such tax so erroneously paid, without
interest.
(b) (1) Except as otherwise provided by division (2) of this
subsection, any taxpayer who has so paid any such tax may, within
three (3) years from the date of payment thereof file with the Tax
Commission a verified claim for refund of such tax so erroneously
paid. The Tax Commission may accept an amended withholding tax or
other report or return as a verified claim for refund if the amended
report or return establishes a liability less than the original
report or return previously filed.
(2) Upon the effective date of this act, with respect to the
sales tax imposed by Section 1354 of this title and with respect to
the use tax imposed by Section 1402 of this title, any taxpayer who
has so paid such sales or use tax may, within two (2) years from the
date of payment thereof file with the Tax Commission a verified claim
for refund of such tax so erroneously paid. The Tax Commission may
accept an amended sales or use tax report or return as a verified
claim for refund if the amended report or return establishes a
liability less than the original report or return previously filed.
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(c) Said claim so filed with the Tax Commission, except for an
amended report or return, shall specify the name of the taxpayer, the
time when and period for which said tax was paid, the nature and kind
of tax so paid, the amount of the tax which said taxpayer claimed was
erroneously paid, the grounds upon which a refund is sought, and such
other information or data relative to such payment as may be
necessary to an adjustment thereof by the Tax Commission. It shall
be the duty of the Commission to determine what amount of refund, if
any, is due as soon as practicable after such claim has been filed
and advise the taxpayer about the correctness of his claim and the
claim for refund shall be approved or denied by written notice to the
taxpayer.
(d) If the claim for refund is denied, the taxpayer may file a
demand for hearing with the Commission. The demand for hearing must
be filed on or before the sixtieth day after the date the notice of
denial was mailed. If the taxpayer fails to file a demand for
hearing, the claim for refund shall be barred.
(e) Upon the taxpayer's timely filing of a demand for hearing,
the Commission shall set a date for hearing upon the claim for refund
which date shall not be later than sixty (60) days from the date the
demand for hearing was mailed. The taxpayer shall be notified of the
time and place of the hearing. The hearing may be held after the
sixty-day period provided by this subsection upon agreement of the
taxpayer.
(f) The provisions of this section shall not apply: (1) to
refunds of income tax erroneously paid, refunds of which tax shall be
payable out of the income tax adjustment fund as provided by law; (2)
to estate tax because the payment of such tax is covered by an order
of the Tax Commission and the estate and interested parties are given
notice that Commission's position and computation of the tax will
become final unless they protest and resist the payment thereof as
provided by statute; nor, (3) in any case where the tax was paid
after an assessment thereof was made by the Tax Commission which
assessment became final under the law.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1978, c. 211, § 3, emerg. eff. April 19, 1978; Laws 1989, c.
249, § 14, eff. July 1, 1989; Laws 1993, c. 146, § 11; Laws 2014, c.
274, § 2, eff. Nov. 1, 2014; Laws 2016, c. 358, § 1.
§68-227.1. Illegal or invalid state tax laws - Process for obtaining
refund of amounts paid.
A. Notwithstanding the provisions of any state tax law relating
to or providing for the refund of taxes erroneously paid, no taxpayer
shall be entitled to nor be allowed any refund of taxes, penalties or
interest paid pursuant to a state tax law subsequently determined by
a final decision of a court of competent jurisdiction to be illegal
or invalid under the Constitution or laws of this state or of the
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United States, unless such taxpayer shall have timely availed himself
or herself of the remedies and procedures provided by Section 207,
221, 226 or 815 of Title 68 of the Oklahoma Statutes to protest or
challenge such tax, or, where the remedies provided by such sections
are unavailable because the tax has not yet been assessed or proposed
against such taxpayer, such taxpayer shall have brought an action for
declaratory judgment in the district court to declare such tax or tax
law illegal or invalid.
B. The provisions of this section shall apply to all state
taxes, and shall also apply to the refund of any tax imposed by any
municipality or county of this state where, under applicable law,
such tax is collected by the Oklahoma Tax Commission.
Added by Laws 1994, c. 278, § 36, eff. Sept. 1, 1994.
§68-228. Hearings on claims for refunds.
(a) If, upon the hearing as required by Section 227 of this
title, the Tax Commission finds that such tax was erroneously paid
through mistake of fact, or computation or misinterpretation of law,
it shall enter its written order allowing said claim for refund,
which refund may be paid to the taxpayer as provided by law, or
credited against any taxes due or to become due by the taxpayer as
the case may be; otherwise, the Tax Commission shall deny said claim.
The taxpayer shall have the right of appeal to the Supreme Court from
a decision of the Commission denying said claim for refund as
provided in Section 225 of this article.
(b) Any order entered by the Tax Commission, disallowing a claim
for refund, shall become final within thirty-one (31) days from the
date it is entered, unless an appeal is prosecuted therefrom, in
which event said order shall not become final until the appeal shall
have been determined. In the event the Tax Commission allows said
claim for refund, it shall pay the claimant the amount of refund, so
allowed out of funds in the official depository clearing account of
the Tax Commission, derived from collections in said fund from the
same source from which the overpayment occurred; and an appropriation
of so much of said fund as is necessary to pay said claims for refund
erroneously paid or collected is hereby made; provided, that in the
case of refunds due hereunder to taxpayers who are required to remit
taxes to the Tax Commission on a monthly or quarterly basis, the
Commission may, in lieu of a refund of the tax erroneously paid,
credit the account of the taxpayer for such amount.
Laws 1965, c. 414, § 2; Laws 1978, c. 211, § 4, emerg. eff. April 19,
1978.
§68-228.1. Payment of refunds.
Except as otherwise provided by law, claims for refunds which are
required to be paid by the Oklahoma Tax Commission shall be paid from
funds in the official depository clearing account of the Tax
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Commission, derived from collections from the same source from which
the overpayment occurred. Provided, in the case of refunds due to
taxpayers who are required to remit taxes to the Tax Commission on a
monthly or quarterly basis, the Tax Commission may, in lieu of such
refund, credit the account of the taxpayer for such amount. If
current collections from the same source are insufficient to pay
refunds, available cash funds from the unclassified taxes account may
be used for such purpose.
Added by Laws 1999, c. 390, § 4, emerg. eff. June 8, 1999. Amended
by Laws 2011, c. 348, § 1.
§68-229. Refunds - Interest.
In case of any judgment rendered under any provision of law for
the filing of a suit and recovery of taxes erroneously paid, in which
judgment interest is allowed the taxpayer, said interest may be paid
from the appropriation herein made where there is no other provision
of law for paying same.
Laws 1965, c. 414, § 2.
§68-230. Certificate of indebtedness to state - Recording and
indexing - Lien status.
The Oklahoma Tax Commission may issue to the county clerk of any
county of the state a certificate certifying that the person therein
named is indebted to the state for a specified state tax in the
amount stated. The county clerk shall immediately record and index
such certificate using the name of the delinquent taxpayer, the
amount certified as being due, a short name of the tax, and the date
and time of the filing for record. Such recording shall have the
same force and effect as a judgment and shall constitute and be
evidence and notice of the state's lien upon the title to any
interest in any real property of the taxpayer named in such
certificate. Such lien shall be in addition to any and all other
liens existing in favor of the state to secure the payment of such
unpaid tax, penalty, interest and costs, and such lien shall be
paramount and superior to all other liens of whatsoever kind or
character attaching to any of said property subsequent to the date of
such recording and shall be in addition to any lien provided by
Section 234 of this title. Such lien is hereby released and
extinguished upon the payment of the tax, penalty, interest and
costs, or, except as otherwise provided herein, upon the expiration
of ten (10) years after the date upon which such certificate was
recorded and indexed by the county clerk; provided, the Tax
Commission may, prior to the release and extinguishment of such lien,
reissue the certificate of indebtedness to the county clerk. A
certificate so reissued shall continue the lien until payment of the
tax, penalty, interest and costs, or upon the expiration of ten (10)
years after the date upon which the certificate was re-recorded and
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indexed by the county clerk. All active liens evidenced by a
certificate of indebtedness filed with a county clerk’s office prior
to November 1, 1989, shall be released and extinguished if the
certificate of indebtedness is not refiled prior to November 1, 2001.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1979, c. 148, § 2, eff. Oct. 1, 1979; Laws 1992, c. 66, § 1,
eff. July 1, 1992; Laws 1999, c. 407, § 2, eff. Nov. 1, 1999; Laws
2001, c. 358, § 9, eff. July 1, 2001.
§68-231. Warrant for sale of property to pay delinquent taxes,
interest and penalties - Recording and indexing - Lien status -
Execution - Costs and expenses.
A. If any tax, imposed or levied by any state tax law, or any
portion of such tax, is not paid before the same becomes delinquent,
the Oklahoma Tax Commission may immediately issue a warrant under its
official seal. A tax warrant directed to the sheriff of any county
of the state shall command the sheriff to levy upon and sell without
any appraisement or valuation any real or personal property of the
taxpayer found within the county for the payment of the delinquent
tax, interest and penalties, and the cost of executing the warrant,
and to return such warrant to the Tax Commission, and to pay to it
any monies collected by virtue thereof, by a time to be therein
specified, not more than sixty (60) days from the date of the
warrant.
B. The Tax Commission shall, immediately upon issuance of the
warrant, file with the county clerk of the county for which the
warrant was issued a copy thereof, and thereupon the county clerk
shall record and index such warrant in the same manner as judgments
using the name of the taxpayer named in the warrant, a short name for
the tax, the amount of the tax or portion thereof, and interest and
penalties for which the warrant was issued, and the date and time
when such copy was filed. The Tax Commission may file the warrant in
the appropriate office of the county clerk by electronic means. The
filing of the warrant in the office of the county clerk of the
county, shall constitute and be evidence and notice of the state's
lien upon any interest in any real property of the taxpayer against
whom such warrant is issued, until such tax, penalty and interest
accruing thereon is paid. Such lien shall be in addition to any and
all other liens existing in favor of the state to secure the payment
of the unpaid tax, penalty, interest and costs, and such lien shall
be paramount and superior to all other liens of whatsoever kind or
character, attaching to any of said property subsequent to the date
and time of such filing and shall be in addition to any lien provided
by Section 234 of this title. The Tax Commission shall, immediately
upon issuance of the warrant, mail, by regular mail, a copy of the
warrant to the last-known address of the delinquent taxpayer. Such
lien is hereby released and extinguished upon the payment of such
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tax, penalty, interest and costs, or, except as otherwise provided
herein, upon the expiration of ten (10) years after the date upon
which the warrant was filed with the county clerk; provided, the Tax
Commission may, prior to the release and extinguishment of such lien,
refile the warrant in the office of the county clerk. A warrant so
refiled shall continue the lien until payment of the tax, penalty,
interest and costs, or upon the expiration of ten (10) years after
the date upon which the warrant was refiled and indexed by the county
clerk. All active liens evidenced by a warrant filed with a county
clerk’s office prior to November 1, 1989, shall be released and
extinguished if the warrant is not refiled prior to November 1, 2001.
C. Except as otherwise provided in subsection D of this section,
the Tax Commission shall forward the filed warrant to the sheriff of
the county in which the warrant was filed. Upon receipt of the
warrant, such sheriff shall thereupon proceed to execute the tax
warrant in the same manner prescribed by law for executions against
property upon judgment of a court of record; and such sheriff shall
execute and deliver to the purchaser a bill of sale or deed, as the
case may be.
D. The Tax Commission shall not direct or forward to the sheriff
of any county any tax warrant issued pursuant to collection by the
Tax Commission. The Tax Commission shall promulgate rules pertaining
to tax warrants issued under this section.
E. The Tax Commission may levy upon and sell without any
appraisement or valuation any real or personal property of any
taxpayer identified by a filed tax warrant. The Tax Commission may
execute the tax warrant in the same manner prescribed by law for
executions against property upon judgment of a court of record and
may execute and deliver to the purchaser a bill of sale or deed, as
the case may be.
F. Any purchaser, other than the State of Oklahoma, shall be
entitled, upon application to the court having jurisdiction of the
property, to have confirmation, the procedure for which shall be the
same as is now provided for the confirmation of a sale of property
under execution, of such sale prior to the issuance of a bill of sale
or deed. The State of Oklahoma shall be authorized to make bids at
any such sale to the amount of tax, penalty and costs accrued. In
the event such bid is successful, the sheriff shall issue proper
muniment of title to the Tax Commission which shall hold such title
for the use and benefit of the State of Oklahoma; and any taxpayer,
or transferee of such taxpayer, shall have the right, at any time
within one (1) year from the date of such sale, to redeem such
property, upon the payment of all taxes, penalties and costs accrued
to the date of redemption. Such applicant shall not be entitled to a
credit upon such taxes, penalties and costs, by reason of revenue
that might have accrued to the State of Oklahoma or other purchaser
under sale, prior to such redemption. After the expiration of the
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period of redemption herein provided, the Tax Commission acting for
the State of Oklahoma may sell such property at public auction, upon
giving thirty (30) days' notice, published in a newspaper of general
circulation in the county where such property is located, to the
highest and best bidder for cash; and upon a sale had thereof, or
when a redemption is made, the Tax Commission, for and on behalf of
the State of Oklahoma, shall issue its bill of sale or quit claim
deed, as the case may be, to the successful bidder or to the
redemptioner. Such muniment of title shall be executed by the Tax
Commission, and attested by its secretary, with the seal of the Tax
Commission affixed. The sheriff shall be entitled to the same fee
for services in executing the warrant, as the sheriff would be
entitled to receive if he or she were executing an execution issued
by the court clerk of the county upon a judgment of a court of
record.
G. If any sheriff shall refuse or neglect to levy upon and sell
any real or personal property of any taxpayer as directed by any
warrant issued by the Tax Commission, or shall refuse or neglect, on
demand, to pay over to the Tax Commission, its agents or attorneys,
all monies collected or received under any warrant issued by the Tax
Commission, at any time after collecting or receiving the same, such
sheriff or other officer shall, upon motion of the Tax Commission in
court, and after thirty (30) days' notice thereof, in writing, be
amerced in the amount for which any such warrant was issued by the
Tax Commission, together with all penalties and costs and with an
additional penalty of ten percent (10%) thereon, to and for the use
of the State of Oklahoma. Every surety of any sheriff or officer
shall be made a party to the judgment rendered as aforesaid against
the sheriff or other officer.
H. The Tax Commission may expend funds from the Oklahoma Tax
Commission Fund in the State Treasury to reimburse the sheriff for
travel and administrative costs actually and necessarily incurred
while performing duties required by this section. Such costs shall
be assessed against the delinquent taxpayer, shall be added to the
amount necessary to satisfy the tax warrant, and upon collection
thereof shall be deposited in the Oklahoma Tax Commission Fund.
I. A tax warrant issued and filed under authority of this
section shall:
1. Constitute and be evidence and notice of the state's lien
upon real property; and
2. Not be subject to the provisions of any dormancy statute
which would limit the enforceability, effect or operation of the
lien, except as otherwise provided in this section.
J. After July 1, 1993, the Tax Commission shall not issue any
certificates of indebtedness pursuant to the provisions of Section
230 of this title.
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K. When a tax warrant has been issued and filed as provided in
this section, the Tax Commission shall have all of the remedies and
may take all of the proceedings thereon for the collection thereof
which may be had or taken upon a judgment of the district court.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1979, c. 148, § 3, eff. Oct. 1, 1979; Laws 1985, c. 356, § 4,
emerg. eff. July 30, 1985; Laws 1986, c. 269, § 19, operative July 1,
1986; Laws 1990, c. 339, § 14, emerg. eff. May 31, 1990; Laws 1992,
c. 66, § 2, eff. July 1, 1992; Laws 1993, c. 28, § 1, emerg. eff.
March 30, 1993; Laws 1993, c. 146, § 12; Laws 1999, c. 407, § 3, eff.
Nov. 1, 1999; Laws 2001, c. 358, § 10, eff. July 1, 2001; Laws 2003,
c. 472, § 6.
NOTE: Laws 1993, c. 14, § 1 repealed by Laws 1993, c. 146, § 29.
§68-231.1. Additional penalty for failure to pay delinquent taxes.
An additional penalty of Fifteen Dollars ($15.00) or an amount
equal to ten percent (10%), but not to exceed Two Hundred Dollars
($200.00), of the total amount of tax, penalty and interest as stated
on the face of a tax warrant, unless the actual liability at the date
of issuance of the warrant is determined to be a lesser amount,
whichever amount is greater, is hereby imposed upon each tax debtor
who neglects, refuses or fails to pay delinquent taxes. The
additional penalty shall be added to and become a part of the total
tax debt due the state and may be collected in the same manner as
provided by law for collection of delinquent taxes. Provided,
however, the penalty imposed pursuant to this section shall not be
assessed or collected more than once for the execution of a tax
warrant in each county.
Upon collection of the additional penalty imposed herein, the
Oklahoma Tax Commission shall transmit the revenue to the State
Treasurer to be deposited in the Oklahoma Tax Commission Fund. The
revenue from the additional penalty collected by the sheriff shall be
apportioned by the Oklahoma Tax Commission to the various county
treasurers to be deposited in the appropriate fund of the county
sheriff's department to be used by such department to increase
efforts to locate tax debtors and their property, to execute upon tax
warrants, and to collect delinquent taxes. The revenue from the
additional penalty collected by the Oklahoma Tax Commission shall be
apportioned to the Oklahoma Tax Commission Fund to be used by the
Oklahoma Tax Commission to enhance its efforts to collect delinquent
taxes. The additional penalty is imposed as a fee for the
collection of delinquent taxes by the sheriff, undersheriff, deputy
sheriff or Tax Commission. The penalty is in addition to the
reimbursement of actual and necessary travel and costs authorized in
Section 231 of this title and any other fees which may be allowed by
the district court.
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Added by Laws 1986, c. 218, § 9, operative July 1, 1986. Amended by
Laws 1990, c. 339, § 15, emerg. eff. May 31, 1990; Laws 1992, c. 66,
§ 3, eff. July 1, 1992; Laws 1998, c. 385, § 4, eff. Nov. 1, 1998.
§68-231.2. Attachment of assets of delinquent taxpayer.
Upon a final determination by a court of competent jurisdiction
that a tax levied or collected by the state is delinquent, the
Oklahoma Tax Commission may issue an order attaching the assets, up
to the amount of tax liability, of any bank accounts maintained
within this state by the delinquent taxpayer. The Tax Commission
shall mail a certified copy of the attachment order to the banks in
which the accounts are maintained. Upon receipt of such order the
banks shall be liable to the Tax Commission in an amount equal to any
attached funds released from the accounts without the written
permission of the Tax Commission. The Tax Commission may release
funds from the accounts to effectuate payment of the tax liability or
to protect the interests of the state and shall release the account
within thirty (30) days of full payment of the tax liability.
Added by Laws 1985, c. 356, § 9, emerg. eff. July 30, 1985.
§68-231.3. Recovery of fees and costs by Tax Commission.
The Tax Commission shall be entitled to recover from the taxpayer
named in the warrant any fees or costs charged to the Tax Commission
by the county clerk for the filing of any tax lien or tax warrant
against the taxpayer. The Tax Commission shall also be entitled to
recover or offset the filing fees or costs previously paid to the
county clerk for the filing of a tax lien or tax warrant upon the
withdrawal of a tax warrant or lien by the Tax Commission, or upon
the filing of a release issued by the Tax Commission for no
consideration after a determination by the Tax Commission that the
lien or warrant is clouding the title of property by reason of an
error in the description of such property or by reason of similarity
of names.
Added by Laws 1994, c. 221, § 3, eff. Sept. 1, 1994.
§68-232. Injunction proceedings.
When any reports required under any state tax law have not been
filed or may be insufficient to furnish all the information required
by the Tax Commission, or when the taxes imposed by any state tax law
have not been paid, the Tax Commission may institute, in the name of
the State of Oklahoma upon relation of the Tax Commission, any
necessary action or proceedings to enjoin such person, firm, or
corporation from continuing operations until such reports have been
filed or taxes paid as required, and in all proper cases, including
but not limited to cases in which the evidence establishes that a
taxpayer has repeatedly failed to collect and remit sales or
withholding taxes, injunction shall be issued without a bond being
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required from the state. After an action to enjoin the operation of
any person, firm or corporation has been instituted by the Tax
Commission a payout agreement under which the delinquent taxpayer is
to make periodic payments toward the satisfaction of the tax debt may
only be entered into upon the specific request or motion of the Tax
Commission. Upon a proper showing in any such action that the claim
of the state for taxes is in danger of being lost or rendered
uncollectible by reason of the mismanagement, dissipation or
concealment of the property by the taxpayer and a request is made for
the appointment of a receiver to manage the property of the taxpayer,
a receiver shall be appointed.
Amended by Laws 1985, c. 356, § 5, emerg. eff. July 30, 1985.
§68-233. Municipalities - Procedure when taxes delinquent.
(a) In case any city, town, county, or other political
subdivision of the state shall fail or refuse to pay in whole or in
part any tax when due under the provisions of any state tax law, the
Tax Commission shall issue a tax warrant for the amount of tax due,
and the sheriff shall serve such warrant on the county treasurer.
From the date of such service, the said tax, penalties and interest
shall be a lien on all ad valorem tax penalties collected by said
treasurer for and on account of any such city, town, county, or other
political subdivision of the state until the amount of all such
delinquent tax, penalties and interest is paid; and the county
treasurer is hereby directed and required to remit the amount of all
such ad valorem tax penalties, when collected by him, to the Tax
Commission until the amount due the State of Oklahoma on such
delinquent tax is paid; provided that such lien shall not attach to
the property to which such penalties so collected are attributable.
(b) The State of Oklahoma shall have the right, on the relation
of the Tax Commission, to sue any such city, town, county, or other
political subdivision for any such tax in any court of competent
jurisdiction, and if judgment is rendered in favor of the state in
such suit it shall be collected and paid as provided by law for the
collection of judgments against cities, towns, counties, or other
political subdivisions of the state.
Laws 1965, c. 414, § 2.
§68-234. Lien for unpaid taxes, interest and penalties.
A. All taxes, interest and penalties imposed by the provisions
of Section 201 et seq. of this title, or any state tax law, are
hereby declared to constitute a lien in favor of the state upon all
franchises, property, and rights to property, whether real or
personal, then belonging to or thereafter acquired by the person
owing the tax, whether such property is employed by such person in
the prosecution of business, or is in the hands of an assignee,
trustee or receiver for the benefit of creditors, from the date the
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taxes are due and payable under the provisions of the state tax laws
levying such taxes. The lien shall be in addition to any lien
accrued by the filing of a tax warrant or tax certificate as provided
by Sections 230 and 231 of this title. The lien shall be prior,
superior and paramount to all other liens, claims, or encumbrances on
the property of whatsoever kind or character, except those of any
bona fide mortgagee, pledgee, judgment creditor, or purchaser, whose
right shall have attached prior to the date of the filing and
indexing in the office of the county clerk in the county in which the
property is located, of the notice of the lien of the state under a
tax certificate as provided by Section 230 of this title, or under a
tax warrant as provided by Section 231 of this title, and who have
filed or recorded the mortgages and conveyances in the office of the
county clerk of the county in which the property is located. Such
taxes, penalties and interest shall at all times, constitute a prior,
superior and paramount claim as against the claims of unsecured
creditors. The lien of the state shall continue until the amount of
the tax and penalty due and owing, and interest subsequently accruing
thereon, is paid, or, except as otherwise provided herein, upon the
expiration of ten (10) years after the date of the filing and
indexing in the office of the county clerk in the county in which the
property is located, of the notice of the lien of the state under a
tax certificate as provided by Section 230 of this title, or under a
tax warrant as provided by Section 231 of this title; provided, the
Oklahoma Tax Commission may, prior to the expiration of the ten-year
period provided for herein, refile the notice of the lien with the
county clerk. A notice so refiled shall continue the lien until
payment of the tax, penalty, interest and costs, or upon the
expiration of ten (10) years after the date upon which the notice was
refiled. All active liens evidenced by a notice of lien filed with a
county clerk's office prior to November 1, 1989, shall be released
and extinguished if the notice of lien is not refiled prior to
November 1, 2001.
B. In any action affecting the title to real estate or the
ownership or right to possession of personal property, the State of
Oklahoma may be made a party defendant, for the purpose of
determining its lien upon the property involved therein only in cases
where notice of the lien of the state has been filed and indexed as
provided in Sections 230 and 231 of this title. In any such action,
service of summons upon the Oklahoma Tax Commission, by serving any
member thereof, shall be sufficient service and binding upon the
State of Oklahoma. In all such actions or suits, the complaint or
pleading shall include the name and address of the taxpayer whose
liability created the lien and the identifying number evidencing the
lien.
C. In any action affecting the ownership or right of possession
of intangible personal property, such as a settlement or court
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judgment, the Tax Commission shall be given notice of such action for
the purpose of determining its lien upon the property involved
therein in cases where notice of the lien of the state has been filed
and indexed as provided in Sections 230 and 231 of this title.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1979, c. 148, § 4, eff. Oct. 1, 1979; Laws 1997, c. 294, §
10, eff. July 1, 1997; Laws 1999, c. 407, § 4, eff. Nov. 1, 1999;
Laws 2001, c. 358, § 11, eff. July 1, 2001; Laws 2019, c. 274, § 1,
eff. July 1, 2019.
§68-235. Fiduciaries - Final accounts.
(a) No final account of any fiduciary shall be allowed by any
probate court of the state, unless such account shows, and the judge
of said court finds, that all taxes imposed by the provisions of any
state tax law which have become payable, have been paid, and that all
taxes which may become due are secured by bond, deposit or otherwise.
The certificate of the Tax Commission shall be conclusive as to the
payment of any tax, to the extent of said certificate.
(b) For the purpose of facilitating the settlement and
distribution of the estates held by fiduciaries, the Tax Commission
may, subject to the approval of the court having jurisdiction of any
such estate, or as provided by Section 219 of this Code, agree upon
the amount of taxes, at any time due or to become due, from such
fiduciaries, under the provisions of any state tax law, and payment,
in accordance with such agreement, shall be in full satisfaction of
all taxes to which the agreement relates.
Laws 1965, c. 414, § 2.
§68-236. Agents, accountants, attorneys or other persons
representing taxpayers before Commission.
The Tax Commission may prescribe rules and regulations governing
the recognition of agents, accountants, attorneys, or other persons
representing taxpayers before the Tax Commission, and may require
that such person, before being recognized as representatives of
taxpayers, shall make a proper showing that they are of good
character and in good repute and are possessed of the necessary
qualifications to enable them to render such taxpayers valuable
services, and are otherwise competent to advise and assist such
taxpayers in the preparation of reports, returns or cases to be filed
with or heard before the Tax Commission. The Tax Commission may,
after due notice and an opportunity for hearing, suspend and disbar
from further practice before the Tax Commission any such person,
agent, accountant or attorney shown to be incompetent or disreputable
or who refuses to comply with the said rules and regulations, or who
shall, with intent to defraud, in any manner willfully and knowingly
deceive, mislead, or threaten any taxpayer or prospective client by
words, circular, letter, or by advertisement, or who shall advise a
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taxpayer to file a fraudulent or false report or return, or who shall
prepare a false or fraudulent report or return in any particular
whatsoever, or who shall assist, aid or abet any taxpayer in
concealing any information pertaining to said taxpayer's books,
records, reports or returns, or who shall delay proceedings of the
Tax Commission to assist a taxpayer in disposing of or concealing
property upon which a levy could be made for the collection of taxes
accrued, or who shall be in default in payment of taxes or filing
reports or returns under any state tax law.
Laws 1965, c. 414, § 2.
§68-237. Taxes imposed by other States.
The courts of this state shall recognize and enforce liability
for taxes lawfully imposed by other states which extend a like comity
to this state.
Laws 1965, c. 414, § 2.
§68-238. Conduct of business or activities without license or
permit.
Any person, association, or corporation required to obtain a
license or permit by any state tax law, or by other law which the Tax
Commission is required to enforce, who shall, without obtaining such
license or permit, conduct the business or carry on the activities
required to be licensed, shall be guilty, upon conviction, of a
misdemeanor and shall be punished by the imposition of a fine of not
more than Five Thousand Dollars ($5,000.00), or shall be punished by
imprisonment in the county jail for not more than one (1) year; and,
upon complaint of the Tax Commission shall be enjoined from further
operating or conducting such business until such license or permit
has been procured.
The venue for prosecutions arising pursuant to the provisions of
this section shall be in the district court of any county in which
such business activities are transacted.
Amended by Laws 1984, c. 220, § 2, operative July 1, 1984.
§68-238.1. State licenses – Collection of income taxes –
Notification - Definitions.
A. It is the intent of the Legislature that the provisions of
this section operate to provide for the collection of income taxes
due to the State of Oklahoma by persons holding state licenses in a
manner that will maximize flexibility for licensees to pay any such
taxes due while minimizing disruption to operations of licensing
entities. It is the further intent of the Legislature that the
Oklahoma Tax Commission allow at least six (6) months notice to
licensees pursuant to the provisions of subsection C of this section
prior to notification of noncompliance to a licensing entity.
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B. Each licensing entity shall, on a date that allows the Tax
Commission to comply with the notice provisions of subsection A of
this section, provide to the Tax Commission a list of all its
licensees and such identifying information as may be required by the
Tax Commission. Such list and information shall be used by the Tax
Commission exclusively for the purpose of collection of income taxes
due to the State of Oklahoma. The provisions of any laws making
application information confidential shall not apply with respect to
information supplied to the Tax Commission pursuant to the provisions
of this section; provided, such information shall be subject to the
provisions of Section 205 of this title.
C. The Tax Commission shall notify any licensee who is not in
compliance with the income tax laws of this state. Such notification
shall include:
1. A statement that the licensee’s license will not be renewed
or reissued until the taxpayer is deemed by the Tax Commission to be
in compliance with the income tax laws of this state;
2. The reasons that the taxpayer is considered to be out of
compliance with the income tax laws of this state, including a
statement of the amount of any tax, penalties and interest due or a
list of the tax years for which income tax returns have not been
filed as required by law;
3. An explanation of the rights of the taxpayer and the
procedures which must be followed by the taxpayer in order to come
into compliance with the income tax laws of this state; and
4. Such other information as may be deemed necessary by the Tax
Commission.
D. A licensee who has entered into and is abiding by a payment
agreement, or who has requested relief as an innocent spouse which is
pending or has been granted, shall be deemed to be in compliance with
the state income tax laws for purposes of this section.
E. If the Tax Commission notifies a licensee who is not in
compliance with the income tax laws of this state as required in this
section and such licensee does not respond to such notification or
fails to come into compliance with the income tax laws of this state
after an assessment has been made final or after the Tax Commission
determines that every reasonable effort has been made to assist the
licensee to come into compliance with the income tax laws of this
state, the Tax Commission, notwithstanding the provisions of Section
205 of this title, shall so notify the licensing entity, which shall
not renew or reissue the licensee’s license at such time as it is
subject to renewal or thereafter and shall notify the applicant of
the reason for nonrenewal or failure to reissue. If a licensee who
has been previously reported by the Tax Commission to a licensing
entity as being out of compliance comes into compliance, the Tax
Commission shall immediately notify the licensing entity. A
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licensing entity shall not be held liable for any action with respect
to a state license pursuant to the provisions of this section.
F. If the Oklahoma Bar Association receives notice that a
licensed attorney is not in compliance with the income tax laws of
this state as provided in this section, the Bar Association shall
begin proceedings by which the attorney may be suspended pursuant to
Rule Governing Disciplinary Proceedings. If suspended, the attorney
may be reinstated pursuant to reinstatement procedures as provided in
the Rules Governing Disciplinary Proceedings.
G. The Tax Commission shall promulgate rules for the
implementation of the provisions of this section.
H. As used in this section:
1. “State license” means a license, certificate, registration,
permit, approval or other similar document issued by a licensing
entity granting to an individual or business a right or privilege to
engage in a profession, occupation or business in this state. “State
license” does not include an inactive license issued by a licensing
entity which does not grant an individual the right to engage in a
profession, occupation or business in this state;
2. “Licensing entity” means a bureau, department, division,
board, agency, commission or other entity of this state or of a
municipality in this state that issues a state license; and
3. “Reissue” means to issue a state license to an individual who
has been in possession of an equivalent license issued by the same
licensing entity in the previous twelve (12) months.
Added by Laws 2000, c. 314, § 6, eff. July 1, 2000. Amended by Laws
2001, c. 295, § 1, emerg. eff. May 31, 2001; Laws 2009, c. 246, § 1,
eff. Nov. 1, 2009.
§68-238.2. Compliance of state employees with state income tax laws
- Notification - Disciplinary action.
A. It is the intent of the Legislature that the provisions of
this section operate to provide for the collection of income taxes
due to the State of Oklahoma by state employees in a manner that will
maximize flexibility for state employees to pay any such taxes due
while minimizing disruption to operations of state agencies. It is
the further intent of the Legislature that the Oklahoma Tax
Commission provide notice to state employees pursuant to the
provisions of subsection C of this section and that the Tax
Commission provide such notice to state employees at least six (6)
months prior to notification of noncompliance to a state agency.
B. The Office of Management and Enterprise Services shall, not
later than August 1, 2003, and August 1 of each year thereafter,
provide to the Tax Commission a list of all state employees as of the
preceding July 1 and such identifying information as may be required
by the Tax Commission. Such list and information shall be used by
the Tax Commission exclusively for the purpose of collection of
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income taxes due to the State of Oklahoma. The provisions of any
laws making information confidential shall not apply with respect to
information supplied to the Tax Commission pursuant to the provisions
of this section; provided, such information shall be subject to the
provisions of Section 205 of this title.
C. The Tax Commission shall, not later than November 1, 2003,
and November 1 of each year thereafter, notify any state employee who
is not in compliance with the income tax laws of this state. Such
notification shall include:
1. A statement that the employee will be subject to disciplinary
action by the appointing authority unless the taxpayer is deemed by
the Tax Commission to be in compliance with the income tax laws of
this state;
2. The reasons that the taxpayer is considered to be out of
compliance with the income tax laws of this state, including a
statement of the amount of any tax, penalties and interest due or a
list of the tax years for which income tax returns have not been
filed as required by law;
3. An explanation of the rights of the taxpayer and the
procedures which must be followed by the taxpayer in order to come
into compliance with the income tax laws of this state; and
4. Such other information as may be deemed necessary by the Tax
Commission.
D. A state employee who has entered into and is abiding by a
payment agreement, or who has requested relief as an innocent spouse
which is pending or has been granted, shall be deemed to be in
compliance with the state income tax laws for purposes of this
section.
E. If the Tax Commission notifies a state employee who is not in
compliance with the income tax laws of this state as required in this
section and such state employee does not respond to such notification
or fails to come into compliance with the income tax laws of this
state after an assessment has been made final or after the Tax
Commission determines that every reasonable effort has been made to
assist the state employee to come into compliance with the income tax
laws of this state, the Tax Commission, notwithstanding the
provisions of Section 205 of this title, shall so notify the
appointing authority, which shall commence disciplinary action with
respect to the state employee and shall notify the state employee of
the reason for such action; provided, if a state agency receives a
notification with respect to a state employee who has failed to come
into compliance with the income tax laws, and the notification is the
employee's third notification as a state employee, regardless of
which agency the employee was employed by at the time of the first
and second notices, such employee shall be terminated by the state
agency according to the procedures provided by law. If a state
employee who has been previously reported by the Tax Commission to a
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state agency as being out of compliance comes into compliance, the
Tax Commission shall immediately notify the appointing authority.
Neither a state agency nor an appointing authority shall be held
liable for any action with respect to a state employee pursuant to
the provisions of this section.
F. The Tax Commission shall promulgate rules for the
implementation of the provisions of this section.
G. As used in this section:
1. "State agency" means any office, department, board,
commission or institution of the executive, legislative or judicial
branch of state government;
2. "Employee" or "state employee" means an appointed officer or
employee of a state agency; provided, the term employee or state
employee shall not include an elected official or an employee of a
local governmental entity; and
3. "Appointing authority" means the chief administrative officer
of a state agency.
Added by Laws 2003, c. 376, § 1, eff. July 1, 2003. Amended by Laws
2005, c. 479, § 4, eff. July 1, 2005; Laws 2011, c. 348, § 2; Laws
2012, c. 304, § 534.
§68-239. Continuance of business or operations after forfeiture of
required bond.
Any person, association, or corporation who, after the forfeiture
by the Tax Commission of any bond posted by him, shall continue or
attempt to continue in the business or operations made taxable by any
state tax law pursuant to which the bond was required to be posted,
without having said bond reinstated or without making a new bond,
shall be guilty, upon conviction, of a misdemeanor and shall be
punished by the imposition of a fine of not more than Five Thousand
Dollars ($5,000.00), or shall be imprisoned in the county jail for
not more than one (1) year; and, upon complaint of the Tax
Commission, shall be enjoined from further operating or conducting
such business until such bond has been reinstated or a new bond has
been approved.
The venue for prosecutions arising pursuant to the provisions of
this section shall be in the district court of any county in which
such business activities are transacted.
Amended by Laws 1984, c. 220, § 3, operative July 1, 1984.
§68-240. Failure or refusal to file report or return - Penalty.
(a) Any taxpayer who, due to intentional disregard of any state
tax law, but without intent to defraud, shall fail or refuse to file
any report or return required to be filed pursuant to the provisions
of any state tax law, or shall fail or refuse to furnish a
supplemental return or other data required by the Tax Commission,
shall be guilty, upon conviction, of a misdemeanor and shall be
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punished by a fine of not exceeding Five Thousand Dollars ($5,000.00)
or by imprisonment in the county jail for not more than one (1) year,
or by both said fine and imprisonment.
(b) The venue for prosecutions arising pursuant to the provisions
of this section shall be in the district court of any county in which
such person resides or, if such person is not a resident of this
state, any county in which such person does business or maintains an
established place of business.
(c) Failure or refusal of any taxpayer to file any report or
return required to be filed pursuant to the provisions of any state
tax law, or failure or refusal of a taxpayer to furnish a
supplemental return or other data required by the Tax Commission
within thirty (30) days after notice by personal service or by
registered or certified mail with return receipt requested of the due
date of such report or return, shall, for the purpose of this
section, be prima facie evidence of intentional disregard of state
tax law. Provided, that this subsection shall be set out in full in
the notice to the taxpayer.
(d) The Tax Commission may grant additional time to the taxpayer
to furnish such return or other data. In such event, a failure of
the taxpayer to furnish such return or other data within thirty (30)
days from the date to which the time is extended shall, for the
purpose of this article, be prima facie evidence of intentional
disregard of state tax law.
Amended by Laws 1984, c. 220, § 4, operative July 1, 1984; Laws 1986,
c. 218, § 10, emerg. eff. June 9, 1986.
§68-240.1. False return or return with intent to defraud - Penalty.
A. Any taxpayer who, with intent to defraud the state or evade
the payment of any state tax, fee, interest, or penalty which shall
be due pursuant to any state tax law, shall fail or refuse to file
any report or return required to be filed pursuant to the provisions
of any state tax law, or shall fail or refuse to furnish a
supplemental return or other data required by the Tax Commission,
shall be guilty, upon conviction, of a felony and shall be punished
by imposition of a fine of not less than One Thousand Dollars
($1,000.00) and not more than Fifty Thousand Dollars ($50,000.00) or
by imprisonment in the State Penitentiary for not less than two (2)
years and not more than five (5) years, or by both such fine and
imprisonment.
B. The venue for prosecutions arising pursuant to the provisions
of this section shall be in the district court of any county in which
such taxpayer resides or, if such taxpayer is not a resident of this
state, any county in which such taxpayer conducts business or
maintains an established place of business.
C. Failure or refusal of a taxpayer to file any report or return
required to be filed pursuant to the provisions of any state law, or
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failure or refusal of a taxpayer to furnish a supplemental return or
other data required by the Tax Commission within thirty (30) days
after notice by personal service or by registered or certified mail
with return receipt requested of the due date of such report or
return, shall be, for purposes of this section, prima facie evidence
of intent of the taxpayer to defraud the state and evade the payment
of such tax. The provisions of this subsection shall be set forth in
full in such notice to the taxpayer.
D. The Tax Commission may grant additional time to the taxpayer
to furnish such return or other data. In such event, a failure of
the taxpayer to furnish such return or other data within thirty (30)
days from the date to which the time is extended shall, for purposes
of this section, be prima facie evidence of the intent of the
taxpayer to defraud the state and evade the payment of such tax.
Added by Laws 1986, c. 218, § 11, emerg. eff. June 9, 1986. Amended
by Laws 1997, c. 133, § 552, eff. July 1, 1999; Laws 1999, 1st
Ex.Sess., c. 5, § 402, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 552 from July 1, 1998, to July 1, 1999.
§68-241. False or fraudulent reports, returns - Penalty - Venue.
A. Any person required to make, render, sign or verify any
report, return, statement, claim, application, or other instrument,
pursuant to the provisions of this title or of any state tax law who,
with intent to defeat or evade the payment of the tax, shall make a
false or fraudulent return, statement, report, claim, invoice,
application, or other instrument, or any person who shall aid or abet
another in filing with the Tax Commission such a false or fraudulent
report or statement, shall be guilty, upon conviction, of a felony
and shall be punished by the imposition of a fine of not less than
One Thousand Dollars ($1,000.00) and not more than Fifty Thousand
Dollars ($50,000.00), or shall be imprisoned in the State
Penitentiary for not less than two (2) years and not more than five
(5) years, or shall be punished by both said fine and imprisonment.
B. The venue of prosecutions arising pursuant to the provisions
of this section shall be in the district court of any county where
such return or report was verified.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1984, c. 220, § 5, operative July 1, 1984; Laws 1986, c. 218,
§ 12, emerg. eff. June 9, 1986; Laws 1997, c. 133, § 553, eff. July
1, 1999; Laws 1999, 1st Ex.Sess., c. 5, § 403, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 553 from July 1, 1998, to July 1, 1999.
§68-242. False entries or neglect to make entries - Penalty - Venue.
Any person, whether acting for himself or for any other person,
who willfully makes any false entry or who fails to make any entry
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which it is his duty to make in any book, ledger, or account required
by the provisions of this title or any state tax law to be kept,
shall be guilty, upon conviction, of a misdemeanor and shall be
punished by the imposition of a fine of not more than Five Thousand
Dollars ($5,000.00) or shall be sentenced to the county jail for a
term not exceeding one (1) year, or both.
The venue of all prosecutions arising pursuant to the provisions
of this section shall be in the district court of the county in which
such person resides, or if such person is not a resident of this
state, any county in which such person does business or maintains an
established place of business.
Amended by Laws 1984, c. 220, § 6, operative July 1, 1984.
§68-243. Evidence and witnesses - Penalty - Venue.
(a) Any person, or any member of any firm or association, or any
official, agent, or employee of any corporation, who shall fail or
refuse:
(1) to testify, or
(2) to produce any books, records, or papers which the Tax
Commission shall require, or
(3) to permit the examination of the same, or
(4) to furnish any other evidence or information which the Tax
Commission may require, or
(5) to answer any questions which may be put to him by the Tax
Commission touching the business, property, assets, or effects of any
such person, firm, association, or corporation, or the valuation
thereof, or the income or profits therefrom, shall be guilty, upon
conviction, of a misdemeanor and shall be punished by a fine of not
more than Five Thousand Dollars ($5,000.00), or by imprisonment for
not more than one (1) year in the county jail, or by both said fine
and imprisonment.
(b) The venue of prosecutions arising pursuant to the provisions
of this section shall be in the district court of either the county
in which the person resides or maintains his place of business or in
the county in which the hearing is held.
Amended by Laws 1984, c. 220, § 7, operative July 1, 1984.
§68-244. False answers to questions or false affidavits.
Any person, or member of any firm or association, or any
official, agent, or employee of any corporation, who shall knowingly
make false answer to any question which may be put to him by the Tax
Commission, touching the business, property, assets, or effects of
any such person, firm, association, or corporation, or the valuation
thereof, or the income or profits therefrom, or who shall make or
present any false affidavit concerning any list, schedule, statement,
report or return, or for any other purpose, filed with said Tax
Commission or required to be filed by this title or by any state tax
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law, shall be guilty of the felony of perjury, and, upon conviction,
shall be punished as provided for in Section 246 of this title.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1984, c. 220, § 8, operative July 1, 1984; Laws 1997, c. 133,
§ 554, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 554 from July 1, 1998, to July 1, 1999.
§68-245. Verification of reports or returns.
Reports or returns or other matter which are required by law to
be verified by oath or affirmation and filed with the Tax Commission
may be verified by oath or affirmation taken before a person
authorized to administer oaths, or by a declaration in writing that
the report or return or other matter is signed under the penalties of
perjury. The fact that a report or return or other matter purports to
have been signed by a person shall for all purposes be prima facie
evidence that he in fact signed the report or return or other matter.
Laws 1965, c. 414, § 2.
§68-246. Penalty.
Any person who shall knowingly verify, by oath, affirmation, or
declaration, any false report or false return or other matter which
is false, which by statute is required to be verified by oath,
affirmation, or declaration and filed with the Tax Commission, shall
be guilty, upon conviction, of the felony of perjury and shall be
punished by the imposition of a fine of not less than Five Hundred
Dollars ($500.00) or more than Five Thousand Dollars ($5,000.00), or
by imprisonment in the county jail for not less than ninety (90) days
or more than one (1) year or by imprisonment in a state correctional
institution for not less than ninety (90) days, or more than ten (10)
years.
Added by Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965. Amended
by Laws 1984, c. 220, § 9, operative July 1, 1984; Laws 1997, c. 133,
§ 555, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, § 404, eff.
July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 555 from July 1, 1998, to July 1, 1999.
§68-247. Additional penalty for filing return or report containing
insufficient information to determine correctness of tax liability -
Purpose.
Any taxpayer who files a purported state tax return or report
that does not contain sufficient information to determine the
correctness of the reported tax liability and that, on its face,
indicates a prima facie intent to delay or impede the administration
or enforcement of any state tax law shall be subject to a penalty, in
addition to any other penalty imposed by law, in the amount of Five
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Thousand Dollars ($5,000.00). Said penalty shall be recoverable by
the Tax Commission as a part of the tax and shall be apportioned as
provided for the apportionment of the tax on which such penalty is
collected.
This provision is intended to impose an additional penalty on
those taxpayers who do not file required tax returns or reports in
processible form, make spurious constitutional claims on the face of
the return or report, refuse to complete the return or report,
present information that is clearly inconsistent, or declare "gold
standard" or "war tax" deductions or any other similar claim with the
intent not to file required tax returns or reports in a processible
form.
Added by Laws 1983, c. 275, § 15, emerg. eff. June 24, 1983. Amended
by Laws 1984, c. 220, § 10, operative July 1, 1984.
§68-248. Commission may require taxpayer to furnish certain
information.
In addition to information required on any state tax return or
report prescribed by the Oklahoma Tax Commission, upon request or
demand for production of information by the Commission, or its duly
authorized agent, a state taxpayer shall furnish any information
deemed necessary to determine the amount of state tax liability.
Notwithstanding Section 205 of this title the Commission shall have
the power to compel the production of books, records or papers of any
person, firm, association, partnership, corporation or other legal
entity regarding the business, property, assets or effects of any
Oklahoma taxpayer which may be necessary to a determination of state
tax liability of such taxpayer, including any books, records or
papers necessary to obtain or verify information necessary for
resolution of a protest by a taxpayer to an assessment of tax or
additional tax or to the resolution of a claim for refund filed by a
taxpayer. If the information is deemed confidential or proprietary
by the person, firm, association, partnership, corporation or other
legal entity, no production can be compelled pending a hearing on the
nature and extent of the production of privileged and confidential
information.
Added by Laws 1983, c. 275, § 16, emerg. eff. June 24, 1983. Amended
by Laws 1990, c. 339, § 3, emerg. eff. May 31, 1990.
§68-249. Tax preparers - Duties - Violations - Penalties.
A. Any person that prepares any state tax returns or reports for
an Oklahoma taxpayer, other than the employer of the preparer, for
compensation, shall:
1. Set forth the name, identifying number, and address of the
preparer on the face of the prepared return or report; and
2. Manually, or by means of a rubber stamp, mechanical device,
or computer software program which includes a facsimile of the
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individual preparer’s signature or printed name, sign and execute the
prepared return or report; and
3. Furnish the taxpayer a copy of the prepared return or report
and retain a copy of same for a period of three (3) years from the
date the prepared return or report was filed or required to be filed,
whichever expires the later.
Upon a determination of a violation of this subsection, the preparer
shall be subject to a penalty in the amount of Five Hundred Dollars
($500.00) which shall be apportioned as provided for the
apportionment of the tax for which the return or report was prepared.
B. Any person that prepares any state tax returns or reports for
an Oklahoma taxpayer for compensation is hereby prohibited from
endorsing or negotiating the state income tax refund check of the
taxpayer. Upon a determination by the Tax Commission that a preparer
violated this subsection, a penalty in the amount of Five Hundred
Dollars ($500.00) shall be assessed. Said penalty shall be
apportioned in the same manner as provided for the apportionment of
the state income tax revenues.
C. The penalties imposed pursuant to the provisions of this
section shall be in addition to any other penalties imposed by any
tax laws or civil or criminal laws of this state.
D. When assisting taxpayers in preparing an individual income
tax return, tax preparers shall advise their clients of their
responsibility to remit use taxes through the use tax remittance line
on the individual income tax return or by filing a consumer use tax
return.
Added by Laws 1983, c. 275, § 17, emerg. eff. June 24, 1983. Amended
by Laws 1984, c. 220, § 11, operative July 1, 1984; Laws 2005, c.
479, § 5, eff. July 1, 2005; Laws 2010, c. 412, § 6, eff. July 1,
2010.
§68-250. Register of tax warrants - Establishment and maintenance -
Public inspection.
The Oklahoma Tax Commission shall establish and maintain a
register of tax warrants filed pursuant to the provisions of the
Uniform Tax Procedure Code, Sections 201 through 260 of this title.
The Tax Commission shall establish and maintain a separate register
of tax warrants filed pursuant to the provisions of subsection D of
Section 231 of this title. Said registers shall be public records
which shall be open to public inspection.
Added by Laws 1985, c. 95, § 3, eff. Jan. 1, 1986. Amended by Laws
1986, c. 55, § 1, eff. Nov. 1, 1986; Laws 1993, c. 28, § 2, emerg.
eff. Mar. 30, 1993.
§68-251. Filing petitions and applications for collection of
delinquent taxes by mail.
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Notwithstanding the provisions of any statute or court rule to
the contrary the Tax Commission may file petitions and applications
in the various district courts of this state to initiate actions
authorized in Section 201 et seq. of Title 68 of the Oklahoma
Statutes, for collection of delinquent state taxes by mailing same to
the respective court clerk of the district courts of this state. Upon
receipt of such petition or application, the court clerk shall cause
hearings to be set as required by law, and shall cause the necessary
summons or notice to be issued and served by sheriff or mail, as set
forth in the summons or notice.
Added by Laws 1985, c. 356, § 6, emerg. eff. July 30, 1985.
§68-252. Attorney General - Duty to prosecute actions to collect
certain taxes.
In addition to the obligations of state or local agencies or
entities, the Attorney General shall have the duty to file and
prosecute all actions to enforce the collection of sales tax,
withheld income tax, or other taxes owed to the State of Oklahoma:
1. In all necessary civil proceedings; and
2. In all criminal cases, when the district attorney fails to
file a case, within thirty (30) days after being requested to do so
by the Tax Commission or other state agency.
Added by Laws 1985, c. 356, § 7, emerg. eff. July 30, 1985.
§68-253. Corporations or limited liability companies - Filing
assessment for certain unpaid taxes - Individuals liable.
A. When the Oklahoma Tax Commission files a proposed assessment
against corporations, limited liability companies or other legal
entities for unpaid sales taxes, withheld income taxes or motor fuel
taxes collected pursuant to Article 5, 6 or 7 of this title, the
Commission shall file such proposed assessments against the
individuals personally liable for the tax.
B. Any individual shall be liable for the payment of sales tax,
withheld income tax or motor fuel tax if, during the period of time
for which the assessment was made, the individual was responsible for
withholding or collection and remittance of taxes or had direct
control, supervision or responsibility for filing returns and making
payments of the tax due the State of Oklahoma.
C. Personal liability for sales tax, withheld income tax or
motor fuel tax shall be determined in accordance with the standards
for determining liability for payment of federal withholding tax
pursuant to the Internal Revenue Code of 1986, as amended, or
regulations promulgated pursuant to such section.
Added by Laws 1985, c. 356, § 8, emerg. eff. July 30, 1985. Amended
by Laws 1989, c. 249, § 16, eff. July 1, 1989; Laws 1993, c. 366, §
27, eff. Sept. 1, 1993; Laws 2014, c. 273, § 1, eff. Nov. 1, 2014.
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§68-254. Garnishment proceeding to collect delinquent taxes,
penalties or interest.
Upon a hearing with notice the Oklahoma Tax Commission shall be
entitled to proceed by garnishment to collect any delinquent tax and
to collect any penalty or interest due and owing as a result of a tax
delinquency. Provided, that upon proper application under the
procedures outlined herein, the court may issue an order continuing
the garnishment for the collection of delinquent taxes, penalties or
interest until the total amount of such delinquent taxes, penalties
or interest have been collected.
Added by Laws 1985, c. 356, § 10, emerg. eff. July 30, 1985. Amended
by Laws 1986, c. 218, § 13, emerg. eff. June 9, 1986.
§68-255. Contracting with debt collection agency to collect
delinquent taxes.
A. In order to facilitate and expedite the collection of taxes
more than ninety (90) days overdue from any taxpayer, the Oklahoma
Tax Commission may enter into a contract with a debt collection
agency doing business in the State of Oklahoma or in any other state
for the collection of such delinquent taxes in addition to all other
taxes accrued or accruing, including penalties and interest thereon,
from the taxpayer. The contract shall only authorize the debt
collection agency to collect tax liabilities which are already
established and the Tax Commission shall not refer accounts to the
debt collection agency unless the Tax Commission has notified the
taxpayer, by first class mail, of the liability and has made
additional efforts to collect the debt. Provided, if a sales tax
permit holder fails to file two or more sales tax returns, as
required under Section 1365 of this title, or a taxpayer required to
remit withholding taxes fails to file two or more withholding tax
returns, as required under Section 2385.3 of this title, the Tax
Commission may refer the accounts to the debt collection agency prior
to the establishment of the tax liability, but only after the
Commission has notified the taxpayer as required under this
subsection.
B. If an account has been referred to a debt collection agency,
the Tax Commission shall review all payments posted by the collection
agency prior to commencing any further collection activity against
the taxpayer. Further, the collection agency shall review all
payments posted by the Tax Commission prior to commencing any
collection activity. The Tax Commission or the collection agency
shall, within ten (10) business days, provide the taxpayer with a
written confirmation of all payments received and any balance due.
In addition, the contract shall not authorize the debt collection
agency to conduct audits or examine the books and records of a
taxpayer in any manner. The Tax Commission may also enter into a
contract with a person doing business in the State of Oklahoma or in
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any other state for the purpose of identifying and locating the
assets of such delinquent taxpayer. Such contracts authorized by
this section shall be subject to the provisions of The Oklahoma
Central Purchasing Act.
C. In addition to the authority provided in subsection A of this
section, the Tax Commission may enter into a contract for the purpose
of identifying nonresident businesses and individuals who are
required by law to file and pay Oklahoma state taxes and who are
presently unknown to the Tax Commission.
D. Prior to entering into such a contract with a debt collection
agency, the Tax Commission shall require that the debt collection
agency file a bond in the amount of One Hundred Thousand Dollars
($100,000.00). The bond shall be a bond from a surety company
chartered or authorized to do business in this state, cash bond,
certificates of deposits, certificates of savings or U.S. Treasury
bonds, as the Tax Commission may deem necessary to guarantee
compliance with the terms of the contract.
E. Each contract entered into by the Tax Commission with a debt
collection agency, pursuant to the provisions of this section, shall
specify that fees for services rendered, reimbursements or other
remuneration shall be based on the total amount of delinquent taxes,
including accrued penalties and interest, which is actually
collected. No costs shall be reimbursed unless authorized in the
contract. Each contract entered into between the Tax Commission and
a debt collection agency shall provide for the payment of fees for
such services, reimbursements or other remuneration not in excess of
thirty-five percent (35%) of the total amount of delinquent taxes,
penalty and interest actually collected. The debt collection agency
contract fee shall be added to the amount of the delinquent taxes,
accrued penalties and interest collected from the taxpayer. The
total amount of the delinquent tax, accrued penalties and interest,
and the debt collection agency contract fee shall be owed and
collected from the taxpayer.
F. Each contract entered into by the Tax Commission with a
person for the purpose of identifying and locating assets of
delinquent taxpayers shall specify the amount of money to be paid for
the performance of such services. No costs shall be reimbursed
unless authorized in the contract.
G. All such funds collected by a debt collection agency,
including the fees for collection services as provided for in such
contract, shall be remitted to the Tax Commission within five (5)
days from the date of collection from a taxpayer. The Tax Commission
shall pay from such remitted fees the amount of fees to which such
debt collecting agency is entitled for services performed pursuant to
the provisions of such contract. All assets of such delinquent
taxpayers which are identified and located shall be reported to the
Tax Commission within five (5) days from the date of identification
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and location. Forms to be used for such remittances and reports
shall be prescribed by the Tax Commission.
H. A debt collection agency entering into a contract with the
Tax Commission or a person entering into a contract with the Tax
Commission for asset location purposes pursuant to this section shall
agree that it is receiving income from sources within this state or
doing business in this state for purposes of the Oklahoma tax laws.
Debt collection agency employees and/or their agents shall not
disclose confidential tax information except as authorized by Section
205 of this title, subject to the penalties contained therein.
Added by Laws 1986, c. 218, § 14, emerg. eff. June 9, 1986. Amended
by Laws 1994, c. 385, § 2, eff. Sept. 1, 1994; Laws 1997, c. 294, §
11, eff. July 1, 1997; Laws 1998, c. 385, § 5, eff. July 1, 1998;
Laws 2006, c. 223, § 1, eff. Nov. 1, 2006; Laws 2009, c. 426, § 5,
eff. July 1, 2009; Laws 2010, c. 412, § 10, eff. July 1, 2010; Laws
2011, c. 348, § 3.
§68-255.1. Repealed by Laws 1994, c. 385, § 4, eff. Sept. 1, 1994.
§68-256. Taxpayer assistance program.
A. The Tax Commission shall establish a taxpayer assistance
program to provide information and problem-solving expertise to the
general public regarding the tax laws of this state. Said program
shall include, but not be limited to, the following:
1. The installation of toll-free telephone lines within the
Commission in order to provide information and problem-solving
assistance to the general public. Such telephone lines shall provide
access to Tax Commission employees who are specially trained and
equipped to provide such assistance;
2. The preparation and distribution of publications providing
information to the taxpayer regarding the tax laws of this state.
Such publications shall be made available statewide; and
3. The presentation of taxpayer education programs by specially
trained Tax Commission employees throughout the state to inform the
general public regarding the state tax laws and to provide problem-
solving assistance to taxpayers.
B. The Tax Commission is authorized to expend necessary
available funds, including contracting with third parties, to
publicly advertise the programs and assistance available for the
filing of returns and the payment of taxes and education of the tax
laws of this state. Such advertising may include advertising that
focuses on social networking services.
Added by Laws 1986, c. 218, § 15, emerg. eff. June 9, 1986. Amended
by Laws 2017, c. 327, § 3, eff. July 1, 2017.
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§68-256.1. Program to educate businesses selling or leasing tangible
personal property without a permit.
A. The Oklahoma Tax Commission shall establish a program that
focuses on educating businesses, as well as identifying and
registering businesses who are actively selling or leasing tangible
personal property in Oklahoma without a permit as required under
Section 1364 of Title 68 of the Oklahoma Statutes. Further, the Tax
Commission shall monitor and provide education to business owners of
their state tax responsibilities.
B. The program shall include the establishment of teams of Tax
Commission employees conducting visits to nonresidential retail
businesses to:
1. Determine the existence of a sales tax permit and other
required permits and licenses;
2. Verify accuracy and validity of licenses and permits;
3. Determine if the business is reporting and remitting taxes
properly; and
4. Provide information and assistance to the business owner on
tax reporting responsibilities.
C. The Tax Commission shall conduct such visits in a manner that
shall not disrupt the operations of a business location.
Added by Laws 2017, c. 327, § 2, eff. July 1, 2017.
§68-257. Notice of changes in state tax law.
The Tax Commission shall inform taxpayers that the Tax Commission
is not required to give actual notice to taxpayers of changes in any
state tax law. Such information shall be printed on all tax return
or report forms prescribed by the Tax Commission and on any Tax
Commission publications for general distribution as the Commission
may prescribe.
Added by Laws 1986, c. 218, § 16, operative July 1, 1987.
§68-258. Service of summons or notice in state tax proceedings.
Notwithstanding the provisions of any statute to the contrary,
employees of the Tax Commission may personally serve the necessary
summons or notice issued for any hearing, civil proceeding, or
criminal proceeding initiated by the Tax Commission pursuant to any
state tax law. Service by the Tax Commission pursuant to this
section shall have the same force and effect as if such service had
been made by any other person authorized by law to perform such
service. The provisions of this section shall not authorize the
execution of tax warrants by the Tax Commission.
Added by Laws 1986, c. 218, § 17, emerg. eff. June 9, 1986. Amended
by Laws 1998, c. 59, § 1, eff. Nov. 1, 1998.
§68-259. Additional penalty in criminal proceedings for violating
state tax law.
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An additional penalty of an amount equal to ten percent (10%) of
the amount of tax, penalty and interest, alleged and determined in a
criminal action to be due and delinquent, is imposed upon any person
convicted of, entering a plea of guilty, or entering a plea of nolo
contendere to a violation of a tax law of this state. The additional
penalty shall be added to and become a part of the total debt due the
state pursuant to the tax law allegedly violated. Upon collection of
the additional penalty imposed herein, the Oklahoma Tax Commission
shall transmit the revenue to the State Treasurer to be deposited in
the Oklahoma Tax Commission Fund. The revenue from the additional
penalty herein shall be apportioned by the Oklahoma Tax Commission to
the county treasurers for deposit to the appropriate fund of the
district attorney to reimburse the district attorney for costs of
prosecution of criminal actions for violations of state tax laws.
Added by Laws 1986, c. 218, § 18, operative July 1, 1986.
§68-260. Repealed by Laws 2006, c. 327, § 8, eff. July 1, 2006.
§68-261. Data processing services - Bonds - Contracts.
The Oklahoma Tax Commission may expend funds for data processing
services necessary to microfilm, record, or otherwise preserve
information in the files and records of the Commission. Any
nongovernmental entity contracting to provide data processing
services for the Commission shall provide a surety bond in an amount
set by the Commission of not less than Twenty-five Thousand Dollars
($25,000.00). The Commission may enter into such contracts when it
deems the contracts to be necessary for the performance of the duties
imposed upon the Commission by law. Any governmental or
nongovernmental entity contracting with the Commission to provide
data processing services shall be subject to the penalty provisions
of Section 205 of Title 68 of the Oklahoma Statutes.
Added by Laws 1986, c. 269, § 11, operative July 1, 1986.
§68-262. Audits of entities believed to owe additional taxes.
The Oklahoma Tax Commission may contract with private auditors or
audit firms to audit the books of individuals, firms, or corporations
which the Tax Commission believes may owe the State of Oklahoma
additional tax monies. The Tax Commission may contract and may
expend monies from the Oklahoma Tax Commission Reimbursement Fund to
enter into such contracts. However, in no instance shall any such
contract be paid upon a percentage basis, or on any basis whereby the
compensation under the contract is dependent upon the amount of
monies collected. Any such contract containing a provision whereby
the compensation is conditioned upon or measured directly or
indirectly by the amount of money collected shall be void and
unenforceable. The Tax Commission may contract and may expend monies
from the Oklahoma Tax Commission Reimbursement Fund in payment of a
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reasonable fee of the delivered funds in payment of contracts entered
into with temporary service companies or professional collection
agencies as necessary for the collection of delinquent taxes or other
monies owed to the state. Such payment shall not be made until the
funds have been deposited with the Tax Commission. Temporary
employees or contractors hereunder shall not disclose confidential
tax information except as authorized by Section 205 of this title,
subject to the penalties contained therein.
Added by Laws 1986, c. 269, § 12, operative July 1, 1986. Amended by
Laws 1994, c. 385, § 3, eff. Sept. 1, 1994; Laws 1996, c. 290, § 23,
eff. July 1, 1996; Laws 1998, c. 240, § 1, eff. Nov. 1, 1998.
§68-263. Attachment of sums due taxpayer from state.
A. If any tax warrant or certificate remains outstanding and
unpaid, the Tax Commission may issue an order attaching the sums due
or to become due, up to the amount of the liability upon such tax
warrant or certificate, upon any contract between the taxpayer named
in such tax warrant or certificate and the State of Oklahoma or any
department, board, institution, commission or agency thereof, for the
furnishing of any services, goods, merchandise, supplies, materials
or equipment for which payment is made upon claims approved by the
Office of Management and Enterprise Services.
B. A certified copy of the attachment order shall be delivered
to the Director of the Office of Management and Enterprise Services
and notice of such attachment shall be mailed to the taxpayer at the
taxpayer's last-known address.
C. From and after receipt of the attachment order, the Director
of the Office of Management and Enterprise Services shall not pay nor
shall the State Treasurer issue any check or warrant for payment to
the taxpayer for the sums or funds so attached without a written
release from the Tax Commission.
D. The attachment orders issued by the Tax Commission shall
continue in force until released by the Tax Commission. The Tax
Commission may issue subsequent or successive attachment orders,
which shall be cumulative.
E. If the taxpayer fails within thirty (30) days after his claim
upon such contract, or contracts if there are more than one, has been
initially received by the Director of the Office of Management and
Enterprise Services, or within thirty (30) days after the mailing of
notice of such attachment, whichever is later, to obtain and file
with the Director of the Office of Management and Enterprise Services
a release executed by the Tax Commission, the Director of the Office
of Management and Enterprise Services shall authorize the payment to
the Tax Commission of the sums or funds attached, or so much thereof
as have been certified for payment pursuant to procedures prescribed
by the Director of the Office of Management and Enterprise Services.
Such payments to the Tax Commission shall be credited against the
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liability on the tax warrant or certificate, and shall constitute to
the extent thereof, payment by the state, department, board,
institution, commission or agency to the taxpayer upon such contract.
F. The Tax Commission may release funds from the claims or
contracts attached to effectuate payment of the liability on such tax
warrant or certificate or to protect the interest of the state, and
shall release the funds attached within thirty (30) days of full
payment of such liability.
G. The provisions of this section shall not apply to payroll
claims of or on behalf of employees of this state.
H. No person, firm or corporation that is delinquent in the
reporting or paying of any tax due under the laws of this state shall
be registered as a vendor under the provisions of Section 85.33 of
Title 74 of the Oklahoma Statutes, nor included on the approved
bidder lists maintained by the Purchasing Division of the Office of
Management and Enterprise Services.
Added by Laws 1986, c. 301, § 30, operative July 1, 1986. Amended by
Laws 2012, c. 304, § 535.
§68-264. Contract and release of taxpayer information to certain
entities – Search for nonregistered taxpayers, nonfilers and
underreporting taxpayers - Confidentiality - Penalty.
A. Notwithstanding the provisions of Section 205 of this title
and Section 85.7 of Title 74 of the Oklahoma Statutes, the Oklahoma
Tax Commission is authorized to enter into a contract with and
release taxpayer information to entities deemed to be qualified by
the Tax Commission to acquire or utilize their technology systems or
information to detect nonregistered taxpayers, nonfilers and
underreporting taxpayers. Functions and duties to be performed by
the contracting entity may include registration, processing, and
collection functions and other functions deemed necessary by the Tax
Commission.
B. Compensation shall be based on a percentage of the additional
tax revenues attributable to the implementation and use of the
technology systems or information. The contract may provide for
additional fixed fees for services performed under the contract to be
paid from monies appropriated by the Legislature or from the
additional tax revenues.
C. The taxpayer information released to the contracting party
shall be considered confidential and privileged and neither the
contracting party nor its employees shall disclose any information
obtained from the records or files. A violation of any of the
provisions of this section shall constitute a misdemeanor punishable
in the same manner and to the same extent as a violation of any of
the provisions of Section 205 of this title.
D. The Tax Commission shall pay from the taxes collected and
attributable to the utilization of the acquired technology systems
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the amount of fees the contracting party is entitled for services
performed pursuant to the contract.
E. The Tax Commission shall enter into a contract with entities
deemed to be qualified by the Tax Commission to acquire or utilize
their technology systems or information and services to authenticate
income tax returns and identify fraudulent refund claims. The Tax
Commission is authorized to expend necessary available monies,
including monies from the fund created pursuant to Section 265 of
this title, to acquire such technology and services and shall be
exempt from the provisions of Section 85.7 of Title 74 of the
Oklahoma Statutes for the purpose of implementing this section.
F. Notwithstanding the provisions of Section 205 of this title,
the Tax Commission may release taxpayer information as necessary
pursuant to a contract entered into pursuant to the provisions of
paragraph E of this section. The taxpayer information released to
the contracting party shall be considered confidential and
privileged, and neither the contracting party nor its employees shall
disclose any information obtained from the records or files. A
violation of any of the provisions of this section shall constitute a
misdemeanor punishable in the same manner and to the same extent as a
violation of any of the provisions of Section 205 of this title.
Added by Laws 2002, c. 154, § 1, emerg. eff. April 29, 2002. Amended
by Laws 2003, c. 472, § 7; Laws 2015, c. 291, § 1.
§68-265. Oklahoma Tax Commission and Office of Management and
Enterprise Services Joint Computer Enhancement Fund.
A. There is hereby created in the State Treasury a fund for the
Oklahoma Tax Commission to be known as the "Oklahoma Tax Commission
and Office of Management and Enterprise Services Joint Computer
Enhancement Fund". The fund shall be a continuing fund, not subject
to fiscal year limitations, and shall consist of all monies deposited
to the fund pursuant to law. All monies accruing to the credit of
said fund are hereby appropriated and may be budgeted and expended
for the purposes authorized by subsection B of this section.
Expenditures from said fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
B. Monies in the Oklahoma Tax Commission and Office of
Management and Enterprise Services Joint Computer Enhancement Fund
shall be expended for the following purposes:
1. To make payments on an agreement authorized by Section 5,
Chapter 278, O.S.L. 2008;
2. To make payments authorized by Section 34.33 of Title 62 of
the Oklahoma Statutes; and
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3. To the extent not needed for the above-listed purposes to be
expended on other projects as specifically authorized by the
Legislature.
C. Notwithstanding any other provision of law, there shall be
apportioned to the Oklahoma Tax Commission and Office of Management
and Enterprise Services Joint Computer Enhancement Fund from the
monies that would otherwise be apportioned by Section 2352 of this
title, the revenue received as a result of any contracts entered into
by the Oklahoma Tax Commission pursuant to Section 264 of this title.
D. The Tax Commission is hereby authorized to deposit to the
credit of the Oklahoma Tax Commission and Office of Management and
Enterprise Services Joint Computer Enhancement Fund any monies in
excess of the amounts necessary to pay all claims presented to its
cash security reserve fund. When monies are deposited to the credit
of the Computer Enhancement Fund, the right of any person to present
a claim for refund of a cash security shall be preserved and the
value thereof shall be paid from the cash security reserve fund.
E. For the fiscal year beginning July 1, 2015, and thereafter a
portion of the revenue apportioned to the Oklahoma Tax Commission and
Office of Management and Enterprise Services Joint Computer
Enhancement Fund pursuant to Sections 1353, 1403 and 2352 of this
title shall be credited to the Oklahoma Tax Commission, in an amount
which is equal to the sum of one-half of one percent (0.5%) of gross
collections of sales and use tax levied by counties of this state
pursuant to Section 1370 of this title and one-half of one percent
(0.5%) of sales and use tax levied by municipalities of this state
pursuant to Section 2701 of this title.
Added by Laws 2008, c. 278, § 6, eff. July 1, 2008. Amended by Laws
2009, c. 426, § 6, eff. July 1, 2009; Laws 2010, c. 412, § 11, eff.
July 1, 2010; Laws 2012, c. 304, § 536; Laws 2014, c. 303, § 1, eff.
July 1, 2015.
§68-270. Certification of credit qualification – Report of credits
claimed and allowed.
A. Notwithstanding any other provisions of this section, the
Oklahoma Tax Commission shall, upon request of any taxpayer or the
taxpayer's authorized agent, representative or attorney, provide
certification in writing of qualification for the credits in the
following sections of law:
1. Section 2357.7 of this title;
2. Section 2357.11 of this title;
3. Section 2357.32A of this title;
4. Section 2357.41 of this title; and
5. Section 2357.42 of this title.
B. On or before November 1 of each year subsequent to the
effective date of this section, the Oklahoma Tax Commission shall
file a report with the Speaker of the Oklahoma House of
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Representatives, the President Pro Tempore of the State Senate and
the Director of the Office of Management and Enterprise Services,
stating the amount of credits claimed and allowed.
Added by Laws 2005, c. 381, § 14, eff. July 1, 2005. Amended by Laws
2012, c. 304, § 537.
§68-281. Oklahoma Tax Commission - Coordinating with city and county
governments to increase sales and use collection.
The Oklahoma Tax Commission shall coordinate with city and county
governments to increase state and local sales and use tax collections
through joint enforcement efforts. Provided, the Tax Commission
shall maintain central administration, and sales and use tax
remitters shall not be subjected to duplicate audits, reports, or
other collection efforts.
Added by Laws 2010, c. 412, § 12, eff. July 1, 2010.
§68-282. Ban on class action suits related to the gross receipts tax
on mixed beverages.
Notwithstanding any other provision of law, one or more members
of a class may not sue as representative parties on behalf of all
members of a class, and a court may not hereafter certify a class, on
any claim arising from the collection of monies denominated as gross
receipts tax on mixed beverages, sales tax or use tax, or in which
the damages sought or the injury claimed is monies that have been
collected as, or denominated as, gross receipts tax on mixed
beverages, sales tax or use tax, and which have been remitted to the
Oklahoma Tax Commission or other governmental taxing authority.
Added by Laws 2013, c. 369, § 2.
§68-283. Aggregate business filing and remittance.
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(
B. In order to use the aggregate business filing and remittance
procedures for a taxable period, a person or entity doing business in
this state shall make an election on a form and according to a
schedule prescribed by the Oklahoma Tax Commission. Such election
shall authorize the person or entity to use the aggregate business
filing and remittance procedures in lieu of the filing and remittance
procedures otherwise required but shall not exempt or otherwise limit
the liability of the taxpayer for amounts due pursuant to the
Oklahoma Income Tax Act, the Franchise Tax Code and the Oklahoma
General Corporation Act.
C. For purposes of this section, "person or entity doing
business in this state" shall mean a person or entity who:
1. Is domiciled in this state as an individual for business
purposes or is domiciled in this state for corporate, commercial or
other business purposes;
2. Owns or uses a part or all of its capital in this state;
3. Has at any time during the calendar year property in this
state with an aggregate value of at least Fifty Thousand Dollars
($50,000.00). For the purpose of this subsection, owned property is
valued at original cost and rented property is valued at eight times
the net annual rental charge;
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4. Has during the calendar year payroll in this state of at
least Fifty Thousand Dollars ($50,000.00). Payroll in this state
includes all of the following:
a. any amount subject to withholding by the person under
Section 2385.2 of this title,
b. any other amount the person pays as compensation to an
individual under the supervision or control of the
person for work done in this state, and
c. any amount the person pays for services performed in
this state on its behalf by another;
5. Has during the calendar year sales in this state of at least
Five Hundred Thousand Dollars ($500,000.00);
6. Has at any time during the calendar year within this state at
least twenty-five percent (25%) of the person's total property, total
payroll, or total sales; or
7. Otherwise has a nexus with this state to an extent that the
person can be required to remit the tax imposed under the Oklahoma
Income Tax Act, the Franchise Tax Code and, that which is required
pursuant to the Oklahoma General Corporation Act but otherwise
remitted to the Oklahoma Tax Commission.
Added by Laws 2015, c. 156, § 1, eff. Nov. 1, 2015.
§68-291. Incidence analysis of legislative measures to change the
tax system.
A. At the request of the Chair of the Finance Subcommittee of
the House Appropriations and Budget Committee or the Senate Finance
Committee, the Oklahoma Tax Commission shall prepare an incidence
impact analysis of a bill or a proposal to change the tax system
which increases, decreases, or redistributes taxes by more than
Twenty Million Dollars ($20,000,000.00). To the extent data is
available on the changes in the distribution of the tax burden that
are affected by the bill or proposal, the analysis shall report on
the incidence effects that would result if the bill were enacted.
The report may present information using systemwide measures, such as
the Suits or other similar indexes, by income classes, taxpayer
characteristics or other relevant categories. The report may include
analyses of the effect of the bill or proposal on representative
taxpayers. The analysis must include a statement of the incidence
assumptions that were used in computing the burdens.
B. The incidence analyses shall use the broadest measure of
economic income for which reliable data is available.
Added by Laws 2017, c. 197, § 1, eff. Nov. 1, 2017.
§68-295. Tax credit data available online.
A. The Oklahoma Tax Commission is authorized and directed to
make tax credit data available on its website. Data shall be made
available in an open-structured data format that may be downloaded by
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the public and that allows the user to systematically sort, search
and access all data without any fee or charge for access. As used in
this section, "tax credit" means a credit pursuant to the Oklahoma
Income Tax Act against tax liability which is taken by a taxpayer.
B. Such website shall also include, but not be limited to:
1. A brief explanation of the credit, including the year the
credit was first allowed to taxpayers; and
2. The following information for tax year 2013 and each tax year
thereafter for each credit:
a. the amount of credits claimed,
b. the amount of credits used to reduce tax liability or
refunded to taxpayers,
c. the amount of credits carried over to a future tax
year, if available,
d. the number of taxpayers claiming the credit, and
e. the annual growth rate in the number and amount of
credits claimed.
C. The provisions of subsection A of this section shall be
applicable to tax credits enacted prior to and after the effective
date of this act.
D. Notwithstanding the provisions of Section 205 of Title 68 of
the Oklahoma Statutes, the Tax Commission is authorized to provide
the information in subsection B of this section regardless of the
number of taxpayers claiming the credit.
E. The Tax Commission shall make the data available on its
website on or before January 1, 2020.
Added by Laws 2018, c. 288, § 1, eff. Nov. 1, 2018.
§68-301. Definitions.
For purposes of Section 301 et seq. of this title:
1. The term "cigarette" is defined to mean and include all
rolled tobacco or any substitute therefor, wrapped in paper or any
substitute therefor and weighing not to exceed three (3) pounds per
thousand cigarettes;
2. The term "person" is defined to mean and include any
individual, company, partnership, joint venture, joint agreement,
association (mutual or otherwise), limited liability company,
corporation, estate, trust, business trust receiver, or trustee
appointed by any state or federal court, or otherwise, syndicate, or
any political subdivision of the state or combination acting as a
unit, in the plural or singular number;
3. The term "wholesaler", “distributor” and/or "jobber" is
defined to mean and include a person, firm or corporation organized
and existing, or doing business, primarily to sell cigarettes to, and
render service to retailers in the territory such person, firm or
corporation chooses to serve, and that:
a. purchases cigarettes directly from the manufacturer,
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b. at least seventy-five percent (75%) of whose gross
sales are made at wholesale,
c. handles goods in wholesale quantities and sells through
salespersons, advertising and/or sales promotion
devices,
d. carries at all times at its principal place of business
a representative stock of cigarettes for sale, and
e. comes into the possession of cigarettes for the purpose
of selling them to retailers or to persons outside or
within the state who might resell or retail such
cigarettes to consumers.
In addition to the foregoing, and irrespective of the percentage
or type of sales, the term "wholesaler", “distributor” and/or
“jobber” shall also include all purchasers of cigarettes making
purchases directly from the manufacturer for distribution at
wholesale or retail sale and this shall not affect the requirements
relating to retail licenses;
4. The term "retailer" is defined to be:
a. a person who comes into the possession of cigarettes
for the purpose of selling, or who sells them at
retail, or
b. a person, not coming within the classification of
wholesaler, distributor and/or jobber as herein
defined, having possession of more than one thousand
cigarettes;
5. The term "consumer" is defined to be a person who receives or
who in any way comes into possession of cigarettes for the purpose of
consuming them, giving them away, or disposing of them in a way other
than by sale, barter or exchange;
6. The term "Tax Commission" is defined to mean the Oklahoma Tax
Commission;
7. The term "sale" and/or "sales" is hereby defined to be and
declared to include sales, barters, exchanges and every other manner,
method and form of transferring the ownership of personal property
from one person to another, and is also declared to be the use or
consumption in this state in the first instance of cigarettes
received from without the state or of any other cigarettes upon which
the tax has not been paid. The term "first sale" shall mean and
include the first sale or distribution of cigarettes in intrastate
commerce or the first use or consumption of cigarettes within this
state;
8. The term "stamp" as herein used shall mean the stamp or
stamps by use of which:
a. the tax levied pursuant to the provisions of Section
301 et seq. of this title is paid,
b. the tax levied pursuant to the provisions of Section
349 of this title is paid, or
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c. the payment in lieu of taxes authorized pursuant to a
compact entered into by the State of Oklahoma and a
federally recognized Indian tribe or nation pursuant to
the provisions of subsection C of Section 346 of this
title is paid;
9. The term "drop shipment" shall mean and include any delivery
of cigarettes received by any person within this state when payment
for such cigarettes is made to the shipper or seller by or through a
person other than the consignee;
10. The term "distributing agent" shall mean and include every
person in this state who acts as an agent of any person outside the
state by receiving cigarettes in interstate commerce and storing such
cigarettes subject to distribution or delivery upon order from the
person outside the state to distributors, wholesale dealers and
retail dealers, or to consumers. The term "distributing agent" shall
also mean and include any person who solicits or takes orders for
cigarettes to be shipped in interstate commerce to a person in this
state by a person residing outside of Oklahoma, the tax not having
been paid on such cigarettes;
11. The term "vending machine" shall mean and include any coin
operating machine, contrivance, or device, by means of which
cigarettes are sold or dispensed in their original container;
12. The term "use" means and includes the exercise of any right
or power over cigarettes incident to the ownership or possession
thereof, except that it shall not include the sale of cigarettes in
the regular course of business;
13. a. The term “delivery sale” means any sale of cigarettes
to a consumer in Oklahoma where either:
(1) the purchaser submits the order for such sale by
means of a telephonic or other method of voice
transmission, the mails or any other delivery
service, or the Internet or other online service,
or
(2) the cigarettes are delivered by use of the mails
or other delivery service.
b. A sale of cigarettes which satisfies the criteria in
subparagraph a of this paragraph shall be a delivery
sale regardless of whether the seller is located within
or outside of Oklahoma.
c. A sale of cigarettes not for personal consumption to a
person who is a wholesale dealer or a retail dealer
shall not be a delivery sale.
d. For purposes of this paragraph, any sale of cigarettes
to an individual in Oklahoma shall be treated as a sale
to a consumer unless such individual is licensed as a
distributor or retailer of cigarettes by the Tax
Commission;
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14. The term “delivery service” means any person, including but
not limited to the United States Postal Service, that is engaged in
the commercial delivery of letters, packages, or other containers;
15. The term “manufacturer” means any person who manufactures,
fabricates, assembles, processes, or labels a finished cigarette; or
imports, either directly or indirectly, a finished cigarette for sale
or distribution in this state;
16. The term “mails” or “mailing” means the shipment of
cigarettes through the United States Postal Service;
17. The term “shipping container” means a container in which
cigarettes are shipped in connection with a delivery sale; and
18. The term “shipping documents” means bills of lading,
airbills, or any other documents used to evidence the undertaking by
a delivery service to deliver letters, packages, or other containers.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1988, c. 47, § 13, operative July 1, 1988; Laws 1992, c. 339,
§ 14, eff. Jan. 1, 1993; Laws 1993, c. 366, § 28, eff. Sept. 1, 1993;
Laws 2003, c. 475, § 1, eff. Nov. 1, 2003.
§68-302. Stamp excise tax upon sale, use, gift, possession or
consumption of cigarettes.
There is hereby levied upon the sale, use, gift, possession, or
consumption of cigarettes within the State of Oklahoma a tax at the
rate of four (4) mills per cigarette. Beginning November 3, 1992,
the revenue resulting from the tax levied pursuant to this section
shall be apportioned by the Oklahoma Tax Commission and transmitted
to the State Treasurer, who shall deposit the same in the Oklahoma
Building Bonds of 1992 Sinking Fund. No part of the cigarette tax
receipts derived from the increase in the cigarette tax rate shall be
used in determining the amount of cigarette tax collections to be
paid into the State of Oklahoma Building Bonds of 1961 Sinking Fund
pursuant to the provisions of Sections 57.31 through 57.43 of Title
62 of the Oklahoma Statutes.
The tax hereby levied shall be paid only once on any cigarettes
sold, used, received, possessed, or consumed in this state. The tax
shall be evidenced by stamps which shall be furnished by and
purchased from the Tax Commission or by an impression of such tax by
the use of a metering device when authorized by the Tax Commission as
provided for in Section 301 et seq. of this title, and the stamps or
impression shall be securely affixed to one end of each package in
which cigarettes are contained or from which consumed.
The impact of the tax levied by the provisions of Section 301 et
seq. of this title is hereby declared to be on the vendee, user,
consumer, or possessor of cigarettes in this state, and, when the tax
is paid by any other person, such payment shall be considered as an
advance payment and shall thereafter be added to the price of the
cigarettes and recovered from the ultimate consumer or user. In
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making a sale of cigarettes in this state, a wholesaler or jobber may
separately state and show upon the invoice covering the sale the
amount of tax paid on the cigarettes sold. The tax shall be
evidenced by appropriate stamps attached to each package of
cigarettes sold. Every retailer who makes sales of cigarettes within
this state to persons for use or consumption shall separately show
the amount of tax paid as evidenced by appropriate stamps on each
package of cigarettes sold, and the tax shall be collected by the
retailer from the user or consumer. The provisions of this section
shall in no way affect the method of collection of tax on cigarettes
as now provided for by existing law. As to cigarettes packed in
quantities of less than ten, for distribution as samples, payment of
the tax may be made to the Tax Commission in a lump sum without
affixing stamps on such packages.
Notwithstanding any other provision of law, the tax levied
pursuant to the provisions of Section 301 et seq. of this title shall
be part of the gross proceeds or gross receipts from the sale of
cigarettes, as those terms are defined in paragraph 7 of Section 1352
of this title.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1984, c. 3, § 1, emerg. eff. Feb. 21, 1984; Laws 1984, c.
153, § 6, emerg. eff. April 21, 1984; Laws 1992, c. 350, § 17; Laws
1999, c. 390, § 5, emerg. eff. June 8, 1999.
§68-302-1. Additional tax on cigarettes - Rates - Apportionment of
revenues.
(a) In addition to the tax levied in Section 302 of this title,
there is hereby levied upon the sale, use, gift, possession, or
consumption of cigarettes, as defined in Sections 301 through 325 of
this title, within the State of Oklahoma a tax at the rate of two and
one-half (2 1/2) mills per cigarette. Such tax shall be evidenced by
tax stamps as now provided for by law for other cigarette taxes,
except that as to cigarette packages of less than ten cigarettes for
free distribution as samples, the tax levied in this section shall be
computed and paid as provided for other cigarette taxes without
affixing stamps on each such package.
(b) No part of the revenues resulting from the additional tax
levied in this section shall be used in determining the amount of
cigarette tax collections to be paid into the State of Oklahoma
Building Bonds of 1961 Sinking Fund pursuant to the provisions of
Sections 57.31 through 57.43 of Title 62 of the Oklahoma Statutes,
into the State of Oklahoma Building Bonds of 1965 Sinking Fund
pursuant to the provisions of Sections 57.51 through 57.60 of Title
62 of the Oklahoma Statutes, or into the State of Oklahoma
Institutional Building Bonds of 1965 Sinking Fund pursuant to the
provisions of Sections 57.61 through 57.73 of Title 62 of the
Oklahoma Statutes.
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(c) The revenues resulting from the additional tax levied in
this section through June 30, 1968, shall be apportioned by the
Oklahoma Tax Commission and transmitted to the State Treasurer, who
shall deposit the same in the State Treasury in a fund to be known as
the "State of Oklahoma Building Bonds of 1968 Reserve Fund", which
fund is hereby created. The Legislature shall appropriate monies
from such fund or so much thereof as may be deemed necessary; first,
for the payment of interest and principal upon any bonds issued for
capital improvements pursuant to the provisions of Section 38 of
Article X of the Oklahoma Constitution; second, for other capital
improvements at state institutions; third, for operating expenses of
such capital improvements; and fourth, for any other purposes of
state government. From and after July 1, 1968, all revenues
resulting from the additional tax levied in this section, except
revenues dedicated to the retirement of the State of Oklahoma
Building Bonds of 1968, Series A, B, C, D and E, or any refunding of
any or all of such series, and except revenues required to be
deposited in the Oklahoma Memorial Hospital Fund, shall be
apportioned by the Oklahoma Tax Commission and transmitted to the
State Treasurer, who shall deposit the same in the General Revenue
Fund.
(d) The cigarette tax levied in this section shall be collected
and administered in all respects not inconsistent with as now or
hereafter provided for by law for other cigarette taxes now levied,
collected and administered pursuant to the provisions of Sections 301
through 325 of this title.
Amended by Laws 1984, c. 3, § 2, emerg. eff. Feb. 21, 1984.
§68-302-2. Additional tax on cigarettes - Rates - Disposition of
revenue.
(a) In addition to the tax levied in Sections 302 and 302-1 of
this title, there is hereby levied upon the sale, use, gift,
possession, or consumption of cigarettes, as defined in Sections 301
through 325 of this title, within the State of Oklahoma a tax at the
rate of two and one-half (2 1/2) mills per cigarette. Such tax shall
be evidenced by tax stamps as now provided for; however, as to
cigarette packages of less than ten cigarettes for free distribution
as samples, the tax herein levied shall be computed and paid as
provided for other cigarette taxes without affixing stamps on each
such package.
(b) No part of the revenues resulting from the additional tax
levied in this section shall be used in determining the amount of
cigarette tax collections to be paid into the State of Oklahoma
Building Bonds of 1961 Sinking Fund pursuant to the provisions of
Sections 57.31 through 57.43 of Title 62 of the Oklahoma Statutes or
into the State of Oklahoma Building Bonds of 1965 Sinking Fund
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pursuant to the provisions of Sections 57.61 through 57.73 of Title
62 of the Oklahoma Statutes.
(c) Except as otherwise provided in this subsection, the revenue
resulting from the additional tax levied in this section shall be
apportioned by the Oklahoma Tax Commission and transmitted to the
State Treasurer, who shall deposit the same in the General Revenue
Fund of the State of Oklahoma. Beginning on the effective date of
this section, the revenue resulting from the additional tax levied in
this section shall be apportioned by the Oklahoma Tax Commission and
transmitted to the State Treasurer, who shall deposit the same in the
Oklahoma Building Bonds of 1992 Sinking Fund.
(d) The cigarette tax levied in this section shall be collected
and administered in all respects not inconsistent with as now or
hereafter provided for by law for other cigarette taxes now levied,
collected, and administered pursuant to the provisions of Sections
301 through 325 of this title.
Laws 1979, c. 195, § 5, eff. July 1, 1979; Laws 1980, c. 245, § 1,
emerg. eff. May 16, 1980; Laws 1981, c. 211, § 1, emerg. eff. June 1,
1981; Laws 1982, c. 46, § 1, emerg. eff. March 26, 1982; Laws 1984,
c. 3, § 3, emerg. eff. Feb. 21, 1984; Laws 1992, c. 350, § 18, eff.
§68-302-3. Additional tax on cigarettes - Rate - Apportionment of
revenues.
(a) In addition to the tax levied in Sections 302, 302-1 and
302-2 of Title 68 of the Oklahoma Statutes, except as otherwise
provided in this section, there is hereby levied upon the sale, use,
gift, possession, or consumption of cigarettes, as defined in
Sections 301 through 325 of Title 68 of the Oklahoma Statutes, within
the State of Oklahoma a tax at a rate reflecting the amount of the
reduction of the federal cigarette tax levied pursuant to the
provisions of subsection (b) of Section 5701 of the Internal Revenue
Code, scheduled to be effective October 1, 1985. However, if the
federal cigarette tax is increased subsequent to said reduction but
prior to January 1, 1986, and said federal cigarette tax is increased
by the amount of the reduction of said tax which was effective
October 1, 1985, the provisions of this section shall cease to be
effective. If the federal cigarette tax is increased subsequent to
said reduction but prior to January 1, 1986, and said federal
cigarette tax is increased by an amount less than the amount of the
reduction of said tax which was effective October 1, 1985, the tax
levied pursuant to the provisions of this section shall be at a rate
reflecting the difference between the amount of the reduction of
federal cigarette tax which was effective October 1, 1985, and the
amount of the increase of said tax. Such tax shall be evidenced by
tax stamps as now provided for by law for other cigarette taxes,
except that as to cigarette packages of less than ten cigarettes for
free distribution as samples, the tax therein levied shall be
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computed and paid as provided for other cigarette taxes without
affixing stamps on such package.
(b) No part of the revenues resulting from the additional tax
levied in this section shall be used in determining the amount of
cigarette tax collections to be paid into the State of Oklahoma
Institutional Building Bonds of 1961 Sinking Fund pursuant to the
provisions of Sections 57.31 through 57.43 of Title 62 of the
Oklahoma Statutes or into the State of Oklahoma Institutional
Building Bonds of 1965 Sinking Fund pursuant to the provisions of
Sections 57.61 through 57.73 of Title 62 of the Oklahoma Statutes.
(c) The revenue resulting from the additional tax levied in this
section shall be apportioned by the Oklahoma Tax Commission and
transmitted to the State Treasurer, who shall deposit the same in the
General Revenue Fund of the State of Oklahoma.
(d) The cigarette tax levied in this section shall be collected
and administered in all respects not inconsistent with as now or
hereafter provided for by law for other cigarette taxes now levied,
collected, and administered pursuant to the provisions of Sections
301 through 325 of Title 68 of the Oklahoma Statutes.
Added by Laws 1985, c. 179, § 72, operative Oct. 1, 1985. Amended by
Laws 1985, c. 301, § 1, operative Oct. 1, 1985.
§68-302-4. Additional excise tax on cigarettes - Rate -
Apportionment.
(a) In addition to the tax levied in Sections 302, 302-1, 302-2
and 302-3 of Title 68 of the Oklahoma Statutes, there is hereby
levied upon the sale, use, gift, possession, or consumption of
cigarettes, as defined in Sections 301 through 325 of Title 68 of the
Oklahoma Statutes, within the State of Oklahoma a tax at the rate of
two and one-half (2 1/2) mills per cigarette. Such tax shall be
evidenced by tax stamps as now provided for; however, as to cigarette
packages of less than ten cigarettes for free distribution as
samples, the tax herein levied shall be computed and paid as provided
for other cigarette taxes without affixing stamps on each such
package.
(b) No part of the revenues resulting from the additional tax
levied in this section shall be used in determining the amount of
cigarette tax collections to be paid into the State of Oklahoma
Building Bonds of 1961 Sinking Fund pursuant to the provisions of
Sections 57.31 through 57.43 of Title 62 of the Oklahoma Statutes or
into the State of Oklahoma Building Bonds of 1965 Sinking Fund
pursuant to the provisions of Sections 57.61 through 57.73 of Title
62 of the Oklahoma Statutes.
(c) Except as provided for in this subsection, the revenue
resulting from the additional tax levied in this section shall be
apportioned by the Oklahoma Tax Commission and transmitted to the
State Treasurer, who shall deposit the same in the General Revenue
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Fund of the State of Oklahoma. Beginning on the effective date of
this section, the revenue resulting from the additional tax levied in
this section shall be apportioned by the Oklahoma Tax Commission and
transmitted to the State Treasurer, who shall deposit the same in the
Oklahoma Building Bonds of 1992 Sinking Fund.
(d) The cigarette tax levied in this section shall be collected
and administered in all respects not inconsistent with as now or
hereafter provided for by law for other cigarette taxes now levied,
collected, and administered pursuant to the provisions of Sections
301 through 325 of Title 68 of the Oklahoma Statutes.
Added by Laws 1987, c. 113, § 5, operative June 1, 1987. Amended by
Laws 1992, c. 350, § 19.
§68-302-5. Tax on cigarettes in addition to tax levied in Sections
302 to 302- 4 - Rate - Apportionment.
A. Effective January 1, 2005, in addition to the tax levied in
Sections 302, 302-1, 302-2, 302-3 and 302-4 of this title, there is
hereby levied upon the sale, use, gift, possession, or consumption of
cigarettes, as defined in Sections 301 through 325 of this title,
within this state, a tax at the rate of forty (40) mills per
cigarette.
B. Except as provided in subsection D of this section, the
revenue resulting from the additional tax levied in subsection A of
this section shall be apportioned by the Oklahoma Tax Commission and
transmitted to the State Treasurer as follows:
1. Twenty-two and six-hundredths percent (22.06%) shall be
placed to the credit of the Health Employee and Economy Improvement
Act Revolving Fund created in Section 1010.1 of Title 56 of the
Oklahoma Statutes;
2. Three and nine-hundredths percent (3.09%) shall be placed to
the credit of the Comprehensive Cancer Center Debt Service Revolving
Fund created in Section 160.1 of Title 62 of the Oklahoma Statutes;
3. Before July 1, 2008, seven and fifty-hundredths percent
(7.50%) shall be placed to the credit of the Trauma Care Assistance
Revolving Fund created in Section 1-2530.9 of Title 63 of the
Oklahoma Statutes. On and after July 1, 2008, seven and fifty-
hundredths percent (7.50%) shall be allocated as follows:
a. every month, an amount equal to the actual amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to this paragraph for the same
month of the 2008 fiscal year shall be credited to the
Trauma Care Assistance Revolving Fund,
b. every month, any amount over and above the amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to subparagraph a of this
paragraph shall be credited to the Oklahoma Emergency
Response Systems Stabilization and Improvement
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Revolving Fund as created in Section 8 of this act
until the combined amount credited to the Oklahoma
Emergency Response Systems Stabilization and
Improvement Revolving Fund pursuant to this section and
Section 402-3 of this title is equal to a total of Two
Million Five Hundred Thousand Dollars ($2,500,000.00)
each year, and
c. any additional revenue allocated pursuant to this
paragraph shall be placed to the credit of the Trauma
Care Assistance Revolving Fund;
4. Three and nine-hundredths percent (3.09%) shall be placed to
the credit of the Oklahoma State University College of Osteopathic
Medicine Revolving Fund created in Section 160.2 of Title 62 of the
Oklahoma Statutes;
5. Twenty-six and thirty-eight-hundredths percent (26.38%) shall
be placed to the credit of the Oklahoma Health Care Authority
Medicaid Program Fund created in Section 5020 of Title 63 of the
Oklahoma Statutes for the purposes of maintaining programs and
services funded under the federal “Jobs and Growth Tax Relief
Reconciliation Act of 2003”, reimbursing city/county-owned hospitals,
increasing emergency room physician rates, and providing TEFRA 134,
also known as “Katie Beckett” services;
6. Two and sixty-five-hundredths percent (2.65%) shall be placed
to the credit of the Department of Mental Health and Substance Abuse
Services Revolving Fund created in Section 2-303 of Title 43A of the
Oklahoma Statutes;
7. Forty-four-hundredths of one percent (0.44%) shall be placed
to the credit of the Belle Maxine Hilliard Breast and Cervical Cancer
Treatment Revolving Fund created in Section 1-559 of Title 63 of the
Oklahoma Statutes;
8. One percent (1%) shall be placed to the credit of the
Teachers’ Retirement System Revolving Fund created in Section 158 of
Title 62 of the Oklahoma Statutes;
9. Two and seven-hundredths percent (2.07%) shall be placed to
the credit of the Education Reform Revolving Fund created in Section
41.29b of Title 62 of the Oklahoma Statutes;
10. Sixty-six-hundredths percent (0.66%) shall be placed to the
credit of the Tobacco Prevention and Cessation Revolving Fund created
in Section 1-105d of Title 63 of the Oklahoma Statutes;
11. Sixteen and eighty-three-hundredths percent (16.83%) shall
be placed to the credit of the General Revenue Fund; and
12. For fiscal years beginning July 1, 2004, and ending June 30,
2006, fourteen and twenty-three-hundredths percent (14.23%) shall be
apportioned to municipalities and counties that levy a sales tax, in
the proportions which total municipal and county sales tax revenue
was apportioned by the Tax Commission in the preceding month.
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For fiscal years beginning July 1, 2006, and thereafter, the
apportionment percentage specified in paragraph 12 of this subsection
will be adjusted by dividing the total municipal and county sales tax
revenue collected in the calendar year immediately preceding the
commencement of the fiscal year by the sum of the state sales tax
revenue and total municipal and county sales tax revenue collected in
the same year. This ratio shall be divided by the ratio of the total
municipal and county sales tax revenue collected in the calendar year
beginning January 1, 2004, and ending December 31, 2004, divided by
the sum of the state sales tax revenue and total municipal and county
sales tax revenue collected in the same year. The resulting quotient
shall be multiplied by fourteen and twenty-three-hundredths percent
(14.23%) to determine the apportionment percentage for the fiscal
year.
For fiscal years beginning July 1, 2006, and thereafter, any
adjustment to the percentage of revenues apportioned to
municipalities and counties shall be reflected in the percent of
revenues apportioned to the General Revenue Fund.
C. The tax shall be evidenced by tax stamps as now provided for;
however, as to cigarette packages of less than ten cigarettes for
free distribution as samples, the tax herein levied shall be computed
and paid as provided for other cigarette taxes without affixing
stamps on each such package.
D. The net amount of any revenue resulting from a payment in
lieu of excise taxes on cigarettes levied by this section, pursuant
to a compact with a federally recognized Indian tribe or nation after
deductions for deposits into trust accounts pursuant to such
compacts, shall be apportioned by the Tax Commission and transmitted
to the State Treasurer as follows:
1. Thirty-three and forty-nine-hundredths percent (33.49%) shall
be placed to the credit of the Health Employee and Economy
Improvement Act Revolving Fund created in Section 1010.1 of Title 56
of the Oklahoma Statutes;
2. Four and sixty-nine-hundredths percent (4.69%) shall be
placed to the credit of the Comprehensive Cancer Center Debt Service
Revolving Fund created in Section 160.1 of Title 62 of the Oklahoma
Statutes;
3. Before July 1, 2008, eleven and thirty-nine-hundredths
percent (11.39%) shall be placed to the credit of the Trauma Care
Assistance Revolving Fund created in Section 1-2522 of Title 63 of
the Oklahoma Statutes. On and after July 1, 2008, eleven and thirty-
nine-hundredths percent (11.39%) shall be allocated as follows:
a. every month, an amount equal to the actual amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to this paragraph for the same
month of the 2008 fiscal year shall be credited to the
Trauma Care Assistance Revolving Fund,
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b. every month, any amount over and above the amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to subparagraph a of this
paragraph shall be credited to the Oklahoma Emergency
Response Systems Stabilization and Improvement
Revolving Fund as created in Section 8 of this act
until the combined amount credited to the Oklahoma
Emergency Response Systems Stabilization and
Improvement Revolving Fund pursuant to this section and
Section 402-3 of this title is equal to a total of Two
Million Five Hundred Thousand Dollars ($2,500,000.00)
each year, and
c. any additional revenue allocated pursuant to this
paragraph shall be placed to the credit of the Trauma
Care Assistance Revolving Fund;
4. Four and sixty-nine-hundredths percent (4.69%) shall be
placed to the credit of the Oklahoma State University College of
Osteopathic Medicine Revolving Fund created in Section 160.2 of Title
62 of the Oklahoma Statutes;
5. Forty and six-hundredths percent (40.06%) shall be placed to
the credit of the Oklahoma Health Care Authority Medicaid Program
Fund created in Section 5020 of Title 63 of the Oklahoma Statutes for
the purposes of maintaining programs and services funded under the
federal “Jobs and Growth Tax Relief Reconciliation Act of 2003”,
reimbursing city/county-owned hospitals, increasing emergency room
physician rates, and providing TEFRA 134, also known as “Katie
Beckett” services;
6. Four and one-hundredths percent (4.01%) shall be placed to
the credit of the Department of Mental Health and Substance Abuse
Services Revolving Fund created in Section 2-303 of Title 43A of the
Oklahoma Statutes;
7. Sixty-seven-hundredths percent (0.67%) shall be placed to the
credit of the Belle Maxine Hilliard Breast and Cervical Cancer
Treatment Revolving Fund created in Section 1-559 of Title 63 of the
Oklahoma Statutes; and
8. One percent (1%) shall be placed to the credit of the Tobacco
Prevention and Cessation Revolving Fund created in Section 1-105d of
Title 63 of the Oklahoma Statutes.
E. No part of the revenues resulting from the additional taxes
levied in this section shall be used in determining the amount of
cigarette tax collections to be paid into:
1. The State of Oklahoma Building Bonds of 1961 Sinking Fund
pursuant to the provisions of Sections 57.31 through 57.43 of Title
62 of the Oklahoma Statutes;
2. The State of Oklahoma Institutional Building Bonds of 1965
Sinking Fund pursuant to the provisions of Sections 57.61 through
57.73 of Title 62 of the Oklahoma Statutes;
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3. The State of Oklahoma Institutional Building Bonds of 1965
Sinking Fund Series C and Series D pursuant to Sections 57.81 through
57.112 of Title 62 of the Oklahoma Statutes;
4. The State of Oklahoma Building Bonds of 1968 Sinking Fund
pursuant to the provisions of Sections 57.121 through 57.193 of Title
62 of the Oklahoma Statutes; or
5. The Oklahoma Building Bonds of 1992 Sinking Fund pursuant to
the provisions of Sections 57.300 through 57.313 of Title 62 of the
Oklahoma Statutes.
F. The cigarette taxes levied in this section shall be collected
and administered in all respects not inconsistent with as now or
hereafter provided for by law for other cigarette taxes now levied,
collected, and administered pursuant to the provisions of Sections
301 through 325 of this title.
Added by Laws 2004, c. 322, § 2, eff. Dec. 1, 2004 (State Question
No. 713, Legislative Referendum No. 336, adopted at election held
Nov. 2, 2004). Amended by Laws 2008, c. 393, § 9, eff. Nov. 1, 2008.
§68-302-6. Repealed by Laws 2014, c. 51, § 1, eff. Nov. 1, 2014 and
by Laws 2014, c. 88, § 1, eff. Nov. 1, 2014.
§68-302-7. Additional tax on cigarettes - Rates - Apportionment of
revenue.
A. For the purpose of providing revenue for the support of the
functions of state government, in addition to the tax levied in
Sections 302, 302-1, 302-2, 302-3, 302-4 and 302-5 of Title 68 of the
Oklahoma Statutes, there is hereby levied upon the sale, use, gift,
possession or consumption of cigarettes, as defined in Sections 301
through 325 of Title 68 of the Oklahoma Statutes, within this state,
a tax at the rate of fifty (50) mills per cigarette.
B. 1. Except as provided in paragraph 2 of this subsection, the
revenue resulting from the additional tax levied in subsection A of
this section shall be apportioned as provided in paragraph 3 of this
subsection.
2. The net amount of any revenue resulting from a payment in
lieu of excise taxes on cigarettes levied by this section, which net
amount shall be calculated after deductions for rebates owed pursuant
to a compact with a federally recognized Indian tribe or nation,
shall be apportioned as provided in paragraph 3 of this subsection.
3. a. Prior to July 1, 2019, the resulting revenues as
described by paragraphs 1 and 2 of this subsection
shall be apportioned by the Oklahoma Tax Commission and
transmitted to the State Treasurer who shall deposit
such revenue in the General Revenue Fund.
b. Beginning July 1, 2019, the resulting revenues as
described by paragraphs 1 and 2 of this subsection
shall be apportioned by the Oklahoma Tax Commission and
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transmitted to the State Treasurer, who shall deposit
such revenue to the credit of the State Health Care
Enhancement Fund, created in Enrolled House Bill No.
1016 of the 2nd Extraordinary Session of the 56th
Oklahoma Legislature.
C. No part of the revenues resulting from the additional taxes
levied in this section shall be used in determining the amount of
cigarette tax collections to be paid into:
1. The State of Oklahoma Building Bonds of 1961 Sinking Fund
pursuant to the provisions of Sections 57.31 through 57.43 of Title
62 of the Oklahoma Statutes;
2. The State of Oklahoma Institutional Building Bonds of 1965
Sinking Fund pursuant to the provisions of Sections 57.61 through
57.73 of Title 62 of the Oklahoma Statutes;
3. The State of Oklahoma Institutional Building Bonds of 1965
Sinking Fund Series C and Series D pursuant to the provisions of
Sections 57.81 through 57.112 of Title 62 of the Oklahoma Statutes;
4. The State of Oklahoma Building Bonds of 1968 Sinking Fund
pursuant to the provisions of Sections 57.121 through 57.193 of Title
62 of the Oklahoma Statutes; or
5. The Oklahoma Building Bonds of 1992 Sinking Fund pursuant to
the provisions of Sections 57.300 through 57.313 of Title 62 of the
Oklahoma Statutes.
D. The cigarette taxes levied in this section shall be collected
and administered as provided by law for other cigarette taxes now
levied, collected and administered pursuant to the provisions of
Sections 301 through 325 of Title 68 of the Oklahoma Statutes.
Added by Laws 2018, 2nd Ex. Sess., c. 8, § 2.
§68-302-7a. State Health Care Enhancement Fund.
There is hereby created in the State Treasury a fund to be
designated as the "State Health Care Enhancement Fund". The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of monies received pursuant to Section 2 of
Enrolled House Bill No. 1010 of the 2nd Extraordinary Session of the
56th Oklahoma Legislature and any monies designated to the fund by
law. All monies accruing to the credit of the fund shall be
appropriated at the discretion of the Legislature for the purpose of
enhancing the health of Oklahomans.
Added by Laws 2018, 2nd Ex. Sess., c. 12, § 1, eff. July 1, 2019.
NOTE: Section 3 of House Bill No. 1016, c. 12, of the 2nd
Extraordinary Session of the 56th Oklahoma Legislature states that
the provisions of this section shall be contingent upon the enactment
of the provisions of House Bill No. 1010, c. 8, of the 2nd
Extraordinary Session of the 56th Oklahoma Legislature. House Bill
No. 1010 was signed by the Governor on March 29, 2018.
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§68-303. Purpose of tax - Disposition of revenue.
The sale, gift, barter, or exchange of cigarettes, or the having
possession of cigarettes for consumption, is hereby declared to be
subject to taxation authorized by Section 12 of Article X of the
Oklahoma Constitution, and it is the purpose and intention of the
State of Oklahoma, and it is the purpose and intention of this
article, to provide revenue for the expense of the state government.
The revenues, including interest and penalties, collected under this
article shall be paid monthly by the Tax Commission to the State
Treasurer to be apportioned as follows: Of the amounts specified by
law to be used for the payment and discharge of the interest on and
the principal of the bonds issued pursuant to the provisions of
Sections 57.31 through 57.43, 57.61 through 57.73, 57.81 through
57.92, 57.101 through 57.112, 57.121 through 57.135 and 57.300
through 57.313 of Title 62 of the Oklahoma Statutes or any other law
providing for such payment and discharge, any amount in excess of the
amount necessary for such payment and discharge shall be deposited in
the General Revenue Fund of this state, to be paid out only on direct
appropriations of the Legislature of the State of Oklahoma.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1989, c. 279, § 12, operative July 1, 1989; Laws 1992, c.
350, § 20; Laws 1995, c. 337, § 1, eff. July 1, 1995.
§68-304. Licenses - Fees - Conditions - Revocation or suspension.
A. Every manufacturer and wholesaler of cigarettes in this
state, as a condition of carrying on such business, shall annually
secure from the Oklahoma Tax Commission a written license, and shall
pay therefor an annual fee of Two Hundred Fifty Dollars ($250.00).
Application for such license, which shall be made upon such forms as
prescribed by the Oklahoma Tax Commission, shall include the
following:
1. The applicant’s agreement to the jurisdiction of the Tax
Commission and the courts of this state for the purpose of
enforcement of the provisions of Section 301 et seq. of this title;
2. The applicant’s agreement to abide by the provisions of
Section 301 et seq. of this title and the rules promulgated by the
Tax Commission with reference thereto;
3. The wholesaler applicant’s agreement to sell cigarettes only
to licensed retailers or Indian tribal entities or licensees of
Indian tribal entities; and
4. The manufacturer applicant's agreement to sell cigarettes
only to a licensed wholesaler.
This license, which will be for the ensuing year, must at all
times be displayed in a conspicuous place so that it can be seen.
Persons operating more than one place of business must secure a
license for each place of business. "Place of business" shall be
construed to include the place where orders are received, or where
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cigarettes are sold. If cigarettes are sold on or from any vehicle,
the vehicle shall constitute a place of business and the regular
license fee shall be paid with respect thereto. However, if the
vehicle is owned or operated by a place of business for which the
regular fee is paid, the annual fee for the license with respect to
such vehicle shall be only Ten Dollars ($10.00). The expiration for
such vehicle license shall expire on the same date as the current
license of the place of business.
Provided, that the Tax Commission shall not authorize the use of
a stamp-metering device by any manufacturer or wholesaler who does
not maintain a warehouse or wholesale establishment or place of
business within the State of Oklahoma from which cigarettes are
received, stocked and sold and where such metering device is kept and
used; but the Tax Commission may, in its discretion, permit the use
of such metering device by manufacturers and wholesalers of
cigarettes residing wholly within another state where such state
permits a licensed Oklahoma resident, manufacturer or wholesaler of
cigarettes the use of the metering device of such state without first
requiring that such manufacturer or wholesaler establish a place of
business in such other state. The provisions of this subsection
relating to metering devices shall not apply to states which do not
require the affixing of tax stamps to packages of cigarettes before
same are offered for sale in such states.
B. Every retailer in this state, except Indian tribal entities
or licenses of Indian tribal entities, as a condition of carrying on
such business, shall secure from the Tax Commission a license and
shall pay therefor a fee of Thirty Dollars ($30.00). Application for
such license, which shall be made upon such forms as prescribed by
the Tax Commission, shall include the following:
1. The applicant’s agreement to the jurisdiction of the Tax
Commission and the courts of this state for the purpose of
enforcement of the provisions of Section 301 et seq. of this title;
2. The applicant’s agreement to abide by the provisions of
Section 301 et seq. of this title and the rules promulgated by the
Tax Commission with reference thereto;
3. The applicant’s agreement that it shall not purchase any
cigarettes for resale from a supplier that does not hold a current
wholesaler’s license issued pursuant to this section; and
4. The applicant’s agreement to sell cigarettes only to
consumers.
Such license, which will be for the ensuing three (3) years, must
at all times be displayed in a conspicuous place so that it can be
seen. Upon expiration of such license, the retailer to whom such
license was issued may obtain a renewal license which shall be valid
for three (3) years. The manner and prorated fee for renewals shall
be prescribed by the Tax Commission. Every person operating under
such license as a retailer and who owns or operates more than one
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place of business must secure a license for each place of business.
"Place of business" shall be construed to include places where orders
are received or where cigarettes are sold.
C. Every distributing agent shall, as a condition of carrying on
such business, pursuant to written application on a form prescribed
by and in such detailed form as the Tax Commission may require,
annually secure from the Tax Commission a license, and shall pay
therefor an annual fee of One Hundred Dollars ($100.00). An
application shall be filed and a license obtained for each place of
business owned or operated by a distributing agent. The license,
which will be for the ensuing year, shall be consecutively numbered,
nonassignable and nontransferable, and shall authorize the storing
and distribution of unstamped cigarettes within this state when such
distribution is made upon interstate orders only.
D. 1. All wholesale, retail, and distributing agent's licenses
shall be nonassignable and nontransferable from one person to another
person. Such licenses may be transferred from one location to
another location after an application has been filed with the Tax
Commission requesting such transfer and after the approval of the Tax
Commission.
2. Wholesale, retail, and distributing agent's licenses shall be
applied for on a form prescribed by the Tax Commission. Any person
operating as a wholesaler, retailer, or distributing agent must at
all times have a valid license which has been issued by the Tax
Commission. If any such person or licensee continues to operate as
such on a license issued by the Tax Commission which has expired, or
operates without ever having obtained from the Tax Commission such
license, such person or licensee shall, after becoming delinquent for
a period in excess of fifteen (15) days, pay to the Tax Commission,
in addition to the annual license fee, a penalty of twenty-five cents
($0.25) per day on each delinquent license for each day so operated
in excess of fifteen (15) days. The penalty provided for herein
shall not exceed the annual license fee for such license.
E. No license may be granted, maintained or renewed if any of
the following conditions applies to the applicant. For purposes of
this section, "applicant" includes any combination of persons owning
directly or indirectly, in the aggregate, more than ten percent (10%)
of the ownership interests in the applicant:
1. The applicant owes Five Hundred Dollars ($500.00) or more in
delinquent cigarette taxes;
2. The applicant had a cigarette manufacturer, wholesaler,
retailer or distributor license revoked by the Tax Commission within
the past two (2) years;
3. The applicant has been convicted of a crime relating to
stolen or counterfeit cigarettes, or receiving stolen or counterfeit
cigarettes or has been convicted of or has entered a plea of guilty
or nolo contendere to any felony;
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4. If the applicant is a cigarette manufacturer, the applicant
is neither:
a. a participating manufacturer as defined in Section II
(jj) of the Master Settlement Agreement as defined in
Section 600.22 of Title 37 of the Oklahoma Statutes,
nor
b. in full compliance with the provisions of paragraph 2
of subsection A of Section 600.23 of Title 37 of the
Oklahoma Statutes;
5. If the applicant is a cigarette manufacturer, if any
cigarette imported by such applicant is imported into the United
States in violation of 19 U.S.C., Section 1681a; or
6. If the applicant is a cigarette manufacturer, if any
cigarette imported or manufactured by the applicant does not fully
comply with the Federal Cigarette Labeling and Advertising Act, 15
U.S.C., Section 1331 et seq.
F. No person or entity licensed pursuant to the provisions of
this section shall purchase cigarettes from or sell cigarettes to a
person or entity required to obtain a license unless such person or
entity has obtained such license.
G. No person licensed as a retailer in this state shall:
1. Sell any cigarettes to any other person licensed as a
retailer in this state unless such sale is for the purpose of moving
inventory between stores which are part of the same company; or
2. Purchase any cigarettes from any person or entity other than
a wholesaler licensed pursuant to Section 301 et seq. of this title.
H. In addition to any civil or criminal penalty provided by law,
upon a finding that a licensee has violated any provision of Section
301 et seq. of this title, the Tax Commission may revoke or suspend
the license or licenses of the licensee pursuant to the procedures
applicable to revocation of a license set forth in Section 316 of
this title.
I. The Tax Commission shall create and maintain a web site
setting forth all current valid licenses and the identity of
licensees holding such licenses, and shall update the site no less
frequently than once per month.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1988, c. 47, § 14, operative July 1, 1988; Laws 1991, c. 342,
§ 10, emerg. eff. June 15, 1991; Laws 1994, c. 278, § 8, eff. Sept.
1, 1994; Laws 1995, c. 1, § 24, emerg. eff. March 2, 1995; Laws 2003,
c. 475, § 2, eff. Nov. 1, 2003; Laws 2005, c. 479, § 6, eff. July 1,
2005; Laws 2009, c. 434, § 2, eff. Jan. 1, 2010.
NOTE: Laws 1994, c. 258, § 6 repealed by Laws 1995, c. 1, § 40,
emerg. eff. March 2, 1995.
§68-305. Stamps required - Seizure.
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A. Every wholesaler doing business within this state and
required to secure a license as provided under Section 304 of this
title shall, upon withdrawal from storage, and before making any sale
or distribution of cigarettes for consumption thereof, affix or cause
the same to have affixed thereto the stamp or stamps as required by
Section 301 et seq. of this title. It shall be the duty of the
wholesaler to supply the necessary stamps to cover any and all drop
shipments of cigarettes billed to the retailer or consumer by the
wholesaler; and the wholesaler shall be liable to the Oklahoma Tax
Commission to perform this service. Wholesalers may apply stamps
only to cigarette packages that they have received directly from a
manufacturer or importer of cigarettes who possesses a valid and
current permit under Section 5712 of Title 26 of the United States
Code.
B. Every retailer who has received unstamped cigarettes from a
manufacturer or wholesaler not required to secure a license as
provided for under Section 304 of this title, or to affix stamps as
required under subsection A of this section, shall, within seventy-
two (72) hours, excluding Sundays and holidays, from the time such
cigarettes come into the retailer's possession, and before making any
sale or distribution for consumption thereof, affix stamps upon all
cigarette packages in the proper denomination and amount, as required
by Section 302 of this title.
C. It shall be unlawful for any person to sell or consume
cigarettes on which the tax, as levied by Section 301 et seq. of this
title, has not been paid, and which are not contained in packages to
which are securely affixed the stamps evidencing payment of the tax
imposed by Section 301 et seq. of this title.
D. If, upon examination of invoices or from other
investigations, the Tax Commission finds that cigarettes have been
sold without stamps affixed as required by Section 301 et seq. of
this title, the Tax Commission shall have the power to require such
person to pay to the Tax Commission a sum equal to twice the amount
of the tax due. If, under the same circumstances, a person is unable
to furnish evidence to the Tax Commission of sufficient stamp
purchases to cover unstamped cigarettes purchased, the prima facie
presumption shall arise that such cigarettes were sold without proper
stamps being affixed thereto.
E. 1. All contraband cigarettes upon which taxes are imposed by
Section 301 et seq. of this title and all cigarettes stamped, sold,
offered for sale or imported into this state in violation of the
provisions of Section 305.1 of this title which shall be found in the
possession, custody or control of any person, for the purpose of
being consumed, sold or transported from one place to another in this
state, for the purpose of evading or violating the provisions of
Section 301 et seq. of this title, or with intent to avoid payment of
the tax imposed hereunder, and any automobile, truck, conveyance or
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other vehicle whatsoever used in the transportation of such
cigarettes, and all paraphernalia, equipment or other tangible
personal property incident to the use of such purposes, found in the
place, building, vehicle or vehicles, where such cigarettes are
found, may be seized by any authorized agent of the Tax Commission,
or any sheriff, deputy sheriff, constable or other peace officer
within the state, without process. The same shall be, from the time
of such seizure, forfeited to the State of Oklahoma, and a proper
proceeding filed to maintain such seizure and prosecute the
forfeiture as herein provided.
2. All such cigarettes so seized shall first be listed and
appraised by the officer making such seizure and turned over to the
Tax Commission and a receipt therefor taken. The person making such
seizure shall immediately make and file a written report thereof,
showing the name of the person making such seizure, the place where
and the person from whom such property was seized, and an inventory
and appraisement thereof, at the usual and ordinary retail price of
such articles received, to the Tax Commission, and the Attorney
General, in the case of cigarettes stamped, sold, offered for sale or
imported into this state in violation of the provisions of Section
305.1 of this title. Within sixty (60) days of seizure, the person
from whom the property was seized may file a request for hearing with
the Tax Commission or the Attorney General to show why the seized
property should not be forfeited and destroyed. If a hearing is
requested, the owner of the cigarettes shall be given at least ten
(10) days' notice of the hearing. If no request for hearing is filed
within the time provided, the property seized will be forfeited and
destroyed.
3. Any and all such vehicles and property so seized shall first
be listed and appraised by the officer making such seizure and turned
over to the county sheriff of the county in which the seizure is made
and a receipt therefor taken. The person making such seizure shall
immediately make and file a written report thereof, showing the name
of the person making such seizure, the place where and the person
from whom such property was seized, and an inventory and appraisement
thereof, at the usual and ordinary retail price of such articles
received, to the Tax Commission. The district attorney of the county
in which the seizures are made shall, at the request of the Tax
Commission or Attorney General, file in the district court forfeiture
proceedings in the name of the State of Oklahoma, as plaintiff, and
in the name of the owner or person in possession, as defendant, if
known, and if unknown in the name of the property seized. The clerk
of the court shall issue summons to the owner or person in whose
possession such property was found, directing the owner or person to
answer within ten (10) days. If the property is declared forfeited
and ordered sold, notice of the sale shall be posted in five public
places in the county not less than ten (10) days before the date of
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sale. The proceeds of the sale shall be deposited with the clerk of
the court, who shall after deducting costs, including the costs of
sale, pay the balance to the Tax Commission as cigarette tax
collected, or in the case of vehicles and property seized in
connection with cigarettes seized as being in violation of the
provisions of Section 305.1 of this title, to the Attorney General.
The Attorney General shall remit the amount of cigarette tax, if any
be due, including all penalties and interest due, to the Tax
Commission as cigarette tax collected and shall deposit the remainder
to the revolving fund created in Section 305.2 of this title.
4. The seizure of cigarettes shall not relieve the person from
whom such cigarettes were seized from any prosecution or the payment
of any penalties provided for under Section 301 et seq. of this
title.
5. The forfeiture provisions of Section 301 et seq. of this
title shall only apply to persons having possession of or
transporting cigarettes with intent to barter, sell or give away the
same; provided, that such possession of cigarettes in any quantity of
five or more cartons of ten packages each shall be prima facie
evidence of intent to barter, sell or give away such cigarettes in
violation of the provisions of Section 301 et seq. of this title.
F. Any person, including distributing agents, wholesalers,
carriers, retailers and consumers, having possession of unstamped
cigarettes in this state shall be liable for the tax on such
cigarettes in case the same are lost, stolen or unaccounted for, in
transit, storage or otherwise, and in such event a presumption shall
exist for the purposes of taxation, that such cigarettes were used
and consumed in Oklahoma.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1994, c. 278, § 9, eff. Sept. 1, 1994; Laws 1999, c. 162, §
1, eff. June 16, 1999; Laws 2003, c. 475, § 3, eff. Nov. 1, 2003;
Laws 2008, c. 378, § 8, emerg. eff. June 4, 2008; Laws 2009, c. 434,
§ 3, eff. Jan. 1, 2010; Laws 2015, c. 317, § 1, eff. Nov. 1, 2015;
Laws 2018, c. 66, § 4, eff. July 1, 2018.
§68-305.1. Unlawful affixing of stamp – Prima facie evidence of
violation.
A. It shall be unlawful to affix a stamp to any cigarette
package or container or to sell, offer for sale, or import into this
state any cigarette package or container:
1. Which bears any label or notice prescribed by the United
States Department of Treasury to identify cigarettes intended for
export and exempt from tax by the United States pursuant to Section
5704(b) of Title 26 of the United States Code or any notice or label
described in Section 290.185 of Title 27 of the United States Code of
Federal Regulations;
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2. Which is not labeled in conformity with the provisions of the
Federal Cigarette Labeling and Advertising Act, or any other federal
requirement for the placement of labels, warnings or other
information applicable to packages or containers of cigarettes
intended for domestic consumption;
3. Upon which all federal taxes due have not been paid or which
is not in compliance with all federal trademark and copyright laws;
or
4. The packaging of which has been modified or altered by a
person other than the manufacturer or person specifically authorized
by the manufacturer, including, but not limited to, the placement of
a sticker or label to cover information on the package or container.
Possession of more than one thousand cigarettes in packages or
containers bearing Oklahoma stamps in violation of this subsection by
a person other than an employee of this state or the federal
government performing official duties relating to enforcement of the
provisions of Section 301 et seq. of this title shall constitute
prima facie evidence of a violation of the provisions of this
subsection.
B. Except as otherwise provided by law, the Attorney General
shall enforce the provisions of this section.
Added by Laws 1999, c. 162, § 2, eff. June 17, 1999.
§68-305.2. Revolving fund for Office of Attorney General.
There is hereby created in the State Treasury a revolving fund
for the Office of the Attorney General. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the Office of the Attorney General
pursuant to the provisions of Sections 305, 316, 417 and 418 of this
title. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Office of the
Attorney General. Expenditures from the fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
Added by Laws 1999, c. 162, § 7, eff. June 17, 1999. Amended by Laws
2012, c. 304, § 538.
§68-306. Sale, when tax not paid or stamps not affixed.
It shall be unlawful for any person to sell, or display for sale,
or have in his possession for consumption in this state, cigarettes
on which the tax levied by this article has not been paid, and which
are not contained in packages to which are securely affixed the
stamps evidencing payment of the tax. Any cigarettes so held shall
be subject to seizure and sale as provided by law for sale of
property under execution, and the proceeds derived from the sale
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thereof shall be paid to the State Treasurer and placed in the State
General Revenue Fund.
Laws 1965, c. 195, § 2.
§68-307. Consumer bringing cigarettes from without state as
retailer.
A consumer who secures cigarettes from without the state and has
same brought into the state by a common carrier or otherwise shall be
held to be a retailer, and its, his or her place of business shall be
deemed the point within the state at which the cigarettes are
received. Such person holding himself out as consumer and purchasing
cigarettes in a larger quantity than forty shall be subject to the
same provisions, rules and regulations with respect to cigarettes as
are by this article imposed upon retailers.
Laws 1965, c. 195, § 2.
§68-308. Purchase, manufacture, custody, and sale of stamps.
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(b) The Tax Commission shall, under rules promulgated by the
Commission, give credit to a wholesaler for stamps affixed to
packages of cigarettes returned to a manufacturer or not sold and
destroyed in the presence of an employee of the Tax Commission.
Application to the Tax Commission for credit must be accompanied by
affidavit, copy of bill of lading for shipment to the manufacturer,
or other proof required by the Tax Commission.
(c) The Commission shall sell the stamps to all licensed
manufacturers, wholesalers, warehousemen and/or jobbers, retailers,
or consumers, who have purchased cigarettes from wholesalers or
jobbers within or without the State of Oklahoma, doing business
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within the State of Oklahoma. All orders for stamps must be
accompanied by cash, cashier's check or money order, made payable to
the Oklahoma Tax Commission; provided, however, that the Tax
Commission may accept personal checks in payment for such stamps upon
a determination by the Commission that the purchaser thereof is
financially responsible.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 2015, c. 317, § 2, eff. Nov. 1, 2015.
§68-309. Carriers transporting cigarettes.
A. The right of a carrier in this state to carry unstamped
cigarettes, as defined in this article, shall not be affected by this
article; provided that carriers delivering unstamped cigarettes to
any person in this state for the purpose of selling or consuming
unstamped cigarettes in this state in violation of Section 301 et
seq. of this title or this act shall be subject to seizure of the
shipments and forfeiture of the inventory pursuant to the provisions
of Section 305 of this title. Should any carrier sell cigarettes to
its passengers while being carried in this state, the sale shall be
subject to the stamp tax and other provisions of this article, and to
the rules of the Tax Commission.
B. Carriers transporting cigarettes to a point within the state,
or a bonded warehouseman or bailee having possession of cigarettes,
are required, under this article and the rules to be prescribed by
the Tax Commission, to transmit to the Tax Commission a statement of
such consignment of cigarettes, showing the date, point of origin,
point of delivery, and to whom delivered, and such other information
as the Tax Commission may require. All carriers, bailees or
warehousemen shall permit an examination by the Tax Commission, or
its agents or legally authorized representatives, of their records
relating to the shipment or receipt of cigarettes. Any person who
fails or refuses to transmit to the Tax Commission the statements
above provided for, or whoever refuses to permit the examination of
the records by the Tax Commission, shall be guilty of a misdemeanor.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1992, c. 339, § 15, eff. Jan. 1, 1993; Laws 2009, c. 434, §
4, eff. Jan. 1, 2010.
§68-310. Repealed by Laws 1994, c. 278, § 38, eff. Sept. 1, 1994.
§68-311. Sale of stamps to wholesalers or jobbers at discount as
compensation for costs incurred.
For the purpose of allowing compensation for the costs
necessarily incurred in affixing the proper tax stamp to each package
of cigarettes and tobacco before making a sale of such cigarettes and
tobacco, each person purchasing cigarette or tobacco tax stamps from
the Oklahoma Tax Commission as required by law may purchase stamps
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from the Tax Commission at a reduction of one and one-half cents
($0.015) per stamp, provided that such discount or reduction shall
not be applicable on purchases of less than One Hundred Dollars
($100.00) at any one time; and provided, further, that no discount
shall be allowed to out-of-state purchasers which reside in the
states that do not give discounts on cigarette stamps purchased from
State of Oklahoma cigarette dealers. The discount herein provided
shall be the only discount allowed to purchasers from the Tax
Commission; provided, that if a purchaser refuses to comply with the
laws of the State of Oklahoma, the Tax Commission shall require the
full face value for stamps purchased until such time as the person
has complied with the provisions of the law. The Tax Commission may
authorize the use of a metering device for the impress of the tax
stamp.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 2004, c. 322, § 7, eff. Dec. 1, 2004 (State Question No. 713,
Legislative Referendum No. 336, adopted at election held Nov. 2,
2004).
§68-312. Records and reports.
A. Every person subject to the payment of a tax hereunder shall
keep in Oklahoma accurate records covering the business carried on
and shall for three (3) years, and more if required by the rules of
the Oklahoma Tax Commission, keep and preserve all invoices, showing
all purchases and sales of cigarettes; and such invoices and stock of
cigarettes shall at all times be subject to the examination and
inspection of any member or legally authorized agent or
representative of the Tax Commission, in the enforcement of this
article. Every wholesaler or retailer operating in the State of
Oklahoma, whose main warehouse or headquarters is in another state
shall keep all records of all cigarette transactions made by him or
her at his or her place of business in Oklahoma, or at a designated
place in the State of Oklahoma.
B. Every wholesaler and retailer receiving unstamped cigarettes
shall file a report with the Tax Commission on or before the tenth
day of each month covering the previous calendar month, on forms
prescribed and furnished by the Tax Commission, disclosing the
beginning and closing inventory of unstamped cigarettes, the
beginning and closing inventory of stamped cigarettes, the beginning
and closing inventory of cigarette stamps, the number and
denomination of cigarette stamps affixed to packages of cigarettes,
and all purchases of cigarettes by showing the invoice number, name
and address of the consignee or seller, the date, and the number of
cigarettes purchased, and such other information as may be required
by the Tax Commission. Retailers or consumers purchasing cigarettes
in drop shipments shall be required to make monthly reports to the
Commission as are required of wholesale dealers.
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C. Every distributing agent shall, except as otherwise provided
herein, keep at each place of business in Oklahoma for a period of
three (3) years for inspection by the Tax Commission a complete
record of all cigarettes received, including all orders, invoices,
bills of lading, waybills, freight bills, express receipts, and all
other shipping records which are furnished to the distributing agent
by the carrier and the shipper of said cigarettes, or copies thereof,
and, in addition thereto, a complete record of each and every
distribution or delivery made by said distributing agent. Such
records of distribution or delivery shall include all orders,
invoices or copies thereof, all other shipping records furnished by
the carrier, and the person ordering distribution or delivery of the
cigarettes.
D. Upon a form to be prescribed by the Tax Commission, every
distributing agent in Oklahoma shall report each day, except Sundays
and holidays, to the Tax Commission all deliveries of cigarettes made
on the preceding day or days. The reports shall show the name of the
person ordering the delivery, date of delivery, name and address of
the person to whom delivered, the invoice number, bill of lading or
waybill number, the number and kind of cigarettes delivered, the
means of delivery and/or the transportation agent and the destination
of drop shipment, if a drop shipment. However, if the invoice
furnished the distributing agent by the manufacturer or other person
ordering such delivery, or the bill of lading prepared by said
distributing agent to cover the shipment under said invoice, contains
all the information required to be reported, it will be sufficient to
send a copy of said invoice or invoices, or a copy of said bill of
lading or bills of lading, to the Tax Commission.
E. Beginning July 1, 2009, every wholesaler or manufacturer
required to make any report required by this section shall submit
such report electronically as prescribed by the Tax Commission
pursuant to Section 312.1 of this title.
Added by Laws 1965, c. 195, § 2. Amended by Laws 2009, c. 434, § 5,
eff. Jan. 1, 2010.
§68-312.1. Procedures for maintaining records and filing reports -
Required information.
A. The Oklahoma Tax Commission, if in its discretion it deems
practical and reasonable, may establish procedures for maintaining
records and filing reports containing the information required by
this section. The exercise by the Tax Commission of the authority
granted in this subsection shall be by adoption of rules necessary to
establish procedures that increase compliance with the requirements
of this article.
B. Every wholesaler receiving cigarettes shall submit periodic
reports containing the information required by this subsection. In
each case, the information required shall be itemized so as to
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disclose clearly the brand style of the product. The reports shall
be provided separately with respect to each of the facilities
operated by the wholesaler and shall include:
1. The quantity of cigarette packages that were distributed or
shipped to another wholesaler or to a retailer within the borders of
Oklahoma during the reporting period and the name and address of each
person to whom those products were ultimately distributed or shipped;
2. The quantity of cigarette packages that were distributed or
shipped to another facility of the same wholesaler within the borders
of Oklahoma during the reporting period; and
3. The quantity of cigarette packages that were distributed or
shipped within the borders of Oklahoma to Indian tribal entities or
licensees of Indian tribal entities or instrumentalities of the
federal government during the reporting period and the name and
address of each person to whom those products were distributed or
shipped.
C. Manufacturers shall submit periodic reports containing the
information required by this subsection. In each case, the
information required shall be itemized so as to disclose clearly the
brand style of the product. The reports shall be provided separately
with respect to each of the facilities operated by the manufacturer
and shall include:
1. The quantity of cigarette packages that were distributed or
shipped to another manufacturer or to a wholesaler within the borders
of Oklahoma during the reporting period and the name and address of
each person to whom those products were distributed or shipped;
2. The quantity of cigarette packages that were distributed or
shipped to another facility of the same manufacturer within the
borders of Oklahoma during the reporting period; and
3. The quantity of cigarette packages that were distributed or
shipped within the borders of Oklahoma to instrumentalities of the
federal government during the reporting period and the name and
address of each person to whom those products were distributed or
shipped.
D. The Tax Commission shall establish the reporting period,
which shall be no longer than three (3) calendar months and no
shorter than one (1) calendar month. Reports shall be submitted
electronically as prescribed by the Tax Commission.
E. Each wholesaler shall maintain copies of invoices or
equivalent documentation for each of its facilities for every
transaction in which the wholesaler is the seller, purchaser,
consignor, consignee, or recipient of cigarettes. The invoices or
documentation shall show the name, address, phone number and
wholesale license number of the consignor, seller, purchaser, or
consignee, and the quantity by brand style of the cigarettes involved
in the transaction.
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F. Each retailer shall maintain copies of invoices or equivalent
documentation for every transaction in which the retailer receives or
purchases cigarettes at each of its facilities. The invoices or
documentation shall show the name and address of the wholesaler from
whom, or the address of another facility of the same retailer from
which, the cigarettes were received, the quantity of each brand style
received in such transaction and the retail cigarette license number
or sales tax license number.
G. Each manufacturer shall maintain copies of invoices or
equivalent documentation for each of its facilities for every
transaction in which the manufacturer is the seller, purchaser,
consignor, consignee, or recipient of cigarettes. The invoices or
documentation shall show the name and address of the consignor,
seller, purchaser, or consignee, and the quantity by brand style of
the cigarettes involved in the transaction.
H. Records required under subsections E through G of this
section shall be preserved on the premises described in the license
in such a manner as to ensure permanency and accessibility for
inspection at reasonable hours by authorized personnel of the
Oklahoma Tax Commission. With the permission of the Tax Commission,
manufacturers, wholesalers, and retailers may retain records off
premises, but shall transmit duplicates of the invoices or the
equivalent documentation to each place of business within twenty-four
(24) hours upon the request of the Tax Commission.
I. The records required by subsections E through G of this
section shall be retained for a period of three (3) years from the
date of the transaction.
J. The Tax Commission, upon request, shall have access to
reports and records required under this act. The Tax Commission at
its sole discretion may share the records and reports required by
such sections with law enforcement officials of the federal
government, the State of Oklahoma, other states, or international
authorities and shall upon request share the records and reports with
state and local law enforcement officials; provided, in the event a
request is made to share records and reports pertaining to any Indian
tribal entity or licensees of Indian tribal entities, the appropriate
tribal Attorney General’s office shall be notified prior to the
disclosure of such records.
Added by Laws 2003, c. 475, § 4, eff. Nov. 1, 2003. Amended by Laws
2005, c. 479, § 7, eff. July 1, 2005; Laws 2008, c. 378, § 6, emerg.
eff. June 4, 2008; Laws 2009, c. 434, § 6, eff. Jan. 1, 2010.
§68-313. Wholesale and retail stocks to be kept separate.
(a) Any person holding under this article a wholesale and retail
license, and whose wholesale and retail business is conducted within
the same building, or a building adjoining thereto, shall keep
separate the wholesale and retail stocks of cigarettes.
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(b) Every wholesaler or jobber who maintains a retail business at
his place of business shall keep a record of the wholesale operations
the same as for the retail operations, and keep such records,
including invoices, separate and apart for the inspection of such
wholesale and retail business by the Commission, said records to show
the amount of stamps purchased, if any, and all purchases from
whatever source, and all sales, whether to himself as a retailer,
from himself as a wholesaler, or to another than himself as a
retailer. All invoices, records, files and other information shall
be available for inspection by representatives of the Commission for
a period of three (3) years from the date of the purchase and/or
delivery.
(c) If such invoices, records, files and information are not kept
as herein required, the licenses, both as retailer and as wholesaler
or jobber, shall be revoked, and such person shall be subject to all
penalties as provided for in this article. If a licensee refuses to
comply with the provisions of this article, the Commission shall
cancel all licenses that have been issued for such place of business.
Laws 1965, c. 195, § 2.
§68-314. Salesmen for manufacturers - Records and reports.
(a) Salesmen in the employ of a manufacturer, and handling only
the products of his employer, who engage in the business of selling
or distributing cigarettes in this state for the purpose of resale,
shall be required to keep the same records, for a period of three (3)
years, for the inspection at all times by the Commission, as are
required of wholesale dealers. Such salesmen shall also be required
to furnish monthly reports to the Commission of the business of the
previous month. However, salesmen having a district supervisor or
division manager may make their monthly reports to the Commission
through the division manager or district supervisor.
(b) Any such salesman who takes orders for cigarettes to be
shipped in interstate commerce to any person other than licensed
dealers shall also be required to have a distributing agent's license
and be compelled to comply with all of the rules and regulations
pertaining to distributing agents.
Laws 1965, c. 195, § 2.
§68-315. Inspections and examinations.
For the purpose of enabling the Oklahoma Tax Commission to
determine the tax liability of a distributor, wholesale dealer,
retail dealer, distributing agent or any other person dealing in
cigarettes, or to determine whether a tax liability has been
incurred, it shall have the right to inspect any premises where
cigarettes are manufactured, produced, made, stored, transported,
sold, or offered for sale or exchange, and to examine all of the
records required herein to be kept or any other records that may be
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kept incident to the conduct of the cigarette business of such
distributor, wholesale dealer, retail dealer, distributing agent, or
any other person dealing in cigarettes. The authorized agent of the
Oklahoma Tax Commission shall also have the right, as an incident, to
determine the said tax liability, or whether a tax liability has been
incurred, to examine all stocks of cigarette stamps, and for the
foregoing purpose such authorized agent shall also have the right to
remain upon the premises for such length of time as may be necessary
to fully determine such tax liability, or whether a tax liability has
been incurred; and it shall be unlawful for any of the foregoing
persons to fail to produce upon demand by the Tax Commission, or any
of its authorized agents, any records herein required to be kept, or
to hinder or prevent in any manner the inspection of said records, or
the examination of said premises.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965.
§68-316. Offenses - Penalties.
A. Any person, other than a consumer, who shall:
1. Sell, offer for sale or present as a prize or gift cigarettes
without a stamp being then and there affixed to each individual
package;
2. Sell cigarettes in quantities less than an individual
package;
3. Knowingly cancel or mutilate any stamp affixed to any
individual package of cigarettes for the purpose of concealing any
violation of Section 301 et seq. of this title or with any other
fraudulent intent;
4. Use any artful device or deceptive practice to conceal any
violation of Section 301 et seq. of this title;
5. Refuse to surrender to the Oklahoma Tax Commission upon
demand any cigarettes possessed in violation of any provision of
Section 301 et seq. of this title; or
6. Knowingly or intentionally make a first sale of cigarettes
without a stamp being then and there affixed to each individual
package; shall be fined not more than Two Hundred Dollars ($200.00),
where specific penalties are not otherwise provided.
B. Any consumer, who shall:
1. Sell, offer for sale or present as a prize or gift cigarettes
without a stamp being then and there affixed to each individual
package;
2. Knowingly consume, use or smoke any cigarettes upon which a
tax is required to be paid without a stamp being affixed upon each
individual package;
3. Knowingly cancel or mutilate any stamp affixed to any
individual package of cigarettes for the purpose of concealing any
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violation of the Cigarette and Tobacco Products Tax Codes or with any
other fraudulent intent;
4. Use any artful device or deceptive practice to conceal any
violation of the Cigarette and Tobacco Products Tax Codes; or
5. Refuse to surrender to the Tax Commission upon demand any
cigarettes possessed in violation of any provision of Section 301 et
seq. of this title,
shall be fined not more than Two Hundred Dollars ($200.00), where
specific penalties are not otherwise provided.
C. Any wholesaler, retailer or distributing agent who shall
intentionally:
1. Commit any of the acts specifically enumerated in subsection
A of this section, where such acts are applicable to such person;
2. Sell any cigarettes upon which tax is required to be paid by
Section 301 et seq. of this title without at the time of making such
sale having a valid license;
3. Make a first sale of cigarettes without at the time of first
sale having a license posted so as to be easily seen by the public;
or
4. Fail to deliver an invoice required by law to a purchaser of
cigarettes;
shall be punished by an administrative fine of not more than Ten
Thousand Dollars ($10,000.00) for the first offense, and not more
than Twenty-five Thousand Dollars ($25,000.00) for the second
offense, where specific penalties are not otherwise provided.
D. Any distributing agent who shall:
1. Commit any of the acts specifically enumerated in subsections
A and B of this section where such provisions are applicable to such
distributing agent; or
2. Store any unstamped cigarettes in the state or deliver or
distribute any unstamped cigarettes within this state, without at the
time of storage or delivery having a valid license posted so as to be
easily seen by the public;
shall be punished by an administrative fine of not more than Ten
Thousand Dollars ($10,000.00) for the first offense, and not more
than Twenty-five Thousand Dollars ($25,000.00) for the second
offense.
E. Any retailer violating the provisions of Section 301 et seq.
of this title may:
1. For a first offense, be punished by an administrative fine of
not more than One Hundred Dollars ($100.00);
2. For a second offense, be punished by an administrative fine
of not more than One Thousand Dollars ($1,000.00); and
3. For a third or subsequent offense, be punished by an
administrative fine of not more than Five Thousand Dollars
($5,000.00).
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F. Any wholesaler violating the provisions of Section 305.1 of
this title shall:
1. For a first offense, be punished by an administrative fine of
not more than Five Thousand Dollars ($5,000.00); and
2. For a second or subsequent offense, be punished by an
administrative fine of not more than Twenty Thousand Dollars
($20,000.00).
Administrative fines collected pursuant to the provisions of this
subsection shall be deposited to the revolving fund created in
Section 305.2 of this title.
G. The Tax Commission shall immediately revoke the license of a
person punished for a violation pursuant to the provisions of
paragraph 3 of subsection E of this section or a person punished for
a violation pursuant to the provisions of subsection F of this
section. A person whose license is so revoked shall not be eligible
to receive another license pursuant to the provisions of Section 301
et seq. of this title for a period of ten (10) years.
H. Whoever, with intent to defraud Oklahoma:
1. Fails to keep or make any record, return, report, or
inventory, or keeps or makes any false or fraudulent record, return,
report, or inventory, required by Section 301 et seq. of this title
or rules promulgated thereunder;
2. Refuses to pay any tax imposed by Section 301 et seq. of this
title, or attempts in any manner to evade or defeat the tax or the
payment thereof; or
3. Fails to comply with any requirement of Section 301 et seq.
of this title;
shall, for each such offense, be punished with an administrative fine
of not more than Ten Thousand Dollars ($10,000.00).
I. Whoever knowingly omits, neglects, or refuses to comply with
any duty imposed upon the person by Section 301 et seq. of this
title, or to do, or cause to be done, any of the things required by
Section 301 et seq. of this title, or does anything prohibited by
Section 301 et seq. of this title, shall, in addition to any other
penalty provided in Section 301 et seq. of this title, pay an
administrative fine of One Thousand Dollars ($1,000.00).
J. Whoever fails to pay any tax imposed by Section 301 et seq.
of this title at the time prescribed by law or rules, shall, in
addition to any other penalty provided in Section 301 et seq. of this
title, be liable to a penalty of five hundred percent (500%) of the
tax due but unpaid.
K. 1. All cigarettes which are held for sale or distribution
within the borders of Oklahoma, in violation of the requirements of
Section 301 et seq. of this title, and the machinery used to
manufacture counterfeit cigarettes shall be forfeited to Oklahoma.
All cigarettes and machinery forfeited to Oklahoma under this
paragraph shall be destroyed.
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2. All fixtures, equipment, and all other materials and personal
property on the premises of any distributor or retailer who, with
intent to defraud the state, fails to keep or make any record,
return, report, or inventory; keeps or makes any false or fraudulent
record, return, report, or inventory required by Section 301 et seq.
of this title; refuses to pay any tax imposed by Section 301 et seq.
of this title; or attempts in any manner to evade or defeat the
requirements of Section 301 et seq. of this title shall be forfeited
to Oklahoma.
L. Notwithstanding any other provision of law, the sale or
possession for sale of counterfeit cigarettes, or the sale or
possession for sale of counterfeit cigarettes by a manufacturer,
distributor, or retailer shall result in the seizure of the product
and related machinery by the Tax Commission or any law enforcement
agency and shall be punishable as follows:
1. A first violation with a total quantity of less than two
cartons of cigarettes or the equivalent amount of other cigarettes
shall be punishable by an administrative fine not to exceed Ten
Thousand Dollars ($10,000.00);
2. A subsequent violation with a total quantity of less than two
cartons of cigarettes, or the equivalent amount of other cigarettes
shall be punishable by an administrative fine not to exceed Twenty-
five Thousand Dollars ($25,000.00), and shall also result in the
revocation by the Tax Commission of the manufacturer, wholesaler, or
retailer license;
3. A first violation with a total quantity of more than two
cartons of cigarettes, or the equivalent amount of other cigarettes,
shall be punishable by an administrative fine not to exceed Twenty-
five Thousand Dollars ($25,000.00); and
4. A subsequent violation with a quantity of two cartons of
cigarettes or more, or the equivalent amount of other cigarettes
shall be punishable by an administrative fine not to exceed Fifty
Thousand Dollars ($50,000.00), and shall also result in the
revocation by the Tax Commission of the manufacturer, wholesaler, or
retailer license.
For the purposes of this section, “counterfeit cigarettes”
includes cigarettes that have false manufacturing labels or tobacco
product packs without tax stamps or the applicable tax stamp or with
counterfeit tax stamps or a combination thereof. Any counterfeit
cigarette seized by the Tax Commission shall be destroyed.
M. The Tax Commission shall immediately revoke the license of a
person punished for a violation pursuant to the provisions of
subsection H of this section. A person whose license is so revoked
shall not be eligible to receive another license for a period of five
(5) years.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1999, c. 162, § 3, eff. June 16, 1999; Laws 2003, c. 475, §
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5, eff. Nov. 1, 2003; Laws 2008, c. 378, § 7, emerg. eff. June 4,
2008; Laws 2009, c. 434, § 7, eff. Jan. 1, 2010.
§68-317. Unlawful sale, use and manufacture of stamps, impressions,
etc. - Forgery - Counterfeiting.
(a) Any person who shall, without the authorization of the Tax
Commission, make or manufacture, or who shall falsely or fraudulently
forge, counterfeit, reproduce, or possess any stamps, impression,
copy, facsimile, or other evidence for the purpose of indicating the
payment of the tax levied by the Cigarette Stamp Tax Law, Sections
301 through 325, Title 68 of the Oklahoma Statutes, prescribed for
use in the administration of this article, or who shall knowingly or
by any deceptive act use or pass, or tender as true, or affix,
impress or imprint, by use of any device, rubber stamp or by any
other means, on any package containing cigarettes, any unauthorized,
false, altered, forged, counterfeit or previously used stamps,
impressions, copies, facsimiles or other evidence of cigarette tax
payment, shall be guilty of a felony, and upon conviction thereof
shall be punished by imprisonment in the State Penitentiary for a
term of not more than twenty (20) years, or by a fine of not more
than Ten Thousand Dollars ($10,000.00), or by both such imprisonment
and fine.
(b) Each person violating any other provision of this article
shall be guilty of a misdemeanor, and upon conviction thereof shall
be punished by imprisonment in the county jail for a period of not
more than twelve (12) months, or by a fine of not more than Five
Hundred Dollars ($500.00), or by both such imprisonment and fine.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1971, c. 52, § 1, emerg. eff. March 31, 1971; Laws 1997, c.
133, § 556, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, § 405,
eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 556 from July 1, 1998, to July 1, 1999.
§68-317.1. Delivery sale to underage individual.
A. No person shall make a delivery sale of cigarettes to any
individual who is under the legal minimum purchase age in this state.
B. Each person taking a delivery sale order shall comply with:
1. The age verification requirements set forth in Section 7 of
this act;
2. The disclosure requirements set forth in Section 8 of this
act;
3. The shipping requirements set forth in Section 9 of this act;
4. The registration and reporting requirements set forth in
Section 10 of this act;
5. The tax collection requirements set forth in Section 11 of
this act; and
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6. All other laws of Oklahoma generally applicable to sales of
cigarettes that occur entirely within Oklahoma, including, but not
limited to, those laws imposing:
a. excise taxes,
b. sales taxes,
c. licensing and tax-stamping requirements, and
d. escrow or other payment obligations.
Added by Laws 2003, c. 475, § 6, eff. Nov. 1, 2003.
§68-317.2. Repealed by Laws 2014, c. 338, § 4, eff. Nov. 1, 2014.
§68-317.3. Repealed by Laws 2014, c. 338, § 4, eff. Nov. 1, 2014.
§68-317.4. Repealed by Laws 2014, c. 338, § 4, eff. Nov. 1, 2014.
§68-317.5. Repealed by Laws 2014, c. 338, § 4, eff. Nov. 1, 2014.
§68-317.6. Repealed by Laws 2014, c. 338, § 4, eff. Nov. 1, 2014.
§68-317.7. Repealed by Laws 2014, c. 338, § 4, eff. Nov. 1, 2014.
§68-317.8. Actions to prevent or restrain violations.
The Attorney General or his or her designee, or any person who
holds a permit under 26 U.S.C., Section 5712, may bring an action in
the appropriate court in the State of Oklahoma to prevent or restrain
violations of Section 317.1 of this title by any person or any person
controlling such person.
Added by Laws 2003, c. 475, § 13, eff. Nov. 1, 2003. Amended by Laws
2014, c. 338, § 1, eff. Nov. 1, 2014.
§68-317.9. Restrictions on delivering cigarettes - Violations.
A. No person or entity engaged in the business of selling or
distributing cigarettes that is not a manufacturer, wholesaler, or
distributor of cigarettes or other tobacco products licensed by the
Oklahoma Tax Commission shall mail, ship or otherwise deliver
cigarettes to any person in this state that is not:
1. A distributor or wholesaler of cigarettes licensed by the
Oklahoma Tax Commission under Section 304 of Title 68 of the Oklahoma
Statutes;
2. An export warehouse proprietor pursuant to Chapter 52 of the
Internal Revenue Code or the operator of a customs bonded warehouse
pursuant to 19 U.S.C., Section 1311 or 1555; or
3. A person who is an officer, employee or agent of the United
States government, this state or a department, agency,
instrumentality or political subdivision of the United States or this
state when the person is acting in accordance with the official
duties of the person.
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B. For purposes of this section, "cigarette" shall have the same
definition as that found in Section 600.22 of Title 37 of the
Oklahoma Statutes and "distributor", "wholesaler" and "retailer"
shall have the same definitions that are found in Section 301 of
Title 68 of the Oklahoma Statutes.
C. It shall be illegal for any common or contract carrier to
knowingly transport cigarettes to any person in this state reasonably
believed by the carrier to be a person other than described in
paragraph 1, 2 or 3 of subsection A of this section. For purposes of
this subsection, cigarettes may be transported to a home or residence
in this state by persons other than common and contract carriers in
quantities that do not exceed one thousand cigarettes at any one
time.
D. 1. A person that violates the provisions of subsection A or
C of this section shall be subject to:
a. a civil penalty of Two Thousand Five Hundred Dollars
($2,500.00) for each violation or Twenty-five Dollars
($25.00) for each pack of cigarettes shipped or
transported, whichever is greater,
b. an injunction to restrain a threatened or actual
violation of this section,
c. the costs of any investigation conducted by the state
related to a violation of this section, and
d. attorney fees and costs.
2. Any cigarettes that are shipped or transported into this
state in violation of this section shall be forfeited to the state
and destroyed.
3. Each shipment, transport, or attempted shipment or transport
of cigarettes or tobacco products in violation of this section shall
constitute a separate violation.
E. All civil penalties obtained as a result of an action brought
under this section shall be deposited into the Attorney General's
Evidence Fund.
Added by Laws 2014, c. 338, § 2, eff. Nov. 1, 2014.
§68-319. Restricting of licenses to residents and domesticated
foreign corporations - Prohibition on discrimination.
(a) No wholesaler's license shall be issued under this article or
the following article of this Code to or held by a person who is not
an actual resident and domiciled in this state, or to any foreign
corporation which is not domesticated under the laws of this state.
(b) No manufacturer, wholesaler, distributor or jobber of
cigarettes or tobacco products licensed under the laws of this state
shall discriminate by refusing to sell to any other wholesaler,
distributor or jobber in this state, and likewise no such wholesaler,
distributor or jobber shall refuse to sell to any retailer of
cigarettes or such products in this state; and any violation of the
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provisions hereof shall be grounds for revocation and cancellation of
such license.
(c) This section shall not change or modify the provisions for
reciprocity contained in Section 303 of this Code.
Laws 1965, c. 195, § 2.
§68-320. Surety, collateral or cash bond requirements for
distributing agents, wholesalers or jobbers - Release of surety or
security - Multiple licenses.
A. Every person making application for a distributing agent's
license under this article or the following article containing the
tobacco Products Tax Code shall, before being issued such license and
as a condition of carrying on such business, file with the Oklahoma
Tax Commission a surety or collateral or cash bond in the amount of
Twenty-five Thousand Dollars ($25,000.00) payable to the State of
Oklahoma, and conditioned upon compliance with the provisions of this
article or the following article of this Code, and the rules of the
Oklahoma Tax Commission.
B. Every person making application for a wholesaler's or
jobber's license under this article shall, before being issued such
license and as a condition of carrying on such business, file with
the Tax Commission a surety or collateral or cash bond in the amount
of Twenty-five Thousand Dollars ($25,000.00) payable to the State of
Oklahoma and conditioned upon compliance with the provisions of this
article and the rules of the Oklahoma Tax Commission.
C. 1. Sixty (60) days after making a written request for
release to the Tax Commission, the surety of a bond furnished by a
licensee shall be released from any liability to the state accruing
on the bond after the sixty-day period. The release does not affect
any liability accruing before the expiration of the sixty-day period.
2. The Tax Commission shall promptly notify the licensee
furnishing the bond that a release has been requested. Unless the
licensee obtains a new bond that meets the requirements of this act
and files with the Tax Commission the new bond within the sixty-day
period, the Tax Commission shall cancel the license.
3. Sixty (60) days after making a written request for release to
the Tax Commission, the cash deposit provided by a licensee shall be
canceled as security for any obligation accruing after the expiration
of the sixty-day period. However, the Tax Commission may retain all
or part of the cash deposit for up to three (3) years and one (1) day
as security for any obligations accruing before the effective date of
the cancellation. Any part of the deposit not retained by the Tax
Commission shall be released to the licensee. Before the expiration
of the sixty-day period, the licensee shall provide the Tax
Commission with a bond that satisfies the requirements of this act,
or the Tax Commission shall cancel the license.
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4. Any licensee who has filed a bond or other security is
entitled, on request, to have the Tax Commission return, refund, or
release the bond or security if, in the judgment of the Tax
Commission, the licensee has continuously complied with the
provisions of this article and Article 4 containing the tobacco
products tax code for the previous three (3) consecutive years.
However, if the Tax Commission determines that the revenues of the
state would be jeopardized by the return, refund or release of bond
or security, the Tax Commission may elect to retain the bond or
security, or having released such, may reimpose a requirement for
bond or security to protect the revenues of this state. The decision
of the Tax Commission to not release a bond or security may be
reviewed, after application by the licensee, pursuant to the
Administrative Procedures Act.
D. In the event any applicant for a license applies for more
than one license pursuant to this article or Article 4 containing the
tobacco products tax code, the applicant shall not be required to
post a bond for each license, but shall be required to post a bond
for the license which requires the greatest amount of bond.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965. Amended
by Laws 1968, c. 235, § 1, emerg. eff. April 24, 1968; Laws 2006, c.
272, § 8, eff. Nov. 1, 2006.
§68-321. Exemptions from tax.
The following sales are hereby exempted from the stamp excise tax
levied pursuant to the provisions of Section 301 et seq. of this
title:
1. All cigarettes sold to veterans hospitals and state operated
domiciliary homes for veterans located in the State of Oklahoma, for
distribution or sale to disabled ex-servicemen or disabled ex-
servicewomen interned in, or inmates of, such hospitals, or residents
of such homes;
2. All sales to the United States;
3. All sales to a federally recognized Indian tribe or nation
which has entered into a compact with the State of Oklahoma pursuant
to the provisions of subsection C of Section 1 of this act or to a
licensee of such a tribe or nation, upon which the payment in lieu of
taxes required by the compact has been paid; and
4. All sales to a federally recognized Indian tribe or nation or
to a licensee of such a tribe or nation upon which the tax levied
pursuant to the provisions of Section 4 of this act has been paid.
Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965; Laws 1992, c. 339,
§ 16, eff. Jan. 1, 1993.
§68-322. Rules and regulations.
The Oklahoma Tax Commission shall prescribe such rules and make
such regulations as to the sale or distribution of cigarettes, and
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the exemption from the stamp excise tax thereof, as shall be deemed
necessary to comply with the provisions of the preceding section.
Laws 1965, c. 195, § 2.
§68-323. Restricted to sale or distribution to inmates - Possession
by others.
The sale of such exempted cigarettes shall be restricted to sales
or distribution to patients or inmates of veterans hospitals and
residents of state operated domiciliary homes for veterans, as shown
by the records thereof, for their own personal use and consumption.
Possession of twenty (20) or more of such exempted cigarettes by
persons other than such inmates, patients or residents shall be
deemed prima facie evidence of intention to evade payment of the
stamp excise tax levied thereon, and shall be punishable as is
provided by Section 305 of this Code.
Added by Laws 1965, c. 195, § 2, emerg. eff. June 10, 1965.
§68-324. Compliance with law.
All manufacturers, wholesalers, jobbers, retailers or other
persons selling or distributing such cigarettes are hereby required
to comply with the provisions of the three preceding sections, and
the rules and regulations of the Oklahoma Tax Commission as to such
sales or distributions, and failure or refusal to so comply shall
constitute grounds for revocation of any license issued to such
manufacturer, wholesaler, jobber, retailer or other person, by the
Oklahoma Tax Commission.
Laws 1965, c. 195, § 2.
§68-325. Continuity of law.
It is hereby declared that it is the intention of the Legislature
that this act be construed as amending and revising the present
cigarette tax law and that the repeal and reenactment of said law
herein shall not affect any license issued or tax liability accrued
under such prior law.
Laws 1965, c. 195, § 2.
§68-326. Short title.
This act shall be known and may be cited as the "Unfair Cigarette
and Tobacco Products Sales Act".
Added by Laws 1949, p. 107, § 1, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.1 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-327. Definitions.
The following words, terms and phrases, when used in this act,
shall have the meaning ascribed to them in this section, except where
the context clearly indicates a different meaning:
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a. "Person" shall mean and include any individual, firm,
association, company, partnership, limited liability company,
corporation, joint stock company, club, agency, syndicate municipal
corporation, or other political subdivision of this state, trust,
receiver, trustee, fiduciary, and conservator.
b. "Cigarettes" shall mean and include any roll for smoking,
made wholly or in part of tobacco, irrespective of size or shape and
whether or not such tobacco is flavored, adulterated, or mixed with
any other ingredient, the wrapper or cover of which is made of paper,
leaves, string, or any other substance or material, excepting
tobacco.
c. "Tobacco Products" shall mean any bidis, cigars, cheroots,
stogies, smoking tobacco (including granulated, plug cut, crimp cut,
ready rubbed, and any other kinds and forms of tobacco suitable for
smoking in a pipe or cigarette), chewing tobacco (including
cavendish, twist, plug, scrap, and any other kinds and forms of
tobacco suitable for chewing), however prepared; and shall include
any other articles or products made of tobacco or any substitute
therefor.
d. "Sale" shall mean any transfer for a consideration, exchange,
barter, gift, offer for sale, and distribution in any manner or by
any means whatsoever.
e. "Wholesaler" and/or "jobber" is defined to mean a person,
firm, or corporation organized and existing, or doing business
primarily to sell cigarettes to, and render service to retailers in
the territory such person, firm or corporation chooses to serve; that
purchases cigarettes directly from the manufacturer; that at least
seventy-five percent (75%) of whose gross sales are made at
wholesale; to other than their own retail stores, that handles goods
in wholesale quantities and sells through salesmen, advertising, and/
or sales promotion devices; that carries at all times at his or its
principal place of business a representative stock of cigarettes and
tobacco products for sale, and that comes into the possession of
cigarettes for the purpose of selling them to retailers or to persons
outside or within the state who might resell or retail such
cigarettes to consumers.
f. The word "Sub-Jobber" is defined to mean any person in this
state who does not purchase cigarettes and tobacco products from a
manufacturer and who acquires stamped cigarettes and tobacco products
from a wholesaler, at least seventy-five percent (75%) of which are
for purposes of resale to retailers in this state, or to persons for
the purpose of resale only.
g. "Retailer" means any person in this state who is engaged in
the business of selling cigarettes and tobacco products at retail and
any person selling cigarettes through vending machines.
h. "Manufacturer's representative, or manufacturer's salesman"
shall mean any person working for or under the supervision of a
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manufacturer and whose action is not controlled by the wholesaler or
retailer.
i. "Consumer" shall mean a person who comes into possession of
cigarettes or tobacco products for the purpose of consuming them,
giving them away, or disposing of them in a way other than by sale,
barter, or exchange.
j. "Drop shipment" shall mean and include any delivery of
cigarettes or tobacco products received by any person within this
state when payment for such cigarettes or tobacco products is made to
the shipper or seller by or through a person other than the
consignee.
k. "Sell at retail", "sale at retail", and "retail sales" shall
mean and include any transfer of title to cigarettes and tobacco
products for a valuable consideration, made in the ordinary course of
trade or usual conduct of the seller's business, to the purchaser for
consumption or use.
l. "Sell at wholesale", "sale at wholesale", and "wholesale
sales" shall mean and include any transfer of title to cigarettes and
tobacco products for a valuable consideration, made in the ordinary
course of trade or usual conduct of the wholesaler's business, to the
retailer for the purpose of resale.
m. "Basic costs of cigarettes and tobacco products" shall mean
the invoice cost of cigarettes and tobacco products to the retailer
or wholesaler, as the case may be, or the replacement cost of
cigarettes and tobacco products to the retailer or wholesaler, as the
case may be, within thirty (30) days prior to the date of sale in the
quantity last purchased, whichever is lower, less all trade
discounts, except the customary discounts for cash, to which shall be
added the full face value of any stamps which may be required by any
cigarette and tobacco products tax act of this state or federal act
now in effect or hereafter enacted, if not already included by the
manufacturer in the list price.
Added by Laws 1949, p. 107, § 2, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.2 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981. Amended by Laws 1993, c. 366, § 29, eff. Sept. 1,
1993; Laws 2002, c. 76, § 2, emerg. eff. April 15, 2002.
§68-328. Sales at less than cost; penalty.
a. It shall be unlawful for any retailer or wholesaler, with
intent to injure competitors or destroy or substantially lessen
competition, to advertise, offer to sell, or sell, at retail or
wholesale, cigarettes and tobacco products at less than cost to such
retailer or wholesaler, as the case may be. Any retailer or
wholesaler who violates the provisions of this section shall be
guilty of a misdemeanor and be punishable by fine of not more than
Five Hundred Dollars ($500.00).
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b. Evidence of advertisement, offering to sell, or sale of
cigarettes and tobacco products by any retailer or wholesaler at less
than cost to him as defined in this act shall be prima facie evidence
of intent to injure competitors and to destroy or substantially
lessen competition.
Added by Laws 1949, p. 108, § 3, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.3 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-329. Cost to wholesaler; meaning.
a. The term "cost to the wholesaler" shall mean the "basic cost
of cigarettes and tobacco products" to the wholesaler plus the "cost
of doing business by the wholesaler", as evidenced by the recognized
statistical and cost accounting practices in allocation of overhead
costs and expenses, paid or incurred, and must include, without
limitation, labor costs (including salaries or drawing accounts of
owners, salaries of executives and officers, or general and special
allocations and charges made by parent organizations), rent,
depreciation, selling costs, maintenance of equipment, delivery
costs, all types of licenses, taxes, insurances, and advertising, and
any other cost.
b. In the absence of proof of a lesser cost of doing business by
the wholesaler making the sale, the "cost of doing business by the
wholesaler" shall be presumed to be two per centum (2%) of the "basic
cost of cigarettes and tobacco products" to the wholesaler, plus
cartage to the retail trade, if performed or paid for by the
wholesaler, which cartage cost, in the absence of proof of a lesser
cost, shall be deemed to be three-fourths of one per centum (3/4 of
1%) of the "basic cost of cigarettes and tobacco products" to the
wholesaler.
Added by Laws 1949, p. 108, § 4, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.4 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-330. Cost to the retailer; meaning.
a. The term "cost to the retailer" shall mean the "basic cost of
cigarettes and tobacco products" to the retailer plus the "cost of
doing business by the retailer", as evidenced by the recognized
statistical and cost accounting practices in allocation of overhead
costs and expenses, paid or incurred, and must include, without
limitation, labor (including salaries or drawing accounts of owners,
salaries of executives and officers, or general and special
allocations and charges made by parent organizations), rent,
depreciation, selling costs, maintenance of equipment, delivery
costs, all types of licenses, taxes, insurance, and advertising, and
any other cost: Provided, that any retailer who, in connection with
the retailer's purchase, receives not only the discounts ordinarily
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allowed upon purchases by a retailer but also, in whole or in part,
discounts ordinarily allowed upon purchases by a wholesaler, shall,
in determining "cost to the retailer", pursuant to this subsection,
add the "cost of doing business by the wholesaler", as defined in
Section 4 of this act, to the "basic cost of cigarettes and tobacco
products" to said retailer, as well as the "cost of doing business by
the retailer".
b. In the absence of proof of a lesser cost of doing business by
the retailer making the sale, the "cost of doing business by the
retailer" shall be presumed to be six per centum (6%) of the "basic
cost of cigarettes and tobacco products" to the retailer, plus
cartage to the retail outlet if performed or paid for by the retailer
(and not previously included in the charge by the wholesaler), which
cartage cost, in the absence of proof of a lesser cost, shall be
deemed to be three-fourths of one per centum (3/4 of 1%) of the basic
cost of cigarettes and tobacco products to the retailer.
c. In the absence of proof of a lesser cost of doing business,
the "cost of doing business by the retailer", who, in connection with
the retailer's purchase, receives not only the discounts ordinarily
allowed upon purchases by a retailer but also, in whole or in part,
the discounts ordinarily allowed upon purchases by a wholesaler,
shall be presumed to be six percentum (6%) of the sum of the "basic
cost of cigarettes and tobacco products" and the "cost of doing
business by the wholesaler".
Added by Laws 1949, p. 109, § 5, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.5 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-331. Sales by a wholesaler to a sub-jobber.
When a wholesaler sells cigarettes and/or tobacco products to a
sub-jobber, the former shall use the basic cost of cigarettes and/or
tobacco products (which is the factory list, less all discounts
except customary discounts for cash, plus the full face value of any
stamps which may be required by any cigarette tax act of this State
now in effect or hereafter enacted) in making such sales. The sub-
jobber, upon resale to a retailer, shall be subject to the provisions
of Section 4 of this act.
Added by Laws 1949, p. 109, § 6, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.6 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-332. Sales by a wholesaler to a wholesaler.
When one wholesaler sells cigarettes and tobacco products to any
other wholesaler, the former shall not be required to include in his
selling price to the latter "cost to the wholesaler", as provided by
Section 4 of this act, but the latter wholesaler, upon resale to a
retailer, shall be subject to the provisions of said section:
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Provided further, that manufacturer's representatives, manufacturer's
salesmen, or any other person not coming under the definition of a
wholesaler, shall not be eligible to purchase cigarettes or tobacco
products under the provisions of this Section. Sales by
manufacturer's representatives, manufacturer's salesmen, or any other
person selling cigarettes and tobacco products to retailers or
consumers, as the case may be, shall be required to sell at prices no
lower than the prices of the wholesaler to the retailer or of the
retailer to the consumer, as the case may be.
Added by Laws 1949, p. 109, § 7, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.7 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-333. Combination sales.
In all advertisements, offers for sale or sales involving two (2)
or more items, at least one of which items or cigarettes and tobacco
products, at a combined price, and in all advertisements, offers for
sale, or sales, involving the giving of any gift or concession of any
kind whatsoever (whether it be coupons or otherwise), the retailer's
or wholesaler's combined selling price shall not be below the "cost
to the retailer" or the "cost to the wholesaler", respectively, of
the total of all articles, products, commodities, gifts, and
concessions included in such transactions.
Added by Laws 1949, p. 110, § 8, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.8 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-334. Sales exceptions.
The provisions of this act shall not apply to sales at retail or
sales at wholesale made (a) in an isolated transaction and not in the
usual course of business; (b) where cigarettes and tobacco products
are advertised, offered for sale, or sold in bona fide clearance
sales for the purpose of discontinuing trade in such cigarettes and
tobacco products, and said advertising, offer to sell, or sale shall
state the reason thereof and the quantity of such cigarettes and
tobacco products advertised, offered for sale, or to be sold; (c)
where cigarettes or tobacco products advertised, offered for sale, or
sold as imperfect or damaged, and said advertising, offer to sell, or
sale shall state the reason therefor and the quantity of such
cigarettes and tobacco products advertised, offered for sale, or to
be sold; (d) where cigarettes and tobacco products are sold upon the
final liquidation of a business; or (e) where cigarettes and tobacco
products are advertised, offered for sale, or sold by any fiduciary
or other officer acting under the order or direction of any court.
Added by Laws 1949, p. 110, § 9, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.9 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
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§68-335. Advertising of certain sales; good faith.
a. Any retailer may advertise, offer to sell, or sell cigarettes
and tobacco products at a price made in good faith to meet the price
of a competitor who is selling the same article at cost to him as a
retailer. Any wholesaler may advertise, offer to sell, or sell
cigarettes and tobacco products at a price made in good faith to meet
the price of a competitor who is rendering the same type of service
and is selling the same article at cost to him as a wholesaler. The
price of cigarettes and tobacco products advertised, offered for
sale, or sold under the exceptions specified in Section 9 shall not
be considered the price of a competitor and shall not be used as a
basis for establishing prices below cost, nor shall the price
established at a bankrupt sale be considered the price of a
competitor within the purview of this Section.
b. In the absence of proof of the "price of a competitor", under
this Section, the "lowest cost to the retailer", or the "lowest cost
to the wholesaler", as the case may be determined by any "cost
survey", made pursuant to Section 14 of this act, may be deemed the
"price of a competitor" within the meaning of this Section.
Added by Laws 1949, p. 110, § 10, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.10 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-336. Sales contracts void.
Any contract expressed or implied, made by any person in
violation of any of the provisions of this act, is declared to be an
illegal and void contract and no recovery thereon shall be had.
Added by Laws 1949, p. 110, § 11, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.11 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-337. Admissible evidence.
a. In determining "cost to the retailer" and "cost to the
wholesaler", the court shall receive and consider as bearing on the
bona fides of such cost, evidence tending to show that any person
complained against under any of the provisions of this act purchased
cigarettes and tobacco products, with respect to the sale of which
complaint is made, at a fictitious price, or upon terms, or in such a
manner, or under such invoices, as to conceal the true cost,
discounts, or terms of purchase, and shall also receive and consider
as bearing on the bona fides of such cost, evidence of the normal,
customary, and prevailing terms and discounts in connection with
other sales of a similar nature in the trade area or state.
b. Merchandise given gratis or payment made to a retailer or
wholesaler for display, or advertising, promotion purposes, or
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otherwise, shall not be considered in determining the cost of
cigarettes and tobacco products to the retailer or wholesaler.
Added by Laws 1949, p. 110, § 12, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.12 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-338. Sales outside ordinary channels of business; effect.
In establishing the cost of cigarettes and tobacco products to
the retailer or wholesaler, the invoice cost of said cigarettes and
tobacco products purchased at a forced, bankrupt, or closeout sale,
or other sale outside of the ordinary channels of trade, may not be
used as a basis for justifying a price lower than one based upon the
replacement cost of the cigarettes and tobacco products to the
retailer or wholesaler, within thirty (30) days prior to the date of
sale, in the quantity last purchased, through the ordinary channels
of trade.
Added by Laws 1949, p. 111, § 13, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.13 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-339. Cost survey; admissibility.
a. Where a cost survey, pursuant to recognized statistical and
cost accounting practices, has been made for the trading area in
which the offense is committed, to establish the lowest "cost to the
retailer" and the lowest "cost to the wholesaler", said cost survey
shall be deemed competent evidence to be used in proving the cost to
the person complained against, within the provisions of this act.
b. Any defendant, or any witness, in any civil action brought
under the provisions of this act, may be required to testify, and the
books, records, invoices, and all other documents of any such
defendant, may be brought into court and introduced as evidence, but
no defendant, or any witness in any such civil action, shall be
prosecuted or subjected to any penalty or forfeiture for or on
account of any transaction, matter or thing concerning which he may
testify or produce evidence, documentary or otherwise, and no
testimony given or produced shall be received against him upon any
criminal proceeding or investigation.
Added by Laws 1949, p. 111, § 14, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.14 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-340. Association empowered to file suits.
Any duly organized and existing trade association, whether
incorporated or not, is hereby authorized to institute and prosecute
a suit or suits for injunctive or other relief provided for under the
terms of this act, as the real party in interest for and on behalf of
one or more of said association's members, when violation of this act
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directly or indirectly affects or threatens to affect or injure such
member or members, or where violation of this act threatens to impair
fair competition or otherwise affects such member as herein provided.
Added by Laws 1949, p. 111, § 16, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.16 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-341. Cancellation of license for violations.
The Oklahoma Tax Commission shall cancel the license of any
cigarette or tobacco dealer who has been determined by any court to
have violated the provisions of the Unfair Cigarette and Tobacco
Product Sales Act, or has been convicted for violation of any law
pertaining to the use, possession, manufacture or sale of any
controlled substance pursuant to the Uniform Controlled Dangerous
Substances Act, or has been found guilty of a violation of any rule
promulgated or order issued to control a new product or noncontrolled
product or substance pursuant to Section 2-201 of Title 63 of the
Oklahoma Statutes, or convicted of a violation of any drug or
narcotic law of the United States.
Added by Laws 1949, p. 111, § 17, emerg. eff. May 31, 1949. Amended
by Laws 1957, p. 86, § 1, emerg. eff. June 5, 1957. Renumbered from
Title 15, § 599.17 by Laws 1981, c. 211, § 7, emerg. eff. June 1,
1981; Laws 2013, c. 19, § 1, eff. Nov. 1, 2013.
§68-342. Partial unconstitutionality.
The provisions of this act shall be deemed to be severable and if
for any reason any provision, phrase, or clause shall be determined
to be unconstitutional or invalid, such determination shall not be
held to affect any other provision hereof. And no such determination
shall be deemed to invalidate or render ineffectual any of the
provisions of the "Unfair Cigarette and Tobacco Products Sales Act".
Added by Laws 1949, p. 112, § 18, emerg. eff. May 31, 1949.
Renumbered from Title 15, § 599.18 by Laws 1981, c. 211, § 7, emerg.
eff. June 1, 1981.
§68-343. Violations - Injunctions - Damages.
A. The Commission or any person injured by any violation, or who
would suffer injury from any threatened violation of Sections 326
through 345 of Title 68 of the Oklahoma Statutes, may maintain an
action in any court of equitable jurisdiction to prevent, restrain or
enjoin such violation or threatened violation. If in such action a
violation or threatened violation of Sections 326 through 345 of
Title 68 of the Oklahoma Statutes shall be established, the court
shall enjoin and restrain, or otherwise prohibit, such violation or
threatened violation, and, in addition thereto, the court shall
assess in favor of the plaintiff and against the defendant the costs
of suit including reasonable attorney's fees. In such action it
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shall not be necessary that actual damages to the plaintiff be
alleged or proved, but where alleged and proved, the plaintiff in the
action, in addition to such injunctive relief and cost of suit,
including reasonable attorney's fees shall be entitled to recover
from the defendant the actual damages sustained by him.
B. In the event that no injunctive relief is sought or required,
any person injured by a violation of Sections 326 through 345 of
Title 68 of the Oklahoma Statutes may maintain an action for damages
and costs of suit in any court of general jurisdiction.
Laws 1981, c. 211, § 3, emerg. eff. June 1, 1981.
§68-344. Enforcement of act.
The Oklahoma Tax Commission shall prescribe, adopt and enforce
rules and regulations relating to the administration and enforcement
of Sections 326 through 345 of Title 68 of the Oklahoma Statutes. The
Commission is hereby empowered to and may from time to time undertake
and make or cause to be made one or more cost surveys for the state
or such trading area or areas as it shall define and when such cost
survey shall have been made by or approved by it, it shall be
permissible to use such cost survey as provided in Section 337 of
Title 68 of the Oklahoma Statutes. The Commission may revoke or
suspend the license issued under the provisions of Sections 326
through 345 of Title 68 of the Oklahoma Statutes or the cigarette tax
laws of this state, of any person who refuses or neglects to comply
with any provisions of Sections 326 through 345 of Title 68 of the
Oklahoma Statutes or any rule or regulation of the Commission
prescribed under Sections 326 through 345 of Title 68 of the Oklahoma
Statutes.
Whenever any person fails to comply with any provision of
Sections 326 through 345 of Title 68 of the Oklahoma Statutes or any
rule or regulation of the Commission promulgated thereunder, the
Commission upon hearing, after giving said person ten (10) days'
notice in writing specifying the time and place of the hearing and
requiring him to show cause why his license or licenses should not be
revoked, may revoke or suspend the license held by the person.
Any ruling, order or decision of the Commission shall be subject
to review as provided by Section 225 of Title 68 of the Oklahoma
Statutes.
Laws 1981, c. 211, § 4, emerg. eff. June 1, 1981.
§68-345. Licenses required.
After the effective date of this act, no person shall engage in
or conduct the business of purchasing for resale or selling
cigarettes without having first obtained the appropriate license for
that purpose.
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All such licenses shall be issued by the Commission which shall
make rules and regulations respecting applications therefor and
issuance thereof.
A wholesaler or retailer who sells or intends to sell cigarettes
at one, two or more places of business shall be required to obtain a
separate license for each place of business.
Any person licensed only as a wholesaler shall not operate as a
retailer unless the appropriate license therefor is first secured,
and any person licensed only as a retailer shall not operate as a
wholesaler unless the appropriate license therefor is first secured.
Laws 1981, c. 211, § 5, emerg. eff. June 1, 1981.
§68-346. Legislative findings - Intent of Legislature - Cigarette
and tobacco products tax compacts - Audits.
A. The Legislature finds that:
1. Federal law recognizes the right of Indian tribes or nations
to engage in sales of cigarettes and tobacco products to their
members free of state taxation;
2. The doctrine of tribal sovereign immunity prohibits the State
of Oklahoma from bringing a lawsuit against an Indian tribe or nation
to compel the tribe or nation to collect state taxes on sales made in
Indian country to either members or nonmembers of the tribe or nation
without a waiver of immunity by the tribe or nation or congressional
abrogation of the doctrine; and
3. The Supreme Court of the United States, in "Oklahoma Tax
Commission v. Citizen Band Pottawatomie Indian Tribe of Oklahoma",
suggested that a state may provide other methods of collection of
state taxes on sales of cigarettes and tobacco products made by
Indian tribes or nations to persons who are not members of the tribe
or nation, such as entering into mutually satisfactory agreements
with Indian tribes or nations.
B. It is the intent of the Legislature to establish a system of
state taxation of sales of cigarettes and tobacco products made by
federally recognized Indian tribes or nations or their licensees,
other than such tribes or nations which have entered into a compact
with the State of Oklahoma pursuant to the provisions of subsection C
of this section, under which the rate of payments in lieu of state
taxes is less than the rate of state taxes on other sales of
cigarettes and tobacco products in order to allow such tribes or
nations or their licensees to make sales of cigarettes and tobacco
products to tribal members free of state taxation.
C. The Governor is authorized by this enactment to enter into
cigarette and tobacco products tax compacts on behalf of the State of
Oklahoma with the federally recognized Indian tribes or nations of
this state. The compacts shall set forth the terms of agreement
between the sovereign parties regulating sale of cigarettes and
tobacco products by the tribes or nations or their licensees in
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Indian country. All sales in Indian country by those compacting
tribes or nations and their licensees shall be exempt from the taxes
levied pursuant to the provisions of Section 301 et seq., Section 401
et seq. and Section 1350 et seq. of Title 68 of the Oklahoma Statutes
and Sections 349 and 425 of this title, subject to the following
terms and conditions:
1. A payment in lieu of state sales and excise taxes, as
provided for in said compact, shall be paid to the State of Oklahoma
by the tribes or nations, their licensees or their wholesalers upon
purchase of all cigarettes and tobacco products intended for resale
in Indian country by the tribes or nations or their licensees;
2. All cigarettes and tobacco products sold or held for sale to
the public, without distinction between member and nonmember sales,
shall bear a payment in lieu of tax stamp evidencing that payment in
lieu of state taxes has been paid to the state. State and tribal
officials may provide for use of a single joint stamp evidencing
payment of both the payment in lieu of tax as specified in a compact
pursuant to the provisions of this section and any tax levied by a
tribe or nation;
3. In the event that a compacting tribe or nation fails to
comply with all terms and conditions of the compact including, but
not limited to, requirements to include all state taxes required by
the terms of the compact to be collected by the tribe or nation in
the price of its cigarettes or tobacco products, the tribe or nation
shall not be eligible to receive any payment due from the state
pursuant to the terms of the compact for the tax-reporting period
during which the noncompliance occurred;
4. Records of all sales of cigarettes and tobacco products to
the tribes or nations and their licensees shall be kept by all
wholesalers doing business in the State of Oklahoma and shall be made
available for inspection by state officials on a timely basis.
Copies of all invoices of wholesale sales of cigarettes or tobacco
products to tribally owned or licensed retail stores shall be
forwarded by the wholesaler to the Oklahoma Tax Commission; and
5. For purposes of a compact pursuant to the provisions of this
section, the term "tribal licensee" shall only extend to:
a. members of the tribe or nation, and
b. business entities in which the tribe or nation or
tribal members have a majority ownership interest.
D. In addition to any other authority granted by law, the Tax
Commission shall regularly conduct an audit of wholesalers,
distributors, jobbers and warehousemen selling cigarettes or tobacco
products to a federally recognized Indian tribe or nation or a
tribally owned or licensed store to determine if the correct amount
of tax payable under this act has been collected and to determine
compliance with any and all compacts.
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Added by Laws 1992, c. 339, § 1, emerg. eff. May 28, 1992. Amended
by Laws 2004, c. 322, § 8, eff. Dec. 1, 2004 (State Question No. 713,
Legislative Referendum No. 336, adopted at election held Nov. 2,
2004).
§68-347. Inapplicability of certain provision to certain tribes or
nations or their licensees.
The provisions of Sections 3 through 6 of this act shall not
apply to a federally recognized Indian tribe or nation which has
entered into a compact with the State of Oklahoma pursuant to the
provisions of subsection C of Section 1 of this act or to a licensee
of such a tribe or nation during the period that such compact is
effective.
Added by Laws 1992, c. 339, § 2, eff. Jan. 1, 1993.
§68-348. Definitions.
As used in Sections 346 through 352 of this title:
1. "Tribally owned or licensed store" means a store or place of
business which is owned and operated by a federally recognized Indian
tribe or nation, other than a federally recognized Indian tribe or
nation which has entered into a compact with the State of Oklahoma
pursuant to the provisions of subsection C of Section 346 of this
title during the period that such compact is effective, on Indian
country within the territorial jurisdiction of that tribe or nation
or which is duly licensed by such tribe or nation pursuant to tribal
laws or ordinances to conduct business located on Indian country
within the territorial jurisdiction of that tribe or nation;
2. "Federally recognized Indian tribe or nation" means an Indian
tribal entity which is recognized by the United States Bureau of
Indian Affairs as having a special relationship with the United
States;
3. "Indian country" means:
a. land held in trust by the United States of America for
the benefit of a federally recognized Indian tribe or
nation,
b. all land within the limits of any Indian reservation
under the jurisdiction of the United States Government,
notwithstanding the issuance of any patent, including
rights-of-way running through the reservation,
c. all dependent Indian communities within the borders of
the United States whether within the original or
subsequently acquired territory thereof, and whether
within or without the limits of a state, and
d. all Indian allotments, the Indian titles to which have
not been extinguished, including individual allotments
held in trust by the United States or allotments owned
in fee by individual Indians subject to federal law
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restrictions regarding disposition of said allotments
and including rights-of-way running through the same;
4. "Member of the tribe" or "tribal member" means a person who
is duly enrolled within the membership of the federally recognized
Indian tribe or nation which owns or licenses the store;
5. "Nonmember of the tribe" or "nontribal member" means, with
respect to a particular Indian tribe or nation, any person who is not
a duly enrolled member of that tribe or nation, and shall include any
person who is a member of another Indian tribe or nation but not a
member of that tribe or nation;
6. "Unstamped cigarettes" means packages of cigarettes which
bear no evidence of the tax stamp required by state law and includes
cigarettes bearing an improper tax stamp applicable to the retail
establishment at which the cigarette is sold, regardless of the
identity of the establishment which the cigarette has been sold,
shipped, consigned or delivered;
7. "Contraband cigarettes" means unstamped cigarettes which are
required by the provisions of Sections 348 through 351 of this title
or Section 301 et seq. of this title to bear stamps and which are in
the possession, custody or control of any person, for the purpose of
being consumed, sold, offered for sale or consumption or transported
to any person in this state other than a wholesaler licensed under
Section 304 of this title; provided, contraband cigarettes shall not
include unstamped cigarettes sold to veterans' hospitals, to state-
operated domiciliary homes for veterans or to the United States for
sale or distribution by said entities in accordance with Sections 321
through 324 of this title;
8. "Stamped cigarettes" means packages of cigarettes which bear
the proper tax stamp required by state law;
9. "Commission" means the Oklahoma Tax Commission; and
10. "Person" shall include any individual, company, partnership,
joint venture, joint agreement, association (mutual or otherwise),
limited liability company, corporation, trust, estate, business trust
receiver or trustee appointed by any state or federal court,
syndicates or any combination acting as a unit, in the plural or
singular number.
Added by Laws 1992, c. 339, § 3, eff. Jan. 1, 1993. Amended by Laws
1993, c. 366, § 30, eff. Sept. 1, 1993; Laws 2009, c. 434, § 8, eff.
Jan. 1, 2010.
§68-349. Repealed by Laws 2009, c. 434, § 23, eff. Jan. 1, 2010.
§68-349.1. Tobacco taxes on noncompacting tribes or nations -
Conditions for exception - Native American tax free stamps.
A. Sales of cigarettes and other tobacco products by retailers
licensed by noncompacting federally recognized Indian tribes or
nations (hereinafter "tribe or nation") shall be subject to the
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cigarette excise tax imposed by Section 302 et seq. of this title and
the excise tax on other tobacco products imposed by Section 402 et
seq. of this title.
B. 1. Members of noncompacting federally recognized Indian
tribes or nations may purchase cigarettes and other tobacco products,
without payment of Oklahoma cigarette excise tax or Oklahoma other
tobacco products excise tax, subject to the following conditions:
a. the member of the noncompacting federally recognized
Indian tribe (hereinafter "purchaser") is purchasing
for his or her personal use, and not for sale, transfer
or other disposition to another person or entity,
b. the purchaser is purchasing from a retailer licensed by
the federally recognized Indian tribe or nation of
which the purchaser is a member,
c. the licensed retailer of purchaser's federally
recognized Indian tribe or nation is located upon
"Indian country" of that licensing tribe or nation, as
that term is defined by 18 USC Section 1151(a) and
paragraph 3 of Section 348 of this title.
2. Members of noncompacting federally recognized tribes or
nations are not entitled to purchase cigarettes or other tobacco
products, free of Oklahoma excise tax, from retailers licensed by any
other tribe or nation, compacting or not, but have a right to
purchase cigarettes and other tobacco products, free of Oklahoma
excise tax, upon the "Indian country" of the tribe or nation of which
the purchaser is a member, per the United States Supreme Court
decision "Oklahoma Tax Commission v. Citizen Band Potawatomi Indian
Tribe of Oklahoma", 498 U.S. 505 (1991).
C. Cigarettes held for sale to members of a noncompacting tribe
or nation by licensed retailers of that tribe or nation, which are
located on the "Indian country" of that tribe or nation, as defined
by 18 USC Section 1151(a) and paragraph 3 of Section 348 of this
title, must bear a stamp issued by the Oklahoma Tax Commission
evidencing that cigarettes are purchased free of Oklahoma cigarette
excise tax. The following procedures shall apply to said stamps
(hereafter, "Native American tax free stamps"):
1. The probable demand for Native American tax free stamps for
each noncompacting tribe or nation shall be determined by the Tax
Commission by ascertaining the total membership in Oklahoma of the
tribe or nation from the Bureau of Indian Affairs or other reliable
source of public information regarding such membership, and
multiplying that number by the percentage of smokers in Oklahoma or
in the United States, whichever is greater, based on the most recent
data available from the State Department of Health and/or other
reliable source of public information. The product of that
calculation shall be multiplied by the average yearly consumption of
cigarettes by smokers in Oklahoma or the United States, whichever is
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greater, based on the most recent data available from the State
Department of Health and/or other reliable source of public
information. The resulting number shall be deemed to constitute the
probable demand for Native American tax free stamps of such
noncompacting tribe or nation for a calendar year.
2. A preliminary determination of probable demand shall be
furnished to the governing authorities of each noncompacting tribe or
nation which may submit, for consideration by the Tax Commission, any
verifiable information in its possession regarding such probable
demand, including, but not limited to, a verifiable record of
previous sales to tribal members or other statistical evidence.
3. After consideration of all verifiable information furnished
by a noncompacting tribe or nation pursuant to paragraph 2 of this
subsection, the Tax Commission shall make its final determination of
probable demand, and furnish such determination to the subject
noncompacting tribe or nation and to all Oklahoma-licensed cigarette
wholesalers.
4. Each calendar year, the Tax Commission shall establish, as to
any and all Oklahoma-licensed cigarette wholesalers supplying
cigarettes to tribally licensed or owned retailers of each
noncompacting tribe or nation an allocation of the probable demand
for such tribe or nation, based upon each wholesaler's previous
year's reported sales of cigarettes to the tribally licensed or owned
retailers of such tribe or nation. In making such allocation, the
Tax Commission shall consider such other verifiable information as
may be submitted by a licensed wholesaler or such tribe or nation.
Upon reaching a final determination of allocation, the Tax Commission
shall advise the affected wholesaler and the tribe or nation.
5. Oklahoma-licensed wholesalers may request and receive from
the Tax Commission, at the beginning of each quarter of the year,
their allocated share of Native American tax free stamps for the
tribally licensed or owned retailers of each noncompacting tribe or
nation. Once a wholesaler has received its allocated share of Native
American tax free stamps for the tribally licensed or owned retailers
of a noncompacting tribe or nation for the quarter, that wholesaler
may not receive any further Native American tax free stamps for
tribally licensed or owned retailers of that tribe or nation during
the quarter, absent good cause shown by verifiable information
submitted by the wholesaler and/or that tribe or nation, which shall
be considered and determined by the Tax Commission on a case-by-case
basis.
6. The Tax Commission is empowered and authorized to promulgate
such rules and regulations as, in its discretion, shall be deemed
necessary to implement and enforce the provisions of this section.
7. The sale of cigarettes bearing the Native American tax-free
stamp to a nonmember of the tribe or nation which licensed the
tribally owned or licensed retailer shall, in accordance with the
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United States Supreme Court decision "Oklahoma Tax Commission v.
Citizen Band Potawatomi Indian Tribe of Oklahoma", 498 U.S. 505
(1991), obligate that tribal retailer for payment of the applicable
Oklahoma cigarette excise tax, together with the costs and attorney
fees associated with any civil action brought to collect the unpaid
Oklahoma cigarette excise tax. Such actions may be instituted in the
district court in and for the county in which the tribal retailer is
located.
D. The Oklahoma excise tax on all tobacco products other than
cigarettes (hereafter "other tobacco products") held for sale by
Oklahoma-licensed wholesalers shall be paid by the wholesaler and
stamps affixed thereto by the wholesaler pursuant to Section 403 of
this title, including those other tobacco products which may be
purchased by members of noncompacting tribes and nations on the
"Indian country" of such tribe or nation from a retailer licensed or
owned by such tribe or nation. The following procedures shall apply
to the tax-free sale of other tobacco products:
1. The probable demand for the tax-free consumption of other
tobacco products by members of each noncompacting tribe or nation
shall be determined by the Tax Commission by ascertaining the total
membership in Oklahoma of the tribe or nation from the Bureau of
Indian Affairs or other reliable source of public information
regarding such membership, and multiplying that number by the
percentage of users of such other tobacco products in Oklahoma or the
United States, whichever is greater, based on the most recent data
available from the State Department of Health and/or other reliable
source of public information. The product of that calculation shall
be multiplied by the average yearly consumption of users of such
other tobacco products in Oklahoma or the United States, whichever is
greater, based on the most recent data available from the State
Department of Health and/or other reliable source of public
information. The resulting number shall be deemed to constitute the
probable demand for the tax-free consumption of other tobacco
products by members of such noncompacting tribes or nations for a
calendar year.
2. A preliminary determination of probable demand shall be
furnished to the governing authorities of each noncompacting tribe or
nation, which may submit, for consideration by the Tax Commission,
any verifiable information in its possession regarding such probable
demand, including, but not limited to, a verifiable record of
previous sales to tribal members or other statistical evidence.
3. After consideration of all verifiable information furnished
by a noncompacting tribe or nation pursuant to paragraph 2 of this
subsection, the Tax Commission shall make its final determination of
probable demand and furnish such determination to the subject
noncompacting tribe or nation and to all Oklahoma-licensed other
tobacco product wholesalers.
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4. Each calendar year, the Tax Commission shall establish, as to
any and all Oklahoma-licensed other tobacco product wholesalers
supplying other tobacco products to the tribally licensed or owned
retailers of each noncompacting tribe or nation an allocation of the
probable demand for such tribe or nation, based upon each
wholesaler's previous year's reported sales of other tobacco products
to the tribally licensed or owned retailers of such tribe or nation.
In making such allocation, the Tax Commission shall consider such
other verifiable information as may be submitted by a licensed
wholesaler or such tribe or nation. Upon reaching a final
determination of allocation, the Tax Commission shall advise the
affected wholesaler and the tribe or nation.
5. Oklahoma-licensed wholesalers may request and receive from
the Tax Commission, on the 30th of each month, a refund and/or credit
for the previous month's tax-free sales of other tobacco products,
equal to the lesser of: one twelfth (1/12) of their allocated share
of tax-free sales of other tobacco products to the tribally licensed
or owned retailers of each noncompacting tribe or nation or
verifiable tax-free sales to the licensed or owned tribal retailers
of such tribe or nation. Once a wholesaler has received such refund
and/or credit for a previous month's tax-free sales to the tribally
licensed or owned retailers of each noncompacting tribe or nation,
that wholesaler may not receive any further refund and/or credit for
said previous month, absent good cause shown by verifiable
information submitted by the wholesaler and/or the noncompacting
tribe or nation, which shall be considered and determined by the Tax
Commission on a case-by-case basis.
6. The Tax Commission is empowered and authorized to promulgate
such rules and regulations as, in its discretion, shall be deemed
necessary to implement and enforce the provisions of this section.
7. The tax-free sale of other tobacco products to a nonmember of
the noncompacting tribe or nation which licenses the tribally owned
or licensed retailer shall, in accordance with the United States
Supreme Court decision "Oklahoma Tax Commission v. Citizen Potawatomi
Indian Tribe of Oklahoma", 498 U.S. 505 (1991), obligate that tribal
retailer for payment of the applicable Oklahoma other tobacco product
excise tax, together with the costs and attorney fees associated with
any civil action brought to collect the unpaid Oklahoma other tobacco
product excise tax. Such actions may be instituted in the district
court in and for the county in which the tribal retailer is located.
E. The provisions of this section are intended to, and shall be
construed to apply only to, sales of cigarettes and other tobacco
products on the "Indian country" of noncompacting federally
recognized Indian tribes or nations to the members of such tribes or
nations. In the event that a noncompacting tribe or nation enters
into an agreement with the State of Oklahoma, pursuant to Section 346
of this title, the terms of such compact shall take precedence over
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the provisions of this section, which shall have no application to
any tribe or nation, while any compact between the State of Oklahoma
and that tribe or nation is in force and effect.
F. All cigarettes which are sold or held for sale at tribally
owned or licensed stores shall have affixed thereto a stamp or stamps
evidencing payment or nonpayment of the Oklahoma cigarette excise
tax, as required by the provisions in this section.
G. It shall be unlawful for any person knowingly to ship,
transport, receive, possess, sell, distribute or purchase contraband
cigarettes. Any person who engages in shipping, transporting,
receiving, possessing, selling, distributing or purchasing contraband
cigarettes shall, upon conviction, be guilty of a misdemeanor
punishable by a fine of not more than One Thousand Dollars
($1,000.00). Any person convicted of a second or subsequent
violation hereof shall be guilty of a felony and shall be punishable
by fine of not more than Five Thousand Dollars ($5,000.00), by a term
of imprisonment in the custody of the Department of Corrections for
not more than two (2) years, or by both such fine and imprisonment.
H. Any person who knowingly engages in shipping, transporting,
receiving, processing, selling, distributing or purchasing contraband
cigarettes shall be subject to the forfeiture of property as is
provided by Section 305 of this title and assessment of penalty as
provided thereby and assessment for any delinquent taxes found to be
owing.
I. Pursuant to 25 C.F.R., Section 140.17, no trader shall sell
tobacco, cigars or cigarettes to any Indian or other person under
eighteen (18) years of age.
Added by Laws 2009, c. 434, § 9, eff. Jan. 1, 2010. Amended by Laws
2014, c. 338, § 3, eff. Nov. 1, 2014.
§68-350. Persons eligible to sell cigarettes to tribally owned or
licensed store - Duty to affix tax stamp - Tribally owned or licensed
stores to do business only with stamped cigarettes.
A. Every wholesaler, jobber or warehouseman doing business
within this state and required to secure a license as provided in
Section 304 of Title 68 of the Oklahoma Statutes may sell cigarettes
to tribally owned or licensed stores in this state. It shall be the
duty of the wholesaler, jobber or warehouseman to affix the tax stamp
required by Section 4 of this act to cigarette inventory sold to a
tribally owned or licensed store.
B. Tribally owned or licensed stores may only purchase, receive,
stock, possess, sell or distribute stamped cigarettes.
Added by Laws 1992, c. 339, § 5, eff. Jan. 1, 1993.
§68-350.1. Cigarettes not purchased for sale at tribally owned or
licensed store - Liability for additional tax due - Wholesaler.
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If a wholesaler timely accepts documentation as prescribed by the
Oklahoma Tax Commission from a person claiming that the cigarettes
will be sold at a tribally owned or licensed store, the wholesaler
shall be relieved of any liability for any additional tax due or
required to be collected should it later be determined that the
cigarettes were not purchased for sale at a tribally owned or
licensed store.
Added by Laws 1993, c. 146, § 13. Amended by Laws 2009, c. 434, §
10, eff. Jan. 1, 2010.
§68-351. Seizure and forfeiture of unstamped cigarettes - Authority
of peace officers - Cooperation with Tax Commission.
A. All unstamped cigarettes sold or shipped to tribally owned or
licensed stores in this state by wholesalers, jobbers or warehousemen
not licensed by this state pursuant to the provisions of Section 304
of Title 68 of the Oklahoma Statutes for the purpose of selling or
consuming unstamped cigarettes in this state in violation of this act
shall be subject to seizure of the shipments and forfeiture of the
inventory pursuant to the provisions of Section 305 of Title 68 of
the Oklahoma Statutes.
B. Any peace officer of this state, including but not limited to
officers of the Department of Public Safety or the Oklahoma State
Bureau of Investigation, any sheriff, any salaried deputy sheriff or
any municipal police officer is authorized to stop any vehicle upon
any road or highway of this state in order to inspect the bill of
lading or to take such action as may be necessary to determine if
unstamped cigarettes are being sold or shipped in violation of the
provisions of this section. Such officers shall also have the duty
to cooperate with the Oklahoma Tax Commission to enforce the
provisions of this act.
Added by Laws 1992, c. 339, § 6, eff. Jan. 1, 1993.
§68-352. Disposition of revenues.
A. Except as otherwise provided in subsection D of Section 2 of
this act, any revenue from a payment in lieu of excise taxes on
cigarettes pursuant to a compact entered into by the State of
Oklahoma and a federally recognized Indian tribe or nation pursuant
to the provisions of subsection C of Section 346 of this title shall
be deposited to the General Revenue Fund.
B. Any revenue from payment of the tax imposed by Section 349 of
this title shall be deposited to the General Revenue Fund.
Added by Laws 1992, c. 339, § 7, eff. Jan. 1, 1993. Amended by Laws
2004, c. 322, § 9, eff. Dec. 1, 2004 (State Question No. 713,
Legislative Referendum No. 336, adopted at election held Nov. 2,
2004).
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§68-360. Repealed by Laws 2004, c. 266, § 9, emerg. eff. May 6,
2004.
§68-360.1. Short title.
Sections 1 through 8 of this act shall be known and may be cited
as the "Master Settlement Agreement Complementary Act".
Added by Laws 2004, c. 266, § 1, emerg. eff. May 6, 2004.
§68-360.2. Declaration of public policy.
The Oklahoma Legislature declares that violations of Sections
600.1 through 600.23 of Title 37 of the Oklahoma Statutes threaten
the integrity of the Master Settlement Agreement as defined in
Section 600.22 of Title 37 of the Oklahoma Statutes, the fiscal
soundness of the state, and the public health. The Legislature
declares that enacting this act enhances the Prevention of Youth
Access to Tobacco Act by preventing violations and aiding in the
enforcement of the Master Settlement Agreement Complementary Act and
thereby safeguard the Master Settlement Agreement, the fiscal
soundness of the state, and the public health.
Added by Laws 2004, c. 266, § 2, emerg. eff. May 6, 2004.
§68-360.3. Definitions.
As used in the Master Settlement Agreement Complementary Act:
1. "Brand family" means all styles of cigarettes sold under the
same trademark and differentiated from one another by means of
additional modifiers or descriptors, including, but not limited to,
"menthol", "lights", "kings", and "100s", and includes any brand name
alone or in conjunction with any other word, trademark, logo, symbol,
motto, selling message, recognizable pattern of colors, or any other
indicia of product identification identical or similar to, or
identifiable with, a previously known brand of cigarettes;
2. "Cigarette" has the same meaning as that term is defined in
Section 600.22 of Title 37 of the Oklahoma Statutes;
3. "Tax Commission" means the Oklahoma Tax Commission;
4. "Master Settlement Agreement" has the same meaning as in
Section 600.22 of Title 37 of the Oklahoma Statutes;
5. "Nonparticipating manufacturer" means any tobacco product
manufacturer as defined in Section 600.22 of Title 37 of the Oklahoma
Statutes that is not a participating manufacturer;
6. "Participating manufacturer" has the meaning given that term
in Section II(jj) of the Master Settlement Agreement as defined in
Section 600.22 of Title 37 of the Oklahoma Statutes and all
amendments to the Master Settlement Agreement;
7. "Qualified escrow fund" has the same meaning as that term is
defined in Section 600.22 of Title 37 of the Oklahoma Statutes;
8. "Stamping agent" means any entity that is authorized under
subsection A of Section 304 of Title 68 of the Oklahoma Statutes to
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affix any tax stamps issued by the Oklahoma Tax Commission to
packages of cigarettes, or any entity authorized pursuant to Section
415 of Title 68 of the Oklahoma Statutes to pay to the Oklahoma Tax
Commission any tobacco products tax; and
9. "Units sold" has the same meaning as that term is defined in
Section 600.22 of Title 37 of the Oklahoma Statutes.
Added by Laws 2004, c. 266, § 3, emerg. eff. May 6, 2004.
§68-360.4. Certification by manufacturer.
A. 1. Every tobacco product manufacturer whose cigarettes are
sold in this state, whether directly or through a distributor,
retailer or similar intermediary or intermediaries, shall execute and
deliver on a form or in the manner prescribed by the Attorney General
a certification to the Oklahoma Tax Commission and Attorney General,
no later than April 30 of each year, certifying under penalty of
perjury that, as of the date of certification, the tobacco product
manufacturer either:
a. is a participating manufacturer, or
b. is in full compliance with the provisions of Sections
600.21 through 600.23 of Title 37 of the Oklahoma
Statutes.
2. A participating manufacturer shall include in its
certification a list of its brand families. The participating
manufacturer shall update the list thirty (30) calendar days prior to
any addition to or modification of its brand families by executing
and delivering a supplemental certification to the Attorney General
and the Oklahoma Tax Commission.
3. A nonparticipating manufacturer shall include in its
certification:
a. a list of all of its brand families and the number of
units sold for each brand family that were sold in the
state during the preceding calendar year, and
b. a list of all of its brand families that have been sold
in the state at any time during the current calendar
year:
(1) indicating, by an asterisk, any brand family sold
in the state during the preceding calendar year
that is no longer being sold in the state as of
the date of the certification, and
(2) identifying by name and address any other
manufacturer of the brand families in the
preceding or current calendar year.
The nonparticipating manufacturer shall update the list thirty (30)
calendar days prior to any corrected final addition to or
modification of its brand families by executing and delivering a
supplemental certification to the Attorney General and the Oklahoma
Tax Commission.
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4. In the case of a nonparticipating manufacturer, the
certification shall further certify that the nonparticipating
manufacturer:
a. is registered to do business in the state or has
appointed a resident agent for service of process and
provided notice thereof as required by Section 360.5 of
this title,
b. has established and continues to maintain a qualified
escrow fund, and
c. has executed a qualified escrow agreement that has been
reviewed and approved by the Attorney General and that
governs the qualified escrow fund as defined in Section
600.22 of Title 37 of the Oklahoma Statutes that the
nonparticipating manufacturer is in full compliance
with the provisions of Sections 600.21 through 600.23
of Title 37 of the Oklahoma Statutes and the Master
Settlement Agreement Complementary Act and any rules
promulgated pursuant to the Master Settlement Agreement
Complementary Act.
5. The nonparticipating manufacturer shall include with
certification:
a. the name, address, and telephone number of the
financial institution with which the nonparticipating
manufacturer has established its qualified escrow fund,
b. the account number of its qualified escrow fund and any
subaccount number for the State of Oklahoma,
c. the amount the nonparticipating manufacturer placed in
the qualified escrow fund for cigarettes sold in
Oklahoma during the preceding calendar year, the date
and amount of each deposit to the fund, and any
evidence or verification as may be deemed necessary by
the Attorney General to confirm the information
required by this paragraph, and
d. the amount and date of any withdrawal or transfer of
funds the nonparticipating manufacturer made at any
time from the qualified escrow fund or from any other
qualified escrow fund into which the nonparticipating
manufacturer made escrow payments pursuant to Section
600.23 of Title 37 of the Oklahoma Statutes rules
promulgated thereto.
6. In the case of a nonparticipating manufacturer located
outside of the United States, the certification shall further certify
that the nonparticipating manufacturer has provided a declaration
from each of its importers into the United States of any of its brand
families to be sold in Oklahoma. The declaration shall be on a form
prescribed by the Attorney General and shall state that such importer
accepts joint and several liability with the nonparticipating
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manufacturer for all escrow deposits due, for all penalties assessed
and for payment of all costs and attorney fees imposed in accordance
with Sections 600.21 through 600.23 of Title 37 of the Oklahoma
Statutes. Such declaration shall appoint for the declaration a
resident agent for service of process in Oklahoma in accordance with
Section 360.5 of this title.
7. A tobacco product manufacturer may not include a brand family
in its certification unless:
a. in the case of a participating manufacturer, the
participating manufacturer affirms that the brand
family is to be deemed to be its cigarettes for
purposes of calculating its payments under the Master
Settlement Agreement for the relevant year, in the
volume and shares determined pursuant to the Master
Settlement Agreement, or
b. in the case of a nonparticipating manufacturer, the
nonparticipating manufacturer affirms that the brand
family is to be deemed to be its cigarettes for
purposes of the provisions of Sections 600.21 through
600.23 of Title 37 of the Oklahoma Statutes.
8. Nothing in this section shall be construed as limiting or
otherwise affecting the right of this state to maintain that a brand
family constitutes cigarettes of a different tobacco product
manufacturer for purposes of calculating payments under the Master
Settlement Agreement or for purposes of Sections 600.21 through
600.23 of Title 37 of the Oklahoma Statutes.
9. Tobacco product manufacturers shall maintain all invoices and
documentation of sales and other information relied upon for the
certification for a period of five (5) years, unless otherwise
required by law to maintain them for a greater period of time.
10. At the time a manufacturer submits a yearly written
certification pursuant to this section, the manufacturer shall pay to
the Office of the Attorney General a fee of One Thousand Dollars
($1,000.00). All fees collected pursuant to this paragraph shall be
deposited in the Attorney General’s Revolving Fund.
B. 1. Not later than ninety (90) calendar days after this act
takes effect, the Attorney General shall develop and publish on its
website a directory listing all tobacco product manufacturers that
have provided current and accurate certifications conforming to the
requirements of subparagraph a of paragraph 4 of subsection A of this
section and all brand families that are listed in the certifications,
except as otherwise provided in this section.
2. The Attorney General shall not include or retain in the
directory the name or brand families of any nonparticipating
manufacturer that has failed to provide the required certification or
whose certification the Attorney General determines is not in
compliance with paragraphs 3, 4, and 5 of subsection A of this
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section, unless the Attorney General has determined that a violation
has been cured to the satisfaction of the Attorney General.
3. Neither a tobacco product manufacturer nor brand family shall
be included or retained in the directory if the Attorney General
concludes, in the case of a nonparticipating manufacturer, that:
a. any escrow payment required pursuant to Section 600.23
of Title 37 of the Oklahoma Statutes for any period for
any brand family, whether or not listed by the
nonparticipating manufacturer, has not been fully paid
into a qualified escrow fund governed by a qualified
escrow agreement that has been approved by the Attorney
General,
b. any outstanding final judgment, including interest
thereon, for a violation of the provisions of Sections
600.21 through 600.23 of Title 37 of the Oklahoma
Statutes has not been fully satisfied for the brand
family or manufacturer, or
c. the nonparticipating manufacturer or such tobacco
product manufacturer fails to provide reasonable
assurance that it will comply with the requirements of
this section or Sections 600.21 through 600.23 of Title
37 of the Oklahoma Statutes, or the manufacturer has
knowingly failed to disclose any material information
required or knowingly made any material false statement
in the certification of any supporting information or
documentation provided. As used in this subparagraph,
reasonable assurances may include information and
documentation establishing to the satisfaction of the
Attorney General that a failure to pay in Oklahoma or
elsewhere was the result of a good-faith dispute over
the payment obligation.
4. The Attorney General shall update the directory as necessary
in order to correct mistakes and to add or remove a tobacco product
manufacturer or brand family to keep the directory in conformity with
the requirements of the Master Settlement Agreement Complementary
Act.
5. Every stamping agent shall provide and update, as necessary,
an electronic mail address to the Oklahoma Tax Commission and the
Attorney General for the purpose of receiving any notifications as
may be required by the Master Settlement Agreement Complementary Act.
6. Any nonparticipating manufacturer may request, by facsimile
transmission or other means to the Attorney General’s Tobacco
Enforcement Unit, information regarding its current compliance status
pursuant to this act and to Sections 600.21 through 600.23 of Title
37 of the Oklahoma Statutes. Upon receipt of such request, the
Attorney General shall inform the requesting nonparticipating
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manufacturer of its current compliance status before close of
business within three (3) business days.
C. It shall be unlawful for any person to:
1. Affix a stamp to a package or other container of cigarettes
of a tobacco product manufacturer or brand family not included in the
directory; and
2. Sell, offer, or possess for sale, in this state, or import
for personal consumption in this state, cigarettes of a tobacco
product manufacturer or brand family not included in the directory.
Added by Laws 2004, c. 266, § 4, emerg. eff. May 6, 2004. Amended by
Laws 2009, c. 434, § 11, eff. Jan. 1, 2010.
§68-360.5. Nonresident or foreign nonparticipating manufacturers -
Appointment of agent - Appointment of Secretary of State.
A. Any nonresident or foreign nonparticipating manufacturer that
has not registered to do business in this state as a foreign
corporation or business entity shall appoint and continually engage
without interruption, as a condition precedent to having its brand
families included or retained in the directory, the services of an
agent in this state to act as agent for the service of process on
whom all process, and any action or proceeding against it concerning
or arising out of the enforcement of the Master Settlement Agreement
Complementary Act and Sections 600.21 through 600.23 of Title 37 of
the Oklahoma Statutes, may be served in any manner authorized by law.
The service shall constitute legal and valid service of process on
the nonparticipating manufacturer. The nonparticipating manufacturer
shall provide the name, address, phone number, and proof of the
appointment and availability of the agent to perform the duties of an
agent pursuant to the Master Settlement Agreement Complementary Act
and to the satisfaction of the Oklahoma Tax Commission and the
Attorney General. Any nonparticipating manufacturer located outside
of the United States shall, as an additional condition precedent to
having its brand families listed or retained in the Directory, cause
each of its importers into the United States of any of its brand
families to be sold in Oklahoma to appoint and continuously engage
without interruption the services of an agent in the State of
Oklahoma in accordance with the provisions of this act. All
obligations of a nonparticipating manufacturer imposed by this act
with respect to appointment of its agent shall likewise apply to such
importers with respect to appointment of their agents.
B. The nonparticipating manufacturer shall provide notice to the
Oklahoma Tax Commission and Attorney General thirty (30) calendar
days prior to termination of the authority of an agent and shall
further provide proof to the satisfaction of the Attorney General of
the appointment of a new agent no less than five (5) calendar days
prior to the termination of an existing agent appointment. If an
agent terminates an agency appointment, the nonparticipating
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manufacturer shall notify the Oklahoma Tax Commission and Attorney
General of the termination within five (5) calendar days and shall
include proof to the satisfaction of the Attorney General of the
appointment of a new agent.
C. Any nonparticipating manufacturer whose cigarettes are sold
in this state, who has not appointed and engaged an agent as required
by this section, shall be deemed to have appointed the Secretary of
State as its agent and may be proceeded against in courts of this
state by service of process upon the Secretary of State. However,
the appointment of the Secretary of State as the agent shall not
satisfy the condition precedent for having the brand families of the
nonparticipating manufacturer included or retained in the directory.
Added by Laws 2004, c. 266, § 5, emerg. eff. May 6, 2004. Amended by
Laws 2009, c. 434, § 12, eff. Jan. 1, 2010.
§68-360.5-1. Joint and several liability of importers of
nonparticipating manufacturer's brand families.
For each nonparticipating manufacturer located outside the United
States, each importer into the United States of any such
nonparticipating manufacturer’s brand families that are sold in
Oklahoma shall bear joint and several liability with such
nonparticipating manufacturer for deposit of all escrow due, payment
of all penalties imposed and payment of all costs and attorney fees
imposed under Sections 600.21 through 600.23 of Title 37 of the
Oklahoma Statutes and the Master Settlement Agreement.
Added by Laws 2009, c. 434, § 13, eff. Jan. 1, 2010.
§68-360.6. Submission of information by stamping agents – Escrow
deposits.
A. Not later than twenty (20) calendar days after the end of
each calendar month, and more frequently if so directed by the
Oklahoma Tax Commission, each stamping agent shall submit any
information the Oklahoma Tax Commission requires to facilitate
compliance with the Master Settlement Agreement Complementary Act,
including, but not limited to, a list by brand families of the total
number of cigarettes, or in the case of roll-your-own tobacco, the
equivalent stick count, for which the stamping agent affixed stamps
during the previous calendar month or otherwise paid the tax due for
such cigarettes. The stamping agent shall maintain, and make
available to the Oklahoma Tax Commission and the Attorney General,
all invoices and documentation of sales of all nonparticipating
manufacturer cigarettes and any other information relied upon in
reporting to the Oklahoma Tax Commission for a period of five (5)
years.
B. The Oklahoma Tax Commission may disclose to the Attorney
General any information received under the Master Settlement
Agreement Complementary Act and requested by the Attorney General for
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purposes of determining compliance with and enforcing the provisions
of the act. The Oklahoma Tax Commission and Attorney General shall
share with each other the information received under the Master
Settlement Agreement Complementary Act and may share the information
with other federal, state, or local agencies only for purposes of
enforcement or litigation of the act, the provisions of Sections
600.21 through 600.23 of Title 37 of the Oklahoma Statutes,
corresponding laws of other states, and the Master Settlement
Agreement.
C. The Attorney General may require at any time from a
nonparticipating manufacturer proof, from the financial institution
in which the nonparticipating manufacturer has established a
qualified escrow fund for the purpose of compliance with the
provisions of Sections 600.21 through 600.23 of Title 37 of the
Oklahoma Statutes, of the amount of money in the fund, exclusive of
interest, the amount and date of each deposit to the fund, and the
amount and date of each withdrawal from the fund.
D. In addition to the information required to be submitted
pursuant to the Oklahoma Tax Commission, the Attorney General may
require a stamping agent or tobacco product manufacturer to submit
any additional information including, but not limited to, samples of
the packaging or labeling of each brand family, and proof of
compliance with laws and regulations regarding the manufacture,
labeling, importation, and exportation of cigarettes, as is necessary
to enable the Attorney General to determine whether a tobacco product
manufacturer is in compliance with the Master Settlement Agreement
Complementary Act. The Oklahoma Tax Commission and the Attorney
General may require production of information sufficient to enable
the Attorney General to determine the adequacy of the amount of the
installment deposit.
E. To promote compliance with the Master Settlement Agreement
Complementary Act, the Oklahoma Tax Commission, at the request of the
Attorney General, may promulgate rules requiring a tobacco product
manufacturer subject to the requirements of paragraph 2 of subsection
A of Section 600.23 of Title 37 of the Oklahoma Statutes to make the
escrow deposits required in quarterly installments during the year in
which the sales covered by the deposits are made.
Added by Laws 2004, c. 266, § 6, emerg. eff. May 6, 2004.
§68-360.7. Violations - Revocation or suspension of license - Civil
penalties - Contraband - Seizure and forfeiture - Injunction.
A. In addition to or in lieu of any other civil or criminal
remedy provided by law, upon a determination that a stamping agent
has violated Section 360.6 of this title or any rule promulgated
pursuant to the Master Settlement Agreement Complementary Act, the
Oklahoma Tax Commission may revoke or suspend the license of the
stamping agent. Each stamp affixed and each sale or offer to sell
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cigarettes in violation of the Master Settlement Agreement
Complementary Act shall constitute a separate violation. For each
violation, the Oklahoma Tax Commission may also impose a civil
penalty in an amount not to exceed the greater of five hundred
percent (500%) of the retail value of the cigarettes or Five Thousand
Dollars ($5,000.00) upon a determination of violation of the Master
Settlement Agreement Complementary Act or any rules promulgated
pursuant thereto.
B. Any cigarettes that have been sold, offered for sale, or
possessed for sale in this state or imported for personal consumption
in this state, in violation of the Master Settlement Agreement
Complementary Act, shall be deemed contraband pursuant to the Master
Settlement Agreement Complementary Act. Those cigarettes shall be
subject to seizure and forfeiture as provided by this section and all
cigarettes so seized and forfeited shall be destroyed as provided by
this section and not resold.
C. 1. Cigarettes or tobacco product distributors and
wholesalers licensed by the Oklahoma Tax Commission, pursuant to
Section 304 or 415 of this title, who also distribute cigarettes in a
state bordering Oklahoma may store in their Oklahoma warehouse
cigarettes made contraband under this section if, and only if, they
have the tax stamp of another state affixed to each package of
cigarettes.
2. Cigarettes or roll-your-own tobacco products made contraband
pursuant to this section, without being subject to seizure or
forfeiture, may be transported in, into, or through the state either:
a. on a commercial carrier with a proper bill of lading
with an out-of-state destination,
b. when the tax stamp of another state is affixed to each
pack of cigarettes or tobacco product transported, or
c. on a commercial carrier with a proper bill of lading to
a tobacco product distributor or wholesaler licensed by
the Oklahoma Tax Commission, pursuant to Section 304 or
415 of this title, who also distributes cigarettes in a
state bordering Oklahoma if, and only if, the packing
slip accompanying the shipment indicates the shipment
is for sale in another state and indicates which state,
and the invoice for the shipment also indicates the
shipment is for sale in a state other than Oklahoma and
identifies the state in which the shipment is to be
sold. The time of delivery of the shipments shall be
indicated on the bill of lading of the common carrier
when delivery is completed. The receiving Oklahoma
distributor or wholesaler must, within twenty-four (24)
hours of receiving the delivery, affix or cause to be
affixed to each package of cigarettes the stamp of the
state in which they are to be sold.
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3. All such cigarettes and tobacco products so seized shall
first be listed and appraised by the officer making such seizure and
turned over to the Tax Commission and a receipt therefor taken. The
person making such seizure shall immediately make and file a written
report thereof, showing the name of the person making such seizure,
the place where and the person from whom such property was seized,
and an inventory and appraisement thereof, at the usual and ordinary
retail price of such articles received, to the Tax Commission, and
the Attorney General, in the case of cigarettes stamped, sold,
offered for sale, or imported into this state in violation of the
provisions of Section 305.1 of this title and tobacco made contraband
by this section. Within sixty (60) days of seizure, the person from
whom the property was seized may file a request for hearing with the
Tax Commission or the Attorney General to show why the seized
property should not be forfeited and destroyed. If a hearing is
requested, the owner of the cigarettes and tobacco products shall be
given at least ten (10) days' notice of the hearing. If no request
for hearing is filed within the time provided, the property seized
will be forfeited and destroyed.
4. Any and all vehicles and property so seized shall be listed
and appraised by the officer making the seizure and turned over to
the county sheriff of the county in which the seizure is made and a
receipt therefor taken. The person making the seizure shall
immediately make a written report of the seizure, showing the name of
the person making the seizure, the location of the seizure, the
person from whom the property was seized, and an inventory and
appraisement of the property at the usual and ordinary retail price
of the articles received. The report shall be filed with the
Oklahoma Tax Commission and the Attorney General. The district
attorney of the county in which the seizures are made, at the request
of the Oklahoma Tax Commission or Attorney General, shall file in the
district court forfeiture proceedings in the name of the State of
Oklahoma, as plaintiff, and in the name of the owner or person in
possession, as defendant, if known, and if unknown or not susceptible
to the jurisdiction of the court, in the name of the property seized.
The clerk of the court shall issue a summons to the owner or person
in whose possession the property was found directing the owner or
person to answer within ten (10) days. At the forfeiture proceeding,
if a distributor or wholesaler demonstrates through clear and
convincing evidence that the possession of contraband by the
distributor or wholesaler was accidental, the vehicle in which the
contraband was being transported shall not be forfeited. In no case,
however, shall possession of more than twenty (20) cartons of
contraband product be considered by the courts as being possessed
accidentally. If the property is declared forfeited and ordered
sold, notice of the sale shall be posted not less than ten (10) days
before the date of sale in five public places in the county in which
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the seizures are made. Proceeds of the sale shall be deposited with
the clerk of the court, who shall, after deducting costs including
the costs of prosecution, storage, and sale, pay the balance to the
Oklahoma Tax Commission for deposit in the Tobacco Settlement
Endowment Trust Fund.
D. The Attorney General may seek an injunction to restrain a
threatened or actual violation of the Master Settlement Agreement
Complementary Act by a stamping agent and to compel the stamping
agent to comply with those provisions. In any action brought
pursuant to this section, the state shall be entitled to recover the
costs of investigation, costs of the action, and reasonable attorney
fees.
E. 1. It shall be unlawful for a person to:
a. sell or distribute cigarettes, or
b. acquire, hold, own, possess, transport, import, or
cause to be imported cigarettes that the person knows
or should know are intended for distribution or sale in
the state in violation of the Master Settlement
Agreement Complementary Act. A violation of the act
shall be a misdemeanor.
2. A person who violates subsection C of Section 360.4 of this
title engages in an unfair and deceptive trade practice in violation
of the provisions of the Oklahoma Consumer Protection Act.
Added by Laws 2004, c. 266, § 7, emerg. eff. May 6, 2004. Amended by
Laws 2008, c. 378, § 9, emerg. eff. June 4, 2008; Laws 2018, c. 66, §
5, eff. July 1, 2018.
§68-360.8. Placement of products on directory – Issuance of license
– Certification of compliance – Due dates for reports – Recovery of
costs.
A. The Attorney General need not place on the directory the
products of a tobacco product manufacturer that has not provided all
the information required in the certification.
B. The consideration of a certification of a tobacco product
manufacturer to have its brand added to the directory by the Attorney
General shall not be considered an individual proceeding under the
Administrative Procedures Act, nor shall the procedural requirements
for an individual proceeding apply to that consideration.
C. No person shall be issued a license or granted a renewal of a
license to act as a stamping agent unless the person has certified in
writing, under penalty of perjury, that the person will comply fully
with this section.
D. For calendar year 2004, if the effective date of this act is
later than March 16, 2004, the first report of stamping agents
required by subsection A of Section 6 of this act shall be due thirty
(30) calendar days after the effective date of this act. The
certifications by a tobacco product manufacturer described in
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subsection A of Section 4 of this act shall be due forty-five (45)
calendar days after the effective date of this act. The directory
described in subsection B of Section 4 of this act shall be published
or made available within ninety (90) calendar days after the
effective date of this act. Until the directory is published on the
website of the Attorney General, all cigarette brands of tobacco
product manufacturers which are on a list of the names and brand
names of tobacco product manufacturers that have failed to comply
with the provisions of Sections 600.21 through 600.23 of the Title 37
of the Oklahoma Statutes and published on the website of the Oklahoma
Tax Commission as provided for in Section 360 of Title 68 of the
Oklahoma Statutes, shall remain contraband and be subject to seizure
and forfeiture as provided for in that section.
E. The Oklahoma Tax Commission may promulgate rules necessary to
implement the provisions of the Master Settlement Agreement
Complementary Act.
F. In any action brought by the state to enforce the Master
Settlement Agreement Complementary Act, the state shall be entitled
to recover the costs of investigation, expert witness fees, costs of
the action, and reasonable attorney fees.
G. If a court determines that a person has violated the Master
Settlement Agreement Complementary Act, the court shall order any
profits, gain, gross receipts, or other benefit from the violation to
be disgorged and paid to the State Treasurer for deposit in the
Tobacco Settlement Endowment Trust Fund. Unless otherwise expressly
provided, the remedies or penalties provided by the Master Settlement
Agreement Complementary Act are cumulative to each other and to the
remedies or penalties available under all other laws of this state.
Added by Laws 2004, c. 266, § 8, emerg. eff. May 6, 2004.
§68-360.9. Listing of nonparticipating manufacturers in the Oklahoma
Tobacco Directory - Bond.
A. Notwithstanding any other provision of law, any
nonparticipating manufacturer shall post a bond for the exclusive
benefit of this state if:
1. It was not listed in the Oklahoma Tobacco Directory,
hereinafter referred to as the Directory, during the four (4)
consecutive calendar quarters preceding its application to be on the
Directory;
2. It had been previously listed in the Directory, but was
involuntarily removed or denied recertification for noncompliance
with the Master Settlement Agreement Complementary Act or the
Prevention of Youth Access to Tobacco Act, unless the removal was
determined to have been erroneous or illegal; or
3. The Attorney General reasonably determines that the
nonparticipating manufacturer who has filed a certification pursuant
to Section 360.4 of this title poses an elevated risk for
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noncompliance with the Master Settlement Agreement Complementary Act
or with the Prevention of Youth Access to Tobacco Act. A reasonable
risk of noncompliance with this section or the Prevention of Youth
Access to Tobacco Act includes, but is not limited to, the following
circumstances and a nonparticipating manufacturer shall be deemed to
pose an elevated risk for noncompliance if:
a. any state has removed the manufacturer or its brand or
brand families or an affiliate or any of the
affiliate's brands or brand families from the tobacco
directory of the state or placed the manufacturer or
its brand or brand families or an affiliate or any of
the affiliate's brands on a list of noncompliant
companies, brands or brand families for noncompliance
with the state law at any time during the calendar year
or within the past five (5) consecutive calendar years,
unless it submits proof that its brands, or the brands
of an affiliate were erroneously or illegally removed
from a tobacco directory of a state,
b. any state, or the federal government, has filed
litigation against or has an unsatisfied judgment
against the manufacturer or any affiliate thereof for
escrow or for penalties, costs, or attorney fees
related to noncompliance with state escrow laws or
complementary legislation, or
c. the nonparticipating manufacturer or any affiliate has
been charged, entered a plea or has been convicted of
violating the Contraband Cigarette Trafficking Act, the
Jenkins Act or the PACT Act.
B. For purposes of this section, an affiliate is an entity or
individual that either controls or is controlled by the
nonparticipating manufacturer, regardless of whether the control
being exercised is direct or indirect.
C. Neither a nonparticipating manufacturer nor any of its brand
families shall be included in the Directory unless and until the
nonparticipating manufacturer:
1. Undertakes joint and several liability with its importer for
the performance of the manufacturer in accordance with Section 360.5-
1 of this title and, if required, has posted a joint bond in
accordance with this section;
2. The manufacturer and importer, if any, have:
a. registered to do business within the state with the
Secretary of State,
b. maintained a registered service agent within the State
of Oklahoma, and
c. agreed that the Secretary of State will act as service
agent if the registered service agent dies, resigns or
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otherwise is unavailable to accept service on behalf of
the nonparticipating manufacturer or importer; and
3. The manufacturer and importer, if any, consent to be sued in
the district courts of the State of Oklahoma for purposes of the
state enforcing any provision of the Prevention of Youth Access to
Tobacco Act, the Master Settlement Agreement Complementary Act and
Oklahoma cigarette excise tax statutes.
D. The bond shall be posted by corporate surety located within
the United States in an amount equal to the greater of Fifty Thousand
Dollars ($50,000.00) or fifty percent (50%) of the required escrow
that the manufacturer in either its current or predecessor form was
required to deposit as a result of its sales in Oklahoma during the
last full calendar year it was listed in the Directory. The bond
shall be written in favor of the State of Oklahoma and shall be
conditioned on the performance by the nonparticipating manufacturer,
or its United States importer that undertakes joint and several
liability for the performance of the manufacturer in accordance with
Section 360.5-1 of this title, of all of its duties and obligations
under the Prevention of Youth Access to Tobacco Act and the Master
Settlement Agreement Complementary Act during the year in which the
certification is filed and the next succeeding calendar year.
E. Any manufacturer or importer required to post a bond in
accordance with this section shall do so for three (3) consecutive
years, or longer if the Attorney General determines the manufacturer
or importer poses an elevated risk at the end of the three-year
period.
F. If a nonparticipating manufacturer fails to make or have made
in its behalf deposits equal to the full amount owed for a quarter
within fifteen (15) days of the due date of the quarter, the State of
Oklahoma may execute on the bond in the amount of the remaining
escrow deposit due. Escrow amounts collected from the bond shall be
used to reduce the amount of escrow due from and penalties assessed
against that nonparticipating manufacturer and unpaid escrow that
exceeds the amount covered by the bond remains due from the
nonparticipating manufacturer and any importer that is jointly and
severally liable for its cigarette sales into the state.
G. In addition to the grounds contained in paragraph 3 of
subsection B of Section 360.4 of this title, the Attorney General has
the authority to not retain or not to include in the Directory any
nonparticipating manufacturer, its brands and brand families if the
manufacturer:
1. Does not certify it is subject to, without any immunity, the
Master Settlement Agreement Complementary Act and the Prevention of
Youth Access to Tobacco Act;
2. Fails to disclose that a state or the federal government has
brought an action in compliance with any state or federal law,
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regulating the sale and or distribution of tobacco products,
including the escrow statute of another state; or
3. Fails to sell only through an Oklahoma-licensed wholesaler
any tobacco product sold into the state or fails to provide monthly
PACT Act reports to the Oklahoma Tax Commission and the Oklahoma
Attorney General for sales into the state.
H. The Attorney General shall have the authority to require a
nonparticipating manufacturer to submit all information and materials
the Attorney General deems appropriate to determine compliance of the
nonparticipating manufacturer with this section and other related
laws including the grounds for retaining or not including a
manufacturer or its brands and brand families in the Directory.
Added by Laws 2009, c. 434, § 14, eff. Jan. 1, 2010. Amended by Laws
2014, c. 339, § 1, eff. Nov. 1, 2014.
§68-360.10. Authority of Attorney General to request monthly reports
of sales.
A. The Attorney General may, when considered necessary for the
enforcement of any provision of the Prevention of Youth Access to
Tobacco Act or the Master Settlement Agreement Complementary Act,
require each wholesaler or distributor of cigarettes and roll-your-
own tobacco products intended for sale in this state to file with the
Attorney General a report each month of its sales, by brand, to
retailers and wholesalers located in this state.
B. The wholesaler or distributor shall file a report on or
before the twentieth day of each month containing the following
information for the sales during the preceding calendar month of
cigarettes and roll-your-own tobacco that are subject to this section
to each retailer and wholesaler:
1. The name and address of the outlet location of each retailer
and wholesaler to which the wholesaler or distributor delivered
cigarettes, including the city and zip code;
2. The monthly sales, including the number of individual
cigarettes, by brand name, made to other wholesalers and retailers in
packages bearing the excise tax stamp of the State of Oklahoma;
3. The monthly sales, including the number of individual
cigarettes, by brand name, made to tribal retailers of compacting
Tribes, in packages bearing the joint "unity rate" tax stamp
purchased from the Oklahoma Tax Commission;
4. The monthly sales, including the number of individual
cigarettes, by brand name, made to wholesalers, retailers or
consumers located outside the State of Oklahoma in packages not
bearing the excise tax stamp of the State of Oklahoma;
5. The monthly sales, including the number of individual
cigarettes, by brand name, made to noncompacting Tribes located in
the State of Oklahoma that bear the black tax-free stamp for sales to
tribal members of a noncompacting Tribe;
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6. The monthly sales of individual containers of roll-your-own
tobacco products, by brand name and by weight, upon which the state
excise or "unity" tax has been paid, the monthly sales of individual
containers of roll-your-own tobacco products, by brand name and by
weight, made to wholesalers, retailers or consumers located outside
the State of Oklahoma on which the state excise tax has not been paid
and the monthly sales of individual containers of roll-your-own
tobacco products, by brand name and by weight, made to noncompacting
Tribes located within the State of Oklahoma; and
7. All monthly net sales reports shall include the invoice
number and invoice date of cigarettes sold, distributed or shipped
into Oklahoma. The reports shall also include the beginning and
ending inventory for each type of stamp held during the reporting
period.
C. Except as provided by this subsection, the wholesaler or
distributor shall file the report required by this section with the
Attorney General and the Oklahoma Tax Commission electronically.
D. Notwithstanding any other provision of law, the Attorney
General, in the sole discretion of the Attorney General, may use the
information contained in the reports received under this section and
reports received from the Oklahoma Tax Commission to investigate and
enforce the provisions of the Prevention of Youth Access to Tobacco
Act and the Master Settlement Agreement Complementary Act and to
demonstrate compliance of the state with the terms of the Master
Settlement Agreement and a subsequent settlement agreement entered
into with the participating manufacturers to the Master Settlement
Agreement in April 2013 and to provide information to any data
clearinghouse or similar entity established as required by the terms
of the Master Settlement Agreement and any subsequent settlement
agreement. The Attorney General may use the information to enforce
statutes related to contraband tobacco sales, including the seizure
of contraband products. For the purpose of enabling the Attorney
General to determine compliance with the provisions of this act and
statutes related to contraband tobacco sales, the Attorney General
shall have the right to inspect all premises and records related to
the manufacture, production, storage, transportation, sale or
exchange of cigarettes and tobacco products located in the State of
Oklahoma, located out of state and licensed by the Oklahoma Tax
Commission or which are on the Attorney General's Directory of
Tobacco Product Manufacturers. The Attorney General may condition
the release of the reports received by the Attorney General to only
those third parties who have signed and pledged to abide by the terms
of any confidentiality agreement that the Attorney General deems
necessary to preserve the confidentiality of the records.
E. The report required by this section, if timely filed, shall
be considered as meeting the reporting requirements of Section 360.6
of Title 68 of the Oklahoma Statutes.
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Added by Laws 2014, c. 339, § 2, eff. Nov. 1, 2014.
§68-380. Use or possession of cigarette rolling vending machines.
A. It is hereby declared that the Oklahoma Legislature finds
that the commercial use of cigarette rolling vending machines in this
state has the potential to circumvent various requirements under
Oklahoma law related to the manufacturing, marketing, sale and
taxation of cigarettes. Such use is detrimental to the fiscal
soundness of the state and to the public health.
B. As used in this section:
1. "Cigarette rolling vending machine" means a machine or device
into which loose tobacco and cigarette tubes are placed that is
capable of producing cigarettes; and
2. "Cigarette rolling vending machine operator" means any person
who owns, leases, rents or otherwise has available for use a
cigarette rolling vending machine and makes such machine available
for use by another person in a commercial setting in order to produce
a cigarette.
C. Notwithstanding any other provision of law, the following
shall be prohibited:
1. The use or possession of a cigarette rolling vending machine
for commercial purposes, except as provided in paragraph 1 of
subsection D of this section. A cigarette rolling vending machine
located in a retail business for use, not sale, shall be considered
to be used for commercial purposes;
2. The sale, resale, distribution, dispensing, or giving away to
any other person in this state cigarettes produced by a cigarette
rolling vending machine; or
3. Making a cigarette rolling vending machine available for use
by customers of a retail business to produce cigarettes.
D. The provisions of this section shall not apply to:
1. Cigarette manufacturers who have obtained a current federal
Manufacturer of Tobacco Products permit issued by the Alcohol Tobacco
and Trade Bureau ("TTB") to operate as a cigarette manufacturer; or
2. A cigarette rolling vending machine in a location other than
a retail business, which is exclusively for the personal use of an
individual.
E. Any person who possesses or uses a cigarette rolling vending
machine for commercial purposes in violation of this section is
subject to the following penalties:
1. Revocation or termination of any license, permit, appointment
or commission under Article 3, 3A, 3B, 3C, 4 or 4A of Title 68 of the
Oklahoma Statutes;
2. Forfeiture and destruction of the cigarette rolling vending
machine by the State of Oklahoma after notice and hearing; and
3. Imprisonment for not more than ninety (90) days or a fine not
exceeding Five Thousand Dollars ($5,000.00), or a combination of both
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fine and imprisonment, in any action brought by the district attorney
in whose district the cigarette rolling vending machine is located,
or by the Attorney General.
F. The remedies and penalties provided by this section are
cumulative to each other and to the remedies or penalties available
under all other laws of this state.
Added by Laws 2012, c. 202, § 1, eff. July 1, 2012.
§68-401. Definitions.
For the purpose of this article:
(a) The word "person" shall mean any individual, company,
limited liability company, corporation, partnership, association,
joint adventure, estate, trust, or any other group, or combination
acting as a unit, and the plural as well as the singular, unless the
intention to give a more limited meaning is disclosed by the context.
(b) The term "Tax Commission" shall mean the Oklahoma Tax
Commission.
(c) The word "wholesaler" shall include dealers whose principal
business is that of a wholesale dealer or jobber, and who is known to
the trade as such, who shall sell any cigars or tobacco products to
licensed retail dealers only for the purpose of resale, or giving
them away, or exposing the same where they may be taken or purchased,
or otherwise acquired by the retailer.
(d) The word "retailer" shall include every dealer, other than a
wholesale dealer as defined above, whose principal business is that
of selling merchandise at retail, who shall sell, or offer for sale,
cigars or tobacco products, irrespective of quantity, number of
sales, giving the same away or exposing the same where they may be
taken, or purchased, or otherwise acquired by the consumer.
(e) The word "consumer" shall mean a person who comes into
possession of tobacco for the purpose of consuming it, giving it
away, or disposing of it in any way by sale, barter or exchange.
(f) The words "first sale" shall mean and include the first
sale, or distribution, of cigars or tobacco products in intrastate
commerce, or the first use or consumption of cigars, or tobacco
products within this state.
(g) The words "tobacco products" shall mean any cigars,
cheroots, stogies, smoking tobacco (including granulated, plug cut,
crimp cut, ready rubbed and any other kinds and forms of tobacco
suitable for smoking in a pipe or cigarette), chewing tobacco
(including cavendish, twist, plug, scrap and any other kinds and
forms of tobacco suitable for chewing), however prepared; and shall
include any other articles or products made of tobacco or any
substitute therefor.
(h) The term "distributing agent" shall mean and include every
person in this state who acts as an agent of any person outside the
state by receiving cigars and tobacco products in interstate commerce
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and storing such items subject to distribution or delivery, upon
order from said person outside the state, to distributors, wholesale
dealers and retail dealers, or to consumers. The term "distributing
agent" shall also mean and include any person who solicits or takes
orders for cigars and tobacco products to be shipped in interstate
commerce to a person in this state by a person residing outside of
Oklahoma, the tax not having been paid on such cigars and tobacco
products.
(i) The term "stamp" shall mean the stamp or stamps by use of
which:
1. The tax levied pursuant to the provisions of Section 401 et
seq. of this title is paid;
2. The tax levied pursuant to the provisions of Section 426 of
this title is paid; or
3. The payment in lieu of taxes authorized pursuant to a compact
entered into by the State of Oklahoma and a federally recognized
Indian tribe or nation pursuant to the provisions of subsection C of
Section 346 of this title is paid.
(j) The term "drop shipment" shall mean and include any delivery
of cigars or tobacco products received by any person within the state
when payment for such cigars or tobacco products is made to the
shipper or seller by or through a person other than the consignee.
(k) The term "cigars" shall include any roll of tobacco for
smoking, irrespective of size or shape and irrespective of the
tobacco being flavored, adulterated or mixed with any other
ingredients, where such roll has a wrapper made chiefly of tobacco.
(l) The word "dealer" shall include every person, firm,
corporation, or association of persons, who manufactures cigars or
tobacco products for distribution, sale, use or consumption in the
State of Oklahoma. The word "dealer" is also further defined to mean
any person, firm, corporation or association of persons, who imports
cigars or tobacco products from any state or foreign country, for
distribution, sale, use or consumption in the State of Oklahoma.
Laws 1965, c. 238, § 2, eff. July 1, 1965; Laws 1992, c. 339, § 17,
eff. Jan. 1, 1993; Laws 1993, c. 366, § 31, eff. Sept. 1, 1993.
§68-402. Amount of tax.
There shall be levied, assessed, collected, and paid in respect
to the articles containing tobacco enumerated in Section 401 et seq.
of this title, a tax in the following amounts:
1. Little Cigars. Upon cigars of all descriptions made of
tobacco, or any substitute therefor, and weighing not more than three
(3) pounds per thousand, the tax levied on the products coming under
this paragraph shall be equal to the tax on such products that is
reported and paid as cigarette tax under Sections 301 through 325 of
this title. Further, the tax levied herein shall be paid in the same
manner as required in Sections 301 through 325 of this title;
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2. Cigars. Upon cigars of all descriptions made of tobacco, or
any substitute therefor, weighing more than three (3) pounds per
thousand and having a manufacturer's recommended retail selling
price, under the Federal Code, of not exceeding four cents ($0.04)
per cigar, one cent ($0.01) for each cigar;
3. Cigars. Upon all other cigars of all descriptions made of
tobacco, or any substitute therefor, and weighing more than three (3)
pounds per thousand, Twenty Dollars ($20.00) per thousand. For the
purpose of computing the tax, cheroots, stogies, etc., are hereby
classed as cigars;
4. Smoking Tobacco. Upon all smoking tobacco including
granulated, plug cut, crimp cut, ready rubbed and other kinds and
forms of tobacco prepared in such manner as to be suitable for
smoking in a pipe or cigarette, the tax shall be twenty-five percent
(25%) of the factory list price exclusive of any trade discount,
special discount or deals; and
5. Chewing Tobacco. Upon chewing tobacco, smokeless tobacco,
and snuff, the tax shall be twenty percent (20%) of the factory list
price exclusive of any trade discount, special discount or deals.
It shall not be permissible for a retailer to advertise that the
retailer will absorb the tax due on the taxable merchandise described
herein. Such tax shall be paid by the consumer.
Notwithstanding any other provision of law, the tax levied
pursuant to the provisions of Section 401 et seq. of this title shall
be part of the gross proceeds or gross receipts from the sale of
cigars or tobacco products, or both, as those terms are defined in
paragraph 12 of Section 1352 of this title.
Added by Laws 1965, c. 238, § 2, eff. July 1, 1965. Amended by Laws
1972, c. 48, § 1, emerg. eff. March 10, 1972; Laws 1985, c. 179, §
73, operative July 1, 1985; Laws 1999, c. 390, § 6, emerg. eff. June
8, 1999; Laws 2018, 2nd Ex. Sess., c. 8, § 3.
§68-402-1. Additional tax on tobacco products - Rates -
Apportionment of revenues.
In addition to the tax levied by Section 402 of this title, there
is hereby levied upon the sale, use, exchange or possession of
articles containing tobacco as defined in said Section 402, a tax in
the following amounts:
(a) Upon cigars of all descriptions made of tobacco, or any
substitute therefor, and weighing more than three (3) pounds per
thousand, and having a manufacturer's recommended retail selling
price, under the Federal Code, of more than four cents ($0.04) for
each cigar, Ten Dollars ($10.00) per thousand. For the purpose of
computing the tax, cheroots, stogies, etc., are hereby classed as
cigars;
(b) Upon all smoking tobacco including granulated, plug cut,
crimp cut, ready rubbed and other kinds and forms of tobacco prepared
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in such manner as to be suitable for smoking in a pipe or cigarette,
the tax shall be fifteen percent (15%) of the factory list price
exclusive of any trade discount, special discount or deals; and
(c) Upon chewing tobacco, smokeless tobacco, and snuff, the tax
shall be ten percent (10%) of the factory list price exclusive of any
trade discount, special discount or deals.
This tax shall be paid by the consumer and no retailer may
advertise that he will pay or absorb this tax.
The tax herein levied on tobacco products shall be evidenced by
stamps and collected on the same basis and in the same manner and in
all respects as the tax levied by the Tobacco Products Tax Law. The
revenue from this additional tax shall be apportioned by the Oklahoma
Tax Commission in the same manner as provided in Section 404 of this
title, for the apportionment of other tobacco products tax revenue.
Added by Laws 1968, c. 47, § 2, eff. April 1, 1968. Amended by Laws
1972, c. 48, § 2, emerg. eff. March 10, 1972; Laws 1985, c. 179, §
74, operative July 1, 1985; Laws 2018, 2nd Ex. Sess., c. 8, § 4.
§68-402-2. Repealed by Laws 2018, 2nd Ex. Sess., c. 8, § 16.
§68-402-3. Tobacco products tax in addition to tax levied in
Sections 402 to 402-1 - Rates - Apportionment.
A. In addition to the tax levied in Sections 402 and 402-1 of
this title, effective January 1, 2005, there shall be levied,
assessed, collected, and paid in respect to the articles containing
tobacco enumerated in Section 401 et seq. of this title, a tax in the
following amounts:
1. Cigars. Upon all cigars of all descriptions made of tobacco,
or any substitute therefor, and weighing more than three (3) pounds
per thousand, Ninety Dollars ($90.00) per thousand. For the purpose
of computing the tax, cheroots, stogies, etc., are hereby classed as
cigars;
2. Smoking Tobacco. Upon all smoking tobacco including
granulated, plug cut, crimp cut, ready rubbed and other kinds and
forms of tobacco prepared in such manner as to be suitable for
smoking in a pipe or cigarette, the tax shall be forty percent (40%)
of the factory list price exclusive of any trade discount, special
discount or deals; and
3. Chewing Tobacco. Upon chewing tobacco, smokeless tobacco,
and snuff, the tax shall be thirty percent (30%) of the factory list
price exclusive of any trade discount, special discount or deals.
B. Except as provided in subsection C of this section, the
revenue resulting from the additional tax levied in subsection A of
this section shall be apportioned by the Oklahoma Tax Commission and
transmitted to the State Treasurer as follows:
1. Twenty-two and six-hundredths percent (22.06%) shall be
placed to the credit of the Health Employee and Economy Improvement
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Act Revolving Fund created in Section 1010.1 of Title 56 of the
Oklahoma Statutes;
2. Three and nine-hundredths percent (3.09%) shall be placed to
the credit of the Comprehensive Cancer Center Debt Service Revolving
Fund created in Section 160.1 of Title 62 of the Oklahoma Statutes;
3. Before July 1, 2008, seven and fifty-hundredths percent
(7.50%) shall be placed to the credit of the Trauma Care Assistance
Revolving Fund created in Section 1-2530.9 of Title 63 of the
Oklahoma Statutes. On and after July 1, 2008, seven and fifty-
hundredths percent (7.50%) shall be allocated as follows:
a. every month, an amount equal to the actual amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to this paragraph for the same
month of the 2008 fiscal year shall be credited to the
Trauma Care Assistance Revolving Fund,
b. every month, any amount over and above the amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to subparagraph a of this
paragraph shall be credited to the Oklahoma Emergency
Response Systems Stabilization and Improvement
Revolving Fund as created in Section 1-2512.1 of Title
63 of the Oklahoma Statutes until the combined amount
credited to the Oklahoma Emergency Response Systems
Stabilization and Improvement Revolving Fund pursuant
to this section and Section 302-5 of this title is
equal to Two Million Five Hundred Thousand Dollars
($2,500,000.00) each year, and
c. any additional revenue allocated pursuant to this
paragraph shall be placed to the credit of the Trauma
Care Assistance Revolving Fund;
4. Three and nine-hundredths percent (3.09%) shall be placed to
the credit of the Oklahoma State University College of Osteopathic
Medicine Revolving Fund created in Section 160.2 of Title 62 of the
Oklahoma Statutes;
5. Twenty-six and thirty-eight-hundredths percent (26.38%) shall
be placed to the credit of the Oklahoma Health Care Authority
Medicaid Program Fund created in Section 5020 of Title 63 of the
Oklahoma Statutes for the purposes of maintaining programs and
services funded under the federal "Jobs and Growth Tax Relief
Reconciliation Act of 2003", reimbursing city/county-owned hospitals,
increasing emergency room physician rates, and providing TEFRA 134,
also known as "Katie Beckett" services;
6. Two and sixty-five-hundredths percent (2.65%) shall be placed
to the credit of the Department of Mental Health and Substance Abuse
Services Revolving Fund created in Section 2-303 of Title 43A of the
Oklahoma Statutes;
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7. Forty-four-hundredths of one percent (0.44%) shall be placed
to the credit of the Belle Maxine Hilliard Breast and Cervical Cancer
Treatment Revolving Fund created in Section 1-559 of Title 63 of the
Oklahoma Statutes;
8. One percent (1%) shall be placed to the credit of the
Teachers' Retirement System Revolving Fund created in Section 158 of
Title 62 of the Oklahoma Statutes;
9. Two and seven-hundredths percent (2.07%) shall be placed to
the credit of the Education Reform Revolving Fund created in Section
34.89 of Title 62 of the Oklahoma Statutes;
10. Sixty-six-hundredths percent (0.66%) shall be placed to the
credit of the Tobacco Prevention and Cessation Revolving Fund created
in Section 1-105d of Title 63 of the Oklahoma Statutes;
11. Sixteen and eighty-three-hundredths percent (16.83%) shall
be placed to the credit of the General Revenue Fund; and
12. For fiscal years beginning July 1, 2004, and ending June 30,
2006, fourteen and twenty-three-hundredths percent (14.23%) shall be
apportioned to municipalities and counties that levy a sales tax, in
the proportions which total municipal and county sales tax revenue
was apportioned by the Tax Commission in the preceding month.
For fiscal years beginning July 1, 2006, and thereafter, the
apportionment percentage specified in paragraph 12 of this subsection
will be adjusted by dividing the total municipal and county sales tax
revenue collected in the calendar year immediately preceding the
commencement of the fiscal year by the sum of the state sales tax
revenue and total municipal and county sales tax revenue collected in
the same year. This ratio shall be divided by the ratio of the total
municipal and county sales tax revenue collected in the calendar year
beginning January 1, 2004, and ending December 31, 2004, divided by
the sum of the state sales tax revenue and total municipal and county
sales tax revenue collected in the same year. The resulting quotient
shall be multiplied by fourteen and twenty-three-hundredths percent
(14.23%) to determine the apportionment percentage for the fiscal
year.
For fiscal years beginning July 1, 2006, and thereafter, any
adjustment to the percentage of revenues apportioned to
municipalities and counties shall be reflected in the percent of
revenues apportioned to the General Revenue Fund.
C. The net amount of any revenue resulting from a payment in
lieu of excise taxes on little cigars, cigars, smoking tobacco and
chewing tobacco levied by this section, pursuant to a compact with a
federally recognized Indian tribe or nation after deductions for
deposits into trust accounts pursuant to such compacts, shall be
apportioned by the Tax Commission and transmitted to the State
Treasurer as follows:
1. Thirty-three and forty-nine-hundredths percent (33.49%) shall
be placed to the credit of the Health Employee and Economy
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Improvement Act Revolving Fund created in Section 1010.1 of Title 56
of the Oklahoma Statutes;
2. Four and sixty-nine-hundredths percent (4.69%) shall be
placed to the credit of the Comprehensive Cancer Center Debt Service
Revolving Fund created in Section 160.1 of Title 62 of the Oklahoma
Statutes;
3. Before July 1, 2008, eleven and thirty-nine-hundredths
percent (11.39%) shall be placed to the credit of the Trauma Care
Assistance Revolving Fund created in Section 1-2530.9 of Title 63 of
the Oklahoma Statutes. On and after July 1, 2008, eleven and thirty-
nine-hundredths percent (11.39%) shall be allocated as follows:
a. every month, an amount equal to the actual amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to this paragraph for the same
month of the 2008 fiscal year shall be credited to the
Trauma Care Assistance Revolving Fund,
b. every month, any amount over and above the amount
placed to the credit of the Trauma Care Assistance
Revolving Fund pursuant to subparagraph a of this
paragraph shall be credited to the Oklahoma Emergency
Response Systems Stabilization and Improvement
Revolving Fund as created in Section 1-2512.1 of Title
63 of the Oklahoma Statutes until the combined amount
credited to the Oklahoma Emergency Response Systems
Stabilization and Improvement Revolving Fund pursuant
to this section and Section 302-5 of this title is
equal to Two Million Five Hundred Thousand Dollars
($2,500,000.00) each year, and
c. any additional revenue allocated pursuant to this
paragraph shall be placed to the credit of the Trauma
Care Assistance Revolving Fund;
4. Four and sixty-nine-hundredths percent (4.69%) shall be
placed to the credit of the Oklahoma State University College of
Osteopathic Medicine Revolving Fund created in Section 160.2 of Title
62 of the Oklahoma Statutes;
5. Forty and six-hundredths percent (40.06%) shall be placed to
the credit of the Oklahoma Health Care Authority Medicaid Program
Fund created in Section 5020 of Title 63 of the Oklahoma Statutes for
the purposes of maintaining programs and services funded under the
federal "Jobs and Growth Tax Relief Reconciliation Act of 2003",
reimbursing city/county-owned hospitals, increasing emergency room
physician rates, and providing TEFRA 134, also known as "Katie
Beckett" services;
6. Four and one-hundredths percent (4.01%) shall be placed to
the credit of the Department of Mental Health and Substance Abuse
Services Revolving Fund created in Section 2-303 of Title 43A of the
Oklahoma Statutes;
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7. Sixty-seven-hundredths percent (0.67%) shall be placed to the
credit of the Belle Maxine Hilliard Breast and Cervical Cancer
Treatment Revolving Fund created in Section 1-559 of Title 63 of the
Oklahoma Statutes; and
8. One percent (1%) shall be placed to the credit of the Tobacco
Prevention and Cessation Revolving Fund created in Section 1-105d of
Title 63 of the Oklahoma Statutes.
D. It shall not be permissible for a retailer to advertise that
the retailer will absorb the tax due on the taxable merchandise
described herein. Such tax shall be paid by the consumer.
Added by Laws 2004, c. 322, § 10, eff. Dec. 1, 2004 (State Question
No. 713, Legislative Referendum No. 336, adopted at election held
Nov. 2, 2004). Amended by Laws 2008, c. 393, § 10, eff. Nov. 1,
2008; Laws 2018, 2nd Ex. Sess., c. 8, § 5.
§68-403. Payment by affixing stamps.
(a) The excise taxes levied by this article shall be paid by
affixing stamps in the manner and at the time herein set forth. In
the case of cigars, including five-pack and other small packs,
stogies and cheroots, the stamps shall be affixed to the box, or
container, in which or from which normally sold at wholesale.
Wholesalers and jobbers shall affix the required stamps within
seventy-two (72) hours after such tobacco products are received by
them. Any retailer shall have twenty-four (24) hours within which to
affix the stamps after such tobacco products are received by him, or
them. Provided that the Tax Commission may, in its discretion, where
it is practical and reasonable for the enforcement of the collection
of taxes provided hereunder, promulgate such rules and regulations as
to permit cigars, stogies, cheroots, and tobacco products, to remain
unstamped in the hands of the wholesalers and jobbers until the
original case or crate is broken, unpacked or sold.
(b) In the case of tobacco products wrapped in packages of two
(2) pounds or less, the stamps shall be affixed to the containers in
which or from which the individual packages are normally sold at
wholesale and the stamps shall be affixed by wholesalers and jobbers
within seventy-two (72) hours after such products are received by
them, and by any retailer within the twenty-four (24) hours of
receipt by him or them of any such products. Such goods must be
stamped before being sold. All retail dealers in manufactured
tobacco products, purchasing or receiving such commodities from
without the state, whether the same shall have been ordered through a
wholesaler or jobber in this state and/or by drop shipment and/or
otherwise, shall within five (5) days after receipt of same, mail a
duplicate invoice of all such purchases or receipts to the Tax
Commission. Failure to furnish duplicate invoices as required shall
be deemed a misdemeanor, and, upon conviction, be punishable by a
fine of not more than One Hundred Dollars ($100.00) for each offense,
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or imprisonment in the county jail for a period not exceeding thirty
(30) days.
(c) It is the intent and purpose of this section to require all
manufacturers within this state, wholesale dealers, jobbers,
distributors and retail dealers, to affix the stamps provided for in
this section to taxable commodities, but when the stamps have been
affixed as required herein, no further or other stamp shall be
required regardless of how often such articles may be sold or resold
within this state.
Laws 1965, c. 238, § 2.
§68-403.1. Procedures for collection of certain payments in lieu of
excise taxes and payment of excise taxes.
The Oklahoma Tax Commission is hereby authorized and empowered,
if in its discretion it deems practical and reasonable, to establish
procedures for payment of excise taxes levied in Section 401 et seq.
of this title, for the collection from a wholesaler of payments in
lieu of excise taxes authorized pursuant to a compact entered into by
the State of Oklahoma and a federally recognized Indian tribe or
nation pursuant to the provisions of subsection C of Section 346 of
this title, in respect to articles containing tobacco, pursuant to
monthly tobacco products tax reports in lieu of payment by purchasing
and affixing stamps, notwithstanding the provisions of Section 403 et
seq. of this title. Provided, exercise by the Tax Commission of the
authority granted herein shall be by adoption of rules and
regulations necessary to establish procedures for collection of such
tax through monthly reporting procedures consistent with the
provisions of Section 401 et seq. of this title, other than those
provisions relating directly to payment of such tax by purchasing and
affixing stamps.
In the event the Tax Commission shall determine to collect such
tax through monthly reporting procedures and adopt rules and
regulations therefor:
1. All provisions of Section 401 et seq. of this title relating
to unstamped tobacco products shall be interpreted to include and
shall be applicable to all tobacco products for which the tax
required by law has not been paid;
2. No person, dealer, distributing agent or wholesaler, as
defined in Section 401 of this title, shall possess, sell, use,
exchange, barter, give away or in any manner deal with any tobacco
products within this state upon which such tax is levied and unpaid,
unless such person, dealer, retailer, distributing agent or
wholesaler holds a valid tobacco license issued pursuant to Section
415 of this title; and
3. Any person required to report and remit such taxes or
payments in lieu of taxes required pursuant to a compact authorized
by subsection C of Section 346 of this title to the Tax Commission
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shall be allowed a discount of two percent (2%) of the tax due for
maintaining and collecting such tax or payments for the benefit of
the state, if such tax or payment is timely reported and remitted.
Added by Laws 1980, c. 207, § 3, emerg. eff. May 29, 1980. Amended
by Laws 1992, c. 339, § 18, eff. Jan. 1, 1993; Laws 2009, c. 434, §
15, eff. Jan. 1, 2010.
§68-403.2. Unlawful affixing of stamp – Prima facie evidence of
violation.
A. It shall be unlawful to affix a stamp to any package or
container of tobacco products or to sell, offer for sale, or import
into this state any package or container of tobacco products:
1. Which bears any label or notice prescribed by the United
States Department of Treasury to identify tobacco products intended
for export and exempt from tax by the United States pursuant to
Section 5704(b) of Title 26 of the United States Code or any notice
or label described in Section 290.185 of Title 27 of the United
States Code of Federal Regulations;
2. Which is not labeled in conformity with the provisions of the
Federal Cigarette Labeling and Advertising Act, or any other federal
requirement for the placement of labels, warnings or other
information applicable to packages or containers of tobacco products
intended for domestic consumption;
3. Upon which all federal taxes due have not been paid or which
is not in compliance with all federal trademark and copyright laws;
or
4. The packaging of which has been modified or altered by a
person other than the manufacturer or person specifically authorized
by the manufacturer, including, but not limited to, the placement of
a sticker or label to cover information on the package or container.
Possession of more than thirty (30) ounces of tobacco products in
packages or containers bearing Oklahoma stamps in violation of this
subsection by a person other than an employee of this state or the
federal government performing official duties relating to enforcement
of the provisions of Section 401 et seq. of this title shall
constitute prima facie evidence of a violation of the provisions of
this subsection.
B. Except as otherwise provided by law, the Attorney General
shall enforce the provisions of this section.
Added by Laws 1999, c. 162, § 4.
NOTE: Editorially renumbered from § 403.1 of this title to avoid
duplication in numbering.
NOTE: Section 8 of Laws 1999, c. 162 provides: “This act shall
become effective thirty (30) days after approval of this act by the
Governor.” Laws 1999, c. 162 was approved by the Governor on May 17,
1999.
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§68-404. Transactions subject to taxation - Revenue purpose -
Disposition of revenue.
The sale, barter or exchange of tobacco products or possession
of tobacco products for consumption, is hereby declared to be subject
to taxation authorized by Section 12 of Article X of the Oklahoma
Constitution, and it is the purpose and intention of this article to
provide revenue for the expense of the state government. The revenue,
including interest and penalties, collected under this article shall
be paid monthly by the Tax Commission to the State Treasurer to be
placed in the General Revenue Fund, to be paid out pursuant to direct
appropriation by the Legislature.
Amended by Laws 1987, c. 5, § 141, operative March 31, 1987.
§68-405. Repealed by Laws 1994, c. 278, § 38, eff. Sept. 1, 1994.
§68-406. Wholesalers and jobbers supplying and charging retailers
with stamps.
It shall be the duty of a wholesaler or jobber to supply and
charge to the retailer the necessary stamps to cover any and all drop
shipments of tobacco products and cigars billed to the retailer or
consumer by the wholesaler or jobber, and the wholesaler or jobber
shall be liable to the Tax Commission, under his bond, to perform
such service. No wholesaler or jobber shall be permitted to sell or
transfer stamps to any retailer or consumer other than to customers
who purchased drop shipments directly through him.
Laws 1965, c. 238, § 2.
§68-407. Regulations - Punishment for prohibited practices or
hindering inspection.
It shall be provided by regulations of the Tax Commission the
methods of breaking packages, forms and kinds of containers, and
methods of affixing stamps, that shall be employed by persons subject
to the tax levied by this Article which will make possible the
enforcement of payment by inspection; and any such person engaging in
or permitting such practices as are prohibited by this article, or in
any other practice which makes it difficult to enforce the provisions
of this article by inspection, and any person or agent thereof who
shall upon demand of any officer or agent of the Tax Commission
refuse to allow full inspection of the premises or any part thereof,
or who shall hinder or in anywise delay or prevent such inspection
when demand is made therefor, shall be guilty of a misdemeanor and
shall, upon conviction, be fined not more than Two Hundred Dollars
($200.00) for each offense, or imprisonment in the county jail for a
period not exceeding sixty (60) days or both.
Laws 1965, c. 238, § 2.
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§68-408. Purchase and sale of stamps - Design, etc. - Bond from
manufacturer of stamps - Matters to appear on stamps.
(a) The Tax Commission shall purchase stamps in the proper
denominations necessary to carry out the provisions of this article,
and shall sell the same only to licensed manufacturers, wholesalers,
warehousemen and/or jobbers doing business within the state of
Oklahoma upon demand and payment therefor. All orders for stamps
must be accompanied by cash, cashier's check or money order, made
payable to the Oklahoma Tax Commission; and the Commission shall be
responsible for the custody and sale of such stamps, and for the
disposition of the proceeds of such sales as hereinafter provided.
Such stamps shall be of such design, character, color combination,
color changes, sizes and material as the Tax Commission may, by its
rules and regulations determine to afford the best security to the
state. The Commission may, by its rules and regulations, require of
the manufacturer from whom it purchases such stamps a bond in an
amount to be determined by the Commission, containing such conditions
as the Commission may deem necessary in order to protect the state
against loss.
(b) The stamp, when placed on cigars and tobacco products by the
wholesaler, manufacturer, warehouseman, jobber, retailer and/or
consumer, shall state the amount of the tax, the payment of which is
evidenced thereby, and shall contain the words "Oklahoma Stamp Tax".
Laws 1965, c. 238, § 2.
§68-409. Offenses respecting stamps.
Whoever willfully removes or otherwise prepares any adhesive
stamps, with intent to use, or cause the same to be used, after it
has already been used; or knowingly or willfully buys, sells, offers
for sale, or gives away, any such washed or restored stamp to any
person, or knowingly uses the same, or has in his possession any
washed, restored or altered stamp which has been removed from the
articles to which it had been previously affixed, or whoever, for the
purpose of indicating the payment of any tax hereunder, reuses any
stamp which has heretofore been used for the purpose of paying any
tax provided in this article, or whoever buys, sells, offers for
sale, or has in his or its possession, any counterfeit stamps, shall
be guilty of a felony and, upon conviction, shall be punished by a
fine of not more than One Thousand Dollars ($1,000.00), or by
imprisonment for not more than five (5) years, or both.
Laws 1965, c. 238, § 2.
§68-410. Administration and enforcement of Article.
The Tax Commission shall administer and enforce all provisions of
this article. It shall have the power to enter upon the premises of
any taxpayer and to examine, or cause to be examined by an agent or
representative designated by it for such purpose, any books,
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invoices, papers, records or memoranda bearing upon the amount of
taxes payable, and to secure other information directly concerned in
the enforcement of this article.
Laws 1965, c. 238, § 2.
§68-411. Temporary, transient or itinerant business.
In case of any person engaging in a temporary, transient, or
itinerant business, which is taxable under the provisions of this
article, the entire tax shall be paid upon demand by the Tax
Commission, or any authorized agent thereof, and in case the tax is
not paid upon demand, all penalties provided for by this article
shall immediately apply.
Laws 1965, c. 238, § 2.
§68-412. Unstamped merchandise - Surety or bond - Tax.
(a) Every wholesaler, jobber, retailer or consumer who purchases
or allows to come into his or her possession any unstamped
merchandise coming under the scope of this article shall file with
the Oklahoma Tax Commission a surety or collateral or cash bond in
the amount of Twenty-five Thousand Dollars ($25,000.00), payable to
the State of Oklahoma and conditioned upon compliance with the
provisions of this article and the rules of the Tax Commission.
(b) Any consumer who purchases or brings into this state
unstamped cigars or tobacco products whereon the tax would be more
than twenty-five cents ($0.25) is subject to the tax thereon. Upon
failure to pay the tax levied in this article, the consumer shall be
subject to a fine of not more than Five Hundred Dollars ($500.00) or
not less than Twenty-five Dollars ($25.00). Provided, any person in
possession of more than one thousand small or large cigars or two
hundred sixteen (216) ounces of chewing or smoking tobacco products
in packages or containers for which the tax required by law has not
been paid shall be punished by administrative fines in the manner and
amounts provided in subsection D of Section 418 of this title.
Added by Laws 1965, c. 238, § 2, eff. July 1, 1965. Amended by Laws
2006, c. 272, § 9, eff. Nov. 1, 2006; Laws 2013, c. 334, § 1, eff.
July 1, 2013.
§68-413. Carriers - Transportation of tobacco products and cigars -
Sales - Statement of consignment - Examination of records - Monthly
reports.
A. The right of a carrier in this state to carry unstamped
cigars and tobacco products shall not be affected hereby; provided,
that carriers delivering untaxed tobacco products to any person in
this state for the purpose of selling or consuming untaxed tobacco
products in this state in violation of this article shall be subject
to seizure of the shipments and forfeiture of the inventory pursuant
to the provisions of Section 417 of this title. Provided further,
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that should any such carrier sell any cigars and tobacco products in
this state, such sale shall be subject to the stamp tax and other
provisions of this article and to the rules of the Tax Commission.
The carrier transporting tobacco products and cigars to a point
within this state, or a bonded warehouseman or bailee having in its
possession tobacco products and cigars, shall transmit to the Tax
Commission a statement of such consignment of tobacco products and
cigars, showing the date, point of origin, point of delivery, and to
whom delivered. All carriers or bailees or warehousemen shall permit
an examination by the Tax Commission, or its agents or legally
authorized representatives, of their records relating to the shipment
or receipt of tobacco products and cigars. Any person who fails or
refuses to transmit to the Tax Commission the aforesaid statement, or
who refuses to permit the examination of his or her records by the
Tax Commission or its legally authorized agents or representatives,
shall be guilty of a misdemeanor and shall be subject to a fine of
not to exceed Five Hundred Dollars ($500.00) and not less than
Twenty-five Dollars ($25.00).
B. Wholesalers shall make a monthly report to the Tax
Commission. Such report must be received in the office of the Tax
Commission not later than the twentieth day of each month, showing
purchases and invoices of all merchandise coming under this article,
for the previous month; and the report shall also show the invoice
number, the name and address of the consignee and consignor, the
date, and such other information as may be requested by the Tax
Commission. Retailers or consumers purchasing tobacco products and
cigars in drop shipments shall be required to make monthly reports to
the Tax Commission, as are required of wholesalers.
Added by Laws 1965, c. 238, § 2, eff. July 1, 1965. Amended by Laws
1992, c. 339, § 19, eff. Jan. 1, 1993; Laws 2009, c. 434, § 16, eff.
Jan. 1, 2010; Laws 2012, c. 357, § 7, eff. July 1, 2012.
§68-414. Trucks and vehicles - Unstamped merchandise.
(a) Each truck or vehicle wherefrom cigars or tobacco products
are sold shall be considered as a place of business and required to
have a wholesale license and a bond of not less than Five Hundred
Dollars ($500.00).
(b) Any person operating a truck or vehicle by selling,
exchanging, or giving away unstamped merchandise covered by this
article shall be deemed guilty of violation of same and shall be
penalized as hereinbefore set forth, and unstamped merchandise
handled by him shall be subject to confiscation by authorized agents
of the Tax Commission or duly authorized peace officers.
(c) After seizure or confiscation by such agent or officer, the
merchandise and property shall be held until all taxes, interest and
penalties due have been paid. If not paid within five (5) days after
date of seizure, it shall be sold at public sale by the sheriff of
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the county where confiscated, after being advertised by posting of
notice of such sale in five public places in the county where the
sale is to occur. The proceeds of the sale shall be applied to
taxes, interest and penalties due and to the cost of the sale, and
the remainder, if any, shall be paid to the State Treasurer, by the
sheriff conducting such sale, to be deposited to the credit of the
General Revenue Fund.
Laws 1965, c. 238, § 2.
§68-415. License of purchasers of unstamped products.
A. Every dealer and wholesaler of tobacco products in this
state, as a condition of carrying on such business, shall annually
secure from the Oklahoma Tax Commission a written license and shall
pay an annual fee of Two Hundred Fifty Dollars ($250.00); provided,
such fee shall not be applicable if paid pursuant to Section 304 of
this title. The Tax Commission shall promulgate rules which provide
a procedure for the issuance of a joint license for any wholesaler
making application pursuant to this section and Section 304 of this
title. Application for such license, which shall be made upon such
forms as prescribed by the Tax Commission, shall include the
following:
1. The applicant’s agreement to the jurisdiction of the Tax
Commission and the courts of this state for purposes of enforcement
of the provisions of Section 301 et seq. of this title; and
2. The applicant's agreement to abide by the provisions of
Section 301 et seq. of this title and the rules promulgated by the
Tax Commission with reference thereto. This license, which will be
for the ensuing year, must at all times be displayed in a conspicuous
place so that it can be seen. Persons operating more than one place
of business must secure a license for each place of business. "Place
of business" shall be construed to include the place where orders are
received, or where tobacco products are sold. If tobacco products
are sold on or from any vehicle, the vehicle shall constitute a place
of business, and the license fee of Two Hundred Fifty Dollars
($250.00) shall be paid with respect thereto. However, if the
vehicle is owned or operated by a place of business for which the
regular license fee is paid, the annual fee for the license with
respect to such vehicle shall be only Ten Dollars ($10.00). The
expiration for such vehicle license shall expire on the same date as
the current license of the place of business.
B. Every retailer in this state, as a condition of carrying on
such business, shall secure from the Tax Commission a license and
shall pay therefor a fee of Thirty Dollars ($30.00). Application for
such license, which shall be made upon such forms as prescribed by
the Tax Commission, shall include the following:
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1. The applicant’s agreement to the jurisdiction of the Tax
Commission and the courts of this state for purposes of enforcement
of the provisions of Section 301 et seq. of this title; and
2. The applicant's agreement to abide by the provisions of
Section 301 et seq. of this title and the rules promulgated by the
Tax Commission with reference thereto;
3. The applicant's agreement that it shall not purchase any
tobacco products for resale from a supplier that does not hold a
current wholesaler’s license issued pursuant to this section; and
4. The applicant's agreement to sell tobacco products only to
consumers.
Such license, which will be for the ensuing three (3) years, must
at all times be displayed in a conspicuous place so that it can be
seen. Upon expiration of such license, the retailer to whom such
license was issued may obtain a renewal license which shall be valid
for three (3) years or until expiration of the retailer's sales tax
permit, whichever is earlier, after which a renewal license shall be
valid for three (3) years. The manner and prorated fee for renewals
shall be prescribed by the Tax Commission. Every person operating
under such license as a retailer and who owns or operates more than
one place of business must secure a license for each place of
business. "Place of business" shall be construed to include places
where orders are received or where tobacco products are sold.
C. Nothing in this section shall be construed to prohibit any
person holding a retail license from also holding a wholesaler
license.
D. Every distributing agent shall, as a condition of carrying on
such business, pursuant to written application on a form prescribed
by and in such detailed form as the Tax Commission may require,
annually secure from the Tax Commission a license, and shall pay
therefor an annual fee of One Hundred Dollars ($100.00). An
application shall be filed and a license obtained for each place of
business owned or operated by a distributing agent. The license,
which will be for the ensuing year, shall be consecutively numbered,
nonassignable and nontransferable, and shall authorize the storing
and distribution of unstamped tobacco products within this state when
such distribution is made upon interstate orders only.
E. 1. All wholesale, retail, and distributing agents’ licenses
shall be nonassignable and nontransferable from one person to another
person. Such licenses may be transferred from one location to
another location after an application has been filed with the Tax
Commission requesting such transfer and after the approval of the Tax
Commission.
2. Wholesale, retail, and distributing agent's licenses shall be
applied for on a form prescribed by the Tax Commission. Any person
operating as a wholesaler, retailer, or distributing agent must at
all times have an effective unexpired license which has been issued
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by the Tax Commission. If any such person or licensee continues to
operate as such on a license issued by the Tax Commission which has
expired, or operates without ever having obtained from the Tax
Commission such license, such person or licensee shall, after
becoming delinquent for a period in excess of fifteen (15) days, pay
to the Tax Commission, in addition to the annual license fee, a
penalty of twenty-five cents ($0.25) per day on each delinquent
license for each day so operated in excess of fifteen (15) days. The
penalty provided for herein shall not exceed the annual license fee
for such license.
F. No license may be granted, maintained or renewed if any of
the following conditions apply to the applicant. For purposes of
this section, "applicant" includes any combination of persons owning
directly or indirectly, in the aggregate, more than ten percent (10%)
of the ownership interests in the applicant:
1. The applicant owes Five Hundred Dollars ($500.00) or more in
delinquent tobacco products taxes;
2. The applicant had a dealer, wholesaler, or retailer license
revoked by the Tax Commission within the past two (2) years; or
3. The applicant has been convicted of a crime relating to
stolen or counterfeit tobacco products, or receiving stolen or
counterfeit tobacco products.
G. No person or entity licensed pursuant to the provisions of
this section shall purchase tobacco products from or sell tobacco
products to a person or entity required to obtain a license unless
such person or entity has obtained such license.
H. In addition to any civil or criminal penalty provided by law,
upon a finding that a licensee has violated any provision of Section
301 et seq. of this title, the Tax Commission may revoke or suspend
the license or licenses of the licensee pursuant to the procedures
applicable to revocation of a license set forth in Section 418 of
this title.
Added by Laws 1965, c. 238, § 2, eff. July 1, 1965. Amended by Laws
2009, c. 434, § 17, eff. Jan. 1, 2010; Laws 2010, c. 412, § 22, eff.
July 1, 2010.
§68-417. Unstamped or unlawfully stamped tobacco products - Seizure.
A. All unstamped tobacco products upon which a tax is levied by
Section 401 et seq. of this title and all tobacco products stamped,
sold, offered for sale, or imported into this state in violation of
the provisions of Section 403.2 of this title, found in the
possession, custody or control of any person for the purpose of being
consumed, sold or transported from one place to another in this
state, for the purpose of evading or violating the provisions of
Section 401 et seq. of this title, or with intent to avoid payment of
the tax imposed thereunder, may be seized by any authorized agent of
the Oklahoma Tax Commission or any sheriff, deputy sheriff or police
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within the state. Tobacco products from the time of seizure shall be
forfeited to the State of Oklahoma. A proper proceeding shall be
filed to maintain such seizure and prosecute the forfeiture as herein
provided; the provisions of this section shall not apply, however,
where the tax on such unstamped tobacco products does not exceed One
Dollar ($1.00).
B. All such tobacco products so seized shall first be listed and
appraised by the officer making such seizure and turned over to the
Tax Commission and a receipt taken therefor.
C. The person making such seizure shall immediately make and
file a written report thereof to the Tax Commission, showing the name
of the person making such seizure, the place where seized, the person
from whom seized, the property seized and an inventory and
appraisement thereof, which inventory shall be based on the usual and
ordinary retail price or value of the articles seized, and the
Attorney General, in the case of tobacco products stamped, sold,
offered for sale, or imported into this state in violation of the
provisions of Section 403.2 of this title. Within sixty (60) days of
seizure, the person from whom the property was seized may file a
request for hearing with the Tax Commission or the Attorney General
to show why the seized property should not be forfeited and
destroyed. If a hearing is requested, the owner of the tobacco
products shall be given at least ten (10) days' notice of the
hearing. If no request for hearing is filed within the time
provided, the property seized will be forfeited and destroyed.
D. The seizure of such tobacco products shall not relieve the
person from whom such tobacco products were seized from prosecution
or the payment of penalties.
E. The forfeiture provisions of Section 401 et seq. of this
title shall only apply to persons having possession of or
transporting tobacco products with intent to barter, sell or give
away the same.
Added by Laws 1965, c. 238, § 2. Amended by Laws 1999, c. 162, § 5,
eff. June 17, 1999; Laws 2008, c. 378, § 10, emerg. eff. June 4,
2008; Laws 2018, c. 66, § 6, eff. July 1, 2018.
§68-418. Transportation or possession of unstamped tobacco products
- Penalties - Unlawful affixing of stamp - Administrative fines -
Revocation of license.
A. It shall be unlawful for any person to transport or possess
unstamped tobacco products where the tax on such unstamped tobacco
products exceeds the sum of One Dollar ($1.00).
B. Except as otherwise provided in subsections C and D of this
section, any person found guilty of violating the provisions of
Section 401 et seq. of this title shall be punished by an
administrative fine of not more than Five Hundred Dollars ($500.00).
Provided, any person in possession of more than one thousand small or
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large cigars or two hundred sixteen (216) ounces of chewing or
smoking tobacco products in packages or containers for which the tax
required by law has not been paid shall be punished by administrative
fines in the manner and amounts provided in subsection D of this
section.
C. Any retailer violating the provisions of Section 403.2 of
this title shall:
1. For a first offense, be punished by an administrative fine of
not more than One Thousand Dollars ($1,000.00);
2. For a second offense, punished by an administrative fine of
not more than Five Thousand Dollars ($5,000.00); and
3. For a third or subsequent offense, be punished by an
administrative fine of not more than Ten Thousand Dollars
($10,000.00).
D. Any wholesaler, distributing agent or dealer violating the
provisions of Section 403.2 of this title shall:
1. For a first offense, be punished by an administrative fine of
not more than Five Thousand Dollars ($5,000.00); and
2. For a second or subsequent offense, be punished by an
administrative fine of not more than Twenty Thousand Dollars
($20,000.00).
Administrative fines collected pursuant to the provisions of this
subsection shall be deposited to the revolving fund created in
Section 305.2 of this title.
E. The Oklahoma Tax Commission shall immediately revoke the
license of a person punished for a violation pursuant to the
provisions of paragraph 3 of subsection C of this section or a person
punished for a violation pursuant to the provisions of subsection D
of this section. A person whose license is so revoked shall not be
eligible to receive another license pursuant to the provisions of
Section 301 et seq. of this title for a period of ten (10) years.
Added by Laws 1965, c. 238, § 2, eff. July 1, 1965. Amended by Laws
1999, c. 162, § 6, eff. June 17, 1999; Laws 2009, c. 434, § 18, eff.
Jan. 1, 2010; Laws 2013, c. 334, § 2, eff. July 1, 2013.
§68-419. Exempt sales.
The following sales are hereby exempted from the tobacco products
tax levied pursuant to the provisions of Section 401 et seq. of this
title:
1. All tobacco products sold to veterans hospitals and state-
operated domiciliary homes for veterans located in the State of
Oklahoma, for sale or distribution to disabled ex-servicemen or
disabled ex-servicewomen interned in or inmates of such hospitals, or
residents of such homes;
2. All sales to a federally recognized Indian tribe or nation
which has entered into a compact with the State of Oklahoma pursuant
to the provisions of subsection C of Section 1 of this act or to a
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licensee of such a tribe or nation, upon which the payment in lieu of
taxes required by the compact has been paid; and
3. All sales to a federally recognized Indian tribe or nation or
to a licensee of such a tribe or nation upon which the tax levied
pursuant to the provisions of Section 10 of this act has been paid.
Laws 1965, c. 238, § 2, eff. July 1, 1965; Laws 1992, c. 339, § 20,
eff. Jan. 1, 1993.
§68-420. Rules and regulations.
The Oklahoma Tax Commission shall prescribe such rules and make
such regulations as to the sale of such tobacco products and the
exemption from the tobacco products tax thereon, as shall be deemed
necessary to comply with the provisions of the preceding section.
Laws 1965, c. 238, § 2.
§68-420.1. Maintenance of copies of invoices or equivalent
documentation.
A. Each distributor of tobacco products, as defined in Section
401 of Title 68 of the Oklahoma Statutes, shall maintain copies of
invoices or equivalent documentation for each of its facilities for
every transaction in which the distributor is the seller, purchaser,
consignor, consignee, or recipient of tobacco products. The invoices
or documentation shall contain the distributor’s tobacco license
number and the quantity by brand style of the tobacco products
involved in the transaction.
B. Each retailer of tobacco products, as defined in Section 401
of Title 68 of the Oklahoma Statutes, shall maintain copies of
invoices or equivalent documentation for every transaction in which
the retailer receives or purchases tobacco products at each of its
facilities. The invoices or documentation shall show the name and
address of the distributor from whom, or the address of another
facility of the same retailer from which, the tobacco products were
received, the quantity of each brand style received in such
transaction and the retail cigarette license number or sales tax
license number.
Added by Laws 2005, c. 479, § 8, eff. July 1, 2005.
§68-421. Restriction on exempt sales - Possession by others.
The sale of such tobacco products under the two preceding
sections shall be restricted to sales or distribution to inmates of
such veterans hospitals, or residents of such state operated
domiciliary homes for veterans, as shown by the records thereof, for
their own personal use and consumption. Possession of tobacco
products taxed under this article, which have been purchased or
received from any such veterans hospital or any such home by any
person other than an inmate or resident thereof, shall be deemed a
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misdemeanor and punishable by a fine of Two Hundred Dollars ($200.00)
for each offense.
Laws 1965, c. 238, § 2.
§68-422. Sellers.
All manufacturers, wholesalers, jobbers, retailers, or other
person, selling or distributing such tobacco products under the three
preceding sections shall comply with the provisions of such sections,
and the rules and regulations of the Oklahoma Tax Commission as to
such sale or distribution, and failure to so comply shall constitute
grounds for revocation of any license issued to said manufacturer,
wholesaler, jobber, retailer or other person, by the Tax Commission.
Laws 1965, c. 238, § 2.
§68-423. Intention of Legislature.
It is hereby declared to be the intention of the Legislature that
this act be construed as being an amendment and revision of the
present tobacco tax law and that the repeal and reenactment of said
law herein for such purpose shall not affect any license issued or
any tax liability accrued under such prior law.
Laws 1965, c. 238, § 2.
§68-424. Application of §§ 425 to 428 of this title.
The provisions of Sections 9 through 12 of this act shall not
apply to a federally recognized Indian tribe or nation which has
entered into a compact with the State of Oklahoma pursuant to the
provisions of subsection C of Section 1 of this act or to a licensee
of such a tribe or nation during the period that such compact is
effective.
Added by Laws 1992, c. 339, § 8, eff. Jan. 1, 1993.
§68-425. Definitions.
As used in Sections 425 through 429 of this title:
1. "Tribally owned or licensed store" means a store or place of
business which is owned and operated by a federally recognized Indian
tribe or nation, other than a federally recognized Indian tribe or
nation which has entered into a compact with the State of Oklahoma
pursuant to the provisions of subsection C of Section 346 of this
title during the period that such compact is effective, on Indian
country within the territorial jurisdiction of that tribe or nation
or which is duly licensed by such tribe or nation pursuant to tribal
laws or ordinances to conduct business located on Indian country
within the territorial jurisdiction of that tribe or nation;
2. "Federally recognized Indian tribe or nation" means an Indian
tribal entity which is recognized by the United States Bureau of
Indian Affairs as having a special relationship with the United
States;
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3. "Indian country" means:
a. land held in trust by the United States of America for
the benefit of a federally recognized Indian tribe or
nation,
b. all land within the limits of any Indian reservation
under the jurisdiction of the United States Government,
notwithstanding the issuance of any patent, and
including rights-of-way running through the
reservation,
c. all dependent Indian communities within the borders of
the United States whether within the original or
subsequently acquired territory thereof, and whether
within or without the limits of a state, and
d. all Indian allotments, the Indian titles to which have
not been extinguished, including individual allotments
held in trust by the United States or allotments owned
in fee by individual Indians subject to federal law
restrictions regarding disposition of said allotments
and including rights-of-way running through the same;
4. "Member of the tribe" or "tribal member" means a person who
is duly enrolled within the membership of the federally recognized
Indian tribe or nation which owns or licenses the store;
5. "Nonmember of the tribe or nation" or "nontribal member"
means, with respect to a particular Indian tribe or nation, any
person who is not a duly enrolled member of that tribe or nation, and
shall include any person who is a member of another Indian tribe or
nation but not a member of that tribe or nation;
6. "Untaxed tobacco products" means packages of tobacco products
upon which taxes required by state law have not been paid and
includes tobacco products upon which the incorrect rate of tax
applicable to the retail establishment at which the tobacco product
is sold has been paid, regardless of the identity of the
establishment which the tobacco product has been sold, shipped,
consigned or delivered;
7. "Contraband tobacco products" means untaxed tobacco products
for which taxes are required to be paid pursuant to the provisions of
Sections 425 through 428 of this title or Section 401 et seq. of this
title and which are in the possession, custody or control of any
person, for the purpose of being consumed, sold, offered for sale or
consumption or transported to any person in this state other than a
wholesaler licensed under Section 415 of this title; provided,
contraband tobacco products shall not include untaxed tobacco
products sold to veterans' hospitals, to state-operated domiciliary
homes for veterans or to the United States for sale or distribution
by said entities in accordance with Sections 419 through 421 of this
title;
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8. "Taxed tobacco products" means packages of tobacco products
upon which taxes required by law have been paid;
9. "Commission" means the Oklahoma Tax Commission; and
10. "Person" shall include any individual, company, partnership,
joint venture, joint agreement, association (mutual or otherwise),
corporation, trust, estate, business trust receiver or trustee
appointed by any state or federal court, syndicates or any
combination acting as a unit, in the plural or singular number.
Added by Laws 1992, c. 339, § 9, eff. Jan. 1, 1993. Amended by Laws
2009, c. 434, § 19, eff. Jan. 1, 2010.
§68-426. Shipping, transporting, receiving, possessing, selling,
distributing or purchasing contraband tobacco products.
A. It shall be unlawful for any person knowingly to ship,
transport, receive, possess, sell, distribute or purchase contraband
tobacco products. Any person who engages in shipping, transporting,
receiving, possessing, selling, distributing or purchasing contraband
tobacco products shall, upon conviction, be guilty of a misdemeanor
punishable by a fine of not more than One Thousand Dollars
($1,000.00). Any person convicted of a second or subsequent
violation hereof shall be guilty of a felony and shall be punishable
by a fine of not more than Five Thousand Dollars ($5,000.00), by a
term of imprisonment in the State Penitentiary for not more than two
(2) years, or by both such fine and imprisonment.
B. Any person who knowingly engages in shipping, transporting,
receiving, possessing, selling, distributing or purchasing contraband
tobacco products shall be subject to the forfeiture of property as is
provided by Section 417 of this title and assessment of penalty as
provided thereby and assessment for any delinquent taxes found to be
owing.
Added by Laws 1992, c. 339, § 10, eff. Jan. 1, 1993. Amended by Laws
1997, c. 133, § 558, eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c.
5, § 407, eff. July 1, 1999; Laws 2009, c. 434, § 20, eff. Jan. 1,
2010.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 558 from July 1, 1998, to July 1, 1999.
§68-427. Persons who may sell tobacco products to tribally owned or
licensed stores - Collecting, reporting and remitting tax.
Every wholesaler doing business within this state and required to
secure a license as provided in Section 415 of this title may sell
tobacco products to tribally owned or licensed stores in this state.
It shall be the duty of the wholesaler to collect, report and remit
the tax imposed by Section 349.1 of this title on the tobacco
products inventory which are tax-free pursuant to Section 349.1 of
this title sold to a tribally owned or licensed store.
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Added by Laws 1992, c. 339, § 11, eff. Jan. 1, 1993. Amended by Laws
2009, c. 434, § 21, eff. Jan. 1, 2010.
§68-427.1. Repealed by Laws 2009, c. 434, § 23, eff. Jan. 1, 2010.
§68-427.2. Repealed by Laws 2009, c. 434, § 23, eff. Jan. 1, 2010.
§68-428. Seizure and forfeiture of untaxed tobacco products -
Authority of peace officers - Cooperation with Tax Commission.
A. All untaxed tobacco products sold or shipped to tribally
owned or licensed stores in this state by wholesalers not licensed by
this state pursuant to the provisions of Section 415 of this title
for the purpose of selling or consuming untaxed tobacco products in
this state in violation of Section 349 or 401 et seq. of this title
shall be subject to seizure of the shipments and forfeiture of the
inventory pursuant to the provisions of Section 417 of this title.
B. Any peace officer of this state, including, but not limited
to, officers of the Department of Public Safety or the Oklahoma State
Bureau of Investigation, any sheriff, any salaried deputy sheriff or
any municipal police officer is authorized to stop any vehicle upon
any road or highway of this state in order to inspect the bill of
lading or to take such action as may be necessary to determine if
untaxed tobacco products are being sold or shipped in violation of
the provisions of this section. Such officers shall also have the
duty to cooperate with the Oklahoma Tax Commission to enforce the
provisions of this act.
Added by Laws 1992, c. 339, § 12, eff. Jan. 1, 1993. Amended by Laws
2009, c. 434, § 22, eff. Jan. 1, 2010.
§68-429. Disposition of revenues.
A. Any revenue from a payment in lieu of excise taxes on tobacco
products pursuant to a compact entered into by the State of Oklahoma
and a federally recognized Indian tribe or nation pursuant to the
provisions of subsection C of Section 1 of this act shall be
deposited to the General Revenue Fund.
B. Any revenue from payment of the tax imposed by Section 10 of
this act shall be deposited to the General Revenue Fund.
Added by Laws 1992, c. 339, § 13, eff. Jan. 1, 1993.
§68-450.1. Definitions.
As used in Sections 1 through 9 of this act:
1. "Controlled dangerous substance" means a drug, substance, or
immediate precursor specified in Schedules I through V of the Uniform
Controlled Dangerous Substances Act which is held, possessed,
transported, transferred, sold or offered to be sold in violation of
the laws of this state;
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2. "Dealer" means a person who in violation of the Uniform
Controlled Dangerous Substances Act manufactures, distributes,
produces, ships, transports, or imports into Oklahoma or in any
manner acquires or possesses more than forty-two and one-half (42
1/2) grams of marihuana, or seven or more grams of any controlled
dangerous substance other than marihuana, or ten or more dosage units
of any controlled dangerous substance other than marihuana which is
not sold by weight. A quantity of a controlled dangerous substance
is measured by the weight of the substance whether pure, impure or
dilute, or by dosage units when the controlled dangerous substance is
not sold by weight, in the possession of the dealer. A quantity of a
controlled dangerous substance is dilute if it consists of a
detectable quantity of pure controlled dangerous substance and any
excipients or fillers; and
3. "Commission" means the Oklahoma Tax Commission.
Added by Laws 1990, c. 25, § 1, operative July 1, 1990.
§68-450.2. Levy of tax - Calculation.
There shall be levied, assessed, collected, and paid in respect
to controlled dangerous substances, a tax in the following amounts:
1. On each gram of marihuana, or each portion of a gram, Three
Dollars and fifty cents ($3.50); and
2. On each gram or portion of a gram of a controlled dangerous
substance, other than marihuana, Two Hundred Dollars ($200.00); or
3. On each fifty (50) dosage units or portion thereof, of a
controlled dangerous substance, that is not sold by weight, other
than marihuana, One Thousand Dollars ($1,000.00).
For the purpose of calculating the tax pursuant to this section,
a quantity of marihuana or other controlled dangerous substance is
measured by the weight of the substance whether pure, impure or
dilute, or by dosage units when the substance is not sold by weight,
in the possession of the dealer. A quantity of a controlled
dangerous substance is dilute if it consists of a detectable quantity
of pure controlled dangerous substance and any excipients or fillers.
Added by Laws 1990, c. 25, § 2, operative July 1, 1990.
§68-450.3. Manner of payment of tax - Intent and purpose of act.
A. The tax levied by Section 2 of this act shall be paid by
affixing stamps in the manner and at the time herein set forth.
When a dealer purchases, acquires, transports, or imports into
this state a controlled dangerous substance on which a tax is levied
by Section 2 of this act, the dealer shall have the stamp affixed on
the controlled dangerous substance immediately after receiving the
controlled dangerous substance. Each stamp may be used only once.
Taxes imposed upon controlled dangerous substances by Section 2
of this act are due and payable immediately upon acquisition or
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possession of a controlled dangerous substance in this state by a
dealer.
B. It is the intent and purpose of this act that no dealer shall
possess any controlled dangerous substance upon which a tax is
imposed by Section 2 of this act unless the tax has been paid on the
controlled dangerous substance as evidenced by a stamp issued by the
Commission.
Added by Laws 1990, c. 25, § 3, operative July 1, 1990.
§68-450.4. Rules and regulations - Purchase of stamps - Reporting
forms - Use of stamps in administrative, civil and criminal
proceedings.
A. The Commission shall promulgate rules and regulations for a
uniform system of providing, affixing, and displaying official stamps
for any controlled dangerous substance on which the tax levied in
Section 2 of this act is imposed.
B. The official stamps to be affixed to all controlled dangerous
substances shall be purchased from the Commission. The dealer
purchasing said stamps shall pay in cash one hundred percent (100%)
of face value for each stamp at the time of purchase. The Commission
shall make the stamps in denominations of Ten Dollars ($10.00).
C. The Commission shall provide reporting forms for the
reporting and payment of the taxes levied by Section 2 of this act.
Dealers are not required to give their name, address, social security
number, or other identifying information on the forms. Neither the
Commission nor any public employee may reveal facts contained in a
report required by this section, nor can any information contained in
such a report be used against the dealer in any criminal proceeding,
unless independently obtained, except in connection with a proceeding
involving taxes due pursuant to this act from the dealer making the
report.
D. A stamp denoting payment of the tax levied by Section 2 of
this act shall not be used against the taxpayer in a criminal
proceeding, except that the stamp may be used against the taxpayer in
connection with the administration or civil or criminal enforcement
of the tax levied by Section 2 of this act.
Added by Laws 1990, c. 25, § 4, operative July 1, 1990.
§68-450.5. Immediate assessment and collection of tax - Delinquency
- Penalties.
A. The taxable period of the tax levied by Section 2 of this act
for any dealer not possessing valid stamps showing that the tax has
been paid shall be declared terminated by the Commission as provided
in paragraph 4 of subsection a of Section 224 of this title. The
Commission shall immediately assess the tax and applicable penalties
from any information in its possession, notify the taxpayer, and
demand immediate payment thereof. In the event of any failure or
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refusal to pay the tax and penalties immediately by the taxpayer, the
tax shall become delinquent and the Commission shall proceed to
collect such tax and penalties in the manner prescribed by law.
B. No person may bring an action to enjoin the assessment or
collection of any taxes, interest or penalties imposed by the
provisions of this act.
C. The tax and penalties assessed by the Commission pursuant to
the provisions of this act are presumed to be valid and correctly
determined and assessed. The burden is upon the taxpayer to show
their incorrectness or invalidity.
Added by Laws 1990, c. 25, § 5, operative July 1, 1990.
§68-450.6. Exemptions from tax.
Nothing in this act requires any person, including but not
limited to pharmacists or doctors licensed by this state, lawfully in
possession of a controlled dangerous substance, to pay the tax levied
by Section 2 of this act.
Added by Laws 1990, c. 25, § 6, operative July 1, 1990.
§68-450.7. Disposition of revenues.
The revenue, including interest and penalties, collected pursuant
to this act shall be paid monthly by the Commission to the State
Treasurer to be placed in the Drug Abuse Education Revolving Fund
created in Section 2-417 of Title 63 of the Oklahoma Statutes. The
monies shall be budgeted and expended by the State Board of Education
for drug abuse education programs.
Added by Laws 1990, c. 25, § 7, operative July 1, 1990.
§68-450.8. Civil and criminal penalties - Immunities.
A. Any dealer violating the provisions of this act, except
Section 450.9 of this title, shall pay a civil penalty of one hundred
percent (100%) of the amount of the tax levied in Section 450.2 of
this title in addition to the actual tax levied in said section.
B. Any dealer manufacturing, distributing, producing, shipping,
transporting, importing or possessing any controlled dangerous
substance without affixing the appropriate stamp, upon conviction, is
guilty of a felony punishable by imprisonment in the State
Penitentiary for not more than five (5) years or by the imposition of
a fine of not more than Ten Thousand Dollars ($10,000.00), or by both
such imprisonment and fine.
C. Nothing in this act may in any manner provide immunity for a
dealer from criminal prosecution pursuant to Oklahoma law.
Added by Laws 1990, c. 25, § 8, operative July 1, 1990. Amended by
Laws 1997, c. 133, § 559, eff. July 1, 1999; Laws 1999, 1st Ex.Sess.,
c. 5, § 408, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 559 from July 1, 1998, to July 1, 1999.
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§68-450.9. Reuse of used stamp prohibited - Penalty.
A. No person shall willfully remove or otherwise prepare any
adhesive stamps, with intent to use, or cause the same to be used,
after it has already been used or knowingly or willfully buy, sell,
offer for sale, or give away, any such washed or restored stamp to
any person, or knowingly use the same, or have in his possession any
washed, restored, or altered stamp which has been removed from the
controlled dangerous substance to which it had been previously
affixed.
B. No person shall for the purpose of indicating the payment of
any tax levied by Section 450.2 of this title, reuse any stamp which
has heretofore been used for the purpose of paying any tax levied by
Section 450.2 of this title, or buy, sell, offer for sale, or have in
his possession, any counterfeit stamps.
C. Any person convicted of violating any provision of this
section shall be guilty of a felony and shall be punished by a fine
of not more than One Thousand Dollars ($1,000.00), or by imprisonment
for not more than five (5) years, or by both such fine and
imprisonment.
Added by Laws 1990, c. 25, § 9, operative July 1, 1990. Amended by
Laws 1997, c. 133, § 560, eff. July 1, 1999; Laws 1999, 1st Ex.Sess.,
c. 5, § 409, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 560 from July 1, 1998, to July 1, 1999.
§68-451. Capital Improvement Fund.
There is hereby created in the State Treasury a special fund to
be designated the "Oklahoma Capital Improvement Fund". Said fund
shall consist of amounts deposited therein pursuant to subsection (d)
of Section 302-2 of this title, and monies, if any, which have
accrued to the State General Revenue Fund at the close of the fiscal
year ending June 30, 1979, which were in excess of Five Million
Dollars ($5,000,000.00) that year, in excess of the amounts required
to satisfy all appropriations made from the State General Revenue
Fund for the then current fiscal year together with all other
statutory obligations. Provided, the amount apportioned to the
Oklahoma Capital Improvement Fund by the Director of the Office of
Management and Enterprise Services from the fiscal year ending June
30, 1979, shall not exceed the sum of Thirty Million Dollars
($30,000,000.00).
Added by Laws 1979, c. 195, § 7, emerg. eff. May 24, 1979. Amended
by Laws 2012, c. 304, § 539.
§68-452. Expenditure of funds.
Revenues dedicated, apportioned, deposited and accruing to the
credit of the Oklahoma Capital Improvement Fund created by this act
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shall be expended only pursuant to legislative appropriation for
capital improvement projects.
Laws 1979, c. 195, § 8, emerg. eff. May 24, 1979.
§68-500.1. Short title.
Sections 1 through 63 of this act shall be known and may be cited
as the "Motor Fuel Tax Code".
Added by Laws 1996, c. 345, § 1, eff. Oct. 1, 1996.
§68-500.2. Legislative intent and purpose.
A. It is the intent of this act to amend, revise, incorporate
and recodify established revenue raising procedures applied to motor
fuels for the construction and maintenance of safe public highways
and bridges in this state. It is the intent of the Legislature that
the taxes imposed on motor fuel have always been and continue to be
declared and conclusively presumed to be a direct tax on the ultimate
or retail consumer. When the taxes are paid by any person other than
the ultimate or retail consumer, the payment shall be considered as
precollected and as an advance payment for the purpose of convenience
and facility to the consumer and shall thereafter be added to the
price of the motor fuel and recovered from the ultimate or retail
consumer, regardless of where or how the taxable fuel is ultimately
consumed.
B. In order to promote and protect the public safety, health and
welfare of this state, it is also the intent of this act to establish
a modern, efficient and effective motor fuel tax collection and
enforcement system adequate to substantially deter motor fuel tax
evasion emanating from sources within and outside this state. In
order to achieve the purpose and intent of this act, the Legislature
finds it necessary to increase conformity with federal law concerning
the imposition of tax on motor fuels and increased reliance on
highway enforcement systems. This act is intended to conform the
method in this state of imposing an excise tax on motor fuel with the
method imposed in the Internal Revenue Code and the regulations
issued pursuant thereto.
C. It is also the intent of the Legislature that the
recodification of the tax levied by this act shall not be considered
and construed to be a new tax or change in the motor fuel tax, but a
clarification of the motor fuel tax as it existed prior to the
effective date of this act. The purpose of this recodification is a
result of the interpretation of the motor fuel tax code of this state
by the federal courts, specifically the decision by the Supreme Court
of the United States in "Oklahoma Tax Commission v. Chickasaw
Nation", 115 S. Ct. 2214 (1995).
Added by Laws 1996, c. 345, § 2, eff. Oct. 1, 1996.
§68-500.3. Definitions.
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As used in the Motor Fuel Tax Code:
1. "Act" or "this act" means the Motor Fuel Tax Code;
2. "Agricultural purposes" means clearing, terracing or
otherwise preparing the ground on a farm; preparing soil for planting
and fertilizing, cultivating, raising and harvesting crops; raising
and feeding livestock and poultry; building fences; pumping water for
any and all uses on the farm, including irrigation; building roads
upon any farm by the owner or person farming same; operating milking
machines; sawing wood for use on a farm; producing electricity for
use on a farm; movement of tractors, farm implements and equipment
from one field to another and use of farm tractors to move farm
products from farm to market;
3. "Biodiesel" means a fuel comprised of mono-alkyl esters of
long chain fatty acids generally derived from vegetable oils or
animal fats, commonly known as "B100", that is commonly and
commercially known or sold as a fuel that is suitable for use in a
highway vehicle. The fuel meets this requirement if, without further
processing or blending, the fuel is a fluid and has practical and
commercial fitness for use in the propulsion of a highway vehicle;
4. "Biodiesel blend" means a blend of biodiesel fuel with
petroleum-based diesel fuel, commonly designated as "Bxx", where "xx"
represents the volume percentage of biodiesel fuel in the blend, and
that is commonly and commercially known or sold as a fuel that is
suitable for use in a highway vehicle. The fuel meets this
requirement if, without further processing or blending, the fuel is a
fluid and has practical and commercial fitness for use in the
propulsion of a highway vehicle;
5. "Blend stock" means any petroleum product component of
gasoline, such as naphtha, reformate, or toluene, that can be blended
for use in a motor fuel without further processing. However, the
term does not include any substance that:
a. will be ultimately used for consumer nonmotor-fuel use,
and
b. is sold or removed in drum quantities (55 gallons) or
less at the time of the removal or sale;
6. "Blended fuel" means a mixture composed of gasoline or diesel
fuel and another liquid, other than a de minimis amount of a product
such as carburetor detergent or oxidation inhibitor, that can be used
as a fuel in a highway vehicle. This term includes gasohol, ethanol
and fuel grade ethanol;
7. "Blender" means any person that produces blended motor fuel
outside the bulk transfer/terminal system;
8. "Blending" means the mixing of one or more petroleum
products, with or without another product, regardless of the original
character of the product blended, if the product obtained by the
blending is capable of use or otherwise sold for use in the
generation of power for the propulsion of a motor vehicle, an
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airplane, or a motorboat. The term does not include that blending
that occurs in the process of refining by the original refiner of
crude petroleum or the blending or products known as lubricating oil
and greases;
9. "Bulk end user" means a person who receives into the person's
own storage facilities in transport truck lots of motor fuel for the
person's own consumption;
10. "Bulk plant" means a motor fuel storage and distribution
facility that is not a terminal and from which motor fuel may be
removed at a rack;
11. "Bulk transfer" means any transfer of motor fuel from one
location to another by pipeline tender or marine delivery within the
bulk transfer/terminal system;
12. "Bulk transfer/terminal system" means the motor fuel
distribution system consisting of refineries, pipelines, vessels, and
terminals. Gasoline in a refinery, pipeline, vessel, or terminal is
in the bulk transfer/terminal system. Motor fuel in the fuel supply
tank of any engine, or in any tank car, rail car, trailer, truck, or
other equipment suitable for ground transportation is not in the bulk
transfer/terminal system;
13. "Tax Commission" or "Commission" means the Oklahoma Tax
Commission;
14. "Compressed natural gas" means a volume of natural gas
consisting primarily of methane which has been reduced to
approximately one percent (1%) of its original volume for purposes of
storage and for use as a fuel in motor vehicles;
15. "Consumer" means the user of the motor fuel on the public
highways of this state;
16. "Dead storage" means the amount of motor fuel that will not
be pumped out of a storage tank because the motor fuel is below the
mouth of the draw pipe. For purposes of Section 500.1 et seq. of
this title, a dealer may assume that the amount of motor fuel in dead
storage is two hundred (200) gallons for a tank with a capacity of
less than ten thousand (10,000) gallons and four hundred (400)
gallons for a tank with a capacity of ten thousand (10,000) gallons
or more;
17. "Delivery" means the placing of motor fuel or any liquid
into the fuel tank of a motor vehicle;
18. "Destination state" means the state, territory, or foreign
country to which motor fuel is directed for delivery into a storage
facility, a receptacle, a container, or a type of transportation
equipment for the purpose of resale or use;
19. "Diesel fuel" means any liquid, including but not limited
to, biodiesel, biodiesel blend or other diesel blended fuel, that is
commonly or commercially known or sold as a fuel that is suitable for
use in a diesel-powered highway vehicle. A liquid meets this
requirement if, without further processing or blending, the liquid
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has practical and commercial fitness for use in the propulsion engine
of a diesel-powered highway vehicle. Except as provided in
subsection B of Section 500.4 of this title, "diesel fuel" does not
include jet fuel sold to a buyer who is registered with and certified
by the Internal Revenue Service to purchase jet fuel subject to the
Internal Revenue Service;
20. "Diesel-powered highway vehicle" means a motor vehicle
operated on a highway that is propelled by a diesel-powered engine;
21. "Distributor" means a person who acquires motor fuel from a
supplier or from another distributor for subsequent sale or use;
22. "Dyed diesel fuel" means diesel fuel that is required to be
dyed pursuant to United States Environmental Protection Agency rules
or is dyed pursuant to Internal Revenue Service rules or pursuant to
any other requirements subsequently set by the United States
Environmental Protection Agency or Internal Revenue Service including
any invisible marker requirements;
23. "Eligible purchaser" means a person who has been authorized
by the Commission pursuant to Section 500.23 of this title to make
the election pursuant to Section 500.22 of this title;
24. "Enterer" includes any person who is the importer of record,
pursuant to federal customs law, with respect to motor fuel. If the
importer of record is acting as an agent, the person for whom the
agent is acting is the enterer. If there is no importer of record of
motor fuel entered into this state, the owner of the motor fuel at
the time it is brought into this state is the enterer;
25. "Entry" means the importing of motor fuel into this state.
Motor fuel brought into this state in the fuel tank of a motor
vehicle shall not be deemed to be an "entry" if not removed from the
fuel tank except as used for the propulsion of that motor vehicle,
except to the extent that motor fuel was acquired tax free for export
or a refund of tax was claimed as a result of exportation from the
state from which that motor fuel was transported into this state;
26. "Export" means to obtain motor fuel in this state for sale
or other distribution in another state. In applying this definition,
motor fuel delivered out of state by or for the seller constitutes an
export by the seller and motor fuel delivered out of state by or for
the purchaser constitutes an export by the purchaser;
27. "Exporter" means any person, other than a supplier, who
purchases motor fuel in this state for the purpose of transporting or
delivering the fuel to another state or country;
28. "Farm tractor" means all tractor-type, motorized farm
implements and equipment but shall not include motor vehicles of the
truck-type, pickup truck-type, automobiles, and other motor vehicles
required to be registered and licensed each year pursuant to the
provisions of the motor vehicle license and registration laws of this
state;
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29. "Fuel transportation vehicle" means any vehicle designed for
highway use which is also designed or used to transport motor fuels
and includes transport trucks and tank wagons;
30. "Gasoline" means all products, including but not limited to,
gasoline blend stocks, commonly or commercially known or sold as
gasoline that are suitable for use as a motor fuel. Gasoline does
not include products that have an American Society for Testing
Materials ("A.S.T.M.") octane number of less than seventy-five (75)
as determined by the "motor method". Except as provided in
subsection B of Section 500.4 of this title, "gasoline" does not
include aviation gasoline provided that the buyer is registered to
purchase aviation gasoline free of tax and the seller obtains
certification of such fact satisfactory to the Commission prior to
making the sale;
31. "Gasoline blend stocks" includes any petroleum product
component of gasoline, such as naphtha, reformate, or toluene, that
can be blended for use in a motor fuel. The term shall not include
any substance that will be ultimately used for consumer nonmotor-fuel
use and is sold or removed in drum quantities of 55 gallons or less
at the time of the removal or sale;
32. "Gross gallons" means the total measured motor fuel,
exclusive of any temperature or pressure adjustments, in U.S.
gallons;
33. "Heating oil" means a motor fuel that is burned in a boiler,
furnace, or stove for heating or industrial processing purposes;
34. "Highway vehicle" means a self-propelled vehicle that is
designed for use on a highway;
35. "Import" means to bring motor fuel into this state by any
means of conveyance other than in the fuel supply tank of a motor
vehicle. In applying this definition, motor fuel delivered into this
state from out of state by or for the seller constitutes an import by
the seller, and motor fuel delivered into this state from out of
state by or for the purchaser constitutes an import by the purchaser;
36. "Import verification number" means the number assigned by
the Commission with respect to a single transport truck delivery into
this state from another state upon request for an assigned number by
an importer or the transporter carrying motor fuel into this state
for the account of an importer;
37. "In this state" means the area within the border of this
state, including all land within the borders of this state owned by
the United States of America;
38. "Indian country" means:
a. land held in trust by the United States of America for
the benefit of a federally recognized Indian tribe or
nation,
b. all land within the limits of any Indian reservation
under the jurisdiction of the United States Government,
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notwithstanding the issuance of any patent, and
including rights-of-way running through the
reservation,
c. all dependent Indian communities within the borders of
the United States whether within the original or
subsequently acquired territory thereof, and whether
within or without the limits of a state, and
d. all Indian allotments, the Indian titles to which have
not been extinguished, including individual allotments
held in trust by the United States or allotments owned
in fee by individual Indians subject to federal law
restrictions regarding disposition of said allotments
and including rights-of-way running through the same.
The term shall also include the definition of Indian country as found
in 18 U.S.C., Section 1151;
39. "Indian tribe", "tribes", or "federally recognized Indian
tribe or nation" means an Indian tribal entity which is recognized by
the United States Bureau of Indian Affairs as having a special
relationship with the United States. The term shall also include the
definition of a tribe as defined in 25 U.S.C., Section 479a;
40. "Invoiced gallons" means the gallons actually billed on an
invoice in payment to a supplier;
41. "K-1 kerosene" means a petroleum product having an A.P.I.
gravity of not less than forty degrees (40°), at a temperature of
sixty degrees (60°) Fahrenheit and a minimum flash point of one
hundred degrees (100°) Fahrenheit with a sulphur content not
exceeding five one-hundredths percent (0.05%) by weight;
42. "Liquefied natural gas" means a volume of natural gas
consisting primarily of methane which has been cooled to
approximately negative two hundred sixty (-260) degrees Fahrenheit in
order to convert it to a liquid state for purposes of storage and use
as a fuel in motor vehicles;
43. "Liquid" means any substance that is liquid in excess of
sixty degrees (60°) Fahrenheit and a pressure of fourteen and seven-
tenths (14.7) pounds per square inch absolute;
44. "Motor fuel" means gasoline, diesel fuel and blended fuel;
45. "Motor fuel transporter" means a person who transports motor
fuel outside the bulk terminal/transfer system by transport truck or
railroad tank car;
46. "Motor vehicle" means every automobile, truck, truck-tractor
or any motor bus or self-propelled vehicle not operated or driven
upon fixed rails or tracks. The term does not include:
a. farm tractors or machinery including tractors and
machinery designed for off-road use but capable of
movement on roads at low speeds,
b. a vehicle operated on rails, or
c. machinery designed principally for off-road use;
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47. "Net gallons" means the motor fuel, measured in U.S.
gallons, when corrected to a temperature of sixty degrees (60°)
Fahrenheit (13° Celsius) and a pressure of fourteen and seven-tenths
(14.7) pounds per square inch (psi);
48. "Permissive supplier" means an out-of-state supplier that
elects, but is not required, to have a supplier's license pursuant to
Section 500.1 et seq. of this title;
49. "Person" means natural persons, individuals, partnerships,
firms, associations, corporations, estates, trustees, business
trusts, syndicates, this state, any county, city, municipality,
school district or other political subdivision of the state,
federally recognized Indian tribe, or any corporation or combination
acting as a unit or any receiver appointed by any state or federal
court;
50. "Position holder" means the person who holds the inventory
position in motor fuel in a terminal, as reflected on the records of
the terminal operator. A person holds the inventory position in
motor fuel when that person has a contract with the terminal operator
for the use of storage facilities and terminaling services for fuel
at the terminal. The term includes a terminal operator who owns fuel
in the terminal;
51. "Public highway" means every road, toll road, highway,
street, way or place generally open to the use of the public as a
matter of right for the purposes of vehicular travel, including
streets and alleys of any town or city notwithstanding that the same
may be temporarily closed for construction, reconstruction,
maintenance or repair;
52. "Qualified terminal" means a terminal designated as a
qualified terminal pursuant to the Internal Revenue Code, regulation
and practices and which has been assigned a terminal control number
("tcn") by the Internal Revenue Service;
53. "Rack" means a mechanism for delivering motor fuel from a
refinery, a terminal, or a bulk plant into a railroad tank car, a
transport truck or other means of bulk transfer outside of the bulk
transfer/terminal system;
54. "Refiner" means any person that owns, operates, or otherwise
controls a refinery within the United States;
55. "Refinery" means a facility used to produce motor fuel from
crude oil, unfinished oils, natural gas liquids, or other
hydrocarbons and from which motor fuel may be removed by pipeline, by
vessel, or at a rack;
56. "Removal" means any physical transfer other than by
evaporation, loss, or destruction of motor fuel from a terminal,
manufacturing plant, customs custody, pipeline, marine vessel such as
a barge or tanker, refinery or any receptacle that stores motor fuel;
57. "Retailer" means a person that engages in the business of
selling or distributing to the consumer within this state;
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58. "Supplier" means a person that is:
a. registered pursuant to Section 4101 of the Internal
Revenue Code for transactions in motor fuels in the
bulk transfer/terminal distribution system, and
b. one of the following:
(1) the position holder in a terminal or refinery in
this state,
(2) imports motor fuel into this state from a foreign
country,
(3) acquires motor fuel from a terminal or refinery in
this state from a position holder pursuant to a
two-party exchange, or
(4) the position holder in a terminal or refinery
outside this state with respect to motor fuel
which that person imports into this state on the
account of that person.
A terminal operator shall not be considered a supplier based
solely on the fact that the terminal operator handles motor fuel
consigned to it within a terminal. "Supplier" also means a person
that produces alcohol or alcohol derivative substances in this state,
produces alcohol or alcohol derivative substances for import to this
state into a terminal, or acquires upon import by truck, railcar or
barge into a terminal or refinery, alcohol or alcohol derivative
substances. "Supplier" includes a permissive supplier unless
specifically provided otherwise;
59. "Tank wagon" means a straight truck having multiple
compartments designed or used to carry motor fuel;
60. "Terminal" means a storage and distribution facility for
motor fuel, supplied by pipeline or marine vessel which is registered
as a qualified terminal by the Internal Revenue Service and from
which motor fuel may be removed at a rack;
61. "Terminal bulk transfers" include but are not limited to the
following:
a. a marine barge movement of fuel from a refinery or
terminal to a terminal,
b. pipeline movements of fuel from a refinery or terminal
to a terminal,
c. book transfers of product within a terminal between
suppliers prior to completion of removal across the
rack, and
d. two-party exchanges between licensed suppliers;
62. "Terminal operator" means any person that owns, operates, or
otherwise controls a terminal, and does not use a substantial portion
of the motor fuel that is transferred through or stored in the
terminal for its own use or consumption or in the manufacture of
products other than motor fuel. A terminal operator may own the
motor fuel that is transferred through or stored in the terminal;
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63. "Throughputter" means any person that:
a. receives transfer of motor fuel from refiners,
importers, terminal operators, or other throughputters,
b. stores the motor fuel in a terminal, and
c. owns the motor fuel or holds the inventory position to
the motor fuel, as reflected on the records of the
terminal operator, at the time of removal or sale from
a terminal;
64. "Transmix" means the buffer or interface between two
different products in a pipeline shipment, or a mix of two different
products within a refinery or terminal that results in an off-grade
mixture;
65. "Transport truck" means a semitrailer combination rig
designed or used for the purpose of transporting motor fuel over the
highways;
66. "Transporter" means any operator of a pipeline, barge,
railroad or transport truck engaged in the business of transporting
motor fuels;
67. "Two-party exchange" means a transaction in which the motor
fuel is transferred from one licensed supplier or licensed permissive
supplier to another licensed supplier or licensed permissive supplier
and:
a. which transaction includes a transfer from the person
that holds the original inventory position for motor
fuel in the terminal as reflected on the records of the
terminal operator, and
b. the exchange transaction is simultaneous with removal
from the terminal by the receiving exchange partner.
However, in any event, the terminal operator in the books and
records of such terminal operator treats the receiving exchange party
as the supplier which removes the product across a terminal rack for
purposes of reporting such events to this state;
68. "Ultimate vendor" means a person that sells motor fuel to
the consumer;
69. "Undyed diesel fuel" means diesel fuel that is not subject
to the United States Environmental Projection Agency dyeing
requirements, or has not been dyed in accordance with Internal
Revenue Service fuel dyeing provisions;
70. "Vehicle fuel tank" means any receptacle on a motor vehicle
from which fuel is supplied for the propulsion of the motor vehicle;
and
71. "Wholesaler" means a person that acquires motor fuel from a
supplier or from another wholesaler for subsequent sale and
distribution at wholesale.
Added by Laws 1996, c. 345, § 3, eff. Oct. 1, 1996. Amended by Laws
2006, c. 327, § 2, eff. July 1, 2006; Laws 2011, c. 163, § 2, eff.
Jan. 1, 2012; Laws 2013, c. 375, § 2, eff. Jan. 1, 2014.
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§68-500.4. Levy of tax.
A. A tax is imposed on all gasoline, compressed natural gas,
liquefied natural gas and all diesel fuel used or consumed in this
state as follows:
1. Gasoline, sixteen cents ($0.16) per gallon;
2. Diesel fuel, thirteen cents ($0.13) per gallon;
3. Compressed natural gas, five cents ($0.05) per gasoline
gallons equivalent (gge) until the credit authorized pursuant to the
provisions of paragraph 1 of subsection A of Section 2357.22 of this
title expires. Upon the expiration of the credit authorized pursuant
to the provisions of paragraph 1 of subsection A of Section 2357.22
of this title, the rate of tax imposed upon compressed natural gas
shall be equal to the tax rate imposed on diesel fuel using gasoline
gallons equivalent (gge); and
4. Liquefied natural gas, five cents ($0.05) per diesel gallon
equivalent (dge) until the credit authorized pursuant to the
provisions of paragraph 1 of subsection A of Section 2357.22 of this
title expires. Upon the expiration of the credit authorized pursuant
to the provisions of paragraph 1 of subsection A of Section 2357.22
of this title, the rate of tax imposed upon liquefied natural gas
shall be equal to the tax rate imposed on diesel fuel using diesel
gallon equivalent (dge), which shall be equal to six and six one-
hundredths (6.06) pounds of liquefied natural gas.
B. A tax is imposed on all gasoline, diesel fuel and kerosene
used or consumed in this state for use as fuel to generate power in
aircraft engines or for training, testing or research on aircraft
engines in the amount of eight one-hundredths of one cent ($0.0008)
per gallon. All gasoline, diesel fuel and kerosene sold for use
under this subsection shall not be subject to the excise tax levied
in subsection A of this section.
C. Notwithstanding any exemption provided in Section 500.1 et
seq. of this title, all gasoline used or consumed in this state for
use as fuel for farm tractors or stationary engines and used
exclusively for agricultural purposes shall be subject to a tax in
the amount of two and eight one-hundredths cents ($0.0208) per
gallon. All gasoline sold for use pursuant to this subsection shall
not be subject to the excise tax levied in subsection A of this
section. The term "farm tractor", as used herein, shall include all
tractor-type, motorized farm implements and equipment but shall not
include motor vehicles of the truck-type, pickup truck-type,
automobiles and other motor vehicles required to be registered and
licensed each year under the Oklahoma Vehicle License and
Registration Act.
D. It is the intent of this section to amend, revise,
incorporate and recodify the tax imposed on motor fuel and that the
tax shall be conclusively presumed to be a direct tax and shall be a
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direct tax on the retail or ultimate consumer precollected for the
purpose of convenience and facility to the consumer. The levy and
assessment on other persons as specified in this act shall be as
agents of the state for the precollection of the tax. The provisions
of this section shall in no way affect the method of collecting the
tax as provided in this act. The tax imposed by this section shall
be collected and paid at those times, in the manner, and by those
persons specified in this act.
Added by Laws 1996, c. 345, § 4, eff. Oct. 1, 1996. Amended by Laws
2000, c. 314, § 7, eff. July 1, 2000; Laws 2011, c. 163, § 3, eff.
Jan. 1, 2012; Laws 2013, c. 375, § 3, eff. Jan. 1, 2014.
§68-500.4A. Levy of tax equal to reduction in federal excise tax.
A. In the event that, by federal law, the federal excise tax
imposed on gasoline or diesel fuel or both is reduced from the rate
imposed on January 1, 1996, there shall be levied a tax equal to the
reduction in the federal excise tax on gasoline or diesel fuel or
both. The tax on gasoline or diesel fuel or both shall be imposed
beginning the first day following the reduction in the rate of the
federal excise tax on gasoline or diesel fuel or both. The tax
imposed by this subsection resulting from a reduction in federal
excise tax on gasoline or diesel fuel or both shall not include any
reduction in federal excise tax imposed on diesel fuel for use in
trains pursuant to the Internal Revenue Code, 26 U.S.C., Section
4041, in that the federal excise tax levy on diesel fuel for use in
trains is not appropriated or apportioned to the Federal Highway
Trust Fund.
B. The tax levied pursuant to subsection A of this section shall
be in addition to and applicable to all gasoline and diesel fuel
subject to the tax imposed and levied pursuant to Section 500.4 of
Title 68 of the Oklahoma Statutes. It is the intent of this section
that the tax shall be conclusively presumed to be a direct tax and
shall be a direct tax on the retail or ultimate consumer precollected
for the purpose of convenience and facility to the consumer. The
levy and assessment on other persons as specified in the Motor Fuel
Tax Code shall be as agents of the state for the precollection of the
tax. The provisions of this section shall in no way affect the
method of collecting the tax as provided in the Motor Fuel Tax Code.
The tax imposed by this section shall be collected and paid at those
times, in the manner, and by those persons specified in the Motor
Fuel Tax Code.
Added by Laws 1997, c. 259, § 1, eff. Nov. 1, 1997.
§68-500.4B. Additional tax imposed on diesel fuel and gasoline -
Apportionment of revenue.
A. For the purpose of providing revenue for the support of the
functions of state government, in addition to the tax imposed by
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Section 500.4 of Title 68 of the Oklahoma Statutes, there is hereby
imposed a tax of:
1. Six cents ($0.06) per gallon on all diesel fuel used or
consumed in this state; and
2. Three cents ($0.03) per gallon on all gasoline used or
consumed in this state.
B. All remaining revenue from the tax imposed by subsection A of
this section and penalties and interest thereon collected by the
Oklahoma Tax Commission, after the requirements of Section 500.63 of
Title 68 of the Oklahoma Statutes have been fulfilled, shall be
deposited as follows:
1. Prior to July 1, 2019, the remaining revenue shall be
apportioned by the Oklahoma Tax Commission and transmitted to the
State Treasurer who shall deposit such revenue in the General Revenue
Fund; and
2. Beginning July 1, 2019, the remaining revenue shall be
apportioned by the Oklahoma Tax Commission and transmitted to the
State Treasurer who shall deposit such revenue in the Rebuilding
Oklahoma Access and Driver Safety Fund created in Section 1521 of
Title 69 of the Oklahoma Statutes.
Added by Laws 2018, 2nd Ex. Sess., c. 8, § 6.
§68-500.5. Presumptions.
A. Except as otherwise provided in paragraph 11 of Section 10 of
this act, the Commission shall consider it a presumption that all
motor fuel delivered in this state into a motor vehicle fuel supply
tank is to be used or consumed on the highways in this state in
producing or generating power for propelling motor vehicles.
B. The Commission shall consider it a rebuttable presumption,
subject to proof of exemption under Section 10 of this act, that all
motor fuel removed from a terminal in this state, or imported into
this state other than by a bulk transfer within the bulk
transfer/terminal system or delivered into a bulk end user's storage
tank, is to be used or consumed on the highways in this state in
producing or generating power for propelling motor vehicles.
Added by Laws 1996, c. 345, § 5, eff. Oct. 1, 1996.
§68-500.6. Apportionment of gasoline and compressed natural gas tax.
A. The tax of sixteen cents ($0.16) per gallon of gasoline that
is levied by paragraph 1 of subsection A of Section 500.4 of this
title, the tax upon compressed natural gas levied by paragraph 3 of
subsection A of Section 500.4 of this title, the tax upon liquefied
natural gas levied by paragraph 4 of subsection A of Section 500.4 of
this title and the tax of two and eight one-hundredths cents
($0.0208) per gallon of gasoline that is levied by subsection C of
Section 500.4 of this title, and penalties and interest thereon,
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collected by the Oklahoma Tax Commission under the levy shall be
apportioned and distributed monthly as follows:
1. The first Two Hundred Fifty Thousand Dollars ($250,000.00) of
the levy collected each month shall be deposited in the State
Treasury to the credit of the State Transportation Fund;
2. One and six hundred twenty-five one-thousandths percent
(1.625%) of the levy shall be remitted to the State Treasurer to the
credit of the High Priority State Bridge Revolving Fund as created in
Section 506 of Title 69 of the Oklahoma Statutes;
3. Sixty-three and seventy-five one-hundredths percent (63.75%)
of the levy shall be deposited in the State Treasury to the credit of
the State Transportation Fund to be apportioned as follows:
a. the first Eight Hundred Fifty Thousand Dollars
($850,000.00) collected each fiscal year shall be
transferred to the Public Transit Revolving Fund,
created in Section 4031 of Title 69 of the Oklahoma
Statutes, and
b. the second Eight Hundred Fifty Thousand Dollars
($850,000.00) collected each fiscal year shall be
transferred to the Oklahoma Tourism and Passenger Rail
Revolving Fund and shall be used by the Department of
Transportation:
(1) to contract railroad passenger services, including
but not limited to a route linking stations in
Oklahoma and Tulsa Counties with other primary
points in the national railroad passenger system
and passenger rail service within the state, and a
route beginning at a station in Oklahoma County
and extending north to the Kansas state line in
Kay County, and
(2) to provide necessary facility, signaling, and
track improvements for those contracted services,
c. forty-one and two-tenths percent (41.2%) of the monies
apportioned to the State Transportation Fund shall be
used for any purpose provided for in Section 1502 of
Title 69 of the Oklahoma Statutes,
d. nine and eight-tenths percent (9.8%) of the monies
apportioned to the State Transportation Fund shall be
used to provide funds for the construction and
maintenance of farm-to-market roads on the state
highway system, and other rural farm-to-market roads
and bridges, and
e. any remaining amount of the apportionment shall be
deposited into the State Transportation Fund;
4. Twenty-seven percent (27%) of the levy shall be transmitted
by the Tax Commission to the various counties of the state, to be
apportioned and used as follows:
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a. sixty-five and three-tenths percent (65.3%) of the
monies apportioned under this paragraph shall be used
on the following basis:
(1) forty percent (40%) of such sum shall be
distributed to the various counties in the
proportion which the county road mileage of each
county bears to the entire state road mileage as
certified by the Transportation Commission, and
(2) the remaining sixty percent (60%) of such sum
shall be distributed to the various counties on
the basis which the population and area of each
county bears to the total population and area of
the state. The population shall be as shown by
the last Federal Decennial Census or the most
recent annual estimate provided by the U.S. Bureau
of the Census,
b. twenty-three and one-tenth percent (23.1%) of the
monies apportioned under this paragraph shall be
distributed to the counties in the following manner:
One-third (1/3) on area; one-third (1/3) on rural
population, defined as including the population of all
municipalities with a population of less than five
thousand (5,000) according to the latest Federal
Decennial Census; and one-third (1/3) on county road
mileage, as last certified by the Department of
Transportation, as each county bears to the entire
area, rural population and road mileage of the state,
and
c. eleven and six-tenths percent (11.6%) of the monies
apportioned under this paragraph shall be distributed
to the various counties of the state based on a formula
developed by the Department of Transportation and
approved by the Department of Transportation County
Advisory Board created pursuant to Section 302.1 of
Title 69 of the Oklahoma Statutes. The formula shall
be similar to the formula currently used for the
distribution of monies in the County Bridge Program
funds, but shall also take into consideration the
effect of the terrain and traffic volume as related to
county road improvement and maintenance costs;
5. Three and one hundred twenty-five one-thousandths percent
(3.125%) of the levy shall be distributed to the various counties of
the state based on a formula developed by the Department of
Transportation and approved by the Department of Transportation
County Advisory Board created pursuant to Section 302.1 of Title 69
of the Oklahoma Statutes. The formula shall be similar to the
formula currently used for the distribution of monies in the County
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Bridge Program funds, but shall also take into consideration the
effect of the terrain and traffic volume as related to county road
improvement and maintenance costs;
6. Two and two hundred ninety-seven one-thousandths percent
(2.297%) of the levy shall be distributed to the various counties of
the state for deposit into the County Bridge and Road Improvement
Fund of each county based on a formula developed by the Department of
Transportation and approved by the Department of Transportation
County Advisory Board created pursuant to Section 302.1 of Title 69
of the Oklahoma Statutes to be used for the purposes set forth in the
County Bridge and Road Improvement Act. The formula shall be similar
to the formula currently used for the distribution of monies in the
County Bridge Program funds, but shall also take into consideration
the effect of the terrain and traffic volume as related to county
road improvement and maintenance costs;
7. One and eight hundred seventy-five one-thousandths percent
(1.875%) of the levy shall be transmitted by the Tax Commission to
the treasurers of the various incorporated cities and towns of the
state in the percentage which the population, as shown by the last
Federal Decennial Census or the most recent annual estimate provided
by the U.S. Bureau of the Census, bears to the total population of
all the incorporated cities and towns in this state. The funds shall
be expended for the construction, repair and maintenance of the
streets and alleys of the incorporated cities and towns of this
state; and
8. Three hundred twenty-eight one-thousandths percent (0.328%)
of the levy shall be transmitted by the Tax Commission to the
Statewide Circuit Engineering District Revolving Fund as created in
Section 687.2 of Title 69 of the Oklahoma Statutes.
B. 1. The funds apportioned or transmitted pursuant to
subparagraphs a, b, and c of paragraph 4 of subsection A of this
section, subsection B of Section 500.7 of this title, subsection B of
Section 704 of this title, Section 706 of this title, and paragraph 2
of subsection D of Section 707.3 of this title shall be sent to the
respective county treasurers and deposited in the county highway fund
to be used by the county commissioners for the purpose of
constructing and maintaining county highways and bridges.
2. The funds received by any county shall not be diverted to any
other county of the state, and shall only be expended under the
direction and control of the board of county commissioners in the
county to which the funds are appropriated. If any part of the funds
is diverted for any other purpose, the county commissioners shall be
liable on their bond for double the amount of the money so diverted.
This paragraph shall not prohibit counties from entering into
cooperative agreements pertaining to the maintenance and construction
of roads and bridges.
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3. Where any county highway has been laid out over a road
already constructed in any county by the use of money raised from
county bond issues for that purpose, either alone or by the use of
federal or state aid, or both, the county commissioners may set aside
out of the funds apportioned to that county, as provided in this
section, an amount of money equal to the value of any part thereof,
of the interest of such county in such highway or bridge, which
amount of money shall be considered by the excise board in reducing
the levy for the purpose of retiring the bonded indebtedness and
interest thereon of the county, and shall be used for investment or
deposit in the same manner as provided by law for the disposition of
other sinking fund money.
4. In all counties where the county excise board may find it
necessary, because of insufficient revenue, to maintain county
government out of the general fund, after a levy of ten (10) mills
has been made for any fiscal year, the county excise board may
appropriate out of any such funds apportioned to the county an amount
sufficient to pay the salaries of the county commissioners of the
county for the fiscal year.
5. Counties may use funds deposited in the county highway fund
for the purpose of matching federal or state funds, provided such
funds are available, as necessary to secure assistance in the
construction or improvement of the county road system.
C. With regards to the apportionment of the levy as set forth in
paragraph 5 of subsection A of this section, paragraph 5 of
subsection A of Section 500.7 of this title, and subsection C of
Section 707.2 of this title:
1. If any county has an accrued balance of funds which were
appropriated to or otherwise accrued in a restricted road maintenance
fund, such funds shall be deposited directly to the county highway
fund of the county;
2. If any county has an accrued balance of funds which were
appropriated to or otherwise accrued in the County Road Improvement
Fund, or the County Bridge Improvement Fund, such funds shall, by
resolution approved by a majority of the board of county
commissioners and filed with the Department of Transportation, be
deposited in the county highway fund of the county;
3. If any county has an accrued balance of funds which were
appropriated to or otherwise accrued in the County Bridge and Road
Improvement Fund, ninety-nine percent (99%) of such funds shall be
remitted to the respective county treasurer for deposit in the
appropriate County Bridge and Road Improvement Fund to be used for
the purpose set forth in the County Bridge and Road Improvement Act.
The remaining one percent (1%) of such funds will be remitted to the
Statewide Circuit Engineering District Revolving Fund; and
4. If any county has an advanced funding agreement with the
Department of Transportation, the Department of Transportation shall
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notify the Tax Commission as to the amount the county is obligated to
pay according to the terms of the advanced funding agreement. The
obligated amount shall be transferred each month by the Tax
Commission to the Department of Transportation to the credit of the
County Bridge and Road Improvement Fund from the funds apportioned to
the county pursuant to paragraph 5 of subsection A of this section.
A county may elect to increase the monthly amount to be repaid
pursuant to the advanced funding agreement from the funds apportioned
to the county, but a county shall not be permitted to reduce the
amount agreed to pursuant to the advanced funding agreement.
D. The tax levied on gasoline pursuant to Section 500.4A of this
title, and the penalties and interest thereon, collected by the Tax
Commission under the levy shall be apportioned and distributed on a
monthly basis to the State Highway Construction and Maintenance Fund
for the purposes authorized by Section 1502 of Title 69 of the
Oklahoma Statutes.
Added by Laws 1996, c. 345, § 6, eff. Oct. 1, 1996. Amended by Laws
1997, c. 284, § 1, eff. July 1, 1997; Laws 1998, c. 5, § 20, emerg.
eff. March 4, 1998; Laws 1998, c. 405, § 3, eff. Nov. 1, 1998; Laws
1999, c. 340, § 1, eff. July 1, 1999; Laws 2001, c. 267, § 1, eff.
July 1, 2001; Laws 2002, c. 458, § 4, eff. July 1, 2002; Laws 2003,
c. 472, § 8; Laws 2006, 2nd Ex.Sess., c. 45, § 3, eff. July 1, 2007;
Laws 2010, c. 256, § 1, eff. July 1, 2010; Laws 2011, c. 163, § 4,
eff. Jan. 1, 2012; Laws 2013, c. 375, § 4, eff. Jan. 1, 2014.
NOTE: Laws 1997, c. 259, § 2 repealed by Laws 1998, c. 5, § 29,
emerg. eff. March 4, 1998.
§68-500.6a. Distribution of tax revenue.
All revenue from the tax of eight one-hundredths of one cent
($0.0008) per gallon imposed pursuant to the provisions of subsection
B of Section 500.4 of Title 68 of the Oklahoma Statutes, and
penalties and interest thereon, collected by the Oklahoma Tax
Commission shall be apportioned and distributed monthly as follows:
1. For the fiscal year beginning July 1, 1999, one-third shall
be paid to the State Treasurer and placed to the credit of the
Oklahoma Aeronautics Commission Revolving Fund and two-thirds shall
be apportioned pursuant to the provisions of Section 500.6 of Title
68 of the Oklahoma Statutes;
2. For the fiscal year beginning July 1, 2000, two-thirds shall
be paid to the State Treasurer and placed to the credit of the
Oklahoma Aeronautics Commission Revolving Fund and one-third shall be
apportioned pursuant to the provisions of Section 500.6 of Title 68
of the Oklahoma Statutes; and
3. For the fiscal year beginning July 1, 2001, and for each
fiscal year thereafter, all such revenue shall be paid to the State
Treasurer and placed to the credit of the Oklahoma Aeronautics
Commission Revolving Fund.
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Added by Laws 1999, c. 283, § 4, eff. July 1, 1999.
§68-500.7. Apportionment of diesel fuel tax.
A. The tax of thirteen cents ($0.13) per gallon of diesel fuel
that is levied by Section 500.4 of this title, and all penalties and
interest thereon, collected by the Oklahoma Tax Commission under the
levy shall be apportioned and distributed monthly as follows:
1. The first Eighty-three Thousand Three Hundred Thirty-three
Dollars and thirty-three cents ($83,333.33) of the levy collected
each month shall be deposited in the State Treasury to the credit of
the State Transportation Fund;
2. One and thirty-nine one-hundredths percent (1.39%) of the
levy shall be paid by the Commission to the State Treasurer to the
credit of the High Priority State Bridge Revolving Fund as created in
Section 506 of Title 69 of the Oklahoma Statutes;
3. Sixty-four and thirty-four one-hundredths percent (64.34%) of
the levy shall be deposited in the State Treasury to the credit of
the State Transportation Fund;
4. Twenty-six and fifty-eight one-hundredths percent (26.58%) of
the levy shall be transmitted by the Commission to various counties
of the state, to be apportioned as follows:
a. forty-two and one-tenth percent (42.1%) of the monies
apportioned under this paragraph shall be transmitted
to the various counties in the percentage which the
population and area of each county bears to the
population and area of the entire state. The
population shall be as shown by the last Federal
Decennial Census or the most recent annual estimate
provided by the U.S. Bureau of the Census,
b. fourteen and five-tenths percent (14.5%) of the monies
apportioned under this paragraph shall be distributed
as follows:
Forty percent (40%) of such sum shall be distributed to
the various counties in that proportion which the
county road mileage of each county bears to the entire
state road mileage as certified by the Transportation
Commission, and the remaining sixty percent (60%) of
such sum shall be distributed to the various counties
on the basis which the population and area of each
county bears to the total population and area of the
state. The population shall be as shown by the last
Federal Decennial Census or the most recent annual
estimate provided by the U.S. Bureau of the Census,
c. twenty-eight and nine-tenths percent (28.9%) of the
monies apportioned under this paragraph shall be
distributed to the several counties in the following
manner: one-third (1/3) on area, one-third (1/3) on
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rural population (defined as including the population
of all municipalities with a population of less than
five thousand (5,000) according to the latest Federal
Decennial Census), and one-third (1/3) on county road
mileage, as last certified by the Department of
Transportation, as each county bears to the entire
area, rural population and road mileage of the state,
and
d. fourteen and five-tenths percent (14.5%) of the monies
apportioned under this paragraph shall be distributed
to the various counties of the state based on a formula
developed by the Department of Transportation and
approved by the Department of Transportation County
Advisory Board created pursuant to Section 302.1 of
Title 69 of the Oklahoma Statutes. The formula shall
be similar to the formula currently used for the
distribution of the County Bridge Program funds, but
shall also take into consideration the effect of the
terrain and traffic volume as related to the county
road improvement and maintenance costs;
5. Three and eighty-five one-hundredths percent (3.85%) of the
levy shall be distributed based on a formula developed by the
Department of Transportation and approved by the Department of
Transportation County Advisory Board created pursuant to Section
302.1 of Title 69 of the Oklahoma Statutes. The formula shall be
similar to the formula currently used for the distribution of the
County Bridge Program funds, but shall also take into consideration
the effect of the terrain and traffic volume as related to the county
road improvement and maintenance costs. The apportionment of the
levy as set forth in this paragraph shall be subject to the
provisions of subsection C of Section 500.6 of this title; and
6. Three and thirty-six one-hundredths percent (3.36%) of the
levy shall be distributed to the various counties of the state for
deposit into the County Bridge and Road Improvement Fund of each
county based on a formula developed by the Department of
Transportation and approved by the Department of Transportation
County Advisory Board created pursuant to Section 302.1 of Title 69
of the Oklahoma Statutes to be used for the purposes set forth in the
County Bridge and Road Improvement Act. The formula shall be similar
to the formula currently used for the distribution of monies in the
County Bridge Program funds, but shall also take into consideration
the effect of the terrain and traffic volume as related to county
road improvement and maintenance costs; and
7. Forty-eight one-hundredths percent (0.48%) of the levy shall
be transmitted by the Tax Commission to the Statewide Circuit
Engineering District Revolving Fund as created in Section 687.2 of
Title 69 of the Oklahoma Statutes.
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B. The funds apportioned or transmitted pursuant to the
provisions of subparagraphs a, b, and c of paragraph 4 of subsection
A of this section shall be used in accordance with and subject to the
provisions of subsection B of Section 500.6 of this title.
C. The tax levied on diesel fuel pursuant to Section 500.4A of
this title, and all penalties and interest thereon, collected by the
Commission under the levy shall be apportioned and distributed on a
monthly basis to the State Highway Construction and Maintenance Fund
for the purposes authorized by Section 1502 of Title 69 of the
Oklahoma Statutes.
Added by Laws 1996, c. 345, § 7, eff. Oct. 1, 1996. Amended by Laws
1997, c. 284, § 2, eff. July 1, 1997; Laws 1998, c. 5, § 21, emerg.
eff. March 4, 1998; Laws 2006, 2nd Ex.Sess., c. 45, § 4, eff. July 1,
2007; Laws 2010, c. 256, § 2, eff. July 1, 2010.
NOTE: Laws 1997, c. 259, § 3 repealed by Laws 1998, c. 5, § 29,
emerg. eff. March 4, 1998.
§68-500.8. Measurement of tax on importer gallons and supplier
gallons.
A. The tax imposed by this act on use of motor fuel which was
imported into this state by a licensed importer, other than by a bulk
transfer, shall arise at the time the product is entered into the
state and shall be measured by invoiced gallons received outside this
state at a refinery, terminal or at a bulk plant for delivery to a
destination in this state.
B. Except as provided in subsection A of this section, the tax
imposed by this act on use of motor fuel shall be measured by
invoiced gallons of motor fuel removed, other than by a bulk transfer
by a licensed supplier:
1. From the bulk transfer/terminal system or from a qualified
terminal or refinery within this state;
2. From the bulk transfer/terminal system or from a qualified
terminal or refinery outside this state for delivery to a location in
this state as represented on the shipping papers, provided that the
supplier imports the motor fuel for the account of the supplier, or
the supplier has made a tax precollection election under Section 19
of this act; and
3. Upon sale in a qualified terminal or refinery in this state
to an unlicensed supplier.
Added by Laws 1996, c. 345, § 8, eff. Oct. 1, 1996.
§68-500.9. Taxation of motor fuels held in inventory on date of
increase in tax rate.
A. The tax imposed by Section 4 of this act on the date of an
increase in the tax rate set out in Section 4 of this act shall be
applicable to previously taxed motor fuel:
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1. In excess of one thousand (1,000) gallons held in storage by
a bulk end user or a consumer; and
2. Inventory held for sale by a fuel vendor.
B. Persons in possession of motor fuel subject to this section:
1. Shall take an inventory to determine the gallons in storage
for purposes of determining the tax on inventory in determining the
amount of motor fuel tax due under this section;
2. May deduct the amount of motor fuel in dead storage;
3. May deduct these gallons in which tax at the full rate has
previously been paid;
4. May take a deduction for gallons of dyed diesel fuel; and
5. Report the gallons listed in paragraph 1 of this subsection
on forms provided by the Commission.
C. The amount of the inventory tax is equal to the inventory tax
rate times the gallons in storage as determined pursuant to the
provisions of this section. The inventory tax rate is equal to the
difference between the increased tax rate minus the previous tax rate
to which those gallons were previously subjected to tax.
D. The inventory tax report required by this section shall be
accompanied by payment of the inventory tax calculated in accordance
with this section, and payment made on or before the due date of the
report.
Added by Laws 1996, c. 345, § 9, eff. Oct. 1, 1996.
§68-500.10. Exemptions from motor fuels tax.
Subject to the procedural requirements and conditions set out in
this section and Sections 500.11 through 500.17 of this title, the
following are exempt from the taxes on motor fuel imposed by Section
500.4 of this title and Section 6 of Enrolled House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature:
1. Motor fuel for which proof of export is available in the form
of a terminal-issued destination state shipping paper:
a. exported by a supplier who is licensed in the
destination state, or
b. sold by a supplier to a licensed exporter for immediate
export;
2. Motor fuel which was acquired by an unlicensed exporter and
as to which the tax imposed by Section 500.4 of this title has
previously been paid or accrued and was subsequently exported by
transport truck by or on behalf of the licensed exporter in a
diversion across state boundaries properly reported in conformity
with Section 500.46 of this title;
3. Motor fuel exported out of a bulk plant in this state in a
tank wagon if the destination of that vehicle does not exceed twenty-
five (25) miles from the border of this state and as to which the tax
imposed by Section 500.4 of this title has previously been paid or
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accrued, subject to gallonage limits and other conditions established
by the Oklahoma Tax Commission;
4. K-1 kerosene sold at retail through dispensers which have
been designed and constructed to prevent delivery directly from the
dispenser into a vehicle fuel supply tank, and K-1 kerosene sold at
retail through nonbarricaded dispensers in quantities of not more
than twenty-one (21) gallons for use other than for highway purposes,
under such rules as the Tax Commission shall reasonably require;
5. Motor fuel sold to the United States or any agency or
instrumentality thereof;
6. Motor fuel used solely and exclusively in district-owned
public school vehicles or FFA and 4-H Club trucks for the purpose of
legally transporting public school children, and motor fuel purchased
by any school district for use exclusively in school buses leased or
hired for the purpose of legally transporting public school children,
or in the operation of vehicles used in driver training;
7. Motor fuel used solely and exclusively as fuel to propel
motor vehicles on the public roads and highways of this state, when
leased or owned and being operated for the sole benefit of a county,
city, town, a volunteer fire department with a state certification
and rating, rural electric cooperatives, rural water and sewer
districts, rural irrigation districts organized under the Oklahoma
Irrigation District Act, conservancy districts and master conservancy
districts organized under the Conservancy Act of Oklahoma, rural
ambulance service districts, or federally recognized Indian tribes;
8. Motor fuel used as fuel for farm tractors or stationary
engines owned or leased and operated by any person and used
exclusively for agricultural purposes, except as to two and eight
one-hundredths cents ($0.0208) per gallon of gasoline as provided in
subsection C of Section 500.4 of this title;
9. Gasoline, diesel fuel and kerosene sold for use as fuel to
generate power in aircraft engines, whether in aircraft or for
training, testing or research purposes of aircraft engines, except as
to eight one-hundredths of one cent ($0.0008) per gallon as provided
in subsection B of Section 500.4 of this title;
10. Motor fuel sold within an Indian reservation or within
Indian country by a federally recognized Indian tribe to a member of
that tribe and used in motor vehicles owned by that member of the
tribe. This exemption does not apply to sales within an Indian
reservation or within Indian country by a federally recognized Indian
tribe to non-Indian consumers or to Indian consumers who are not
members of the tribe selling the motor fuel;
11. Subject to determination by the Tax Commission, that portion
of diesel fuel:
a. used to operate equipment attached to a motor vehicle,
if the diesel fuel was placed into the fuel supply tank
of a motor vehicle that has a common fuel reservoir for
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travel on a highway and for the operation of equipment,
or
b. consumed by the vehicle while the vehicle is parked off
the highways of this state;
12. Motor fuel acquired by a consumer out of state and carried
into this state, retained within and consumed from the same vehicle
fuel supply tank within which it was imported;
13. Diesel fuel used as heating oil, or in railroad locomotives
or any other motorized flanged-wheel rail equipment, or used for
other nonhighway purposes other than as expressly exempted under
another provision;
14. Motor fuel which was lost or destroyed as a direct result of
a sudden and unexpected casualty;
15. Taxable diesel which had been accidentally contaminated by
dye so as to be unsaleable as highway fuel as proved by proper
documentation;
16. Dyed diesel fuel;
17. Motor fuel sold to the Oklahoma Space Industry Development
Authority or any spaceport user as defined in the Oklahoma Space
Industry Development Act; and
18. Biofuels or biodiesel produced by an individual with crops
grown on property owned by the same individual and used in a vehicle
owned by the same individual on the public roads and highways of this
state.
Added by Laws 1996, c. 345, § 10, eff. Oct. 1, 1996. Amended by Laws
1999, c. 164, § 38, eff. July 1, 1999; Laws 2007, c. 267, § 2, eff.
Jan. 1, 2008; Laws 2009, c. 426, § 7, eff. July 1, 2009; Laws 2018,
2nd Ex. Sess., c. 11, § 1.
NOTE: Sections 2 and 3 of House Bill No. 1015 of the 2nd
Extraordinary Session of the 56th Oklahoma Legislature state that
this section shall become effective upon the date the provisions of
House Bill No. 1010 of the 2nd Extraordinary Session of the 56th
Oklahoma Legislature become effective, and is contingent upon
enactment of that bill. House Bill No. 1010 was signed by the
Governor on March 29, 2018.
§68-500.10-1. Ethanol credit – Refund claims process.
A. As used in this section:
1. “Ethanol” means a blend of gasoline and ethyl alcohol
consisting of not more than fifteen percent (15%) ethyl alcohol by
volume; and
2. “Retail dealer” means the type of dealer described by
paragraph 53 of Section 500.3 of Title 68 of the Oklahoma Statutes.
B. Unless the federal government mandates the use of
reformulated fuel in an area within the State of Oklahoma in
nonattainment with the National Ambient Air Quality Standards, there
shall be allowed as a credit against the tax levy imposed pursuant to
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paragraph 1 of subsection A of Section 500.4 of Title 68 of the
Oklahoma Statutes in the amount of one and six-tenths cents ($0.016)
for each gallon of ethyl alcohol which is contained in ethanol sold
by a retail dealer.
C. Notwithstanding any other provision of the Oklahoma Motor
Fuel Tax Code to the contrary, the retail dealer described by
subsection A of this section may make the claim for refund from the
Oklahoma Tax Commission. The refund claim process for the credit
authorized by this section shall be substantially the same as the
refund claims process authorized by the Motor Fuel Tax Code for other
refunds provided by law.
D. Each claim for refund filed pursuant to this section shall be
accompanied by such documentation as may be required by the Tax
Commission that the retail dealer reduced the retail price for each
gallon of ethyl alcohol which is contained in ethanol sold, and for
which the credit authorized by this section is claimed, by one and
six-tenths cents ($0.016) and that such cost savings was economically
provided to the purchaser of the ethanol fuel.
Added by Laws 2005, c. 294, § 2, eff. Jan. 1, 2006.
§68-500.11. Perfecting exemption for exports.
The exemption for exports:
1. Under paragraph 1 of Section 10 of this act, shall be
perfected by a deduction on the report of the supplier or licensed
exporter which is otherwise responsible for the tax on removal of the
product from a terminal or refinery in this state;
2. Under paragraph 3 of Section 10 of this act, shall be
perfected by the exporter by a refund claim if the claim in the
aggregate month to date exceeds One Thousand Dollars ($1,000.00) upon
a refund application made to the Commission within three (3) years;
or
3. Under paragraph 2 of Section 10 of this act, shall be
perfected by the unlicensed exporter, if a diversion by an unlicensed
exporter, upon a refund application made to the Commission within
three (3) years.
Added by Laws 1996, c. 345, § 11, eff. Oct. 1, 1996.
§68-500.12. Regulations for exempt use of kerosene.
Exempt use of K-1 kerosene shall be governed by regulations
promulgated by the Commission which shall follow regulations
governing the exemption promulgated by the federal government to the
extent that impositions of the conforming regulations would be
practical and not be a hardship on sellers and consumers in this
state.
Added by Laws 1996, c. 345, § 12, eff. Oct. 1, 1996.
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§68-500.13. Procedures for tax exempt sales of motor fuel to
governmental agencies.
The exemption for sales of motor fuel for use by the United
States or any agency or instrumentality thereof, as provided in
paragraph 5 of Section 500.10 of this title, district-owned public
school vehicles and buses or FFA and 4-H Club trucks used for the
purpose of legally transporting public school children and in the
operation of vehicles used in driver training, as provided in
paragraph 6 of Section 500.10 of this title, for use by a county,
city, town, volunteer fire department, rural electric cooperative,
rural water and sewer district, rural ambulance service district, or
federally recognized Indian tribe, as provided in paragraph 7 of
Section 500.10 of this title, and for use by the Oklahoma Space
Industry Development Authority or any spaceport user, as provided in
paragraph 17 of Section 500.10 of this title, shall be perfected as
follows:
1. The ultimate vendor shall obtain a certificate signed by the
purchasing entity listed in this section setting forth:
a. the name and address of the purchasing entity,
b. the quantity of motor fuel, or if the certificate is
for all the motor fuel purchased by the purchasing
entity, the certificate shall be for a period not to
exceed three (3) years,
c. the exempt use of the motor fuel,
d. the name and address of the ultimate vendor from whom
the motor fuel was purchased,
e. the federal employer identification number of the
purchasing entity, and
f. a statement that the purchasing entity understands that
the fraudulent use of the certificate to obtain fuel
without paying the tax levied pursuant to Section 500.1
et seq. of this title shall result in the purchaser
paying the tax, with penalties and interest, as well as
such other penalties provided in Section 500.1 et seq.
of this title;
2. The ultimate vendor, having obtained from the purchasing
entity the certificate, which the ultimate vendor shall retain for a
period of not less than three (3) years, shall execute an ultimate
vendor certificate which shall contain the following information:
a. the name and address of the ultimate vendor,
b. the federal employment identification number of the
ultimate vendor,
c. the quantity of motor fuel sold and the date of the
sale,
d. a certification that the ultimate vendor sold motor
fuel to the purchasing entity for the exempt purpose,
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e. that the ultimate vendor has the necessary records to
support the sale of the motor fuel, and
f. that the ultimate vendor understands and agrees that
the fraudulent use of the certificate to obtain fuel
without paying the tax levied pursuant to Section 500.1
et seq. of this title, or paying a refund of the tax,
whether for the ultimate vendor or others, shall result
in the payment of the tax by the ultimate vendor, with
penalties and interest, as well as such other penalties
provided in Section 500.1 et seq. of this title;
3. The ultimate vendor shall give the executed ultimate vendor
certificate to the supplier who, having made reasonable commercial
inquiries into the accuracy of the information in the certificate,
shall be eligible to claim a credit against the tax liability on the
ensuing monthly report of the supplier. As a condition of obtaining
the credit, the supplier shall credit or refund the tax to the
ultimate vendor who made the sale to the purchasing entity. If there
is an intermediate vendor, or vendors, in the distribution chain
between the supplier and the ultimate vendor, each vendor shall
endorse the certificate, subject to rules promulgated by the Oklahoma
Tax Commission, and transmit the certificate to the supplier and
remit the credit, once received, to the customer of the intermediate
vendor. The supplier and all vendors, if they accept the certificate
in good faith and make a reasonable inquiry as to the accuracy of the
information contained in the certificate, shall be held harmless if
the purchasing entity has made a fraudulent claim; and
4. If the sale of motor fuel to the purchasing entity occurs at
a fixed retail pump available to the general public, the ultimate
vendor, having made the sale to the purchasing entity without the
tax, may apply for a refund from the Tax Commission by submitting the
application and supporting documentation as the Tax Commission shall
reasonably prescribe by regulation. However, if the purchase is
charged to a fleet or government fueling credit card, or to an oil
company credit card issued to the purchasing entity, the ultimate
vendor may bill the purchasing entity without the tax and seek a
refund, or utilize the provisions of paragraph 1, 2, or 3 of this
section if the issuer of the card is a supplier.
Added by Laws 1996, c. 345, § 13, eff. Oct. 1, 1996. Amended by Laws
1999, c. 164, § 39, eff. July 1, 1999.
§68-500.14. Perfection of certain exemptions by refund claim.
A. 1. The exemption for use pursuant to paragraph 11 of Section
500.10 of this title shall be perfected by a refund claim filed by
the consumer who shall provide evidence of an allocation of use
satisfactory to the Oklahoma Tax Commission.
2. The exemption for a consumer who claims a refund pursuant to
paragraph 1 of this subsection for tax paid on fuel used to operate
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trucks designed, equipped and used exclusively for garbage, refuse or
solid waste disposal shall be thirty-five percent (35%) of the tax
paid on such fuel; provided, the taxpayer may claim an amount greater
than thirty-five percent (35%) if the taxpayer supplies evidence of
an allocation of use for a tax exempt purpose satisfactory to the Tax
Commission of an amount greater than thirty-five percent (35%).
B. The exemption for motor fuel pursuant to paragraphs 14 and 15
of Section 500.10 of this title which fuel was purchased tax paid for
a taxable use and was, after the purchase, contaminated by the
presence of a dye or marker or subject to a sudden and unexpected
casualty loss shall be refunded to the person responsible for the
contamination or loss event upon application therefor and on proof
shown acceptable to the Tax Commission.
C. Motor fuel tax that has otherwise been erroneously paid by a
person shall be refunded by the Tax Commission upon proof shown
satisfactory to the Tax Commission. The authority of the Tax
Commission under this section shall be broadly construed to prevent
unjust and unintended payment of taxes on exempt uses or by exempt
users.
D. The consumer shall apply for a refund with respect to motor
fuel purchased by the consumer for consumption in an exempt use
described under paragraphs 8 and 13 of Section 500.10 of this title
as to which the tax imposed by this act had been previously paid and
no refund previously issued.
E. The exemption from taxation set forth in paragraph 10 of
Section 500.10 of this title shall be perfected by the consumer
applying for a refund with respect to motor fuel purchased by the
consumer for consumption as to which the tax imposed by this act had
been previously paid and no refund previously issued. The Tax
Commission shall promulgate any necessary rules to administer this
exemption.
F. Motor fuel tax that has been paid more than once with respect
to the same gallon of motor fuel shall be refunded by the Tax
Commission to the person who last paid the tax upon proof
satisfactory to the Tax Commission.
Added by Laws 1996, c. 345, § 14, eff. Oct. 1, 1996. Amended by Laws
2004, c. 37, § 1, eff. Nov. 1, 2004.
§68-500.15. Perfecting exemptions for suppliers, tank wagon
importers and importers of dyed diesel fuel.
All exemptions under Section 10 of this act, not expressly
covered under Sections 11 through 14 of this act, shall be perfected
as follows:
1. A supplier or tank wagon importer shall take a deduction
against motor fuel shown on the monthly report for those gallons of
diesel fuel removed from a terminal or refinery destined for delivery
to a point in this state as shown on the shipping papers, as to which
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dye was added in a manner which conforms to federal requirements
established by the Internal Revenue Code and regulations issued
thereunder; or
2. An importer shall take a deduction against tax owed under
Section 18 of this act for dyed diesel fuel if such diesel fuel would
have met the requirements of paragraph 1 of this section.
Added by Laws 1996, c. 345, § 15, eff. Oct. 1, 1996.
§68-500.16. Procedures for claiming refund - Investigations - Credit
in lieu of refund.
A. To claim a refund under Sections 10 through 14 of this act, a
person shall present to the Commission a statement containing a
written verification that the claim is made under penalties of
perjury and lists the total amount of motor fuel purchased and used
for exempt purposes. The claim shall not be transferred or assigned
and shall be filed not more than three (3) years after the date the
motor fuel was purchased. The statement shall show that payment for
the purchase has been made and the amount of tax paid on the purchase
has been remitted.
B. The Commission may make any investigations it considers
necessary before refunding the motor fuel tax to a person and may
investigate a refund after the refund has been issued and within the
time frame for making adjustments to the tax under this act.
C. In any case where a refund would be payable to a supplier
under this act, the supplier may claim a credit in lieu of such
refund.
Added by Laws 1996, c. 345, § 16, eff. Oct. 1, 1996.
§68-500.17. Interest on refund.
If a refund is not issued within twenty (20) days of the filing
required by this act, the Commission shall pay interest at the rate
of six percent (6%) per annum from the date of filing of the claim
for refund until the date on which the refund is made.
Added by Laws 1996, c. 345, § 17, eff. Oct. 1, 1996. Amended by Laws
1998, c. 254, § 1, eff. Nov. 1, 1998.
§68-500.18. Payment of tax by licensed occasional importers and
licensed bonded importers.
Except as otherwise provided in the Motor Fuel Tax Code, the tax
imposed by Sections 500.4 and 500.4B of this title on motor fuel
measured by gallons imported from another state shall be paid by the:
1. Licensed occasional importer who has imported the nonexempt
motor fuel within three (3) business days of the earlier of the time
that the nonexempt motor fuel was entered into the state, or the time
that a valid import verification number required by subsection F of
Section 500.33 of this title was assigned by the Commission, under
such rules and procedures as the Commission may provide; or
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2. Licensed bonded importer who has imported the nonexempt motor
fuel during a month on or before the twentieth day of the following
month unless such day falls upon a weekend or state or banking
holiday, in which case the liability would be due the next succeeding
business day.
However, if the supplier has made a blanket election to
precollect tax under Section 500.19 of this title, then the supplier
shall become jointly liable with the importer for the tax and shall
remit the tax to the Commission on behalf of the importer under the
same terms as a supplier payment under Section 500.20 of this title,
and no import verification number shall be required.
Added by Laws 1996, c. 345, § 18, eff. Oct. 1, 1996. Amended by Laws
2019, c. 169, § 1, eff. Nov. 1, 2019.
§68-500.19. Election regarding fuel removals from out-of-state
terminals.
A. Any licensed supplier or licensed permissive supplier may
make a blanket election with the Commission to treat all removals
from all of its out-of-state terminals with a destination in this
state as shown on the terminal-issued shipping paper as if the
removals were removed across the rack by the supplier from a terminal
in this state for all purposes.
B. The election provided by this section shall be made by filing
a "notice of election" with the Commission.
C. The Commission shall release a list of electing suppliers
under this section upon request by any person.
D. The absence of an election by a supplier under this section
shall in no way relieve the supplier of responsibility for remitting
the tax imposed by this act upon the removal from an out-of-state
terminal for import into this state by the supplier.
E. Any supplier which makes the election provided by this
section shall precollect the tax imposed by this act on all removals
from a qualified terminal on its account as a position holder, or as
a person receiving fuel from a position holder pursuant to a two-
party exchange agreement without regard to the license status of the
person acquiring the fuel from the supplier, except deliveries from
out-of-state terminals to licensed bonded importers, the point or
terms of sale, or the character of delivery.
F. Each supplier who elects to precollect tax under this act
agrees to waive any defense that the state lacks jurisdiction to
require collection on all out-of-state sales by such person as to
which the person had knowledge that the shipments were destined for
this state and that this state imposes the requirement pursuant to
this subsection under its general police powers to regulate the
movement of motor fuels.
G. Each supplier who elects to precollect tax pursuant to this
act shall not be subject to any civil penalties or interest imposed
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pursuant to this act for any corrections resulting from a diversion
of the motor fuel from the original destination as represented by the
purchaser or the agent of the purchaser. However, the supplier and
exporter under this subsection may, by mutual agreement, permit the
supplier to assume the liability of the exporter and adjust the taxes
of the exporter payable to the supplier.
Added by Laws 1996, c. 345, § 19, eff. Oct. 1, 1996.
§68-500.20. Precollection and remittance of tax by suppliers.
A. The tax imposed by Sections 500.4 and 500.4B of this title,
measured by motor fuel removed by a licensed supplier from a terminal
or refinery in this state other than a bulk transfer, shall be
precollected and remitted on behalf of the retail consumers to the
state by the supplier, as shown in the records of the terminal
operator, who removes the taxable gallons.
B. The supplier, and each reseller, shall list the amount of tax
as a separate line item on all invoices or billings.
C. All tax to be paid by a supplier with respect to gallons
removed on the account of the supplier during a calendar month shall
be due and payable on or before the twentieth day of the following
month unless such day falls upon a weekend or state or banking
holiday in which case the liability would be due the next succeeding
business day.
D. A supplier shall remit any late taxes remitted to the
supplier by an eligible purchaser and shall timely notify the
Commission of any late remittances if that supplier has previously
given notice to the Commission of an uncollectible tax amount
pursuant to subsection B of Section 500.24 of this title. For the
purposes of reporting a payment received on previously claimed
uncollectible taxes, any payments made to a supplier on a debt or
account shall be applied first proportionally to the gallons sold and
the tax thereon, and secondly to interest, service charges, and any
other charges.
Added by Laws 1996, c. 345, § 20, eff. Oct. 1, 1996. Amended by Laws
2003, c. 472, § 9; Laws 2019, c. 169, § 2, eff. Nov. 1, 2019.
§68-500.21. Joint and several liability of termianl operators -
Remittance of tax by terminal operators.
The terminal operator of a terminal in this state is jointly and
severally liable for the tax imposed under Section 4 of this act and
shall remit payment to this state upon discovery of either of the
following conditions:
1. The supplier, with respect to the motor fuel, is a person
other than the terminal operator and is not a licensed supplier.
However, the terminal operator shall be relieved of liability if the
terminal operator establishes all of the following:
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a. the terminal operator has a valid terminal operator's
license issued for the facility from which the motor
fuel is withdrawn,
b. the terminal operator has an unexpired notification
certificate from the supplier as required by the
Commission or the Internal Revenue Service, and
c. the terminal operator has no reason to believe that any
information on the certificate is false; or
2. In connection with the removal of diesel fuel that is not
dyed and marked in accordance with Internal Revenue Service
requirements, the terminal operator provides any person with any bill
of lading, shipping paper, or similar document indicating that the
diesel fuel is dyed and marked in accordance with Internal Revenue
Service requirements.
Added by Laws 1996, c. 345, § 21, eff. Oct. 1, 1996.
§68-500.22. Election by eligible purchasers to defer motor fuel tax
remittances.
Each supplier and bonded importer who sells motor fuel shall
precollect and remit on behalf of and from the purchaser the motor
fuel tax imposed under Section 500.4 of this title. At the election
of an eligible purchaser, which notice shall be evidenced by a
written statement from the Commission as to the purchaser eligibility
status as determined under Section 500.23 of this title, the seller
shall not require a payment of motor fuel tax on transport truck
loads from the purchaser sooner than two (2) business days prior to
the date on which the tax is required to be remitted by the supplier
or bonded importer under Section 500.20 of this title. This election
shall be subject to a condition that the remittances by the eligible
purchaser of all amounts of tax due the seller shall be paid on the
basis of:
1. Ninety-eight and four-tenths percent (98.4%) for gasoline
until July 1, 2022; thereafter remittance shall be paid on the basis
of one hundred percent (100%); and
2. Ninety-eight and one-tenth percent (98.1%) for diesel fuel
until July 1, 2022; thereafter remittance shall be paid on the basis
of one hundred percent (100%),
which shall be paid by electronic funds transfer on or before the
second preceding day prior to the date of the remittance by the
supplier to the Commission, and the election by the eligible
purchaser under this section may be terminated by the seller if the
eligible purchaser does not make timely payments to the seller as
required by this section.
Added by Laws 1996, c. 345, § 22, eff. Oct. 1, 1996. Amended by Laws
2017, c. 237, § 1, eff. Nov. 1, 2017.
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§68-500.23. Election to defer motor fuel tax remittances -
Rescission of eligibility and election by Commission.
A. Each purchaser that desires to make an election under Section
500.22 of this title shall submit a request to the Oklahoma Tax
Commission for approval, setting forth such information as the Tax
Commission may require.
B. The Tax Commission may require a purchaser which pays the tax
to a supplier to file with the Tax Commission a surety bond payable
to the state, upon which the purchaser is the obligor or other
financial security, in an amount satisfactory to the Tax Commission.
The Tax Commission may require that the bond indemnify the Tax
Commission against uncollectible tax credits claimed by the supplier
under Section 500.24 of this title.
C. The Tax Commission shall have the authority to rescind a
purchaser's eligibility and election to defer motor fuel tax
remittances after a hearing and upon a showing of good cause,
including failure to make timely tax-deferred payment of tax to a
supplier under Section 500.22 of this title, by sending written
notice to all suppliers or publishing notice of the revocation
pursuant to regulations. The Tax Commission may require further
assurance of the financial responsibility of the purchaser, or may
increase the bond requirement for that purchaser, or any other action
that the Tax Commission may require to ensure remittance of the motor
fuel tax. The Tax Commission shall follow the cancellation
procedures as provided in Section 212 of this title in rescinding
eligible purchaser status.
Added by Laws 1996, c. 345, § 23, eff. Oct. 1, 1996. Amended by Laws
2005, c. 479, § 9, eff. July 1, 2005.
§68-500.24. Suppliers' entitlement to credit for uncollectible
taxes.
A. In computing the amount of motor fuel tax due, the supplier
shall be entitled to a credit against the tax payable the amount of
tax paid by the supplier that has become uncollectible from an
eligible purchaser.
B. The supplier shall provide notice to the Commission of a
failure to collect tax within ten (10) business days following the
date on which the supplier was earliest entitled to collect the tax
from the eligible purchaser under Section 22 of this act.
C. The Commission shall adopt rules establishing the evidence a
supplier must provide to receive the credit.
D. The credit shall be claimed on the first return following the
expiration of the ten-day period as provided in this section if the
payment remains unpaid as of the filing date of that return or the
credit shall be disallowed.
E. The claim for credit shall identify the defaulting eligible
purchaser and any tax liability that remains unpaid.
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F. If an eligible purchaser fails to make a timely payment of
the amount of tax due, the credit of the supplier shall be limited to
the amount due from the purchaser, plus any tax that accrues from
that purchaser for a period of ten (10) days following the date of
failure to pay.
G. No additional credit shall be allowed to a supplier under
this section until the Commission has authorized the purchaser to
make a new election under Section 23 of this act.
Added by Laws 1996, c. 345, § 24, eff. Oct. 1, 1996.
§68-500.25. Remittance of motor fuel taxes by licensed tank wagon
operator-importers.
Each licensed tank wagon operator-importer who is liable for the
tax imposed by this act on nonexempt motor fuel imported by a tank
wagon as to which tax has not previously been paid to a supplier,
shall remit the motor fuel tax for the preceding month's import
activities with the monthly report of activities. The remittance of
all amounts of tax due shall be paid on the basis of ninety-eight and
four-tenths percent (98.4%) for gasoline and ninety-eight and one-
tenth percent (98.1%) for diesel fuel.
Added by Laws 1996, c. 345, § 25, eff. Oct. 1, 1996.
§68-500.26. Remittance by electronic funds transfer required.
All suppliers and bonded importers required to remit the motor
fuel tax shall remit the motor fuel taxes due by electronic fund
transfer acceptable to the Commission. The transfer or payment shall
be made on or before the date the tax is due.
Added by Laws 1996, c. 345, § 26, eff. Oct. 1, 1996.
§68-500.27. Retainage of 0.1% of tax for administrative costs.
Every supplier and permissive supplier which properly remits tax
under this act shall be allowed to retain one-tenth of one percent
(0.1%) of the tax imposed by this act and collected and remitted by
that supplier in accordance with this act to cover the costs of
administration imposed by this act including reporting, audit
compliance, dye injection, and shipping paper preparation.
Added by Laws 1996, c. 345, § 27, eff. Oct. 1, 1996.
§68-500.28. Collection of tax - Liability wholesaler, retailer, end-
user, producer or ultimate consumer or vendor.
A. In the event the tax imposed by Section 500.4 of this title
is not otherwise precollected, the tax shall be collected:
1. Upon the first receipt of motor fuel when received from a
source outside of the state by any wholesaler, retailer or end-user
and the tax is imposed upon, and shall be the liability of, any such
wholesaler, retailer or end-user who first received the motor fuel
into the state;
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2. Upon the first sale or use of motor fuel when produced in
this state by any person and the tax is imposed upon the first sale
or use by such person. The tax is imposed upon, and shall be the
liability of, the producer of the motor fuel; and
3. Upon the first sale of compressed natural gas or liquefied
natural gas by a wholesaler to a retailer or end-user and the tax is
imposed upon, and shall be the liability of any such wholesaler to
remit the same to the Tax Commission on or before the same date and
in the same manner as provided in Section 500.20 of this title.
B. In the event the tax imposed by Section 500.4 of this title
is not otherwise precollected or collected pursuant to the provisions
of subsection A of this section, it shall be collected from the
ultimate consumer in accordance with regulations promulgated by the
Commission, for the use of motor fuel on the highways by any
consumer, unless such person is otherwise exempted pursuant to
paragraphs 5, 6 and 7 of Section 500.10 of this title, upon the
delivery into the fuel supply tank of a highway vehicle of,
including, but not limited to:
1. Any diesel fuel that contains a dye; or
2. Any motor fuel on which a claim for refund has been made.
C. The ultimate vendor of motor fuel, other than a federally
recognized Indian tribe, shall be jointly and severally liable for
the backup tax precollected by subsection A of this section if the
ultimate vendor knows or has reason to know that the motor fuel, as
to which tax imposed by this act has not been paid, is or will be
consumed in a nonexempt use.
Added by Laws 1996, c. 345, § 28, eff. Oct. 1, 1996. Amended by Laws
2006, c. 327, § 3, eff. July 1, 2006; Laws 2011, c. 163, § 5, eff.
Jan. 1, 2012; Laws 2013, c. 375, § 5, eff. Jan. 1, 2014.
§68-500.29. Diversions of motor fuel - Payment of tax.
A. In the event an exporter diverts motor fuel removed from a
terminal in this state from an intended destination outside this
state as shown on the terminal-issued shipping papers to a
destination within this state, the exporter, in addition to
compliance with the notification provided for in Section 46 of this
act, shall notify and pay the tax imposed by Section 4 of this act to
the state upon the same terms and conditions as if the exporter were
an occasional importer licensed under Section 18 of this act. Each
supplier who elects to precollect tax pursuant to this act shall not
be subject to any civil penalties or interest imposed pursuant to
this act for any corrections resulting from a diversion of the motor
fuel from the original destination as represented by the purchaser or
the agent of the purchaser. However, the supplier and exporter under
this subsection may, by mutual agreement, permit the supplier to
assume the liability of the exporter and adjust the taxes of the
exporter payable to the supplier.
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B. In the event that an exporter removes from a bulk plant in
this state motor fuel as to which the tax imposed by this act has
previously been paid or accrued, the exporter may apply for and the
state shall issue a refund of the tax upon a showing of proof of
export satisfactory to the Commission in conformity with Section 11
of this act.
C. In the event that an unlicensed importer diverts motor fuel
from a destination outside this state to a destination inside this
state after having removed the product from a terminal outside this
state, the importer, in addition to compliance with the notification
provided for in Section 46 of this act, shall notify the state and
shall pay the tax imposed by this act to this state upon the same
terms and conditions as if the unlicensed importer were a licensed
occasional importer subject to Section 18 of this act without
deduction for the allowances provided by Section 27 of this act.
However, an importer who has purchased the product from a licensed
supplier may, by mutual agreement with the supplier, permit the
supplier to assume the liability of the importer and adjust the taxes
of the importer payable to the supplier.
D. All licensed importers shall otherwise report and pay tax on
diversions into this state of imported product under Section 18 of
this act in accordance with the rules applicable to that license
class. However, an importer who has purchased the product from a
licensed supplier may, by mutual agreement with the supplier, permit
the supplier to assume the liability of the importer and adjust the
taxes of the importer payable to the supplier.
E. If a monthly report is filed or the amount due is remitted
later than the time required by this act, the tax remitter shall pay
to the Commission all of the motor fuel tax the remitter collected
from the sale of motor fuel during the taxable period in addition to
penalties and interest.
F. In the event of a legal diversion from a destination in this
state to another state, Section 45 of this act shall apply and an
unlicensed exporter diverting the product shall apply for a refund
from this state in conformity with paragraph 2 of Section 10 of this
act and Section 11 of this act. However, a supplier may take a
credit for diversions directed by that supplier for the account of
the supplier. Additionally, the exporter may, by mutual agreement
with the supplier, assign the claim of the exporter to the supplier
for which the supplier may take a credit.
G. In the event that the second state involved in a cross-border
shipment has entered into a multi-state compact with this state, the
diverter shall pay or seek refund only upon the difference in state
taxes with notice to both states upon proof shown of payment to the
actual destination state. The Commission shall periodically
determine procedures for making this adjustment and a list of those
states which meet these criteria.
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Added by Laws 1996, c. 345, § 29, eff. Oct. 1, 1996.
§68-500.30. Deferred payment by vendors without eligible purchaser.
A. The final report required by Section 40 of this act shall be
accompanied by payment of the liability of the final month except as
otherwise provided in this section.
B. Any motor fuel vendor who possessed a license to sell motor
fuel at wholesale or at retail prior to the effective date of this
act who is ineligible to elect eligible purchaser status, or who
otherwise does not apply for or does not receive eligible purchaser
status under Section 23 of this act, may in the alternative elect to
make payment of the tax calculated pursuant to the final report
provided in Section 40 of this act if the tax is paid in two equal
installments beginning twelve (12) months after the effective date of
this act and subject to regulations promulgated by the Commission.
C. If a person elects under subsection B of this section to
defer payment, the person shall not be eligible to claim eligible
purchaser status under Section 23 of this act for a period of thirty-
six (36) months following the election under subsection B of this
section.
Added by Laws 1996, c. 345, § 30, eff. Oct. 1, 1996.
§68-500.31. Blending untaxed materials with taxed fuels - Remittance
of tax.
A. Each person blending untaxed materials, including
blendstocks, fuel grade ethanol and additives with motor fuels as to
which tax has already been paid or accrued shall remit the tax
imposed by this act.
B. Any consumer liable for the tax payable under subsection A of
this section shall remit the tax directly to the Commission within
thirty (30) days of the blending event in accordance with regulations
promulgated by the Commission.
Added by Laws 1996, c. 345, § 31, eff. Oct. 1, 1996.
§68-500.32. Importation of motor fuel in tank wagons - Destination
within 25 miles of border - Remittance of tax.
Subject to gallonage limits and other conditions established by
the Commission, the Commission shall provide for the payment of tax
imposed by this act by a person importing gasoline or diesel motor
fuel from a bulk plant in another state in a tank wagon if the
destination of that vehicle does not exceed twenty-five (25) miles
from the border of this state.
Added by Laws 1996, c. 345, § 32, eff. Oct. 1, 1996.
§68-500.33. Licenses.
A. Each supplier engaged in business in this state as a supplier
shall first obtain a supplier's license.
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B. Any person who desires to precollect the tax imposed by this
act as a supplier and who meets the definition of a permissive
supplier may obtain a permissive supplier's license. Application for
or possession of a permissive supplier's license shall not in itself
subject the applicant or licensee to the jurisdiction of this state
for any other purpose than administration and enforcement of this
act.
C. Each terminal operator, other than a supplier licensed under
subsection A of this section, engaged in business in this state as a
terminal operator shall first obtain a terminal operator's license
for each terminal site.
D. Each person, except suppliers, desiring to export motor fuel
to a destination outside of this state shall first obtain an
exporter's license. The state shall require that any exporter who
exports product to another state without first paying the motor fuel
tax of that destination state to the supplier shall first obtain an
exporter's license.
E. Each person who is not licensed as a supplier or bonded
importer shall obtain a transporter's license before transporting
motor fuel by whatever manner from a point outside this state to a
point inside this state, or from a point inside this state to a point
outside this state, regardless of whether the person is engaged for
hire in interstate commerce or for hire in intrastate commerce.
F. 1. Each person desiring to deliver motor fuel into this
state on behalf of such person, for the account of that person, or
for resale to a purchaser in this state, from another state in a fuel
transport truck or in a pipeline or barge shipment into storage
facilities other than a qualified terminal, shall first make
application for and obtain either an occasional importer's license,
or a bonded importer's license.
2. Paragraph 1 of this subsection shall not apply to persons who
exclusively import motor fuel which is exempted because in accordance
with paragraph 16 of Section 500.10 of this title it has been dyed.
3. Paragraph 1 of this subsection shall not apply to persons who
import nonexempt motor fuels meeting the following conditions:
a. all of the motor fuel is subject to one or more tax
precollection agreements with suppliers as provided
under Section 500.19 of this title,
b. all of the motor fuel tax precollected by the supplier
is expressly evidenced on the terminal-issued shipping
paper as more specifically provided under Section
500.44 of this title, and
c. the Commission has determined that all border states
have adopted terminal reporting requirements adequate
for the mutual enforcement of this act.
4. A person desiring to import motor fuel to a destination in
this state from another specific terminal source state, and who has
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not entered into an agreement to prepay the motor fuel tax of this
state to the supplier or permissive supplier with respect to the
imports, shall obtain a valid occasional importer's license, or
subject to the bonding requirements of subsection B of Section 500.35
of this title, a valid bonded importer's license under paragraph 1 of
this subsection. In either event, the person shall:
a. obtain an import verification number from the
Commission no sooner than twenty-four (24) hours prior
to entering the state for each separate import into
this state, but in any event the number shall be
obtained prior to entering this state, and
b. display the handwritten import verification number on
the terminal-issued shipping document required under
Section 500.50 of this title, and
c. comply with the payment requirements under Section
500.18 of this title, whichever is applicable.
5. The importers' licenses issued pursuant to this section shall
be specific to each source of supply state, and in the event that the
other terminal source of supply state shall have adopted reciprocal
legislation, or a multi-state compact, providing for collection of
destination state tax by the terminal supplier in accordance with
terminal-issued shipping papers designating the intended state of
destination, then the importer shall be ineligible for a license to
import motor fuel outside the bulk transfer system from the other
state, and any license to so import from the other state shall be
rendered invalid.
G. Each person who is an importer of motor fuel into this state
by a tank wagon operating out of or controlling a bulk plant in
another state, if the destination of that tank wagon is within
twenty-five (25) miles of the border of this state, shall make
application for and obtain a license from the Commission prior to
engaging in such importation activities. However, registration as a
tank wagon operator-importer shall not constitute authorization of
such persons to acquire nonexempt motor fuel free of the tax imposed
by this act at a terminal either within this state or without this
state for direct delivery to a location in this state. Any person
who possesses a valid importer's license shall be eligible as a tank
wagon operator-importer without issuance of a separate license
provided the importer also operates one or more bulk plants outside
this state. Operators of a tank wagon delivering a product into this
state more than twenty-five (25) miles from the border shall be
required to apply for an importer's license under subsection F of
this section.
H. 1. Each person who engages in the business of selling motor
fuel, compressed natural gas, or liquefied natural gas at wholesale
or retail, or storing or distributing motor fuel, compressed natural
gas, or liquefied natural gas for resale within this state, shall
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first obtain a fuel vendor license which shall be operative for all
locations controlled or operated by that licensee in this state or in
any other state from which the person removes fuel for delivery and
use in this state.
2. Each fuel vendor shall maintain detailed records of all
purchases and sales for a period of not less than three (3) years.
3. All fuel vendor records shall be maintained in English and
Arabic numerals or language acceptable to electronic formats.
4. The Commission may, in its discretion, exempt from paragraph
1 of this subsection any or all classes of persons who possess a
valid supplier, terminal operator, carrier, importer, tank wagon
operator or exporter license.
Added by Laws 1996, c. 345, § 33, eff. Oct. 1, 1996. Amended by Laws
2011, c. 163, § 6, eff. Jan. 1, 2012; Laws 2013, c. 375, § 6, eff.
Jan. 1, 2014.
§68-500.34. License application process.
A. Each application for a license under this act shall be made
upon a form prepared and furnished by the Commission. It shall be
subscribed to by the applicant and shall contain the information as
the Commission may reasonably require for the administration of this
act, including the applicant's federal identification number and,
with respect to the applicant for an exporter's license, a copy of
the applicant's license to purchase or handle motor fuel tax free in
the specified destination state or states for which the export
license is to be issued.
B. The Commission shall investigate each applicant for a license
under this act. No license shall be issued if the Commission
determines that any one of the following exists:
1. The application is not filed in good faith;
2. The applicant is not the real party in interest;
3. The license of the real party in interest has been revoked
for cause;
4. Any good cause the Commission may determine;
5. With respect to an exporter's license, the applicant is not
licensed in the intended specific state(s) of destination; or
6. The applicant has a prior conviction for motor fuel tax
evasion.
C. Applicants, including corporate officers, partners, and
individuals, for a license issued by the Commission may be required
to submit their fingerprints to the Commission at the time of
applying. Officers of publicly held corporations and their
subsidiaries shall be exempt from this fingerprinting provision.
Persons, other than applicants for an importer's license, who
possessed licenses issued under a predecessor statute continuously
for three (3) years prior to the effective date of this act shall
also be exempt from this provision. Fingerprints required by this
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section must be submitted on forms prescribed by the Commission. The
Commission may forward to the Federal Bureau of Investigation or any
other agency for processing all fingerprints submitted by license
applicants. The receiving agency shall issue its findings to the
Commission. The Commission, or another state agency, may maintain a
file of fingerprints.
Added by Laws 1996, c. 345, § 34, eff. Oct. 1, 1996.
§68-500.35. Bond - Alternative proof of financial responsibility -
Qualifications of bond - Financial statements and inquiry - New bond
required - Release of existing bond.
A. 1. Terminal operators shall be required to post a bond of
not less than three (3) months potential tax liability based on the
number of gallons handled as estimated by the Commission, but in no
event shall the bond be more than Five Hundred Thousand Dollars
($500,000.00).
2. Exporters shall be required to post a bond of not less than
three (3) months potential tax liability based on the number of
gallons handled as estimated by the Commission, but in no event shall
the bond be more than One Million Dollars ($1,000,000.00).
3. Transporters shall be required to post a bond of not less
than three (3) months potential tax liability based on the number of
gallons handled as estimated by the Commission, but in no event shall
the bond be more than One Hundred Thousand Dollars ($100,000.00).
4. Tank wagon importers shall be required to post a bond of not
less than three (3) months potential tax liability based on the
number of gallons handled as estimated by the Commission, but in no
event shall the bond be more than Fifty Thousand Dollars
($50,000.00).
B. Suppliers and bonded importers shall be required to post a
bond of not less than three (3) months potential tax liability based
on the number of gallons handled as estimated by the Commission, but
in no event shall the bond be less than One Hundred Thousand Dollars
($100,000.00) nor more than Two Million Dollars ($2,000,000.00). An
applicant may alternatively show proof of financial responsibility in
the following amounts in lieu of posting of bond or in lieu of
posting of the full amount of bond, which shall constitute evidence
of financial responsibility in the absence of circumstances
indicating the Commission is otherwise at risk with respect to
collection of taxes from the applicant:
1. Proof of Five Million Dollars ($5,000,000.00) net worth shall
constitute evidence of financial responsibility in lieu of posting of
bond;
2. Proof of Two Million Five Hundred Thousand Dollars
($2,500,000.00) net worth shall constitute financial responsibility
in lieu of posting one-half (1/2) of the bond; and
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3. Proof of One Million Two Hundred Fifty Thousand Dollars
($1,250,000.00) net worth shall constitute financial responsibility
in lieu of posting one-fourth (1/4) of the bond.
C. If the applicant files a bond, the bond shall:
1. Be with a surety company approved by the Commission which may
be an affiliate in the business of assuring such obligations;
2. Name the applicant as the principal and the state as the
obliged; and
3. Be on forms prescribed by the Commission.
D. The Commission may, at the reasonable discretion of the
Commission, require a licensee, or an applicant, to furnish current
verified, financial statements. The Commission may make independent
inquiry into the financial condition of the applicant and, in any
case, is not required to accept as accurate financial statements
which have not been certified or independently audited. If the
Commission determines that a financial condition of a licensee
warrants an increase in the bond or cash deposit, the Commission may
require the licensee to furnish an increased bond or cash deposit.
E. 1. The Commission may require a licensee to file a new bond
with a satisfactory surety in the same form and amount if:
a. liability upon the previous bond is discharged or
reduced by a judgment rendered, payment made, or
otherwise disposed of, or
b. in the opinion of the Commission, any surety on the
previous bond becomes unsatisfactory.
If the new bond is unsatisfactory, the Commission shall cancel the
license. If the new bond is satisfactorily furnished, the Commission
shall release in writing the surety on the previous bond from any
liability accruing after the effective date of the new bond.
2. If a licensee has a cash deposit with the Commission and the
deposit is reduced by a judgment rendered, payment made, or otherwise
disposed of, the Commission may require the licensee to make a new
deposit equal to the amount of the reduction.
F. 1. If the Commission reasonably determines that the amount
of the existing bond or cash deposit is insufficient to ensure
payment to the state of the tax and any penalty and interest for
which the licensee is or may become liable, the licensee shall, upon
written demand of the Commission, file a new bond or increase the
cash deposit. The Commission shall allow the licensee at least
fifteen (15) days to secure the increased bond or cash deposit.
2. The new bond or cash deposit shall meet the requirements set
forth in this act.
3. If the new bond or cash deposit required under this section
is unsatisfactory, the Commission shall cancel the license.
G. 1. Sixty (60) days after making a written request for
release to the Commission, the surety of a bond furnished by a
licensee shall be released from any liability to the state accruing
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on the bond after the sixty-day period. The release does not affect
any liability accruing before the expiration of the sixty-day period.
2. The Commission shall promptly notify the licensee furnishing
the bond that a release has been requested. Unless the licensee
obtains a new bond that meets the requirements of this act and files
with the Commission the new bond within the sixty-day period, the
Commission shall cancel the license.
3. Sixty (60) days after making a written request for release to
the Commission, the cash deposit provided by a licensee shall be
canceled as security for any obligation accruing after the expiration
of the sixty-day period. However, the Commission may retain all or
part of the cash deposit for up to three (3) years and one (1) day as
security for any obligations accruing before the effective date of
the cancellation. Any part of the deposit not retained by the
Commission shall be released to the licensee. Before the expiration
of the sixty-day period, the licensee shall provide the Commission
with a bond that satisfies the requirements of this act or the
Commission shall cancel the license.
4. Any licensee who has filed a bond or other security under
this act is entitled, on request, to have the Commission return,
refund, or release the bond or security if, in the judgment of the
Commission, the licensee has continuously complied with the
provisions of this act for the previous three (3) consecutive years.
However, if the Commission determines that the revenues of the state
would be jeopardized by the return, refund or release of bond or
security, the Commission may elect to retain the bond or security, or
having released such, may reimpose a requirement for bond or security
to protect the revenues of this state. The decision of the
Commission to not release a bond or security may be reviewed, after
application by the licensee, pursuant to the Administrative
Procedures Act.
H. In the event any applicant for a license applies for more
than one license pursuant to this act, the applicant shall not be
required to post a bond for each license, but shall be required to
post the bond for the license which requires the greatest amount of
bond.
Added by Laws 1996, c. 345, § 35, eff. Oct. 1, 1996.
§68-500.36. Issuance of licenses - Duration - Nontransferability -
Display - Surrender - Notice of discontinuance, sale or transfer of
business.
A. If the applicant and bond are approved, the Commission shall
issue a license and as many copies as the licensee has places of
business for which a license is required.
B. A license is valid until suspended, revoked for cause, or
canceled.
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C. No license is transferable to another person or to another
place of business. For purposes of this section, a transfer of a
majority interest in a business association, other than a publicly
held association, including corporations, partnerships, trusts, joint
ventures and any other business association shall be deemed to be a
transfer of any license held by the business association to another
person. Any substantial change in ownership of a business
association, other than a publicly held business association, shall
be reported to the Commission pursuant to rules promulgated by the
Commission.
D. Each license shall be preserved and conspicuously displayed
at the place of business for which it is issued. The Commission
shall have authority to waive this requirement for any class of
licensee in its discretion.
E. Upon the discontinuance or relocation of the business, the
license issued for the location shall be immediately surrendered to
the Commission.
F. Whenever any person licensed to do business under this act
discontinues, sells, or transfers the business, the licensee shall
immediately notify the Commission in writing of the discontinuance,
sale, or transfer. The notice shall give the date of discontinuance,
sale, or transfer and in the event of the sale or transfer of the
business, the name and address of the purchaser or transferee. The
licensee shall be liable for all taxes, interest, and penalties that
accrue or may be owing and any criminal liability for misuse of the
license that occurs prior to issuance of the notice.
Added by Laws 1996, c. 345, § 36, eff. Oct. 1, 1996.
§68-500.37. Supplier reports.
A. For the purpose of determining the amount of precollected
motor fuel tax due, every supplier shall file with the Commission, on
forms prescribed and furnished by the Commission, a verified
statement. The Commission may require the reporting of any
information reasonably necessary to determine the amount of
precollected motor fuel tax due.
B. The reports required by this section shall be filed with
respect to information for the preceding calendar month on or before
the twenty-seventh day of the current month.
C. The supplier report required by this section shall include
the following information with respect to billed gallons of motor
fuel, for all products in the aggregate provided the supplier shall
identify if billed gallon is net or gross:
1. Removal of gallons of motor fuel by the reporting supplier
from the bulk transfer/terminal system in this state as to which the
tax imposed by this act has been precollected or accrued by the
reporting supplier;
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2. Removal of gallons of diesel fuel or heating oil from
terminals in this state by the reporting supplier, tax exempt, as to
which dye has been added in accordance with paragraph 16 of Section
10 of this act;
3. Removal of gallons of motor fuel from terminals in this state
by the reporting supplier, tax exempt, for export from this state by
that supplier, sorted by state of destination;
4. Removal of gallons of motor fuel from terminals in this state
by the reporting supplier, tax exempt, for sale to licensed
exporters, sorted by state of destination;
5. Removal of gallons of motor fuel from terminals within this
state for sale by the reporting supplier directly to the United
States government or any agency or instrumentality thereof;
6. Removal of gallons of motor fuel from terminals within this
state for sale by the reporting supplier directly to consumers other
than the federal government, or any agencies and instrumentalities
thereof, for any other exempt use for which the consumers have
properly assigned refund claims to the ultimate vendor and each
distributor in the chain including the reporting supplier;
7. Total removals in this state;
8. Removal of gallons of motor fuel from a terminal in another
state by the reporting supplier, for sale to a licensed importer, tax
exempt, for import into this state by that licensed importer;
9. Removal of gallons of motor fuel from a terminal in another
state by the reporting supplier for import other than by bulk
transfer by that supplier into this state, or for sale by the
reporting supplier to a person for import into this state by that
person, and in either case, as to which the tax in this state was
accrued by the reporting supplier at the time of removal from the
out-of-state terminal;
10. Removal of gallons of diesel fuel or heating oil from a terminal
in another state by the reporting supplier, for import or for sale
for import into this state, as to which dye has been added in
accordance with paragraph 16 of Section 10 of this act;
11. Total removals from out-of-state terminals with this state as
the state of destination;
12. Corrections made by the supplier pursuant to Section 17 of this
act for changes in destination state which affect the tax liability
of the supplier or the customer of the supplier to this state; and
13. Such other information which the Commission in its discretion
determines is reasonably required to determine tax liability under
this act.
D. Every licensed supplier or permissive supplier shall
separately disclose and identify, in a written statement to the
Commission with the supplier or permissive supplier report, any
removal and sale from the bulk transfer/terminal system in another
state by that supplier to a person other than a licensed supplier,
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permissive supplier or importer of gallons of motor fuel, other than
diesel fuel dyed in accordance with paragraph 16 of Section 10 of
this act, and which gallons are destined for this state, as shown by
the terminal-issued shipping paper, and as to which gallons the tax
imposed by this act has not been collected or accrued by the supplier
upon the removal. Any person who knowingly violates or knowingly
aids or abets another to violate this provision shall be guilty of a
misdemeanor and shall, upon conviction, be fined not more than One
Thousand Dollars ($1,000.00), or shall be sentenced to a term of not
more than one (1) year in the county jail, or both such fine and
imprisonment.
E. Each supplier shall separately identify each sale of K-1
kerosene, other than dyed diesel fuel, sold free of tax in accordance
with reporting requirements established by the Commission.
Added by Laws 1996, c. 345, § 37, eff. Oct. 1, 1996.
§68-500.38. Statement of operations - Licensed occasional importers,
licensed bonded importers and licensed tank wagon importers.
A. Each licensed occasional importer and each licensed bonded
importer shall file with the Commission by the twenty-seventh day of
each month a verified sworn statement of operations within this state
including:
1. Taxable gallons tax prepaid to a supplier upon removal from
an out-of-state terminal;
2. With regard to a licensed occasional importer, taxable
gallons subject to the three-day payment rule as set forth in Section
500.18 of this title sorted by source state, by supplier, and by
terminal or bulk plant location;
3. With regard to a licensed bonded importer, taxable gallons
subject to tax remittance by the bonded importer according to Section
500.18 of this title, sorted by source state, by supplier, and by
terminal or bulk plant;
4. Such other information with respect to the source and means
of transportation of nonexempt motor fuel as the Commission in its
discretion may require on forms prescribed and furnished by the
Commission. However, the Commission may waive any portion or all of
the reporting requirements if it determines that border states have
adopted and implemented reciprocal terminal report requirements
adequate to assure the Commission that it receives complete
information in respect of motor fuel removed by and on behalf of
suppliers from terminals in border states which is destined for this
state.
B. Each licensed tank wagon importer shall file with the
Commission by the twenty-fifth day of each month a verified sworn
statement of operations within this state and such other information
in respect of the source and means of transportation of nonexempt
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motor fuel as the Commission in its discretion may require on forms
prescribed and furnished by the Commission.
C. A person who knowingly violates or knowingly aids and abets
another to violate this section shall be guilty of a misdemeanor and
shall, upon conviction, be fined not more than One Thousand Dollars
($1,000.00), or shall be sentenced to a term of not more than one (1)
year in the county jail, or shall be punishable by both such fine and
imprisonment.
Added by Laws 1996, c. 345, § 38, eff. Oct. 1, 1996. Amended by Laws
1998, c. 385, § 6, eff. Nov. 1, 1998.
§68-500.39. Statement of operations by terminal operators -
Inventory records - Reports by out-of-state terminal operators.
A. Each person operating a terminal in this state shall file
with the Commission by the twenty-seventh day of each month a sworn
statement of operations within this state for each terminal within
this state, including the information set out in subsection B of this
section, on forms prescribed and furnished by the Commission. The
Commission may require the reporting of any information it considers
reasonably necessary in addition to that required under subsection B
of this section.
B. The monthly terminal report required by this section shall
include the following information for each terminal location in this
state:
1. Terminal code assigned by the Internal Revenue Service;
2. Total inventory at the terminal operated by the terminal
operator;
3. Detailed schedules of receipts by shipment including:
a. carrier name or alpha code,
b. carrier federal identification number,
c. mode of transportation,
d. date received,
e. document number,
f. net gallons received, and
g. product type;
4. Detailed schedules of removals by shipment including:
a. carrier name or alpha code,
b. carrier federal identification number,
c. mode of transportation,
d. destination state,
e. supplier removing the fuel,
f. supplier federal identification number,
g. date removed from terminal,
h. document number,
i. net gallons, and
j. gross gallons;
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In the event the Internal Revenue Service provides a common system of
assigning to carriers alpha-numeric codes in lieu of names, then this
data will be required in lieu of carrier names.
C. For purposes of reporting and determining tax liability under
this act, every licensee shall maintain inventory records as required
by the Commission.
D. In the event that the source state does not require a
terminal report which provides data substantially similar to that
required by this section, any terminal operator subject to the police
power of this state, and who operates a terminal outside that state,
shall provide a report of gallons removed as to which the operator
issued a shipping paper indicating this state as the destination
state consistent with the information required under this section.
This provision shall be ineffective if substantially similar data is
readily available to this state from a federal terminal report or
from the source state.
Added by Laws 1996, c. 345, § 39, eff. Oct. 1, 1996.
§68-500.40. Final report and payment of tax upon termination of
business or cancellation of license - Termination of certain licenses
- Application by former licensees for eligible purchaser status.
A. Every licensee shall, upon the discontinuance, sale, or
transfer of the business or upon the cancellation, revocation or
termination by law of a license under subsection C or F of Section 36
of this act, or as otherwise provided, within thirty (30) days, make
a report as required under this act marked "Final Report", and shall
pay all motor fuel taxes and penalties that may be due the state
except as may otherwise be provided by law.
B. The payment shall be made to the Commission in accordance
with Section 30 of this act.
C. For purposes of this section, any person who was licensed to
remit motor fuel taxes by this state prior to the effective date of
this act and who is not licensed as a supplier under this act shall
be deemed to have the license terminated under this section as of the
effective date of this act.
D. Any former licensee shall be given the opportunity to apply
for eligible purchaser status as provided in Sections 22 and 23 of
this act, prior to the effective date of this act. Should such
determination not be complete before the effective date, collection
of tax shown on the final report of the former license shall be
delayed until the determination is complete. However, the final
report shall be due not later than thirty (30) days after a denial of
eligible purchaser status under Section 30 of this act becomes final.
Added by Laws 1996, c. 345, § 40, eff. Oct. 1, 1996.
§68-500.41. Exporter reports.
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A. Each person licensed as an exporter shall file by the twenty-
seventh day of each month reports with the Commission on forms
prescribed and furnished by the Commission concerning the amount of
motor fuel exported from this state.
B. The report shall contain the following information with
respect to motor fuel other than diesel fuel dyed in accordance with
the Internal Revenue Code:
1. All shipments of motor fuel removed from a terminal in this
state for direct delivery outside of this state by the licensed
exporter, sorted by state of destination;
2. The gallons delivered to taxing jurisdictions outside this
state out of bulk plant storage, and whether by transport truck or
tank wagon;
3. The name and federal employer identification number of the
person receiving the exported motor fuel from the exporter;
4. The date of the shipments; and
5. The carrier name or alpha code and carrier federal
identification number.
The Commission may, in addition, require the reporting of any other
information it considers reasonably necessary to the enforcement of
this act. The Commission may waive this reporting requirement if it
finds the reports unnecessary to the administration of this act.
Added by Laws 1996, c. 345, § 41, eff. Oct. 1, 1996.
§68-500.42. Licensed transporter reports.
A. Each person licensed as a transporter in this state shall
file monthly reports with the Commission on forms prescribed and
furnished by the Commission concerning the amount of motor fuel
transported within or across the borders of this state. However,
transport truck operations exclusively within the state and those
transport trucks operated by a supplier are not reportable. If a
transporter fails to make the reports required by this section, the
person is subject to a civil penalty of One Thousand Dollars
($1,000.00) for each violation, as reasonably determined by the
Commission.
B. The reports required by this section are for information
purposes only and the Commission may waive the filing of the reports
if the reports are unnecessary for the proper administration of this
act. This section shall cease to be effective if substantially
similar data is available from federal government sources including a
federal terminal report.
Added by Laws 1996, c. 345, § 42, eff. Oct. 1, 1996.
§68-500.43. Payment of tax by consumer.
In the event the tax imposed by this act is not precollected and
must be collected from the consumer in accordance with Section 28 of
this act, the tax is due and payable by the consumer on the first day
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of each month for the preceding calendar month, and if not paid on or
before the 15th day of the following month, shall be delinquent. The
consumer shall file with the Commission, on forms furnished by the
Commission, a return verified by affidavit showing in detail the
total purchase price of the motor fuel, the number of gallons
purchased, the price per gallon, the location of the purchase and any
other information the Commission may deem reasonably necessary. With
each return, the consumer shall remit to the Commission the amount of
tax shown on the return to be due. Reports timely mailed shall be
considered timely filed. If a report is not timely filed, interest
shall be charged from the date the report should have been filed
until the report is actually filed.
Added by Laws 1996, c. 345, § 43, eff. Oct. 1, 1996.
§68-500.44. Shipping documents - Contents - Manual preparation -
Certain bulk plant operators exempted - Split loads - Posting of
notice - Penalties.
A. Each person operating a refinery, terminal, or bulk plant in
this state shall prepare and provide to the driver of every fuel
transportation vehicle receiving motor fuel into the vehicle storage
tank at the facility a shipping document setting out on its face:
1. Identification by address of the terminal or bulk plant from
which the motor fuel was removed;
2. The date the motor fuel was removed;
3. The amount of motor fuel removed, actual gallons and net
gallons;
4. The state of destination as represented to the terminal
operator by the transporter, the shipper or the agent of the shipper;
and
5. Any other information reasonably required by the Commission
for the enforcement of this act.
B. A terminal operator may manually prepare shipping papers if
the terminal does not have the ability to prepare automated shipping
papers or as a result of extraordinary unforeseen circumstances,
including acts of God, which temporarily interfere with the ability
of the terminal operator to issue automated machine-generated
shipping papers. However, the terminal operator shall, prior to
manually preparing the papers, provide, in the case of a terminal not
having the ability to prepare automated shipping papers, written
notice to the Commission, or in the case of extraordinary
circumstances, telephonic notice to the Commission and obtain a
service interruption authorization number which the employees of the
terminal operator shall add to the manually prepared papers prior to
removal of each effected transport load from the terminal. The
service interruption authorization number shall be valid for use by
the terminal operator for a period not to exceed twenty-four (24)
hours. If the interruption has not been cured within the twenty-
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four-hour period, additional notice(s) to the Commission shall be
required and interruption authorization number(s) may be issued upon
explanation by the terminal operator satisfactory to the Commission.
If the terminal operator acquires the ability to prepare automated
machine-printed shipping papers, the terminal operator shall notify
the Commission no later than ten (10) days prior to the initial use
of such capability.
C. An operator of a bulk plant in this state delivering motor
fuel into a tank wagon for subsequent delivery to a consumer in this
state shall be exempt from this section. An operator of a bulk plant
in this state shall not be required to identify net gallons on the
shipping documents as provided by this section.
D. A terminal operator may load motor or diesel fuel, a portion
of which fuel is destined for sale or use in this state and a portion
of which fuel is destined for sale or use in another state or states.
However, such split loads removed shall be documented by the terminal
operator by issuing shipping papers designating the state of
destination for each portion of the fuel.
E. Each terminal operator shall post a conspicuous notice
proximately located to the point of receipt of shipping papers by
transport truck operators, which notice shall describe in clear and
concise terms the duties of the transport operator and retail dealer
under Section 45 of this act, provided that the Commission may by
rule or notice establish the language, type, style and format of the
notice.
F. A person who knowingly violates or knowingly aids and abets
another to violate this section with the intent to evade the tax
levied by this act shall be guilty of a misdemeanor and shall, upon
conviction, be fined not more than One Thousand Dollars ($1,000.00),
or be sentenced to a term of not more than one (1) year in the county
jail, or shall be punishable by both such fine and imprisonment.
Added by Laws 1996, c. 345, § 44, eff. Oct. 1, 1996.
§68-500.45. Transporters to carry and follow information in shipping
documents - Shipping documents to be provided to certain outlets -
Retention of shipping documents - Acceptance of delivery without
shipping documents prohibited - Penalties.
A. Each person transporting motor fuel in a fuel transportation
vehicle upon the public highways of this state shall:
1. Carry on board the shipping document issued by the terminal
operator or the bulk plant operator of the facility where the motor
fuel was obtained, whether within or without this state. The
shipping paper shall set out on its face the state of destination of
the motor fuel transported in the vehicle as represented to the
terminal operator at the time the fuel transportation vehicle was
loaded, or as otherwise provided in paragraph 3 of this subsection;
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2. Show and permit duplication of the shipping document by a law
enforcement officer, or representative of the Commission, upon
request, when transporting, holding or off-loading the motor fuel
described in the shipping document;
3. Deliver motor fuel described in the shipping document to a
point in the destination state shown on the face of the document
unless the person or the agent of the person does all of the
following:
a. notifies the Commission before the earlier of removal
from the state in which the shipment originated, or the
initiation of delivery, that the person received
instructions after the shipping document was issued to
deliver the motor fuel to a different destination
state,
b. receives from the Commission a verification number
authorizing the diversion, and
c. writes on the shipping document the change in
destination state and the verification number for the
diversion;
4. Provide a copy of the shipping document to the distributor or
other person who controls the facility to which the motor fuel is
delivered;
5. Meet such other conditions as the Commission may reasonably
require for the enforcement of this act.
The Commission shall provide by regulation for handwritten
designations and alternative procedures for operators of tank wagons
that have received motor fuel at a bulk plant for delivery within or
without this state.
B. Every person transporting motor fuel in vehicles upon the
public highways of this state shall provide the original or a copy of
the terminal-issued shipping document accompanying the shipment to
the operator of the retail outlet, bulk plant or bulk end user bulk
storage facility to which delivery of the shipment was made.
C. Each operator of a motor fuel retail outlet, bulk plant or
bulk end user bulk storage facility shall receive, examine, and
retain for a period of thirty (30) days at the delivery location the
terminal-issued shipping document received from the transporter for
every shipment of motor fuel that is delivered to that location with
record retention of the shipping paper of three (3) years required
off-site. If the delivery location is an unattended location, the
operator may retain the shipping documents at the normal billing
address of the operator.
D. No retail dealer, bulk plant operator, wholesale distributor
or bulk end user shall knowingly accept delivery of motor fuel into
bulk storage facilities in this state if that delivery is not
accompanied by a shipping paper issued by the terminal operator, or
bulk plant operator as provided by regulations, that sets out on its
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face this state as the state of destination of the motor fuel or a
diversion verification number pursuant to Section 46 of this act, and
such other information as is required under Sections 49 and 50 of
this act.
E. Any person who knowingly violates or knowingly aids and abets
another to violate subsection B or D of this section shall be guilty
of a misdemeanor and shall, upon conviction, be fined not more than
One Thousand Dollars ($1,000.00), or shall be sentenced to a term of
not more than one (1) year in the county jail, or shall be punishable
by both such fine and imprisonment.
Added by Laws 1996, c. 345, § 45, eff. Oct. 1, 1996.
§68-500.46. Legitimate diversions or erroneous information on
shipping paper - Relief.
A. The Commission shall promulgate rules for relief in a case
where a shipment of motor fuel is legitimately diverted from the
represented destination state after the shipping paper has been
issued by the terminal operator or where the terminal operator failed
to cause proper information to be printed on the shipping paper.
B. The relief rules shall include a provision requiring that the
shipper, the transporter, or an agent of either provide notification
before the diversion or correction to the Commission if an intended
diversion or correction is to occur, that a verification number be
assigned and manually added to the face of the terminal-issued
shipping paper, and the relief provision shall be consistent with the
refund provisions of this act, including Section 21 of this act.
C. The relief provisions shall establish a protest procedure so
that any person found to be in violation of Section 44 and subsection
C of Section 45 of this act may establish a defense to any civil
penalty imposed under this act for violation of such section or
sections upon establishing substantial evidence satisfactory to the
Commission that the violation was the result of honest error made in
the context of a good faith and reasonable effort to properly account
for and report fuel shipments and taxes.
D. The Commission shall make reasonable efforts to coordinate
with neighboring states and the Federation of Tax Administrators for
the operation of common telephonic diversion verification number
assignment system including the shared burdens thereof.
Added by Laws 1996, c. 345, § 46, eff. Oct. 1, 1996.
§68-500.47. Reliance on certain representations.
The supplier and the terminal operator shall be entitled to rely
for all purposes of this act on the representation by the
transporter, the shipper or the agent of the shipper as to the
intended state of destination and tax-exempt use of the shipper. The
shipper, importer, transporter, agent of the shipper and any
purchaser, not the supplier or terminal operator, shall be jointly
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liable for any tax otherwise due to the state as a result of a
diversion of the motor fuel from the represented destination state.
A terminal operator shall be entitled to rely on the representation
of a licensed supplier with respect to the obligation of the supplier
to precollect tax and the related shipping paper representation to be
as shown on the shipping paper as provided by subsection A of Section
44 of this act.
Added by Laws 1996, c. 345, § 47, eff. Oct. 1, 1996.
§68-500.48. Sale or delivery of motor fuel without payment of taxes
prohibited - Exceptions - Penalties.
A. Except as expressly provided in subsection B of this section,
no person shall sell, use, deliver, or store in this state, or import
for sale, use, delivery or storage in this state, motor fuel as to
which the tax imposed by Section 4 of this act has not been
previously paid to or accrued by either a licensed supplier, or
permissive supplier, at the time of removal from a terminal, or a
licensed importer provided all the conditions of Section 50 of this
act applicable to lawful import by the importer shall have been met.
B. The provisions of subsection A of this section shall not
apply to:
1. A supplier with respect to motor fuel held within the bulk
transfer/terminal system in this state which was manufactured in this
state or imported into this state in a bulk transfer;
2. A consumer with respect to motor fuel placed in the vehicle
supply tank of that person outside of this state;
3. Diesel fuel dyed in accordance with paragraph 16 of Section
10 of this act;
4. Motor fuel in the process of exportation by a supplier or a
licensed exporter in accordance with the shipping papers required by
Section 45 of this act and a statement meeting the requirements of
paragraph 2 of subsection A of Section 49 of this act is shown on the
shipping papers;
5. Gasoline, diesel fuel and kerosene used in aircraft subject
to the conditions and exceptions in paragraph 9 of Section 10 of this
act;
6. Fuel in possession of a consumer as to which a refund has
been issued;
7. Government and other exempt fuel under paragraphs 5, 6 and 7
of Section 10 of this act; or
8. A licensed importer who has met the conditions of Section 49
of this act.
C. A person who violates this section shall be guilty of a
misdemeanor and shall, upon conviction, be fined not more than One
Thousand Dollars ($1,000.00), or be sentenced to a term of not more
than one (1) year in the county jail, or shall be punishable by both
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such fine and imprisonment and shall be subject to the provisions of
Section 59 of this act.
Added by Laws 1996, c. 345, § 48, eff. Oct. 1, 1996.
§68-500.49. Operation of transport truck without shipping paper
prohibited - Violation occurs upon boarding - Advance notification -
Penalties - Seizure.
A. Except as provided in subsections C and D of this section, no
person shall operate a transport truck that is engaged in the
shipment of motor fuel on the public highways of this state without
having on board a terminal-issued shipping paper bearing, in addition
to the requirements of subsection A of Section 45 of this act, a
notation indicating that, with respect to diesel fuel acquired under
claim of exempt use, a statement indicating the fuel is "DYED DIESEL
FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE" for the load or
the appropriate portion of the load.
B. A person is in violation of subsection A of this section upon
boarding the vehicle with a shipping paper which does not meet the
requirements set forth in this section.
C. The Commission may in its discretion provide an advance
notification procedure with respect to documentation for imported
motor fuel as to which the importer is unable to obtain terminal-
issued shipping papers which comply with this section.
D. Any person who knowingly violates any part of this section
shall be guilty of a misdemeanor and shall, upon conviction, be fined
not more than One Thousand Dollars ($1,000.00), or be sentenced to a
term of not more than six (6) months in the county jail, or shall be
punishable by both such fine and imprisonment.
E. The Commission, its appointee, or representative may seize,
confiscate and dispose of any motor fuel which should be accompanied
by a shipping paper meeting the requirements of this section which is
not accompanied by the required shipping paper.
Added by Laws 1996, c. 345, § 49, eff. Oct. 1, 1996.
§68-500.50. Conditions for importers prior to bringing undyed and
untaxed fuel into state - Penalties - Seizure.
A. In the event that an importer acquires motor fuel destined
for this state which has neither been dyed in accordance with the
Internal Revenue Code and the regulations issued thereunder, nor tax
paid to or accrued by the supplier at the time of removal from the
out-of-state terminal, any licensed importer and transporter
operating on behalf of the licensed importer shall meet all of the
following conditions prior to entering motor fuel onto the highways
of this state by loaded transport truck:
1. The importer or the transporter shall have obtained an import
verification number from the Commission not sooner than twenty-four
(24) hours prior to entering this state;
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2. The import verification number shall have been set out
prominently and indelibly on the face of each copy of the terminal-
issued shipping paper carried on board the transport truck;
3. The terminal origin and the name and address of the importer
shall also be set out prominently on the face of each copy of the
terminal-issued shipping paper;
4. The terminal-issued shipping paper data otherwise required by
this act shall be present; and
5. All tax imposed by this act with respect to previously
requested import verification number activity on the account of the
importer or the transporter shall have been timely precollected and
remitted.
B. Any person who knowingly violates or knowingly aids and abets
another to violate this provision shall be guilty of a misdemeanor
and shall, upon conviction, be fined not more than One Thousand
Dollars ($1,000.00), or be sentenced to a term of not more than one
(1) year in the county jail, or shall be punishable by both such fine
and imprisonment and shall be subject to the provisions of Section 59
of this act.
C. The Commission, its appointee, or representative may seize,
confiscate and dispose of any motor fuel which should be accompanied
by a shipping paper meeting the requirement of this section which is
not accompanied by the required shipping paper.
Added by Laws 1996, c. 345, § 50, eff. Oct. 1, 1996.
§68-500.51. Export of motor fuel without license prohibited -
Exemption - Penalties.
A. No person shall export motor fuel from this state unless that
person has obtained an exporter's license or a supplier's license and
can demonstrate proof of export in the form of a destination state
bill of lading.
B. A consumer which exports fuel in a vehicle fuel supply tank
incident to interstate transportation shall be exempt from this
section.
C. Any person who knowingly violates or knowingly aids and abets
another to violate this provision with the intent to evade the tax
levied by this act shall be guilty of a misdemeanor and shall, upon
conviction, be fined not more than One Thousand Dollars ($1,000.00),
or be sentenced to a term of not more than one (1) year in the county
jail, or shall be punishable by both such fine and imprisonment.
Added by Laws 1996, c. 345, § 51, eff. Oct. 1, 1996.
§68-500.52. Use of dyed fuel on public highways prohibited -
Exceptions - Penalties.
A. No person shall operate or maintain a motor vehicle on any
public highway in this state with motor fuel contained in the fuel
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supply tank for the motor vehicle that contains dye as provided under
paragraph 16 of Section 10 of this act.
B. This section does not apply to:
1. Persons operating motor vehicles that have received fuel into
their fuel tanks outside of this state in a jurisdiction that permits
introduction of dyed motor fuel of that color and type into the motor
fuel tank of highway vehicles; or
2. Uses of dyed fuel on the highway which are lawful under the
Internal Revenue Code and regulations thereunder and as set forth in
Section 10 of this act unless otherwise prohibited by this act.
C. Any person who knowingly violates or knowingly aids and abets
another to violate the provisions of this section with the intent to
evade the tax levied by this act shall be guilty of a misdemeanor and
shall, upon conviction, be fined not more than One Thousand Dollars
($1,000.00), or be sentenced to a term of not more than one (1) year
in the county jail, or shall be punishable by both such fine and
imprisonment.
Added by Laws 1996, c. 345, § 52, eff. Oct. 1, 1996.
§68-500.53. Failure to obtain required licenses - Penalties.
No person shall engage in any business activity in this state as
to which a license is required by this act unless the person shall
have first obtained the license. Any person who negligently violates
this section is subject to a civil penalty in the amount of One
Thousand Dollars ($1,000.00). Any person who knowingly violates or
knowingly aids and abets another to violate this section with the
intent to evade the tax levied by this act shall be guilty of a
misdemeanor and shall, upon conviction, be fined not more than One
Thousand Dollars ($1,000.00), or be sentenced to a term of not more
than one (1) year in the county jail, or shall be punishable by both
such fine and imprisonment.
Added by Laws 1996, c. 345, § 53, eff. Oct. 1, 1996.
§68-500.54. Certain statements on shipping papers prohibited.
A. No terminal operator shall imprint, and no supplier shall
knowingly permit a terminal operator to imprint on behalf of the
supplier, any statement on a shipping paper relating to motor fuel to
be delivered to this state or to a state having substantially the
same shipping paper legending requirements with respect to:
1. Any responsibility of the supplier or liability for payment
of the tax imposed by this act; or
2. The tax-paid or tax-collected status of any motor fuel unless
the supplier or representative of the supplier shall have first
provided the terminal operator with a representation or direction to
make the statement on behalf of the supplier.
B. Any terminal operator who shall knowingly imprint any
statement in violation of this section shall be jointly and severally
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liable for all the taxes levied by this act which are not collected
by this state as a result of such actions.
C. Any supplier who knowingly violates this section shall be
jointly and severally liable with the terminal operator.
Added by Laws 1996, c. 345, § 54, eff. Oct. 1, 1996.
§68-500.55. Notice to be provided and posted with dyed diesel fuel.
A notice stating "DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY
FOR TAXABLE USE" shall be:
1. Provided by the terminal operator to any person that receives
dyed diesel fuel at a terminal rack of that terminal operator;
2. Provided by any seller of dyed diesel fuel to its buyer if
the diesel fuel is located outside the bulk transfer/terminal system
and is not sold from a retail pump posted in accordance with the
requirements of paragraph 3 of this section; and
3. Posted by a seller on any retail pump where it sells dyed
diesel fuel for use by its buyer.
The form of notice required under paragraphs 1 and 2 of this section
shall be provided by the time of the removal or sale and shall appear
on shipping papers, bills of lading, and invoices accompanying the
sale or removal of the dyed diesel fuel.
Added by Laws 1996, c. 345, § 55, eff. Oct. 1, 1996.
§68-500.56. Shipping papers to meet tamper-resistant standards.
Each terminal operator in this state and every supplier licensed
by this state for the collection of tax on motor fuel shall cause
terminal-issued shipping papers to meet such tamper-resistant
standards as the Commission may by regulation require including, but
not limited to messages which identify whether shipping papers have
been photocopied, numbering systems, nonreproducible coding and other
devices. However, the Commission may not make any such regulations
effective earlier than twenty-four (24) months after the promulgation
of a final regulation imposing the requirements.
Added by Laws 1996, c. 345, § 56, eff. Oct. 1, 1996.
§68-500.57. Sale or use of dyed diesel fuel for taxable purpose -
Evasion of tax or altering dye in diesel fuel - Joint and several
liability of certain entities, officers and employees.
A. No person shall sell or hold for sale dyed diesel fuel for
any use that the person knows or has reason to know is not a
nontaxable use of the diesel fuel.
B. No person shall use or hold for use any dyed diesel fuel for
a use other than a nontaxable use and the person knew or had reason
to know that the diesel fuel was so dyed.
C. No person shall willfully, with intent to evade tax, alter or
attempt to alter the strength or composition of any dye or marker in
any dyed diesel fuel.
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D. Any business entity, each officer, employee, or agent of the
entity who willfully participates in any act in violation of this
section shall be jointly and severally liable with the entity for the
penalty which shall be the same as imposed pursuant to 26 U.S.C.,
Section 6714.
Added by Laws 1996, c. 345, § 57, eff. Oct. 1, 1996.
§68-500.58. Failure to precollect or timely remit tax - Fraudulent
returns - Operation of motor vehicle in violation of act -
Transporting motor fuel without adequate shipping papers - Terminal
operators failing to meet shipping paper requirements - Penalties.
A. A supplier, permissive supplier, or importer who knowingly
fails to precollect or timely remit tax otherwise required to be paid
over to the Commission pursuant to Section 500.18 or 500.20 of this
title, or pursuant to a tax precollection agreement under Section
500.19 of this title shall be liable for the uncollected tax plus the
appropriate penalties as set forth in Section 217 of this title.
B. If any person liable for the tax under this act files a false
or fraudulent return with the intent to evade the tax, then fifty
percent (50%) of the total amount of any deficiency, in addition to
the deficiency, including interest as provided in Section 217 of this
title, shall be added, collected and paid.
C. Any person operating a motor vehicle in violation of Section
500.45, 500.49 or 500.50 of this title shall be guilty of a
misdemeanor for the first offense and shall, upon conviction, be
fined not more than Five Hundred Dollars ($500.00), or shall be
sentenced to a term of not more than six (6) months in the county
jail, or shall be punishable by both such fine and imprisonment. For
the second and each subsequent offense, violators shall be guilty of
a misdemeanor and shall, upon conviction, be fined not more than One
Thousand Dollars ($1,000.00), or shall be sentenced to a term of not
more than one (1) year in the county jail, or shall be punishable by
both such fine and imprisonment.
D. The Commission shall impose a civil penalty of One Thousand
Dollars ($1,000.00) for the first occurrence of transporting motor
fuel without adequate shipping papers annotated as required under
Section 500.45, 500.49 or 500.50 of this title. Each subsequent
occurrence described in this subsection is subject to a civil penalty
of Five Thousand Dollars ($5,000.00).
E. The Commission may impose a civil penalty against every
terminal operator that fails to meet shipping paper issuance
requirements under Sections 500.21, 500.44 and 500.55 of this title.
The civil penalty imposed on the terminal operator shall be the same
as the civil penalty imposed under subsection D of this section.
Added by Laws 1996, c. 345, § 58, eff. Oct. 1, 1996. Amended by Laws
2002, c. 460, § 38, eff. Nov. 1, 2002.
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§68-500.59. Impoundment, seizure and sale of vehicle and cargo upon
violation of shipping paper requirements - Presumption.
If a person is found operating a motor vehicle in violation of
the shipping paper requirements in Sections 45, 49, 50 and 55 of this
act, the vehicle and its cargo is subject to impoundment, seizure,
and subsequent sale and forfeiture, in accordance with the general
laws of this state respecting seizure and forfeiture. The failure of
the operator of a motor vehicle to have on board, when loaded, the
proper shipping papers with a destination state machine-printed on
its face pursuant to Section 45 of this act or which fails to meet
the descriptive annotation requirements of Sections 49, 50 and 56 of
this act, if applicable, shall be presumptive evidence of a violation
sufficient to warrant impoundment and seizure of the vehicle and its
cargo.
Added by Laws 1996, c. 345, § 59, eff. Oct. 1, 1996.
§68-500.60. Inspections.
A. The Commission, or its appointees, including federal
government employees or persons operating under contract with the
state, upon presenting appropriate credentials may conduct
inspections and remove samples of fuel to determine coloration of
diesel fuel, or to identify shipping paper violations at any place
where taxable fuel is or may be produced, stored or loaded into
transport vehicles. Inspections shall be performed in a reasonable
manner consistent with the circumstances, but in no event is prior
notice required. Inspectors may physically inspect, examine or
otherwise search any tank, reservoir, or other container that can or
might be used for the production, storage, or transportation of fuel.
Inspection may be made of any equipment used for, or in connection
with, the production, storage, or transportation of fuel. Inspectors
may demand to be produced for immediate inspection the shipping
papers, documents and records required to be kept by a person
transporting fuel. The places which may be inspected pursuant to
this section may include, but are not limited to:
1. A terminal;
2. A fuel storage facility that is not a terminal;
3. A retail fuel facility;
4. Highway rest stops; or
5. A designated inspection site. For purposes of this section,
a "designated inspection site" means any state highway or waterway
inspection station, weigh station, agricultural inspection station,
mobile station, or other location designated by the Commission either
fixed or mobile.
B. Inspections to determine violations under this act may be
conducted by the Department of Public Safety, agents of the
Commission, Oklahoma Corporation Commission, motor carrier inspectors
in this state in addition to their duties otherwise defined, and any
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other law enforcement officer through procedures established by the
Commission. Agents of the Commission have the same power and
authority provided to authorized personnel under the applicable
statute.
C. Inspectors may reasonably detain any person or equipment
transporting fuel in or through this state for the purpose of
determining whether the person is operating in compliance with the
provisions of this act and any rules promulgated pursuant to this
act. Detainment may continue for such time only as is necessary to
determine whether the person is in compliance.
Added by Laws 1996, c. 345, § 60, eff. Oct. 1, 1996.
§68-500.61. Audits and examinations - Penalties.
A. The Commission or any authorized deputy, employee, or agent
is authorized to audit and examine the records, books, papers, and
equipment of terminal suppliers, importers, wholesalers, jobbers,
retail dealers, terminal operators, fuel vendors and all private and
common carriers of motor fuel to verify the completeness, truth and
accuracy of any statement or report and ascertain whether or not the
tax imposed by this act has been paid.
B. The Commission shall have the same general authority provided
under subsection A of this section with respect to narrow
transportation sampling audits. However, all fuel vendors and bulk
purchasers of fuel shall make available to the Commission necessary
records with respect to such transaction(s) which the Commission is
attempting to verify during normal business hours at the physical
location of the person in this state, or at the offices of the
Commission if the location at which the records are located is
outside of this state, within three (3) business days after request.
C. The Commission or any appointee, including federal government
employees and persons contracting with the state, may, upon proof of
credentials shown, in the aggregate referred to for purposes of this
section as fuel inspectors, inspect and each fuel vendor, motor fuel
transporter or bulk purchaser shall disclose, immediately upon
request, any shipping paper required by this act to be maintained at
the physical location where the request is made which may include any
place motor fuel is stored or held for sale or transportation.
D. Any person who shall refuse to permit any inspection or audit
authorized by this act shall be subject to a civil penalty of Five
Thousand Dollars ($5,000.00) in addition to any penalty imposed by
any other provision of this act.
E. Any person who refuses, for the purpose of evading tax, to
allow an inspection shall, in addition to being liable for any other
penalties imposed by this act, be guilty of a misdemeanor and shall,
upon conviction, be fined not more than One Thousand Dollars
($1,000.00), or be sentenced to a term of not more than one (1) year
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in the county jail, or shall be punishable by both such fine and
imprisonment.
Added by Laws 1996, c. 345, § 61, eff. Oct. 1, 1996.
§68-500.62. Taxation of motor fuel inventory not taxed under
predecessor statutes.
The tax imposed by Section 4 of this act shall be applicable to
all nonexempt inventory held by any person outside of the bulk
transfer system in this state in quantities which, in the aggregate
with respect to such person, exceed one thousand (1,000) gallons, to
the extent the inventory has not previously been subject to the tax
imposed by this state under the predecessor motor fuel tax statute.
However, no tax shall be payable with respect to motor fuel which is
dyed diesel fuel or held by an exempt user. The inventory tax
imposed on inventory held outside of the bulk transfer system on the
effective date of this act reportable under this section shall be
payable in two equal annual installments beginning twelve (12) months
after the effective date of this act.
Added by Laws 1996, c. 345, § 62, eff. Oct. 1, 1996.
§68-500.63. Sale of motor fuels by Indian tribes.
A. The Legislature hereby finds:
1. Some Indian tribes within the State of Oklahoma are engaged
in the retail sales of motor fuels at locations within their
sovereign territories;
2. Both Indian tribes and the government of the State of
Oklahoma impose motor fuel taxes;
3. By reason of the ruling of the United States Supreme Court in
"Oklahoma Tax Commission v. Chickasaw Nation", 115 S.Ct. 2214 (1995),
the State of Oklahoma does not now collect state motor fuel taxes on
sales made by Indian tribes. The Legislature hereby acknowledges
that, as a matter of federal law, the existing law of the state may
not be used to levy or enforce taxes on certain sales of motor fuel
made by Indian tribes;
4. It is mutually beneficial to the State of Oklahoma and the
federally recognized Indian tribes of this state, exercising their
sovereign powers, to enter into contracts as set forth in subsection
B of this section, for the purpose of limiting litigation on the
issue of state government taxation of motor fuel sales made by Indian
tribes. It is in the interest of this state to resolve disputes
between the state and federally recognized Indian tribes on this
issue by entering into contracts under which the Indian tribes are in
part compensated for any tribal motor fuel tax revenues the Indian
tribes might lose by reason of the adoption and enforcement of this
act. Such mutually beneficial agreements allow both the State of
Oklahoma and the Indian tribes to benefit from tax revenues from
sales of motor fuel on Indian country.
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B. In lieu of the refund procedure provided in subsection E of
Section 14 of this act for the exemption provided for sales of motor
fuels by an Indian tribe to its tribal members as provided in
paragraph 10 of Section 10 of this act, an Indian tribe, on its
behalf and on behalf of its members, may elect to enter into a
contract with the State of Oklahoma as provided in subsection C of
this section.
C. The State of Oklahoma hereby makes the following offer to all
federally recognized Indian tribes within this state which, if
accepted, will constitute a contract between this state and the
accepting tribe or tribes:
1. The accepting tribe shall agree that it will not challenge
the constitutionality of this act or the application of this act to
motor fuel sales on Indian country in any court or tribunal and shall
include all state motor fuel taxes and assessments in the price of
its motor fuel sales, including but not limited to sales to tribal
members on tribal land. The accepting tribe shall agree as a
material term of its agreement to abide with all parts of this act in
its entirety and shall agree not to procure, or attempt to procure,
motor fuel for sale in Indian country on which the tax imposed by
this act has not been precollected as provided for herein;
2. In consideration of this agreement by the tribe or tribes,
the State of Oklahoma, through the Oklahoma Tax Commission, shall
withhold a percentage of its motor fuel tax revenues, as specified in
paragraph 3 of this subsection, which shall be apportioned quarterly
to the accepting Indian tribes. The funds apportioned as provided
herein are deemed to be in lieu of tribal tax revenues that the
tribes would otherwise have collected on sales of motor fuels. The
first such apportionment shall be made not later than February 1,
1997, which shall be for motor fuels taxes received by the Tax
Commission during the last calendar quarter of 1996, and subsequent
apportionments shall be made no later than thirty (30) days after the
end of each calendar quarter thereafter. The first such
apportionment shall be made to all tribes which have elected and
accepted the terms of the contract specified in this subsection
before October 1, 1996. Any tribe electing and accepting the terms
of the contract specified in this subsection on or after October 1,
1996, shall be eligible to receive quarterly apportionments beginning
with the calendar quarter following such election;
3. The percentage of state motor fuel tax and assessment
revenues collected pursuant to the provisions of this act which shall
be withheld monthly and apportioned quarterly to accepting Indian
tribes shall be as follows:
a. for the portion of the fiscal year beginning July 1,
1996, for which this act is effective, three percent
(3%),
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b. for the fiscal year beginning July 1, 1997, four
percent (4%), and
c. for the fiscal year beginning July 1, 1998, and for
each fiscal year thereafter, four and one-half percent
(4 1/2%);
4. The funds withheld by the Oklahoma Tax Commission pursuant to
paragraph 3 of this subsection shall be apportioned quarterly to each
accepting Indian tribe as follows:
a. each accepting Indian tribe shall receive a base
quarterly sum of Six Thousand Two Hundred Fifty Dollars
($6,250.00). If the gross state motor fuel tax
revenues collected do not exceed One Hundred Million
Dollars ($100,000,000.00) in any fiscal year, the
provisions of this subparagraph shall not be
applicable,
b. to those tribes who were engaged in the sales of motor
fuels during the fourth calendar quarter of the
calendar year 1996:
(1) for the fiscal year beginning July 1, 1996, an
amount equal to ten cents ($0.10) per gallon of
motor fuels sold by such tribe during the fourth
calendar quarter of 1996,
(2) for the fiscal year beginning July 1, 1997, an
amount equal to eight cents ($0.08) per gallon of
motor fuels sold by such tribe during the fourth
calendar quarter of 1996,
(3) for the fiscal year beginning July 1, 1998, an
amount equal to six cents ($0.06) per gallon of
motor fuels sold by such tribe during the fourth
calendar quarter of 1996,
(4) for the fiscal year beginning July 1, 1999, an
amount equal to four cents ($0.04) per gallon of
motor fuels sold by such tribe during the fourth
calendar quarter of 1996, and
(5) for the fiscal year beginning July 1, 2000, and
thereafter for the duration of the contract, an
amount equal to two cents ($0.02) per gallon of
motor fuels sold by such tribe during the fourth
calendar quarter of 1996, and
c. after determination of amounts to be apportioned
pursuant to subparagraphs a and b of this paragraph,
the remainder shall be apportioned according to the
proportion the accepting Indian tribe's total Oklahoma
resident membership bears to the total Oklahoma tribal
resident membership of all accepting Indian tribes;
5. The funds withheld by the Oklahoma Tax Commission and
apportioned quarterly pursuant to the provisions of this section
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shall be used by the accepting tribe exclusively for tribal
government programs limited to highway and bridge construction,
health, education, corrections, and law enforcement;
6. In the event, at any time during a calendar quarter, an
accepting tribe selling motor fuel fails to procure, for whatever
reason, motor fuel for sale in Indian country on which the tax
imposed by this act has been precollected as provided in this act, or
fails, for whatever reason, to include all state motor fuel taxes and
assessments in the price of its motor fuels sales including, but not
limited to, sales to tribal members on Indian country, the tribe
shall not be eligible to receive an apportionment under this section
for that calendar quarter. In such instances, the Tax Commission
shall notify the tribe that its apportionment shall be withheld and
the reasons therefor. The tribe shall have six (6) months from the
date of issuance of the notice under this paragraph to file a legal
action contesting the decision of the state to withhold its
apportionment. The amount withheld from the tribe pursuant to the
provisions of this paragraph shall not be apportioned and shall be
withheld from all tribes until the expiration of the six-month
limitation period and during the pendency of any legal action filed
pursuant to this paragraph.
7. Each tribe shall provide to the Oklahoma Tax Commission an
audit of its tribal membership or citizenship rolls certified by a
certified public accountant showing the correct number of its
respective tribal members by blood, excluding members of bands,
tribal towns and other tribes or affiliates which may be included on
its rolls but who are ineligible for tribal services and benefits.
Only tribal members who reside within the State of Oklahoma shall be
included in the audit. Citizens of tribal towns, bands of Indians
and tribes who are also counted in the audits as members of another
tribe participating in the contract provided for in this section and
eligible to receive services from the tribe shall not be eligible to
also participate under this section. Any tribal member who is also a
member of another tribe may only be counted once for purposes of
determining tribal membership. Those tribes who were engaged in the
sales of motor fuels during the fourth calendar quarter of calendar
year 1996 shall also provide certified audited reports on or before
January 10, 1997, showing the quantity of motor fuels sold by them
during that period. For all tribes electing to accept the terms of
the contract specified in this subsection before October 1, 1996, the
membership audit report shall be submitted on or before October 1,
1996, and not later than July 1 of each year thereafter. The
information provided shall be the basis from which the Oklahoma Tax
Commission shall calculate the distribution of the funds withheld
pursuant to the provisions of this section. The State of Oklahoma
shall be absolved of any liability if the information submitted
pursuant to the provisions of this section is not correct. If such
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information is not submitted by an accepting or participating tribe
by October 1, 1996, or in subsequent years by July 1, the Tax
Commission shall calculate the distribution of the funds on the basis
of the information previously submitted by that tribe.
Notwithstanding the provisions of Section 205 of Title 68 of the
Oklahoma Statutes, copies of the audits and reports shall be made
available to any requesting participating tribes;
8. Acceptance of the offer contained in this section shall be
made in writing to the Oklahoma Tax Commission, signed by the chief
executive officer of the tribal government, stating that the tribe
accepts, without condition, the terms of this section, and for the
sole purpose of resolving disputes arising out of a contract entered
into pursuant to the provisions of this section, the tribe waives its
immunity from suit and liability in state and federal court. In
addition, proof of adoption of an ordinance or resolution by the
governing body of the tribe accepting without condition the terms of
this section, and an effective waiver of its immunity, as specified
herein, shall be required. Notwithstanding the enactment of any
future legislation on this topic, the term of the contract created by
the acceptance of this offer shall extend through and include fiscal
year 2016 and shall be renewed for successive ten-year terms unless a
tribe notifies the State of Oklahoma of its intention not to
participate further or the State of Oklahoma notifies the tribe of
its intent not to participate further. Notification by the tribe
shall be made in the same manner as required by this paragraph for
acceptance of the offer to participate in the contract. Notification
by the state shall be made by the Governor in writing to the tribe,
and such notification shall be filed with the Secretary of State;
9. The State of Oklahoma hereby waives its immunities from suit
granted by the Eleventh Amendment to the Constitution of the United
States for the sole purpose of resolving disputes arising out of a
contract entered into pursuant to the provisions of this section;
10. Both the State of Oklahoma and the accepting Indian tribe
recognize, respect and accept the fact that under applicable laws
each is a sovereign with dominion over their respective territories
and governments. By entering into this proposed intergovernmental
contractual relationship, neither the state nor the tribe has, in any
way, caused the other's sovereignty to be diminished;
11. Members of accepting tribes shall not be individually
eligible for the exemption provided in paragraph 10 of Section 10 of
this act. Apportionment of funds to accepting tribes pursuant to the
provisions of paragraph 4 of this subsection are in part in lieu of
the refunds to individual tribal members as provided in paragraph 10
of Section 10 of this act. Indian tribes shall continue to be
eligible for the tribal government exemption provided in paragraph 7
of Section 10 of this act;
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12. A tribe accepting the offer contained in this section agrees
to hold the state harmless from suit by its individual tribal members
and further agrees that, if a final judgment is rendered against the
state pursuant to such a suit, that the tribe will reimburse the
state for the amount of any such judgment paid and any costs incurred
by the state pursuant to such suit. If a tribe fails to make such
reimbursement within ninety (90) days of demand by the Oklahoma Tax
Commission, the state shall withhold such amount from the
apportionment of funds to the tribe pursuant to the provisions of
paragraph 4 of this subsection; and
13. A tribe accepting the offer contained in this section agrees
not to license or otherwise authorize an individual tribal member or
other person or entity to make sales of motor fuel in violation of
the terms of the contract.
Added by Laws 1996, c. 345, § 63, eff. Oct. 1, 1996.
§68-500.64. Tax payment reimbursement contracts - Reimbursement
option - Notification - Security.
A. If a contract requires one party to reimburse another party
for taxes levied under Part III of Subchapter A of Chapter 32 of the
Internal Revenue Code, the party making the reimbursement, at its
option, shall not be required to reimburse the other party more than
one (1) business day before the other party is required to remit the
taxes to the Internal Revenue Service.
B. If a party chooses not to exercise its option under
subsection A of this section, and provision is not already provided
in the contract, the party shall notify the other party in writing of
its intention. The option may not be exercised until at least thirty
(30) days after the written notification or the beginning of the next
federal tax quarter, whichever is later.
C. The party to be reimbursed under subsection A of this section
may require security from the reimbursing party for the payment of
the taxes in proportion to the amount the taxes represent compared to
the security required on the contract as a whole. The party to be
reimbursed shall not change other payment terms of the contract due
to the timing of the tax reimbursement, but may require the taxes to
be reimbursed by electronic transfer of funds.
D. The provisions of this section shall be applicable to all
continuing contracts now in effect that have no expiration date and
all contracts entered into or renewed on or after the effective date
of this act.
Added by Laws 2006, c. 272, § 10.
§68-501. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-502. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
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§68-502.1. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-502.2. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-502.3. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-502.4. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-502.5. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-502.6. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-502.7. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-504. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-504.1. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-505. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-506. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-507. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-508. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-509. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-509.1. Repealed by Laws 1993, c. 146, § 29.
§68-509.2. Exempt diesel fuel - Fuel used for purposes other than to
operate motor vehicles on public highways.
A. The tax levied by this act shall not apply to diesel fuel
used exclusively for purposes other than to operate motor vehicles on
the public highways of this state. Provided that distributors shall
execute on monthly reports, certification that the purchasers
represented to the seller that the diesel fuel was to be used
exclusively for purposes other than to operate motor vehicles on the
public highways.
B. Every person, firm, corporation, partnership or limited
liability company claiming an exemption under the provisions of this
section shall first obtain an annual fuel tax exemption permit from
the Tax Commission by filing a verified application on a form
furnished by the Tax Commission. Each fuel tax exemption permit
holder must furnish a copy of the permit to a supplier prior to
purchasing diesel fuel. Suppliers selling to permit holders must
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maintain a record of each sale to a permit holder and shall report
the total gallons of tax-exempt diesel fuel sold during a calendar
month on a form prescribed by the Tax Commission. Said form will
include a listing of the total gallons sold to each permit holder, by
name and exemption number. The supplier shall furnish each permit
holder a copy of its tax-exempt sales for the calendar month. The
supplier and permit holder shall maintain these records for three (3)
years. Any supplier selling diesel fuel that is exempt under this
section may deduct the number of gallons of such diesel fuel from the
total gallonage required to be reported to the Tax Commission only if
prescribed forms listing the tax-exempt sales are attached to the
report required by the Tax Commission. A supplier shall not deduct
from the required report the sale of diesel fuel made by any other
distributor. All fuel tax exemption permits expire on the 30th day
of June of each year and no exemption shall be allowed to the holder
thereof after September 30 of that year. Provided, the Tax
Commission may exempt such purchases after September 30 upon
verifying that the fuel was actually used in accordance with the
exemption provisions of this section.
C. Any person who places diesel fuel that was purchased under an
exemption permit authorized by this section into the fuel tank of a
motor vehicle for use in operating the motor vehicle on the public
highways shall be liable for the taxes levied under Sections 502.1,
502.3, 502.5, 502.7 and 522.1 of this title. Further, the permit
issued shall be subject to cancellation and if so canceled shall not
be reissued for a period of at least one (1) year. Such person shall
also be guilty of a misdemeanor and shall, upon conviction, be fined
not more than One Thousand Dollars ($1,000.00), or shall be sentenced
to a term of not more than one (1) year in the county jail.
The Tax Commission shall conduct field audits and investigate the
uses for which the holder of an off-road exemption permit has made of
diesel fuel acquired by him under his permit. Upon a determination
that the permit holder has improperly used the diesel fuel purchased,
the Tax Commission shall issue a proposed assessment against the
permit holder, in accordance with Section 221 of this title, for the
diesel fuel taxes levied under this article.
D. The tax levied by Sections 502.1 and 522.1 of this title
shall not apply to diesel fuel used exclusively in road machinery and
equipment built for and being used on location in the construction,
repair or maintenance of public highways, roads and bridges by road
contractors and by counties, cities and towns of this state.
However, this exemption shall not apply to automobiles or truck-type
vehicles such as dump trucks, flatbed trucks and pickup trucks.
E. The tax levied by Sections 502.1 and 522.1 of this title
shall not apply to diesel fuel used exclusively in passenger motor
buses or coaches, having a seating capacity of ten or more persons,
when such fuel is purchased by and used exclusively in public transit
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systems operated by any county, city or town of this state, or by any
public trust created under the laws of this state of which a county,
city or town of this state is the sole beneficiary thereof. Provided
this exemption shall be allowed only when supported by a certificate
executed by such city or trust on forms prescribed and furnished by
the Oklahoma Tax Commission.
F. The tax levied by Sections 502.1 and 522.1 of this title
shall not apply to diesel fuel purchased by any county, city or town
for use as fuel to propel motor vehicles on the public roads and
highways of this state, when said vehicles are being operated for the
sole benefit of said county, city or town; provided that if the
diesel fuel is placed directly into the fuel supply tank or tanks of
the motor vehicle by the supplier, certification must be made on the
invoice and all such sales must be reported by the supplier on forms
furnished by the Oklahoma Tax Commission.
Added by Laws 1993, c. 146, § 18.
§68-510. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-510.1. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-511. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-512. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-513. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-514. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-515. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-516. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-517. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-518. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-519. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-520. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-521. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-522. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-522.1. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
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§68-523. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-523.1. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-524. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-525. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-526. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-527. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-530. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-531. Repealed by Laws 1996, c. 345, § 67, eff. Oct. 1, 1996.
§68-601. Definitions.
For the purposes of this article:
1. "Motor vehicle" or "vehicle" means and includes any
automobile, truck, truck-tractor, bus, vehicle, engine, machine,
mechanical contrivance, or other conveyance which is propelled by an
internal combustion engine or motor and not used in the air or upon
fixed rails or tracks;
2. "Use" means and includes the consumption of motor fuel by any
person in a motor vehicle for the propulsion thereof upon the public
highways of this state;
3. "Gasoline" means the same as the term "motor fuel," and the
term "motor fuel" means and includes every petroleum product, fluid,
or liquid, or any combination thereof, having an A.P.I. gravity of
forty-six (46) degrees Fahrenheit and at atmospheric pressure, and
shall include drip, casinghead or natural gasoline, benzol, naphtha,
benzine and solvents, and shall include any liquid or fluid of less
than forty-six (46) degrees A.P.I. gravity at a temperature of sixty
(60) degrees Fahrenheit compounded, blended, manufactured, or
otherwise produced by mixing or blending gasoline or naphthas with
any blending materials, when the blended product can be used for
generating power in internal combustion engines, regardless of how
such liquid or fluid is made, compounded, manufactured or recovered,
and regardless of the name by which such liquid or fluid may be known
or sold;
4. "Diesel fuel" means diesel engine fuel, kerosene, and all
other liquids suitable for the generation of power for the propulsion
of motor vehicles except those products subject to the tax imposed by
Section 500.4 of this title;
5. "Person" means and includes natural persons, individuals,
partnerships, firms, associations, limited liability companies,
corporations, estate, trustees, business trusts, syndicates, or any
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corporations or combinations acting as a unit or any receiver
appointed by any state or federal court; and the use of the singular
number shall include the plural number;
6. "Tax Commission" means the Oklahoma Tax Commission;
7. "Motor Fuel/Diesel Fuel Importer for Use" means and includes
any person importing gasoline or motor fuel or diesel fuel into this
state in the fuel supply tank or tanks of any motor vehicle or in any
other containers for use in propelling said vehicle upon the highways
of this state;
8. "Gallon" means the quantity of fluid or liquid at a
temperature of sixty (60) degrees Fahrenheit necessary to completely
fill a United States standard gallon liquid measure; and
9. "Public highways" means and includes every road, highway,
street, way or place within this state, of whatever nature, generally
open to the use of the public as a matter of right for the purposes
of vehicular travel, including a toll highway, and including streets
and alleys of any town or city notwithstanding that the same may be
temporarily closed for the purpose of construction, reconstruction,
maintenance, or repair.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
§ 6-601 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1978, c. 220, § 26, eff. Jan. 1, 1979; Laws 1993, c. 366, § 34, eff.
Sept. 1, 1993; Laws 1997, c. 284, § 3, eff. July 1, 1997.
§68-602. Purpose of Article - Apportionment and use of revenues.
It is hereby declared to be the purpose of Section 601 et seq. of
this title to levy a tax on those importing gasoline and diesel fuel
into this state in the fuel supply tanks of vehicles being used on
the highways of this state for commercial purposes, as a just and
reasonable contribution to the cost of constructing, maintaining and
policing such highways incident to the use thereof by such persons,
and to the end that the highway users shall pay to this state an
equal amount in taxes as is paid by other commercial highway users
who use gasoline and diesel fuel on which the motor fuel excise tax
has been paid to this state. The revenues, including interest and
penalties, collected under the provisions of this article, shall be
apportioned monthly in the manner and in the same proportion for the
same purposes as the revenue collected pursuant to the Motor Fuel Tax
Code is apportioned.
Provided, in the event that collections are insufficient for the
monthly payment of motor fuel taxes to other states or jurisdictions
in accordance with the International Fuel Tax Agreement, the Oklahoma
Tax Commission shall transfer to the Corporation Commission the sum
necessary for payment in full from current diesel fuel tax
collections. Such transfer shall occur within five (5) working days
of the request by the Corporation Commission.
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Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
§ 6-602 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1985, c. 194, § 5, eff. Nov. 1, 1985; Laws 1986, c. 223, § 36,
operative July 1, 1986; Laws 1986, c. 284, § 8, operative July 1,
1986; Laws 1989, 1st Ex.Sess., c. 1, § 12, eff. July 1, 1990; Laws
1997, c. 284, § 4, eff. July 1, 1997; Laws 2005, c. 479, § 10, eff.
July 1, 2005.
NOTE: Laws 2005, c. 411, § 2 repealed by Laws 2006, c. 16, § 50,
emerg. eff. March 29, 2006.
§68-602.1a. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-602.2. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-603. Levy of tax - Retention of portion for proper remission.
A. In consideration of the use of the highways of this state,
and in addition to all other taxes levied for such purposes, all
persons who import gasoline and diesel fuel into this state in the
fuel supply tank or tanks of motor vehicles or in any other
containers for use in propelling such vehicles on the highways for
commercial purposes, shall report and pay to the Corporation
Commission a tax for such use of the highways as provided in this
section. The tax shall be levied and imposed as follows:
1. Gasoline: a tax equal to the rate otherwise applicable at the
time under the Motor Fuel Tax Code upon a gallon of gasoline used or
consumed in the state; and
2. Diesel fuel: a tax equal to the rate otherwise applicable at
the time under the Motor Fuel Tax Code upon a gallon of diesel fuel
used or consumed in the state.
The tax levied and imposed shall be measured and determined by the
number of gallons of gasoline and diesel fuel so imported and
actually used on the highways of this state. No gasoline or diesel
fuel on which the tax levied by the Motor Fuel Tax Code has been paid
to this state shall be used in computing the tax imposed by this
section. In the event the tax levied by this section can be more
accurately determined on a mileage basis, that is, by determining and
using the total number of miles traveled in Oklahoma, or in case it
is practicable to so determine the tax, the Corporation Commission is
authorized to accept and approve such basis.
B. Each person licensed pursuant to Section 607 of this title
who properly remits the tax pursuant to this act shall be entitled to
retain one and twenty-five one-hundredths percent (1.25%) of the tax
imposed on gasoline by this section and remitted by that licensee and
one and fifty-four one-hundredths percent (1.54%) of the tax imposed
on diesel fuel by this section and remitted by the licensee to cover
the costs of administration imposed by this act including record
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keeping, report filing, and remitting of the tax. The retention of a
percentage of the tax permitted by this section shall not be allowed
by a licensee if any report or the tax remittance is delinquent.
Added by Laws 1963, c. 363, § 2. Renumbered from § 6-603 of this
title by Laws 1965, c. 215, § 2. Amended by Laws 1997, c. 284, § 5,
eff. July 1, 1997; Laws 2008, c. 168, § 8, emerg. eff. May 12, 2008;
Laws 2018, c. 224, § 1, emerg. eff. May 7, 2018.
§68-603.1. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604.1. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604.2. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604.3. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604.4. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604.5. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604.6. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-604.7. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-605. Exemptions.
The tax levied by this article shall not apply to motor fuel or
diesel fuel imported into and used on the highways of this state by:
1. Persons operating motor vehicles commonly designated as
automobiles or recreational vehicles which are constructed for and
being used solely for the transportation of persons for purposes
other than for hire or compensation;
2. Any person operating a motor vehicle or combination of
vehicles used, designed, or maintained for transportation of persons
or property, and a gross vehicle weight of less than twenty-six
thousand (26,000) pounds;
3. Persons importing livestock and farm products in the raw
state, including cotton, whether in the seed or ginned, and including
cottonseed and baled hay, when such commodities are moved from farm
to market, or from market to farm on a vehicle or on vehicles owned
and operated by a bona fide farmer not engaged in motor vehicle
transportation on a commercial scale;
4. Motor fuel or diesel fuel used in vehicles owned by the
United States of America; and
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5. Persons importing motor fuel/diesel fuel for use into this
state having applied for and received a temporary fuel permit from
the Corporation Commission.
No exemption from the tax levied by Section 603 of this title and
as set forth in this section shall be construed as an exemption from
the tax levied by the Motor Fuel Tax Code.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
§ 6-605 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1978, c. 220, § 32, eff. Jan. 1, 1979; Laws 1980, c. 209, § 5, emerg.
eff. May 30, 1980; Laws 1988, c. 14, § 6, operative July 1, 1988;
Laws 1988, c. 244, § 10, emerg. eff. June 24, 1988; Laws 1997, c.
284, § 6, eff. July 1, 1997; Laws 2008, c. 168, § 9, emerg. eff. May
12, 2008; Laws 2009, c. 182, § 5, eff. Nov. 1, 2009.
§68-606. Accrual of liability - Persons liable - Exemptions.
The liability for the tax imposed by this article shall arise and
accrue against the person operating a motor vehicle, the operation of
which is subject to said tax, at the time and place said motor
vehicle shall enter upon the highways of this state. Provided,
however, a lessor who is engaged in the business of leasing for
compensation motor vehicles and equipment he owns without drivers to
carriers or other lessees for interstate operation may be deemed to
be the Motor Fuel/Diesel Importer for Use when he supplies or pays
for the motor fuel or diesel fuel consumed in such vehicles, and such
lessor may be issued Motor Fuel/Diesel Fuel Importer for Use license.
Any lessee may exclude motor vehicles of which he is lessee from his
reports and liabilities, but only if the motor vehicles in question
have been leased from a lessor holding a valid Motor Fuel/Diesel Fuel
Importer for Use License.
Laws 1963, c. 363, § 2; Laws 1965, c. 215, § 2; Laws 1978, c. 220, §
33, eff. Jan. 1, 1979.
§68-607. Importer for use licenses - Temporary permits - Cooperative
compacts or agreements with other states to collect taxes.
A. Before any person imports gasoline or diesel fuel into the
state in the fuel supply tank or tanks of any motor vehicle, or in
any other container for use on the highways of this state, such
person shall file application for and obtain a Motor Fuel/Diesel Fuel
Importer for Use License. Such requirement shall be complied with
notwithstanding the tax levied by the Motor Fuel Tax Code has been
paid on such gasoline or diesel fuel. However, persons exempted by
Section 605 of this title from the tax levied pursuant to Section 603
of this title shall not be required to obtain such license. The
application required by this section shall be verified and filed on a
form prescribed and furnished by the Corporation Commission showing
the name and address and kind of business of the applicant, a
designation of the principal place of business and such other
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information as the Corporation Commission may require. Such
application must also contain, as a condition to the issuance of the
license, an agreement by the applicant to comply with the
requirements of Section 601 et seq. of this title and the rules of
the Corporation Commission.
B. Before any such application may be approved by the
Corporation Commission, the applicant must fully comply with the
contribution requirements pursuant to Section 607.2 of this title.
In addition, prior to the approval, the Corporation Commission may
require the applicant to file a bond payable to the State of Oklahoma
conditioned upon compliance with the provisions of Section 601 et
seq. of this title and the rules of the Corporation Commission in a
sum of not more than Ten Thousand Dollars ($10,000.00), the amount
thereof to be fixed by an order of the Corporation Commission.
During the license year, the amount of any such bond required may be
increased or reduced by the Corporation Commission at its discretion,
and the Corporation Commission may in its discretion, waive the
filing of a bond by any person who regularly purchases sufficient
gasoline or diesel fuel on which the motor fuel or diesel fuel excise
tax has been paid to this state when the tax equals or exceeds the
amount of the tax levied against such person under Section 601 et
seq. of this title.
C. Upon approval of such application and bond, the Corporation
Commission shall issue to the applicant a nontransferable Motor Fuel/
Diesel Fuel Importer for Use License bearing a distinctive number, at
no charge to the applicant. The license shall be issued on an annual
basis and shall remain in full force and effect until surrendered,
suspended, or canceled in the manner provided by law. Each license
shall be valid only for the operation of motor vehicles on the
highways of this state by the person to whom it is issued including
motor vehicles transporting persons or property in furtherance of the
business of the licensee under a lease, a contract or any other
arrangement, whether permanent or temporary in nature. The
Corporation Commission may issue one (1) license credential to
evidence the compliance of the applicant with the provisions of this
section and the provisions of Section 1120 of Title 47 of the
Oklahoma Statutes.
D. In consideration of the use of the highways of this state,
and in addition to all other taxes levied for such purposes, all
persons who import motor fuel/diesel fuel into the state in the fuel
supply tank or tanks of motor vehicles for use in propelling the
vehicles on the highways for commercial purposes may receive a
temporary motor fuel/diesel fuel permit from the Corporation
Commission. This permit shall be recognized in lieu of licensing
requirements in this state. The permit shall indicate the time and
date of its issuance and shall be valid for a period not to exceed
one hundred twenty (120) hours from such indicated time.
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A fee of Twenty-five Dollars ($25.00) shall be charged for the
issuance of the temporary permit. Eight Dollars ($8.00) of the fee
shall be apportioned in the same manner as other motor fuel/diesel
fuel revenue. Two Dollars ($2.00) of the fee shall be retained by
the Corporation Commission and apportioned as provided in Section
1167 of Title 47 of the Oklahoma Statutes. Fifteen Dollars ($15.00)
of the fee shall be paid to the State Treasurer for deposit in the
General Revenue Fund.
Any person importing motor fuel/diesel fuel into this state for
use while in possession of an expired, altered or undated temporary
fuel permit shall be deemed to be operating without proper licensing
and shall be subject to licensing and penalties as provided for in
the Motor Fuel/Diesel Fuel Importer for Use Tax Code.
The Corporation Commission may prescribe an application form for
the temporary permit and such other forms as it deems appropriate.
The Corporation Commission, without notice, may suspend the issuance
of temporary permits to any person found to be in violation of the
Motor Fuel/Diesel Fuel Importer for Use Tax Code or similar laws of
this state.
The Corporation Commission may enter into an agreement with any
person or corporation located within or without the state for
transmission of temporary permits by way of a facsimile machine or
other device when the Corporation Commission determines that such
agreement is in the best interests of the state.
The Corporation Commission may enter into an agreement with any
state for transmission of that state’s temporary permits by way of a
facsimile machine or other device when the Corporation Commission
determines that such agreement is in the best interests of the state.
E. In lieu of the requirements as provided for in Section 601 et
seq. of this title in respect to licensing, bonding, reporting and
auditing, the Corporation Commission may, when in the best interests
of this state and its residents, enter into the International Fuel
Tax Agreement or other cooperative compacts or agreements with
another state or other states or provinces to permit base state or
base jurisdiction licensing of persons importing motor fuel or diesel
fuel into this state and liable for the tax levied pursuant to
Section 601 et seq. of this title and provide for the cooperation and
assistance among the member states and provinces in the
administration and collection of motor fuels consumption and use
taxes. Any action taken by the Oklahoma Tax Commission with respect
to the International Fuel Tax Agreement or other such compacts or
agreements prior to June 9, 2004, shall remain in effect unless
altered by the Corporation Commission pursuant to its authority to do
so after the effective date of this act.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
§ 6-607 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1978, c. 220, § 34, eff. Jan. 1, 1979; Laws 1980, c. 209, § 6, emerg.
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eff. May 30, 1980; Laws 1986, c. 142, § 4, emerg. eff. April 21,
1986; Laws 1988, c. 14, § 7, eff. July 1, 1988; Laws 1990, c. 95, §
1, eff. July 1, 1990; Laws 1993, c. 273, § 11, emerg. eff. May 27,
1993; Laws 1997, c. 284, § 7, eff. July 1, 1997; Laws 2003, c. 472, §
10; Laws 2004, c. 522, § 25, eff. July 1, 2004; Laws 2006, c. 238, §
13, emerg. eff. June 6, 2006; Laws 2008, c. 168, § 10, emerg. eff.
May 12, 2008; Laws 2009, c. 182, § 6, eff. Nov. 1, 2009.
§68-607.1. Operation of vehicle without proper display of
identification credentials - Penalties.
A penalty of not less than Fifty Dollars ($50.00) shall be
imposed for any person operating a vehicle subject to the provisions
of Section 601 et seq. of this title and Section 701 et seq. of this
title without the proper display of, or, carrying in such vehicle,
the identification credentials issued by the Corporation Commission.
Such penalty shall not exceed the amount established by the
Corporation Commission pursuant to the provisions of subsection A of
Section 3 of this act. Revenue from such penalties shall be
apportioned as provided in Section 3 of this act.
Added by Laws 1982, c. 104, § 1, operative July 1, 1982. Amended by
Laws 1986, c. 142, § 3, emerg. eff. April 21, 1986; Laws 1987, c. 6,
§ 12, emerg. eff. March 16, 1987; Laws 1997, c. 284, § 8, eff. July
1, 1997; Laws 2004, c. 522, § 26, eff. July 1, 2004.
§68-607.2. Repealed by Laws 2004, c. 529, § 8, eff. Sept. 1, 2004.
§68-608. Display of license - Operating vehicle without license -
Penalties - Venue.
(a) Every person operating a motor vehicle on the highways of
this state as a Motor Fuel/Diesel Fuel Importer for Use must at all
times during such operation have displayed in the cab of such motor
vehicle, a copy of the Motor Fuel/Diesel Fuel Importer for Use
License which shall be subject to inspection at all times by
representatives of the Corporation Commission.
(b) Any person operating a motor vehicle on the highways of this
state, the operation of which is subject to the tax levied by this
article, without having obtained a Motor Fuel/Diesel Fuel Importer
for Use License as required by Section 607 of this title, shall be
guilty of a misdemeanor and, upon conviction, punished by a fine of
not more than One Thousand Dollars ($1,000.00), or by imprisonment in
the county jail for a period not exceeding one (1) year or both. The
venue for prosecutions arising under this section shall be in the
district court of any county in which such vehicle is being operated.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
Title 68, § 6–608 by Laws 1965, c. 215, § 2. Amended by Laws 1978,
c. 220, § 35, eff. Jan. 1, 1979; Laws 2006, c. 238, § 14, emerg. eff.
June 6, 2006.
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§68-609. Reports and payments to Commission - Delinquent payments.
A. Every person licensed under this article shall make and
transmit to the Corporation Commission on or before the last day of
April, July, October, and January of each year, upon a form
prescribed and furnished by the Commission, a verified quarterly
report, showing the total miles traveled, miles traveled in Oklahoma
by each motor vehicle, the total gallonage of motor fuel or diesel
fuel consumed, the number of gallons of motor fuel or diesel fuel
purchased or received in this state, the date of each purchase or
receipt, the name and address of the seller, the delivery invoice
number of each purchase or receipt, and the number of gallons of
motor fuel or diesel fuel imported into and used in this state. The
report must also include the amount of motor fuel or diesel fuel on
hand at the beginning and close of the period as shown by the
physical inventory taken on that date (those dates), if storage is
maintained, and a complete record of all receipts and withdrawals
into and from said storage.
The number of gallons of motor fuel or diesel fuel shown to have
been purchased or received in Oklahoma on which the tax levied by the
Motor Fuel Tax Code has been paid to this state shall be deducted
from the total number of gallons of motor fuel or diesel fuel used by
such person in Oklahoma to determine the number of gallons of motor
fuel or diesel fuel upon which the tax levied by this article is to
be computed and paid.
Every person licensed under this article who travels less than
ten thousand (10,000) miles per year in Oklahoma may, at the option
of the Commission, file an annual report in lieu of filing the
quarterly report.
B. Every person at the time of filing each quarterly report
shall pay to the Commission the full amount of tax due for the
preceding quarter at the rate provided for in this article. Such tax
is due and payable on the first day of the succeeding quarter for
which the report is filed, and if not paid, is delinquent from and
after the twentieth day of such month. When any person shall fail to
submit to the Commission any report required hereunder within thirty
(30) days from the date it is required to be filed, the Commission
shall assess, in addition to the penalties and interest provided for
in Section 217 of this title, a penalty of not less than Five Dollars
($5.00) for the first offense and not less than Five Dollars ($5.00)
for each subsequent offense.
C. The Motor Fuel/Diesel Fuel Importer for Use License of any
person who is delinquent in the payment of tax levied by this article
may be canceled by the Commission in the manner provided by law.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
§ 6-609 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1978, c. 220, § 36, eff. Jan. 1, 1979; Laws 1988, c. 14, § 8, eff.
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July 1, 1988; Laws 1997, c. 284, § 10, eff. July 1, 1997; Laws 2006,
c. 238, § 15, emerg. eff. June 6, 2006.
§68-610. Records of importers.
(a) Each Motor Fuel/Diesel Fuel Importer for Use must maintain
and keep for a period of three (3) years such records of motor fuel
or diesel fuel used and mileage traveled by each and all motor
vehicles on the highways of this state including motor vehicles
owned, operated, leased or under any other form of contract, together
with inventories, withdrawals, deliveries, purchases supported by
invoices, bills of lading and all pertinent records and papers as may
be required by the Corporation Commission for the administration of
this article.
(b) Every retailer or dealer who sells and delivers any motor
fuel or diesel fuel into the fuel supply tanks of any motor vehicle
of a licensed Motor Fuel/Diesel Fuel Importer for Use must, at the
time of the delivery, make and deliver to the person owning or
operating such vehicle an invoice covering each such delivery,
showing the name of the purchaser, the date, the name and address of
the seller printed thereon, the number of gallons delivered, the
price per gallon and total sales price, and such other information as
the Commission may require. Each invoice must be made in duplicate,
be identified by consecutive numbers with at least three digits
printed thereon, and each retailer or dealer must furnish said
invoices and retain one copy thereof and be able to account for each
invoice and each copy thereof.
The invoices required by this section must be demanded by every
Motor Fuel/Diesel Fuel Importer for Use covering each purchase.
(c) Any person willfully violating any of the provisions of this
section shall be guilty of a misdemeanor and shall, upon conviction
thereof, be punished by a fine of not more than One Thousand Dollars
($1,000.00), or be sentenced to imprisonment in the county jail for
not more than one (1) year, or both. Venue for prosecution arising
under this section shall be in the district court of any county in
which such person resides or, if such person is not a resident of
this state, any county in which such person uses the highways of this
state or maintains an established place of business.
Added by Laws 1963, c. 363, § 2, eff July 1, 1963. Renumbered from §
6-610 of this title by Laws 1965, c. 215, § 2. Amended by Laws 1978,
c. 220, § 37, eff. Jan. 1, 1979; Laws 2006, c. 238, § 16, emerg. eff.
June 6, 2006.
§68-611. Importation of motor fuel or diesel fuel without license -
Tax payable - Credits - Refunds - Second and subsequent violations.
(a) Any person importing motor fuel or diesel fuel into this
state and liable for the tax levied by this article for the first
time who has not obtained a Motor Fuel/Diesel Fuel Importer for Use
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License, shall, for the purpose of determining the number of gallons
of motor fuel or diesel fuel used on the highways of this state, be
required to pay to the Corporation Commission the tax levied by this
article on all motor fuel or diesel fuel contained in the fuel supply
tank or tanks, and any other containers for use in propelling said
vehicle. Upon obtaining a Motor Fuel/Diesel Fuel Importer for Use
License and filing a report showing all of the operations of such
person subject to tax by this article, credit shall be allowed on
said report for the tax paid under the provisions of this section and
any overpayment of tax shall be refunded or credited to a future
report. However, this credit shall not be allowed and no refund of
such tax shall be made unless the report taking the credit or the
claim for the refund is filed within thirty (30) days from the date
of payment of said tax.
(b) The second time any person imports motor fuel or diesel fuel
into this state and becomes liable for the tax levied by this
article, without having obtained a Motor Fuel/Diesel Fuel Importer
for Use License, the motor vehicle operated by such person may be
seized and held until such person complies with the provisions of
this article and pays all taxes determined to be due hereunder.
However, said motor vehicle may be released upon the making of a bond
or furnishing other security for the payment of the tax.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
§ 6-611 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1978, c. 220, § 38, eff. Jan. 1, 1979; Laws 2006, c. 238, § 17,
emerg. eff. June 6, 2006.
§68-612. Repealed by Laws 1997, c. 284, § 27, eff. July 1, 1997.
§68-613. Discontinuance of operations.
(a) Whenever any person to whom a Motor Fuel/Diesel Fuel Importer
for Use License has been issued ceases doing business or discontinues
all operations in Oklahoma subject to the tax levied by this article,
such person must notify the Corporation Commission in writing of said
fact within fifteen (15) days after such discontinuance and surrender
such license together with all Motor Fuel/Diesel Fuel Importer for
Use Licenses issued. All tax, penalties and interest levied by this
article due from such person at the time of such discontinuance,
shall become due and payable concurrently with such discontinuance,
and such person must make a report and pay all such tax, interest and
penalties at the time his license is surrendered.
(b) Any person willfully violating any of the provisions of this
section shall be guilty of a misdemeanor and shall, upon conviction
thereof, be punished by a fine of not more than One Thousand Dollars
($1,000.00), or be sentenced to imprisonment in the county jail for
not more than one (1) year or both. Venue for prosecution arising
under this section shall be in the district court of any county in
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which such person resides, or, if such person is not a resident of
this state, any county in which such person uses the highways of this
state or maintains an established place of business.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered by §
6-613 of this title by Laws 1965, c. 215, § 2. Amended by Laws 1978,
c. 220, § 40, eff. Jan. 1, 1979; Laws 2006, c. 238, § 18, emerg. eff.
June 6, 2006.
§68-614. Interstate carriers - Partial invalidity.
Nothing in this article shall be construed as requiring
interstate carriers to make a showing of "public convenience and
necessity" in order to secure any license required by the provisions
hereof, and the provisions of this article shall apply to interstate
commerce only insofar as such regulation is permitted by the
Constitutions of Oklahoma and the United States, and the holding of
any part of this article or any section or part thereof to be void or
ineffective for any cause by any court shall not affect any other
section or part of this article.
Added by Laws 1963, c. 363, § 2, eff. July 1, 1963. Renumbered from
Title 68, § 6-614 by Laws 1965, c. 215, § 2. Amended by Laws 1978,
c. 220, § 41, eff. Jan. 1, 1979.
§68-615. Tax credit on gasoline or diesel fuel consumed outside
state - Application and procedure.
Any person licensed under the Motor Fuel/Diesel Fuel Importer for
Use Law shall be entitled to a credit equivalent to the tax rate per
gallon on all gasoline or diesel fuel upon which the Oklahoma
gasoline or diesel fuel tax has been paid and which has thereafter
been consumed in motor vehicles outside this state. When the amount
of credit provided in this section to which the person is entitled
for any calendar quarter exceeds the amount of tax for which such
person is liable for gasoline or diesel fuel consumed in Oklahoma in
such vehicles during the same quarter, such excess shall, under rules
promulgated by the Corporation Commission, be allowed as a credit if
used within twenty-four (24) months from the first day of any
calendar quarter against the tax for which such person would be
otherwise liable for any of the succeeding quarters; or, upon claim
filed with the Commission within twenty-four (24) months from the
first day of any calendar quarter in which the gasoline or diesel
fuel was used, such excess, less one and seven-tenths percent (1.7%)
of gasoline tax levied and two percent (2%) of diesel fuel tax levied
pursuant to Section 500.4 of this title, may be refunded.
Application for refund must be supported by evidence of the mileage
traveled and the gallonage consumed and satisfactory evidence of the
tax-paid purchases. Refund vouchers shall be paid from current
collections derived from the tax levied under which the tax refund
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claims have been allowed, and a portion of such current collections
as are necessary to pay such refund is hereby appropriated.
Added by Laws 1968, c. 79, § 1, emerg. eff. March 26, 1968. Amended
by Laws 1978, c. 220, § 42, eff. Jan. 1, 1979; Laws 1988, c. 14, § 9,
eff. July 1, 1988; Laws 1997, c. 284, § 11, eff. July 1, 1997; Laws
2006, c. 238, § 19, emerg. eff. June 6, 2006.
§68-616. Citation.
Sections 601 through 615 of this title shall be known as the
Oklahoma Motor Fuel/Diesel Fuel Importer for Use Tax Code.
Added by Laws 1978, c. 220, § 25, eff. Jan. 1, 1979.
§68-701. Definitions.
The following words and phrases when used in this act are hereby
defined as follows:
(a) The term "motor vehicle" or "vehicle" means and includes any
automobile, truck, truck-tractor, bus, vehicle or mechanical
contrivance which is propelled by an internal combustion engine or
motor and not used in the air or upon fixed rails or tracks.
(b) The term "person" means and includes every natural person,
fiduciary, individual, partnership, firm, association, limited
liability company, corporation, business trust, or combination acting
as a unit, or any receiver appointed by any state or federal court,
and the use of the singular number shall include the plural.
Whenever used in any clause prescribing and imposing a fine or
imprisonment or both, the term "person" as applied to an association
means and includes the parties or members thereof, and as applied to
corporations, the officers thereof.
(c) "Commission" or "Tax Commission" means the Oklahoma Tax
Commission.
(d) The term "special fuel" or "fuel" means and includes all
combustible gases and liquids, including liquefied gases, which exist
in the gaseous state at a temperature of sixty (60) degrees
Fahrenheit and at a pressure of fourteen and seven-tenths (14.7)
pounds per square inch absolute, but the term does not include
compressed natural gas subject to the levy of tax pursuant to
paragraph 3 of subsection A of Section 500.4 of this title or
liquefied natural gas subject to the levy of tax pursuant to
paragraph 4 of subsection A of Section 500.4 of this title.
(e) The term "use" shall mean and include the following: (1)
the delivery or placing of special fuel into the fuel supply tank or
tanks of any motor vehicle in this state for use in whole or in part
to propel such vehicle on the public highways of this state; (2) the
consumption on the public highways of Oklahoma of any special fuel
imported into this state in the fuel supply tank or tanks of any
motor vehicle using the public highways of this state for commercial
purposes; (3) the consumption of special fuel in any type of motor
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vehicle on the public highways of this state for any purpose by any
person who refuses to divulge the source of such fuel.
(f) The term "public highway" means and includes every road,
highway, street, way or place within this state, of whatever nature,
generally open to the use of the public as a matter of right for the
purposes of vehicular travel, including a toll highway, and including
streets and alleys of any town or city, notwithstanding that the same
may be temporarily closed for the purpose of construction,
reconstruction, maintenance, or repair.
(g) The term "gallon" means one (1) United States standard
gallon at a temperature of sixty (60) degrees Fahrenheit.
(h) The term "special fuel dealer" shall mean any person engaged
in the business of handling special fuel who delivers any part
thereof into the fuel supply tank or tanks of any motor vehicle.
(i) The term "special fuel user" shall mean and include any
person other than a special fuel dealer, who uses special fuel in
this state, within the meanings of the word "use" as defined in this
act, and shall include any person who consumes special fuel to propel
a motor vehicle upon the public highways of this state when such
special fuel has been purchased or obtained from any source free from
the payment to this state of the tax levied by this act.
Added by Laws 1953, p. 328, § 1, eff. May 31, 1953. Renumbered from
§ 727.1 of this title by Laws 1965, c. 215, § 1. Amended by Laws
1978, c. 220, § 43, eff. Jan. 1, 1979; Laws 1993, c. 366, § 35, eff.
Sept. 1, 1993; Laws 2011, c. 163, § 7, eff. Jan. 1, 2012; Laws 2013,
c. 375, § 7, eff. Jan. 1, 2014.
NOTE: Laws 1978, c. 98, § 1 repealed by Laws 1979, c. 277, § 13,
emerg. eff. June 5, 1979.
§68-702. Purpose of act - Collection, report and payment of tax.
It is hereby declared to be the purpose of this act to levy a tax
upon the use as defined in this act of all special fuels:
(1) delivered into the fuel supply tanks of motor vehicles in
Oklahoma or,
(2) imported into Oklahoma in the fuel supply tanks of motor
vehicles by persons using Oklahoma highways for hire, compensation or
other commercial purposes, not specifically exempted herein, to the
end that such highway users shall pay to the State of Oklahoma an
equal amount in taxes on special fuels so used by them in Oklahoma as
is paid by other commercial highway users who use special fuel
obtained in Oklahoma and on which the tax levied by this act is
collected by special fuel dealers and remitted to the Tax Commission.
Said tax is levied as a toll for the use of the public highways of
this state.
When special fuel is delivered into the supply tank or tanks of a
motor vehicle in Oklahoma by a special fuel dealer the tax shall be
collected by the special fuel dealer at the time of such sale and
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delivery and shall be reported and remitted to the Tax Commission as
hereinafter provided. The tax shall be reported and paid by special
fuel dealers on all special fuel delivered by special fuel dealers
into the supply tanks of motor vehicles owned or operated by them. In
all other cases persons delivering special fuel into the supply tank
of any motor vehicle in Oklahoma and all persons who use any special
fuel to propel a motor vehicle upon the public highways of this state
on which fuel the tax levied by this act has not been paid shall
report such use and remit the tax on such special fuel to the Tax
Commission as a special fuel user as hereinafter provided.
Laws 1953, p. 328, § 2; Laws 1965, c. 215, § 1.
§68-703. Imposition of tax.
(a) There is hereby levied and imposed an excise tax of five and
one-half ($0.055) cents per gallon on the use, within the meanings of
the word "use" as defined in this act, of all special fuels delivered
in this state into the fuel supply tank or tanks of motor vehicles.
The delivery or placing of special fuel into the fuel supply tank or
tanks of motor vehicles for use in whole or in part for power to
propel such vehicles on the public highways shall constitute and is
hereby declared to be the taxable incidence of this levy.
(b) An excise tax of five and one-half ($0.055) cents per gallon
is also levied, in consideration of the use of the highways of this
State, on the use of all special fuels imported into Oklahoma in the
fuel supply tank or tanks of motor vehicles and used to propel said
motor vehicles for commercial purposes, public or private, or for
transportation for hire or compensation, on the public highways of
this state, which tax shall be measured and determined by the number
of gallons of such imported special fuels actually used in Oklahoma.
Laws 1953, p. 329, § 3; Laws 1965, c. 215, § 1.
§68-704. Apportionment and use of proceeds of tax.
A. The purpose of Section 701 et seq. of this title is to
provide revenue for general governmental functions of state
government and for the construction and maintenance of state and
county highways and bridges. The tax, including penalties and
interest collected under the levy in Section 703 of this title, shall
be apportioned monthly for use as follows:
1. An amount equal to the revenue, including penalties and
interest thereon, accruing from four cents ($0.04) per gallon of the
five and one-half cents ($0.055) per gallon collected of the tax
levied by Section 703 of this title, shall be apportioned monthly and
used for the following purposes:
a. three percent (3%) shall be paid by the Tax Commission
to the State Treasurer and placed to the credit of the
General Revenue Fund of the State Treasury,
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b. seventy-two and three-fourths percent (72 3/4%) shall
be deposited in the State Treasury to the credit of the
State Transportation Fund, and
c. twenty-four and one-fourth percent (24 1/4%) shall be
transmitted by the Tax Commission to various counties
of the state, in the percentage which the population
and area of each county bears to the population and
area of the entire state. The population shall be as
shown by the last Federal Census or the most recent
annual estimate provided by the U.S. Bureau of the
Census;
2. An amount equal to the revenue, including penalties and
interest thereon, accruing from one cent ($0.01) per gallon of the
five and one-half cents ($0.055) per gallon collected of the tax
levied by Section 703 of this title, shall be apportioned monthly and
shall be deposited in the State Treasury to the credit of the State
Transportation Fund; and
3. An amount equal to the revenue, including penalties and
interest thereon, accruing from one-half cent ($0.005) per gallon of
the five and one-half cents ($0.055) per gallon collected of the tax
levied by Section 703 of this title, shall be apportioned monthly and
distributed as follows:
Forty percent (40%) of such sum shall be distributed to the
various counties in that proportion which the county road mileage of
each county bears to the entire state road mileage as certified by
the State Transportation Commission, and the remaining sixty percent
(60%) of such sum shall be distributed to the various counties on the
basis which the population and area of each county bears to the total
population and area of the state. The population shall be as shown
by the last Federal Census or the most recent annual estimate
provided by the U.S. Bureau of the Census.
B. The funds apportioned or transmitted pursuant to the
provisions of subparagraph c of paragraph 1 of subsection A of this
section and paragraph 3 of subsection A of this section shall be used
in accordance with and subject to the provisions of subsection B of
Section 500.6 of this title.
Added by Laws 1953, p. 329, § 4, eff. May 31, 1953. Renumbered from
§ 727.4 of this title by Laws 1965, c. 215, § 1. Amended by Laws
1985, c. 194, § 6, eff. Nov. 1, 1985; Laws 1986, c. 223, § 38,
operative July 1, 1986; Laws 1986, c. 284, § 12, operative July 1,
1986; Laws 1989, 1st Ex.Sess, c. 1, § 16, eff. July 1, 1990; Laws
1997, c. 284, § 12, eff. July 1, 1997.
§68-705. Additional tax.
(a) There is hereby levied and imposed an excise tax of one
($0.01) cent per gallon on the use, within the meanings of the word
"use" as defined in this act, of all special fuels delivered in this
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state into the fuel supply tank or tanks of motor vehicles. The
delivery or placing of special fuel into the fuel supply tank or
tanks of motor vehicles for use in whole or in part for power to
propel such vehicles on the public highways shall constitute and is
hereby declared to be the taxable incidence of this levy.
(b) An excise tax of one ($0.01) cent per gallon is also levied,
in consideration of the use of the highways of this state, on the use
of all special fuels imported into Oklahoma in the fuel supply tank
or tanks of motor vehicles and used to propel said motor vehicles for
commercial purposes, public or private, or for transportation for
hire or compensation, on the public highways of this state, which tax
shall be measured and determined by the number of gallons of such
imported special fuels actually used in Oklahoma.
Laws 1953, p. 331, § 5; Laws 1955, p. 388, § 1; Laws 1965, c. 215, §
1.
§68-706. Purpose, apportionment and distribution of tax.
It is hereby declared to be the purpose of the levy in Section
705 of this title to provide funds for the construction and
maintenance of county highways and permanent bridges in such counties
and for these purposes it is hereby expressly provided that the
special fuel use tax levied by Section 705 of this title shall be
apportioned and distributed monthly by the Tax Commission to the
several counties in the following manner: one-third (1/3) on area,
one-third (1/3) on rural population, defined as including the
population of all municipalities with a population of less than five
thousand (5,000) according to the latest Federal Decennial Census,
and one-third (1/3) on county road mileage, as last certified by the
Department of Transportation, as each county bears to the entire
area, rural population and road mileage of the state. The funds
apportioned pursuant to this section shall be used in accordance with
and subject to the provisions of subsection B of Section 500.6 of
this title.
Added by Laws 1953, p. 331, § 6, eff. May 31, 1953. Amended by Laws
1959, p. 284, § 1. Renumbered from § 727.6 by Laws 1965, c. 215, §
1. Amended by Laws 1986, c. 284, § 13, operative July 1, 1986; Laws
1997, c. 284, § 13, eff. July 1, 1997.
§68-707. Determination of tax on mileage basis - Levies by political
subdivisions prohibited.
In the event the tax herein imposed on special fuels imported
into this state in the fuel supply tanks of motor vehicles and the
tax on special fuels used in motor vehicles owned and operated by
licensed special fuel dealers or other persons acting as special fuel
users can be more accurately determined on a mileage basis, that is,
by determining and using the total number of miles traveled in
Oklahoma and the total gallons of fuel consumed, or in case it is
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more practicable to so determine the tax, the Tax Commission is
authorized to approve and accept such basis.
No city, town, county or other subdivision of the state shall
levy or collect any excise tax to be paid upon the use of special
fuels as defined by this act.
Laws 1953, p. 332, § 7; Laws 1965, c. 215, § 1.
§68-707.1. Additional excise tax on special fuel - Levy - Exemptions
- Disposition of revenues.
A. In addition to the excise taxes levied by Sections 703 and
705 of this title, there is hereby levied an excise tax of two and
one-half cents ($0.025) upon the use within this state of each and
every gallon of special fuel, which shall be reported and collected
in the same manner as provided by law for the reporting and
collecting of all other tax levies upon the use of special fuel
within this state.
B. The tax levied by this section shall not apply to special
fuel which is exempt from tax under the provisions of Section 708 of
this title.
C. The excise tax of two and one-half cents ($0.025) per gallon
of special fuel levied in this section, together with any interest
and penalties thereon, collected by the Tax Commission shall be
apportioned monthly as follows:
Two cents ($0.02) of the two and one-half cents ($0.025),
together with any interest and penalties thereon, shall be
apportioned according to the provisions of paragraph 1 of Section 704
of this title.
Eighty-seven and five-tenths of one percent (87.5 of 1%) of the
one-half of one cent ($0.005) of the two and one-half cents ($0.025),
together with any interest and penalties thereon, shall be
distributed to the various counties of the state for deposit into the
County Bridge and Road Improvement Fund of each county based on a
formula developed by the Department of Transportation and approved by
the Department of Transportation County Advisory Board created
pursuant to Section 302.1 of Title 69 of the Oklahoma Statutes to be
used for the purposes set forth in the County Bridge and Road
Improvement Act. The formula shall be similar to the formula
currently used for the distribution of monies in the County Bridge
Program funds, but shall also take into consideration the effect of
the terrain and traffic volume as related to county road improvement
and maintenance costs. Twelve and five-tenths of one percent (12.5
of 1%) of the one-half of one cent ($0.005) of the two and one-half
cents ($0.025), together with any interest and penalties thereon,
shall be transmitted by the Tax Commission to the Statewide Circuit
Engineering District Revolving Fund as created in Section 687.2 of
Title 69 of the Oklahoma Statutes.
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Added by Laws 1984, c. 139, § 5, emerg. eff. April 16, 1984. Amended
by Laws 1985, c. 179, § 83, operative July 1, 1985; Laws 1997, c.
284, § 14, eff. July 1, 1997; Laws 2010, c. 256, § 3, eff. July 1,
2010.
§68-707.2. Excise tax on special fuel - Levy - Exemptions -
Disposition of revenues.
A. There is hereby levied an excise tax of one cent ($0.01) upon
the use within this state of each and every gallon of special fuel,
which shall be reported and collected in the same manner as provided
by law for the reporting and collecting of all other tax levies upon
the use of special fuel within this state.
B. The tax levied by this section shall not apply to special
fuel which is exempt from tax pursuant to the provisions of Section
708 of this title.
C. The excise tax of one cent ($0.01) per gallon of special fuel
levied by this section, together with any interest and penalties
thereon, collected by the Tax Commission shall be apportioned as set
forth in paragraph 5 of subsection A and subsection C of Section
500.6 of this title.
Added by Laws 1985, c. 179, § 84, operative July 1, 1985. Amended by
Laws 1985, c. 351, § 18, emerg. eff. July 31, 1985; Laws 1987, c.
113, § 15, operative May 18, 1987; Laws 1995, c. 114, § 5, eff. July
1, 1995; Laws 1996, c. 205, § 6, eff. July 1, 1996; Laws 1997, c.
284, § 15, eff. July 1, 1997.
§68-707.3. Additional excise tax on special fuel - Levy - Exemptions
- Intent of Legislature - Apportionment of revenues.
A. In addition to the excise taxes levied by Sections 703, 705,
707.1 and 707.2 of this title, there is hereby levied an excise tax
of six cents ($0.06) upon the use within this state of each and every
gallon of special fuel, which shall be reported and collected in the
same manner as provided by law for the reporting and collecting of
all other tax levies upon the use of special fuel within this state.
The basis for computation of the amount due shall be one hundred
percent (100%) of the net gallonage reported to the Tax Commission
for taxation, after all deductions allowed by law have been made.
B. The tax levied by this section shall not apply to special
fuel which is exempt from tax pursuant to the provisions of Section
708 of this title.
C. It is hereby declared to be the intent of the Legislature
that the total state excise tax, levied by this section and Sections
703, 705, 707.1 and 707.2 of this title, shall be sixteen cents
($0.16) upon each gallon of special fuel used within Oklahoma and
that no special fuel shall be subject to the total tax more than one
time.
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D. The additional excise tax of six cents ($0.06) per gallon of
special fuel levied by this section, together with any interest and
penalties thereon, collected by the Tax Commission shall be
apportioned monthly as follows:
1. Five cents ($0.05) of the six cents ($0.06), together with
any interest and penalties thereon, shall be apportioned to the State
Transportation Fund; and
2. One cent ($0.01) of the six cents ($0.06), together with any
interest and penalties thereon, shall be distributed to the various
counties in the following manner: thirty percent (30%) based upon
area, thirty percent (30%) based upon population according to the
latest Federal Decennial Census or the most recent annual estimate
provided by the U.S. Bureau of the Census and forty percent (40%)
based upon county road mileage on the basis which the respective
area, population and county road mileage of each county bear to the
total area, population and county road mileage of the state. The
funds so transmitted shall be used in accordance with and subject to
the provisions of subsection B of Section 500.6 of this title.
Added by Laws 1987, c. 113, § 10, operative May 18, 1987. Amended by
Laws 1989, 1st Ex.Sess., c. 1, § 17, eff. July 1, 1990; Laws 1997, c.
284, § 16, eff. July 1, 1997.
§68-708. Exemptions from tax.
The tax levied by this act shall not apply to:
1. Special fuel delivered into the supply tanks of or used by
motor vehicles owned by the United States of America. Provided this
exemption shall not apply to supply tank deliveries in Oklahoma
unless the special fuel dealer demands and receives of the purchaser
an exemption certificate of the kind and type prescribed and
furnished by the Comptroller General of the United States, and such
certificates shall be presented to the Tax Commission in lieu of the
tax only by the special fuel dealer handling and delivering such
special fuel;
2. Special fuel delivered into the supply tanks of farm tractors
and stationary engines owned and operated by the purchaser of such
special fuel and used exclusively for agricultural purposes as such
purposes and uses are defined and enumerated in paragraph 2 of
Section 500.3 of this title;
3. Special fuel imported into Oklahoma in the fuel supply tanks
of motor vehicles commonly known and designated as automobiles, as
distinguished from truck-type vehicles, which are constructed for,
and being used solely for, the transportation of persons for purposes
other than for hire or compensation and provided that the aggregate
capacity of the fuel supply tank or tanks of any such vehicle shall
not exceed thirty (30) gallons;
4. Special fuel imported into Oklahoma in the fuel supply tank
or tanks of a motor vehicle when said supply tank or tanks and any
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additional containers have an aggregate capacity of not more than
twenty-five (25) gallons and if such motor vehicle is not being used
as a common carrier of persons or property, a contract carrier of
persons or property, or as a private commercial carrier of property;
5. Special fuel imported into Oklahoma in the fuel supply tanks
of motor vehicles and used on the highways of this state in importing
or exporting livestock and farm products in the raw state, including
cotton, whether in the seed or ginned, and including cottonseed and
baled hay, when such commodities are moved from farm to market, or
from market to farm on a vehicle or on vehicles owned and operated by
a bona fide farmer not engaged in motor vehicle transportation for
hire or compensation;
6. Special fuel used exclusively in road machinery and equipment
built for and being used on location in the construction, repair or
maintenance of public highways, roads and bridges by road contractors
and by counties, cities and towns of this state, provided, however,
this exemption shall not apply to automobiles nor to truck-type
vehicles such as dump trucks, flatbed trucks and pickup trucks;
7. Special fuel used exclusively in passenger motor buses or
coaches, having a seating capacity of ten or more persons, when such
fuel is purchased by and used exclusively in public transit systems
operated by any county, city, or town of this state, or by any public
trust created under the laws of this state of which a county, city,
or town of this state is the sole beneficiary thereof. Provided this
exemption shall be allowed only when supported by a certificate
executed by such city or trust on forms prescribed and furnished by
the Tax Commission;
8. Special fuel purchased by any county, city or town for use as
fuel to propel motor vehicles on the public roads and highways of
this state, when said vehicles are being operated for the sole
benefit of said county, city or town; provided that if the special
fuel is placed directly into the fuel supply tank or tanks of the
motor vehicle by the supplier, an exemption certificate must be
furnished to the supplier on forms prescribed and furnished by the
Tax Commission;
9. Special fuel purchased by any Oklahoma school district for
use as fuel to propel motor vehicles on the public roads and highways
of this state, when the vehicles are being operated for the sole
benefit of the school district, provided that if the special fuel is
placed directly into the fuel supply tank or tanks of the motor
vehicle by the supplier, an exemption certificate must be furnished
to the supplier on forms prescribed and furnished by the Tax
Commission; and
10. Motor fuels purchased by the Oklahoma Department of
Transportation for use as fuel to propel motor vehicles on the public
roads and highways of this state, when the vehicles are being
operated for the sole benefit of the Department of Transportation.
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Added by Laws 1953, p. 382, § 8. Amended by Laws 1955, c. 383, § 2.
Renumbered from § 727.8 of this title by Laws 1965, c. 215, § 1.
Amended by Laws 1969, c. 111, § 1, operative May 1, 1969; Laws 1976,
c. 16, § 1, emerg. eff. Feb. 26, 1976; Laws 1997, c. 284, § 17, eff.
July 1, 1997; Laws 2001, c. 144, § 1, eff. Nov. 1, 2001.
§68-709. Special fuel dealers' and users' licenses.
(a) Before any person uses any special fuel in this state, within
the meanings of the word "use" as defined herein, such person shall
file an application for and obtain the license (a special fuel
dealer's license or a special fuel user's license) required herein to
cover such use. Provided, however, that persons exempted from the
payment of the tax herein imposed shall not be required to obtain a
license. The application required by this section shall be verified
by affidavit and filed on a form prescribed and furnished by the Tax
Commission showing the name and address and kind of business of the
applicant, the type of license desired, a designation of the
principal place of business and such other information as the Tax
Commission may require. Such application must also contain as a
condition to the issuance of the license, an agreement by the
applicant to comply with the requirements of this act and the rules
and regulations of the Tax Commission.
(b) Before any such application may be approved by the Tax
Commission, the applicant must file a bond payable to the State of
Oklahoma conditioned upon compliance with the provisions of this act
and the rules and regulations of the Tax Commission in the sum of not
more than Twenty-five Thousand Dollars ($25,000.00), the amount
thereof to be fixed by an order of the Tax Commission. The amount of
any such bond required may be increased or reduced by the Tax
Commission at any time. Provided, however, that one bond in an
amount fixed by the Tax Commission of not more than Fifty Thousand
Dollars ($50,000.00) may be made to secure the payment of the tax due
the State of Oklahoma under the provisions of this act, and the other
motor fuel tax laws.
(c) Upon approval of such application and bond, the Tax
Commission shall issue to the applicant a nontransferable special
fuel dealer's license or special fuel user's license, as the case may
be, bearing a distinctive number. Such license shall remain in full
force until surrendered, suspended or canceled in the manner provided
by law. The license of each special fuel dealer shall be valid only
for the use of special fuel by the person to whom it is issued and
shall be displayed conspicuously in the principal place of business
of the holder thereof. The license issued to a special fuel user
shall be valid only for the use of special fuel in the operation of
motor vehicles on the highways of this state by the person to whom it
is issued, including motor vehicles, transporting persons or property
in furtherance of the business of said licensee under a lease, a
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contract or any other arrangement, whether permanent or temporary in
nature.
(d) Each special fuel dealer or special fuel user must make
application for and secure a duplicate of his license for each
station or location operated by such dealer or user at which special
fuel is placed into the fuel tanks of motor vehicles. The
application must be made on a form prescribed and furnished by the
Tax Commission, showing the name, address and license number of the
applicant, the location of the station or storage for which the
duplicate is applied, and such other information as the Tax
Commission may require. Upon approval of such application, the Tax
Commission shall issue to the applicant a nontransferable duplicate
of such special fuel dealer's or special fuel user's license. Each
duplicate license shall continue in full force and effect until
surrendered by the person holding such license, or until canceled by
the Tax Commission. There shall be displayed at each station or
location, where special fuel is placed into fuel supply tanks of
motor vehicles, the duplicate special fuel dealer's or special fuel
user's license under which it is operated. Such license shall be
clearly visible from the driver's seat of any vehicle being serviced.
(e) It shall be unlawful for any person, notwithstanding that
such person holds a valid license as a distributor or importer-user
of motor fuel or gasoline, to act or carry on any operation as a
special fuel dealer or a special fuel user in this state unless such
person is the holder of an uncanceled special fuel dealer's license
or a special fuel user's license, as the case may be, as herein
required, issued to him by the Oklahoma Tax Commission. A license
issued under the provisions of other motor fuel or gasoline tax laws
shall not authorize the holder thereof to use special fuel. Any
retail outlet as defined herein may, at its option, pay to the
supplier, for the benefit of the state, all taxes due on all special
fuels purchased from suppliers or may report all special fuels sales
and make payment of all taxes due as provided in Section 710 of this
act.
Laws 1953, p. 332, § 9; Laws 1965, c. 215, § 1; Laws 1978, c. 98, §
2, eff. July 1, 1978.
§68-710. Reports by dealers and users - Payment of tax.
(a) Every special fuel dealer and special fuel user must on or
before the twentieth day of each calendar month, file with the Tax
Commission a verified report, on a form prescribed and furnished by
the Tax Commission showing the total number of gallons of special
fuel used within this state during the preceding calendar month.
(b) The monthly reports of every special fuel dealer must show
the following information on special fuels: The number of gallons on
hand at the beginning and end of each month; the number of gallons
received from any and all sources supported by detailed schedules and
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receipts and purchases; the number of gallons sold and delivered to
any other licensed special fuel dealer on which the special fuel tax
is assumed by such other licensed dealer, giving full details of each
sale, including the date thereof, invoice number and O.T.C. license
number of the seller and purchaser; number of gallons delivered into
the fuel supply tanks of motor vehicles and such other information as
the Tax Commission may require.
(c) The monthly report of every special fuel user must show the
following information on special fuels: The total miles traveled;
miles traveled in Oklahoma by each motor vehicle using special fuel;
the total gallonage of special fuel consumed; the number of gallons
of special fuel purchased or received in this state; the date of each
purchase or receipt; the name and address of the seller; the delivery
invoice number of each purchase or receipt; and the number of gallons
of special fuel imported into and used in this state. The report must
also include the amount of special fuel on hand at the beginning and
close of the month as shown by the physical inventory, if storage is
maintained in Oklahoma, and a complete record of all receipts into
and withdrawals from said storage. The number of gallons of special
fuel shown to have been purchased tax paid from a licensed special
fuel dealer in Oklahoma shall be deducted from the total number of
gallons of special fuel used in Oklahoma by such special fuel user to
determine the number of gallons of special fuel upon which the tax
levied by this act is to be computed and paid. The requirement of
this section shall not apply to receipts and inventory control date
covering separate bulk storage from which only wholesale distribution
of special fuel is made.
(d) Each special fuel dealer and special fuel user at the time of
filing each monthly report must pay to the Tax Commission the full
amount of tax due for the preceding calendar month at the rate
provided for in this act. Such tax is due and payable on the first
day of each month and if not paid is delinquent from and after the
twentieth day of such month. Motor fuel taxes collected by a
distributor on behalf of a licensed retailer of the distributor or
collected on behalf of a nonlicensed purchaser of motor fuel that are
subsequently determined to be uncollectible by the distributor may be
credited against subsequent motor fuel tax liability imposed by law
upon such distributor. For purposes of this subsection, motor fuel
taxes collected on behalf of a licensed retailer of the distributor
or collected on behalf of a nonlicensed purchaser shall be deemed
uncollectible if such taxes are deducted for purposes of calculating
the federal income tax liability of the distributor. The method for
crediting uncollectible motor fuel taxes as provided by this
subsection shall be prescribed in rules and regulations of the
Oklahoma Tax Commission.
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(e) The license of any person using special fuel who is
delinquent in the payment of the tax levied by this act may be
canceled by the Tax Commission in the manner provided by law.
Amended by Laws 1988, c. 14, § 10, operative July 1, 1988.
§68-711. Registration of vehicles - Use of liquefied gas from cargo
tank.
(a) Before any motor vehicle is operated on the public highways
of this state, the operation of which is subject to the tax levied by
subsection (b) of Section 3 of this act, and including the vehicles
of licensed dealers using special fuel, such motor vehicles must be
registered under this act with the Tax Commission as herein provided.
An application for registration of each motor vehicle required to be
registered must be on a form prescribed and furnished by the Tax
Commission showing the name, address and special fuel user's or
special fuel dealer's license number of the owner or operator of such
vehicle, a complete description of the motor vehicle, including the
make, model, year made, motor number, license tag number, kind of
special fuel used by such motor vehicle and such other information as
the Tax Commission may require.
(b) No vehicle used for the transportation of any liquefied gas,
including butane or propane, shall be allowed to use, for the
operation of said vehicle, gas directly from the cargo tank of said
vehicle or any trailer attached thereto; and any connection of a fuel
line between the motor of such vehicle and any tank other than the
regularly installed fuel tank of such vehicle, direct or indirect,
and any valve or outlet for such a connection, is hereby prohibited.
(c) Upon approval of said application, the Tax Commission shall
register such vehicle and issue a nontransferable special fuel use
vehicle permit therefor bearing a distinctive number and showing that
the vehicle described is registered with the Commission by a licensed
special fuel dealer or user who has complied with the provisions of
this act. Such permits shall remain in force until surrendered,
suspended or canceled in the manner provided by law.
(d) Every person operating a motor vehicle on the highways of
this state as a special fuel dealer or a special fuel user must at
all times during such operation have displayed in the cab of such
motor vehicle a special fuel use vehicle permit which shall be
subject to inspection at all times by representatives of the Tax
Commission and peace officers.
Laws 1953, p. 334, § 11; 1965, c. 215, § 1.
§68-712. Records of dealers and users.
Every special fuel dealer using special fuel to propel any motor
vehicle on the highways of this state and all special fuel users,
including special fuel users who import special fuel into this state
in the supply tanks of motor vehicles using the highways for
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commercial purposes, shall keep, in addition to the foregoing
requirements as to records which apply to them, records of the
mileage traveled by each and all motor vehicles propelled by special
fuel using the highways of this state including the motor vehicles
owned, operated, leased or under any other form of contract, together
with inventories, withdrawals, deliveries, purchases supported by
invoices, and such other records as may be required by the tax
Commission. All such records and invoices must be preserved for a
period of at least three (3) years.
Laws 1953, p. 335, § 12; Laws 1965, c. 215, § 1.
§68-713. Unlicensed first time users - Payment of tax - Credit or
refund.
Any person operating any motor vehicle on the highways of this
state as a special fuel user by importing special fuel into this
state in the supply tanks of the motor vehicle who shall be liable
for the tax levied by this act for the first time and who has not
obtained a special fuel user's license and special fuel use vehicle
permit, shall, for the purpose of determining the number of gallons
of special fuel used on the highways of this state, be required to
pay the Tax Commission the tax levied by this act on all special fuel
contained in the fuel supply tank or tanks, and any other containers,
for use in propelling said vehicle. Upon obtaining a special fuel
user's license and proper vehicle permits and filing a report showing
all of the operations of such person subject to the tax levied by
this act, credit shall be allowed on said report for the tax paid
under the provisions of this section, and any overpayment of the tax
shall be refunded or credited to a future report. However, this
credit shall not be allowed and no refund of such tax shall be made
unless the report taking the credit or the claim for refund is filed
within thirty (30) days from the date of payment of said tax.
Laws 1953, p. 335, § 13; Laws 1965, c. 215, § 1.
§68-714. Accrual of liability for tax - Liability of lessees.
The liability for the tax imposed by this act shall arise and
accrue on the first use of special fuels in this state either against
the special fuel dealer at the time of delivery of special fuel into
the supply tank or tanks of a motor vehicle or against a special fuel
user operating a motor vehicle upon the highways of this state, the
operation of which is subject to and liable for the payment of said
tax. The liability for said tax shall accrue against a special fuel
user importing special fuel into this state in the supply tank or
tanks of a motor vehicle using Oklahoma highways for commercial
purposes at the time and place such motor vehicle shall enter upon a
public highway of this state.
Any special fuel dealer or special fuel user who as lessee, in
furtherance of his business enters into a lease for one or more trips
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or a contract or other arrangement, with another person for the
operation of a motor vehicle, the operation of which vehicle is or
will be subject to the tax herein imposed, shall be deemed to be the
operator of said vehicle or vehicles, and shall report and pay the
tax accruing by reason of such use under said lease, or contract.
Provided that this provision shall not be construed as relieving any
lessor or person acting as a special fuel user from the payment of
the tax herein imposed in cases where the lessee, with whom such
lessor has entered into a lease or contract has not obtained a
special fuel dealer's or user's license under this act. Provided
further, nothing herein shall be construed as requiring the filing of
more than one report covering a given special fuel use operation or
as requiring the payment of the tax herein imposed more than once on
the same special fuel.
Laws 1953, p. 335, § 14; Laws 1965, c. 215, § 1.
§68-715. Cessation of use of special fuel.
Whenever any person to whom a special fuel dealer's license or a
special fuel user's license has been issued ceases using special fuel
within this state, such person must notify the Tax Commission in
writing of said fact within fifteen (15) days after such
discontinuance and surrender his license together with all special
fuel use vehicle permits issued and outstanding under said license.
All tax, penalty and interest on special fuel levied by this act and
due from such person at the time of such discontinuance, shall become
due and payable concurrently with such discontinuance, and such
person must make a report and pay all the tax, interest and penalties
due at the time his license is surrendered.
Laws 1953, p. 336, § 15; Laws 1965, c. 215, § 1.
§68-716. Invoices - Record of deliveries.
Every person acting as a special fuel dealer who sells and
delivers any special fuel, as defined in this act, into the fuel
supply tank or tanks of any motor vehicle in this state must, at the
time of such delivery, make and deliver to the person owning or
operating such vehicle (the purchaser of such fuel or his agent) an
invoice covering each such delivery, showing the name of the operator
or purchaser, the date, the name and address of the special fuel
dealer and his special fuel dealer's license number, the number of
gallons of special fuel delivered, the place of delivery, the correct
name of such fuel, the price per gallon and total sale price of the
amount delivered, and such other information as the Commission may
require. Each such invoice must be made in duplicate, be identified
by consecutive numbers printed thereon, and each special fuel dealer
must furnish said invoices and retain one copy thereof and be able to
account for each numbered delivery invoice and each copy thereof.
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The invoices required by this section must be demanded by every
person purchasing and receiving a delivery of special fuel into the
supply tank of a motor vehicle in Oklahoma at the time of such
delivery and such person shall carry any such invoice with the
vehicle until the fuel covered by same is consumed. If the special
fuel is delivered by a licensed dealer or user into the supply tank
or tanks of his own vehicles, a notation or proper record of same
shall be made on the invoice.
Every person making such sales and deliveries of special fuel and
every person so receiving and purchasing special fuel must each
retain one copy of each such invoice as a part of his permanent
records for a period of at least three (3) years.
Every special fuel dealer or user who shall make any delivery of
special fuel into the supply tank of any motor vehicle owned and
operated by such dealer or user shall make and maintain for at least
three (3) years a record of all such deliveries of special fuel
showing such information as the Commission may require.
Laws 1953, p. 336, § 16; Laws 1965, c. 215, § 1.
§68-717. Records of purchases, sales, delivery, use or disposition
of special fuel - Monthly reports.
All persons manufacturing, refining, producing, importing or
causing to be imported into Oklahoma, any special fuel and all
persons purchasing, receiving or in any manner coming into possession
of such fuel, as defined herein, for sale or use must keep a record
of all such fuel purchased, received, sold, delivered, used, or
otherwise disposed of, including the date and number of gallons of
each such transaction, together with the purchase or sales invoices,
or copies thereof. All such records and invoices must be kept for a
period of at least three (3) years.
All persons making sales or deliveries to any service station or
to any person acting as a special fuel dealer or operating as a
special fuel user must on or before the twentieth day of each
calendar month, file with the Tax Commission a report covering the
preceding calendar month, on a form prescribed and furnished by the
Tax Commission, scheduling and giving full details of each such sale
and such other information as the Tax Commission may require.
Provided, however, that if it should be determined by the Tax
Commission that a report filed on the basis of the total gallons of
special fuel sold or delivered to each station, dealer or user per
month is sufficient the Commission is authorized to approve and
accept such a report.
Laws 1953, p. 337, § 17; Laws 1965, c. 215, § 1.
§68-718. Reports by carriers.
The Tax Commission may require any railroad company, street,
suburban or interurban railway company, pipeline company, common
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carrier and any other person transporting special fuel, either in
interstate or intrastate commerce, to a point within this state, to
make a verified report on a form prescribed and furnished by the Tax
Commission on or before the twentieth day of each month for the
preceding calendar month, showing the name and address of the
transporter, a schedule of all deliveries and consignments of fuel
within the state, including the name and address of the person to
whom such fuel was actually delivered, delivery date, waybill or
invoice number, consignor, point of origin, shipping date, tank car
initial and number, true name of fuel, number of gallons delivered
and such other information as the Tax Commission may require.
The requirements of this section shall not apply to the
transportation of special fuel contained in the fuel supply tank or
tanks of motor vehicles.
Laws 1953, p. 337, § 18; Laws 1965, c. 215, § 1.
§68-719. Violations - Punishment - Venue.
Any person who uses special fuel in this state without a proper
license or who violates any of the provisions of this act shall be
guilty of a misdemeanor and shall, upon conviction thereof, be
punished by a fine of not more than One Thousand Dollars ($1,000.00)
or by imprisonment in the county jail for not more than one (1) year,
or by both such fine and imprisonment. The venue for prosecutions
arising under this section shall be in the county court in which such
violation is committed.
Laws 1953, p. 337, § 19; Laws 1965, c. 215, § 1.
§68-720. Interstate carriers - Showing of public convenience and
necessity - Application of Act.
Nothing in this act shall be construed as requiring interstate
carriers to make a showing of "public convenience and necessity" in
order to secure any license or permit required by the provisions
hereof, and the provisions of this act shall apply to interstate
commerce only in so far as such regulation is permitted by the
Constitution of Oklahoma and the United States, and the holding of
any part of this act or any section or part thereof to be void or
ineffective for any cause by any court shall not affect any other
section or part of this act.
Laws 1953, p. 337, § 20; Laws 1965, c. 215, § 1.
§68-721. Lien of tax.
The tax levied by this act is hereby declared to be a lien upon
any motor vehicle owned or operated in Oklahoma by any person: (1)
who is delinquent in the payment of the tax levied by this act; or,
(2) who imports special fuel into this state in the supply tank or
tanks of a motor vehicle, the use of which special fuel is subject to
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the tax levied by this act, when such person has not obtained a
special fuel user's license.
Any motor vehicle subject to such lien, or being operated on the
highways of Oklahoma in violation of any of the provisions of this
act, may be seized by any authorized agent of the Oklahoma Tax
Commission or any highway patrolman, sheriff, deputy sheriff, or
other peace officer within this state, and disposed of or sold under
said lien to satisfy payment of any tax due from the owner or
operator of such vehicle under this act. Such seizure and sale shall
be in the manner and form as provided by law.
Laws 1953, p. 337, § 21; Laws 1965, c. 215, § 1.
§68-722. Tax credit on special fuels consumed outside State -
Application and procedure.
Any person licensed as a special fuel dealer or special fuel user
shall be entitled to a credit equivalent to the tax rate per gallon
on all special fuels upon which the Oklahoma special fuel tax has
been paid and which has thereafter been consumed in motor vehicles
outside the State of Oklahoma. When the amount of credit herein
provided to which the dealer or user is entitled for any calendar
month exceeds the amount of tax for which such dealer or user is
liable for special fuels consumed in Oklahoma in such vehicles during
the same month, such excess shall, under regulations promulgated by
the Oklahoma Tax Commission, be allowed as a credit against the tax
for which such dealer or user would be otherwise liable for any of
the succeeding months; or, upon claim filed with the Oklahoma Tax
Commission within one (1) year from the first day of any calendar
month in which said special fuel was used, such excess may be
refunded. Application for refund must be supported by evidence of
the mileage traveled and the gallonage consumed and satisfactory
evidence of the tax-paid purchases. Refund vouchers shall be paid
from current collections derived from the tax levied under which the
tax refund claims have been allowed, and a portion of such current
collections as are necessary to pay such refund is hereby
appropriated.
Laws 1968, c. 80, § 1, emerg. eff. March 26, 1968.
§68-723. Fee in lieu of tax.
A. In lieu of the special fuel tax imposed by Sections 703, 705,
707.1, 707.2 and 707.3 of this title, there is hereby levied a flat
fee of Fifty Dollars ($50.00) on each passenger automobile, and on
each pickup truck or van not exceeding one (1) ton in capacity, using
liquefied petroleum gas or natural gas as fuel, except that no such
fee shall be levied on any vehicle which is the subject of an
exemption pursuant to Section 708 of this title. Provided that,
should the passenger automobile, pickup truck or van have been
acquired or should the liquefied petroleum gas or natural gas system
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be installed on or after July 1, the flat fee shall be Twenty-five
Dollars ($25.00) for the remainder of the calendar year, except as
hereinafter provided.
B. Beginning January 1, 1991, in lieu of the special fuel tax
imposed by Sections 703, 705, 707.1, 707.2 and 707.3 of this title,
there is hereby levied a flat fee of One Hundred Dollars ($100.00) on
each passenger automobile, and on each pickup truck or van not
exceeding one (1) ton in capacity, using methanol or "M-85" which is
a mixture of methanol and gasoline containing at least eighty-five
percent (85%) methanol as fuel, except that no such fee shall be
levied on any vehicle which is the subject of an exemption pursuant
to Section 708 of this title. Provided that, should the passenger
automobile, pickup truck or van have been acquired or should methanol
or "M-85" system be installed on or after July 1, the flat fee shall
be Fifty Dollars ($50.00) for the remainder of the calendar year,
except as hereinafter provided.
C. In lieu of the special fuel tax imposed by Sections 703, 705,
707.1, 707.2 and 707.3 of this title, there is hereby levied a flat
fee of One Hundred Fifty Dollars ($150.00) on each vehicle exceeding
one (1) ton in capacity, using liquefied petroleum gas, methanol or
"M-85" as fuel, except that no such fee shall be levied on any
vehicle which is the subject of an exemption pursuant to Section 708
of this title. Provided that, should the vehicle be acquired or
should the methanol or "M-85" system be installed on or after July 1,
the flat fee shall be Seventy-five Dollars ($75.00) for the remainder
of the calendar year, except as hereinafter provided.
D. Every person operating a vehicle using liquefied petroleum
gas, methanol or "M-85" as fuel shall make application for and obtain
a decal to be issued on a yearly basis by the Oklahoma Tax Commission
on forms prescribed and furnished by the Tax Commission.
E. Every person required to make application for and receive a
decal under this section shall, at the time of making said
application, remit to the Tax Commission the total amount of the fee
due.
F. Each decal issued by the Tax Commission pursuant to the
provisions of this section, shall expire on December 31 of every
year, and in addition thereto said decals shall be displayed in the
lower right hand corner of the front windshield of said vehicle.
Upon receipt of satisfactory proof by the Tax Commission that it has
become necessary to replace the windshield of the vehicle for which
the decal was issued, another decal shall be issued by the Tax
Commission as a replacement for a fee of One Dollar ($1.00).
G. When any vehicle using liquefied petroleum gas, methanol or
"M-85" as fuel and displaying a current decal as provided in this
section is sold, such decal shall remain with the vehicle sold,
unless the equipment installed to enable the vehicle to use liquefied
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petroleum gas, methanol or "M-85" has been removed from the vehicle
before the sale.
H. When the aforementioned equipment has been removed before the
sale, the seller of the vehicle shall also remove the decal required
of vehicles using liquefied petroleum gas, methanol or "M-85". The
removed decal, a receipt from the Oklahoma Tax Commission showing
that the fee required has been paid for the current year, and the
payment of a one-dollar fee for duplicate decal shall entitle the
seller to make application for and obtain a new decal to be used for
the remainder of the year on any vehicle using liquefied petroleum
gas, methanol or "M-85" in accordance with the provisions of this
section.
I. Provisions contained in Sections 701 through 721 of this
title shall not apply to any vehicle using liquefied petroleum gas,
methanol or "M-85".
J. All funds derived from the fee imposed by subsection A of
this section shall be deposited annually in the General Revenue Fund
of the State Treasury by the Tax Commission. When any person fails
to obtain a current decal within thirty (30) days of the date said
decal is required as provided in this section, there shall become due
and payable a penalty of twenty percent (20%) of the fee in addition
to the fee. Said penalty to be deposited in the same manner as the
fee pursuant to this subsection.
K. All funds derived from the fee imposed by subsections B and C
of this section shall be collected by the Oklahoma Tax Commission and
apportioned annually to the State Transportation Fund. When any
person fails to obtain a current decal within thirty (30) days of the
date such decal is required as provided in this section, there shall
become due and payable a penalty of twenty percent (20%) of the fee
in addition to the fee. Such penalty shall be deposited in the same
manner as the fee pursuant to this subsection.
Added by Laws 1975, c. 360, § 1, eff. Jan. 1, 1976. Amended by Laws
1978, c. 242, § 1, eff. July 1, 1978; Laws 1982, c. 54, § 1, emerg.
eff. March 30, 1982; Laws 1990, c. 336, § 11, operative July 1, 1990;
Laws 1991, c. 235, § 18, eff. July 1, 1991; Laws 1992, c. 306, § 2,
eff. July 1, 1992; Laws 1993, c. 224, § 7, eff. Sept. 1, 1993; Laws
2011, c. 163, § 8, eff. Jan. 1, 2012; Laws 2013, c. 375, § 8, eff.
Jan. 1, 2014.
§68-801. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-802. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-802.1. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42,
§ 6, eff. Jan. 1, 2010.
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§68-803. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-804. Additional tax to absorb federal credit.
In case the tax levied upon the value of the property of the
estate in Oklahoma and transfers by Section 801 et seq. of this title
is less than the credit allowed by the federal government on estate
tax imposed upon the value of the property of the estate in Oklahoma,
for state estate and inheritance taxes imposed upon the value of the
property of the estate in Oklahoma, pursuant to 26 U.S.C. Section
2011, then, in that event, there shall be levied an additional tax
which shall be imposed upon the value of the property of the estate
in Oklahoma, as of the date of the determination of the Federal
Estate Tax, equal to the difference between such credit and the
Oklahoma Estate Tax levied upon the value of the property of the
estate in Oklahoma and transfers by this Article. Such credit
allowed by the federal government shall be the percentage of such
credit which is the percentage which the value of the property of the
estate in Oklahoma bears to the total value of the estate of the
decedent. Such additional tax to absorb the credit shall be
determined, assessed, collected and paid pursuant to the provisions
of Section 801 et seq. of this title.
Added by Laws 1965, c. 250, § 2. Amended by Laws 1981, c. 237, § 2,
eff. Jan. 1, 1982; Laws 1996, c. 334, § 2, eff. Nov. 1, 1996.
§68-804.1. Estate tax lien.
For deaths occurring on or after January 1, 2010, no lien related
to estate tax shall attach to any property passing through the estate
of a decedent, by joint tenancy, or otherwise. No order exempting
estate tax liability shall be necessary to authorize the release of
such property or for the title of real property to be marketable.
This shall not be construed as relieving an estate from lien
obligations in effect for deaths occurring before January 1, 2010;
provided, that for deaths occurring before January 1, 2010, any lien
related to estate tax shall be extinguished subsequent to the lapse
of ten (10) years after the date of death of a decedent and no order
exempting estate tax liability shall be necessary to authorize
release of such property or for the title of real property to be
marketable.
Added by Laws 2010, c. 436, § 5, eff. July 1, 2010. Amended by Laws
2017, c. 171, § 1, eff. Nov. 1, 2017.
§68-805. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
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§68-806. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-807. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-808. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-809. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-810. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-811. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-812. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-813. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-814. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-815. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-815.1. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42,
§ 6, eff. Jan. 1, 2010.
§68-816. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-816.1. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42,
§ 6, eff. Jan. 1, 2010.
§68-817. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-818. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-819. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
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§68-820. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-821. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-822. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-823. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-824. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-825. Repealed by Laws 2006, 2nd Extraordinary Session, c. 42, §
6, eff. Jan. 1, 2010.
§68-826. Repealed by Laws 2004, c. 535, § 16, eff. Nov. 1, 2004.
§68-827. Repealed by Laws 2004, c. 535, § 17, eff. Nov. 1, 2004.
§68-1001. Gross production tax on asphalt, ores, oil and gas, and
royalty interests - Exemptions.
A. There is hereby levied upon the production of asphalt, ores
bearing lead, zinc, jack and copper a tax equal to three-fourths of
one percent (3/4 of 1%) on the gross value thereof.
B. On or after the effective date of this act and except as
provided by paragraph 4 of this subsection, there shall be levied a
tax on the gross value of the production of oil and gas as follows:
1. Upon the production of oil a tax equal to seven percent (7%)
of the gross value of the production of oil based on a per barrel
measurement of forty-two (42) U.S. gallons of two hundred thirty-one
(231) cubic inches per gallon, computed at a temperature of sixty
(60) degrees Fahrenheit;
2. Upon the production of gas a tax equal to seven percent (7%)
of the gross value of the production of gas;
3. Notwithstanding the levies in paragraphs 1 and 2 of this
subsection, the production of oil, gas, or oil and gas from wells
spudded prior to the effective date of this act, and on or after the
effective date of this act, shall be taxed at a rate of five percent
(5%) commencing with the month of first production for a period of
thirty-six (36) months. Thereafter, the production shall be taxed as
provided in paragraphs 1 and 2 of this subsection; and
4. If the provisions of Article XIII-C of the Oklahoma
Constitution are approved by the people pursuant to adoption of State
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Question No. 795, the rate of gross production tax imposed by
paragraph 3 of this subsection shall be reduced to two percent (2%)
for the first thirty-six (36) months of production and thereafter the
rate of taxation shall be seven percent (7%).
C. The taxes hereby levied shall also attach to, and are levied
on, what is known as the royalty interest, and the amount of such tax
shall be a lien on such interest.
D. The Tax Commission shall have the power to require any such
person engaged in mining or the production or the purchase of such
asphalt, mineral ores aforesaid, oil, or gas, or the owner of any
royalty interest therein to furnish any additional information by it
deemed to be necessary for the purpose of correctly computing the
amount of the tax; and to examine the books, records and files of
such person; and shall have power to conduct hearings and compel the
attendance of witnesses, and the production of books, records and
papers of any person.
E. Any person or any member of any firm or association, or any
officer, official, agent or employee of any corporation who shall
fail or refuse to testify; or who shall fail or refuse to produce any
books, records or papers which the Tax Commission shall require; or
who shall fail or refuse to furnish any other evidence or information
which the Tax Commission may require; or who shall fail or refuse to
answer any competent questions which may be put to him or her by the
Tax Commission, touching the business, property, assets or effects of
any such person relating to the gross production tax imposed by this
article or exemption authorized pursuant to this section or other
laws, shall be guilty of a misdemeanor, and, upon conviction thereof,
shall be punished by a fine of not more than Five Hundred Dollars
($500.00), or imprisonment in the jail of the county where such
offense shall have been committed, for not more than one (1) year, or
by both such fine and imprisonment; and each day of such refusal on
the part of such person shall constitute a separate and distinct
offense.
F. The Tax Commission shall have the power and authority to
ascertain and determine whether or not any report herein required to
be filed with it is a true and correct report of the gross products,
and of the value thereof, of such person engaged in the mining or
production or purchase of asphalt and ores bearing minerals aforesaid
and of oil and gas. If any person has made an untrue or incorrect
report of the gross production or value or volume thereof, or shall
have failed or refused to make such report, the Tax Commission shall,
under the rules prescribed by it, ascertain the correct amount of
either, and compute the tax.
G. The payment of the taxes herein levied shall be in full, and
in lieu of all taxes by the state, counties, cities, towns, school
districts and other municipalities upon any property rights attached
to or inherent in the right to the minerals, upon producing leases
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for the mining of asphalt and ores bearing lead, zinc, jack or
copper, or for oil, or for gas, upon the mineral rights and
privileges for the minerals aforesaid belonging or appertaining to
land, upon the machinery, appliances and equipment used in and around
any well producing oil, or gas, or any mine producing asphalt or any
of the mineral ores aforesaid and actually used in the operation of
such well or mine. The payment of gross production tax shall also be
in lieu of all taxes upon the oil, gas, asphalt or ores bearing
minerals hereinbefore mentioned during the tax year in which the same
is produced, and upon any investment in any of the leases, rights,
privileges, minerals or other property described herein. Any
interest in the land, other than that herein enumerated, and oil in
storage, asphalt and ores bearing minerals hereinbefore named, mined,
produced and on hand at the date as of which property is assessed for
general and ad valorem taxation for any subsequent tax year, shall be
assessed and taxed as other property within the taxing district in
which such property is situated at the time.
H. No equipment, material or property shall be exempt from the
payment of ad valorem tax by reason of the payment of the gross
production tax except such equipment, machinery, tools, material or
property as is actually necessary and being used and in use in the
production of asphalt or of ores bearing lead, zinc, jack or copper
or of oil or gas. Provided, the exemption shall include the wellbore
and non-recoverable down-hole material, including casing, actually
used in the disposal of waste materials produced with such oil or
gas. It is expressly declared that no ice plants, hospitals, office
buildings, garages, residences, gasoline extraction or absorption
plants, water systems, fuel systems, rooming houses and other
buildings, nor any equipment or material used in connection
therewith, shall be exempt from ad valorem tax.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1001 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1971, c. 53, § 1, emerg. eff. March 31, 1971; Laws
1976, c. 62, § 1, emerg. eff. April 22, 1976; Laws 1980, c. 129, § 1,
emerg. eff. April 14, 1980; Laws 1987, c. 50, § 1; Laws 1990, c. 229,
§ 1, operative July 1, 1990; Laws 1992, c. 30, § 1, emerg. eff. March
31, 1992; Laws 1993, c. 273, § 4, eff. July 1, 1993; Laws 1994, c.
311, § 1, eff. July 1, 1994; Laws 1995, c. 321, § 1, eff. July 1,
1995; Laws 1996, c. 360, § 1, eff. July 1, 1996; Laws 1997, c. 390, §
2, eff. July 1, 1997; Laws 1999, 1st Ex. Sess., c. 1, § 1, emerg.
eff. Feb. 5, 1999; Laws 2000, c. 315, § 5, eff. July 1, 2000; Laws
2001, c. 249, § 1, eff. July 1, 2001; Laws 2002, c. 416, § 1, eff.
July 1, 2002; Laws 2003, c. 463, § 1, eff. July 1, 2003; Laws 2004,
c. 189, § 1, eff. July 1, 2004; Laws 2004, c. 444, § 1, eff. Nov. 1,
2004; Laws 2005, c. 297, § 1, eff. July 1, 2005; Laws 2006, c. 134, §
2, eff. July 1, 2006; Laws 2007, c. 260, § 1, eff. July 1, 2007; Laws
2008, c. 278, § 1, eff. Jan. 1, 2009; Laws 2009, c. 2, § 21, emerg.
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eff. March 12, 2009; Laws 2009, c. 312, § 1, eff. July 1, 2009; Laws
2010, c. 252, § 1, emerg. eff. May 10, 2010; Laws 2010, c. 443, § 1,
eff. July 1, 2010; Laws 2011, c. 157, § 1; Laws 2011, c. 353, § 1,
eff. Jan. 1, 2012; Laws 2013, c. 401, § 1, eff. Nov. 1, 2013; Laws
2014, c. 346, § 1, eff. July 1, 2014; Laws 2017, c. 336, § 1, eff.
July 1, 2017; Laws 2017, c. 355, § 1, eff. July 1, 2017;
Laws 2017, 1st Ex. Sess., c. 5, § 1, emerg. eff. Nov. 17, 2017; Laws
2018, 2nd Ex. Sess., c. 8, § 7.
NOTE: Laws 2008, c. 380, § 1 repealed by Laws 2009, c. 2, § 22,
emerg. eff. March 12, 2009.
§68-1001.1. Property exempt from ad valorem taxation - Rules and
regulations for determination.
The Oklahoma Tax Commission shall adopt rules and regulations
which establish guidelines for the determination of property exempt
from ad valorem taxation pursuant to the provisions of subsections G
and H of Section 1001 of this title. Said guidelines shall include,
but are not limited to, the following:
1. "Producing leases" means wells or leases or production units
which have had production during any of the previous three (3)
calendar years which is subject to the gross production tax levied by
Section 1001 of this title and which have not been abandoned or
required to be plugged as required by law on or before January 1 of
the year for which the assessment or valuation is made;
2. "Payment of gross production tax" means payment of the tax
levied by Section 1001 of this title on production during any of the
three (3) calendar years immediately prior to January 1 of the year
for which the assessment or valuation is made; and
3. Property exempt from ad valorem tax pursuant to the
provisions of subsections G and H of Section 1001 of this title shall
include, but is not limited to, lease production tanks, lease
production meters, and disposal systems, including all materials and
equipment of disposal systems and the lines transporting the waste
materials, serving one or more wells, which are not for commercial
purposes. Provided, the exemption shall include the wellbore and
non-recoverable down-hole material, including casing, actually used
in the commercial disposal of waste materials produced with such oil
or gas. Such exempt property shall remain exempt as long as the
property is essential to the production of oil and gas in commercial
quantities. The county assessor shall be notified when such property
becomes nonexempt.
Added by Laws 1985, c. 345, § 16, emerg. eff. July 30, 1985. Amended
by Laws 1991, c. 342, § 11, emerg. eff. June 15, 1991. Renumbered
from § 1101.1 of this title by Laws 1991, c. 342, § 27, emerg. eff.
June 15, 1991. Amended by Laws 1994, c. 311, § 2, eff. July 1, 1994;
Laws 1998, c. 106, § 1, eff. Nov. 1, 1998; Laws 2013, c. 401, § 2,
eff. Nov. 1, 2013; Laws 2019, c. 168, § 1, eff. Nov. 1, 2019.
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§68-1001.2. Definitions.
As used in this article:
(a) "Gas" means natural gas or casinghead gas. The terms gas,
natural gas or casinghead gas when used in this article are
interchangeable, and any provisions relating to any one of these
shall relate to all gas, natural gas or casinghead gas;
(b) "Lease" means a spaced unit, a separately metered formation
within the spaced unit, or each tract within a Corporation Commission
approved unitization, or a lease which, for tax reporting purposes,
has been assigned a production unit number;
(c) "Oil" means petroleum or other crude or mineral oil; and
(d) "Person" means any natural person, firm, partnership, joint
venture, association, limited liability company, corporation, estate,
trust, and any other group or combination acting as a unit.
Added by Laws 1992, c. 30, § 2, emerg. eff. March 30, 1992. Amended
by Laws 1993, c. 366, § 36, eff. Sept. 1, 1993.
§68-1001.3. Repealed by Laws 1999, 1st Ex.Sess., c. 1, § 8, eff.
Jan. 1, 2000.
§68-1001.3a. Economically at-risk oil or gas lease - Tax exemptions.
A. As used in this section:
1. Prior to January 1, 2015, "economically at-risk oil or gas
lease" means any oil or gas lease operated at a net loss or at a net
profit which is less than the total gross production tax remitted for
such lease during the previous calendar year;
2. On or after January 1, 2015, "economically at-risk oil or gas
lease" means any oil or gas lease with one or more producing wells
with an average production volume per well of ten (10) barrels of oil
or sixty (60) MCF of natural gas per day or less operated at a net
loss or at a net profit which is less than the total gross production
tax remitted for such lease during the previous calendar year; and
3. "Lease" shall be defined as in Section 1001.2 of this title.
B. When certified as such pursuant to the provisions of this
section, production from an economically at-risk oil or gas lease
shall be eligible for an exemption from the gross production tax
levied pursuant to subsection B of Section 1001 of this title for
production on such lease during the previous calendar year in the
following amounts:
1. If the gross production tax rate levied pursuant to
subsection B of Section 1001 of this title was seven percent (7%),
then the exemption shall equal six-sevenths (6/7) of the gross
production tax levied;
2. If the gross production tax rate levied pursuant to
subsection B of Section 1001 of this title was four percent (4%),
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then the exemption shall equal three-fourths (3/4) of the gross
production tax levied; and
3. If the gross production tax rate levied pursuant to
subsection B of Section 1001 of this title was one percent (1%) or
two percent (2%), no exemption shall apply.
C. For all production exempt from gross production taxes
pursuant to this section, a refund of gross production taxes paid for
production in the previous calendar year in the amounts specified in
subsection B of this section, subject to the limitations and
provisions specified in subsections D and J of this section, shall be
issued to the well operator or a designee. For production in
calendar years ending on or before December 31, 2015, the refund
shall not be claimed until after July 1 of the year following the
year of production. For production in the calendar year ending
December 31, 2016, the refund shall be claimed before July 1, 2017.
The Tax Commission shall not accept or pay any claim for refund filed
on or after July 1, 2017.
D. For oil and natural gas produced from qualifying leases in
calendar years 2015 and 2016, the total amount of refunds authorized
in this section for each calendar year shall not exceed Twelve
Million Five Hundred Thousand Dollars ($12,500,000.00) for all
products combined. If the amount of claims exceeds Twelve Million
Five Hundred Thousand Dollars ($12,500,000.00), the Tax Commission
shall determine the percentage of the refund which establishes the
proportionate share of the refund which may be claimed by any
taxpayer so that the maximum amount authorized by this subsection is
not exceeded.
E. Any operator making application for an economically at-risk
oil or gas lease status under the provisions of this section shall
submit documentation to the Tax Commission, as determined by the Tax
Commission to be appropriate and necessary.
F. For the purposes of this section, determination of the
economically at-risk oil or gas lease status shall be made by
subtracting from the gross revenue of that lease for the previous
calendar year severance taxes, if any, royalty, operating expenses of
the lease to include expendable workover and recompletion costs for
the previous calendar year, and including overhead costs up to the
maximum overhead percentage allowed by the Council of Petroleum
Accountants Societies (COPAS) guidelines. For the purposes of this
calculation, depreciation, depletion or intangible drilling costs
shall not be included as lease operating expenses.
G. The Tax Commission shall have sole authority to determine if
an oil or gas lease qualifies for certification as an economically
at-risk oil or gas lease. The Tax Commission shall promulgate rules
governing the certification process.
H. Except as provided in subsection I of this section, gross
production tax exemptions under the provisions of this section shall
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be limited to production from calendar years 2005, 2006, 2007, 2008,
2009, 2010, 2011, 2012 and 2013; provided, no claims for refunds for
calendar years provided in this subsection shall be paid on or after
December 31, 2015.
I. Gross production tax exemptions claimed under the provisions
of this section shall be limited to production from calendar years
2014, 2015 and 2016; provided, no claims for refunds for the calendar
years 2014 and 2015 shall be claimed or paid more than eighteen (18)
months after the first day of the fiscal year during which the refund
is first available. For production in calendar year 2016, no claim
for refund filed on or after July 1, 2017, shall be claimed or paid.
J. Claims for refunds pursuant to the provisions of this section
for production periods ending on or before December 31, 2016, shall
be paid pursuant to the provisions of this subsection. The claims
for refunds referenced herein shall be paid in equal payments over a
period of thirty-six (36) months. The first payment shall be made
after July 1, 2018, but prior to August 1, 2018. The Tax Commission
shall provide, not later than June 30, 2018, to the operator or
designated interest owner, a schedule of rebates to be paid out over
the thirty-six-month period.
Added by Laws 2005, c. 436, § 1, eff. July 1, 2005. Amended by Laws
2007, c. 260, § 2, eff. July 1, 2007; Laws 2010, c. 252, § 2, emerg.
eff. May 10, 2010; Laws 2014, c. 346, § 2, eff. July 1, 2014; Laws
2016, c. 383, § 1, eff. July 1, 2016; Laws 2017, c. 336, § 2, eff.
July 1, 2017.
§68-1001.4. Natural and casinghead gas marketing deduction – Costs -
Rules.
A. Producers of natural gas and casinghead gas who incur
marketing costs of the gas produced may deduct such costs from the
gross value when computing the gross value subject to the taxes
levied pursuant to Sections 1001 and 1101 of Title 68 of the Oklahoma
Statutes.
B. Marketing costs are nonproduction costs incurred by the
producer to enable the transport of gas from the well to the market,
including:
1. Costs for compressing the gas sold;
2. Costs for dehydrating the gas sold;
3. Costs for sweetening the gas sold; and
4. Costs for delivering the gas to the purchaser.
C. Marketing costs do not include:
1. Costs incurred in producing the gas;
2. Costs incurred in normal lease separation of the oil, gas or
condensate; or
3. Insurance premiums on the marketing facility.
D. Marketing costs are determined by adding:
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1. Charges for depreciation of the marketing facility being
used, provided that, if the facility is rented, the actual rental fee
is added;
2. A return on the producer-owned investment equal to six
percent (6%) per year on the average depreciable balance;
3. Costs of direct or allocated labor associated with the
marketing facility;
4. Costs of materials, supplies, maintenance, repairs, and fuel
associated with the marketing facility; and
5. Ad valorem taxes paid on the marketing facility.
E. If the facility is used for a purpose other than marketing
the gas being sold, the cost shall be allocated accordingly.
F. If the facility is handling gas for outside parties, the
average cost for handling all of the gas shall be applied against the
facility owner's gas.
G. The actual cost being charged a producer by an outside party
for marketing functions may be used for tax purposes if no other
benefit or value accrues to the producer.
H. A producer receiving a cost reimbursement from the gas
purchaser shall include the reimbursement in the gross value and is
entitled to deduct the actual marketing costs incurred.
I. The Oklahoma Tax Commission shall promulgate rules which
establish guidelines to implement the provisions of this section
including requirements to submit any additional information as deemed
necessary to implement and administer this deduction.
Added by Laws 2007, c. 250, § 3, eff. Jan. 1, 2008.
§68-1002. Failure to make report of gross production
A. If any person shall fail to make the report of the gross
production of any mine or oil or gas well, upon which a gross
production tax is levied, within the time prescribed by law for such
report it shall be the duty of the Tax Commission to examine the
books, records and files of such person to ascertain the amount and
value of such production and to compute the tax thereon.
B. The Oklahoma Tax Commission is hereby directed to enhance
agency efforts to ensure the proper reporting and collection of gross
production taxes. Such efforts may include the use of enhanced
technology to ensure that all production is accurately reported and
the auditing of claims for refunds or rebates to verify the accuracy
of the claims filed.
Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963. Renumbered from §
10-1002 by Laws 1965, c. 215, § 2. Amended by Laws 1965, c. 346, §
1, emerg. eff. June 28, 1965; Laws 1992, c. 30, § 3, emerg. eff.
March 30, 1992; Laws 2016, c. 328, §3.
§68-1003. Tax on oil recovered or from unknown sources.
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A. It shall be the duty of the Oklahoma Tax Commission to
collect, in addition to the gross production tax, twelve and one-half
percent (12 1/2%) of the gross value of all oil reported to the Tax
Commission as recovered from streams, lakes, ponds, ravines and other
natural depressions to which oil shall have escaped or therein was
found and twelve and one-half percent (12 1/2%) of the gross value of
all oil which is reported to the Tax Commission and which report does
not disclose the actual source of the oil. In the event the rightful
owner or owners of the royalty interest therein provide satisfactory
proof of mineral ownership to the Tax Commission within twelve (12)
months of when the tax payment was received by the Tax Commission,
such royalty interest owners shall be paid their proper interest or
interests. Otherwise, the Tax Commission shall distribute such sum
as provided by law for the distribution of gross production taxes.
B. For purposes of this section, "actual source" shall be the
well or wells and particular leasehold from which the oil was
produced.
C. The operators of salt water disposal facilities shall be
required to pay to the Tax Commission the fee of twelve and one-half
percent (12 1/2%) as required by this section on the amount of oil
recovered in excess of two percent (2%) of the volume of water
handled.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1003 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1989, c. 279, § 10, operative July 1, 1989; Laws
1992, c. 30, § 4, emerg. eff. March 31, 1992; Laws 2001, c. 249, § 2,
eff. July 1, 2001; Laws 2016, c. 114, § 1, eff. July 1, 2016.
§68-1004. See the following versions:
OS 68-1004v1 (SB 427, Laws 2019, c. 168, § 2).
OS 68-1004v2 (HB 1852, Laws 2019, c. 266, § 1).
§68-1004a. Repealed by Laws 1999, 1st Ex.Sess., c. 1, § 7, emerg.
eff. Feb. 5, 1999.
§68-1004v1. Apportionment and use of proceeds of tax.
A. As used in this section:
1. "Moving five-year average amount for gas" means, for purposes
of the apportionments prescribed by this section, the amount of gross
production tax on natural gas collected for each of the five (5)
complete fiscal years, as computed by the State Board of Equalization
pursuant to Section 34.103 of Title 62 of the Oklahoma Statutes; and
2. "Moving five-year average amount for oil" means, for purposes
of the apportionments prescribed by this section, the amount of gross
production tax on oil collected for each of the five (5) complete
fiscal years, as computed by the State Board of Equalization pursuant
to Section 34.103 of Title 62 of the Oklahoma Statutes.
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B. Beginning July 1, 2017, the gross production tax provided for
in Section 1001 of this title is hereby levied and shall be collected
and apportioned as follows:
1. For all monies collected from the tax levied on asphalt or
ores bearing uranium, lead, zinc, jack, gold, silver or copper:
a. eighty-five and seventy-two one-hundredths percent
(85.72%) shall be paid to the State Treasurer of the
state to be placed in the General Revenue Fund of the
state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
b. seven and fourteen one-hundredths percent (7.14%) of
the sum collected from natural gas and/or casinghead
gas or asphalt or ores bearing uranium, lead, zinc,
jack, gold, silver or copper shall be paid to the
various county treasurers to be credited to the County
Highway Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
c. seven and fourteen one-hundredths percent (7.14%) shall
be allocated to each county as provided for in
subparagraph b of this paragraph and shall be
apportioned, on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
2. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of seven percent (7%) pursuant to
the provisions of subsection B of Section 1001 of this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on natural gas and/or casinghead gas to the
Revenue Stabilization Fund created by Section 34.102 of
Title 62 of the Oklahoma Statutes, the amount of
revenue, if any, which exceeds the moving five-year
average amount for gas as defined pursuant to paragraph
1 of subsection A of this section,
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b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, eighty-five and seventy-two one-hundredths
percent (85.72%) shall be paid to the State Treasurer
of the state to be placed in the General Revenue Fund
of the state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) of the sum collected from
natural gas and/or casinghead gas shall be paid to the
various county treasurers to be credited to the County
Highway Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) shall be allocated to each
county as provided for in subparagraph c of this
paragraph and shall be apportioned, on an average daily
attendance per capita distribution basis, as certified
by the State Superintendent of Public Instruction to
the school districts of the county where such pupils
attend school regardless of residence of such pupil,
provided the school district makes an ad valorem tax
levy of fifteen (15) mills for the current year and
maintains twelve (12) years of instruction;
3. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of four percent (4%) pursuant to
the provisions of subsection B of Section 1001 of this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on natural gas and/or casinghead gas to the
Revenue Stabilization Fund created pursuant to Section
34.102 of Title 62 of the Oklahoma Statutes, the amount
of revenue, if any, which exceeds the moving five-year
average amount for gas as defined pursuant to paragraph
1 of subsection A of this section,
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b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, seventy-five percent (75%) shall be paid to
the State Treasurer of the state to be placed in the
General Revenue Fund of the state and used for the
general expense of state government, to be paid out
pursuant to direct appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
(12.5%) of the sum collected from natural gas and/or
casinghead gas shall be paid to the various county
treasurers to be credited to the County Highway Fund as
follows: Each county shall receive a proportionate
share of the funds available based upon the proportion
of the total value of production from such county in
the corresponding month of the preceding year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
(12.5%) shall be allocated to each county as provided
for in subparagraph c of this paragraph and shall be
apportioned, on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
4. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of one percent (1%) pursuant to
the provisions of subsection B of Section 1001 of this title:
a. fifty percent (50%) of the sum collected from natural
gas and/or casinghead gas shall be paid to the various
county treasurers to be credited to the County Highway
Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
b. fifty percent (50%) shall be allocated to each county
as provided for in subparagraph a of this paragraph and
shall be apportioned, on an average daily attendance
per capita distribution basis, as certified by the
State Superintendent of Public Instruction to the
school districts of the county where such pupils attend
school regardless of residence of such pupil, provided
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the school district makes an ad valorem tax levy of
fifteen (15) mills for the current year and maintains
twelve (12) years of instruction;
5. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of two percent (2%) pursuant to
the provisions of paragraph 3 of subsection B of Section 1001 of this
title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on gas to the Revenue Stabilization Fund
created by Section 34.102 of Title 62 of the Oklahoma
Statutes, the amount of revenue, if any, which exceeds
the moving five-year average amount for natural gas
and/or casinghead gas as defined pursuant to paragraph
1 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, fifty percent (50%) shall be paid to the State
Treasurer to be placed in the General Revenue Fund of
the state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
of the sum collected from natural gas and/or casinghead
gas shall be paid to the various county treasurers to
be credited to the County Highway Fund as follows: Each
county shall receive a proportionate share of the funds
available based upon the proportion of the total value
of production from such county in the corresponding
month of the preceding year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
shall be allocated to each county as provided for in
subparagraph c of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
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(15) mills for the current year and maintains twelve
(12) years of instruction;
6. For all monies collected from the tax levied on oil at a tax
rate of seven percent (7%) pursuant to the provisions of subsection B
of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
after the applicable maximum amount prescribed by
subsection C of this section has been deposited to the
funds therein specified, the amount of revenue, if any,
which would otherwise be apportioned to the General
Revenue Fund and which exceeds the moving five-year
average amount for oil as defined pursuant to paragraph
2 of subsection A of this section,
b. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five and seventy-two
one-hundredths percent (25.72%) shall be paid to the
State Treasurer to be placed in the Common Education
Technology Revolving Fund created in Section 34.90 of
Title 62 of the Oklahoma Statutes,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five and seventy-two
one-hundredths percent (25.72%) shall be paid to the
State Treasurer to be placed in the Higher Education
Capital Revolving Fund created in Section 34.91 of
Title 62 of the Oklahoma Statutes,
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five and seventy-two
one-hundredths percent (25.72%) shall be paid to the
State Treasurer to be placed in the Oklahoma Student
Aid Revolving Fund created in Section 34.92 of Title 62
of the Oklahoma Statutes,
e. before any other apportionment of revenue has been made
pursuant to this paragraph, three and seven hundred
forty-five one-thousandths percent (3.745%) shall be
distributed to the various counties of the state for
deposit into the County Bridge and Road Improvement
Fund of each county based on a formula developed by the
Department of Transportation and approved by the
Department of Transportation County Advisory Board
created pursuant to Section 302.1 of Title 69 of the
Oklahoma Statutes to be used for the purposes set forth
in the County Bridge and Road Improvement Act. The
formula shall be similar to the formula currently used
for the distribution of monies in the County Bridge
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Program funds, but shall also take into consideration
the effect of the terrain and traffic volume as related
to county road improvement and maintenance costs,
f. before any other apportionment of revenue has been made
pursuant to this paragraph, four and twenty-eight one-
hundredths percent (4.28%) shall be paid to the State
Treasurer to be apportioned to:
(1) the following sources and in the following amounts
through the fiscal year ending June 30, 2019:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund
created pursuant to Section 2254.1 of Title
74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3-2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2019, and for each fiscal
year thereafter,
g. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) of the sum collected from
oil shall be paid to the various county treasurers, to
be credited to the County Highway Fund as follows:
Each county shall receive a proportionate share of the
funds available based upon the proportion of the total
value of production from such county in the
corresponding month of the preceding year,
h. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) shall be allocated to each
county as provided in subparagraph g of this paragraph
and shall be apportioned, on an average daily
attendance per capita distribution basis, as certified
by the State Superintendent of Public Instruction, to
the school districts of the county where such pupils
attend school regardless of residence of such pupil,
provided the school district makes an ad valorem tax
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levy of fifteen (15) mills for the current year and
maintains twelve (12) years of instruction, and
i. before any other apportionment of revenue has been made
pursuant to this paragraph, five hundred thirty-five
one-thousandths percent (0.535%) of the levy shall be
transmitted by the Oklahoma Tax Commission to the
Statewide Circuit Engineering District Revolving Fund
as created in Section 687.2 of Title 69 of the Oklahoma
Statutes;
7. For all monies collected from the tax levied on oil at a tax
rate of four percent (4%) pursuant to the provisions of subsection B
of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
after the applicable maximum amount prescribed by
subsection C of this section has been deposited to the
funds therein specified, the amount of revenue, if any,
which would otherwise be apportioned to the General
Revenue Fund and which exceeds the moving five-year
average amount for oil as defined pursuant to paragraph
2 of subsection A of this section,
b. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-two and one-half
percent (22.5%) shall be paid to the State Treasurer to
be placed in the Common Education Technology Revolving
Fund created in Section 34.90 of Title 62 of the
Oklahoma Statutes,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-two and one-half
percent (22.5%) shall be paid to the State Treasurer to
be placed in the Higher Education Capital Revolving
Fund created in Section 34.91 of Title 62 of the
Oklahoma Statutes,
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-two and one-half
percent (22.5%) shall be paid to the State Treasurer to
be placed in the Oklahoma Student Aid Revolving Fund
created in Section 34.92 of Title 62 of the Oklahoma
Statutes,
e. before any other apportionment of revenue has been made
pursuant to this paragraph, three and twenty-eight one-
hundredths percent (3.28%) shall be distributed to the
various counties of the state for deposit into the
County Bridge and Road Improvement Fund of each county
based on a formula developed by the Department of
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Transportation and approved by the Department of
Transportation County Advisory Board created pursuant
to Section 302.1 of Title 69 of the Oklahoma Statutes
to be used for the purposes set forth in the County
Bridge and Road Improvement Act. The formula shall be
similar to the formula currently used for the
distribution of monies in the County Bridge Program
funds, but shall also take into consideration the
effect of the terrain and traffic volume as related to
county road improvement and maintenance costs,
f. before any other apportionment of revenue has been made
pursuant to this paragraph, three and seventy-five one-
hundredths percent (3.75%) shall be paid to the State
Treasurer to be apportioned to:
(1) the following sources and in the following amounts
through the fiscal year ending June 30, 2019:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund
created pursuant to Section 2254.1 of Title
74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3-2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2019, and for each fiscal
year thereafter,
g. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
(12.5%) of the sum collected from oil shall be paid to
the various county treasurers, to be credited to the
County Highway Fund as follows: Each county shall
receive a proportionate share of the funds available
based upon the proportion of the total value of
production from such county in the corresponding month
of the preceding year,
h. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
(12.5%) shall be allocated to each county as provided
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in subparagraph g of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction, and
i. before any other apportionment of revenue has been made
pursuant to this paragraph, forty-seven one-hundredths
percent (0.47%) of the levy shall be transmitted by the
Tax Commission to the Statewide Circuit Engineering
District Revolving Fund as created in Section 687.2 of
Title 69 of the Oklahoma Statutes;
8. For all monies collected from the tax levied on oil at a tax
rate of one percent (1%) pursuant to the provisions of subsection B
of Section 1001 of this title:
a. fifty percent (50%) of the sum collected shall be paid
to the various county treasurers, to be credited to the
County Highway Fund as follows: Each county shall
receive a proportionate share of the funds available
based upon the proportion of the total value of
production from such county in the corresponding month
of the preceding year, and
b. fifty percent (50%) shall be allocated to each county
as provided for in subparagraph a of this paragraph and
shall be apportioned on an average daily attendance per
capita distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
9. For all monies collected from the tax levied on oil at a tax
rate of two percent (2%) pursuant to the provisions of paragraph 3 of
subsection B of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
the amount of revenue, if any, which exceeds the moving
five-year average amount for oil as defined pursuant to
paragraph 2 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for oil as
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prescribed by paragraph 2 of subsection A of this
section, fifty percent (50%) shall be paid to the State
Treasurer to be placed in the General Revenue Fund of
the state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
of the sum collected from oil shall be paid to the
various county treasurers, to be credited to the County
Highway Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
shall be allocated to each county as provided in
subparagraph c of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
10. On or after June 28, 2018, the gross production tax levied
on natural gas or casinghead gas at the rate of five percent (5%)
provided for in paragraph 3 of subsection B of Section 1001 of this
title shall be apportioned as follows:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on natural gas and/or casinghead gas to the
Revenue Stabilization Fund created pursuant to Section
34.102 of Title 62 of the Oklahoma Statutes, the amount
of revenue, if any, which exceeds the moving five-year
average amount for gas as defined pursuant to paragraph
1 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, eighty percent (80%) shall be paid to the
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State Treasurer of the state to be placed in the
General Revenue Fund of the state and used for the
general expense of state government, to be paid out
pursuant to direct appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) of the
sum collected from natural gas and/or casinghead gas
shall be paid to the various county treasurers to be
credited to the County Highway Fund as follows: Each
county shall receive a proportionate share of the funds
available based upon the proportion of the total value
of production from such county in the corresponding
month of the preceding year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) shall be
allocated to each county as provided for in
subparagraph c of this paragraph and shall be
apportioned, on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction; and
11. On or after June 28, 2018, the gross production tax on oil
levied at the rate of five percent (5%) provided for in paragraph 3
of subsection B of Section 1001 of this title shall be apportioned as
follows:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
after the applicable maximum amount prescribed by
subsection C of this section has been deposited to the
funds therein specified, the amount of revenue, if any,
which would otherwise be apportioned to the General
Revenue Fund and which exceeds the moving five-year
average amount for oil as defined pursuant to paragraph
2 of subsection A of this section,
b. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-three and seventy-
five one-hundredths percent (23.75%) shall be paid to
the State Treasurer to be placed in the Common
Education Technology Revolving Fund created in Section
34.90 of Title 62 of the Oklahoma Statutes,
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c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-three and seventy-
five one-hundredths percent (23.75%) shall be paid to
the State Treasurer to be placed in the Higher
Education Capital Revolving Fund created in Section
34.91 of Title 62 of the Oklahoma Statutes,
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-three and seventy-
five one-hundredths percent (23.75%) shall be paid to
the State Treasurer to be placed in the Oklahoma
Student Aid Revolving Fund created in Section 34.92 of
Title 62 of the Oklahoma Statutes,
e. before any other apportionment of revenue has been made
pursuant to this paragraph, three and twenty-eight one-
hundredths percent (3.28%) shall be distributed to the
various counties of the state for deposit into the
County Bridge and Road Improvement Fund of each county
based on a formula developed by the Department of
Transportation and approved by the Department of
Transportation County Advisory Board created pursuant
to Section 302.1 of Title 69 of the Oklahoma Statutes
to be used for the purposes set forth in the County
Bridge and Road Improvement Act. The formula shall be
similar to the formula currently used for the
distribution of monies in the County Bridge Program
funds, but shall also take into consideration the
effect of the terrain and traffic volume as related to
county road improvement and maintenance costs,
f. before any other apportionment of revenue has been made
pursuant to this paragraph, five percent (5%) shall be
paid to the State Treasurer to be apportioned to:
(1) the following sources and in the following amounts
through the fiscal year ending June 30, 2019:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund
created pursuant to Section 2254.1 of Title
74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3-2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
9)!&#!%!%%"'%)6! !2!(# 7!8-
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2019, and for each fiscal
year thereafter,
g. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) of the
sum collected from oil shall be paid to the various
county treasurers, to be credited to the County Highway
Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year,
h. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) shall be
allocated to each county as provided in subparagraph g
of this paragraph and shall be apportioned on an
average daily attendance per capita distribution basis,
as certified by the State Superintendent of Public
Instruction, to the school districts of the county
where such pupils attend school regardless of residence
of such pupil, provided the school district makes an ad
valorem tax levy of fifteen (15) mills for the current
year and maintains twelve (12) years of instruction,
and
i. before any other apportionment of revenue has been made
pursuant to this paragraph, forty-seven one-hundredths
percent (0.47%) of the levy shall be transmitted by the
Tax Commission to the Statewide Circuit Engineering
District Revolving Fund as created in Section 687.2 of
Title 69 of the Oklahoma Statutes.
C. Provided, notwithstanding any other provision of this
section, the total amounts deposited to the Common Education
Technology Revolving Fund, the Higher Education Capital Revolving
Fund, the Oklahoma Student Aid Revolving Fund, the Rural Economic
Action Plan Water Projects Fund, the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund, the Oklahoma
Conservation Commission Infrastructure Revolving Fund and the
Community Water Infrastructure Development Revolving Fund pursuant to
paragraphs 6, 7 and 11 of subsection B of this section shall not
exceed One Hundred Fifty Million Dollars ($150,000,000.00) in any
fiscal year. Except as otherwise provided in this subsection, all
sums in excess of One Hundred Fifty Million Dollars ($150,000,000.00)
in any fiscal year which would otherwise be deposited in such funds
9)!&#!%!%%"'%)6! !2!(# 7!8
shall be apportioned by the Oklahoma Tax Commission to the General
Revenue Fund of the state.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1004 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1982, c. 329, § 1, eff. July 1, 1982; Laws 1985, c.
180, § 8, eff. July 1, 1985; Laws 1986, c. 223, § 39, operative July
1, 1986; Laws 1988, c. 165, § 28, operative July 1, 1988; Laws 1989,
1st Ex. Sess., c. 2, § 95, emerg. eff. April 25, 1990; Laws 1992, c.
376, § 5, eff. July 1, 1992; Laws 1993, c. 239, § 18, eff. July 1,
1993; Laws 1999, 1st Ex. Sess., c. 1, § 3, emerg. eff. Feb. 5, 1999;
Laws 1999, c. 254, § 6, eff. June 30, 1999; Laws 2000, c. 419, § 4,
emerg. eff. June 9, 2000; Laws 2001, c. 270, § 1, emerg. eff. May 24,
2001; Laws 2002, c. 416, § 2, eff. July 1, 2002; Laws 2006, 2nd Ex.
Sess., c. 43, § 1, eff. July 1, 2006; Laws 2007, c. 1, § 55, eff.
July 1, 2007; Laws 2009, c. 305, § 1, eff. July 1, 2009; Laws 2010,
c. 256, § 4, eff. July 1, 2010; Laws 2011, c. 319, § 1, emerg. eff.
May 24, 2011; Laws 2012, c. 2, § 1, emerg. eff. March 12, 2012; Laws
2012, c. 205, § 1, eff. Nov. 1, 2012; Laws 2014, c. 346, § 3, eff.
July 1, 2014; Laws 2016, c. 164, § 1, emerg. eff. April 25, 2016;
Laws 2016, c. 337, § 4, eff. Nov. 1, 2016; Laws 2017, c. 355, § 2,
eff. July 1, 2017; Laws 2018, 2nd Ex. Sess., c. 8, § 8; Laws 2019, c.
168, § 2, eff. Nov. 1, 2019.
NOTE: Laws 1998, c. 317, § 5 repealed by Laws 1999, 1st Ex. Sess.,
c. 1, § 7, emerg. eff. Feb. 5, 1999. Laws 2006, 2nd Ex. Sess., c.
45, § 5 repealed by Laws 2007, c. 1, § 56, eff. July 1, 2007.
§68-1004v2. Apportionment and use of proceeds of tax.
A. As used in this section:
1. "Moving five-year average amount for gas" means, for purposes
of the apportionments prescribed by this section, the amount of gross
production tax on natural gas collected for each of the five (5)
complete fiscal years, as computed by the State Board of Equalization
pursuant to Section 34.103 of Title 62 of the Oklahoma Statutes; and
2. "Moving five-year average amount for oil" means, for purposes
of the apportionments prescribed by this section, the amount of gross
production tax on oil collected for each of the five (5) complete
fiscal years, as computed by the State Board of Equalization pursuant
to Section 34.103 of Title 62 of the Oklahoma Statutes.
B. Beginning July 1, 2017, the gross production tax provided for
in Section 1001 of this title is hereby levied and shall be collected
and apportioned as follows:
1. For all monies collected from the tax levied on asphalt or
ores bearing uranium, lead, zinc, jack, gold, silver or copper:
a. eighty-five and seventy-two one-hundredths percent
(85.72%) shall be paid to the State Treasurer of the
state to be placed in the General Revenue Fund of the
state and used for the general expense of state
9)!&#!%!%%"'%)6! !2!(# 7!8;
government, to be paid out pursuant to direct
appropriation by the Legislature,
b. seven and fourteen one-hundredths percent (7.14%) of
the sum collected from natural gas and/or casinghead
gas or asphalt or ores bearing uranium, lead, zinc,
jack, gold, silver or copper shall be paid to the
various county treasurers to be credited to the County
Highway Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
c. seven and fourteen one-hundredths percent (7.14%) shall
be allocated to each county as provided for in
subparagraph b of this paragraph and shall be
apportioned, on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
2. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of seven percent (7%) pursuant to
the provisions of subsection B of Section 1001 of this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on natural gas and/or casinghead gas to the
Revenue Stabilization Fund created by Section 34.102 of
Title 62 of the Oklahoma Statutes, the amount of
revenue, if any, which exceeds the moving five-year
average amount for gas as defined pursuant to paragraph
1 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, eighty-five and seventy-two one-hundredths
percent (85.72%) shall be paid to the State Treasurer
of the state to be placed in the General Revenue Fund
of the state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
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c. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) of the sum collected from
natural gas and/or casinghead gas shall be paid to the
various county treasurers to be credited to the County
Highway Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) shall be allocated to each
county as provided for in subparagraph c of this
paragraph and shall be apportioned, on an average daily
attendance per capita distribution basis, as certified
by the State Superintendent of Public Instruction to
the school districts of the county where such pupils
attend school regardless of residence of such pupil,
provided the school district makes an ad valorem tax
levy of fifteen (15) mills for the current year and
maintains twelve (12) years of instruction;
3. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of four percent (4%) pursuant to
the provisions of subsections B and E of Section 1001 of this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on natural gas and/or casinghead gas to the
Revenue Stabilization Fund created pursuant to Section
34.102 of Title 62 of the Oklahoma Statutes, the amount
of revenue, if any, which exceeds the moving five-year
average amount for gas as defined pursuant to paragraph
1 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, seventy-five percent (75%) shall be paid to
the State Treasurer of the state to be placed in the
General Revenue Fund of the state and used for the
general expense of state government, to be paid out
pursuant to direct appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
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(12.5%) of the sum collected from natural gas and/or
casinghead gas shall be paid to the various county
treasurers to be credited to the County Highway Fund as
follows: Each county shall receive a proportionate
share of the funds available based upon the proportion
of the total value of production from such county in
the corresponding month of the preceding year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
(12.5%) shall be allocated to each county as provided
for in subparagraph c of this paragraph and shall be
apportioned, on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
4. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of one percent (1%) pursuant to
the provisions of subsection B of Section 1001 of this title:
a. fifty percent (50%) of the sum collected from natural
gas and/or casinghead gas shall be paid to the various
county treasurers to be credited to the County Highway
Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
b. fifty percent (50%) shall be allocated to each county
as provided for in subparagraph a of this paragraph and
shall be apportioned, on an average daily attendance
per capita distribution basis, as certified by the
State Superintendent of Public Instruction to the
school districts of the county where such pupils attend
school regardless of residence of such pupil, provided
the school district makes an ad valorem tax levy of
fifteen (15) mills for the current year and maintains
twelve (12) years of instruction;
5. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of two percent (2%) pursuant to
the provisions of subparagraph c of paragraph 3 of subsection B of
Section 1001 of this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
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for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on gas to the Revenue Stabilization Fund
created by Section 34.102 of Title 62 of the Oklahoma
Statutes, the amount of revenue, if any, which exceeds
the moving five-year average amount for natural gas
and/or casinghead gas as defined pursuant to paragraph
1 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, fifty percent (50%) shall be paid to the State
Treasurer to be placed in the General Revenue Fund of
the state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
of the sum collected from natural gas and/or casinghead
gas shall be paid to the various county treasurers to
be credited to the County Highway Fund as follows: Each
county shall receive a proportionate share of the funds
available based upon the proportion of the total value
of production from such county in the corresponding
month of the preceding year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
shall be allocated to each county as provided for in
subparagraph c of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
6. For all monies collected from the tax levied on oil at a tax
rate of seven percent (7%) pursuant to the provisions of subsection B
of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
after the applicable maximum amount prescribed by
subsection C of this section has been deposited to the
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funds therein specified, the amount of revenue, if any,
which would otherwise be apportioned to the General
Revenue Fund and which exceeds the moving five-year
average amount for oil as defined pursuant to paragraph
2 of subsection A of this section,
b. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five and seventy-two
one-hundredths percent (25.72%) shall be paid to the
State Treasurer to be placed in the Common Education
Technology Revolving Fund created in Section 34.90 of
Title 62 of the Oklahoma Statutes,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five and seventy-two
one-hundredths percent (25.72%) shall be paid to the
State Treasurer to be placed in the Higher Education
Capital Revolving Fund created in Section 34.91 of
Title 62 of the Oklahoma Statutes,
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five and seventy-two
one-hundredths percent (25.72%) shall be paid to the
State Treasurer to be placed in the Oklahoma Student
Aid Revolving Fund created in Section 34.92 of Title 62
of the Oklahoma Statutes,
e. before any other apportionment of revenue has been made
pursuant to this paragraph, three and seven hundred
forty-five one-thousandths percent (3.745%) shall be
distributed to the various counties of the state for
deposit into the County Bridge and Road Improvement
Fund of each county based on a formula developed by the
Department of Transportation and approved by the
Department of Transportation County Advisory Board
created pursuant to Section 302.1 of Title 69 of the
Oklahoma Statutes to be used for the purposes set forth
in the County Bridge and Road Improvement Act. The
formula shall be similar to the formula currently used
for the distribution of monies in the County Bridge
Program funds, but shall also take into consideration
the effect of the terrain and traffic volume as related
to county road improvement and maintenance costs,
f. before any other apportionment of revenue has been made
pursuant to this paragraph, four and twenty-eight one-
hundredths percent (4.28%) shall be paid to the State
Treasurer to be apportioned to:
(1) the following sources and in the following amounts
through the fiscal year ending June 30, 2022:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
9)!&#!%!%%"'%)6! !2!(# 7!8;
Department Capital Expenditure Revolving Fund
created pursuant to Section 2254.1 of Title
74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3-2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2022, and for each fiscal
year thereafter,
g. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) of the sum collected from
oil shall be paid to the various county treasurers, to
be credited to the County Highway Fund as follows:
Each county shall receive a proportionate share of the
funds available based upon the proportion of the total
value of production from such county in the
corresponding month of the preceding year,
h. before any other apportionment of revenue has been made
pursuant to this paragraph, seven and fourteen one-
hundredths percent (7.14%) shall be allocated to each
county as provided in subparagraph g of this paragraph
and shall be apportioned, on an average daily
attendance per capita distribution basis, as certified
by the State Superintendent of Public Instruction, to
the school districts of the county where such pupils
attend school regardless of residence of such pupil,
provided the school district makes an ad valorem tax
levy of fifteen (15) mills for the current year and
maintains twelve (12) years of instruction, and
i. before any other apportionment of revenue has been made
pursuant to this paragraph, five hundred thirty-five
one-thousandths percent (0.535%) of the levy shall be
transmitted by the Oklahoma Tax Commission to the
Statewide Circuit Engineering District Revolving Fund
as created in Section 687.2 of Title 69 of the Oklahoma
Statutes;
9)!&#!%!%%"'%)6! !2!(# 7!8;
7. For all monies collected from the tax levied on oil at a tax
rate of four percent (4%) pursuant to the provisions of subsections B
and E of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
after the applicable maximum amount prescribed by
subsection C of this section has been deposited to the
funds therein specified, the amount of revenue, if any,
which would otherwise be apportioned to the General
Revenue Fund and which exceeds the moving five-year
average amount for oil as defined pursuant to paragraph
2 of subsection A of this section,
b. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-two and one-half
percent (22.5%) shall be paid to the State Treasurer to
be placed in the Common Education Technology Revolving
Fund created in Section 34.90 of Title 62 of the
Oklahoma Statutes,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-two and one-half
percent (22.5%) shall be paid to the State Treasurer to
be placed in the Higher Education Capital Revolving
Fund created in Section 34.91 of Title 62 of the
Oklahoma Statutes,
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-two and one-half
percent (22.5%) shall be paid to the State Treasurer to
be placed in the Oklahoma Student Aid Revolving Fund
created in Section 34.92 of Title 62 of the Oklahoma
Statutes,
e. before any other apportionment of revenue has been made
pursuant to this paragraph, three and twenty-eight one-
hundredths percent (3.28%) shall be distributed to the
various counties of the state for deposit into the
County Bridge and Road Improvement Fund of each county
based on a formula developed by the Department of
Transportation and approved by the Department of
Transportation County Advisory Board created pursuant
to Section 302.1 of Title 69 of the Oklahoma Statutes
to be used for the purposes set forth in the County
Bridge and Road Improvement Act. The formula shall be
similar to the formula currently used for the
distribution of monies in the County Bridge Program
funds, but shall also take into consideration the
9)!&#!%!%%"'%)6! !2!(# 7!8;0
effect of the terrain and traffic volume as related to
county road improvement and maintenance costs,
f. before any other apportionment of revenue has been made
pursuant to this paragraph, three and seventy-five one-
hundredths percent (3.75%) shall be paid to the State
Treasurer to be apportioned to:
(1) the following sources and in the following amounts
through the fiscal year ending June 30, 2022:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund
created pursuant to Section 2254.1 of Title
74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3-2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2022, and for each fiscal
year thereafter,
g. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
(12.5%) of the sum collected from oil shall be paid to
the various county treasurers, to be credited to the
County Highway Fund as follows: Each county shall
receive a proportionate share of the funds available
based upon the proportion of the total value of
production from such county in the corresponding month
of the preceding year,
h. before any other apportionment of revenue has been made
pursuant to this paragraph, twelve and one-half percent
(12.5%) shall be allocated to each county as provided
in subparagraph g of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
9)!&#!%!%%"'%)6! !2!(# 7!8;-
(15) mills for the current year and maintains twelve
(12) years of instruction, and
i. before any other apportionment of revenue has been made
pursuant to this paragraph, forty-seven one-hundredths
percent (0.47%) of the levy shall be transmitted by the
Tax Commission to the Statewide Circuit Engineering
District Revolving Fund as created in Section 687.2 of
Title 69 of the Oklahoma Statutes;
8. For all monies collected from the tax levied on oil at a tax
rate of one percent (1%) pursuant to the provisions of subsection B
of Section 1001 of this title:
a. fifty percent (50%) of the sum collected shall be paid
to the various county treasurers, to be credited to the
County Highway Fund as follows: Each county shall
receive a proportionate share of the funds available
based upon the proportion of the total value of
production from such county in the corresponding month
of the preceding year, and
b. fifty percent (50%) shall be allocated to each county
as provided for in subparagraph a of this paragraph and
shall be apportioned on an average daily attendance per
capita distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
9. For all monies collected from the tax levied on oil at a tax
rate of two percent (2%) pursuant to the provisions of subparagraph c
of paragraph 3 of subsection B of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
the amount of revenue, if any, which exceeds the moving
five-year average amount for oil as defined pursuant to
paragraph 2 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for oil as
prescribed by paragraph 2 of subsection A of this
section, fifty percent (50%) shall be paid to the State
Treasurer to be placed in the General Revenue Fund of
the state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
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c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
of the sum collected from oil shall be paid to the
various county treasurers, to be credited to the County
Highway Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-five percent (25%)
shall be allocated to each county as provided in
subparagraph c of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction;
10. On or after the effective date of this act, the gross
production tax levied on natural gas or casinghead gas at the rate of
five percent (5%) provided for in paragraph 3 of subsection B of
Section 1001 of this title shall be apportioned as follows:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five-year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the gross
production tax levy imposed pursuant to Section 1001 of
this title on natural gas and/or casinghead gas to the
Revenue Stabilization Fund created pursuant to Section
34.102 of Title 62 of the Oklahoma Statutes, the amount
of revenue, if any, which exceeds the moving five-year
average amount for gas as defined pursuant to paragraph
1 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, eighty percent (80%) shall be paid to the
State Treasurer of the state to be placed in the
General Revenue Fund of the state and used for the
general expense of state government, to be paid out
pursuant to direct appropriation by the Legislature,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) of the
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sum collected from natural gas and/or casinghead gas
shall be paid to the various county treasurers to be
credited to the County Highway Fund as follows: Each
county shall receive a proportionate share of the funds
available based upon the proportion of the total value
of production from such county in the corresponding
month of the preceding year, and
d. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) shall be
allocated to each county as provided for in
subparagraph c of this paragraph and shall be
apportioned, on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction to the school
districts of the county where such pupils attend school
regardless of residence of such pupil, provided the
school district makes an ad valorem tax levy of fifteen
(15) mills for the current year and maintains twelve
(12) years of instruction; and
11. On or after the effective date of this act, the gross
production tax on oil levied at the rate of five percent (5%)
provided for in paragraph 3 of subsection B of this title shall be
apportioned as follows:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this title
on oil to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
after the applicable maximum amount prescribed by
subsection C of this section has been deposited to the
funds therein specified, the amount of revenue, if any,
which would otherwise be apportioned to the General
Revenue Fund and which exceeds the moving five-year
average amount for oil as defined pursuant to paragraph
2 of subsection A of this section,
b. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-three and seventy-
five one-hundredths percent (23.75%) shall be paid to
the State Treasurer to be placed in the Common
Education Technology Revolving Fund created in Section
34.90 of Title 62 of the Oklahoma Statutes,
c. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-three and seventy-
five one-hundredths percent (23.75%) shall be paid to
the State Treasurer to be placed in the Higher
Education Capital Revolving Fund created in Section
34.91 of Title 62 of the Oklahoma Statutes,
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d. before any other apportionment of revenue has been made
pursuant to this paragraph, twenty-three and seventy-
five one-hundredths percent (23.75%) shall be paid to
the State Treasurer to be placed in the Oklahoma
Student Aid Revolving Fund created in Section 34.92 of
Title 62 of the Oklahoma Statutes,
e. before any other apportionment of revenue has been made
pursuant to this paragraph, three and twenty-eight one-
hundredths percent (3.28%) shall be distributed to the
various counties of the state for deposit into the
County Bridge and Road Improvement Fund of each county
based on a formula developed by the Department of
Transportation and approved by the Department of
Transportation County Advisory Board created pursuant
to Section 302.1 of Title 69 of the Oklahoma Statutes
to be used for the purposes set forth in the County
Bridge and Road Improvement Act. The formula shall be
similar to the formula currently used for the
distribution of monies in the County Bridge Program
funds, but shall also take into consideration the
effect of the terrain and traffic volume as related to
county road improvement and maintenance costs,
f. before any other apportionment of revenue has been made
pursuant to this paragraph, five percent (5%) shall be
paid to the State Treasurer to be apportioned to:
(1) the following sources and in the following amounts
through the fiscal year ending June 30, 2022:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund
created pursuant to Section 2254.1 of Title
74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3-2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2022, and for each fiscal
year thereafter,
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g. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) of the
sum collected from oil shall be paid to the various
county treasurers, to be credited to the County Highway
Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the preceding
year,
h. before any other apportionment of revenue has been made
pursuant to this paragraph, ten percent (10%) shall be
allocated to each county as provided in subparagraph g
of this paragraph and shall be apportioned on an
average daily attendance per capita distribution basis,
as certified by the State Superintendent of Public
Instruction, to the school districts of the county
where such pupils attend school regardless of residence
of such pupil, provided the school district makes an ad
valorem tax levy of fifteen (15) mills for the current
year and maintains twelve (12) years of instruction,
and
i. before any other apportionment of revenue has been made
pursuant to this paragraph, forty-seven one-hundredths
percent (0.47%) of the levy shall be transmitted by the
Tax Commission to the Statewide Circuit Engineering
District Revolving Fund as created in Section 687.2 of
Title 69 of the Oklahoma Statutes.
C. Provided, notwithstanding any other provision of this
section, the total amounts deposited to the Common Education
Technology Revolving Fund, the Higher Education Capital Revolving
Fund, the Oklahoma Student Aid Revolving Fund, the Rural Economic
Action Plan Water Projects Fund, the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund, the Oklahoma
Conservation Commission Infrastructure Revolving Fund and the
Community Water Infrastructure Development Revolving Fund pursuant to
paragraphs 6, 7 and 11 of subsection B of this section shall not
exceed One Hundred Fifty Million Dollars ($150,000,000.00) in any
fiscal year. Except as otherwise provided in this subsection, all
sums in excess of One Hundred Fifty Million Dollars ($150,000,000.00)
in any fiscal year which would otherwise be deposited in such funds
shall be apportioned by the Oklahoma Tax Commission to the General
Revenue Fund of the state.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1004 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1982, c. 329, § 1, eff. July 1, 1982; Laws 1985, c.
180, § 8, eff. July 1, 1985; Laws 1986, c. 223, § 39, operative July
1, 1986; Laws 1988, c. 165, § 28, operative July 1, 1988; Laws 1989,
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1st Ex. Sess., c. 2, § 95, emerg. eff. April 25, 1990; Laws 1992, c.
376, § 5, eff. July 1, 1992; Laws 1993, c. 239, § 18, eff. July 1,
1993; Laws 1999, 1st Ex. Sess., c. 1, § 3, emerg. eff. Feb. 5, 1999;
Laws 1999, c. 254, § 6, eff. June 30, 1999; Laws 2000, c. 419, § 4,
emerg. eff. June 9, 2000; Laws 2001, c. 270, § 1, emerg. eff. May 24,
2001; Laws 2002, c. 416, § 2, eff. July 1, 2002; Laws 2006, 2nd Ex.
Sess., c. 43, § 1, eff. July 1, 2006; Laws 2007, c. 1, § 55, eff.
July 1, 2007; Laws 2009, c. 305, § 1, eff. July 1, 2009; Laws 2010,
c. 256, § 4, eff. July 1, 2010; Laws 2011, c. 319, § 1, emerg. eff.
May 24, 2011; Laws 2012, c. 2, § 1, emerg. eff. March 12, 2012; Laws
2012, c. 205, § 1, eff. Nov. 1, 2012; Laws 2014, c. 346, § 3, eff.
July 1, 2014; Laws 2016, c. 164, § 1, emerg. eff. April 25, 2016;
Laws 2016, c. 337, § 4, eff. Nov. 1, 2016; Laws 2017, c. 355, § 2,
eff. July 1, 2017; Laws 2018, 2nd Ex. Sess., c. 8, § 8; Laws 2019, c.
266, § 1, eff. July 1, 2019.
NOTE: Laws 1998, c. 317, § 5 repealed by Laws 1999, 1st Ex. Sess.,
c. 1, § 7, emerg. eff. Feb. 5, 1999. Laws 2006, 2nd Ex. Sess., c.
45, § 5 repealed by Laws 2007, c. 1, § 56, eff. July 1, 2007.
§68-1005. Reports by carriers of oil and gas transported - Refiners
- Persons purchasing or storing oil - Delinquency dates – Penalties.
(a) Upon request of the Tax Commission, every railroad company,
pipeline or transportation company shall provide, upon forms
prescribed by it, any and all information relative to the
transportation of crude oil or gas subject to gross production tax,
that may be required to properly enforce the provisions of this
article; and such reports shall contain, along with other information
required, the name of shipper, amount of oil and gas transported,
point of receipt of shipment and point of destination. The Tax
Commission may require any such pipeline or transportation company to
install suitable measuring devices to enable such company to include
in such reports the quantity of oil or gas transported within, into,
out of, or across the State of Oklahoma.
(b) It shall be the duty of every person engaged in the
operation of a refinery for the processing of oil or gas in the State
of Oklahoma to furnish monthly to the Tax Commission, upon forms
prescribed by it, any and all information relative to the amount of
oil or gas subject to gross production tax that has been processed by
it during such monthly period, and oil on hand at the close of such
period, that may be required to properly enforce the provisions of
this article.
(c) It shall be the duty of every person engaged in the selling,
purchasing, treating or transporting of tank bottoms, pit oil or
liquid hydrocarbons from which petroleum oil is extracted, to furnish
monthly a report to the Tax Commission, upon forms prescribed by it,
any and all information relative to the selling, purchasing, treating
or transporting of all tank bottoms, pit oil or liquid hydrocarbons
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that may be required to properly enforce the provisions of this
article.
(d) It shall be the duty of every person engaged in the
purchasing or storing of oil subject to gross production tax in the
State of Oklahoma to furnish monthly a report to the Tax Commission,
upon forms prescribed by it, showing the amount of such oil in
storage, giving, along with other information required, the location,
identity, character and capacity of the storage receptacle in which
such oil is stored.
(e) All reports required by this article shall become due on the
first day of each calendar month on all lead, zinc, jack, copper,
petroleum oil, tank bottoms, pit oil and liquid hydrocarbons from
which petroleum oil is extracted, natural gas or casinghead gas
produced in and saved during the preceding monthly period, and if
such reports are not received on or before the tenth day of the
calendar month following the month such reports become due, the
reports shall become delinquent. The failure of any person to comply
with the provisions of this section shall make any such person liable
for a penalty, in accordance with Section 1010 of this title, for
each day it shall fail or refuse to furnish such statement or comply
with the provisions of this article. Such penalty may be recovered
at the suit of the state, on relation of the Tax Commission and shall
be apportioned as other gross production tax penalties.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1005 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1968, c. 341, § 1, emerg. eff. May 9, 1968; Laws
1979, c. 88, § 1, emerg. eff. April 24, 1979; Laws 1992, c. 30, § 5,
emerg. eff. March 31, 1992; Laws 2016, c. 114, § 2, eff. July 1,
2016.
§68-1006. Payment where ownership is in dispute - Assignment as
security.
Whenever oil, gas or any other minerals upon which gross
production tax is paid under the laws of the State of Oklahoma, are
in litigation or dispute involving ownership of such oil, gas or
other minerals, subject to such tax, and such oil, gas or other
minerals are sold, the usual gross production tax, as provided by
law, shall be paid from the proceeds or funds in the hands of the
purchaser of such oil, gas or other minerals; and in lieu of payment
for such production, to the extent of such tax, the Tax Commission's
receipt therefor shall be accepted in lieu of money in settlement of
the purchase price of such production; and whenever any such oil, gas
or other minerals are assigned as security for debt or otherwise,
such tax shall be likewise paid by such assignee; and such tax shall
constitute a lien upon the interest assigned, which shall be
paramount to such indebtedness for which the assignment is made; and
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whenever such tax shall become delinquent, the usual penalty shall
apply.
Added by Laws 1963, c. 365, § 2. Amended by Laws 1965, c. 215, § 2.
§68-1007. Purchaser to withhold tax - Payment by purchaser.
All purchasers of oil or gas, or other minerals subject to the
tax levied by this article shall recognize the Tax Commission's order
to withhold payment for all production wherein the required
producers' reports are delinquent or the gross production tax and
penalty, payable by any producer or royalty owner are unreported,
unpaid or delinquent, until such reports are received or the tax and
penalty paid; and on failure of the producer or royalty owner to file
reports and/or pay such tax and penalty, the purchaser of such
production shall, on order of the Tax Commission, (1) withhold
payment for all production until notified by the Tax Commission that
all reports have been received, (2) pay such tax and penalty, and its
receipt therefor shall be accepted by such producer or royalty owner
in lieu of cash in settlement for such production. This shall also
apply in any case where a subsequent purchaser, or purchaser of
subsequent oil, gas or casinghead gas or other minerals shall be so
notified, and shall also apply when the interest against which such
tax and penalty shall have accrued may have been transferred
subsequent to the accrual of said tax and penalty.
Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963. Renumbered from §
10-1007 by Laws 1965, c. 215, § 2. Amended by Laws 1968, c. 341, §
2, emerg. eff. May 9, 1968; Laws 1992, c. 30, § 6, emerg. eff. March
30, 1992.
§68-1008. Refund of overpayments, duplicate payments and erroneous
payments - Rebuttable presumptions.
A. Except as set forth in subsection B of this section, in all
cases of overpayment, duplicate payment or payment made in error on
account of the production being derived from restricted Indian lands
and lands owned by the United States, the state, counties, cities,
towns and school districts, and therefore exempt from taxation, the
Oklahoma Tax Commission is authorized to refund any such over-paid
duplicate or erroneously paid gross production taxes, where an
application for such refund is made within three (3) years from the
date of the payment thereof, out of any undistributed gross
production tax collections in the depository account of the Oklahoma
Tax Commission, from the same county from which the original tax was
derived. Provided, however, this exemption shall apply only to the
interest in such production owned by the restricted Indian or exempt
governmental entity. A determination made by the federal government
or any agency thereof in allowing a refund or recovery of
overpayment, duplicate payment or erroneous payment of taxes arising
out of the same circumstances under which a claim has been submitted
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to the Oklahoma Tax Commission for a refund may create a presumption
that the evidence upon which the federal government or agency thereof
relied in allowing a refund or recovery is correct. The Oklahoma Tax
Commission shall not, however, be bound by such presumption of
correctness, but may if it deems the circumstances to warrant present
evidence in rebuttal thereof.
B. Notwithstanding the provisions of subsection A of this
section, the Oklahoma Tax Commission is authorized to refund directly
to the Commissioners of the Land Office any gross production tax paid
to the Tax Commission in error after January 1, 1978, on any oil and
gas royalty interest of the Commissioners of the Land Office out of
any undistributed gross production tax collections in the depository
account of the Oklahoma Tax Commission, from the same county from
which the original tax was derived.
Said refund shall only be issued as the result of a determination
by the Commissioners of the Land Office that said erroneous payment
of such gross production tax has been made to the Tax Commission
during the period after January 1, 1978. Such determination by the
Commissioners of the Land Office may create a presumption that the
evidence upon which the Commissioners of the Land Office relied in
reaching the determination of erroneous payment is correct. The Tax
Commission shall not, however, be bound by the presumption of
correctness, but may if it deems the circumstances to warrant,
present evidence in rebuttal thereof.
Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963. Renumbered from §
10-1008 by Laws 1965, c. 215, § 2. Amended by Laws 1968, c. 248, §
1, emerg. eff. April 26, 1968; Laws 1992, c. 392, § 1, emerg. eff.
June 9, 1992.
§68-1008a. Refund of payments to Commissioners of the Land Office.
A. If any person responsible for paying oil or gas royalty to
the Commissioners of the Land Office has, after January 1, 1978, paid
or caused to be paid, or pays, or causes to be paid, to the Oklahoma
Tax Commission, gross production tax pursuant to Section 1001 of
Title 68 of the Oklahoma Statutes, petroleum excise tax pursuant to
Section 1102 of Title 68 of the Oklahoma Statutes, or conservation
excise tax pursuant to Section 1108 of Title 68 of the Oklahoma
Statutes, on such royalty, the Commissioners of the Land Office shall
recover the taxes so paid directly from the Oklahoma Tax Commission.
For the purposes of this act, the Commissioners of the Land Office
shall not be subject to the time limitations for refunds of Section
227 or Section 1008 of Title 68 of the Oklahoma Statutes.
Notwithstanding any other provision of the Oklahoma Statutes, the
Oklahoma Tax Commission shall not be required to pay interest or
penalties on such taxes to the Commissioners of the Land Office.
B. Upon written request and proper documentation provided by the
Commissioners of the Land Office, the Oklahoma Tax Commission shall
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pay to the Commissioners of the Land Office any gross production tax
pursuant to Section 1001 of Title 68 of the Oklahoma Statutes,
petroleum excise tax pursuant to Section 1101 of Title 68 of the
Oklahoma Statutes, excise tax on gas, pursuant to Section 1102 of
Title 68 of the Oklahoma Statutes, or conservation excise tax
pursuant to Section 1108 of Title 68 of the Oklahoma Statutes paid on
oil or gas royalty due to the Commissioners of the Land Office. Said
written request shall only be issued as the result of a determination
by the Commissioners of the Land Office that erroneous payment of
such gross production tax pursuant to Section 1001 of Title 68 of the
Oklahoma Statutes, excise tax on gas pursuant to Section 1102 of
Title 68 of the Oklahoma Statutes, or conservation excise tax
pursuant to Section 1108 of Title 68 of the Oklahoma Statutes has
been made to the Oklahoma Tax Commission after January 1, 1978. Such
determination by the Commissioners of the Land Office may create a
presumption that the evidence upon which the Commissioners of the
Land Office relied in reaching the determination of erroneous payment
is correct. The Oklahoma Tax Commission shall not, however, be bound
by the presumption of correctness but may, if the Oklahoma Tax
Commission deems the circumstances to warrant, present evidence in
rebuttal thereof.
C. Any person responsible for paying oil or gas royalty to the
Commissioners of the Land Office who has, after January 1, 1978, and
before January 1, 1989, paid or caused to be paid, or pays, or causes
to be paid, to the Oklahoma Tax Commission, gross production tax
pursuant to Section 1001 of Title 68 of the Oklahoma Statutes,
petroleum excise tax pursuant to Section 1101 of Title 68 of the
Oklahoma Statutes, excise tax on gas pursuant to Section 1103 of
Title 68 of the Oklahoma Statutes, or conservation excise tax
pursuant to Section 1108 of Title 68 of the Oklahoma Statutes, on
said royalty, shall be liable to the Commissioners of the Land Office
for interest thereon, pursuant to the Oklahoma Statutes.
Notwithstanding any other provision of the Oklahoma Statutes, such
person shall not be liable to the Commissioners of the Land Office
for penalties thereon.
D. Any person responsible for paying oil or gas royalty to the
Commissioners of the Land Office who has, on or after January 1,
1989, paid or caused to be paid, or pays or causes to be paid, to the
Oklahoma Tax Commission, gross production tax pursuant to Section
1001 of Title 68 of the Oklahoma Statutes, petroleum excise tax
pursuant to Section 1101 of Title 68 of the Oklahoma Statutes, excise
tax on gas pursuant to Section 1103 of Title 68 of the Oklahoma
Statutes, or conservation excise tax pursuant to Section 1108 of
Title 68 of the Oklahoma Statutes, on said royalty, shall be liable
to the Commissioners of the Land Office for interest and penalties
thereon, pursuant to the Oklahoma Statutes.
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E. The Oklahoma Tax Commission is hereby authorized to make
refund payments to the Commissioners of the Land Office pursuant to
the provisions of this act as though the Commissioners of the Land
Office were a taxpayer or tax remitter.
F. Nothing in this act shall preclude the Commissioners of the
Land Office from collecting royalty payments directly from their
lessees or the designees of their lessees, other than as specified in
this act.
Added by Laws 1992, c. 392, § 3, emerg. eff. June 9, 1992.
§68-1009. Payment of tax - Due date - Delinquent taxes - Persons
liable for tax - Election to report and pay tax - Payment upon basis
of prevailing price – Payment pursuant to contract or agreement.
A. The gross production tax on asphalt and on ores bearing lead,
zinc, jack, gold, silver or copper, and on petroleum oil, tank
bottoms, pit oil, and liquid hydrocarbons from which petroleum oil is
extracted, and on gas shall be paid on a monthly basis in accordance
with this article.
B. The gross production tax shall become due on the first day of
each calendar month on all lead, zinc, jack, gold, silver or copper,
petroleum oil, tank bottoms, pit oil, and liquid hydrocarbons from
which petroleum oil is extracted, natural gas or casinghead gas
produced in and saved during the preceding monthly period, and, if
the tax is not paid on or before the twenty-fifth day of the second
calendar month following the month of production, the tax shall
become delinquent and shall be collected in the manner provided by
law for the collection of delinquent gross production taxes. The
provisions of this subsection shall apply to payment of gross
production taxes irrespective of any other statute relating thereto.
C. On all petroleum oil extracted from tank bottoms, pit oil, or
liquid hydrocarbons, the gross production tax shall be paid by the
operator of the reclaiming plant, unless the tax levied by this
article has already been paid thereon.
D. On oil and gas sold at the time of production, the gross
production tax shall be paid by the purchaser of such products, and
such purchaser shall, and is hereby authorized to deduct in making
settlements with the producer and/or royalty owner, the amount of tax
so paid. In the event oil is not sold at the time of production but
is retained by the producer, the tax on such oil not so sold shall be
paid by the producer for himself including the tax due on royalty oil
not sold; provided, that in settlement with the royalty owner such
producer shall have the right to deduct the amount of such tax so
paid on royalty oil or to deduct therefrom royalty oil equivalent in
value at the time such tax becomes due with the amount of the tax
paid. The gross production tax upon asphalt, or on ores bearing
lead, zinc, jack, gold, silver or copper shall be paid by the
producer for himself, including the royalty interest; provided, that
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in settlement with the royalty owner such producer shall have the
right to deduct the amount of such tax so paid on royalty asphalt, or
on ores bearing lead, zinc, jack, gold, silver or copper, or to
deduct therefrom royalty asphalt, or ores bearing lead, zinc, jack,
gold, silver or copper, equivalent in value at the time such tax
became due, to the amount of tax paid.
E. 1. Producers, either as operators of producing wells or as
nonoperating working interest owners who take gas in kind at the
wellhead at the time of production, may elect to report and pay the
gross production tax on such gas in accordance with the provisions of
this section, if the first sale of such gas by the producer is to a
final consumer or user of the gas. This election shall not be
available to a producer if the first sale of such gas is to a
purchaser who is approved and bonded to remit gross production taxes
or unless prior approval of the Oklahoma Tax Commission is obtained
by the producer. This election shall not be controlled by any
contractual provisions between the producer and the purchaser. This
election shall be made only by the producer upon forms prescribed
therefor.
Upon exercise of the election to report and pay the gross
production tax by a producer, the purchaser of such gas shall not be
liable for the gross production tax and shall not be required to
obtain a purchaser’s reporting number for such gas.
2. Gas when produced and utilized in any manner, except when
used in the operation of the lease or premises in the production of
oil or gas, or for repressuring, shall be considered for the purpose
of this article, as to the amount utilized, as gas actually produced
and saved.
F. 1. In case oil or gas is sold under circumstances where the
sale price does not represent the cash price prevailing for oil or
gas of like kind, character or quality in the field from which such
product is produced, the Tax Commission may require the said tax to
be paid upon the basis of the prevailing price then being paid at the
time of production for sales in said field for oil or gas of like
kind, quality and character and on no other basis.
2. In the case where the sale of oil or gas is between related
entities, the taxpayer shall have the burden of proving with evidence
of arm’s-length sales between unrelated parties that the sales price
represents the cash price prevailing for oil or gas of like kind,
character or quality for sales in the field from which such product
is produced. In the absence of such proof, the prevailing price
shall be presumed to be the average price of oil or gas produced for
sales in the county from which the product is produced, as determined
by the Tax Commission from monthly tax reports filed pursuant to
Section 1010 of this title. In determining the average price, the
Tax Commission shall not include the sales of oil or gas under review
and shall not include prices from other sales that have been
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previously adjusted by the Tax Commission pursuant to this
subsection.
3. For the purposes of this subsection, an entity is related to
another entity if:
a. the two entities have significant common purposes and
substantial common membership,
b. the two entities have direct or indirect substantial
common direction or control, or
c. either entity owns, directly or through one or more
entities, a fifty percent (50%) or greater interest in
the capital or profits of the other entity.
G. Pursuant to the provisions of a gas purchase contract or
agreement, if the first purchaser makes payments to the producer as a
result of the failure or refusal of said purchaser to take gas, said
payments, for purposes of this article, are hereby deemed to be part
of the gross value of gas taken according to said contract or
agreement. The gross production tax shall be calculated upon the
gross value, including said payments, in accordance with the
provisions of this article. Gas on which the gross production tax
has been paid in this manner when taken by said purchaser shall be
reported as gas on which said tax has been paid. If said gas, which
corresponds to such payments, is not taken but payments therefor are
retained by the producer, then said payments are hereby deemed to be
a premium on gas which was taken under said contract or agreement.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1009 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1968, c. 155, § 1; Laws 1979, c. 88, § 2, emerg. eff.
April 24, 1979; Laws 1983, c. 13, § 3, emerg. eff. March 23, 1983;
Laws 1983, c. 275, § 6, emerg. eff. June 24, 1983; Laws 1987, c. 203,
§ 142, operative July 1, 1987; Laws 1992, c. 30, § 7, emerg. eff.
March 31, 1992; Laws 2004, c. 444, § 2, eff. Nov. 1, 2004; Laws 2006,
c. 134, § 3, eff. July 1, 2006.
§68-1010. Information in monthly report - Reporting numbers assigned
by Tax Commission - Delinquencies - Allowance of semiannual reports.
A. The tax provided for in Section 1001 et seq. of this title
shall be paid to the Oklahoma Tax Commission.
B. Except as otherwise provided in subsection G of this section,
every person responsible for paying or remitting the tax levied by
Section 1001 et seq. of this title on the production from any lease
shall file with the Tax Commission a monthly report on each lease,
under oath, on forms prescribed by the Tax Commission, giving, with
other information required, the following:
1. The Tax Commission assigned production unit number, subnumber
and merge number, or, with the consent of the Tax Commission, the
full description of the property by lease name, subdivision of
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quarter section, section, township, and range, from which the oil or
gas was produced, or both, as may be required by the Tax Commission;
2. The Tax Commission assigned company reporting numbers of the
producer and purchaser, or with the consent of the Tax Commission,
the company name;
3. The gross amount of asphalt, ores bearing lead, zinc, jack or
copper, oil or gas produced or purchased;
4. The kind of mineral, oil, gas, or casinghead gas produced or
purchased;
5. The total value of the mineral oil, gas, or casinghead gas,
at the time and place of production, including any and all premiums
paid for the sale thereof, at the price paid, if purchased at the
time of production;
6. If requested by the Tax Commission, the prevailing market
price of oil not sold at the time of production; and
7. The amount of royalty payable on the production from the
lease, if the royalty is claimed to be exempt from taxation by law,
and the facts on which such claim of exemption is based and such
other information pertaining to the claim as the Tax Commission may
require.
Each report required by the provisions of this section shall be
filed on separate forms as to product and county.
C. No person shall engage in the mining or production within
this state of asphalt, ores bearing lead, zinc, jack or copper, oil
or gas, prior to obtaining from the Tax Commission a Tax Commission
assigned producer reporting number and a Tax Commission assigned
production unit number, subnumber and merge number for each producing
lease. No person shall engage in the purchase of asphalt, ores
bearing lead, zinc, jack or copper, oil or gas from a producing lease
prior to obtaining from the Tax Commission a Tax Commission assigned
purchaser reporting number and the Tax Commission assigned production
unit number, subnumber and merge number, of the lease from which the
production is to be purchased.
1. Every producer and purchaser shall make application, upon
forms prescribed by the Tax Commission, for a Tax Commission assigned
producer or purchaser reporting number prior to producing or
purchasing production. Every producer shall obtain, by making
application upon forms prescribed by the Tax Commission, a Tax
Commission assigned production unit number, subnumber and merge
number for each lease from which lease production will be sold or
disposed before disposing of production from any lease in the state.
Provided, however, the Tax Commission shall not approve any
application for a Tax Commission assigned producer or purchaser
reporting number without proper confirmation that the applicant has
posted the requisite surety documents with the Corporation Commission
pursuant to Section 318.1 of Title 52 of the Oklahoma Statutes.
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2. Every producer or purchaser shall notify the Tax Commission
within thirty (30) days of any changes of any producing lease in the
state as may be required by the Tax Commission. Provided, the Tax
Commission may relieve producers and purchasers of their duty to file
the notification required by this paragraph if the Tax Commission
determines that the notification is not necessary.
3. Gross production tax reports from either the purchaser or
producer shall become due on the first day of each calendar month on
all products subject to the tax levied by Section 1001 et seq. of
this title produced in and saved during the preceding monthly period.
If such reports are not received by the Tax Commission on or before
the twenty-fifth day of the second calendar month following the month
of production, the reports shall become delinquent. Any requested or
required amended report or any requested information submitted in
response to written demand for information which is not received by
the Tax Commission on or before thirty (30) days after the mailing of
the request or demand by the Tax Commission or any of its employees
shall be delinquent.
D. Every person required to file such forms or reports or who
has been requested to file an amended report to provide information
by written demand, or who has purchased oil or gas from a lease prior
to being authorized by the Tax Commission to purchase production from
such lease, will be subject to and may be assessed the following
penalties for each delinquency:
1. Five Dollars ($5.00) per day for each Tax Commission assigned
production unit number or subnumber or merge number or product code,
upon which a form, report, amended report, or for which requested
information in response to written demand is delinquent and for each
day from the date a purchaser buys production from a lease from which
it is not authorized to purchase to the date the Tax Commission
approves the purchaser to buy from such lease; provided, such penalty
shall not be assessed for an amount in excess of One Thousand Five
Hundred Dollars ($1,500.00). The penalties may be waived by the Tax
Commission or its designee for good cause shown; and
2. If within twelve (12) months after a previous assessment of
penalties as provided for by this section a subsequent delinquency
occurs, penalties may be assessed at the rate of Ten Dollars ($10.00)
per day for each Tax Commission assigned production unit number or
subnumber or merge number, or product code; provided such penalty
shall not be assessed for an amount in excess of One Thousand Five
Hundred Dollars ($1,500.00). The penalty thereon may be waived, in
whole or in part, by the Tax Commission, for good cause shown.
The penalties prescribed herein shall be in addition to other
penalties assessable by the Tax Commission pursuant to the laws of
this state. The penalties prescribed by this section may be
collected and shall be apportioned to the General Revenue Fund.
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E. Gross production tax forms reports, amended reports, or
requested information in response to written demands which are
received by the Tax Commission on or after the time fixed for
delinquency, but which were mailed prior to the time fixed for
delinquency, shall be deemed to have been received by the Tax
Commission before becoming delinquent. Postmark or registry or
certified receipt showing deposit in the U.S. mails shall be
conclusive evidence of the date of mailing. Provided all remittances
due under such reports or amended reports must be received by the Tax
Commission on or before the date specified by law regardless of when
mailed.
F. In the event a person required to remit the tax levied by the
provisions of Section 1001 et seq. of this title becomes delinquent
in reporting or remitting the tax, or upon a determination by the Tax
Commission that the state may lose tax revenues due to the difficulty
of collecting same, the Tax Commission may require any person
required to remit the tax to furnish a sufficient cash deposit, bond,
or other security in an amount as will protect the tax revenues of
this state.
G. In lieu of monthly reporting, a royalty owner taking gas in
kind for the royalty owner's own consumption who is responsible for
remitting the tax levied by Section 1001 et seq. of this title may
file semiannual reports and remit taxes due thereunder to the Tax
Commission on or before the first day of January and July of each
year for the preceding six-month period. If not received on or
before the last day of such month, the report and tax shall be
delinquent.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1010 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1965, c. 346, § 2; Laws 1968, c. 341, § 3, emerg.
eff. May 9, 1968; Laws 1979, c. 88, § 3, emerg. eff. April 24, 1979;
Laws 1980, c. 129, § 2, emerg. eff. April 14, 1980; Laws 1983, c. 13,
§ 4, emerg. eff. March 23, 1983; Laws 1983, c. 275, § 7, emerg. eff.
June 24, 1983; Laws 1989, c. 28, § 1, eff. July 1, 1989; Laws 1989,
c. 249, § 20, eff. July 1, 1989; Laws 1990, c. 339, § 4, emerg. eff.
May 31, 1990; Laws 1992, c. 30, § 8, emerg. eff. March 31, 1992; Laws
1994, c. 278, § 12, eff. Sept. 1, 1994; Laws 2001, c. 358, § 13, eff.
July 1, 2001; Laws 2004, c. 444, § 3, eff. Nov. 1, 2004; Laws 2013,
c. 277, § 1, eff. Nov. 1, 2013.
§68-1010a. One-time payment of gross production tax - Reduction of
bond - Delinquency - Reduction of amount of tax due on final return.
A. On or before November 25, 2004, all persons who have received
a gross production tax purchaser reporting number or have otherwise
been approved to remit gross production taxes, shall remit a one-time
payment of gross production tax in an amount equal to the lesser of
the average monthly remittance due from the tax remitter for the
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period from September 1, 2003, through August 31, 2004, or the
average monthly remittance for the period from March 1, 2004, through
August 31, 2004. Provided, a tax remitter may apply to the Oklahoma
Tax Commission to reduce its remittance because the average monthly
remittance computed under this paragraph is not reflective of the
current volumes of production reported by the tax remitter. The
application to remit a lesser amount must be filed with the Tax
Commission on or before October 1, 2004. The decision of the Tax
Commission on the application shall be final and no right of appeal
to any court may be taken from such decision.
B. The Tax Commission shall reduce the amount of the bond
required by the Tax Commission by the amount of the one-time payment.
If the bond posted is equal to or less than the amount of the
payment, the tax remitter shall be relieved from the bond
requirement, upon request. The tax remitter shall neither deduct nor
otherwise collect all or any portion of the one-time payment from any
person or entity entitled to the proceeds of production from an oil
or gas lease in the State of Oklahoma.
C. If the tax is not paid on or before November 25, 2004, the
tax shall become delinquent and shall be collected in the manner
provided by law for the collection of delinquent gross production
taxes.
D. The amount of tax due on the final return of a tax remitter
shall be reduced by the amount of the payment made pursuant to this
section. If the amount due is less than the amount of the payment
required by this section, the Tax Commission shall refund the balance
of the payment to the tax remitter.
Added by Laws 2004, c. 444, § 4, eff. Sept. 1, 2004.
§68-1011. Statements as to tax on settlements.
All statements or settlement sheets for oil, gas or casinghead
gas shall have stamped or written thereon the following words: "gross
production tax deducted and paid, and payee accepts such deduction
and authorizes payment thereof to State of Oklahoma."
Laws 1963, c. 365, § 2; Laws 1965, c. 215, § 2.
§68-1012. Lien for tax - Liability not released by provision for
payment.
The tax herein referred to shall, at all times, be and constitute
a first and paramount lien against the purchaser's or producer's
property as the case may be, both real and personal; and the
provisions hereof, making the purchaser liable to pay such tax, and
the provisions requiring the producer to pay the royalty owner's tax,
in no wise releases the producer or purchaser from liability to pay
same, in all cases where such tax is not paid.
Laws 1963, c. 365, § 2; Laws 1965, c. 215, § 2.
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§68-1013. Rules and regulations - Bond - Licenses and permits -
Reports - Logs, invoices and load tickets - Stops and inspections.
A. The Tax Commission is hereby authorized and empowered to
prescribe and promulgate all necessary rules and regulations for the
purpose of making and filing all reports required and otherwise
necessary to the enforcement of this article. The Tax Commission, at
its option and discretion, may require a sufficient bond from any
person charged with the making and filing of reports and the payment
of the taxes levied pursuant to the provisions of this article. Said
bond shall run to the State of Oklahoma and shall be conditioned upon
the making and filing of reports as required by law, upon compliance
with the rules and regulations of the Tax Commission, and for the
prompt payment of all taxes due the state by virtue of the provisions
of this article.
B. 1. Every person engaged in the transportation or hauling of
petroleum oil, tank bottoms, pit oil, condensate, distillate, or
other liquid hydrocarbons from which petroleum crude oil or other
product subject to gross production tax is extracted, except where
the transportation is by railroad tank car or by pipeline, shall
secure a license and permit before engaging in such activity and
shall post a surety bond with the Tax Commission. Said bond shall
run to the State of Oklahoma and shall be conditioned upon compliance
with the provisions of this article, the rules and regulations of the
Tax Commission promulgated thereto. Said permits shall expire three
(3) years after the date of issuance or renewal thereof and shall
become invalid on said date unless renewed. The fee for issuance of
such permit or renewal thereof shall be determined by the Commission
but shall not exceed One Hundred Fifty Dollars ($150.00). A permit
issued prior to the effective date of this act shall be valid until
it expires.
The application for and acceptance of the permit required by this
section and any renewal thereof shall be conclusively deemed consent
by the applicant for the stopping of the vehicle transporting said
hydrocarbons, and the inspection of the load ticket and the cargo
pursuant to Section 152.6 of Title 74 of the Oklahoma Statutes.
2. Every person operating a tank truck or other conveyance
except railroad tank cars or pipelines transporting any of the
products described in paragraph 1 of this subsection shall have in
his possession at all times during such transportation an invoice or
load ticket showing, in addition to other information thereon, the
following:
a. date,
b. truck permit number,
c. name of company from whom trucker obtained product
being transported,
d. lease name and/or number,
e. county,
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f. approximate number of barrels being transported,
g. name of product,
h. destination, and
i. signature of truck driver.
The invoice or load ticket shall be made in triplicate, one copy
of which shall be retained by the company or person authorizing such
transportation, one copy of which shall be retained by the person
transporting such product, and one copy of which shall be furnished
to the person storing, receiving, renting, or purchasing such
product.
3. Any person transporting oil or gas or any deleterious
substance as such term is defined by Section 139 of Title 52 of the
Oklahoma Statutes shall maintain a log containing the name of the
agent of the company or person owning the product which authorized
the transportation.
4. All such copies of said log and invoices or load tickets
shall be retained for a period of three (3) years. All copies of
such log and invoices or load tickets shall be subject to inspection
by the Tax Commission or its representatives or the Oklahoma Bureau
of Investigation at all times during transit of such product or while
same is stored or in the possession of any such person.
5. A member of the Oklahoma State Bureau of Investigation or the
Oklahoma Highway Patrol, any sheriff, any salaried deputy sheriff,
any Oklahoma Corporation Commission inspector or enforcement officer,
shall have the authority to stop and inspect any invoices or load
tickets at all times during transit of any such product. If a person
transporting or hauling petroleum oil, tank bottoms, pit oil,
condensate, distillate, or other liquid hydrocarbons from which
petroleum crude oil or any other product subject to gross production
tax is extracted, fails to produce the invoice or load ticket as
required pursuant to the provisions of this section upon proper
request therefor, or if the invoice or load ticket does not contain
the required information, the product being transported, together
with the tank truck or other conveyance, may be seized and held until
a proper invoice or load ticket is furnished and the information
thereon is verified by the seizing authority.
In the event a proper invoice or load ticket is not furnished the
seizing authority within forty-eight (48) hours after such seizure,
the seizing authority shall then deliver possession of such seized
property to the sheriff of the county in which it was seized, who
shall issue his receipt therefor, and inform the Tax Commission which
shall declare the gross production tax, together with the amount due
pursuant to the provisions of Section 1003 of this article, due
immediately on the product so seized, and shall assess the same
together with a penalty equal to the amount of said tax due. If the
tax, penalty, additional amount due, and all accrued sheriff's costs
are not paid to such sheriff within thirty (30) days after delivery
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to him, he will proceed to sell, without valuation as for taxes due
the state, such seized property and distribute the proceeds of such
sale in the same manner as is now provided for sales upon execution.
6. Every tank truck or other conveyance except railroad tank
cars or pipelines used in transporting any of the products named in
this section must have painted or affixed by decalcomania process in
a conspicuous place in at least four-inch letters and figures the
company name and Gross Production Transport Permit number which
permit number shall be preceded by the initials "O.T.C.".
C. Any person transporting deleterious substances shall have in
his possession at all times during such transportation an invoice or
load ticket complying with paragraph 2 of subsection B of this
section.
D. The application for and acceptance of the permit or license
required by Section 177.2 of Title 47 of the Oklahoma Statutes shall
be conclusively deemed consent by the applicant for the stopping of
the vehicle transporting said substances, and the inspection of the
load ticket and the cargo by the Oklahoma Highway Patrol, sheriffs,
or by agents of the Oklahoma State Bureau of Investigation or Federal
Bureau of Investigation pursuant to Section 152.6 of Title 74 of the
Oklahoma Statutes.
Added by Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963.
Renumbered from § 10-1013 by Laws 1965, c. 215, § 2. Amended by Laws
1965, c. 346, § 3, emerg. eff. June 28, 1965; Laws 1981, c. 180, § 1,
emerg. eff. May 19, 1981; Laws 1984, c. 123, § 1, emerg. eff. April
10, 1984; Laws 1985, c. 187, § 10, eff. Nov. 1, 1985; Laws 1992, c.
30, § 9, emerg. eff. March 31, 1992; Laws 1994, c. 258, § 8, eff.
Sept. 1, 1994.
§68-1013a. Seller and purchaser to secure and retain invoice copies.
A copy of the invoice required to be made by transporters under
Section 1013(2) shall be demanded, and retained as therein provided,
by every seller and purchaser of the products on which such invoice
is required. Failure of any such seller or purchaser to secure and
retain such invoice copy shall constitute a misdemeanor as provided
in Section 1017 of this Article.
Added by Laws 1968, c. 341, § 4, emerg. eff. May 9, 1968.
§68-1014. Amended reports.
All producers, refiners, processors or purchasers of oil or gas
shall prepare and file with the Tax Commission, at any time upon the
demand of the Tax Commission, such amended producers', refiners',
processors' or purchasers' reports as may be necessary to show the
particular leasehold and also the particular well or wells from which
oil or gas produced, refined, processed or purchased by them was
produced.
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Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963. Renumbered from §
10-1014 by Laws 1965, c. 215, § 2. Amended by Laws 1992, c. 30, §
10, emerg. eff. March 30, 1992.
§68-1015. Refiners and processors to obtain permit - Bond - Failure
to secure permit.
All persons operating refineries or processing plants engaged in
the business of refining or processing of oil or gas, upon which
there is paid or payable gross production tax, shall secure a permit
which shall be in the form of a license from the Tax Commission, by
making application upon forms prescribed by it, and the Tax
Commission may, at its option and discretion, require a bond from any
such person before the issuance of such permit; any bond required
herein by the Tax Commission shall be for the purpose of indemnifying
the State of Oklahoma against loss by reason of nonpayment of gross
production tax upon any oil or gas refined or processed in such
refineries or processing plants. In all cases where such permit is
not secured, the State of Oklahoma may institute, upon relation of
the Tax Commission, suit to restrain such person from operating such
refinery or processing plant, until such permit is secured.
Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963. Renumbered from §
10-1015 by Laws 1965, c. 215, § 2. Amended by Laws 1985, c. 187, §
11, eff. Nov. 1, 1985; Laws 1992, c. 30, § 11, emerg. eff. March 30,
1992.
§68-1015.1. Oil reclamation - Permits.
A. All persons operating reclaiming plants, or reclaiming oil,
upon which there is paid or payable gross production tax, shall
secure a permit which shall be in the form of a license from the Tax
Commission, by making application upon forms prescribed by it. The
Tax Commission may, at its option and discretion, require a bond from
any such person before the issuance of such permit. Any bond
required herein by the Tax Commission shall be for the purpose of
indemnifying the State of Oklahoma against loss by reason of
nonpayment of gross production tax upon any oil reclaiming plants.
In all cases where such permit is not secured, the State of Oklahoma
may institute, upon relation of the Tax Commission, suit to restrain
such person from operating such reclaiming plant, until such permit
is secured.
B. 1. Said permits shall expire three (3) years after the date
of issuance or renewal thereof and shall become invalid on said date
unless renewed. The fee for issuance of such permit or renewal
thereof shall be determined by the Commission but shall not exceed
One Hundred Fifty Dollars ($150.00).
2. A permit issued prior to the effective date of this act shall
be valid until it expires.
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C. The application for and acceptance of the permit required by
subsection A of this section and any renewal thereof shall be
conclusively deemed consent by the applicant for the inspections of
the property of the applicant by the Oklahoma Tax Commission as
authorized by Section 206 of this title and by the Oklahoma State
Bureau of Investigation.
Added by Laws 1985, c. 187, § 9, eff. Nov. 1, 1985. Amended by Laws
1992, c. 30, § 12, emerg. eff. March 31, 1992; Laws 1994, c. 258, §
9, eff. Sept. 1, 1994.
§68-1016. Repealed by Laws 2016, c. 114, § 3, eff. July 1, 2016.
§68-1017. Noncompliance by producers, refiners, processors or
purchasers.
Failure on the part of any person, producer, refiner, processor,
reclaimer, transporter, or purchaser of oil, petroleum oil, tank
bottoms, pit oil, liquid hydrocarbons, natural gas, or casinghead
gas, to comply with the provisions of this article shall be deemed a
misdemeanor, and upon conviction therefor, such person, producer,
refiner, processor, reclaimer, transporter, or purchaser of oil or
gas shall be punished by the imposition of a fine of not to exceed
One Thousand Dollars ($1,000.00), or of a jail sentence of not to
exceed six (6) months, or by the imposition of both such fine and
imprisonment. Each day's failure to comply with the provisions of
this article within the period of time fixed therein, shall
constitute a separate offense.
Laws 1963, c. 365, § 2; Laws 1965, c. 215, § 2.
§68-1018. Tax on uranium.
The purpose of the following sections of this article is to
broaden the tax provided for in the preceding sections, so as to
subject to gross production tax the interest of all persons in ore
bearing uranium as the term uranium is hereinafter defined. In the
event the ore bears any other metal, mineral, substance or matter
subjected to the aforesaid gross production tax, the tax levied by
Section 1019 shall be in addition to said tax. Provided, however,
that any mineral, substance or matter subjected to the tax levied by
the preceding sections of this article shall not be subjected to the
tax levied by Section 1019.
Laws 1963, c. 365, § 2; Laws 1965, c. 215, § 2.
§68-1019. Definitions.
The following words, terms and phrases shall when used in
Sections 1017 through 1020, except where the context clearly
indicates a different meaning, have the following meaning:
(a) The word "Tax Commission" shall mean the Oklahoma Tax
Commission.
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(b) The word "person" shall mean and include an individual, a
limited liability company, a corporation, a trust and any other
entity recognized as such under the laws of the State of Oklahoma.
(c) The word "ore" or "ores" shall mean and include alluvium soil
or earth or any sedimentary formation or rocks, or intrusive or
igneous dike, vein, or fissure, or any liquid substance or matter
which bears uranium, thorium, and any other fissionable material
together with vanadium, manganese, and nonfissionable materials
associated with fissionable materials or which bear tin, vanadium,
molybdenum, bismuth and any other metal or mineral, excepting coal
only, provided a tax is not levied in connection therewith under the
Gross Production Act referred to in Section 1001 hereof.
(d) The word "uranium" shall mean and include uranium, thorium,
and any other fissionable material together with vanadium, manganese,
and nonfissionable materials associated with fissionable materials,
also tin, vanadium, molybdenum, bismuth and any other metal or
mineral, excepting coal only, provided a tax is not levied in
connection therewith under Sections 1001 - 1016 of this Code.
(e) The words "gross value" mean the value of ore immediately
after being mined or produced, therefore, the amount received or the
amount that could or should have been received for ore if sold,
including any and all premiums, inducement payments, bonus payments,
or subsidies. In case ore is sold under circumstances where the
sales price does not represent the cash price thereof prevailing for
ore of like kinds, character or quality in the area from which the
ore is produced, the Tax Commission may require the tax to be paid
upon the basis of the prevailing price then being paid at the time of
production thereof in said area for ore of like kind, quality and
character.
Laws 1963, c. 365, § 2, emerg. eff. June 22, 1963. Renumbered from §
10-1019 by Laws 1965, c. 215, § 2. Amended by Laws 1993, c. 366, §
37, eff. Sept. 1, 1993.
§68-1020. Application of Sections 1017 to 1020.
A gross production tax equal to five percent (5%) of the gross
value of all ores bearing uranium, as that term is defined in the
preceding section, that are mined or produced in this state, is
hereby levied.
(a) The tax hereby levied shall apply and attach immediately upon
ore bearing uranium being mined or produced, provided the ore is
mined or produced for the purpose of obtaining uranium or is in fact
so used. The tax shall be measured by the gross value of the ore at
the time and place same is mined or produced.
(b) The payment of the taxes herein imposed shall be in full, and
in lieu of all taxes by the state, counties, cities, towns, school
districts and other municipalities upon any property rights attached
to or inherent in the right to ore upon producing leases for the
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mining ores bearing uranium, upon the uranium rights and privileges
to the uranium aforesaid belonging or appertaining to land, upon the
machinery, appliances and equipment used in and around any mine
producing ore and actually used in the operation of such mine; and
also upon the ores bearing uranium hereinbefore mentioned during the
tax year in which the same is produced, and upon any investment in
any of the leases, rights, privileges, minerals or other property
hereinbefore in this paragraph mentioned or described; and any
interest in the land, other than that herein enumerated, and ores
bearing uranium which are mined, (produced) and on hand at the date
as of which property is assessed for general and ad valorem taxation
for any subsequent tax year, shall be assessed and taxed as other
property within the taxing district in which such property is
situated at the time.
(c) No equipment, material or property shall be exempt from the
payment of ad valorem tax by reason of the payment of ad valorem tax
by reason of the payment of the gross production tax as herein
provided except such equipment, machinery, tools, materials or
property as is actually necessary and being used and in use in the
production of ores bearing uranium; and it is expressly declared that
no ice plants, hospitals, office buildings, garages, residences,
gasoline extractions or absorption plants, water systems, fuel
systems, rooming houses and other buildings, nor any equipment or
material used in connection therewith shall be exempt from ad valorem
tax.
(d) The State Board of Equalization, upon its own initiative,
may, and upon complaint of any person who claims that he is taxed too
great a rate hereunder shall, take testimony to determine whether the
taxes herein imposed are greater, or less, than the general ad
valorem tax for all purposes would be on the property of such
producer subject to taxation in the district or districts where the
same is situated and also the value of ore, or of the mining ore
rights, the machinery, equipment or appliances used in the actual
operation of in and around any such mine, the value of the ore
produced and any other element of value in lieu of which the tax
herein is levied. The said Board shall have power and it shall be
its duty to raise or lower the rate herein imposed to conform
thereto. An appeal may be had from the decision fo the State Board
of Equalization thereon, by any person aggrieved to the Supreme
Court, in like manner and with like effect as provided by law in
other appeals from said Board to said Court; provided, that after
such tax has been collected and distributed or paid without protest,
no complaint with reference to rate thereof shall be heard or
considered.
Laws 1963, c. 365, § 2; Laws 1965, c. 215, § 2.
§68-1021. Reports and collection - Apportionment.
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The gross production tax levied by the preceding section shall be
reported to and collected by the Tax Commission at the same time and
in the same manner as is now provided by law for the collection of
gross production tax on ore. Upon being collected the taxes shall be
apportioned precisely like taxes collected under Sections 1001-1016
of this Code. On ores sold at the time of production, the tax
thereon shall be paid by the producer, who is hereby authorized to
deduct in making settlement with the producer and/or royalty owner
the amount of tax so paid; provided, that in the event ore on which
such tax becomes due is not sold at the time of production, but is
retained by the producer, the tax on such ore not so sold shall be
paid by the producer for himself, including the tax due on royalty
ore not sold; provided, further, that in settlement with the royalty
owner, such producer shall have the right to deduct the amount of tax
so paid on royalty ore, or to deduct therefrom royalty ore equivalent
in value at the time such tax becomes due with the amount of tax
paid.
Laws 1963, c. 365, § 2; Laws 1965, c. 215, § 2.
§68-1022. Conditional increase in value of natural gas - Handling
and distribution of tax levied thereon.
When an increase in the gross value of petroleum or other crude
or mineral oil, natural gas, casinghead gas or liquids extracted
therefrom sold by a producer is subject to the approval of an agency
of the United States of America or a court of competent jurisdiction
adjudicating an appeal from said agency, the gross production tax
provided for in this article on any such proposed increase in gross
value when collected by a producer shall be separately reported and
conditionally paid, subject to and pending the final outcome of any
proceeding by such agency or court relating to a determination of the
amount of such increase in gross value; provided, however that
nothing herein shall be construed to impose any duty upon a producer
to collect any proposed increase in gross value; and provided
further, that "gross value" or "increase in gross value" as used in
this section shall mean the amount a producer is collecting for the
sale of any petroleum or other crude or mineral oil, natural gas,
casinghead gas or liquids extracted therefrom sold which is subject
to the jurisdiction of such agency or court. All monies so
conditionally collected by the Tax Commission under the provisions of
this section shall be accounted for in the following manner:
(a) At least once each month the Tax Commission shall deposit
such collections in a special account in a bank or banks approved as
a depository for monies of the State of Oklahoma. Each bank in which
such monies are deposited shall credit the account at the end of each
calendar quarter with the highest rate of interest then being paid by
such bank for deposited monies of the State of Oklahoma, calculated
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on the total daily average balance on deposit during such calendar
quarter.
(b) When a producer or purchaser gives written notice to the Tax
Commission that such agency or court has, by final order,
disapproved, in whole or in part, the proposed increase in gross
value, then the Tax Commission shall, within thirty (30) days after
receipt of such notice, withdraw from the bank holding such monies an
amount of money equal to the tax conditionally paid on the proposed
increase in gross value which has been disapproved, together with the
interest earned on such money, and remit it to the person, firm,
association or corporation which conditionally paid such tax.
(c) When such agency or court approves, by final order, the
proposed increase in gross value, in whole or in part, the producer
or purchaser involved having paid the tax conditionally shall
immediately give written notice of such approval to the Tax
Commission and it shall promptly withdraw from the bank holding such
monies an amount of money equal to said tax conditionally paid on the
proposed increase in gross value which has been approved, together
with the interest earned on such money, and shall distribute the same
as provided by the law then in force for the distribution of gross
production taxes.
Added by Laws 1968, c. 155, § 2, emerg. eff. April 9, 1968. Amended
by Laws 1978, c. 211, § 5, emerg. eff. April 19, 1978.
§68-1023. Downward adjustment of value of oil and gas - Refund of
excess tax.
In the event the gross value of petroleum or other crude or
mineral oil, natural gas, casinghead gas or liquids extracted
therefrom is adjusted downward by any agency of the United States of
America or a court of competent jurisdiction adjudicating an appeal
from said agency, then the amount of the tax paid in excess of the
tax due on the adjusted gross value shall be considered excess tax.
Within one (1) year following the final determination of the gross
value, any producer or purchaser who has paid any such excess tax may
apply for a refund, and the Tax Commission, upon proper finding,
shall have the authority to refund the amount of excess tax paid.
Any refund may, at the discretion of the Tax Commission, be made in
the form of a credit against future tax payments.
Added by Laws 1978, c. 211, § 6, emerg. eff. April 19, 1978.
§68-1024. Release of information - Costs - Civil and criminal
liability - Disposition of funds - Examination of records and files -
Construction with other sections.
A. The Tax Commission may release to any person the volume of
production, during any specified available period of time, of any
substance taxable pursuant to the provisions of this article from any
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lease lawfully plugged, pursuant to the laws of this state after
certification of the plugging by the Oklahoma Corporation Commission.
B. The Tax Commission may release the lease name, legal
description, Oklahoma Tax Commission assigned production unit number
for any lease or unit in this state and the Oklahoma Tax Commission
assigned purchaser or producer reporting number and purchaser or
producer name to any person.
C. The Tax Commission may release the volume of production,
producing formation and well classification, active or inactive, on a
lease by lease basis to any person.
D. The Tax Commission shall release information provided in the
Reclaimer's and Transporters Monthly Tax Report of Lease Production
Stored and Sold, OTC Form 323A-7-81, or any form succeeding this
form, to any person.
E. The Tax Commission shall release the following information to
any person executing an affidavit, under penalty of perjury,
declaring that they are an interest owner in the well, lease or unit
for which the information is requested:
1. The gross, exempt and net volumes and values of production,
tax reimbursements, additional values and taxes remitted thereon,
during any available period of time of any substance taxable pursuant
to the provisions of this article or the Petroleum Excise Tax of this
state.
2. The lease name, legal description, industry or company well
or lease unique number, Oklahoma Tax Commission assigned production
unit number for any lease or unit in this state and the Oklahoma Tax
Commission assigned purchaser or producer reporting number and
purchaser or producer name.
3. The producing formation and well classification, active or
inactive, on a lease by lease basis and if available, on a well by
well basis, and British Thermal Unit content, NGPA classification,
gas code, gravity, tier, category and oil class.
F. It is specifically provided that:
1. The Tax Commission shall establish a schedule of costs for
the furnishing of the information in accordance with the provisions
of subsections A and B of this section and shall collect such costs;
2. No civil or criminal liability shall attach to any member of
the Tax Commission, or to any agents, servants, or employees of the
Tax Commission for any error or omission in the preparation and
publication of the requested information;
3. No costs shall be charged to the Oklahoma Corporation
Commission Oil and Gas Conservation Division or Energy Conservation
Services Division or to the Oklahoma Geological Survey for
examination of the files and records of the Tax Commission; and
4. All funds collected pursuant to the provisions of this
section shall be paid to the State Treasury and deposited to the
credit of the Tax Commission Revolving Fund.
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G. In addition to the information which may be released pursuant
to subsections A, B and C of this section, a duly authorized agent of
the Oklahoma Corporation Commission Oil and Gas Conservation Division
or Energy Conservation Services Division or of the Oklahoma
Geological Survey may examine necessary records and files of the Tax
Commission relating to the gross production tax for the purpose of
estimating or forecasting reserves or production of oil or gas. Such
examination shall be limited to information of volume of production,
producing formation and well classification, active or inactive, on a
lease by lease basis.
H. A duly authorized agent of the Commissioners of the Land
Office may examine necessary records and files of the Tax Commission
relating to the gross production tax for the purpose of determining
the amount of erroneous payment of gross production tax made to the
Oklahoma Tax Commission after January 1, 1978.
I. The provisions of this section shall be exceptions to the
provisions of Sections 205 and 205.1 of this title and those sections
shall be strictly construed against the disclosure of any other
information contained in the records and files of the Tax Commission
except as otherwise provided by law.
J. Any violation of the provisions of this section shall
constitute a misdemeanor and shall be punishable as provided for in
Section 205 of this title.
Added by Laws 1979, c. 100, § 1. Amended by Laws 1981, c. 76, § 1;
Laws 1983, c. 107, § 1, eff. Nov. 1, 1983; Laws 1986, c. 223, § 40,
operative July 1, 1986; Laws 1988, c. 281, § 20, operative July 1,
1988; Laws 1990, c. 310, § 4, eff. Sept. 1, 1990; Laws 1991, c. 224,
§ 2, emerg. eff. May 23, 1991; Laws 1992, c. 30, § 13, emerg. eff.
March 30, 1992; Laws 1992, c. 392, § 2, emerg. eff. June 9, 1992;
Laws 2013, c. 277, § 2, eff. Nov. 1, 2013.
§68-1101. Excise tax on oil - Additional tax.
A. Prior to July 1, 2021, and as provided in Section 1103.1 of
this title, there is hereby levied, in addition to the gross
production tax, an excise tax equal to ninety-five one thousandths of
one percent (.095 of 1%) of the gross value on each barrel of
petroleum oil produced in the State of Oklahoma which is subject to
gross production tax in the State of Oklahoma. Such excise tax of
ninety-five one thousandths of one percent (.095 of 1%) of the gross
value shall be reported to and collected by the Tax Commission at the
same time and in the same manner as is provided by law for the
collection of gross production tax on petroleum oil. On petroleum
oil sold at the time of production, the excise tax thereon shall be
paid by the purchaser, who is hereby authorized to deduct in making
settlement with the producer and/or royalty owner the amount of tax
so paid; provided, that in the event oil on which such tax becomes
due is not sold at the time of production, but is retained by the
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producer, the tax on such oil not so sold shall be paid by the
producer, including the tax due on royalty oil not sold; and
provided, further, that in settlement with royalty owner, such
producer shall have the right to deduct the amount of tax so paid on
royalty oil, or to deduct therefrom royalty oil equivalent in value
at the time such tax becomes due with the amount of tax paid.
The provisions of this subsection shall terminate on June 30,
2021.
B. Beginning on July 1, 2021, there is hereby levied, in
addition to the gross production tax, an excise tax equal to eighty-
five one thousandths of one percent (.085 of 1%) of the gross value
on each barrel of petroleum oil produced in the State of Oklahoma
which is subject to gross production tax in the State of Oklahoma.
Such excise tax of eighty-five one thousandths of one percent (.085
of 1%) of the gross value shall be reported to and collected by the
Tax Commission at the same time and in the same manner as is provided
by law for the collection of gross production tax on petroleum oil.
On petroleum oil sold at the time of production, the excise tax
thereon shall be paid by the purchaser, who is hereby authorized to
deduct in making settlement with the producer and/or royalty owner
the amount of tax so paid; provided, that in the event oil on which
such tax becomes due is not sold at the time of production, but is
retained by the producer, the tax on such oil not so sold shall be
paid by the producer, including the tax due on royalty oil not sold;
and provided, further, that in settlement with royalty owner, such
producer shall have the right to deduct the amount of tax so paid on
royalty oil, or to deduct therefrom royalty oil equivalent in value
at the time such tax becomes due with the amount of tax paid.
Added by Laws 1965, c. 442, § 2. Amended by Laws 1974, c. 63, § 1,
operative July 1, 1974; Laws 1976, c. 100, § 1, operative July 1,
1976; Laws 1990, c. 107, § 5, eff. Oct. 1, 1990; Laws 1995, c. 328, §
9, eff. July 1, 1995; Laws 2001, c. 249, § 5, eff. July 1, 2001; Laws
2006, c. 252, § 2, eff. July 1, 2006; Laws 2011, c. 154, § 2; Laws
2016, c. 153, § 2, emerg. eff. April 25, 2016.
§68-1101.1. Renumbered as § 1001.1 of this title by Laws 1991, c.
342, § 27, emerg. eff. June 15, 1991.
§68-1102. Excise tax on gas - Additional tax.
A. Prior to July 1, 2021, and as provided in Section 1103.1 of
this title, there is hereby levied, in addition to the gross
production tax, an excise tax equal to ninety-five one thousandths of
one percent (.095 of 1%) of the gross value of all natural gas and/or
casinghead gas produced in the State of Oklahoma which is subject to
gross production tax in the State of Oklahoma. Such excise tax of
ninety-five one thousandths of one percent (.095 of 1%) of the gross
value shall be reported to and collected by the Tax Commission at the
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same time and in the same manner as is provided by law for the
collection of gross production tax on natural gas and/or casinghead
gas, and this excise tax shall apply in all cases where the gross
production tax provided for by law applies to the production of
natural gas and/or casinghead gas. The excise tax shall be paid by
the purchaser, who is hereby authorized to deduct in making
settlement with the producer and/or royalty owner the amount of tax
so paid, provided, however, that if such natural gas and/or
casinghead gas is retained by the producer, then the tax shall be
paid by the producer, who shall have the right to deduct the amount
of tax so paid on royalty gas at the time of settlement with the
royalty owner.
The provisions of this subsection shall terminate on June 30,
2021.
B. Beginning on July 1, 2021, there is hereby levied, in
addition to the gross production tax, an excise tax equal to eighty-
five one thousandths of one percent (.085 of 1%) of the gross value
of all natural gas and/or casinghead gas produced in the State of
Oklahoma which is subject to gross production tax in the State of
Oklahoma. Such excise tax of eighty-five one thousandths of one
percent (.085 of 1%) of the gross value shall be reported to and
collected by the Tax Commission at the same time and in the same
manner as is provided by law for the collection of gross production
tax on natural gas and/or casinghead gas, and this excise tax shall
apply in all cases where the gross production tax provided for by law
applies to the production of natural gas and/or casinghead gas. The
excise tax shall be paid by the purchaser, who is hereby authorized
to deduct in making settlement with the producer and/or royalty owner
the amount of tax so paid, provided, however, that if such natural
gas and/or casinghead gas is retained by the producer, then the tax
shall be paid by the producer, who shall have the right to deduct the
amount of tax so paid on royalty gas at the time of settlement with
the royalty owner.
Added by Laws 1965, c. 442, § 2. Amended by Laws 1967, c. 208, § 1,
eff. July 1, 1967; Laws 1974, c. 63, § 2, operative July 1, 1974;
Laws 1976, c. 100, § 2, operative July 1, 1976; Laws 1990, c. 107, §
6, eff. Oct. 1, 1990; Laws 1995, c. 328, § 10, eff. July 1, 1995;
Laws 2001, c. 249, § 6, eff. July 1, 2001; Laws 2006, c. 252, § 3,
eff. July 1, 2006; Laws 2011, c. 154, § 3; Laws 2016, c. 153, § 3,
emerg. eff. April 25, 2016.
§68-1103. Deposit, apportionment and use of proceeds of tax.
A. 1. Prior to July 1, 2021, and as provided in Section 1103.1
of this title, all monies derived from the levy of the excise tax on
petroleum oil provided for by Section 1101 of this title shall be
deposited with the State Treasurer, who shall credit and apportion
the same as follows:
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a. eighty-two and six hundred thirty-four thousandths
percent (82.634%) of said excise tax shall be credited
to the General Revenue Fund of the State Treasury;
provided, in each fiscal year beginning on or after
July 1, 2013, the first One Million Three Hundred Fifty
Thousand Dollars ($1,350,000.00) which would otherwise
have been apportioned to the General Revenue Fund
pursuant to this subparagraph shall be transferred to
the Oil and Gas Division Revolving Fund of the Oklahoma
Corporation Commission,
b. ten and five hundred twenty-six thousandths percent
(10.526%) shall be credited and apportioned to a
separate and distinct fund to be known as the
"Corporation Commission Plugging Fund", and
c. the remaining six and eighty-four hundredths percent
(6.84%) of said excise tax shall be credited and
apportioned to a separate and distinct fund to be known
as "The Interstate Oil Compact Fund of Oklahoma", which
fund is hereby created.
2. Prior to July 1, 2021, and as provided in Section 1103.1 of
this title, all monies derived from the levy of the excise tax on
natural gas and/or casinghead gas provided for by Section 1102 of
this title shall be deposited with the State Treasurer, who shall
credit and apportion the same as follows:
a. eighty-two and six thousand forty-five ten thousandths
percent (82.6045%) of said excise tax shall be credited
to the General Revenue Fund of the State Treasury;
provided, in each fiscal year beginning on or after
July 1, 2013, the first One Million Three Hundred Fifty
Thousand Dollars ($1,350,000.00) which would otherwise
have been apportioned to the General Revenue Fund
pursuant to this subparagraph shall be transferred to
the Oil and Gas Division Revolving Fund of the Oklahoma
Corporation Commission,
b. ten and five thousand five hundred fifty-five ten
thousandths percent (10.5555%) shall be credited and
apportioned to the Corporation Commission Plugging
Fund, and
c. six and eighty-four hundredths percent (6.84%) of said
excise tax shall be credited and apportioned to The
Interstate Oil Compact Fund of Oklahoma.
3. Prior to July 1, 2021, and as provided in Section 1103.1 of
this title, all monies to accrue to "The Interstate Oil Compact Fund
of Oklahoma" under the provisions of this article, together with all
monies remaining unexpended in "The Interstate Oil Compact Fund of
Oklahoma" created under this subsection are hereby appropriated and
shall be used for the payment of the compensation of the assistant
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representative of the State of Oklahoma on "The Interstate Oil
Compact Commission", the compensation of such clerical, technical,
and legal assistants as he or she may with the consent of the
Governor employ; the actual and necessary traveling expenses of the
assistant representative and employees, and of the Governor when
traveling in the Governor's capacity as official representative of
the State of Oklahoma on "The Interstate Oil Compact Commission"; all
items of office expense, including the cost of office supplies and
equipment; such contributions as the Governor shall deem necessary
and proper to pay to "The Interstate Oil Compact Commission" to
defray its expenses; and such other necessary expenses as may be
incurred in enabling the State of Oklahoma to fully cooperate in
accomplishing the objects of the Interstate Compact to conserve oil
and gas. The fund shall be disbursed by the State Treasurer upon
sworn, itemized claims approved by the assistant representative and
the Governor; provided, that if at the end of any fiscal year any
part of the special fund shall remain unexpended, such balance shall
be transferred by the State Treasurer to, and become a part of, the
General Revenue Fund of the state for the ensuing fiscal year.
Provided, further, that if the State of Oklahoma withdraws from the
Interstate Compact to conserve oil and gas, any unencumbered monies
in "The Interstate Oil Compact Fund of Oklahoma" shall be transferred
to and become a part of the General Revenue Fund of the State
Treasury and thereafter the excise tax on petroleum oil, natural gas
and/or casinghead gas levied by this article shall be levied,
collected and deposited in the General Revenue Fund of the State
Treasury.
4. All monies to accrue to the Corporation Commission Plugging
Fund are hereby appropriated and shall be used for payment of
expenses related to the statutory purpose of the fund.
The provisions of this subsection shall terminate on June 30,
2021.
B. 1. Beginning on July 1, 2021, all monies derived from the
levy of the excise tax on petroleum oil provided for by Section 1101
of this title shall be deposited with the State Treasurer, who shall
credit and apportion the same as follows:
a. ninety-two and thirty-five hundredths percent (92.35%)
of said excise tax shall be credited and apportioned to
the General Revenue Fund of the State Treasury;
provided, in each fiscal year beginning on or after
July 1, 2013, the first One Million Three Hundred Fifty
Thousand Dollars ($1,350,000.00) which would otherwise
have been apportioned to the General Revenue Fund
pursuant to this subparagraph shall be transferred to
the Oil and Gas Division Revolving Fund of the Oklahoma
Corporation Commission, and
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b. the remaining seven and sixty-five hundredths percent
(7.65%) of said excise tax shall be credited and
apportioned to a separate and distinct fund to be known
as "The Interstate Oil Compact Fund of Oklahoma", which
fund is hereby created.
2. Beginning on July 1, 2021, all monies derived from the levy
of the excise tax on natural gas and/or casinghead gas provided for
by Section 1102 of this title shall be deposited with the State
Treasurer, who shall credit and apportion the same as follows:
a. ninety-two and thirty-five hundredths percent (92.35%)
of said excise tax shall be credited and apportioned to
the General Revenue Fund of the State Treasury;
provided, in each fiscal year beginning on or after
July 1, 2013, the first One Million Three Hundred Fifty
Thousand Dollars ($1,350,000.00) which would otherwise
have been apportioned to the General Revenue Fund
pursuant to this subparagraph shall be transferred to
the Oil and Gas Division Revolving Fund of the Oklahoma
Corporation Commission, and
b. seven and sixty-five hundredths percent (7.65%) of said
excise tax shall be credited and apportioned to The
Interstate Oil Compact Fund of Oklahoma.
3. Beginning on July 1, 2021, all monies to accrue to "The
Interstate Oil Compact Fund of Oklahoma" under the provisions of this
article, together with all monies remaining unexpended in "The
Interstate Oil Compact Fund of Oklahoma" created under this
subsection are hereby appropriated and shall be used for the payment
of the compensation of the assistant representative of the State of
Oklahoma on "The Interstate Oil Compact Commission", the compensation
of such clerical, technical, and legal assistants as he or she may
with the consent of the Governor employ; the actual and necessary
traveling expenses of the assistant representative and employees, and
of the Governor when traveling in the Governor's capacity as official
representative of the State of Oklahoma on "The Interstate Oil
Compact Commission"; all items of office expense, including the cost
of office supplies and equipment; such contributions as the Governor
shall deem necessary and proper to pay to "The Interstate Oil Compact
Commission" to defray its expenses; and such other necessary expenses
as may be incurred in enabling the State of Oklahoma to fully
cooperate in accomplishing the objects of the Interstate Compact to
conserve oil and gas. The fund shall be disbursed by the State
Treasurer upon sworn, itemized claims approved by the assistant
representative and the Governor; provided, that if at the end of any
fiscal year any part of the special fund shall remain unexpended,
such balance shall be transferred by the State Treasurer to, and
become a part of, the General Revenue Fund of the State Treasury for
the ensuing fiscal year. Provided, further, that if the State of
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Oklahoma withdraws from the Interstate Compact to conserve oil and
gas, any unencumbered monies in "The Interstate Oil Compact Fund of
Oklahoma" shall be transferred to and become a part of the General
Revenue Fund of the State Treasury and thereafter the excise tax on
petroleum oil, natural gas and/or casinghead gas levied by this
article shall be levied, collected and deposited in the General
Revenue Fund of the State Treasury.
Added by Laws 1965, c. 442, § 2. Amended by Laws 1967, c. 208, § 2,
eff. July 1, 1967; Laws 1974, c. 63, § 3, operative July 1, 1974;
Laws 1979, c. 47, § 72, emerg. eff. April 9, 1979; Laws 1990, c. 107,
§ 7, eff. Oct. 1, 1990; Laws 1995, c. 328, § 11, eff. July 1, 1995;
Laws 1997, c. 275, § 12, eff. July 1, 1997; Laws 2001, c. 249, § 7,
eff. July 1, 2001; Laws 2005, c. 436, § 2, eff. July 1, 2005; Laws
2006, c. 252, § 4, eff. July 1, 2006; Laws 2011, c. 154, § 4; Laws
2012, c. 331, § 1, eff. July 1, 2013; Laws 2016, c. 153, § 4, emerg.
eff. April 25, 2016.
§68-1103.1. Maintenance of Corporation Commission Plugging Fund
minimal level.
The additional excise tax levied by subsection A of Section 5 of
this act and subsection A of Section 6 of this act which is credited
and apportioned to the Corporation Commission Plugging Fund pursuant
to Section 7 of this act shall be imposed and collected at such times
as required by Section 1 of this act to maintain the Corporation
Commission Plugging Fund at a five-million-dollar maintenance level.
Added by Laws 1990, c. 107, § 8, eff. Oct. 1, 1990.
§68-1104. Due date of tax - Delinquency - Reports on leases.
(a) The tax provided for in Section 1101 and Section 1102 of
this Code shall become due on the first day of each calendar month on
all petroleum oil, natural gas and/or casinghead gas, produced in the
State of Oklahoma during the preceding monthly period, and if the tax
is not paid on or before the last day of the month when the same
becomes due, such tax shall become delinquent.
(b) Every person, firm, association, or corporation responsible
for paying or remitting the petroleum excise tax levied by this
article on the production from any lease shall file with the Tax
Commission a monthly report on each lease, regardless of sales or
purchases of production from said lease during the period, at the
same time and in the same manner as is required for the reporting of
the gross production tax.
Laws 1965, c. 442, § 2; Laws 1968, c. 142, § 1.
§68-1105. Failure to make report.
If any person, firm, association or corporation shall fail to
make the report of the production, purchase, or production without
sale, as the case may be, of petroleum oil, natural gas and/or
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casinghead gas, or the computation of the excise tax hereby levied,
within the time prescribed by law for such report, it shall be the
duty of the Tax Commission to examine the books, records and files of
such persons, firm, association or corporation to ascertain the
amount of oil produced and/or sold, and compute and assess the tax
and penalty accrued thereon, as provided herein. Any such person,
firm, association or corporation who shall fail to file any sworn
statement or report required by the provisions of this article in the
manner and in the time prescribed, or who shall fail to provide any
information regarding the production from any lease in this state
within thirty (30) days of the mailing by the Commission of a demand
for such information, shall be liable for the assessment by the
Commission and the payment thereto of the penalties as prescribed in
Section 1010 of this title.
Laws 1965, c. 442, § 2.
§68-1106. Exemption - Refund.
The provisions of the gross production tax law in respect to
refunds of such tax on the production derived from restricted Indian
lands and lands owned by the United States, the state, counties,
cities, towns and school districts, and therefore exempt from
taxation, shall apply to petroleum excise tax on such exempt interest
in said production from said lands.
Laws 1965, c. 442, § 2.
§68-1107. Repealed by Laws 1994, c. 311, § 3, emerg. eff. July 1,
1995.
§68-1108. Repealed by Laws 1994, c. 311, § 3, emerg. eff. July 1,
1995.
§68-1109. Repealed by Laws 1994, c. 311, § 3, emerg. eff. July 1,
1995.
§68-1110. Repealed by Laws 1994, c. 311, § 3, emerg. eff. July 1,
1995.
§68-1111. Repealed by Laws 1994, c. 311, § 3, emerg. eff. July 1,
1995.
§68-1201. Corporations and organizations to which article
applicable.
The terms of this article shall apply to every corporation
organized under the laws of this state, or qualified to do, or doing
business in Oklahoma in a corporate or organized capacity by virtue
of creation or organization under the laws of this or any other
state, territory or district, or a foreign country, including
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associations, joint-stock companies and business trusts as defined by
Section 202 of this title, but not including limited liability
companies as defined by Section 2001 of Title 18 of the Oklahoma
Statutes.
Laws 1963, c. 366, § 2, emerg. eff. June 18, 1963. Renumbered from §
12-1201 by Laws 1965, c. 215, § 2. Amended by Laws 1985, c. 182, §
2, emerg. eff. June 20, 1985; Laws 1993, c. 366, § 38, eff. Sept. 1,
1993.
§68-1202. "Doing Business" defined.
When the term "doing business" is used in this article, it shall
mean and include each and every act, power or privilege exercised or
enjoyed in this state, as an incident to, or by virtue of the powers
and privileges acquired by the nature of such organizations, as are
enumerated in the preceding section.
Laws 1963, c. 366, § 2; Laws 1965, c. 215, § 2.
§68-1203. Tax on domestic corporations and business organizations.
There is hereby levied and assessed a franchise or excise tax
upon every corporation, association, joint-stock company and business
trust organized under the laws of this state, equal to One Dollar and
twenty-five cents ($1.25) for each One Thousand Dollars ($1,000.00)
or fraction thereof of the amount of capital used, invested or
employed in the exercise of any power, privilege or right inuring to
such organization, within this state; it being the purpose of this
section to require the payment to the State of Oklahoma this tax for
the right granted by the laws of this state to exist as such
organization and enjoy, under the protection of the laws of this
state, the powers, rights, privileges and immunities derived from the
state by reason of the form of such existence.
Amended by Laws 1985, c. 182, § 3, emerg. eff. June 20, 1985.
§68-1204. Tax on foreign corporations and business organizations.
There is hereby levied and assessed upon every corporation,
association, joint-stock company and business trust, organized and
existing by virtue of the laws of some other state, territory or
country, now or hereafter doing business in this state, as
hereinbefore defined, a franchise or excise tax equal to One Dollar
and twenty-five cents ($1.25) for each One Thousand Dollars
($1,000.00) or fraction thereof of the amount of capital used,
invested or employed within this state; it being the purpose of this
section to require the payment of a tax by all organizations not
organized under the laws of this state, measured by the amount of
capital, or its equivalent, used, invested or employed in this state
for which such organization receives the benefit and protection of
the government and laws of the state.
Amended by Laws 1985, c. 182, § 4, emerg. eff. June 20, 1985.
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§68-1205. Minimum and maximum taxes.
A. In determining the amount of tax to be levied, assessed and
collected under the terms of this Article, the maximum amount shall
not exceed Twenty Thousand Dollars ($20,000.00).
B. If, as a result of the computation of tax required by Section
1209 of this title, the resulting liability is Two Hundred Fifty
Dollars ($250.00) or less, the corporation or other entity shall be
exempt from the tax levied by Section 1203 or Section 1204 of this
title for such reporting period.
Added by Laws 1963, c. 366, § 2, eff. July 1, 1963. Renumbered from
§ 12-1205 of this title by Laws 1965, c. 215, § 2. Amended by Laws
2005, c. 388, § 1, eff. July 1, 2006; Laws 2007, c. 136, § 1, eff.
Jan. 1, 2008.
§68-1206. Corporations and organization exempted.
The terms of this article shall not apply to the following
institutions, foreign or domestic: Savings and loan associations,
small business investment companies licensed under the Federal Small
Business Act of 1958, credit unions, trust companies, real estate
trusts operating under the Federal Real Estate Trust Act of 1960,
insurance companies, including surety and bond companies, retirement
or pension funds, savings banks and savings fund societies; nor to
any organization enumerated in Section 1201 of this title if such
organization is neither organized for profit nor operated for profit,
irrespective of the form of organization.
Amended by Laws 1983, c. 167, § 1, operative July 1, 1983; Laws 1985,
c. 182, § 5, emerg. eff. June 20, 1985.
§68-1207. No tax for year in which other tax or fee paid.
The tax herein levied shall not be exacted for the fiscal year
during which a domestic or foreign corporation, association or
organization has paid an incorporating, filing or qualifying fee or
tax to the Secretary of State. However, such corporations or
organizations shall file a "no tax" report to comply with such
regulations as shall be adopted by the Tax Commission, who shall,
upon such filing, issue a "no tax" license expiring on the next
ensuing June 30th. Provided, that in the computation of the tax
imposed by this article no credit shall be allowed against such tax
by reason of any money paid to the Secretary of State as additional
incorporation, qualifying or filing fee covering an increase of
authorized capital or capital apportioned to this state.
Laws 1963, c. 366, § 2; Laws 1965, c. 215, § 2.
§68-1208. Purpose and disposition of revenue - When due.
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A. It is hereby declared to be the purpose of Section 1201 et
seq. of this title to provide for revenue for general governmental
functions of the State of Oklahoma.
B. All monies collected under Section 1201 et seq. of this title
shall be transmitted monthly to the State Treasurer of the State of
Oklahoma to be placed to the credit of the General Revenue Fund of
the state, to be paid out only pursuant to direct appropriations of
the Legislature.
C. Except as otherwise provided by subsection D of this section,
the tax levied by Section 1201 et seq. of this title shall become due
and payable on July 1 of each year or at the option of the taxpayer
upon the last day of the income tax year of the taxpayer, and if not
paid on or before the next ensuing September 15 for taxpayers
electing to pay tax by July 1, or the date by which an income tax
return is required to be filed pursuant to the provisions of
subsection G of Section 2368 of this title or pursuant to the
provisions of Section 216 of this title, for taxpayers electing to
pay the tax at the time such income tax return is due, the penalties
hereinafter provided shall apply.
D. For those taxpayers that remitted the maximum amount of tax
pursuant to Section 1205 of this title for the preceding tax year,
the tax levied by Section 1201 et seq. of this title shall become due
and payable on May 1 of each year, and if not paid on or before the
ensuing June 1, the penalties hereinafter provided shall apply.
Added by Laws 1963, c. 366, § 2, eff. July 1, 1963. Renumbered from
§ 12-1208 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1997, c. 249, § 2, eff. Sept. 1, 1998; Laws 2014, c. 306, § 1, emerg.
eff. May 16, 2014; Laws 2017, c. 335, § 1, eff. Nov. 1, 2017.
§68-1209. Capital - Computation.
(a) For the purpose of computing the amount of annual franchise
tax levied upon and payable by the corporations, associations and
organizations enumerated in Sections 1203 and 1204 of this title, the
word "capital" shall be construed to include the following:
Outstanding capital stock, surplus and undivided profits, which
shall include any amounts designated for the payment of dividends
until such amounts are definitely and irrevocably placed to the
credit of stockholders subject to withdrawal on demand, plus the
amount of bonds, notes, debentures or other evidences of indebtedness
maturing and payable more than three (3) years after issuance. The
term "capital" stock where herein used shall include all written
evidence of interest or ownership in the control or management of a
corporation or other organization. The term "evidence of
indebtedness" where herein used shall not include any deposit made in
any bank.
(b) Advances made by a parent to a subsidiary or by a subsidiary
to a parent corporation, organization or association shall be
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eliminated by both the parent and subsidiary from the calculations
necessary to determine the amount of taxable capital employed in the
business of either or both the parent and subsidiary. Provided,
however, advances made for purely operating expenses may, upon proper
showing, satisfactory to the Tax Commission, be included in such
calculations.
(c) The amount of capital employed in this state is hereby
declared to be that portion of the capital of the corporation,
association or organization which equals the proportion which the
property owned, or property owned and business done, in Oklahoma
bears to the total property owned, or total property owned and total
business done, by the corporation, association or organization.
(d) In the determination of the amount of tax payable under this
article where intangibles are involved, such as notes, accounts
receivable, stocks, bonds, and other securities, including cash, and
the business of the corporation is managed, directed and controlled
from within the State of Oklahoma, the value of such intangibles
shall be apportioned wholly to Oklahoma, unless a commercial or
business situs for such intangibles has been established elsewhere.
(e) Management, direction and control of the corporation's
business shall be deemed to be within the State of Oklahoma where (1)
the corporation is incorporated under the laws of Oklahoma, or (2)
where any corporation organized under the laws of some other state
transacts in Oklahoma its principal business, or maintains in this
state its "business domicile" or "commercial domicile".
(f) The portion of capital of any corporation, association or
organization employed in this state, shall be segregated, and its
value stated, based upon the proportions herein prescribed, and shall
be reported to the Tax Commission; and the amount of said capital so
reported shall be prima facie the measure of the value of the capital
of such corporation, association or organization, apportioned to this
state, for the purposes of this article.
(g) The capital of a bank holding company or multi-bank holding
company shall not include the capital, as defined in this article, of
the owned bank or banks. Such banks, bank holding companies and
multi-bank holding companies each shall comply with the terms of this
article as separate corporations.
Amended by Laws 1985, c. 182, § 6, emerg. eff. June 20, 1985.
§68-1210. Annual statement or return.
A. In addition to any other statement required by law, each and
every corporation, association or organization, as enumerated in
Sections 1201, 1203, and 1204 of this title, subject to the
provisions of Section 1201 et seq. of this title, either during the
period of July 1 to August 31, inclusive, of each year, or not later
than June 1 for taxpayers that remitted the maximum amount of tax
pursuant to Section 1205 of this title for the preceding tax year,
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or, except for taxpayers that remitted the maximum amount of tax
pursuant to Section 1205 of this title for the preceding tax year, on
or before the date by which an income tax return is required to be
filed pursuant to the provisions of subsection G of Section 2368 of
this title or pursuant to the provisions of Section 216 of this
title, based upon the election by the taxpayer regarding the due date
for payment of tax, shall file with the Oklahoma Tax Commission a
statement under oath of its president, secretary or managing officer,
or managing agent in this state. The statement shall be in such form
as the Tax Commission shall prescribe, including balance sheets as at
the close of its last preceding taxable year for which an income tax
return was required to be filed, showing the following:
1. The amount of its authorized capital stock, interests,
certificates, or other evidence of interest or ownership;
2. The amount thereof then paid up;
3. The number of units into which the same is divided;
4. The par value of each unit and the number of such units
issued and outstanding;
5. The location of the office or offices;
6. The value of all property owned or used in its business and
wherever located;
7. The value of all property owned or used in its business
within this state as it existed on the last day of the tax year;
8. The total amount of all business wherever transacted during
the tax year;
9. The total amount of business transacted within the State of
Oklahoma during such year; and
10. The names of its officers and the residence and post office
address of each as the same appear of record on the last day of the
tax year, based upon the election by the taxpayer regarding the due
date for payment of tax.
B. If any corporation, association or organization making a
return under the provisions of Section 1201 et seq. of this title has
no authorized capital, or if any of its shares of stock or other
evidences of interest or ownership have no par value, then such
corporation, association or organization shall so state in its
return, and shall, in addition thereto, state the book value of its
shares of stock or other evidences of interest or ownership. It
shall also, in making its return, make the showing required of all
other corporations, associations and organizations, and each foreign
corporation shall state the name of its registered agent residing at
the capital of the state. The return shall be in such form as the
Tax Commission shall prescribe.
C. A corporation or organization subject to the tax levied by
Section 1203 or Section 1204 of this title for which the computation
of capital employed in the state equals or exceeds Sixteen Million
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Dollars ($16,000,000.00), shall file a maximum franchise tax return
on such form as may be prescribed by the Oklahoma Tax Commission.
D. The Tax Commission shall prescribe a form for use by
corporations or organizations subject to the maximum tax imposed by
Section 1205 of this title in order for such corporations or
organizations to determine if the value of capital employed in this
state requires filing a maximum franchise tax return. The Tax
Commission shall also prescribe a form for use by corporations or
organizations exempt from the tax imposed by Sections 1203 and 1204
of this title pursuant to Section 1205 of this title. Such form
shall include the names of the officers of the corporation or
organization and the residence and post office address of each as the
same appears of record on the last day of the tax year and a
statement attesting that no tax is due for the taxable period. If a
corporation or organization is required to file the maximum franchise
tax return or is exempt from the tax imposed by Sections 1203 and
1204 of this title pursuant to Section 1205 of this title, such
return shall not be subject to the requirements of subsection A of
this section and the return shall only contain such information as
may be prescribed by the Commission. The return shall be in such
form as the Tax Commission shall prescribe.
Added by Laws 1963, c. 366, § 2, eff. July 1, 1963. Renumbered from
§ 12-1210 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1989, c. 249, § 24, eff. July 1, 1989; Laws 1997, c. 249, § 3, eff.
Sept. 1, 1998; Laws 2005, c. 388, § 2, eff. July 1, 2006; Laws 2017,
c. 335, § 2, eff. Nov. 1, 2017.
§68-1211. Organization of business trust.
The county clerks of the several counties of the state shall not
receive for filing in their offices any instrument providing for the
organization of any business trust unless and until a duplicate of
such instrument is provided for filing with the Tax Commission, which
duplicate shall show the filing references of the county clerk in
whose office the original of such instrument is filed, and it is
hereby made the duty of such county clerk to see that such duplicate
is immediately forwarded to the Tax Commission.
Amended by Laws 1985, c. 182, § 7, emerg. eff. June 20, 1985.
§68-1212. Penalties - Uniform procedure - Operation without license
- Suspension and forfeiture.
A. If the report required pursuant to the provisions of Section
1210 of this title is not filed and the tax levied pursuant to the
provisions of Section 1203, 1204 or 1205 of this title is not paid
within the time provided under subsection C of Section 1208 of this
title, the Oklahoma Tax Commission shall levy and collect a penalty
for such delinquency in the amount of ten percent (10%) of the tax
due. Such penalty shall be collected and apportioned in the same
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manner as is the tax itself. In such event, or if a form is not
filed, as required by subsection D of Section 1210 of this title by a
corporation, association or organization exempt from the tax pursuant
to subsection B of Section 1205 of this title, the Tax Commission may
enter an order directing the suspension of the charter or other
instrument of organization, under which the corporation, association
or organization may be organized, and the forfeiture of all corporate
or other rights inuring thereunder. However, no such order of the
Tax Commission shall be issued nor effective as to any corporation,
association or organization the charter or certificate of authority
of which is issued by the State Banking Board or State Banking
Commissioner rather than the Secretary of State and the Tax
Commission shall only notify the registered agents or managing
officer of the corporation, association, or organization and shall
notify the State Banking Board or State Banking Commissioner of the
amount of unpaid tax. The Commissioner shall require the payment of
such tax, plus interest and penalty, if any, within a reasonable
time.
B. Any person who attempts or purports to exercise any of the
rights, privileges or powers of any such domestic corporation,
association or organization, or who does or attempts to do any
business in the state in behalf of any such foreign corporation,
association or organization, without having first obtained a license
therefor, as provided herein, or after any such license so obtained
shall have been canceled, forfeited, or expired, shall be guilty of a
misdemeanor.
C. Each trustee, director or officer of any such corporation,
association or organization, whose right to do business within this
state shall be so forfeited, shall, as to any and all debts of such
corporation, association or organization, which may be created or
incurred with his or her knowledge, approval and consent, within this
state after such forfeiture and before the reinstatement of the right
of such corporation to do business, be deemed and held liable thereon
in the same manner and to the same extent as if such trustees,
directors, and officers of such corporation, association or
organization were partners. Any corporation, association or
organization whose right to do business shall be thus forfeited shall
be denied the right to sue or defend in any court of this state,
except in a suit to forfeit the charter of such corporation,
association or organization. In any suit against such corporation,
association or organization on a cause of action arising before such
forfeiture, no affirmative relief shall be granted to such
corporation, association or organization unless its right to do
business in this state shall be reinstated as provided herein. Every
contract entered into by or in behalf of such corporation,
association or organization, after such forfeiture as provided
herein, is hereby declared to be voidable.
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D. Notice of such suspension and forfeiture shall be forwarded
by certified mail, return receipt requested, to the last-known
address of the registered agent or managing officer of each
corporation, association or organization, and the Tax Commission may
cause notice of such suspension and forfeiture to be published in a
newspaper of general circulation in the county in which the general
business office of each such corporation, association or organization
is located in this state.
E. The Tax Commission, shall immediately upon entering an order
suspending and forfeiting any such charter or other instrument of
organization, transmit the name of each such corporation, association
or organization named therein to the Secretary of State or the county
clerk of the county in which the instrument under which it may be
organized is filed, and the Secretary of State or county clerk, as
the case may be, shall immediately record the same and such record
shall constitute notice to the public. The suspension and forfeiture
herein provided for shall become effective immediately upon such
record being made and the certificate of the Secretary of State or
the county clerk shall be prima facie evidence of such suspension and
forfeiture.
F. After the issuance of such order of suspension and forfeiture
by the Tax Commission, the charter or other instrument of
organization may only be revived and reinstated upon the payment of
the accrued fees and penalties and a reinstatement fee in the amount
of One Hundred Fifty Dollars ($150.00), and a showing by the
corporation, association or organization of a full compliance with
the laws of this state. Such payment of accrued fees and penalties
must be made prior to the expiration of the time provided in such
charter or other instrument of organization for the life of such
corporation, association or organization.
Added by Laws 1963, c. 366, § 2, eff. July 1, 1963. Renumbered from
§ 12-1212 of this title by Laws 1965, c. 215, § 2. Amended by Laws
1985, c. 182, § 8, emerg. eff. June 20, 1985; Laws 1985, c. 356, §
12, emerg. eff. July 30, 1985; Laws 1991, c. 342, § 12, emerg. eff.
June 15, 1991; Laws 2005, c. 388, § 3, eff. July 1, 2006; Laws 2017,
c. 236, § 1, eff. July 1, 2017.
§68-1212.1. Moratorium on requirement to pay or remit certain taxes.
A. Notwithstanding any other provision of law, there is hereby
declared a moratorium on any and all requirements to pay or remit any
and all taxes due or which would have been due pursuant to the
provisions of Sections 1201 through 1212 of Title 68 of the Oklahoma
Statutes for the taxable periods beginning July 1, 2010, and ending
before July 1, 2013.
B. Notwithstanding any other provision of law, there is hereby
declared a moratorium on requirements to file any and all reports or
returns due or which would have been due pursuant to the provisions
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of Sections 1201 through 1212 of Title 68 of the Oklahoma Statutes
for the taxable periods beginning July 1, 2010, and ending before
July 1, 2013.
Added by Laws 2010, S.J.R. No. 61, § 17.
§68-1213. Tax Commission may furnish names - Certificates of
compliance or noncompliance.
The provisions of Section 205 of this title shall not be
construed to prevent the Tax Commission from furnishing the names of
officers, or registered agents, and it may furnish certificates to
show the compliance or noncompliance with the provisions of this
article by any particular corporation, association or organization,
under such rules as the Tax Commission may adopt, and shall collect a
fee of One Dollar ($1.00) for each certificate so furnished.
Added by Laws 1963, c. 366, § 2, emerg. eff. June 18, 1963.
Renumbered from § 12-1213 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1997, c. 294, § 14, eff. July 1, 1997.
§68-1214. Exemption from excise and income taxes - License fee.
Each cooperative and each foreign corporation transacting
business in this State pursuant to the Rural Electric Cooperative Act
(18 O.S.1961 Sections 437 - 437.30) shall pay annually, on or before
the Thirty-first day of August, to the Tax Commission, a fee of One
Dollar ($1.00) for each one hundred persons or fraction thereof to
whom electricity is supplied within the state by it, as of June 30th
preceding, but shall be exempt from all other excise and income taxes
whatsoever.
Laws 1963, c. 366, § 2; Laws 1965, c. 215, § 2.
§68-1215. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1216. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1217. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1218. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1219. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1220. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1221. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1222. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1223. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
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§68-1224. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1225. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1226. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1227. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1228. Repealed by Laws 2015, c. 79, § 1, eff. Nov. 1, 2015.
§68-1350. Citation.
This article shall be known as and may be cited as the "Oklahoma
Sales Tax Code".
Laws 1981, c. 313, § 2 emerg. eff. June 29, 1981.
§68-1351. Intent.
It is hereby declared that the intent of the Legislature is that
this Code shall be construed as amending, revising and renumbering
the present statutes relating to sales tax in respect to matters
herein. It is further hereby declared that the intent of the
Legislature is that the excise tax levy re-enacted herein and all
other provisions of this Code shall be construed as imposing a tax
upon the sale of tangible personal property and services, not
otherwise exempted, to the consumer.
Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981.
§68-1352. Definitions.
As used in the Oklahoma Sales Tax Code:
1. "Bundled transaction" means the retail sale of two or more
products, except real property and services to real property, where
the products are otherwise distinct and identifiable, and the
products are sold for one nonitemized price. A "bundled transaction"
does not include the sale of any products in which the sales price
varies, or is negotiable, based on the selection by the purchaser of
the products included in the transaction. As used in this paragraph:
a. "distinct and identifiable products" does not include:
(1) packaging such as containers, boxes, sacks, bags,
and bottles, or other materials such as wrapping,
labels, tags, and instruction guides, that
accompany the retail sale of the products and are
incidental or immaterial to the retail sale
thereof, including but not limited to, grocery
sacks, shoeboxes, dry cleaning garment bags and
express delivery envelopes and boxes,
(2) a product provided free of charge with the
required purchase of another product. A product
is provided free of charge if the sales price of
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the product purchased does not vary depending on
the inclusion of the product provided free of
charge, or
(3) items included in the definition of gross receipts
or sales price, pursuant to this section,
b. "one nonitemized price" does not include a price that
is separately identified by product on binding sales or
other supporting sales-related documentation made
available to the customer in paper or electronic form
including, but not limited to an invoice, bill of sale,
receipt, contract, service agreement, lease agreement,
periodic notice of rates and services, rate card, or
price list,
A transaction that otherwise meets the definition of a bundled
transaction shall not be considered a bundled transaction if it is:
(1) the retail sale of tangible personal property and
a service where the tangible personal property is
essential to the use of the service, and is
provided exclusively in connection with the
service, and the true object of the transaction is
the service,
(2) the retail sale of services where one service is
provided that is essential to the use or receipt
of a second service and the first service is
provided exclusively in connection with the second
service and the true object of the transaction is
the second service,
(3) a transaction that includes taxable products and
nontaxable products and the purchase price or
sales price of the taxable products is de minimis.
For purposes of this subdivision, "de minimis"
means the seller's purchase price or sales price
of taxable products is ten percent (10%) or less
of the total purchase price or sales price of the
bundled products. Sellers shall use either the
purchase price or the sales price of the products
to determine if the taxable products are de
minimis. Sellers may not use a combination of the
purchase price and sales price of the products to
determine if the taxable products are de minimis.
Sellers shall use the full term of a service
contract to determine if the taxable products are
de minimis, or
(4) the retail sale of exempt tangible personal
property and taxable tangible personal property
where:
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(a) the transaction includes food and food
ingredients, drugs, durable medical
equipment, mobility enhancing equipment,
over-the-counter drugs, prosthetic devices or
medical supplies, and
(b) the seller's purchase price or sales price of
the taxable tangible personal property is
fifty percent (50%) or less of the total
purchase price or sales price of the bundled
tangible personal property. Sellers may not
use a combination of the purchase price and
sales price of the tangible personal property
when making the fifty percent (50%)
determination for a transaction;
2. "Business" means any activity engaged in or caused to be
engaged in by any person with the object of gain, benefit, or
advantage, either direct or indirect;
3. "Commission" or "Tax Commission" means the Oklahoma Tax
Commission;
4. "Computer" means an electronic device that accepts
information in digital or similar form and manipulates it for a
result based on a sequence of instructions;
5. "Computer software" means a set of coded instructions
designed to cause a "computer" or automatic data processing equipment
to perform a task;
6. "Consumer" or "user" means a person to whom a taxable sale of
tangible personal property is made or to whom a taxable service is
furnished. "Consumer" or "user" includes all contractors to whom a
taxable sale of materials, supplies, equipment, or other tangible
personal property is made or to whom a taxable service is furnished
to be used or consumed in the performance of any contract;
7. "Contractor" means any person who performs any improvement
upon real property and who, as a necessary and incidental part of
performing such improvement, incorporates tangible personal property
belonging to or purchased by the person into the real property being
improved;
8. "Drug" means a compound, substance or preparation, and any
component of a compound, substance or preparation:
a. recognized in the official United States Pharmacopoeia,
official Homeopathic Pharmacopoeia of the United
States, or official National Formulary, and supplement
to any of them,
b. intended for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease, or
c. intended to affect the structure or any function of the
body;
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9. "Electronic" means relating to technology having electrical,
digital, magnetic, wireless, optical, electromagnetic, or similar
capabilities;
10. "Established place of business" means the location at which
any person regularly engages in, conducts, or operates a business in
a continuous manner for any length of time, that is open to the
public during the hours customary to such business, in which a stock
of merchandise for resale is maintained, and which is not exempted by
law from attachment, execution, or other species of forced sale
barring any satisfaction of any delinquent tax liability accrued
under the Oklahoma Sales Tax Code;
11. "Fair authority" means:
a. any county, municipality, school district, public trust
or any other political subdivision of this state, or
b. any not-for-profit corporation acting pursuant to an
agency, operating or management agreement which has
been approved or authorized by the governing body of
any of the entities specified in subparagraph a of this
paragraph which conduct, operate or produce a fair
commonly understood to be a county, district or state
fair;
12. a. "Gross receipts", "gross proceeds" or "sales price"
means the total amount of consideration, including
cash, credit, property and services, for which personal
property or services are sold, leased or rented, valued
in money, whether received in money or otherwise,
without any deduction for the following:
(1) the seller's cost of the property sold,
(2) the cost of materials used, labor or service cost,
(3) interest, losses, all costs of transportation to
the seller, all taxes imposed on the seller, and
any other expense of the seller,
(4) charges by the seller for any services necessary
to complete the sale, other than delivery and
installation charges,
(5) delivery charges and installation charges, unless
separately stated on the invoice, billing or
similar document given to the purchaser, and
(6) credit for any trade-in.
b. Such term shall not include:
(1) discounts, including cash, term, or coupons that
are not reimbursed by a third party that are
allowed by a seller and taken by a purchaser on a
sale,
(2) interest, financing, and carrying charges from
credit extended on the sale of personal property
or services, if the amount is separately stated on
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the invoice, bill of sale or similar document
given to the purchaser, and
(3) any taxes legally imposed directly on the consumer
that are separately stated on the invoice, bill of
sale or similar document given to the purchaser.
c. Such term shall include consideration received by the
seller from third parties if:
(1) the seller actually receives consideration from a
party other than the purchaser and the
consideration is directly related to a price
reduction or discount on the sale,
(2) the seller has an obligation to pass the price
reduction or discount through to the purchaser,
(3) the amount of the consideration attributable to
the sale is fixed and determinable by the seller
at the time of the sale of the item to the
purchaser, and
(4) one of the following criteria is met:
(a) the purchaser presents a coupon, certificate
or other documentation to the seller to claim
a price reduction or discount where the
coupon, certificate or documentation is
authorized, distributed or granted by a third
party with the understanding that the third
party will reimburse any seller to whom the
coupon, certificate or documentation is
presented,
(b) the purchaser identifies himself or herself
to the seller as a member of a group or
organization entitled to a price reduction or
discount; provided, a "preferred customer"
card that is available to any patron does not
constitute membership in such a group, or
(c) the price reduction or discount is identified
as a third-party price reduction or discount
on the invoice received by the purchaser or
on a coupon, certificate or other
documentation presented by the purchaser;
13. a. "Maintaining a place of business in this state" means
and shall be presumed to include:
(1) (a) utilizing or maintaining in this state,
directly or by subsidiary, an office,
distribution house, sales house, warehouse,
or other physical place of business, whether
owned or operated by the vendor or any other
person, other than a common carrier acting in
its capacity as such, or
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(b) having agents operating in this state,
whether the place of business or agent
is within this state temporarily or
permanently or whether the person or
agent is authorized to do business
within this state, and
(2) the presence of any person, other than a common
carrier acting in its capacity as such, that has
substantial nexus in this state and that:
(a) sells a similar line of products as the
vendor and does so under the same or a
similar business name,
(b) uses trademarks, service marks or trade
names in this state that are the same or
substantially similar to those used by
the vendor,
(c) delivers, installs, assembles or
performs maintenance services for the
vendor,
(d) facilitates the vendor's delivery of
property to customers in the state by
allowing the vendor's customers to pick
up property sold by the vendor at an
office, distribution facility,
warehouse, storage place or similar
place of business maintained by the
person in this state, or
(e) conducts any other activities in this state
that are significantly associated with the
vendor's ability to establish and maintain a
market in this state for the vendor's sale.
b. The presumptions in divisions (1) and (2) of
subparagraph a of this paragraph may be rebutted by
demonstrating that the person's activities in this
state are not significantly associated with the
vendor's ability to establish and maintain a market in
this state for the vendor's sales.
c. Any ruling, agreement or contract, whether written or
oral, express or implied, between a person and
executive branch of this state, or any other state
agency or department, stating, agreeing or ruling that
the person is not "maintaining a place of business in
this state" or is not required to collect sales and use
tax in this state despite the presence of a warehouse,
distribution center or fulfillment center in this state
that is owned or operated by the vendor or an
affiliated person of the vendor shall be null and void
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unless it is specifically approved by a majority vote
of each house of the Oklahoma Legislature;
14. "Manufacturing" means and includes the activity of
converting or conditioning tangible personal property by changing the
form, composition, or quality of character of some existing material
or materials, including natural resources, by procedures commonly
regarded by the average person as manufacturing, compounding,
processing or assembling, into a material or materials with a
different form or use. "Manufacturing" does not include extractive
industrial activities such as mining, quarrying, logging, and
drilling for oil, gas and water, nor oil and gas field processes,
such as natural pressure reduction, mechanical separation, heating,
cooling, dehydration and compression;
15. "Manufacturing operation" means the designing,
manufacturing, compounding, processing, assembling, warehousing, or
preparing of articles for sale as tangible personal property. A
manufacturing operation begins at the point where the materials enter
the manufacturing site and ends at the point where a finished product
leaves the manufacturing site. "Manufacturing operation" does not
include administration, sales, distribution, transportation, site
construction, or site maintenance. Extractive activities and field
processes shall not be deemed to be a part of a manufacturing
operation even when performed by a person otherwise engaged in
manufacturing;
16. "Manufacturing site" means a location where a manufacturing
operation is conducted, including a location consisting of one or
more buildings or structures in an area owned, leased, or controlled
by a manufacturer;
17. "Over-the-counter drug" means a drug that contains a label
that identifies the product as a drug as required by 21 C.F.R.,
Section 201.66. The over-the-counter-drug label includes:
a. a "Drug Facts" panel, or
b. a statement of the "active ingredient(s)" with a list
of those ingredients contained in the compound,
substance or preparation;
18. "Person" means any individual, company, partnership, joint
venture, joint agreement, association, mutual or otherwise, limited
liability company, corporation, estate, trust, business trust,
receiver or trustee appointed by any state or federal court or
otherwise, syndicate, this state, any county, city, municipality,
school district, any other political subdivision of the state, or any
group or combination acting as a unit, in the plural or singular
number;
19. "Prescription" means an order, formula or recipe issued in
any form of oral, written, electronic, or other means of transmission
by a duly licensed "practitioner" as defined in Section 1357.6 of
this title;
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20. "Prewritten computer software" means "computer software",
including prewritten upgrades, which is not designed and developed by
the author or other creator to the specifications of a specific
purchaser. The combining of two or more prewritten computer software
programs or prewritten portions thereof does not cause the
combination to be other than prewritten computer software.
Prewritten software includes software designed and developed by the
author or other creator to the specifications of a specific purchaser
when it is sold to a person other than the purchaser. Where a person
modifies or enhances computer software of which the person is not the
author or creator, the person shall be deemed to be the author or
creator only of such person's modifications or enhancements.
Prewritten software or a prewritten portion thereof that is modified
or enhanced to any degree, where such modification or enhancement is
designed and developed to the specifications of a specific purchaser,
remains prewritten software; provided, however, that where there is a
reasonable, separately stated charge or an invoice or other statement
of the price given to the purchaser for such modification or
enhancement, such modification or enhancement shall not constitute
prewritten computer software;
21. "Repairman" means any person who performs any repair service
upon tangible personal property of the consumer, whether or not the
repairman, as a necessary and incidental part of performing the
service, incorporates tangible personal property belonging to or
purchased by the repairman into the tangible personal property being
repaired;
22. "Sale" means the transfer of either title or possession of
tangible personal property for a valuable consideration regardless of
the manner, method, instrumentality, or device by which the transfer
is accomplished in this state, or other transactions as provided by
this paragraph, including but not limited to:
a. the exchange, barter, lease, or rental of tangible
personal property resulting in the transfer of the
title to or possession of the property,
b. the disposition for consumption or use in any business
or by any person of all goods, wares, merchandise, or
property which has been purchased for resale,
manufacturing, or further processing,
c. the sale, gift, exchange, or other disposition of
admission, dues, or fees to clubs, places of amusement,
or recreational or athletic events or for the privilege
of having access to or the use of amusement,
recreational, athletic or entertainment facilities,
d. the furnishing or rendering of services taxable under
the Oklahoma Sales Tax Code, and
e. any use of motor fuel or diesel fuel by a supplier, as
defined in Section 500.3 of this title, upon which
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sales tax has not previously been paid, for purposes
other than to propel motor vehicles over the public
highways of this state. Motor fuel or diesel fuel
purchased outside the state and used for purposes other
than to propel motor vehicles over the public highways
of this state shall not constitute a sale within the
meaning of this paragraph;
23. "Sale for resale" means:
a. a sale of tangible personal property to any purchaser
who is purchasing tangible personal property for the
purpose of reselling it within the geographical limits
of the United States of America or its territories or
possessions, in the normal course of business either in
the form or condition in which it is purchased or as an
attachment to or integral part of other tangible
personal property,
b. a sale of tangible personal property to a purchaser for
the sole purpose of the renting or leasing, within the
geographical limits of the United States of America or
its territories or possessions, of the tangible
personal property to another person by the purchaser,
but not if incidental to the renting or leasing of real
estate,
c. a sale of tangible goods and products within this state
if, simultaneously with the sale, the vendor issues an
export bill of lading, or other documentation that the
point of delivery of such goods for use and consumption
is in a foreign country and not within the territorial
confines of the United States. If the vendor is not in
the business of shipping the tangible goods and
products that are purchased from the vendor, the buyer
or purchaser of the tangible goods and products is
responsible for providing an export bill of lading or
other documentation to the vendor from whom the
tangible goods and products were purchased showing that
the point of delivery of such goods for use and
consumption is a foreign country and not within the
territorial confines of the United States, or
d. a sales of any carrier access services, right of access
services, telecommunications services to be resold, or
telecommunications used in the subsequent provision of,
use as a component part of, or integrated into, end-to-
end telecommunications service;
24. "Tangible personal property" means personal property that
can be seen, weighed, measured, felt, or touched or that is in any
other manner perceptible to the senses. "Tangible personal property"
includes electricity, water, gas, steam and prewritten computer
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software. This definition shall be applicable only for purposes of
the Oklahoma Sales Tax Code;
25. "Taxpayer" means any person liable to pay a tax imposed by
the Oklahoma Sales Tax Code;
26. "Tax period" or "taxable period" means the calendar period
or the taxpayer's fiscal period for which a taxpayer has obtained a
permit from the Tax Commission to use a fiscal period in lieu of a
calendar period;
27. "Tax remitter" means any person required to collect, report,
or remit the tax imposed by the Oklahoma Sales Tax Code. A tax
remitter who fails, for any reason, to collect, report, or remit the
tax shall be considered a taxpayer for purposes of assessment,
collection, and enforcement of the tax imposed by the Oklahoma Sales
Tax Code; and
28. "Vendor" means:
a. any person making sales of tangible personal property
or services in this state, the gross receipts or gross
proceeds from which are taxed by the Oklahoma Sales Tax
Code,
b. any person maintaining a place of business in this
state and making sales of tangible personal property or
services, whether at the place of business or
elsewhere, to persons within this state, the gross
receipts or gross proceeds from which are taxed by the
Oklahoma Sales Tax Code,
c. any person who solicits business by employees,
independent contractors, agents, or other
representatives in this state, and thereby makes sales
to persons within this state of tangible personal
property or services, the gross receipts or gross
proceeds from which are taxed by the Oklahoma Sales Tax
Code, or
d. any person, pursuant to an agreement with the person
with an ownership interest in or title to tangible
personal property, who has been entrusted with the
possession of any such property and has the power to
designate who is to obtain title, to physically
transfer possession of, or otherwise make sales of the
property.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1983, c. 8, § 1, eff. Jan. 1, 1984; Laws 1985, c. 161, § 1,
eff. July 1, 1985; Laws 1987, c. 213, § 1, operative July 1, 1987;
Laws 1988, c. 52, § 1, emerg. eff. March 23, 1988; Laws 1989, c. 167,
§ 3, eff. July 1, 1989; Laws 1991, c. 342, § 13, emerg. eff. June 15,
1991; Laws 1992, c. 172, § 1, emerg. eff. May 5, 1992; Laws 1993, c.
366, § 39, eff. Sept. 1, 1993; Laws 1994, c. 2, § 22, emerg. eff.
March 2, 1994; Laws 1998, c. 301, § 3, eff. Nov. 1, 1998; Laws 2001,
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c. 153, § 6; Laws 2003, c. 125, § 1; Laws 2003, c. 413, § 1, eff.
Nov. 1, 2003; Laws 2004, c. 5, § 64, emerg. eff. March 1, 2004; Laws
2007, c. 155, § 4, eff. Nov. 1, 2007; Laws 2007, c. 353, § 4, eff.
Nov. 1, 2007; Laws 2016, c. 311, § 2, eff. Nov. 1, 2016.
NOTE: Laws 1987, c. 203, § 143 repealed by Laws 1988, c. 52, § 2,
emerg. eff. March 23, 1988. Laws 1993, c. 146, § 20 repealed by Laws
1994, c. 2, § 34, emerg. eff. March 2, 1994. Laws 2003, c. 472, § 13
repealed by Laws 2004, c. 5, § 65, emerg. eff. March 1, 2004.
§68-1352.1. "Farm", "farming", "farming operation", "agricultural
production" and "production of agricultural products" defined.
As used in the Oklahoma Sales Tax Code, the terms "farm",
"farming", "farming operation", "agricultural production" and
"production of agricultural products" shall be deemed to include the
planting, growing, cultivation and harvesting of shrubs, flowers,
trees and other plants for sale in the wholesale division of a
nursery operation and the planting, growing, cultivation and
harvesting of sod by commercial growers of sod.
Added by Laws 1989, c. 24, § 3, emerg. eff. March 30, 1989. Amended
by Laws 1994, c. 289, § 5, emerg. eff. June 6, 1994.
§68-1353. Purpose of article - Apportionment of revenues.
A. It is hereby declared to be the purpose of the Oklahoma Sales
Tax Code to provide funds for the financing of the program provided
for by the Oklahoma Social Security Act and to provide revenues for
the support of the functions of the state government of Oklahoma, and
for this purpose it is hereby expressly provided that, revenues
derived pursuant to the provisions of the Oklahoma Sales Tax Code,
subject to the apportionment requirements for the Oklahoma Tax
Commission and Office of Management and Enterprise Services Joint
Computer Enhancement Fund provided by Section 265 of this title,
shall be apportioned as follows:
1. a. except as provided in subsection C of this section, the
following amounts shall be paid to the State Treasurer
to be placed to the credit of the General Revenue Fund
to be paid out pursuant to direct appropriation by the
Legislature:
Fiscal Year Amount
FY 2003 and FY 2004 86.04%
FY 2005 85.83%
FY 2006 85.54%
FY 2007 85.04%
FY 2008 and each fiscal
year thereafter 83.61%
b. in the event that additional monies are necessary
pursuant to paragraph 6 of this subsection, such
additional monies shall be deducted in the proportion
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determined by the State Board of Equalization pursuant
to paragraph 3 of Section 2355.1B of this title from
the monies apportioned to the General Revenue Fund;
2. For FY 2003, FY 2004 and FY 2005, ten and forty-two one-
hundredths percent (10.42%), shall be paid to the State Treasurer to
be placed to the credit of the Education Reform Revolving Fund of the
State Department of Education and for FY 2006 and each fiscal year
thereafter, ten and forty-six one-hundredths percent (10.46%) shall
be paid to the State Treasurer to be placed to the credit of the
Education Reform Revolving Fund of the State Department of Education;
3. The following amounts shall be paid to the State Treasurer to
be placed to the credit of the Teachers' Retirement System Dedicated
Revenue Revolving Fund:
Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
FY 2006 4.0%
FY 2007 4.5%
FY 2008 and each fiscal
year thereafter 5.0%
4. a. except as otherwise provided in subparagraph b of this
paragraph, for the fiscal year beginning July 1, 2015,
and for each fiscal year thereafter, eighty-seven one-
hundredths percent (0.87%) shall be paid to the State
Treasurer to be further apportioned as follows:
(1) thirty-six percent (36%) shall be placed to the
credit of the Oklahoma Tourism Promotion Revolving
Fund, but in no event shall such apportionment
exceed Five Million Dollars ($5,000,000.00) in any
fiscal year, and
(2) sixty-four percent (64%) shall be placed to the
credit of the Oklahoma Tourism Capital Improvement
Revolving Fund, but in no event shall such
apportionment exceed Nine Million Dollars
($9,000,000.00) in any fiscal year, and
b. any amounts which exceed the limitations of
subparagraph a of this paragraph shall be placed to the
credit of the General Revenue Fund;
5. For the fiscal year beginning July 1, 2015, and for each
fiscal year thereafter, six one-hundredths percent (0.06%) shall be
placed to the credit of the Oklahoma Historical Society Capital
Improvement and Operations Revolving Fund, but in no event shall such
apportionment exceed the total amount apportioned pursuant to this
paragraph for the fiscal year ending on June 30, 2015. Any amounts
which exceed the limitations of this paragraph shall be placed to the
credit of the General Revenue Fund; and
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6. During the first fiscal year after the State Board of
Equalization has made a determination as provided in Section 2355.1B
of this title, regarding a baseline amount of revenue apportioned
pursuant to paragraph 3 of this subsection, and for each fiscal year
thereafter, in no event shall monies apportioned pursuant to
paragraph 3 of this subsection, paragraph 3 of Section 1403 of this
title and subparagraph c of paragraph 1 of Section 2352 of this title
be less than such baseline amount.
B. Provided, for the fiscal year beginning July 1, 2007, and
every fiscal year thereafter, an amount of revenue shall be
apportioned to each municipality or county which levies a sales tax
subject to the provisions of Section 1357.10 of this title and
subsection F of Section 2701 of this title equal to the amount of
sales tax revenue of such municipality or county exempted by the
provisions of Section 1357.10 of this title and subsection F of
Section 2701 of this title. The Oklahoma Tax Commission shall
promulgate and adopt rules necessary to implement the provisions of
this subsection.
C. From the monies that would otherwise be apportioned to the
General Revenue Fund pursuant to subsection A of this section, there
shall be apportioned the following amounts:
1. For the month ending August 31, 2019:
a. Nine Million Six Hundred Thousand Dollars
($9,600,000.00) to the credit of the State Highway
Construction and Maintenance Fund created in Section
1501 of Title 69 of the Oklahoma Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
2. For the month ending September 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes;
3. For the month ending October 31, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
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created in Section 309 of Title 66 of the Oklahoma
Statutes;
4. For the month ending November 30, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes; and
5. For the month ending December 31, 2019:
a. Twenty Million Dollars ($20,000,000.00) to the credit
of the State Highway Construction and Maintenance Fund
created in Section 1501 of Title 69 of the Oklahoma
Statutes, and
b. Two Million Dollars ($2,000,000.00) to the credit of
the Oklahoma Railroad Maintenance Revolving Fund
created in Section 309 of Title 66 of the Oklahoma
Statutes.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1982, c. 244, § 1; Laws 1983, c. 183, § 3, emerg. eff. June
9, 1983; Laws 1984, c. 2, § 1, emerg. eff. Feb. 15, 1984; Laws 1985,
c. 179, § 85, operative July 1, 1985; Laws 1987, c. 5, § 142,
operative March 31, 1987; Laws 1996, c. 269, § 3, eff. June 1, 1996;
Laws 1999, c. 254, § 8, eff. June 30, 1999; Laws 2002, c. 482, § 1,
eff. July 1, 2002; Laws 2003, c. 3, § 58, emerg. eff. March 19, 2003;
Laws 2005, c. 479, § 11, eff. July 1, 2005; Laws 2006, 2nd Ex. Sess.,
c. 44, § 17, eff. July 1, 2007; Laws 2007, c. 105, § 3, eff. Nov. 1,
2007; Laws 2007, c. 366, § 3, eff. Nov. 1, 2007; Laws 2008, c. 3, §
34, emerg. eff. Feb. 28, 2008; Laws 2008, c. 278, § 8, eff. July 1,
2008; Laws 2010, c. 466, § 1, eff. July 1, 2010; Laws 2012, c. 304, §
540; Laws 2015, c. 349, § 1, eff. July 1, 2015; Laws 2018, c. 303, §
1, emerg. eff. May 10, 2018; Laws 2019, c. 446, § 1, emerg. eff. May
24, 2019.
NOTE: Laws 2002, c. 458, § 6 repealed by Laws 2003, c. 3, § 59,
emerg. eff. March 19, 2003. Laws 2007, c. 136, § 2 repealed by Laws
2008, c. 3, § 35, emerg. eff. Feb. 28, 2008.
§68-1354. Tax levy - Rate - Sales subject to tax.
A. There is hereby levied upon all sales, not otherwise exempted
in the Oklahoma Sales Tax Code, an excise tax of four and one-half
percent (4.5%) of the gross receipts or gross proceeds of each sale
of the following:
1. Tangible personal property, except newspapers and
periodicals;
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2. Natural or artificial gas, electricity, ice, steam, or any
other utility or public service, except water, sewage and refuse.
Provided, the rate of four and one-half percent (4.5%) shall not
apply to sales subject to the provisions of paragraph 6 of Section
1357 of this title;
3. Transportation for hire to persons by common carriers,
including railroads both steam and electric, motor transportation
companies, pullman car companies, airlines, and other means of
transportation for hire, excluding:
a. transportation services provided by a tourism service
broker which are incidental to the rendition of tourism
brokerage services by such broker to a customer
regardless of whether or not such transportation
services are actually owned and operated by the tourism
service broker. For purposes of this subsection,
"tourism service broker" means any person, firm,
association or corporation or any employee of such
person, firm, association or corporation which, for a
fee, commission or other valuable consideration,
arranges or offers to arrange trips, tours or other
vacation or recreational travel plans for a customer,
and
b. transportation services provided by a funeral
establishment to family members and other persons for
purposes of conducting a funeral in this state;
4. Intrastate, interstate and international telecommunications
services sourced to this state in accordance with Section 1354.30 of
this title and ancillary services. Provided:
a. the term "telecommunications services" shall mean the
electronic transmission, conveyance, or routing of
voice, data, audio, video, or any other information or
signals to a point, or between or among points. The
term "telecommunications services" includes such
transmission, conveyance, or routing in which computer
processing applications are used to act on the form,
code or protocol of the content for purposes of
transmission, conveyance or routing without regard to
whether such service is referred to as voice-over
Internet protocol services or is classified by the
Federal Communications Commission as enhanced or value
added. "Telecommunications services" do not include:
(1) data processing and information services that
allow data to be generated, acquired, stored,
processed, or retrieved and delivered by an
electronic transmission to a purchaser where such
purchaser’s primary purpose for the underlying
transaction is the processed data or information,
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(2) installation or maintenance of wiring or equipment
on a customer’s premises,
(3) tangible personal property,
(4) advertising, including but not limited to
directory advertising,
(5) billing and collection services provided to third
parties,
(6) Internet access services,
(7) radio and television audio and video programming
services, regardless of the medium, including the
furnishing of transmission, conveyance and routing
of such services by the programming service
provider. Radio and television audio and video
programming services shall include, but not be
limited to, cable service as defined in 47 U.S.C.
522(6) and audio and video programming services
delivered by commercial mobile radio service
providers, as defined in 47 C.F.R. 20.3;
(8) ancillary services, or
(9) digital products delivered electronically,
including but not limited to, software, music,
video, reading materials or ring tones,
b. the term "interstate" means a "telecommunications
service" that originates in one United States state, or
a United States territory or possession, and terminates
in a different United States state or a United States
territory or possession,
c. the term "intrastate" means a telecommunications
service that originates in one United States state or a
United States territory or possession, and terminates
in the same United States state or a United States
territory or possession,
d. the term "ancillary services" means services that are
associated with or incidental to the provision of
telecommunications services, including but not limited
to "detailed telecommunications billing", "directory
assistance", "vertical service", and "voice mail
services",
e. in the case of a bundled transaction that includes
telecommunication service, ancillary service, internet
access or audio or video programming service:
(1) if the price is attributable to products that are
taxable and products that are nontaxable, the
portion of the price attributable to the
nontaxable products may be subject to tax unless
the provider can identify by reasonable and
verifiable standards such portion for its books
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and records kept in the regular course of business
for other purposes, including, but not limited to,
nontax purposes, and
(2) the provisions of this paragraph shall apply
unless otherwise provided by federal law, and
f. a sale of prepaid calling service or prepaid wireless
calling service shall be taxable at the time of sale to
the customer;
5. Telecommunications nonrecurring charges, which means an
amount billed for the installation, connection, change or initiation
of telecommunications services received by a customer;
6. Printing or printed matter of all types, kinds, or character
and, except for services of printing, copying or photocopying
performed by a privately owned scientific and educational library
sustained by monthly or annual dues paid by members sharing the use
of such services with students interested in the study of geology,
petroleum engineering or related subjects, any service of printing or
overprinting, including the copying of information by mimeograph,
multigraph, or by otherwise duplicating written or printed matter in
any manner, or the production of microfiche containing information
from magnetic tapes or other media furnished by customers;
7. Service of furnishing rooms by hotel, apartment hotel, public
rooming house, motel, public lodging house, or tourist camp;
8. Service of furnishing storage or parking privileges by auto
hotels or parking lots;
9. Computer hardware, software, coding sheets, cards, magnetic
tapes or other media on which prewritten programs have been coded,
punched, or otherwise recorded, including the gross receipts from the
licensing of software programs;
10. Foods, confections, and all drinks sold or dispensed by
hotels, restaurants, or other dispensers, and sold for immediate
consumption upon the premises or delivered or carried away from the
premises for consumption elsewhere;
11. Advertising of all kinds, types, and characters, including
any and all devices used for advertising purposes except those
specifically exempt pursuant to the provisions of Section 1357 of
this title;
12. Dues or fees to clubs including free or complimentary dues
or fees which have a value equivalent to the charge that would have
otherwise been made, including any fees paid for the use of
facilities or services rendered at a health spa or club or any
similar facility or business;
13. Tickets for admission to or voluntary contributions made to
places of amusement, sports, entertainment, exhibition, display, or
other recreational events or activities, including free or
complimentary admissions which have a value equivalent to the charge
that would have otherwise been made;
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14. Charges made for the privilege of entering or engaging in
any kind of activity, such as tennis, racquetball, or handball, when
spectators are charged no admission fee;
15. Charges made for the privilege of using items for amusement,
sports, entertainment, or recreational activity, such as trampolines
or golf carts;
16. The rental of equipment for amusement, sports,
entertainment, or other recreational activities, such as bowling
shoes, skates, golf carts, or other sports or athletic equipment;
17. The gross receipts from sales from any vending machine
without any deduction for rental to locate the vending machine on the
premises of a person who is not the owner or any other deductions
therefrom;
18. The gross receipts or gross proceeds from the rental or
lease of tangible personal property, including rental or lease of
personal property when the rental or lease agreement requires the
vendor to launder, clean, repair, or otherwise service the rented or
leased property on a regular basis, without any deduction for the
cost of the service rendered. If the rental or lease charge is based
on the retail value of the property at the time of making the rental
or lease agreement and the expected life of the property, and the
rental or lease charge is separately stated from the service cost in
the statement, bill, or invoice delivered to the consumer, the cost
of services rendered shall be deducted from the gross receipts or
gross proceeds;
19. Flowers, plants, shrubs, trees, and other floral items,
whether or not produced by the vendor, sold by persons engaged in
florist or nursery business in this state, including all orders taken
by an Oklahoma business for delivery in another state. All orders
taken outside this state for delivery within this state shall not be
subject to the taxes levied in this section;
20. Tangible personal property sold to persons, peddlers,
solicitors, or other salesmen, for resale when there is likelihood
that this state will lose tax revenue due to the difficulty of
enforcing the provisions of the Oklahoma Sales Tax Code because of:
a. the operation of the business,
b. the nature of the business,
c. the turnover of independent contractors,
d. the lack of place of business in which to display a
permit or keep records,
e. lack of adequate records,
f. the fact that the persons are minors or transients,
g. the fact that the persons are engaged in service
businesses, or
h. any other reasonable reason;
21. Any taxable services and tangible personal property
including materials, supplies, and equipment sold to contractors for
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the purpose of developing and improving real estate even though said
real estate is intended for resale as real property, hereby declared
to be sales to consumers or users, however, taxable materials,
supplies and equipment sold to contractors as provided by this
subsection which are purchased as a result of and subsequent to the
date of a contract entered into either prior to the effective date of
any law increasing the rate of sales tax imposed by this article, or
entered into prior to the effective date of an ordinance or other
measure increasing the sales tax levy of a political subdivision
shall be subject to the rate of sales tax applicable, as of the date
such contract was entered into, to sales of such materials, supplies
and equipment if such purchases are required in order to complete the
contract. Such rate shall be applicable to purchases made pursuant
to the contract or any change order under the contract until the
contract or any change order has been completed, accepted and the
contractor has been discharged from any further obligation under the
contract or change order or until two (2) years from the date on
which the contract was entered into whichever occurs first. The
increased sales tax rate shall be applicable to all such purchases at
the time of sale and the contractor shall file a claim for refund
before the expiration of three (3) years after the date of contract
completion or five (5) years after the contract was entered into,
whichever occurs earlier. However, the Oklahoma Tax Commission shall
prescribe rules and regulations and shall provide procedures for the
refund to a contractor of sales taxes collected on purchases eligible
for the lower sales tax rate authorized by this subsection;
22. Any taxable services and tangible personal property sold to
persons who are primarily engaged in selling their services, such as
repairmen, hereby declared to be sales to consumers or users; and
23. Canoes and paddleboats as defined in Section 4002 of Title
63 of the Oklahoma Statutes.
B. All solicitations or advertisements in print or electronic
media by Group Three vendors, for the sale of tangible property to be
delivered within this state, shall contain a notice that the sale is
subject to Oklahoma sales tax, unless the sale is exempt from such
taxation.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1984, c. 2, § 2, emerg. eff. Feb. 15, 1984; Laws 1985, c.
179, § 86, operative July 1, 1985; Laws 1985, c. 356, § 13, emerg.
eff. July 30, 1985; Laws 1987, c. 113, § 16, operative June 1, 1987;
Laws 1988, c. 142, § 1, emerg. eff. April 25, 1988; Laws 1988, c.
192, § 1, operative July 1, 1988; Laws 1989, 1st Ex. Sess., c. 2, §
101, operative Feb. 1, 1990; Laws 1990, c. 280, § 1, emerg. eff. May
25, 1990; Laws 1991, c. 342, § 14, emerg. eff. June 15, 1991; Laws
1992, c. 175, § 1, emerg. eff. May 6, 1992; Laws 1992, c. 383, § 1,
emerg. eff. June 9, 1992; Laws 1994, c. 278, § 13, eff. Sept. 1,
1994; Laws 1997, c. 252, § 1, emerg. eff. May 23, 1997; Laws 1998, c.
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301, § 4, eff. Nov. 1, 1998; Laws 1999, c. 390, § 7, emerg. eff. June
8, 1999; Laws 2001, c. 153, § 7; Laws 2003, c. 413, § 2, eff. Nov. 1,
2003; Laws 2004, c. 535, § 4, eff. Nov. 1, 2004; Laws 2005, c. 1, §
104, emerg. eff. March 15, 2005; Laws 2005, c. 479, § 12, eff. July
1, 2005; Laws 2007, c. 155, § 5, eff. Nov. 1, 2007; Laws 2012, c.
323, § 2, eff. July 1, 2013.
NOTE: Laws 2004, c. 362, § 1 repealed by Laws 2005, c. 1, § 105,
emerg. eff. March 15, 2005.
§68-1354.1. Repealed by Laws 2016, c. 311, § 7, eff. Nov. 1, 2016.
§68-1354.2. Repealed by Laws 2016, c. 311, § 7, eff. Nov. 1, 2016.
§68-1354.3. Repealed by Laws 2016, c. 311, § 7, eff. Nov. 1, 2016.
§68-1354.4. Repealed by Laws 2016, c. 311, § 7, eff. Nov. 1, 2016.
§68-1354.5. Repealed by Laws 2016, c. 311, § 7, eff. Nov. 1, 2016.
§68-1354.6. Repealed by Laws 2016, c. 311, § 7, eff. Nov. 1, 2016.
§68-1354.7. Streamlined Sales Tax System Act - Short title.
This act shall be known and may be cited as the "Streamlined
Sales Tax System Act".
Added by Laws 2000, c. 314, § 8, eff. July 1, 2000.
§68-1354.8. Streamlined Sales Tax System Act - Legislative findings.
The Legislature finds that:
1. State and local tax systems should treat transactions in a
competitively neutral manner;
2. A simplified sales and use tax system that treats all
transactions in a competitively neutral manner will strengthen and
preserve the sales and use tax as vital state and local revenue
sources and preserve state fiscal sovereignty;
3. Remote sellers should not receive preferential tax treatment
at the expense of local "Main Street" merchants, nor should such
vendors be burdened with special, discriminatory or multiple taxes;
4. The state should simplify sales and use taxes to reduce the
administrative burden of collection; and
5. While states have the sovereign right to set their own tax
policies, states working together have the opportunity to develop a
more simple, uniform and fair system of state sales and use taxation
without federal government mandates or interference.
Added by Laws 2000, c. 314, § 9, eff. July 1, 2000.
§68-1354.9. Streamlined Sales Tax System Act - Multi-state
discussions - Tax exempt status.
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The Oklahoma Tax Commission shall enter into discussions with
states regarding development of a multi-state, voluntary, streamlined
system for sales and use tax collection and administration. These
discussions shall focus on a system that would have the capability to
determine whether the transaction is taxable or tax exempt, the
appropriate tax rate applied to the transaction, and the total tax
due on the transaction, and shall provide a method for collecting and
remitting sales and use taxes to the state. Such system may provide
compensation for the costs of collecting and remitting sales and use
taxes. Discussions between the Tax Commission and other states may
include, but are not limited to:
1. The development of a "Joint Request for Information" from
potential public and private parties governing the specifications for
such system;
2. The mechanism for compensating parties for the development
and operation of such system;
3. Establishment of minimum statutory simplification measures
necessary for state participation in such system; and
4. Measures to preserve confidentiality of taxpayer information
and privacy rights of consumers.
Following these discussions, the Tax Commission may proceed to
issue a Joint Request for Information.
Added by Laws 2000, c. 314, § 10, eff. July 1, 2000.
§68-1354.10. Streamlined Sales Tax System Act - Sales tax pilot
project.
The Oklahoma Tax Commission is authorized to participate in a
sales tax pilot project with other states and selected businesses to
test means for simplifying sales and use tax administration and may
enter into joint agreements for that purpose.
Agreements to participate in the test shall establish provisions
for the administration, imposition and collection of sales and use
taxes resulting in revenues paid that are the same as would be paid
under existing law.
Parties to the agreements are excused from complying with the
provisions of the Oklahoma Sales Tax Code or the Oklahoma Use Tax
Code to the extent a different procedure is required by the
agreements, except for confidentiality of taxpayer information as
detailed in Section 12 of this act.
Agreements authorized under this section shall terminate no later
than December 31, 2001.
Added by Laws 2000, c. 314, § 11, eff. July 1, 2000.
§68-1354.11. Streamlined Sales Tax System Act - Confidential
taxpayer information.
Return information submitted to any party or parties acting for
and on behalf of the state shall be treated as confidential taxpayer
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information. Disclosure of confidential taxpayer information
necessary under Sections 10 and 11 of this act shall be pursuant to a
written agreement between the Oklahoma Tax Commission and the party
or parties. Such party or parties shall be bound by the same
requirements of confidentiality as the Tax Commission pursuant to the
provisions of Section 205 of Title 68 of the Oklahoma Statutes.
Added by Laws 2000, c. 314, § 12, eff. July 1, 2000.
§68-1354.12. Repealed by Laws 2013, c. 227, § 22, eff. Nov. 1, 2013.
§68-1354.13. Repealed by Laws 2013, c. 227, § 22, eff. Nov. 1, 2013.
§68-1354.14. Streamlined Sales and Use Tax Administration Act -
Short title.
Sections 1354.14 through 1354.23 of this title shall be known and
may be cited as the “Streamlined Sales and Use Tax Administration
Act”.
Added by Laws 2001, c. 272, § 1, eff. Nov. 1, 2001. Amended by Laws
2003, c. 413, § 3, eff. Nov. 1, 2003.
§68-1354.15. Definitions.
As used in the Streamlined Sales and Use Tax Administration Act:
1. “Agreement” means the Streamlined Sales and Use Tax
Agreement;
2. “Certified automated system” means software certified jointly
by the states that are signatories to the Agreement to calculate the
tax imposed by each jurisdiction on a transaction, determine the
amount of tax to remit to the appropriate state, and maintain a
record of the transaction;
3. “Certified service provider” means an agent certified jointly
by the states that are signatories to the Agreement to perform all of
the seller’s sales tax functions;
4. “Commission” or “Tax Commission” means the Oklahoma Tax
Commission;
5. “Model 1 Seller” means a seller that has selected a certified
service provider as its agent to perform all the seller's sales and
use tax functions, other than the seller's obligation to remit tax on
its own purchases;
6. “Model 2 Seller” means a seller that has selected a certified
automated system to perform part of its sales and use tax functions
but retains responsibility for remitting the tax;
7. “Model 3 Seller” means a seller that has sales in at least
five states that are members of the Streamlined Sales and Use Tax
Agreement, has total annual sales revenue of at least Five Hundred
Million Dollars ($500,000,000.00), has a proprietary system that
calculates the amount of tax due each jurisdiction, and has entered
into a performance agreement with the member states that establishes
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a tax performance standard for the seller. As used in this
definition, a seller includes an affiliated group of sellers using
the same proprietary system;
8. “Model 4 Seller” means a seller registered under the
Agreement which is not a Model 1 Seller, Model 2 Seller or Model 3
Seller;
9. “Person” means an individual, trust, estate, fiduciary,
partnership, limited liability company, limited liability
partnership, corporation, or any other legal entity;
10. “Sales tax” means a tax levied by the state, by a county or
by another entity under Section 1350 et seq. of this title or a sales
tax levied by a municipality under Section 2701 of this title;
11. “Seller” means any person making sales, leases or rentals of
personal property or services;
12. “State” means any state of the United States and the District
of Columbia; and
13. “Use tax” means a tax levied under Section 1401 et seq. of
this title or a use tax levied by a county, municipality or other
entity as provided by law.
Added by Laws 2001, c. 272, § 2, eff. Nov. 1, 2001. Amended by Laws
2003, c. 413, § 4, eff. Nov. 1, 2003; Laws 2010, c. 419, § 2, eff.
Nov. 1, 2010.
§68-1354.16. Streamlined Sales and Use Tax Administration Act -
Purpose.
The Legislature finds that a streamlined sales and use tax system
will reduce and, over time, eliminate the burden and cost for all
vendors to collect sales and use taxes levied by this state and its
political subdivisions. The Legislature further finds that this
state should enter into the Streamlined Sales and Use Tax Agreement
to simplify and modernize sales and use tax administration in order
to substantially reduce the burden of tax compliance for all sellers
and for all types of commerce.
Added by Laws 2001, c. 272, § 3, eff. Nov. 1, 2001. Amended by Laws
2003, c. 413, § 5, eff. Nov. 1, 2003.
§68-1354.17. Streamlined Sales and Use Tax Administration Act -
Representatives on governing board.
For the purposes of representing this state on the governing
board authorized by the Streamlined Sales and Use Tax Agreement,
there shall be four representatives as authorized by this section.
The state shall be represented by one member of the State Senate
appointed by the President Pro Tempore of the Senate, one member of
the Oklahoma House of Representatives appointed by the Speaker of the
Oklahoma House of Representatives, one state employee employed in the
area of taxation or finance appointed by the Governor and one member
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or employee of the Oklahoma Tax Commission appointed by the Tax
Commission.
Added by Laws 2001, c. 272, § 4, eff. Nov. 1, 2001. Amended by Laws
2003, c. 413, § 6, eff. Nov. 1, 2003.
§68-1354.18. Streamlined Sales and Use Tax Administration Act -
Duties and authority of Tax Commission - Entry into Streamlined Sales
and Use Tax Agreement.
Subject to the provisions of Section 1354.20 of this title, the
Oklahoma Tax Commission is authorized and directed to enter into the
Streamlined Sales and Use Tax Agreement with one or more states to
simplify and modernize sales and use tax administration in order to
substantially reduce the burden of tax compliance for all sellers and
for all types of commerce. In furtherance of the Agreement, the Tax
Commission is authorized to act jointly with other states that are
members of the Agreement to establish standards for certification of
a certified service provider and certified automated system and
establish performance standards for multistate sellers.
The Tax Commission is further authorized to take other actions
reasonably required to implement the provisions set forth in the
Streamlined Sales and Use Tax Administration Act, including, but not
limited to, the promulgation of rules and the joint procurement, with
other member states, of goods and services in furtherance of the
cooperative agreement.
The Tax Commission or the Tax Commission’s designee is authorized
to represent this state before the other states that are signatories
to the Agreement.
Added by Laws 2001, c. 272, § 5, eff. Nov. 1, 2001. Amended by Laws
2003, c. 413, § 7, eff. Nov. 1, 2003.
§68-1354.19. Simplified Sales and Use Tax Administration Act -
Effect of Agreements on laws of state.
No provision of the Agreement authorized by this act in whole or
part invalidates or amends any provision of the law of this state.
Adoption of the Agreement by this state does not amend or modify any
law of this state. Implementation of any condition of the Agreement
in this state, whether adopted before, at, or after membership of
this state in the Agreement, must be by the action of this state.
Added by Laws 2001, c. 272, § 6, eff. Nov. 1, 2001.
§68-1354.20. Streamlined Sales and Use Tax Administration Act -
Requirements for entering into Streamlined Sales and Use Tax
Agreement.
The Oklahoma Tax Commission shall not enter into the Streamlined
Sales and Use Tax Agreement unless the Agreement requires each state
to abide by the following requirements:
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1. Simplified State Rate. The Agreement must set restrictions
to limit over time the number of state rates;
2. Uniform Standards. The Agreement must establish uniform
standards for the following:
a. the sourcing of transactions to taxing jurisdictions,
b. the administration of exempt sales, and
c. sales and use tax returns and remittances;
3. Central Registration. The Agreement must provide a central,
electronic registration system that allows a seller to register to
collect and remit sales and use taxes for all signatory states;
4. No Nexus Attribution. The Agreement must provide that
registration with the central registration system and the collection
of sales and use taxes in the signatory states will not be used as a
factor in determining whether the seller has nexus with a state for
any tax;
5. Local Sales and Use Taxes. The Agreement must provide for
reduction of the burdens of complying with local sales and use taxes
through the following:
a. restricting variances between the state and local tax
bases,
b. requiring states to administer any sales and use taxes
levied by local jurisdictions within the state so that
sellers collecting and remitting these taxes will not
have to register or file returns with, remit funds to,
or be subject to independent audits from local taxing
jurisdictions,
c. restricting the frequency of changes in the local sales
and use tax rates and setting effective dates for the
application of local jurisdictional boundary changes to
local sales and use taxes, and
d. providing notice of changes in local sales and use tax
rates and of changes in the boundaries of local taxing
jurisdictions;
6. Monetary Allowances. The Agreement must outline any monetary
allowances that are to be provided by the states to sellers or
certified service providers. The Agreement must allow for a review
of the costs and benefits of administration and collection of sales
and use taxes incurred by states and sellers under the existing sales
and use tax laws at the time of adoption of the Agreement and the
proposed Streamlined Sales and Use Tax Agreement;
7. State Compliance. The Agreement must require each state to
certify compliance with the terms of the Agreement prior to joining
and to maintain compliance, under the laws of the member state, with
all provisions of the Agreement while a member;
8. Consumer Privacy. The Agreement must require each state to
adopt a uniform policy for certified service providers that protects
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the privacy of consumers and maintains the confidentiality of tax
information; and
9. Advisory Councils. The Agreement must provide for the
appointment of an advisory council of private sector representatives
and an advisory council of nonmember state representatives to consult
with in the administration of the Agreement.
Added by Laws 2001, c. 272, § 7, eff. Nov. 1, 2001. Amended by Laws
2003, c. 413, § 8, eff. Nov. 1, 2003.
§68-1354.21. Simplified Sales and Use Tax Administration Act -
Effect of Agreement.
The Agreement authorized by this act is an accord among
individual cooperating sovereigns in furtherance of their
governmental functions. The Agreement provides a mechanism among the
member states to establish and maintain a cooperative, simplified
system for the application and administration of sales and use taxes
under the duly adopted law of each member state.
Added by Laws 2001, c. 272, § 8, eff. Nov. 1, 2001.
§68-1354.22. Simplified Sales and Use Tax Administration Act -
Persons benefitted by Agreement.
A. The Agreement authorized by this act binds and inures only to
the benefit of this state and the other member states. No person,
other than a member state, is an intended beneficiary of the
Agreement. Any benefit to a person other than a state is established
by the law of this state and the other member states and not by the
terms of the Agreement.
B. Consistent with subsection A of this section, no person shall
have any cause of action or defense under the Agreement or by virtue
of this state’s approval of the Agreement. No person may challenge,
in any action brought under any provision of law, any action or
inaction by any department, agency, or other instrumentality of this
state, or any political subdivision of this state on the ground that
the action or inaction is inconsistent with the Agreement.
C. No law of this state, or the application thereof, may be
declared invalid as to any person or circumstance on the ground that
the provision or application is inconsistent with the Agreement.
Added by Laws 2001, c. 272, § 9, eff. Nov. 1, 2001.
§68-1354.23. Simplified Sales and Use Tax Administration Act -
Certified service provider defined - Seller liability.
A. A certified service provider is the agent of a seller, with
whom the certified service provider has contracted, for the
collection and remittance of sales and use taxes. As the seller’s
agent, the certified service provider is liable for sales and use tax
due each member state on all sales transactions it processes for the
seller except as set out in this section.
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A seller that contracts with a certified service provider is not
liable to the state for sales or use tax due on transactions
processed by the certified service provider unless the seller
misrepresented the type of items it sells or committed fraud. In the
absence of probable cause to believe that the seller has committed
fraud or made a material misrepresentation, the seller is not subject
to audit on the transactions processed by the certified service
provider. A seller is subject to audit for transactions not
processed by the certified service provider. The member states
acting jointly may perform a system check of the seller and review
the seller’s procedures to determine if the certified service
provider’s system is functioning properly and the extent to which the
seller’s transactions are being processed by the certified service
provider.
B. A person that provides a certified automated system is
responsible for the proper functioning of that system and is liable
to the state for underpayments of tax attributable to errors in the
functioning of the certified automated system. A seller that uses a
certified automated system remains responsible and is liable to the
state for reporting and remitting tax.
C. A seller that has a proprietary system for determining the
amount of tax due on transactions and has signed an agreement
establishing a performance standard for that system is liable for the
failure of the system to meet the performance standard.
Added by Laws 2001, c. 272, § 10, eff. Nov. 1, 2001.
§68-1354.24. Amnesty for uncollected or unpaid sales or use taxes.
A. If the Oklahoma Tax Commission enters into the Streamlined
Sales and Use Tax Agreement under Section 1354.18 of Title 68 of the
Oklahoma Statutes and subject to the limitations in this section:
1. Amnesty shall be granted for uncollected or unpaid sales or
use taxes to a seller who registers to pay or to collect and remit
applicable sales or use taxes on sales made to purchasers in this
state in accordance with the terms of the Streamlined Sales and Use
Tax Agreement, provided that the seller was not registered in this
state in the twelve-month period preceding the effective date of this
state's participation in the Agreement; and
2. The amnesty will preclude assessment for uncollected or
unpaid sales or use tax together with penalty or interest for sales
made during the period the seller was not registered in this state,
provided registration occurs within twelve (12) months of the
effective date of this state’s participation in the Agreement.
B. The amnesty is not available to a seller with respect to any
matter or matters for which the seller received notice of the
commencement of an audit and which audit is not yet finally resolved
including any related administrative and judicial processes.
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C. The amnesty is not available for sales or use taxes already
paid or remitted to the state or to taxes collected by the seller.
D. The amnesty is fully effective, absent the seller’s fraud or
intentional misrepresentation of a material fact, as long as the
seller continues registration and continues payment or collection and
remittance of applicable sales or use taxes for a period of at least
thirty-six (36) months. The statute of limitations applicable to
asserting a tax liability during this thirty-six-month period shall
be tolled.
E. The amnesty is applicable only to sales or use taxes due from
a seller in its capacity as a seller and not to sales or use taxes
due from a seller in its capacity as a buyer.
Added by Laws 2003, c. 413, § 17, eff. Nov. 1, 2003.
§68-1354.25. Effective date of state or local sales and use tax rate
changes.
The effective date of state or local sales and use tax rate
changes for services covering a period starting before and ending
after the statutory effective date shall be as follows:
1. For a rate increase, the new rate shall apply to the first
billing period starting on or after the effective date; and
2. For a rate decrease, the new rate shall apply to bills
rendered on or after the effective date.
Added by Laws 2003, c. 413, § 18, eff. Nov. 1, 2003.
§68-1354.26. Refund of incorrectly paid sales or use taxes.
A. A consumer may seek a refund of incorrectly paid sales or use
taxes directly from the state or it may seek a refund from its
vendor.
B. These refund procedures provide the first course of remedy
available to purchasers seeking a return of over-collected sales or
use taxes from the seller. A cause of action against the seller for
the over-collected sales or use taxes does not accrue until a
purchaser has provided written notice to a seller and the seller has
had sixty (60) days to respond. Such notice to the seller must
contain the information necessary to determine the validity of the
request.
C. In connection with a purchaser's request from a seller of
over-collected sales or use taxes, a seller shall be presumed to have
a reasonable business practice, if in the collection of such sales or
use taxes, the seller uses either a certified service provider or a
certified automated system, including a proprietary system, that is
certified by the Oklahoma Tax Commission and has remitted to the
state all taxes collected less any deductions, credits, or collection
allowances.
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D. Nothing in this section shall operate to extend any person's
time to seek a refund of sales or use taxes collected or remitted in
error.
Added by Laws 2003, c. 413, § 19, eff. Nov. 1, 2003.
§68-1354.27. Sourcing of retail sale or lease or rental.
A. The retail sale, excluding lease or rental, of a product
shall be sourced as follows:
1. When the product is received by the purchaser at a business
location of the seller, the sale is sourced to that business
location;
2. When the product is not received by the purchaser at a
business location of the seller, the sale is sourced to the location
where receipt by the purchaser, or the purchaser's donee, designated
as such by the purchaser, occurs, including the location indicated by
instructions for delivery to the purchaser or donee, known to the
seller. Provided, this subsection shall not apply to florists. All
sales by florists shall be sourced to its business location;
3. When the provisions of paragraphs 1 and 2 of this subsection
do not apply, the sale is sourced to the location indicated by an
address for the purchaser that is available from the business records
of the seller that are maintained in the ordinary course of the
seller's business when use of this address does not constitute bad
faith;
4. When the provisions of paragraphs 1, 2 and 3 of this
subsection do not apply, the sale is sourced to the location
indicated by an address for the purchaser obtained during the
consummation of the sale, including the address of a purchaser's
payment instrument, if no other address is available, when use of
this address does not constitute bad faith; and
5. When none of the previous rules of paragraphs 1, 2, 3 and 4
of this subsection apply, including the circumstance in which the
seller is without sufficient information to apply the previous rules,
then the location will be determined by the address from which
tangible personal property was shipped, from which the digital good
or the computer software delivered electronically was first available
for transmission by the seller, or from which the service was
provided, disregarding for these purposes any location that merely
provided the digital transfer of the product sold. In the case of a
sale of mobile telecommunications service that is a prepaid
telecommunications service, the location will be that which is
associated with the mobile telephone number.
B. The lease or rental of tangible personal property, other than
property identified in subsection C or D of this section, shall be
sourced as follows:
1. For a lease or rental that requires recurring periodic
payments, the first periodic payment is sourced the same as a retail
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sale in accordance with the provisions of subsection A of this
section. Periodic payments made subsequent to the first payment are
sourced to the primary property location for each period covered by
the payment. The primary property location shall be as indicated by
an address for the property provided by the lessee that is available
to the lessor from its records maintained in the ordinary course of
business, when use of this address does not constitute bad faith.
The property location shall not be altered by intermittent use at
different locations, such as use of business property that
accompanies employees on business trips and service calls; and
2. For a lease or rental that does not require recurring
periodic payments, the payment is sourced the same as a retail sale
in accordance with the provisions of subsection A of this section.
This subsection does not affect the imposition or computation of
sales or use tax on leases or rentals based on a lump sum or
accelerated basis, or on the acquisition of property for lease.
C. The lease or rental of motor vehicles, trailers,
semitrailers, or aircraft that do not qualify as transportation
equipment, as defined in subsection D of this section, shall be
sourced as follows:
1. For a lease or rental that requires recurring periodic
payments, each periodic payment is sourced to the primary property
location. The primary property location shall be as indicated by an
address for the property provided by the lessee that is available to
the lessor from its records maintained in the ordinary course of
business, when use of this address does not constitute bad faith.
This location shall not be altered by intermittent use at different
locations; and
2. For a lease or rental that does not require recurring
periodic payments, the payment is sourced the same as a retail sale
in accordance with the provisions of subsection A of this section.
This subsection does not affect the imposition or computation of
sales or use tax on leases or rentals based on a lump sum or
accelerated basis, or on the acquisition of property for lease.
D. The retail sale, including lease or rental, of transportation
equipment shall be sourced the same as a retail sale in accordance
with the provisions of subsection A of this section, notwithstanding
the exclusion of lease or rental in subsection A of this section.
“Transportation equipment” means any of the following:
1. Locomotives and railcars that are utilized for the carriage
of persons or property in interstate commerce;
2. Trucks and truck-tractors with a Gross Vehicle Weight Rating
(GVWR) of ten thousand one (10,001) pounds or greater, trailers,
semitrailers, or passenger buses that are:
a. registered through the International Registration Plan,
and
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b. operated under authority of a carrier authorized and
certificated by the United States Department of
Transportation or another federal authority to engage
in the carriage of persons or property in interstate
commerce;
3. Aircraft that are operated by air carriers authorized and
certificated by the United States Department of Transportation or
another federal or a foreign authority to engage in the carriage of
persons or property in interstate or foreign commerce; and
4. Containers designed for use on and component parts attached
or secured on the items set forth in paragraphs 1, 2 and 3 of this
subsection.
E. For the purposes of this section, the terms "receive" and
"receipt" mean:
1. Taking possession of tangible personal property;
2. Making first use of services; or
3. Taking possession or making first use of digital goods,
whichever comes first.
The terms "receive" and "receipt" do not include possession by a
shipping company on behalf of the purchaser.
Added by Laws 2003, c. 413, § 20, eff. Nov. 1, 2003. Amended by Laws
2006, c. 327, § 4, eff. July 1, 2006; Laws 2007, c. 155, § 6, eff.
Nov. 1, 2007; Laws 2008, c. 378, § 11, emerg. eff. June 4, 2008; Laws
2010, c. 419, § 3, eff. Nov. 1, 2010.
§68-1354.28. Repealed by Laws 2007, c.155, § 17 , eff. July 1, 2007.
§68-1354.29. Purchase of digital good, computer software delivered
electronically, or service delivered electronically - Multiple Points
of Use (MPU) Exemption Form.
A. Notwithstanding the provisions of Section 20 of this act, a
purchaser of direct mail that is not a holder of a direct pay permit
shall provide to the seller in conjunction with the purchase either a
Direct Mail Form or information to show the jurisdictions to which
the direct mail is delivered to recipients.
Upon receipt of the Direct Mail Form, the seller is relieved of
all obligations to collect, pay or remit the applicable tax and the
purchaser is obligated to pay or remit the applicable tax on a direct
pay basis. A Direct Mail Form shall remain in effect for all future
sales of direct mail by the seller to the purchaser until it is
revoked in writing.
Upon receipt of information from the purchaser showing the
jurisdictions to which the direct mail is delivered to recipients,
the seller shall collect the tax according to the delivery
information provided by the purchaser. In the absence of bad faith,
the seller is relieved of any further obligation to collect tax on
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any transaction where the seller has collected tax pursuant to the
delivery information provided by the purchaser.
B. If the purchaser of direct mail does not have a direct pay
permit and does not provide the seller with either a Direct Mail Form
or delivery information, as required by subsection A of this section,
the seller shall collect the tax according to paragraph 5 of
subsection A of Section 20 of this act. Nothing in this subsection
shall limit a purchaser’s obligation for sales or use tax to any
state to which the direct mail is delivered.
C. If a purchaser of direct mail provides the seller with
documentation of direct pay authority, the purchaser shall not be
required to provide a Direct Mail Form or delivery information to the
seller.
Added by Laws 2003, c. 413, § 22, eff. Nov. 1, 2003.
§68-1354.30. Sourcing of sale of telecommunications services sold on
call-by-call basis.
A. For the purpose of this section, the following definitions
apply:
1. "Air-to-ground radiotelephone service" means a radio service,
as that term is defined in 47 CFR 22.99, in which common carriers are
authorized to offer and provide radio telecommunications service for
hire to subscribers in aircraft;
2. "Call-by-call basis" means any method of charging for
telecommunications services where the price is measured by individual
calls;
3. "Communications channel" means a physical or virtual path of
communications over which signals are transmitted between or among
customer channel termination points;
4. "Customer" means the person or entity that contracts with the
seller of telecommunications services. If the end user of
telecommunications services is not the contracting party, the end
user of the telecommunications service is the customer of the
telecommunications service. "Customer" does not include a reseller
of telecommunications service or for mobile telecommunications
service of a serving carrier under an agreement to serve the customer
outside the home service provider's licensed service area;
5. "Customer channel termination point" means the location where
the customer either inputs or receives the communications;
6. "End user" means the person who utilizes the
telecommunications service. In the case of an entity, “end user”
means the individual who utilizes the service on behalf of the
entity;
7. "Home service provider" means the same as that term is
defined in Section 124(5) of Public Law 106-252, the Mobile
Telecommunications Sourcing Act;
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8. "Mobile telecommunications service" means the same as that
term is defined in Section 124(5) of Public Law 106-252, the Mobile
Telecommunications Sourcing Act;
9. "Place of primary use" means the street address
representative of where the customer's use of the telecommunications
service primarily occurs, which must be the residential street
address or the primary business street address of the customer. In
the case of mobile telecommunications services, "place of primary
use" must be within the licensed service area of the home service
provider;
10. "Post-paid calling service" means the telecommunications
service obtained by making a payment on a call-by-call basis either
through the use of a credit card or payment mechanism such as a bank
card, travel card, credit card, or debit card, or by charge made to
which a telephone number which is not associated with the origination
or termination of the telecommunications service. A post-paid
calling service includes a telecommunications service, except a
prepaid wireless calling service, that would be a prepaid calling
service except it is not exclusively a telecommunications service;
11. "Prepaid calling service" means the right to access
exclusively telecommunications services, which must be paid for in
advance and which enables the origination of calls using an access
number or authorization code, whether manually or electronically
dialed, and that is sold in predetermined units or dollars of which
the number declines with use in a known amount;
12. “Prepaid wireless calling service” means a
telecommunications wireless service that provides the right to
utilize mobile wireless service as well as other
nontelecommunications services, including the download of digital
products delivered electronically, content and ancillary services,
which must be paid for in advance that is sold in predetermined units
or dollars of which the number declines with use in a known amount;
13. "Private communication service" means a telecommunication
service that entitles the customer to exclusive or priority use of a
communications channel or group of channels between or among
termination points, regardless of the manner in which such channel or
channels are connected, and includes switching capacity, extension
lines, stations, and any other associated services that are provided
in connection with the use of such channel or channels; and
14. "Service address" means:
a. the location of the telecommunications equipment to
which a customer's call is charged and from which the
call originates or terminates, regardless of where the
call is billed or paid,
b. if the location in subparagraph a of this paragraph is
not known, “service address” means the origination
point of the signal of the telecommunications services
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first identified by either the seller's
telecommunications system or in information received by
the seller from its service provider, where the system
used to transport such signals is not that of the
seller, and
c. if the locations in subparagraphs a and b of this
paragraph are not known, “service address” means the
location of the customer's place of primary use.
B. Except for the defined telecommunications services in
subsection D of this section, the sale of telecommunications services
sold on a call-by-call basis shall be sourced to:
1. Each level of taxing jurisdiction where the call originates
and terminates in that jurisdiction; or
2. Each level of taxing jurisdiction where the call either
originates or terminates and in which the service address is also
located.
C. Except for the defined telecommunications services in
subsection D of this section, a sale of telecommunications services
sold on a basis other than a call-by-call basis, is sourced to the
customer's place of primary use.
D. The sale of the following telecommunications services shall
be sourced to each level of taxing jurisdiction as follows:
1. A sale of mobile telecommunications services other than air-
to-ground radiotelephone service and prepaid calling service, is
sourced to the customer's place of primary use as required by the
provisions of Section 55001 of this title;
2. A sale of post-paid calling service is sourced to the
origination point of the telecommunications signal as first
identified by either:
a. the seller's telecommunications system, or
b. information received by the seller from its service
provider, where the system used to transport such
signals is not that of the seller;
3. A sale of prepaid calling service or a sale of a prepaid
wireless calling service is sourced in accordance with Section
1354.27 of this title. Provided, in the case of a sale of a prepaid
wireless calling service, the provisions of paragraph 5 of subsection
A of Section 1354.27 of this title shall apply; and
4. A sale of a private communication service is sourced as
follows:
a. service for a separate charge related to a customer
channel termination point is sourced to each level of
jurisdiction in which such customer channel termination
point is located,
b. service where all customer termination points are
located entirely within one jurisdiction or levels of
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jurisdiction is sourced in such jurisdiction in which
the customer channel termination points are located,
c. service for segments of a channel between two customer
channel termination points located in different
jurisdictions and which segment of channel are
separately charged is sourced fifty percent (50%) in
each level of jurisdiction in which the customer
channel termination points are located, and
d. service for segments of a channel located in more than
one jurisdiction or levels of jurisdiction and which
segments are not separately billed is sourced in each
jurisdiction based on the percentage determined by
dividing the number of customer channel termination
points in such jurisdiction by the total number of
customer channel termination points.
Added by Laws 2003, c. 413, § 23, eff. Nov. 1, 2003. Amended by Laws
2007, c. 155, § 7, eff. Nov. 1, 2007.
§68-1354.31. Entry into Streamlined Sales and Use Tax Agreement -
Monetary allowance from taxes collected - Compensation for start-up
costs.
A. If the Oklahoma Tax Commission enters into the Streamlined
Sales and Use Tax Agreement under Section 1354.18 of this title, the
Tax Commission is authorized to provide a monetary allowance from the
taxes collected to each of the following:
1. A certified service provider, in accordance with the
agreement and under the terms of the contract signed with the
provider;
2. Any vendor registered under the agreement that selects a
certified automated system to perform part of its sales or use tax
functions; and
3. Any vendor registered under the agreement that uses a
proprietary system to calculate taxes due and has entered into a
performance agreement with states that are members to the Streamlined
Sales and Use Tax Agreement.
B. The monetary allowance provided for in paragraph 2 or 3 of
subsection A of this section shall be given to the vendor for the
period established by, and at the rate set in, the Streamlined Sales
and Use Tax Agreement entered into under Section 1354.18 of Title 68
of the Oklahoma Statutes if the Tax Commission determines that such
terms are reasonable and provide adequate incentive for such vendors.
C. Any vendor that is a remote seller that initially contracts
with a certified service provider for the collection and remittance
of sales and use taxes to this state on or after October 1, 2010, and
before July 1, 2011, shall be allowed compensation for the start-up
costs associated with utilizing a certified service provider as
provided in this subsection. The seller shall be allowed to retain
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twenty percent (20%) of the sales and use taxes collected by such
seller, for a period of up to six (6) months, beginning with the
first month such taxes are remitted by the certified service
provider. The total amount retained by the seller as compensation
may not exceed the sum of Five Hundred Dollars ($500.00). A seller
which retains such compensation shall be required to continue to
collect and remit applicable sales and use taxes for a period of at
least thirty-six (36) months. A seller which does not continue to
collect and remit applicable sales and use taxes for a period of at
least thirty-six (36) months shall be required to forfeit and repay
all compensation to this state that it had retained pursuant to this
subsection.
D. On or after October 1, 2010, in addition to any compensation
provided pursuant to subsection C of this section, and in lieu of the
deduction provided by subsections A, B, C and D of Section 1367.1 of
this title, a remote seller that collects and remits sales and use
taxes to this state shall be eligible, at the option of the seller,
for either the compensation in the amounts, and subject to the
limitations provided in the Streamlined Sales and Use Tax Agreement,
or for the Oklahoma Tax Commission to assume the direct cost of
contracting with a certified service provider. In the event the
Streamlined Sales and Use Tax Agreement has not adopted provisions
for vendor compensation, a remote seller shall be eligible, at the
option of the seller, for the deductions provided by Section 1367.1
of this title or for the Oklahoma Tax Commission to assume the direct
cost of contracting with a certified service provider.
E. For purposes of this section, the term “remote seller” shall
mean a seller that would not register to collect sales and use taxes
in this state but for the ability of this state to require such
remote seller to collect sales or use tax under federal authority.
Added by Laws 2003, c. 413, § 24, eff. Nov. 1, 2003. Amended by Laws
2010, c. 412, § 13, eff. July 1, 2010.
§68-1354.32. Database describing boundary changes for taxing
jurisdictions.
The Oklahoma Tax Commission shall:
1. Provide and maintain a database that describes boundary
changes for all taxing jurisdictions within this state for sales and
use tax purposes. This database shall include a description of the
change and the effective date of the change for sales and use tax
purposes;
2. Provide and maintain a database of all sales and use tax
rates for all of the jurisdictions levying taxes within the state.
For the identification of the state, counties, and cities, codes
corresponding to the rates must be provided according to Federal
Information Processing Standards (FIPS) as developed by the National
Institute of Standards and Technology;
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3. Provide and maintain a database that assigns each five-digit
and nine-digit zip code within the state to the proper tax rates and
jurisdictions. The lowest combined tax rate imposed in the zip code
area shall apply if the area includes more than one tax rate in any
level of taxing jurisdictions. The collections from an area that
includes more than one jurisdiction in a level shall be allocated
between the jurisdictions according to the pro rata population of
each jurisdiction in the area. If a nine-digit zip code designation
is not available for a street address or if a seller or certified
service provider (CSP) is unable to determine the nine-digit zip code
designation applicable to a purchaser after exercising due diligence
to determine the designation, the seller or CSP may apply the rate
for the five-digit zip code area. For the purposes of this section,
there is a rebuttable presumption that a seller has exercised due
diligence if the seller or CSP has attempted to determine the nine-
digit zip code designation by utilizing software approved by the Tax
Commission that makes this designation from the street address and
the five-digit zip code applicable to the purchaser;
4. Have the option of providing address-based database records
for assigning taxing jurisdictions and their associated rates which
shall be in addition to the requirements of paragraph 3 of this
section. The database records must be in the same approved format as
the database records pursuant to paragraph 3 of this section and must
meet the requirements developed pursuant to the federal Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 119(a). If the Tax
Commission develops and adopts address-based assignment database
records pursuant to the Agreement, a seller or CSP may use those
database records in place of the five- and nine-digit zip code
database records provided for in paragraph 3 of this section. If a
seller or CSP is unable to determine the applicable rate and
jurisdiction using an address-based database record after exercising
due diligence, the seller or CSP may apply the nine-digit zip code
designation applicable to a purchase. If a nine-digit zip code
designation is not available for a street address or if a seller or
CSP is unable to determine the nine-digit zip code designation
applicable to a purchase after exercising due diligence to determine
the designation, the seller or CSP may apply the rate for the five-
digit zip code area. For the purposes of this section, there is a
rebuttable presumption that a seller or CSP has exercised due
diligence if the seller or CSP has attempted to determine the tax
rate and jurisdiction by utilizing software approved by the governing
board that makes this assignment from the address and zip code
information applicable to the purchase;
5. Have the option, upon meeting the requirements of paragraph 4
of this section, to certify vendor provided address-based databases
for assigning tax rates and jurisdictions. The databases must be in
the same approved format as the database records pursuant to
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paragraph 4 of this section and must meet the requirements developed
pursuant to the federal Mobile Telecommunications Sourcing Act, 4
U.S.C.A., Sec. 119(a). If the Tax Commission certifies a vendor
address-based database, a seller or CSP may use that database in
place of the database provided for in paragraph 3 or 4 of this
section;
6. Review software submitted for certification as a certified
automated system (CAS). The review shall include a review to
determine that the program adequately classifies that state’s
product-based exemptions. The Tax Commission shall certify its
acceptance of the classifications made by the system;
7. Relieve vendors and certified service providers from
liability for having charged and collected the incorrect amount of
sales or use tax resulting from the seller of the certified service
provider relying on erroneous data provided by the Tax Commission on
tax rates, boundaries, or taxing jurisdiction assignments. Provided,
the vendor or certified service provider shall not be relieved from
liability for errors resulting from the reliance on the information
provided pursuant to paragraph 3 of this section if the Tax
Commission has provided or certified an address-based system pursuant
to paragraph 4 or 5 of this section;
8. Be authorized to provide relief from liability to vendors and
certified service providers who are participating with the Tax
Commission in the use of a sales and use tax collection system that
incorporates one or more databases provided or certified by the Tax
Commission under this section if the Tax Commission has reviewed and
approved such sales and use tax collection system; and
9. Relieve CSPs and Model 2 sellers from liability for not
collecting sales or use taxes resulting from the CSP or Model 2
seller relying on the certification provided by the Tax Commission
pursuant to paragraph 6 of this section. If the Tax Commission
determines that an item or transaction is incorrectly classified as
to its taxability, it shall notify the CSP or Model 2 seller of the
incorrect classification. The CSP or Model 2 seller shall have ten
(10) days to revise the classification after receipt of notice from
the Tax Commission of the determination.
Added by Laws 2003, c. 413, § 25, eff. Nov. 1, 2003. Amended by Laws
2004, c. 535, § 5, eff. Nov. 1, 2004; Laws 2007, c. 155, § 8, eff.
Nov. 1, 2007.
§68-1354.33. Streamlined Sales and Use Tax Agreement system -
Confidentiality rights and privacy interests.
A. The purpose of this section is to set forth the intent of the
Legislature to protect the confidentiality rights of all participants
in the Streamlined Sales and Use Tax Agreement system and of the
privacy interests of consumers who deal with Model 1 sellers.
B. As used in this section:
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1. The term "confidential taxpayer information" means all
information that is protected pursuant to Section 205 of Title 68 of
the Oklahoma Statutes;
2. The term "personally identifiable information" means
information that identifies a person; and
3. The term "anonymous data" means information that does not
identify a person.
C. The fundamental precept in Model 1 is to preserve the privacy
of consumers by protecting their anonymity. With very limited
exceptions, a certified service provider shall perform its tax
calculation, remittance, and reporting functions without retaining
the personally identifiable information of consumers.
D. The Tax Commission shall provide public notification to
consumers, including their exempt purchasers, of the state’s
practices relating to the collection, use and retention of personally
identifiable information.
E. When any personally identifiable information that has been
collected and retained is no longer required for the purposes of
verifying the validity of an exemption, such information shall no
longer be retained by the Tax Commission.
F. When personally identifiable information regarding an
individual is retained, the Tax Commission shall provide reasonable
access by such individual to his or her own information in the
state's possession and a right to correct any inaccurately recorded
information.
G. If anyone other than the state, or a person authorized by
this state’s law or the Agreement, seeks to discover personally
identifiable information, a reasonable and timely effort to notify
the individual of such request shall be made.
H. This privacy policy is subject to enforcement in the same
manner as set out in Section 205 of Title 68 of the Oklahoma
Statutes.
I. All laws and other rules regarding the collection, use, and
maintenance of confidential taxpayer information remain fully
applicable and binding.
Added by Laws 2003, c. 413, § 26, eff. Nov. 1, 2003.
§68-1354.34. Taxability matrix - Relief from liability.
A. The Tax Commission shall complete a taxability matrix as
required under the Streamlined Sales and Use Tax Agreement to
verify application of terms defined within the Library of
Definitions in the Agreement.
B. Sellers and certified service providers shall be relieved
from liability for having charged and collected the incorrect
amount of sales or use tax resulting from the seller or certified
service provider relying on erroneous data provided in the
taxability matrix.
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Added by Laws 2003, c. 413, § 27, eff. Nov. 1, 2003.
§68-1354.35. Tax on bundled transactions.
The total gross receipts or sales price of a “bundled
transaction”, as the term is defined in Section 1352 of Title 68 of
the Oklahoma Statutes, shall be subject to the tax levied by Section
1350 et seq. of Title 68 of the Oklahoma Statutes, without any
deduction for the value of the nontaxable products or service.
Added by Laws 2007, c. 155, § 10, eff. Nov. 1, 2007.
§68-1354.36. One-subject requirement for sales tax levies submitted
to county voters.
After January 1, 2016, every sales tax levy submitted to county
voters for approval shall embrace but one subject, which shall be
clearly expressed on the ballot. For purposes of this section, "one
subject" shall mean a ballot proposition with only one sales tax levy
for a specified purpose but may include multiple projects for that
purpose. Nothing in this section shall be interpreted as prohibiting
a one-subject proposition from residing upon the same paper voting
ballot as other one-subject propositions.
Added by Laws 2015, c. 254, § 1, eff. Nov. 1, 2015. Amended by Laws
2016, c. 179, § 1, eff. Nov. 1, 2016.
§68-1355. Exemptions - Subject to other tax.
There are hereby specifically exempted from the tax levied
pursuant to the provisions of Section 1350 et seq. of this title:
1. Sale of gasoline, motor fuel, methanol, "M-85" which is a
mixture of methanol and gasoline containing at least eighty-five
percent (85%) methanol, compressed natural gas, liquefied natural
gas, or liquefied petroleum gas on which the Motor Fuel Tax, Gasoline
Excise Tax, Special Fuels Tax or the fee in lieu of Special Fuels Tax
levied in Section 500.1 et seq., Section 601 et seq. or Section 701
et seq. of this title has been, or will be paid;
2. For the sale of motor vehicles or any optional equipment or
accessories attached to motor vehicles on which the Oklahoma Motor
Vehicle Excise Tax levied in Section 2101 et seq. of this title has
been, or will be paid, all but a portion of the levy provided under
Section 1354 of this title, equal to one and twenty-five-hundredths
percent (1.25%) of the gross receipts of such sales. Provided, the
sale of motor vehicles shall not be subject to any sales and use
taxes levied by cities, counties or other jurisdictions of the state;
3. Sale of crude petroleum or natural or casinghead gas and
other products subject to gross production tax pursuant to the
provisions of Section 1001 et seq. and Section 1101 et seq. of this
title. This exemption shall not apply when such products are sold to
a consumer or user for consumption or use, except when used for
injection into the earth for the purpose of promoting or facilitating
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the production of oil or gas. This paragraph shall not operate to
increase or repeal the gross production tax levied by the laws of
this state;
4. Sale of aircraft on which the tax levied pursuant to the
provisions of Sections 6001 through 6007 of this title has been, or
will be paid or which are specifically exempt from such tax pursuant
to the provisions of Section 6003 of this title;
5. Sales from coin-operated devices on which the fee imposed by
Sections 1501 through 1512 of this title has been paid;
6. Leases of twelve (12) months or more of motor vehicles in
which the owners of the vehicles have paid the vehicle excise tax
levied by Section 2103 of this title;
7. Sales of charity game equipment on which a tax is levied
pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
Title 3A of the Oklahoma Statutes, or which is sold to an
organization that is:
a. a veterans' organization exempt from taxation pursuant
to the provisions of paragraph (4), (7), (8), (10) or
(19) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq.,
b. a group home for mentally disabled individuals exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq., or
c. a charitable healthcare organization which is exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq.;
8. Sales of cigarettes or tobacco products to:
a. a federally recognized Indian tribe or nation which has
entered into a compact with the State of Oklahoma
pursuant to the provisions of subsection C of Section
346 of this title or to a licensee of such a tribe or
nation, upon which the payment in lieu of taxes
required by the compact has been paid, or
b. a federally recognized Indian tribe or nation or to a
licensee of such a tribe or nation upon which the tax
levied pursuant to the provisions of Section 349.1 or
Section 426 of this title has been paid;
9. Leases of aircraft upon which the owners have paid the
aircraft excise tax levied by Section 6001 et seq. of this title or
which are specifically exempt from such tax pursuant to the
provisions of Section 6003 of this title;
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10. The sale of low-speed or medium-speed electrical vehicles on
which the Oklahoma Motor Vehicle Excise Tax levied in Section 2101 et
seq. of this title has been or will be paid; and
11. Effective January 1, 2005, sales of cigarettes on which the
tax levied in Section 301 et seq. of this title or tobacco products
on which the tax levied in Section 401 et seq. of this title has been
paid.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1984, c. 138, § 1, operative July 1, 1984; Laws 1984, c. 153,
§ 7, emerg. eff. April 21, 1984; Laws 1988, c. 47, § 15, operative
July 1, 1988; Laws 1989, c. 167, § 4, eff. July 1, 1989; Laws 1990,
c. 113, § 1, operative July 1, 1990; Laws 1991, 1st. Ex. Sess., c. 2,
§ 3, emerg. eff. Jan. 18, 1991; Laws 1991, c. 337, § 1, emerg. eff.
June 15, 1991; Laws 1992, c. 328, § 32, eff. Dec. 1, 1992; Laws 1993,
c. 10, § 10, emerg. eff. March 21, 1993; Laws 1993, c. 224, § 8, eff.
Sept. 1, 1993; Laws 1994, c. 54, § 1, eff. July 1, 1994; Laws 1995,
c. 337, § 3, emerg. eff. June 9, 1995; Laws 2000, c. 239, § 1, eff.
July 1, 2000; Laws 2001, c. 243, § 5, eff. Nov. 1, 2001; Laws 2004,
c. 322, § 12, eff. Dec. 1, 2004 (State Question No. 713, Legislative
Referendum No. 336, adopted at election held Nov. 2, 2004); Laws
2005, c. 1, § 106, emerg. eff. March 15, 2005; Laws 2007, c. 203, §
2, eff. July 1, 2007; Laws 2008, c. 302, § 10, emerg. eff. June 2,
2008; Laws 2015, c. 50, § 2, eff. Nov. 1, 2015; Laws 2017, c. 356, §
1, eff. July 1, 2017.
NOTE: Laws 1991, c. 235, § 19 repealed by Laws 1992, c. 328, § 33,
eff. Dec. 1, 1992 (State Question No. 650, Legislative Referendum No.
294, adopted at election held Nov. 3, 1992) and Laws 1992, c. 339, §
22, eff. Jan. 1, 1993. Laws 1992, c. 339, § 21 repealed by Laws
1993, c. 10, § 16, emerg. eff. March 21, 1993. Laws 2004, c. 330, §
3 repealed by Laws 2005, c. 1, § 107, emerg. eff. March 15, 2005.
§68-1355.1. Leased passenger vehicles - Report of lease.
Any person, firm, corporation or other entity which leases a
passenger motor vehicle for use in the State of Oklahoma shall file a
report with the Oklahoma Tax Commission on forms prescribed by the
Commission on the number of such motor vehicles leased to any other
person, firm, corporation or other entity. Such report shall be
filed at the same time and in the same manner as sales tax reports.
Added by Laws 1990, c. 113, § 2, operative July 1, 1990.
§68-1356. Exemptions - Governmental and nonprofit entities.
Exemptions - Governmental and nonprofit entities.
There are hereby specifically exempted from the tax levied by
Section 1350 et seq. of this title:
1. Sale of tangible personal property or services to the United
States government or to the State of Oklahoma, any political
subdivision of this state or any agency of a political subdivision of
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this state; provided, all sales to contractors in connection with the
performance of any contract with the United States government, State
of Oklahoma or any of its political subdivisions shall not be
exempted from the tax levied by Section 1350 et seq. of this title,
except as hereinafter provided;
2. Sales of property to agents appointed by or under contract
with agencies or instrumentalities of the United States government if
ownership and possession of such property transfers immediately to
the United States government;
3. Sales of property to agents appointed by or under contract
with a political subdivision of this state if the sale of such
property is associated with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and possession of such property transfers
immediately to the political subdivision or the state;
4. Sales made directly by county, district or state fair
authorities of this state, upon the premises of the fair authority,
for the sole benefit of the fair authority or sales of admission
tickets to such fairs or fair events at any location in the state
authorized by county, district or state fair authorities; provided,
the exemption provided by this paragraph for admission tickets to
fair events shall apply only to any portion of the admission price
that is retained by or distributed to the fair authority. As used in
this paragraph, "fair event" shall be limited to an event held on the
premises of the fair authority in conjunction with and during the
time period of a county, district or state fair;
5. Sale of food in cafeterias or lunch rooms of elementary
schools, high schools, colleges or universities which are operated
primarily for teachers and pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, charitable or
educational societies or organizations by regular members thereof,
provided, such societies or organizations operate under what is
commonly termed the lodge plan or system, and provided such societies
or organizations do not operate for a profit which inures to the
benefit of any individual member or members thereof to the exclusion
of other members and dues paid monthly or annually to privately owned
scientific and educational libraries by members sharing the use of
services rendered by such libraries with students interested in the
study of geology, petroleum engineering or related subjects;
7. Sale of tangible personal property or services to or by
churches, except sales made in the course of business for profit or
savings, competing with other persons engaged in the same or a
similar business or sale of tangible personal property or services by
an organization exempt from federal income tax pursuant to Section
501(c)(3) of the Internal Revenue Code of 1986, as amended, made on
behalf of or at the request of a church or churches if the sale of
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such property is conducted not more than once each calendar year for
a period not to exceed three (3) days by the organization and
proceeds from the sale of such property are used by the church or
churches or by the organization for charitable purposes;
8. The amount of proceeds received from the sale of admission
tickets which is separately stated on the ticket of admission for the
repayment of money borrowed by any accredited state-supported college
or university or any public trust of which a county in this state is
the beneficiary, for the purpose of constructing or enlarging any
facility to be used for the staging of an athletic event, a
theatrical production, or any other form of entertainment,
edification or cultural cultivation to which entry is gained with a
paid admission ticket. Such facilities include, but are not limited
to, athletic fields, athletic stadiums, field houses, amphitheaters
and theaters. To be eligible for this sales tax exemption, the
amount separately stated on the admission ticket shall be a surcharge
which is imposed, collected and used for the sole purpose of
servicing or aiding in the servicing of debt incurred by the college
or university to effect the capital improvements hereinbefore
described;
9. Sales of tangible personal property or services to the
council organizations or similar state supervisory organizations of
the Boy Scouts of America, Girl Scouts of U.S.A. and Camp Fire USA;
10. Sale of tangible personal property or services to any
county, municipality, rural water district, public school district,
the institutions of The Oklahoma State System of Higher Education,
the Grand River Dam Authority, the Northeast Oklahoma Public
Facilities Authority, the Oklahoma Municipal Power Authority, City of
Tulsa-Rogers County Port Authority, Muskogee City-County Port
Authority, the Oklahoma Department of Veterans Affairs, the Broken
Bow Economic Development Authority, Ardmore Development Authority,
Durant Industrial Authority, Oklahoma Ordnance Works Authority,
Central Oklahoma Master Conservancy District, Arbuckle Master
Conservancy District, Fort Cobb Master Conservancy District, Foss
Reservoir Master Conservancy District, Mountain Park Master
Conservancy District, Waurika Lake Master Conservancy District,
Office of Management and Enterprise Services only when carrying out a
public construction contract on behalf of the Oklahoma Department of
Veterans Affairs or to any person with whom any of the above-named
subdivisions or agencies of this state has duly entered into a public
contract pursuant to law, necessary for carrying out such public
contract or to any subcontractor to such a public contract. Any
person making purchases on behalf of such subdivision or agency of
this state shall certify, in writing, on the copy of the invoice or
sales ticket to be retained by the vendor that the purchases are made
for and on behalf of such subdivision or agency of this state and set
out the name of such public subdivision or agency. Any person who
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wrongfully or erroneously certifies that purchases are for any of the
above-named subdivisions or agencies of this state or who otherwise
violates this section shall be guilty of a misdemeanor and upon
conviction thereof shall be fined an amount equal to double the
amount of sales tax involved or incarcerated for not more than sixty
(60) days or both;
11. Sales of tangible personal property or services to private
institutions of higher education and private elementary and secondary
institutions of education accredited by the State Department of
Education or registered by the State Board of Education for purposes
of participating in federal programs or accredited as defined by the
Oklahoma State Regents for Higher Education which are exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), including materials, supplies, and
equipment used in the construction and improvement of buildings and
other structures owned by the institutions and operated for
educational purposes.
Any person, firm, agency or entity making purchases on behalf of
any institution, agency or subdivision in this state, shall certify
in writing, on the copy of the invoice or sales ticket the nature of
the purchases, and violation of this paragraph shall be a misdemeanor
as set forth in paragraph 10 of this section;
12. Tuition and educational fees paid to private institutions of
higher education and private elementary and secondary institutions of
education accredited by the State Department of Education or
registered by the State Board of Education for purposes of
participating in federal programs or accredited as defined by the
Oklahoma State Regents for Higher Education which are exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal property made by:
(1) a public school,
(2) a private school offering instruction for grade
levels kindergarten through twelfth grade,
(3) a public school district,
(4) a public or private school board,
(5) a public or private school student group or
organization,
(6) a parent-teacher association or organization other
than as specified in subparagraph b of this
paragraph, or
(7) public or private school personnel for purposes of
raising funds for the benefit of a public or
private school, public school district, public or
private school board or public or private school
student group or organization, or
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b. Sales of tangible personal property made by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school foundations
which solicit money or property in the name of any
public or private school or public school district.
The exemption provided by this paragraph for sales made by a
public or private school shall be limited to those public or private
schools accredited by the State Department of Education or registered
by the State Board of Education for purposes of participating in
federal programs. Sale of tangible personal property in this
paragraph shall include sale of admission tickets and concessions at
athletic events;
14. Sales of tangible personal property by:
a. local 4-H clubs,
b. county, regional or state 4-H councils,
c. county, regional or state 4-H committees,
d. 4-H leader associations,
e. county, regional or state 4-H foundations, and
f. authorized 4-H camps and training centers.
The exemption provided by this paragraph shall be limited to
sales for the purpose of raising funds for the benefit of such
organizations. Sale of tangible personal property exempted by this
paragraph shall include sale of admission tickets;
15. The first Seventy-five Thousand Dollars ($75,000.00) each
year from sale of tickets and concessions at athletic events by each
organization exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
16. Sales of tangible personal property or services to any
person with whom the Oklahoma Tourism and Recreation Department has
entered into a public contract and which is necessary for carrying
out such contract to assist the Department in the development and
production of advertising, promotion, publicity and public relations
programs;
17. Sales of tangible personal property or services to fire
departments organized pursuant to Section 592 of Title 18 of the
Oklahoma Statutes which items are to be used for the purposes of the
fire department. Any person making purchases on behalf of any such
fire department shall certify, in writing, on the copy of the invoice
or sales ticket to be retained by the vendor that the purchases are
made for and on behalf of such fire department and set out the name
of such fire department. Any person who wrongfully or erroneously
certifies that the purchases are for any such fire department or who
otherwise violates the provisions of this section shall be deemed
guilty of a misdemeanor and upon conviction thereof, shall be fined
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an amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) days, or both;
18. Complimentary or free tickets for admission to places of
amusement, sports, entertainment, exhibition, display or other
recreational events or activities which are issued through a box
office or other entity which is operated by a state institution of
higher education with institutional employees or by a municipality
with municipal employees;
19. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property by fire departments
organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the benefit of the fire
department. Fire departments selling tangible personal property for
the purposes of raising funds shall be limited to no more than six
(6) days each year to raise such funds in order to receive the
exemption granted by this paragraph;
20. Sales of tangible personal property or services to any Boys
& Girls Clubs of America affiliate in this state which is not
affiliated with the Salvation Army and which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3);
21. Sales of tangible personal property or services to any
organization, which takes court-adjudicated juveniles for purposes of
rehabilitation, and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3), provided that at least fifty percent (50%) of the juveniles
served by such organization are court adjudicated and the
organization receives state funds in an amount less than ten percent
(10%) of the annual budget of the organization;
22. Sales of tangible personal property or services to:
a. any health center as defined in Section 254b of Title
42 of the United States Code,
b. 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
Statutes,
c. any community-based health center which meets all of
the following criteria:
(1) provides primary care services at no cost to the
recipient, and
(2) 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), and
d. any community mental health center as defined in
Section 3-302 of Title 43A of the Oklahoma Statutes;
23. Dues or fees, including free or complimentary dues or fees
which have a value equivalent to the charge that could have otherwise
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been made, to YMCAs, YWCAs or municipally-owned recreation centers
for the use of facilities and programs;
24. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property or services to or by a
cultural organization established to sponsor and promote educational,
charitable and cultural events for disadvantaged children, and which
organization is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section 501(c)(3);
25. Sales of tangible personal property or services to museums
or other entities which have been accredited by the American
Association of Museums. Any person making purchases on behalf of any
such museum or other entity shall certify, in writing, on the copy of
the invoice or sales ticket to be retained by the vendor that the
purchases are made for and on behalf of such museum or other entity
and set out the name of such museum or other entity. Any person who
wrongfully or erroneously certifies that the purchases are for any
such museum or other entity or who otherwise violates the provisions
of this paragraph shall be deemed guilty of a misdemeanor and, upon
conviction thereof, shall be fined an amount equal to double the
amount of sales tax involved or incarcerated for not more than sixty
(60) days, or by both such fine and incarceration;
26. Sales of tickets for admission by any museum accredited by
the American Association of Museums. In order to be eligible for the
exemption provided by this paragraph, an amount equivalent to the
amount of the tax which would otherwise be required to be collected
pursuant to the provisions of Section 1350 et seq. of this title
shall be separately stated on the admission ticket and shall be
collected and used for the sole purpose of servicing or aiding in the
servicing of debt incurred by the museum to effect the construction,
enlarging or renovation of any facility to be used for entertainment,
edification or cultural cultivation to which entry is gained with a
paid admission ticket;
27. Sales of tangible personal property or services occurring on
or after June 1, 1995, to children's homes which are supported or
sponsored by one or more churches, members of which serve as trustees
of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veterans, Department of
Oklahoma, Inc., and subordinate chapters thereof;
29. Sales of tangible personal property or services to youth
camps which are supported or sponsored by one or more churches,
members of which serve as trustees of the organization;
30. Transfer of tangible personal property made pursuant to
Section 3226 of Title 63 of the Oklahoma Statutes by the University
Hospitals Trust;
31. Sales of tangible personal property or services to a
municipality, county or school district pursuant to a lease or lease-
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purchase agreement executed between the vendor and a municipality,
county or school district. A copy of the lease or lease-purchase
agreement shall be retained by the vendor;
32. Sales of tangible personal property or services to any
spaceport user, as defined in the Oklahoma Space Industry Development
Act;
33. The sale, use, storage, consumption, or distribution in this
state, whether by the importer, exporter, or another person, of any
satellite or any associated launch vehicle, including components of,
and parts and motors for, any such satellite or launch vehicle,
imported or caused to be imported into this state for the purpose of
export by means of launching into space. This exemption provided by
this paragraph shall not be affected by:
a. the destruction in whole or in part of the satellite or
launch vehicle,
b. the failure of a launch to occur or be successful, or
c. the absence of any transfer or title to, or possession
of, the satellite or launch vehicle after launch;
34. The sale, lease, use, storage, consumption, or distribution
in this state of any space facility, space propulsion system or space
vehicle, satellite, or station of any kind possessing space flight
capacity, including components thereof;
35. The sale, lease, use, storage, consumption, or distribution
in this state of tangible personal property, placed on or used aboard
any space facility, space propulsion system or space vehicle,
satellite, or station possessing space flight capacity, which is
launched into space, irrespective of whether such tangible property
is returned to this state for subsequent use, storage, or consumption
in any manner;
36. The sale, lease, use, storage, consumption, or distribution
in this state of tangible personal property meeting the definition of
"section 38 property" as defined in Sections 48(a)(1)(A) and (B)(i)
of the Internal Revenue Code of 1986, that is an integral part of and
used primarily in support of space flight; however, section 38
property used in support of space flight shall not include general
office equipment, any boat, mobile home, motor vehicle, or other
vehicle of a class or type required to be registered, licensed,
titled, or documented in this state or by the United States
government, or any other property not specifically suited to
supporting space activity. The term "in support of space flight",
for purposes of this paragraph, means the altering, monitoring,
controlling, regulating, adjusting, servicing, or repairing of any
space facility, space propulsion systems or space vehicle, satellite,
or station possessing space flight capacity, including the components
thereof;
37. The purchase or lease of machinery and equipment for use at
a fixed location in this state, which is used exclusively in the
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manufacturing, processing, compounding, or producing of any space
facility, space propulsion system or space vehicle, satellite, or
station of any kind possessing space flight capacity. Provided, the
exemption provided for in this paragraph shall not be allowed unless
the purchaser or lessee signs an affidavit stating that the item or
items to be exempted are for the exclusive use designated herein.
Any person furnishing a false affidavit to the vendor for the purpose
of evading payment of any tax imposed by Section 1354 of this title
shall be subject to the penalties provided by law. As used in this
paragraph, "machinery and equipment" means "section 38 property" as
defined in Sections 48(a)(1)(A) and (B)(i) of the Internal Revenue
Code of 1986, which is used as an integral part of the manufacturing,
processing, compounding, or producing of items of tangible personal
property. Such term includes parts and accessories only to the
extent that the exemption thereof is consistent with the provisions
of this paragraph;
38. The amount of a surcharge or any other amount which is
separately stated on an admission ticket which is imposed, collected
and used for the sole purpose of constructing, remodeling or
enlarging facilities of a public trust having a municipality or
county as its sole beneficiary;
39. Sales of tangible personal property or services which are
directly used in or for the benefit of a state park in this state,
which are made to an organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and which is organized primarily for the purpose of
supporting one or more state parks located in this state;
40. The sale, lease or use of parking privileges by an
institution of The Oklahoma State System of Higher Education;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Oklahoma State System of Higher Education,
private institutions of higher education accredited by the Oklahoma
State Regents for Higher Education or any public school or school
district when such projects are financed by or through the use of
nonprofit entities which are exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3);
42. Sales of tangible personal property or services by an
organization which is exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), in the
course of conducting a national championship sports event, but only
if all or a portion of the payment in exchange therefor would qualify
as the receipt of a qualified sponsorship payment described in
Internal Revenue Code, 26 U.S.C., Section 513(i). Sales exempted
pursuant to this paragraph shall be exempt from all Oklahoma sales,
use, excise and gross receipts taxes;
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43. Sales of tangible personal property or services to or by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3),
b. is affiliated with a comprehensive university within
The Oklahoma State System of Higher Education, and
c. has been organized primarily for the purpose of
providing education and teacher training and conducting
events relating to robotics;
44. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property to or by youth athletic
teams which are part of an athletic organization exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(4), for the purposes of raising funds for the benefit
of the team;
45. Sales of tickets for admission to a collegiate athletic
event that is held in a facility owned or operated by a municipality
or a public trust of which the municipality is the sole beneficiary
and that actually determines or is part of a tournament or tournament
process for determining a conference tournament championship, a
conference championship, or a national championship;
46. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and is
operating the Oklahoma City National Memorial and Museum, an
affiliate of the National Park System;
47. Sales of tangible personal property or services to
organizations which are exempt from federal taxation pursuant to the
provisions of Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), the memberships of which are limited to
honorably discharged veterans, and which furnish financial support to
area veterans' organizations to be used for the purpose of
constructing a memorial or museum;
48. Sales of tangible personal property or services on or after
January 1, 2003, to an organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) that is expending monies received from a private
foundation grant in conjunction with expenditures of local sales tax
revenue to construct a local public library;
49. Sales of tangible personal property or services to a state
that borders this state or any political subdivision of that state,
but only to the extent that the other state or political subdivision
exempts or does not impose a tax on similar sales of items to this
state or a political subdivision of this state;
50. Effective July 1, 2005, sales of tangible personal property
or services to the Career Technology Student Organizations under the
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direction and supervision of the Oklahoma Department of Career and
Technology Education;
51. 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 July 1, 2008, in counties with a
population of less than one hundred thousand (100,000) persons,
according to the most recent Federal Decennial Census. As used in
this paragraph, "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). For purposes of this paragraph, 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. The exemption authorized by this paragraph shall
be administered in the form of a refund from the sales tax revenues
apportioned pursuant to Section 1353 of this title and the vendor
shall be required to collect the sales tax otherwise applicable to
the transaction. The purchaser may apply for a refund of the sales
tax paid in the manner prescribed by this paragraph. Within thirty
(30) days after the end of each fiscal year, any purchaser that is
entitled to make application for a refund based upon the exempt
treatment authorized by this paragraph may file an application for
refund of the sales taxes paid during such preceding fiscal year.
The Tax Commission shall prescribe a form for purposes of making the
application for refund. 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. The pro rata refund amount shall be the only
method to recover sales taxes paid during the preceding fiscal year
and no balance of any sales taxes paid on a pro rata basis shall be
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the subject of any subsequent refund claim pursuant to this
paragraph;
52. Effective July 1, 2006, sales of tangible personal property
or services to any organization which assists, trains, educates, and
provides housing for physically and mentally handicapped persons and
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that receives
at least eighty-five percent (85%) of its annual budget from state or
federal funds. In order to receive the benefit of the exemption
authorized by this paragraph, the taxpayer shall be required to make
payment of the applicable sales tax at the time of sale to the vendor
in the manner otherwise required by law. Notwithstanding any other
provision of the Oklahoma Uniform Tax Procedure Code to the contrary,
the taxpayer shall be authorized to file a claim for refund of sales
taxes paid that qualify for the exemption authorized by this
paragraph for a period of one (1) year after the date of the sale
transaction. The taxpayer shall be required to provide documentation
as may be prescribed by the Oklahoma Tax Commission in support of the
refund claim. The total amount of sales tax qualifying for exempt
treatment pursuant to this paragraph shall not exceed One Hundred
Seventy-five Thousand Dollars ($175,000.00) each fiscal year. Claims
for refund shall be processed in the order in which such claims are
received by the Oklahoma Tax Commission. If a claim otherwise timely
filed exceeds the total amount of refunds payable for a fiscal year,
such claim shall be barred;
53. The first Two Thousand Dollars ($2,000.00) each year of
sales of tangible personal property or services to, by, or for the
benefit of a qualified neighborhood watch organization that is
endorsed or supported by or working directly with a law enforcement
agency with jurisdiction in the area in which the neighborhood watch
organization is located. As used in this paragraph, "qualified
neighborhood watch organization" means an organization that is a not-
for-profit corporation under the laws of the State of Oklahoma that
was created to help prevent criminal activity in an area through
community involvement and interaction with local law enforcement and
which is one of the first two thousand organizations which makes
application to the Oklahoma Tax Commission for the exemption after
March 29, 2006;
54. Sales of tangible personal property to a nonprofit
organization, exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized
primarily for the purpose of providing services to homeless persons
during the day and located in a metropolitan area with a population
in excess of five hundred thousand (500,000) persons according to the
latest Federal Decennial Census. The exemption authorized by this
paragraph shall be applicable to sales of tangible personal property
to a qualified entity occurring on or after January 1, 2005;
9)!&#!%!%%"'%)6! !2!(# 7!80;
55. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) for events
the principal purpose of which is to provide funding for the
preservation of wetlands and habitat for wild ducks;
56. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) for events
the principal purpose of which is to provide funding for the
preservation and conservation of wild turkeys;
57. Sales of tangible personal property or services to an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3), and
b. is part of a network of community-based, autonomous
member organizations that meets the following criteria:
(1) serves people with workplace disadvantages and
disabilities by providing job training and
employment services, as well as job placement
opportunities and post-employment support,
(2) has locations in the United States and at least
twenty other countries,
(3) collects donated clothing and household goods to
sell in retail stores and provides contract labor
services to business and government, and
(4) provides documentation to the Oklahoma Tax
Commission that over seventy-five percent (75%) of
its revenues are channeled into employment, job
training and placement programs and other critical
community services;
58. Sales of tickets made on or after September 21, 2005, and
complimentary or free tickets for admission issued on or after
September 21, 2005, which have a value equivalent to the charge that
would have otherwise been made, for admission to a professional
athletic event in which a team in the National Basketball Association
is a participant, which is held in a facility owned or operated by a
municipality, a county or a public trust of which a municipality or a
county is the sole beneficiary, and sales of tickets made on or after
July 1, 2007, and complimentary or free tickets for admission issued
on or after July 1, 2007, which have a value equivalent to the charge
that would have otherwise been made, for admission to a professional
athletic event in which a team in the National Hockey League is a
participant, which is held in a facility owned or operated by a
municipality, a county or a public trust of which a municipality or a
county is the sole beneficiary;
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59. Sales of tickets for admission and complimentary or free
tickets for admission which have a value equivalent to the charge
that would have otherwise been made to a professional sporting event
involving ice hockey, baseball, basketball, football or arena
football, or soccer. As used in this paragraph, "professional
sporting event" means an organized athletic competition between teams
that are members of an organized league or association with
centralized management, other than a national league or national
association, that imposes requirements for participation in the
league upon the teams, the individual athletes or both, and which
uses a salary structure to compensate the athletes;
60. Sales of tickets for admission to an annual event sponsored
by an educational and charitable organization of women which is
exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
promoting volunteerism, developing the potential of women and
improving the community through the effective action and leadership
of trained volunteers;
61. Sales of tangible personal property or services to an
organization, which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3), and which is itself a member 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), if the membership organization is
primarily engaged in advancing the purposes of its member
organizations through fundraising, public awareness or other efforts
for the benefit of its member organizations, and if the member
organization is primarily engaged either in providing educational
services and programs concerning health-related diseases and
conditions to individuals suffering from such health-related diseases
and conditions or their caregivers and family members or support to
such individuals, or in health-related research as to such diseases
and conditions, or both. In order to qualify for the exemption
authorized by this paragraph, the member nonprofit organization shall
be required to provide proof to the Oklahoma Tax Commission of its
membership status in the membership organization;
62. Sales of tangible personal property or services to or by an
organization which is part of a national volunteer women's service
organization dedicated to promoting patriotism, preserving American
history and securing better education for children and which has at
least 168,000 members in 3,000 chapters across the United States;
63. Sales of tangible personal property or services to or by a
YWCA or YMCA organization which is part of a national nonprofit
community service organization working to meet the health and social
service needs of its members across the United States;
64. Sales of tangible personal property or services to or by a
veteran's organization which is exempt from taxation pursuant to the
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provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)
(19) and which is known as the Veterans of Foreign Wars of the United
States, Oklahoma Chapters;
65. Sales of boxes of food by a church or by an organization,
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3). To qualify
under the provisions of this paragraph, the organization must be
organized for the primary purpose of feeding needy individuals or to
encourage volunteer service by requiring such service in order to
purchase food. These boxes shall only contain edible staple food
items;
66. Sales of tangible personal property or services to any
person with whom a church has duly entered into a construction
contract, necessary for carrying out such contract or to any
subcontractor to such a construction contract;
67. Sales of tangible personal property or services used
exclusively for charitable or educational purposes, to or by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3),
b. has filed a Not-for-Profit Certificate of Incorporation
in this state, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities and strengths of developmentally
disabled individuals, and
(3) promoting unity among developmentally disabled
individuals in their community and geographic
area;
68. Sales of tangible personal property or services to any
organization which is a shelter for abused, neglected, or abandoned
children and which is exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3); provided,
until July 1, 2008, such exemption shall apply only to eligible
shelters for children from birth to age twelve (12) and after July 1,
2008, such exemption shall apply to eligible shelters for children
from birth to age eighteen (18);
69. Sales of tangible personal property or services to a child
care center which is licensed pursuant to the Oklahoma Child Care
Facilities Licensing Act and which:
a. possesses a 3-star rating from the Department of Human
Services Reaching for the Stars Program or a national
accreditation, and
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b. allows on site universal pre-kindergarten education to
be provided to four-year-old children through a
contractual agreement with any public school or school
district.
For the purposes of this paragraph, sales made to any person,
firm, agency or entity that has entered previously into a contractual
relationship with a child care center for construction and
improvement of buildings and other structures owned by the child care
center and operated for educational purposes shall be considered
sales made to a child care center. Any such person, firm, agency or
entity making purchases on behalf of a child care center shall
certify, in writing, on the copy of the invoice or sales ticket the
nature of the purchase. Any such person, or person acting on behalf
of a firm, agency or entity making purchases on behalf of a child
care center in violation of this paragraph shall be guilty of a
misdemeanor and upon conviction thereof shall be fined an amount
equal to double the amount of sales tax involved or incarcerated for
not more than sixty (60) days or both;
70. a. Sales of tangible personal property to a service
organization of mothers who have children who are
serving or who have served in the military, which
service organization is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(19) and which is known as the
Blue Star Mothers of America, Inc. The exemption
provided by this paragraph shall only apply to the
purchase of tangible personal property actually sent to
United States military personnel overseas who are
serving in a combat zone and not to any other tangible
personal property purchased by the organization.
Provided, this exemption shall not apply to any sales
tax levied by a city, town, county, or any other
jurisdiction in this state.
b. The exemption authorized by this paragraph shall be
administered in the form of a refund from the sales tax
revenues apportioned pursuant to Section 1353 of this
title, and the vendor shall be required to collect the
sales tax otherwise applicable to the transaction. The
purchaser may apply for a refund of the state sales tax
paid in the manner prescribed by this paragraph.
Within sixty (60) days after the end of each calendar
quarter, any purchaser that is entitled to make
application for a refund based upon the exempt
treatment authorized by this paragraph may file an
application for refund of the state sales taxes paid
during such preceding calendar quarter. The Tax
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Commission shall prescribe a form for purposes of
making the application for refund.
c. A purchaser who applies for a refund pursuant to this
paragraph shall certify that the items were actually
sent to military personnel overseas in a combat zone.
Any purchaser that applies for a refund for the
purchase of items that are not authorized for exemption
under this paragraph shall be subject to a penalty in
the amount of Five Hundred Dollars ($500.00);
71. Sales of food and snack items to or by an organization which
is exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), whose primary and
principal purpose is providing funding for scholarships in the
medical field;
72. Sales of tangible personal property or services for use
solely on construction projects for organizations which are exempt
from taxation pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing
end-of-life care and access to hospice services to low-income
individuals who live in a facility owned by the organization. The
exemption provided by this paragraph applies to sales to the
organization as well as to sales to any person with whom the
organization has duly entered into a construction contract, necessary
for carrying out such contract or to any subcontractor to such a
construction contract. Any person making purchases on behalf of such
organization shall certify, in writing, on the copy of the invoice or
sales ticket to be retained by the vendor that the purchases are made
for and on behalf of such organization and set out the name of such
organization. Any person who wrongfully or erroneously certifies
that purchases are for any of the above-named organizations or who
otherwise violates this section shall be guilty of a misdemeanor and
upon conviction thereof shall be fined an amount equal to double the
amount of sales tax involved or incarcerated for not more than sixty
(60) days or both;
73. Sales of tickets for admission to events held by
organizations exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) that are
organized for the purpose of supporting general hospitals licensed by
the State Department of Health;
74. Sales of tangible personal property or services:
a. to a foundation which is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) and which raises tax-
deductible contributions in support of a wide range of
firearms-related public interest activities of the
National Rifle Association of America and other
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organizations that defend and foster Second Amendment
rights, and
b. to or by a grassroots fundraising program for sales
related to events to raise funds for a foundation
meeting the qualifications of subparagraph a of this
paragraph;
75. Sales by an organization or entity which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) which are related to a fundraising event
sponsored by the organization or entity when the event does not
exceed any five (5) consecutive days and when the sales are not in
the organization's or the entity's regular course of business.
Provided, the exemption provided in this paragraph shall be limited
to tickets sold for admittance to the fundraising event and items
which were donated to the organization or entity for sale at the
event;
76. Effective November 1, 2017, sales of tangible personal
property or services to an organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and operates as a collaborative model which
connects community agencies in one location to serve individuals and
families affected by violence and where victims have access to
services and advocacy at no cost to the victim;
77. Effective July 1, 2018, sales of tangible personal property
or services to or by an association which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which is known as the National Guard
Association of Oklahoma;
78. Effective July 1, 2018, sales of tangible personal property
or services to or by an association which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(4) and which is known as the Marine Corps League of
Oklahoma;
79. Sales of tangible personal property or services to the
American Legion, whether the purchase is made by the entity chartered
by the United States Congress or is an entity organized under the
laws of this or another state pursuant to the authority of the
national American Legion organization; and
80. Sales of tangible personal property or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab Network in compliance
with the Fab Charter, and
c. able to provide documentation that its primary and
principal purpose is to provide community access to
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advanced 21st century manufacturing and digital
fabrication tools for science, technology, engineering,
art and math (STEAM) learning skills, developing
inventions, creating and sustaining businesses and
producing personalized products.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1985, c. 177, § 1, eff. Jan. 1, 1986; Laws 1987, c. 149, § 1,
emerg. eff. June 24, 1987; Laws 1987, c. 203, § 144, operative July
1, 1987; Laws 1988, c. 142, § 2, emerg. eff. April 25, 1988; Laws
1988, c. 192, § 2, operative July 1, 1988; Laws 1988, c. 312, § 4,
eff. July 1, 1989; Laws 1989, c. 4, § 1, emerg. eff. March 14, 1989;
Laws 1989, c. 249, § 26, eff. July 1, 1989; Laws 1989, c. 351, § 1,
emerg. eff. June 3, 1989; Laws 1991, c. 243, § 1, emerg. eff. May 28,
1991; Laws 1991, c. 335, § 24, emerg. eff. June 15, 1991; Laws 1992,
c. 110, § 1, emerg. eff. April 20, 1992; Laws 1993, c. 1, § 9, emerg.
eff. Feb. 8, 1993; Laws 1993, c. 246, § 1, emerg. eff. May 26, 1993;
Laws 1994, c. 26, § 1, eff. July 1, 1994; Laws 1994, c. 278, § 14,
eff. Sept. 1, 1994; Laws 1995, c. 183, § 1, eff. July 1, 1995; Laws
1995, c. 337, § 4, emerg. eff. June 9, 1995; Laws 1996, c. 3, § 13,
emerg. eff. March 6, 1996; Laws 1996, c. 156, § 1, eff. July 1, 1996;
Laws 1996, c. 289, § 1, eff. July 1, 1996; Laws 1997, c. 190, § 1,
eff. July 1, 1997; Laws 1997, c. 294, § 15, eff. July 1, 1997; Laws
1997, c. 390, § 4, eff. July 1, 1997; Laws 1998, c. 203, § 2, emerg.
eff. May 11, 1998; Laws 1998, c. 385, § 7, eff. July 1, 1998; Laws
1999, c. 149, § 4, eff. July 1, 1999; Laws 1999, c. 164, § 40, eff.
July 1, 1999; Laws 1999, c. 390, § 8, emerg. eff. June 8, 1999; Laws
2000, c. 214, § 1, eff. July 1, 2000; Laws 2000, c. 314, § 15, eff.
July 1, 2000; Laws 2001, c. 5, § 37, emerg. eff. March 21, 2001; Laws
2001, c. 358, § 14, emerg. eff. June 4, 2001; Laws 2002, c. 22, § 25,
emerg. eff. March 8, 2002; Laws 2002, c. 162, § 2, eff. July 1, 2002;
Laws 2002, c. 503, § 1, emerg. eff. June 7, 2002; Laws 2003, c. 3, §
60, emerg. eff. March 19, 2003; Laws 2003, c. 472, § 14; Laws 2004,
c. 5, § 66, emerg. eff. March 1, 2004; Laws 2004, c. 56, § 1, emerg.
eff. April 1, 2004; Laws 2004, c. 535, § 6, eff. Nov. 1, 2004; Laws
2005, c. 1, § 108, emerg. eff. March 15, 2005; Laws 2005, c. 296, §
1, eff. July 1, 2005; Laws 2006, c. 16, § 51, emerg. eff. March 29,
2006; Laws 2006, 2nd Ex. Sess., c. 44, § 2, eff. July 1, 2007; Laws
2007, c. 353, § 5, eff. Nov. 1, 2007; Laws 2008, c. 278, § 2, eff.
July 1, 2009; Laws 2009, c. 2, § 23, eff. July 1, 2009; Laws 2009, c.
426, § 8, eff. July 1, 2009; Laws 2012, c. 304, § 541; Laws 2013, c.
334, § 3, eff. July 1, 2013; Laws 2014, c. 401, § 1; Laws 2015, c.
22, § 1, eff. Nov. 1, 2015; Laws 2017, c. 245, § 1, eff. Nov. 1,
2017; Laws 2017, c. 386, § 1, eff. July 1, 2017; Laws 2019, c. 296, §
1, eff. July 1, 2019; Laws 2019, c. 413, § 1, eff. Nov. 1, 2019.
NOTE: Laws 1988, c. 281, § 21 repealed by Laws 1989, c. 4, § 2,
emerg. eff. March 14, 1989. Laws 1991, c. 208, § 1 repealed by Laws
1991, c. 335, § 37, emerg. eff. June 15, 1991. Laws 1995, c. 271, §
9)!&#!%!%%"'%)6! !2!(# 7!80;,
3 repealed by Laws 1996, c. 3, § 25, emerg. eff. March 6, 1996. Laws
1996, c. 108, § 1 repealed by Laws 1996, c. 289, § 10, eff. July 1,
1996. Laws 2000, c. 268, § 1 and Laws 2000, c. 274, § 1 repealed by
Laws 2001, c. 5, § 38, emerg. eff. March 21, 2001. Laws 2001, c. 2,
§ 1 repealed by Laws 2001, c. 223, § 2, emerg. eff. May 21, 2001 and
Laws 2001, c. 358, § 31, emerg. eff. June 4, 2001. Laws 2001, c.
223, § 1 repealed by Laws 2002, c. 22, § 34, emerg. eff. March 8,
2002. Laws 2002, c. 393, § 1 repealed by Laws 2003, c. 3, § 61,
emerg. eff. March 19, 2003. Laws 2002, c. 458, § 7 repealed by Laws
2003, c. 3, § 62, emerg. eff. March 19, 2003. Laws 2003, c. 291, § 1
repealed by Laws 2004, c. 5, § 67, emerg. eff. March 1, 2004. Laws
2003, c. 431, § 1 repealed by Laws 2004, c. 5, § 68, emerg. eff.
March 1, 2004. Laws 2004, c. 384, § 1 repealed by Laws 2005, c. 1, §
109, emerg. eff. March 15, 2005. Laws 2004, c. 518, § 1 repealed by
Laws 2005, c. 1, § 110, emerg. eff. March 15, 2005. Laws 2005, c.
279, § 1 repealed by Laws 2006, c. 16, § 52, emerg. eff. March 29,
2006. Laws 2005, c. 381, § 8 repealed by Laws 2006, c. 16, § 53,
emerg. eff. March 29, 2006. Laws 2005, c. 449, § 1 repealed by Laws
2006, c. 16, § 54, emerg. eff. March 29, 2006. Laws 2005, c. 456, §
1 repealed by Laws 2006, c. 16, § 55, emerg. eff. March 29, 2006.
Laws 2005, c. 475, § 1 repealed by Laws 2006, c. 16, § 56, emerg.
eff. March 29, 2006. Laws 2005, c. 479, § 13 repealed by Laws 2006,
c. 16, § 57, emerg. eff. March 29, 2006. Laws 2006, c. 5, § 1
repealed by Laws 2006, c. 272, § 23. Laws 2006, c. 66, § 1 repealed
by Laws 2006, c. 272, § 24. Laws 2006, c. 272, § 11 repealed by Laws
2006, 2nd Ex. Sess., c. 44, § 3, eff. July 1, 2007. Laws 2006, c.
300, § 1 repealed by Laws 2006, 2nd Ex. Sess., c. 44, § 4, eff. July
1, 2007. Laws 2008, c. 378, § 12 repealed by Laws 2009, c. 2, § 24,
eff. July 1, 2009. Laws 2008, c. 436, § 2 repealed by Laws 2009, c.
2, § 25, eff. July 1, 2009; Laws 2017, c. 283, § 1 repealed by Laws
2017, c. 386, § 2, eff. July 1, 2017.
§68-1356.1. Fire departments for unincorporated areas -
Qualification for exemption - Proof of eligibility.
(A) In order to qualify for any exemption authorized by
paragraph 17 of Section 1356 of this title, at the time of sale, the
person to whom the sale is made may be required to furnish the vendor
proof of eligibility for such exemption as required by this section.
(B) All vendors shall honor the proof of eligibility for sales
tax exemption as authorized by this section and sales to a person
providing such proof shall be exempt from the tax levied by this
article.
(C) A fire department organized pursuant to Section 592 of Title
18 of the Oklahoma Statutes may obtain one card, the size and design
of which shall be prescribed by the Oklahoma Tax Commission, which
shall constitute proof of eligibility for sales tax exemptions
authorized by paragraph 17 of Section 1356 of this title. Such card
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may be obtained upon application to the Tax Commission on a form
prescribed by the Tax Commission. The application shall contain such
other information as may be required by the Tax Commission. Upon
approval by the Tax Commission, the fire department shall be issued
one card as prescribed by this section. The card shall be renewable
every three (3) years upon application therefor, as provided by this
section, to the Tax Commission.
Added by Laws 1991, c. 208, § 2, eff. July 1, 1991. Amended by Laws
2004, c. 535, § 7, eff. Nov. 1, 2004.
§68-1356.2. Sales tax exemption - Unlawful use - Penalties.
A. No person shall claim a sales tax exemption granted an
organization pursuant to Section 1356 or 1357 of Title 68 of the
Oklahoma Statutes in order to make a purchase exempt from sales tax
for his or her personal use.
B. Any person who knowingly makes a purchase in violation of
subsection A of this section shall be guilty of a misdemeanor and
upon conviction thereof shall be fined an amount equal to double the
amount of sales tax involved, or incarcerated for not more than sixty
(60) days, or both.
C. In addition to the penalty provided in subsection B of this
section, any person violating subsection A of this section shall be
subject to an administrative fine of not more than Five Hundred
Dollars ($500.00). Administrative fines collected pursuant to the
provisions of this subsection shall be deposited to the General
Revenue Fund.
Added by Laws 2012, c. 298, § 1, eff. Nov. 1, 2012.
§68-1357. See the following versions:
OS 68-1357v1 (SB 18, Laws 2019, c. 241, § 1, effective until Nov.
1, 2020).
OS 68-1357v2 (HB 1198, Laws 2017, c. 229, § 10, effective
beginning Nov. 1, 2020).
§68-1357.1. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-1357.2 Repealed by Laws 1996, c. 289, § 10, emerg. eff. July 1,
1996.
§68-1357.3 Repealed by Laws 1996, c. 289, § 10, emerg. eff. July 1,
1996.
§68-1357.4. Aircraft maintenance or manufacturing facilities - Sales
of computers, data processing equipment, related peripherals and
telephone, telegraph or telecommunication services and equipment -
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Sales tax refund - Computation of interest - Claim documentation -
Filing.
A. In order to administer the exemption for sales of computers,
data processing equipment, related peripherals and telephone,
telegraph or telecommunications service and equipment related thereto
to a qualified purchaser as provided by paragraph 11 of Section 1357
of this title, there shall be made a sales tax refund for state and
local sales taxes paid by a qualified purchaser for the purchase of
said items.
B. The Oklahoma Tax Commission shall transfer each month from
sales tax collected the amount which the Commission estimates to be
necessary to make the sales tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local sales taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified purchaser of
computers, data processing equipment, related peripherals and
telephone, telegraph or telecommunications service and equipment
related thereto upon the principal amount of any refund made to such
purchaser for purposes of administering the exemption provided by
paragraph 11 of Section 1357 of this title, shall be determined
according to the provisions of this subsection. For any month during
which the Oklahoma Tax Commission transfers a sum to the account
prescribed by subsection B of this section, the Commission shall
determine an interest rate by determining the rate of interest paid
for a three-months Treasury Bill of the United States government as
of the first working day of the month and such interest shall accrue
upon any amount transferred during the month and upon the amounts
previously transferred to the account together with interest
previously accrued upon such amounts.
D. The qualified purchaser of computers, data processing
equipment, related peripherals and telephone, telegraph or
telecommunications service and equipment related thereto shall file,
within thirty-six (36) months of the date of purchase, with the
Oklahoma Tax Commission, the following documentation for any refund
claimed:
1. Invoices indicating the amount of state and local sales tax
paid;
2. Affidavit of each vendor that state and local sales tax
billed to the purchaser has not been audited, rebated, or refunded to
the purchaser but rather the sales tax charged has been collected by
the vendor and remitted to the Oklahoma Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
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E. Only sales of computers, data processing equipment, related
peripherals and telephone, telegraph or telecommunications service
and equipment may qualify for the refund established by this section,
provided the total cost of said equipment equals or exceeds the sum
of Two Million Dollars ($2,000,000.00) and occurs after the effective
date of this act.
F. The qualified purchaser shall file, within sixty (60) months
of the date of the first purchase, with the Oklahoma Tax Commission a
certification issued by the Oklahoma Employment Security Commission
in order to qualify for the refund authorized by this section.
Added by Laws 1991, 1st Ex. Sess., c. 2, § 6, emerg. eff. Jan. 18,
1991. Amended by Laws 1993, c. 275, § 12, eff. July 1, 1993.
§68-1357.5. Aircraft maintenance or manufacturing facilities - Sales
of tangible property consumed or incorporated in construction or
expansion - Sales tax refund - Computation of interest -
Documentation of claims - Affidavits by contractors.
A. In order to administer the exemption for sales to a qualified
aircraft maintenance or manufacturing facility as provided by
paragraph 12 of Section 1357 of this title, there shall be made a
sales tax refund for state and local sales taxes paid by a qualified
purchaser for tangible personal property purchased to be consumed or
incorporated in the construction or expansion of a qualified aircraft
maintenance or manufacturing facility, as defined in paragraph 11 of
Section 1357 of this title, in the state from the account created by
this section.
B. The Oklahoma Tax Commission shall transfer each month from
sales tax collected the amount which the Commission estimates to be
necessary to make the sales tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local sales taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified aircraft
maintenance or manufacturing facility upon the principal amount of
any refund made to such facility for purposes of administering the
exemption provided by paragraph 12 of Section 1357 of this title,
shall be determined according to the provisions of this subsection.
For any month during which the Oklahoma Tax Commission transfers a
sum to the account prescribed by subsection B of this section, the
Commission shall determine an interest rate by determining the rate
of interest paid for a three-month Treasury Bill of the United States
government as of the first working day of the month in which the
transfer is made. The interest rate so determined shall accrue upon
the amount transferred to the account. In each subsequent month, the
Commission shall determine the interest rate paid for a three-month
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Treasury Bill of the United States government as of the first working
day of the month and such interest rate shall accrue upon any amount
transferred during the month and upon the amounts previously
transferred to the account together with interest previously accrued
upon such amounts.
D. For purposes of this section, state and local sales taxes
paid by a contractor or subcontractor for tangible personal property
purchased by that contractor or subcontractor to be consumed or
incorporated in the construction or expansion of a qualified aircraft
maintenance or manufacturing facility pursuant to a contract with a
qualified facility shall, upon proper showing, be refunded to the
qualified facility.
E. The qualified purchaser shall file, within thirty-six (36)
months of the date of purchase, with the Oklahoma Tax Commission the
following documentation for any refund claimed:
1. Invoices indicating the amount of state and local sales tax
billed;
2. Affidavit of each vendor that state and local sales tax
billed has not been audited, rebated, or refunded to the qualified
purchaser but rather the sales tax charged has been collected by the
vendor and remitted to the Oklahoma Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
F. In the event that state and local sales tax was paid by a
contractor or subcontractor, the qualified purchaser shall file with
the Oklahoma Tax Commission all documentation required in subsection
E of this section but in lieu of the affidavit of each vendor the
qualified facility shall file, for any refund claimed, an affidavit
from the contractor or subcontractor stating that the sales tax
refund of the qualified purchaser is based on state and local sales
tax paid by the contractor or subcontractor on tangible personal
property purchased to be consumed or incorporated in the construction
or expansion of a qualified aircraft maintenance facility and that
the amount of state and local sales tax claimed was paid to the
vendor and no credit, refund, or rebate has been claimed by the
contractor or subcontractor.
G. Only sales of tangible personal property made after the
effective date of this act, shall be eligible for the refund
established by this section.
H. The qualified purchaser shall file, within sixty (60) months
of the date of the first purchase, with the Oklahoma Tax Commission a
certification issued by the Oklahoma Employment Security Commission
in order to qualify for the refund authorized by this section.
Added by Laws 1991, 1st Ex. Sess., c. 2, § 7 emerg. eff. Jan. 18,
1991. Amended by Laws 1993, c. 275, § 13, eff. July 1, 1993.
§68-1357.6. Drugs and medical devices and equipment - Exemption.
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A. Effective July 1, 1992, there are hereby exempted from the
tax levied by Section 1350 et seq. of this title sales of drugs for
the treatment of human beings, medical appliances, medical devices
and other medical equipment including but not limited to corrective
eyeglasses, contact lenses, and hearing aids when administered,
distributed or prescribed by a practitioner, as defined in subsection
C of this section, who is authorized by law to administer, distribute
or prescribe such items or when purchased or leased by or on behalf
of an individual for use by such individual under a prescription or
work order of a practitioner who is authorized by law to prescribe
such items and when the cost of such items will be reimbursed under
the Medicare or Medicaid Program.
B. There are hereby exempted from the tax levied by Section 1350
et seq. of this title sales of the following medical equipment when
administered, distributed or prescribed by a practitioner, as defined
in subsection C of this section, who is authorized by law to
administer, distribute or prescribe such items:
1. Prosthetic devices as defined in subsection D of this
section;
2. Durable medical equipment as defined in subsection E of this
section; and
3. Mobility-enhancing equipment as defined in subsection F of
this section.
C. The term "practitioner" means a physician, allopathic
physician, osteopathic physician, surgeon, podiatrist, chiropractor,
optometrist, pharmacist, psychologist, ophthalmologist, nurse
practitioner, clinical nurse specialist, audiologist or hearing aid
dealer or fitter who is licensed by the state as required by law.
D. The term "prosthetic device" means a replacement, corrective
or supportive device, including repair and replacement parts for
same, worn on or in the body to:
1. Artificially replace a missing portion of the body;
2. Prevent or correct physical deformity or malfunction; or
3. Support a weak or deformed portion of the body.
Provided, the term shall not include corrective eyeglasses,
contact lenses or hearing aids.
E. The term "durable medical equipment" means equipment,
including repair and replacement parts for same, which:
1. Is used in the home;
2. Can withstand repeated use;
3. Is primarily and customarily used to serve a medical purpose;
4. Generally is not useful to a person in the absence of illness
or injury; and
5. Is not worn in or on the body.
The term "durable medical equipment" shall not include "mobility-
enhancing equipment" as defined in subsection F of this section.
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F. The term "mobility-enhancing equipment" means equipment,
including repair and replacement parts for same, which:
1. Is primarily and customarily used to provide or increase the
ability to move from one place to another and which is appropriate
for use either in a home or a motor vehicle;
2. Is not generally used by persons with normal mobility; and
3. Does not include any motor vehicle or equipment on a motor
vehicle normally provided by a motor vehicle manufacturer.
The term "mobility-enhancing equipment" shall not include
"durable medical equipment" as defined in subsection E of this
section.
Added by Laws 1991, c. 342, § 16, emerg. eff. June 15, 1991. Amended
by Laws 2003, c. 413, § 10, eff. Nov. 1, 2003; Laws 2004, c. 535, §
9, eff. Nov. 1, 2004; Laws 2019, c. 458, § 1, eff. July 1, 2019.
§68-1357.7. Horses - Exemption.
There are hereby specifically exempted from the tax levied by
this article, sales of horses after January 1, 1989.
Added by Laws 1992, c. 366, § 2, emerg. eff. June 9, 1992.
§68-1357.8. Repealed by Laws 2005, c. 381, § 18, eff. July 1, 2005.
§68-1357.9. Service transactions among related entities -
Exemptions.
A. There are exempt from the taxes imposed by Section 1351 et
seq. of Title 68 of the Oklahoma Statutes service transactions among
related entities.
B. For purposes of this section, "related entity" includes
persons as defined by subsection (b) of Section 267 of the Internal
Revenue Code.
C. An exemption authorized by this section does not apply to a
service that would have been taxable under Section 1351 et seq. of
Title 68 of the Oklahoma Statutes as it existed on July 1, 2003.
D. Services that are exempt under this section may not be
purchased for resale by the providing company.
E. Tangible personal property that is transferred as an integral
part of a service exempted under this section may not be purchased
for resale by the providing company.
Added by Laws 2003, c. 462, § 1, eff. July 1, 2003.
§68-1357.10. Clothing or footwear - Exemption of certain sales -
Exceptions.
A. The sale of an article of clothing or footwear designed to be
worn on or about the human body shall be exempt from the tax imposed
by Section 1354 of Title 68 of the Oklahoma Statutes if:
1. The sales price of the article is less than One Hundred
Dollars ($100.00); and
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2. The sale takes place during a period beginning at 12:01 a.m.
on the first Friday in August and ending at 12 midnight on the
following Sunday, covering a period of three (3) days.
B. Subsection A of this section shall not apply to:
1. Any special clothing or footwear that is primarily designed
for athletic activity or protective use and that is not normally worn
except when used for athletic activity or protective use for which it
is designed;
2. Accessories, including jewelry, handbags, luggage, umbrellas,
wallets, watches, and similar items carried on or about the human
body, without regard to whether worn on the body in a manner
characteristic of clothing; and
3. The rental of clothing or footwear.
C. The Oklahoma Tax Commission shall promulgate any necessary
rules to implement the provisions of this section.
Added by Laws 2007, c. 136, § 3, eff. July 1, 2007.
§68-1357v1. Exemptions – General.
THIS TEXT EFFECTIVE UNTIL NOV. 1, 2020. FOR TEXT EFFECTIVE BEGINNING
NOV. 1, 2020, SEE OS 68-1357v2.
Exemptions – General.
There are hereby specifically exempted from the tax levied by the
Oklahoma Sales Tax Code:
1. Transportation of school pupils to and from elementary
schools or high schools in motor or other vehicles;
2. Transportation of persons where the fare of each person does
not exceed One Dollar ($1.00), or local transportation of persons
within the corporate limits of a municipality except by taxicabs;
3. Sales for resale to persons engaged in the business of
reselling the articles purchased, whether within or without the
state, provided that such sales to residents of this state are made
to persons to whom sales tax permits have been issued as provided in
the Oklahoma Sales Tax Code. This exemption shall not apply to the
sales of articles made to persons holding permits when such persons
purchase items for their use and which they are not regularly engaged
in the business of reselling; neither shall this exemption apply to
sales of tangible personal property to peddlers, solicitors and other
salespersons who do not have an established place of business and a
sales tax permit. The exemption provided by this paragraph shall
apply to sales of motor fuel or diesel fuel to a Group Five vendor,
but the use of such motor fuel or diesel fuel by the Group Five
vendor shall not be exempt from the tax levied by the Oklahoma Sales
Tax Code. The purchase of motor fuel or diesel fuel is exempt from
sales tax when the motor fuel is for shipment outside this state and
consumed by a common carrier by rail in the conduct of its business.
The sales tax shall apply to the purchase of motor fuel or diesel
fuel in Oklahoma by a common carrier by rail when such motor fuel is
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purchased for fueling, within this state, of any locomotive or other
motorized flanged wheel equipment;
4. Sales of advertising space in newspapers and periodicals;
5. Sales of programs relating to sporting and entertainment
events, and sales of advertising on billboards (including signage,
posters, panels, marquees, or on other similar surfaces, whether
indoors or outdoors) or in programs relating to sporting and
entertainment events, and sales of any advertising, to be displayed
at or in connection with a sporting event, via the Internet,
electronic display devices, or through public address or broadcast
systems. The exemption authorized by this paragraph shall be
effective for all sales made on or after January 1, 2001;
6. Sales of any advertising, other than the advertising
described by paragraph 5 of this section, via the Internet,
electronic display devices, or through the electronic media,
including radio, public address or broadcast systems, television
(whether through closed circuit broadcasting systems or otherwise),
and cable and satellite television, and the servicing of any
advertising devices;
7. Eggs, feed, supplies, machinery and equipment purchased by
persons regularly engaged in the business of raising worms, fish, any
insect or any other form of terrestrial or aquatic animal life and
used for the purpose of raising same for marketing. This exemption
shall only be granted and extended to the purchaser when the items
are to be used and in fact are used in the raising of animal life as
set out above. Each purchaser shall certify, in writing, on the
invoice or sales ticket retained by the vendor that the purchaser is
regularly engaged in the business of raising such animal life and
that the items purchased will be used only in such business. The
vendor shall certify to the Oklahoma Tax Commission that the price of
the items has been reduced to grant the full benefit of the
exemption. Violation hereof by the purchaser or vendor shall be a
misdemeanor;
8. Sale of natural or artificial gas and electricity, and
associated delivery or transmission services, when sold exclusively
for residential use. Provided, this exemption shall not apply to any
sales tax levied by a city or town, or a county, or any other
jurisdiction in this state;
9. In addition to the exemptions authorized by Section 1357.6 of
this title, sales of drugs sold pursuant to a prescription written
for the treatment of human beings by a person licensed to prescribe
the drugs, and sales of insulin and medical oxygen. Provided, this
exemption shall not apply to over-the-counter drugs;
10. Transfers of title or possession of empty, partially filled,
or filled returnable oil and chemical drums to any person who is not
regularly engaged in the business of selling, reselling or otherwise
transferring empty, partially filled, or filled returnable oil drums;
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11. Sales of one-way utensils, paper napkins, paper cups,
disposable hot containers and other one-way carry out materials to a
vendor of meals or beverages;
12. Sales of food or food products for home consumption which
are purchased in whole or in part with coupons issued pursuant to the
federal food stamp program as authorized by Sections 2011 through
2029 of Title 7 of the United States Code, as to that portion
purchased with such coupons. The exemption provided for such sales
shall be inapplicable to such sales upon the effective date of any
federal law that removes the requirement of the exemption as a
condition for participation by the state in the federal food stamp
program;
13. Sales of food or food products, or any equipment or supplies
used in the preparation of the food or food products to or by an
organization which:
a. 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), and which provides and
delivers prepared meals for home consumption to elderly
or homebound persons as part of a program commonly
known as "Meals on Wheels" or "Mobile Meals", or
b. 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), and which receives federal
funding pursuant to the Older Americans Act of 1965, as
amended, for the purpose of providing nutrition
programs for the care and benefit of elderly persons;
14. a. Sales of tangible personal property or services to or
by organizations which are 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),
and:
(1) are primarily involved in the collection and
distribution of food and other household products
to other organizations that facilitate the
distribution of such products to the needy and
such distributee organizations are 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), or
(2) facilitate the distribution of such products to
the needy.
b. Sales made in the course of business for profit or
savings, competing with other persons engaged in the
same or similar business shall not be exempt under this
paragraph;
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15. Sales of tangible personal property or services to
children's homes which are located on church-owned property and are
operated by organizations exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3);
16. Sales of computers, data processing equipment, related
peripherals and telephone, telegraph or telecommunications service
and equipment for use in a qualified aircraft maintenance or
manufacturing facility. For purposes of this paragraph, "qualified
aircraft maintenance or manufacturing facility" means a new or
expanding facility primarily engaged in aircraft repair, building or
rebuilding whether or not on a factory basis, whose total cost of
construction exceeds the sum of Five Million Dollars ($5,000,000.00)
and which employs at least two hundred fifty (250) new full-time-
equivalent employees, as certified by the Oklahoma Employment
Security Commission, upon completion of the facility. In order to
qualify for the exemption provided for by this paragraph, the cost of
the items purchased by the qualified aircraft maintenance or
manufacturing facility shall equal or exceed the sum of Two Million
Dollars ($2,000,000.00);
17. Sales of tangible personal property consumed or incorporated
in the construction or expansion of a qualified aircraft maintenance
or manufacturing facility as defined in paragraph 16 of this section.
For purposes of this paragraph, sales made to a contractor or
subcontractor that has previously entered into a contractual
relationship with a qualified aircraft maintenance or manufacturing
facility for construction or expansion of such a facility shall be
considered sales made to a qualified aircraft maintenance or
manufacturing facility;
18. Sales of the following telecommunications services:
a. Interstate and International "800 service". "800
service" means a "telecommunications service" that
allows a caller to dial a toll-free number without
incurring a charge for the call. The service is
typically marketed under the name "800", "855", "866",
"877", and "888" toll-free calling, and any subsequent
numbers designated by the Federal Communications
Commission, or
b. Interstate and International "900 service". "900
service" means an inbound toll "telecommunications
service" purchased by a subscriber that allows the
subscriber's customers to call in to the subscriber's
prerecorded announcement or live service. "900
service" does not include the charge for: collection
services provided by the seller of the
"telecommunications services" to the subscriber, or
service or product sold by the subscriber to the
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subscriber's customer. The service is typically
marketed under the name "900" service, and any
subsequent numbers designated by the Federal
Communications Commission,
c. Interstate and International "private communications
service". "Private communications service" means a
"telecommunications service" that entitles the customer
to exclusive or priority use of a communications
channel or group of channels between or among
termination points, regardless of the manner in which
such channel or channels are connected, and includes
switching capacity, extension lines, stations, and any
other associated services that are provided in
connection with the use of such channel or channels,
d. "Value-added nonvoice data service". "Value-added
nonvoice data service" means a service that otherwise
meets the definition of "telecommunications services"
in which computer processing applications are used to
act on the form, content, code, or protocol of the
information or data primarily for a purpose other than
transmission, conveyance or routing,
e. Interstate and International telecommunications service
which is:
(1) rendered by a company for private use within its
organization, or
(2) used, allocated, or distributed by a company to
its affiliated group,
f. Regulatory assessments and charges, including charges
to fund the Oklahoma Universal Service Fund, the
Oklahoma Lifeline Fund and the Oklahoma High Cost Fund,
and
g. Telecommunications nonrecurring charges, including but
not limited to the installation, connection, change or
initiation of telecommunications services which are not
associated with a retail consumer sale;
19. Sales of railroad track spikes manufactured and sold for use
in this state in the construction or repair of railroad tracks,
switches, sidings and turnouts;
20. Sales of aircraft and aircraft parts provided such sales
occur at a qualified aircraft maintenance facility. As used in this
paragraph, "qualified aircraft maintenance facility" means a facility
operated by an air common carrier, including one or more component
overhaul support buildings or structures in an area owned, leased or
controlled by the air common carrier, at which there were employed at
least two thousand (2,000) full-time-equivalent employees in the
preceding year as certified by the Oklahoma Employment Security
Commission and which is primarily related to the fabrication, repair,
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alteration, modification, refurbishing, maintenance, building or
rebuilding of commercial aircraft or aircraft parts used in air
common carriage. For purposes of this paragraph, "air common
carrier" shall also include members of an affiliated group as defined
by Section 1504 of the Internal Revenue Code, 26 U.S.C., Section
1504. Beginning July 1, 2012, sales of machinery, tools, supplies,
equipment and related tangible personal property and services used or
consumed in the repair, remodeling or maintenance of aircraft,
aircraft engines, or aircraft component parts which occur at a
qualified aircraft maintenance facility;
21. Sales of machinery and equipment purchased and used by
persons and establishments primarily engaged in computer services and
data processing:
a. as defined under Industrial Group Numbers 7372 and 7373
of the Standard Industrial Classification (SIC) Manual,
latest version, which derive at least fifty percent
(50%) of their annual gross revenues from the sale of a
product or service to an out-of-state buyer or
consumer, and
b. as defined under Industrial Group Number 7374 of the
SIC Manual, latest version, which derive at least
eighty percent (80%) of their annual gross revenues
from the sale of a product or service to an out-of-
state buyer or consumer.
Eligibility for the exemption set out in this paragraph shall be
established, subject to review by the Tax Commission, by annually
filing an affidavit with the Tax Commission stating that the facility
so qualifies and such information as required by the Tax Commission.
For purposes of determining whether annual gross revenues are derived
from sales to out-of-state buyers or consumers, all sales to the
federal government shall be considered to be to an out-of-state buyer
or consumer;
22. Sales of prosthetic devices to an individual for use by such
individual. For purposes of this paragraph, "prosthetic device"
shall have the same meaning as provided in Section 1357.6 of this
title, but shall not include corrective eye glasses, contact lenses
or hearing aids;
23. Sales of tangible personal property or services to a motion
picture or television production company to be used or consumed in
connection with an eligible production. For purposes of this
paragraph, "eligible production" means a documentary, special, music
video, or a television commercial or television program that will
serve as a pilot for or be a segment of an ongoing dramatic or
situation comedy series filmed or taped for network or national or
regional syndication or a feature-length motion picture intended for
theatrical release or for network or national or regional syndication
or broadcast. The provisions of this paragraph shall apply to sales
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occurring on or after July 1, 1996. In order to qualify for the
exemption, the motion picture or television production company shall
file any documentation and information required to be submitted
pursuant to rules promulgated by the Tax Commission;
24. Sales of diesel fuel sold for consumption by commercial
vessels, barges and other commercial watercraft;
25. Sales of tangible personal property or services to tax-
exempt independent nonprofit biomedical research foundations that
provide educational programs for Oklahoma science students and
teachers and to tax-exempt independent nonprofit community blood
banks headquartered in this state;
26. Effective May 6, 1992, sales of wireless telecommunications
equipment to a vendor who subsequently transfers the equipment at no
charge or for a discounted charge to a consumer as part of a
promotional package or as an inducement to commence or continue a
contract for wireless telecommunications services;
27. Effective January 1, 1991, leases of rail transportation
cars to haul coal to coal-fired plants located in this state which
generate electric power;
28. Beginning July 1, 2005, sales of aircraft engine repairs,
modification, and replacement parts, sales of aircraft frame repairs
and modification, aircraft interior modification, and paint, and
sales of services employed in the repair, modification and
replacement of parts of aircraft engines, aircraft frame and interior
repair and modification, and paint;
29. Sales of materials and supplies to the owner or operator of
a ship, motor vessel or barge that is used in interstate or
international commerce if the materials and supplies:
a. are loaded on the ship, motor vessel or barge and used
in the maintenance and operation of the ship, motor
vessel or barge, or
b. enter into and become component parts of the ship,
motor vessel or barge;
30. Sales of tangible personal property made at estate sales at
which such property is offered for sale on the premises of the former
residence of the decedent by a person who is not required to be
licensed pursuant to the Transient Merchant Licensing Act, or who is
not otherwise required to obtain a sales tax permit for the sale of
such property pursuant to the provisions of Section 1364 of this
title; provided:
a. such sale or event may not be held for a period
exceeding three (3) consecutive days,
b. the sale must be conducted within six (6) months of the
date of death of the decedent, and
c. the exemption allowed by this paragraph shall not be
allowed for property that was not part of the
decedent's estate;
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31. Beginning January 1, 2004, sales of electricity and
associated delivery and transmission services, when sold exclusively
for use by an oil and gas operator for reservoir dewatering projects
and associated operations commencing on or after July 1, 2003, in
which the initial water-to-oil ratio is greater than or equal to
five-to-one water-to-oil, and such oil and gas development projects
have been classified by the Corporation Commission as a reservoir
dewatering unit;
32. Sales of prewritten computer software that is delivered
electronically. For purposes of this paragraph, "delivered
electronically" means delivered to the purchaser by means other than
tangible storage media;
33. Sales of modular dwelling units when built at a production
facility and moved in whole or in parts, to be assembled on-site, and
permanently affixed to the real property and used for residential or
commercial purposes. The exemption provided by this paragraph shall
equal forty-five percent (45%) of the total sales price of the
modular dwelling unit. For purposes of this paragraph, "modular
dwelling unit" means a structure that is not subject to the motor
vehicle excise tax imposed pursuant to Section 2103 of this title;
34. Sales of tangible personal property or services to persons
who are residents of Oklahoma and have been honorably discharged from
active service in any branch of the Armed Forces of the United States
or Oklahoma National Guard and who have been certified by the United
States Department of Veterans Affairs or its successor to be in
receipt of disability compensation at the one-hundred-percent rate
and the disability shall be permanent and have been sustained through
military action or accident or resulting from disease contracted
while in such active service or the surviving spouse of such person
if the person is deceased and the spouse has not remarried; provided,
sales for the benefit of the person to a spouse of the eligible
person or to a member of the household in which the eligible person
resides and who is authorized to make purchases on the person's
behalf, when such eligible person is not present at the sale, shall
also be exempt for purposes of this paragraph. The Oklahoma Tax
Commission shall issue a separate exemption card to a spouse of an
eligible person or to a member of the household in which the eligible
person resides who is authorized to make purchases on the person's
behalf, if requested by the eligible person. Sales qualifying for
the exemption authorized by this paragraph shall not exceed Twenty-
five Thousand Dollars ($25,000.00) per year per individual while the
disabled veteran is living. Sales qualifying for the exemption
authorized by this paragraph shall not exceed One Thousand Dollars
($1,000.00) per year for an unremarried surviving spouse. Upon
request of the Tax Commission, a person asserting or claiming the
exemption authorized by this paragraph shall provide a statement,
executed under oath, that the total sales amounts for which the
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exemption is applicable have not exceeded Twenty-five Thousand
Dollars ($25,000.00) per year per living disabled veteran or One
Thousand Dollars ($1,000.00) per year for an unremarried surviving
spouse. If the amount of such exempt sales exceeds such amount, the
sales tax in excess of the authorized amount shall be treated as a
direct sales tax liability and may be recovered by the Tax Commission
in the same manner provided by law for other taxes, including penalty
and interest;
35. Sales of electricity to the operator, specifically
designated by the Corporation Commission, of a spacing unit or lease
from which oil is produced or attempted to be produced using enhanced
recovery methods, including, but not limited to, increased pressure
in a producing formation through the use of water or saltwater if the
electrical usage is associated with and necessary for the operation
of equipment required to inject or circulate fluids in a producing
formation for the purpose of forcing oil or petroleum into a wellbore
for eventual recovery and production from the wellhead. In order to
be eligible for the sales tax exemption authorized by this paragraph,
the total content of oil recovered after the use of enhanced recovery
methods shall not exceed one percent (1%) by volume. The exemption
authorized by this paragraph shall be applicable only to the state
sales tax rate and shall not be applicable to any county or municipal
sales tax rate;
36. Sales of intrastate charter and tour bus transportation. As
used in this paragraph, "intrastate charter and tour bus
transportation" means the transportation of persons from one location
in this state to another location in this state in a motor vehicle
which has been constructed in such a manner that it may lawfully
carry more than eighteen persons, and which is ordinarily used or
rented to carry persons for compensation. Provided, this exemption
shall not apply to regularly scheduled bus transportation for the
general public;
37. Sales of vitamins, minerals and dietary supplements by a
licensed chiropractor to a person who is the patient of such
chiropractor at the physical location where the chiropractor provides
chiropractic care or services to such patient. The provisions of
this paragraph shall not be applicable to any drug, medicine or
substance for which a prescription by a licensed physician is
required;
38. Sales of goods, wares, merchandise, tangible personal
property, machinery and equipment to a web search portal located in
this state which derives at least eighty percent (80%) of its annual
gross revenue from the sale of a product or service to an out-of-
state buyer or consumer. For purposes of this paragraph, "web search
portal" means an establishment classified under NAICS code 519130
which operates websites that use a search engine to generate and
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maintain extensive databases of Internet addresses and content in an
easily searchable format;
39. Sales of tangible personal property consumed or incorporated
in the construction or expansion of a facility for a corporation
organized under Section 437 et seq. of Title 18 of the Oklahoma
Statutes as a rural electric cooperative. For purposes of this
paragraph, sales made to a contractor or subcontractor that has
previously entered into a contractual relationship with a rural
electric cooperative for construction or expansion of a facility
shall be considered sales made to a rural electric cooperative;
40. Sales of tangible personal property or services to a
business primarily engaged in the repair of consumer electronic
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, 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 authorized by this paragraph directly to
retail consumers or if the devices are sold to another business
entity for sale to retail consumers;
41. On or after July 1, 2019, and prior to July 1, 2024, sales
or leases of rolling stock when sold or leased by the manufacturer,
regardless of whether the purchaser is a public services corporation
engaged in business as a common carrier of property or passengers by
railway, for use or consumption by a common carrier directly in the
rendition of public service. For purposes of this paragraph,
"rolling stock" means locomotives, autocars and railroad cars and
"sales or leases" includes railroad car maintenance and retrofitting
of railroad cars for their further use only on the railways; and
42. Sales of gold, silver, platinum, palladium or other bullion
items such as coins and bars and legal tender of any nation, which
legal tender is sold according to its value as precious metal or as
an investment. As used in the paragraph, "bullion" means any
precious metal, including, but not limited to, gold, silver, platinum
and palladium, that is in such a state or condition that its value
depends upon its precious metal content and not its form. The
exemption authorized by this paragraph shall not apply to fabricated
metals that have been processed or manufactured for artistic use or
as jewelry.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1981, c. 351, § 1, operative Jan. 1, 1982; Laws 1985, c. 161,
§ 2, eff. July 1, 1985; Laws 1987, c. 7, § 1, operative Sept. 30,
1987; Laws 1988, c. 142, § 3, emerg. eff. April 25, 1988; Laws 1988,
c. 190, § 1, eff. June 1, 1988; Laws 1989, c. 167, § 5, eff. July 1,
1989; Laws 1990, c. 280, § 2, emerg. eff. May 25, 1990; Laws 1991,
1st Ex. Sess., c. 1, § 4, emerg. eff. Jan. 18, 1991; Laws 1991, 1st
9)!&#!%!%%"'%)6! !2!(# 7!80,
Ex. Sess., c. 2, § 4, emerg. eff. Jan. 18, 1991; Laws 1991, c. 342, §
15, emerg. eff. June 15, 1991; Laws 1992, c. 383, § 2, emerg. eff.
June 9, 1992; Laws 1993, c. 53, § 1, eff. July 1, 1993; Laws 1993, c.
275, § 11, eff. July 1, 1993; Laws 1994, c. 2, § 23, emerg. eff.
March 2, 1994; Laws 1994, c. 278, § 15, eff. Sept. 1, 1994; Laws
1995, c. 337, § 5, emerg. eff. June 9, 1995; Laws 1996, c. 342, § 3,
eff. July 1, 1996; Laws 1997, c. 2, § 16, emerg. eff. Feb. 26, 1997;
Laws 1997, c. 190, § 2, eff. July 1, 1997; Laws 1997, c. 294, § 16,
eff. July 1, 1997; Laws 1998, c. 5, § 22, emerg. eff. March 4, 1998;
Laws 1998, c. 301, § 5, eff. Nov. 1, 1998; Laws 1999, c. 163, § 1,
emerg. eff. May 17, 1999; Laws 1999, c. 390, § 9, emerg. eff. June 8,
1999; Laws 2000, c. 6, § 15, emerg. eff. March 20, 2000; Laws 2000,
c. 337, § 2, eff. July 1, 2000; Laws 2001, c. 402, § 1, eff. July 1,
2001; Laws 2002, c. 22, § 26, emerg. eff. March 8, 2002; Laws 2002,
c. 163, § 1, eff. July 1, 2002; Laws 2002, c. 385, § 1, eff. July 1,
2002; Laws 2003, c. 3, § 63, emerg. eff. March 19, 2003; Laws 2003,
c. 413, § 9, eff. Nov. 1, 2003; Laws 2004, c. 535, § 8, eff. Nov. 1,
2004; Laws 2005, c. 381, § 9, eff. July 1, 2005; Laws 2006, c. 16, §
58, emerg. eff. March 29, 2006; Laws 2006, 2nd Ex. Sess., c. 44, § 5,
eff. July 1, 2007; Laws 2007, c. 155, § 9, eff. Nov. 1, 2007; Laws
2007, c. 253, § 1, eff. July 1, 2007; Laws 2008, c. 436, § 3, eff.
July 1, 2009; Laws 2009, c. 2, § 26, eff. July 1, 2009; Laws 2010, c.
419, § 5, eff. Nov. 1, 2010; Laws 2012, c. 230, § 2, emerg. eff. May
9, 2012; Laws 2013, c. 15, § 82, emerg. eff. April 8, 2013; Laws
2013, c. 364, § 1, eff. Nov. 1, 2013; Laws 2014, c. 401, § 2; Laws
2015, c. 54, § 18, emerg. eff. April 10, 2015; Laws 2019, c. 241, §
1, eff. July 1, 2019.
NOTE: Laws 1991, c. 337, § 2 repealed by Laws 1992, c. 383, § 4,
emerg. eff. June 9, 1992. Laws 1993, c. 246, § 2 repealed by Laws
1994, c. 2, § 34, emerg. eff. March 2, 1994. Laws 1996, c. 289, § 2
repealed by Laws 1997, c. 2, § 26, emerg. eff. Feb. 26, 1997. Laws
1997, c. 252, § 2 repealed by Laws 1998, c. 5, § 29, emerg. eff.
March 4, 1998. Laws 1999, c. 243, § 1 and Laws 1999, c. 329, § 1
repealed by Laws 2000, c. 6, § 33, emerg. eff. March 20, 2000. Laws
2001, c. 358, § 15 repealed by Laws 2002, c. 22, § 34, emerg. eff.
March 8, 2002. Laws 2002, c. 382, § 2 repealed by Laws 2003, c. 3, §
64, emerg. eff. March 19, 2003. Laws 2005, c. 293, § 1 repealed by
Laws 2006, c. 16, § 59, emerg. eff. March 29, 2006. Laws 2005, c.
295, § 1 repealed by Laws 2006, c. 16, § 60, emerg. eff. March 29,
2006. Laws 2005, c. 383, § 1 repealed by Laws 2006, c. 16, § 61,
emerg. eff. March 29, 2006. Laws 2005, c. 479, § 14 repealed by Laws
2006, c. 16, § 62, emerg. eff. March 29, 2006. Laws 2006, c. 281, §
28 repealed by Laws 2006, 2nd Ex. Sess., c. 44, § 6, eff. July 1,
2007. Laws 2006, c. 272, § 1 repealed by Laws 2006, 2nd Ex. Sess.,
c. 44, § 7, eff. July 1, 2007. Laws 2007, c. 143, § 1 repealed by
Laws 2007, c. 253, § 2, eff. July 1, 2007. Laws 2008, c. 406, § 1
repealed by Laws 2009, c. 2, § 27, eff. July 1, 2009. Laws 2012, c.
9)!&#!%!%%"'%)6! !2!(# 7!80,;
233, § 1 repealed by Laws 2013, c. 15, § 83, emerg. eff. April 8,
2013. Laws 2014, c. 358, § 1 repealed by Laws 2015, C. 54, § 19,
emerg. eff. April 10, 2015. Laws 2014, c. 429, § 2 repealed by Laws
2015, c. 54, § 20, emerg. eff. April 10, 2015.
§68-1357v2. Exemptions – General.
THIS TEXT EFFECTIVE BEGINNING NOV. 1, 2020. FOR TEXT EFFECTIVE UNTIL
NOV. 1, 2020, SEE OS 68-1357v1.
Exemptions – General.
There are hereby specifically exempted from the tax levied by the
Oklahoma Sales Tax Code:
1. Transportation of school pupils to and from elementary
schools or high schools in motor or other vehicles;
2. Transportation of persons where the fare of each person does
not exceed One Dollar ($1.00), or local transportation of persons
within the corporate limits of a municipality except by taxicabs;
3. Sales for resale to persons engaged in the business of
reselling the articles purchased, whether within or without the
state, provided that such sales to residents of this state are made
to persons to whom sales tax permits have been issued as provided in
the Oklahoma Sales Tax Code. This exemption shall not apply to the
sales of articles made to persons holding permits when such persons
purchase items for their use and which they are not regularly engaged
in the business of reselling; neither shall this exemption apply to
sales of tangible personal property to peddlers, solicitors and other
salespersons who do not have an established place of business and a
sales tax permit. The exemption provided by this paragraph shall
apply to sales of motor fuel or diesel fuel to a Group Five vendor,
but the use of such motor fuel or diesel fuel by the Group Five
vendor shall not be exempt from the tax levied by the Oklahoma Sales
Tax Code. The purchase of motor fuel or diesel fuel is exempt from
sales tax when the motor fuel is for shipment outside this state and
consumed by a common carrier by rail in the conduct of its business.
The sales tax shall apply to the purchase of motor fuel or diesel
fuel in Oklahoma by a common carrier by rail when such motor fuel is
purchased for fueling, within this state, of any locomotive or other
motorized flanged wheel equipment;
4. Sales of advertising space in newspapers and periodicals;
5. Sales of programs relating to sporting and entertainment
events, and sales of advertising on billboards (including signage,
posters, panels, marquees, or on other similar surfaces, whether
indoors or outdoors) or in programs relating to sporting and
entertainment events, and sales of any advertising, to be displayed
at or in connection with a sporting event, via the Internet,
electronic display devices, or through public address or broadcast
systems. The exemption authorized by this paragraph shall be
effective for all sales made on or after January 1, 2001;
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6. Sales of any advertising, other than the advertising
described by paragraph 5 of this section, via the Internet,
electronic display devices, or through the electronic media,
including radio, public address or broadcast systems, television
(whether through closed circuit broadcasting systems or otherwise),
and cable and satellite television, and the servicing of any
advertising devices;
7. Eggs, feed, supplies, machinery and equipment purchased by
persons regularly engaged in the business of raising worms, fish, any
insect or any other form of terrestrial or aquatic animal life and
used for the purpose of raising same for marketing. This exemption
shall only be granted and extended to the purchaser when the items
are to be used and in fact are used in the raising of animal life as
set out above. Each purchaser shall certify, in writing, on the
invoice or sales ticket retained by the vendor that the purchaser is
regularly engaged in the business of raising such animal life and
that the items purchased will be used only in such business. The
vendor shall certify to the Oklahoma Tax Commission that the price of
the items has been reduced to grant the full benefit of the
exemption. Violation hereof by the purchaser or vendor shall be a
misdemeanor;
8. Sale of natural or artificial gas and electricity, and
associated delivery or transmission services, when sold exclusively
for residential use. Provided, this exemption shall not apply to any
sales tax levied by a city or town, or a county, or any other
jurisdiction in this state;
9. In addition to the exemptions authorized by Section 1357.6 of
this title, sales of drugs sold pursuant to a prescription written
for the treatment of human beings by a person licensed to prescribe
the drugs, and sales of insulin and medical oxygen. Provided, this
exemption shall not apply to over-the-counter drugs;
10. Transfers of title or possession of empty, partially filled,
or filled returnable oil and chemical drums to any person who is not
regularly engaged in the business of selling, reselling or otherwise
transferring empty, partially filled, or filled returnable oil drums;
11. Sales of one-way utensils, paper napkins, paper cups,
disposable hot containers and other one-way carry out materials to a
vendor of meals or beverages;
12. Sales of food or food products for home consumption which
are purchased in whole or in part with coupons issued pursuant to the
federal food stamp program as authorized by Sections 2011 through
2029 of Title 7 of the United States Code, as to that portion
purchased with such coupons. The exemption provided for such sales
shall be inapplicable to such sales upon the effective date of any
federal law that removes the requirement of the exemption as a
condition for participation by the state in the federal food stamp
program;
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13. Sales of food or food products, or any equipment or supplies
used in the preparation of the food or food products to or by an
organization which:
a. 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), and which provides and
delivers prepared meals for home consumption to elderly
or homebound persons as part of a program commonly
known as "Meals on Wheels" or "Mobile Meals", or
b. 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), and which receives federal
funding pursuant to the Older Americans Act of 1965, as
amended, for the purpose of providing nutrition
programs for the care and benefit of elderly persons;
14. a. Sales of tangible personal property or services to or
by organizations which are 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),
and:
(1) are primarily involved in the collection and
distribution of food and other household products
to other organizations that facilitate the
distribution of such products to the needy and
such distributee organizations are 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), or
(2) facilitate the distribution of such products to
the needy.
b. Sales made in the course of business for profit or
savings, competing with other persons engaged in the
same or similar business shall not be exempt under this
paragraph;
15. Sales of tangible personal property or services to
children's homes which are located on church-owned property and are
operated by organizations exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section 501(c)
(3);
16. Sales of computers, data processing equipment, related
peripherals and telephone, telegraph or telecommunications service
and equipment for use in a qualified aircraft maintenance or
manufacturing facility. For purposes of this paragraph, "qualified
aircraft maintenance or manufacturing facility" means a new or
expanding facility primarily engaged in aircraft repair, building or
rebuilding whether or not on a factory basis, whose total cost of
construction exceeds the sum of Five Million Dollars ($5,000,000.00)
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and which employs at least two hundred fifty (250) new full-time-
equivalent employees, as certified by the Oklahoma Employment
Security Commission, upon completion of the facility. In order to
qualify for the exemption provided for by this paragraph, the cost of
the items purchased by the qualified aircraft maintenance or
manufacturing facility shall equal or exceed the sum of Two Million
Dollars ($2,000,000.00);
17. Sales of tangible personal property consumed or incorporated
in the construction or expansion of a qualified aircraft maintenance
or manufacturing facility as defined in paragraph 16 of this section.
For purposes of this paragraph, sales made to a contractor or
subcontractor that has previously entered into a contractual
relationship with a qualified aircraft maintenance or manufacturing
facility for construction or expansion of such a facility shall be
considered sales made to a qualified aircraft maintenance or
manufacturing facility;
18. Sales of the following telecommunications services:
a. Interstate and International "800 service". "800
service" means a "telecommunications service" that
allows a caller to dial a toll-free number without
incurring a charge for the call. The service is
typically marketed under the name "800", "855", "866",
"877", and "888" toll-free calling, and any subsequent
numbers designated by the Federal Communications
Commission, or
b. Interstate and International "900 service". "900
service" means an inbound toll "telecommunications
service" purchased by a subscriber that allows the
subscriber's customers to call in to the subscriber's
prerecorded announcement or live service. "900
service" does not include the charge for: collection
services provided by the seller of the
"telecommunications services" to the subscriber, or
service or product sold by the subscriber to the
subscriber's customer. The service is typically
marketed under the name "900 service", and any
subsequent numbers designated by the Federal
Communications Commission,
c. Interstate and International "private communications
service". "Private communications service" means a
"telecommunications service" that entitles the customer
to exclusive or priority use of a communications
channel or group of channels between or among
termination points, regardless of the manner in which
such channel or channels are connected, and includes
switching capacity, extension lines, stations, and any
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other associated services that are provided in
connection with the use of such channel or channels,
d. "Value-added nonvoice data service". "Value-added
nonvoice data service" means a service that otherwise
meets the definition of "telecommunications services"
in which computer processing applications are used to
act on the form, content, code, or protocol of the
information or data primarily for a purpose other than
transmission, conveyance or routing,
e. Interstate and International telecommunications service
which is:
(1) rendered by a company for private use within its
organization, or
(2) used, allocated, or distributed by a company to
its affiliated group,
f. Regulatory assessments and charges, including charges
to fund the Oklahoma Universal Service Fund, the
Oklahoma Lifeline Fund and the Oklahoma High Cost Fund,
and
g. Telecommunications nonrecurring charges, including but
not limited to the installation, connection, change or
initiation of telecommunications services which are not
associated with a retail consumer sale;
19. Sales of railroad track spikes manufactured and sold for use
in this state in the construction or repair of railroad tracks,
switches, sidings and turnouts;
20. Sales of aircraft and aircraft parts provided such sales
occur at a qualified aircraft maintenance facility. As used in this
paragraph, "qualified aircraft maintenance facility" means a facility
operated by an air common carrier, including one or more component
overhaul support buildings or structures in an area owned, leased or
controlled by the air common carrier, at which there were employed at
least two thousand (2,000) full-time-equivalent employees in the
preceding year as certified by the Oklahoma Employment Security
Commission and which is primarily related to the fabrication, repair,
alteration, modification, refurbishing, maintenance, building or
rebuilding of commercial aircraft or aircraft parts used in air
common carriage. For purposes of this paragraph, "air common
carrier" shall also include members of an affiliated group as defined
by Section 1504 of the Internal Revenue Code, 26 U.S.C., Section
1504. Beginning July 1, 2012, sales of machinery, tools, supplies,
equipment and related tangible personal property and services used or
consumed in the repair, remodeling or maintenance of aircraft,
aircraft engines, or aircraft component parts which occur at a
qualified aircraft maintenance facility;
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21. Sales of machinery and equipment purchased and used by
persons and establishments primarily engaged in computer services and
data processing:
a. as defined under Industrial Group Numbers 7372 and 7373
of the Standard Industrial Classification (SIC) Manual,
latest version, which derive at least fifty percent
(50%) of their annual gross revenues from the sale of a
product or service to an out-of-state buyer or
consumer, and
b. as defined under Industrial Group Number 7374 of the
SIC Manual, latest version, which derive at least
eighty percent (80%) of their annual gross revenues
from the sale of a product or service to an out-of-
state buyer or consumer.
Eligibility for the exemption set out in this paragraph shall be
established, subject to review by the Tax Commission, by annually
filing an affidavit with the Tax Commission stating that the facility
so qualifies and such information as required by the Tax Commission.
For purposes of determining whether annual gross revenues are derived
from sales to out-of-state buyers or consumers, all sales to the
federal government shall be considered to be to an out-of-state buyer
or consumer;
22. Sales of prosthetic devices to an individual for use by such
individual. For purposes of this paragraph, "prosthetic device"
shall have the same meaning as provided in Section 1357.6 of this
title, but shall not include corrective eye glasses, contact lenses
or hearing aids;
23. Sales of tangible personal property or services to a motion
picture or television production company to be used or consumed in
connection with an eligible production. For purposes of this
paragraph, "eligible production" means a documentary, special, music
video, or a television commercial or television program that will
serve as a pilot for or be a segment of an ongoing dramatic or
situation comedy series filmed or taped for network or national or
regional syndication or a feature-length motion picture intended for
theatrical release or for network or national or regional syndication
or broadcast. The provisions of this paragraph shall apply to sales
occurring on or after July 1, 1996. In order to qualify for the
exemption, the motion picture or television production company shall
file any documentation and information required to be submitted
pursuant to rules promulgated by the Tax Commission;
24. Sales of diesel fuel sold for consumption by commercial
vessels, barges and other commercial watercraft;
25. Sales of tangible personal property or services to tax-
exempt independent nonprofit biomedical research foundations that
provide educational programs for Oklahoma science students and
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teachers and to tax-exempt independent nonprofit community blood
banks headquartered in this state;
26. Effective May 6, 1992, sales of wireless telecommunications
equipment to a vendor who subsequently transfers the equipment at no
charge or for a discounted charge to a consumer as part of a
promotional package or as an inducement to commence or continue a
contract for wireless telecommunications services;
27. Effective January 1, 1991, leases of rail transportation
cars to haul coal to coal-fired plants located in this state which
generate electric power;
28. Beginning July 1, 2005, sales of aircraft engine repairs,
modification, and replacement parts, sales of aircraft frame repairs
and modification, aircraft interior modification, and paint, and
sales of services employed in the repair, modification and
replacement of parts of aircraft engines, aircraft frame and interior
repair and modification, and paint;
29. Sales of materials and supplies to the owner or operator of
a ship, motor vessel or barge that is used in interstate or
international commerce if the materials and supplies:
a. are loaded on the ship, motor vessel or barge and used
in the maintenance and operation of the ship, motor
vessel or barge, or
b. enter into and become component parts of the ship,
motor vessel or barge;
30. Sales of tangible personal property made at estate sales at
which such property is offered for sale on the premises of the former
residence of the decedent by a person who is not required to be
licensed pursuant to the Transient Merchant Licensing Act, or who is
not otherwise required to obtain a sales tax permit for the sale of
such property pursuant to the provisions of Section 1364 of this
title; provided:
a. such sale or event may not be held for a period
exceeding three (3) consecutive days,
b. the sale must be conducted within six (6) months of the
date of death of the decedent, and
c. the exemption allowed by this paragraph shall not be
allowed for property that was not part of the
decedent's estate;
31. Beginning January 1, 2004, sales of electricity and
associated delivery and transmission services, when sold exclusively
for use by an oil and gas operator for reservoir dewatering projects
and associated operations commencing on or after July 1, 2003, in
which the initial water-to-oil ratio is greater than or equal to
five-to-one water-to-oil, and such oil and gas development projects
have been classified by the Corporation Commission as a reservoir
dewatering unit;
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32. Sales of prewritten computer software that is delivered
electronically. For purposes of this paragraph, "delivered
electronically" means delivered to the purchaser by means other than
tangible storage media;
33. Sales of modular dwelling units when built at a production
facility and moved in whole or in parts, to be assembled on-site, and
permanently affixed to the real property and used for residential or
commercial purposes. The exemption provided by this paragraph shall
equal forty-five percent (45%) of the total sales price of the
modular dwelling unit. For purposes of this paragraph, "modular
dwelling unit" means a structure that is not subject to the motor
vehicle excise tax imposed pursuant to Section 2103 of this title;
34. Sales of tangible personal property or services to:
a. persons who are residents of Oklahoma and have been
honorably discharged from active service in any branch
of the Armed Forces of the United States or Oklahoma
National Guard and who have been certified by the
United States Department of Veterans Affairs or its
successor to be in receipt of disability compensation
at the one-hundred-percent rate and the disability
shall be permanent and have been sustained through
military action or accident or resulting from disease
contracted while in such active service and registered
with the veterans registry created by the Oklahoma
Department of Veterans Affairs; provided, that if the
veteran has previously received the sales tax exemption
pursuant to this subparagraph, no registration with the
veterans registry shall be required, or
b. the surviving spouse of the person in subparagraph a of
this paragraph if the person is deceased and the spouse
has not remarried. Sales for the benefit of an
eligible person to a spouse of the eligible person or
to a member of the household in which the eligible
person resides and who is authorized to make purchases
on the person's behalf, when such eligible person is
not present at the sale, shall also be exempt for
purposes of this paragraph. The Oklahoma Tax
Commission shall issue a separate exemption card to a
spouse of an eligible person or to a member of the
household in which the eligible person resides who is
authorized to make purchases on the person's behalf, if
requested by the eligible person. Sales qualifying for
the exemption authorized by this paragraph shall not
exceed Twenty-five Thousand Dollars ($25,000.00) per
year per individual while the disabled veteran is
living. Sales qualifying for the exemption authorized
by this paragraph shall not exceed One Thousand Dollars
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($1,000.00) per year for an unremarried surviving
spouse. Upon request of the Tax Commission, a person
asserting or claiming the exemption authorized by this
paragraph shall provide a statement, executed under
oath, that the total sales amounts for which the
exemption is applicable have not exceeded Twenty-five
Thousand Dollars ($25,000.00) per year per living
disabled veteran or One Thousand Dollars ($1,000.00)
per year for an unremarried surviving spouse. If the
amount of such exempt sales exceeds such amount, the
sales tax in excess of the authorized amount shall be
treated as a direct sales tax liability and may be
recovered by the Tax Commission in the same manner
provided by law for other taxes, including penalty and
interest. The Tax Commission shall promulgate any
rules necessary to implement the provisions of this
section;
35. Sales of electricity to the operator, specifically
designated by the Corporation Commission, of a spacing unit or lease
from which oil is produced or attempted to be produced using enhanced
recovery methods, including, but not limited to, increased pressure
in a producing formation through the use of water or saltwater if the
electrical usage is associated with and necessary for the operation
of equipment required to inject or circulate fluids in a producing
formation for the purpose of forcing oil or petroleum into a wellbore
for eventual recovery and production from the wellhead. In order to
be eligible for the sales tax exemption authorized by this paragraph,
the total content of oil recovered after the use of enhanced recovery
methods shall not exceed one percent (1%) by volume. The exemption
authorized by this paragraph shall be applicable only to the state
sales tax rate and shall not be applicable to any county or municipal
sales tax rate;
36. Sales of intrastate charter and tour bus transportation. As
used in this paragraph, "intrastate charter and tour bus
transportation" means the transportation of persons from one location
in this state to another location in this state in a motor vehicle
which has been constructed in such a manner that it may lawfully
carry more than eighteen persons, and which is ordinarily used or
rented to carry persons for compensation. Provided, this exemption
shall not apply to regularly scheduled bus transportation for the
general public;
37. Sales of vitamins, minerals and dietary supplements by a
licensed chiropractor to a person who is the patient of such
chiropractor at the physical location where the chiropractor provides
chiropractic care or services to such patient. The provisions of
this paragraph shall not be applicable to any drug, medicine or
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substance for which a prescription by a licensed physician is
required;
38. Sales of goods, wares, merchandise, tangible personal
property, machinery and equipment to a web search portal located in
this state which derives at least eighty percent (80%) of its annual
gross revenue from the sale of a product or service to an out-of-
state buyer or consumer. For purposes of this paragraph, "web search
portal" means an establishment classified under NAICS code 519130
which operates websites that use a search engine to generate and
maintain extensive databases of Internet addresses and content in an
easily searchable format;
39. Sales of tangible personal property consumed or incorporated
in the construction or expansion of a facility for a corporation
organized under Section 437 et seq. of Title 18 of the Oklahoma
Statutes as a rural electric cooperative. For purposes of this
paragraph, sales made to a contractor or subcontractor that has
previously entered into a contractual relationship with a rural
electric cooperative for construction or expansion of a facility
shall be considered sales made to a rural electric cooperative;
40. Sales of tangible personal property or services to a
business primarily engaged in the repair of consumer electronic
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, 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 authorized by this paragraph directly to
retail consumers or if the devices are sold to another business
entity for sale to retail consumers;
41. Before July 1, 2019, sales of rolling stock when sold or
leased by the manufacturer, regardless of whether the purchaser is a
public services corporation engaged in business as a common carrier
of property or passengers by railway, for use or consumption by a
common carrier directly in the rendition of public service. For
purposes of this paragraph, "rolling stock" means locomotives,
autocars and railroad cars; and
42. Sales of gold, silver, platinum, palladium or other bullion
items such as coins and bars and legal tender of any nation, which
legal tender is sold according to its value as precious metal or as
an investment. As used in the paragraph, "bullion" means any
precious metal, including, but not limited to, gold, silver, platinum
and palladium, that is in such a state or condition that its value
depends upon its precious metal content and not its form. The
exemption authorized by this paragraph shall not apply to fabricated
metals that have been processed or manufactured for artistic use or
as jewelry.
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Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1981, c. 351, § 1, operative Jan. 1, 1982; Laws 1985, c. 161,
§ 2, eff. July 1, 1985; Laws 1987, c. 7, § 1, operative Sept. 30,
1987; Laws 1988, c. 142, § 3, emerg. eff. April 25, 1988; Laws 1988,
c. 190, § 1, eff. June 1, 1988; Laws 1989, c. 167, § 5, eff. July 1,
1989; Laws 1990, c. 280, § 2, emerg. eff. May 25, 1990; Laws 1991,
1st Ex. Sess., c. 1, § 4, emerg. eff. Jan. 18, 1991; Laws 1991, 1st
Ex. Sess., c. 2, § 4, emerg. eff. Jan. 18, 1991; Laws 1991, c. 342, §
15, emerg. eff. June 15, 1991; Laws 1992, c. 383, § 2, emerg. eff.
June 9, 1992; Laws 1993, c. 53, § 1, eff. July 1, 1993; Laws 1993, c.
275, § 11, eff. July 1, 1993; Laws 1994, c. 2, § 23, emerg. eff.
March 2, 1994; Laws 1994, c. 278, § 15, eff. Sept. 1, 1994; Laws
1995, c. 337, § 5, emerg. eff. June 9, 1995; Laws 1996, c. 342, § 3,
eff. July 1, 1996; Laws 1997, c. 2, § 16, emerg. eff. Feb. 26, 1997;
Laws 1997, c. 190, § 2, eff. July 1, 1997; Laws 1997, c. 294, § 16,
eff. July 1, 1997; Laws 1998, c. 5, § 22, emerg. eff. March 4, 1998;
Laws 1998, c. 301, § 5, eff. Nov. 1, 1998; Laws 1999, c. 163, § 1,
emerg. eff. May 17, 1999; Laws 1999, c. 390, § 9, emerg. eff. June 8,
1999; Laws 2000, c. 6, § 15, emerg. eff. March 20, 2000; Laws 2000,
c. 337, § 2, eff. July 1, 2000; Laws 2001, c. 402, § 1, eff. July 1,
2001; Laws 2002, c. 22, § 26, emerg. eff. March 8, 2002; Laws 2002,
c. 163, § 1, eff. July 1, 2002; Laws 2002, c. 385, § 1, eff. July 1,
2002; Laws 2003, c. 3, § 63, emerg. eff. March 19, 2003; Laws 2003,
c. 413, § 9, eff. Nov. 1, 2003; Laws 2004, c. 535, § 8, eff. Nov. 1,
2004; Laws 2005, c. 381, § 9, eff. July 1, 2005; Laws 2006, c. 16, §
58, emerg. eff. March 29, 2006; Laws 2006, 2nd Ex. Sess., c. 44, § 5,
eff. July 1, 2007; Laws 2007, c. 155, § 9, eff. Nov. 1, 2007; Laws
2007, c. 253, § 1, eff. July 1, 2007; Laws 2008, c. 436, § 3, eff.
July 1, 2009; Laws 2009, c. 2, § 26, eff. July 1, 2009; Laws 2010, c.
419, § 5, eff. Nov. 1, 2010; Laws 2012, c. 230, § 2, emerg. eff. May
9, 2012; Laws 2013, c. 15, § 82, emerg. eff. April 8, 2013; Laws
2013, c. 364, § 1, eff. Nov. 1, 2013; Laws 2014, c. 401, § 2; Laws
2015, c. 54, § 18, emerg. eff. April 10, 2015; Laws 2017, c. 229, §
10, eff. Nov. 1, 2020.
NOTE: Laws 1991, c. 337, § 2 repealed by Laws 1992, c. 383, § 4,
emerg. eff. June 9, 1992. Laws 1993, c. 246, § 2 repealed by Laws
1994, c. 2, § 34, emerg. eff. March 2, 1994. Laws 1996, c. 289, § 2
repealed by Laws 1997, c. 2, § 26, emerg. eff. Feb. 26, 1997. Laws
1997, c. 252, § 2 repealed by Laws 1998, c. 5, § 29, emerg. eff.
March 4, 1998. Laws 1999, c. 243, § 1 and Laws 1999, c. 329, § 1
repealed by Laws 2000, c. 6, § 33, emerg. eff. March 20, 2000. Laws
2001, c. 358, § 15 repealed by Laws 2002, c. 22, § 34, emerg. eff.
March 8, 2002. Laws 2002, c. 382, § 2 repealed by Laws 2003, c. 3, §
64, emerg. eff. March 19, 2003. Laws 2005, c. 293, § 1 repealed by
Laws 2006, c. 16, § 59, emerg. eff. March 29, 2006. Laws 2005, c.
295, § 1 repealed by Laws 2006, c. 16, § 60, emerg. eff. March 29,
2006. Laws 2005, c. 383, § 1 repealed by Laws 2006, c. 16, § 61,
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emerg. eff. March 29, 2006. Laws 2005, c. 479, § 14 repealed by Laws
2006, c. 16, § 62, emerg. eff. March 29, 2006. Laws 2006, c. 281, §
28 repealed by Laws 2006, 2nd Ex.Sess., c. 44, § 6, eff. July 1,
2007. Laws 2006, c. 272, § 1 repealed by Laws 2006, 2nd Ex.Sess., c.
44, § 7, eff. July 1, 2007. Laws 2007, c. 143, § 1 repealed by Laws
2007, c. 253, § 2, eff. July 1, 2007. Laws 2008, c. 406, § 1
repealed by Laws 2009, c. 2, § 27, eff. July 1, 2009. Laws 2012, c.
233, § 1 repealed by Laws 2013, c. 15, § 83, emerg. eff. April 8,
2013. Laws 2014, c. 358, § 1 repealed by Laws 2015, C. 54, § 19,
emerg. eff. April 10, 2015. Laws 2014, c. 429, § 2 repealed by Laws
2015, c. 54, § 20, emerg. eff. April 10, 2015.
§68-1358. Exemptions - Agriculture.
Exemptions – Agriculture.
A. There are hereby specifically exempted from the tax levied by
Section 1350 et seq. of this title:
1. Sales of agricultural products produced in this state by the
producer thereof directly to the consumer or user when such articles
are sold at or from a farm and not from some other place of business,
as follows:
a. farm, orchard or garden products, and
b. dairy products sold by a dairy producer or farmer who
owns all the cows from which the dairy products offered
for sale are produced;
provided, the provisions of this paragraph shall not be construed as
exempting sales by florists, nursery operators or chicken hatcheries,
or sales of dairy products by any other business except as set out
herein;
2. Livestock, including cattle, horses, mules or other domestic
or draft animals, sold by the producer by private treaty or at a
special livestock sale;
3. Sale of baby chicks, turkey poults and starter pullets used
in the commercial production of chickens, turkeys and eggs, provided
that the purchaser certifies, in writing, on the copy of the invoice
or sales ticket to be retained by the vendor that the pullets will be
used primarily for egg production;
4. Sale of salt, grains, tankage, oyster shells, mineral
supplements, limestone and other generally recognized animal feeds
for the following purposes and subject to the following limitations:
a. feed which is fed to poultry and livestock, including
breeding stock and wool-bearing stock, for the purpose
of producing eggs, poultry, milk or meat for human
consumption,
b. feed purchased in Oklahoma for the purpose of being fed
to and which is fed by the purchaser to horses, mules
or other domestic or draft animals used directly in the
producing and marketing of agricultural products, and
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c. any stock tonics, water purifying products, stock
sprays, disinfectants or other such agricultural
supplies.
“Poultry” shall not be construed to include any fowl other than
domestic fowl kept and raised for the market or production of eggs.
“Livestock” shall not be construed to include any pet animals such as
dogs, cats, birds or such other fur-bearing animals. This exemption
shall only be granted and extended where the purchaser of feed that
is to be used and in fact is used for a purpose that would bring
about an exemption hereunder executes an invoice or sales ticket in
duplicate on a form to be prescribed by the Oklahoma Tax Commission.
The purchaser may demand and receive a copy of the invoice or sales
ticket and the vendor shall retain a copy;
5. Sales of items to be and in fact used in the production of
agricultural products. Sale of the following items shall be subject
to the following limitations:
a. sales of agricultural fertilizer to any person
regularly engaged, for profit, in the business of
farming or ranching,
b. sales of agricultural fertilizer to any person engaged
in the business of applying such materials on a
contract or custom basis to land owned or leased and
operated by persons regularly engaged, for profit, in
the business of farming or ranching. In addition to
providing the vendor proof of eligibility as provided
in Section 1358.1 of this title, the purchaser shall
provide the name or names of such owner or lessee and
operator and the location of the lands on which said
materials are to be applied to each such land,
c. sales of agricultural fertilizer, pharmaceuticals and
biologicals to persons engaged in the business of
applying such materials on a contract or custom basis
shall not be considered to be sales to contractors
under this article, and said sales shall not be
considered to be taxable sales within the meaning of
the Oklahoma Sales Tax Code. As used in this section,
"agricultural fertilizer", "pharmaceuticals" and
"biologicals" mean any substance sold and used for soil
enrichment or soil corrective purposes or for promoting
the growth and productivity of plants or animals,
d. sales of agricultural seed or plants to any person
regularly engaged, for profit, in the business of
farming or ranching. This section shall not be
construed as exempting from sales tax, seed which is
packaged and sold for use in noncommercial flower and
vegetable gardens, and
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e. sales of agricultural chemical pesticides to any person
regularly engaged, for profit, in the business of
farming or ranching. For the purposes of this
subparagraph, "agricultural chemical pesticides" shall
include any substance or mixture of substances intended
for preventing, destroying, repelling or mitigating any
insect, snail, slug, rodent, bird, nematode, fungus,
weed or any other form of terrestrial or aquatic plant
or animal life or virus, bacteria or other
microorganism, except viruses, bacteria or other
microorganisms on or in living man, or any substance or
mixture of substances intended for use as a plant
regulator, defoliant or desiccant.
The exemption provided in this paragraph shall only be granted
and extended to the purchaser where the items are to be used and in
fact are used in the production of agricultural products;
6. Sale of farm machinery, repair parts thereto or fuel, oil,
lubricants and other substances used for operation and maintenance of
the farm machinery to be used directly on a farm or ranch in the
production, cultivation, planting, sowing, harvesting, processing,
spraying, preservation or irrigation of any livestock, poultry,
agricultural or dairy products produced from such lands. The
exemption specified in this paragraph shall apply to such farm
machinery, repair parts or fuel, oil, lubricants and other substances
used by persons engaged in the business of custom production,
cultivation, planting, sowing, harvesting, processing, spraying,
preservation, or irrigation of any livestock, poultry, agricultural,
or dairy products for farmers or ranchers. The exemption provided
for herein shall not apply to motor vehicles;
7. Sales of supplies, machinery and equipment to persons
regularly engaged in the business of raising evergreen trees for
retail sale in which such trees are cut down on the premises by the
consumer purchasing such tree. This exemption shall only be granted
and extended when the items in fact are used in the raising of such
evergreen trees; and
8. Sales of materials, supplies and equipment to an agricultural
permit holder or to any person with whom the permit holder has
contracted to construct facilities which are or which will be used
directly in the production of any livestock, including, but not
limited to, facilities used in the production and storage of feed for
livestock owned by the permit holder. Any person making purchases on
behalf of the agricultural permit holder shall certify, in writing,
on the copy of the invoice or sales ticket to be retained by the
vendor that the purchases are made for and on behalf of such permit
holder and set out the name and permit number of such holder. Any
person who wrongfully or erroneously certifies that purchases are for
an agricultural permit holder or who otherwise violates this
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subsection shall be guilty of a misdemeanor and upon conviction
thereof shall be punishable by a fine of an amount equal to double
the amount of sales tax involved or imprisonment in the county jail
for not more than sixty (60) days or by both such fine and
imprisonment.
B. As used in this section and Section 1358.1 of this title:
1. “Agricultural products” shall include horses; and
2. “Ranching” or “ranch” shall include the business, or
facilities for the business, of raising horses.
Provided, sales of items at race meetings as defined in Section
200.1 of Title 3A of the Oklahoma Statutes shall not be exempt
pursuant to the provisions of this section and Section 1358.1 of this
title.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1984, c. 195, § 1, eff. Jan. 1, 1985; Laws 1985, c. 177, § 2,
eff. Jan. 1, 1986; Laws 1989, c. 249, § 25, eff. July 1, 1989; Laws
1992, c. 70, § 1, eff. July 1, 1993; Laws 1995, c. 337, § 6, emerg.
eff. June 9, 1995; Laws 1999, c. 390, § 10, emerg. eff. June 8, 1999.
§68-1358.1. Exemptions - Agriculture - Proof of eligibility.
A. In order to qualify for any exemption authorized by Section
1358 of this title, at the time of sale, the person to whom the sale
is made shall be required to furnish the vendor proof of eligibility
for the exemption as required by this section.
B. All vendors shall honor the proof of eligibility for sales
tax exemption as authorized by this section and sales to a person
providing such proof shall be exempt from the tax levied by this
article, Section 1350 et seq. of this title.
C. The agricultural exemption permit, the size and design of
which shall be prescribed by the Oklahoma Tax Commission, shall
constitute proof of eligibility for sales tax exemptions authorized
by Section 1358 of this title. The permit shall be obtained by
listing personal property used in farming or ranching by the person
with the county assessor each year as provided by law. If the
assessor determines that the personal property is correctly listed
and assessed for ad valorem taxation and the county treasurer
certifies whether the person has delinquent accounts appearing on the
personal property tax lien docket in the county treasurer's office,
the assessor shall certify the assessment upon a form prescribed by
the Oklahoma Tax Commission. One copy shall be retained by the
assessor, one copy shall be forwarded to the Oklahoma Tax Commission
and one copy shall be given to the person listing the personal
property. Upon verification that the applicant qualifies for the
exemptions authorized by Section 1358 of this title and that the
applicant has no delinquent accounts appearing on the personal
property tax lien docket in the office of the county treasurer, a
permit shall be issued as prescribed by this section. The permit
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shall be renewable every three (3) years in the manner provided by
this section.
D. A person who does not otherwise qualify for a permit pursuant
to subsection C of this section, except as provided in subsection E
of this section, shall file with the Oklahoma Tax Commission an
application for an agricultural exemption permit constituting proof
of eligibility for the sales tax exemptions authorized by Section
1358 of this title, setting forth such information as the Tax
Commission may require. The application shall be certified by the
applicant that the applicant is engaged in custom farming operations
or in the business of farming or ranching. If the applicant is a
corporation, the application shall be certified by a legally
constituted officer thereof.
E. Except as provided in this subsection, for a person who is a
resident of another state and who is engaged in custom farming
operations in this state, the person shall provide the vendor proof
of residency, the name, address and telephone number of the person
engaging the custom farmer and certification on the face of the
invoice, under the penalty of perjury, that the property purchased
shall be used in agricultural production as proof of eligibility for
the sales tax exemption authorized by Section 1358 of this title.
Any person who is a resident of another state and who is engaged in
custom farming operations in this state and who owns property in this
state, shall obtain proof of eligibility as provided in subsection C
or D of this section.
F. If an agricultural exemption permit holder purchases tangible
personal property from a vendor on a regular basis, the permit holder
may furnish the vendor proof of eligibility as provided for in
subsections C and D of this section and the vendor may subsequently
make sales of tangible personal property to the permit holder without
requiring proof of eligibility for each subsequent sale. Provided,
the permit holder shall notify the vendor of all purchases which are
not exempt from sales tax under the provisions of Section 1358 of
this title and remit the applicable amount of tax thereon. If the
permit holder fails to notify the vendor of purchases not exempt from
sales tax, then sufficient grounds shall exist for the Oklahoma Tax
Commission to cancel the agricultural exemption permit of the permit
holder who so failed to notify the vendor.
G. If an out-of-state agricultural exemption permit holder
purchases tangible personal property from a vendor within this state
who is not in the business of shipping the tangible personal property
purchased, then the out-of-state agricultural exemption permit holder
is responsible for providing an export bill of lading or other
documentation to the vendor from whom the tangible personal property
was purchased showing that the point of delivery of such goods for
use and consumption is outside the State of Oklahoma.
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H. A purchaser who uses an agricultural exemption permit or
provides proof of eligibility pursuant to subsection E of this
section to purchase, exempt from sales tax, items not authorized for
exemption under Section 1358 of this title shall be subject to a
penalty in the amount of Five Hundred Dollars ($500.00).
Added by Laws 1988, c. 146, § 3, operative Nov. 1, 1988. Amended by
Laws 1992, c. 70, § 2, eff. July 1, 1993; Laws 1995, c. 182, § 1,
eff. Nov. 1, 1995; Laws 1997, c. 294, § 17, eff. July 1, 1997; Laws
1998, c. 403, § 3, emerg. eff. June 10, 1998; Laws 1999, c. 1, § 20,
emerg. eff. Feb. 24, 1999; Laws 2007, c. 353, § 6, eff. Nov. 1, 2007.
NOTE: Laws 1998, c. 300, § 2 repealed by Laws 1999, c. 1, § 45,
emerg. eff. Feb. 24, 1999.
§68-1359. Exemptions - Manufacturing
Exemptions - Manufacturing.
There are hereby specifically exempted from the tax levied by
Section 1350 et seq. of this title:
1. Sales of goods, wares, merchandise, tangible personal
property, machinery and equipment to a manufacturer for use in a
manufacturing operation. Goods, wares, merchandise, property,
machinery and equipment used in a nonmanufacturing activity or
process as set forth in paragraph 14 of Section 1352 of this title
shall not be eligible for the exemption provided for in this
subsection by virtue of the activity or process being performed in
conjunction with or integrated into a manufacturing operation.
For the purposes of this paragraph, sales made to any person,
firm or entity that has entered into a contractual relationship for
the construction and improvement of manufacturing goods, wares,
merchandise, property, machinery and equipment for use in a
manufacturing operation shall be considered sales made to a
manufacturer which is defined or classified in the North American
Industry Classification System (NAICS) Manual under Industry Group
No. 324110. Such purchase shall be evidenced by a copy of the sales
ticket or invoice to be retained by the vendor indicating that the
purchases are made for and on behalf of such manufacturer and set out
the name of such manufacturer as well as include a copy of the
Manufacturing Exemption Permit of the manufacturer. Any person who
wrongfully or erroneously certifies that purchases are being made on
behalf of such manufacturer or who otherwise violates this paragraph
shall be guilty of a misdemeanor and upon conviction thereof shall be
fined an amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) days or both;
2. Ethyl alcohol when sold and used for the purpose of blending
same with motor fuel on which motor fuel tax is levied by Section
500.4 of this title;
3. Sales of containers when sold to a person regularly engaged
in the business of reselling empty or filled containers or when
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purchased for the purpose of packaging raw products of farm, garden,
or orchard for resale to the consumer or processor. This exemption
shall not apply to the sale of any containers used more than once and
which are ordinarily known as returnable containers, except
returnable soft drink bottles and the cartons, crates, pallets, and
containers used to transport returnable soft drink bottles. Each and
every transfer of title or possession of such returnable containers
in this state to any person who is not regularly engaged in the
business of selling, reselling or otherwise transferring empty or
filled containers shall be taxable under this Code. Additionally,
this exemption shall not apply to the sale of labels or other
materials delivered along with items sold but which are not necessary
or absolutely essential to the sale of the sold merchandise;
4. Sales of or transfers of title to or possession of any
containers, after June 30, 1987, used or to be used more than once
and which are ordinarily known as returnable containers and which do
or will contain beverages defined by paragraphs 4 and 14 of Section
506 of Title 37 of the Oklahoma Statutes, or water for human
consumption and the cartons, crates, pallets, and containers used to
transport such returnable containers;
5. Sale of tangible personal property when sold by the
manufacturer to a person who transports it to a state other than
Oklahoma for immediate and exclusive use in a state other than
Oklahoma. Provided, no sales at a retail outlet shall qualify for
the exemption under this paragraph;
6. Machinery, equipment, fuels and chemicals or other materials
incorporated into and directly used or consumed in the process of
treatment to substantially reduce the volume or harmful properties of
hazardous waste at treatment facilities specifically permitted
pursuant to the Oklahoma Hazardous Waste Management Act and operated
at the place of waste generation, or facilities approved by the
Department of Environmental Quality for the cleanup of a site of
contamination. The term "hazardous" waste may include low-level
radioactive waste for the purpose of this paragraph;
7. Except as otherwise provided by subsection I of Section 3658
of this title pursuant to which the exemption authorized by this
paragraph may not be claimed, sales of tangible personal property to
a qualified manufacturer or distributor to be consumed or
incorporated in a new manufacturing or distribution facility or to
expand an existing manufacturing or distribution facility. For
purposes of this paragraph, sales made to a contractor or
subcontractor that has previously entered into a contractual
relationship with a qualified manufacturer or distributor for
construction or expansion of a manufacturing or distribution facility
shall be considered sales made to a qualified manufacturer or
distributor. For the purposes of this paragraph, "qualified
manufacturer or distributor" means:
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a. any manufacturing enterprise whose total cost of
construction of a new or expanded facility exceeds the
sum of Five Million Dollars ($5,000,000.00) and in
which at least one hundred (100) new full-time-
equivalent employees, as certified by the Oklahoma
Employment Security Commission, are added and
maintained for a period of at least thirty-six (36)
months as a direct result of the new or expanded
facility,
b. any manufacturing enterprise whose total cost of
construction of a new or expanded facility exceeds the
sum of Ten Million Dollars ($10,000,000.00) and the
combined cost of construction material, machinery,
equipment and other tangible personal property exempt
from sales tax under the provisions of this paragraph
exceeds the sum of Fifty Million Dollars
($50,000,000.00) and in which at least seventy-five
(75) new full-time-equivalent employees, as certified
by the Oklahoma Employment Security Commission, are
added and maintained for a period of at least thirty-
six (36) months as a direct result of the new or
expanded facility,
c. any manufacturing enterprise whose total cost of
construction of an expanded facility exceeds the sum of
Three Hundred Million Dollars ($300,000,000.00) and in
which the manufacturer has and maintains an average
employment level of at least one thousand seven hundred
fifty (1,750) full-time-equivalent employees, as
certified by the Employment Security Commission, or
d. any enterprise primarily engaged in the general
wholesale distribution of groceries defined or
classified in the North American Industry
Classification System (NAICS) Manual under Industry
Groups No. 4244 and 4245 and which has at least
seventy-five percent (75%) of its total sales to in-
state customers or buyers and whose total cost of
construction of a new or expanded facility exceeds the
sum of Forty Million Dollars ($40,000,000.00) with such
construction commencing on or after July 1, 2005, and
before December 31, 2005, and which at least fifty new
full-time-equivalent employees, as certified by the
Oklahoma Employment Security Commission, are added and
maintained for a period of at least thirty-six (36)
months as a direct result of the new or expanded
facility.
For purposes of this paragraph, the total cost of construction
shall include building and construction material and engineering and
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architectural fees or charges directly associated with the
construction of a new or expanded facility. The total cost of
construction shall not include attorney fees. For purposes of
subparagraph c of this paragraph, the total cost of construction
shall also include the cost of qualified depreciable property as
defined in Section 2357.4 of this title and labor services performed
in the construction of an expanded facility. For the purpose of
subparagraph d of this paragraph, the total cost of construction
shall also include the cost of all parking, security and dock
structures or facilities necessary to manage, process or secure
vehicles used to receive and/or distribute groceries through such a
facility. The employment requirement of this paragraph can be
satisfied by the employment of a portion of the required number of
new full-time-equivalent employees at a manufacturing or distribution
facility that is related to or supported by the new or expanded
manufacturing or distribution facility as long as both facilities are
owned by one person or business entity. For purposes of this
section, "manufacturing facility" shall mean building and land
improvements used in manufacturing as defined in Section 1352 of this
title and shall also mean building and land improvements used for the
purpose of packing, repackaging, labeling or assembling for
distribution to market, products at least seventy percent (70%) of
which are made in Oklahoma by the same company but at an off-site,
in-state manufacturing or distribution facility or facilities. It
shall not include a retail outlet unless the retail outlet is
operated in conjunction with and on the same site or premises as the
manufacturing facility. Up to ten percent (10%) of the square feet
of a manufacturing or distribution facility building may be devoted
to office space used to provide clerical support for the
manufacturing operation. Such ten percent (10%) may be in a separate
building as long as it is part of the same contiguous tract of
property on which the manufacturing or distribution facility is
located. Only sales of tangible personal property made after June 1,
1988, shall be eligible for the exemption provided by this paragraph.
The exemption authorized pursuant to subparagraph d of this paragraph
shall only become effective when the governing body of the
municipality in which the enterprise is located approves a resolution
expressing the municipality's support for the construction for such
new or expanded facility. Upon approval by the municipality, the
municipality shall forward a copy of such resolution to the Oklahoma
Tax Commission;
8. Sales of tangible personal property purchased and used by a
licensed radio or television station in broadcasting. This exemption
shall not apply unless such machinery and equipment is used directly
in the manufacturing process, is necessary for the proper production
of a broadcast signal or is such that the failure of the machinery or
equipment to operate would cause broadcasting to cease. This
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exemption begins with the equipment used in producing live
programming or the electronic equipment directly behind the satellite
receiving dish or antenna, and ends with the transmission of the
broadcast signal from the broadcast antenna system. For purposes of
this paragraph, "proper production" shall include, but not be limited
to, machinery or equipment required by Federal Communications
Commission rules and regulations;
9. Sales of tangible personal property purchased or used by a
licensed cable television operator in cablecasting. This exemption
shall not apply unless such machinery and equipment is used directly
in the manufacturing process, is necessary for the proper production
of a cablecast signal or is such that the failure of the machinery or
equipment to operate would cause cablecasting to cease. This
exemption begins with the equipment used in producing local
programming or the electronic equipment behind the satellite
receiving dish, microwave tower or antenna, and ends with the
transmission of the signal from the cablecast head-end system. For
purposes of this paragraph, "proper production" shall include, but
not be limited to, machinery or equipment required by Federal
Communications Commission rules and regulations;
10. Sales of packaging materials for use in packing, shipping or
delivering tangible personal property for sale when sold to a
producer of agricultural products. This exemption shall not apply to
the sale of any packaging material which is ordinarily known as a
returnable container;
11. Sales of any pattern used in the process of manufacturing
iron, steel or other metal castings. The exemption provided by this
paragraph shall be applicable irrespective of ownership of the
pattern provided that such pattern is used in the commercial
production of metal castings;
12. Deposits or other charges made and which are subsequently
refunded for returnable cartons, crates, pallets, and containers used
to transport cement and cement products;
13. Beginning January 1, 1998, machinery, electricity, fuels,
explosives and materials, excluding chemicals, used in the mining of
coal in this state;
14. Deposits, rent or other charges made for returnable cartons,
crates, pallets, and containers used to transport mushrooms or
mushroom products from a farm for resale to the consumer or
processor;
15. Sales of tangible personal property and services used or
consumed in all phases of the extraction and manufacturing of crushed
stone and sand, including but not limited to site preparation,
dredging, overburden removal, explosive placement and detonation,
onsite material hauling and/or transfer, material washing, screening
and/or crushing, product weighing and site reclamation; and
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16. Sale, use or consumption of paper stock and other raw
materials which are manufactured into commercial printed material in
this state primarily for use and delivery outside this state. For
the purposes of this section, "commercial printed material" shall
include magazines, catalogs, retail inserts and direct mail.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1983, c. 275, § 8, emerg. eff. June 24, 1983; Laws 1987, c.
203, § 154, operative July 1, 1987; Laws 1988, c. 9, § 1, operative
June 1, 1988; Laws 1988, c. 37, § 1, operative July 1, 1988; Laws
1990, c. 280, § 3, emerg. eff. May 25, 1990; Laws 1991, c. 133, § 1,
emerg. eff. April 29, 1991; Laws 1991, c. 191, § 1, emerg. eff. May
15, 1991; Laws 1991, c. 342, § 17, emerg. eff. June 15, 1991; Laws
1992, c. 189, § 1, emerg. eff. May 8, 1992; Laws 1992, c. 403, § 44,
eff. Sept. 1, 1992; Laws 1993, c. 10, § 11, emerg. eff. March 21,
1993; Laws 1994, c. 120, § 1, emerg. eff. April 28, 1994; Laws 1994,
c. 278, § 16, eff. Sept. 1, 1994; Laws 1995, c. 349, § 5, emerg. eff.
June 9, 1995; Laws 1996, c. 3, § 14, emerg. eff. March 6, 1996; Laws
1996, c. 289, § 5, eff. July 1, 1996; Laws 1997, c. 294, § 18, eff.
July 1, 1997; Laws 1997, c. 390, § 5, eff. July 1, 1997; Laws 1998,
c. 301, § 7, eff. Nov. 1, 1998; Laws 2000, c. 3, § 1, emerg. eff.
March 2, 2000; Laws 2000, c. 314, § 16, eff. July 1, 2000; Laws 2001,
c. 5, § 39, emerg. eff. March 21, 2001; Laws 2002, c. 299, § 12,
emerg. eff. May 23, 2002; Laws 2003, c. 472, § 15; Laws 2005, c. 413,
§ 1, eff. July 1, 2005; Laws 2006, c. 327, § 5, eff. July 1, 2006;
Laws 2006, 2nd Ex. Sess., c. 44, § 8, eff. July 1, 2007; Laws 2011,
c. 358, § 1; Laws 2013, c. 334, § 4, eff. July 1, 2013; Laws 2016, c.
317, § 2, eff. Nov. 1, 2016.
NOTE: Laws 1992, c. 225, § 1 repealed by Laws 1993, c. 10, § 16,
emerg. eff. March 21, 1993. Laws 1995, c. 285, § 20 repealed by Laws
1996, c. 3, § 25, emerg. eff. March 6, 1996. Laws 2000, c. 273, § 1
repealed by Laws 2001, c. 5, § 40, emerg. eff. March 21, 2001.
§68-1359.1. Manufacturers - Refund of certain state and local sales
taxes.
A. In order to administer the exemption for sales to a qualified
manufacturer or distributor as provided by Section 1359 of this
title, there shall be made a sales tax refund for state and local
sales taxes paid by qualified manufacturers or distributors for
tangible personal property purchased to be consumed or incorporated
in the construction of a new manufacturing or distribution facility
or to expand an existing manufacturing or distribution facility in
the state from the account created by this section. Provided, no
claim for a refund shall be filed by a distributor pursuant to
subparagraph d of paragraph 7 of Section 1359 of this title before
July 1, 2006.
B. The Oklahoma Tax Commission shall transfer each month from
sales tax collected the amount which the Commission estimates to be
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necessary to make the sales tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Tax
Commission. The amount of the refund shall not exceed the total
state and local sales taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified manufacturer
or distributor upon the principal amount of any refund made to such
manufacturer or distributor for purposes of administering the
exemption provided by Section 1359 of this title shall be determined
according to the amount earned as invested by the State Treasurer’s
Office. The interest rate shall accrue upon the amount transferred
to the account.
D. For purposes of this section, state and local sales taxes
paid by a contractor or subcontractor for tangible personal property
purchased by that contractor or subcontractor to be consumed or
incorporated in the construction of a new or expanded manufacturing
facility pursuant to a contract with a qualified manufacturer or
distributor shall, upon proper showing, be refunded to the qualified
manufacturer or distributor.
E. The qualified manufacturer or distributor shall file with the
Tax Commission the following documentation for any refund claimed:
1. Invoices indicating the amount of state and local sales tax
billed;
2. Affidavit of each vendor that state and local sales tax
billed has not been audited, rebated, or refunded to the qualified
manufacturer but rather the sales tax charged has been collected by
the vendor and remitted to the Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Tax Commission.
F. In the event that state and local sales tax was paid by a
contractor or subcontractor, the qualified manufacturer or
distributor shall file with the Tax Commission all documentation
required in subsection E of this section but in lieu of the affidavit
of each vendor the qualified manufacturer or distributor shall file,
for any refund claimed, an affidavit from the contractor or
subcontractor stating that the sales tax refund of the qualified
manufacturer or distributor is based on state and local sales tax
paid by the contractor or subcontractor on tangible personal property
purchased to be consumed or incorporated in the construction of a new
or expanded business activity and that the amount of state and local
sales tax claimed was paid to the vendor and no credit, refund, or
rebate has been claimed by the contractor or subcontractor.
G. Only sales of tangible personal property made after June 1,
1988, shall be eligible for the refund established by this section.
H. The qualified manufacturer or distributor shall file, within
thirty-six (36) months of the date of the first purchase which is
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exempt from taxation pursuant to the provisions of paragraph 7 of
Section 1359 of this title, with the Tax Commission a certification
issued by the Employment Security Commission in order to qualify for
the refund authorized by this section.
I. Notwithstanding the provisions of any state tax law, the
amount refunded under this section shall be assessed if the number of
full-time-equivalent employees drops below the number prescribed in
paragraph 7 of Section 1359 of this title, at any time within thirty-
six (36) months of the date certification is issued by the Oklahoma
Employment Security Commission.
Added by Laws 1988, c. 9, § 2, operative June 1, 1988. Amended by
Laws 1991, c. 133, § 2, emerg. eff. April 29, 1991; Laws 1992, c.
225, § 2, eff. July 1, 1992; Laws 2004, c. 535, § 10, eff. Nov. 1,
2004; Laws 2005, c. 413, § 2, eff. July 1, 2005.
§68-1359.2. Manufacturer exemption permit.
A. In order to qualify for the exemption authorized in paragraph
1 of Section 1359 of Title 68 of the Oklahoma Statutes, at the time
of sale, the person to whom the sale is made, provided the purchaser
is a resident of this state, shall be required to furnish the vendor
proof of eligibility for the exemption as required by this section.
All vendors shall honor the proof of eligibility for sales tax
exemption as authorized under this section, and sales to a person
providing such proof shall be exempt from the tax levied by Section
1350 et seq. of Title 68 of the Oklahoma Statutes.
B. Each resident manufacturer wishing to claim the exemption
authorized in paragraph 1 of Section 1359 of Title 68 of the Oklahoma
Statutes shall be required to secure from the Oklahoma Tax Commission
a manufacturer exemption permit, the size and design of which shall
be prescribed by the Tax Commission. This permit shall constitute
proof of eligibility for the exemption provided in paragraph 1 of
Section 1359 of Title 68 of the Oklahoma Statutes. Each such
manufacturer shall file with the Tax Commission an application for an
exemption permit, setting forth such information as the Tax
Commission may require. The application shall be signed by the owner
of the business or representative of the business entity and as a
natural person, and, in the case of a corporation, as a legally
constituted officer thereof.
C. Each manufacturer exemption permit issued shall be valid for
a period of three (3) years from the date of issuance. If a
manufacturer applying for a manufacturer exemption permit is already
the holder of a manufacturer's sales tax permit issued under Section
1364 of Title 68 of the Oklahoma Statutes at the time of initial
application, the manufacturer exemption permit shall be issued with
an expiration date which corresponds with the expiration date of the
manufacturer's sales tax permit. Thereafter, the Tax Commission
shall issue the exemption permits at the same time of issuance or
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renewal of the manufacturer's sales tax permit issued under Section
1364 of Title 68 of the Oklahoma Statutes.
D. The Tax Commission shall honor all manufacturer's limited
exemption certificates issued prior to the effective date of this
act. However, holders of such certificates shall apply for a
manufacturer exemption permit pursuant to the provisions of this
section at the same time they apply for issuance or renewal of a
manufacturer's sales tax permit.
Added by Laws 1998, c. 301, § 8, eff. Nov. 1, 1998.
§68-1360. Exemptions - Corporations - Partnerships.
Exemptions - Corporations - Partnerships.
There are hereby specifically exempted from the tax levied in
this article:
1. The transfer of tangible personal property, as follows:
a. from one corporation to another corporation pursuant to
a reorganization. As used in this subparagraph the
term "reorganization" means a statutory merger or
consolidation or the acquisition by a corporation of
substantially all of the properties of another
corporation when the consideration is solely all or a
part of the voting stock of the acquiring corporation,
or of its parent or subsidiary corporation,
b. in connection with the winding up, dissolution or
liquidation of a corporation only when there is a
distribution in kind to the shareholders of the
property of such corporation,
c. to a corporation for the purpose of organization of
such corporation where the former owners of the
property transferred are immediately after the transfer
in control of the corporation, and the value of the
stock or securities received by each is substantially
in proportion to the value of such person’s interest in
the property transferred by all the former owners,
d. to a partnership in the organization of such
partnership if the former owners of the property
transferred are, immediately after the transfer,
members of such partnership and the value of the
interest in the partnership, received by each, is
substantially in proportion to the value of such
person’s interest in the property transferred by all
former owners,
e. from a partnership to the members thereof when made in
kind in the dissolution of such partnership,
f. to a limited liability company in the organization of
the limited liability company if the former owners of
the property transferred are, immediately after the
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transfer, members of the limited liability company and
the value of the interest in the limited liability
company received by each is substantially in proportion
to the value of the interest in the property
transferred by all the former owners, and
g. from a limited liability company to the members thereof
when made in kind in the dissolution of the limited
liability company; and
2. Sale of an interest in tangible personal property to a
partner or other person who after such sale owns a joint interest in
such tangible personal property where the Oklahoma Sales or Use Tax
has previously been paid on such tangible personal property.
Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981; Laws 1993, c. 366,
§ 40, eff. Sept. 1, 1993; Laws 2007, c. 346, § 1, eff. Jan. 1, 2008.
§68-1361. Consumer to pay tax - Vendor to collect tax - Penalties
for failure to collect.
A. 1. Except as otherwise provided by subsection C of this
section, the tax levied by Section 1350 et seq. of this title shall
be paid by the consumer or user to the vendor as trustee for and on
account of this state. Except as otherwise provided by subsection C
of this section, each and every vendor in this state shall collect
from the consumer or user the full amount of the tax levied by
Section 1350 et seq. of this title, or an amount equal as nearly as
possible or practicable to the average equivalent thereof. Every
person required to collect any tax imposed by Section 1350 et seq. of
this title shall be personally liable for the tax.
2. However, the Oklahoma Tax Commission shall relieve sellers or
certified service providers that follow the requirements of this
section from the tax otherwise applicable if it is determined that
the purchaser improperly claimed an exemption and to hold the
purchaser liable for the nonpayment of tax. This relief from
liability does not apply to:
a. a seller or certified service provider (CSP) who
fraudulently fails to collect tax,
b. a seller who solicits purchasers to participate in the
unlawful claim of an exemption, or
c. a seller who accepts an exemption certificate when the
purchaser claims an entity-based exemption when:
(1) the subject of the transaction sought to be
covered by the exemption certificate is actually
received by the purchaser at a location operated
by the seller, and
(2) the Tax Commission provides an exemption
certificate that clearly and affirmatively
indicates that the claimed exemption is not
available in this state.
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3. The Tax Commission shall relieve a seller or CSP of the tax
otherwise applicable if the seller obtains a fully completed
exemption certificate or captures the relevant data elements required
by the Tax Commission within ninety (90) days subsequent to the date
of sale.
If the seller or CSP has not obtained an exemption certificate or
all relevant data elements as provided by the Tax Commission, the
seller may, within one hundred twenty (120) days subsequent to a
request for substantiation, either prove that the transaction was not
subject to tax by other means or obtain a fully completed exemption
certificate from the purchaser, taken in good faith.
The Tax Commission shall relieve a seller or CSP of the tax
otherwise applicable if it obtains a blanket exemption certificate
for a purchaser with which the seller has a recurring business
relationship. The Tax Commission shall not request from the seller
or CSP renewal of blanket certificates or updates of exemption
certificate information or data elements when there is a recurring
business relationship between the buyer and seller. For purposes of
this section, a recurring business relationship exists when a period
of no more than twelve (12) months elapses between sales
transactions.
4. Upon the granting of relief from liability to the vendor as
provided in this section, the purchaser shall be liable for the
remittance of the tax, interest and penalty due thereon and the Tax
Commission shall pursue collection thereof from the purchaser in any
manner in which sales tax may be collected from a vendor.
B. Except as otherwise provided by subsection C of this section,
vendors shall add the tax imposed by Section 1350 et seq. of this
title, or the average equivalent thereof, to the sales price, charge,
consideration, gross receipts or gross proceeds of the sale of
tangible personal property or services taxed by Section 1350 et seq.
of this title, and when added such tax shall constitute a part of
such price or charge, shall be a debt from the consumer or user to
vendor until paid, and shall be recoverable at law in the same manner
as other debts.
C. A person who has obtained a direct payment permit as provided
in Section 1364.1 of this title shall accrue all taxes imposed
pursuant to Section 1354 or 1402 of this title on all purchases made
by the person pursuant to the permit at the time the purchased items
are first used or consumed in a taxable manner and pay the accrued
tax directly to the Oklahoma Tax Commission on reports as required by
Section 1365 of this title.
D. Except as otherwise provided by subsection C of this section,
a vendor who willfully or intentionally fails, neglects or refuses to
collect the full amount of the tax levied by Section 1350 et seq. of
this title, or willfully or intentionally fails, neglects or refuses
to comply with the provisions of Section 1350 et seq. of this title,
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or remits or rebates to a consumer or user, either directly or
indirectly, and by whatsoever means, all or any part of the tax
levied by Section 1350 et seq. of this title, or makes in any form of
advertising, verbally or otherwise, any statement which implies that
the vendor is absorbing the tax, or paying the tax for the consumer
or user by an adjustment of prices or at a price including the tax,
or in any manner whatsoever, shall be deemed guilty of a misdemeanor,
and upon conviction thereof shall be fined not more than Five Hundred
Dollars ($500.00), and upon conviction for a second or other
subsequent offense shall be fined not more than One Thousand Dollars
($1,000.00), or incarcerated for not more than sixty (60) days, or
both. Provided, sales by vending machines may be made at a stated
price which includes state and any municipal sales tax.
E. A consumer or user who willfully or intentionally fails,
neglects or refuses to pay the full amount of tax levied by Section
1350 et seq. of this title or willfully or intentionally uses a sales
tax permit or direct payment permit which is invalid, expired,
revoked, canceled or otherwise limited to a specific line of business
or willfully or intentionally issues a resale certificate to a vendor
to evade the tax levied by Section 1350 et seq. of this title shall
be subject to a penalty in the amount of Five Hundred Dollars
($500.00) per reporting period upon determination thereof, which
shall be apportioned as provided for the apportionment of the tax.
F. Any sum or sums collected or accrued or required to be
collected or accrued in Section 1350 et seq. of this title shall be
deemed to be held in trust for the State of Oklahoma, and, as
trustee, the collecting vendor or holder of a direct payment permit
as provided for in Section 1364.1 of this title shall have a
fiduciary duty to the State of Oklahoma in regards to such sums and
shall be subject to the trust laws of this state.
G. Notwithstanding the provisions of this section, the sales tax
associated with the purchase of a motor vehicle shall be paid by the
consumer in the same manner and time as the motor vehicle excise tax
for said motor vehicle is due.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1985, c. 127, § 1, eff. Jan. 1, 1986; Laws 1991, c. 159, § 2,
emerg. eff. May 6, 1991; Laws 1993, c. 366, § 41, eff. Sept. 1, 1993;
Laws 1996, c. 126, § 2, eff. Nov. 1, 1996; Laws 1996, c. 288, § 5,
eff. Nov. 1, 1996; Laws 1997, c. 133, § 561, eff. July 1, 1999; Laws
2002, c. 460, § 39, eff. Nov. 1, 2002; Laws 2007, c. 155, § 11, eff.
Nov. 1, 2007; Laws 2014, c. 273, § 2, eff. Nov. 1, 2014; Laws 2017,
c. 356, § 3, eff. July 1, 2017.
NOTE: Laws 1996, c. 17, § 1 repealed by Laws 1996, c. 288, § 9, eff.
Nov. 1, 1996.
NOTE: Laws 1998, 1st Ex. Sess., c. 2, § 23 amended the effective
date of Laws 1997, c. 133, § 561 from July 1, 1998, to July 1, 1999.
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§68-1361.1. Consumer exempt from tax - Liability of vendor -
Confidentiality.
A. If a vendor, in good faith, timely accepts from a consumer
properly completed documentation certified by the Oklahoma Tax
Commission that such consumer is exempt from the taxes levied by the
Oklahoma Sales Tax Code, the vendor shall be relieved of any
liability for any sales tax or the duty to collect any sales tax
imposed by the provisions of Section 1361 of this title upon such
vendor with respect to such sale.
B. A vendor who has actual knowledge that a consumer is entitled
to an exemption under paragraph 34 of Section 1357 of this title and
who willfully or intentionally refuses to honor the exemption shall
be punished by an administrative fine of Five Hundred Dollars
($500.00) per offense. A second or subsequent violation of this
subsection shall be unlawful and constitute a misdemeanor offense
punishable by a fine of not more than Five Hundred Dollars ($500.00)
per such offense, in addition to any administrative fine. The Tax
Commission shall refer any vendor who has more than once willfully or
intentionally refused to honor the exemption, whether fined or not,
to the district attorney where the vendor is located for prosecution.
For the purposes of this subsection, “vendor” means any individual
most responsible for supervising, and the conduct of, any employee
who intentionally refuses to honor the exemption including, but not
limited to, a manager, owner, partner or corporate officer.
C. Any written communication between the Commission and any
holder of a sales tax permit that is an attempt by the Commission to
enforce the provisions of this section shall be public and,
notwithstanding any other provision of law, no presumption of
confidentiality shall exist for such communications. The Commission
shall, upon request of any consumer entitled to an exemption under
paragraph 34 of Section 1357 of this title, transmit to such consumer
copies of such communication.
Added by Laws 1991, c. 159, § 1, emerg. eff. May 6, 1991. Amended by
Laws 2006, c. 272, § 2; Laws 2010, c. 387, § 1, eff. July 1, 2010.
§68-1361.2. Disabled veterans' exemption - Proof of eligibility
required.
In order to claim the exemption authorized by paragraph 34 of
Section 1357 of Title 68 of the Oklahoma Statutes, the person to whom
the sale is made shall be required to furnish the vendor proof of
eligibility for the exemption as issued by the Oklahoma Tax
Commission. All vendors shall honor the proof of eligibility for
sales tax exemption and sales for the benefit of the disabled veteran
to a person providing such proof shall be exempt from the tax levied
pursuant to the Oklahoma Sales Tax Code.
Added by Laws 2006, c. 272, § 3.
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§68-1362. Remittance of tax - Tax brackets.
A. Except as otherwise provided by Section 1361 of this title,
the tax levied pursuant to the provisions of the Oklahoma Sales Tax
Code shall be remitted or paid to the Oklahoma Tax Commission by the
vendor of tangible personal property, services, privileges,
admissions, dues, fees, or any other item subject to the tax levied
pursuant to the provisions of the Oklahoma Sales Tax Code.
B. The amount of tax to be collected by the vendor or to be
remitted by the holder of a direct payment permit on each sale shall
be the applicable percentage of the gross receipts or gross proceeds
thereof as provided by Section 1354 of this title. The applicable
percentage shall equal the combination of the state and any
applicable municipal and county sales tax rates. In computing the
tax to be collected or remitted as the result of any transaction, the
tax amount must be carried to the third decimal place when the tax
amount is expressed in dollars. The tax must be rounded to a whole
cent using a method that rounds up to the next cent whenever the
third decimal place is greater than four. The vendor or direct
payment permit holder may elect to compute the tax due on
transactions on an item or invoice basis.
C. For the convenience of the vendor or direct payment permit
holder, the Tax Commission is hereby authorized to establish and
revise, when necessary, bracket system guidelines to be followed in
collecting the tax levied pursuant to the provisions of the Oklahoma
Sales Tax Code, any municipal sales tax, or county sales tax.
The use of bracket system guidelines does not relieve the vendor
or direct payment permit holder from the duty and liability to remit
to the Tax Commission, an amount equal to the applicable percentage
of the gross receipts or gross proceeds derived from all sales during
the taxable period as provided by Section 1354 of this title.
D. Except as otherwise provided by Section 1361 of this title,
each person required pursuant to the provisions of the Oklahoma Sales
Tax Code to make a sales tax report shall include in the gross
proceeds derived from sales to consumers or users, the sales value of
all tangible personal property which has been purchased for resale,
manufacturing, or further processing, and withdrawn from stock in
trade for use or consumption during the taxable period covered by
such report, and shall pay the tax on the sales value of this
tangible personal property withdrawn from stock in trade for
consumption or use; provided, such tax shall not be due on such
tangible personal property which has been donated for the purpose of
assisting persons affected by the tornadoes in the calendar year 2013
or any subsequent year for which a Presidential Major Disaster
Declaration was issued or a tornado occurring in the calendar year
2012 or calendar year 2013 for which a Presidential Major Disaster
Declaration was not issued.
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E. All persons, either within or without the state, selling
merchandise or other tangible personal property in this state through
peddlers, solicitors, or other salespersons who do not have
established places of business in this state, shall remit or pay the
tax levied pursuant to the provisions of the Oklahoma Sales Tax Code
and shall be required to file reports and pay the taxes due on all
sales made to consumers or users by themselves or by their peddlers,
solicitors, or other salespersons.
F. All persons defined as Group Five vendors remitting sales tax
based upon use of motor fuel or diesel fuel as a sale shall include
in a monthly sales tax report the number of gallons of fuel so used
and the sales price of the motor fuel or diesel fuel. The amount of
tax to be remitted by the Group Five vendor shall be the applicable
percentage as provided by Section 1354 of this title, of the sales
price of the fuel used during the applicable reporting period.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1984, c. 2, § 3, emerg. eff. Feb. 15, 1984; Laws 1985, c.
179, § 87, operative July 1, 1985; Laws 1987, c. 113, § 19, operative
June 1, 1987; Laws 1989, c. 167, § 6, eff. July 1, 1989; Laws 1996,
c. 126, § 3, eff. Nov. 1, 1996; Laws 1999, c. 390, § 11, emerg. eff.
June 8, 1999; Laws 2003, c. 413, § 11, eff. Nov. 1, 2003; Laws 2004,
c. 5, § 69, emerg. eff. March 1, 2004; Laws 2013, c. 370, § 2, emerg.
eff. May 29, 2013; Laws 2014, c. 215, § 2, emerg. eff. May 2, 2014;
Laws 2014, c. 329, § 2, emerg. eff. May 23, 2014.
NOTE: Laws 2003, c. 374, § 2 repealed by Laws 2004, c. 5, § 70,
emerg. eff. March 1, 2004.
§68-1363. Classification of vendors.
Classification of vendors.
For the purpose of this article, all vendors are classified into
five groups:
1. Group One, vendors who are regularly and continuously engaged
in a business at an established place of business and make sales
subject to this article;
2. Group Two, vendors who occasionally make sales or become
subject to this article;
3. Group Three, vendors who are transient persons, firms or
corporations and make seasonal sales or in any manner become subject
to this article, or vendors, either within or without this state, who
make sales, subject to this article, through peddlers, solicitors or
other salesmen who do not have established places of business in this
state;
4. Group Four, vendors who continuously, regularly or
systematically engage in retail sales to the Oklahoma consumer by
solicitation through display of products by advertisement in
newspapers, or radio or television media located in this state and
make sales subject to this article; or vendors who continuously,
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regularly or systematically engage in retail sales to the consumer
within Oklahoma by solicitation by advertisement through mail order
or catalog publications; and
5. Group Five, vendors who hold a valid license pursuant to
Section 33 of this act remitting sales tax based upon the use of
motor fuel or diesel fuel as a sale defined pursuant to Section 1352
of this title.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1986, c. 41, § 7, operative July 1, 1986; Laws 1989, c. 167,
§ 7, eff. July 1, 1989; Laws 1991, c. 342, § 18, emerg. eff. June 15,
1991; Laws 1996, c. 345, § 64, eff. Oct. 1, 1996.
§68-1364. Permits to do business.
Permits to do business.
A. Every person desiring to engage in a business within this
state who would be designated as a Group One or Group Three vendor,
pursuant to Section 1363 of this title, shall be required to secure
from the Oklahoma Tax Commission every three (3) years a written
permit for a fee of Twenty Dollars ($20.00) prior to engaging in such
business in this state. Each such person shall file with the Tax
Commission an application for a permit to engage in or transact
business in this state, setting forth such information as the Tax
Commission may require. The application shall be signed by the owner
of the business or representative of the business entity and as a
natural person, and, in the case of a corporation, as a legally
constituted officer thereof.
B. Upon receipt of an initial application, the Tax Commission
may issue a probationary permit effective for six (6) months which
will automatically renew for an additional thirty (30) months unless
the applicant receives written notification of the refusal of the
Commission to renew the permit. If the applicant receives a notice
of refusal, the applicant may request a hearing to show cause why the
permit should be renewed. Upon receipt of a request for a hearing,
the Tax Commission shall set the matter for hearing and give ten (10)
days' notice in writing of the time and place of the hearing. At the
hearing, the applicant shall set forth the qualifications of the
applicant for a permit and proof of compliance with all state tax
laws.
C. Holders of a probationary permit as provided in subsection B
of this section shall not be permitted to present the permit to
obtain a commercial license plate for their motor vehicle as provided
in Section 1133.1 of Title 47 of the Oklahoma Statutes.
D. Upon verification that the applicant is a Group Three vendor,
the Tax Commission may require such applicant to furnish a surety
bond or other security as the Commission may deem necessary to secure
payment of taxes under this article, prior to issuance of a permit
for the place of business set forth in the application for permit.
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Provided, the Tax Commission is hereby authorized to set guidelines,
by adoption of regulations, for the issuance of sales tax permits.
Pursuant to said guidelines the Tax Commission may refuse to issue
permits to any Group Three vendors, or any class of vendors included
in the whole classification of Group Three vendors, if the Tax
Commission determines that it is likely this state will lose tax
revenue due to the difficulty of enforcing this article for any
reasons stated in subsection (T) of Section 1354 of this title.
E. A separate permit for each additional place of business to be
operated must be obtained from the Tax Commission for a fee of Ten
Dollars ($10.00). Such permit shall be good for a period of three
(3) years. The Tax Commission shall grant and issue to each
applicant a separate permit for each place of business in this state,
upon proper application therefor and verification thereof by the Tax
Commission.
F. A permit is not assignable and shall be valid only for the
person in whose name it is issued and for the transaction of business
at the place designated therein. The permit shall at all times be
conspicuously displayed at the place of business for which issued in
a position where it can be easily seen. The permit shall be in
addition to all other permits required by the laws of this state.
Provided, if the location of the business is changed, such person
shall file with the Tax Commission an application for a permit to
engage in or transact business at the new location. Upon issuance of
the permit to the new location of such business, no additional permit
fee shall be due until the expiration of the permit issued to the
previous location of such business.
G. It shall be unlawful for any person coming within the class
designated as Group One or the class designated as Group Three to
engage in or transact a business of reselling tangible personal
property or services within this state unless a written permit or
permits shall have been issued to such person. Any person who
engages in a business subject to the provisions of this section
without a permit or permits, or after a permit has been suspended,
upon conviction, shall be guilty of a misdemeanor punishable by a
fine of not more than One Thousand Dollars ($1,000.00). Any person
convicted of a second or subsequent violation hereof shall be guilty
of a felony and punishable by a fine of not more than Five Thousand
Dollars ($5,000.00) or by a term of imprisonment in the State
Penitentiary for not more than two (2) years, or both such fine and
imprisonment.
H. Any person operating under a permit as provided in this
article shall, upon discontinuance of business by sale or otherwise,
return such permit to the Tax Commission for cancellation, together
with a remittance for any unpaid or accrued taxes. Failure to
surrender a permit and pay any and all accrued taxes will be
sufficient cause for the Tax Commission to refuse to issue a permit
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subsequently to such person to engage in or transact any other
business in this state. In the case of a sale of any business, the
tax shall be deemed to be due on the sale of the fixtures and
equipment, and the Tax Commission shall not issue a permit to
continue or conduct the business to the purchaser until all tax
claims due the State of Oklahoma have been settled.
I. All permits issued under the provisions of this article shall
expire three (3) years from the date of issuance at the close of
business at each place or location of the business within this state.
No refund of the fee shall be made if the business is terminated
prior to the expiration of the permit.
J. Whenever a holder of a permit fails to comply with any
provisions of this article, the Tax Commission, after giving ten (10)
days' notice in writing of the time and place of hearing to show
cause why the permit should not be revoked, may revoke or suspend the
permit, the permit to be renewed upon removal of cause or causes of
revocation or suspension. However, if a holder of a permit becomes
delinquent for a period of three (3) months or more in reporting or
paying of any tax due under this article, any duly authorized agent
of the Tax Commission may remove the permit from the taxpayer's
premises and it shall be returned or renewed only upon the filing of
proper reports and payment of all taxes due under this article.
K. Permits are not required of persons coming within the
classification designated as Group Two. The Oklahoma Tax Commission
shall issue a limited permit to Group Five vendors. The permit shall
be in such form as the Tax Commission may prescribe.
L. Nothing in this article shall be construed to allow a permit
holder to purchase, tax exempt, anything for resale that the permit
holder is not regularly in the business of reselling.
M. All monies received pursuant to issuance of such permits to
do business shall be paid to the State Treasurer and placed to the
credit of the General Revenue Fund of the State Treasury.
N. Notwithstanding the provisions of Section 205 of this title,
the Oklahoma Tax Commission is authorized to release the following
information contained in the Master Sales and Use Tax File to
vendors:
1. Permit number;
2. Name in which permit is issued;
3. Name of business operation if different from ownership (DBA);
4. Mailing address;
5. Business address;
6. Business class or Standard Industrial Code (SIC); and
7. Effective date and expiration or cancellation date of permit.
Release of such information shall be limited to tax remitters for
the express purpose of determining the validity of sales permits
presented as evidence of purchasers' sales tax resale status under
this Code.
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The provisions of this subsection shall be strictly interpreted
and shall not be construed as permitting the disclosure of any other
information contained in the records and files of the Tax Commission
relating to sales tax or to any other taxes.
This information may be provided on a subscription basis, with
periodic updates, and sufficient fee charged, not to exceed One
Hundred Fifty Dollars ($150.00) per year, to offset the
administrative costs of providing the list. All revenue received by
the Oklahoma Tax Commission from such fees shall be deposited to the
credit of the Oklahoma Tax Commission Revolving Fund. No liability
whatsoever, civil or criminal, shall attach to any member of the Tax
Commission or any employee thereof for any error or omission in the
disclosure of information pursuant to this subsection.
O. If the Tax Commission enters into the Streamlined Sales and
Use Tax Agreement under Section 1354.18 of this title, the Tax
Commission is authorized to participate in its online sales and use
tax registration system and shall not require the payment of the
registration fees or other charges provided in this section from a
vendor who registers within the online system if the vendor has no
legal requirement to register.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1985, c. 127, § 2, eff. Jan. 1, 1986; Laws 1986, c. 218, §
19, emerg. eff. June 9, 1986; Laws 1987, c. 213, § 2, operative July
1, 1987; Laws 1989, c. 167, § 8, eff. July 1, 1989; Laws 1989, c.
249, § 27, eff. July 1, 1989; Laws 1990, c. 278, § 1, eff. Sept. 1,
1990; Laws 1997, c. 294, § 19, eff. July 1, 1997; Laws 2003, c. 413,
§ 12, eff. Nov. 1, 2003.
NOTE: Laws 1986, c. 223, § 41 repealed by Laws 1987, c. 203, § 163,
operative July 1, 1987 and by Laws 1987, c. 213, § 4, operative July
1, 1987. Laws 1987, c. 203, § 145 repealed by Laws 1989, c. 167, §
9, eff. July 1, 1989. Laws 1997, c. 133, § 562 repealed by Laws
1999, 1st Ex.Sess., c. 5, § 452, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 562 from July 1, 1998, to July 1, 1999.
§68-1364.1. Direct payment permits.
A. Every person who qualifies pursuant to subsection B of this
section and desires to directly remit the taxes due under Section
1350 et seq. of this title or Section 1401 et seq. of this title to
the Oklahoma Tax Commission rather than remit such taxes to the
vendor may apply to the Tax Commission for a direct payment permit.
The permit shall be valid for three (3) years. Each such person
shall file with the Tax Commission an application for a direct
payment permit, setting forth such information as the Tax Commission
may require, including but not limited to:
1. An agreement that is signed by the owner of the business or
representative of the business entity and as a natural person, and,
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in the case of a corporation, as a legally constituted officer
thereof, that provides that the applicant agrees to:
a. accrue and remit all taxes imposed by Section 1350 et
seq. of this title or Section 1401 et seq. of this
title on the sale or use of all taxable personal
property or services sold to or leased or rented by the
applicant. Provided, no tax shall be due from the
holder of a direct payment permit on tangible personal
property intended solely for use in other states, but
which is stored in Oklahoma pending shipment to such
other states or which is temporarily retained in
Oklahoma for the purpose of fabrication, repair,
testing, alteration, maintenance, or other service,
b. pay such taxes as required by Section 1365 of this
title. Provided, in lieu of monthly reports, persons
qualifying pursuant to paragraph 2 of subsection B of
this section owing an average per month of Five Hundred
Dollars ($500.00) or less may file quarterly reports
and remit taxes due thereunder to the Tax Commission on
or before the twentieth day of the month following the
calendar quarter. If not paid on or before the
twentieth day of such month, the tax shall be
delinquent,
c. waive the discount permitted by Section 1367.1 of this
title on the payment of all taxes remitted directly to
the Tax Commission; and
2. A description of the accounting method by which the applicant
proposes to differentiate between taxable and exempt transactions.
Upon verification that the applicant is eligible to receive a
direct payment permit, the Tax Commission shall issue a direct
payment permit for the place of business set forth in the application
for the permit. The Tax Commission shall be the sole judge of the
applicant's qualifications and may refuse to issue a direct payment
permit to an applicant. An applicant who has been denied the
issuance of a permit may submit an amended application or may submit
a new application after a reasonable period of time after the denial
of the original application.
B. The following persons shall qualify for a direct payment
permit as provided in subsection A of this section:
1. Every person who makes purchases of Eight Hundred Thousand
Dollars ($800,000.00) or more annually in taxable items for use in
Oklahoma enterprises; or
2. Every person who makes purchases of drugs for the treatment
of human beings, medical appliances, medical devices and other
medical equipment including but not limited to corrective eyeglasses,
contact lenses, hearing aids, prosthetic devices, durable medical
equipment, and mobility-enhancing equipment for administration or
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distribution by a practitioner, as defined in subsection B of Section
1357.6 of this title, who is authorized by law to administer or
distribute such items and the cost of such items will be reimbursed
under the Medicare or Medicaid program.
C. For exempt purchases made by persons that have been issued a
permit under paragraph 2 of subsection B of this section, the Tax
Commission shall accept the following information, maintained
separate from confidential patient records, as an acceptable
accounting method by which the applicant documents the purchase of
items exempt under Section 1357.6 of this title:
1. Patient case number or account number;
2. Type of insurance; and
3. Item description or product number.
Added by Laws 1996, c. 126, § 1, eff. Nov. 1, 1996. Amended by Laws
1997, c. 294, § 20, eff. July 1, 1997; Laws 2000, c. 314, § 17, eff.
July 1, 2000; Laws 2012, c. 230, § 1, emerg. eff. May 9, 2012; Laws
2013, c. 142, § 1, eff. July 1, 2013.
§68-1364.2. Special events - Permit - Fee - Sales tax collection by
vendors - Report - Annual events - Definitions.
A. Promoters or organizers of special events shall submit an
application for a special event permit to the Oklahoma Tax Commission
at least twenty (20) days prior to the special event. The
application shall be accompanied by a fee of Fifty Dollars ($50.00).
The application shall include the location and dates of the special
event, expected number of vendors, and any other information that may
be required by the Tax Commission. A separate permit shall be
required for each special event and must be prominently displayed.
Multiple events held at the same location during the calendar year
may be included in one application.
B. All monies received from such fees shall be paid to the State
Treasurer and placed to the credit of the General Revenue Fund of the
State Treasurer.
C. Promoters or organizers shall provide forms to special event
vendors for reporting sales tax collections and any other information
that may be required by the Tax Commission.
D. Unless otherwise provided in this section, special event
vendors shall collect sales tax from purchasers of tangible personal
property and services taxable under Section 1350 et seq. of this
title and shall remit the tax, along with a sales tax report, to the
promoter or organizer.
E. Within fifteen (15) days following the conclusion of the
special event, the organizer or promoter shall forward all reports
and payments to the Tax Commission along with a completed sales tax
report. If not filed on or before the fifteenth day, the tax shall
be delinquent from such date. Reports timely mailed shall be
considered timely filed. If a report is not timely filed, interest
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shall be charged from the date the report should have been filed
until the report is actually filed.
F. Within fifteen (15) days following the conclusion of the
special event, the organizer or promoter shall also submit a list of
vendors at each event that hold a valid sales tax permit issued under
Section 1364 of this title. The list shall include the vendor's
name, address, telephone number and sales tax permit number.
G. For the purposes of compensating the promoter or organizer in
keeping sales tax records, filing reports and remitting the tax when
due, a promoter or organizer shall be allowed a deduction of the tax
due as provided in Section 1367.1 of this title.
H. Promoters and organizers shall only be liable for failure to
report and remit all taxes that are remitted to them by special event
vendors.
I. Promoters or organizers of a special event that is held on an
annual basis during the same thirty-day period each year may request
that the Tax Commission limit their responsibilities to the
following:
1. Submitting of an application for a special event permit as
provided in subsection A of this section;
2. Providing report forms to special event vendors as provided
in subsection C of this section; and
3. Within fifteen (15) days following the conclusion of the
special event, submitting a list of special event vendors at each
event, including the vendor's name, address, and telephone number.
Such requests may be denied by the Tax Commission for reasons
including, but not limited to, failure by the promoter to comply with
the requirements of this section or failure by vendors of the
promoter's previous special events to comply with the provisions of
subsection J of this section.
J. Special event vendors of special events that are approved
under subsection I of this section shall remit the tax along with a
sales tax report directly to the Tax Commission within fifteen (15)
days following the conclusion of the special event. If not filed on
or before the fifteenth day, the tax shall be delinquent from such
date. Reports timely mailed shall be considered timely filed. If a
report is not timely filed, interest shall be charged from the date
the report should have been filed until the report is actually filed.
K. As used in this section:
1. "Promoter" or "organizer" means any person who organizes or
promotes a special event which results in the rental, occupation, or
use of any structure, lot, tract of land, sample or display case,
table, or any other similar items for the exhibition and sale of
tangible personal property or services taxable under Section 1350 et
seq. of this title by special event vendors;
2. "Special event" means an entertainment, amusement,
recreation, or marketing event that occurs at a single location on an
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irregular basis and at which tangible personal property is sold.
"Special event" shall include, but not be limited to, gun shows,
knife shows, craft shows, antique shows, flea markets, carnivals,
bazaars, art shows, and other merchandise displays or exhibits.
Special event shall not include any county, district, or state fair
or public or private school or university-sponsored event. Special
event shall not include an event sponsored by a city or town that
includes less than ten special event vendors or any event sponsored
by a church organization exempt from federal income tax pursuant to
Section 501(c)(3) of the Internal Revenue Code. Special event shall
not include a registered farmers market which is a designated area in
which farmers, growers or producers from a defined region gather on a
regularly scheduled basis to sell at retail nonpotentially hazardous
farm food products and whole-shell eggs to the public; and
3. "Special event vendor" means a person making sales of
tangible personal property or services taxable under Section 1350 et
seq. of this title at a special event within this state and who is
not permitted under Section 1364 of this title.
Added by Laws 2003, c. 472, § 16. Amended by Laws 2004, c. 518, § 2,
eff. July 1, 2004; Laws 2007, c. 353, § 7, eff. Nov. 1, 2007; Laws
2013, c. 133, § 1, eff. July 1, 2013.
§68-1364.3. Hearings - Increased enforcement personnel.
In order to increase the collection of sales and use taxes, the
Oklahoma Tax Commission shall:
1. Conduct hearings pursuant to Section 212 of Title 68 of the
Oklahoma Statutes related to permits issued under the provisions of
Section 1364 of Title 68 of the Oklahoma Statutes in at least two (2)
locations in the state; and
2. Add ten (10) additional sales and use tax audit and/or
enforcement personnel as soon as practicable after July 1, 2011.
Added by Laws 2011, c. 364, § 2.
§68-1365. When tax due - Reports - Records.
When Tax Due – Reports – Records.
A. The tax levied hereunder shall be due and payable on the
first day of each month, except as herein provided, by any person
liable to remit or pay any tax due under Section 1350 et seq. of this
title. For the purpose of ascertaining the amount of the tax
payable, it shall be the duty of all tax remitters, on or before the
twentieth day of each month, to deliver to the Oklahoma Tax
Commission, upon forms prescribed and furnished by it, sales tax
reports signed under oath, showing the gross receipts or gross
proceeds arising from all sales taxable or nontaxable under Section
1350 et seq. of this title during the preceding calendar month. Such
reports shall show such further information as the Tax Commission may
require to enable it to compute correctly and collect the tax herein
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levied. In addition to the information required on reports, the Tax
Commission may request and the taxpayer must furnish any information
deemed necessary for a correct computation of the tax levied herein.
Such tax remitter shall compute and remit to the Tax Commission the
required tax due for the preceding calendar month, the remittance or
remittances of the tax to accompany the reports herein required. If
not filed on or before the twentieth day of such month, the tax shall
be delinquent from such date. Reports timely mailed shall be
considered timely filed. If a report is not timely filed, interest
shall be charged from the date the report should have been filed
until the report is actually filed.
B. Effective July 1, 2001, every person owing an average of One
Hundred Thousand Dollars ($100,000.00) or more per month in total
sales taxes in the previous fiscal year shall remit the tax due and
shall participate in the Tax Commission’s electronic funds transfer
and electronic data interchange program, according to the following
schedule:
1. For sales from the first day through the fifteenth day of
each month, the tax shall be due and payable on the twentieth day of
such month and remitted to the Tax Commission by electronic funds
transfer. A taxpayer will be considered to have complied with the
reporting requirements of this paragraph if, on or before the
twentieth day of such month, the taxpayer paid at least ninety
percent (90%) of the liability for that fifteen-day period or at
least fifty percent (50%) of the taxpayer’s liability in the
immediate preceding calendar year for the same month as the month in
which the fifteen-day period occurs; and
2. For sales from the sixteenth day through the end of each
month, the tax shall be due and payable on the twentieth day of the
following month and remitted to the Tax Commission by electronic
funds transfer.
Every person required to remit the tax due pursuant to this
subsection shall file its monthly sales tax report in accordance with
the Tax Commission’s electronic data interchange program on the
twentieth day of the month following the month the sales occurred.
Taxes not paid on or before the due dates specified in this
subsection shall be delinquent from such dates.
C. Effective March 1, 2002, every person owing an average of
Twenty-five Thousand Dollars ($25,000.00) or more per month in total
sales taxes in the previous fiscal year shall remit the tax due and
shall participate in the Tax Commission’s electronic funds transfer
and electronic data interchange program, according to the following
schedule:
1. For sales from the first day through the fifteenth day of
each month, the tax shall be due and payable on the twentieth day of
such month and remitted to the Tax Commission by electronic funds
transfer. A taxpayer will be considered to have complied with the
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reporting requirements of this paragraph if, on or before the
twentieth day of such month, the taxpayer paid at least ninety
percent (90%) of the liability for that fifteen-day period or at
least fifty percent (50%) of the taxpayer’s liability in the
immediate preceding calendar year for the same month as the month in
which the fifteen-day period occurs; and
2. For sales from the sixteenth day through the end of each
month, the tax shall be due and payable on the twentieth day of the
following month and remitted to the Tax Commission by electronic
funds transfer.
Every person required to remit the tax due pursuant to this
subsection shall file its monthly sales tax report in accordance with
the Tax Commission’s electronic data interchange program on the
twentieth day of the month following the month the sales occurred.
Provided, persons primarily engaged in selling lumber and other
building materials, including cement and concrete, except for home
centers classified under Industry No. 444110 of the North American
Industrial Classification System (NAICS) Manual, shall remit and
report as required in subsection A of this section, with the
exception of taxes due on sales made during the periods of June 1
through June 15, 2002, which shall be remitted and reported on June
20, 2002, and June 1 through June 15, 2003, which shall be remitted
and reported on June 20, 2003.
Taxes not paid on or before the due dates specified in this
subsection shall be delinquent from such dates.
D. Effective October 1, 2003, every person owing an average of
Two Thousand Five Hundred Dollars ($2,500.00) or more per month in
total sales taxes in the previous fiscal year shall remit the tax due
and shall participate in the Tax Commission’s electronic funds
transfer and electronic data interchange program, according to the
following schedule:
1. For sales from the first day through the fifteenth day of
each month, the tax shall be due and payable on the twentieth day of
such month and remitted to the Tax Commission by electronic funds
transfer. A taxpayer will be considered to have complied with the
reporting requirements of this paragraph if, on or before the
twentieth day of such month, the taxpayer paid at least ninety
percent (90%) of the liability for that fifteen-day period or at
least fifty percent (50%) of the taxpayer’s liability in the
immediate preceding calendar year for the same month as the month in
which the fifteen-day period occurs; and
2. For sales from the sixteenth day through the end of each
month, the tax shall be due and payable on the twentieth day of the
following month and remitted to the Tax Commission by electronic
funds transfer.
Every person required to remit the tax due pursuant to this
subsection shall file its monthly sales tax report in accordance with
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the Tax Commission’s electronic data interchange program on the
twentieth day of the month following the month the sales occurred.
Provided, persons primarily engaged in selling lumber and other
building materials, including cement and concrete, except for home
centers classified under Industry No. 444110 of the North American
Industrial Classification System (NAICS) Manual, shall remit and
report as required in subsection A of this section.
Taxes not paid on or before the due dates specified in this
subsection shall be delinquent from such dates.
E. In lieu of monthly reports, tax remitters or taxpayers who
are classified as Group Three vendors in Section 1350 et seq. of this
title or tax remitters or taxpayers whose total amount of tax
liability for any one month does not exceed Fifty Dollars ($50.00)
may file semiannual reports and remit taxes due thereunder to the Tax
Commission on or before the twentieth day of January and July of each
year for the preceding six-month period. If not paid on or before
the twentieth day of such month, the tax shall be delinquent.
F. It shall be the duty of every tax remitter required to make a
sales tax report and pay any tax under Section 1350 et seq. of this
title to keep and preserve suitable records of the gross daily sales
together with invoices of purchases and sales, bills of lading, bills
of sale and other pertinent records and documents which may be
necessary to determine the amount of tax due hereunder and such other
records of goods, wares and merchandise, and other subjects of
taxation under Section 1350 et seq. of this title as will
substantiate and prove the accuracy of such returns. It shall also
be the duty of every person who makes sales for resale to keep
records of such sales which shall be subject to examination by the
Tax Commission or any authorized employee thereof while engaged in
checking or auditing the records of any person required to make a
report under the terms of Section 1350 et seq. of this title. All
such records shall remain in Oklahoma and be preserved for a period
of three (3) years, unless the Tax Commission, in writing, has
authorized their destruction or disposal at an earlier date, and
shall be open to examination at any time by the Tax Commission or by
any of its duly authorized agents. The burden of proving that a sale
was not a taxable sale shall be upon the person who made the sale.
G. The purchaser must provide the vendor with the purchaser’s
sales tax permit number, the direct payment permit number or a copy
of the direct payment permit if the sale is made within Oklahoma. In
addition to furnishing the sales tax permit number to the vendor, the
purchaser must certify in writing to the vendor that the purchaser is
engaged in the business of reselling the articles purchased. Failure
to so certify, or to falsely certify with the knowledge that the
items purchased are not for resale, shall be sufficient grounds upon
which the Tax Commission may cause the purchaser’s sales tax permit
to be canceled. Certification may be made on the bill, invoice or
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sales slip retained by the vendor or by furnishing a certification
letter to the seller which contains the following:
1. The name and address of the purchaser;
2. The sales tax permit number of the permit issued to the
purchaser;
3. A statement that the purchaser is engaged in the business of
reselling the articles purchased, if applicable;
4. A statement that the articles purchased are purchased for
resale, if applicable; and
5. The signature of the purchaser or a person authorized to
legally bind the purchaser.
H. If a sales tax permit holder purchases goods, wares and
merchandise from a vendor on a regular basis, then the permit holder
may furnish the certification letter described in subsection G of
this section to the vendor and the vendor may subsequently make sales
of tangible personal property to the permit holder without requiring
a certification letter or certification statement for each subsequent
sale. The permit holder must notify the seller of all purchases
which are not for resale and remit the applicable amount of tax
thereon. If the permit holder fails to notify the vendor of
purchases not intended for resale, then sufficient grounds shall
exist for the Tax Commission to cancel the sales tax permit of the
permit holder who so failed to notify the vendor.
I. In lieu of filing reports as required in subsection A of this
section, tax remitters or taxpayers who agree to participate in the
Tax Commission’s electronic funds transfer and electronic data
interchange programs may file according to the following schedule:
1. For sales from the first day through the fifteenth day of
each month, the tax shall be due and payable on the twentieth day of
such month and remitted to the Tax Commission by electronic funds
transfer. A taxpayer will be considered to have complied with the
reporting requirements of this paragraph if, on or before the
twentieth day of such month, the taxpayer paid at least ninety
percent (90%) of the liability for that fifteen-day period or at
least fifty percent (50%) of the taxpayer’s liability in the
immediate preceding calendar year for the same month as the month in
which the fifteen-day period occurs; and
2. For sales from the sixteenth day through the end of each
month, the tax shall be due and payable on the twentieth day of the
following month and remitted to the Tax Commission by electronic
funds transfer.
Every person required to remit the tax due pursuant to this
subsection shall file its monthly sales tax report in accordance with
the Tax Commission’s electronic data interchange program on the
twentieth day of the month following the month the sales occurred.
Taxes not paid on or before the due dates specified in this
subsection shall be delinquent from such dates.
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Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1985, c. 127, § 3, eff. Jan. 1, 1986; Laws 1987, c. 113, §
20, operative June 1, 1987; Laws 1996, c. 126, § 4, eff. Nov. 1,
1996; Laws 2000, c. 420, § 1, emerg. eff. June 9, 2000; Laws 2001, c.
5, § 41, emerg. eff. March 21, 2001; Laws 2001, c. 383, § 3, eff.
July 1, 2001; Laws 2002, c. 503, § 2, emerg. eff. June 7, 2002; Laws
2003, c. 376, § 2, eff. July 1, 2003; Laws 2004, c. 5, § 71, emerg.
eff. March 1, 2004; Laws 2004, c. 535, § 11, eff. Nov. 1, 2004.
NOTE: Laws 2000, c. 314, § 18 repealed by Laws 2001, c. 5, § 42,
emerg. eff. March 21, 2001. Laws 2003, c. 413, § 13 repealed by Laws
2004, c. 5, § 72, emerg. eff. March 1, 2004.
§68-1365.1. Model 1, Model 2, or Model 3 seller - Streamlined Sales
and Use Tax Agreement - Returns in simplified format - Additional
informational returns.
A. The Oklahoma Tax Commission shall allow any Model 1, Model 2
or Model 3 seller, as defined in Section 1354.15 of Title 68 of the
Oklahoma Statutes, to submit its sales and use tax returns in a
simplified format. The Tax Commission shall promulgate rules
providing for the format in accordance with the Streamlined Sales and
Use Tax Agreement. The Tax Commission is further authorized to
promulgate rules requiring these sellers to file additional
informational returns. Provided, the informational returns may not
be required more frequently than every six (6) months.
B. All remittances from sellers under Models 1, 2 and 3 shall be
remitted electronically.
C. Any seller that is registered under the Agreement, which does
not have a legal requirement to register in this state, and is not a
Model 1, Model 2 or Model 3 seller, shall submit its sales and use
tax returns as follows:
1. Upon registration, the Tax Commission shall provide to the
seller the returns required by this state;
2. The seller shall file a return within one year of the month
of initial registration, and on an annual basis in succeeding years;
and
3. In addition to the returns required in paragraph 2 of this
subsection, a seller shall submit returns in the month following any
month in which the seller has accumulated state and local tax funds
for the state in the amount of One Thousand Dollars ($1,000.00) or
more.
D. The Tax Commission shall participate with other states which
are members of the Agreement in developing a more uniform sales and
use tax return that, when completed, would be available to all
sellers.
Added by Laws 2003, c. 413, § 14, eff. Nov. 1, 2003.
§68-1366. Deduction from taxable sales for bad debts.
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A. There is herein provided a deduction to the vendor from
taxable sales for bad debts. Any deduction taken that is attributed
to bad debts shall not include interest.
B. The federal definition of “bad debt” in 26 U.S.C., Section
166 shall be the basis for calculating bad debt recovery. However,
the amount calculated pursuant to 26 U.S.C., Section 166, shall be
adjusted to exclude:
1. Financing charges or interest;
2. Sales or use taxes charged on the purchase price;
3. Uncollectible amounts on property that remain in the
possession of the seller until the full purchase price is paid; and
4. Expenses incurred in attempting to collect any debt and
repossessed property.
C. Bad debts may be deducted on the return for the period during
which the bad debt is written off as uncollectible in the claimant’s
books and records and is eligible to be deducted for federal income
tax purposes if the taxpayer kept accounts on a cash basis or could
be eligible to be claimed if the taxpayer kept accounts on an accrual
basis. For purposes of this subsection, a claimant who is not
required to file federal income tax returns may deduct a bad debt on
a return filed for the period in which the bad debt is written off as
uncollectible in the claimant’s books and records and would be
eligible for a bad debt deduction for federal income tax purposes if
the claimant was required to file a federal income tax return.
D. If a deduction is taken for a bad debt and the debt is
subsequently collected in whole or in part, the tax on the amount so
collected must be paid and reported on the return filed for the
period in which the collection is made.
E. When the amount of bad debt exceeds the amount of taxable
sales for the period during which the bad debt is written off, a
refund claim may be filed within the statute of limitations for
refund claims provided in Section 227 of this title; however, the
statute of limitations shall be measured from the due date of the
return on which the bad debt could first be claimed.
F. Where filing responsibilities have been assumed by a
certified service provider, the certified service provider may claim,
on behalf of the seller, any bad debt allowance provided by this
section. The certified service provider must credit or refund the
full amount of any bad debt allowance or refund received to the
seller.
G. For the purposes of reporting a payment received on a
previously claimed bad debt, any payments made on a debt or account
are applied first proportionally to the taxable price of the property
or service and the sales tax thereon, and secondly to interest,
service charges, and any other charges.
H. In situations where the books and records of the party
claiming the bad debt allowance support an allocation of the bad
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debts among the states which are members of the Streamlined Sales and
Use Tax Agreement, the allocation will be permitted.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended
by Laws 1990, c. 339, § 18, emerg. eff. May 31, 1990; Laws 2003, c.
413, § 15, eff. Nov. 1, 2003.
§68-1367. Repealed by Laws 1993, c. 146, § 29.
§68-1367.1. Repealed by Laws 2017, c. 326, § 1, eff. July 1, 2017.
§68-1368. Bond or security.
Bond or Security.
(A) The Tax Commission may require every person who holds a
sales tax permit pursuant to the provisions of the Oklahoma Sales Tax
Code and is delinquent or becomes delinquent in the reporting or
paying any taxes levied under this article or penalties or interest
thereon to furnish to the Commission a cash bond, bond from a surety
company chartered or authorized to do business in this state,
certificates of deposits, certificates of savings or U.S. Treasury
bonds, an assignment of negotiable stocks or bonds or such other
security as the Commission may deem necessary to secure payment of
taxes under this article. Any surety bond furnished under this
section shall be a continuing instrument and shall constitute a new
and separate obligation in the sum stated therein for each calendar
year or a portion thereof while such bond is in force. Such bond
shall remain in effect until the surety or sureties are released and
discharged by the Tax Commission. The Tax Commission shall fix the
amount of such bond or other security required in each case after
considering the tax liability expected to accrue, not to exceed three
times the amount of the average quarterly tax liability. Provided,
any taxpayer who reports and remits taxes hereunder on a semiannual
basis and is or becomes delinquent in reporting or paying may be
required to provide a bond or other security in an amount not to
exceed three times the amount of the average semiannual tax
liability. Any bond or other security furnished shall be such as
will protect this state against failure of the taxpayer to pay the
tax levied by this article.
(B) If any vendor fails or refuses to furnish a bond or other
security as required by the Tax Commission within ten (10) days after
mailing of notice thereof to said vendor, any authorized agent of the
Tax Commission may remove the permit issued under this article from
the taxpayer's premises and cause the same to be revoked. The
forfeiture or cancellation of such bond or security, for any reason
whatsoever, shall automatically revoke the permit issued pursuant to
the provisions of the Oklahoma Sales Tax Code.
(C) All persons doing business in this state, classified as
Group Three vendors under this article, shall make a sufficient cash
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deposit or sufficient bond with the Tax Commission as the Tax
Commission may deem necessary to secure payment of the semiannual tax
liability before doing business in this state or before receiving a
permit to do business in this state as provided in this article.
Amended by Laws 1986, c. 218, § 20, emerg. eff. June 9, 1986.
§68-1368.2. Repealed by Laws 2013, c. 334, § 5, eff. July 1, 2013.
§68-1368.3. Noncompliant taxpayer - Delinquency - Business closure.
A. As used in this section, "noncompliant taxpayer" means any
taxpayer operating under a sales tax permit who, within any
consecutive twenty-four-month period, has failed to file two reports
or remit tax due for any two (2) months, as required under the
provisions of any tax law. Provided, a taxpayer shall not be deemed
noncompliant for nonpayment of income taxes.
B. In addition to all other remedies provided by law for the
collection of unpaid taxes, the Oklahoma Tax Commission may close the
business of a noncompliant taxpayer, subject to the administrative
and judicial appeal procedures provided in this section, if the
noncompliant taxpayer, within any consecutive twenty-four-month
period, fails to file three reports or remit tax due for any three
(3) months, as required under the provisions of any tax law.
C. 1. The Tax Commission shall give notice to a noncompliant
taxpayer that the third delinquency in reporting or remitting tax in
any consecutive twenty-four-month period will result in the closure
of the business. The notice must be in writing and delivered to the
noncompliant taxpayer by the United States Postal Service or by hand
delivery.
2. If the noncompliant taxpayer has a third delinquency in
reporting or remitting tax in any consecutive twenty-four-month
period after the issuance of the notice provided in paragraph 1 of
this subsection, the Tax Commission shall notify the noncompliant
taxpayer by certified mail or by hand delivery that the business will
be closed within five (5) business days from the date of the delivery
or attempted delivery of the notice unless the noncompliant taxpayer
makes arrangements with the Tax Commission to satisfy the tax
delinquency. When the fifth day falls on a Saturday, Sunday, or
legal holiday, the performance of the act is considered timely if it
is performed on the next succeeding business day that is not a
Saturday, Sunday, or legal holiday.
D. A noncompliant taxpayer may avoid closure of the business by:
1. Filing all delinquent reports and remitting the delinquent
tax including any interest and penalty; or
2. Entering into a payment agreement approved by the Tax
Commission to satisfy the tax delinquency.
E. The decision to close the business of a noncompliant taxpayer
will be final and absolute if the noncompliant taxpayer fails to
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request an administrative hearing as provided in subsection F of this
section.
F. 1. A noncompliant taxpayer may request an administrative
hearing concerning the decision of the Tax Commission to close the
business of a noncompliant taxpayer by filing with the Tax Commission
a written protest, signed by the noncompliant taxpayer or the
authorized agent of the noncompliant taxpayer, stating the reasons
for opposing the closure of the business and requesting an
administrative hearing. The protest shall be timely if filed within
five (5) business days after the delivery or attempted delivery of
the notice required by paragraph 2 of subsection C of this section.
2. A noncompliant taxpayer may request that an administrative
hearing be held in person, by telephone, upon written documents
furnished by the noncompliant taxpayer, or upon written documents and
any evidence produced by the noncompliant taxpayer at an
administrative hearing. The Tax Commission shall have the discretion
to determine whether an administrative hearing at which testimony is
to be presented will be conducted in person or by telephone. A
noncompliant taxpayer who requests an administrative hearing based
upon written documents is not entitled to any other administrative
hearing prior to the date a decision is rendered by the hearing
officer.
3. The administrative hearing will be conducted by a hearing
officer appointed by the Tax Commission. The hearing officer will
set the time and place for a hearing and will give the noncompliant
taxpayer notice of the hearing. The noncompliant taxpayer may be
represented by an authorized representative and may present evidence
in support of the position of the noncompliant taxpayer.
4. The administrative hearing will be held within fourteen (14)
calendar days of receipt by the Tax Commission of the request for
hearing, as required in paragraph 1 of this subsection. The Tax
Commission shall give the noncompliant taxpayer at least five (5)
days' notice of the hearing.
G. The defense or defenses to the closure of a business under
this section include written proof that the noncompliant taxpayer:
1. Filed all delinquent returns and paid the delinquent tax due
including interest and penalty; or
2. Has entered into a written payment agreement, approved by the
Tax Commission prior to the hearing, to satisfy the tax delinquency.
H. 1. The decision of the hearing officer must be rendered in
writing with copies delivered to the noncompliant taxpayer by the
United States Postal Service or by hand delivery.
2. If the decision of the hearing officer is to affirm the
closure of the business, the decision shall be submitted in writing
and delivered by the United States Postal Service or by hand to the
noncompliant taxpayer.
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3. The noncompliant taxpayer may seek judicial relief from the
decision of a hearing officer as provided in Section 225 of Title 68
of the Oklahoma Statutes for relief from a final order of the Tax
Commission.
I. The procedures established by this section are the sole
methods for seeking relief from a written decision to close the
business of a noncompliant taxpayer.
J. After being given notice of an order of closure of a business
pursuant to this section, it shall be unlawful for any person to
continue to operate the business. If a person continues or threatens
to continue the unlawful operation of the business after having
received proper notice of the closure, upon complaint of the Tax
Commission, the person shall be enjoined from further operating or
conducting the unlawful business. In all cases where injunction
proceedings are brought under this subsection, the Tax Commission
shall not be required to furnish bond. Where notice of closure has
been given in accordance with the provisions of this section, no
further notice shall be required before the issuance of a temporary
restraining order.
K. If a noncompliant taxpayer fails to timely seek
administrative or judicial review of a business closure decision
pursuant to this section, or if the business closure decision is
affirmed after administrative or judicial review, the Tax Commission
shall affix a written notice to all entrances of the business that:
1. Identifies the business as being subject to a business
closure order; and
2. States that the business is prohibited from further
operation.
Added by Laws 2012, c. 338, § 1, eff. Nov. 1, 2012. Amended by Laws
2017, c. 184, § 1, eff. July 1, 2017.
§68-1369. Collection of Delinquent Taxes - Political Subdivisions
Failing to Pay.
(A) All taxes levied in this article which are delinquent
together with any penalty and interest thereon may be collected in
the same manner as any other taxes imposed by law in addition to any
remedies or penalties set out in this article.
(B) All delinquent taxes levied in this article or penalties or
interest shall at all times constitute a lien upon the property of
any person liable for the payment thereof, which shall be prior,
superior and paramount as against the claims of unsecured creditors.
(C) In case any city, town, county or other political subdivision of
this state shall fail or refuse to pay the tax, or any part thereof,
becoming due the state under the terms and provisions of this article
from such city, town, county or other political subdivision, when
due, the Tax Commission shall issue a warrant for the amount of the
tax, penalty and interest, due just as in the case of delinquency of
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any other delinquent taxpayer who fails or refuses to pay the said
tax; and the sheriff shall serve such warrant upon the county
treasurer of the county in which such delinquent taxpayer is located
and from the date of such service the same shall constitute and be a
lien upon all ad valorem tax penalties collected by said treasurer
for and on account of such delinquent taxpayer until the amount of
such delinquent tax due by such taxpayer is paid; and the county
treasurer upon whom such tax warrant is served is hereby directed and
required to remit the amount of all such ad valorem tax penalty when
collected by him to the Tax Commission until the amount due the state
by the taxpayer, against whom such warrant was issued, is paid.
Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981.
§68-1370. County sales tax - Notice of rate change - Exemptions -
Duration – Voting and elections for a levy.
A. In accordance with the provisions of Section 1 of this act,
any county of this state may levy a sales tax of not to exceed two
percent (2%) upon the gross proceeds or gross receipts derived from
all sales or services in the county upon which a consumer's sales tax
is levied by this state. Before a sales tax may be levied by the
county, the imposition of the tax shall first be approved by a
majority of the registered voters of the county voting thereon at a
special election called by the board of county commissioners or by
initiative petition signed by not less than five percent (5%) of the
registered voters of the county who were registered at the time of
the last general election. However, if a majority of the registered
voters of a county voting fail to approve such a tax, the board of
county commissioners shall not call another special election for such
purpose for six (6) months. Any sales tax approved by the registered
voters of a county shall be applicable only when the point of sale is
within the territorial limits of such county. Any sales tax levied
or any change in the rate of a sales tax levied pursuant to the
provisions of this section shall become effective on the first day of
the calendar quarter following approval by the voters of the county
unless another effective date, which shall also be on the first day
of a calendar quarter, is specified in the ordinance or resolution
levying the sales tax or changing the rate of sales tax.
B. The Oklahoma Tax Commission shall give notice to all vendors
of a rate change at least sixty (60) days prior to the effective date
of the rate change. Provided, for purchases from printed catalogs
wherein the purchaser computed the tax based upon local tax rates
published in the catalog, the rate change shall not be effective
until the first day of a calendar quarter after a minimum of one
hundred twenty (120) days' notice to vendors. Failure to give notice
as required by this section shall delay the effective date of the
rate change to the first day of the next calendar quarter.
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C. Initiative petitions calling for a special election
concerning county sales tax proposals shall be in accordance with
Sections 2, 3, 3.1, 6, 18 and 24 of Title 34 of the Oklahoma
Statutes. Petitions shall be submitted to the office of county clerk
for approval as to form prior to circulation. Following approval,
the petitioner shall have ninety (90) days to secure the required
signatures. After securing the requisite number of signatures, the
petitioner shall submit the petition and signatures to the county
clerk. Following the verification of signatures, the county clerk
shall present the petition to the board of county commissioners. The
special election shall be held within sixty (60) days of receiving
the petition. The ballot title presented to the voters at the
special election shall be identical to the ballot as presented in the
initiative petition.
D. Subject to the provisions of Section 1357.10 of this title,
all items that are exempt from the state sales tax shall be exempt
from any sales tax levied by a county.
E. Any sales tax which may be levied by a county shall be
designated for a particular purpose. Such purposes may include, but
are not limited to, projects owned by the state, any agency or
instrumentality thereof, the county and/or any political subdivision
located in whole or in part within such county, regional development,
economic development, common education, general operations, capital
improvements, county roads, weather modification or any other purpose
deemed, by a majority vote of the county commissioners or as stated
by initiative petition, to be necessary to promote safety, security
and the general well-being of the people, including any authorized
purpose pursuant to the Oklahoma Community Economic Development
Pooled Finance Act. The county shall identify the purpose of the
sales tax when it is presented to the voters pursuant to the
provisions of subsection A of this section. Except as otherwise
provided in this section and except as required by the Oklahoma
Community Economic Development Pooled Finance Act, the proceeds of
any sales tax levied by a county shall be deposited in the general
revenue or sales tax revolving fund of the county and shall be used
only for the purpose for which such sales tax was designated. If the
proceeds of any sales tax levied by a county pursuant to this section
are pledged for the purpose of retiring indebtedness incurred for the
specific purpose for which the sales tax is imposed, the sales tax
shall not be repealed until such time as the indebtedness is retired.
However, in no event shall the life of the tax be extended beyond the
duration approved by the voters of the county.
F. 1. Notwithstanding any other provisions of law, any county
that has approved a sales tax for the construction, support or
operation of a county hospital may continue to collect such tax if
such hospital is subsequently sold. Such collection shall only
continue if the county remains indebted for the past construction,
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support or operation of such hospital. The collection may continue
only until the debt is repaid or for the stated term of the sales
tax, whichever period is shorter.
2. If the construction, support or operation of a hospital is
funded through the levy of a county sales tax pursuant to this
section and such hospital is subsequently sold, the county levying
the tax may dissolve the governing board of such hospital following
the sale. Upon the sale of the hospital and dissolution of any
governing board, the county is relieved of any future liability for
the operation of such hospital.
G. Proceeds from any sales tax levied that is designated to be
used solely by the sheriff for the operation of the office of sheriff
shall be placed in the special revenue account of the sheriff.
H. The life of the tax could be limited or unlimited in
duration. The county shall identify the duration of the tax when it
is presented to the voters pursuant to the provisions of subsections
A and C of this section. The maximum duration of a levy imposed
pursuant to Section 891.14 of Title 62 of the Oklahoma Statutes shall
be no longer than allowed pursuant to the Oklahoma Community Economic
Development Pooled Finance Act.
I. Except for the levies imposed pursuant to Section 891.14 of
Title 62 of the Oklahoma Statutes, there are hereby created one or
more county sales tax revolving funds in each county which levies a
sales tax under this section if any or all of the proceeds of such
tax are not to be deposited in the general revenue fund of the county
or comply with the provisions of subsection G of this section. Each
such revolving fund shall be designated for a particular purpose and
shall consist of all monies generated by such sales tax which are
designated for such purpose. Monies in such funds shall only be
expended for the purposes specifically designated as required by this
section. A county sales tax revolving fund shall be a continuing
fund not subject to fiscal year limitations.
J. In the case of a levy submitted for voter approval pursuant
to Section 891.14 of Title 62 of the Oklahoma Statutes, taxes levied
by a county shall not become valid until the ordinance or resolution
setting the rate of the levy shall have been approved by a majority
vote of the registered voters of each such county voting on such
question at a special election. Elections conducted pursuant to
questions submitted pursuant to Section 891.14 of Title 62 of the
Oklahoma Statutes shall be conducted on the same date or in a
sequence that provides that the last vote required for approval by
all participating counties or municipalities occurs not later than
thirty (30) days after the date upon which the first vote occurs.
Added by Laws 1983, c. 8, § 2, eff. Jan. 1, 1984. Amended by Laws
1983, c. 275, § 9, operative Jan. 1, 1984; Laws 1985, c. 1, § 1,
emerg. eff. Feb. 4, 1985; Laws 1985, c. 167, § 1, emerg. eff. June
18, 1985; Laws 1993, c. 319, § 1, emerg. eff. June 7, 1993; Laws
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1994, c. 159, § 1, eff. Sept. 1, 1994; Laws 1994, c. 303, § 1, eff.
July 1, 1994; Laws 1996, c. 228, § 1, emerg. eff. May 23, 1996; Laws
1998, c. 301, § 9, eff. Nov. 1, 1998; Laws 2001, c. 23, § 1, emerg.
eff. April 3, 2001; Laws 2002, c. 381, § 5, eff. July 1, 2002; Laws
2003, c. 472, § 18; Laws 2004, c. 5, § 75, emerg. eff. March 1, 2004;
Laws 2004, c. 103, § 1, emerg. eff. April 14, 2004; Laws 2004, c.
317, § 1, emerg. eff. May 19, 2004; Laws 2007, c. 136, § 4, eff. July
1, 2007; Laws 2009, c. 309, § 17, eff. July 1, 2009; Laws 2015, c.
254, § 2, eff. Nov. 1, 2015.
NOTE: Laws 2003, c. 413, § 16 repealed by Laws 2004, c. 5, § 76,
emerg. eff. March 1, 2004.
§68-1370.1. Counties - Sales tax.
Notwithstanding the provisions of Section 1370 of this title and
in accordance with the provisions of Section 1 of this act, any
county of this state with a population of more than three hundred
thousand (300,000) according to the latest Federal Decennial Census
may levy a sales tax of not to exceed one-half of one percent (1/2 of
1%) upon the gross proceeds or gross receipts derived from all sales
or services in the county upon which a consumer's sales tax is levied
by the state subject to the following conditions:
1. The proceeds of such sales tax shall be used solely for the
purpose of constructing and equipping county jail facilities or
capital improvements for jail facilities only;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. Such sales tax can only be imposed for a period not to exceed
three (3) years; and
4. Any special election called pursuant to this section must be
held no later than January 1, 1992.
Added by Laws 1987, c. 149, § 2, emerg. eff. June 24, 1987. Amended
by Laws 1990, c. 192, § 1, eff. Sept. 1, 1990; Laws 2015, c. 254, §
3, eff. Nov. 1, 2015.
§68-1370.2. Counties with population of more than 300,000 - Sales
tax - Use of proceeds - Aircraft maintenance or manufacturing
facilities - Approval by voters - Time period.
Notwithstanding the provisions of Section 1370 of this title and
in accordance with the provisions of Section 1 of this act, any
county of this state with a population of more than three hundred
thousand (300,000) according to the latest Federal Decennial Census
may levy a sales tax of not to exceed one percent (1%) upon the gross
proceeds or gross receipts derived from all sales or services in the
county upon which a consumer's sales tax is levied by the state,
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except as provided in paragraph 8 of Section 1357 of this title,
subject to the following conditions:
1. The proceeds of such sales tax and the interest thereon shall
be used solely for the purpose of development of qualified aircraft
maintenance or manufacturing facilities and any necessary
infrastructure changes or airport improvements directly related to
such facilities located within the county to be owned by the county,
any municipality within the county or a public trust in which the
county or municipality is a beneficiary. However, such municipality
or public trust shall hold such title for the use and benefit of the
residents of the entire county in which the tax is levied and
collected. The acceptance by the municipality or public trust of any
title or tax proceeds shall be deemed an acceptance of this
requirement. The board of county commissioners of any county that
has approved the imposition of a sales tax pursuant to this section
may not commence the collection of any such sales tax until a
qualified aircraft maintenance or manufacturing facility has signed
an agreement to locate such facility within the county. As used in
this paragraph, "qualified aircraft maintenance or manufacturing
facility" means a new or expanding facility primarily engaged in
aircraft repair, building or rebuilding, whether or not on a factory
basis, whose total cost of construction exceeds the sum of One
Hundred Fifty Million Dollars ($150,000,000.00) and which employs at
least one thousand (1,000) new full-time-equivalent employees, as
certified by the Employment Security Commission upon completion of
the facility;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. The monies collected pursuant to the provisions of this
section shall only be expended by the board of county commissioners
to finance an amount not to exceed twenty-five percent (25%) of the
total cost of construction of the qualified aircraft maintenance or
manufacturing facility and any necessary infrastructure changes or
airport improvements directly related to such facility; and
4. Such sales tax can only be imposed for a period not to exceed
three (3) years.
Added by Laws 1991, 1st Ex. Sess., c. 1, § 5, emerg. eff. Jan. 18,
1991. Amended by Laws 2015, c. 254, § 4, eff. Nov. 1, 2015.
§68-1370.2A. Counties with population of more than 300,000 - Sales
tax - Acquisition and development of qualified manufacturing
facilities.
Notwithstanding the provisions of Section 1370 of this title and
in accordance with the provisions of Section 1 of this act, any
county of this state with a population of more than three hundred
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thousand (300,000) according to the latest Federal Decennial Census
may levy a sales tax of not to exceed one percent (1%) upon the gross
proceeds or gross receipts derived from all sales or services in the
county upon which a consumer's sales tax is levied by the state
subject to the following conditions:
1. The proceeds of such sales tax and the interest thereon shall
be used solely for the purpose of acquisition and development of
qualified manufacturing facilities, related machinery and equipment
and any necessary infrastructure changes or improvements related to
such facilities located within the county to be owned by the county,
any municipality within the county or a public trust in which the
county or municipality is a beneficiary. However, such municipality
or public trust shall hold such title for the use and benefit of the
residents of the entire county in which the tax is levied and
collected. The acceptance by the municipality or public trust of any
title or tax proceeds shall be deemed an acceptance of this
requirement. The board of county commissioners of any county that
has approved the imposition of a sales tax pursuant to this section
may not commence the collection of any such sales tax until a
qualified manufacturing facility has signed an agreement to locate
such facility within the county. As used in this paragraph,
"qualified manufacturing facility" means a new or expanding facility
primarily engaged in manufacturing, production and/or assembly of
consumer or other products, whether or not on a factory basis, whose
total cost of acquisition and construction exceeds the sum of Fifteen
Million Dollars ($15,000,000.00) and which will employ at least one
thousand (1,000) new full-time-equivalent employees, as certified by
the Employment Security Commission within three (3) years after the
completion of the facility;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners in the
manner provided by law for county elections;
3. The monies collected pursuant to the provisions of this
section shall only be expended by the board of county commissioners
to finance an amount not to exceed twenty-five percent (25%) of the
total cost related to the acquisition and construction of the
qualified manufacturing facility, related machinery and equipment and
any necessary infrastructure changes or improvements directly related
to such facility; and
4. Such sales tax can only be imposed for a period not to exceed
three (3) years.
Added by Laws 1994, c. 1, § 1, emerg. eff. Feb. 25, 1994. Amended by
Laws 1994, c. 7, § 4, emerg. eff. March 29, 1994; Laws 2015, c. 254,
§ 5, eff. Nov. 1, 2015.
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§68-1370.3. County sales tax - Aircraft maintenance or manufacturing
facilities - Tax relief - Claims - Computation - Deadline for
submission.
A. Any person who is a resident of and domiciled in a county
which levies a sales tax pursuant to Section 1370.2 of this title or
Section 2 of this act during the time such tax was in effect and
whose gross household income does not exceed Twelve Thousand Dollars
($12,000.00) per year for each year in which the tax is in effect
shall be eligible to file a claim for sales tax relief pursuant to
the provisions of this section.
B. 1. Except as otherwise provided in paragraph 2 of this
subsection, any inmate in the custody of the Department of
Corrections during any part of a calendar year shall not be eligible
to file a claim for sales tax relief pursuant to subsection A of this
section for such calendar year. The provisions of this subsection
shall not prohibit all other members of the household of an inmate
from filing a claim based upon the personal exemptions to which the
household members would be entitled pursuant to the provisions of the
Oklahoma Income Tax Act, Section 2351 et seq. of this title.
2. Any inmate in the custody of the Department of Corrections
who is assigned to pre-parole conditional supervision, house arrest
or is housed at a community treatment center or halfway house which
is under contract with the Department shall be eligible to file a
claim for sales tax relief pursuant to subsection A of this section.
C. The amount of the claim filed pursuant to this section shall
be Forty Dollars ($40.00) multiplied by the number of personal
exemptions to which the taxpayer would be entitled pursuant to the
provisions of the Oklahoma Income Tax Act, except for the exemptions
such taxpayer would be entitled to pursuant to Section 2358 of this
title if such taxpayer or spouse is blind or sixty-five (65) years of
age or older at the close of the tax year.
D. All claims for relief authorized by this section shall be
received by and in the possession of the board of county
commissioners after December 31, 1993, and before July 1, 1994. The
failure of a claimant to file a claim for relief as authorized by
this subsection shall be deemed a forfeiture of the claimant's right
to receive such relief.
E. All claims authorized by this section shall be made under
oath and filed on forms prescribed and provided by the board of
county commissioners. Such forms shall contain appropriate
certifications, under a penalty of perjury, sufficient to verify the
claim. The board of county commissioners or its designee may request
additional information to determine the claimant's eligibility to
receive the sales tax relief authorized by this section. Willful
failure to provide such information shall be deemed by the board or
its designee to be grounds for denial of the claim or modification of
the amount of the claim.
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F. As used in this section: "Gross household income" means the
gross amount of income of every type, regardless of the source,
received by all persons occupying the same household, whether such
income was taxable or nontaxable for federal or state income tax
purposes, including pensions, annuities, federal social security,
unemployment payments, veteran disability compensation, public
assistance payments, alimony, support money, worker's compensation,
loss of time insurance payments, capital gains and any other type of
income received; and excluding gifts.
Added by Laws 1991, 1st Ex. Sess., c. 1, § 6, emerg. eff. Jan. 18,
1991. Amended by Laws 1992, c. 287, § 1, eff. Sept. 1, 1992.
§68-1370.4. County sales tax - Conditions for levy.
Notwithstanding the provisions of Section 1370 of this title and
in accordance with the provisions of Section 1 of this act, any
county of this state with a population of more than three hundred
thousand (300,000) according to the latest Federal Decennial Census
may levy a sales tax of not to exceed one percent (1%) upon the gross
proceeds or gross receipts derived from all sales or services in the
county upon which a consumer's sales tax is levied by the state,
except as provided in paragraph 8 of Section 1357 of this title,
subject to the following conditions:
1. The proceeds of such sales tax and the interest thereon shall
be used solely for the purpose of development of facilities for lease
or conveyance to the government of the United States and any
necessary infrastructure changes or improvements directly related to
such facilities located within the county. The board of county
commissioners of any county that has approved the imposition of a
sales tax pursuant to this section may not commence the collection of
any such sales tax until an agreement to locate such facility within
the county is reached;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. The monies collected pursuant to the provisions of this
section shall only be expended by the board of county commissioners
to finance the construction of the facility and any necessary
infrastructure changes or improvements directly related to such
facility; and
4. Such sales tax can only be imposed for a period not to exceed
three (3) years.
Added by Laws 1992, c. 287, § 2, eff. Sept. 1, 1992. Amended by Laws
2015, c. 254, § 6, eff. Nov. 1, 2015.
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§68-1370.5. County sales tax - Levy of tax on gross proceeds or
receipts derived from certain consumer sales and services to fund
economic development projects.
A. Notwithstanding the provisions of Section 1370 of this title
and in accordance with the provisions of Section 1 of this act, any
county of this state with a population of more than three hundred
thousand (300,000) according to the latest Federal Decennial Census
may levy a sales tax of not to exceed one percent (1%) upon the gross
proceeds or gross receipts derived from all sales or services in the
county upon which a consumer's sales tax is levied by the state,
except as provided in paragraph 8 of Section 1357 of this title,
subject to the following conditions:
1. The proceeds of such sales tax shall be used solely for the
purpose of funding one or more economic development projects;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. Such sales tax can only be imposed for a period of not to
exceed three (3) years; and
4. Any special election called pursuant to this section must be
held no later than March 1, 1994.
B. The board of county commissioners shall create a limited-
purpose fund and deposit therein any revenue generated by any sales
tax levied pursuant to the provisions of subsection A of this
section. The fund shall be placed in an insured or collateralized
interest-bearing account and the interest which accrues to the fund
shall be retained in the fund. Monies in the limited-purpose fund
shall be expended only as accumulated and only for the purpose
specifically described in paragraph 1 of subsection A of this
section.
C. As used in this section, "economic development project" means
any project which the board of county commissioners determines will
promote, enhance or improve economic conditions within the county.
Added by Laws 1993, c. 275, § 14, eff. July 1, 1993. Amended by Laws
2015, c. 254, § 7, eff. Nov. 1, 2015.
§68-1370.6. County sales tax - Levy of tax on gross proceeds or
receipts derived from certain consumer sales and services to fund
projects for new public improvements.
A. Notwithstanding the provisions of Section 1370 of this title
and in accordance with Section 1 of this act, any county of this
state with a population of more than three hundred thousand (300,000)
according to the latest Federal Decennial Census may levy a sales tax
of not to exceed one percent (1%) upon the gross proceeds or gross
receipts derived from all sales or services in the county upon which
a consumer's sales tax is levied by the state, except as provided in
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paragraph 8 of Section 1357 of this title, subject to the following
conditions:
1. The proceeds of such sales tax shall be used solely for the
purpose of funding one or more projects for new public improvements;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. Such sales tax can only be imposed for a period of not to
exceed three (3) years; and
4. Any special election called pursuant to this section must be
held no later than March 1, 1994.
B. The board of county commissioners shall create a limited-
purpose fund and deposit therein any revenue generated by any sales
tax levied pursuant to the provisions of subsection A of this
section. The fund shall be placed in an insured interest-bearing
account and the interest which accrues to the fund shall be retained
in the fund. Monies in the limited-purpose fund shall be expended
only as accumulated and only for the purpose specifically described
in paragraph 1 of subsection A of this section.
C. As used in this section:
1. "Projects for new public improvements" means any new and
beneficial change, addition, betterment or enhancement of or upon any
real property belonging to a public agency, intended to enhance the
value, beauty or utility of said property or to adapt it to new or
further purposes; and
2. "Public agency" means the State of Oklahoma and any county,
city, public trust or other public entity specifically created by the
statutes of the State of Oklahoma or as a result of statutory
authorization contained therein.
Added by Laws 1993, c. 275, § 15, eff. July 1, 1993. Amended by Laws
2015, c. 254, § 8, eff. Nov. 1, 2015.
§68-1370.7. Creation of transportation or regional economic
development authorities – Sales tax levy – Dissolution.
A. As used in this section, the following terms shall have the
following meanings:
1. "Agency" includes but is not limited to extant transportation
operating systems;
2. "Operation" includes but is not limited to leasing services,
contracting for services, planning, staffing, operating, financing,
construction and maintenance of a transportation or regional economic
project regardless of the source of funding;
3. "Regional district" means a specific governing and assessment
district created out of any combination of any portions of any
cities, towns or counties, either equal to or less than the entirety
of the boundaries of such cities, towns or counties;
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4. "Transportation project or system" includes but is not
limited to transit, commuter and passenger rail service or operations
or intermodal facilities, the components of which contribute to a
system that incorporates transportation modes of highway, air, rail
and waterway together in order to facilitate the movement of
commerce; and
5. "User fees" means farebox revenues.
B. Any combination of cities, towns and counties, or their
agencies, by resolution of their governing boards, may jointly create
a transportation authority or regional economic development authority
and a regional district pursuant to the provisions of Section 176 of
Title 60 of the Oklahoma Statutes for the purpose of planning,
financing, construction, maintenance and operation of transportation
or regional economic development projects located within the
boundaries of such regional district. An authority created pursuant
to the provisions of this subsection shall have the powers granted
pursuant to the provisions of Section 176 of Title 60 of the Oklahoma
Statutes in addition to the powers granted pursuant to the provisions
of this section except that no transportation or regional economic
development authority created pursuant to the provisions of this
subsection shall have any power or authority to exercise or to
attempt to exercise any powers of eminent domain. The combination of
cities, towns and counties, or their agencies, creating the authority
shall be designated the beneficiary of the authority. The boundaries
of the authority shall be coterminous with the boundaries of the
regional district. The authority shall be governed by a board of
directors appointed by the governing boards of the cities, towns or
counties creating such authority, and the representative makeup of
the board and the number of directors, their duties and terms of
service shall be determined by such governing boards creating such
authority.
C. Any transportation authority or regional economic development
authority created pursuant to the provisions of subsection B of this
section may levy a sales tax of not to exceed two percent (2%) upon
the gross proceeds or gross receipts derived from all sales or
services in the regional district comprising the authority upon which
a consumer's sales tax is levied by this state. Before a sales tax
may be levied by the authority, the imposition of the tax shall first
be approved by a majority of votes cast by the registered voters
within the boundaries of the regional district comprising the
authority voting thereon at a special election jointly called by the
governing boards of the cities, towns and counties comprising the
authority. Provided, if a majority of the votes cast by registered
voters of an authority voting fail to approve such a tax, the
governing boards of such cities, towns and counties shall not jointly
call another special election for such purpose for at least six (6)
months. Any sales tax approved by the registered voters of an
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authority shall be applicable only when the point of sale is within
the boundaries or limits of the authority and provided no other sales
tax is being levied pursuant to this section in the same regional
district during the same time period.
D. All items that are exempt from the state sales tax shall be
exempt from any sales tax levied pursuant to the provisions of this
section.
E. Any sales tax which may be levied pursuant to the provisions
of this section shall be designated for the purposes of planning,
financing, construction, maintenance and operation of transportation
or regional economic development projects within the boundaries of
the authority. The authority shall identify the purpose of the sales
tax when it is presented to the voters pursuant to the provisions of
this section. The proceeds of any sales tax levied by an authority
shall be used only for the purposes for which the sales tax was
designated.
F. The authority shall identify the specific duration of the tax
when it is presented to the voters pursuant to the provisions of this
section and shall include specific language in the ballot title
disclosing the duration of the tax. A levy by a transportation
authority or a regional economic development authority shall have a
maximum duration of thirty (30) years if the proceeds from the tax
are pledged to the repayment of indebtedness, a maximum duration of
twenty (20) years if the proceeds from the tax are to be used for
expenditures other than the repayment of indebtedness, or for as long
as such authority is in operation.
G. An authority created pursuant to the provisions of subsection
B of this section may utilize the provisions of the Local Development
Act as it relates to the financing of such transportation or regional
economic development projects.
H. A transportation or regional economic development authority
created pursuant to this section shall exist for the duration of the
operation and no longer than one (1) year after cessation of the
operation.
I. Providing that at cessation of operations the proceeds of any
tax levied by an authority pursuant to this section are pledged for
the purpose of retiring indebtedness incurred for the specific
purpose for which the tax is imposed, the tax shall not be repealed
until such time as the indebtedness is retired. In no event shall
the life of the tax be extended beyond the duration approved by the
voters of the authority.
J. If the revenue collected from any taxes levied by the
authority exceeds the amount necessary for payment of any and all
expenses incurred by the authority in the planning, financing,
construction, maintenance and operation of transportation or regional
economic development projects, the excess funds shall be apportioned
to the general funds of the cities, towns and counties comprising the
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authority in proportion to the population of each city, town and
county within the regional district.
K. A transportation authority created pursuant to the provisions
of subsection B of this section may provide for the financing of a
transportation system utilizing any revenue measures available
pursuant to subsections B through J of this section in combination
with revenue derived from user fees.
Added by Laws 1995, c. 332, § 1, eff. Nov. 1, 1995. Amended by Laws
2003, c. 336, § 2, emerg. eff. May 29, 2003; Laws 2006, c. 308, § 1,
eff. Nov. 1, 2006; Laws 2010, c. 117, § 1, eff. Nov. 1, 2010; Laws
2011, c. 359, § 1, eff. Nov. 1, 2011; Laws 2014, c. 379, § 1, eff.
Nov. 1, 2014.
§68-1370.8. Creation of hospital authorities - Sales tax levy -
Dissolution.
A. In accordance with the provisions of Section 1 of this act,
any combination of cities, towns and counties, by resolution of their
governing boards, may jointly create a hospital authority pursuant to
the provisions of Section 176 of Title 60 of the Oklahoma Statutes
for the purpose of planning, financing and constructing hospitals or
related medical facilities located within the boundaries of such
cities, towns or counties. An authority created pursuant to the
provisions of this subsection shall have the powers granted pursuant
to the provisions of Section 176 of Title 60 of the Oklahoma Statutes
in addition to the powers granted pursuant to the provisions of this
section. The combination of cities, towns and counties creating the
authority shall be designated the beneficiary of the authority. The
boundaries of the authority shall be coterminous with the boundaries
of the cities, towns or counties creating the authority.
B. Any hospital authority created pursuant to the provisions of
subsection A of this section may levy a sales tax of not to exceed
two percent (2%) upon the gross proceeds or gross receipts derived
from all sales or services in the cities, towns and counties
comprising the authority upon which a consumer's sales tax is levied
by this state. Before a sales tax may be levied by the authority,
the imposition of the tax shall first be approved by a majority of
the registered voters within the boundaries of each of the cities,
towns and counties comprising the authority voting thereon at a
special election jointly called by the governing boards of the
cities, towns and counties comprising the authority. Provided, if a
majority of the registered voters of an authority voting fail to
approve such a tax, the governing boards of such cities, towns and
counties shall not jointly call another special election for such
purpose for at least six (6) months. Any sales tax approved by the
registered voters of an authority shall be applicable only when the
point of sale is within the boundaries or limits of the authority.
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C. All items that are exempt from the state sales tax shall be
exempt from any sales tax levied pursuant to the provisions of this
section.
D. Any sales tax which may be levied pursuant to the provisions
of this section shall be designated for the purposes of planning,
financing and constructing hospitals or related medical facilities
within the boundaries of the authority. The authority shall identify
the purpose of the sales tax when it is presented to the voters
pursuant to the provisions of this section. The proceeds of any
sales tax levied by an authority shall be used only for the purposes
for which the sales tax was designated.
E. The authority shall identify the duration of the tax when it
is presented to the voters pursuant to the provisions of this
section.
F. An authority created pursuant to the provisions of subsection
A of this section may utilize the provisions of the Local Development
Act as it relates to the financing of such hospitals or related
medical facilities.
G. An authority created pursuant to the provisions of subsection
A of this section shall be dissolved:
1. At such time as the planning, financing and constructing of
the hospitals or related medical facilities within the boundaries of
the authority is completed; and
2. At such time as the revenue collected from any taxes levied
by the authority is sufficient for payment of any and all expenses
incurred by the authority in the planning, financing and constructing
of a hospital or related medical facility.
H. If the proceeds of any tax levied by an authority pursuant to
this section are pledged for the purpose of retiring indebtedness
incurred for the specific purpose for which the tax is imposed, the
tax shall not be repealed until such time as the indebtedness is
retired. Notwithstanding any other provisions of law, any county or
hospital authority that has approved a sales tax for the support and
operation of a county hospital may continue to collect such tax if
such hospital is subsequently sold. Such collection shall only
continue if the county or hospital authority remains indebted for the
support and operation of such hospital and only until the debt is
repaid or for the stated term of the tax, whichever period is
shorter. In no event shall the life of the tax be extended beyond
the duration approved by the voters of the authority.
I. If the revenue collected from any taxes levied by the
authority exceeds the amount necessary for payment of any and all
expenses incurred by the authority in the planning, financing and
constructing of hospitals or related medical facilities, the excess
funds shall be apportioned to the general funds of the cities, towns
and counties comprising the authority in proportion to the population
of each city, town and county.
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J. If the construction, support, or operation of a hospital is
funded through the levy of a sales tax by a county or hospital
authority pursuant to this section and such hospital is subsequently
sold, the county or hospital authority levying the tax may dissolve
the governing board of such hospital at the time of the sale. When
the sale of the hospital and dissolution of any governing board is
final, the county or hospital authority is thereby relieved of any
liability for the operation of such hospital.
Added by Laws 1996, c. 86, § 1, eff. Nov. 1, 1996. Amended by Laws
2004, c. 103, § 2, emerg. eff. April 14, 2004; Laws 2015, c. 254, §
9, eff. Nov. 1, 2015.
§68-1370.9. Lodging tax – Approval by voters – Designation of
purpose – Revolving funds.
A. In addition to any other sales tax levied by a county
pursuant to the provisions of Section 1350 et seq. of this title, any
county of this state having a population of less than Two Hundred
Thousand (200,000), according to the latest Federal Decennial Census,
may levy a lodging tax, not to exceed five percent (5%), upon the
gross proceeds or gross receipts derived from the service of
furnishing of rooms by hotel, apartment hotel, or motel and for the
furnishing of any other facility for public lodging, except
campsites. Before such a tax may be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by the board of county commissioners or by initiative petition
signed by not less than five percent (5%) of the registered voters of
the county who were registered at the time of the last general
election. However, if a majority of the registered voters of a
county voting fail to approve such a tax, the board of county
commissioners shall not call another special election for such
purpose for six (6) months. Any tax levied or any change in the rate
of a tax levied pursuant to the provisions of this section shall
become effective on the first day of the calendar quarter following
approval by the voters of the county unless another effective date,
which shall also be on the first day of a calendar quarter, is
specified in the ordinance or resolution levying the tax or changing
the rate of tax.
B. Any tax which may be levied by a county pursuant to the
provisions of this section shall be inapplicable to the furnishing of
public lodging in the corporate limits of any municipality in the
county which has levied a lodging tax.
C. Any tax which may be levied by a county pursuant to the
provisions of this section shall be designated for a particular
purpose. The proceeds of any tax levied by a county pursuant to the
provisions of this section shall be deposited in the general revenue
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or a lodging tax revolving fund of the county pursuant to subsection
E of this section.
D. The tax may be limited or unlimited in duration. The county
shall identify the duration of the tax when it is presented to the
voters pursuant to the provisions of subsection A of this section.
E. There are hereby created one or more county lodging tax
revolving funds in each county which levies a tax pursuant to the
provisions of this section if any or all of the proceeds of such tax
are not to be deposited in the general revenue fund of the county.
Each such revolving fund shall be designated for a particular purpose
and shall consist of all monies generated by such tax which are
designated for such purpose. Monies in such funds shall only be
expended for the purposes specifically designated as required by this
section. A county lodging tax revolving fund shall be a continuing
fund, not subject to fiscal year limitations.
F. 1. The particular purpose required by subsection C of this
section shall be presumed to include the following:
a. advertising the particular purpose within or without
this state, and
b. investing the funds and later expending the funds or
any earnings or both for the particular purpose.
2. The provisions of this subsection shall apply to any levy in
effect on or after July 1, 2009.
Added by Laws 2001, c. 215, § 1, eff. Nov. 1, 2001. Amended by Laws
2002, c. 200, § 1, eff. Nov. 1, 2002; Laws 2009, c. 63, § 1.
§68-1371. County sales tax - Assessment, collection, and
enforcement.
Any sales tax levied by a county pursuant to the provisions of
Section 1370 of this title shall be paid by the consumer to the
vendor. The board of county commissioners and the Oklahoma Tax
Commission shall enter into a contract whereby the Tax Commission
shall have authority to assess, collect, and enforce the sales tax,
and any penalties or interest thereon, levied by such county, and to
remit the same to the county. Such assessment, collection, and
enforcement authority shall apply to any sales tax, and any penalty
or interest liability existing at the time of contracting. Upon
contracting, the Tax Commission shall have the power of enforcement
of the sales tax, and any penalties or interest that are vested in
the county. The contract shall provide for the assessment,
collection, and enforcement of the sales tax, and the penalties or
interest, in the same manner as the administration, collection, and
enforcement of the state sales tax by the Tax Commission. For
providing such collection assistance, the Tax Commission shall charge
the county a fee of one-half of one percent (0.5%) of the gross
collection proceeds.
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The Tax Commission shall place all sales taxes, including
penalties and interest, collected on behalf of a county pursuant to
the provisions of this section in the Sales Tax Remitting Account as
provided in Section 1373 of this title. As used in this section and
Sections 1372, 1373 and 1374 of this title, "sales tax" includes any
tax imposed pursuant to the provisions of Section 1370.9 of this
title.
Added by Laws 1983, c. 8, § 3, eff. Jan. 1, 1984. Amended by Laws
1989, c. 168, § 1, eff. Nov. 1, 1989; Laws 2001, c. 215, § 2, eff.
Nov. 1, 2001; Laws 2010, c. 412, § 15, eff. July 1, 2010; Laws 2014,
c. 303, § 2, eff. July 1, 2015.
§68-1372. County sales tax as lien.
The sales tax levied by a county and any penalties or interest
thereon shall constitute a lien in favor of such county from the date
the sales tax is due and payable upon all real or personal property
then belonging to or thereafter acquired by the person owing the tax,
whether such property is employed by such person in the conduct of
business or is in the hands of an assignee, trustee, or receiver for
the benefit of creditors. The lien shall be coequal with all tax
liens created by law, except for specific tax liens the Legislature
by law declares to be first or prior liens. The liens created
pursuant to the provisions of this section shall be prior, superior,
and paramount to all other liens, claims, or encumbrances on the
property of the person, firm, or corporation owing the tax. Such
liens, however, shall be inferior to those of any bona fide
mortgagee, pledgee, judgment creditor, or purchaser who has filed or
recorded said mortgages or conveyances in the office of the county
clerk of the county in which the property is located, and whose
rights shall have attached prior to the date on which the notice of
the lien of the claiming county is entered upon the district court
judgment docket in the office of the court clerk in the county in
which the property is located. Such sales tax, penalty, and interest
owed the county shall, at all times, constitute a prior, superior,
and paramount claim as against the claims of unsecured creditors. The
lien of the county shall continue until the amount of the tax and
penalty due and owing and interest subsequently accruing thereon is
paid. In any action affecting the title to real estate or the
ownership or right to possession of personal property, the county
asserting a lien on such property may be made a party defendant for
the purpose of determining its lien upon the property involved
therein only in cases where notice of the lien of the county has been
entered upon the district court judgment docket. In such action
service of summons upon the county by serving the county clerk shall
be sufficient service and binding upon the county.
Added by Laws 1983, c. 8, § 4, eff. Jan. 1, 1984.
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§68-1373. Sales Tax Remitting Account - Creation - Contents -
Investment of deposits.
A. There is hereby created within the State Treasury an account
to be designated the "Sales Tax Remitting Account".
B. The account shall consist of all sales tax revenue, penalties
and interest, collected by the Oklahoma Tax Commission pursuant to
the Oklahoma Sales Tax Code, Section 1350 et seq. of this title, all
sales tax revenue, penalties and interest collected by the Oklahoma
Tax Commission on behalf of counties or municipalities pursuant to a
contractual agreement authorized by Section 1371 or Section 2702 of
this title and all use tax revenue, penalties and interest collected
by the Oklahoma Tax Commission on behalf of municipalities pursuant
to a contractual agreement authorized by Section 2702 of this title.
C. The State Treasurer shall invest the monies deposited in the
Sales Tax Remitting Account in investments as authorized by law for
municipalities and counties and in a manner consistent with the
requirements of law concerning remittance of sales tax revenue to
municipalities and counties upon behalf of which the Oklahoma Tax
Commission collects such taxes.
Added by Laws 1989, c. 168, § 3, eff. Oct 1, 1989. Amended by Laws
1990, c. 60, § 1, emerg. eff. April 16, 1990.
§68-1374. Sales Tax Remitting Account - Certification of interest
earned - Remittance to municipalities and counties.
A. Not later than the fifth day of each month, the State
Treasurer shall determine and shall certify to the Oklahoma Tax
Commission the aggregate amount of interest earned upon the total of
all amounts deposited to the Sales Tax Remitting Account during the
preceding month.
B. Not later than the fifteenth day of each month, the Oklahoma
Tax Commission, acting on behalf of a municipality or county for
collection of sales taxes and on behalf of a municipality for
collection of use taxes, shall determine and then remit to each
municipality or county:
1. The amount of sales tax revenue, penalties and interest
collected on behalf of the municipality or county and the amount of
use tax revenue, penalties and interest collected on behalf of the
municipality for the preceding month; and
2. An amount equal to the municipality's or county's
proportionate share of the total interest earned upon all amounts
deposited to the Sales Tax Remitting Account for the month as
determined by the Oklahoma Tax Commission as provided in subsections
C and D of this section.
C. The proportionate share of interest earned by each
municipality shall be determined by dividing the total deposit of
sales tax or use tax revenue, penalties and interest made on behalf
of each municipality for the month, after deduction of the retention
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fee authorized by Section 2702 of Title 68 of the Oklahoma Statutes,
by the total amount of all sales tax or use tax revenue, penalties
and interest deposited into the Sales Tax Remitting Account for the
same month. The resulting figure shall be multiplied by the total
amount of interest earned upon all deposits of sales tax or use tax
revenue, penalties and interest made to the Sales Tax Remitting
Account for the same month. The resulting dollar amount shall be
remitted to each municipality together with the amount as required by
paragraph 1 of subsection B of this section.
D. The proportionate share of interest earned by each county
shall be determined by dividing the total deposit of sales tax
revenue, penalties and interest made on behalf of each county for the
month, after deduction of the one-percent fee authorized by Section
1371 of Title 68 of the Oklahoma Statutes, by the total amount of all
sales tax revenue, penalties and interest deposited into the Sales
Tax Remitting Account for the same month. The resulting figure shall
be multiplied by the total amount of interest earned upon all
deposits of sales tax revenue, penalties and interest made to the
Sales Tax Remitting Account for the same month. The resulting dollar
amount shall be remitted to each county together with the amount as
required by paragraph 1 of subsection B of this section.
Added by Laws 1989, c. 168, § 4, eff. Nov. 1, 1989. Amended by Laws
1990, c. 60, § 2, emerg. eff. April 16, 1990.
§68-1375. Digital mapping system - Information to vendors.
A. In order to provide for the efficient and accurate
administration of sales and use taxes, the Oklahoma Tax Commission is
authorized to develop and maintain a digital mapping system for
municipal boundaries. The Tax Commission shall coordinate the
development of the mapping system with municipalities.
B. The Tax Commission shall provide vendors subject to the
provisions of subparagraph g of paragraph 13 of Section 1352 of this
title with information as may be necessary to assist such vendors in
determining the appropriate municipal or county sales or use tax rate
at a place of delivery of tangible personal property or services
subject to sales or use tax.
Added by Laws 2000, c. 314, § 20, eff. July 1, 2000. Amended by Laws
2003, c. 125, § 2, eff. July 1, 2003.
§68-1376. Printing - Printing-related activities - Distribution of
printed materials - Exemptions.
The following activities, either singularly or in the aggregate,
with respect to any person that is not otherwise required to remit
sales and use taxes to the State of Oklahoma, that has contracted
with a commercial printer for any printing, including printing-
related activities and distribution of printed materials, to be
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performed in Oklahoma, shall not require such person to remit sales
and use taxes to this state:
1. The ownership by that person of tangible or intangible
property located at the Oklahoma premises of the commercial printer
for use by the printer in performing its services for the owner;
2. The periodic presence of employees of that person at the
Oklahoma premises of the commercial printer which is directly related
to the services provided by that commercial printer; or
3. The printing, including printing-related activities and
distribution of printed materials, performed by the commercial
printer in Oklahoma for or on behalf of that person.
Added by Laws 2001, c. 15, § 1, emerg. eff. April 4, 2001.
§68-1377. Clothing or footwear - Certain sales exempted from county
sales tax.
The sales tax imposed by any county or authority authorized by
law to levy a sales tax shall not be imposed upon the sale of an
article of clothing or footwear designed to be worn on or about the
human body in accordance with and to the extent set forth in Section
3 of this act.
Added by Laws 2007, c. 136, § 5, eff. July 1, 2007.
§68-1391. Definitions.
As used in this act:
1. "Affiliated person" means a person that, with respect to
another person:
a. has a direct or indirect ownership interest of more
than five percent (5%) in the other person, or
b. is related to the other person because a third person,
or group of third persons who are affiliated with each
other as defined in this subsection, holds a direct or
indirect ownership interest of more than five percent
(5%) in the related person;
2. "Forum" means a place where sales at retail occur, whether
physical or electronic. The term includes a store, a booth, a
publicly accessible Internet website, a catalog or similar place;
3. "Marketplace facilitator" means a person that facilitates the
sale at retail of tangible personal property. For purposes of this
section, a person facilitates a sale at retail if the person or an
affiliated person:
a. lists or advertises tangible personal property for sale
at retail in any forum, and
b. either directly or indirectly through agreements or
arrangements with third parties, collects the payment
from the purchaser and transmits the payment to the
person selling the property.
The term includes a person that may also be a vendor;
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4. "Marketplace seller" means a person that has an agreement
with a marketplace facilitator pursuant to which the marketplace
facilitator facilitates sales for the person;
5. "Notice and reporting requirements" means the notice
requirements under Section 4 of this act and the reporting
requirements under Sections 5 and 6 of this act;
6. "Referral" means the transfer by a referrer of a potential
purchaser to a person that advertises or lists products for sale on
the referrer's platform;
7. a. "Referrer" means the person, other than a person
engaging in the business of printing or publishing a
newspaper, that, pursuant to an agreement or
arrangement with a marketplace seller or remote seller,
does the following:
(1) agrees to list or advertise for sale at retail one
or more products of the marketplace seller or
remote seller in a physical or electronic medium,
(2) receives consideration from the marketplace seller
or remote seller from the sale offered in the
listing or advertisement,
(3) transfers by telecommunications, Internet link or
other means, a purchaser to a marketplace seller,
remote seller or affiliated person to complete a
sale,
(4) does not collect a receipt from the purchaser for
the sale.
b. The term does not include a person that:
(1) provides Internet advertising services, and
(2) does not provide the marketplace seller's or
remote seller's shipping terms or advertise
whether a marketplace seller or remote seller
collects a sales or use tax.
c. The term includes a person that may also be a vendor;
and
8. "Remote seller" means a person, other than a marketplace
facilitator, a marketplace seller or a referrer, that does not
maintain a place of business in this state that, through a forum,
sells tangible personal property at retail, the sale or use of which
is subject to the tax imposed by Section 1354 or 1402 of Title 68 of
the Oklahoma Statutes. The term does not include an employee who in
the ordinary scope of employment renders services to his employer in
exchange for wages and salaries.
Added by Laws 2018, 2nd Ex. Sess., c. 17, § 2, emerg. eff. April 10,
2018.
§68-1392. Remote sellers, marketplace facilitators and referrers -
Election to collect and remit tax - Permits.
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A. Subject to the provisions of subsections C and D of this
section, on or before July 1, 2018, and on or before June 1 of each
calendar year thereafter, beginning June 1, 2019, a marketplace
facilitator or a referrer that had aggregate sales of tangible
personal property within this state or delivered to locations within
this state subject to tax under Section 1354 or 1402 of this title
worth at least Ten Thousand Dollars ($10,000.00) during the
immediately preceding twelve-calendar-month period shall file an
election with the Tax Commission to collect and remit the tax imposed
under Section 1354 or 1402 of this title or to comply with the notice
and reporting requirements. The election shall be made on a form and
in a manner prescribed by the Commission and, except as provided in
subsection E of this section, shall apply to the next succeeding
fiscal year.
B. A marketplace facilitator or a referrer that makes an
election under subsection A of this section to collect and remit the
tax imposed under Section 1354 or 1402 of this title shall obtain a
permit under Section 1364 or 1407 of this title.
C. The requirement by a marketplace facilitator to make an
election under subsection A of this section shall only apply to sales
through the marketplace facilitator's forum made by or on behalf of a
marketplace seller and shall not apply to sales made by a marketplace
facilitator on its own behalf.
D. The requirement by a referrer to make an election under
subsection A of this section shall apply to sales:
1. Directly resulting from a referral of a purchaser to a
marketplace seller;
2. Directly resulting from a referral of a purchaser to a remote
seller; and
3. Of the referrer's own products.
A referrer may make an election under subsection A of this section
for the sales described in paragraphs 1 and 2 of this subsection that
is different from the election made for the sales described in
paragraph 3 of this subsection.
E. An election made on or before July 1, 2018, shall be in
effect for the 2018-2019 fiscal year. A marketplace facilitator or a
referrer may change an election to comply with the notice and
reporting requirements to an election to collect and remit the tax
imposed under Section 1354 or 1402 of this title at any time during a
fiscal year by filing a new election with the Commission and
obtaining a permit under Section 1364 or 1407 of this title. The new
election shall be effective thirty (30) days after the filing and
shall be effective for the balance of the fiscal year in which the
new election was filed and for the next succeeding fiscal year.
F. A marketplace facilitator or a referrer who does not submit
an election under subsection A of this section or a new election
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under subsection E of this section shall be deemed to have elected to
comply with the notice and reporting requirements.
G. 1. A remote seller that had aggregate sales of tangible
personal property within this state or delivered to locations within
this state subject to tax under Section 1354 or 1402 of this title
worth at least One Hundred Thousand Dollars ($100,000.00) during the
preceding or current calendar year shall collect and remit the tax
imposed under Section 1354 or 1402 of this title. The duty to
collect and remit tax shall apply to the first calendar month
succeeding the month when the threshold provided in this paragraph is
met.
2. Sales in this state by a remote seller made through a
marketplace forum or a referrer's platform where the tax is collected
and remitted by the marketplace facilitator or referrer shall not be
included in determining whether the remote seller has met the
threshold amount provided in this subsection.
H. In addition to records that may be required to be maintained
under other applicable provisions of this title by a remote seller, a
marketplace facilitator or a referrer, a remote seller, a marketplace
facilitator or a referrer subject to Sections 1391 through 1397 of
this title shall also be subject to Section 1365 of this title
relating to the keeping of records and Section 248 of this title
relating to the examination of records by the Commission and agents
and employees of the Commission.
Added by Laws 2018, 2nd Ex. Sess., c. 17, § 3, emerg. eff. April 10,
2018. Amended by Laws 2019, c. 414, § 1, eff. Nov. 1, 2019.
§68-1393. Marketplace facilitators and referrers - Non-election -
Notice requirements.
A. A marketplace facilitator or a referrer required to make an
election under subsection A of Section 1392 of this title that does
not elect to collect and remit the tax imposed by Section 1354 or
1402 of this title shall comply with the applicable notice
requirements of this section.
B. A marketplace facilitator subject to the requirements of this
section shall:
1. Post a conspicuous notice on its forum that informs
purchasers intending to purchase tangible personal property for
delivery to a location within this state that includes all of the
following:
a. sales or use tax may be due in connection with the
purchase and delivery of the tangible personal
property,
b. the state requires the purchaser to file a return if
use tax is due in connection with the purchase and
delivery, and
c. the notice is required by this section; and
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2. Provide a written notice to each purchaser at the time of
each sale that includes all of the following:
a. a statement that sales or use tax is not being
collected in connection with the purchase,
b. a statement that the purchaser may be required to remit
use tax directly to the Tax Commission, and
c. instructions for obtaining additional information from
the Commission regarding whether and how to remit use
tax to the Commission.
C. The notice required by paragraph 2 of subsection B of this
section must be prominently displayed on all invoices and order forms
and on each sales receipt or similar document, whether in paper or
electronic form, provided to the purchaser. No statement that sales
or use tax is not imposed on a transaction may be made by a
marketplace facilitator unless the transaction is exempt from sales
and use tax pursuant to this title or other applicable state law.
D. A referrer subject to the requirements of this section shall
post a conspicuous notice on its platform that informs purchasers
intending to purchase tangible personal property for delivery to a
location within this state that includes all of the following:
1. Sales or use tax may be due in connection with the purchase
and delivery;
2. The person to which the purchaser is being referred may or
may not collect and remit sales or use tax to the Commission in
connection with the transaction;
3. The state requires the purchaser to file a return if use tax
is due in connection with the purchase and delivery and not collected
by the person;
4. The notice is required by this section;
5. Instructions for obtaining additional information from the
Commission regarding whether and how to remit use tax to the
Commission; and
6. If the person to whom the purchaser is being referred does
not collect sales or use tax on a subsequent purchase by the
purchaser, the person may be required to provide information to the
purchaser and the Commission about the purchaser's potential use tax
liability.
E. The notice required under subsection D of this section must
be prominently displayed and may include pop-up boxes or notification
by other means that appears when the referrer transfers a purchaser
to another person to complete the sale.
Added by Laws 2018, 2nd Ex. Sess., c. 17, § 4, emerg. eff. April 10,
2018. Amended by Laws 2019, c. 414, § 2, eff. Nov. 1, 2019.
§68-1394. Marketplace facilitators and referrers - Written report to
purchasers or remote sellers.
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A. A marketplace facilitator required to make an election under
subsection A of Section 1392 of this title that does not elect to
collect and remit the tax imposed by Section 1354 or 1402 of this
title shall, no later than January 31 of each year, provide a written
report to each purchaser required to receive the notice under
paragraph 2 of subsection B of Section 1393 of this title during the
immediately preceding calendar year that includes all of the
following:
1. A statement that the marketplace facilitator did not collect
sales or use tax in connection with the purchaser's transactions with
the marketplace facilitator and that the purchaser may be required to
remit use tax to the Tax Commission;
2. A list, by date, indicating the type and purchase price of
each product purchased or leased by the purchaser from the
marketplace facilitator and delivered to a location within this
state;
3. Instructions for obtaining additional information from the
Commission regarding whether and how to remit use tax to the
Commission;
4. A statement that the marketplace facilitator is required to
submit a report to the Commission under Section 1395 of this title
that includes the name of the purchaser and the aggregate dollar
amount of the purchaser's purchases from the marketplace facilitator;
and
5. Such additional information as the Commission may reasonably
require.
B. The Commission shall prescribe the form of the report
required under subsection A of this section and shall make the form
available on its publicly accessible Internet website.
C. The report required under subsection A of this section shall
be mailed by first-class mail in an envelope prominently marked with
words indicating that important tax information is enclosed to the
purchaser's billing addresses, if known, or, if unknown, to the
purchaser's shipping address. If the purchaser's billing and
shipping addresses are unknown, the report shall be sent
electronically to the purchaser's last-known email address with a
subject heading indicating that important tax information is being
provided.
D. A referrer required to make an election under subsection A of
Section 1392 of this title that does not elect to collect and remit
the tax imposed by Section 1354 or 1402 of this title shall, no later
than January 31 of each year, provide a written notice to each remote
seller to whom the referrer transferred a potential purchaser located
in this state during the immediately preceding calendar year that
includes all of the following:
1. A statement that a sales or use tax may be imposed by the
state on the transaction;
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2. A statement that the remote seller may be required to collect
the tax as required by subsection G of Section 1392 of this title;
and
3. Instructions for obtaining additional information regarding
sales and use tax from the Commission.
Added by Laws 2018, 2nd Ex. Sess., c. 17, § 5, emerg. eff. April 10,
2018. Amended by Laws 2019, c. 414, § 3, eff. Nov. 1, 2019.
§68-1395. Marketplace facilitators and referrers - Written report to
the Tax Commission.
A. A marketplace facilitator required to make an election under
subsection A of Section 1392 of this title that does not elect to
collect and remit the tax imposed by Section 1354 or 1402 of this
title shall, no later than January 31 of each year, submit a report
to the Tax Commission. The report shall include, with respect to
each purchaser required to receive the notice under paragraph 2 of
subsection B of Section 1393 of this title during the immediately
preceding calendar year, the following:
1. The purchaser's name;
2. The purchaser's billing address and, if different, the
purchaser's last-known mailing address;
3. The address within this state to which products were
delivered to the purchaser;
4. The aggregate dollar amount of the purchaser's purchases from
the marketplace facilitator; and
5. The name and address of the marketplace facilitator or
marketplace seller that made the sales to the purchaser.
B. A referrer required to make an election under subsection A of
Section 1392 of this title that does not elect to collect and remit
the tax imposed by Section 1354 or 1402 of this title shall, no later
than January 31 of each year, submit a report to the Commission. The
report shall include a list of persons who received the notice
required under subsection D of Section 1394 of this title.
C. The Commission shall prescribe the forms of the reports
required under this section and shall make them available on its
publicly accessible Internet website. The reports shall be submitted
electronically in such manner as the Commission shall require.
D. A report required under this section shall be submitted by an
officer of the marketplace facilitator or the referrer and shall
include a statement, made under penalty of perjury, by the officer
that the remote seller, the marketplace facilitator or the referrer
made reasonable efforts to comply with the notice and reporting
requirements of Sections 1391 through 1397 of this title.
Added by Laws 2018, 2nd Ex. Sess., c. 17, § 6, emerg. eff. April 10,
2018. Amended by Laws 2019, c. 414, § 4, eff. Nov. 1, 2019.
§68-1396. Penalties - Class actions by purchasers.
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A. The Commission shall assess a penalty in the amount of Twenty
Thousand Dollars ($20,000.00) or twenty percent (20%) of total sales
in Oklahoma during the previous twelve (12) months, whichever is
less, against a marketplace facilitator or a referrer that makes an
election under subsection A of Section 1392 of this title to comply
with the notice and reporting requirements, or is deemed to have made
such election under subsection F of Section 1392 of this title, and
fails to comply with the requirements under Section 1394 or 1395 of
this title. The penalty shall be assessed separately for each
violation but may only be assessed once in a calendar year.
B. A marketplace facilitator or a referrer that makes an
election under subsection A of Section 1392 of this title to collect
and remit the tax imposed under Section 1354 or 1402 of this title
shall be subject to all of the provisions of this title with respect
to the collection and remittance of such tax and shall be subject to
all of the penalties and interest levied under this title for failing
to comply with the provisions of Sections 1391 through 1397 of this
title except as provided in this section.
C. For a period of five (5) years after April 10, 2018, the Tax
Commission may abate or reduce any penalty or interest imposed under
subsection B of this section due to hardship or for good cause shown.
D. A marketplace facilitator or a referrer is relieved of
liability under subsection B of this section if the marketplace
facilitator or the referrer can show to the satisfaction of the
Commission that the failure to collect the correct amount of tax was
due to incorrect information given to the marketplace facilitator or
the referrer by a marketplace seller or remote seller.
E. A class action may not be brought against a marketplace
facilitator or a referrer on behalf of purchasers arising from or in
any way related to an overpayment of sales or use tax collected by
the marketplace facilitator or the referrer, regardless of whether
such action is characterized as a tax refund claim. Nothing in this
subsection shall affect a purchaser's right to seek a refund from the
Commission under other provisions of this title.
Added by Laws 2018, 2nd Ex. Sess., c. 17, § 7, emerg. eff. April 10,
2018. Amended by Laws 2019, c. 414, § 5, eff. Nov. 1, 2019.
§68-1397. Obligations of vendors.
Nothing in this act affects the obligations of a vendor to
register with the Tax Commission and to collect and remit sales tax
or use tax.
Added by Laws 2018, 2nd Ex. Sess., c. 17, § 8, emerg. eff. April 10,
2018.
§68-1401. Definitions.
The following words, terms and phrases when used in this article
shall have the meanings respectively given to them in this section:
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1. The term "person" shall mean and include any individual,
company, partnership, joint venture, joint agreement, association
(mutual or otherwise), limited liability company, corporation,
estate, trust, business trust, receiver, or trustee appointed by the
state or federal court, syndicate, this state, any county, city,
municipality, or other political subdivision or agency of the state,
or group or combination acting as a unit in the plural or singular
number;
2. The term "Tax Commission" means the Oklahoma Tax Commission;
3. The term "purchase price" applies to the measure subject to
the tax levied under Section 1402 of this title and has the same
meaning as "gross receipts" or "gross proceeds" or "sales price" as
defined in Section 1352 of this title;
4. The term "taxpayer" means any person liable to pay a tax
hereunder, or charged with the collection and remission thereof, or
to make a report for the purpose of claiming any exemptions in
payment of any tax levied by this article;
5. The term "purchase at retail" means and includes all
purchases except purchases made for the purpose of resale;
6. The term "sale" means and includes the transfer of either the
title or possession for a valuable consideration of tangible personal
property, regardless of the manner, method, instrumentality or device
by which such transfer is accomplished. The term "sale" also
includes the exchange, barter, lease, or rental of tangible personal
property where such exchange, barter, lease or rental results in
either the transfer of the title or the possession;
7. The term "purchase" means and includes any method whereby a
transferee receives from a transferor either the title or possession,
for a valuable consideration, of tangible personal property,
regardless of the manner, method, instrumentality or device by which
such transfer is accomplished. The term "purchase" also includes the
exchange, barter, lease or rental of tangible personal property where
such exchange, barter, lease or rental results in either the transfer
of the title or the possession to the transferee;
8. The term "use" means and includes the exercise of any right
or power over tangible personal property incident to the ownership or
possession of that property, except that it shall not include the
sale of that property in the regular course of business;
9. The term "retailer" means every person engaged in the
business of selling tangible personal property for use within the
meaning of the article; provided, however, that when in the opinion
of the Tax Commission it is necessary for the efficient
administration of this article to regard any salesmen,
representatives, truckers, peddlers, or canvassers as the agents of
the dealers, distributors, supervisors, employers, or persons under
whom they operate or from whom they obtain the tangible personal
property sold by them, irrespective of whether they are making sales
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on their own behalf or on behalf of such dealers, distributors,
supervisors, employers, or persons, the Tax Commission may so regard
them and may regard the dealers, distributors, supervisors, employers
or persons as retailers for purposes of this article; and
10. The phrase "maintaining a place of business within the
state" shall have the same meaning as provided in Section 1352 of
this title.
Added by Laws 1963, c. 368, § 2, emerg. eff. June 18, 1963.
Renumbered from § 14-1401 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1993, c. 366, § 42, eff. Sept. 1, 1993; Laws 1998, c.
301, § 10, eff. Nov. 1, 1998; Laws 2003, c. 413, § 28, eff. Nov. 1,
2003; Laws 2010, c. 412, § 1, eff. July 1, 2010; Laws 2016, c. 311, §
3, eff. Nov. 1, 2016.
§68-1402. Excise tax on storage, use or other consumption of
intangible personal property.
There is hereby levied and there shall be paid by every person
storing, using, or otherwise consuming within this state, tangible
personal property purchased or brought into this state, an excise tax
on the storage, use, or other consumption in this state of such
property at the rate of four and one-half percent (4.5%) of the
purchase price of such property. Said tax shall not be levied on
tangible personal property intended solely for use in other states,
but which is stored in Oklahoma pending shipment to such other states
or which is temporarily retained in Oklahoma for the purpose of
fabrication, repair, testing, alteration, maintenance, or other
service. The tax in such instances shall be paid at the time of
importation or storage of the property within the state and a
subsequent credit shall be taken by the taxpayer for the amount so
paid upon removal of the property from the state. Such tax is hereby
levied and shall be paid in an amount equal to four and one-half
percent (4.5%) of the purchase price of such tangible personal
property. Notwithstanding the provisions of this section, the tax
associated with a motor vehicle shall be paid by the consumer in the
same manner and time as the motor vehicle excise tax for said motor
vehicle is due.
Added by Laws 1963, c. 368, § 2, emerg. eff. June 18, 1963.
Renumbered from § 14-1402 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1984, c. 2, § 4, emerg. eff. Feb. 15, 1984; Laws
1985, c. 179, § 88, operative July 1, 1985; Laws 1987, c. 113, § 22,
operative June 1, 1987; Laws 1989, 1st Ex.Sess., c. 2, § 104,
operative Feb. 1, 1990; Laws 2017, c. 356, § 4, eff. July 1, 2017.
§68-1403. Purpose of article - Apportionment of revenues.
A. It is hereby declared to be the purpose of Section 1401 et
seq. of this title to provide for the support of the functions of the
state and local government of Oklahoma; and for this purpose and to
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this end, it is hereby expressly provided that the revenues derived
hereunder, subject to the apportionment provided in subsection B of
this section and to the apportionment requirements for the Oklahoma
Tax Commission and Office of Management and Enterprise Services Joint
Computer Enhancement Fund provided by Section 265 of this title, are
hereby apportioned as follows:
1. a. the following amounts shall be paid by the Tax
Commission to the State Treasurer and placed to the
credit of the General Revenue Fund to be paid out
pursuant to direct appropriation by the Legislature:
Fiscal Year Amount
FY 2004 85.35%
FY 2005 85.14%
FY 2006 85.54%
FY 2007 85.04%
FY 2008 and each fiscal
year thereafter 83.61%
b. in the event that additional monies are necessary
pursuant to paragraph 6 of this section, such
additional monies shall be deducted in the proportion
determined by the State Board of Equalization pursuant
to paragraph 3 of Section 2355.1B of this title from
the monies apportioned to the General Revenue Fund;
2. Ten and forty-six one-hundredths percent (10.46%) shall be
paid to the State Treasurer to be placed to the credit of the
Education Reform Revolving Fund of the State Department of Education;
3. The following amounts shall be paid to the State Treasurer to
be placed to the credit of the Teachers' Retirement System Dedicated
Revenue Revolving Fund:
Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
FY 2006 4.0%
FY 2007 4.5%
FY 2008 and each fiscal
year thereafter 5.0%
4. a. except as otherwise provided in subparagraph b of this
paragraph, for the fiscal year beginning July 1, 2015,
and for each fiscal year thereafter, eighty-seven one-
hundredths percent (0.87%) shall be paid to the State
Treasurer to be further apportioned as follows:
(1) thirty-six percent (36%) shall be placed to the
credit of the Oklahoma Tourism Promotion Revolving
Fund, but in no event shall such apportionment
exceed the total amount apportioned pursuant to
this division for the fiscal year ending on June
30, 2015, and
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(2) sixty-four percent (64%) shall be placed to the
credit of the Oklahoma Tourism Capital Improvement
Revolving Fund, but in no event shall such
apportionment exceed the total amount apportioned
pursuant to this division for the fiscal year
ending on June 30, 2015, and
b. any amounts which exceed the limitations of
subparagraph a of this paragraph shall be placed to the
credit of the General Revenue Fund;
5. For the fiscal year beginning July 1, 2015, and for each
fiscal year thereafter, six one-hundredths percent (0.06%) shall be
placed to the credit of the Oklahoma Historical Society Capital
Improvement and Operations Revolving Fund, but in no event shall such
apportionment exceed the total amount apportioned pursuant to this
paragraph for the fiscal year ending on June 30, 2015. Any amounts
which exceed the limitations of this paragraph shall be placed to the
credit of the General Revenue Fund; and
6. During the first fiscal year after the State Board of
Equalization has made a determination as provided in Section 2355.1B
of this title, regarding a baseline amount of revenue apportioned
pursuant to paragraph 3 of this section, and for each fiscal year
thereafter, in no event shall monies apportioned pursuant to
paragraph 3 of this section, paragraph 3 of Section 1353 of this
title and subparagraph c of paragraph 1 of Section 2352 of this title
be less than such baseline amount.
B. Prior to the apportionments otherwise provided in this
section, there shall be apportioned to the Education Reform Revolving
Fund of the State Department of Education the following amounts in
the following state fiscal years:
FY 2019 $19,600,000.00; and
FY 2020 and each year thereafter $20,500,000.00.
Added by Laws 1963, c. 368, § 2, emerg. eff. June 18, 1963.
Renumbered from § 14-1403 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1977, c. 113, § 2, eff. July 1, 1977; Laws 1996, c.
269, § 4, eff. June 1, 1996; Laws 1999, c. 254, § 9, eff. June 30,
1999; Laws 2002, c. 482, § 2, eff. July 1, 2002; Laws 2003, c. 3, §
65, emerg. eff. March 19, 2003; Laws 2005, c. 479, § 15, eff. July 1,
2005; Laws 2006, 2nd Ex. Sess., c. 44, § 18, eff. July 1, 2007; Laws
2007, c. 105, § 4, eff. Nov. 1, 2007; Laws 2007, c. 366, § 4, eff.
Nov. 1, 2007; Laws 2008, c. 278, § 9, eff. July 1, 2008; Laws 2010,
c. 466, § 2, eff. July 1, 2010; Laws 2012, c. 304, § 542; Laws 2015,
c. 349, § 2, eff. July 1, 2015; Laws 2018, 2nd Ex. Sess., c. 17, § 9,
emerg. eff. April 10, 2018.
NOTE: Laws 2002, c. 458, § 8 repealed by Laws 2003, c. 3, § 66,
emerg. eff. March 19, 2003.
§68-1404. Exemptions.
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The provisions of Section 1401 et seq. of this title shall not
apply:
1. In respect to the use of any article of tangible personal
property brought into the State of Oklahoma by a nonresident
individual, visiting in this state, for his or her personal use or
enjoyment, while within the state;
2. In respect to the use of tangible personal property purchased
for resale before being used;
3. In respect to the use of any article of tangible personal
property on which a tax, equal to or in excess of that levied by
Section 1401 et seq. of this title, has been paid by the person using
such tangible personal property in this state, whether such tax was
levied under the laws of this state or some other state of the United
States. If any article of tangible personal property has already
been subjected to a tax, by this or any other state, in respect to
its sale or use, in an amount less than the tax imposed by Section
1401 et seq. of this title, the provisions of Section 1401 et seq. of
this title shall apply to it by a rate measured by the difference
only between the rate herein provided and the rate by which the
previous tax upon the sale or use was computed. Provided, that no
credit shall be given for taxes paid in another state, if that state
does not grant like credit for taxes paid in Oklahoma;
4. In respect to the use of tangible personal property now
specifically exempted from taxation under Oklahoma Sales Tax Code.
Provided, for the sale of motor vehicles or any optional equipment or
accessories attached to motor vehicles on which the Oklahoma Motor
Vehicle Excise Tax levied pursuant to Sections 2101 through 2108 of
this title has been, or will be paid, the exceptions shall apply to
all but a portion of the levy provided under Section 1402 of this
title, equal to one and twenty-five-hundredths percent (1.25%) of the
purchase price. Provided further, the sale of motor vehicles shall
not be subject to any sales and use taxes levied by cities, counties
or other jurisdictions of the state;
5. In respect to the use of any article or tangible personal
property brought into the state by an individual with intent to
become a resident of this state where such personal property is for
such individual's personal use or enjoyment;
6. In respect to the use of any article of tangible personal
property used or to be used by commercial airlines or railroads;
7. In respect to livestock purchased outside this state and
brought into this state for feeding or breeding purposes, and which
is later resold; and
8. Effective January 1, 1991, in respect to the use of rail
transportation cars to haul coal to coal-fired plants located in this
state which generate electric power.
Added by Laws 1963, c. 368, § 2, emerg. eff. June 18, 1963.
Renumbered from § 14-1404 of this title by Laws 1965, c. 215, § 2.
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Amended by Laws 1998, c. 301, § 11, eff. Nov. 1, 1998; Laws 1999, c.
163, § 2, emerg. eff. May 17, 1999; Laws 2017, c. 356, § 5, eff. July
1, 2017.
§68-1404.1. Manufacturers - Refund of certain state and local use
taxes.
A. In order to administer the exemption for sales to a qualified
manufacturer as provided by Section 1359 of this title as applicable
to the use tax imposed by law, there shall be made a use tax refund
for state and local taxes paid by qualified manufacturers for
tangible personal property purchased to be consumed or incorporated
in the construction of a new manufacturing facility or to expand an
existing manufacturing facility in the state from the account created
by this section.
B. The Oklahoma Tax Commission shall transfer each month from
use tax collected the amount which the Commission estimates to be
necessary to make the use tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local use taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified manufacturer
upon the principal amount of any refund made to such manufacturer for
purposes of administering the exemption provided by Section 1359 of
this title shall be determined according to the provisions of this
subsection. For any month during which the Oklahoma Tax Commission
transfers a sum to the account prescribed by subsection B of this
section, the Commission shall determine an interest rate by
determining the rate of interest paid for a three-month Treasury Bill
of the United States government as of the first working day of the
month in which the transfer is made. The interest rate so determined
shall accrue upon the amount transferred to the account. In each
subsequent month, the Commission shall determine the interest rate
paid for a three-month Treasury Bill of the United States government
as of the first working day of the month and such interest rate shall
accrue upon any amount transferred during the month and upon the
amounts previously transferred to the account together with interest
previously accrued upon such amounts.
D. For purposes of this section, state and local use taxes paid
by a contractor or subcontractor for tangible personal property
purchased by that contractor or subcontractor to be consumed or
incorporated in the construction of a new or expanded manufacturing
facility pursuant to a contract with a qualified manufacturer shall,
upon proper showing, be refunded to the qualified manufacturer.
E. The qualified manufacturer shall file with the Oklahoma Tax
Commission the following documentation for any refund claimed:
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1. Invoices indicating the amount of state and local use tax
billed;
2. Affidavit of each vendor that state and local use tax billed
has not been audited, rebated, or refunded to the qualified
manufacturer but rather the use tax charged has been collected by the
vendor and remitted to the Oklahoma Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
F. In the event that state and local use tax was paid by a
contractor or subcontractor, the qualified manufacturer shall file
with the Oklahoma Tax Commission all documentation required in
subsection E of this section but in lieu of the affidavit of each
vendor the qualified manufacturer shall file, for any refund claimed,
an affidavit from the contractor or subcontractor stating that the
use tax refund of the qualified manufacturer is based on state and
local use tax, paid by the contractor or subcontractor on tangible
personal property purchased to be consumed or incorporated in the
construction of a new or expanded business activity and that the
amount of the state and local use tax claimed was paid to the vendor
and no credit, refund, or rebate has been claimed by the contractor
or subcontractor.
G. Only sales of tangible personal property made after June 1,
1988, shall be eligible for the refund established by this section.
H. The qualified manufacturer shall file, within thirty-six (36)
months of the date of the first purchase which is exempt from
taxation pursuant to the provisions of subsection (H) of Section 1359
of this title, with the Oklahoma Tax Commission, a certification
issued by the Employment Security Commission in order to qualify for
the refund authorized by this section.
I. Notwithstanding the provisions of any state tax law, the
amount refunded under this section shall be assessed if the number of
full-time-equivalent employees drops below the number prescribed in
subsection (H) of Section 1359 of this title, as amended by Section 1
of this act, at any time within thirty-six (36) months of the date
certification is issued by the Oklahoma Employment Security
Commission.
Added by Laws 1988, c. 9, § 3, operative June 1, 1988. Amended by
Laws 1991, c. 133, § 3, emerg. eff. April 29, 1991; Laws 1992, c.
225, § 3, eff. July 1, 1992.
§68-1404.2. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-1404.3. Aircraft maintenance or manufacturing facilities - Sales
of computers, data processing equipment, related peripherals and
telephone, telegraph or telecommunications service or equipment - Use
tax refund - Computation of interest - Documentation of claims -
Filing of certification.
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A. In order to administer the exemption for sales of computers,
data processing equipment, related peripherals and telephone,
telegraph or telecommunications service and equipment related thereto
to a qualified purchaser as provided by paragraph 11 of Section 1357
of this title, as applicable to the use tax imposed by law, there
shall be made a use tax refund for state and local taxes paid by a
qualified purchaser for the purchase of such items.
B. The Oklahoma Tax Commission shall transfer each month from
use tax collected the amount which the Commission estimates to be
necessary to make the use tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local use taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified purchaser of
computers, data processing equipment, related peripherals and
telephone, telegraph or telecommunications service and equipment
related thereto upon the principal amount of any refund made to such
purchaser for purposes of administering the exemption provided by
paragraph 11 of Section 1357 of this title, shall be determined
according to the provisions of this subsection. For any month during
which the Oklahoma Tax Commission transfers a sum to the account
prescribed by subsection B of this section, the Commission shall
determine an interest rate by determining the rate of interest paid
for a three-months Treasury Bill of the United States government as
of the first working day of the month and such interest rate shall
accrue upon any amount transferred during the month and upon the
amounts previously transferred to the account together with interest
previously accrued upon such amounts.
D. The qualified purchaser of computers, data processing
equipment, related peripherals and telephone, telegraph or
telecommunications service and equipment related thereto shall file,
within thirty-six (36) months of the date of purchase, with the
Oklahoma Tax Commission the following documentation for any refund
claimed:
1. Affidavit of the purchaser that the amount of use tax claimed
has been remitted to the State of Oklahoma and that no refund of the
use tax paid has previously been requested;
2. In cases where the purchaser remitted the use tax to its
vendor, invoices indicating the amount of state and local use tax
paid and affidavit of each vendor that state and local use tax billed
to the purchaser has not been audited, rebated, or refunded to the
purchaser but rather the use tax charged has been collected by the
vendor and remitted to the Oklahoma Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
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E. Only sales of computers, data processing equipment, related
peripherals and telephone, telegraph or telecommunications service
and equipment may qualify for the refund established by this section,
provided the total cost of said equipment equals or exceeds the sum
of Two Million Dollars ($2,000,000.00) and occurs after the effective
date of this act.
F. The qualified purchaser shall file, within sixty (60) months
of the date of the first purchase, with the Oklahoma Tax Commission a
certification issued by the Oklahoma Employment Security Commission
in order to qualify for the refund authorized by this section.
Added by Laws 1991, 1st Ex. Sess., c. 2, § 9, emerg. eff. Jan. 18,
1991. Amended by Laws 1993, c. 275, § 16, eff. July 1, 1993.
§68-1404.4. Aircraft maintenance or manufacturing facilities - Sales
of tangible personal property consumed or incorporated in
construction or expansion - Use tax refund - Computation of interest
- Taxes paid by contractors - Documentation of claims - Affidavits -
Filing of certification.
A. In order to administer the exemption for sales to a qualified
aircraft maintenance or manufacturing facility as provided by
paragraph 12 of Section 1357 of this title, as applicable to the use
tax imposed by law, there shall be made a use tax refund for state
and local taxes paid by a qualified purchaser for tangible personal
property purchased to be consumed or incorporated in the construction
or expansion of a qualified aircraft maintenance or manufacturing
facility in the state from the account created by this section.
B. The Oklahoma Tax Commission shall transfer each month from
use tax collected the amount which the Commission estimates to be
necessary to make the use tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local use taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified aircraft
maintenance or manufacturing facility upon the principal amount of
any refund made to such facility for purposes of administering the
exemption provided by paragraph 12 of Section 1357 of this title,
shall be determined according to the provisions of this subsection.
For any month during which the Oklahoma Tax Commission transfers a
sum to the account prescribed by subsection B of this section, the
Commission shall determine an interest rate by determining the rate
of interest paid for a three-month Treasury Bill of the United States
government as of the first working day of the month in which the
transfer is made. The interest rate so determined shall accrue upon
the amount transferred to the account. In each subsequent month, the
Commission shall determine the interest rate paid for a three-month
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Treasury Bill of the United States government as of the first working
day of the month and such interest rate shall accrue upon any amount
transferred during the month and upon the amounts previously
transferred to the account together with interest previously accrued
upon such amounts.
D. For purposes of this section, state and local use taxes paid
by a contractor or subcontractor for tangible personal property
purchased by that contractor or subcontractor to be consumed or
incorporated in the construction of a qualified aircraft maintenance
or manufacturing facility pursuant to a contract with a qualified
facility shall, upon proper showing, be refunded to the qualified
facility.
E. The qualified facility shall file, within thirty-six (36)
months of the date of purchase, with the Oklahoma Tax Commission the
following documentation for any refund claimed:
1. Invoices indicating the amount of state and local use tax
billed;
2. Affidavit of each vendor that state and local use tax billed
has not been audited, rebated, or refunded to the qualified facility
but rather the use tax charged has been collected by the vendor and
remitted to the Oklahoma Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
F. In the event that state and local use tax was paid by a
contractor or subcontractor, the qualified purchaser shall file with
the Oklahoma Tax Commission all documentation required in subsection
E of this section but in lieu of the affidavit of each vendor the
qualified facility shall file, for any refund claimed, an affidavit
from the contractor or subcontractor stating that the use tax refund
of the qualified purchaser is based on state and local use tax, paid
by the contractor or subcontractor on tangible personal property
purchased to be consumed or incorporated in the construction of a
qualified aircraft maintenance or manufacturing facility and that the
amount of the state and local use tax claimed was paid to the vendor
and no credit, refund, or rebate has been claimed by the contractor
or subcontractor.
G. Only sales of tangible personal property made after the
effective date of this act shall be eligible for the refund
established by this section.
H. The qualified facility shall file, within sixty (60) months
of the date of the first purchase, with the Oklahoma Tax Commission,
a certification issued by the Oklahoma Employment Security Commission
in order to qualify for the refund authorized by this section.
Added by Laws 1991, 1st Ex. Sess., c. 2, § 10, emerg. eff. Jan. 18,
1991. Amended by Laws 1993, c. 275, § 17, eff. July 1, 1993.
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§68-1404.5. Motion pictures or television - Refund of use taxes paid
for property to be used in productions.
A. In order to administer the exemption for sales of tangible
personal property to a motion picture or television production
company as provided by paragraph 20 of Section 1357 of Title 68 of
the Oklahoma Statutes there shall be made a use tax refund for state
and local use taxes paid with regard to such items for use in an
eligible production.
B. The Oklahoma Tax Commission shall transfer each month from
use tax collected the amount which the Tax Commission estimates to be
necessary to make the use tax refund provided by this section to an
account designated as the Tax Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local use taxes paid together with accrued interest upon
such total. The amount of interest paid upon the principal amount of
any refund made to such production company for purposes of
administering the exemption provided by paragraph 20 of Section 1357
of Title 68 of the Oklahoma Statutes shall be determined according to
the provisions of this subsection. For any month during which the
Oklahoma Tax Commission transfers a sum to the account prescribed by
subsection B of this section, the Tax Commission shall determine an
interest rate by determining the rate of interest paid for a three-
month Treasury Bill of the United States government as of the first
working day of the month and such interest shall accrue upon any
amount transferred to the account together with interest previously
accrued upon such amounts.
D. The qualified purchaser shall file, during the preproduction
phase, with the Oklahoma Tax Commission, a registration form
containing the estimated production dates, estimated local production
expenditures, name and address of the representative responsible for
the expenditure records, and other such documentation required to be
submitted pursuant to rules promulgated by the Oklahoma Tax
Commission.
E. The qualified purchaser shall file, within sixty (60) days
after the completion of the filming, with the Oklahoma Tax
Commission, the following documentation for any refund claimed:
1. Affidavit of the purchaser that the amount of use tax claimed
has been remitted to the State of Oklahoma and that no refund of the
use tax paid has previously been requested;
2. In cases where the purchaser remitted the use tax to its
vendor, invoices indicating the amount of state and local use tax
paid and affidavit of each vendor that state and local use tax billed
to the purchaser has not been audited, rebated, or refunded to the
purchaser but rather the use tax charged has been collected by the
vendor and remitted to the Oklahoma Tax Commission; and
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3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
Added by Laws 1996, c. 289, § 4, eff. July 1, 1996.
§68-1405. Time when due - Returns - Payment.
A. The tax levied by Section 1401 et seq. of this title is due
and payable on the first day of each month for the preceding calendar
month, and if not paid on or before the twentieth day of each month
shall thereafter be delinquent. Each taxpayer subject to the
provisions of this article shall, on or before the twentieth day of
every calendar month, file with the Oklahoma Tax Commission on forms
to be furnished by the Tax Commission, a return verified by affidavit
showing in detail the total purchase price of tangible personal
property used by the taxpayer within the state during the preceding
calendar month subject to the tax herein levied and such other
information as the Tax Commission may require. With each such return
each taxpayer shall remit to the Tax Commission the amount of tax
shown therein to be due. Reports timely mailed shall be considered
timely filed. If a report is not timely filed, interest shall be
charged from the date the report should have been filed until the
report is actually filed.
B. In lieu of monthly reports, tax remitters whose total amount
of tax liability for any one (1) month does not exceed Fifty Dollars
($50.00) may file semiannual reports and remit taxes due thereunder
to the Tax Commission on or before the twentieth day of January and
July of each year for the preceding six-month period. If not paid on
or before the twentieth day of such month, the tax shall be
delinquent.
C. Effective March 1, 2003, every person owing an average of
Twenty-five Thousand Dollars ($25,000.00) or more per month in total
use taxes in the previous fiscal year shall remit the tax due and
shall participate in the Tax Commission’s electronic funds transfer
and electronic data interchange program, according to the following
schedule:
1. For taxes levied from the first day through the fifteenth
day of each month, the tax shall be due and payable on the twentieth
day of such month and remitted to the Tax Commission by electronic
funds transfer. A taxpayer will be considered to have complied with
the reporting requirements of this paragraph if, on or before the
twentieth day of such month, the taxpayer paid at least ninety
percent (90%) of the liability for that fifteen-day period or at
least fifty percent (50%) of the taxpayer’s liability in the
immediate preceding calendar year for the same month as the month in
which the fifteen-day period occurs; and
2. For taxes levied from the sixteenth day through the end of
each month, the tax shall be due and payable on the twentieth day of
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the following month and remitted to the Tax Commission by electronic
funds transfer.
Every person required to remit the tax due pursuant to this
subsection shall file its monthly use tax report in accordance with
the Tax Commission’s electronic data interchange program on the
twentieth day of the month following the month the tax is levied.
Provided, persons primarily engaged in selling lumber and other
building materials, including cement and concrete, except for home
centers classified under Industry No. 444110 of the North American
Industrial Classification System (NAICS) Manual, shall remit and
report as required in subsection A of this section, with the
exception of taxes levied during the periods of June 1 through June
15, 2003, which shall be remitted and reported on June 20, 2003, and
June 1 through June 15, 2004, which shall be remitted and reported on
June 20, 2004.
Taxes not paid on or before the due dates specified in this
subsection shall be delinquent from such dates.
D. Effective October 1, 2003, every person owing an average of
Two Thousand Five Hundred Dollars ($2,500.00) or more per month in
total use taxes in the previous fiscal year shall remit the tax due
and shall participate in the Tax Commission’s electronic funds
transfer and electronic data interchange program, according to the
following schedule:
1. For taxes levied from the first day through the fifteenth
day of each month, the tax shall be due and payable on the twentieth
day of such month and remitted to the Tax Commission by electronic
funds transfer. A taxpayer will be considered to have complied with
the reporting requirements of this paragraph if, on or before the
twentieth day of such month, the taxpayer paid at least ninety
percent (90%) of the liability for that fifteen-day period or at
least fifty percent (50%) of the taxpayer’s liability in the
immediate preceding calendar year for the same month as the month in
which the fifteen-day period occurs; and
2. For taxes levied from the sixteenth day through the end of
each month, the tax shall be due and payable on the twentieth day of
the following month and remitted to the Tax Commission by electronic
funds transfer.
Every person required to remit the tax due pursuant to this
subsection shall file its monthly use tax report in accordance with
the Tax Commission’s electronic data interchange program on the
twentieth day of the month following the month the tax is levied.
Provided, persons primarily engaged in selling lumber and other
building materials, including cement and concrete, except for home
centers classified under Industry No. 444110 of the North American
Industrial Classification System (NAICS) Manual, shall remit and
report as required in subsection A of this section, with the
exception of taxes levied during the periods of June 1 through June
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15, 2004, which shall be remitted and reported on June 20, 2004, and
June 1 through June 15, 2005, which shall be remitted and reported on
June 20, 2005.
Taxes not paid on or before the due dates specified in this
subsection shall be delinquent from such dates.
Added by Laws 1963, c. 368, § 2, emerg. eff. June 18, 1963.
Renumbered from § 14-1405 of this title by Laws 1965, c. 215, § 2.
Amended by Laws 1987, c. 203, § 147, operative July 1, 1987; Laws
2002, c. 458, § 9, eff. July 1, 2002; Laws 2003, c. 376, § 3, eff.
July 1, 2003; Laws 2004, c. 5, § 77, emerg. eff. March 1, 2004.
NOTE: Laws 2003, c. 413, § 29 repealed by Laws 2004, c. 5, § 78,
emerg. eff. March 1, 2004.
§68-1406. Collection of tax by retailer or vendor.
Except as otherwise provided in Section 1 of this act, every
retailer or vendor maintaining places of business both within and
without this state and making sales of tangible personal property
from a place of business outside this state for use in this state
shall at the time of making such sales collect the use tax levied by
Section 1401 et seq. of this title from the purchaser and give to the
purchaser a receipt therefor in the manner and form prescribed by the
Tax Commission, if the Tax Commission shall, by regulation, require
such receipt. Each retailer or vendor shall list with the Tax
Commission the name and address of all the retailer’s or vendor’s
agents operating in this state and location of any and all
distribution or sales houses or offices or other places of business
in this state. The retailer or vendor shall not collect the use tax
levied by Section 1402 of this title from a purchaser who is a holder
of a direct payment permit issued pursuant to Section 1364.1 of this
title.
Added by Laws 1963, c. 368, § 2, emerg. eff. June 18, 1963.
Renumbered from § 14-1406 by Laws 1965, c. 215, § 2. Amended by Laws
1968, c. 112, § 2, eff. July 1, 1968; Laws 1996, c. 126, § 6, eff.
Nov. 1, 1996; Laws 1996, c. 289, § 6, eff. July 1, 1996; Laws 2001,
c. 15, § 2, emerg. eff. April 2, 2001.
§68-1406.1. Notification of imposed use tax on out-of-state sales.
A. Each retailer or vendor making sales of tangible personal
property from a place of business outside this state for use in this
state that is not required to collect use tax, shall provide
notification on its retail Internet website or retail catalog and
invoices provided to its customers that use tax is imposed and must
be paid by the purchaser, unless otherwise exempt, on the storage,
use, or other consumption of the tangible personal property in this
state. The notification shall be readily visible. It is further
provided that no retailer shall advertise on its retail Internet
website or retail catalog that there is no tax due on purchases made
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from the retailer for use in this state. The provisions of this
section, except for notification on invoices, shall apply to online
auction websites. The Oklahoma Tax Commission is hereby authorized
and directed to define the term "online auction websites" through the
promulgation of a rule. The rule shall include an exception for
websites with sales below a threshold to be set by the Tax
Commission.
B. The provisions of this section shall not be effective as law
until an administrative rule, whether an emergency rule or permanent
rule or both, has become effective as law pursuant to the Oklahoma
Administrative Procedures Act.
Added by Laws 2010, c. 412, § 2, eff. July 1, 2010.
§68-1406.2. Personal property sales from outside the state – Total
sales statement.
A. Each retailer or vendor making sales of tangible personal
property from a place of business outside this state for use in this
state that is not required to collect use tax shall, by February 1 of
each year, provide to each customer to whom tangible personal
property was delivered in this state a statement of the total sales
made to the customer during the preceding calendar year. The
statement must contain language substantially similar to the
following:
"YOU MAY OWE OKLAHOMA USE TAX ON PURCHASES YOU MADE FROM US
DURING THE PREVIOUS TAX YEAR. THE AMOUNT OF TAX YOU MAY OWE
IS BASED ON THE TOTAL SALES PRICE OF [INSERT TOTAL SALES
PRICE] THAT MUST BE REPORTED AND PAID WHEN YOU FILE YOUR
OKLAHOMA INCOME TAX RETURN UNLESS YOU HAVE ALREADY PAID THE
TAX."
The statement must not contain any other information that would
indicate, imply or identify the class, type, description or name of
the products purchased. Any information that would indicate, imply
or identify the class, type, description or name of the products
purchased is strictly confidential.
B. The statement may be provided by first-class mail, email or
other electronic communication.
Added by Laws 2016, c. 311, § 4, eff. Nov. 1, 2016.
§68-1407. Collection of tax by retailer or vendor not maintaining
place of business within State or both within and without State -
Permits.
The Tax Commission may in its discretion, upon application,
authorize the collection of the tax herein levied by any retailer or
vendor not maintaining a place of business within this state but who
makes sales of tangible personal property for use in this state and
by the out-of-state place of business of any retailer or vendor
maintaining places of business both within and without Oklahoma and
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making sales of tangible personal property at such out-of-state place
of business for use in this state. Such retailer or vendor shall be
issued, without charge, a permit to collect such taxes, in such
manner and subject to such regulations and agreements as the Tax
Commission shall prescribe. When so authorized, it shall be the duty
of such retailer or vendor to collect the tax upon all tangible
personal property sold to his knowledge for use within this state.
Such authority and permit may be canceled when at any time the Tax
Commission considers that such tax can more effectively be collected
from the person using such property in this state. Provided,
however, that in all instances where such sales are made or completed
by delivery to the purchaser within this state by the retailer or
vendor in such retailer's or vendor's vehicle, whether owned or
leased (not by common carrier), such sales or transactions shall
continue to be subject to applicable state and any local sales tax at
the point of delivery and the tax shall be collected and reported
under taxpayer's sales tax permit number accordingly.
Laws 1963, c. 368, § 2; Laws 1965, c. 215, § 2; Laws 1968, c. 112, §
3, eff. July 1, 1968.
§68-1407.1. Tax paid on worthless or uncollectible gross receipts -
Credit.
Any taxes paid by vendors pursuant to Sections 1406 and 1407 of
Title 68 of the Oklahoma Statutes on gross receipts represented by
accounts receivable which, on or after December 31, 1990, are found
to be worthless or uncollectible and that are eligible to be claimed
if the taxpayer kept accounts on a cash basis or could be eligible to
be claimed if the taxpayer kept accounts on an accrual basis, as a
deduction pursuant to Section 166 of the Internal Revenue Code, or
the unpaid portion of any account at the time repossession is
accomplished under the terms of a conditional sales contract, may be
credited upon subsequent reports and remittances of the tax levied in
this article, in accordance with the rules and regulations of the Tax
Commission. If such accounts are thereafter collected, the same
shall be reported and the tax shall be paid upon the amount so
collected.
Added by Laws 1993, c. 146, § 19.
§68-1407.2. Retailer Compliance Initiative.
A. For the purpose of registration, collection, and remittance
of sales and use taxes owed to this state pursuant to the Oklahoma
Retail Protection Act of 2016, the Oklahoma Tax Commission is hereby
authorized and directed to establish an initiative for out-of-state
retailers, as provided in this section.
B. 1. The Tax Commission shall not seek payment of uncollected
use taxes from an out-of-state retailer who registers to collect and
remit applicable sales and use taxes on sales made to purchasers in
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this state prior to registration under the initiative, provided that
the retailer was not registered in this state in the twelve-month
period preceding the effective date of this section.
2. The provisions of this subsection will preclude assessment
for uncollected sales and use taxes together with penalty or interest
for sales made during the period the retailer was not registered in
this state, provided registration occurs prior to May 1, 2017.
3. The relief provided herein shall not be available to a
retailer with respect to any matter or matters for which the retailer
received notice of the commencement of an audit and which audit is
not yet finally resolved including any related administrative and
judicial processes and is not available for use taxes already paid or
remitted to the state or taxes collected, but not remitted, by the
retailer.
4. The relief provided herein is fully effective, absent the
retailer's fraud or intentional misrepresentation of a material fact,
as long as the retailer continues registration and continues
collection and remittance of applicable use taxes for a period of at
least thirty-six (36) months. The statute of limitations applicable
to asserting a tax liability during this thirty-six-month period
shall be tolled.
5. The relief provided herein is applicable only to sales and
use taxes due from a retailer in its capacity as a retailer and not
to sales and use taxes due from a retailer in its capacity as a
buyer.
C. The Tax Commission shall promulgate rules detailing the terms
and other conditions of this program.
Added by Laws 2010, c. 412, § 3, eff. July 1, 2010. Amended by Laws
2016, c. 311, § 5, eff. Nov. 1, 2016.
§68-1407.3. Oklahoma Tax Commission – Internet and other out-of-
state retailers outreach program.
In an effort to improve compliance by Internet and other out-of-
state retailers maintaining a place of business in this state for the
collection of use tax on their sales to Oklahoma residents, the
Oklahoma Tax Commission shall implement an outreach program. The
program shall include contacting retailers for a review of their
business activities to determine if such activities may require the
registration and collection of Oklahoma use taxes and the providing
of information regarding the provisions of the Retail Protection Act
of 2016.
Added by Laws 2010, c. 412, § 4, eff. July 1, 2010. Amended by Laws
2016, c. 311, § 6, eff. Nov. 1, 2016.
§68-1407.4. Consumer Compliance Initiative.
A. For the purpose of encouraging the voluntary disclosure and
payment of use taxes owed to this state, the Oklahoma Tax Commission
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is hereby authorized and directed to establish a Consumer Compliance
Initiative for consumers liable for payment of use taxes, as provided
in this section. A taxpayer shall be entitled to a waiver of
penalty, interest and other collection fees due if the taxpayer
voluntarily files delinquent tax returns and pays the taxes due
during the initiative.
B. No assessment of use tax levied under the provisions of
Section 1401 et seq. of Title 68 of the Oklahoma Statutes shall be
made for more than one (1) year prior to the date the consumer
registers to pay applicable use taxes under this initiative.
C. The relief provided herein shall not be available to a
consumer with respect to any matter or matters for which the consumer
received notice of the commencement of an audit and which audit is
not yet finally resolved including any related administrative and
judicial processes and is not available for use taxes already paid or
remitted to the state.
D. The Tax Commission shall promulgate rules detailing the terms
and other conditions of this program.
E. The Tax Commission shall develop and distribute a fact sheet
explaining responsibilities regarding the reporting and payment of
use taxes and how business entities can examine their records to
establish the use tax due on purchases from out-of-state sellers. The
Tax Commission shall make the fact sheet available on the Oklahoma
Tax Commission’s website, mail to targeted industries, existing
licensees, and all Tax Commission license applicants.
F. The Tax Commission is authorized to expend necessary
available funds, including contracting with third parties, to
publicly advertise the Consumer Compliance Initiative and shall be
exempt from the provisions of Section 85.7 of Title 74 of the
Oklahoma Statutes for the purpose of implementing this section.
G. To assist consumers in remitting use taxes due, the Tax
Commission shall develop and maintain an option for consumers to
remit use taxes through an Internet-based portal.
Added by Laws 2010, c. 412, § 5, eff. July 1, 2010.
§68-1407.5. Legislative findings - Sales and use tax system.
A. It is hereby declared to be the intent of the Oklahoma
Legislature to specifically include within the use tax levied by this
article all storage, use or other consumption of tangible personal
property purchased or brought into this state through the continuous,
regular or systematic solicitation in the Oklahoma consumer market by
out-of-state retailers through the Internet, mail order and catalog
publications.
B. The Oklahoma Legislature finds that out-of-state retailers
purposefully direct their activities through the Internet and other
media at Oklahoma residents, that the magnitude of those contacts are
more than sufficient for due process purposes, and that the use tax
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is related to the benefits the out-of-state retailers receive from
access to the state. The consumers of these retail sales are not
paying use taxes when the out-of-state retailer does not collect the
tax as provided in this article. The failure of these out-of-state
retailers to collect the use tax due and owing to the State of
Oklahoma and its jurisdictions is detrimental to the ability of the
state and local governments to provide the services and benefits
bestowed upon the out-of-state retailer and their Oklahoma consumers.
C. The Oklahoma Legislature finds that the sales and use tax
system established under Oklahoma law does not pose an undue burden
on out-of-state retailers and provides sufficient simplification to
warrant the collection and remittance of use taxes by out-of-state
retailers that are due and owing to the State of Oklahoma and its
local jurisdictions. In support of this finding:
1. The state is a member of the Streamlined Sales and Use Tax
Agreement and has amended its laws to be in full compliance with its
terms;
2. The state provides state level administration of sales and
use taxes levied by its cities, counties and other local
jurisdictions by contracting with these entities. All cities,
counties and other local jurisdictions levying sales and use taxes
shall continue to contract with the Oklahoma Tax Commission for
administration of its sales and use taxes so that sellers collecting
and remitting these taxes will not have to register or file returns
with, remit funds to, or be subject to independent audits from the
local taxing jurisdictions;
3. The state provides and maintains a database that describes
boundary changes for all taxing jurisdictions within this state for
sales and use tax purposes and the sales and use tax rates for all of
the jurisdictions levying taxes within the state;
4. The state provides a deduction of the tax due to all
retailers, including out-of-state retailers, to compensate them for
recordkeeping, filing reports, collecting and remitting the tax in a
timely manner;
5. The state provides a mechanism for the electronic submission
of sales and use tax reports and payments;
6. The state provides liability relief to sellers for collecting
an incorrect amount of tax as a result of relying on erroneous data
provided by the Tax Commission on rates, boundaries or taxing
jurisdiction assignments;
7. The state participates in a central registration system that
allows out-of-state retailers to register one time in one place for
multiple states;
8. All local jurisdictions have the same tax base as the state
for sales and use taxes, except as permitted under the Streamlined
Sales and Use Tax Agreement;
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9. The state does not require the payment of a registration fee
from an out-of-state retailer which does not have a legal requirement
to register;
10. The state requires the Oklahoma Tax Commission to give
notice to vendors of local rate changes and boundary changes at least
sixty (60) days prior to the effective date of the change;
11. The state has the same tax rate for every taxable item;
12. The state only requires the filing of a single tax return to
cover all taxing jurisdictions with the state;
13. The Oklahoma Tax Commission provides, free of charge,
business tax workshops for sellers designed to provide information
and answer questions regarding the Oklahoma sales and use tax system;
14. The state allows electronic payments to be made by either
ACH credit or by ACH debit;
15. The state allows a deduction from taxable sales for bad
debts;
16. The state provides a taxability matrix which gives
information on the taxability of a wide variety of items including
all items defined in the Streamlined Sales and Use Tax Agreement; and
17. The state pays the direct cost of a certified service
provider to perform all of an out-of-state seller’s sales and use tax
functions other than the seller’s obligation to remit taxes on its
own purchases.
Added by Laws 2010, c. 412, § 8, eff. July 1, 2010.
§68-1408. Revoking permits.
Whenever any retailer or vendor not maintaining a place of
business in this state, or both within and without this state, and
authorized to collect the tax herein levied, fails to comply with any
of the provisions of this article or any order, rules or regulations
of the Commission, prescribed and adopted under this article, the Tax
Commission may, upon notice and hearing as hereinafter provided, by
order revoke the use tax permit, if any, issued to such retailer or
vendor, and if any such retailer or vendor is a corporation
authorized to do business in this state may, after notice and hearing
as herein provided, cancel said corporation's license to do business
in this state and shall issue a new license only when such
corporation has complied with the obligations under this article. No
order authorized in this section shall be made until the retailer or
vendor is given an opportunity to be heard and to show cause why such
order should not be made and he shall be given ten (10) days' notice
by mail of the time, place and purpose of such hearing.
Laws 1963, c. 368, § 2; Laws 1965, c. 215, § 2; Laws 1968, c. 112, §
4, eff. July 1, 1968.
§68-1409. Reciprocal agreements with other states in administration
of Sales and Use Tax Laws.
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For the purpose of providing for the efficient administration of
the Oklahoma Sales and Use Tax Laws the Oklahoma Tax Commission, when
in its judgment it is necessary or beneficial in order to secure the
collection of sales or use taxes, penalty and interest thereon, due
or to become due under the Sales and Use Tax Codes of this state, is
authorized to enter into reciprocal agreements with the tax
departments of other states in respect to the collection, payment and
enforcement of such taxes on sales of tangible personal property to
residents of Oklahoma by vendors and retailers maintaining places of
business in such other states.
In consideration of such an agreement by the tax departments or
administrators of such other states, the Tax Commission is authorized
to make similar agreements for the collection, payment and
enforcement of sales and use taxes imposed by such other states on
sales of tangible personal property to residents of the other states
by vendors or retailers maintaining places of business in Oklahoma.
The administration of this act is vested in the Oklahoma Tax
Commission and it is hereby authorized to make and enforce such rules
and regulations as it may deem necessary to carry out the provisions
and purpose of this act.
Laws 1968, c. 112, § 1, eff. July 1, 1968.
§68-1410. Repealed by Laws 1993, c. 146, § 29.
§68-1410.1. Repealed by Laws 2017, c. 326, § 2, eff. July 1, 2017.
§68-1411. Additional excise tax on storage, use or other consumption
of tangible personal property.
The board of county commissioners of a county levying a county
sales tax or the governing body of a municipality levying a municipal
sales tax may levy an additional excise tax, at a rate that equals
the county or municipal sales tax rate of such county or
municipality, whichever is applicable, on the storage, use or other
consumption of tangible personal property used, stored or consumed
within the county or municipality. This authorization to levy and
impose a county or municipal use tax shall be in addition to the tax
levied by Section 1402 of this title. Such tax shall be paid by
every person storing, using or otherwise consuming, within the county
or municipality, tangible personal property purchased or brought into
the county or municipality.
The tax levy permitted in this section shall not be levied
against tangible personal property intended solely for use outside
the county or municipality, but which is stored in the county or
municipality pending shipment outside the county or municipality or
which is temporarily retained in the county or municipality for the
purpose of fabrication, repair, testing, alteration, maintenance or
other service.
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The additional tax levied pursuant to this section shall be paid
at the time of importation or storage of the property within the
county or municipality. This tax shall be assessed to only property
purchased outside Oklahoma.
Any person liable for payment of the tax authorized pursuant to
this section, may deduct from such tax any local, county, or
municipal sales tax previously paid on such goods or services.
However, the amount deducted shall not exceed the amount that would
have been due if the taxes imposed by the county or municipality had
been levied on the sale of such goods or services.
Added by Laws 1980, c. 172, § 1. Amended by Laws 1984, c. 295, § 1,
eff. Jan. 1, 1985; Laws 1998, c. 301, § 12, eff. Jan. 1, 1999; Laws
2004, c. 535, § 12, eff. Nov. 1, 2004.
§68-1501. Definitions.
As used in Sections 1501 through 1512 of this title:
1. "Person" means any individual, partnership, association,
limited liability company or corporation;
2. "Music device" means any and all mechanical devices which
render, cause to sound, or release music where the same may be heard
by one or more public patrons, and each separate loudspeaker,
phonograph, juke box, or outlet from which such music emits shall
each be construed to be a separate "music device" as herein defined;
except in the case where the music emits from more than one speaker
transmitting from the same music-producing mechanism, in which case
the several outlets or speakers in each place of business shall be
collectively considered one such music device;
3. "Coin-operated music device" means any such music device
which is operated, motivated, released, or played by or upon the
payment or insertion of a coin, token or similar object, whether
there is one or more boxes or devices in the premises for the
reception of such coin, tokens, or similar objects; coin-operated
radio or television receiving sets in hotels, motels, or tourist
cabins for the use and benefit of the guests and visitors of such
hotels, motels, or tourist rooms or cabins shall be included in such
definition;
4. "Coin-operated amusement device" means any and all
nongambling mechanical or electronic machines which, upon the payment
or insertion of a coin, token, or similar object, provide music,
amusement or entertainment, including, but not limited to, such games
as pool, phonographs, video television, shooting galleries, pinball,
foosball, bowling, shuffle board, or any other amusement device with
or without a replay feature which can be legally shipped interstate
according to federal law;
5. "Coin-operated vending device" means any and all machines or
devices which, upon the payment or insertion of a coin, token or
similar object, dispenses tangible personal property, including but
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not limited to cigarettes, candies, gum, cold drinks, hot drinks,
sandwiches, or chips. It shall not mean vending machines or devices
used exclusively for the purpose of selling services, such as pay
telephone booths, parking meters, gas and electric meters or other
distribution of needful service;
6. "Coin-operated bulk vending device" means a machine or device
which, upon the payment or insertion of a coin, token or similar
object dispenses to the purchaser ballpoint pens, combs, cigarette
lighters, prophylactics, filled capsules, peanuts, gum balls, mints,
perfume or novelties; and
7. "Coin-operated devices" means coin-operated music devices,
coin-operated amusement devices, coin-operated vending devices and
coin-operated bulk vending devices.
Laws 1949, p. 482, § 1, emerg. eff. May 7, 1949; Laws 1959, p. 308, §
emerg. eff. July 15, 1959. Renumbered from § 1545 by Laws 1965, c.
175, § 1. Amended by Laws 1965, c. 215, § 1; Laws 1981, c. 142, § 1;
Laws 1988, c. 47, § 1, operative July 1, 1988; Laws 1993, c. 366, §
43, eff. Sept. 1, 1993.
§68-1503. Amount of fee - In lieu of sales tax - Special decal.
A. Every person who owns and has available to any of the public
for operation, or who permits to be operated in or on his place of
business, coin-operated devices shall pay for such privilege an
annual fee. A fee shall be required for each machine, regardless of
the number of coin slots, if the machine, upon insertion of a coin,
token or similar object, provides music, amusement or entertainment
or dispenses one or more products separate and apart from any other
provider of music, amusement or entertainment or dispenser of one or
more products. The test to determine whether the machine can operate
separate and apart from any other shall be whether the provider or
dispenser can still function if separated from the others to which it
is attached. When multiple machines are placed on a single stand, a
decal shall be required for each machine as provided in Section 1501
et seq. of this title. The annual fee required shall be as follows:
1. For each coin-operated music device or coin-operated
amusement device, Seventy-five Dollars ($75.00);
2. For each coin-operated vending device requiring a coin or
thing of value of twenty-five cents ($0.25) or more, Seventy-five
Dollars ($75.00);
3. For each coin-operated vending device requiring a coin or
thing of value of less than twenty-five cents ($0.25), Ten Dollars
($10.00);
4. For each coin-operated bulk vending device which vends one or
more products through a single distribution mechanism requiring a
coin or thing of value of twenty-five cents ($0.25) or more, Five
Dollars ($5.00);
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5. For each coin-operated bulk vending device which vends one or
more products through more than one but not more than five
distribution mechanisms, requiring a coin or thing of value of
twenty-five cents ($0.25) or more, Fifteen Dollars ($15.00). For
each coin-operated bulk vending device which vends one or more
products through six or more distribution mechanisms, the appropriate
number of fifteen-dollar decals will be required. The number of
decals required shall be determined by dividing the number of
distribution mechanisms by five and rounding to the next highest
whole number; and
6. For each coin-operated bulk vending device requiring a coin
or thing of value less than twenty-five cents ($0.25), Two Dollars
($2.00).
B. The annual fee required by this section shall be in lieu of
sales tax levied pursuant to Sections 1350 through 1372 of this
title.
C. In those instances where it is shown to the satisfaction of
the Tax Commission that a coin-operated device, upon which an annual
fee is imposed, will be placed available for use by the public for a
definite but limited period of time less than one (1) year, such as
where displayed in connection with fairs, carnivals, and places of
amusement that operate only during certain seasons of the year, the
Commission may issue a special decal therefor. Such special decal
may be issued for any number of calendar months less than a full
year, and shall indicate that it is a special decal; and shall be for
one or more calendar months and shall state the precise months for
which issued and shall not be transferred from one machine to
another. The fee shall be computed and paid on the basis of one-
tenth (1/10) of the annual rate for the type of device operated, for
each calendar month for which such special decal is issued. In the
event the mechanical device is made available to the public for a
period beyond that for which the special decal is issued, then a full
year's fee and penalty, as set out in Section 1506 of this title,
shall be due.
Added by Laws 1949, p. 483, § 3, emerg. eff. May 7, 1949. Amended by
Laws 1959, p. 308, § 2, emerg. eff. July 15, 1959. Renumbered from §
1547 of this title by Laws 1965, c. 215, § 1. Amended by Laws 1981,
c. 142, § 2, eff. Oct. 1, 1981; Laws 1982, c. 292, § 1, eff. July 1,
1982; Laws 1988, c. 47, § 2, operative July 1, 1988; Laws 1990, c.
174, § 1, eff. July 1, 1990; Laws 2005, c. 479, § 16, eff. July 1,
2005; Laws 2010, c. 412, § 17, eff. July 1, 2010; Laws 2011, c. 67, §
1, eff. July 1, 2011.
§68-1503.1. Exempted devices.
The following coin-operated vending devices shall be exempt from
the provisions of this article, Section 1501 et seq. of this title:
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1. All coin-operated vending devices owned by and located in a
public or private school, a church, or a governmental entity;
2. All coin-operated vending devices which dispense only
newspapers or periodicals;
3. All coin-operated vending devices which dispense only postage
stamps; and
4. All coin-operated vending devices installed on federal
military bases.
Added by Laws 1990, c. 174, § 2, eff. July 1, 1990. Amended by Laws
1991, c. 342, § 19, emerg. eff. June 15, 1991.
§68-1504. Application and issuance of decal - Display.
Any person owning a coin-operated device or operating the
premises where the same is to be operated or exposed to the public,
shall apply to the Oklahoma Tax Commission for a decal for such
device and shall, at the same time, pay to the Oklahoma Tax
Commission the annual fee herein levied. The Oklahoma Tax Commission
shall, upon receipt of such payment and approval of such application,
issue a decal for the type of coin-operated device covered by such
application and payment. The decal and application provided for
herein shall be prescribed by the Oklahoma Tax Commission, and shall
contain such information and description as shall be required by rule
of said Commission. Any number of coin-operated devices may be
included in one application. Before any coin-operated device is put
in operation or placed where the same may be operated by any of the
public, and at all times when the same is being operated or available
to any of the public for operation, a decal shall be firmly affixed
to the coin-operated device covered thereby, and plainly visible to
and readable by the public. The Tax Commission may refuse to issue a
decal to any person delinquent in the payment of the fees provided in
Section 1503 of this title or the penalties levied in Section 1506 of
this title. Provided, the Tax Commission shall provide notice of its
intent to refuse as required in Section 1506 of this title.
Added by Laws 1949, p. 483, § 4, emerg. eff. May 7, 1949. Amended by
Laws 1961, c. 34, p. 540, § 1, emerg. eff. July 27, 1961; Laws 1961,
c. 34a, p. 540, § 1, emerg. eff. Aug. 7, 1961. Renumbered from §
1548 of this title by Laws 1965, c. 215, § 1. Amended by Laws 1982,
c. 292, § 2, eff. July 1, 1982; Laws 1988, c. 47, § 3, operative July
1, 1988; Laws 2016, c. 167, § 1, eff. Nov. 1, 2016.
§68-1505. Taxable year - Decal for remainder of year.
For the purpose of the decal issued under Sections 1501 et seq.
of this title, the fee year shall begin on the first day of July and
end on the last day of the following June; and shall be divided into
two (2) halves. The Tax Commission shall in each instance issue
decals for the remainder of the fee year upon payment of the fee on
the basis of the current and remaining half of such fee year. Any
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product purchased for resale, through a vending machine where fees
have been paid and decals affixed, shall not be subject to sales tax.
Amended by Laws 1982, c. 292, § 3, eff. July 1, 1982; Laws 1988, c.
47, § 4, operative July 1, 1988.
§68-1506. Operation without decal - Fee and penalty.
A. Any owner of a coin-operated device who places such device in
operation or in a place available to the public for operation, and
any person who permits a coin-operated device to be in operation or
accessible to the public for operation in his place of business,
without a decal affixed as required by Section 1504 of this title,
shall be liable for the fee on such device at the full annual rate as
herein levied and shall be liable to a penalty, in addition to the
amount of the fee, in the following amounts:
1. For any coin-operated music device, coin-operated amusement
device, or coin-operated vending device requiring a coin or thing of
value of twenty-five cents ($0.25) or more, One Hundred Dollars
($100.00); and
2. For any other coin-operated device, Ten Dollars ($10.00).
B. The Tax Commission shall notify any owner or person of the
assessment of penalty and provide the owner or person thirty (30)
days to remit the penalty. The Tax Commission shall not refuse to
issue a decal under Section 1504 of this title until after the
expiration of the thirty (30) days provided in this subsection.
Added by Laws 1949, p. 484, § 6, emerg. eff. May 7, 1949. Renumbered
from § 1550 of this title by Laws 1965, c. 215, § 1. Amended by Laws
1988, c. 47, § 5, operative July 1, 1988; Laws 2016, c. 167, § 2,
eff. Nov. 1, 2016.
§68-1507. Seizure and forfeiture of devices without decal affixed.
Where any coin-operated device as hereinbefore defined is placed
on location, or after having been placed on location is there left
without the decal affixed thereon as herein provided, the device,
including all cash in the receptacle thereof, shall be considered
forfeited to the State of Oklahoma and may be sealed until released
by the Tax Commission or seized by any authorized agent of the
Oklahoma Tax Commission, or any sheriff, constable, or other peace
officer of this state, and upon so being seized shall, together with
the cash, if any, contained in the receptacle of such device,
forthwith be delivered to the Oklahoma Tax Commission. Provided, no
device shall be seized less than fifteen (15) days after the sealing
of the device and notice being placed on the device informing the
owner that the device is subject to seizure if the applicable fees
are not paid and decal affixed. The Oklahoma Tax Commission shall
then proceed to hear and determine the matter of whether or not the
device and cash, if any, should, in fact, be forfeited to the State
of Oklahoma. The owner of the device shall be given at least ten
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(10) days' notice of the date of the hearing. In the event said
Commission finds that the device including the cash contents, if any,
should be forfeited to the State of Oklahoma, it shall make an order
forfeiting the same to the State of Oklahoma, and directing the sale
of such device. The device shall be sold in the county where seized
or in Oklahoma County, at the discretion of the Commission, after ten
(10) days' notice, which notice shall be by posting five notices in
conspicuous places in the county where the sale is to be made, one of
which notices shall be posted on the bulletin board at the county
courthouse of said county. The sale shall be for cash, and the
proceeds thereof shall be applied as follows:
1. To the payment of the costs incident to the seizure and sale;
2. To the payment of any taxes, including penalties, that may
have accrued against the device; and
3. The balance, if any, shall be remitted to the owner.
The cash contained in any device and forfeited under the
provisions of this section shall be forfeited as an additional tax
penalty and shall be in addition to all other penalties provided for
in Sections 1501 through 1512 of this title. The order of the Tax
Commission, declaring a forfeiture of the device including the cash
contents thereof, if any, and directing the sale of such device shall
be a final order and may be appealed from as provided for in the
Uniform Tax Procedure Act. It shall be the duty of all sheriffs,
constables and other peace officers to cooperate with the Oklahoma
Tax Commission in the enforcement of the seizure and forfeiture
provisions of this section.
Added by Laws 1949, p. 484, § 7, emerg. eff. May 7, 1949. Renumbered
from § 1551 of this title by Laws 1965, c. 215, § 1. Amended by Laws
1988, c. 47, § 6, operative July 1, 1988; Laws 1993, c. 146, § 23;
Laws 2016, c. 167, § 3, eff. Nov. 1, 2016.
§68-1508. Repealed by Laws 2016, c. 167, § 4, eff. Nov. 1, 2016.
§68-1509. Prohibited devices not legalized - Fees not refunded.
Nothing in Sections 1501 through 1512 of this title shall be
construed to legalize any device that may be prohibited by any of the
statutes of this state. The Oklahoma Tax Commission may assume that
any device described in any application, and for which a fee is paid,
is lawful and no claim for refund of any such fee will be entertained
based on an owner's inability to operate such device because of any
law of this state or for any other reason.
Amended by Laws 1988, c. 47, § 8, operative July 1, 1988.
§68-1509.1. Sale or distribution of coin-operated devices - Permit
required - Rules and regulations.
The Tax Commission shall issue permits for the sale or
distribution of one or more coin-operated devices pursuant to the
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provisions of Sections 1509.2 et seq. of this title and shall adopt
such rules and regulations as are necessary to implement such
provisions.
Amended by Laws 1982, c. 292, § 4, eff. July 1, 1982; Laws 1988, c.
47, § 9, operative July 1, 1988.
§68-1509.2. Requirements to obtain permit.
To obtain a permit to sell or distribute coin-operated devices,
an applicant shall comply with the following requirements:
1. Be a resident of this state for two (2) years preceding the
date of the application;
2. Not be a convicted felon;
3. Have obtained an Oklahoma Sales Tax Permit to be used
exclusively to report the sale of coin-operated devices; and
4. Be either an owner or partner of a business selling or
distributing coin-operated devices.
Laws 1981, c. 142, § 5, eff. Oct. 1, 1981; Laws 1982, c. 292, § 5,
eff. July 1, 1982; Laws 1988, c. 47, § 10, operative July 1, 1988;
Laws 1993, c. 146, § 24.
§68-1509.3. Distributor's permit - Fees.
A. The seller or distributor of coin-operated devices shall be
required to purchase a distributor's permit at an annual fee of Two
Hundred Dollars ($200.00).
B. The permit and fees required by this section shall be in lieu
of any similar permit or fee requirements of any county or
municipality.
C. All permit fees collected hereunder shall be distributed in
accordance with Section 1510 of this title.
Amended by Laws 1982, c. 292, § 6, eff. July 1, 1982; Laws 1988, c.
47, § 11, operative July 1, 1988.
§68-1509.4. Failure to obtain permit - Purchase or sale of replay
game - Application of act.
A. Failure to obtain a permit under the provisions of this act
shall be a misdemeanor, punishable by a fine in the amount of twice
the permit fee required and ineligibility to apply for a permit for
two (2) years from date of adjudication of a violation of this act.
B. Purchasing or selling a replay game shall be a felony.
C. The provisions of this act shall not apply to retail sales to
individuals for personal use. The licensing provisions of this act
shall not apply to machines installed on federal military bases.
Laws 1981, c. 142, § 7.
§68-1510. Distribution of revenues.
It is hereby declared to be the purpose of this act to provide
revenues for general government functions of the state government,
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and for that purpose and to that end, it is expressly provided that
the revenue derived herefrom, including penalties, shall be deposited
monthly to the credit of the General Revenue Fund of the state for
the support of the state government, to be paid out only pursuant to
appropriation by the Legislature.
Amended by Laws 1986, c. 223, § 43, operative July 1, 1986.
§68-1511. Fee in lieu of taxes.
The fee herein levied is the exclusive fee to be imposed by the
state, and is in lieu of all taxes upon coin-operated devices, except
ad valorem taxes and municipal license fees except as otherwise
provided by Sections 1509.1 through 1509.4 of this title. It is
further provided that cities, municipalities and towns are authorized
to levy a license or occupation tax upon coin-operated devices, or
persons operating the same, or premises where same are located, in an
amount not in excess of seventy-five percent (75%) of the fee hereby
imposed.
Amended by Laws 1988, c. 47, § 12, operative July 1, 1988.
§68-1512. Partial invalidity.
If any section, or part hereof, of this act is declared invalid
such declaration shall not affect the remaining portions thereof.
Laws 1949, p. 485, § 12; Laws 1965, c. 215, § 1.
§68-1515. Fee on initial sale of tickets for professional sporting
events.
A. There shall be assessed a fee on the initial sale of tickets
in this state for admission to professional sporting events involving
ice hockey, baseball, basketball, football, arena football or soccer,
in amounts as follows:
1. One Dollar ($1.00) on each ticket priced at more than zero,
but less than Fifty Dollars ($50.00); and
2. Two Dollars ($2.00) on each ticket priced equal to or greater
than Fifty Dollars ($50.00).
B. The fee prescribed by subsection A of this section shall be
remitted monthly to the Oklahoma Tax Commission on such forms as the
Commission may prescribe for such purpose.
C. All monies collected pursuant to this section shall be paid
by the Oklahoma Tax Commission to the State Treasurer to be deposited
in the General Revenue Fund.
D. The Oklahoma Tax Commission shall promulgate rules as
necessary to implement and administer the provisions of this section.
E. As used in this section, "professional sporting event" means
an organized athletic competition between teams that are members of
an organized league or association with centralized management that
imposes requirements for participation in the league upon the teams,
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the individual athletes or both, and which uses a salary structure to
compensate the athletes.
Added by Laws 2017, c. 238, § 1, eff. July 1, 2017.
§68-1621. Purpose and intent of act.
The purpose and intent of this act is to establish orderly sales,
use and storage of fireworks, to specify conditions of sales and
licensing provisions, to prohibit certain fireworks, to provide for
seizure and disposition of illegal fireworks and to establish
penalties for violations.
Laws 1969, c. 337, § 1, operative June 1, 1969; Laws 1981, c. 268, §
1, emerg. eff. June 25, 1981.
§68-1622. Definitions.
As used in Section 1621 et seq. of this title:
1. "Fireworks" means any composition or device for the purpose
of producing a visible or an audible effect by combustion, explosion,
deflagration or detonation, and which are further described as
Consumer Fireworks 1.4G, Display Fireworks 1.3G, Articles,
Pyrotechnic 1.4G or 1.4S as defined by the United States Department
of Transportation (DOT) Title 49, CFR. The term "consumer fireworks"
shall not include toy cap pistols and caps, blank cartridges,
railroad flares and model rockets or any novelty. This provision
shall not impose labeling requirements for any fireworks or novelties
other than those required under federal law;
2. "Consumer Fireworks" means any devices suitable for use by
the public that conform with the requirements of the United States
Consumer Products Safety Commission (CPSC) and are designed primarily
to produce visible effects by combustion, and some small devices
designed to produce an audible effect;
3. "Display Fireworks" means fireworks devices that are
primarily intended for commercial displays which are designed to
produce visible and/or audible effects by combustion, deflagration or
detonation. Display Fireworks include, but are not limited to,
salutes containing more than two grains (130mg) of explosive
composition, aerial shells containing more than forty (40) grams of
pyrotechnic compositions and other exhibition display items that
exceed the limits for Consumer Fireworks according to the Department
of Transportation (DOT);
4. "Manufacturer" means any person engaged in the making or
constructing of fireworks;
5. "Novelty" means a device containing small amounts of
pyrotechnic and/or explosive composition. Such devices produce
limited visible or audible effects. These items must be approved by
the United States Department of Transportation (DOT) or have been
deregulated by DOT;
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6. "Distributor" means any person who sells fireworks and
novelties to other distributors, wholesalers or retailers for resale
or provides them as part of a pyrotechnic display service in the
State of Oklahoma;
7. "Wholesaler" means any person who purchases fireworks and
novelties for resale only to retailers and consumers;
8. "Retailer" means any person who purchases fireworks and
novelties for resale to consumers only; and
9. "Person" means any corporation, association, partnership or
one or more individuals.
Added by Laws 1969, c. 337, § 2, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 2, emerg. eff. June 25, 1981; Laws 2010, c. 408,
§ 1, emerg. eff. June 8, 2010; Laws 2014, c. 142, § 1, eff. Nov. 1,
2014.
§68-1623. Conditions for storage, transportation, sale, and use.
A. Consumer Fireworks may be legally stored, transported, sold
and used in this state with the exceptions and conditions specified
under the provisions of Section 1621 et seq. of this title and
consistent with Section 22-110 of Title 11 of the Oklahoma Statutes.
Novelties may be legally stored, transported, sold and used in this
state.
B. All fireworks storage and sales areas shall be conspicuously
posted with signs reading "FIREWORKS-NO SMOKING".
C. Fireworks offered for retail sale must be sold according to
the National Fire Protection Association (NFPA) 1124 Chapter 7, 2006
Edition. Any facility licensed to sell consumer fireworks prior to
November 15, 2009, shall be exempt from the NFPA regulations listed
in this subsection but shall remain under the regulation of the date
of licensure. Mail-order sales to consumers are prohibited through
any medium of either interstate or intrastate commerce. Sales of
fireworks may only be made at properly licensed retail locations
within the State of Oklahoma. A sales clerk must be on duty to serve
the consumer at the time of purchase.
D. An enclosed building used for sale of fireworks to the public
shall be built according to the International Building Code (IBC)
2006 Edition and/or the codes and standards adopted by the Oklahoma
Uniform Building Code Commission.
E. The retail license holder shall be responsible for the safe
operation of retail sales to the public. The retail license holder
shall be at least sixteen (16) years of age.
F. Fireworks may be sold by licensed manufacturers, distributors
or wholesalers at wholesale or retail to residents and nonresidents
of the state from January 1 until December 31 of each calendar year.
Fireworks may only be sold by licensed retailers from June 15 until
July 6 or the first Sunday after July 4th, whichever is later, and
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from December 15 until January 2 to residents and nonresidents of the
state each calendar year.
G. Nothing in Section 1621 et seq. of this title shall be
construed to require the State Fire Marshal to inspect or cause to be
inspected portable retail fireworks stands, tents or other nonrigid
shelters prior to opening; provided, the provisions of this
subsection shall not prohibit the local governing authority of the
location of the portable retail fireworks stand, tent or other
nonrigid shelter from inspecting such stands, tents or other nonrigid
shelters prior to opening.
Added by Laws 1969, c. 337, § 3, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 3, emerg. eff. June 25, 1981; Laws 1983, c. 17,
§ 1, emerg. eff. March 25, 1983; Laws 2010, c. 408, § 2, emerg. eff.
June 8, 2010; Laws 2013, c. 167, § 1, emerg. eff. April 26, 2013;
Laws 2017, c. 240, § 1, emerg. eff. May 12, 2017; Laws 2019, c. 175,
§ 1, eff. July 1, 2019.
§68-1624. Certain fireworks prohibited - Labeling of fireworks.
A. From and after July 5, 1981, the sale, gift, distribution or
use of skyrockets with sticks as defined by the United States
Consumer Product Safety Commission is hereby prohibited within the
State of Oklahoma. This prohibition shall include, but is not
limited to, explosive devices commonly known as "bottlerockets" or
"stickrockets". Distribution, gift or sale from Oklahoma to a person
outside the State of Oklahoma shall not be considered as occurring
within the State of Oklahoma.
B. Any and all items of Consumer Fireworks not properly labeled
according to the United States Consumer Product Safety Commission and
identified with the appropriate United States Department of
Transportation markings is prohibited under the provisions of Section
1621 et seq. of this title.
Added by Laws 1969, c. 337, § 4, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 4, emerg. eff. June 25, 1981; Laws 2010, c. 408,
§ 3, emerg. eff. June 8, 2010.
§68-1624.1. Aerial luminaries.
A. It shall be unlawful to sell, offer for sale, distribute,
possess, ignite, or otherwise use aerial luminaries, commonly known
as sky lanterns, Hawaii lanterns, Knogming Lanterns, Chinese
lanterns, sky candles, fire balloons or flying luminaries.
B. As used in this section, "aerial luminary" means an airborne
paper lantern containing a small candle, or other device for fuel,
that heats air from inside the lantern causing the lantern to rise
into the air and remain airborne until the candle or other device
extinguishes.
Added by Laws 2013, c. 166, § 1.
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§68-1625. License fees.
The following license fees shall be due and payable on or before
March 1 of each year to the Office of the State Fire Marshal. Any
licensed manufacturer, distributor or wholesaler permitted to sell
fireworks at wholesale or retail, pursuant to Section 1623 of this
title, may apply for a license.
1. A license fee of One Thousand Dollars ($1,000.00) annually
shall be charged for the license to do business within this state as
a manufacturer. Provided, no manufacturer's license shall be issued
without:
a. proof of inspection by the State Fire Marshal pursuant
to Section 1633 of this title, and
b. proof of workers' compensation coverage pursuant to the
provisions of Title 85 of the Oklahoma Statutes.
2. A license fee of One Thousand Dollars ($1,000.00) annually
shall be charged for the license to do business within this state as
a distributor.
3. A license fee of Five Hundred Dollars ($500.00) annually
shall be charged for the license to do business within this state as
a wholesaler.
4. Any person operating a retail location where fireworks are
sold directly to the consumer shall be required to purchase a retail
fireworks license. The retail license fee shall be Ten Dollars
($10.00) annually and may be purchased from any licensed wholesaler,
manufacturer or distributor. These serially numbered licenses shall
be made available at any time to the licensed wholesalers,
manufacturers or distributors in books of twenty licenses to a book.
Retail licenses which are unsold may be exchanged for new licenses.
Any person purchasing a retail fireworks license pursuant to this
paragraph shall, at the time of purchasing such license, sign an
affidavit attesting to the fact that the name, mailing address and
telephone number of the purchaser as it appears on such license is
correct and that the purchaser operates a retail location where
fireworks are sold directly to the consumer. Said affidavit shall be
an integral but easily detachable part of the application form for a
retail fireworks license. Any person who signs said affidavit as
required by this paragraph when such person knows that it is not
true, upon conviction, shall be guilty of the felony of perjury and
shall be punished as provided for by law.
Any person engaged in more than one of the licensed activities
provided in this section shall only pay one fee to be based on the
classification requiring the higher fee.
Added by Laws 1969, c. 337, § 5, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 5, emerg. eff. June 25, 1981; Laws 1985, c. 308,
§ 1, emerg. eff. July 24, 1985; Laws 1986, c. 239, § 1, operative
Aug. 1, 1986; Laws 1997, c. 133, § 563, eff. July 1, 1999; Laws 2010,
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c. 408, § 4, emerg. eff. June 8, 2010; Laws 2011, c. 238, § 10, eff.
May 1, 2012.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 563 from July 1, 1998, to July 1, 1999.
§68-1625.1. Certain person to deliver license copies to Office of
the State Fire Marshal.
A. Any wholesaler, manufacturer or distributor who sells retail
fireworks licenses, pursuant to paragraph 4 of Section 1625 of this
title, shall deliver to the Office of the State Fire Marshal on
January 31 and July 31 of each calendar year all copies of retail
fireworks licenses which such wholesaler, manufacturer or distributor
has issued during the preceding six-month period.
B. If the license copies are not delivered to the Office of the
State Fire Marshal on January 31 and July 31 of each calendar year,
an additional penalty of Five Dollars ($5.00) shall accrue for each
day thereafter that said license copies are not delivered pursuant to
the provisions of this section.
Added by Laws 1986, c. 239, § 2, operative Aug. 1, 1986. Amended by
Laws 2012, c. 369, § 1, emerg. eff. June 8, 2012.
§68-1626. Collection and disposition of fees.
All license fees specified in Section 1625 of this title shall be
collected by the Office of the State Fire Marshal and shall be paid
to the State Treasurer of the State of Oklahoma, to be placed to the
credit of the State Fire Marshall Revolving Fund.
Added by Laws 1969, c. 337, § 6, operative June 1, 1969. Amended by
Laws 1984, c. 180, § 3, operative July 1, 1984; Laws 1985, c. 308, §
2, emerg. eff. July 24, 1985; Laws 1986, c. 190, § 6, operative July
1, 1986; Laws 1986, c. 223, § 44, operative July 1, 1986; Laws 2012,
c. 369, § 2, emerg. eff. June 8, 2012.
§68-1627. Necessity for licenses - Unlawful sales - Unlawful
discharging.
A. 1. No person shall knowingly sell, purchase or deliver, or
cause to be sold, purchased or delivered, fireworks for resale to any
other person who does not possess a valid license under this act. It
shall be unlawful for a distributor, wholesaler or retailer, licensed
under this act, to purchase fireworks from any person, unless the
distributor, wholesaler or retailer determines that the person holds
a valid distributor's, wholesaler's or manufacturer's license under
this act. All retail sales outlets shall have a current retail
license. The license shall be conspicuously posted in the immediate
vicinity of the sales operation and shall be immediately available
for examination by the public or any enforcement officer. No license
provided for herein shall be transferable nor shall any person be
permitted to operate under a license granted to another person.
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2. A distributor, wholesaler or retailer who sells fireworks to
the consumer may purchase merchandise in or out of this state as long
as the retailer buys from a person that has a legal license to do
business in this state.
3. The State Fire Marshal shall, by rule, enforce the provisions
of this subsection.
B. It shall be unlawful to offer for retail sale or to sell any
fireworks to children under the age of twelve (12) years, unless
accompanied by an adult, or to any intoxicated or irresponsible
person.
C. It shall be unlawful to explode or ignite fireworks within
five hundred (500) feet of any church, hospital, asylum, unharvested,
flammable agricultural crop, public school or where fireworks are
stored, sold or offered for sale. No person shall ignite or
discharge any permissible articles of fireworks within or throw the
same from a motor vehicle; nor shall any person place or throw any
ignited article of fireworks into or at such a motor vehicle or at or
near any group of people.
Added by Laws 1969, c. 337, § 7, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 6, emerg. eff. June 25, 1981; Laws 2014, c. 142,
§ 2, eff. Nov. 1, 2014.
§68-1628. Violations and penalties - Contraband - Enforcement.
A. Violation of any provision of this act is a misdemeanor
punishable as follows:
1. Discharging fireworks or igniting aerial luminaries in
violation of this act shall be punishable by a fine not to exceed One
Hundred Dollars ($100.00); and
2. Illegal sale, violation of licensing provision, false
labeling, or any other violation of this act shall be punishable by a
fine not to exceed One Thousand Dollars ($1,000.00), ninety (90)
days' imprisonment in the county jail, or both. In the event of a
second conviction the license shall be revoked for a period of
eighteen (18) months. Each violation of this act shall constitute a
separate offense. No other person shall be granted a license to
operate in the same location during the period of a revoked license.
B. The State Fire Marshal, his deputies, or any authorized
police or peace officer of this state shall seize as contraband any
illegal fireworks or aerial luminaries as defined under the terms of
this act. Fireworks or aerial luminaries seized in the enforcement
of this act shall be held in custody of the county sheriff in which
county such fireworks or aerial luminaries were seized. The party
surrendering the fireworks or aerial luminaries, if aggrieved by the
action, may file an appeal in writing to the district court in the
county where fireworks or aerial luminaries were seized. Upon
hearing the appeal, the district court may authorize the return of
part or all of the confiscated fireworks or aerial luminaries;
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otherwise, the court shall authorize and direct that such contraband
fireworks or aerial luminaries be destroyed.
C. The provisions of this act shall be enforced by the State
Fire Marshal and local fire marshals, the sheriff, the police or any
peace officer licensed or authorized by this state or by their
respective deputies.
Added by Laws 1969, c. 337, § 8, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 7, emerg. eff. June 25, 1981; Laws 2013, c. 166,
§ 2.
§68-1629. Public displays.
Nothing in this act shall be construed as applying to shipping,
sale, possession or use of display fireworks when displayed by
holders of a permit for a public display to be conducted in
accordance with the rules and regulations of the State Fire Marshal
Commission.
Applications for permits for display fireworks must be submitted
in writing prior to the date of display to the Authority Having
Jurisdiction (AHJ) as defined by the NFPA 1123 where the display is
to occur. If the display is in an area outside the jurisdiction of a
city or town, application for permit shall be submitted in writing to
the State Fire Marshal's Office ten (10) days prior to the date of
the display. Every display shall be under the direction of a
competent, responsible operator of legal age and be conducted under
the code of regulations as adopted by the State Fire Marshal
Commission. The person or organization making application for permit
must submit to the authority having jurisdiction evidence of a
general liability insurance policy in an amount of not less than One
Million Dollars ($1,000,000.00) or the amount set forth by the local
governing authority. Before a permit is granted, a local fire
inspector or an agent of the State Fire Marshal shall inspect and
approve or reject the site of the display. No permit so granted
shall be transferable.
Added by Laws 1969, c. 337, § 9, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 8, emerg. eff. June 25, 1981; Laws 2010, c. 408,
§ 5, emerg. eff. June 8, 2010.
§68-1630. Sale or possession of display fireworks - Interstate
transportation.
It shall be unlawful for any person to sell display fireworks to
any holder of a permit unless the seller possesses a valid
manufacturer's, distributor's or wholesaler's license under Section
1621 et seq. of this title.
No person shall ship Display Fireworks into the State of Oklahoma
except under the rules and regulations of the Department of
Transportation (DOT). It shall be unlawful for any person to sell or
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possess Display Fireworks in the State of Oklahoma unless they are
licensed or permitted as noted in this act.
Added by Laws 1969, c. 337, § 10, operative June 1, 1969. Amended by
Laws 1981, c. 268, § 9, emerg. eff. June 25, 1981; Laws 2010, c. 408,
§ 6, emerg. eff. June 8, 2010.
§68-1631. Minimum requirements - Additional regulation by city
ordinance.
The provisions of this act shall be construed as imposing minimum
requirements and shall not be construed as prohibiting any city or
town within the State of Oklahoma from passing such ordinances as may
be deemed necessary to properly regulate or prohibit the sale and use
of fireworks within its corporate limits.
Laws 1969, c. 337, § 11, operative June 1, 1969.
§68-1633. Inspection and certification of Display Fireworks
facilities.
No person shall engage in the business of manufacturing Display
Fireworks without first requesting the State Fire Marshal to conduct
a fire and safety inspection and receiving certification that a
satisfactory inspection was conducted. All manufacturers of Display
Fireworks shall be required to comply with the standards promulgated
by the National Fire Protection Agency, Section 1124-Code for
Manufacture, Transportation and Storage of Fireworks.
Upon written request of a Display Fireworks manufacturer, the
State Fire Marshal shall, within ten (10) days, conduct a fire and
safety inspection and shall, upon satisfactory inspection, issue
certification of the inspection. Thereafter, the State Fire Marshal
shall conduct a fire and safety inspection at least once every six
(6) months.
Whenever the State Fire Marshal shall find any violation of NFPA-
1124 which would endanger persons or property, the State Fire Marshal
shall immediately order the manufacturing facility closed until such
time as the violations are remedied and a new inspection and
certification takes place.
Any person engaging in the business of manufacturing Display
Fireworks without current certification of a satisfactory fire and
safety inspection or any person refusing to comply with the State
Fire Marshal's order to close a Display Fireworks manufacturing
facility shall, upon conviction, be guilty of a misdemeanor and be
punished by imprisonment in the county jail not exceeding one (1)
year or by a fine not exceeding Ten Thousand Dollars ($10,000.00) or
both such fine and imprisonment.
Any person manufacturing Display Fireworks on the effective date
of this act shall, within ninety (90) days, be licensed and inspected
pursuant to this act.
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Added by Laws 1985, c. 308, § 5, emerg. eff. July 24, 1985. Amended
by Laws 2010, c. 408, § 7, emerg. eff. June 8, 2010.
§68-1634. Sales tax on fireworks - Tax permit.
A. Every retail sale of fireworks by a wholesaler, distributor,
manufacturer or a retailer shall be subject to the levy and
collection of sales tax pursuant to the provisions of the Oklahoma
State Tax Code.
B. Every retail fireworks location shall possess a valid current
sales tax permit issued by the Oklahoma Tax Commission. The sales
tax permit shall be conspicuously posted in the immediate vicinity of
the sales operation and shall be immediately available for
examination by the public or any enforcement officer.
C. Vendors that fail to collect sales tax as required by
subsection A of this section shall be subject to the penalties
provided in Section 1361 of this title.
Added by Laws 1986, c. 239, § 3, operative Aug. 1, 1986. Amended by
Laws 2011, c. 331, § 1.
§68-1635. Purpose - Definitions.
A. The purpose of this act is to enact a licensing program for
outdoor display fireworks for Oklahoma entities and a licensing
program for individuals conducting outdoor fireworks displays in this
state. The purpose of these programs is to ensure a level of
competence that promotes safety for the public, fire service
personnel, and fireworks display operators and their employees and
service personnel. It is not the purpose of this act to regulate
United States Department of Transportation Division 1.4G consumer
fireworks as defined by NFPA standards or paragraph 2 of Section 1622
of Title 68 of the Oklahoma Statutes.
B. As used in this act:
1. “Licensed outdoor display operator” means an individual who
by experience, training, and examination recognized and approved by
the State Fire Marshal has demonstrated the necessary knowledge and
ability to safely assemble, discharge and supervise outdoor display
fireworks in accordance with NFPA 1123;
2. "Operator" shall have the same meaning as "licensed outdoor
display operator", as defined in paragraph 1 of this subsection;
3. “Display fireworks” means fireworks devices that are
primarily intended for commercial displays which are designed to
produce visible and/or audible effects by combustion, deflagration or
detonation. Display fireworks include, but are not limited to,
salutes containing more than two grains (130mg) of explosive
composition, aerial shells containing more than forty (40) grams of
pyrotechnic compositions and other exhibition display items that
exceed the limits for consumer fireworks according to the United
States Department of Transportation (DOT);
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4. “Event” means any function or gathering at which there will
be a fireworks display. If a function or gathering lasts more than
one (1) day, each day is a separate event. Event does not include
any function or gathering at which only consumer fireworks, as
defined in paragraph 2 of Section 1622 of Title 68 of the Oklahoma
Statutes, will be used exclusively;
5. "Distributor" means any person engaged in the business of
making sales of display fireworks as defined in paragraph 3 of
Section 1622 of Title 68 of the Oklahoma Statutes or materials to
Oklahoma-licensed or -permitted entities for the purpose of providing
fireworks or pyrotechnic display services in this state. A
distributor may sell display fireworks only to Oklahoma-licensed or -
permitted entities. An out-of-state distributor shall not be
required to obtain an Oklahoma license when selling exclusively to a
holder of an Oklahoma manufacturer, distributor, or wholesaler
license;
6. “NFPA” means the National Fire Protection Association;
7. “NFPA 1123” means the NFPA publication entitled “NFPA 1123:
Code for Fireworks Display”, 2010 Edition or any subsequent edition
that has been adopted by the State Fire Marshal by rule;
8. “NFPA 1124” means the NFPA publication entitled “NFPA 1124:
Code for Manufacture, Transportation, Storage, and Retail Sale of
Fireworks and Pyrotechnic Articles”, 2006 Edition or any subsequent
edition that has been adopted by the State Fire Marshal by rule;
9. “NFPA 1126” means the NFPA publication entitled “NFPA 1126:
Standards for the Use of Pyrotechnics Before a Proximate Audience”,
2011 Edition or any subsequent edition that has been adopted by the
State Fire Marshal by rule;
10. “Outdoor fireworks display” means a presentation of display
fireworks for a public or private gathering as defined by NFPA 1123;
11. “Proximate pyrotechnics” means pyrotechnic devices for
professional use only, used outdoors or indoors, that are similar to
consumer fireworks in chemical composition but that are not intended
for consumer use, and that are defined by NFPA 1126 as 1.4G or 1.4S
fireworks or pyrotechnics;
12. “Proximate pyrotechnic display” means the use of pyrotechnic
devices and materials, 1.4G or 1.4S fireworks or pyrotechnics when
any portion of the audience is closer than permitted by NFPA 1123,
and subject to NFPA 1126 requirements; and
13. “Sponsor” means any person or organization which contracts
with a licensed entity, licensed distributor or licensed outdoor
display operator to conduct a fireworks display.
Added by Laws 2011, c. 238, § 1, eff. May 1, 2012.
§68-1636. Fireworks display - Licenses or permits.
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A. An individual or entity shall have the appropriate Oklahoma
license or permit to conduct an outdoor fireworks display on or after
January 1, 2013.
B. To receive a manufacturer, distributor or wholesaler license,
an applicant shall make application to the State Fire Marshal on a
form prescribed by the State Fire Marshal. The application shall be
accompanied by the required fee. An individual seeking a license as
a sole proprietor or on behalf of a business entity shall be at least
twenty-one (21) years of age and shall not have been convicted of or
pled guilty or nolo contendere to any state or federal felony. In
the case of a business seeking a license, no officer or member of its
governing board shall have been convicted of or pled guilty or nolo
contendere to any state or federal felony.
Nothing in this act shall be construed as applying to shipping,
sale, possession or use of display fireworks when displayed by
holders of a permit for a public display to be conducted in
accordance with the rules and regulations of the State Fire Marshal
Commission.
Applications for permits for display fireworks shall be submitted
in writing prior to the date of display to the Authority Having
Jurisdiction (AHJ) as defined by the NFPA 1123 where the display is
to occur. If the display is in an area outside the jurisdiction of a
municipality, application for the permit shall be submitted in
writing to the Office of the State Fire Marshal ten (10) days prior
to the date of the display. Every display shall be under the
direction of a competent, responsible, licensed outdoor display
operator, of legal age, and shall be conducted under the code of
regulations as adopted by the State Fire Marshal Commission. The
individual or organization applying for a permit shall submit to the
AHJ evidence of a general liability insurance policy in an amount of
not less than One Million Dollars ($1,000,000.00) or the amount set
forth by the local governing authority. Before a permit is granted,
a local fire inspector or an agent of the State Fire Marshal shall
inspect and approve or reject the site of the display. No permit so
granted shall be transferable.
Added by Laws 2011, c. 238, § 2, eff. May 1, 2012. Amended by Laws
2012, c. 369, § 3, emerg. eff. June 8, 2012.
§68-1637. Issuance of license.
If an applicant for an outdoor display operator license complies
with the requirements of this act and the rules of the State Fire
Marshal, the State Fire Marshal shall issue the license within sixty
(60) days of receiving the application. The term of the license is
three (3) years from the date of issuance. Each license issued shall
contain a distinct number assigned to the particular operator. The
State Fire Marshal shall maintain a list of all licensed operators.
In this list, next to the operator's name, the State Fire Marshal
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shall insert the period of licensure and the operator's license
number. The list of licensed operators shall be posted on the State
Fire Marshal’s website.
Added by Laws 2011, c. 238, § 3, eff. May 1, 2012.
§68-1638. Application for new license.
A holder of an operator's license with an unexpired license may
apply for a new license at any time before the license expires.
Added by Laws 2011, c. 238, § 4, eff. May 1, 2012.
§68-1639. Revocation, suspension, refusal to grant or renew license.
The State Fire Marshal may refuse to grant, or may suspend,
revoke, or refuse to renew, any license or certification held under
the provisions of this act. The provisions of the Administrative
Procedures Act shall govern all matters and procedures respective to
hearings and judicial review of any contested case arising under this
act.
Added by Laws 2011, c. 238, § 5, eff. May 1, 2012.
§68-1640. Licensure program.
A. The State Fire Marshal shall establish a program for
licensure of outdoor display operators. To receive licensure, an
individual shall apply for licensure to the State Fire Marshal on a
form to be prescribed by the State Fire Marshal, shall be at least
twenty-one (21) years of age and shall not have been convicted of or
pled guilty or nolo contendere to any state or federal felony, and
shall show that the applicant has worked under complete supervision
on at least three displays in the three (3) years immediately
preceding the application. In addition, an applicant shall meet the
following requirements:
1. Complete eight (8) hours of classroom and hands-on training;
2. Take and pass a written examination approved by and conducted
under the auspices of the State Fire Marshal that tests outdoor
operator knowledge; and
3. Pay a license fee not to exceed Seventy-five Dollars
($75.00), to be deposited in the State Fire Marshal Revolving Fund.
B. The State Fire Marshal shall establish the scope and type of
curriculum and examinations required by subsection A of this section,
and may require applicants to take a test created by a nationally
recognized pyrotechnic association. The State Fire Marshal may
administer the examination or may enter into an agreement with a
testing service or organization. The tests may be administered at a
specific location or time. The State Fire Marshal may set by rule
and collect a reasonable fee calculated to cover the costs of
classroom instruction and administering the test. Written tests may
be supplemented by practical tests or demonstrations deemed necessary
to determine the skill and ability of the applicant. The content,
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type, frequency, and location of the training and testing shall be
designated by the State Fire Marshal.
C. An operator license or renewal expires three (3) years after
the date of the approval or reissuance. To renew the license, an
individual shall show to the satisfaction of the State Fire Marshal
that the individual has attended at least six (6) hours of continuing
education training to meet the approval of the State Fire Marshal in
the areas of licensing desired during the three-year period and pay
the applicable fee.
Added by Laws 2011, c. 238, § 6, eff. May 1, 2012.
§68-1641. Requirement of licensure to conduct fireworks displays.
A. It is unlawful for anyone other than a licensed outdoor
display operator to conduct an outdoor display using only display
fireworks.
B. It is unlawful for any licensed outdoor display operator to
conduct an outdoor fireworks display except in accordance with NFPA
1123.
C. It is allowable for a licensed outdoor display operator to
use 1.4G or 1.4S fireworks in outdoor displays.
D. A violation of subsection A or B of this section shall be a
misdemeanor.
E. Any municipality may adopt the provisions of subsections A
and B of this section by reference or substantial duplication as an
ordinance violation.
F. The provisions of subsection A or B of this section shall not
apply to individuals or organizations employing consumer fireworks
for their personal or display use.
Added by Laws 2011, c. 238, § 7, eff. May 1, 2012.
§68-1642. Storage of fireworks or pyrotechnic materials.
Any person or entity that stores fireworks or pyrotechnic
materials, or both, that are defined as consumer fireworks 1.4G,
display fireworks 1.3G, Articles, Pyrotechnic 1.4G or 1.4S as defined
by the United States Department of Transportation (DOT) in Title 49
of the Code of Federal Regulations, shall store them in accordance
with current NFPA standards, including NFPA 1124, and any applicable
federal, state, and local laws or ordinances. Violations of this
section shall be a misdemeanor.
Added by Laws 2011, c. 238, § 8, eff. May 1, 2012.
§68-1643. Administration and enforcement of act.
The State Fire Marshal shall administer and enforce the
provisions of this act and may call upon any federal, state, county,
or municipal officer or employee for assistance. The State Fire
Marshal may promulgate rules to carry out the responsibilities under
this act, including rules relative to:
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1. Certification of or licensing of outdoor display operators;
2. Training;
3. Examinations;
4. The responsible handling of display fireworks; and
5. Any other reasonable rules the State Fire Marshal deems
necessary to implement this act.
Added by Laws 2011, c. 238, § 9, eff. May 1, 2012.
§68-1701. Definitions.
As used in Sections 1701 through 1707 of this title:
1. "Contractor" includes all prime and general contractors,
subcontractors, independent contractors and persons engaged in
contract labor who through negotiations or competititve bidding enter
into contracts to furnish labor, materials or both and the required
equipment to perform the contract for a fixed price and who in
pursuit of independent business undertake a job in whole or in part
retaining substantial control of the method and manner of
accomplishing the desired result and means any person, firm, joint
venture, partnership, copartnership, association, corporation, or
other organization engaged in the business of the construction,
alteration, repairing, dismantling,or demolition of roads, bridges,
viaducts, sewers, water and gas mains, streets,disposal plants, water
filters, tanks, towers, airports, buildings, dams, levees, canals,
railways and rail facilities, oil and gas wells, water wells,
pipelines, refineries, industrial or processing plants, chemical
plants, power plants, electric or telephone or any other type of
energy or message transmission lines or equipment, or any other type
of construction excluding family farm operations. The term
contractor shall not include the state or any agency, institution, or
political subdivision of the state or any duly constituted authority
of a political subdivision;
2. "Resident contractor" means a contractor who maintains his
principal place of business in this state or a multi state employer
who maintains a permanent work force of three or more employees in
this state;
3. "Nonresident contractor" means a contractor who maintains his
principal place of business outside this state or a multi state
employer who does not maintain a permanent work force of three or
more employees in this state.
Amended by Laws 1984, c. 213, § 1, operative July 1, 1984.
§68-1701.1. Employer identification numbers - Responsibility of
contractors - Violations and liability - Exemptions.
A. All contractors as defined in Section 1701 of this title
shall have and be able to prove current employer identification
numbers issued to them by the Oklahoma Tax Commission, the Oklahoma
Employment Security Commission, the Internal Revenue Service, and the
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Social Security Administration, and a workers' compensation policy in
compliance with the provisions of Title 85 of the Oklahoma Statutes.
A bona fide association representing construction related entities
may, through such insurance carriers and products approved by the
Commissioner, offer benefits plans and insurance coverage to a
particular trade, business, profession or industry or their
subsidiaries as authorized by Title 85 of the Oklahoma Statutes. Any
workers' compensation policy for a nonresident contractor shall show
"Oklahoma" or "All States" for Other States Insurance on Section 3C
of the policy. Each contractor shall be responsible for maintaining
his or her own payroll reports and records including reports and
records required by the Oklahoma Tax Commission, the Oklahoma
Employment Security Commission, the Internal Revenue Service, and the
Social Security Administration. No contractor shall be required to
keep payroll records or make any other report for any other
contractor.
B. Owners, lessees, or renters awarding a contract shall not be
required to ascertain if a contractor has complied with the
provisions of subsection A of this section or be responsible for a
contractor's reports, records, or be liable for any penalty resulting
from the contract.
C. Any contractor who violates or does not comply with the
provisions of subsection A of this section shall be liable for any
unpaid taxes and wages resulting from the contract in addition to the
penalties provided in Section 1707 of this title. The failure of a
contractor to comply with the provisions of subsection A of this
section shall neither present any liability or responsibility for any
unpaid taxes, wages, or penalties resulting from the contract upon
any other contractor nor shall any future contracts of the contractor
be impaired because of a failure to comply with the provisions of
subsection A of this section on a prior contract.
D. Subsection A of this section shall not apply if a contract
for an entire project requires the services of less than three
employees. A resident contractor shall not be required to comply
with the provisions of subsection A of this section in the
construction of a single family dwelling when the total cost of the
project is less than the average sales price of a single family
dwelling in this state as set each year by the National Association
of Home Builders. This subsection shall not be construed to exempt
any person of any tax liabilities or other requirements provided for
by law.
Added by Laws 1984, c. 213, § 2, operative July 1, 1984. Amended by
Laws 2013, c. 381, § 1, eff. July 1, 2013.
§68-1702. Notice to state and local taxing authorities as to
contracts.
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To the end that the State of Oklahoma and the political
subdivisions thereof may receive all taxes due in every instance,
nonresident contractors desiring to engage in, prosecute, follow, or
carry on the business of contracting shall give written notice by
certified mail, with return receipt requested, to the Oklahoma Tax
Commission, the Oklahoma Employment Security Commission, the Workers'
Compensation Court, and the county assessor of each county in which
such contract work or service is to be performed before actually
commencing work or undertaking to perform any duties pursuant to any
such contract. The notice shall state the approximate amount of the
contract price, the location where work is to be performed, the
approximate date work is to be commenced, a description of the
general nature of the work to be performed and a complete list of all
subcontractors, if any, including their addresses, and the amount of
each such subcontract. The prime contractor shall also notify the
above if they have a subcontract let after the work begins, so that
the name of every subcontractor shall be known to the above before
said subcontractor initiates his work.
Amended by Laws 1984, c. 213, § 3, operative July 1, 1984.
§68-1703. Surety bond conditioned upon compliance with tax laws -
Waiver.
Notwithstanding the provisions of Sections 1103 and 1731 of Title
69 of the Oklahoma Statutes, every nonresident contractor, including
those in the position of subcontractor, subject to the provisions of
this article, before actually commencing work or undertaking to
perform any services or duties under any such contract in excess of
One Hundred Thousand Dollars ($100,000.00), shall file with the
Oklahoma Tax Commission a surety bond with a surety authorized to do
business in this state, in the penal sum of not less than three times
the tax liability incurred or to be incurred under any such contract,
payable to the State of Oklahoma, or, in lieu of such surety bonds,
cash or negotiable bonds or other obligations of the United States of
America, the State of Oklahoma or its subdivisions, conditioned upon
compliance with the tax laws of Oklahoma, both state and local, the
Oklahoma Employment Security Act, the Oklahoma Workers’ Compensation
Act, and the provisions and requirements of this article; provided:
1. If such contractor receives another contract to perform
services or duties in this state or if, in the judgment of the Tax
Commission the amount of tax liability incurred or to be incurred
under such contract is increased from the amount used to compute the
amount of the original bond, the amount of such bond shall be
increased to meet the requirements set forth in this subsection;
2. The amount of such tax liability may be reduced by the amount
of the tax liability incurred or to be incurred by nonresident
contractors in the position of subcontractors, who actually post
bonds on their subcontracts, listed in the notice to the Oklahoma Tax
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Commission by a prime contractor, as required by the preceding
section; and
3. If the Tax Commission, after making an investigation at the
request of a nonresident contractor, finds that such nonresident
contractor has and will continue to have property within Oklahoma,
and has regularly engaged in business in this state and will continue
to do so, and the Tax Commission, for said reason, determines in
writing that such nonresident contractor’s financial responsibility
is sufficient to cover its tax liability and the other obligations
covered by this article, such nonresident contractor shall not be
required to make and file the surety bond required in this section
nor to give the notices required by this article, and the Tax
Commission shall notify the nonresident contractor of its findings.
Added by Laws 1965, c. 30, § 2. Amended by Laws 1971, c. 330, § 2,
emerg. eff. June 26, 1971; Laws 1972, c. 165, § 1, emerg. eff. April
7, 1972; Laws 1989, c. 279, § 11, operative July 1, 1989; Laws 1994,
c. 278, § 18, eff. Sept. 1, 1994; Laws 2004, c. 535, § 13, eff. Nov.
1, 2004.
§68-1704. Failure to give notice or execute bond.
Every contractor shall provide the information required in
subsection A of Section 1701.1 of this title and shall provide proof
of the executed bond provided by Section 1703 of this title, if
required, to the agency or entity administering the contract before
actually commencing work or undertaking the performance of any
services. Any contractor who fails to provide the required
information or proof of bond, if required, shall be fined by the
Oklahoma Tax Commission in an amount not to exceed ten percent (10%)
of the contractor's total bid, which shall be in addition to any
other penalties allowed by law.
Added by Laws 1965, c. 30, § 2. Amended by Laws 2013, c. 381, § 2,
eff. July 1, 2013.
§68-1705. Notice upon completion of work.
Every such contractor shall also give written notice to the Tax
Commission, the Oklahoma Employment Security Commission, the State
Industrial Court, and the county assessor of each county in which
such contract work or service has been performed, by certified mail,
with return receipt requested, immediately upon completion of the
work and services required by any such contract. The date of mailing
such notice shall, for the purposes of this article, be considered
the date of the completion of said contract. No action shall be
commenced on the surety bond required by this article after the
expiration of one (1) year from the date of the mailing of said
notice of the completion of the contract.
Laws 1965, c. 30, § 2.
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§68-1706. Actions.
(a) An action against any contractor or the surety on any bond
required by this article may be brought in any court of competent
jurisdiction in Oklahoma County or any county in which any work under
any such contract is performed. The entering into of any contract
for the performance of work in the State of Oklahoma by any such
nonresident contractor shall be deemed to constitute an agreement to
be subject to the jurisdiction of the courts of this state and shall
constitute an appointment of the Secretary of State of Oklahoma as
service agent of such contractor in any such action, and the service
of summons or other process issued in any such action when served on
the Secretary of State shall have the same legal force and validity
as if served upon the contractor personally within the State;
provided, that the service agent may be served in any manner now
provided by law or in lieu thereof by mailing such summons to said
service agent by certified mail with return receipt requested,
postage prepaid, which such in lieu service shall be sufficient upon
proof of mailing with the return receipt attached.
(b) The summons shall be directed to the Secretary of State and
shall require the defendant to answer by a day certain not less than
forty-one (41) days from the return date fixed therein. The
Secretary of State shall immediately forward a copy of the summons to
the contractor by certified mail, return receipt requested, to the
address given by such contractor in the notice given to the Tax
Commission, and shall thereupon make his return of said summons to
the court from which the same issued, showing the date of its receipt
by him, the date of forwarding, and the name and address of the
contractor to whom the same was forwarded. The Secretary of State
shall keep a suitable record of every such action showing the name of
the court in which the action is brought, the date of commencement,
the style of the case, and the date and manner of service. The
plaintiff in any such action shall cause a fee of Two Dollars ($2.00)
to be paid to the Secretary of State at the time of service. Every
notice required of a contractor under this article to be given to the
Tax Commission shall also contain the address of the principal place
of business of the contractor, which shall be deemed to be the
mailing address of such contractor for the purpose of service of
process in any action brought under this article.
Laws 1965, c. 30, § 2.
§68-1707. Penalty.
Any contractor who, or which, fails to make and file a bond or to
give the notices to the Oklahoma Tax Commission, the Employment
Security Commission, the Workers' Compensation Court, and the county
assessor of each county involved, as required by Sections 1701
through 1706 of this title, shall be guilty of a misdemeanor, and
upon conviction thereof shall be punished by a fine of not less than
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One Hundred Dollars ($100.00) nor more than One Thousand Dollars
($1,000.00). Any contractor who violates the provisions of Section 2
of this act shall be quilty of a misdemeanor, and upon conviction
thereof shall be punished by a fine of not less than One Thousand
Dollars ($1,000.00) nor more than Ten Thousand Dollars ($10,000.00).
Venue for such prosecution shall be in Oklahoma County, or in any
county where such contract work is performed.
Amended by Laws 1984, c. 213, § 4, operative July 1, 1984.
§68-1708. Employer identification numbers - Proof required for
public project bids - Penalties.
A. All contractors as defined in Section 1701 of this title
signing any contract to provide materials or labor on a public
construction project in this state shall show proof of all
documentation required pursuant to Section 1701.1 of this title.
B. Any contractor who fails to provide proof as required in
subsection A of this section, or any contractor who performs work in
this state as a contractor without registration as required by
Section 1701.1 of this title, shall be fined by the Oklahoma Tax
Commission an amount not to exceed ten percent (10%) of the
contractor's total bid, which shall be in addition to any other
penalties allowed by law.
C. Any contractor who intentionally misclassifies individuals as
independent contractors rather than employees for the purpose of
affecting procedures and payments relating to withholding and social
security, unemployment tax or workers' compensation premiums shall be
fined by the Oklahoma Tax Commission an amount not to exceed ten
percent (10%) of the contractor's total bid, which shall be in
addition to any other penalties allowed by law.
Added by Laws 2012, c. 351, § 1, eff. Nov. 1, 2012. Amended by Laws
2013, c. 381, § 3, eff. July 1, 2013.
§68-1709. Employee misclassification - Agencies - Investigation and
enforcement.
The Oklahoma Tax Commission, Oklahoma Workers’ Compensation
Court, Department of Labor, CompSource Oklahoma and Oklahoma
Employment Security Commission shall share information and coordinate
investigative and enforcement efforts for the purpose of detecting
those contractors who intentionally misclassify individuals as
independent contractors rather than employees for the purpose of
affecting procedures and payments relating to withholding and social
security, unemployment tax or workers’ compensation premiums. The
agencies required by this section to share information and coordinate
efforts shall be authorized to create a secure database of
information accessible by agency representatives responsible for
enforcement and shall be further authorized to enter into contracts
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and interagency agreements and promulgate such rules as may be
necessary to implement this section.
Added by Laws 2012, c. 351, § 2, eff. Nov. 1, 2012.
§68-1801. Classification for taxation.
Cooperative, nonprofit, membership corporations organized or
operating under the provisions of the Rural Electric Cooperative Act,
Senate Bill No. 141, as enacted by the Seventeenth Oklahoma
Legislature, for the generation, transmission and distribution of
electric energy, are hereby expressly classified for purposes of
taxation. Such corporations are hereinafter referred to as
"Cooperatives".
Laws 1943, p. 178, § 1; Laws 1965, c. 215, § 1.
§68-1802. Statements of gross receipts.
Within sixty (60) days after this act shall become effective,
each Cooperative shall file with the Oklahoma Tax Commission, on
forms prescribed thereby, a statement of its total gross receipts
derived from the sale and distribution of electric energy during the
period beginning January 1, 1943, and ending on the last day of the
calendar month next preceding the time for making such statement and
shall pay the tax hereinafter levied thereon; and, on or before the
twentieth day of each month thereafter each cooperative shall so file
such statement of such gross receipts so derived during the next
preceding calendar month and pay the tax hereinafter levied thereon;
each such statement shall contain such other and further information
as the Oklahoma Tax Commission may require and shall be sworn to and
verified by an officer of the cooperative.
Laws 1943, p. 178, § 2; Laws 1965, c. 215, § 1.
§68-1803. Tax levied - Rate - Payment monthly - In lieu of other
taxes.
There is hereby levied on each Cooperative an annual tax which
shall equal two percent (2%) of the gross receipts derived by it from
the sale and distribution of electric energy during the calendar
year. The tax hereby levied shall be payable monthly according to,
and as and when the statements shall be made as required in Section 2
of this act. The tax so levied or so imposed shall, when paid as
herein provided, be in full and in lieu of any and all other taxes
imposed by the state, counties, cities, towns, townships, school
district, and other municipalities or political subdivisions of the
state on the property of each such cooperative.
Laws 1943, p. 178, § 3; Laws 1965, c. 215, § 1.
§68-1804. Definition of property.
For the purposes of this act "property" shall include any and all
property, tangible and intangible, real, personal, and/or mixed, used
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or intended for use, in generation, transmission and distribution of
electric energy, and for the operation and maintenance of such rural
electric cooperatives, hereinabove classified, for the taxable year
1943, and subsequent years.
Added by Laws 1943, p. 178, § 4, emerg. eff. April 1, 1943.
Renumbered from § 864 of this title by Laws 1965, c. 215, § 1.
§68-1805. Statements of mileage of lines.
On or prior to the first day of May, 1943, and on or before the
first day of March of each succeeding year, each such cooperative
shall file with the Oklahoma Tax Commission, on forms prescribed by
said Commission, a statement of the total number of miles of line of
such cooperative, owned, maintained, and operated by such
cooperative, in each county and school district of the state as of
January first of each year; and each such cooperative shall likewise
file a statement of the total number of miles of line owned,
maintained, and operated as of January first of each year within each
school district of each county with the county treasurer of each
county.
Added by Laws 1943, p. 178, § 5, emerg. eff. April 1, 1943.
Renumbered from § 865 of this title by Laws 1965, c. 215, § 1.
§68-1806. Proceeds of tax, how applied.
All monies, funds and revenues arising, collected, received, by
the Oklahoma Tax Commission pursuant to the provisions of this act
shall be applied as follows:
(a) Five percent (5%) of all monies collected under the
provisions of this act shall be paid to the State Treasurer and
placed to the credit of the General Revenue Fund of the State
Treasury.
(b) (1) Except as provided in paragraph (2) of this subsection,
the remaining ninety-five percent (95%) of all monies
collected under this act shall be apportioned and paid
each month by the Oklahoma Tax Commission to the school
treasurers or school districts of the respective
counties in which the remitting cooperative owns and
operates property, as defined in Section 1804 of this
title, according to the proportion which the number of
miles of electrical distribution lines of such
cooperative in such school district bears to the total
number of miles of such lines owned and operated by
such cooperative within the state.
(2) Beginning July 1, 1991, if the amendment to Section 12a
of Article X of the Constitution of the State of
Oklahoma contained in Enrolled House Joint Resolution
No. 1005 of the 1st Extraordinary Session of the 42nd
Oklahoma Legislature is approved by the people, the
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remaining ninety-five percent (95%) of all monies
collected under this act shall be remitted to the State
Treasurer to be deposited in the Common School Fund.
Amended by Laws 1986, c. 223, § 45, operative July 1, 1986; Laws
1989, 1st Ex.Sess., c. 2, § 96, emerg. eff. April 25, 1990.
§68-1807. Liberal construction.
The provisions of this act shall be liberally construed.
Laws 1943, p. 179, § 7; Laws 1965, c. 215, § 1.
§68-1901. Real estate mortgage defined.
The words or term "real estate mortgage" as used in this article
shall be understood to include every species of conveyance intended
to secure the payment of money by lien upon real estate. Any contract
for the sale of real estate in which title is retained in the vendor
for the purpose of enforcing payment of the balance due shall be
deemed a mortgage upon real property. If an indebtedness is secured
by both real and personal property, said mortgage shall be deemed to
be a mortgage on real property for the purpose of this article. Any
contract or agreement by which the indebtedness secured by any
mortgage is increased or added to shall be deemed a mortgage of real
property for the purposes of this article and shall be taxable as
such upon the amount of such increase or addition.
Laws 1965, c. 31, § 2.
§68-1902. Exemption from other taxes.
All mortgages of real property situated within this state which
are taxed by this article, and the debts and obligations which they
secure, together with the paper writings evincing the same, shall be
exempt from ad valorem and all other taxation by the state, counties,
towns, cities, school districts and other local subdivisions of the
state, except this article shall not affect in any manner the
collection of any income tax payable in whole or in part from the
interest received from such mortgage indebtedness. The exemption
conferred by this exemption shall not be construed to impair or in
any manner affect the purchaser of real estate which may be sold for
nonpayment of taxes levied by any local authority.
Laws 1965, c. 31, § 2.
§68-1903. Exemptions prohibited.
No mortgage of real property situated within this state shall be
exempt, and no person or corporation owning any debt or obligation
secured by mortgage of real property situated within this state shall
be exempt, from the tax imposed by this article by reason of anything
contained in any other statute, or by reason of nonresidence within
this state, or for any other cause.
Laws 1965, c. 31, § 2.
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§68-1904. Amount of tax - Fee - Payment.
A. The following taxes are hereby levied on real estate
mortgages:
1. A tax of ten cents ($0.10) for each One Hundred Dollars
($100.00) and each remaining fraction thereof where such mortgage is
for five (5) years or more;
2. A tax of eight cents ($0.08) for each One Hundred Dollars
($100.00) for each mortgage where such mortgage is for four (4) years
or more but less than five (5) years;
3. A tax of six cents ($0.06) for each One Hundred Dollars
($100.00) where such mortgage is for three (3) years or more but less
than four (4) years;
4. A tax of four cents ($0.04) for each One Hundred Dollars
($100.00) where such mortgage is for two (2) years or more but less
than three (3) years; and
5. A tax of two cents ($0.02) for each One Hundred Dollars
($100.00) where such mortgage is for less than two (2) years.
If the principal debt or obligation secured by the mortgage is
less than One Hundred Dollars ($100.00), a tax of ten cents ($0.10)
shall be levied on such mortgage and shall be collected and paid as
provided for in this article.
B. In addition to the taxes levied pursuant to the provisions of
subsection A of this section, the county treasurer shall collect a
fee of Five Dollars ($5.00) on each mortgage presented to the county
treasurer for certification. The fees collected pursuant to the
provisions of this subsection shall be deposited into a cash account
to be known as the "County Treasurer's Mortgage Certification Fee
Account". Monies from the account shall be expended by the county
treasurer in the lawful operation of the treasurer’s office.
C. The tax provided for in subsection A of this section may be
paid by the mortgagor, the mortgagee or any other interested party.
Added by Laws 1965, c. 31, § 2. Amended by Laws 1984, c. 195, § 2,
eff. Jan. 1, 1985; Laws 1986, c. 135, § 7, emerg. eff. April 17,
1986; Laws 1992, c. 208, § 1; Laws 2000, c. 217, § 25, eff. July 1,
2000.
§68-1905. Supplemental instruments or assignments of mortgages -
Procedure.
If subsequent to the recording of a mortgage on which all taxes,
if any, accrued under this article have been paid, a supplemental
instrument or mortgage is recorded for the purpose of correcting or
perfecting any recorded mortgage, or pursuant to some provision or
covenant therein, or an additional mortgage is recorded imposing the
lien thereof upon property not originally covered by or not described
in such recorded primary mortgage for the purpose of securing the
principal indebtedness which is, or under any contingency may be,
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secured by such recorded primary mortgage, or an assignment of
mortgage is recorded, such supplemental instrument or assignment of
mortgage or mortgage shall not be subject to the tax or fee levied
and imposed by Section 1904 of this title unless it creates or
secures a new or further indebtedness or obligation other than the
principal indebtedness or obligation secured by or which under any
contingency may be secured by the recorded primary mortgage, in which
case a tax is levied on such new or further indebtedness or
obligation as heretofore provided in Section 1904 of this title, and
shall be paid to the county treasurer before the time such instrument
or additional mortgage is recorded. If, at the time of recording
such instrument, or additional mortgage, any exemption is claimed
under this section, there shall be filed with the county treasurer
and preserved in the office of the county treasurer a statement under
oath of the facts on which such claim for exemption is based. The
determination of the county treasurer upon the question of exemption
shall be reviewable on appeal to the district court under the same
procedure as appeals from the county commissioners to the district
court.
Added by Laws 1965, c. 31, § 2. Amended by Laws 1996, c. 100, § 1,
eff. July 1, 1996.
§68-1906. Mortgages for indefinite amounts - Procedure.
If the principal indebtedness secured or which by any contingency
may be secured by a mortgage is not determinable from the terms of
the mortgage, or if a mortgage is given to secure the performance by
the mortgagor, or of any other person of a contract obligation other
than the payment of a specific sum of money and the maximum amount
secured or which by any contingency may be secured by the mortgage is
not expressed therein, such mortgage shall be taxable upon the value
of the property covered by the mortgage, which shall be determined by
the county treasurer to whom such mortgage is presented for taxation,
unless at the time of presenting such mortgage for taxation the owner
thereof shall file with the county treasurer a sworn statement of the
maximum amount secured by the mortgage. If such maximum amount is
expressed in the mortgage or in a sworn statement filed as required
by this section, such amount shall be the basis for assessing the tax
levied by this article. The statement filed by the owner of a
mortgage pursuant to this section shall thereafter at all times be
binding upon and conclusive against such owner, the holders of any
bonds or obligations secured by such mortgage and all persons
claiming through the mortgagee any interest in the mortgage or the
mortgaged premises. If the maximum amount secured or which by any
contingency may be secured by the mortgage is not expressed in the
mortgage or in a sworn statement so authorized by this section, the
county treasurer at the time such mortgage is offered for taxation
may require the mortgagor or mortgagee to furnish him with proofs as
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to such facts as he deems necessary for the purpose of computing the
value of the property covered by the mortgage, and such proofs shall
be preserved in his office. His determination as to the basis for
computing the tax on such mortgage shall be subject to review on
appeal to the district court under the same procedure as cases
appealed from the county commissioners to the district court.
Laws 1965, c. 31, § 2.
§68-1907. Payment prerequisite to recording, use as evidence.
No mortgage of real property shall be recorded by any county
clerk unless there shall be paid the tax imposed by and as in this
article provided. No mortgage of real property which is subject to
the taxes levied by this article shall be released, discharged of
record or received in evidence in any action or proceeding, nor shall
any agreement extending any such mortgage be recorded unless the
taxes levied thereon by this article shall have been paid as provided
in this article. No judgment or final order in any action or
proceeding shall be made for the foreclosure or enforcement of any
mortgage which is subject to the taxes levied by this article or of
any debt or obligation secured by or which secures any such mortgage
unless the taxes levied by this article shall have been paid as
provided in this article.
Added by Laws 1965, c. 31, § 2. Amended by Laws 1996, c. 100, § 2,
eff. July 1, 1996.
§68-1908. Corporate mortgages - Further loans - Additional tax.
In the case of mortgages made by corporations in trust to secure
payments of bonds or obligations issued or to be issued thereafter,
if the total amount of principal indebtedness which under any
contingency may be advanced or accrued, or which may become secured
by any such mortgage which is subject to this article has not been
advanced or secured thereon or become secured thereby before such
mortgage is recorded, it may contain at the end thereof a statement
of the amount which at the time of the execution and delivery thereof
has been advanced or accrued thereon or which is then secured by such
mortgage; thereupon the tax payable on the recording of the mortgage
shall be computed on the basis of the amount so stated to have been
so advanced or accrued thereon, or which is stated to be secured
thereby. Such statement shall thereafter at all times be binding
upon and conclusive against the mortgagee, the holders of any bonds
or obligations secured by such mortgage and all persons claiming
through the mortgagee any interest in the mortgage or in the
mortgaged premises. Whenever a further amount is to be advanced
under the original mortgage, or shall accrue thereon or become
secured thereby, the corporation making such mortgage shall, at or
before the time when such amount is to be advanced, accrues or
becomes secured, file in the office of the county treasurer in the
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county where such mortgage has been or is first recorded, a
statement, verified by the secretary, treasurer or other proper
officer of said corporation of the amount of principal indebtedness
to be so advanced, accruing or becoming secured, and the tax on such
amount shall become due and payable at the time of filing such
statement. Such additional tax shall be paid to the county treasurer
in the county where such mortgage has been or is first recorded and a
receipt therefor shall be noted in the margin of the record of such
mortgage and if requested a duplicate receipt for such payment shall
also be given to the party paying such tax and the note of such
payment or additional payment or such receipt shall have the same
force and effect as the record of receipt of the tax which under this
article is payable at or before the recording of the mortgage. If
such additional tax is not paid as required by this section, the
trust mortgagee shall not certify any bond or other obligation issued
on account thereof, and the district attorney of the county in which
such mortgage has been or is first recorded may maintain an action
against the corporation making such mortgage to recover the amount of
such tax, with interest at the rate of one percent (1%) per month
from the date when the same became due, and upon recovering such tax
and interest such district attorney shall pay the same to the county
treasurer of such county in satisfaction of such tax. The
corporation making such mortgage or the owner of the property which
secures the mortgage debt shall annually within thirty (30) days
after July 1st, until the maximum amount of principal indebtedness
secured by such mortgage has been advanced, has accrued or become
secured and the tax thereon paid, file in the office of the county
treasurer in the county where such mortgage has been or is first
recorded, a statement, verified by the secretary, treasurer or other
proper
officer of said corporation, of the total amount of principal
indebtedness that has been advanced or has accrued on such mortgage,
or has become secured thereby, prior to the first day of July
preceding the filing of such statement. A failure to file any
statement required by this section within the time required shall
subject the corporation making such mortgage to a penalty of One
Hundred Dollars ($100.00) per day for each day such failure
continues, recoverable by the district attorney of the county in
which such mortgage has been or is first recorded. Provided,
however, that where a mortgage, or deed of trust, is executed to
secure the payment of bonds issued by any domestic railroad,
transportation, transmission or industrial corporation and the money
derived from the sale of said bonds so secured by said mortgage, or
deed of trust, is to be used for the creation, construction,
building, improving and erecting of property that will be subject to
an ad valorem tax in the county where same is situated, there shall
be paid a recording fee on said mortgage, or deed of trust, so
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executed for recording said mortgage, or deed of trust, the sum of
twenty-five cents ($0.25) for first folio and ten cents ($0.10) for
each additional folio and fifty cents ($0.50) for indexing and
recorder's certificate instead of the fees designated in this
article, and on payment of same shall not be subject to the penalties
prescribed in this article.
Laws 1965, c. 31, § 2.
§68-1909. Property in more than one county - Apportionment.
When property is in more than one county, or when the real
property covered by a mortgage is assessed in more than one county,
it shall be the duty of the county treasurer of the county where said
mortgage is offered for taxation to ascertain the assessed value of
the property in each county and to apportion the amount upon which
the tax shall be paid to the county treasurer in each of the said
counties upon the basis of the relative assessments. Where the
mortgage is a first lien upon the real property situate in another
county, it shall be his duty to apportion the amount of the tax
property to be credited to said county by ascertaining the valuation
of each parcel as appears from the last preceding assessment roll of
the county in which such parcel is located, after deducting therefrom
the taxable amount of any prior lien. If, however, the whole or a
part of the property covered by the mortgage in a county is not
assessed in the last preceding assessment roll or rolls of said
county in which it is located, or is assessed as a part of a larger
tract in such a manner that the assessed value cannot be determined
from the assessment rolls or roll, or improvements have been made
upon the property so assessed, the county treasurer may determine the
value of the property covered by the mortgage and for such purpose
may require the mortgagor or mortgagee to furnish him with proofs as
to such facts as he deems necessary for the purpose of computing such
value, and the value so determined shall be deemed to be the assessed
value for the purpose of such apportionment. When the real property
covered by a mortgage is located partly within the state and partly
without the state, it shall be the duty of the county treasurer to
whom said mortgage is offered for taxation to determine what
proportion shall be taxable under this article by determining the
relative value of the mortgaged property within this state as
compared to the total value of the entire mortgaged property, taking
into consideration in so doing the amount of all prior encumbrances
upon such property or any portion thereof. If a mortgage covering
property located partly within the state and partly without the state
is presented for taxation before such determination has been made,
then there may be presented to the recording officers, with such
mortgage, or at the time when the first advance is made on prior
advance mortgage as provided in Section 1911 of this article, a
statement in duplicate verified by the mortgagor or an officer or a
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duly authorized agent or attorney of the mortgagor, specifying the
value of the property covered by the mortgage within the state and
the property covered by the mortgage without the state, stated
separately. Such statements shall be filed with the county
treasurer. The tax payable under this article shall be computed upon
such properties of the principal indebtedness secured by the mortgage
or of the sum advanced thereon, as the case may be, as the value of
the mortgaged property within the state shall bear to the total value
of the entire mortgaged property, as set forth in such statement. In
determining the separate values of the property covered by any such
mortgage within and without the state for the purpose of ascertaining
the proportion of the principal indebtedness secured by the mortgage
which is taxable under this Article, the county treasurer shall
consider only the value of the tangible property covered by each
mortgage, taking into consideration in so doing the amount of all
prior encumbrances thereon. For the purpose of determining such
value the county treasurer may require the mortgagor or mortgagee to
furnish him by affidavit or verified report such information or data
as he deems needed for the purpose, or he may take the testimony of
the mortgagor or any other person in relation thereto, and if any
person whose testimony is desired can be found within the state, may
require him by subpoena to attend before him at a specified time and
place for the purpose of testifying in relation to the value of said
property. He may also determine at the same time the proportion of
the tax which shall be paid by the county treasurer who has received
the same to the several county treasurers of the respective counties
in the state in which parts of the mortgaged property are situated.
When such county treasurer shall pay any portion of such tax to the
county treasurer of any other county, he shall at the same time file
in the office of the county clerk of such county a brief description
of the mortgage on which such tax is paid sufficient to identify the
same, together with a statement of the payment of such tax, and the
amount thereof, and the county clerk of such other county shall note
on the margin of the record of such mortgage the fact of such
payment, attested by his signature.
Laws 1965, c. 31, § 2.
§68-1910. Mortgage tax turned into school fund.
The county treasurer shall place to the credit of the common
school fund of the county, for distribution as all other common
school funds, all money collected under the provisions of this
article.
Laws 1965, c. 31, § 2.
§68-2001. Return by manufacturer - Amount of taxes - Powers of
county assessors - Tax in lieu of other taxes - Complaints as to tax.
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Every person, firm, association, or corporation engaged in the
manufacture of products from lint cotton, wool, synthetic fibers, or
any combination thereof, by carding, spinning, making twine, or
weaving into cloth, or other processes, or using any property
whatever in such enterprise, shall within thirty (30) days after the
expiration of the quarter annual period ending the last day of March,
June, September and December of each year, file with the County
Assessor of the county in which said property so engaged, including
all buildings housing such textile mill in which such cotton, wool or
synthetic fibers are manufactured, is located, a statement under
oath, on a form prescribed by the State Auditor and Inspector,
showing the location of the said textile mill within the county, the
kind of product manufactured by the said mill, the gross amount
thereof produced, the selling price for all such products sold, and
the actual cash value of the manufactured product on hand at the
place of production, and such other information pertaining thereto,
as the county assessor shall require, and shall at the same time pay
to the county treasurer of the county a tax equal to one-tenth of one
percent (1/10 of 1%) of the gross value of the manufactured product
of the said textile mill or mills within such county.
This act is intended to classify property engaged in the
manufacture of lint cotton, wool, or synthetic fibers in this State
for the purposes of taxation, and the county assessor of any county
in which any textile mill is located and operated shall have power to
require the operating officers or agents of the said textile mill
company or institution to furnish any information by him deemed to be
necessary for the purpose of correctly computing the amount of the
said tax and to examine the books, records and files of such person,
firm, corporation, or association and shall have the power to examine
witnesses, and if any witness shall fail or refuse to appear and
testify at the summons or requests of the said county assessor, the
said county assessor shall certify the facts and the name of the
witness so failing and refusing to appear and testify or to produce
any book, record or file to the district court of the county having
jurisdiction of the party, and said court shall thereupon issue a
summons to said party to appear and give such evidence and
produce such books, records and files as may be required and, upon
failing to do so, the offending party shall be punished as provided
by law in cases of contempt.
The county assessor shall have power to ascertain and determine
whether or not any return herein required is a true and correct
return of the gross products and of the value thereof of such textile
manufactory engaged in the manufacture of textiles in this state.
The payment of the taxes herein imposed shall be in full and in
lieu of all taxes by the state, counties, cities, towns, townships,
school districts and other municipalities upon any property rights
attached to or inherent in the property of the said textile
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manufactory, and upon any buildings, machinery, engines, spindles,
weaving machines, and upon any and all other machinery and appliances
and equipments used in and around such textile manufactory producing
any manufactured product from lint cotton, wool, or synthetic fibers
in the raw state in this state, and actually used in the operation of
such textile mill and upon any investment whatever in such property;
but the land exclusive of the buildings and such other property than
that herein enumerated, and any raw cotton, wool, or synthetic fibers
not purchased for and intended to be manufactured on the ad valorem
taxing date and thereafter manufactured in said textile mill or
mills, shall be assessed and taxed ad valorem as other property
within the taxing district in which such property was situated at the
time.
Any person, firm, or corporation who claims that he is
erroneously or excessively taxed under this act shall have a right to
make complaint before the board of county commissioners in the county
in which the textile mill is located, and the said board shall have a
right to hear and determine the said complaint as in other cases for
the equalization of taxes, and the said property so engaged and
devoted to the textile manufacture shall not be subject to ad valorem
tax or any other taxes than are herein provided for.
Laws 1927, c. 111, p. 173, § 1; Laws 1955, p. 390, § 1; Laws 1965, c.
215, § 1; Laws 1979, c. 30, § 116, emerg. eff. April 6, 1979.
§68-2002. Tax, when delinquent - How enforced - Tax warrant.
The tax provided for in the preceding section shall become
delinquent thirty (30) days after the time fixed for the filing of
each quarterly statement, and as to the tax on the land shall become
delinquent as other taxes on land shall become delinquent, and the
land taxation shall be enforced as other land taxes, and when any tax
on the gross production of the said textile mill shall become
delinquent, the county treasurer of the county shall issue the
warrant directed to the sheriff wherein the same or any part thereof
accrued for the collection of the said amount of the said tax,
interest and penalty, and the sheriff shall levy the said tax warrant
as in case of warrants and taxes upon personal property.
Laws 1927, c. 111, p. 175, § 2; Laws 1955, p. 391, § 2; Laws 1965, c.
215, § 1.
§68-2003. False oath to report - Penalty.
Any person who shall make any false oath to any report required
by the provisions of this Act, shall be deemed guilty of perjury.
Laws 1927, c. 111, p. 175, § 3; Laws 1965, c. 215, § 1.
§68-2004. Purposes of tax.
The gross production tax provided for by this act is hereby
levied and collected for the following specific purposes, to wit:
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First: The tax on the land shall be collected and distributed by
the county treasurer to the same funds as other land taxes in the
taxing district shall go and be distributed.
Second: The tax on the buildings, mill, machinery, appliances,
equipments and property used in the production of textile
manufactured products shall go to and be distributed by the county
treasurer to the various funds as follows:
One thirtieth (1/30) of the said tax to the State of Oklahoma for
the general revenue purposes.
Fifteen thirtieths (15/30) of the said tax to the school district
in which the mill is located for school purposes.
Seven thirtieths (7/30) of the said tax to the city or township
in which the said mill is located for city or township purposes, as
the case may be.
Two thirtieths (2/30) of the said tax to the sinking funds of the
county school district and city or township in which the said mill is
located to be divided in proportion to the respective levies made for
that year for the said sinking funds.
Five thirtieths (5/30) of the said tax to the county general
fund.
Said apportionment and distribution for the said funds shall be
made by the county treasurer of the said county.
Laws 1927, c. 111, p. 175, § 4; Laws 1955, p. 391, § 3; Laws 1965, c.
215, § 1.
§68-2005. Date of application of act.
This act shall be applicable to any and all properties of any and
all textile mills in this state on the first day of January, 1927,
and for all years thereafter, and the said properties shall be taxed
from that date forward only under the provisions of this act.
Laws 1927, c. 111, p. 175, § 5; Laws 1955, p. 391, § 4; Laws 1965, c.
215, § 1. der 6
§68-2006. Partial invalidity.
The invalidity of any Sections or Clauses in this Act shall not
in any manner affect the validity of the remaining portion or
portions thereof.
Laws 1927, c. 111, p. 175, § 6; Laws 1965, c. 215, § 1.
§68-2101. Definitions.
For the purpose of this article:
1. The term "motor vehicle" means and includes every automobile,
truck, truck-tractor, all-terrain vehicle, utility vehicle or any
motor bus or any self-propelled vehicle not operated or driven upon
fixed rails or tracks or in the air or on water;
2. The term "vehicle" means and includes every device in, upon,
or by which any person or property is, or may be, transported or
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drawn, excepting devices moved by human or animal power, when not
used upon fixed rails or tracks, or in the air or on water;
3. The term "low-speed electrical vehicle" means and includes
any four–wheeled electrical vehicle that is powered by an electric
motor that draws current from rechargeable storage batteries or other
sources of electrical current and whose top speed is greater than
twenty (20) miles per hour but not greater than twenty-five (25)
miles per hour and is manufactured in compliance with the National
Highway Traffic Safety Administration standards for low-speed
vehicles in 49 C.F.R. 571.500;
4. The term "automobile" means and includes every motor vehicle
constructed and used solely for the transportation of persons for
purposes other than for hire or compensation;
5. The term "motorcycle" means and includes every motor vehicle
designed to travel on not more than three wheels other than an all-
terrain vehicle;
6. The term "truck" means and includes every motor vehicle
constructed or used for the transportation of property not falling
within the definition of truck-tractor, trailer or semitrailer, as
herein defined;
7. The term "truck-tractor" means and includes every motor
vehicle of the truck type designed to draw or support the front end
of a semitrailer;
8. The term "trailer" means and includes any vehicle designed to
be drawn by a truck, tractor or a truck-tractor, but supported upon
its own wheels;
9. The term "semitrailer" means and includes any vehicle
designed to be attached to, and having its front end supported by a
truck, tractor, or truck-tractor;
10. The term "motor bus" means and includes every motor vehicle
constructed so as to carry persons, and which is used or rented to
carry persons for compensation;
11. The term "manufactured home" means a residential dwelling
built in accordance with the National Manufactured Housing
Construction and Safety Standards Act of 1974, 42 U.S.C., Section
5401 et seq., and rules promulgated pursuant thereto and the rules
promulgated by the Oklahoma Used Motor Vehicle and Parts Commission
pursuant to Section 582 of Title 47 of the Oklahoma Statutes.
Manufactured home shall not mean a park model recreational vehicle as
defined in Section 1102 of Title 47 of the Oklahoma Statutes;
12. The term "farm tractor" means and includes any vehicle of
tractor type owned and operated by the purchaser and used exclusively
for agricultural purposes;
13. The term "all-terrain vehicle" means and includes every
vehicle defined as an all-terrain vehicle in Section 1102 of Title 47
of the Oklahoma Statutes;
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14. The terms "legal ownership" and "legally owned" mean the
right to possession, whether acquired by purchase, barter, exchange,
assignment, gift, operation of law, or in any other manner;
15. The term "person" means and includes natural persons,
individuals, partnerships, firms, associations, limited liability
companies, corporations, estates, trustees, business trusts,
syndicates, this state, any county, city, municipality, school
district or other political subdivision of the state, or any
corporation or combination acting as a unit or any receiver appointed
by any state or federal court; and the use of the singular number
shall include the plural number;
16. The term "Tax Commission" means the Oklahoma Tax Commission;
17. The term "utility vehicle" means every vehicle defined as a
utility vehicle in Section 1102 of Title 47 of the Oklahoma Statutes;
and
18. The term "medium-speed electrical vehicle" means any self-
propelled, electrically powered four-wheeled motor vehicle, equipped
with a roll cage or crush-proof body design, whose speed attainable
in one (1) mile is more than thirty (30) miles per hour but not
greater than thirty-five (35) miles per hour.
Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from
§ 21-101 of Title 47 by Laws 1965, c. 215, § 3. Amended by Laws
1981, c. 118, § 27, eff. Oct. 1, 1981; Laws 1993, c. 366, § 44, eff.
Sept. 1, 1993; Laws 2000, c. 150, § 8, eff. July 1, 2000; Laws 2001,
c. 243, § 6, eff. Nov. 1, 2001; Laws 2005, c. 284, § 8, eff. July 1,
2005; Laws 2008, c. 98, § 11, eff. July 1, 2008; Laws 2008, c. 302, §
11, emerg. eff. June 2, 2008; Laws 2016, c. 57, § 2, eff. Nov. 1,
2016.
§68-2102. Purpose of article - Apportionment of revenue.
A. It is hereby declared to be the purpose of this article to
provide funds for general governmental functions of state government.
B. All revenue derived under this article shall be apportioned
and distributed by the Oklahoma Tax Commission as provided for in
Section 1104 of Title 47 of the Oklahoma Statutes, except as provided
in subsection A of Section 2103 of this title, and all revenue
derived from transfers of legal ownership of all-terrain vehicles or
motorcycles used exclusively off roads and highways which occur on or
after July 1, 2005, and transfers of utility vehicles used
exclusively off roads and highways which occur on or after July 1,
2008, shall be apportioned as provided for in Section 1353 of this
title.
Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from
§ 21-2102 of Title 47 by Laws 1965, c. 215, § 3. Amended by Laws
1975, c. 169, § 1, emerg. eff. May 21, 1975; Laws 1977, c. 103, § 63,
emerg. eff. May 30, 1977; Laws 1978, c. 209, § 28, eff. July 1, 1978;
Laws 1980, c. 116, § 4, emerg. eff. April 14, 1980; Laws 1981, c.
9)!&#!%!%%"'%)6! !2!(# 7!8-
210, § 4, operative July 1, 1982; Laws 1985, c. 179, § 89, operative
July 1, 1985; Laws 2005, c. 284, § 9, eff. July 1, 2005; Laws 2008,
c. 98, § 12, eff. July 1, 2008; Laws 2009, c. 443, § 5, eff. July 1,
2009.
§68-2103. Tax on transfer of legal ownership, use and first
registration of vehicles — Credit.
A. 1. Except as otherwise provided in Sections 2101 through
2108 of this title, there shall be levied an excise tax upon the
transfer of legal ownership of any vehicle registered in this state
and upon the use of any vehicle registered in this state and upon the
use of any vehicle registered for the first time in this state.
Except for persons that possess an agricultural exemption pursuant to
Section 1358.1 of this title, the excise tax shall be levied upon
transfers of legal ownership of all-terrain vehicles and motorcycles
used exclusively off roads and highways which occur on or after July
1, 2005, and upon transfers of legal ownership of utility vehicles
used exclusively off roads and highways which occur on or after July
1, 2008. The excise tax for new and used all-terrain vehicles,
utility vehicles and motorcycles used exclusively off roads and
highways shall be levied at four and one-half percent (4 1/2%) of the
actual sales price of each new and used all-terrain vehicle and
motorcycle used exclusively off roads and highways before any
discounts or credits are given for a trade-in. Provided, the minimum
excise tax assessment for such all-terrain vehicles, utility vehicles
and motorcycles used exclusively off roads and highways shall be Five
Dollars ($5.00). The excise tax for new vehicles shall be levied at
three and one-fourth percent (3 1/4%) of the value of each new
vehicle. The excise tax for used vehicles shall be as follows:
a. from October 1, 2000, until June 30, 2001, Twenty
Dollars ($20.00) on the first One Thousand Dollars
($1,000.00) or less of value of such vehicle, and three
and one-fourth percent (3 1/4%) of the remaining value
of such vehicle,
b. for the year beginning July 1, 2001, and ending June
30, 2002, Twenty Dollars ($20.00) on the first One
Thousand Two Hundred Fifty Dollars ($1,250.00) or less
of value of such vehicle, and three and one-fourth
percent (3 1/4%) of the remaining value of such
vehicle, and
c. for the year beginning July 1, 2002, and all subsequent
years, Twenty Dollars ($20.00) on the first One
Thousand Five Hundred Dollars ($1,500.00) or less of
value of such vehicle, and three and one-fourth percent
(3 1/4%) of the remaining value of such vehicle.
2. There shall be levied an excise tax of Ten Dollars ($10.00)
for any:
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a. truck or truck-tractor registered under the provisions
of subsection A of Section 1133 of Title 47 of the
Oklahoma Statutes, for a laden weight or combined laden
weight of fifty-five thousand (55,000) pounds or more,
b. trailer or semitrailer registered under subsection C of
Section 1133 of Title 47 of the Oklahoma Statutes,
which is primarily designed to transport cargo over the
highways of this state and generally recognized as
such, and
c. frac tank, as defined by Section 54 of Title 17 of the
Oklahoma Statutes, and registered under subsection C of
Section 1133 of Title 47 of the Oklahoma Statutes.
Except for frac tanks, the excise tax levied pursuant to this
paragraph shall not apply to special mobilized machinery, trailers,
or semitrailers manufactured, modified or remanufactured for the
purpose of providing services other than transporting cargo over the
highways of this state. The excise tax levied pursuant to this
paragraph shall also not apply to pickup trucks, vans, or sport
utility vehicles.
3. The tax levied pursuant to this section shall be due at the
time of the transfer of legal ownership or first registration in this
state of such vehicle; provided, the tax shall not be due at the time
of the issuance of a certificate of title for an all-terrain vehicle,
utility vehicle or motorcycle used exclusively off roads and highways
which is not required to be registered but which the owner chooses to
register pursuant to the provisions of subsection B of Section 1115.3
of Title 47 of the Oklahoma Statutes, and shall be collected by the
Oklahoma Tax Commission or Corporation Commission, as applicable, or
an appointed motor license agent, at the time of the issuance of a
certificate of title for any such vehicle. In the event an excise
tax is collected on the transfer of legal ownership or use of the
vehicle during any calendar year, then an additional excise tax must
be collected upon all subsequent transfers of legal ownership. In
computing the motor vehicle excise tax, the amount collected shall be
rounded to the nearest dollar. The excise tax levied by this section
shall be delinquent from and after the thirtieth day after the legal
ownership or possession of any vehicle is obtained. Any person
failing or refusing to pay the tax as herein provided on or before
date of delinquency shall pay in addition to the tax a penalty of One
Dollar ($1.00) per day for each day of delinquency, but such penalty
shall in no event exceed the amount of the tax. Of each dollar
penalty collected pursuant to this subsection:
a. twenty-five cents ($0.25) shall be apportioned as
provided in Section 1104 of this title;
b. twenty-five cents ($0.25) shall be retained by the
motor license agent; and
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c. fifty cents ($0.50) shall be deposited in the General
Revenue Fund for the fiscal year beginning on July 1,
2011, and for all subsequent fiscal years, shall be
deposited in the State Highway Construction and
Maintenance Fund.
B. The excise tax levied in subsection A of this section
assessed on all commercial vehicles registered pursuant to Section
1120 of Title 47 of the Oklahoma Statutes shall be in lieu of all
sales and use taxes levied pursuant to the Sales Tax Code or the Use
Tax Code. The transfer of legal ownership of any motor vehicle as
used in this section and the Sales Tax Code and the Use Tax Code
shall include the lease, lease purchase or lease finance agreement
involving any truck in excess of eight thousand (8,000) pounds
combined laden weight or any truck-tractor provided the vehicle is
registered in Oklahoma pursuant to Section 1120 of Title 47 of the
Oklahoma Statutes or any frac tank, trailer, semitrailer or open
commercial vehicle registered pursuant to Section 1133 of Title 47 of
the Oklahoma Statutes. The excise tax levied pursuant to this
section shall not be subsequently collected at the end of the lease
period if the lessee acquires complete legal title of the vehicle.
C. The provisions of this section shall not apply to transfers
made without consideration between:
1. Husband and wife;
2. Parent and child; or
3. An individual and an express trust which that individual or
the spouse, child or parent of that individual has a right to revoke.
D. 1. There shall be a credit allowed with respect to the
excise tax paid for a new vehicle which is a replacement for:
a. a new original vehicle which is stolen from the
purchaser/registrant within ninety (90) days of the
date of purchase of the original vehicle as certified
by a police report or other documentation as required
by the Tax Commission, or
b. a defective new original vehicle returned by the
purchaser/registrant to the seller within six (6)
months of the date of purchase of the defective new
original vehicle as certified by the manufacturer.
2. The credit allowed pursuant to paragraph 1 of this subsection
shall be in the amount of the excise tax which was paid for the new
original vehicle and shall be applied to the excise tax due on the
replacement vehicle. In no event shall the credit be refunded.
E. Despite any other definitions of the terms "new vehicle" and
"used vehicle", to the contrary, contained in any other law, the term
"new vehicle" as used in this section shall also include any vehicle
of the latest manufactured model which is owned or acquired by a
licensed used motor vehicle dealer which has not previously been
registered in this state and upon which the motor vehicle excise tax
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as set forth in this section has not been paid. However, upon the
sale or transfer by a licensed used motor vehicle dealer located in
this state of any such vehicle which is the latest manufactured
model, the vehicle shall be considered a used vehicle for purposes of
determining excise tax.
F. The provisions of this section shall not apply to state
government entities.
Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from
§ 21-103 of Title 47 by Laws 1965, c. 215, § 3. Amended by Laws
1979, c. 181, § 4, eff. and operative July 1, 1979; Laws 1982, c. 95,
§ 14, emerg. eff. April 6, 1982; Laws 1985, c. 179, § 90, operative
July 1, 1985; Laws 1986, c. 68, § 1, eff. July 1, 1986; Laws 1987, c.
6, § 13, emerg. eff. March 16, 1987; Laws 1988, c. 156, § 4, emerg.
eff. May 5, 1988; Laws 1988, c. 179, § 5, operative July 1, 1988;
Laws 1988, c. 240, § 6, emerg. eff. June 24, 1988; Laws 1991, c. 148,
§ 5, eff. Sept. 1, 1991; Laws 1997, c. 294, § 21, eff. July 1, 1997;
Laws 2000, c. 250, § 8, eff. Oct. 1, 2000 (State Question No. 691,
Legislative Referendum No. 319, adopted at election held Aug. 22,
2000); Laws 2004, c. 555, § 2, eff. Nov. 1, 2004; Laws 2005, c. 1, §
111, emerg. eff. March 15, 2005; Laws 2005, c. 284, § 10, eff. July
1, 2005; Laws 2006, c. 295, § 8, eff. July 1, 2006; Laws 2008, c. 98,
§ 13, eff. July 1, 2008; Laws 2008, c. 168, § 11, emerg. eff. May 12,
2008; Laws 2009, c. 443, § 6, eff. July 1, 2009; Laws 2010, c. 412, §
21, eff. July 1, 2010; Laws 2011, c. 376, § 4; Laws 2012, c. 316, §
4, eff. Nov. 1, 2012.
NOTE: Laws 1988, c. 204, § 10 repealed by Laws 1988, c. 240, § 9,
emerg. eff. June 24, 1988. Laws 2004, c. 522, § 27 repealed by Laws
2005, c. 1, § 112, emerg. eff. March 15, 2005.
§68-2103.1. Credit for replacement of vehicles destroyed in
tornadoes.
""##"
,4
1. A replacement for a vehicle which was destroyed by a tornado
in calendar year 2013 or any subsequent year for which a Presidential
Major Disaster Declaration was issued, and upon which excise tax had
been paid pursuant to the provisions of Section 2103 of this title on
or after January 1, 2012; or
2. A replacement for a vehicle which was destroyed by a tornado
in calendar year 2012 or calendar year 2013 for which a Presidential
Major Disaster Declaration was not issued, and upon which excise tax
had been paid pursuant to the provisions of Section 2103 of this
title on or after January 1, 2011.
The credit shall be in the amount of the excise tax which was
paid for the destroyed vehicle and shall be applied to the excise tax
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due on the replacement vehicle. In no event shall the credit
authorized by paragraphs 1 and 2 of this section be refunded.
Added by Laws 1999, c. 186, § 2, emerg. eff. May 21, 1999. Amended
by Laws 2002, c. 190, § 1, emerg. eff. May 6, 2002; Laws 2003, c.
374, § 4, emerg. eff. June 4, 2003; Laws 2013, c. 370, § 4, emerg.
eff. May 29, 2013; Laws 2014, c. 215, § 4, emerg. eff. May 2, 2014;
Laws 2015, c. 54, § 21, emerg. eff. April 10, 2015.
NOTE: Laws 2014, c. 329, § 4 repealed by Laws 2015, c. 54, § 22,
emerg. eff. April 10, 2015.
§68-2104. Value of vehicles.
A. The value of any motor vehicle, except a manufactured home,
for the purposes of the excise tax levied by Section 2103 of this
title, shall be determined as of the time the person applying for a
certificate of title thereto obtained either ownership or possession
of the vehicle, which shall be presumed to be the actual date of the
sale or other transfer of ownership, and assignment of the
certificate of title.
B. The value of any vehicle, for purposes of the excise tax
levied by Section 2103 of this title, shall be the actual sales price
of such a vehicle before any discounts or credits are given for a
trade-in. However, the value of the vehicle prior to the subtraction
of such discounts or credits for a trade-in shall be required to be
within twenty percent (20%) of the average retail price value of such
vehicle as listed in the automotive reference material prescribed by
the Oklahoma Tax Commission. The actual sales price of the vehicle,
which total shall be the basis of the motor vehicle excise tax, as
well as the number of tires on the vehicle and the tire rim
diameters, shall be entered on the bill of sale furnished by the
seller to the purchaser, or on such other form as may be prescribed
by the Tax Commission.
Upon receipt of the properly completed bill of sale or other form
as prescribed by the Tax Commission, and the payment of all
applicable taxes and fees, the Tax Commission or an appointed motor
license agent shall issue a vehicle certificate of title in
accordance with the provisions of the Oklahoma Vehicle License and
Registration Act.
Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from
§ 21-104 of this title by Laws 1965, c. 215, § 3. Amended by Laws
1980, c. 85, § 13, eff. Jan. 1, 1981; Laws 1981, c. 118, § 28, eff.
Oct. 1, 1981; Laws 1982, c. 95, § 15, emerg. eff. April 6, 1982; Laws
1985, c. 179, § 91, operative July 1, 1985; Laws 1992, c. 300, § 2,
eff. July 1, 1992; Laws 2000, c. 250, § 9, eff. Oct. 1, 2000, and
adopted by State Question No. 691, Legislative Referendum No. 319, at
election held Aug. 22, 2000; Laws 2007, c. 273, § 1, eff. Nov. 1,
2007.
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§68-2104.1. Repealed by Laws 2000, c. 250, § 10, eff. Oct. 1, 2000,
and adopted by State Question No. 691, Legislative Referendum No.
319, at election held Aug. 22, 2000.
§68-2104.3. Manufactured home - Payment of tax - Valuation -
Apportionment of tax collected.
A. Any person purchasing a new or used manufactured home or
owning a manufactured home which has not been registered in this
state pursuant to the provisions of Section 6 of this act shall pay
the excise tax levied by Section 2103 of Title 68 of the Oklahoma
Statutes at the time such person is applying for a certificate of
title for such manufactured home.
B. The value of any manufactured home for the purposes of the
excise tax levied by Section 2103 of Title 68 of the Oklahoma
Statutes shall be determined as of the date the person applying for a
certificate of title obtained either legal ownership or possession of
the manufactured home. Such date shall be presumed to be the actual
date of sale or other transfer of legal ownership and assignment of
the certificate of title. The value of a new manufactured home shall
be one-half (1/2) of the actual retail selling price of such a home
excluding Oklahoma state taxes. The value of a used manufactured
home shall be sixty-five percent (65%) of one-half (1/2) of the new
actual retail selling price of said home, excluding Oklahoma state
taxes.
C. The excise tax collected pursuant to subsection B of this
section shall be apportioned in accordance with the provisions of
Section 2102 of Title 68 of the Oklahoma Statutes.
Added by Laws 1984, c. 253, § 18, operative July 1, 1984.
§68-2105. See the following versions:
OS 68-2105v1 (SB 900, Laws 2016, c. 312, § 1, effective until
Nov. 1, 2020).
OS 68-2105v2 (HB 1198, Laws 2017, c. 229, § 11).
§68-2105v1. Exemptions.
THIS TEXT EFFECTIVE UNTIL NOV. 1, 2020. FOR TEXT EFFECTIVE BEGINNING
NOV. 1, 2020, SEE OS 68-2105v2.
An original or a transfer certificate of title shall be issued
without the payment of the excise tax levied by Section 2101 et seq.
of this title for:
1. Any vehicle owned by a nonresident person who operates
principally in some other state but who is in Oklahoma only
occasionally;
2. Any vehicle brought into this state by a person formerly
living in another state, who has owned and registered the vehicle in
such other state of residence at least sixty (60) days prior to the
time it is required to be registered in this state; provided,
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however, this paragraph shall not apply to businesses engaged in
renting cars without a driver;
3. Any vehicle registered by the State of Oklahoma, by any of
the political subdivisions thereof, or by a fire department organized
pursuant to Section 592 of Title 18 of the Oklahoma Statutes to be
used for the purposes of the fire department, or a vehicle which is
the subject of a lease or lease-purchase agreement executed between
the person seeking an original or transfer certificate of title for
the vehicle and a municipality, county, school district, or fire
protection district. The person seeking an original or transfer
certificate of title shall provide adequate proof that the vehicle is
subject to a lease or lease-purchase agreement with a municipality,
county, school district, or fire protection district at the time the
excise tax levied would otherwise be payable. The Oklahoma Tax
Commission shall have the authority to determine what constitutes
adequate proof as required by this section;
4. Any vehicle, the legal ownership of which is obtained by the
applicant for a certificate of title by inheritance;
5. Any used motor vehicle, travel trailer, or commercial trailer
which is owned and being offered for sale by a person licensed as a
dealer to sell the same, under the provisions of the Oklahoma Vehicle
License and Registration Act:
a. if such vehicle, travel trailer, or commercial trailer
has been registered in Oklahoma and the excise tax paid
thereon, or
b. when such vehicle, travel trailer, or commercial
trailer has been registered in some other state but is
not the latest manufactured model.
Provided, the provisions of this paragraph shall not be construed
as allowing an exemption to any person not licensed as a dealer of
used motor vehicles, travel trailers, or commercial trailers, or as
an automotive dismantler and parts recycler in this state;
6. Any vehicle which was purchased by a person licensed to sell
new or used motor vehicles in another state:
a. if such vehicle is not purchased for operation or
resale in this state, and
b. the state from which the dealer is licensed offers
reciprocal privileges to a dealer licensed in this
state, pursuant to a reciprocal agreement between the
duly authorized agent of the Tax Commission and the
licensing state;
7. Any vehicle, the ownership of which was obtained by the
lienholder or mortgagee under or by foreclosure of a lien or mortgage
in the manner provided by law or to the insurer under subrogated
rights arising by reason of loss under an insurance contract;
8. Any vehicle which is taxed on an ad valorem basis;
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9. Any vehicle or motor vehicle, the legal ownership of which is
obtained by transfers:
a. from one corporation to another corporation pursuant to
a reorganization. As used in this subsection the term
"reorganization" means:
(1) a statutory merger or consolidation, or
(2) the acquisition by a corporation of substantially
all of the properties of another corporation when
the consideration is solely all or a part of the
voting stock of the acquiring corporation, or of
its parent or subsidiary corporation,
b. in connection with the winding up, dissolution, or
liquidation of a corporation only when there is a
distribution in kind to the shareholders of the
property of such corporation,
c. to a corporation where the former owners of the vehicle
or motor vehicle transferred are, immediately after the
transfer, in control of the corporation, and the stock
or securities received by each is substantially in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer,
d. to a partnership if the former owners of the vehicle or
motor vehicle transferred are, immediately after the
transfer, members of such partnership and the interest
in the partnership received by each is substantially in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer,
e. from a partnership to the members thereof when made in
the dissolution of such partnership,
f. to a limited liability company if the former owners of
the vehicle or motor vehicle transferred are,
immediately after the transfer, members of the limited
liability company and the interest in the limited
liability company received by each is substantially in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer, or
g. from a limited liability company to the members thereof
when made in the dissolution of such partnership;
10. Any vehicle which is purchased by a person to be used by a
business engaged in renting motor vehicles without a driver,
provided:
a. the vehicle shall not be rented to the same person for
a period exceeding ninety (90) days,
b. any such vehicle exempted from the excise tax by these
provisions shall not be placed under any type of lease
agreement,
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c. on any such vehicle exempted from the excise tax by
this subsection that is reregistered in this state,
without a prior sale or transfer to the persons
specified in divisions (1) and (2) of this
subparagraph, at any time prior to the expiration of
twelve (12) months from the date of issuance of the
original title, the seller shall pay immediately the
amount of excise tax which would have been due had this
exemption not been granted plus a penalty of twenty
percent (20%). No such excise tax or penalty shall
become due and payable if the vehicle is sold or
transferred in a condition either physical or
mechanical which would render it eligible for a salvage
title pursuant to law or if the vehicle is sold and
transferred in this state at any time prior to the
expiration of twelve (12) months:
(1) to the manufacturer of the vehicle or its
controlled financing arm, or
(2) to a factory authorized franchised new motor
vehicle dealer which holds a franchise of the same
line-make of the vehicle being purchased, or
d. when this exemption is claimed, the Tax Commission
shall issue a special title which shall restrict the
transfer of the title only within this state prior to
the expiration of twelve (12) months unless:
(1) payment of the excise tax plus penalty as provided
in this section is made,
(2) the sale is made to a person specified in division
(1) or (2) of subparagraph c of this paragraph, or
(3) the vehicle is eligible for a salvage title.
For all other tax purposes vehicles herein exempted shall be
treated as though the excise tax has been paid;
11. Any vehicle of the latest manufactured model, registered
from a title in the name of the original manufacturer or assigned to
the original manufacturer and issued by any state and transferred to
a licensed, franchised Oklahoma motor vehicle dealer, as defined by
Section 1102 of Title 47 of the Oklahoma Statutes, which holds a
franchise of the same line-make as the vehicle being registered;
12. Any new motor vehicle, registered in the name of a
manufacturer or dealer of new motor vehicles, for which a license
plate has been issued pursuant to Section 1116.1 of Title 47 of the
Oklahoma Statutes, if such vehicle is authorized by the manufacturer
or dealer for personal use by an individual. The authorization for
such use shall not exceed four (4) months which shall not be renewed
or the exemption provided by this subsection shall not be applicable.
The exemption provided by this subsection shall not be applicable to
9)!&#!%!%%"'%)6! !2!(# 7!800
a transfer of ownership or registration subsequent to the first
registration of the vehicle by a manufacturer or dealer;
13. Any vehicle, travel trailer, or commercial trailer of the
latest manufacturer model purchased by a franchised Oklahoma dealer
licensed to sell the same which holds a franchise of the same line-
make as the vehicle, travel trailer, or commercial trailer being
registered;
14. Any vehicle which is the subject of a lease or lease-
purchase agreement and which the ownership of such vehicle is being
obtained by the lessee, if the vehicle excise tax was paid at the
time of the initial lease or lease-purchase agreement;
15. Any vehicle which:
a. is purchased by a private, nonprofit organization which
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), and which is primarily
funded by a fraternal or civic service organization
with at least one hundred local chapters or clubs, and
b. is designed and used to provide mobile health screening
services to the general public at no cost to the
recipient, and for which no reimbursement of any kind
is received from any health insurance provider, health
maintenance organization, or governmental program;
16. Any vehicle which is purchased by an individual who has been
honorably discharged from active service in any branch of the Armed
Forces of the United States or Oklahoma National Guard and who has
been certified by the United States Department of Veterans Affairs,
its successor, or the Armed Forces of the United States to be a
disabled veteran in receipt of compensation at the one-hundred-
percent rate for a permanent disability sustained through military
action or accident resulting from disease contracted while in such
active service. This exemption may not be claimed by an individual
for more than one vehicle in a consecutive three-year period, unless
the vehicle is a replacement for a vehicle which was destroyed and
declared by the insurer to be a total loss claim; or
17. Any vehicle on which ownership is transferred by a
repossessor directly back to the owner or owners from whom the
vehicle was repossessed; provided, ownership shall be assigned by the
repossessor within thirty (30) days of issuance of the repossession
title and shall be identical to that reflected in the vehicle title
record immediately prior to the repossession.
Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from
Title 47, § 21-105 by Laws 1965, c. 215, § 3. Amended by Laws 1980,
c. 85, § 14, eff. Jan. 1, 1981; Laws 1982, c. 180, § 1; Laws 1986, c.
172, § 6, eff. July 1, 1986; Laws 1986, c. 284, § 14, operative July
1, 1986; Laws 1988, c. 34, § 1, emerg. eff. March 17, 1988; Laws
1988, c. 156, § 5, emerg. eff. May 5, 1988; Laws 1988, c. 240, § 7,
9)!&#!%!%%"'%)6! !2!(# 7!80-
emerg. eff. June 24, 1988; Laws 1989, c. 290, § 6, emerg. eff. May
24, 1989; Laws 1991, c. 331, § 60, eff. Sept. 1, 1991; Laws 1993, c.
93, § 6, eff. July 1, 1993; Laws 1993, c. 366, § 45, eff. Sept. 1,
1993; Laws 1994, c. 2, § 24, emerg. eff. March 2, 1994; Laws 1995, c.
41, § 1, eff. Sept. 1, 1995; Laws 1996, c. 289, § 7, eff. July 1,
1996; Laws 1998, c. 179, § 3, emerg. eff. April 29, 1998; Laws 1999,
c. 149, § 5, eff. July 1, 1999; Laws 2001, c. 248, § 1, emerg. eff.
May 23, 2001; Laws 2005, c. 413, § 3, eff. July 1, 2005; Laws 2013,
c. 283, § 1, eff. Nov. 1, 2013; Laws 2016, c. 312, § 1, eff. Nov. 1,
2016.
NOTE: Laws 1993, c. 347, § 1 repealed by Laws 1994, c. 2, § 34,
emerg. eff. March 2, 1994.
§68-2105v2. Exemptions.
THIS TEXT EFFECTIVE BEGINNING NOV. 1, 2020. FOR TEXT EFFECTIVE UNTIL
NOV. 1, 2020, SEE OS 68-2105v1.
An original or a transfer certificate of title shall be issued
without the payment of the excise tax levied by Section 2101 et seq.
of this title for:
1. Any vehicle owned by a nonresident person who operates
principally in some other state but who is in Oklahoma only
occasionally;
2. Any vehicle brought into this state by a person formerly
living in another state, who has owned and registered the vehicle in
such other state of residence at least sixty (60) days prior to the
time it is required to be registered in this state; provided,
however, this paragraph shall not apply to businesses engaged in
renting cars without a driver;
3. Any vehicle registered by the State of Oklahoma, by any of
the political subdivisions thereof, or by a fire department organized
pursuant to Section 592 of Title 18 of the Oklahoma Statutes to be
used for the purposes of the fire department, or a vehicle which is
the subject of a lease or lease-purchase agreement executed between
the person seeking an original or transfer certificate of title for
the vehicle and a municipality, county, school district, or fire
protection district. The person seeking an original or transfer
certificate of title shall provide adequate proof that the vehicle is
subject to a lease or lease-purchase agreement with a municipality,
county, school district, or fire protection district at the time the
excise tax levied would otherwise be payable. The Oklahoma Tax
Commission shall have the authority to determine what constitutes
adequate proof as required by this section;
4. Any vehicle, the legal ownership of which is obtained by the
applicant for a certificate of title by inheritance;
5. Any used motor vehicle, travel trailer, or commercial trailer
which is owned and being offered for sale by a person licensed as a
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dealer to sell the same, under the provisions of the Oklahoma Vehicle
License and Registration Act:
a. if such vehicle, travel trailer, or commercial trailer
has been registered in Oklahoma and the excise tax paid
thereon, or
b. when such vehicle, travel trailer, or commercial
trailer has been registered in some other state but is
not the latest manufactured model.
Provided, the provisions of this paragraph shall not be construed
as allowing an exemption to any person not licensed as a dealer of
used motor vehicles, travel trailers, or commercial trailers, or as
an automotive dismantler and parts recycler in this state;
6. Any vehicle which was purchased by a person licensed to sell
new or used motor vehicles in another state:
a. if such vehicle is not purchased for operation or
resale in this state, and
b. the state from which the dealer is licensed offers
reciprocal privileges to a dealer licensed in this
state, pursuant to a reciprocal agreement between the
duly authorized agent of the Tax Commission and the
licensing state;
7. Any vehicle, the ownership of which was obtained by the
lienholder or mortgagee under or by foreclosure of a lien or mortgage
in the manner provided by law or to the insurer under subrogated
rights arising by reason of loss under an insurance contract;
8. Any vehicle which is taxed on an ad valorem basis;
9. Any vehicle or motor vehicle, the legal ownership of which is
obtained by transfers:
a. from one corporation to another corporation pursuant to
a reorganization. As used in this subsection the term
"reorganization" means:
(1) a statutory merger or consolidation, or
(2) the acquisition by a corporation of substantially
all of the properties of another corporation when
the consideration is solely all or a part of the
voting stock of the acquiring corporation, or of
its parent or subsidiary corporation,
b. in connection with the winding up, dissolution, or
liquidation of a corporation only when there is a
distribution in kind to the shareholders of the
property of such corporation,
c. to a corporation where the former owners of the vehicle
or motor vehicle transferred are, immediately after the
transfer, in control of the corporation, and the stock
or securities received by each is substantially in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer,
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d. to a partnership if the former owners of the vehicle or
motor vehicle transferred are, immediately after the
transfer, members of such partnership and the interest
in the partnership received by each is substantially in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer,
e. from a partnership to the members thereof when made in
the dissolution of such partnership,
f. to a limited liability company if the former owners of
the vehicle or motor vehicle transferred are,
immediately after the transfer, members of the limited
liability company and the interest in the limited
liability company received by each is substantially in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer, or
g. from a limited liability company to the members thereof
when made in the dissolution of such partnership;
10. Any vehicle which is purchased by a person to be used by a
business engaged in renting motor vehicles without a driver,
provided:
a. the vehicle shall not be rented to the same person for
a period exceeding ninety (90) days,
b. any such vehicle exempted from the excise tax by these
provisions shall not be placed under any type of lease
agreement,
c. on any such vehicle exempted from the excise tax by
this subsection that is reregistered in this state,
without a prior sale or transfer to the persons
specified in divisions (1) and (2) of this
subparagraph, at any time prior to the expiration of
twelve (12) months from the date of issuance of the
original title, the seller shall pay immediately the
amount of excise tax which would have been due had this
exemption not been granted plus a penalty of twenty
percent (20%). No such excise tax or penalty shall
become due and payable if the vehicle is sold or
transferred in a condition either physical or
mechanical which would render it eligible for a salvage
title pursuant to law or if the vehicle is sold and
transferred in this state at any time prior to the
expiration of twelve (12) months:
(1) to the manufacturer of the vehicle or its
controlled financing arm, or
(2) to a factory authorized franchised new motor
vehicle dealer which holds a franchise of the same
line-make of the vehicle being purchased, or
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d. when this exemption is claimed, the Tax Commission
shall issue a special title which shall restrict the
transfer of the title only within this state prior to
the expiration of twelve (12) months unless:
(1) payment of the excise tax plus penalty as provided
in this section is made,
(2) the sale is made to a person specified in division
(1) or (2) of subparagraph c of this paragraph, or
(3) the vehicle is eligible for a salvage title.
For all other tax purposes vehicles herein exempted shall be
treated as though the excise tax has been paid;
11. Any vehicle of the latest manufactured model, registered
from a title in the name of the original manufacturer or assigned to
the original manufacturer and issued by any state and transferred to
a licensed, franchised Oklahoma motor vehicle dealer, as defined by
Section 1102 of Title 47 of the Oklahoma Statutes, which holds a
franchise of the same line-make as the vehicle being registered;
12. Any new motor vehicle, registered in the name of a
manufacturer or dealer of new motor vehicles, for which a license
plate has been issued pursuant to Section 1116.1 of Title 47 of the
Oklahoma Statutes, if such vehicle is authorized by the manufacturer
or dealer for personal use by an individual. The authorization for
such use shall not exceed four (4) months which shall not be renewed
or the exemption provided by this subsection shall not be applicable.
The exemption provided by this subsection shall not be applicable to
a transfer of ownership or registration subsequent to the first
registration of the vehicle by a manufacturer or dealer;
13. Any vehicle, travel trailer, or commercial trailer of the
latest manufacturer model purchased by a franchised Oklahoma dealer
licensed to sell the same which holds a franchise of the same line-
make as the vehicle, travel trailer, or commercial trailer being
registered;
14. Any vehicle which is the subject of a lease or lease-
purchase agreement and which the ownership of such vehicle is being
obtained by the lessee, if the vehicle excise tax was paid at the
time of the initial lease or lease-purchase agreement;
15. Any vehicle which:
a. is purchased by a private, nonprofit organization which
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), and which is primarily
funded by a fraternal or civic service organization
with at least one hundred local chapters or clubs, and
b. is designed and used to provide mobile health screening
services to the general public at no cost to the
recipient, and for which no reimbursement of any kind
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is received from any health insurance provider, health
maintenance organization, or governmental program;
16. Any vehicle which is purchased by an individual who has been
honorably discharged from active service in any branch of the Armed
Forces of the United States or Oklahoma National Guard and who has
been certified by the United States Department of Veterans Affairs,
its successor, or the Armed Forces of the United States to be a
disabled veteran in receipt of compensation at the one-hundred-
percent rate for a permanent disability sustained through military
action or accident resulting from disease contracted while in such
active service and registered with the veterans registry created by
the Oklahoma Department of Veterans Affairs; provided, that if the
veteran has previously received exemption pursuant to this paragraph,
no registration with the veterans registry shall be required. This
exemption may not be claimed by an individual for more than one
vehicle in a consecutive three-year period, unless the vehicle is a
replacement for a vehicle which was destroyed and declared by the
insurer to be a total loss claim. The Tax Commission shall
promulgate any rules necessary to implement the provisions of this
section; or
17. Any vehicle on which ownership is transferred by a
repossessor directly back to the owner or owners from whom the
vehicle was repossessed; provided, ownership shall be assigned by the
repossessor within thirty (30) days of issuance of the repossession
title and shall be identical to that reflected in the vehicle title
record immediately prior to the repossession.
Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from
§ 21-105 of Title 47 by Laws 1965, c. 215, § 3. Amended by Laws
1980, c. 85, § 14, eff. Jan. 1, 1981; Laws 1982, c. 180, § 1; Laws
1986, c. 172, § 6, eff. July 1, 1986; Laws 1986, c. 284, § 14,
operative July 1, 1986; Laws 1988, c. 34, § 1, emerg. eff. March 17,
1988; Laws 1988, c. 156, § 5, emerg. eff. May 5, 1988; Laws 1988, c.
240, § 7, emerg. eff. June 24, 1988; Laws 1989, c. 290, § 6, emerg.
eff. May 24, 1989; Laws 1991, c. 331, § 60, eff. Sept. 1, 1991; Laws
1993, c. 93, § 6, eff. July 1, 1993; Laws 1993, c. 366, § 45, eff.
Sept. 1, 1993; Laws 1994, c. 2, § 24, emerg. eff. March 2, 1994; Laws
1995, c. 41, § 1, eff. Sept. 1, 1995; Laws 1996, c. 289, § 7, eff.
July 1, 1996; Laws 1998, c. 179, § 3, emerg. eff. April 29, 1998;
Laws 1999, c. 149, § 5, eff. July 1, 1999; Laws 2001, c. 248, § 1,
emerg. eff. May 23, 2001; Laws 2005, c. 413, § 3, eff. July 1, 2005;
Laws 2013, c. 283, § 1, eff. Nov. 1, 2013; Laws 2016, c. 312, § 1,
eff. Nov. 1, 2016; Laws 2017, c. 229, § 11, eff. Nov. 1, 2020.
NOTE: Laws 1993, c. 347, § 1 repealed by Laws 1994, c. 2, § 34,
emerg. eff. March 2, 1994.
§68-2106. Excise tax in lieu of other taxes - Exemptions.
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(a) The excise tax levied by this article is in lieu of all
other taxes on the transfer or the first registration in this state
of vehicles, including the optional equipment and accessories
attached thereto at the time of sale and sold as a part thereof,
except:
(1) Annual vehicle registration and license fees;
(2) The fee of One Dollar ($1.00) for the issuance of a
certificate of title;
(3) Any fee charged under the jurisdiction of the Corporation
Commission; and
(4) One and twenty-five-hundredths percent (1.25%) of the gross
receipts upon which the tax is levied by Section 1354 of this title.
Provided, the sale of motor vehicles shall not be subject to any
sales and use taxes levied by cities, counties or other jurisdictions
of the state.
(b) This section shall not relieve any new or used motor vehicle
dealer or any other vendor of vehicles from liability for the sales
tax on all sales of accessories or optional equipment, or parts,
which are not attached to, and sold as a part thereof and included in
the sale of such vehicles.
Added by Laws 1963, c. 361, § 2, eff. July 1, 1963. Renumbered from
§ 21-106 of Title 47 by Laws 1965, c. 215, § 3. Amended by Laws
1980, c. 85, § 15, eff. Jan. 1, 1981; Laws 2017, c. 356, § 2, eff.
July 1, 2017.
§68-2108. Nonpayment of tax.
(a) In any case where the owner of a vehicle subject to the tax
levied by this article fails or refuses to pay the same, after proper
demand therefor by an officer or agent of the Tax Commission, such
officer or agent shall immediately report such failure to the Tax
Commission, and shall at the same time in case of failure to pay,
seize and hold the said vehicle, as now provided by law in case of
failure to pay the annual vehicle license or registration fee.
(b) The Tax Commission shall, upon demand of the owner of the
vehicle, accord a hearing to said owner as provided by law and enter
its findings and order accordingly. If it is determined by the Tax
Commission that said tax is due and payable, then it shall issue its
warrant, directly to the sheriff of the county, ordering and
directing the sale of such vehicle according to the same procedure
now provided by law for the sale of vehicles for failure to pay the
annual license fee. Such seizure and sale may at the time include
both the registration fee due and the excise tax levied by this
article, together with all costs of advertisement and sale. The sale
shall be conducted in all manner as provided by law for the sale of
personal property under execution.
Laws 1963, c. 361, § 2; Laws 1965, c. 215, § 3.
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§68-2110. Rental tax on motor vehicle rentals.
A. There is hereby levied a rental tax of six percent (6%) on
the gross receipts of all motor vehicle rental agreements as provided
in this section. This tax shall be levied on any rental agreement of
ninety (90) days or less duration on any motor vehicle that is rented
to a person by a business engaged in renting motor vehicles without a
driver in Oklahoma, irrespective of the state in which the vehicle is
registered. This rental tax shall not apply to the following:
1. Any lease agreements;
2. Any truck or truck-tractor registered pursuant to the
provisions of Section 1120 or Section 1133 of Title 47 of the
Oklahoma Statutes having a laden weight or a combined laden weight of
eight thousand (8,000) pounds or more; or
3. Any trailer or semitrailer registered pursuant to the
provisions of Section 1133 of Title 47 of the Oklahoma Statutes. For
purposes of this section, "vehicle" and "person" shall have the same
meanings as defined in Section 2101 of this title.
B. The rental tax specified in subsection A of this section
shall be apportioned in the manner as provided in Section 2102 of
this title.
C. A deduction from gross receipts for bad debts shall be
allowed for the rental tax specified in subsection A of this section.
For purposes of this section, “bad debts” shall have the same meaning
as defined in Section 1366 of this title.
D. The tax hereby levied shall be collected at the time of the
payment of the rental agreement and shall be due and payable to the
Oklahoma Tax Commission by the business engaged in renting these
vehicles on the twentieth day of each month following the month in
which payments for rental agreements subject to tax are made. The
Tax Commission shall implement such rules and regulations and devise
such forms as it deems necessary for the orderly collection of this
tax and the excise tax and penalty provided for in paragraph 9 of
Section 2105 of this title.
E. The provisions of this section shall not apply to state
government entities.
Added by Laws 1982, c. 180, § 2. Amended by Laws 1985, c. 179, § 92,
operative July 1, 1985; Laws 1989, c. 249, § 28, eff. July 1, 1989;
Laws 1991, c. 331, § 62, eff. Sept. 1, 1991; Laws 1992, c. 138, § 1,
emerg. eff. April 30, 1992; Laws 2005, c. 479, § 17, eff. July 1,
2005; Laws 2008, c. 278, § 3, eff. July 1, 2009; Laws 2012, c. 316, §
5, eff. Nov. 1, 2012.
§68-2201. Definitions.
As used in this act the following terms shall be construed as
follows:
(a) "Gross revenue" shall mean and include all earnings or
revenue derived from the use or operation of freight cars, as
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hereinafter defined, upon or over the lines of any railroad company,
as hereinafter defined.
(b) "Gross revenue in this state" shall mean and include (a) all
gross revenue on intrastate business and (b) a portion of the gross
revenue on all interstate business passing through or into or out of
the state, based, in each instance, on the proportion of mileage over
which such business is done within this state.
(c) "Freight cars" shall mean and include all stockcars,
furniture cars, refrigerator cars, tank cars, or any other kind of
cars used to transport any commodity over the lines of any railroad
company in this state, as hereinafter defined. All such freight cars
are hereby declared to have, and are hereby given a situs for
taxation purposes in this state. This act does not include (1) cars
owned by an express company, or (2) cars owned by a sleeping-car
company, such as the Pullman Company, or (3) cars owned by a railroad
company.
(d) "Company" shall mean and include all persons, firms,
associations and corporations.
(e) "Freight line company" shall mean and include all companies
engaged in the business of operating freight cars or engaged in the
business of furnishing, renting or leasing freight cars for the
transportation of freight (whether such cars be owned by such company
or by any other person or company) over any line of railroad, in
whole or in part, within this state, such line or lines not being
owned, rented, leased or operated by such company.
(f) "Equipment company" shall mean and include every company
engaged in the business of furnishing, renting or leasing freight
cars to be used in the operation of any line of railroad wholly or
partially within this state, such line or lines not being owned,
leased or operated by such company.
(g) "Mercantile company" shall mean and include every company
whose principal business is other than that of a freight line company
or equipment company, as hereinbefore defined, but which owns,
operates, leases, rents, or otherwise uses any freight cars in the
operation of its business.
(h) "Railroad company" shall mean and include every steam
railroad, street railway, or interurban railway company operating or
doing business in this state as a common carrier.
Laws 1939, p. 416, § 1; Laws 1965, c. 215, § 1.
§68-2202. Classification of freight cars - Percentage of gross
revenue - In lieu of ad valorem tax - Application to public service
and private corporations.
All freight cars owned, operated, rented, leased, or used by any
freight line company, equipment company, or mercantile company which
are moved over, or used in the operation of, the line of any railroad
company, as hereinbefore defined, wholly or partially within this
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state, are hereby classified for the purpose of taxation; and a tax
equivalent to four percent (4%) of the gross revenue in this state,
is hereby levied on such freight cars; and such tax shall be in lieu
of ad valorem taxes upon such freight cars.
Nothing in this act shall be construed to exempt from ad valorem
taxation any real or personal property other than freight cars, or
any freight cars which are not operated over the line of any common
carrier railroad, as hereinbefore defined, upon which the gross
revenue tax herein levied does not apply. It is hereby expressly
provided that the provisions of this act shall apply to both public
service and private corporations.
Added by Laws 1939, p. 417, § 2. Amended by Laws 1965, c. 215, § 1.
§68-2203. Tax not to exceed what ad valorem tax would have been -
Review by Oklahoma Tax Commission.
It is hereby declared to be the intention of the Legislature that
the tax herein imposed be not greater than the amount of tax such
freight line companies, equipment companies, and mercantile companies
would pay if their cars were taxed on an ad valorem basis, including
any value inuring to such cars by reason of being a part of a going
concern.
The Oklahoma Tax Commission upon the complaint of any person who
claims he is taxed too great a rate hereunder, shall take testimony
to determine whether the taxes herein imposed are greater than the
general ad valorem tax for all purposes would be on such freight
cars, if taxed on an ad valorem basis. The Commission shall have the
power and it shall be its duty to lower the rate herein imposed to
conform to the facts disclosed at said hearing.
In order to determine the amount of tax such companies would pay,
said Commission may value all cars of any company as a unit and
allocate to Oklahoma that proportion of the total value which the
Oklahoma car mileage bears to the total car mileage of the cars of
any such company during the twelve-month period ending on December 31
of any year, and may then apply to such value so ascertained the
average ad valorem tax rate applied to property throughout the state
for that calendar year.
Added by Laws 1939, p. 417, § 3, emerg. eff. April 15, 1939.
Renumbered from § 805b by Laws 1965, c. 215, § 1. Amended by Laws
1994, c. 278, § 19, eff. Sept. 1, 1994.
§68-2204. Disposition of taxes collected.
All revenues collected pursuant to the provisions of Section 2201
et seq. of this title shall be paid by the Tax Commission to the
State Treasurer and placed to the credit of the Oklahoma Department
of Transportation in the Railroad Maintenance Revolving Fund for the
implementation of the Railroad Revitalization Act or for matching of
available federal funds for at-grade railroad crossing protection
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projects. Such crossing projects must be authorized by the
Transportation Commission.
Added by Laws 1939, p. 417, § 4, emerg. eff. April 15, 1939.
Renumbered from § 805c by Laws 1965, c. 215, § 1. Amended by Laws
1978, c. 164, § 8, emerg. eff. April 10, 1978; Laws 1992, c. 17, § 1,
emerg. eff. March 30, 1992; Laws 1994, c. 278, § 20, eff. Sept. 1,
1994.
§68-2205. Statements to be filed with Oklahoma Tax Commission.
On or before April 1 of each year, every freight line company,
equipment company, and mercantile company owning, operating, renting
or leasing any freight car or cars which are moved over or used in
the operation of the line of any railroad company wholly or partially
within this state, shall prepare and file with the Oklahoma Tax
Commission a true and accurate statement showing the gross earnings
in this state on each freight car owned, operated, leased or rented
by such company within the twelve-month period ending December 31
next preceding the date of the report; provided:
1. For the period from July 1, 1993, through June 30, 1994, such
statement shall be due on or before October 1, 1994; and
2. For the period from July 1, 1994, through December 31, 1994,
such statement shall be due on or before April 1, 1995.
Such statements shall be subscribed and sworn to by the
president, secretary or general accounting officer of the company,
and shall be made on forms prescribed and furnished by the Tax
Commission, and shall contain such other information as the
Commission shall deem necessary to enable it to correctly compute the
taxes due upon all such freight cars.
Added by Laws 1939, p. 418, § 5, emerg. eff. April 15, 1939.
Renumbered from § 805d by Laws 1965, c. 215, § 1. Amended by Laws
1994, c. 278, § 21, eff. Sept. 1, 1994.
§68-2206. Railroads renting or leasing cars from taxpayers to
withhold amount of tax - Statements by such railroads - Payment -
Liability of taxpayers.
Every railroad company using, renting or leasing the freight cars
of any freight line company, equipment company, or mercantile company
shall, upon making payment to such company for the use, rental, or
lease of such cars, withhold from such payment four percent (4%) of
the amount constituting the gross revenue in this state from such
source of each and every freight car so used, rented or leased.
On or before April 1 of each year, such railroad company shall
prepare and file with the Tax Commission a statement under oath
showing the amount of such payment for the next preceding twelve-
month period ending December 31, and of the amount so withheld by it;
provided:
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1. For the period from July 1, 1993, through June 30, 1994, such
statement shall be due on or before October 1, 1994; and
2. For the period from July 1, 1994, through December 31, 1994,
such statement shall be due on or before April 1, 1995.
The statement shall be on forms prescribed and furnished by the
Tax Commission, and shall contain such information as the Tax
Commission may deem necessary.
Such statements shall be accompanied by remittance in full of all
taxes withheld by the railroad company from freight line companies,
equipment companies and mercantile companies during the next
preceding twelve-month period ending December 31 or the period
specified in paragraphs 1 and 2 of this section. Each railroad
company shall be liable for the withholding and payment on or before
April 1 of each year, of four percent (4%) of the gross revenue of
each freight line company, equipment company and mercantile company,
to the extent that such gross earnings were derived from payments or
amounts due from such railroad company.
Each freight line company, equipment company and mercantile
company shall be liable for the payment of four percent (4%) of all
gross revenue in this state over and above payments and amounts due
from railroads, and shall be liable for the payment of any additional
taxes which the Commission may find due under its authority to raise
or lower the rate to conform to the taxes which would be payable if
the cars were taxed on an ad valorem basis.
Added by Laws 1939, p. 418, § 6, emerg. eff. April 15, 1939.
Renumbered from § 805e by Laws 1965, c. 215, § 1. Amended by Laws
1994, c. 278, § 22, eff. Sept. 1, 1994.
§68-2207. Examination of statements - Determination of tax - Monies
paid by railroads to be segregated - Protests.
A. As soon as practicable after the date specified in Sections
2205 and 2206 of this title, the Tax Commission shall examine the
statements required by Sections 2205 and 2206 of this title, and
shall determine:
1. The amount of money which should have been withheld and
remitted by each railroad company; and
2. The total amount of taxes due from each freight line company,
equipment company and mercantile company, including the amounts
remitted by railroad companies, and the amount of tax, if any, due
from each such company in addition to amounts remitted by railroad
companies.
B. The Commission shall thereupon make demand of each railroad
for any additional amounts required to be remitted by railroad
companies, and shall notify each freight line company, equipment
company and mercantile company of:
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1. The total amount of taxes due from each such company for the
next preceding twelve-month period ending December 31 or the period
specified in Sections 2205 and 2206 of this title;
2. The amount of money remitted by the various railroad
companies for the account of such company; and
3. The amount of additional taxes, if any, due to be paid by
such company, or the amount, if any, due to be refunded.
C. All monies paid to the Commission by railroads for the
account of freight line companies, equipment companies and mercantile
companies shall be segregated by the Commission and held in its
depository account with the State Treasurer until the companies for
whose account such monies are paid shall have had an opportunity to
file protest as provided by Section 221 of this title, and if such
protest is filed an opportunity to notify the Commission that the tax
is paid under protest and the taxpayer intends to file suit for
recovery, as provided by Section 226 of this title.
D. In any case where protest is not filed within thirty (30)
days from the mailing of the notices herein required, the monies paid
by railroad companies for the account of others shall be released and
apportioned to the proper fund.
Added by Laws 1939, p. 419, § 7, emerg. eff. April 15, 1939.
Renumbered from § 805f by Laws 1965, c. 215, § 1. Amended by Laws
1994, c. 278, § 23, eff. Sept. 1, 1994.
§68-2208. Refusal of railroad to comply with act, liability -
Taxpayer estopped to question Commission's determination, when.
If any railroad company shall fail or refuse to make any report
required by this act, or shall fail or refuse to withhold and pay the
tax due from any such company within the time hereinbefore provided,
it shall be liable for the full amount of such tax, penalty and costs
of collection.
If any freight line company, equipment company or mercantile
company as hereinbefore defined, shall refuse or neglect to make any
reports required by this act, or shall refuse or neglect to permit an
examination of its books, records, accounts and papers upon demand of
the Tax Commission, or shall refuse or neglect to appear before the
said Commission in obedience to its citation or summons; it shall be
estopped to question or impeach the action or determination of the
said Commission or the validity of the tax imposed hereunder.
Laws 1939, p. 419, § 8; Laws 1965, c. 215, § 1.
§68-2336. Renumbered as § 2385.7 of this title by Laws 1971, c. 137,
§ 32, emerg. eff. May 11, 1971.
§68-2338. Renumbered as § 2385.9 of this title by Laws 1971, c. 137,
§ 32, emerg. eff. May 11, 1971.
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§68-2351. Short title and effective date.
This article may be cited as the "Oklahoma Income Tax Act" and
shall be applicable to all years commencing after December 31, 1970.
Added by Laws 1971, c. 137, § 1, emerg. eff. May 11, 1971.
§68-2352. Purpose of article - Distribution of revenues.
It is hereby declared to be the purpose of Section 2351 et seq.
of this title to provide revenue for general governmental functions
of state government; and, for that purpose and to that end, it is
expressly declared that the revenue derived herefrom and penalties
and interest thereon, subject to the apportionment requirements for
the Rebuilding Oklahoma Access and Driver Safety Fund, the Oklahoma
Tourism and Passenger Rail Revolving Fund and the Public Transit
Revolving Fund to be derived from income tax revenue that would
otherwise be apportioned to the General Revenue Fund as provided by
Section 1521 of Title 69 of the Oklahoma Statutes, subject to the
apportionment requirements for the Oklahoma Tax Commission and Office
of Management and Enterprise Services Joint Computer Enhancement Fund
provided by Section 265 of this title, and subject to the
apportionment requirements for the Oklahoma State Capitol Building
Repair and Restoration Fund provided by Section 19 of Title 73 of the
Oklahoma Statutes, shall be distributed as follows:
1. For the fiscal year beginning July 1, 2002, the first Five
Million Eight Hundred Thousand Dollars ($5,800,000.00) of revenue
derived pursuant to the provisions of subsections A, B and E of
Section 2355 of this title shall be apportioned to the Education
Reform Revolving Fund. The remainder of such revenue for the fiscal
year beginning July 1, 2002, and all such revenue for each fiscal
year thereafter shall be apportioned monthly as follows:
a. (1) the following amounts shall be paid to the State
Treasurer to be placed to the credit of the
General Revenue Fund of the state for such fiscal
year for the support of the state government to be
paid out only pursuant to appropriation by the
Legislature:
Fiscal Year Amount
FY 2003 and FY 2004 87.12%
FY 2005 86.91%
FY 2006 86.66%
FY 2007 86.16%
FY 2008 and each fiscal
year thereafter 85.66%
(2) in the event that additional monies are necessary
pursuant to paragraph 3 of this section, such
additional monies shall be deducted in the
proportion determined by the State Board of
Equalization pursuant to paragraph 3 of Section
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2355.1B of this title from the monies apportioned
to the General Revenue Fund,
b. for FY 2003 and each fiscal year thereafter, eight and
thirty-four one-hundredths percent (8.34%) shall be
paid to the State Treasurer to be placed to the credit
of the Education Reform Revolving Fund,
c. the following amounts shall be paid to the State
Treasurer to be placed to the credit of the Teachers'
Retirement System Dedicated Revenue Revolving Fund:
Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
FY 2006 4.0%
FY 2007 4.5%
FY 2008 and each fiscal
year thereafter 5.0%
d. for FY 2003 and each fiscal year thereafter, one
percent (1%) shall be placed to the credit of the Ad
Valorem Reimbursement Fund;
2. Beginning July 1, 2003, for any period of time as certified
by the Oklahoma Development Finance Authority and the Oklahoma
Department of Commerce to be necessary for the repayment of
obligations issued by the Oklahoma Development Finance Authority
pursuant to Section 3654 of this title if the other sources of
revenue paid to or apportioned to the Quality Jobs Program Incentive
Leverage Fund are not adequate, including the proceeds from payment
pursuant to the guaranty required by subsection M of Section 3654 of
this title, an amount certified by the Oklahoma Development Finance
Authority to the Oklahoma Tax Commission shall be apportioned to the
Quality Jobs Program Incentive Leverage Fund before any other
apportionments are made as otherwise authorized by this paragraph.
The Oklahoma Development Finance Authority shall certify to the
Oklahoma Tax Commission the time as of which the revenue authorized
for apportionment pursuant to this paragraph is no longer required.
After the certification, the revenue derived from the income tax
shall be apportioned in the manner otherwise provided by this
section. Except as otherwise provided by this paragraph, for the
fiscal year beginning July 1, 2002, the first Forty-One Million One
Hundred Ninety Thousand Eight Hundred Dollars ($41,190,800.00) of
revenue derived pursuant to the provisions of subsections D and E of
Section 2355 of this title shall be apportioned to the Education
Reform Revolving Fund. The remainder of such revenue for the fiscal
year beginning July 1, 2002, and all such revenue for each fiscal
year thereafter, subject to the apportionment requirements for the
Oklahoma Tax Commission and Office of Management and Enterprise
Services Joint Computer Enhancement Fund provided by Section 265 of
this title, shall be apportioned monthly as follows:
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a. the following amounts shall be paid to the State
Treasurer to be placed to the credit of the General
Revenue Fund of the state for such fiscal year for the
support of the state government to be paid out only
pursuant to appropriation by the Legislature:
Fiscal Year Amount
FY 2003 and FY 2004 78.96%
FY 2005 78.75%
FY 2006 78.50%
FY 2007 78.0%
(1) FY 2018 and each fiscal
year thereafter until the
apportionment to the
General Revenue Fund equals
the moving five-year
average amount for
corporate income tax as
prescribed by paragraph 4
of this section 77.50%
(2) there shall be apportioned from the tax
levy imposed on corporate income tax to
the Revenue Stabilization Fund created by
Section 1 of this act, or to the
Constitutional Reserve Fund, as provided
by Section 1 of this act, the amount of
revenue, if any, which exceeds the moving
five-year average amount as defined
pursuant to paragraph 4 of this section,
b. for FY 2003 and each fiscal year thereafter, sixteen
and five-tenths percent (16.5%) shall be paid to the
State Treasurer to be placed to the credit of the
Education Reform Revolving Fund of the State Department
of Education,
c. the following amounts shall be paid to the State
Treasurer to be placed to the credit of the Teachers'
Retirement System Dedicated Revenue Revolving Fund:
Fiscal Year Amount
FY 2003 and FY 2004 3.54%
FY 2005 3.75%
FY 2006 4.0%
FY 2007 4.5%
FY 2008 and each fiscal
year thereafter 5.0%
d. for FY 2003 and each fiscal year thereafter, one
percent (1%) shall be placed to the credit of the Ad
Valorem Reimbursement Fund;
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3. During the first fiscal year after the State Board of
Equalization has made a determination as provided in Section 2355.1B
of this title, regarding a baseline amount of revenue apportioned
pursuant to subparagraph c of paragraph 1 of this section, and for
each fiscal year thereafter, in no event shall monies apportioned
pursuant to subparagraph c of paragraph 1 of this section, paragraph
3 of Section 1353 of this title and paragraph 3 of Section 1403 of
this title be less than such baseline amount; and
4. "Moving five-year average for corporate income tax" means,
for purposes of the apportionments prescribed by this section, the
amount of income tax on corporations, as determined by the State
Board of Equalization in the manner prescribed by Section 2 of this
act.
Added by Laws 1971, c. 137, § 2, emerg. eff. May 11, 1971. Amended
by Laws 1975, c. 131, § 1, emerg. eff. May 13, 1975; Laws 1976, c.
26, § 1, emerg. eff. March 15, 1976; Laws 1976, c. 232, § 9, emerg.
eff. June 15, 1976; Laws 1978, c. 193, § 1, emerg. eff. April 14,
1978; Laws 1979, c. 195, § 1, emerg. eff. May 24, 1979; Laws 1980, c.
252, § 1, emerg. eff. May 16, 1980; Laws 1981, c. 210, § 5, emerg.
eff. May 29, 1981; Laws 1983, c. 183, § 5, emerg. eff. June 9, 1983;
Laws 1985, c. 15, § 1, emerg. eff. April 11, 1985; Laws 1986, c. 223,
§ 46, operative July 1, 1986; Laws 1987, c. 204, § 131, operative
July 1, 1987; Laws 1988, c. 204, § 11, operative July 1, 1988; Laws
1989, c. 279, § 15, operative July 1, 1989; Laws 1990, c. 258, § 78,
operative July 1, 1990; Laws 1991, c. 274, § 10, emerg. eff. May 28,
1991; Laws 1996, c. 269, § 5, eff. June 1, 1996; Laws 1999, c. 254, §
10, eff. June 30, 1999; Laws 2002, c. 458, § 10, eff. July 1, 2002;
Laws 2002, c. 503, § 4, emerg. eff. June 7, 2002; Laws 2003, c. 3, §
67, emerg. eff. March 19, 2003; Laws 2005, c. 444, § 2, eff. July 1,
2005; Laws 2007, c. 105, § 5, eff. Nov. 1, 2007; Laws 2007, c. 366, §
5, eff. Nov. 1, 2007; Laws 2008, c. 278, § 10, eff. July 1, 2008;
Laws 2012, c. 304, § 543; Laws 2013, c. 253, § 1, eff. July 1, 2013;
Laws 2016, c. 337, § 5, eff. Nov. 1, 2016.
NOTE: Laws 2002, c. 299, § 13 repealed by Laws 2003, c. 3, § 68,
emerg. eff. March 19, 2003. Laws 2002, c. 482, § 3 repealed by Laws
2003, c. 3, § 69, emerg. eff. March 19, 2003.
§68-2352.1. Repealed by Laws 1998, c. 364, § 38, emerg. eff. June 8,
1998.
§68-2353. Definitions.
For the purpose of and when used in the Oklahoma Income Tax Act,
unless the context otherwise requires:
1. "Tax Commission" means the Oklahoma Tax Commission;
2. "Internal Revenue Code" means the United States Internal
Revenue Code, as the same may be amended or adopted from time to time
applicable to the taxable year; and other provisions of the laws of
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the United States relating to federal income taxes, as the same may
be or become effective at any time or from time to time applicable to
the taxable year;
3. Any term used in the Oklahoma Income Tax Act shall have the
same meaning as when used in a comparable context in the Internal
Revenue Code, unless a different meaning is clearly required. For
all taxable periods covered by the Oklahoma Income Tax Act, the tax
status and all elections of all taxpayers covered by the Oklahoma
Income Tax Act shall be the same for all purposes material hereto as
they are for federal income tax purposes except when the Oklahoma
Income Tax Act specifically provides otherwise;
4. "Resident individual" means a natural person who is domiciled
in this state, and any other natural person who spends in the
aggregate more than seven (7) months of the taxable year within this
state shall be presumed to be a resident for purposes of the Oklahoma
Income Tax Act in absence of proof to the contrary. A natural person
who resides less than seven (7) months of the taxable year within
this state is presumed to be a "part-year resident individual" for
purposes of the Oklahoma Income Tax Act, in absence of proof to the
contrary. A "nonresident individual" means an individual other than
a resident individual or a part-year resident individual.
For all tax years beginning after December 31, 1981, a
nonresident individual, with respect to foreign earned income and
deductions, shall include an individual who:
a. during any period of twenty-four (24) consecutive
months is out of the United States at least five
hundred fifty (550) days,
b. during such period referred to in subparagraph a of
this paragraph is not present in this state for more
than ninety (90) days during any taxable year,
c. during any period of less than an entire taxable year,
which period is contained within the period referred to
in subparagraph a of this paragraph, is not present in
this state for a number of days in excess of an amount
which bears the same ratio to ninety (90) days as the
number of days contained in the period of less than an
entire taxable year bears to three hundred sixty-five
(365), and
d. during such period referred to in subparagraph a of
this paragraph does not maintain a permanent place of
abode in this state at which the spouse of the
individual, unless such spouse is legally separated, or
minor children of the individual are present for more
than one hundred eighty (180) days;
5. "Resident estate" means the estate of a decedent who at death
was domiciled in this state. "Nonresident estate" means an estate
other than a resident estate;
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6. "Resident trust" means:
a. a trust, or a portion of a trust, consisting of
property transferred by will of a decedent domiciled in
this state at death, or a trust, or a portion of a
trust, consisting of the property of a person domiciled
in this state if such trust is not irrevocable, and
b. a trust, or portion of a trust, consisting of property
of a person domiciled in this state at the time such
property was transferred to the trust if such trust or
portion was then irrevocable or a person domiciled in
this state at the time such trust or portion became
irrevocable. A trust, or portion of a trust, is
irrevocable if it is not subject to a power exercisable
solely by the transferor of such property, at any time,
to revest title in the transferor. "Nonresident trust"
means a trust other than a resident trust;
7. "Resident partner" means a partner who is a resident
individual, a resident estate, a resident trust or a resident
corporation. "Nonresident partner" means a partner other than a
resident partner;
8. "Resident beneficiary" means a beneficiary of an estate or
trust which beneficiary is a resident individual, a resident estate,
a resident trust or a resident corporation. "Nonresident
beneficiary" means a beneficiary other than a resident beneficiary;
9. "Resident corporation" means a corporation whose principal
place of business is located within the State of Oklahoma.
"Nonresident corporation" means any corporation other than a resident
corporation;
10. "Taxable income" with respect to any taxpayer means the
"taxable income", "life insurance company taxable income", "mutual
insurance company taxable income", "(regulated) investment company
taxable income", "real estate investment trust taxable income", and
"cooperatives' taxable income" and any other "taxable income" as
defined in the Internal Revenue Code as applies to such taxpayer or
any other income of such taxpayer including, but not limited to, lump
sum distributions as defined by the Internal Revenue Code of 1986, as
amended; provided, in the case of income derived from oil and gas
well production, any taxpayer, at his or her option, may deduct as an
allowance for depletion, in lieu of other calculation of depletion
based on the cost of the oil and gas deposit, twenty-two percent
(22%) of the gross income derived from the properties during the
taxable year. Provided further, for tax years beginning on or after
January 1, 2001, and ending on or before December 31, 2011, and for
tax years beginning on or after January 1, 2014, for major oil
companies as defined in Section 288.2 of Title 52 of the Oklahoma
Statutes, such allowance shall not exceed fifty percent (50%) of the
net income of the taxpayer (computed without allowance for depletion)
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from the property. During taxable years other than those specified
herein, for all taxpayers, such allowance shall not exceed fifty
percent (50%) of the net income of the taxpayer (computed without
allowance for depletion) from the property. If a depletion allowance
is allowed as a deduction in arriving at the adjusted gross income in
the case of an individual, or taxable income for corporations and
trusts, or distributable income of partnerships by the Internal
Revenue Service, the percentage depletion so calculated shall in no
event be a duplication of depletion allowed on the Federal Income Tax
Return;
11. "Adjusted gross income" means "adjusted gross income" as
defined in the Internal Revenue Code;
12. "Oklahoma taxable income" means "taxable income" as reported
(or as would have been reported by the taxpayer had a return been
filed) to the federal government, and in the event of adjustments
thereto by the federal government as finally ascertained under the
Internal Revenue Code, adjusted further as hereinafter provided;
13. "Oklahoma adjusted gross income" means "adjusted gross
income" as reported to the federal government (or as would have been
reported by the taxpayer had a return been filed), or in the event of
adjustments thereby by the federal government as finally ascertained
under the Internal Revenue Code, adjusted further as hereinafter
provided;
14. "State" means any state of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States or any political subdivision thereof;
and
15. "Taxpayer" means any person subject to a tax imposed by this
Article, or whose income is, in whole or in part, subject to a tax
imposed by any provision of this article.
Added by Laws 1971, c. 137, § 3, emerg. eff. May 11, 1971. Amended
by Laws 1972, c. 252, § 1, emerg. eff. April 7, 1972; Laws 1975, c.
264, § 1, emerg. eff. June 4, 1975; Laws 1982, c. 293, § 1, emerg.
eff. May 24, 1982; Laws 1989, c. 249, § 29, eff. Jan. 1, 1990; Laws
1994, c. 278, § 24, eff. Sept. 1, 1994; Laws 1996, c. 360, § 3, eff.
July 1, 1996; Laws 2001, c. 249, § 3, eff. July 1, 2001; Laws 2003,
c. 463, § 2, emerg. eff. June 7, 2003; Laws 2006, c. 272, § 12, eff.
Nov. 1, 2006; Laws 2013, c. 401, § 4, eff. Nov. 1, 2013.
§68-2354. Optional transitional deduction.
A. If a taxpayer (including a partnership) shall have been
required to report his taxable income to the State of Oklahoma for
years prior to the effective date of this act, in a manner different
than he has been required to report his federal income for the same
period of time, and, as a consequence of the differences in reporting
income during that period of time, has a different basis of assets
for gain or loss through the taking of different amounts for
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depletion, depreciation or amortization, or shall have a different
amount of some prepaid income or deferred expense or other similar
balance sheet item, such taxpayer shall be entitled, at his option,
to a transitional deduction. The determination of the amount of the
deduction shall be made as though an application to change accounting
method had been granted and shall include all items subject to
adjustment, whether resulting in an increase or decrease in the
transitional deduction. Items subject to adjustment shall be only
those which:
1. Have been treated differently in determining amounts subject
to tax under Oklahoma and federal income tax laws which were
applicable in a prior period;
2. Have been an element in determining Oklahoma income subject
to tax in periods with respect to which Oklahoma income tax was paid;
and
3. Except for the required change in reporting income, would
have produced in a subsequent taxable period an adjustment to income
subject to tax on account of the differences in federal and Oklahoma
tax reporting.
Items subject to adjustment may consist of deductions taken or
not taken in prior years, or amounts of income required to be
included or excluded in such years, but such items shall be
disregarded to the extent it can be shown that the prior treatment of
such items had no actual effect on the amount of Oklahoma income tax
paid; in making such showing, no items other than the items subject
to this transitional adjustment shall be considered.
No net addition to Oklahoma taxable income shall be required by
reason of this section, but, at the election of the taxpayer, a
deduction in the amount of such net adjustment shall be available as
provided below.
B. An affirmative election to use the optional transitional
deduction shall be made on the income tax return filed for the first
taxable period in which a deduction under this section is allowable,
on or before the due date of the return including any extension of
time granted in which to file said return or on an amended return.
Failure to claim such deduction within three (3) years shall be
deemed an election not to claim the optional transitional deduction.
C. The net deduction allowable under this section shall be
deductible only in equal amounts of one-third (1/3) each over the
first three taxable periods ending after the effective date of this
act except that if such net deduction is less than Twenty-five
Thousand Dollars ($25,000.00) the deduction shall be allowable in
full in the first taxable period after the effective date hereof to
the extent of the taxpayer's taxable income and to the second and
third taxable period thereafter to the extent not previously taken in
the earliest successive taxable year. In no event shall the
deduction allowed under this section be carried back or applied
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against income for years prior to the effective date of this act or
carried forward to any taxable year subsequent to the third full
taxable year following the effective date hereof.
Added by Laws 1971, c. 137, § 4. Amended by Laws 1971, p. 1042,
H.J.R. No. 1026, § 2A2, emerg. eff. June 22, 1971.
§68-2355. Tax imposed - Classes of taxpayers.
A. Individuals. For all taxable years beginning after December
31, 1998, and before January 1, 2006, a tax is hereby imposed upon
the Oklahoma taxable income of every resident or nonresident
individual, which tax shall be computed at the option of the taxpayer
under one of the two following methods:
1. METHOD 1.
a. Single individuals and married individuals filing
separately not deducting federal income tax:
(1) 1/2% tax on first $1,000.00 or part thereof,
(2) 1% tax on next $1,500.00 or part thereof,
(3) 2% tax on next $1,250.00 or part thereof,
(4) 3% tax on next $1,150.00 or part thereof,
(5) 4% tax on next $1,300.00 or part thereof,
(6) 5% tax on next $1,500.00 or part thereof,
(7) 6% tax on next $2,300.00 or part thereof, and
(8) (a) for taxable years beginning after December
31, 1998, and before January 1, 2002, 6.75%
tax on the remainder,
(b) for taxable years beginning on or after
January 1, 2002, and before January 1, 2004,
7% tax on the remainder, and
(c) for taxable years beginning on or after
January 1, 2004, 6.65% tax on the remainder.
b. Married individuals filing jointly and surviving spouse
to the extent and in the manner that a surviving spouse
is permitted to file a joint return under the
provisions of the Internal Revenue Code and heads of
households as defined in the Internal Revenue Code not
deducting federal income tax:
(1) 1/2% tax on first $2,000.00 or part thereof,
(2) 1% tax on next $3,000.00 or part thereof,
(3) 2% tax on next $2,500.00 or part thereof,
(4) 3% tax on next $2,300.00 or part thereof,
(5) 4% tax on next $2,400.00 or part thereof,
(6) 5% tax on next $2,800.00 or part thereof,
(7) 6% tax on next $6,000.00 or part thereof, and
(8) (a) for taxable years beginning after December
31, 1998, and before January 1, 2002, 6.75%
tax on the remainder,
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(b) for taxable years beginning on or after
January 1, 2002, and before January 1, 2004,
7% tax on the remainder, and
(c) for taxable years beginning on or after
January 1, 2004, 6.65% tax on the remainder.
2. METHOD 2.
a. Single individuals and married individuals filing
separately deducting federal income tax:
(1) 1/2% tax on first $1,000.00 or part thereof,
(2) 1% tax on next $1,500.00 or part thereof,
(3) 2% tax on next $1,250.00 or part thereof,
(4) 3% tax on next $1,150.00 or part thereof,
(5) 4% tax on next $1,200.00 or part thereof,
(6) 5% tax on next $1,400.00 or part thereof,
(7) 6% tax on next $1,500.00 or part thereof,
(8) 7% tax on next $1,500.00 or part thereof,
(9) 8% tax on next $2,000.00 or part thereof,
(10) 9% tax on next $3,500.00 or part thereof, and
(11) 10% tax on the remainder.
b. Married individuals filing jointly and surviving spouse
to the extent and in the manner that a surviving spouse
is permitted to file a joint return under the
provisions of the Internal Revenue Code and heads of
households as defined in the Internal Revenue Code
deducting federal income tax:
(1) 1/2% tax on the first $2,000.00 or part thereof,
(2) 1% tax on the next $3,000.00 or part thereof,
(3) 2% tax on the next $2,500.00 or part thereof,
(4) 3% tax on the next $1,400.00 or part thereof,
(5) 4% tax on the next $1,500.00 or part thereof,
(6) 5% tax on the next $1,600.00 or part thereof,
(7) 6% tax on the next $1,250.00 or part thereof,
(8) 7% tax on the next $1,750.00 or part thereof,
(9) 8% tax on the next $3,000.00 or part thereof,
(10) 9% tax on the next $6,000.00 or part thereof, and
(11) 10% tax on the remainder.
B. Individuals. For all taxable years beginning on or after
January 1, 2008, and ending any tax year which begins after December
31, 2015, for which the determination required pursuant to Sections 4
and 5 of this act is made by the State Board of Equalization, a tax
is hereby imposed upon the Oklahoma taxable income of every resident
or nonresident individual, which tax shall be computed as follows:
1. Single individuals and married individuals filing separately:
(a) 1/2% tax on first $1,000.00 or part thereof,
(b) 1% tax on next $1,500.00 or part thereof,
(c) 2% tax on next $1,250.00 or part thereof,
(d) 3% tax on next $1,150.00 or part thereof,
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(e) 4% tax on next $2,300.00 or part thereof,
(f) 5% tax on next $1,500.00 or part thereof,
(g) 5.50% tax on the remainder for the 2008 tax year and
any subsequent tax year unless the rate prescribed by
subparagraph (h) of this paragraph is in effect, and
(h) 5.25% tax on the remainder for the 2009 and subsequent
tax years. The decrease in the top marginal individual
income tax rate otherwise authorized by this
subparagraph shall be contingent upon the determination
required to be made by the State Board of Equalization
pursuant to Section 2355.1A of this title.
2. Married individuals filing jointly and surviving spouse to
the extent and in the manner that a surviving spouse is permitted to
file a joint return under the provisions of the Internal Revenue Code
and heads of households as defined in the Internal Revenue Code:
(a) 1/2% tax on first $2,000.00 or part thereof,
(b) 1% tax on next $3,000.00 or part thereof,
(c) 2% tax on next $2,500.00 or part thereof,
(d) 3% tax on next $2,300.00 or part thereof,
(e) 4% tax on next $2,400.00 or part thereof,
(f) 5% tax on next $2,800.00 or part thereof,
(g) 5.50% tax on the remainder for the 2008 tax year and
any subsequent tax year unless the rate prescribed by
subparagraph (h) of this paragraph is in effect, and
(h) 5.25% tax on the remainder for the 2009 and subsequent
tax years. The decrease in the top marginal individual
income tax rate otherwise authorized by this
subparagraph shall be contingent upon the determination
required to be made by the State Board of Equalization
pursuant to Section 2355.1A of this title.
C. Individuals. For all taxable years beginning on or after
January 1, 2016, and for which the determination required pursuant to
Sections 4 and 5 of this act is made by the State Board of
Equalization, a tax is hereby imposed upon the Oklahoma taxable
income of every resident or nonresident individual, which tax shall
be computed as follows:
1. Single individuals and married individuals filing separately:
(a) 1/2% tax on first $1,000.00 or part thereof,
(b) 1% tax on next $1,500.00 or part thereof,
(c) 2% tax on next $1,250.00 or part thereof,
(d) 3% tax on next $1,150.00 or part thereof,
(e) 4% tax on next $2,300.00 or part thereof,
(f) 5% tax on the remainder if the State Board of
Equalization makes a determination pursuant to Section
4 of this act or four and eighty-five hundredths
(4.85%) tax on the remainder if the State Board of
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Equalization makes a determination pursuant to Section
5 of this act.
2. Married individuals filing jointly and surviving spouse to
the extent and in the manner that a surviving spouse is permitted to
file a joint return under the provisions of the Internal Revenue Code
and heads of households as defined in the Internal Revenue Code:
(a) 1/2% tax on first $2,000.00 or part thereof,
(b) 1% tax on next $3,000.00 or part thereof,
(c) 2% tax on next $2,500.00 or part thereof,
(d) 3% tax on next $2,300.00 or part thereof,
(e) 4% tax on next $2,400.00 or part thereof,
(f) 5% tax on the remainder if the State Board of
Equalization makes a determination pursuant to Section
4 of this act or four and eighty-five hundredths
percent (4.85%) tax on the remainder if the State Board
of Equalization makes a determination pursuant to
Section 5 of this act.
No deduction for federal income taxes paid shall be allowed to
any taxpayer to arrive at taxable income.
D. Nonresident aliens. In lieu of the rates set forth in
subsection A above, there shall be imposed on nonresident aliens, as
defined in the Internal Revenue Code, a tax of eight percent (8%)
instead of thirty percent (30%) as used in the Internal Revenue Code,
with respect to the Oklahoma taxable income of such nonresident
aliens as determined under the provision of the Oklahoma Income Tax
Act.
Every payer of amounts covered by this subsection shall deduct
and withhold from such amounts paid each payee an amount equal to
eight percent (8%) thereof. Every payer required to deduct and
withhold taxes under this subsection shall for each quarterly period
on or before the last day of the month following the close of each
such quarterly period, pay over the amount so withheld as taxes to
the Tax Commission, and shall file a return with each such payment.
Such return shall be in such form as the Tax Commission shall
prescribe. Every payer required under this subsection to deduct and
withhold a tax from a payee shall, as to the total amounts paid to
each payee during the calendar year, furnish to such payee, on or
before January 31, of the succeeding year, a written statement
showing the name of the payer, the name of the payee and the payee's
social security account number, if any, the total amount paid subject
to taxation, and the total amount deducted and withheld as tax and
such other information as the Tax Commission may require. Any payer
who fails to withhold or pay to the Tax Commission any sums herein
required to be withheld or paid shall be personally and individually
liable therefor to the State of Oklahoma.
E. Corporations. For all taxable years beginning after December
31, 1989, a tax is hereby imposed upon the Oklahoma taxable income of
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every corporation doing business within this state or deriving income
from sources within this state in an amount equal to six percent (6%)
thereof.
There shall be no additional Oklahoma income tax imposed on
accumulated taxable income or on undistributed personal holding
company income as those terms are defined in the Internal Revenue
Code.
F. Certain foreign corporations. In lieu of the tax imposed in
the first paragraph of subsection D of this section, for all taxable
years beginning after December 31, 1989, there shall be imposed on
foreign corporations, as defined in the Internal Revenue Code, a tax
of six percent (6%) instead of thirty percent (30%) as used in the
Internal Revenue Code, where such income is received from sources
within Oklahoma, in accordance with the provisions of the Internal
Revenue Code and the Oklahoma Income Tax Act.
Every payer of amounts covered by this subsection shall deduct
and withhold from such amounts paid each payee an amount equal to six
percent (6%) thereof. Every payer required to deduct and withhold
taxes under this subsection shall for each quarterly period on or
before the last day of the month following the close of each such
quarterly period, pay over the amount so withheld as taxes to the Tax
Commission, and shall file a return with each such payment. Such
return shall be in such form as the Tax Commission shall prescribe.
Every payer required under this subsection to deduct and withhold a
tax from a payee shall, as to the total amounts paid to each payee
during the calendar year, furnish to such payee, on or before January
31, of the succeeding year, a written statement showing the name of
the payer, the name of the payee and the payee's social security
account number, if any, the total amounts paid subject to taxation,
the total amount deducted and withheld as tax and such other
information as the Tax Commission may require. Any payer who fails
to withhold or pay to the Tax Commission any sums herein required to
be withheld or paid shall be personally and individually liable
therefor to the State of Oklahoma.
G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
taxable income of every trust and estate at the same rates as are
provided in subsection B or C of this section for single individuals.
Fiduciaries are not allowed a deduction for any federal income tax
paid.
H. Tax rate tables. For all taxable years beginning after
December 31, 1991, in lieu of the tax imposed by subsection A, B or C
of this section, as applicable there is hereby imposed for each
taxable year on the taxable income of every individual, whose taxable
income for such taxable year does not exceed the ceiling amount, a
tax determined under tables, applicable to such taxable year which
shall be prescribed by the Tax Commission and which shall be in such
form as it determines appropriate. In the table so prescribed, the
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amounts of the tax shall be computed on the basis of the rates
prescribed by subsection A, B or C of this section. For purposes of
this subsection, the term "ceiling amount" means, with respect to any
taxpayer, the amount determined by the Tax Commission for the tax
rate category in which such taxpayer falls.
Added by Laws 1971, c. 137, § 5, emerg. eff. May 11, 1971. Amended
by Laws 1971, pp. 1042 and 1043, H.J.R. No. 1026, §§ 2A3 to 2A6 and
3A, emerg. eff. June 22, 1971; Laws 1977, c. 53, § 1, eff. Jan. 1,
1979; Laws 1979, c. 195, § 2, emerg. eff. May 24, 1979; Laws 1980, c.
288, § 4, eff. July 1, 1980; Laws 1985, c. 179, § 93, operative July
1, 1985; Laws 1985, c. 200, § 1, operative July 1, 1985; Laws 1988,
c. 204, § 12, operative July 1, 1988; Laws 1989, 1st Ex.Sess., c. 2,
§ 99, operative Jan. 1, 1990; Laws 1992, c. 311, § 1, eff. Sept. 1,
1992; Laws 1998, c. 427, § 2, eff. Jan. 1, 1999; Laws 2001, c. 383, §
2, eff. July 1, 2001; Laws 2004, c. 322, § 13, eff. Dec. 1, 2004
(State Question No. 713, Legislative Referendum No. 336, adopted at
election held Nov. 2, 2004); Laws 2005, c. 413, § 4, eff. July 1,
2005; Laws 2006, c. 16, § 63, emerg. eff. March 29, 2006; Laws 2006,
2nd Ex.Sess., c. 42, § 3, eff. Jan. 1, 2007; Laws 2007, c. 136, § 7,
eff. Jan. 1, 2008; Laws 2013, c. 253, § 2, eff. July 1, 2013; Laws
2014, c. 195, § 1; Laws 2014, c. 195, § 2.
NOTE: Laws 2005, c. 381, § 10 repealed by Laws 2006, c. 16, § 64,
emerg. eff. March 29, 2006.
§68-2355.1. Repealed by Laws 1980, c. 68, § 1, emerg. eff. April 10,
1980.
§68-2355.1A. Determinations by State Board of Equalization - Income
tax rate changes.
A. The provisions of this section shall be applicable with
respect to the implementation of the decreases in the top marginal
rate of individual income tax otherwise authorized pursuant to the
provisions of subparagraph (h) of paragraphs 1 and 2 of subsection B
of Section 2355 of this title which shall be contingent upon a
determination by the State Board of Equalization made by a comparison
of the revenue computations described by this section which shall be
conducted until the income tax rate of five and twenty-five
hundredths percent (5.25%) is effective.
B. In addition to any other duties prescribed by law, at the
meeting required by paragraph 1 of Section 23 of Article X of the
Oklahoma Constitution to be held in December 2008, and for any
subsequent December meeting of the State Board of Equalization if the
top marginal income tax rate prescribed by subparagraph (h) of
paragraphs 1 and 2 of subsection B of Section 2355 of this title has
not become effective, the State Board of Equalization shall
determine:
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1. The amount of revenue growth in the General Revenue Fund of
the State Treasury by comparing the fiscal year General Revenue Fund
estimate for the fiscal year beginning on the next ensuing July 1
date to the revised General Revenue Fund estimate for the then
current fiscal year; and
2. The amount by which the income tax revenue for the tax year
which will begin on the second January 1 date following such December
meeting is estimated to be reduced by the increase in the standard
deduction provided in paragraph 2 of subsection E of Section 2358 of
this title, plus an amount equal to four percent (4%) of the revised
General Revenue Fund estimate for the then current fiscal year in
order for a top marginal income tax rate of five and twenty-five
hundredths percent (5.25%) to be effective.
If the amount determined pursuant to the provisions of paragraph
1 of this subsection is equal to or greater than the amount
determined pursuant to the provisions of paragraph 2 of this
subsection, the Board shall make a preliminary finding that the Board
anticipates that a finding will be made at the February meeting
immediately subsequent to the December meeting that applicable
revenue growth in the state will authorize the implementation of the
provisions of subparagraph (h) of paragraphs 1 and 2 of subsection B
of Section 2355 of this title beginning on the second January 1
following such December meeting.
If the amount determined pursuant to the provisions of paragraph
1 of this subsection is less than the amount determined pursuant to
the provisions of paragraph 2 of this subsection, the Board shall
make a preliminary finding that the Board anticipates that a finding
will be made at the February meeting immediately subsequent to the
December meeting that applicable revenue growth in the state will not
authorize the implementation of the provisions of subparagraph (h) of
paragraphs 1 and 2 of subsection B of Section 2355 of this title
beginning on the second January 1 following such December meeting.
C. In addition to any other duties prescribed by law, at the
meeting required by paragraph 3 of Section 23 of Article X of the
Oklahoma Constitution to be held in February 2009, and for any
subsequent February meeting of the State Board of Equalization if the
top marginal income tax rate prescribed by subparagraph (h) of
paragraphs 1 and 2 of subsection B of Section 2355 of this title has
not become effective the State Board of Equalization shall determine:
1. The amount of revenue growth in the General Revenue Fund of
the State Treasury by comparing the fiscal year General Revenue Fund
estimate for the fiscal year beginning on the next ensuing July 1
date to the revised General Revenue Fund estimate for the then
current fiscal year; and
2. The amount by which the income tax revenue for the tax year
which will begin on the January 1 date immediately following such
February meeting is estimated to be reduced by the increase in the
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standard deduction provided in paragraph 2 of subsection E of Section
2358 of this title plus an amount equal to four percent (4%) of the
revised General Revenue Fund estimate for the then current fiscal
year in order for a top marginal income tax rate of five and twenty-
five hundredths percent (5.25%) to be effective.
If the amount determined pursuant to the provisions of paragraph
1 of this subsection is equal to or greater than the amount
determined pursuant to the provisions of paragraph 2 of this
subsection, the Board shall make a finding that applicable revenue
growth in the state will authorize the implementation of the
provisions of subparagraph (h) of paragraphs 1 and 2 of subsection B
of Section 2355 of this title beginning on the January 1 date
immediately following such February meeting.
If the amount determined pursuant to the provisions of paragraph
1 of this subsection is less than the amount determined pursuant to
the provisions of paragraph 2 of this subsection, the Board shall
make a finding that applicable revenue growth in the state does not
authorize the implementation of the provisions of subparagraph (h) of
paragraphs 1 and 2 of subsection B of Section 2355 of this title
beginning with the January 1 date immediately following such February
meeting.
D. If the Board makes a finding that applicable revenue growth
in the state does not authorize the implementation of the provisions
of subparagraph (h) of paragraphs 1 and 2 of subsection B of Section
2355 of this title beginning with calendar year 2010 pursuant to the
provisions of subsection C of this section, the procedures prescribed
by subsection A, subsection B, and subsection C of this section shall
be repeated by the State Board of Equalization for each successive
two-year comparison. Once the income tax rate otherwise authorized
pursuant to subparagraph (h) of paragraphs 1 and 2 of subsection B of
Section 2355 of this title has been implemented as a result of the
analysis of the General Revenue Fund estimates together with the
fiscal impact of the standard deduction as authorized pursuant to
paragraph 2 of subsection E of Section 2358 of this title, such
income tax rate shall be in effect for the tax years as prescribed by
subparagraph (h) of paragraphs 1 and 2 of subsection B of Section
2355 of this title.
Added by Laws 2006, 2nd Ex.Sess., c. 42, § 4, eff. Jan. 1, 2007.
Amended by Laws 2007, c. 346, § 2, eff. Nov. 1, 2007; Laws 2008, c.
378, § 13, emerg. eff. June 4, 2008.
§68-2355.1B. Determination of initial baseline amount of revenue
apportioned to teachers' retirement revolving fund - Annual review.
In addition to any other duties prescribed by law, at the meeting
required by paragraph 3 of Section 23 of Article X of the Oklahoma
Constitution to be held in February of the first calendar year after
an income tax rate reduction implemented pursuant to Section 2355.1A
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of Title 68 of the Oklahoma Statutes has been in place for twelve
(12) months, the State Board of Equalization shall:
1. Determine an initial baseline amount of revenue which was
finally apportioned to the credit of the Teachers’ Retirement System
Dedicated Revenue Revolving Fund pursuant to Sections 1353, 1403 and
2352 of Title 68 of the Oklahoma Statutes for the most recent twelve
(12) months;
2. Beginning with the February meeting in the sixth year after
the Board determines an initial baseline amount, annually review such
amount to determine if it differs from the average annual amount of
revenue which was finally apportioned to the credit of the Teachers’
Retirement System Dedicated Revenue Revolving Fund pursuant to
Sections 1353, 1403 and 2352 of Title 68 of the Oklahoma Statutes
over the most recent five (5) fiscal years. If the Board determines
that the initial baseline amount is less than the five-year average
annual amount, a new baseline equal to the five-year average annual
amount shall be determined and applied as provided in paragraph 5 of
Section 1353, paragraph 5 of Section 1403 and paragraph 3 of Section
2352 of Title 68 of the Oklahoma Statutes; and
3. Determine the proportion of the baseline amount attributable
to each revenue source specified in paragraph 2 of this section
whenever the Board determines a baseline amount.
Added by Laws 2007, c. 105, § 2, eff. Nov. 1, 2007. Amended by Laws
2007, c. 366, § 2, eff. Nov. 1, 2007.
§68-2355.1C. Special Committee on Soldier Relief.
A. As used in this section:
1. “Revenue collections” means the amount of revenue estimated
to have been collected and expected to be collected by the state
beginning on July 1, 2010, and ending before January 1, 2015, from
sales tax, motor vehicle taxes and fees, vehicle excise tax and motor
fuel tax from all taxpayers who receive salary or compensation in any
form other than retirement benefits from the United States as a
member of any component of the Armed Forces of the United States or
as the dependent of such member;
2. “Revenue reductions” means the amount of income tax revenue
which is exempt pursuant to subparagraph b of paragraph 5 of
subsection E of Section 2358 of Title 68 of the Oklahoma Statutes.
B. 1. There is hereby created until December 1, 2014, the
Special Committee on Soldier Relief. The special committee shall
conduct a comprehensive multi-year review of the amount of state tax
revenue generated by members of the armed forces and their families
who are Oklahoma residents.
2. The special committee shall be comprised of the following:
a. each of the members of the Veterans and Military
Affairs Committee of the Oklahoma House of
Representatives,
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b. each of the members of the Veterans and Military
Affairs Committee of the Oklahoma State Senate,
c. two members of the Oklahoma Senate who do not serve on
the Senate Veterans and Military Affairs Committee,
appointed by the President Pro Tempore of the Senate,
d. two members of the Oklahoma House of Representatives
who do not serve on the House Veterans and Military
Affairs Committee, appointed by the Speaker of the
Oklahoma House of Representatives,
e. one member appointed by the President Pro Tempore of
the Senate who shall represent the United States Armed
Forces recruitment efforts in the State of Oklahoma,
and
f. one member appointed by the Speaker of the Oklahoma
House of Representatives who shall represent the
Oklahoma Military Department, Oklahoma National Guard
or reserve forces serving in Oklahoma;
D. The task force shall:
1. Estimate the amount of revenue collected and expected to be
collected by the state beginning on July 1, 2010, and ending before
January 1, 2015, from sales tax, motor vehicle taxes and fees,
vehicle excise tax and motor fuel tax from all taxpayers who receive
salary or compensation in any form other than retirement benefits
from the United States as a member of any component of the Armed
Forces of the United States; provided, where such data has not yet
become available or is available only through projections, estimates
shall be provided and noted as such and methodology shall be
provided;
2. Review all available data from the United States Department
of Defense, the Oklahoma Tax Commission and any other government-
generated data on the number of individuals recruited in Oklahoma,
the number of such individuals who claim Oklahoma as their home of
record, and the number of those recruited here who do not claim
Oklahoma as their home of record;
3. Review any additional data and information which the
Committee considers relevant to the development of an estimate of the
amount of state tax revenue collected as the result of members of any
component of the Armed Forces of the United States claiming Oklahoma
as their home; and
4. Submit a report by December 1, 2014, to the State Board of
Equalization. The report shall include findings and recommendations
regarding the impact of members of any component of the Armed Forces
of the United States in Oklahoma on state tax revenue collections and
expected collections between July 1, 2010, and January 1, 2015.
E. Members of the task force shall receive no compensation for
serving on the task force, but shall receive travel reimbursement as
follows:
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1. State employees who are members of the task force shall be
reimbursed for travel expenses incurred in the performance of their
duties by their respective agencies in accordance with the State
Travel Reimbursement Act;
2. All other task force members shall be reimbursed by the
appointing authority for travel expenses incurred in the performance
of their duties in accordance with the State Travel Reimbursement
Act; and
3. Legislative members shall be reimbursed in accordance with
Section 456 of Title 74 of the Oklahoma Statutes.
F. The Special Committee on Soldier Relief shall meet as often
as necessary to conduct business but shall meet no less than three
(3) times, with an organizational meeting to be held prior to
December 31, 2009. The organizational meeting shall be called by the
Chair of the Finance Committee of the Oklahoma State Senate. A
majority of members of the Special Committee shall constitute a
quorum.
G. Administrative support for the Special Committee shall be
provided by the State Senate, House of Representatives and the
Oklahoma Tax Commission.
Added by Laws 2009, c. 436, § 2, eff. July 1, 2010.
§68-2355.1D. Repealed by Laws 2014, c. 138, § 2, eff. Nov. 1, 2014.
§68-2355.1E. Repealed by Laws 2014, c. 195, § 3.
§68-2355.1F. Implementation of 5% top marginal rate.
A. The provisions of this section shall be applicable with
respect to the implementation of the five percent (5%) top marginal
rate of individual income tax otherwise authorized pursuant to the
provisions of subparagraph (f) of paragraphs 1 and 2 of subsection C
of Section 2355 of Title 68 of the Oklahoma Statutes, which shall be
contingent upon a determination by the State Board of Equalization
made by a comparison described by this section which shall be
conducted until the income tax rate of five percent (5%) is
effective.
B. In addition to any other duties prescribed by law, at the
meeting required by paragraph 1 of Section 23 of Article X of the
Oklahoma Constitution to be held in December 2014, and for any
subsequent December meeting of the State Board of Equalization, if
the five percent (5%) top marginal income tax rate prescribed by
subparagraph (f) of paragraphs 1 and 2 of subsection C of Section
2355 of Title 68 of the Oklahoma Statutes has not become effective,
the State Board of Equalization shall compare:
1. The total General Revenue Fund proposed estimate for fiscal
year 2014 which was certified at the State Board of Equalization
meeting held in February 2013; and
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2. The total General Revenue Fund proposed estimate for fiscal
year 2016, or if the five percent (5%) top marginal income tax rate
prescribed by subparagraph (f) of paragraphs 1 and 2 of subsection C
of Section 2355 of Title 68 of the Oklahoma Statutes has not become
effective, the fiscal year for which the Board is certifying a
proposed estimate.
If the amount determined pursuant to the provisions of paragraph
2 of this subsection is equal to or greater than the amount
determined pursuant to the provisions of paragraph 1 of this
subsection, the Board shall make a finding that the revenue
computations required by this section will authorize the
implementation of the five percent (5%) top marginal income tax rate
prescribed by subparagraph (f) of paragraphs 1 and 2 of subsection C
of Section 2355 of Title 68 of the Oklahoma Statutes beginning on the
second January 1 following the December meeting.
If the amount determined pursuant to the provisions of paragraph
2 of this subsection is less than the amount determined pursuant to
the provisions of paragraph 1 of this subsection, the Board shall
make a finding that the revenue computations required by this section
will not authorize the implementation of the five percent (5%) top
marginal income tax rate prescribed by subparagraph (f) of paragraphs
1 and 2 of subsection C of Section 2355 of Title 68 of the Oklahoma
Statutes beginning on the second January 1 following the December
meeting.
C. If the Board makes a finding that the revenue computations
required by this section do not authorize the implementation of the
5% top marginal income tax rate prescribed by of subparagraph (f) of
paragraphs 1 and 2 of subsection C of Section 2355 of Title 68 of the
Oklahoma Statutes beginning with calendar year 2016 pursuant to the
provisions of subsection B of this section, such procedures shall be
repeated by the State Board of Equalization for each successive two-
year comparison until the rate is implemented.
Added by Laws 2014, c. 195, § 4.
§68-2355.1G. Repealed by Laws 2017, c. 267, § 2, eff. Nov. 1, 2017.
§68-2355.1P-1. Short title - Pass-Through Entity Tax Equity Act of
2019.
Sections 1 through 9 of this act shall be known and may be cited
as the "Pass-Through Entity Tax Equity Act of 2019".
Added by Laws 2019, c. 201, § 1, emerg. eff. April 29, 2019.
§68-2355.1P-2. Definitions.
As used in this act:
1. "Distributive share" means a member's percentage share of
Oklahoma net entity income or net entity loss;
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2. "Electing pass-through entity" means any pass-through entity
as defined in paragraph 6 of this section that has made an election
pursuant to subsection F of Section 4 of this act to pay income tax
as computed pursuant to Section 2358 of Title 68 of the Oklahoma
Statutes;
3. "Indirect member" means, with respect to any particular
electing pass-through entity, an individual, fiduciary, or entity
that (i) owns an interest in a pass-through entity other than the
electing pass-through entity and (ii) has been allocated items of
Oklahoma income, gain, loss or deduction that the electing pass-
through entity included in computing its tax pursuant to the
provisions of the Pass-Through Entity Tax Equity Act of 2019;
4. "Member" means any individual, fiduciary, or entity holding
an ownership interest in an electing pass-through entity;
5. "Oklahoma net entity income" or "Oklahoma net entity loss"
means the positive or negative sum of an electing pass-through
entity's items of Oklahoma income, gain, loss, and deduction
determined under Section 2351 et seq. of Title 68 of the Oklahoma
Statutes, regardless of whether any such items are required for
federal income tax purposes to be separately stated; and
6. "Pass-through entity" means a general partnership, a limited
partnership, a limited liability partnership, a limited liability
limited partnership, a limited liability company, or a corporation,
if any of the enumerated entity's items of income, gain, loss, and
deduction, as applicable, are subject to being included on another
person's return for federal income tax purposes under Subchapter K or
Subchapter S of the Internal Revenue Code.
Added by Laws 2019, c. 201, § 2, emerg. eff. April 29, 2019.
§68-2355.1P-3. Purpose - Apportionment.
A. It is hereby declared to be the purpose of the Pass-Through
Entity Tax Equity Act of 2019 to establish a revenue-neutral
mechanism to provide a more fair and simplified taxation of pass-
through entities and their members in this state while maintaining
revenue levels for support of general governmental functions of the
State of Oklahoma.
B. All monies collected pursuant to the provisions of subsection
A of Section 2358 of Title 68 of the Oklahoma Statutes shall be
apportioned in the same manner as provided in paragraph 1 of Section
2352 of Title 68 of the Oklahoma Statutes if the tax is computed
based upon a distribution made to one or more individuals, trusts and
estates and shall be apportioned in the same manner as provided in
paragraph 2 of Section 2352 of Title 68 of the Oklahoma Statutes if
the tax is computed based upon a distribution to a corporation or to
a pass-through entity as such term is defined in Section 2 of this
act.
Added by Laws 2019, c. 201, § 3, emerg. eff. April 29, 2019.
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§68-2355.1P-4. Calculation of tax.
A. For tax years beginning on or after January 1, 2019, there is
hereby levied on each electing pass-through entity the pass-through
entity tax which shall be calculated as follows:
1. With regard to each member of an electing pass-through
entity, the electing pass-through entity shall multiply such member's
Oklahoma distributive share of the electing pass-through entity's
Oklahoma net entity income for the tax year by:
a. the highest Oklahoma marginal income tax rate levied on
the taxable income of natural persons pursuant to
Section 2355 of Title 68 of the Oklahoma Statutes if
the member is an individual, trust, or estate,
b. six percent (6%) if the member is classified as a
corporation pursuant to the Internal Revenue Code, and
is not classified as an S corporation,
c. six percent (6%) if the member is a pass-through
entity,
d. six percent (6%) if the member is a financial
institution subject to tax imposed pursuant to the
provisions of Section 2370 of Title 68 of the Oklahoma
Statutes, and
e. the highest Oklahoma marginal income tax rate that
would be applicable to any item of the electing pass-
through entity's income or gain without the election
made pursuant to subsection F of this section, if the
member is an organization described in Section 2359 of
Title 68 of the Oklahoma Statutes; and
2. The electing pass-through entity shall aggregate the amounts
determined with respect to all members pursuant to paragraph 1 of
this subsection and the pass-through entity tax for the applicable
tax year shall be equal to such aggregated tax amount for the tax
year with respect to which the election has been made.
B. Sections 2385.29, 2385.30 and 2385.31 of Title 68 of the
Oklahoma Statutes shall not be applicable to an electing pass-through
entity.
C. The pass-through entity tax shall be due and payable on the
same date as provided for the filing of the electing pass-through
entity's Oklahoma income tax return, and for tax years beginning on
or after January 1, 2020, estimated tax payments shall be required as
provided in Section 2385.9 of Title 68 of the Oklahoma Statutes.
D. If the pass-through entity election results in a net entity
loss for Oklahoma income tax purposes in any tax year, the net entity
loss may be carried back and carried forward by the electing pass-
through entity for Oklahoma income tax purposes as set forth in
subparagraph b of paragraph 3 of subsection A of Section 2358 of this
title.
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E. Notwithstanding paragraph 2 of subsection C of Section 2368
of Title 68 of the Oklahoma Statutes, a nonresident individual who is
a member of an electing pass-through entity is not required to file
an Oklahoma income tax return, if, for the taxable year, the only
source of income allocable or apportionable to this state for the
member, or, if a joint income tax return is filed, the member and his
or her spouse, is from one or more electing pass-through entities,
and each electing pass-through entity files and pays the taxes due
under this section.
F. Any entity required to file an Oklahoma partnership income
tax return or an Oklahoma S corporation income tax return may elect
to become an electing pass-through entity. The election shall be
made on such form and in such manner as the Oklahoma Tax Commission
may prescribe, and any election under this subsection shall have
priority over and revoke any election to file a composite Oklahoma
partnership return or requirement of a Subchapter S corporation to
report and pay tax on behalf of a nonresident shareholder for the
same tax year.
G. Pursuant to procedures prescribed by the Tax Commission, if
the amount of tax required to be paid by a pass-through entity
pursuant to the provisions of this section is not paid when due, the
Oklahoma Tax Commission may revoke the pass-through entity's election
under subsection F of this section effective for the first year for
which the tax is not paid.
H. The election authorized by the provisions of this section
shall be made pursuant to procedures prescribed by the Tax Commission
and shall be filed (i) within sixty (60) days of enactment and
pursuant to procedures prescribed by the Oklahoma Tax Commission for
any income tax year beginning on or after January 1, 2019, and prior
to January 1, 2020, or (ii) for any income tax year beginning on or
after January 1, 2020, at any time during the preceding tax year or
two (2) months and fifteen (15) days after the beginning of the tax
year. Any such election shall be binding until revoked pursuant to
procedures prescribed by the Tax Commission. The effective date of a
revocation (i) made within two (2) months and fifteen (15) days of
the electing pass-through entity's taxable year shall be the first
day of such taxable year and (ii) made during the electing pass-
through entity's taxable year but after such fifteenth day shall be
effective on the first day of the following taxable year. No
election made by a pass-through entity with respect to income tax to
be paid by such entity using the calculations prescribed by this
section shall be binding on any other pass-through entity, and each
pass-through entity shall be able to make an election under the
provisions of this act independently.
Added by Laws 2019, c. 201, § 4, emerg. eff. April 29, 2019.
§68-2355.2. Oklahoma Taxpayer Relief Revolving Fund.
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A. There is hereby created in the State Treasury a revolving
fund for the State Treasurer to be designated the "Oklahoma Taxpayer
Relief Revolving Fund". The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of the monies
transferred to such fund pursuant to paragraph 2 of subsection A of
Section 46.1 of Title 62 of the Oklahoma Statutes. All monies
accruing to the credit of said fund are hereby appropriated and may
be budgeted and expended by the State Treasurer for the purpose of
providing payments to Oklahoma residents who have filed an income tax
return pursuant to Section 2355 of this title for the preceding tax
year, except for those residents who were inmates in the custody of
the Department of Corrections, and for the purpose of administrative
costs incurred by the State Treasurer in making payments provided by
this section. The payments to taxpayers filing as married filing
jointly, surviving spouse or head of household shall be equal to two
times the payment to taxpayers filing as an individual or married
filing separately. No taxpayer filing as an individual who claims
zero personal exemptions shall receive a payment. During each year
funds accrue pursuant to Section 46.1 of Title 62 of the Oklahoma
Statutes, the Oklahoma Tax Commission shall provide the State
Treasurer with information necessary for such payments to be issued.
Expenditures from said fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
B. The State Treasurer shall promulgate any necessary rules in
order to administer the provisions of this section.
C. The Oklahoma Taxpayer Relief Revolving Fund shall be
abolished and all monies remaining in such fund transferred to the
Special Cash Fund on June 30, 2012. Any liabilities payable from the
Oklahoma Taxpayer Relief Revolving Fund shall be extinguished upon
its abolishment and shall not be transferred to the Special Cash
Fund. The Special Cash Fund refers to the fund created by Section
253 of Title 62 of the Oklahoma Statutes.
Added by Laws 2005, c. 446, § 3, eff. July 1, 2005. Amended by Laws
2011, c. 261, § 2, eff. Nov. 1, 2011; Laws 2012, c. 304, § 544.
§68-2357. Credits against tax.
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B. 1. There shall be allowed as a credit against the tax
imposed by Section 2355 of this title the amount of tax paid another
state by a resident individual, as defined in paragraph 4 of Section
2353 of this title, upon income received as compensation for personal
services in such other state; provided, such credit shall not be
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allowed with respect to any income specified in Section 114 of Title
4 of the United States Code, 4 U.S.C., Section 114, upon which a
state is prohibited from imposing an income tax. The credit shall
not exceed such proportion of the tax payable under Section 2355 of
this title as the compensation for personal services subject to tax
in the other state and also taxable under Section 2355 of this title
bears to the Oklahoma adjusted gross income as defined in paragraph
13 of Section 2353 of this title.
2. For tax years beginning after December 31, 2007, there shall
be allowed to a resident individual or part-year resident individual
or nonresident individual member of the Armed Forces as a credit
against the tax imposed by Section 2355 of this title twenty percent
(20%) of the credit for child care expenses allowed under the
Internal Revenue Code of the United States or five percent (5%) of
the child tax credit allowed under the Internal Revenue Code,
whichever amount is greater. Neither credit authorized by this
paragraph shall exceed the tax imposed by Section 2355 of this title.
The maximum child care credit allowable on the Oklahoma income tax
return shall be prorated on the ratio that Oklahoma adjusted gross
income bears to the federal adjusted gross income. The credit
authorized by this paragraph shall not be claimed by any taxpayer if
the federal adjusted gross income reflected on the Oklahoma return
for the taxpayer is in excess of One Hundred Thousand Dollars
($100,000.00).
Added by Laws 1971, c. 137, § 7, emerg. eff. May 11, 1971. Amended
by Laws 1971, p. 1042, H.J.R. No. 1026, §§ 2A7, 8, emerg. eff. June
22, 1971; Laws 1977, c. 3, § 1, emerg. eff. Feb. 8, 1977; Laws 1977,
c. 47, § 1, emerg. eff. May 11, 1977; Laws 1978, c. 214, § 1, emerg.
eff. April 19, 1978; Laws 1980, c. 224, § 1, eff. July 1, 1980; Laws
1987, c. 113, § 23, operative Jan. 1, 1987; Laws 1996, c. 289, § 8,
eff. July 1, 1996; Laws 1997, c. 294, § 22, eff. July 1, 1997; Laws
2007, c. 136, § 8, eff. Jan. 1, 2008; Laws 2010, c. 327, § 3, eff.
July 1, 2010; Laws 2013, c. 363, § 1, eff. Jan. 1, 2014; Laws 2015,
c. 147, § 1, eff. Nov. 1, 2015.
§68-2357.1. Solar energy system defined.
As used in this section and Section 2357.2 of this title, "solar
energy system" means a system primarily designed to provide heating
or cooling, electrical or mechanical power, or any combination
thereof by means of collecting, transferring or storing solar
generated energy for such purposes. Such term shall include passive
structural and nonstructural features which are designed to provide a
calculated net energy gain to a structure from renewable energy
sources, commonly referred to as "passive solar energy systems", but
shall not include those parts of a structural system which would be
required regardless of the energy source being utilized. Solar
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energy may be derived from either direct processes or indirect
processes using wind energy systems.
Amended by Laws 1982, c. 322, § 1, operative July 1, 1982.
§68-2357.1A-1. Task Force for the Study of State Tax Credits and
Economic Incentives.
A. There is hereby created the Task Force for the Study of State
Tax Credits and Economic Incentives.
B. The Task Force shall consist of ten (10) members to be
appointed or selected as follows:
1. The Chair of the Appropriations and Budget Committee of the
Oklahoma House of Representatives;
2. The Chair of the Appropriations Committee of the Oklahoma
State Senate;
3. The Chair of the Revenue and Taxation Subcommittee of the
Appropriations and Budget Committee of the Oklahoma House of
Representatives;
4. The Chair of the Senate Finance Committee;
5. The Director of the Office of Management and Enterprise
Services or a designee;
6. The State Treasurer or a designee;
7. The Oklahoma Secretary of State or a designee;
8. Minority Leader of the Oklahoma House of Representatives;
9. Minority Leader of the Oklahoma State Senate; and
10. The State Auditor and Inspector.
C. The Task Force shall conduct an organizational meeting not
later than September 30, 2011. A majority of the members present at
the organizational meeting or any subsequent meeting shall constitute
a quorum for the purpose of any action taken including the
preparation and approval of the final report required by subsection I
of this section.
D. The cochairs of the Task Force shall be the member who is the
Chair of the Revenue and Taxation Subcommittee of the Appropriations
and Budget Committee and the member who is the Chair of the Finance
Committee of the State Senate.
E. The Task Force shall be authorized to meet as necessary in
order to perform the duties imposed upon it. Legislative members of
the Task Force shall be reimbursed for travel expenses pursuant to
the provisions of Section 456 of Title 74 of the Oklahoma Statutes.
Other members of the Task Force shall be reimbursed as provided by
the appointing authority.
F. The Task Force shall conduct a study regarding all state tax
credits regardless of the tax type against which such credit may be
claimed and any other economic incentives that affect state or local
tax liabilities. The study shall include, but shall not be limited
to:
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1. The justification for the enactment of any state tax credits
based upon the relevant economics of the applicable industry or
economic sector affected;
2. The economic impact related to the utilization of state tax
credits;
3. Analysis of the utilization of the credits by tax credit
purchasers;
4. The impact of tax credits on any and all economic sectors of
the state economy;
5. The adequacy or inadequacy of state tax credits or other
economic incentives; and
6. Such other matters related to state tax credits or economic
incentives as the Task Force deems relevant.
G. The Task Force shall be subject to the provisions of:
1. The Oklahoma Open Meeting Act; and
2. The Oklahoma Open Records Act.
H. Staff assistance for the Task Force shall be provided by the
staff of the Oklahoma House of Representatives and the State Senate.
I. The Task Force shall produce a final written report of its
findings and any recommendations regarding transferable tax credits.
The report shall be submitted to the Governor, the Speaker of the
Oklahoma House of Representatives and the President Pro Tempore of
the State Senate not later than December 31, 2011.
J. The provisions of this section shall cease to have the force
and effect of law and the Task Force shall terminate effective
January 1, 2012.
Added by Laws 2011, c. 295, § 1, eff. July 1, 2011. Amended by Laws
2012, c. 304, § 545.
§68-2357.1A-2. Transfer or allocation of tax credits - Reporting.
A. Notwithstanding any other provision of law, the transfer or
allocation of any tax credit authorized pursuant to the provisions of
this title, except as provided in this section, shall be reported to
the Oklahoma Tax Commission and any tax credit authorized pursuant to
the provisions of Title 36 of the Oklahoma Statutes shall be reported
to the Oklahoma Insurance Department as provided in subsection B of
this section.
B. The transfer or allocation of any tax credit shall be
reported to the Tax Commission or Insurance Department by the entity
transferring or allocating the credit on or before the twentieth day
of the second month after the tax year in which an act occurs which
allows the tax credit to eventually be claimed. If the credit is
transferable, the report shall state whether the credit will or may
be transferred to another taxpayer and the names of the taxpayers to
whom the credit is transferred. The report shall also provide
whether the credit will or may be allocated by a pass-through entity
to one or more of the shareholders, partners or members of the pass-
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through entity and the identity of the shareholders, partners or
members of the pass-through entity to whom the credit was allocated.
Further, the report shall include the tax type, the amount of the
credit, the statutory or other legal authority which forms the basis
for the credit, and other information that may be required by the Tax
Commission or the Insurance Department. The report to the Tax
Commission or to the Insurance Department shall be on such form as
the Commission or Department may prescribe. The Tax Commission and
the Insurance Department shall be authorized to require the report to
be filed electronically.
C. Notwithstanding the provisions of Section 205 of Title 68 of
the Oklahoma Statutes the Tax Commission and the Insurance Department
shall compile a list of all tax credits reported as required by this
section and shall provide the list to the Governor, the Speaker of
the Oklahoma House of Representatives, the President Pro Tempore of
the State Senate and the Director of the Office of Management and
Enterprise Services not later than June 1 of each year. Not later
than five (5) working days after the report has been provided to the
Governor, the Speaker of the Oklahoma House of Representatives and
the President Pro Tempore of the State Senate, the Oklahoma Tax
Commission shall publish the report on its website.
D. The compiled list shall identify the tax credits reported
pursuant to subsection A of this section and shall separately
identify the amount of tax credits that may be claimed against each
separate state tax under the jurisdiction of the administering agency
and the name of the entity that will be claiming the credit.
E. To the extent possible, the Tax Commission and the Insurance
Department shall make an estimate of the revenue impact to the State
of Oklahoma resulting from the credits reported on a separate fiscal
year by fiscal year basis. Each agency shall make its estimate only
for tax credits under the jurisdiction of each administering agency.
F. If a taxpayer claims a credit on any state tax return that
was not previously reported to the Tax Commission or Insurance
Department pursuant to this section, the Tax Commission or Insurance
Department shall disallow the credit and recompute the applicable tax
liability including any penalty or interest; provided, upon the
filing of the report required by this section, the credit shall be
allowed.
G. This section shall not be applicable to the following tax
credits:
1. The sales tax relief credit authorized by Section 5011 of
this title;
2. The low income property tax relief credit authorized by
Section 2907 of this title;
3. The earned income tax credit authorized by Section 2357.43 of
this title;
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4. The child care/child tax credit authorized by Section 2357 of
this title;
5. The credit for taxes paid to another state authorized by
Section 2357 of this title; and
6. The credit for property taxes paid on tornado damaged
residential property authorized by Section 2357.29 of this title.
Added by Laws 2011, c. 349, § 1, eff. July 1, 2011. Amended by Laws
2012, c. 304, § 546.
NOTE: Editorially renumbered from § 2357.1A-1 of this title to avoid
duplication in numbering.
§68-2357.2. Repealed by Laws 1996, c. 289, § 10, emerg. eff. July 1,
1996.
§68-2357.4. Business credit for investment or increase in full-time
Employees
A. Except as otherwise provided in subsection F of Section 3658
of this title and in subsections J and K of this section, for taxable
years beginning after December 31, 1987, there shall be allowed a
credit against the tax imposed by Section 2355 of this title for:
1. Investment in qualified depreciable property placed in
service during those years for use in a manufacturing operation, as
defined in Section 1352 of this title, which has received a
manufacturer exemption permit pursuant to the provisions of Section
1359.2 of this title or a qualified aircraft maintenance or
manufacturing facility as defined in Section 1357 of this title in
this state or a qualified web search portal as defined in Section
1357 of this title; or
2. A net increase in the number of full-time-equivalent
employees in a manufacturing operation, as defined in Section 1352 of
this title, which has received a manufacturer exemption permit
pursuant to the provisions of Section 1359.2 of this title or a
qualified aircraft maintenance or manufacturing facility defined in
Section 1357 of this title in this state or in a qualified web search
portal as defined in Section 1357 of this title including employees
engaged in support services.
B. Except as otherwise provided in subsection F of Section 3658
of this title and in subsections J and K of this section, for taxable
years beginning after December 31, 1998, there shall be allowed a
credit against the tax imposed by Section 2355 of this title for:
1. Investment in qualified depreciable property with a total
cost equal to or greater than Forty Million Dollars ($40,000,000.00)
within three (3) years from the date of initial qualifying
expenditure and placed in service in this state during those years
for use in the manufacture of products described by any Industry
Number contained in Division D of Part I of the Standard Industrial
Classification (SIC) Manual, latest revision; or
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2. A net increase in the number of full-time-equivalent
employees in this state engaged in the manufacture of any goods
identified by any Industry Number contained in Division D of Part I
of the Standard Industrial Classification (SIC) Manual, latest
revision, if the total cost of qualified depreciable property placed
in service by the business entity within the state equals or exceeds
Forty Million Dollars ($40,000,000.00) within three (3) years from
the date of initial qualifying expenditure.
C. The business entity may claim the credit authorized by
subsection B of this section for expenditures incurred or for a net
increase in the number of full-time-equivalent employees after the
business entity provides proof satisfactory to the Oklahoma Tax
Commission that the conditions imposed pursuant to paragraph 1 or
paragraph 2 of subsection B of this section have been satisfied.
D. If a business entity fails to expend the amount required by
paragraph 1 or paragraph 2 of subsection B of this section within the
time required, the business entity may not claim the credit
authorized by subsection B of this section but shall be allowed to
claim a credit pursuant to subsection A of this section if the
requirements of subsection A of this section are met with respect to
the investment in qualified depreciable property or net increase in
the number of full-time-equivalent employees.
E. The credit provided for in subsection A of this section, if
based upon investment in qualified depreciable property, shall not be
allowed unless the investment in qualified depreciable property is at
least Fifty Thousand Dollars ($50,000.00). The credit provided for
in subsection A or B of this section shall not be allowed if the
applicable investment is the direct cause of a decrease in the number
of full-time-equivalent employees. Qualified property shall be
limited to machinery, fixtures, equipment, buildings or substantial
improvements thereto, placed in service in this state during the
taxable year. The taxable years for which the credit may be allowed
if based upon investment in qualified depreciable property shall be
measured from the year in which the qualified property is placed in
service. If the credit provided for in subsection A or B of this
section is calculated on the basis of the cost of the qualified
property, the credit shall be allowed in each of the four (4)
subsequent years. If the qualified property on which a credit has
previously been allowed is acquired from a related party, the date
such property is placed in service by the transferor shall be
considered to be the date such property is placed in service by the
transferee, for purposes of determining the aggregate number of years
for which credit may be allowed.
F. The credit provided for in subsection A or B of this section,
if based upon an increase in the number of full-time-equivalent
employees, shall be allowed in each of the four (4) subsequent years
only if the level of new employees is maintained in the subsequent
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year. In calculating the credit by the number of new employees, only
those employees whose paid wages or salary were at least Seven
Thousand Dollars ($7,000.00) during each year the credit is claimed
shall be included in the calculation. Provided, that the first year
a credit is claimed for a new employee, such employee may be included
in the calculation notwithstanding paid wages of less than Seven
Thousand Dollars ($7,000.00) if the employee was hired in the last
three quarters of the tax year, has wages or salary which will result
in annual paid wages in excess of Seven Thousand Dollars ($7,000.00)
and the taxpayer submits an affidavit stating that the employee's
position will be retained in the following tax year and will result
in the payment of wages in excess of Seven Thousand Dollars
($7,000.00). The number of new employees shall be determined by
comparing the monthly average number of full-time employees subject
to Oklahoma income tax withholding for the final quarter of the
taxable year with the corresponding period of the prior taxable year,
as substantiated by such reports as may be required by the Tax
Commission.
G. The credit allowed by subsection A of this section shall be
the greater amount of either:
1. One percent (1%) of the cost of the qualified property in the
year the property is placed in service; or
2. Five Hundred Dollars ($500.00) for each new employee. No
credit shall be allowed in any taxable year for a net increase in the
number of full-time-equivalent employees if such increase is a result
of an investment in qualified depreciable property for which an
income tax credit has been allowed as authorized by this section.
H. The credit allowed by subsection B of this section shall be
the greater amount of either:
1. Two percent (2%) of the cost of the qualified property in the
year the property is placed in service; or
2. One Thousand Dollars ($1,000.00) for each new employee.
No credit shall be allowed in any taxable year for a net increase
in the number of full-time-equivalent employees if such increase is a
result of an investment in qualified depreciable property for which
an income tax credit has been allowed as authorized by this section.
I. Except as provided by subsection G of Section 3658 of this
title, any credits allowed but not used in any taxable year may be
carried over in order as follows:
1. To each of the four (4) years following the year of
qualification;
2. To the extent not used in those years in order to each of the
fifteen (15) years following the initial five-year period;
3. If a C corporation that otherwise qualified for the credits
under subsection A of this section subsequently changes its operating
status to that of a pass-through entity which is being treated as the
same entity for federal tax purposes, the credits will continue to be
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available as if the pass-through entity had originally qualified for
the credits subject to the limitations of this section;
4. To the extent not used in paragraphs 1 and 2 of this
subsection, such credits from qualified depreciable property placed
in service on or after January 1, 2000, may be utilized in any
subsequent tax years after the initial twenty-year period; and
5. Provided, for tax years beginning on or after January 1,
2016, and ending on or before December 31, 2018, the amount of
credits available as an offset in a taxable year shall be limited to
the percentage calculated by the Tax Commission pursuant to the
provisions of subsection L of this section.
J. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable until the provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2010, according to the provisions
of this section; provided, credits accrued during the period from
July 1, 2010, through June 30, 2012, shall be limited to a period of
two (2) taxable years. The credit shall be limited in each taxable
year to fifty percent (50%) of the total amount of the accrued
credit. Any tax credits which accrue during the period of July 1,
2010, through June 30, 2012, may not be claimed for any period prior
to the taxable year beginning January 1, 2012. No credits which
accrue during the period of July 1, 2010, through June 30, 2012, may
be used to file an amended tax return for any taxable year prior to
the taxable year beginning January 1, 2012.
K. Beginning January 1, 2017, except with respect to tax credits
allowed from investment or job creation occurring prior to January 1,
2017, the credits authorized by this section shall not be allowed for
investment or job creation in electric power generation by means of
wind as described by the North American Industry Classification
System, No. 221119.
L. For tax years beginning on or after January 1, 2016, and
ending on or before December 31, 2018, the total amount of credits
authorized by this section used to offset tax shall be adjusted
annually to limit the annual amount of credits to Twenty-five Million
Dollars ($25,000,000.00). The Tax Commission shall annually
calculate and publish a percentage by which the credits authorized by
this section shall be reduced so the total amount of credits used to
offset tax does not exceed Twenty-five Million Dollars
($25,000,000.00) per year. The formula to be used for the percentage
adjustment shall be Twenty-five Million Dollars ($25,000,000.00)
divided by the credits used to offset tax in the second preceding
year.
9)!&#!%!%%"'%)6! !2!(# 7!8,
M. Pursuant to subsection L of this section, in the event the
total tax credits authorized by this section exceed Twenty-five
Million Dollars ($25,000,000.00) in any calendar year, the Tax
Commission shall permit any excess over Twenty-five Million Dollars
($25,000,000.00) but shall factor such excess into the percentage
adjustment formula for subsequent years.
Added by Laws 1980, c. 299, § 1. Amended by Laws 1984, c. 94, § 1,
eff. Jan. 1, 1985; Laws 1985, c. 342, § 1, eff. Jan. 1, 1986; Laws
1986, c. 52, § 1, eff. Jan. 1, 1987; Laws 1987, c. 228, § 10, eff.
Jan. 1, 1988; Laws 1991, 1st Ex. Sess., c. 2, § 11, emerg. eff. Jan.
18, 1991; Laws 1992, c. 383, § 3, emerg. eff. June 9, 1992; Laws
1997, c. 190, § 3, eff. July 1, 1997; Laws 1998, c. 364, § 20, emerg.
eff. June 8, 1998; Laws 1999, c. 1, § 21, emerg. eff. Feb. 24, 1999;
Laws 2000, c. 3, § 2, emerg. eff. March 2, 2000; Laws 2000, c. 214, §
2, eff. July 1, 2000; Laws 2002, c. 299, § 14, emerg. eff. May 23,
2002; Laws 2003, c. 462, § 2, eff. July 1, 2003; Laws 2006, c. 281, §
29, emerg. eff. June 7, 2006; Laws 2009, c. 426, § 9, eff. Jan. 1,
2010; Laws 2010, c. 327, § 4, July 1, 2010; Laws 2010, c. 418, § 2,
emerg. eff. June 10, 2010; Laws 2015, c. 336, § 1, eff. Jan. 1, 2017;
Laws 2016, c. 329, § 1, eff. Nov. 1, 2016.
NOTE: Laws 1998, c. 301, § 13 and Laws 1998, c. 349, § 5 repealed by
Laws 1999, c. 1, § 45, emerg. eff. Feb. 24, 1999.
§68-2357.6. Repealed by Laws 2013, c. 363, § 4, eff. Jan. 1, 2014.
§68-2357.7. Credit for investments in qualified venture capital
companies.
A. For taxable years beginning after December 31, 1986, and
before January 1, 2009, there shall be allowed a credit against the
tax imposed by Section 2355 of this title or Section 624 of Title 36
of the Oklahoma Statutes for investments in qualified venture capital
companies whose purpose is to establish or expand the development of
business and industry within Oklahoma. Provided, tax credits against
liabilities imposed pursuant to Section 624 of Title 36 of the
Oklahoma Statutes shall be limited to the amount that would otherwise
be collected and allocated to the General Revenue Fund of the State
Treasury.
B. For purposes of this section:
1. "Qualified venture capital company" means a C corporation, as
defined by the Internal Revenue Code of 1986, as amended,
incorporated pursuant to the laws of Oklahoma or a registered
business partnership with a certificate of partnership filed as
required by law if such corporation or partnership is organized to
provide the direct investment of debt and equity funds to companies
within this state, with its principal place of business located
within this state and which meets the following criteria:
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a. capitalization of not less than Five Million Dollars
($5,000,000.00),
b. having a purpose and objective of investing at least
seventy-five percent (75%) of its capitalization in
Oklahoma business ventures. The temporary investment
of funds by a qualified venture capital company in
obligations of the United States, state and municipal
bonds, bank certificates of deposit, or money market
securities pending investment in Oklahoma business
ventures is hereby authorized, and
c. investment of not more than ten percent (10%) of its
funds in any one company;
2. "Oklahoma business venture" means a business, incorporated or
unincorporated, which:
a. has or will have, within one hundred eighty (180) days
after an investment is made by a qualified venture
capital company, at least fifty percent (50%) of its
employees or assets located in Oklahoma,
b. needs financial assistance in order to commence or
expand such business which provides or intends to
provide goods or services,
c. is not engaged in oil and gas exploration, real estate
development, real estate sales, retail sales of food or
clothing, farming, ranching, banking, or lending or
investing funds in other businesses. Provided,
however, businesses which provide or intend to provide
goods or services, including, but not limited to, goods
or services involving new technology, equipment, or
techniques to such businesses listed in this
subparagraph, and investments in the development of
tourism facilities in the form of amusement parks,
entertainment parks, theme parks, golf courses, or
museums shall not be subject to said prohibition, and
d. expends within eighteen (18) months after the date of
the investment at least fifty percent (50%) of the
proceeds of the investment for the acquisition of
tangible or intangible assets which are used in the
active conduct of the trade or business of the Oklahoma
business venture or to provide working capital for the
active conduct of such trade or business. For purposes
of this subparagraph, “working capital” shall not
include consulting, brokerage or transaction fees.
Provided, that the Oklahoma Tax Commission, upon
request and demonstration of need by a qualified
venture capital company or an Oklahoma business
venture, may extend the eighteen-month period otherwise
required by this subparagraph for a period not to
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exceed six (6) months. Provided, the expenditure of
the invested funds by the Oklahoma business venture
shall otherwise comply with the requirements applicable
to the usage of tax credits for investment in the
Oklahoma business venture. As used in this
subparagraph, “tangible assets” shall include the
acquisition of real property and the construction of
improvements upon real property if such acquisition and
construction otherwise complies with the requirements
applicable to the usage of tax credits for investment
in the Oklahoma business venture and “intangible
assets” shall be limited to computer software,
licenses, patents, copyrights, and similar items;
3. "Direct investment" means the purchase of securities of a
private company, or securities of a public company if the securities
constitute a new issue of a public company and such public company
had previous year sales of less than Ten Million Dollars
($10,000,000.00); and
4. "Debt and equity funds" means investments in debt securities;
including unsecured, undersecured, subordinated or convertible loans
or debt securities; and/or equity securities, including common and
preferred stock, royalty rights, limited partnership interest, and
any other securities or rights that evidence ownership in businesses;
provided such investment of debt and equity funds shall not have a
repayment schedule that is faster than a level principal amortization
over five (5) years.
C. The credit provided for in subsection A of this section shall
be twenty percent (20%) of the cash amount invested in qualified
venture capital companies which is subsequently invested in an
Oklahoma business venture by the qualified venture capital company
and may only be claimed for a taxable year during which the qualified
venture capital company makes an investment in an Oklahoma business
venture. The credit shall be allowed for the amount of the
investment in an Oklahoma business venture if the funds are used in
pursuit of a legitimate business purpose of the Oklahoma business
venture consistent with its organizational instrument, bylaws or
other agreement responsible for the governance of the business
venture. The qualified venture capital company shall issue such
reports as the Oklahoma Tax Commission may require attributing the
source of funds of each investment it makes in an Oklahoma business
venture. The Oklahoma Capital Investment Board shall have the
authority to certify an entity as a qualified venture capital company
and to certify an investment to be a qualifying Oklahoma business
venture for purposes of complying with subsection B of this section.
Such certification shall be binding on the Oklahoma Tax Commission.
Such certification shall not be mandatory but may be requested by any
entity that desires to be certified. A reasonable certification fee
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may be charged by the Oklahoma Capital Investment Board for this
service. If the tax credit allowed pursuant to subsection A of this
section exceeds the amount of taxes due or if there are no state
taxes due of the taxpayer, the amount of the claim not used as an
offset against the taxes of a taxable year may be carried forward as
a credit against subsequent tax liability for a period not to exceed
three (3) years. No investor in a venture capital company organized
after July 1, 1992, may claim tax credits under the provisions of
this section.
D. No taxpayer may claim the credit provided for in subsection A
of this section for investments in qualified venture capital
companies made prior to January 1, 1987.
E. No investor whose capital is guaranteed by the Oklahoma
Capital Investment Board may claim or transfer the credit provided
for in subsection A of this section for investments in such
guaranteed portfolio.
F. The credit provided for in subsection A of this section, to
the extent not previously utilized, shall be freely transferable to
and by subsequent transferees for a period of three (3) years from
the date of investment in the Oklahoma business venture.
G. If a pass-through entity is entitled to a credit under this
section, the pass-through entity shall allocate such credit to one or
more of the shareholders, partners or members of the pass-through
entity; provided, the total of all credits allocated shall not exceed
the amount of the credit to which the pass-through entity is
entitled. The credit may also be claimed for funds borrowed by the
pass-through entity to make a qualified investment if a shareholder,
partner or member to whom the credit is allocated has an unlimited
and continuing legal obligation to repay the borrowed funds but the
allocation may not exceed such shareholder’s, partner’s or member’s
pro-rata equity share of the pass-through entity even if the
taxpayer’s legal obligation to repay the borrowed funds is in excess
of such pro-rata share of such borrowed funds. For purposes of this
act, “pass-through entity” means a corporation that for the
applicable tax years is treated as an S corporation under the
Internal Revenue Code, general partnership, limited partnership,
limited liability partnership, trust or limited liability company
that for the applicable tax year is not taxed as a corporation for
federal income tax purposes.
Added by Laws 1986, c. 265, § 1, eff. Jan. 1, 1987. Amended by Laws
1987, c. 222, § 110, operative July 1, 1987; Laws 1988, 3rd Ex.Sess.,
c. 2, § 2, emerg. eff. Sept. 9, 1988; Laws 1989, c. 350, § 3,
operative July 1, 1989; Laws 1990, c. 328, § 14, eff. Sept. 1, 1990;
Laws 1991, c. 188, § 13, eff. July 1, 1991; Laws 1998, c. 226, § 1,
eff. Jan. 1, 1999; Laws 2003, c. 181, § 2, eff. Nov. 1, 2003; Laws
2006, c. 281, § 2, emerg. eff. June 7, 2006; Laws 2008, c. 440, § 1.
9)!&#!%!%%"'%)6! !2!(# 7!8,
§68-2357.7A. Commission to file annual report on qualified venture
capital company investment credit.
On or before November 1 of each year subsequent to the effective
date of this act, the Oklahoma Tax Commission shall file a report
with the Speaker of the House of Representatives and the President
Pro Tempore of the Senate. The report shall state the amount of
credits actually claimed and allowed pursuant to the provisions of
Section 2357.7 of Title 68 of the Oklahoma Statutes during the
previous calendar year, statistical information on the qualified
investments made by qualified venture capital companies during the
previous year, an estimate of the number of jobs created in this
state during the previous year pursuant to qualified investments made
by qualified venture capital companies, and such other information as
the Tax Commission may deem relevant.
Added by Laws 2006, c. 281, § 3, emerg. eff. June 7, 2006.
§68-2357.8. Qualified venture capital company - Annual report -
Written statement to investors - Violations and penalties -
Registration system.
A. Each qualified venture capital company, as defined in Section
2357.7 of this title, shall file an annual report within one hundred
twenty (120) days after each successive calendar year end with the
Oklahoma Tax Commission which lists all funds invested in such
company which may qualify for the tax credit allowed by Section
2357.7 of this title. Said report shall state the amount of funds
invested in such company during the taxable year by persons or
corporations, the Social Security number of such person or the
federal identification number of such corporation making such
investments, and shall include a schedule listing the type and amount
of investments made by said venture capital company together with
such other information as the Tax Commission may prescribe.
B. Each qualified venture capital company shall furnish to each
person or corporation who made an investment in such company during
the preceding year a written statement showing the name of the
venture capital company, the name of the investor, the total amount
of investments in the company made by such person or corporation and
such other information as the Tax Commission may require. Said
statement shall be attached to the income tax return of such person
or corporation in order to qualify for said tax credit.
C. Any qualified venture capital company who refuses or fails to
comply with the provisions of this section or is hereafter found
guilty in a court of competent jurisdiction of any violation of any
Oklahoma income tax law shall not be eligible to be a qualified
venture capital company for purposes of Section 2357.7 of this title.
For investments in a venture capital company made prior to the
effective date of this act, if a venture capital company does not
invest its funds in a business that meets the definition of an
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“Oklahoma business venture” or the Oklahoma business venture fails to
expend the proceeds of the investment, as provided for in Section
2357.7 of this title, the venture capital company shall pay to the
Tax Commission a penalty equal to the aggregate amount of tax credit
provided to investors in such venture capital company multiplied by a
fraction, the numerator of which is a percentage equal to the
difference between the percentage of capitalization required to be
invested in Oklahoma business ventures and the percentage of funds
invested in Oklahoma business ventures calculated in accordance with
subparagraph b of paragraph 1 of subsection B of Section 2357.7 of
this title and the denominator of which is the percentage of
capitalization required to be invested in Oklahoma business ventures.
Provided, to the extent that the penalty cannot be collected from the
venture capital company, the penalty shall be collected from the
taxpayers to whom the tax credits have been granted or transferred.
Tax credits granted for investments in venture capital companies made
on or after the effective date of this act shall be subject to the
provisions of Section 5 of this act.
D. Any taxpayer who refuses or fails to comply with the
provisions of this section or is hereafter found guilty in a court of
competent jurisdiction of any violation of any Oklahoma income tax
law shall not be eligible for the tax credit granted in Section
2357.7 of this title.
E. The Tax Commission is directed to immediately develop a
system for registration of any income tax credits issued pursuant to
Section 2357.7 et seq. of this title and a system which permits
verification that any tax credit claimed upon an income tax return is
validly issued and properly taken in the year of claim and ensures
that any transfers of the income tax credit are not unduly restricted
or hindered.
Added by Laws 1986, c. 265, § 2, eff. Jan. 1, 1987. Amended by Laws
1987, c. 222, § 111, operative July 1, 1987; Laws 1988, 3rd Ex.Sess.,
c. 2, § 3, emerg. eff. Sept. 9, 1988; Laws 1998, c. 226, § 2, eff.
Jan. 1, 1999; Laws 2006, c. 281, § 4, emerg. eff. June 7, 2006.
§68-2357.8A. Qualified venture capital company investment credit -
Recaptured credit amount - Tax increase.
A. The provisions of this section shall only be applicable to
investments in qualified venture capital companies made on or after
June 7, 2006, pursuant to Section 2357.7 of this title. As used in
this section, “recapture event” means that with respect to an
investment in an Oklahoma business venture by a qualified venture
capital company:
1. The Oklahoma business venture fails to expend at least fifty
percent (50%) of the proceeds of qualified investments for
acquisition of tangible or intangible assets to be used in the active
conduct of the trade or business of the Oklahoma business venture or
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for working capital for the active conduct of such trade or business
within eighteen (18) months after the investment is made or within an
extension of such period as provided in Section 2357.7 of this title.
For purposes of this paragraph, “working capital” shall not include
consulting, brokerage or transaction fees;
2. The investment in the Oklahoma business venture is
transferred, withdrawn or otherwise returned within five (5) years;
provided, a “recapture event” shall not include the transfer,
withdrawal or return of an investment as a result of a “market-based
liquidity event”. As used in Section 2351 et seq. of this title, a
“market-based liquidity event” means that an Oklahoma business
venture:
a. sells all or substantially all of its assets to, or is
acquired by share acquisition, share exchange, merger,
consolidation or other similar transaction by another
person or entity other than a person or entity
controlled by a person that made an investment in the
qualified venture capital company that provided funds
for use by the Oklahoma business venture,
b. conducts an initial public offering of a class of its
equity securities pursuant to the requirements of the
United States Securities Act of 1933 or other
applicable federal law governing the sale of securities
in interstate commerce,
c. makes an amortization payment under the terms of a debt
instrument, or
d. repays indebtedness from net income as determined in
accordance with generally accepted accounting
principles or proceeds of the sale of assets in the
ordinary course of business; or
3. The Oklahoma Tax Commission finds that the investment does
not meet the requirements of Section 2357.7 of this title.
B. If a recapture event occurs with respect to an investment for
which a credit authorized by Section 2357.7 of this title was
claimed, the tax imposed pursuant to the applicable provisions of
Title 36 of the Oklahoma Statutes or this title shall be increased to
the extent of the recaptured credit amount.
C. For purposes of this section, the recapture amount shall be
equal to the sum of:
1. The aggregate decrease in the credits previously allowed to
the taxpayer pursuant to Section 2357.7 of this title for all prior
taxable periods which would have resulted if no credit had been
authorized with respect to the qualified investment; plus
2. Interest at the rate prescribed by Section 217 of this title
on the amount determined pursuant to paragraph 1 of this subsection
for each prior taxable period for the period beginning on the due
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date for filing the applicable report or return for the prior taxable
period.
D. The tax for the taxable period shall be increased pursuant to
this section only with respect to credits which were used to reduce
tax liability. In the case of credits not used to reduce tax
liability, the carryforwards allowed shall be adjusted accordingly.
E. For any transaction that is audited by the Tax Commission
after such credits have been allowed, but which is subsequently
determined to constitute a recapture event, the Tax Commission shall
be required to disallow any and all credits claimed in violation of
the requirements of this section or any other provision of Section
2357.7 or 2357.8 of this title for a period of ten (10) years after
the date as of which any applicable tax report or return utilizing
such credits is filed.
F. The provisions of subsection E of this section shall
supersede any other provision of the Uniform Tax Procedure Code or
any other state tax law that would prohibit the disallowance of such
credits based upon an otherwise applicable statute of limitations.
Added by Laws 2006, c. 281, § 5, emerg. eff. June 7, 2006. Amended
by Laws 2008, c. 440, § 2.
§68-2357.9. Repealed by Laws 1998, c. 364, § 38, emerg. eff. June 8,
1998.
§68-2357.10. Oklahoma Coal Production Incentive Act - Short title.
This act shall be known and may be cited as the "Oklahoma Coal
Production Incentive Act".
Added by Laws 1988, c. 316, § 1, eff. Jan. 1, 1989.
§68-2357.11. Tax credit.
A. For purposes of this section, the term "person" means any
legal business entity including limited and general partnerships,
corporations, sole proprietorships, and limited liability companies,
but does not include individuals.
B. 1. Except as otherwise provided by this section, for tax
years beginning on or after January 1, 1993, and ending on or before
December 31, 2021, there shall be allowed a credit against the tax
imposed by Section 1803 or Section 2355 of this title or Section 624
or 628 of Title 36 of the Oklahoma Statutes for every person in this
state furnishing water, heat, light or power to the state or its
citizens, or for every person in this state burning coal to generate
heat, light or power for use in manufacturing operations located in
this state.
2. For tax years beginning on or after January 1, 1993, and
ending on or before December 31, 2005, and for the period of January
1, 2006, through June 30, 2006, the credit shall be in the amount of
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Two Dollars ($2.00) per ton for each ton of Oklahoma-mined coal
purchased by such person.
3. For the period of July 1, 2006, through December 31, 2006,
and, except as provided in subsection N of this section, for tax
years beginning on or after January 1, 2007, and ending on or before
December 31, 2021, the credit shall be in the amount of Two Dollars
and eighty-five cents ($2.85) per ton for each ton of Oklahoma-mined
coal purchased by such person.
4. In addition to the credit allowed pursuant to the provisions
of paragraph 3 of this subsection, for the period of July 1, 2006,
through December 31, 2006, and except as provided in subsections M
and N of this section, for tax years beginning on or after January 1,
2007, and ending on or before December 31, 2021, there shall be
allowed a credit in the amount of Two Dollars and fifteen cents
($2.15) per ton for each ton of Oklahoma-mined coal purchased by such
person. The credit allowed pursuant to the provisions of this
paragraph may not be claimed or transferred prior to January 1, 2008.
C. For tax years beginning on or after January 1, 1995, and
ending on or before December 31, 2005, and for the period beginning
January 1, 2006, through June 30, 2006, there shall be allowed, in
addition to the credits allowed pursuant to subsection B of this
section, a credit against the tax imposed by Section 1803 or Section
2355 of this title or Section 624 or 628 of Title 36 of the Oklahoma
Statutes for every person in this state which:
1. Furnishes water, heat, light or power to the state or its
citizens, or burns coal to generate heat, light or power for use in
manufacturing operations located in this state; and
2. Purchases at least seven hundred fifty thousand (750,000)
tons of Oklahoma-mined coal in the tax year.
The additional credit allowed pursuant to this subsection shall
be in the amount of Three Dollars ($3.00) per ton for each ton of
Oklahoma-mined coal purchased by such person.
D. Except as otherwise provided by this section, for tax years
beginning on or after January 1, 2001, and ending on or before
December 31, 2021, there shall be allowed a credit against the tax
imposed by Section 1803 or Section 2355 of this title or Section 624
or 628 of Title 36 of the Oklahoma Statutes for every person in this
state primarily engaged in mining, producing or extracting coal, and
holding a valid permit issued by the Oklahoma Department of Mines.
For tax years beginning on or after January 1, 2001, and ending on or
before December 31, 2005, and for the period beginning January 1,
2006, through June 30, 2006, the credit shall be in the amount of
ninety-five cents ($0.95) per ton and for the period of July 1, 2006,
through December 31, 2006, and for tax years beginning on or after
January 1, 2007, except as provided in subsection N of this section,
the credit shall be in the amount of Five Dollars ($5.00) for each
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ton of coal mined, produced or extracted in on, under or through a
permit in this state by such person.
E. In addition to the credit allowed pursuant to the provisions
of subsection D of this section and except as otherwise provided in
subsection F of this section, for tax years beginning on or after
January 1, 2001, and ending on or before December 31, 2005, and for
the period of January 1, 2006, through June 30, 2006, there shall be
allowed a credit against the tax imposed by Section 1803 or Section
2355 of this title or Section 624 or 628 of Title 36 of the Oklahoma
Statutes for every person in this state primarily engaged in mining,
producing or extracting coal, and holding a valid permit issued by
the Oklahoma Department of Mines in the amount of ninety-five cents
($0.95) per ton for each ton of coal mined, produced or extracted
from thin seams in this state by such person; provided, the credit
shall not apply to such coal sold to any consumer who purchases at
least seven hundred fifty thousand (750,000) tons of Oklahoma-mined
coal per year.
F. In addition to the credit allowed pursuant to the provisions
of subsection D of this section and except as otherwise provided in
subsection G of this section, for tax years beginning on or after
January 1, 2005, and ending on or before December 31, 2005, and for
the period of January 1, 2006, through June 30, 2006, there shall be
allowed a credit against the tax imposed by Section 1803 or Section
2355 of this title or that portion of the tax imposed by Section 624
or 628 of Title 36 of the Oklahoma Statutes, which is actually paid
to and placed into the General Revenue Fund, in the amount of ninety-
five cents ($0.95) per ton for each ton of coal mined, produced or
extracted from thin seams in this state by such person on or after
July 1, 2005.
G. The credits provided in subsections D and E of this section
shall not be allowed for coal mined, produced or extracted in any
month in which the average price of coal is Sixty-eight Dollars
($68.00) or more per ton, excluding freight charges, as determined by
the Tax Commission.
H. The additional credits allowed pursuant to subsections B, C,
D and E of this section but not used shall be freely transferable
after January 1, 2002, but not later than December 31, 2013, by
written agreement to subsequent transferees at any time during the
five (5) years following the year of qualification; provided, the
additional credits allowed pursuant to the provisions of paragraph 4
of subsection B of this section but not used shall be freely
transferable after January 1, 2008, but not later than December 31,
2013, by written agreement to subsequent transferees at any time
during the five (5) years following the year of qualification. An
eligible transferee shall be any taxpayer subject to the tax imposed
by Section 1803 or Section 2355 of this title or Section 624 or 628
of Title 36 of the Oklahoma Statutes. The person originally allowed
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the credit and the subsequent transferee shall jointly file a copy of
the written credit transfer agreement with the Tax Commission within
thirty (30) days of the transfer. The written agreement shall
contain the name, address and taxpayer identification number of the
parties to the transfer, the amount of credit being transferred, the
year the credit was originally allowed to the transferring person and
the tax year or years for which the credit may be claimed. The Tax
Commission may promulgate rules to permit verification of the
validity and timeliness of a tax credit claimed upon a tax return
pursuant to this subsection but shall not promulgate any rules which
unduly restrict or hinder the transfers of such tax credit.
I. The additional credit allowed pursuant to subsection F of
this section but not used shall be freely transferable on or after
July 1, 2006, but not later than December 31, 2013, by written
agreement to subsequent transferees at any time during the five (5)
years following the year of qualification. An eligible transferee
shall be any taxpayer subject to the tax imposed by Section 1803 or
Section 2355 of this title or Section 624 or 628 of Title 36 of the
Oklahoma Statutes. The person originally allowed the credit and the
subsequent transferee shall jointly file a copy of the written credit
transfer agreement with the Tax Commission within thirty (30) days of
the transfer. The written agreement shall contain the name, address
and taxpayer identification number of the parties to the transfer,
the amount of credit being transferred, the year the credit was
originally allowed to the transferring person and the tax year or
years for which the credit may be claimed. The Tax Commission may
promulgate rules to permit verification of the validity and
timeliness of a tax credit claimed upon a tax return pursuant to this
subsection but shall not promulgate any rules which unduly restrict
or hinder the transfers of such tax credit.
J. Any person receiving tax credits pursuant to the provisions
of this section shall apply the credits against taxes payable or,
subject to the limitation that credits earned after December 31,
2013, shall not be transferred, shall transfer the credits as
provided in this section or, for credits earned on or after January
1, 2014, shall receive a refund pursuant to the provisions of
subsection L of this section. Credits shall not be used to lower the
price of any Oklahoma-mined coal sold that is produced by a
subsidiary of the person receiving a tax credit under this section to
other buyers of the Oklahoma-mined coal.
K. Except as provided by paragraph 2 of subsection L of this
section, the credits allowed by subsections B, C, D, E and F of this
section, upon election of the taxpayer, shall be treated and may be
claimed as a payment of tax, a prepayment of tax or a payment of
estimated tax for purposes of Section 1803 or 2355 of this title or
Section 624 or 628 of Title 36 of the Oklahoma Statutes.
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L. 1. With respect to credits allowed pursuant to the
provisions of subsections B, C, D, E and F of this section earned
prior to January 1, 2014, but not used in any tax year may be carried
over in order to each of the five (5) years following the year of
qualification.
2. With respect to credits allowed pursuant to the provisions of
subsections B, C, D, E and F of this section which are earned but not
used, based upon activity occurring on or after January 1, 2014, the
Oklahoma Tax Commission shall, at the taxpayer's election, refund
directly to the taxpayer eighty-five percent (85%) of the face amount
of such credits. The direct refund of the credits pursuant to this
paragraph shall be available to all taxpayers, including, without
limitation, pass-through entities and taxpayers subject to Section
2355 of this title. The amount of any direct refund of credits
actually received at the eighty-five percent (85%) level by the
taxpayer pursuant to this paragraph shall not be subject to the tax
imposed by Section 2355 of this title. If the pass-through entity
does not file a claim for a direct refund, the pass-through entity
shall allocate the credit to one or more of the shareholders,
partners or members of the pass-through entity; provided, the total
of all credits refunded or allocated shall not exceed the amount of
the credit or refund to which the pass-through entity is entitled.
For the purposes of this paragraph, "pass-through entity" means a
corporation that for the applicable tax year is treated as an S
corporation under the Internal Revenue Code of 1986, as amended,
general partnership, limited partnership, limited liability
partnership, trust or limited liability company that for the
applicable tax year is not taxed as a corporation for federal income
tax purposes.
M. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
N. Except as otherwise provided by this section, any credits
calculated pursuant to paragraphs 3 or 4 of subsection B or
subsection D of this section for activities occurring on or after
January 1, 2016, the amount of credit allowed shall be equal to
seventy-five percent (75%) of the amount otherwise provided.
O. For tax years beginning on or after January 1, 2018, the
total amount of credits authorized by this section used to offset tax
or paid as a refund shall be adjusted annually to limit the annual
amount of credits to Five Million Dollars ($5,000,000.00). The Tax
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Commission shall annually calculate and publish a percentage by which
the credits authorized by this section shall be reduced so the total
amount of credits used to offset tax or paid as a refund does not
exceed Five Million Dollars ($5,000,000.00) per year. The formula to
be used for the percentage adjustment shall be Five Million Dollars
($5,000,000.00) divided by the credits claimed in the second
preceding year.
P. Pursuant to subsection O of this section, in the event the
total tax credits authorized by this section exceed Five Million
Dollars ($5,000,000.00) in any calendar year, the Tax Commission
shall permit any excess over Five Million Dollars ($5,000,000.00) but
shall factor such excess into the percentage adjustment formula for
subsequent years.
Q. Any credits authorized by this section not used or unable to
be used because of the provisions of subsection O or P of this
section may be carried over until such credits are fully used.
Added by Laws 1988, c. 316, § 2, eff. Jan. 1, 1989. Amended by Laws
1992, c. 162, § 1, emerg. eff. May 5, 1992; Laws 1993, c. 138, § 1,
eff. Sept. 1, 1993; Laws 1994, c. 278, § 25, eff. Sept. 1, 1994; Laws
1996, c. 360, § 4, eff. July 1, 1996; Laws 1999, c. 79, § 1, eff.
July 1, 1999; Laws 2001, c. 402, § 2, eff. July 1, 2001; Laws 2002,
c. 170, § 1, emerg. eff. May 6, 2002; Laws 2002, c. 458, § 11, eff.
July 1, 2002; Laws 2005, c. 413, § 5, eff. July 1, 2005; Laws 2006,
c. 272, § 13; Laws 2006, 2nd Ex. Sess., c. 44, § 9, eff. July 1,
2006; Laws 2010, c. 327, § 6, eff. July 1, 2010; Laws 2010, c. 361, §
1, eff. Nov. 1, 2010; Laws 2013, c. 371, § 1, eff. Jan. 1, 2014; Laws
2016, c. 390, § 1, eff. Nov. 1, 2016; Laws 2018, 2nd Ex. Sess., c. 6,
§ 1, eff. Jan. 1, 2018.
§68-2357.11A. Task Force for the Study of Transferable Tax Credits.
A. There is hereby created the Task Force for the Study of
Transferable Tax Credits.
B. The Task Force shall consist of nine (9) members to be
appointed or selected as follows:
1. Three members to be appointed by the Governor at least one of
whom shall be a principal member of the Governor’s staff;
2. Three members, who shall be members of the Oklahoma House of
Representatives, to be appointed by the Speaker of the Oklahoma House
of Representatives, one of whom shall be the Chair of the Revenue and
Taxation Subcommittee of the Appropriations and Budget Committee; and
3. Three members, who shall be members of the Oklahoma State
Senate, to be appointed by the President Pro Tempore of the State
Senate, one of whom shall be the Chair of the Senate Finance
Committee.
C. The Task Force shall conduct an organizational meeting not
later than September 30, 2009. A majority of the members present at
the organizational meeting or any subsequent meeting shall constitute
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a quorum for the purpose of any action taken including the
preparation and approval of the final report required by subsection I
of this section.
D. The cochairs of the Task Force shall be the member who is the
Chair of the Revenue and Taxation Subcommittee of the Appropriations
and Budget Committee and the Chair of the Finance Committee of the
State Senate.
E. The Task Force shall be authorized to meet as necessary in
order to perform the duties imposed upon it. Legislative members of
the Task Force shall be reimbursed for travel expenses pursuant to
the provisions of Section 456 of Title 74 of the Oklahoma Statutes.
Other members of the Task Force shall be reimbursed as provided by
the appointing authority.
F. The Task Force shall conduct a study regarding all tax
credits that are transferable to any person or entity other than the
entity to whom or to which the credits are initially made available
pursuant to the statute creating the credit. The study shall
include, but shall not be limited to:
1. The justification for the enactment of transferable tax
credits based upon the relevant economics of the applicable industry
or economic sector affected;
2. The economic impact related to the utilization of
transferable tax credits;
3. Analysis of the utilization of the credits by tax credit
purchasers; and
4. Such other matters related to the tax credit as the Task Force
deems relevant.
G. The Task Force shall be subject to the provisions of:
1. The Oklahoma Open Meeting Act; and
2. The Oklahoma Open Records Act.
H. Staff assistance for the Task Force shall be provided by the
staff of the Oklahoma House of Representative and the State Senate.
I. The Task Force shall produce a final written report of its
findings and any recommendations regarding transferable tax credits.
The report shall be submitted to the Governor, the Speaker of the
Oklahoma House of Representatives and the President Pro Tempore of
the State Senate not later than December 31, 2009.
J. The provisions of this section shall cease to have the force
and effect of law and the Task Force shall terminate effective
January 1, 2010.
Added by Laws 2009, c. 325, § 1.
§68-2357.12. Renumbered as § 2358.2 of this title by Laws 1986, c.
269, § 23, operative July 1, 1986.
§68-2357.13. Repealed by Laws 2013, c. 363, § 5, eff. Jan. 1, 2014.
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§68-2357.14. Renumbered as § 2-11-301 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-2357.15. Renumbered as § 2-11-302 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-2357.16. Renumbered as § 2-11-303 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-2357.17. Renumbered as § 2-11-304 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-2357.18. Renumbered as § 2-11-305 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-2357.19. Renumbered as § 2-11-306 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-2357.20. Renumbered as § 2-11-307 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-2357.21. Repealed by Laws 1993, c. 145, § 362, eff. July 1, 1993
and by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.22. Credit for investments in qualified clean-burning motor
fuel vehicle property or qualified electric motor vehicle property.
A. For tax years beginning before December 31, 2027, there shall
be allowed a one-time credit against the income tax imposed by
Section 2355 of this title for investments in qualified clean-burning
motor vehicle fuel property placed in service after December 31,
1990.
B. As used in this section, "qualified clean-burning motor
vehicle fuel property" means:
1. Equipment installed to modify a motor vehicle which is
propelled by gasoline or diesel fuel so that the vehicle may be
propelled by compressed natural gas, liquefied natural gas or
liquefied petroleum gas. The equipment covered by this paragraph
must:
a. be new, not previously used to modify or retrofit any
vehicle propelled by gasoline or diesel fuel and be
installed by an alternative fuels equipment technician
who is certified in accordance with the Alternative
Fuels Technician Certification Act,
b. meet all Federal Motor Vehicle Safety Standards set
forth in 49 CFR 571, or
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c. for any commercial motor vehicle (CMV), follow the
Federal Motor Carrier Safety Regulations or Oklahoma
Intrastate Motor Carrier Regulations;
2. A motor vehicle originally equipped so that the vehicle may
be propelled by compressed natural gas, or liquefied natural gas or
liquefied petroleum gas but only to the extent of the portion of the
basis of such motor vehicle which is attributable to the storage of
such fuel, the delivery to the engine of such motor vehicle of such
fuel, and the exhaust of gases from combustion of such fuel;
3. Property, not including a building and its structural
components, which is:
a. directly related to the delivery of compressed natural
gas, liquefied natural gas or liquefied petroleum gas
for commercial purposes or for a fee or charge, into
the fuel tank of a motor vehicle propelled by such fuel
including compression equipment and storage tanks for
such fuel at the point where such fuel is so delivered
but only if such property is not used to deliver such
fuel into any other type of storage tank or receptacle
and such fuel is not used for any purpose other than to
propel a motor vehicle or
b. a metered-for-fee, public access recharging system for
motor vehicles propelled in whole or in part by
electricity. The property covered by this paragraph
must be new, and must not have been previously
installed or used to refuel vehicles powered by
compressed natural gas, liquefied natural gas or
liquefied petroleum gas or electricity.
Any property covered by this paragraph which is related to the
delivery of hydrogen into the fuel tank of a motor vehicle shall only
be eligible for tax year 2010; or
4. Property which is directly related to the compression and
delivery of natural gas from a private home or residence, for
noncommercial purposes, into the fuel tank of a motor vehicle
propelled by compressed natural gas. The property covered by this
paragraph must be new and must not have been previously installed or
used to refuel vehicles powered by natural gas.
C. As used in this section, "motor vehicle" means a motor
vehicle originally designed by the manufacturer to operate lawfully
and principally on streets and highways.
D. The credit provided for in subsection A of this section shall
be as follows:
1. For the qualified clean-burning motor vehicle fuel property
defined in paragraph 1 or 2 of subsection B of this section, the
amount of the credit shall be as follows based upon gross vehicle
weight of the qualified vehicle:
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a. for vehicles up to or below six thousand (6,000)
pounds, the credit shall be a maximum of Five Thousand
Five Hundred Dollars ($5,500.00),
b. for vehicles between six thousand one (6,001) pounds to
ten thousand (10,000) pounds, the credit shall be a
maximum amount of Nine Thousand Dollars ($9,000.00),
c. for vehicles of ten thousand one (10,001) pounds, but
not in excess of twenty-six thousand five hundred
(26,500) pounds, the credit shall be a maximum amount
of Twenty-six Thousand Dollars ($26,000.00), and
d. for vehicles in excess of twenty-six thousand five
hundred one (26,501) pounds, the credit shall be a
maximum amount of Fifty Thousand Dollars ($50,000.00);
2. For qualified clean-burning motor vehicle fuel property
defined in paragraph 3 of subsection B of this section, a per-
location credit of forty-five percent (45%) of the cost of the
qualified clean-burning motor vehicle fuel property; and
3. For qualified clean-burning motor vehicle fuel property
defined in paragraph 4 of subsection B of this section, a per-
location credit of the lesser of fifty percent (50%) of the cost of
the qualified clean-burning motor vehicle fuel property or Two
Thousand Five Hundred Dollars ($2,500.00).
E. In cases where no credit has been claimed pursuant to
paragraph 1 of subsection D of this section by any prior owner and in
which a motor vehicle is purchased by a taxpayer with qualified
clean-burning motor vehicle fuel property installed by the
manufacturer of such motor vehicle and the taxpayer is unable or
elects not to determine the exact basis which is attributable to such
property, the taxpayer may claim a credit in an amount not exceeding
the lesser of ten percent (10%) of the cost of the motor vehicle or
One Thousand Five Hundred Dollars ($1,500.00).
F. If the tax credit allowed pursuant to subsection A of this
section exceeds the amount of income taxes due or if there are no
state income taxes due on the income of the taxpayer, the amount of
the credit not used as an offset against the income taxes of a
taxable year may be carried forward, in order, as a credit against
subsequent income tax liability for a period not to exceed five (5)
years. The tax credit authorized pursuant to the provisions of this
section shall not be used to reduce the tax liability of the taxpayer
to less than zero (0).
G. A husband and wife who file separate returns for a taxable
year in which they could have filed a joint return may each claim
only one-half (1/2) of the tax credit that would have been allowed
for a joint return.
H. The Oklahoma Tax Commission is herein empowered to promulgate
rules by which the purpose of this section shall be administered,
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including the power to establish and enforce penalties for violations
thereof.
I. Notwithstanding the provisions of Section 2352 of this title,
for the fiscal year beginning on July 1, 2014, and each fiscal year
thereafter, the Tax Commission shall calculate an amount that equals
five percent (5%) of the cost of qualified clean-burning motor
vehicle fuel property as provided for in paragraph 1 of subsection D
of this section for tax year 2012. For each subsequent fiscal year
thereafter, the Tax Commission shall perform the same computation
with respect to the second tax year preceding the beginning of each
subsequent fiscal year. The Tax Commission shall then transfer an
amount equal to the amount calculated in this subsection from the
revenue derived pursuant to the provisions of subsections A, B and E
of Section 2355 of this title to the Compressed Natural Gas
Conversion Safety and Regulation Fund created in Section 130.25 of
Title 74 of the Oklahoma Statutes.
J. For the taxable year beginning January 1, 2020, and each
taxable year thereafter, the total amount of credits authorized by
this section used to offset tax shall be adjusted annually to limit
the annual amount of credits to Twenty Million Dollars
($20,000,000.00). The Tax Commission shall annually calculate and
publish by the first day of the affected taxable year a percentage by
which the credits authorized by this section shall be reduced so the
total amount of credits used to offset tax does not exceed Twenty
Million Dollars ($20,000,000.00) per year. The formula to be used
for the percentage adjustment shall be Twenty Million Dollars
($20,000,000.00) divided by the credits claimed in the second
preceding year, with respect to any changes to the future of the
credit.
K. Pursuant to subsection J of this section, in the event the
total tax credits authorized by this section exceed Twenty Million
Dollars ($20,000,000.00) in any calendar year, the Tax Commission
shall permit any excess over Twenty Million Dollars ($20,000,000.00)
but shall factor such excess into the percentage adjustment formula
for subsequent years with respect to any changes to the future of the
credit.
L. The Tax Commission shall notify the Office of the State
Secretary of Energy and Environment at any time when the amount of
claims for credits allowed pursuant to this section reaches eighty
percent (80%) of the total annual limit provided in subsection J of
this section. Upon such notification, the Secretary shall provide
notice to the Governor, President Pro Tempore of the Senate and
Speaker of the House of Representatives.
Added by Laws 1990, c. 336, § 12, operative July 1, 1990. Amended by
Laws 1991, c. 235, § 20, eff. July 1, 1991; Laws 1992, c. 306, § 1,
eff. July 1, 1992; Laws 1993, c. 271, § 1, eff. July 1, 1993; Laws
1994, c. 2, § 25, emerg. eff. March 2, 1994; Laws 1994, c. 379, § 1,
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eff. Sept. 1, 1994; Laws 1996, c. 224, § 1, eff. Nov. 1, 1996; Laws
2001, c. 144, § 2, eff. Nov. 1, 2001; Laws 2003, c. 186, § 1, eff.
Nov. 1, 2003; Laws 2008, c. 126, § 1, eff. Jan. 1, 2009; Laws 2009,
c. 308, § 1, eff. Jan. 1, 2010; Laws 2010, c. 418, § 3, emerg. eff.
June 9, 2010; Laws 2013, c. 95, § 2, emerg. eff. April 22, 2013; Laws
2013, c. 252, § 1, eff. Nov. 1, 2013; Laws 2014, c. 328, § 12; Laws
2019, c. 298, § 1, eff. Jan. 1, 2020.
NOTE: Laws 1993, c. 224, § 9 repealed by Laws 1994, c. 2, § 34,
emerg. eff. March 2, 1994.
§68-2357.23. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.24. Repealed by Laws 2013, c. 363, § 6, eff. Jan. 1, 2014.
§68-2357.25. Credit for investments in agricultural processing
cooperatives, ventures and marketing associations.
A. Except as provided in subsection K of this section, there
shall be allowed a credit against the tax imposed by Section 2355 of
this title for direct investments by Oklahoma agricultural producers
in Oklahoma producer-owned agricultural processing cooperatives,
Oklahoma producer-owned agricultural processing ventures, or Oklahoma
producer-owned agricultural processing marketing associations or
Oklahoma-owned and -based corporations or partnerships created and
designed to develop and advance the production, processing, handling
and marketing of agricultural commodities grown, made or manufactured
in Oklahoma. For calendar years 1997 and 1998, the amount of the
credit shall be thirty percent (30%) of the amount of the investment
by the Oklahoma agricultural producer in Oklahoma producer-owned
agricultural processing cooperatives, ventures, or marketing
associations.
B. For calendar year 2006, and all subsequent years, the credit
percentage, not to exceed thirty percent (30%), shall be adjusted
annually so that the total estimate of credits does not exceed Two
Million Dollars ($2,000,000.00) annually. The formula to be used for
the percentage adjustment shall be thirty percent (30%) times Two
Million Dollars ($2,000,000.00) divided by the credits claimed in the
preceding year. In no event shall the credit be claimed more than
once by a taxpayer each taxable year.
C. In the event the total tax credits authorized by this section
exceed Two Million Dollars ($2,000,000.00) in any calendar year, the
Oklahoma Tax Commission shall permit any excess over Two Million
Dollars ($2,000,000.00) but shall factor such excess into the
percentage adjustment formula for subsequent years.
D. The credits authorized by this act may only be claimed for
taxable years beginning after December 31, 2006, and ending before
January 1, 2010. The provisions of this subsection shall not be
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applicable to any credits earned, but not utilized, prior to the
effective date of this act.
E. If the credit allowed pursuant to this section exceeds the
amount of state income taxes due or if there are no state income
taxes due on the income of the taxpayer, the amount of credit allowed
but not used in any taxable year may be carried forward as a credit
against subsequent income tax liability for a period not exceeding
six (6) years following the year in which the investment was
originally made.
F. The Oklahoma Tax Commission shall have the authority to
prescribe forms for purposes of claiming the credit authorized by
this section. The Oklahoma Tax Commission shall be authorized to
conduct an investigation of the relevant facts as may be required in
order to verify the eligibility of a claimant to receive a credit for
any applicable income tax year.
G. 1. For any taxable year during which a taxpayer sells or
otherwise disposes of the ownership interest for which a tax credit
has previously been allowed to the taxpayer or for which a tax credit
will be allowed to the taxpayer for the year in which the sale or
other disposition of the ownership interest is made, the taxpayer
shall be required to reduce the cost of the ownership interest in the
Oklahoma producer-owned agricultural processing cooperative, venture,
or marketing association, as reported upon the applicable income tax
return, by the amount of the tax credit which has previously been
granted or for which the taxpayer is claiming credit if the credit is
allowable for the year during which the sale or other disposition is
made.
2. If a taxpayer sells or otherwise disposes of an ownership
interest in the Oklahoma producer-owned agricultural processing
cooperative, venture, or marketing association for which the tax
credit authorized by this section may be taken in a taxable year
following the year in which the ownership interest in the Oklahoma
producer-owned agricultural processing cooperative, venture, or
marketing association is sold or otherwise disposed of, the credit
authorized by this section shall be reduced to account for the prior
sale or other disposition.
H. The tax credit authorized by this section shall not be
available or taken for any calendar year during which the claimant of
the credit received any incentive payments pursuant to the Oklahoma
Quality Jobs Program Act or the Saving Quality Jobs Act.
I. As used in this section:
1. “Direct investment” means the payment of money in an Oklahoma
producer-owned agricultural processing cooperative, venture, or
marketing association or the transfer of any form of economic value,
whether tangible or intangible, other than money;
2. “Oklahoma producer-owned agricultural processing cooperative”
means a legal entity in the nature of a partnership or business
9)!&#!%!%%"'%)6! !2!(# 7!8;1,
undertaking agricultural transactions or agricultural commercial
enterprises for mutual profit which are owned and controlled by
Oklahoma agricultural producers. An Oklahoma producer-owned
agricultural processing cooperative requires a community of interest
in the performance of the undertaking, transaction or enterprise, a
right to direct and govern the policy in connection therewith and the
duty, which may be altered by agreement, to share both in profit and
losses. The term does not include a cooperative that provides only,
and nothing more than, storage, cleaning, or transportation of
agricultural commodities;
3. “Oklahoma producer-owned agricultural processing venture”
means a legal entity in the nature of a corporation or company
organized to invest in or operate an agricultural commodity
processing facility operated primarily for the processing or
production of marketable products from agricultural commodities. The
term shall include a dairy operation that requires a depreciable
investment of at least Two Hundred Fifty Thousand Dollars
($250,000.00) and which produces milk from dairy cows. The term does
not include a venture that provides only, and nothing more than,
storage, cleaning, or transportation of agricultural commodities;
4. “Oklahoma producer-owned agricultural processing marketing
association” means:
a. a legal entity owned by Oklahoma producers of
agricultural commodities and organized to jointly
market agricultural commodities and/or natural-
resource-based recreational activities, facilitate the
marketing process and to promote and stimulate the
processing, sales, and marketing of agricultural
commodities, or
b. a legal entity owned by Oklahoma producers of
agricultural commodities and organized for collective
marketing and improvement of land for natural-resource-
based recreational activity;
The term does not include a marketing association that provides only,
and nothing more than, storage, cleaning, or transportation of
agricultural commodities;
5. “Oklahoma agricultural producer” means any person who
produces agricultural commodities in this state;
6. “Oklahoma-based corporation or partnership” means an entity
created pursuant to the Oklahoma General Corporation Act or other
laws of the state authorizing either a corporate entity or an entity
with limited liability or any form of partnership, whether general,
limited or other authorized partnership form having either its
principal place of business within the state or substantial assets
located within the state. For the purpose of this section, the
definition contained in this paragraph shall not include an Oklahoma-
based corporation or partnership that engages only in and nothing
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more than the storage, cleaning, and transportation or production of
its commodity;
7. “Agricultural commodities” means a farm or ranch product,
including but not limited to, wheat, corn, soybeans, cotton, timber,
cattle, hogs, sheep, horses, poultry, animals of the families
bovidae, cervidae and antilocapridae or birds of the ratite group
produced in farming or ranching operations or a product of such crop
or livestock in its unmanufactured state such as ginned cotton, wool-
dip, maple syrup, milk and eggs, or any other commodity listed under
any Industry Group Number under Major Group 20 of Division D of the
Standard Industrial Classification (SIC) Manual; and
8. “Dairy operation” means and includes equipment and facilities
to store and prepare feed, dairy cows, milking parlors, bulk cooling
tanks, buildings, and all such depreciable investment commonly
utilized in the dairy industry.
J. For purposes of this section, an agricultural commodity shall
be deemed to be produced within this state if it is substantially
produced, by any person, partnership, company, association or
corporation:
1. Authorized to do and doing business under the laws of this
state;
2. Paying all taxes duly assessed; and
3. Domiciled within this state by having a location of
production within this state.
K. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
Added by Laws 1996, c. 296, § 2, eff. Jan. 1, 1997. Amended by Laws
1998, c. 385, § 8, eff. Nov. 1, 1998; Laws 1999, c. 1, § 22, emerg.
eff. Feb. 24, 1999; Laws 2000, c. 271, § 2, eff. Nov. 1, 2000; Laws
2005, c. 299, § 1, eff. Jan. 1, 2006; Laws 2010, c. 327, § 7, eff.
July 1, 2010.
NOTE: Laws 1998, c. 364, § 21 repealed by Laws 1999, c. 1, § 45,
emerg. eff. Feb. 24, 1999.
§68-2357.25A. Credit for recreational activities groups that are
Oklahoma producer-owned agricultural processing marketing
associations.
No recreational activities group as described in Section 1 of
this act can receive more than fifteen percent (15%) of the tax
credits allowed pursuant to Section 1 of this act.
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Added by Laws 2005, c. 299, § 2, eff. Jan. 1, 2006.
§68-2357.26. Repealed by Laws 2013, c. 363, § 7, eff. Jan. 1, 2014.
§68-2357.27. Tax credits - Child care services - Definitions
A. Except as otherwise provided by subsection E or F of this
section, for tax years beginning after December 31, 1998, and ending
before January 1, 2016, there shall be allowed a credit against the
tax imposed by Section 2355 of this title for eligible expenses
incurred by entities primarily engaged in the business of providing
child care services.
B. As used in this section, "eligible expenses" means amounts
paid by an entity primarily engaged in the business of providing
child care services for expenses incurred by the entity to comply
with the standards promulgated by a national accrediting association
recognized by the Department of Human Services and which would not
have been incurred by the entity to comply with the Oklahoma Child
Care Facilities Licensing Act.
C. The credit allowed by subsection A of this section shall be
twenty percent (20%) of the amount of eligible expenses. Such credit
shall not be allowed for any amounts for which the entity claims or
receives an income tax credit, exemption or deduction.
D. Any credits allowed but not used in any tax year may be
carried over in order to each of the four (4) tax years following the
year of qualification.
E. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
F. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after January 1, 2016, for
which the credit would otherwise be allowable.
Added by Laws 1998, c. 386, § 5, eff. Nov. 1, 1998. Amended by Laws
2004, c. 347, § 1, eff. Nov. 1, 2004; Laws 2010, c. 327, § 9, eff.
July 1, 2010; Laws 2014, c. 33, § 1, eff. Nov. 1, 2014; Laws 2016, c.
333, § 1, eff. Nov. 1, 2016.
§68-2357.28. Tax credit for investment in certain enterprises.
A. For tax years beginning after December 31, 1999, and ending
before January 1, 2006, there shall be allowed to an investor making
an eligible investment a credit against the tax imposed by Section
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2355 of this title or Section 624 or 628 of Title 36 of the Oklahoma
Statutes. The credit may be used in the payment of estimated tax
payments for the tax imposed by Section 624 or 628 of Title 36 of the
Oklahoma Statutes. The credit shall be in the amount as set forth in
subsection F or subsection G of this section.
B. The amount of the credit shall be freely transferable to
subsequent transferees.
C. As used in this section:
1. “Capitalization commitment” means a commitment by a local
governmental entity or the beneficiary thereof or a private entity,
whether by contract, letter agreement, terms sheet, resolution,
ordinance or indenture, to provide funds, personal property or real
property. “Capitalization commitment” shall also mean, in
circumstances limited to local governmental entities or the
beneficiaries thereof, a moral obligation to provide future funds,
personal property or real property. To provide funds, personal
property or real property shall include but not be limited to
providing funds, personal property or real property in the form of
security or collateral to a financial lending institution in support
of a revenue bond, financial obligation or other evidence of
indebtedness issued by a local governmental entity;
2. “Consideration” means, but is not limited to, funds, personal
property or real property and a capitalization commitment. The source
of the funds or other consideration for the investment by one or more
investors, whether borrowed or otherwise, is irrelevant to the
determination of investment. The fact that the source of funds is
from a financial lending institution is also irrelevant;
3. “Eligible investment” means an investment made during a
period not earlier than January 1, 1999, and not later than December
31, 2002, in an establishment that:
a. is headquartered in this state or is ultimately
controlled by an entity headquartered in this state,
and
b. has been certified by the Tax Commission as meeting the
following minimum qualifications:
(1) is included within the definition of “basic
industry” as set forth in division (7) of
subparagraph a of paragraph 1 of subsection A of
Section 3603 of this title and has been
preapproved by the Oklahoma Department of Commerce
to receive incentive payments pursuant to the
Oklahoma Quality Jobs Program Act. The Department
shall establish a process for preapproval of
applicants for the Oklahoma Quality Jobs Program
Act for purposes of this division. The
establishment shall agree to submit such
information as may be required under this section
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and the Oklahoma Quality Jobs Program Act to allow
the Tax Commission to determine the amount of the
tax credit allowed pursuant to the provisions of
this section and the amount of incentive payments
allowed pursuant to the Oklahoma Quality Jobs
Program Act for purposes of subsection K of this
section,
(2) can demonstrate commitments from not fewer than
twenty entities doing business in this state, with
such entities having in the aggregate not fewer
than two thousand (2,000) employees in this state,
to utilize the services of the establishment in
providing nonstop air transportation from this
state to either the west coast or the east coast
of the continental United States, or both. Such
commitments, at a minimum, may be in the form of
letters of intent from authorized officers of such
entities which demonstrate a best efforts
intention to utilize such air transportation, and
(3) has received, or its parent has received, in
calendar year 2000, a capitalization commitment in
the amount of Fifteen Million Dollars
($15,000,000.00) or more from a local governmental
entity, including, but not limited to, proceeds
from the issuance of revenue bonds, financial
obligations or other evidences of indebtedness.
For purposes of this section and notwithstanding
the provisions of Section 5063.4 of Title 74 of
the Oklahoma Statutes or any other laws to the
contrary, credit enhancement by the Oklahoma
Development Finance Authority through the Oklahoma
Credit Enhancement Reserve Fund up to a maximum of
Ten Million Dollars ($10,000,000.00) is hereby
authorized, subject to the approval of the
Executive and Legislative Bond Oversight
Commissions pursuant to Section 695.8 of Title 62
of the Oklahoma Statutes.
The tax credit provided for in this section shall not be allowed
or, if already claimed, shall be subject to recapture as to the
initial investor or investors, with respect to any amount of an
eligible investment made which is subsequently refunded or returned
to any such investor. Any such recapture shall only apply as to that
part of the tax credit as is associated with the investment refunded
or returned.
Nothing in this subsection is intended to preclude an
establishment from utilizing a wholly owned operating subsidiary to
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perform its flight and related operations to meet the requirements of
this subsection;
4. “Financial lending institution” means a bank, credit union,
savings and loan association, commercial finance company,
governmental agency, including a local governmental entity, or other
entity principally engaged in investment, finance or the extension of
credit;
5. “Investment” means:
a. consideration in exchange for “equity and near-equity”,
which means common stock, preferred stock, warrants or
other rights to subscribe to stock or its equivalent,
or an interest in a partnership, or debt that is
convertible into or entitles the holder to receive upon
its exercise, common stock, preferred stock, royalty
interest, or an interest in a partnership,
b. consideration in exchange for “subordinated debt”,
which means indebtedness that is subordinated to other
indebtedness of the issuer that has been issued or is
to be issued by a financial lending institution, or
c. in the event of a capitalization commitment in
accordance with the provisions of division (3) of
subparagraph b of paragraph 3 of this subsection, where
a local governmental entity is issuing revenue bonds,
financial obligations or other evidences of
indebtedness, the receipt of the proceeds of revenue
bonds, financial obligations or other evidences of
indebtedness issued by a local governmental entity by a
parent and the subsequent transfer of such proceeds to
a subsidiary.
Actions of the establishment to use such investment as security for
indebtedness, even as security for that of another party, or other
uses, in compliance with loan covenants as may be part of the
issuance of revenue bonds, financial obligations or other evidences
of indebtedness, shall not affect its determination as investment.
For purposes of this section, investment in an establishment which
has, prior to February 1, 2002, been certified as an eligible
establishment by the Oklahoma Tax Commission shall be treated as an
eligible investment in such establishment for the purposes of this
section with respect to investment made at any time prior to December
31, 2002;
6. “Investor” means one or more persons or entities making an
investment and may include one or more persons or entities which
wholly or partially own the establishment;
7. “Local governmental entity” includes, but is not limited to,
a county, municipality or public authority or trust created pursuant
to the provisions of Title 60 of the Oklahoma Statutes of which the
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state or a county or municipality or combination thereof, is a
beneficiary, or a state public authority or trust;
8. “Parent” means an entity owning fifty-one percent (51%) or
more of the establishment and providing fifty-one percent (51%) or
more of the investment in the establishment; and
9. “Subsequently refunded or returned”, when used in reference
to an eligible investment, means an actual redemption by the
establishment of the securities or other indicia of ownership in the
establishment received by the investor from the investor’s
investment. The failure to allow the tax credits or the recapture of
the tax credits shall not affect the validity of the tax credits in
the hands of a transferee of the initial investor or subsequent
transferees. Provided, an investor to whom an eligible investment,
or portion thereof, is subsequently refunded or returned shall
reimburse the Tax Commission the amount of any credits claimed by a
transferee with respect to any such amount.
D. The Oklahoma Tax Commission shall:
1. Certify, upon request of an authorized agent or
representative of an establishment described by paragraph 3 of
subsection C of this section, that the establishment for which the
certification is sought meets the qualifications prescribed by
subparagraphs a and b of paragraph 3 of subsection C of this section.
The certification shall be in writing and signed by an authorized
representative of the Tax Commission and, for purposes of determining
qualifications of an establishment in which an investment may be
eligible for the credit authorized by this section, shall be binding
upon the Tax Commission; and
2. Issue a certificate to an investor that provides adequate
documentation of qualification for the credit authorized by this
section even if the credit may not be claimed until after the date
upon which the certificate is requested. Upon issuance, the
certificate shall be evidence that an investor or a transferee of the
original tax credit claimant submitting the certificate, or a
certified copy thereof, with the relevant tax return or other form,
has the legal right to exercise the credit in order to reduce the
relevant tax liability for the period authorized by this section.
E. Except as otherwise provided by subsection G of this section,
the maximum amount of all eligible investments for which tax credits
may be claimed under this section shall be Thirty Million Dollars
($30,000,000.00). If more than one establishment has been certified
by the Tax Commission pursuant to the provisions of subsection D of
this section, the investors in the first such approved establishment
shall be entitled to a credit based on their investment of the lesser
of their eligible investment or Thirty Million Dollars
($30,000,000.00). The investors in the second such approved
establishment shall then be entitled to a credit based on their
investment of the lesser of their eligible investment or the
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difference between the total eligible investments in previously
approved establishments and Thirty Million Dollars ($30,000,000.00).
This same procedure will apply for all subsequently approved
establishments. If the amount of eligible investments exceeds the
amount upon which the tax credit may be claimed as provided herein,
investors shall be allowed a share of the amount of the available tax
credit in order of the dates of receipt of certification therefor by
the Tax Commission pursuant to the provisions of paragraph 1 of
subsection D of this section.
F. Except as otherwise provided by subsection G of this section,
the amount of the tax credit allowed pursuant to the provisions of
subsection A of this section shall be deemed fully earned as of the
date of the investment and shall be fully redeemable as follows:
Period for Which
Tax Liability Determined Credit Allowed
Tax year subsequent to year
of eligible investment
10.6% of eligible
investment
Second tax year subsequent to
year of eligible investment
11.236% of eligible
investment
Third tax year subsequent to
year of eligible investment
11.910% of eligible
investment
Fourth tax year subsequent to
year of eligible investment
12.624% of eligible
investment
Fifth tax year subsequent to
year of eligible investment
13.381% of eligible
investment
G. An investor or investors in an establishment that has been
approved for eligible investment before February 1, 2002, pursuant to
this section may receive tax credits for additional eligible
investment in such establishment during the period February 1, 2002,
to December 31, 2002. The maximum amount of such additional tax
credits shall be Nine Million Dollars ($9,000,000.00) with One Dollar
($1.00) of tax credit for each dollar of eligible investment. The
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tax credits authorized by this subsection may not be used as to any
tax obligation that is due and payable before July 1, 2003. For the
fiscal year that begins July 1, 2003, and the fiscal years that begin
July 1, 2004, and July 1, 2005, the amount of tax credits authorized
by this subsection which may be used during each such fiscal year
shall not exceed Three Million Dollars ($3,000,000.00).
H. The amount of a tax credit allowed pursuant to the provisions
of this section not used in payment of taxes due in the year in which
such credit is allowed pursuant to subsection F or subsection G of
this section may be used as a credit against subsequent tax liability
of the investor or a subsequent transferee for a period not to exceed
three (3) years from the year in which such credit is originally
allowed.
I. The Tax Commission shall develop and issue appropriate forms
and instructions to enable investors to claim the tax credit provided
for in this section.
J. An establishment in which an eligible investment qualifies
for a credit authorized by this section shall maintain a record of
investment made in the establishment for the period beginning January
1, 1999, and ending December 31, 2002. The establishment shall
notify the Tax Commission not later than January 31, 2003, of the
total investment amount for such period. Any such establishment
which refunds or returns any amount of an eligible investment to the
investor shall notify the Tax Commission in writing of the amount and
recipient of such refunds or returns. The Tax Commission shall
compute the maximum amount of credits available pursuant to this
section based upon notification of the investment amount transmitted
to the Tax Commission by the establishment.
K. An establishment in which eligible investments qualify for
the tax credit authorized by this section shall not receive incentive
payments pursuant to the Oklahoma Quality Jobs Program Act until the
total of such incentive payments the establishment would otherwise
receive exceeds the total amount of the credit authorized by this
section as computed by the Tax Commission pursuant to subsection J of
this section. The amount of incentive payments for any year which
would otherwise be paid to the establishment shall be distributed as
follows:
1. If the amount of such incentive payments equals or exceeds
the amount of the tax credit for the year, the amount of such
payments which is equal to the amount of the tax credit shall be
apportioned as if collected from the tax imposed by Section 2355 of
this title or Section 624 or 628 of Title 36 of the Oklahoma Statutes
according to which tax the credit was claimed against. The amount of
such payments which is in excess of the amount of the tax credit
shall be retained by the Tax Commission to be paid as provided for in
this paragraph for subsequent years for which the tax credit is
allowed to the establishment;
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2. If the amount of such incentive payments and any amount
retained by the Tax Commission pursuant to the provisions of
paragraph 1 of this subsection is less than the amount of the tax
credit for the year, notwithstanding the provisions of Section 1727
of Title 69 of the Oklahoma Statutes, the Tax Commission shall
withhold a portion of the taxes levied and collected pursuant to the
provisions of paragraph 1 of subsection A of Section 500.4 of this
title which would otherwise be paid over to the Department of
Transportation by the Oklahoma Turnpike Authority pursuant to the
provisions of paragraph (2) of subsection (d) of Section 1730 of
Title 69 of the Oklahoma Statutes equal to the amount of the deficit.
The Tax Commission shall apportion all funds collected pursuant to
the provisions of this paragraph as if collected from the tax imposed
by Section 2355 of this title or Section 624 or 628 of Title 36 of
the Oklahoma Statutes according to the tax against which the credit
was claimed; and
3. If any amount is withheld by or paid to the Tax Commission
pursuant to the provisions of paragraph 2 of this subsection, the
amount of incentive payments to be subsequently paid to the
establishment shall be apportioned by the Tax Commission to the
Department of Transportation until such time as all amounts paid
pursuant to the provisions of paragraph 2 of this subsection are
repaid.
L. No establishment in which investments qualify for the credit
allowed by this section shall be entitled to payment of any incentive
payments accrued prior to the date authorized for the initial
eligible investments as provided by this subsection.
M. Notwithstanding the provisions of this section, an
establishment may, prior to the issuance of a tax credit with respect
to the establishment pursuant to the provisions of this section,
elect to receive incentive payments pursuant to the provisions of the
Oklahoma Quality Jobs Program Act in lieu of allowing the tax credit
provided for herein, in which case it shall so notify the Tax
Commission in writing and the provisions of this section shall not be
applicable.
N. Except as provided by subsection M of this section, no
establishment defined by this section which would otherwise qualify
for incentive payments pursuant to the provisions of the Oklahoma
Quality Jobs Program Act may receive such incentive payments prior to
January 1, 2001.
O. No establishment defined by this section which has made
application to the Oklahoma Department of Commerce or which has
executed any agreement with the Oklahoma Department of Commerce with
respect to the receipt of incentive payments pursuant to the
provisions of the Oklahoma Quality Jobs Program Act or which has
received any incentive payment pursuant to the Oklahoma Quality Jobs
Program Act prior to June 9, 1999, may be certified as an
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establishment for purposes of determining eligibility for the credit
authorized by this section.
Added by Laws 1999, c. 393, § 1, emerg. eff. June 9, 1999. Amended
by Laws 2000, c. 339, § 19, emerg. eff. June 6, 2000; Laws 2002, c.
18, § 1, emerg. eff. Feb. 19, 2002.
§68-2357.29. Repealed by Laws 2013, c. 363, § 8, eff. Jan. 1, 2014.
§68-2357.29A. Credit for homeowners who lost primary residence to
natural disasters in 2012 and 2013.
A. For tax years beginning after December 31, 2011, there shall
be allowed a credit against the tax imposed by Section 2355 of this
title for owners of residential real property whose primary residence
was damaged or destroyed in a natural disaster occurring after
December 31, 2011, for which a Presidential Major Disaster
Declaration was issued or with respect to calendar year 2012 or
calendar year 2013 for which a Presidential Major Disaster
Declaration was not issued. The amount of the credit shall be the
difference between the ad valorem property tax paid on such property
and improvements in the year prior to the damage or destruction and
the amount of ad valorem property tax paid on the property and
improvements the first year after the improvement is complete. For
purposes of this credit, the amount of ad valorem property tax paid
the first year after the improvement is complete shall be based on
the same or similar square footage as the property which was damaged
or destroyed. For purposes of this section, a "natural disaster"
shall mean a weather or fire event for which a Presidential Major
Disaster Declaration was issued; provided, however, that with respect
to damage or destruction caused by a tornado occurring in calendar
year 2012 or in calendar year 2013 for which a Presidential Major
Disaster Declaration was not issued, "natural disaster" shall include
such a tornadic occurrence.
B. The credit shall be a refundable credit. Eligible taxpayers
shall be entitled to claim this credit for five (5) consecutive
years. After the first year the credit is claimed, the amount of the
credit shall be eighty percent (80%) of the previous year's credit.
If the taxpayer has no income tax liability, or if the credit exceeds
the amount of the income tax liability of the taxpayer, then the
credit, or balance thereof, shall be paid out in the same manner and
out of the same fund as refunds of income taxes are paid and so much
of the fund as is necessary for such purposes is hereby appropriated.
C. In order to qualify for this credit:
1. The property shall have been damaged or destroyed by a
natural disaster after December 31, 2011;
2. The property shall be within an area which has been declared
a federal disaster area;
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3. The property shall be the primary residence of the owner both
prior to and after the natural disaster;
4. The owner shall have been granted a homestead exemption or be
eligible to claim a homestead exemption both prior to and after the
natural disaster;
5. The primary residence shall be repaired or rebuilt on the
same property as it existed prior to the natural disaster; and
6. The primary residence shall be repaired or rebuilt and used
as the primary residence no later than December 31, 2015, with
respect to the calendar year 2012 or 2013 natural disaster and no
later than thirty-six (36) months after the date of any natural
disaster occurring on or after January 1, 2014.
D. The credit shall not be allowed if the property is
transferred or title is changed or conveyed as defined in Section
2802.1 of this title. Any credit claimed and allowed prior to the
transfer of the property or the change or conveyance of title shall
not be affected.
E. The Oklahoma Tax Commission shall promulgate any necessary
rules and develop any necessary forms to implement the provisions of
this section.
Added by Laws 2013, c. 370, § 5, emerg. eff. May 29, 2013. Amended
by Laws 2014, c. 215, § 5, emerg. eff. May 2, 2014; Laws 2014, c.
329, § 5, emerg. eff. May 23, 2014.
§68-2357.30. Repealed by Laws 2013, c. 363, § 9, eff. Jan. 1, 2014.
§68-2357.31. Definitions - Tax credit.
A. As used in this section:
1. "Eligible employer" means a corporation, partnership or
proprietorship which:
a. has done business in this state for at least one (1)
year,
b. has not provided group health insurance within the
fifteen (15) months preceding the offer to purchase
group health insurance which meets the requirements of
this section to at least seventy-five percent (75%) of
its employees who are residents of this state and work
an average of twenty-four (24) hours or more a week for
said employer,
c. offers the state-certified, basic health benefits plan
to all eligible employees who worked an average of
twenty-four (24) hours or more a week during the
calendar quarter preceding the purchase of the policy,
and
d. pays fifty percent (50%) or more of the full cost of
the portion of the premium attributable to the employee
for which the employer is claiming credit;
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2. "Eligible employee" means an employee, proprietor or partner
of the employer claiming the credit who:
a. is a resident of this state,
b. works an average of twenty-four (24) hours a week or
more for the employer, and
c. was not covered by a group health insurance policy or
plan offered by the same employer within the fifteen
(15) months preceding the offer to purchase health
insurance which meets the requirements of this section;
and
3. "State-certified, basic health benefits plan" means the basic
health benefits plan developed and approved by the Oklahoma Basic
Health Benefits Board prior to July 1, 1995.
B. 1. For tax years beginning after December 31, 1990, there
shall be allowed to an eligible employer a credit against the tax
imposed by Section 2355 of this title for premiums paid on behalf of
each eligible employee who elects to participate in the state-
certified, basic health benefits plan and meets the requirements of
this section. The credit shall be in the amount of Fifteen Dollars
($15.00) a month for each eligible employee and shall be allowed for
two (2) consecutive tax years. Provided, if the tax liability of an
employer pursuant to Section 2355 of this title is less than the
credit to which the employer is entitled pursuant to this section,
the Oklahoma Tax Commission shall pay a refund to the employer. The
refund shall equal the difference between the amount of taxes owed,
after any other credits or exemptions to which the employer is
entitled have been applied to the tax liability, and the credit to
which the employer is entitled pursuant to this section for the tax
year.
2. Tax credits or refunds may not be granted pursuant to the
provisions of this section to an employer who, prior to July 1, 1995,
was not covered under a state-certified, basic health benefits plan.
C. The credit shall not be granted unless the eligible employer
certifies to the Oklahoma Tax Commission that each employee for which
the credit is claimed is participating in the state-certified, basic
health benefits plan.
D. The Oklahoma Tax Commission shall develop and issue
appropriate forms and instructions to enable eligible employers to
claim the tax credit. The Commission shall promulgate rules to
facilitate the implementation of this section.
Added by Laws 1990, c. 338, § 8, eff. July 1, 1990. Amended by Laws
1991, c. 344, § 7, emerg. eff. June 15, 1991; Laws 1995, c. 355, § 3,
eff. July 1, 1995; Laws 1997, c. 109, § 4, eff. Nov. 1, 1997.
§68-2357.32. Repealed by Laws 2013, c. 363, § 10, eff. Jan. 1, 2014.
§68-2357.32A. See the following versions:
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OS 68-2357.32Av1 (HB 1263, Laws 2019, c. 231, § 1).
OS 68-2357.32Av2 (SB 475, Laws 2019, c. 287, § 1).
§68-2357.32B. Credit for manufacturers of small wind turbines.
A. Except as otherwise provided by subsection G of this section,
for tax years beginning on or after January 1, 2003, and ending on or
before December 31, 2012, there shall be allowed a credit against the
tax imposed by Section 624 or 628 of Title 36 of the Oklahoma
Statutes, and actually paid to and placed into the General Revenue
Fund, or Section 2370 or 2355 of this title to Oklahoma manufacturers
of advanced small wind turbines. As used in this section:
1. “Oklahoma manufacturers” means manufacturers who operate
facilities located in this state which have the capability to
manufacture small wind turbine products, including rotor blade and
alternator fabrication; and
2. “Advanced small wind turbines” means upwind, furling wind
turbines that meet the following requirements:
a. have a rated capacity of at least one kilowatt (1 kw)
but not greater than fifty kilowatts (50 kw),
b. incorporate advanced technologies such as new airfoils,
new generators, and new power electronics, variable
speed,
c. at least one unit of each model has undergone testing
at the US-DOE National Wind Technology Center, and
d. comply with appropriate interconnection safety
standards of the Institute of Electrical and
Electronics Engineers applicable to small wind
turbines.
B. The amount of the credit shall be based on the square footage
of rotor swept area of advanced small wind turbines manufactured in
this state. The amount of the credit shall be Twenty-five Dollars
($25.00) per square foot produced in calendar year 2003, Twelve
Dollars and fifty cents ($12.50) per square foot produced in calendar
year 2004, and Twenty-five Dollars ($25.00) per square foot produced
in calendar years 2005 through 2012.
C. The companies claiming the credit allowed by this section
shall agree in advance to allow their production and claims to be
audited by the Oklahoma Tax Commission and they must be able to show
that they have made economic development investments in this state
over the period of time for which the credit was claimed that exceed
the net proceeds from the amount of credit claimed.
D. If the amount of the credits allowed pursuant to this section
exceeds the amount of income taxes due or if there are no state
income taxes due on the income of the taxpayer, the amount of the
credit allowed but not used in any taxable year may be carried
forward as a credit against subsequent income tax liability for a
period not exceeding ten (10) years.
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E. The amount of the credit allowed but not used shall be freely
transferable at any time during the ten (10) years following the year
of qualification. Any person to whom or to which a tax credit is
transferred shall have only such rights to claim and use the credit
under the terms that would have applied to the entity by whom or by
which the tax credit was transferred. The provisions of this
subsection shall not limit the ability of a tax credit transferee to
reduce the tax liability of the transferee regardless of the actual
tax liability of the tax credit transferor for the relevant taxable
period. The transferor originally allowed the credit and the
subsequent transferee shall jointly file a copy of the written credit
transfer agreement with the Tax Commission within thirty (30) days of
the transfer. The written agreement shall contain the name, address
and taxpayer identification number of the parties to the transfer,
the amount of the credit being transferred, the year the credit was
originally allowed to the transferor and the tax year or years for
which the credit may be claimed. The Tax Commission may promulgate
rules to permit verification of the validity and timeliness of a tax
credit claimed upon a tax return pursuant to this subsection but
shall not promulgate any rules that unduly restrict or hinder the
transfers of such tax credit.
F. For advanced small wind turbines produced in a calendar year,
the tax credit allowed by the provisions of this section, upon
election of the taxpayer, shall be treated and may be claimed as a
payment of tax, a prepayment of tax or a payment of estimated tax for
purposes of Section 624 or 628 of Title 36 of the Oklahoma Statutes,
and actually paid to and placed into the General Revenue Fund, or
Section 2370 or 2355 of this title on or after July 1 of the
following calendar year.
G. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
Added by Laws 2002, c. 313, § 1, eff. Nov. 1, 2002. Amended by Laws
2005, c. 384, § 1, emerg. eff. June 6, 2005; Laws 2006, c. 272, § 14;
Laws 2010, c. 327, § 12, eff. July 1, 2010.
§68-2357.33. Repealed by Laws 2013, c. 363, § 11, eff. Jan. 1, 2014.
§68-2357.34. Repealed by Laws 2013, c. 363, § 12, eff. Jan. 1, 2014.
§68-2357.35. Repealed by Laws 2013, c. 363, § 12, eff. Jan. 1, 2014.
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§68-2357.36. Repealed by Laws 2013, c. 363, § 12, eff. Jan. 1, 2014.
§68-2357.37. Repealed by Laws 2013, c. 363, § 12, eff. Jan. 1, 2014.
§68-2357.38. Repealed by Laws 2013, c. 363, § 12, eff. Jan. 1, 2014.
§68-2357.39. Repealed by Laws 2013, c. 363, § 12, eff. Jan. 1, 2014.
§68-2357.40. Repealed by Laws 2013, c. 363, § 12, eff. Jan. 1, 2014.
§68-2357.41. Tax credit for qualified rehabilitation expenditures -
Certified historic structures.
A. Except as otherwise provided by subsection I of this section,
for tax years beginning after December 31, 2000, there shall be
allowed a credit against the tax imposed by Sections 2355 and 2370 of
this title or that portion of the tax imposed by Section 624 or 628
of Title 36 of the Oklahoma Statutes that would otherwise have been
apportioned to the General Revenue Fund for qualified rehabilitation
expenditures incurred in connection with any certified historic hotel
or historic newspaper plant building located in an increment or
incentive district created pursuant to the Local Development Act or
for qualified rehabilitation expenditures incurred after January 1,
2006, in connection with any certified historic structure.
B. The amount of the credit shall be one hundred percent (100%)
of the federal rehabilitation credit provided for in Section 47 of
Title 26 of the United States Code. The credit authorized by this
section may be claimed at any time after the relevant local
governmental body responsible for doing so issues a certificate of
occupancy or other document that is a precondition for the applicable
use of the building or structure that is the basis upon which the
credit authorized by this section is claimed.
C. All requirements with respect to qualification for the credit
authorized by Section 47 of Title 26 of the United States Code shall
be applicable to the credit authorized by this section.
D. If the credit allowed pursuant to this section exceeds the
amount of income taxes due or if there are no state income taxes due
on the income of the taxpayer, the amount of the credit allowed but
not used in any taxable year may be carried forward as a credit
against subsequent income tax liability for a period not exceeding
ten (10) years following the qualified expenditures.
E. All rehabilitation work to which the credit may be applied
shall be reviewed by the State Historic Preservation Office which
will in turn forward the information to the National Park Service for
certification in accordance with 36 C.F.R., Part 67. A certified
historic structure may be rehabilitated for any lawful use or uses,
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including without limitation mixed uses and still retain eligibility
for the credit provided for in this section.
F. The amount of the credit allowed for any credit claimed for a
certified historic hotel or historic newspaper plant building or any
certified historic structure, but not used, shall be freely
transferable, in whole or in part, to subsequent transferees at any
time during the five (5) years following the year of qualification.
Any person to whom or to which a tax credit is transferred shall have
only such rights to claim and use the credit under the terms that
would have applied to the entity by whom or by which the tax credit
was transferred. The provisions of this subsection shall not limit
the ability of a tax credit transferee to reduce the tax liability of
the transferee regardless of the actual tax liability of the tax
credit transferor for the relevant taxable period. The transferor of
the credit and the transferee shall jointly file a copy of the
written credit transfer agreement with the Oklahoma Tax Commission
within thirty (30) days of the transfer. Such filing of the written
credit transfer agreement with the Oklahoma Tax Commission shall
perfect such transfer. The written agreement shall contain the name,
address and taxpayer identification number of the parties to the
transfer, the amount of credit being transferred, the year the credit
was originally allowed to the transferor, the tax year or years for
which the credit may be claimed, and a representation by the
transferor that the transferor has neither claimed for its own behalf
nor conveyed such credits to any other transferee. The Tax
Commission shall develop a standard form for use by subsequent
transferees of the credit demonstrating eligibility for the
transferee to reduce its applicable tax liabilities resulting from
ownership of the credit. The Tax Commission shall develop a system
to record and track the transfers of the credit and certify the
ownership of the credit and may promulgate rules to permit
verification of the validity and timeliness of a tax credit claimed
upon a tax return pursuant to this subsection but shall not
promulgate any rules which unduly restrict or hinder the transfers of
such tax credit.
G. Notwithstanding any other provisions in this section, on or
after January 1, 2009, if a credit allowed pursuant to this section
which has been transferred is subsequently reduced as the result of
an adjustment by the Internal Revenue Service, Tax Commission, or any
other applicable government agency, only the transferor originally
allowed the credit and not any subsequent transferee of the credit,
shall be held liable to repay any amount of disallowed credit.
H. As used in this section:
1. “Certified historic hotel or historic newspaper plant
building” means a hotel or newspaper plant building that is listed on
the National Register of Historic Places within thirty (30) months of
taking the credit pursuant to this section.
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2. “Certified historic structure” means a building that is
listed on the National Register of Historic Places within thirty (30)
months of taking the credit pursuant to this section or a building
located in Oklahoma which is certified by the State Historic
Preservation Office as contributing to the historic significance of a
certified historic district listed on the National Register of
Historic Places, or a local district that has been certified by the
State Historic Preservation Office as eligible for listing in the
National Register of Historic Places; and
3. “Qualified rehabilitation expenditures” means capital
expenditures that qualify for the federal rehabilitation credit
provided in Section 47 of Title 26 of the United States Code and that
were paid after December 31, 2000. Qualified rehabilitation
expenditures do not include capital expenditures for nonhistoric
additions except an addition that is required by state or federal
regulations that relate to safety or accessibility. In addition,
qualified rehabilitation expenditures do not include expenditures
related to the cost of acquisition of the property.
I. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable until the provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2010, according to the provisions
of this section. Any tax credits which accrue during the period of
July 1, 2010, through June 30, 2012, may not be claimed for any
period prior to the taxable year beginning January 1, 2012. No
credits which accrue during the period of July 1, 2010, through June
30, 2012, may be used to file an amended tax return for any taxable
year prior to the taxable year beginning January 1, 2012.
Added by Laws 2000, c. 351, § 8, emerg. eff. June 6, 2000. Amended
by Laws 2001, c. 382, § 4, eff. Jan. 1, 2002; Laws 2003, c. 186, § 2,
eff. Nov. 1, 2003; Laws 2005, c. 413, § 6, eff. July 1, 2005; Laws
2006, c. 272, § 15; Laws 2008, c. 436, § 4, eff. Jan. 1, 2009; Laws
2010, c. 327, § 14, eff. July 1, 2010; Laws 2010, c. 418, § 5, emerg.
eff. June 10, 2010.
NOTE: Editorially renumbered from Title 68, § 2357.34 to avoid
duplication in numbering.
§68-2357.42. Tax credit for investments by space transportation
vehicle providers.
A. For tax years beginning after December 31, 2000, and ending
before January 1, 2009, there shall be allowed to an investor making
an eligible investment a credit against the tax imposed by Section
2355 or 2370 of this title or Section 624 or 628 of Title 36 of the
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Oklahoma Statutes. The credit may be used in the payment of
estimated tax payments for the tax imposed by Section 624 or 628 of
Title 36 of the Oklahoma Statutes. The credit shall be in the amount
as set forth in subsection G of this section.
B. The amount of the credit shall be transferable to subsequent
transferees.
C. As used in this section:
1. “Eligible investment” means an investment made during a
period not earlier than January 1, 2001, and not later than December
31, 2003, in a qualified space transportation vehicle provider that:
a. is headquartered in this state or is ultimately
controlled by an entity headquartered in this state,
b. has been certified by the Oklahoma Tax Commission as
meeting the following minimum qualifications:
(1) is included within the definition of “basic
industry” as set forth in division (1) of
subparagraph a of paragraph 1 of subsection A of
Section 3603 of this title and has been
preapproved by the Oklahoma Department of Commerce
to receive incentive payments pursuant to the
Oklahoma Quality Jobs Program Act or the Former
Military Facility Development Act. The Department
shall establish a process for preapproval of
applicants for the Oklahoma Quality Jobs Program
Act or the Former Military Facility Development
Act for purposes of this division. The qualified
space transportation vehicle provider shall agree
to submit such information as may be required
under this section and the Oklahoma Quality Jobs
Program Act or the Former Military Facility
Development Act to allow the Tax Commission to
determine the amount of the tax credit allowed
pursuant to the provisions of this section and the
amount of incentive payments allowed pursuant to
the Oklahoma Quality Jobs Program Act or the
Former Military Facility Development Act for
purposes of subsection K of this section,
(2) has equity capitalization of not less than Ten
Million Dollars ($10,000,000.00), and
(3) has received a commitment by a local governmental
entity, whether by contract, letter agreement,
terms sheet, resolution, ordinance or indenture,
to provide funds, personal property or real
property in the aggregate amount of Fifteen
Million Dollars ($15,000,000.00) or more which
will be utilized by one or more qualified space
transportation vehicle providers. For purposes of
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this division, such property may include personal
or real property owned by a local governmental
entity which has been leased to a state authority
pursuant to a long-term lease or personal or real
property which a local governmental entity has
transferred to a state authority. If such
property has been so transferred, the commitment
required by this division may be satisfied if the
state authority agrees in writing to make the
property so transferred available for use by one
or more qualified space transportation vehicle
providers;
2. “Qualified space transportation vehicle provider” means any
commercial provider organized under the laws of this state as a
corporation or a limited liability company and engaged in designing,
developing, producing, or operating commercial space transportation
vehicles in this state;
3. “Space transportation vehicle” includes all types of vehicles
or orbital or suborbital spacecraft, whether now in existence,
developed in the future, or currently under design, development,
construction, reconstruction, or reconditioning, constructed in this
state and owned by a qualified space transportation vehicle provider,
for the purpose of operating in, or transporting a payload to, from,
or within, outer space, or in suborbital trajectory, and includes any
component of such vehicle or spacecraft not specifically designed or
adapted for a payload; and
4. "Subsequently refunded or returned", when used in reference
to an eligible investment, means an actual redemption by the
qualified space transportation vehicle provider of the securities or
other indicia of ownership in the qualified space transportation
vehicle provider received by the investor from the investor's
investment. The failure to allow the tax credits or the recapture of
the tax credits shall not affect the validity of the tax credits in
the hands of a transferee of the initial investor or subsequent
transferees. Provided, an investor to whom an eligible investment,
or portion thereof, is subsequently refunded or returned shall
reimburse the Tax Commission the amount of any credits claimed by a
transferee with respect to any such amount.
D. The tax credit provided for in this section shall not be
allowed or, if already claimed, shall be subject to recapture as to
the initial investor or investors with respect to any amount of an
eligible investment made which is subsequently refunded or returned
to such investor. Further, a tax credit shall not be allowed to an
investor making an eligible investment in a qualified space
transportation vehicle provider or shall be subject to recapture as
to the initial investor or investors if previously allowed if the
qualified space transportation vehicle provider in which the
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investment was made fails to make use of such funds or property
within three (3) years of the date the tax credit was allowed. Any
recapture under this subsection shall only apply as to that part of
the tax credit as is associated with the amount of the investment
which is subsequently refunded or returned or which is not utilized.
E. The Tax Commission shall:
1. Certify, upon request of an authorized agent or
representative of a qualified space transportation vehicle provider,
that the qualified space transportation vehicle provider for which
the certification is sought meets the qualifications prescribed by
subparagraph b of paragraph 1 of subsection C of this section. The
certification shall be in writing and signed by an authorized
representative of the Tax Commission and, for purposes of determining
qualifications of a qualified space transportation vehicle provider
in which an investment may be eligible for the credit authorized by
this section, shall be binding upon the Tax Commission; and
2. Issue a certificate to an investor that provides adequate
documentation of qualification for the credit authorized by this
section even if the credit may not be claimed until after the date
upon which the certificate is requested. Upon issuance, the
certificate shall be evidence that an investor or a transferee of the
original tax credit claimant submitting the certificate, or a
certified copy thereof, with the relevant tax return or other form,
has the legal right to exercise the credit in order to reduce the
relevant tax liability for the period authorized by this section.
F. The maximum amount of all eligible investments for which tax
credits may be claimed under this section shall be Thirty Million
Dollars ($30,000,000.00). If more than one qualified space
transportation vehicle provider has been certified by the Tax
Commission pursuant to the provisions of subsection E of this
section, the investors in the first such approved qualified space
transportation vehicle provider shall be entitled to a credit based
on their investment of the lesser of their eligible investment or
Thirty Million Dollars ($30,000,000.00). The investors in the second
such approved qualified space transportation vehicle provider shall
then be entitled to a credit based on their investment of the lesser
of their eligible investment or the difference between the total
eligible investments in previously approved qualified space
transportation vehicle providers and Thirty Million Dollars
($30,000,000.00). This same procedure will apply for all
subsequently approved qualified space transportation vehicle
providers. If the amount of eligible investments exceeds the amount
upon which the tax credit may be claimed as provided herein,
investors shall be allowed a share of the amount of the available tax
credit in order of the dates of receipt of certification therefor by
the Tax Commission pursuant to the provisions of paragraph 1 of
subsection E of this section.
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G. The amount of the tax credit allowed pursuant to the
provisions of subsection A of this section shall be deemed fully
earned as of the date of the investment and shall be fully redeemable
as follows:
Period for Which
Tax Liability Determined Credit Allowed
Tax year subsequent to year of
eligible investment
10.6% of eligible
investment
Second tax year subsequent to year
of eligible investment
11.236% of eligible
investment
Third tax year subsequent to year
of eligible investment
11.910% of eligible
investment
Fourth tax year subsequent to year
of eligible investment
12.624% of eligible
investment
Fifth tax year subsequent to year
of eligible investment
13.381% of eligible
investment
H. The amount of a tax credit allowed pursuant to the provisions
of this section not used in payment of taxes due in the year in which
such credit is allowed pursuant to subsection G of this section may
be used as a credit against subsequent tax liability of the investor
or a subsequent transferee for a period not to exceed three (3) years
from the year in which such credit is originally allowed.
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I. The Tax Commission shall develop and issue appropriate forms
and instructions to enable investors to claim the tax credit provided
for in this section.
J. A qualified space transportation vehicle provider in which an
eligible investment qualifies for a credit authorized by this section
shall maintain a record of investment made in the qualified space
transportation vehicle provider for the period beginning January 1,
2001, and ending December 31, 2003. The qualified space
transportation vehicle provider shall notify the Tax Commission not
later than January 31, 2004, of the total investment amount for such
period. Any such qualified space transportation vehicle provider
which refunds or returns any amount of an eligible investment to the
investor shall notify the Tax Commission in writing of the amount and
recipient of such refunds or returns. The Tax Commission shall
compute the maximum amount of credits available pursuant to this
section based upon notification of the investment amount transmitted
to the Tax Commission by the qualified space transportation vehicle
provider.
K. A qualified space transportation vehicle provider in which
eligible investments qualify for the tax credit authorized by this
section shall not receive incentive payments pursuant to the Oklahoma
Quality Jobs Program Act or the Former Military Facility Development
Act until the total of such incentive payments the qualified space
transportation vehicle provider would otherwise receive exceeds the
total amount of the credit authorized by this section as computed by
the Tax Commission pursuant to subsection J of this section. The
amount of incentive payments for any year which would otherwise be
paid to the qualified space transportation vehicle provider shall be
distributed as follows:
1. If the amount of such incentive payments equals or exceeds
the amount of the tax credit for the year, the amount of such
payments which is equal to the amount of the tax credit shall be
apportioned as if collected from the tax imposed by Section 2355 or
2370 of this title or Section 624 or 628 of Title 36 of the Oklahoma
Statutes according to the tax against which the credit was claimed.
The amount of such payments which is in excess of the amount of the
tax credit shall be retained by the Tax Commission to be paid as
provided for in this paragraph for subsequent years for which the tax
credit is allowed to the qualified space transportation vehicle
provider;
2. If the amount of such incentive payments and any amount
retained by the Tax Commission pursuant to the provisions of
paragraph 1 of this subsection is less than the amount of the tax
credit for the year, notwithstanding the provisions of Section 1727
of Title 69 of the Oklahoma Statutes, the Tax Commission shall
withhold a portion of the taxes levied and collected pursuant to the
provisions of paragraph 1 of subsection A of Section 500.4 of this
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title which would otherwise be paid to the Department of
Transportation by the Oklahoma Transportation Authority pursuant to
the provisions of paragraph (2) of subsection (d) of Section 1730 of
Title 69 of the Oklahoma Statutes equal to the amount of the deficit.
The Tax Commission shall apportion all funds collected pursuant
to the provisions of this paragraph as if collected from the tax
imposed by Section 2355 or 2370 of this title or Section 624 or 628
of Title 36 of the Oklahoma Statutes according to the tax against
which the credit was claimed; and
3. If any amount is withheld by or paid to the Tax Commission
pursuant to the provisions of paragraph 2 of this subsection, the
amount of incentive payments to be subsequently paid to the qualified
space transportation vehicle provider shall be apportioned by the Tax
Commission to the Department of Transportation until such time as all
amounts paid pursuant to the provisions of paragraph 2 of this
subsection are repaid.
L. A qualified space transportation vehicle provider in which
investments qualify for the credit allowed by this section shall not
be entitled to payment of any incentive payments accrued prior to
January 1, 2001, under the Oklahoma Quality Jobs Program Act or the
Former Military Facility Development Act.
M. Notwithstanding the provisions of this section, a qualified
space transportation vehicle provider may, prior to the issuance of a
tax credit with respect to the qualified space transportation vehicle
provider pursuant to the provisions of this section, elect to receive
incentive payments pursuant to the provisions of the Oklahoma Quality
Jobs Program Act or the Former Military Facility Development Act in
lieu of allowing the tax credit provided for herein, in which case it
shall so notify the Tax Commission in writing and the provisions of
this section shall not be applicable.
N. Except as provided by subsection M of this section, no
qualified space transportation vehicle provider which would otherwise
qualify for incentive payments pursuant to the provisions of the
Oklahoma Quality Jobs Program Act or the Former Military Facility
Development Act may receive such incentive payments prior to January
1, 2003.
O. No qualified space transportation vehicle provider which has
made application to the Oklahoma Department of Commerce or which has
executed any agreement with the Oklahoma Department of Commerce with
respect to the receipt of incentive payments pursuant to the
provisions of the Oklahoma Quality Jobs Program Act or the Former
Military Facility Development Act or which has received any incentive
payment pursuant to the Oklahoma Quality Jobs Program Act or the
Former Military Facility Development Act prior to May 24, 2001, may
be certified for purposes of determining eligibility for the credit
authorized by this section.
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Added by Laws 2001, c. 266, § 1, emerg. eff. May 24, 2001. Amended
by Laws 2002, c. 379, § 1, emerg. eff. June 4, 2002; Laws 2004, c.
13, § 1, emerg. eff. March 23, 2004.
§68-2357.43. State earned income tax credit
For tax years beginning after December 31, 2001, there shall be
allowed to a resident individual or a part-year resident individual
as a credit against the tax imposed by Section 2355 of this title
five percent (5%) of the earned income tax credit allowed under
Section 32 of the Internal Revenue Code of the United States, 26
U.S.C., Section 32. However, this credit shall not be paid in
advance pursuant to the provisions of Section 3507 of the Internal
Revenue Code. For tax years which begin before January 1, 2016, if
the credit exceeds the tax imposed by Section 2355 of this title, the
excess amount shall be refunded to the taxpayer. The maximum earned
income tax credit allowable on the Oklahoma income tax return shall
be prorated on the ratio that Oklahoma adjusted gross income bears to
the federal adjusted gross income.
Added by Laws 2001, c. 383, § 1, eff. July 1, 2001. Amended by Laws
2016, c. 341, § 1, eff. Nov. 1, 2016.
NOTE: Editorially renumbered from Section 2357.42 of this title to
avoid a duplication in numbering.
§68-2357.44. Repealed by Laws 2002, c. 31, § 5, emerg. eff. April
10, 2002.
§68-2357.45. Donation to independent biomedical or cancer research
institute - Tax credit.
A. 1. For tax years beginning after December 31, 2004, there
shall be allowed against the tax imposed by Section 2355 of this
title, a credit for any taxpayer who makes a donation to an
independent biomedical research institute and for tax years beginning
after December 31, 2010, a credit for any taxpayer who makes a
donation to a cancer research institute.
2. The credit authorized by paragraph 1 of this subsection shall
be limited as follows:
a. for calendar year 2007 and all subsequent years, the
credit percentage, not to exceed fifty percent (50%),
shall be adjusted annually so that the total estimate
of the credits does not exceed Two Million Dollars
($2,000,000.00) annually. The formula to be used for
the percentage adjusted shall be fifty percent (50%)
times One Million Dollars ($1,000,000.00) divided by
the credits claimed in the preceding year for each
donation to an independent biomedical research
institute and fifty percent (50%) times One Million
Dollars ($1,000,000.00) divided by the credits claimed
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in the preceding year for each donation to a cancer
research institute,
b. in no event shall a taxpayer claim more than one credit
for a donation to any independent biomedical research
institute and one credit for a donation to a cancer
research institute in each taxable year nor shall the
credit exceed One Thousand Dollars ($1,000.00) for each
taxpayer for each type of donation,
c. for tax year 2011, no more than Fifty Thousand Dollars
($50,000.00) in total tax credits for donations to a
cancer research institute shall be allowed,
d. in no event shall more than fifty percent (50%) of the
Two Million Dollars ($2,000,000.00) in total tax
credits authorized by this section, for any calendar
year after the effective date of this act, be allocated
for credits for donations to a cancer research
institute, and
e. in the event the total tax credits authorized by this
section exceed One Million Dollars ($1,000,000.00) in
any calendar year for either a cancer research
institute or an independent biomedical research
institute, the Oklahoma Tax Commission shall permit any
excess over One Million Dollars ($1,000,000.00) but
shall factor such excess into the percentage adjustment
formula for subsequent years for that type of donation.
However, any such adjustment to the formula for
donations to an independent biomedical research
institute shall not affect the formula for donations to
a cancer research institute, and any such adjustment to
the formula for donations to a cancer research
institute shall not affect the formula for donations to
an independent biomedical research institute.
3. For purposes of this section, “independent biomedical
research institute” means an organization which 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) whose primary
focus is conducting peer-reviewed basic biomedical research. The
organization shall:
a. have a board of directors,
b. be able to accept grants in its own name,
c. be an identifiable institute that has its own employees
and administrative staff, and
d. receive at least Fifteen Million Dollars
($15,000,000.00) in National Institute of Health
funding each year.
4. For purposes of this section, “cancer research institute”
means an organization which is exempt from taxation pursuant to the
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Internal Revenue Code and whose primary focus is raising the standard
of cancer clinical care in Oklahoma through peer-reviewed cancer
research and education or a not-for-profit supporting organization,
as that term is defined by the Internal Revenue Code, affiliated with
a tax-exempt organization whose primary focus is raising the standard
of cancer clinical care in Oklahoma through peer-reviewed cancer
research and education. The tax-exempt organization whose primary
focus is raising the standard of cancer clinical care in Oklahoma
through peer-reviewed cancer research and education shall:
a. either be an independent research institute or a
program that is part of a state university which is a
member of The Oklahoma State System of Higher
Education, and
b. receive at least Four Million Dollars ($4,000,000.00)
in National Cancer Institute funding each year.
B. In no event shall the amount of the credit exceed the amount
of any tax liability of the taxpayer.
C. Any credits allowed but not used in any tax year may be
carried over, in order, to each of the four (4) years following the
year of qualification.
D. The Tax Commission shall have the authority to prescribe
forms for purposes of claiming the credit authorized by this section.
Added by Laws 2003, c. 472, § 19, eff. Jan. 1, 2005. Amended by Laws
2004, c. 518, § 3, eff. July 1, 2004; Laws 2010, c. 265, § 1, eff.
Jan. 1, 2011.
§68-2357.46. Tax credit for contractor expenditures for construction
of certain energy efficient residential properties
A. Except as otherwise provided by subsection G of this section,
for the time period beginning on or after January 1, 2006, and ending
on July 1, 2016, there shall be allowed a credit against the tax
imposed by Section 2355 of this title for eligible expenditures
incurred by a contractor in the construction of energy efficient
residential property of two thousand (2,000) square feet or less.
The amount of the credit shall be based upon the following:
1. For any eligible energy efficient residential property
constructed and certified as forty percent (40%) or more above the
International Energy Conservation Code 2003 and any supplement in
effect at the time of completion, the amount of the credit shall be
equal to the eligible expenses, not to exceed Four Thousand Dollars
($4,000.00) for the taxpayer who is the contractor; and
2. For any eligible energy efficient residential property
constructed and certified as between twenty percent (20%) and thirty-
nine percent (39%) above the International Energy Conservation Code
2003 and any supplement in effect at the time of completion, the
credit shall be equal to the eligible expenditures, not to exceed Two
Thousand Dollars ($2,000.00) for the taxpayer who is the contractor.
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B. As used in this section:
1. "Eligible expenditure" means any:
a. energy efficient heating or cooling system,
b. insulation material or system which is specifically and
primarily designed to reduce the heat gain or loss of a
residential property when installed in or on such
property,
c. exterior windows, including skylights,
d. exterior doors, and
e. any metal roof installed on a residential property, but
only if such roof has appropriate pigmented coatings
which are specifically and primarily designed to reduce
the heat gain of such dwelling unit and which meet
Energy Star program requirements;
2. "Contractor" means the taxpayer who constructed the
residential property or manufactured home, or if more than one
taxpayer qualifies as the contractor, the primary contractor; and
3. "Eligible energy efficient residential property" means a
newly constructed residential property or manufactured home property
which is located in the State of Oklahoma and substantially complete
after December 31, 2005, and which is two thousand (2,000) square
feet or less:
a. for the credit provided pursuant to paragraph 1 of
subsection A of this section, which is certified by an
accredited Residential Energy Services Network Provider
using the Home Energy Rating System to have:
(1) a level of annual heating and cooling energy
consumption which is at least forty percent (40%)
below the annual level of heating and cooling
energy consumption of a comparable residential
property constructed in accordance with the
standards of Chapter 4 of the 2003 International
Energy Conservation Code, as such code is in
effect on November 1, 2005,
(2) heating and cooling equipment efficiencies which
correspond to the minimum allowed under the
regulations established by the Department of
Energy pursuant to the National Appliance Energy
Conservation Act of 1987 and in effect at the time
of construction of the property, and
(3) building envelope component improvements which
account for at least one-fifth of the reduced
annual heating and cooling energy consumption
levels,
b. for the credit provided pursuant to paragraph 2 of
subsection A of this section, which is certified by an
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accredited Residential Energy Services Network Provider
using the Home Energy Rating System to have:
(1) a level of annual heating and cooling energy
consumption which is between twenty percent (20%)
and thirty-nine percent (39%) below the annual
level of heating and cooling energy consumption of
a comparable residential property constructed in
accordance with the standards of Chapter 4 of the
2003 International Energy Conservation Code, as
such code is in effect on November 1, 2005,
(2) heating and cooling equipment efficiencies which
correspond to the minimum allowed under the
regulations established by the Department of
Energy pursuant to the National Appliance Energy
Conservation Act of 1987 and in effect at the time
of construction of the property, and
(3) building envelope component improvements which
account for at least one-third of the reduced
annual heating and cooling energy consumption
levels.
C. The credit provided for in subsection A of this section may
only be claimed once for the contractor of any eligible residential
energy efficient property during the taxable year when the property
is substantially complete.
D. If the credit allowed pursuant to this section exceeds the
amount of income taxes due or if there are no state income taxes due
on the income of the taxpayer, the amount of credit allowed but not
used in any taxable year may be carried forward as a credit against
subsequent income tax liability for a period not exceeding four (4)
years following the qualified expenditures.
E. For credits earned on or after July 1, 2006, the credits
authorized by this section shall be freely transferable to subsequent
transferees.
F. The Oklahoma Tax Commission shall promulgate rules necessary
to implement this act.
G. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010 for which
the credit would otherwise be allowable. The provisions of this
subsection shall cease to be operative on July 1, 2012. Beginning
July 1, 2012, the credit authorized by this section may be claimed
for any event, transaction, investment, expenditure or other act
occurring on or after July 1, 2012, according to the provisions of
this section.
H. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
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expenditure or other act occurring on or after July 1, 2016, for
which the credit would otherwise be allowable.
Added by Laws 2005, c. 439, § 1, eff. Nov. 1, 2005. Amended by Laws
2006, c. 272, § 16; Laws 2010, c. 327, § 15, eff. July 1, 2010; Laws
2016, c. 340, § 1.
§68-2357.47. Employers - Eligible wages paid - Eligible modification
expenses.
A. 1. Except as otherwise provided in subsection D of this
section, for tax years beginning after December 31, 2005, and ending
before January 1, 2015, there shall be allowed against the tax
imposed by Section 2355 of this title, a credit for eligible wages
paid by an employer to an employee. The amount of the credit shall
be ten percent (10%) of the amount of the gross wages paid to the
employee for a period not to exceed ninety (90) days but in no event
shall the credit exceed Five Thousand Dollars ($5,000.00) for each
employee of each taxpayer. In no event shall the total credit
claimed exceed Twenty-five Thousand Dollars ($25,000.00) in any one
year for any taxpayer.
2. Except as otherwise provided by subsection D of this section,
for tax years beginning after December 31, 2005, and ending before
January 1, 2017, there shall be allowed against the tax imposed by
Section 2355 of this title, a credit for eligible modification
expenses of an employer. The amount of the credit shall be fifty
percent (50%) of the amount of the funds expended for eligible
modification expenses or new tools or equipment but in no event shall
the credit exceed One Thousand Dollars ($1,000.00) for eligible
modification expenses incurred for any single employee. In no event
shall the total credit claimed exceed Ten Thousand Dollars
($10,000.00) in any year for any taxpayer.
3. As used in this section:
a. "employee", "employer", "maximum medical improvement",
"treating physician", and "wages" shall be defined as
in Title 85 of the Oklahoma Statutes,
b. "eligible wages" means gross wages paid by an employer
to an employee who is injured as a result of an injury
which is compensable under Title 85 of the Oklahoma
Statutes and which are paid beginning when the employee
returns to work with restricted duties as provided by
the employee's treating physician or an independent
medical examiner before the employee has reached
maximum medical improvement, and ending after ninety
(90) days or when the employee has reached maximum
medical improvement, and
c. "eligible modification expenses" means expenses
incurred by an employer to modify a workplace, tools or
equipment or to obtain new tools or equipment and which
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are incurred by an employer solely to enable a specific
injured employee who is injured as a result of an
injury which is compensable under the Workers'
Compensation Act to return to work with restricted
duties as provided by the employee's treating physician
or an independent medical examiner before the employee
has reached maximum medical improvement, and which
workplace, tools or equipment are used primarily by the
injured employee.
B. In no event shall the amount of the credit(s) exceed the
amount of any tax liability of the taxpayer.
C. The Oklahoma Tax Commission shall have the authority to
promulgate rules necessary to effectuate the purposes of this
section.
D. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
Added by Laws 2005, 1st Ex.Sess., c. 1, § 5, eff. July 1, 2006.
Amended by Laws 2010, c. 327, § 16, eff. July 1, 2010; Laws 2014, c.
292, § 1, eff. Nov. 1, 2014.
NOTE: Editorially renumbered from Title 68, § 2357.46 to avoid a
duplication in numbering.
§68-2357.51. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.52. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.53. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.54. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.55. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.56. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.57. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.58. Repealed by Laws 1993, c. 275, § 51, eff. July 1, 1993.
§68-2357.59. Certain tax credits to be allowed.
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A. Except as otherwise provided by subsection F of this section,
if any person, firm, corporation, partnership or other legal entity
has made application or filed an information report on forms
prescribed by the Oklahoma Tax Commission to receive a credit against
the tax imposed by Section 2355 of this title or Section 624 of Title
36 of the Oklahoma Statutes pursuant to the provisions of Sections
2357.23, 2357.51, 2357.52, 2357.53, 2357.54, 2357.55, 2357.56,
2357.57 or 2357.58 of this title on or before July 1, 1993, such
credit may be received notwithstanding the provisions of Section 51
of Senate Bill No. 459 of the 1st Session of the 44th Oklahoma
Legislature or that the other requirements for allowance of such
credit are not established until after July 1, 1993.
B. Except as provided in this section, no person, firm,
corporation, partnership or other legal entity shall qualify to
receive any such credit after July 1, 1993.
C. For any person, firm, corporation, partnership or other legal
entity or its successor who has filed the information report
specified in subsection A of this section, for taxable years
beginning after December 31, 1995, and ending on or before December
31, 2000, there shall be allowed a credit against the tax imposed by
Section 2355 of this title for fifteen percent (15%) of the
investment cost of a new qualified recycling facility. A person,
firm, corporation, partnership or other legal entity or its successor
which has withdrawn its application or information report specified
in subsection A of this section shall not be eligible for such
credit. For purposes of this subsection, a "qualified recycling
facility" shall mean buildings, land, improvements, machinery and
equipment located in Oklahoma and used in manufacturing as defined by
the Standard Industrial Classification Code and at which facility is
produced a qualified finished product, provided that up to ten
percent (10%) of the square feet of a building may be devoted to
office space used to provide clerical support for the manufacturing
operation. Such ten percent (10%) may be in a separate building as
long as it is part of the same contiguous tract of property on which
the manufacturing facility is located. For purposes of this
subsection, a "qualified finished product" shall mean a marketable
product or component thereof which has economic value to the consumer
and ninety percent (90%) of which is composed of materials which have
been separated, diverted or removed from the waste stream and
incorporated into the finished product by any means or method.
D. The credit provided for in subsection C of this section shall
be subject to the following limitations:
1. The credit shall apply to investment in a qualified recycling
facility only if construction or on-site installation of the facility
commences on or after January 1, 1996, and before December 31, 1999;
2. The credit shall only be available if the total cost of the
new qualified recycling facility exceeds Twenty Million Dollars
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($20,000,000.00) and employs at least seventy-five new full-time-
equivalent employees, as certified by the Oklahoma Employment
Security Commission;
3. The credit shall be initially allowed for the tax year in
which the qualified recycling facility is placed in service.
However, any credit allowed but not used in any tax year due to the
limitation provided in paragraph 4 of this subsection shall be
carried over in order, but used only once, to each of the fourteen
(14) years following the year of initial allowance; and
4. The credit shall not be utilized in any tax year to reduce
the income tax liability of the owner of the qualified recycling
facility for such year by more than fifty percent (50%) of the tax
liability calculated from the income of the qualified recycling
facility. For purposes of subsections C and D of this section, the
"owner" shall include the user of a qualified recycling facility
under a lease with a term of five (5) years or more.
E. The Oklahoma Tax Commission may promulgate rules in order to
implement the provisions of this section including requirements to
submit any additional information as deemed necessary to implement
and administer this credit.
F. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
Added by Laws 1993, c. 275, § 49, eff. July 1, 1993. Amended by Laws
1996, c. 342, § 4, emerg. eff. June, 14, 1996; Laws 1998, c. 101, §
1, eff. Nov. 1, 1998; Laws 2010, c. 327, § 17, eff. July 1, 2010.
§68-2357.60. Short title.
Sections 2357.60 through 2357.65 of this title, including the
provisions of Sections 10, 11, 12, 13 and 14 of this act, shall be
known and may be cited as the "Small Business Capital Formation
Incentive Act".
Added by Laws 1997, c. 167, § 1, eff. Jan. 1, 1998. Amended by Laws
2006, c. 281, § 6, emerg. eff. June 7, 2006.
§68-2357.61. Definitions.
As used in the Small Business Capital Formation Incentive Act:
1. "Acquisition" means the use of capital by an Oklahoma small
business venture within six (6) months after obtaining the capital to
purchase fifty-one percent (51%) or more of the voting interest
entitled to elect the governing board, or its equivalent, of any
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other legal entity, regardless of the legal form of the entity. As
used in the Small Business Capital Formation Incentive Act,
"acquisition" does not mean the right to participate in the proceeds
from sale of goods or services, whether denominated a royalty,
royalty interest or otherwise, and does not mean the right to
intellectual property, whether the rights arise from copyright,
trademark or patent law;
2. "Capitalization" means the amount of:
a. any funds that have actually been contributed to the
qualified small business capital company,
b. any contractual commitment to provide funds to the
qualified small business capital company to the extent
that such commitment is payable on demand and has
substantial economic penalties for breach of the
commitment to provide such funds, and
c. any allocation of tax credit authority awarded to the
qualified small business capital company by the
Community Development Financial Institutions Fund
pursuant to Section 45D of the Internal Revenue Code of
1986, as amended, to the extent such allocation has not
been previously designated by the qualified small
business capital company as contemplated by Section
45D(b)(1)(C) of the Internal Revenue Code of 1986, as
amended;
3. "Equity and near-equity security" means common stock,
preferred stock, warrants or other rights to subscribe to stock or
its equivalent, or an interest in a limited liability company,
partnership, or subordinated debt that is convertible into, or
entitles the holder to receive upon its exercise, common stock,
preferred stock, a royalty or net profits interest, or an interest in
a limited liability company or partnership;
4. "Financial lending institution" means a bank, credit union,
savings and loan, commercial finance company or other entity
principally engaged in the extension of credit;
5. "Oklahoma small business venture" means a business,
incorporated or unincorporated, which:
a. has or will have, within one hundred eighty (180) days
after a qualified investment is made by a qualified
small business capital company, at least fifty percent
(50%) of its employees or assets located in Oklahoma,
b. needs financial assistance in order to commence or
expand such business which provides or intends to
provide goods or services,
c. is engaged in a lawful business activity under any
Industry Number appearing under any Major Group Number
of Divisions A, C, D, E, F or I of the Standard
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Industrial Classification Manual, 1987 revision with
the following exceptions:
(1) Major Group 1 of Division A, and
(2) Major Group 2 of Division A,
d. qualifies as a small business as defined by the federal
Small Business Administration, and
e. expends within eighteen (18) months after the date of
the qualified investment at least fifty percent (50%)
of the proceeds of the qualified investment for the
acquisition of tangible or intangible assets which are
used in the active conduct of the trade or business or
to provide working capital for the active conduct of
the trade or business for which the determination of
the small business qualification pursuant to
subparagraph d of this paragraph was made. For
purposes of this subparagraph, “working capital” shall
not include consulting, brokerage or transaction fees.
Provided, that the Oklahoma Tax Commission, upon
request and demonstration of need by a qualified small
business capital company or an Oklahoma small business
venture, or an investor or an authorized agent of any
such entities, may extend the 18-month period otherwise
required by this subparagraph for a period not to
exceed six (6) months. Provided, the expenditure of
the invested funds by the Oklahoma small business
venture shall otherwise comply with the requirements
applicable to the usage of tax credits for qualified
investment in the Oklahoma small business venture. As
used in this subparagraph, “tangible assets” shall
include the acquisition of real property and the
construction of improvements upon real property if such
acquisition and construction otherwise comply with the
requirements applicable to the usage of tax credits for
qualified investment in the Oklahoma small business
venture, and “intangible assets” shall be limited to
computer software, licenses, patents, copyrights and
similar items;
6. "Qualified investment" means an investment of funds in the
form of "equity" and "near-equity" as defined in paragraph 3 of this
section or "subordinated debt" as defined in paragraph 8 of this
section; provided, an investment which is contingent upon the
occurrence of an event or which is subject to being refunded or
returned in the absence of such event shall only be deemed to have
been made upon the occurrence of the event;
7. "Qualified small business capital company" means a C
corporation or a subchapter S corporation, as defined by the Internal
Revenue Code of 1986, as amended, incorporated pursuant to the laws
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of Oklahoma, limited liability company or a registered business
partnership with a certificate of partnership filed as required by
law, which meets the following criteria:
a. the corporation, limited liability company or
partnership is organized to provide the direct
investment of equity and near-equity funds to companies
within this state,
b. the principal place of business of the corporation,
limited liability company or partnership is located
within this state,
c. the capitalization of the corporation, limited
liability company or partnership is not less than One
Million Dollars ($1,000,000.00), and
d. the corporation, limited liability company or
partnership has investment of not more than twenty
percent (20%) of its capitalization in any one company
at any time during the calendar year of the
corporation, limited liability company or partnership;
and
8. "Subordinated debt" means indebtedness with a maturity date
of not less than five (5) years that is subordinated to all other
indebtedness of the issuer that has been issued or is to be issued to
a financial lending institution. The indebtedness shall not have a
repayment schedule that is faster than a level principal amortization
over five (5) years.
Added by Laws 1997, c. 167, § 2, eff. Jan. 1, 1998. Amended by Laws
2004, c. 508, § 1, emerg. eff. June 9, 2004; Laws 2005, c. 479, § 18,
eff. July 1, 2005; Laws 2006, c. 281, § 7, emerg. eff. June 7, 2006;
Laws 2008, c. 440, § 3.
§68-2357.61a. Moratorium on certain tax credits.
The Legislature hereby establishes a moratorium on tax credits
authorized pursuant to Sections 2357.62 and 2357.63 of Title 68 of
the Oklahoma Statutes, subject to the provisions of subsection A of
Section 2357.62 and subsection A of Section 2357.63 of Title 68 of
the Oklahoma Statutes. Unless otherwise repealed or revoked by the
Oklahoma Legislature, the moratorium shall be in effect for
investments made on or after June 1, 2010, through December 31, 2011.
Added by Laws 2010, c. 433, § 1.
§68-2357.62. Credit for qualified investment in qualified small
business capital companies.
A. Except as provided in Section 1 of this act, for taxable
years beginning after December 31, 1997, and before January 1, 2012,
there shall be allowed a credit against the tax imposed by Section
2355 or, effective January 1, 2001, Section 2370 of this title or,
effective July 1, 2001, against the tax imposed by Section 624 or 628
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of Title 36 of the Oklahoma Statutes, for qualified investment in
qualified small business capital companies. No amount of a qualified
investment made in a qualified small business capital company which
has not been invested in one or more Oklahoma small business ventures
prior to the effective date of the moratorium provided for in Section
1 of this act shall be eligible for any credit otherwise authorized
pursuant to this section. No qualified investment made in a
qualified small business capital company or qualified investment made
by a qualified small business capital company in one or more Oklahoma
small business ventures during the period of the moratorium pursuant
to Section 1 of this act shall be eligible for any credit otherwise
authorized pursuant to this section.
B. The credit provided for in subsection A of this section shall
be twenty percent (20%) of the qualified investment in qualified
small business capital companies which is subsequently invested in an
Oklahoma small business venture by the qualified venture capital
company and may only be claimed for a taxable year during which the
qualified small business capital company makes the qualified
investment in an Oklahoma small business venture. The credit shall
be allowed for the amount of the qualified investment in an Oklahoma
small business venture if the funds are used in pursuit of a
legitimate business purpose of the Oklahoma small business venture
consistent with its organizational instrument, bylaws or other
agreement responsible for the governance of the small business
venture. The qualified small business capital company shall issue
such reports as the Oklahoma Tax Commission may require attributing
the source of funds of each investment it makes in an Oklahoma
business venture. If the tax credit exceeds the amount of taxes due
or if there are no state taxes due of the taxpayer, the amount of the
claim not used as an offset against the taxes of a taxable year may
be carried forward for a period not to exceed three (3) taxable
years.
C. No taxpayer may claim the credit provided for in this section
for qualified investments in qualified small business capital
companies made prior to January 1, 1998.
D. No taxpayer may claim the credit provided for in this section
if the capital provided by a qualified small business capital company
is used by an Oklahoma small business venture for the acquisition of
any other legal entity.
E. No financial lending institution shall be eligible to claim
the credit provided for in this section except with respect to
qualified investments in a qualified small business capital company.
F. No taxpayer may claim the credit authorized by this section
for the same qualified investment for which any credit is claimed
pursuant to either Section 2357.73 or 2357.74 of this title.
G. If a pass-through entity is entitled to a credit under this
section, the pass-through entity shall allocate such credit to one or
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more of the shareholders, partners or members of the pass-through
entity; provided, the total of all credits allocated shall not exceed
the amount of the credit to which the pass-through entity is
entitled. The credit may also be claimed for funds borrowed by the
pass-through entity to make a qualified investment if a shareholder,
partner or member to whom the credit is allocated has an unlimited
and continuing legal obligation to repay the borrowed funds but the
allocation may not exceed such shareholder’s, partner’s or member’s
pro-rata equity share of the pass-through entity even if the
taxpayer’s legal obligation to repay the borrowed funds is in excess
of such pro-rata share of such borrowed funds. For purposes of the
Small Business Capital Formation Incentive Act, “pass-through entity”
means a corporation that for the applicable tax years is treated as
an S corporation under the Internal Revenue Code, general
partnership, limited partnership, limited liability partnership,
trust, or limited liability company that for the applicable tax year
is not taxed as a corporation for federal income tax purposes.
Added by Laws 1997, c. 167, § 3, eff. Jan. 1, 1998. Amended by Laws
1998, c. 226, § 3, emerg. eff. May 20, 1998; Laws 2000, c. 241, § 1;
Laws 2001, c. 382, § 5, emerg. eff. June 4, 2001; Laws 2004, c. 508,
§ 2, emerg. eff. June 9, 2004; Laws 2005, c. 299, § 3, eff. July 1,
2006; Laws 2006, c. 281, § 8, emerg. eff. June 7, 2006; Laws 2008, c.
440, § 4; Laws 2010, c. 433, § 2.
NOTE: A July 1, 2001, effective date for Laws 2000, c. 241, § 1 was
repealed by Laws 2001, c. 382, § 10, emerg. eff. June 4, 2001.
§68-2357.63. Credit for qualified investment made in Oklahoma small
business ventures in conjunction with investment made by qualified
small business capital company.
A. Except as provided in Section 1 of this act, for taxable
years beginning after December 31, 1997, and before January 1, 2012,
there shall be allowed a credit against the tax imposed by Section
2355 or, effective January 1, 2001, Section 2370 of this title or,
effective July 1, 2001, against the tax imposed by Section 624 or 628
of Title 36 of the Oklahoma Statutes, for qualified investment made
in Oklahoma small business ventures in conjunction with investment in
such ventures made by a qualified small business capital company. No
amount of a qualified investment made in conjunction with investment
made by a qualified small business capital company which has not been
invested in one or more Oklahoma small business ventures prior to the
effective date of the moratorium provided for in Section 1 of this
act shall be eligible for any credit otherwise authorized pursuant to
this section. No qualified investment made in conjunction with
investment made by a qualified small business capital company in one
or more Oklahoma small business ventures during the period of the
moratorium pursuant to Section 1 of this act shall be eligible for
any credit otherwise authorized pursuant to this section.
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B. The credit provided for in this section shall be twenty
percent (20%) of the qualified investment made in Oklahoma small
business ventures in conjunction with qualified investment in such
ventures made by a qualified small business capital company and shall
be allowed for the taxable year during which the qualified investment
is made in an Oklahoma small business venture. If the tax credit
allowed pursuant to subsection A of this section exceeds the amount
of taxes due or if there are no state taxes due of the taxpayer, the
amount of the claim not used as an offset against the taxes of a
taxable year may be carried forward for a period not to exceed three
(3) taxable years. To qualify for the credit authorized by this
section, a qualified investment shall be:
1. Made by a shareholder, member or partner of a qualified small
business capital company that has made a qualified investment in an
Oklahoma small business venture;
2. Invested in the purchase of equity or near-equity in an
Oklahoma small business venture;
3. Made under the same terms and conditions as the qualified
investment made by the qualified small business capital company; and
4. Limited to the lesser of:
a. two hundred percent (200%) of any qualified investment
by the taxpayer in the qualified small business capital
company, or
b. two hundred percent (200%) of the qualified investment
made by the qualified small business capital company in
the Oklahoma small business venture.
C. No taxpayer may claim the credit provided for in this section
for a qualified investment made prior to January 1, 1998.
D. No taxpayer may claim the credit authorized by this section
for the same qualified investment amount for which any credit is
claimed pursuant to either Section 2357.73 or 2357.74 of this title.
E. If a pass-through entity is entitled to a credit under this
section, the pass-through entity shall allocate such credit to one or
more of the shareholders, partners or members of the pass-through
entity; provided, the total of all credits allocated shall not exceed
the amount of the credit to which the pass-through entity is
entitled. The credit may only be claimed for funds borrowed by the
pass-through entity to make a qualified investment if a shareholder,
partner or member to whom the credit is allocated has an unlimited
and continuing legal obligation to repay the borrowed funds but the
allocation may not exceed such shareholder’s, partner’s or member’s
pro-rata equity share of the pass-through entity even if the
taxpayer’s legal obligation to repay the borrowed funds is in excess
of such amount. For purposes of the Oklahoma Small Business Capital
Formation Incentive Act, “pass-through entity” means a corporation
that for the applicable tax years is treated as an S corporation
under the Internal Revenue Code, general partnership, limited
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partnership, limited liability partnership, trust, or limited
liability company that for the applicable tax year is not taxed as a
corporation for federal income tax purposes.
Added by Laws 1997, c. 167, § 4, eff. Jan. 1, 1998. Amended by Laws
1998, c. 226, § 4, emerg. eff. May 20, 1998; Laws 2000, c. 241, § 2;
Laws 2001, c. 382, § 6, emerg. eff. June 4, 2001; Laws 2004, c. 508,
§ 3, emerg. eff. June 9, 2004; Laws 2005, c. 299, § 4, eff. July 1,
2006; Laws 2006, c. 281, § 9, emerg. eff. June 7, 2006; Laws 2008, c.
440, § 5; Laws 2010, c. 433, § 3.
NOTE: A July 1, 2001, effective date for Laws 2000, c. 241, § 2 was
repealed by Laws 2001, c. 382, § 10, emerg. eff. June 4, 2001.
§68-2357.63A. Requirements for funds invested in Oklahoma small
business ventures - Recapture of credits - Use of near equity or
subordinated debt - Offering material statement.
A. For purposes of claiming any tax credits authorized by
Sections 2357.62 and 2357.63 of Title 68 of the Oklahoma Statutes,
any funds invested in an Oklahoma small business venture shall be
subject to the following requirements:
1. The Oklahoma small business venture must issue its equity
securities or subordinated debt instruments in exchange for a
qualified investment within thirty (30) days of the date as of which
the investment occurs;
2. The qualified small business capital company or any entity
making an investment in conjunction with investment by a qualified
small business capital company pursuant to Section 2357.63 of this
title must reflect the documented qualified investment in the
Oklahoma small business venture as an asset in its accounting system;
3. The qualified small business capital company shall not make a
qualified investment in an Oklahoma small business venture in which
it has, at any time, more than fifty percent (50%) ownership, whether
directly or indirectly, of the voting interest entitled to elect the
governing board of any Oklahoma small business venture;
4. The qualified small business capital company cannot enter
into any agreement, whether formal or informal, written or unwritten,
the purpose of which is to control, directly or indirectly, the
return of a specific amount of qualified investment by the Oklahoma
small business venture to the qualified small business capital
company or the purpose of which is to cause or require the transfer
of such specific amount of qualified investment to any other entity
within five (5) years from the date the qualified investment is made
available to the Oklahoma small business venture; and
5. The Oklahoma small business venture cannot enter into any
agreement, whether formal or informal, written or unwritten, the
purpose of which is to control, directly or indirectly, the return of
a specific amount of qualified investment to the qualified small
business capital company or the purpose of which is to cause or
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require the transfer of such specific amount of qualified investment
to any other entity within five (5) years from the time the qualified
investment is made available to the Oklahoma small business venture.
B. The Oklahoma Tax Commission shall have the authority to make
an independent determination that any proposed use of monies, assets,
funds or other things of value which are to be used for purposes of
claiming any credits authorized by Sections 2357.62 and 2357.63 of
Title 68 of the Oklahoma Statutes are for a legitimate business
purpose of the Oklahoma small business venture and not for the
primary purpose of obtaining the tax credits authorized by such
sections on the basis of activity which does not have substantial
economic profit-based potential.
C. The Tax Commission shall be authorized to recapture the
credits otherwise authorized by the provisions of Sections 2357.62
and 2357.63 of Title 68 of the Oklahoma Statutes according to the
provisions of Section 11 of this act if it finds that the transaction
does not meet the requirements of the Small Business Capital
Formation Incentive Act.
D. The provisions of this section shall not prohibit a qualified
small business capital company from using near equity or subordinated
debt, as those terms are defined by Section 2357.61 of Title 68 of
the Oklahoma Statutes, if the near equity or subordinated debt is a
contractual obligation owed by the Oklahoma small business venture
directly to the qualified small business capital company and if the
agreement governing the obligation complies with all of the other
requirements of this section.
E. The provisions of this section shall not prohibit the
shareholders or partners of a qualified small business capital
company from using near equity or subordinated debt, as those terms
are defined by Section 2357.61 of Title 68 of the Oklahoma Statutes,
if the near equity or subordinated debt is a contractual obligation
owed by the Oklahoma small business venture directly to a shareholder
or partner of a qualified small business capital company that has
invested funds in an Oklahoma small business venture pursuant to
Section 2357.63 of Title 68 of the Oklahoma Statutes and if the
agreement governing the obligation complies with all of the other
requirements of this section.
F. Any offering material involving the solicitation of qualified
investments in exchange for equity securities or subordinated debt
instruments of the qualified small business capital company shall
include the following statement:
“Any favorable determination letter obtained from the Oklahoma
Tax Commission does not guarantee the granting of tax credits under
the provisions of the Small Business Capital Formation Incentive Act.
In the event applicable provisions of the Small Business Capital
Formation Incentive Act are violated, the Tax Commission may require
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forfeiture of unused tax credits and recapture or repayment of tax
credits as provided by law.”
Added by Laws 2006, c. 281, § 10, emerg. eff. June 7, 2006.
§68-2357.63B. Recapture event - Tax increase due to recaptured
credit amount.
A. As used in this section, “recapture event” means that with
respect to a qualified investment in an Oklahoma small business
venture:
1. The Oklahoma small business venture fails to expend at least
fifty percent (50%) of the proceeds of qualified investments for
acquisition of tangible or intangible assets to be used in the active
conduct of the trade or business or for working capital for the
active conduct of the trade or business of the small business venture
within eighteen (18) months after the qualified investment is made or
within an extension of such period as provided in Section 2357.61 of
this title. For purposes of this paragraph, “working capital” shall
not include consulting, brokerage or transaction fees;
2. The investment in the Oklahoma small business venture is
transferred, withdrawn or otherwise returned within five (5) years;
provided, a “recapture event” shall not include the transfer,
withdrawal or return of an investment as a result of a “market-based
liquidity event”. As used in the Small Business Capital Formation
Incentive Act, a “market-based liquidity event” means that an
Oklahoma small business venture:
a. sells all or substantially all of its assets to, or is
acquired by share acquisition, share exchange, merger,
consolidation or other similar transaction by another
person or entity other than:
(1) a person or entity controlled by a person that
made a qualified investment in the qualified small
business capital company that provided funds for
use by the Oklahoma small business venture, or
(2) a person or entity controlled by a person that
made an investment in conjunction with a qualified
investment made by the qualified small business
capital company that provided funds for use by the
Oklahoma small business venture,
b. conducts an initial public offering of a class of its
equity securities pursuant to the requirements of the
United States Securities and Exchange Commission or
other applicable federal law governing the sale of
securities in interstate commerce,
c. makes an amortization payment under the terms of a
subordinated debt instrument, or
d. repays indebtedness from net income as determined in
accordance with generally accepted accounting
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principles or proceeds of the sale of assets in the
ordinary course of business; or
3. The Oklahoma Tax Commission finds that the qualified
investment does not meet the requirements of the Small Business
Capital Formation Incentive Act.
B. If a recapture event occurs with respect to a qualified
investment for which a credit authorized by either Section 2357.62 or
Section 2357.63 of this title was claimed, the tax imposed pursuant
to the applicable provisions of Title 36 or this title of the
Oklahoma Statutes shall be increased to the extent of the recaptured
credit amount.
C. For purposes of this section, the recapture amount shall be
equal to the sum of:
1. The aggregate decrease in the credits previously allowed to
the taxpayer pursuant to Section 2357.62 or Section 2357.63 of this
title for all prior taxable periods which would have resulted if no
credit had been authorized with respect to the qualified investment;
plus
2. Interest at the rate prescribed by Section 217 of this title
on the amount determined pursuant to paragraph 1 of this subsection
for each prior taxable period for the period beginning on the due
date for filing the applicable report or return for the prior taxable
period.
D. The tax for the taxable period shall be increased pursuant to
this section only with respect to credits which were used to reduce
tax liability. In the case of credits not used to reduce tax
liability, the carryforwards allowed shall be adjusted accordingly.
E. For any transaction that is audited by the Tax Commission
after such credits have been allowed, but which is subsequently
determined to constitute a recapture event, the Tax Commission shall
be required to disallow any and all credits claimed in violation of
the requirements of this section or any other provision of the Small
Business Capital Formation Incentive Act for a period of ten (10)
years after the date as of which any applicable tax report or return
utilizing such credits is filed.
F. The provisions of subsection E of this section shall
supersede any other provision of the Uniform Tax Procedure Code or
any other state tax law that would prohibit the disallowance of such
credits based upon an otherwise applicable statute of limitations.
Added by Laws 2006, c. 281, § 11, emerg. eff. June 7, 2006. Amended
by Laws 2008, c. 440, § 6.
§68-2357.63C. Required records to be prepared and maintained.
A. Each qualified small business capital company shall prepare
and maintain on a current basis the following records and make them
available to the Oklahoma Tax Commission upon request:
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1. Files for each director and principal of the capital company
including the name, address, social security number or federal
identification number and such other identifying information as the
Tax Commission may require;
2. Records concerning all securities and subordinated debt
issued by the capital company which include:
a. the type of the security and subordinated debt issued,
b. the name, address and telephone number of the investor,
c. the date of the transaction, and
d. the total amount of the qualified investment;
3. Records relating to each person making a qualified investment
which shall include the social security number or federal tax
identification number of each investor;
4. Records relating to each Oklahoma small business venture in
which the capital company made a qualified investment which includes:
a. the name of the business,
b. location of the headquarters and principal business
operations of the business,
c. a description of the type of business in which engaged,
d. evidence that the venture meets the definition of an
Oklahoma small business venture,
e. a copy of any contractual agreement entered into
between the capital company and the venture,
f. the amount of qualified investment in the venture,
g. the type of investment along with supporting
documentation,
h. the date of the investment, and
i. the source of funds invested;
5. Organizational documents of the qualified small business
capital company and any additional documents relating to the
organization or operation of the capital company as requested by the
Tax Commission;
6. Records relating to all capitalization of the capital company
which is not invested in Oklahoma small business ventures;
7. Records relating to all distributions made by the capital
company which includes the date of the distribution, the amount of
the distribution, to whom the distribution was paid, and the purpose
of the distribution; and
8. All other records that may be requested by the Tax
Commission.
B. All records required by this section shall be preserved for a
period of ten (10) years.
Added by Laws 2006, c. 281, § 12, emerg. eff. June 7, 2006.
§68-2357.63D. Rules regarding determination letter procedures.
The Oklahoma Tax Commission shall promulgate rules establishing
procedures under which:
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1. A qualified small business capital company may, prior to
making an investment in an Oklahoma small business venture, request a
determination letter from the Tax Commission that a business in which
it proposes to invest is an “Oklahoma small business venture”;
2. A person or entity may request a determination letter that a
company meets the definition of a “qualified small business capital
company”; and
3. A person or entity may request a determination letter that a
transfer of funds meets the definition of a “qualified investment”.
Added by Laws 2006, c. 281, § 13, emerg. eff. June 7, 2006.
§68-2357.63E. Effect of favorable determination letters issued prior
to March 15, 2006 - Credit requirements.
A. Any person or entity that has obtained a favorable
determination letter from the Oklahoma Tax Commission prior to March
15, 2006, regarding the ability to claim or otherwise utilize any of
the tax credits authorized pursuant to the provisions of Section
2357.62 or 2357.63 of Title 68 of the Oklahoma Statutes shall not be
subject to the amendments to the Small Business Venture Capital
Formation Incentive Act made by this legislative measure to qualify
for the tax credits authorized pursuant to the provisions of Section
2357.62 or 2357.63 of this title except as provided in this section.
Notwithstanding any determination letter issued with respect to such
investment, no credit shall be allowed unless:
1. Such qualified investment is made prior to November 1, 2006,
to satisfy a legitimate business purpose of the entity receiving such
investment which is consistent with its organizational instrument,
bylaws or other agreement responsible for the governance of the
business venture;
2. The investor’s funds were at risk; and
3. The investment was not made chiefly for the purpose of
reducing tax liability.
B. Any investment in a qualified small business capital company
or an Oklahoma small business venture that occurs on or after
November 1, 2006, shall be subject to all of the provisions of the
Small Business Capital Formation Incentive Act as amended by the
provisions of this legislative measure.
Added by Laws 2006, c. 281, § 14, emerg. eff. June 7, 2006.
§68-2357.64. Annual report on qualified investments and financial
statements to Commission - Annual written statement to investors -
Required notification to Commission - Credit reporting and report
filing systems.
A. Each qualified small business capital company shall file an
annual report with the Oklahoma Tax Commission no later than April 30
of each year which lists all qualified investments in or in
conjunction with such company which may qualify for the tax credit
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allowed by Section 2357.62 or Section 2357.63 of this title. The
report shall state the amount of qualified investments in or in
conjunction with such company during the taxable year by persons,
partnerships or corporations and the social security number of such
person or the federal identification number of such partnership or
corporation making such qualified investments. The report shall also
include a schedule listing the type and amount of qualified
investment made by or in conjunction with the small business capital
company and such other information as the Tax Commission may
prescribe.
B. Each qualified small business capital company shall furnish
to each person, partnership or corporation which made a qualified
investment in or in conjunction with such company during the
preceding year a written statement showing the name of the small
business capital company, the name of the investor, the total amount
of qualified investment in or in conjunction with the company made by
such person, partnership or corporation, the amount of the qualified
investment which was subsequently invested by the capital company in
a small business venture, the date of such investment and the name of
the business venture invested in and such other information as the
Tax Commission may require. The statement shall be attached to the
income tax return or other applicable tax report or return of such
person, partnership or corporation in order to qualify for the tax
credit allowed by Section 2357.62 or Section 2357.63 of this title.
C. On or before April 30 of each year, the qualified small
business capital company shall provide to the Tax Commission a copy
of its annual financial statements, including documentation which
shall address, to the satisfaction of the Oklahoma Tax Commission,
the methods of operation and conduct of the business of the capital
company to determine whether the capital company is complying with
the terms of the Small Business Capital Formation Incentive Act and
any rules promulgated by the Tax Commission, including whether
qualified investments in Oklahoma small business ventures have been
made in the manner required by law. No credit shall be allowed for
an investment in a small business capital company unless the report
required by this subsection for the year in which the investment is
made is provided.
D. Qualified small business capital companies or any entity
making an investment in conjunction with investment by a qualified
small business capital company pursuant to Section 2357.63 of this
title must notify the Tax Commission within twenty (20) business days
if:
1. The investment in an Oklahoma small business venture is
transferred, withdrawn or otherwise returned; or
2. An occurrence upon which an investment is contingent has
taken place.
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If the qualified investment is held in the Oklahoma small
business venture for less than five (5) years, the Tax Commission
shall revoke the verification of tax credits and take action to
recapture the tax credits pursuant to Section 11 of this act to the
extent such credits were authorized based upon an amount of qualified
investment that was transferred, withdrawn or otherwise returned.
E. Any qualified small business capital company who refuses or
fails to comply with the provisions of this section or is hereafter
found guilty in a court of competent jurisdiction of any violation of
any Oklahoma tax law shall not be eligible to be a qualified small
business capital company for purposes of this act.
F. Any taxpayer who refuses or fails to comply with the
provisions of this section or is hereafter found guilty in a court of
competent jurisdiction of any violation of any Oklahoma tax law shall
not be eligible for the tax credits granted in Sections 2357.62 and
2357.63 of this title.
G. The Tax Commission is directed to immediately develop a
system for reporting of any income tax credits issued pursuant to
Sections 2357.62 and 2357.63 of this title and a system which
requires the filing of informational reports on how the qualified
investments were used, economic benchmarks achieved, implementation
of a business plan for the Oklahoma small business venture,
commercialization success, additional investments in the business by
other investors and job creation that has taken place.
Added by Laws 1997, c. 167, § 5, eff. Jan. 1, 1998. Amended by Laws
2006, c. 281, § 15, emerg. eff. June 7, 2006.
§68-2357.65. Annual report to the Legislature.
On or before November 1 of each year subsequent to the effective
date of this act, the Oklahoma Tax Commission shall file a report
with the Speaker of the House of Representatives and the President
Pro Tempore of the Senate. The report shall state the amount of
credits actually claimed and allowed pursuant to the provisions of
this act during the previous calendar year, statistical information
on the qualified investments made by qualified small business capital
companies during the previous year, an estimate of the number of jobs
created in this state during the previous year, and such other
information as the Tax Commission may deem relevant.
Added by Laws 1997, c. 167, § 6, eff. Jan. 1, 1998. Amended by Laws
2006, c. 281, § 16, emerg. eff. June 7, 2006.
§68-2357.65A. Federally regulated investment company exemption.
A. As used in this section:
1. "Federally regulated investment company" means a qualified
small business capital company as defined by Section 2357.61 of this
title and that is licensed by the United States Small Business
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Administration or the United States Department of Agriculture and
which qualifies as one of the following types of entities:
a. a Small Business Investment Company, or
b. a Specialized Small Business Investment Company, or
c. a Rural Business Investment Company, or
d. a Community Development Entity as defined by Section
45D of the Internal Revenue Code of 1986, as amended;
and
2. "Qualified small business capital company" means an entity
meeting the requirements of Section 2357.61 of this title.
B. Federally regulated investment companies shall be exempt from
the reporting requirements of subsections C and G of Section 2357.64
of this title.
C. As a condition of the exemption authorized by this section,
the federally regulated investment company shall provide to the
Oklahoma Tax Commission not later than March 15 each year:
1. A copy of the federal license issued by the applicable
federal regulatory entity;
2. A copy of all reports and compliance documents required by
the federal regulators; and
3. A copy of the annual financial audit of the federally
regulated investment company.
D. A federally regulated investment company shall also prepare
an annual summary report that discloses:
1. All investments made in for-profit business entities during
the preceding calendar year;
2. The primary business address of each for-profit business
entity in which any investment was made;
3. A statement of the business activity of each of the for-
profit business entities described in paragraphs 1 and 2 of this
subsection;
4. The type of investment instrument used to make the
investment; and
5. A status report of all investments made by the federally
regulated investment company.
E. The federally regulated investment company shall transmit a
copy of the annual summary prescribed by subsection D of this section
to the committees or subcommittees of the Oklahoma House of
Representatives and the Oklahoma State Senate having primary
jurisdiction over the Small Business Capital Formation Incentive Act,
the State Treasurer, the State Auditor and Inspector, the Director of
the Office of Management and Enterprise Services and the Oklahoma Tax
Commission.
F. The report required by subsection D of this section shall be
prepared and submitted until all of the monies available to the
federally regulated investment fund have been fully invested, all of
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the investments have been completed and the proceeds from the
investment have been disbursed to the equity investors.
Added by Laws 2007, c. 353, § 8, eff. Nov. 1, 2007. Amended by Laws
2012, c. 304, § 547.
§68-2357.66. Repealed by Laws 2013, c. 363, § 13, eff. Jan. 1, 2014.
§68-2357.67. Repealed by Laws 2013, c. 363, § 14, eff. Jan. 1, 2014.
§68-2357.71. Short title.
Sections 2357.71 through 2357.76 of this title, including
Sections 20, 21, 22, 23, 24 and 25 of this act, shall be known and
may be cited as the “Rural Venture Capital Formation Incentive Act”.
Added by Laws 2000, c. 339, § 1, eff. Jan. 1, 2001. Amended by Laws
2006, c. 281, § 17, emerg. eff. June 7, 2006.
§68-2357.72. Definitions.
As used in the Rural Venture Capital Formation Incentive Act:
1. "Acquisition" means the use of capital by an Oklahoma rural
small business venture within six (6) months after obtaining the
capital to purchase fifty-one percent (51%) or more of the voting
interest entitled to elect the governing board, or its equivalent, of
any other legal entity, regardless of the legal form of the entity.
As used in the Rural Venture Capital Formation Incentive Act,
"acquisition" does not mean the right to participate in the proceeds
from sale of goods or services, whether denominated a royalty,
royalty interest or otherwise, and does not mean the right to
intellectual property, whether the rights arise from copyright,
trademark or patent law;
2. "Capitalization" means the amount of:
a. any funds that have actually been contributed to the
qualified rural small business capital company,
b. any contractual commitment to provide funds to the
qualified rural small business capital company to the
extent that such commitment is payable on demand and
has substantial economic penalties for breach of the
commitment to provide such funds,
c. any allocation of tax credit authority awarded to the
qualified rural small business capital company by the
Community Development Financial Institutions Fund
pursuant to Section 45D of the Internal Revenue Code of
1986, as amended, to the extent such allocation has not
been previously designated by the qualified rural small
business capital company as contemplated by Section
45D(b)(1)(C) of the Internal Revenue Code of 1986, as
amended, and
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d. any funds loaned to the qualified rural small business
capital company, which is licensed as a rural business
investment company under 7 U.S.C., Section 2009cc et
seq., or any successor statute, by the U.S. Small
Business Administration or U.S. Department of
Agriculture;
3. "Equity and near-equity security" means common stock,
preferred stock, warrants or other rights to subscribe to stock or
its equivalent, or an interest in a limited liability company,
partnership, or subordinated debt that is convertible into, or
entitles the holder to receive upon its exercise, common stock,
preferred stock, a royalty or net profits interest, or an interest in
a limited liability company or partnership;
4. "Financial lending institution" means a bank, credit union,
savings and loan, commercial finance company or other entity
principally engaged in the extension of credit;
5. “Nonmetropolitan area” means all areas of the state except a
county having a population in excess of one hundred thousand
(100,000) persons according to the most recent Federal Decennial
Census;
6. "Oklahoma rural small business venture" means a business,
incorporated or unincorporated, which:
a. has or will have, within one hundred eighty (180) days
after a qualified investment is made by a qualified
rural small business capital company, at least fifty
percent (50%) of its employees or assets located in
Oklahoma,
b. needs financial assistance in order to commence or
expand such business which provides or intends to
provide goods or services,
c. has its principal place of business within a
nonmetropolitan area of the state and conducts the
activity resulting in at least seventy-five percent
(75%) of its gross annual revenue from a
nonmetropolitan area of the state,
d. except as otherwise provided by this subparagraph, is
engaged in a lawful business activity under any
Industry Number appearing under any Major Group Number
of Divisions A, C, D, E, F or I of the Standard
Industrial Classification Manual, 1987 revision with
the following exceptions:
(1) Major Group 1 of Division A, and
(2) Major Group 2 of Division A,
e. qualifies as a small business as defined by the federal
Small Business Administration, and
f. expends within eighteen (18) months after the date of
the qualified investment at least fifty percent (50%)
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of the proceeds of the qualified investment for the
acquisition of tangible or intangible assets which are
used in the active conduct of the trade or business or
for working capital for the active conduct of such
trade or business for which the determination of the
small business qualification pursuant to subparagraph e
of this paragraph was made. For purposes of this
subparagraph, “working capital” shall not include
consulting, brokerage or transaction fees. Provided,
that the Oklahoma Tax Commission, upon request and
demonstration by a qualified rural small business
capital company or an Oklahoma rural small business
venture, or an investor or an authorized agent of any
such entities, may extend the 18-month period otherwise
required by this subparagraph for a period not to
exceed six (6) months. Provided, the expenditure of
the invested funds by the Oklahoma rural small business
shall otherwise comply with the requirements applicable
to the usage of tax credits for qualified investment in
the Oklahoma rural small business venture. As used in
this subparagraph, “tangible assets” shall include the
acquisition of real property and the construction of
improvements upon real property if such acquisition and
construction otherwise comply with the requirements
applicable to the usage of tax credits for qualified
investment in the Oklahoma rural small business
venture, and “intangible assets” shall be limited to
computer software, licenses, patents, copyrights and
similar items;
7. "Qualified investment" means an investment of funds in the
form of "equity" and "near-equity" as defined in paragraph 3 of this
section or "subordinated debt" as defined in paragraph 9 of this
section; provided, an investment which is contingent upon the
occurrence of an event or which is subject to being refunded or
returned in the absence of such event shall only be deemed to have
been made upon the occurrence of the event;
8. "Qualified rural small business capital company" means a C
corporation or a subchapter S corporation, as defined by the Internal
Revenue Code of 1986, as amended, incorporated pursuant to the laws
of Oklahoma, limited liability company or a registered business
partnership with a certificate of partnership filed as required by
law, which meets the following criteria:
a. the corporation, limited liability company or
partnership is organized to provide the direct
investment of equity and near-equity funds to companies
within this state,
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b. the principal place of business of the corporation,
limited liability company or partnership is located
within this state,
c. the capitalization of the corporation, limited
liability company or partnership is not less than Five
Hundred Thousand Dollars ($500,000.00), and
d. the corporation, limited liability company or
partnership has investment of not more than twenty-five
percent (25%) of its capitalization in any one company
at any time during the calendar year of the
corporation, limited liability company or partnership;
and
9. "Subordinated debt" means indebtedness with a maturity date
of not less than five (5) years that is subordinated to all other
indebtedness of the issuer that has been issued or is to be issued to
a financial lending institution. The indebtedness shall not have a
repayment schedule that is faster than a level principal amortization
over five (5) years.
Added by Laws 2000, c. 339, § 2, eff. Jan. 1, 2001. Amended by Laws
2001, c. 382, § 7, emerg. eff. June 4, 2001; Laws 2004, c. 508, § 4,
emerg. eff. June 9, 2004; Laws 2005, c. 479, § 19, eff. July 1, 2005;
Laws 2006, c. 281, § 18, emerg. eff. June 7, 2006; Laws 2008, c. 440,
§ 7.
§68-2357.72a. Moratorium on certain tax credits.
The Legislature hereby establishes a moratorium on tax credits
authorized pursuant to Sections 2357.73 and 2357.74 of Title 68 of
the Oklahoma Statutes, subject to the provisions of subsection A of
Section 2357.73 and subsection A of Section 2357.74. Unless
otherwise repealed or revoked by the Oklahoma Legislature, the
moratorium shall be in effect for investments made on or after June
1, 2010, through December 31, 2011.
Added by Laws 2010, c. 433, § 4.
§68-2357.73. Credits for investments in qualified rural small
business capital companies.
A. Except as provided in Section 4 of this act, for taxable
years beginning after December 31, 2000, and before January 1, 2012,
there shall be allowed a credit against the tax imposed by Section
2355 or, effective January 1, 2001, Section 2370 of this title or,
effective July 1, 2001, against the tax imposed by Section 624 or 628
of Title 36 of the Oklahoma Statutes, for qualified investment in
qualified rural small business capital companies. No amount of a
qualified investment made in a qualified rural small business capital
company which has not been invested in one or more Oklahoma rural
small business ventures prior to the effective date of the moratorium
provided for in Section 4 of this act shall be eligible for any
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credit otherwise authorized pursuant to this section. No qualified
investment made in a qualified rural small business capital company
or qualified investment made by a qualified rural small business
capital company in one or more Oklahoma rural small business ventures
during the period of the moratorium pursuant to Section 4 of this act
shall be eligible for any credit otherwise authorized pursuant to
this section.
B. The credit provided for in subsection A of this section shall
be thirty percent (30%) of the amount of a qualified investment in
qualified rural small business capital companies which is
subsequently invested in an Oklahoma rural small business venture by
the qualified rural small business capital company and may only be
claimed for a taxable year during which the qualified rural small
business capital company makes the qualified investment in an
Oklahoma rural small business venture if the funds are used in
pursuit of a legitimate business purpose of the Oklahoma rural small
business venture consistent with its organizational instrument,
bylaws or other agreement responsible for the governance of the rural
small business venture. The qualified rural small business capital
company shall issue such reports as the Oklahoma Tax Commission may
require attributing the source of funds of each qualified investment
it makes in an Oklahoma rural small business venture. If the tax
credit exceeds the amount of taxes due or if there are no state taxes
due of the taxpayer, the amount of the claim not used as an offset
against the taxes of a taxable year may be carried forward for a
period not to exceed three (3) taxable years.
C. No taxpayer may claim the credit provided for in this section
for qualified investments in qualified rural small business capital
companies made prior to January 1, 2001.
D. No taxpayer may claim the credit provided for in this section
if the capital provided by a qualified rural small business capital
company is used by an Oklahoma rural small business venture for the
acquisition of any other legal entity.
E. No financial lending institution shall be eligible to claim
the credit provided for in this section except with respect to
qualified investments in a qualified rural small business capital
company.
F. No taxpayer may claim the credit authorized by this section
for the same qualified investment amount for which any credit is
claimed pursuant to either Section 2357.62 or 2357.63 of this title.
G. If a pass-through entity is entitled to a credit under this
section, the pass-through entity shall allocate such credit to one or
more of the shareholders, partners or members of the pass-through
entity; provided, the total of all credits allocated shall not exceed
the amount of the credit to which the pass-through entity is
entitled. The credit may only be claimed for funds borrowed by the
pass-through entity to make a qualified investment if a shareholder,
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partner or member to whom the credit is allocated has an unlimited
and continuing legal obligation to repay the borrowed funds but the
allocation may not exceed such shareholder’s, partner’s or member’s
pro-rata equity share of the pass-through entity even if the
taxpayer’s legal obligation to repay the borrowed funds is in excess
of such amount. For purposes of the Rural Venture Capital Formation
Incentive Act, “pass-through entity” means a corporation that for the
applicable tax years is treated as an S corporation under the
Internal Revenue Code, general partnership, limited partnership,
limited liability partnership, trust, or limited liability company
that for the applicable tax year is not taxed as a corporation for
federal income tax purposes.
Added by Laws 2000, c. 339, § 3, eff. Jan. 1, 2001. Amended by Laws
2001, c. 382, § 8, emerg. eff. June 4, 2001; Laws 2004, c. 508, § 5,
emerg. eff. June 9, 2004; Laws 2005, c. 299, § 5, eff. July 1, 2006;
Laws 2006, c. 281, § 19, emerg. eff. June 7, 2006; Laws 2008, c. 440,
§ 8; Laws 2010, c. 433, § 5.
§68-2357.74. Credit for investment made in rural small business
ventures in conjunction with investment made by qualified rural small
business capital company.
A. Except as provided in Section 4 of this act, for taxable
years beginning after December 31, 2000, and before January 1, 2012,
there shall be allowed a credit against the tax imposed by Section
2355 or, effective January 1, 2001, Section 2370 of this title or,
effective July 1, 2001, against the tax imposed by Section 624 or 628
of Title 36 of the Oklahoma Statutes, for qualified investment made
in Oklahoma rural small business ventures in conjunction with
investment in such ventures made by a qualified rural small business
capital company. No amount of a qualified investment made in
conjunction with investment made by a qualified rural small business
capital company which has not been invested in one or more Oklahoma
rural small business ventures prior to the effective date of the
moratorium provided for in Section 4 of this act shall be eligible
for any credit otherwise authorized pursuant to this section. No
qualified investment made in conjunction with investment made by a
qualified rural small business capital company in one or more
Oklahoma rural small business ventures during the period of the
moratorium pursuant to Section 4 of this act shall be eligible for
any credit otherwise authorized pursuant to this section.
B. The credit provided for in this section shall be thirty
percent (30%) of the qualified investment made in Oklahoma rural
small business ventures in conjunction with qualified investment in
such ventures made by a qualified rural small business capital
company and shall be allowed for the taxable year during which the
qualified investment is made in an Oklahoma rural small business
venture. If the tax credit allowed pursuant to subsection A of this
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section exceeds the amount of taxes due or if there are no state
taxes due of the taxpayer, the amount of the claim not used as an
offset against the taxes of a taxable year may be carried forward for
a period not to exceed three (3) taxable years. To qualify for the
credit authorized by this section, a qualified investment shall be:
1. Made by a shareholder or partner of a qualified rural small
business capital company that has made a qualified investment in an
Oklahoma rural small business venture;
2. Invested in the purchase of equity or near-equity in an
Oklahoma rural small business venture;
3. Made under the same terms and conditions as the qualified
investment made by the qualified rural small business capital
company; and
4. Limited to the lesser of:
a. two hundred percent (200%) of any qualified investment
by the taxpayer in the qualified rural small business
capital company, or
b. two hundred percent (200%) of the qualified investment
made by the qualified rural small business capital
company in the Oklahoma rural small business venture.
C. No taxpayer may claim the credit provided for in this section
for qualified investment made prior to January 1, 2001.
D. No taxpayer may claim the credit authorized by this section
for the same qualified investment amount for which any credit is
claimed pursuant to either Section 2357.62 or 2357.63 of this title.
E. If a pass-through entity is entitled to a credit under this
section, the pass-through entity shall allocate such credit to one or
more of the shareholders, partners or members of the pass-through
entity; provided, the total of all credits allocated shall not exceed
the amount of the credit to which the pass-through entity is
entitled. The credit may also be claimed for funds borrowed by the
pass-through entity to make a qualified investment if a shareholder,
partner or member to whom the credit is allocated has an unlimited
and continuing legal obligation to repay the borrowed funds but the
allocation may not exceed such shareholder’s, partner’s or member’s
pro-rata equity share of the pass-through entity even if the
taxpayer’s legal obligation to repay the borrowed funds is in excess
of such amount. For purposes of the Rural Venture Capital Formation
Incentive Act, “pass-through entity” means a corporation that for the
applicable tax years is treated as an S corporation under the
Internal Revenue Code, general partnership, limited partnership,
limited liability partnership, trust, or limited liability company
that for the applicable tax year is not taxed as a corporation for
federal income tax purposes.
Added by Laws 2000, c. 339, § 4, eff. Jan. 1, 2001. Amended by Laws
2001, c. 382, § 9, emerg. eff. June 4, 2001; Laws 2004, c. 508, § 6,
emerg. eff. June 9, 2004; Laws 2005, c. 299, § 6, eff. July 1, 2006;
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Laws 2006, c. 281, § 20, emerg. eff. June 7, 2006; Laws 2008, c. 440,
§ 9; Laws 2010, c. 433, § 6.
§68-2357.74A. Requirements for funds invested in rural small
business ventures - Recapture of credits - Use of near equity or
subordinated debt - Offering material statement.
A. For purposes of claiming any tax credits authorized by
Sections 2357.73 and 2357.74 of Title 68 of the Oklahoma Statutes,
any funds invested in an Oklahoma rural small business venture shall
be subject to the following requirements:
1. The Oklahoma rural small business venture must issue its
equity securities or subordinated debt instruments in exchange for a
qualified investment within thirty (30) days of the date as of which
the investment occurs;
2. The qualified rural small business capital company or any
entity making an investment in conjunction with investment by a
qualified rural small business capital company pursuant to Section
2357.74 of Title 68 of the Oklahoma Statutes must reflect the
documented qualified investment in the Oklahoma rural small business
venture as an asset in its accounting system;
3. The qualified rural small business capital company shall not
make a qualified investment in an Oklahoma small business venture in
which it has, at any time, more than fifty percent (50%) ownership,
whether directly or indirectly, of the voting interest entitled to
elect the governing board of any Oklahoma rural small business
venture in which a qualified investment is to be made by the
qualified rural small business capital company;
4. The qualified rural small business capital company cannot
enter into any agreement, whether formal or informal, written or
unwritten, the purpose of which is to control, directly or
indirectly, the return of a specific amount of qualified investment
by the Oklahoma rural small business venture to the qualified rural
small business capital company or the purpose of which is to cause or
require the transfer of such specific amount of qualified investment
to any other entity within five (5) years of the date the qualified
investment is made available to the Oklahoma rural small business
venture; and
5. The Oklahoma rural small business venture cannot enter into
any agreement, whether formal or informal, written or unwritten, the
purpose of which is to control, directly or indirectly, the return of
a specific amount of qualified investment to the qualified rural
small business capital company or the purpose of which is to cause or
require the transfer of such specific amount of qualified investment
to any other entity within five (5) years of the date the qualified
investment is made available to the Oklahoma rural small business
venture.
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B. The Oklahoma Tax Commission shall have the authority to make
an independent determination that any proposed use of monies, assets,
funds or other things of value which are to be used for purposes of
claiming any credits authorized by Sections 2357.73 and 2357.74 of
Title 68 of the Oklahoma Statutes are for a legitimate business
purpose of the Oklahoma rural small business venture and not for the
primary purpose of obtaining the tax credits authorized by such
sections on the basis of activity which does not have substantial
economic profit-based potential.
C. The Tax Commission shall be authorized to recapture the
credits otherwise authorized by the provisions of Sections 2357.73
and 2357.74 of Title 68 of the Oklahoma Statutes according to the
provisions of Section 22 of this act if it finds that the transaction
does not meet the requirements of the Rural Venture Capital Formation
Incentive Act.
D. The provisions of this section shall not prohibit a qualified
rural small business capital company from using near equity or
subordinated debt, as those terms are defined by Section 2357.72 of
Title 68 of the Oklahoma Statutes, if the near equity or subordinated
debt is a contractual obligation owed by the Oklahoma rural small
business venture directly to the qualified rural small business
capital company and if the agreement governing the obligation
complies with all of the other requirements of this section.
E. The provisions of this section shall not prohibit the
shareholders or partners of a qualified rural small business capital
company from using near equity or subordinated debt, as those terms
are defined by Section 2357.72 of Title 68 of the Oklahoma Statutes,
if the near equity or subordinated debt is a contractual obligation
owed by the Oklahoma rural small business venture directly to a
shareholder or partner of a qualified rural small business capital
company that has invested funds in an Oklahoma rural small business
venture pursuant to Section 2357.74 of Title 68 of the Oklahoma
Statutes and if the agreement governing the obligation complies with
all of the other requirements of this section.
F. Any offering material involving the solicitation of qualified
investments in exchange for equity securities or subordinated debt
instruments of the qualified small business capital company shall
include the following statement:
“Any favorable determination letter obtained from the Oklahoma
Tax Commission does not guarantee the granting of tax credits under
the provisions of the Rural Venture Capital Formation Incentive Act.
In the event applicable provisions of the Rural Venture Capital
Formation Incentive Act are violated, the Tax Commission may require
forfeiture of unused tax credits and recapture or repayment of tax
credits as provided by law.”
Added by Laws 2006, c. 281, § 21, emerg. eff. June 7, 2006.
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§68-2357.74B. Recapture event - Tax increase due to recaptured
credit amount.
A. As used in this section, “recapture event” means that with
respect to a qualified investment in an Oklahoma rural small business
venture:
1. The Oklahoma rural small business venture fails to expend at
least fifty percent (50%) of the proceeds of qualified investments
for acquisition of tangible or intangible assets to be used in the
active conduct of the trade or business or for working capital for
the active conduct of the trade or business of the rural small
business venture within eighteen (18) months after the qualified
investment is made or within an extension of such period as provided
in Section 2357.72 of this title. For purposes of this paragraph,
“working capital” shall not include consulting, brokerage or
transaction fees;
2. The investment in the rural small business venture is
transferred, withdrawn or otherwise returned within five (5) years;
provided, a “recapture event” shall not include the transfer,
withdrawal or return of an investment as a result of a “market-based
liquidity event”. As used in the Rural Venture Capital Formation
Incentive Act, a “market-based liquidity event” means that an
Oklahoma rural small business venture:
a. sells all or substantially all of its assets to, or is
acquired by share acquisition, share exchange, merger,
consolidation or other similar transaction by another
person or entity other than:
(1) a person or entity controlled by a person that
made a qualified investment in the qualified rural
small business capital company that provided funds
for use by the Oklahoma rural small business
venture, or
(2) a person or entity controlled by a person that
made an investment in conjunction with a qualified
investment made by the qualified rural small
business capital company that provided funds for
use by the Oklahoma rural small business venture,
b. conducts an initial public offering of a class of its
equity securities pursuant to the requirements of the
United States Securities and Exchange Commission or
other applicable federal law governing the sale of
securities in interstate commerce,
c. makes an amortization payment under the terms of a
subordinated debt instrument, or
d. repays indebtedness from net income as determined in
accordance with generally accepted accounting
principles or proceeds of the sale of assets in the
ordinary course of business; or
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3. The Oklahoma Tax Commission finds that the qualified
investment does not meet the requirements of the Rural Venture
Capital Formation Incentive Act.
B. If a recapture event occurs with respect to a qualified
investment for which a credit authorized by either Section 2357.73 or
Section 2357.74 of this title has been claimed, the tax imposed
pursuant to the applicable provisions of Title 36 or this title of
the Oklahoma Statutes against which the credit has been claimed shall
be increased to the extent of the recaptured credit amount.
C. For purposes of this section, the recapture amount shall be
equal to the sum of:
1. The aggregate decrease in the credits previously allowed to
the taxpayer pursuant to Section 2357.73 or Section 2357.74 of this
title for all prior taxable periods which would have resulted if no
credit had been authorized with respect to the qualified investment;
plus
2. Interest at the rate prescribed by Section 217 of this title
on the amount determined pursuant to paragraph 1 of this subsection
for each prior taxable period for the period beginning on the due
date for filing the applicable report or return for the prior taxable
period.
D. The tax for the taxable period shall be increased pursuant to
this section only with respect to credits which were used to reduce
tax liability. In the case of credits not used to reduce tax
liability, the carryforwards allowed shall be adjusted accordingly.
E. For any transaction that is audited by the Tax Commission
after such credits have been allowed, but which is subsequently
determined to constitute a recapture event, the Tax Commission shall
be required to disallow any and all credits claimed in violation of
the requirements of this section or any other provision of the Rural
Venture Capital Formation Incentive Act for a period of ten (10)
years after the date as of which any applicable tax report or return
utilizing such credits is filed.
F. The provisions of subsection E of this section shall
supersede any other provision of the Uniform Tax Procedure Code or
any other state tax law that would prohibit the disallowance of such
credits based upon an otherwise applicable statute of limitations.
G. Notwithstanding any other provision of this section, a
recapture event shall not occur with respect to qualified investments
made by a qualified rural small business capital company that is also
licensed as a rural business investment company under 7 U.S.C.,
Section 2009cc et seq., or any successor statute, at the time of the
qualified investment. The qualified rural small business capital
company shall include in its annual report proof of a valid license
under the federal statute.
Added by Laws 2006, c. 281, § 22, emerg. eff. June 7, 2006. Amended
by Laws 2008, c. 440, § 10.
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§68-2357.74C. Required records to be prepared and maintained.
A. Each qualified rural small business capital company shall
prepare and maintain on a current basis the following records and
make them available to the Oklahoma Tax Commission upon request:
1. Files for each director and principal of the capital company
including the name, address, social security number or federal
identification number and such other identifying information as the
Tax Commission may require;
2. Records concerning all securities issued by the capital
company which include:
a. the type of the security issued,
b. the name, address and telephone number of the investor,
c. the date of the transaction, and
d. the total amount of the qualified investment;
3. Records relating to each person making a qualified investment
which shall include the social security number or federal tax
identification number of each investor;
4. Records relating to each Oklahoma rural small business
venture in which the capital company made a qualified investment
which includes:
a. the name of the business,
b. location of the headquarters and principal business
operations of the business,
c. a description of the type of business in which engaged,
d. evidence that the venture meets the definition of an
Oklahoma rural small business venture,
e. a copy of any contractual agreement entered into
between the capital company and the venture,
f. the amount of qualified investment in the venture,
g. the type of investment along with supporting
documentation,
h. the date of the investment, and
i. the source of the funds invested;
5. Organizational documents of the qualified rural small
business capital company and any additional documents relating to the
organization or operation of the capital company as requested by the
Tax Commission;
6. Records relating to all capitalization of the capital company
which is not invested in Oklahoma rural small business ventures;
7. Records relating to all distributions made by the capital
company which includes the date of the distribution, the amount of
the distribution, to whom the distribution was paid, and the purpose
of the distribution; and
8. All other records that may be requested by the Tax
Commission.
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B. All records required by this section shall be preserved for a
period of ten (10) years.
Added by Laws 2006, c. 281, § 23, emerg. eff. June 7, 2006.
§68-2357.74D. Rules regarding determination letter procedures.
A. The Oklahoma Tax Commission shall promulgate rules
establishing procedures under which:
1. A qualified rural small business capital company may, prior
to making an investment in an Oklahoma rural small business venture,
request a determination letter from the Tax Commission that a
business in which it proposes to invest is an “Oklahoma rural small
business venture”;
2. A person or entity may request a determination letter that a
company meets the definition of a “qualified rural small business
capital company”; and
3. A person or entity may request a determination letter that a
transfer of funds meets the definition of a “qualified investment”.
Added by Laws 2006, c. 281, § 24, emerg. eff. June 7, 2006.
§68-2357.74E. Effect of favorable determination letters issued prior
to March 15, 2006 - Credit requirements.
A. Any person or entity that has obtained a favorable
determination letter from the Oklahoma Tax Commission prior to March
15, 2006, regarding the ability to claim or otherwise utilize any of
the tax credits authorized pursuant to the provisions of Section
2357.73 or 2357.74 of Title 68 of the Oklahoma Statutes shall not be
subject to the amendments to the Rural Capital Formation Incentive
Act made by this legislative measure to qualify for the tax credits
authorized pursuant to the provisions of Section 2357.73 or 2357.74
of this title except as provided in this section. Notwithstanding
any determination letter issued with respect to such investment, no
credit shall be allowed unless:
1. Such qualified investment is made prior to November 1, 2006,
to satisfy a legitimate business purpose of the entity receiving such
investment which is consistent with its organizational instrument,
bylaws or other agreement responsible for the governance of the
business venture;
2. The investor’s funds were at risk; and
3. The investment was not made chiefly for the purpose of
reducing tax liability.
B. Any investment in a qualified rural small business capital
company or an Oklahoma rural small business venture that occurs on or
after November 1, 2006, shall be subject to all of the provisions of
the Rural Venture Capital Formation Incentive Act as amended by the
provisions of this legislative measure.
Added by Laws 2006, c. 281, § 25, emerg. eff. June 7, 2006.
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§68-2357.75. Reporting to Oklahoma Tax Commission.
A. Each qualified rural small business capital company shall
file an annual report with the Oklahoma Tax Commission no later than
April 30 of each year which lists all qualified investments in or in
conjunction with such company which may qualify for the tax credit
allowed by Section 2357.73 or Section 2357.74 of this title. The
report shall state the amount of qualified investments in or in
conjunction with such company during the taxable year by persons,
partnerships or corporations and the social security number of such
person or the federal identification number of such partnership or
corporation making such qualified investments. The report shall also
include a schedule listing the type and amount of qualified
investment made by or in conjunction with the rural small business
capital company and such other information as the Tax Commission may
prescribe.
B. Each qualified rural small business capital company shall
furnish to each person, partnership or corporation which made a
qualified investment in or in conjunction with such company during
the preceding year a written statement showing the name of the rural
small business capital company, the name of the investor, the total
amount of qualified investment in or in conjunction with the company
made by such person, partnership or corporation, the amount of the
qualified investment which was subsequently invested by the capital
company in a rural small business venture, the date of such
investment and the name of the business venture invested in and such
other information as the Tax Commission may require. The statement
shall be attached to the income tax return or other applicable tax
report or return of such person, partnership or corporation in order
to qualify for the tax credit allowed by Section 2357.73 or Section
2357.74 of this title.
C. On or before April 30 of each year, the qualified rural small
business capital company shall provide to the Tax Commission a copy
of its annual financial statements, including documentation which, to
the satisfaction of the Oklahoma Tax Commission, shall address the
methods of operation and conduct of the business of the capital
company to determine whether the capital company is complying with
the terms of the Rural Venture Capital Formation Incentive Act and
any rules promulgated by the Tax Commission, including whether
qualified investments in Oklahoma rural small business ventures have
been made in the manner required by law. No credit shall be allowed
for an investment in a rural small business capital company unless
the report required by this subsection for the year in which the
investment is made is provided.
D. Qualified rural small business capital companies or any
entity making an investment in conjunction with investment by a
qualified rural small business capital company pursuant to Section
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2357.74 of this title must notify the Tax Commission within twenty
(20) business days if:
1. The investment in an Oklahoma rural small business venture is
transferred, withdrawn or otherwise returned; or
2. An occurrence upon which an investment is contingent has
taken place.
If the qualified investment is held in the Oklahoma rural small
business venture for less than five (5) years, the Tax Commission
shall revoke the verification of tax credits and take action to
recapture the tax credits pursuant to Section 22 of this act to the
extent such credits were authorized based upon an amount of qualified
investment that was transferred, withdrawn or otherwise returned.
E. Any qualified rural small business capital company who
refuses or fails to comply with the provisions of this section or is
hereafter found guilty in a court of competent jurisdiction of any
violation of any Oklahoma tax law shall not be eligible to be a
qualified rural small business capital company for purposes of this
act.
F. Any taxpayer who refuses or fails to comply with the
provisions of this section or is hereafter found guilty in a court of
competent jurisdiction of any violation of any Oklahoma tax law shall
not be eligible for the tax credits granted in Sections 2357.73 and
2357.74 of this title.
G. The Tax Commission is directed to immediately develop a
system for reporting of any tax credits issued pursuant to Sections
2357.73 and 2357.74 of this title and a system which requires the
filing of informational reports on how the qualified investments were
used, economic benchmarks achieved, implementation of a business plan
for the Oklahoma rural small business venture, commercialization
success, additional investments in the business by other investors
and job creation that has taken place.
Added by Laws 2000, c. 339, § 5, eff. Jan. 1, 2001. Amended by Laws
2006, c. 281, § 26, emerg. eff. June 7, 2006.
§68-2357.76. Annual reporting to legislature.
On or before November 1 of each year subsequent to the effective
date of the Rural Venture Capital Formation Incentive Act, the
Oklahoma Tax Commission shall file a report with the Speaker of the
House of Representatives and the President Pro Tempore of the Senate.
The report shall state the amount of credits actually claimed and
allowed pursuant to the provisions of this act during the previous
calendar year, statistical information on the qualified investments
made by qualified rural small business capital companies during the
previous year, an estimate of the number of jobs created in this
state during the previous year and such other information as the Tax
Commission may deem relevant to the effective administration of the
Rural Venture Capital Formation Incentive Act.
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Added by Laws 2000, c. 339, § 6, eff. Jan. 1, 2001. Amended by Laws
2006, c. 281, § 27, emerg. eff. June 7, 2006.
§68-2357.76A. Federally regulated investment company exemption.
A. As used in this section:
1. "Federally regulated investment company" means a qualified
rural small business capital company as defined by Section 2357.72 of
this title and that is licensed by the United States Small Business
Administration or the United States Department of Agriculture and
which qualifies as one of the following types of entities:
a. a Small Business Investment Company, or
b. a Specialized Small Business Investment Company, or
c. a Rural Business Investment Company, or
d. a Community Development Entity as defined by Section
45D of the Internal Revenue Code of 1986, as amended;
and
2. "Qualified rural small business capital company" means an
entity meeting the requirements of Section 2357.72 of this title.
B. Federally regulated investment companies shall be exempt from
the requirements of subsections C and G of Section 2357.75 of this
title.
C. As a condition of the exemption authorized by this section,
the federally regulated investment company shall provide to the
Oklahoma Tax Commission not later than March 15 each year:
1. A copy of the federal license issued by the applicable
federal regulatory entity;
2. A copy of all reports and compliance documents required by
the federal regulators; and
3. A copy of the annual financial audit of the federally
regulated investment company.
D. A federally regulated investment company shall also prepare
an annual summary report that discloses:
1. All investments made in for-profit business entities during
the preceding calendar year;
2. The primary business address of each for-profit business
entity in which any investment was made;
3. A statement of the business activity of each of the for-
profit business entities described in paragraphs 1 and 2 of this
subsection;
4. The type of investment instrument used to make the
investment; and
5. A status report of all investments made by the federally
regulated investment company.
E. The federally regulated investment company shall transmit a
copy of the annual summary prescribed by subsection D of this section
to the committees or subcommittees of the Oklahoma House of
Representatives and the Oklahoma State Senate having primary
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jurisdiction over the Rural Venture Capital Formation Incentive Act,
the State Treasurer, the State Auditor and Inspector, the Director of
the Office of Management and Enterprise Services and the Oklahoma Tax
Commission.
F. The report required by subsection D of this section shall be
prepared and submitted until all of the monies available to the
federally regulated investment fund have been fully invested, all of
the investments have been completed and the proceeds from the
investment have been disbursed to the equity investors.
Added by Laws 2007, c. 353, § 9, eff. Nov. 1, 2007. Amended by Laws
2012, c. 304, § 548.
§68-2357.81. Repealed by Laws 2013, c. 363, § 15, eff. Jan. 1, 2014.
§68-2357.100. Credit for purchase and transportation of poultry
litter – Calculation – Qualification – Carry-forward period.
A. For taxable years beginning after December 31, 2004, and
ending on or before December 31, 2009, there shall be allowed a
credit against the tax imposed by Section 2355 of this title for the
purchase and transportation of poultry litter. Subject to the
limitations provided in subsection C of this section, the credit
shall be available to the purchaser of the poultry litter and shall
equal Five Dollars ($5.00) per ton purchased and transported.
B. Except as provided in subsection F of this section, for
taxable years beginning after December 31, 2009, and ending on or
before December 31, 2013, there shall be allowed a credit against the
tax imposed by Section 2355 of this title for the purchase and
transportation of poultry litter. Subject to the limitations
provided in subsection C of this section, the credit shall be
available to the purchaser of the poultry litter and shall equal Ten
Dollars ($10.00) per ton purchased and transported.
C. 1. The total of the credits authorized by this section shall
not exceed Three Hundred Seventy-five Thousand Dollars ($375,000.00)
annually. The amount of the credit for each purchaser shall be
adjusted annually so that the total estimate of the credits
authorized by this section does not exceed Three Hundred Seventy-five
Thousand Dollars ($375,000.00). The formula to be used for the
percentage adjustment shall be Three Hundred Seventy-five Thousand
Dollars ($375,000.00) divided by the credits claimed in the preceding
year. In no event shall the credit be claimed more than once by a
taxpayer each taxable year.
2. In the event the total tax credits authorized by this section
exceed Three Hundred Seventy-five Thousand Dollars ($375,000.00) in
any calendar year, the Oklahoma Tax Commission shall permit any
excess over Three Hundred Seventy-five Thousand Dollars ($375,000.00)
but shall factor such excess into the percentage adjustment formula
for subsequent years.
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D. In order to qualify for the credit provided for in
subsections A and B of this section:
1. The poultry litter shall only be purchased from an Oklahoma-
based poultry operation registered with the State Board of
Agriculture and located within an environmentally sensitive and
nutrient-limited watershed area as defined in the most recent
Oklahoma Water Quality Standards;
2. The poultry litter shall be used or spread in a watershed
that is not environmentally sensitive and nutrient-limited as defined
in the most recent Oklahoma Water Quality Standards; and
3. The poultry litter shall be applied by a certified poultry
waste applicator as defined by Section 10-9.1 of Title 2 of the
Oklahoma Statutes and in accordance with the provisions of Sections
10-9.16 through 10-9.21 of Title 2 of the Oklahoma Statutes and any
rules promulgated by the Oklahoma Department of Agriculture, Food,
and Forestry.
E. The credit allowed by this section shall be available to the
taxpayer in the year in which the poultry litter was purchased and
transported, provided the taxpayer is found by the Oklahoma
Department of Agriculture, Food, and Forestry to have applied the
poultry litter in a manner consistent with an Animal Waste Management
Plan, as defined in Section 10-9.1 of Title 2 of the Oklahoma
Statutes, specifically designed to restore and protect beneficial
uses from impairment from nutrients. If the credit exceeds the
amount of income taxes due or if there are no state income taxes due
on the income of the taxpayer, the amount of the credit not used as
an offset against the income taxes for a year may be carried forward
as a credit against subsequent income tax liability for a period not
to exceed five (5) years.
F. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
Added by Laws 2004, c. 510, § 1, eff. Jan. 1, 2005. Amended by Laws
2005, c. 442, § 1, eff. Nov. 1, 2005; Laws 2008, c. 278, § 4, eff.
Jan. 1, 2009; Laws 2010, c. 327, § 21, eff. July 1, 2010.
§68-2357.101. Credit for investment in film or music project.
A. Except as otherwise provided in subsection E of this section,
for taxable years beginning after December 31, 2004, and ending
before January 1, 2015, there shall be allowed against the tax
imposed by Section 2355 of this title, a credit equal to twenty-five
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percent (25%) of the amount of profit made by a taxpayer from
investment in an existing Oklahoma film or music project with a
production company to pay for production costs that is reinvested by
the taxpayer with the production company to pay for the production
cost of the production company for a new Oklahoma film or music
project.
B. In no event shall the amount of the credit provided for in
subsection A of this section for an eligible taxpayer exceed the tax
liability of the taxpayer in a calendar year.
C. The Oklahoma Tax Commission shall have the authority to
prescribe forms for purposes of claiming the credit authorized in
subsection A of this section. The forms shall include, but not be
limited to, requests for information that prove who the investment
was with, the amount of the original investment and the amount of the
profit realized from the investment.
D. As used in this section:
1. "Film" means a professional single media, multimedia program
or feature, which is not child pornography as defined in subsection A
of Section 1024.1 of Title 21 of the Oklahoma Statutes or obscene
material as defined in paragraph 1 of subsection B of Section 1024.1
of Title 21 of the Oklahoma Statutes including, but not limited to,
national advertising messages that are broadcast on a national
affiliate or cable network, fixed on film or digital video, which can
be viewed or reproduced and which is exhibited in theaters, licensed
for exhibition by individual television stations, groups of stations,
networks, cable television stations or other means or licensed for
home viewing markets;
2. "Music project" means a professional recording released on a
national or international level, whether via traditional
manufacturing or distributing or electronic distribution, using
technology currently in use or future technology including, but not
limited to, music CDs, radio commercials, jingles, cues, or
electronic device recordings;
3. "Production company" means a person who produces a film or
music project for exhibition in theaters, on television or elsewhere;
4. "Total production cost" includes, but is not limited to:
a. wages or salaries of persons who have earned income
from working on a film or music project in this state,
including payments to personal services corporations
with respect to the services of qualified performing
artists, as determined under Section 62(a)(A) of the
Internal Revenue Code,
b. the cost of construction and operations, wardrobe,
accessories and related services,
c. the cost of photography, sound synchronization,
lighting and related services,
d. the cost of editing and related services,
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e. rental of facilities and equipment, and
f. other direct costs of producing a film or music
project;
5. "Existing Oklahoma film or music project" means a film or
music project produced after July 1, 2005;
6. "Profit" means the amount made by the taxpayer to be
determined as follows:
a. the gross revenues less gross expenses, including
direct production, distribution and marketing costs and
an allocation of indirect overhead costs, of the film
or music project shall be multiplied by,
b. a ratio, the numerator of which is Oklahoma production
costs, as defined in paragraph 7 of this subsection,
and the denominator of which is total production costs,
as defined in paragraph 4 of this subsection, which
shall be multiplied by,
c. the percent of the taxpayer's taxable income allocated
to Oklahoma in a taxable year, and
d. subtract from the result of the formula calculated
pursuant to subparagraphs a through c of this paragraph
the profit made by a taxpayer from investment in an
existing Oklahoma film or music project in previous
taxable years. Profit shall include either a net
profit or net loss;
7. "Oklahoma production cost" means that portion of total
production costs which are incurred with any qualified vendor;
8. a. "Qualified vendor" means an Oklahoma entity which
provides goods or services to a production company and
for which:
(1) fifty percent (50%) or more of its employees are
Oklahoma residents, and
(2) fifty percent (50%) or more of gross wages, as
reported on Internal Revenue Service Form W-2 or
Form 1099, are paid to Oklahoma residents.
b. For purposes of this paragraph, an employee shall
include a self-employed individual reporting income
from a qualified vendor on Internal Revenue Service
Form 1040.
c. The Oklahoma Tax Commission shall prescribe forms by
which an entity may be certified to a production
company as a qualified vendor for purposes of this
section; and
9. "Investment" means costs associated with the original
production company. Film or music projects acquired from an original
production company do not qualify as investment under subsection A of
this section.
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E. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
Added by Laws 2005, c. 301, § 1, emerg. eff. June 6, 2005. Amended
by Laws 2006, c. 260, § 1, eff. July 1, 2006; Laws 2010, c. 327, §
22, eff. July 1, 2010; Laws 2014, c. 291, § 1, eff. Nov. 1, 2014.
§68-2357.102. Repealed by Laws 2013, c. 363, § 16, eff. Jan. 1,
2014.
§68-2357.103. Short title.
A. Sections 7 and 8 of this act shall be known and may be cited
as the “Railroad Modernization Act of 2005”.
B. The exercise of the powers granted to the Department of
Transportation and the Oklahoma Tax Commission by the Railroad
Modernization Act of 2005 shall be in all respects for the benefit of
the people of this state and for the increase of their commerce and
prosperity.
Added by Laws 2005, c. 413, § 7, eff. July 1, 2005.
NOTE: Editorially renumbered from § 2357.101 of this title to avoid
duplication in numbering.
§68-2357.104. Tax credit for railroad reconstruction or replacement
expenditures.
A. Except as otherwise provided by this section, for taxable
years beginning after December 31, 2005, there shall be allowed a
credit against the tax imposed by Section 2355 of this title equal to
fifty percent (50%) of an eligible taxpayer's qualified railroad
reconstruction or replacement expenditures.
B. 1. Except as provided in paragraph 2 of this subsection, the
amount of the credit shall be limited to the product of Five Hundred
Dollars ($500.00) for tax year 2007 and Two Thousand Dollars
($2,000.00) for tax year 2008 and subsequent tax years and the number
of miles of railroad track owned or leased within this state by the
eligible taxpayer as of the close of the taxable year.
2. In tax year 2009 and subsequent tax years, a taxpayer may
elect to increase the limit provided in paragraph 1 of this
subsection to an amount equal to three times the limit specified in
paragraph 1 of this subsection for qualified expenditures made in the
tax year; provided, the taxpayer may only claim one-third (1/3) of
the credit in any one taxable period.
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C. The credit allowed pursuant to subsection A of this section
but not used shall be freely transferable, by written agreement, to
subsequent transferees at any time during the five (5) years
following the year of qualification. An eligible transferee shall be
any taxpayer subject to the tax imposed by Section 2355 of this
title. The person originally allowed the credit and the subsequent
transferee shall jointly file a copy of the written credit transfer
agreement with the Oklahoma Tax Commission within thirty (30) days of
the transfer. The written agreement shall contain the name, address
and taxpayer identification number of the parties to the transfer,
the amount of credit being transferred, the year the credit was
originally allowed to the transferring person and the tax year or
years for which the credit may be claimed. The Tax Commission shall
promulgate rules to permit verification of the timeliness of a tax
credit claimed upon a tax return pursuant to this subsection but
shall not promulgate any rules which unduly restrict or hinder the
transfers of such tax credit. The Department of Transportation shall
promulgate rules to permit verification of the eligibility of an
eligible taxpayer's expenditures for the purpose of claiming the
credit. The rules shall provide for the approval of qualified
railroad reconstruction or replacement expenditures prior to
commencement of a project and provide a certificate of verification
upon completion of a project that uses qualified railroad
reconstruction or replacement expenditures. The certificate of
verification shall satisfy all requirements of the Tax Commission
pertaining to the eligibility of the person claiming the credit.
D. Any credits allowed pursuant to the provisions of subsection
A of this section but not used in any tax year may be carried over in
order to each of the five (5) years following the year of
qualification.
E. A taxpayer who elects to increase the limitation on the
credit under paragraph 2 of subsection B of this section shall not be
granted additional credits under subsection A of this section during
the period of such election.
F. As used in this section:
1. "Class II and Class III railroad" means a railroad that is
classified by the United States Surface Transportation Board as a
Class II or Class III railroad;
2. "Eligible taxpayer" means any Class II or Class III railroad;
and
3. "Qualified railroad reconstruction or replacement
expenditures" means expenditures for:
a. reconstruction or replacement of railroad
infrastructure including track, roadbed, bridges,
industrial leads and track-related structures owned or
leased by a Class II or Class III railroad as of
January 1, 2006, or
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b. new construction of industrial leads, switches, spurs
and sidings and extensions of existing sidings by a
Class II or Class III railroad.
G. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2012.
Beginning July 1, 2012, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2012, according to the provisions
of this section.
H. The credit otherwise authorized by the provisions of this
section shall be reduced by twenty-five percent (25%) for any taxable
year which begins on or after January 1, 2016. The provisions of
this subsection shall not be applicable to tax credits carried
forward from any tax year which began prior to January 1, 2016.
I. For tax years beginning on or after January 1, 2018, the
total amount of credits authorized by this section used to offset tax
shall be adjusted annually to limit the annual amount of credits to
Two Million Dollars ($2,000,000.00). The Tax Commission shall
annually calculate and publish a percentage by which the credits
authorized by this section shall be reduced so the total amount of
credits used to offset tax does not exceed Two Million Dollars
($2,000,000.00) per year. The formula to be used for the percentage
adjustment shall be Two Million Dollars ($2,000,000.00) divided by
the credits claimed in the second preceding year.
J. Pursuant to subsection I of this section, in the event the
total tax credits authorized by this section exceed Two Million
Dollars ($2,000,000.00) in any calendar year, the Tax Commission
shall permit any excess over Two Million Dollars ($2,000,000.00) but
shall factor such excess into the percentage adjustment formula for
subsequent years.
Added by Laws 2005, c. 413, § 8, eff. July 1, 2005. Amended by Laws
2006, 2nd Ex. Sess., c. 44, § 24, eff. July 1, 2007; Laws 2008, c.
122, § 1, eff. Nov. 1, 2008; Laws 2010, c. 327, § 24, eff. July 1,
2010; Laws 2016, c. 325, § 1, eff. Jan. 1, 2016; Laws 2018, 2nd Ex.
Sess., c. 7, § 1, eff. Jan. 1, 2018.
NOTE: Editorially renumbered from § 2357.102 of this title to avoid
a duplication in numbering.
§68-2357.201. Definitions - Amount of credit.
A. As used in this act:
1. “Qualified business enterprise” means an entity or affiliated
group of entities electing to file a consolidated Oklahoma income tax
return:
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a. organized as a corporation, partnership, limited
liability company or other entity having limited
liability pursuant to the laws of the State of Oklahoma
or the laws of another state, if such entity is
registered to do business within the state, a general
partnership, limited liability partnership, limited
liability limited partnership or other legal entity
having the right to conduct lawful business within the
state,
b. whose principal business activities are described by the
North American Industry Classification System by
Industry No. 514210, or Industry No. 541512 or Industry
No. 541519 as reflected in the 1997 edition of such
publication,
c. that makes at least seventy-five percent (75%) of its
sales to out-of-state customers or buyers which shall be
determined in the same manner as provided for purposes
of the Oklahoma Quality Jobs Program Act,
d. that is a high-speed processing facility in Oklahoma
utilizing systems such as TPF, zTPF or other advanced
technical systems,
e. that, as of July 1, 2005, maintains an Oklahoma annual
payroll of at least Eighty-five Million Dollars
($85,000,000.00), and
f. that, as of July 1, 2005, maintains an Oklahoma labor
force of one thousand (1,000) or more persons;
2. “Qualified capital expenditures” means those costs incurred
by the qualified business enterprise for acquisition of personal
property to be used in business operations within the state that
qualifies for depreciation and/or amortization pursuant to the
Internal Revenue Code of 1986, as amended, during the taxable year
for which the credit authorized by this section is claimed, or costs
incurred to refurbish, repair or maintain any existing personal
property located within the state;
3. “Qualified wages” means compensation, including any employer-
paid health care benefits, to full-time or part-time employees of the
qualified business enterprise if such employees are full-time
residents of the state; and
4. “Qualified training expenses” means those costs, whether or
not deductible as a business expense pursuant to the Internal Revenue
Code of 1986, as amended, incurred to locate, interview, hire and
educate an employee of the enterprise who has not previously been
employed by the enterprise and who is a resident of the state.
B. For taxable years beginning after December 31, 2005, and
ending not later than December 31, 2013, there shall be allowed as a
credit against the tax imposed by Section 2355 of this title, subject
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to the limitations imposed by subsection C of this section, an amount
equal to fifteen percent (15%) of:
1. Qualified capital expenditures; or
2. Qualified wages; or
3. Qualified training expenses; or
4. The sum of any of the expenses identified in paragraphs 1
through 3 of this subsection, in any combination.
C. For purposes of computing the credit amount prescribed by
subsection B of this section, the expenses described by paragraphs 1,
2 and 3 of subsection B of this section may be added together or
considered independently, but the total credit amount shall not
exceed Three Hundred Fifty Thousand Dollars ($350,000.00) each year
for the fiscal year ending June 30, 2007, the fiscal year ending June
30, 2008, the fiscal year ending June 30, 2009, and for all
subsequent fiscal years.
D. For purposes of the expenditures described by subsection B of
this section a qualified business enterprise may incur expenditures
beginning January 1, 2005, through December 31, 2013, for purposes of
computing the credit amount. The claim for such credits earned for
the fiscal year ending June 30, 2007, shall not be filed earlier than
July 1, 2006, and the claims for each subsequent taxable year may be
filed no earlier than July 1 of each of the applicable succeeding
years.
E. For purposes of the limitation on the credit amount that may
be claimed by a qualified business enterprise, an extension of time
for filing of an income tax return shall not extend the time period
for purposes of claiming the credit authorized by this section.
F. If the amount of the credit allowable is in excess of the tax
liability, the amount of the credit not used shall be refunded to the
taxpayer subject to the total limit of Three Hundred Fifty Thousand
Dollars ($350,000.00) each year for the fiscal year ending June 30,
2007, the fiscal year ending June 30, 2008, the fiscal year ending
June 30, 2009, and each of the applicable subsequent fiscal years.
G. No credit for any fiscal year as otherwise authorized by this
section shall be based upon any qualified expenditure used to compute
a credit amount for any preceding taxable year.
H. The credit authorized by the provisions of this section shall
not be transferable.
I. The Tax Commission may prescribe forms for purposes of
claiming the credit authorized by this section and for verifying
eligibility for the credit.
Added by Laws 2005, c. 458, § 1, eff. July 1, 2005. Amended by Laws
2008, c. 440, § 11.
§68-2357.202. Definitions – Amount of credit.
A. As used in this act:
1. “Qualified business enterprise” means an entity:
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a. organized as a corporation, partnership, limited
partnership, limited liability company, business trust
or other entity, if such entity is registered to do
business within the state, or is otherwise lawfully
conducting business within the state,
b. whose principal business activity in the state is
described by the North American Industry Classification
System by Industry No. 336413, as reflected in the 1997
edition of such publication, and is engaged in the
manufacture of wing components for large commercial
aircraft and other aerospace structures and components
for commercial and government aerospace products, and
c. that makes at least seventy-five percent (75%) of its
sales to out-of-state customers or buyers which shall
be determined in the same manner as provided for
purposes of determining eligibility for the incentive
payment pursuant to the Oklahoma Quality Jobs Program
Act;
2. “Qualified expenditures” means:
a. costs incurred by the qualified business
enterprise during the taxable year for the
acquisition of personal property used, or to
be used, in business operations within the
state, to the extent a depreciation deduction
is allowed or allowable for federal income tax
purposes with respect to such property
pursuant to Section 167, Section 168 or
Section 179 of the Internal Revenue Code of
1986, as amended, in the taxable year for
which the credit authorized by this section is
claimed, and
b. costs incurred during the taxable year to
refurbish, repair or maintain any existing
personal property located within the state
whether or not such costs are capitalized by
the taxpayer;
3. “Qualified wages” means gross compensation and benefits paid
by the taxpayer during the taxable year, including any employer-paid
health care benefits, to full-time or part-time employees of the
qualified business enterprise, if such employees are full-time
residents of this state as of the time the services for which such
qualified wages are received are performed; and
4. “Qualified training expenses” means those costs, whether or
not deductible as a business expense pursuant to the Internal Revenue
Code of 1986, as amended, incurred during the taxable year to locate,
interview, hire and train employees and prospective employees of the
qualified business enterprise who:
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a. have not previously been employed as employees by the
qualified business enterprise, either full-time or
part-time, at any time within the five (5) prior
taxable years, and
b. are full-time residents of the state as of the
end of the taxable year for which the credit
authorized by this section is claimed.
B. For taxable years beginning after December 31, 2005, and
ending not later than December 31, 2008, there shall be allowed as a
credit against the tax imposed by Section 2355 of Title 68 of the
Oklahoma Statutes, subject to the limitations imposed by subsection C
of this section, an amount equal to fifteen percent (15%) of:
1. Qualified expenditures; or
2. Qualified wages; or
3. Qualified training expenses; or
4. The sum of any of the expenses identified in paragraphs 1
through 3 of this subsection, in any combination.
C. For purposes of computing the credit amount prescribed by
subsection B of this section, the expenses described by paragraphs 1,
2 and 3 of subsection B of this section may be added together or
combined in any order or considered independently, but the total
credit amount shall not exceed One Hundred Fifty Thousand Dollars
($150,000.00) each year for the fiscal year ending June 30, 2007, the
fiscal year ending June 30, 2008, and the fiscal year ending June 30,
2009.
D. For purposes of the expenditures described by subsection B of
this section a qualified business enterprise may incur expenditures
beginning January 1, 2005, through December 31, 2008, for purposes of
computing the credit amount. The claim for such credits earned for
the fiscal year ending June 30, 2007, shall not be filed earlier than
July 1, 2006, and the claims for each subsequent taxable year may be
filed no earlier than July 1 of each of the two (2) succeeding years.
E. For purposes of the limitation on the credit amount that may
be claimed by a qualified business enterprise, an extension of time
for filing of an income tax return shall not extend the time period
for purposes of claiming the credit authorized by this section.
F. If the amount of the credit allowable is in excess of the tax
liability, the amount of the credit not used shall be refunded to the
taxpayer subject to the total limit of One Hundred Fifty Thousand
Dollars ($150,000.00) each year for the fiscal year ending June 30,
2007, the fiscal year ending June 30, 2008, and the fiscal year
ending June 30, 2009.
G. No credit for any fiscal year as otherwise authorized by this
section shall be based upon any qualified expenditure used to compute
a credit amount for any preceding taxable year.
H. The credit authorized by the provisions of this section shall
not be transferable.
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I. The Tax Commission may prescribe forms for purposes of
claiming the credit authorized by this section and for verifying
eligibility for the credit.
Added by Laws 2005, c. 458, § 2, eff. July 1, 2005.
§68-2357.203. Repealed by Laws 2013, c. 79, § 1, eff. Nov. 1, 2013.
§68-2357.204. Costs associated with qualified refinery property –
Election and allocation against capital account – Definitions.
A. A taxpayer may elect to treat one hundred percent (100%) of
the cost of a qualified refinery property as an expense that is not
chargeable to a capital account. Any cost so treated shall be
allowed as a deduction for the year in which the qualified refinery
property expense is incurred.
B. 1. An election under this section for any taxable year shall
be made on the taxpayer's return of the tax imposed by this chapter
for the taxable year. The election shall be made in a manner as the
Oklahoma Tax Commission may by rule prescribe.
2. An election made pursuant to this section shall not be
revoked except with the consent of the Tax Commission.
C. 1. As used in this section, the term “qualified refinery
property” means any portion of a qualified refinery:
a. the original use of which commences with the taxpayer,
b. which is placed in service by the taxpayer after the
effective date of this act and before January 1, 2012,
c. which meets the requirements of subsection E of this
section, other than a qualified refinery which is
separate from any existing refinery,
d. which meets all applicable environmental laws in effect
on the date the portion was placed in service,
e. for which no written binding contract for the
construction of was in effect on or before June 14,
2005, and
f. (1) the construction of which is subject to a written
binding construction contract entered into before
January 1, 2008,
(2) which is placed in service before January 1, 2008,
or
(3) in the case of self-constructed property, the
construction of which began after June 14, 2005,
and before January 1, 2008.
2. For purposes of subparagraph a of paragraph 1 of this
subsection, if property is:
a. originally placed in service after the effective date
of this act by a person, and
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b. sold and leased back to the person within three (3)
months after the date the property was originally
placed in service,
the property shall be treated as originally placed in service not
earlier than the date on which the property is used under the
leaseback provision referred to in subparagraph b of paragraph 1 of
this subsection.
3. A waiver under the federal Clean Air Act shall not be taken
into account in determining whether the requirements of subparagraph
d of paragraph 1 of this subsection are met.
D. For purposes of this section, the term “qualified refinery”
means any refinery located in the State of Oklahoma that is designed
to serve the primary purpose of processing liquid fuel from crude oil
or qualified fuels.
E. The requirements of this section shall be met if the portion
of the qualified refinery:
1. Enables the existing qualified refinery to increase total
volume output, determined without regard to asphalt or lube oil, by
five percent (5%) or more on an average daily basis; or
2. Enables the existing qualified refinery to process qualified
fuels at a rate that is equal to or greater than twenty-five percent
(25%) of the total throughput of such qualified refinery on an
average daily basis.
F. No deduction shall be allowed under this section for any
qualified refinery property the primary purpose of which is for use
as a topping plant, asphalt plant, lube oil facility, or crude or
product terminal.
G. 1. The taxpayer may elect to allocate all or a portion of
the deduction allowable under subsection A of this section to
qualified persons. The allocation shall be equal to the ratable
share of the total amount allocated for each qualified person,
determined on the basis of the ownership interest the person has in
the taxpayer. The taxable income of the taxpayer shall not be
reduced under Section 10 of this act by reason of any amount to which
this subsection applies.
2. An election under paragraph 1 of this subsection for any
taxable year shall be made on a timely filed return for that year.
The election, once made, shall be irrevocable for the taxable year.
3. If any portion of the deduction available under subsection A
of this section is allocated to an owner under paragraph 1 of this
subsection, the cooperative shall provide the owner receiving the
allocation written notice of the amount of the allocation. Notice
shall be provided before the date on which the return described in
paragraph 2 of this subsection is due.
H. No deduction shall be allowed under subsection A of this
section to any taxpayer for any taxable year unless the taxpayer
files with the Tax Commission a report containing information with
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respect to the operation of the refineries as shall be required by
the Tax Commission.
I. The provisions of this section shall apply to qualified
refinery properties placed in service after the effective date of
this act.
Added by Laws 2006, c. 261, § 9, eff. July 1, 2006.
§68-2357.205. Cost of sulfur regulation compliance – Election and
allocation.
A. A refiner who is:
1. A small business refiner; or
2. One or more persons directly holding an ownership interest in
the refiner,
may elect to allocate all or a portion of the cost of complying with
sulfur regulations issued by the Environmental Protection Agency as a
deduction allowable to such persons. The allocation for each person
shall be equal to the ratable share of the total amount allocated,
determined on the basis of the ownership interest of the person. The
taxable income of the refiner shall not be reduced by reason of any
amount allowed pursuant to this section.
B. An election made pursuant to subsection A of this section for
any taxable year shall be made on a timely filed return for such
year. The election, once made, shall be irrevocable for the taxable
year.
C. If any portion of the deduction available under subsection A
of this section is allocated to an owner, the cooperative shall
provide the owner receiving the allocation written notice of the
amount of the allocation. Notice shall be provided before the date
on which the return described in subsection B of this section is due.
D. The provisions of this section shall apply to refinery
properties placed in service after the effective date of this act.
Added by Laws 2006, c. 261, § 10, eff. July 1, 2006.
§68-2357.206. Oklahoma Equal Opportunity Education Scholarship Act -
Tax credit - Definitions.
A. This act shall be known and may be cited as the "Oklahoma
Equal Opportunity Education Scholarship Act".
B. 1. Except as provided in subsection F of this section, after
August 26, 2011, there shall be allowed a credit for any taxpayer who
makes a contribution to an eligible scholarship-granting
organization. The credit shall be equal to fifty percent (50%) of
the total amount of contributions made during a taxable year, not to
exceed One Thousand Dollars ($1,000.00) for single individuals, Two
Thousand Dollars ($2,000.00) for married individuals filing jointly,
or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
is a legal business entity including limited and general
partnerships, corporations, subchapter S corporations and limited
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liability companies; provided, if total credits claimed pursuant to
this paragraph exceed the caps established pursuant to paragraph 1 of
subsection D of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection H of this section.
2. For any taxpayer who makes a contribution to an eligible
scholarship-granting organization and makes a written commitment to
contribute the same amount for an additional year, the credit for the
first year and the additional year shall be equal to seventy-five
percent (75%) of the total amount of the contribution made during a
taxable year, not to exceed the amounts established in paragraph 1 of
this subsection for the taxable year in which the credit provided in
this subsection is claimed. The taxpayer shall provide evidence of
the written commitment to the Oklahoma Tax Commission at the time of
filing the refund claim.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders, members
or other equity owners of a taxpayer that is authorized to be treated
as a partnership for purposes of federal income tax reporting for the
taxable year for which the tax credits authorized by this subsection
are claimed on the applicable return, together with required
schedules, forms or reports of the partners, shareholders, members or
other equity owners of the taxpayer. Tax credits which are allocated
to such equity owners shall only be limited in amount for the income
tax return of a natural person or persons based upon the limitation
of the total credit amount to the entity from which the tax credits
have been allocated and shall not be limited to One Thousand Dollars
($1,000.00) for single individuals or limited to Two Thousand Dollars
($2,000.00) for married persons filing a joint return.
4. On or before December 31, 2017, and once every four (4) years
thereafter, such scholarship-granting organization and educational
improvement granting organization shall submit to the Governor,
President Pro Tempore of the Senate and the Speaker of the House of
Representatives, an audited financial statement for the organization
along with information detailing the benefits, successes or failures
of the program.
C. 1. Except as provided in subsection F of this section, after
August 26, 2011, there shall be allowed a credit for any taxpayer who
makes a contribution to an eligible educational improvement grant
organization. The credit shall be equal to fifty percent (50%) of
the total amount of contributions made during a taxable year, not to
exceed One Thousand Dollars ($1,000.00) for single individuals, Two
Thousand Dollars ($2,000.00) for married individuals filing jointly,
or One Hundred Thousand Dollars ($100,000.00) for any taxpayer which
is a legal business entity including limited and general
partnerships, corporations, subchapter S corporations and limited
liability companies; provided, if total credits claimed pursuant to
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this paragraph exceed the cap established pursuant to paragraph 1 of
subsection D of this section, the credit shall be equal to the
taxpayer's proportionate share of the cap for the taxable year, as
determined pursuant to subsection H of this section.
2. For any taxpayer who makes a contribution to an eligible
educational improvement grant organization and makes a written
commitment to contribute the same amount for an additional year, the
credit for the first year and the additional year shall be equal to
seventy-five percent (75%) of the total amount of the contribution
made during a taxable year, not to exceed the amounts established in
paragraph 1 of this subsection for the taxable year in which the
credit provided in this subsection is claimed; provided, if total
credits claimed pursuant to this paragraph exceed the cap established
pursuant to paragraph 3 of this subsection, the credit shall be equal
to the taxpayer's proportionate share of the cap for the taxable
year, as determined pursuant to subsection H of this section. The
taxpayer shall provide evidence of the written commitment to the
Oklahoma Tax Commission at the time of filing the refund claim.
3. The credits authorized pursuant to the provisions of this
subsection shall be allocable to the partners, shareholders, members
or other equity owners of a taxpayer that is authorized to be treated
as a partnership for purposes of federal income tax reporting for the
taxable year for which the tax credits authorized by this subsection
are claimed on the applicable return, together with required
schedules, forms or reports of the partners, shareholders, members or
other equity owners of the taxpayer. Tax credits which are allocated
to such equity owners shall only be limited in amount for the income
tax return of a natural person or persons based upon the limitation
of the total credit amount to the entity from which the tax credits
have been allocated and shall not be limited to One Thousand Dollars
($1,000.00) for single individuals or limited to Two Thousand Dollars
($2,000.00) for married persons filing a joint return.
D. Except as otherwise provided pursuant to subsection H of this
section, for tax years 2017 and thereafter:
1. The total credits authorized pursuant to subsection B of this
section for all taxpayers shall not exceed Three Million Five Hundred
Thousand Dollars ($3,500,000.00) annually;
2. The total credits authorized pursuant to subsection C of this
section for all taxpayers shall not exceed One Million Five Hundred
Thousand Dollars ($1,500,000.00) annually; and
3. The cap on total credits provided for in this subsection
shall be allocated by the Tax Commission as provided in subsection H
of this section.
E. For credits claimed for eligible contributions made during
tax year 2014 and thereafter, a credit shall not be allowed by the
Oklahoma Tax Commission for contributions made to a scholarship-
granting organization or an educational improvement grant
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organization if that organization's percentage of funds actually
awarded is less than ninety percent (90%). For purposes of this
section, the "percentage of funds actually awarded" shall be
determined by dividing the total amount of funds actually awarded as
educational scholarships or educational improvement grants over the
most recent twenty-four (24) months by the total amount available to
award as educational scholarships or educational improvement grants
over the most recent twenty-four (24) months.
F. Any tax credits which are earned by a taxpayer pursuant to
this section during the time period beginning on the effective date
of this act through December 31, 2012, may not be claimed for any
period prior to the taxable year beginning January 1, 2013. No
credits which accrue during the time period beginning on the
effective date of this act through December 31, 2012, may be used to
file an amended tax return for any taxable year prior to the taxable
year beginning January 1, 2013.
G. As used in this section:
1. "Eligible student" means a child of school age who is
lawfully present in the United States and who is a member of a
household in which the total annual income during the preceding tax
year does not exceed an amount equal to three hundred percent (300%)
of the income standard used to qualify for a free or reduced school
lunch or who, during the immediately preceding school year, attended
or, by virtue of the location of such student's place of residence,
was eligible to attend a public school in this state which has been
identified for school improvement as determined by the State Board of
Education pursuant to the requirements of the No Child Left Behind
Act of 2001, P.L. No. 107-110. Once a student has received an
educational scholarship, as defined in paragraph 3 of this
subsection, the student and any siblings who are members of the same
household shall remain eligible until they graduate from high school
or reach twenty-one (21) years of age, whichever occurs first;
2. "Eligible special needs student" means a child who has been
provided services under an Individual Family Service Plan through the
SoonerStart program and during transition was evaluated and
determined to be eligible for school district services, a child of
school age who has attended public school in our state with an
individualized education program pursuant to the Individuals With
Disabilities Education Act, 20 U.S.C.A., Section 1400 et seq. or a
child who has been diagnosed by a clinical professional as having a
significant disability that will affect learning and who has been
approved by the board of a scholarship-granting organization;
3. "Educational scholarships" means:
a. scholarships to an eligible student of up to Five
Thousand Dollars ($5,000.00) or eighty percent (80%) of
the statewide annual average per-pupil expenditure as
determined by the National Center for Education
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Statistics, U.S. Department of Education, whichever is
greater, to cover all or part of the tuition, fees and
transportation costs of a qualified school which is
accredited by the State Board of Education or an
accrediting association approved by the Board pursuant
to Section 3-104 of Title 70 of the Oklahoma Statutes,
b. scholarships to an eligible student of up to Five
Thousand Dollars ($5,000.00) or eighty percent (80%) of
the statewide annual average per-pupil expenditure as
determined by the National Center for Education
Statistics, U.S. Department of Education, whichever is
greater, to cover the educational costs of a qualified
school which does not charge tuition, which enrolls
special populations of students and which is accredited
by the State Board of Education or an accrediting
association approved by the Board pursuant to Section
3-104 of Title 70 of the Oklahoma Statutes, or
c. scholarships to an eligible special needs student of up
to Twenty-five Thousand Dollars ($25,000.00) to cover
all or part of the tuition, fees and transportation
costs of a qualified school for eligible special needs
students which is accredited by the State Board of
Education or an accrediting association approved by the
Board pursuant to Section 3-104 of Title 70 of the
Oklahoma Statutes;
4. "Low-income eligible student" means an eligible student or
eligible special needs student who qualifies for a free or reduced-
price lunch;
5. "Qualified school" means an early childhood, elementary or
secondary private school in this state, including schools which
provide special educational programs for three-year-olds or
prekindergarten educational programs for four-year-olds, which:
a. is accredited by the State Board of Education or an
accrediting association approved by the Board pursuant
to Section 3-104 of Title 70 of the Oklahoma Statutes,
b. is in compliance with all applicable health and safety
laws and codes,
c. has a stated policy against discrimination in
admissions on the basis of race, color, national origin
or disability, and
d. ensures academic accountability to parents and
guardians of students through regular progress reports;
6. "Qualified school for eligible special needs students" means
an early childhood, elementary or secondary private school in a
county in this state, including schools which provide special
educational programs for three-year-olds or prekindergarten
educational programs for four-year-olds;
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7. "Scholarship-granting organization" means an organization
which:
a. is a nonprofit entity exempt from taxation pursuant to
the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3),
b. distributes periodic scholarship payments as checks
made out to an eligible student's or eligible special
needs student's parent or guardian and mailed to the
qualified school where the student is enrolled,
c. spends no more than ten percent (10%) of its annual
revenue on expenditures other than educational
scholarships as defined in paragraph 3 of this
subsection,
d. spends each year a portion of its expenditures on
educational scholarships for low-income eligible
students, as defined in paragraph 4 of this subsection,
in an amount equal to or greater than the percentage of
low-income eligible students in the state,
e. ensures that scholarships are portable during the
school year and can be used at any qualified school
that accepts the eligible student or at any qualified
school for special needs students that accepts the
eligible special needs student,
f. registers with the Oklahoma Tax Commission as a
scholarship-granting organization, and
g. has policies in place to:
(1) carry out criminal background checks on all
employees and board members to ensure that no
individual is involved with the organization who
might reasonably pose a risk to the appropriate
use of contributed funds, and
(2) maintain full and accurate records with respect to
the receipt of contributions and expenditures of
those contributions and supply such records and
any other documentation required by the Tax
Commission to demonstrate financial
accountability;
8. "Annual revenue" means the total amount or value of
contributions received by an organization from taxpayers awarded
credits during the organization's fiscal year and all amounts earned
from interest or investments;
9. "Public school" means public schools as defined in Section 1-
106 of Title 70 of the Oklahoma Statutes;
10. "Eligible school" means any public school that is not
located within a ten-mile radius of a qualified school in this state,
or any public school that is located within a ten-mile radius of a
qualified school in this state but offers grade-level instruction
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different from the qualified school or any public school located
within a public school district with fewer than four thousand five
hundred (4,500) students;
11. "Early childhood education program" means a special
educational program for eligible special needs students who are three
(3) years of age or a prekindergarten educational program provided to
children who are at least four (4) years of age but not more than
five (5) years of age on or before September 1;
12. "Innovative educational program" means an advanced academic
or academic improvement program that is not part of the regular
coursework of a public school but that enhances the curriculum or
academic program of the school or provides early childhood education
programs to students;
13. "Educational improvement grant" means a grant to an eligible
public school to implement an innovative educational program for
students, including the ability for multiple public schools to make
an application and be awarded a grant to jointly provide an
innovative educational program; and
14. "Educational improvement grant organization" means an
organization which:
a. is a nonprofit entity exempt from taxation pursuant to
the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3), and
b. contributes at least ninety percent (90%) of its annual
receipts as grants to eligible schools for innovative
educational programs. For purposes of this
subparagraph, an educational improvement grant
organization contributes its annual cash receipts when
it expends or otherwise irrevocably encumbers those
funds for expenditure during the then current fiscal
year of the organization or during the next succeeding
fiscal year of the organization.
H. Total credits authorized by this section shall be allocated
as follows:
1. By January 10 of the year immediately following each calendar
year, a scholarship-granting organization or an educational
improvement grant organization which accepts contributions pursuant
to this section shall provide electronically to the Tax Commission
information on each contribution accepted during such taxable year.
At least once each taxable year, the scholarship-granting
organization or the educational improvement grant organization shall
notify each contributor that Oklahoma law provides for a total,
statewide cap on the amount of income tax credits allowed annually;
2. a. If the Tax Commission determines the total combined
credits claimed for contributions made to scholarship-
granting organizations during the most recently
completed calendar year by all taxpayers are in excess
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of the statewide caps provided in paragraph 1 of
subsection D of this section, the Tax Commission shall
first allocate any amount of credits not claimed for
contributions made to educational improvement-granting
organizations, then shall determine the percentage of
the contribution which establishes the proportionate
share of the credit which may be claimed by any
taxpayer so that the total maximum credits authorized
by this section are not exceeded.
b. If the Tax Commission determines the total combined
credits claimed for contributions made to educational
improvement grant organizations during the most
recently completed calendar year by all taxpayers are
in excess of the statewide caps provided in paragraph 2
of subsection D of this section, the Tax Commission
shall first allocate any amount of credits not claimed
for contributions made to scholarship-granting
organizations, then shall determine the percentage of
the contribution which establishes the proportionate
share of the credit which may be claimed by any
taxpayer so that the maximum credits authorized by this
section are not exceeded.
c. Beginning for tax year 2016, credits earned, but not
allowed due to the application of statewide caps
provided in subsection D of this section will be
considered suspended and authorized to be used in the
next immediate tax year and applied to the next year's
statewide cap; and
3. The Tax Commission shall publish the percentage of the
contribution which may be claimed as a credit by contributors for the
most recently completed calendar year on the Tax Commission website
no later than February 15 of each calendar year for contributions
made the previous year. Each scholarship-granting organization or
educational improvement grant organization shall notify contributors
of that amount annually.
I. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
J. Any credits allowed but not used in any tax year may be
carried over, in order, to each of the three (3) years following the
year of qualification.
K. 1. In order to qualify under this section, an educational
improvement grant organization shall submit an application with
information to the Oklahoma Tax Commission on a form prescribed by
the Tax Commission that:
a. enables the Tax Commission to confirm that the
organization is a nonprofit entity exempt from taxation
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pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3), and
b. describes the proposed innovative educational program
or programs supported by the organization.
2. The Tax Commission shall review and approve or disapprove the
application, in consultation with the State Department of Education.
3. In order to maintain eligibility under this section, an
educational improvement grant organization shall annually report the
following information to the Tax Commission by September 1 of each
year:
a. the name of the innovative educational program or
programs and the total amount of the grant or grants
made to those programs during the immediately preceding
school year,
b. a description of how each grant was utilized during the
immediately preceding school year and a description of
any demonstrated or expected innovative educational
improvements,
c. the names of the public school and school districts
where innovative educational programs that received
grants during the immediately preceding school year
were implemented,
d. where the organization collects information on a
county-by-county basis, and
e. the total number and total amount of grants made during
the immediately preceding school year for innovative
educational programs at public school by each county in
which the organization made grants.
4. The information required under paragraph 3 of this subsection
shall be submitted on a form provided by the Tax Commission. No
later than May 1 of each year, the Tax Commission shall annually
distribute sample forms together with the forms on which the reports
are required to be made to each approved organization.
5. The Tax Commission shall not require any other information be
provided by an organization, except as expressly authorized in this
section.
L. In consultation with the State Department of Education, the
Tax Commission shall promulgate rules necessary to implement this
act. The rules shall include procedures for the registration of a
scholarship-granting organization or an educational improvement grant
organization for purposes of determining if the organization meets
the requirements of this act or for the revocation of the
registration of an organization, if applicable, and for notice as
required in subsection H of this section.
Added by Laws 2011, c. 243, § 1. Amended by Laws 2014, c. 349, § 1,
eff. Jan. 1, 2015; Laws 2015, c. 361, § 1, eff. Jan. 1, 2016; Laws
2017, c. 288, § 1, eff. Nov. 1, 2017.
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§68-2357.301. Definitions.
As used in Sections 2357.301 through 2357.304 of this title:
1. "Aerospace sector" means a private or public organization
engaged in the manufacture of aerospace or defense hardware or
software, aerospace maintenance, aerospace repair and overhaul,
supply of parts to the aerospace industry, provision of services and
support relating to the aerospace industry, research and development
of aerospace technology and systems, and the education and training
of aerospace personnel;
2. "Compensation" means payments in the form of contract labor
for which the payor is required to provide a Form 1099 to the person
paid, wages subject to withholding tax paid to a part-time employee
or full-time employee, or salary or other remuneration. Compensation
shall not include employer-provided retirement, medical or health-
care benefits, reimbursement for travel, meals, lodging or any other
expense;
3. "Institution" means an institution within The Oklahoma State
System of Higher Education or any other public or private college or
university that is accredited by a national accrediting body;
4. "Qualified employer" means a sole proprietor, general
partnership, limited partnership, limited liability company,
corporation, other legally recognized business entity, or public
entity whose principal business activity involves the aerospace
sector;
5. "Qualified employee" means any person, regardless of the date
of hire, employed in this state by or contracting in this state with
a qualified employer on or after January 1, 2009, who has been
awarded an undergraduate or graduate degree from a qualified program
by an institution, and who was not employed in the aerospace sector
in this state immediately preceding employment or contracting with a
qualified employer. Provided, the definition shall not be
interpreted to exclude any person who was employed in the aerospace
sector, but not as a full-time engineer, prior to being awarded an
undergraduate or graduate degree from a qualified program by an
institution or any person who has been awarded an undergraduate or
graduate degree from a qualified program by an institution and is
employed by a professional staffing company and assigned to work in
the aerospace sector in this state;
6. "Qualified program" means a program that has been accredited
by the Engineering Accreditation Commission of the Accreditation
Board for Engineering and Technology (ABET) and that awards an
undergraduate or graduate degree; and
7. "Tuition" means the average annual amount paid by a qualified
employee for enrollment and instruction in a qualified program.
Tuition shall not include the cost of books, fees or room and board.
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Added by Laws 2008, c. 417, § 1, eff. Jan. 1, 2009. Amended by Laws
2014, c. 30, § 1, eff. Nov. 1, 2014.
§68-2357.302. Credit for employee tuition reimbursement.
A. Except as provided in subsection F of this section, for
taxable years beginning after December 31, 2008, and ending before
January 1, 2026, a qualified employer shall be allowed a credit
against the tax imposed pursuant to Section 2355 of this title for
tuition reimbursed to a qualified employee.
B. The credit authorized by subsection A of this section may be
claimed only if the qualified employee has been awarded an
undergraduate or graduate degree within one (1) year of commencing
employment with the qualified employer.
C. The credit authorized by subsection A of this section shall
be in the amount of fifty percent (50%) of the tuition reimbursed to
a qualified employee for the first through fourth years of
employment. In no event shall this credit exceed fifty percent (50%)
of the average annual amount paid by a qualified employee for
enrollment and instruction in a qualified program at a public
institution in Oklahoma.
D. The credit authorized by subsection A of this section shall
not be used to reduce the tax liability of the qualified employer to
less than zero (0).
E. No credit authorized by this section shall be claimed after
the fourth year of employment.
F. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2011, according to the provisions
of this section.
Added by Laws 2008, c. 417, § 2, eff. Jan. 1, 2009. Amended by Laws
2010, c. 327, § 26, eff. July 1, 2010; Laws 2011, c. 5, § 1; Laws
2014, c. 30, § 2, eff. Nov. 1, 2014; Laws 2017, c. 153, § 1, eff.
Nov. 1, 2017.
§68-2357.303. Credit for compensation paid to employees.
A. Except as provided in subsection F of this section, for
taxable years beginning after December 31, 2008, and ending before
January 1, 2026, a qualified employer shall be allowed a credit
against the tax imposed pursuant to Section 2355 of this title for
compensation paid to a qualified employee.
B. The credit authorized by subsection A of this section shall
be in the amount of:
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1. Ten percent (10%) of the compensation paid for the first
through fifth years of employment in the aerospace sector if the
qualified employee graduated from an institution located in this
state; or
2. Five percent (5%) of the compensation paid for the first
through fifth years of employment in the aerospace sector if the
qualified employee graduated from an institution located outside this
state.
C. The credit authorized by this section shall not exceed Twelve
Thousand Five Hundred Dollars ($12,500.00) for each qualified
employee annually.
D. The credit authorized by this section shall not be used to
reduce the tax liability of the qualified employer to less than zero
(0).
E. No credit authorized pursuant to this section shall be
claimed after the fifth year of employment.
F. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2011, according to the provisions
of this section.
Added by Laws 2008, c. 417, § 3, eff. Jan. 1, 2009. Amended by Laws
2010, c. 327, § 27, eff. July 1, 2010; Laws 2011, c. 5, § 2; Laws
2014, c. 30, § 3, eff. Nov. 1, 2014; Laws 2017, c. 153, § 2, eff.
Nov. 1, 2017.
§68-2357.304. Credit for employees.
A. Except as provided in subsection D of this section, for
taxable years beginning after December 31, 2008, and ending before
January 1, 2026, a qualified employee shall be allowed a credit
against the tax imposed pursuant to Section 2355 of this title of up
to Five Thousand Dollars ($5,000.00) per year for a period of time
not to exceed five (5) years.
B. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
C. Any credit claimed, but not used, may be carried over, in
order, to each of the five (5) subsequent taxable years.
D. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable. The provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
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claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2011, according to the provisions
of this section.
Added by Laws 2008, c. 417, § 4, eff. Jan. 1, 2009. Amended by Laws
2010, c. 327, § 28, eff. July 1, 2010; Laws 2011, c. 5, § 3; Laws
2014, c. 30, § 4, eff. Nov. 1, 2014; Laws 2017, c. 153, § 3, eff.
Nov. 1, 2017.
§68-2357.32Av1. Electricity generated by zero-emission facilities -
Tax credit.
A. Except as otherwise provided in subsection H of this section,
for tax years beginning on or after January 1, 2003, but with respect
to tax credits for eligible renewable resources described by
subparagraphs b, c and d of paragraph 2 of this subsection, for tax
years ending not later than December 31, 2021, there shall be allowed
a credit against the tax imposed by Section 2355 of this title to a
taxpayer for the taxpayer's production and sale to an unrelated
person of electricity generated by zero-emission facilities located
in this state. As used in this section:
1. "Electricity generated by zero-emission facilities" means
electricity that is exclusively produced by any facility located in
this state with a rated production capacity of one megawatt (1 mw) or
greater, constructed for the generation of electricity and placed in
operation after June 4, 2001, and with respect to electricity
generated by wind for any facility placed in operation not later than
July 1, 2017, which utilizes eligible renewable resources as its fuel
source. The construction and operation of such facilities shall
result in no pollution or emissions that are or may be harmful to the
environment, pursuant to a determination by the Department of
Environmental Quality; and
2. "Eligible renewable resources" means resources derived from:
a. wind,
b. moving water,
c. sun, or
d. geothermal energy.
B. For facilities placed in operation on or after January 1,
2003, and before January 1, 2007, the amount of the credit for the
electricity generated on or after January 1, 2003, but prior to
January 1, 2004, shall be seventy-five one-hundredths of one cent
($0.0075) for each kilowatt-hour of electricity generated by zero-
emission facilities. For electricity generated on or after January
1, 2004, but prior to January 1, 2007, the amount of the credit shall
be fifty one-hundredths of one cent ($0.0050) per kilowatt-hour for
electricity generated by zero-emission facilities. For electricity
generated on or after January 1, 2007, but prior to January 1, 2012,
the amount of the credit shall be twenty-five one-hundredths of one
cent ($0.0025) per kilowatt-hour of electricity generated by zero-
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emission facilities. For facilities placed in operation on or after
January 1, 2007, and before January 1, 2021, or with respect to
electricity generated by wind for any facility placed in operation
not later than July 1, 2017, the amount of the credit for the
electricity generated on or after January 1, 2007, shall be fifty
one-hundredths of one cent ($0.0050) for each kilowatt-hour of
electricity generated by zero-emission facilities.
C. Credits may be claimed with respect to electricity generated
on or after January 1, 2003, during a ten-year period following the
date that the facility is placed in operation on or after June 4,
2001.
D. 1. For credits generated prior to January 1, 2014, if the
credit allowed pursuant to this section exceeds the amount of income
taxes due or if there are no state income taxes due on the income of
the taxpayer, the amount of the credit allowed but not used in any
tax year may be carried forward as a credit against subsequent income
tax liability for a period not exceeding ten (10) years.
2. Except as provided by paragraph 3 of this subsection, for
credits generated, but not used, on or after January 1, 2014, the
Oklahoma Tax Commission shall refund, at the taxpayer's election,
directly to the taxpayer eighty-five percent (85%) of the face amount
of such credits. The direct refund of the credits pursuant to this
paragraph shall be available to all taxpayers, including, without
limitation, pass-through entities and taxpayers subject to Section
2355 of this title, but shall not be available to any entities
falling within the provisions of subsection E of this section. The
amount of any direct refund of credits actually received at the
eighty-five percent (85%) level by the taxpayer pursuant to this
paragraph shall not be subject to the tax imposed by Section 2355 of
this title. If the pass-through entity does not file a claim for a
direct refund, the pass-through entity shall allocate the credit to
one or more of the shareholders, partners or members of the pass-
through entity; provided, the total of all credits refunded or
allocated shall not exceed the amount of the credit or refund to
which the pass-through entity is entitled. For the purposes of this
paragraph, "pass-through entity" means a corporation that for the
applicable tax year is treated as an S corporation under the Internal
Revenue Code of 1986, as amended, general partnership, limited
partnership, limited liability partnership, trust or limited
liability company that for the applicable tax year is not taxed as a
corporation for federal income tax purposes.
3. With respect to credits claimed for the first time on or
after July 1, 2019, or the effective date of this act, whichever date
last occurs, a taxpayer may irrevocably elect to not receive a direct
refund for a given tax year. Any credits not directly refunded may
be carried forward as a credit against subsequent income tax
liability for a period not exceeding ten (10) years. If a taxpayer
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makes the irrevocable election to carry over credits for a given tax
year pursuant to this paragraph, any credits remaining in the tenth
year of carry forward shall be refunded at eighty-five percent (85%).
E. Any nontaxable entities, including agencies of the State of
Oklahoma or political subdivisions thereof, shall be eligible to
establish a transferable tax credit in the amount provided in
subsection B of this section. Such tax credit shall be a property
right available to a state agency or political subdivision of this
state to transfer or sell to a taxable entity, whether individual or
corporate, who shall have an actual or anticipated income tax
liability under Section 2355 of this title. These tax credit
provisions are authorized as an incentive to the State of Oklahoma,
its agencies and political subdivisions to encourage the expenditure
of funds in the development, construction and utilization of
electricity from zero-emission facilities as defined in subsection A
of this section.
F. For credits generated prior to January 1, 2014, the amount of
the credit allowed, but not used, shall be freely transferable at any
time during the ten (10) years following the year of qualification.
Any person to whom or to which a tax credit is transferred shall have
only such rights to claim and use the credit under the terms that
would have applied to the entity by whom or by which the tax credit
was transferred. The provisions of this subsection shall not limit
the ability of a tax credit transferee to reduce the tax liability of
the transferee, regardless of the actual tax liability of the tax
credit transferor, for the relevant taxable period. The transferor
initially allowed the credit and any subsequent transferees shall
jointly file a copy of any written transfer agreement with the
Oklahoma Tax Commission within thirty (30) days of the transfer. The
written agreement shall contain the name, address and taxpayer
identification number or Social Security number of the parties to the
transfer, the amount of the credit being transferred, the year the
credit was originally allowed to the transferor, and the tax year or
years for which the credit may be claimed. The Tax Commission may
promulgate rules to permit verification of the validity and
timeliness of the tax credit claimed upon a tax return pursuant to
this subsection but shall not promulgate any rules that unduly
restrict or hinder the transfers of such tax credit. The tax credit
allowed by this section, upon the election of the taxpayer, may be
claimed as a payment of tax, a prepayment of tax or a payment of
estimated tax for purposes of Section 1803 or Section 2355 of this
title.
G. For electricity generation produced and sold in a calendar
year, the tax credit allowed by the provisions of this section, upon
election of the taxpayer, shall be treated and may be claimed as a
payment of tax, a prepayment of tax or a payment of estimated tax for
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purposes of Section 2355 of this title on or after July 1 of the
following calendar year.
H. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable until the provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2010, according to the provisions
of this section. Any tax credits which accrue during the period of
July 1, 2010, through June 30, 2011, may not be claimed for any
period prior to the taxable year beginning January 1, 2012. No
credits which accrue during the period of July 1, 2010, through June
30, 2011, may be used to file an amended tax return for any taxable
year prior to the taxable year beginning January 1, 2012.
I. For tax years beginning on or after January 1, 2019, the
total amount of credits authorized by this section with respect to
eligible renewable resources described by subparagraphs b, c and d of
paragraph 2 of subsection A of this section used to offset tax or
paid as a refund shall be adjusted annually to limit the annual
amount of credits to Five Hundred Thousand Dollars ($500,000.00).
The Tax Commission shall annually calculate and publish a percentage
by which the credits authorized by subparagraphs b, c and d of
paragraph 2 of subsection A of this section shall be reduced so the
total amount of credits used to offset tax or paid as a refund does
not exceed Five Hundred Thousand Dollars ($500,000.00) per year. The
formula to be used for the percentage adjustment shall be Five
Hundred Thousand Dollars ($500,000.00) divided by the credits claimed
in the second preceding year.
J. Pursuant to subsection I of this section, in the event the
total tax credits authorized by this section with respect to eligible
renewable resources described by subparagraphs b, c and d of
paragraph 2 of subsection A of this section exceed Five Hundred
Thousand Dollars ($500,000.00) in any calendar year, the Tax
Commission shall permit any excess over Five Hundred Thousand Dollars
($500,000.00) but shall factor such excess into the percentage
adjustment formula for subsequent years.
K. Any credits authorized by this section with respect to
eligible renewable resources described by subparagraphs b, c and d of
paragraph 2 of subsection A of this section not used or unable to be
used because of the provisions of subsection I or J of this section
may be carried over until such credits are fully used.
L. The Tax Commission shall prepare an annual report and submit
it to the Office of the State Secretary of Energy and Environment,
the Governor, the Speaker of the Oklahoma House of Representatives
and the President Pro Tempore of the Oklahoma State Senate
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summarizing the amount of credits allowed pursuant to subparagraphs
b, c and d of paragraph 2 of subsection A of this section. The
Secretary of Energy and Environment shall submit recommendations for
changes to the tax credit to the Governor, the Speaker of the
Oklahoma House of Representatives and the President Pro Tempore of
the Oklahoma State Senate within sixty (60) days after receipt of the
report from the Oklahoma Tax Commission.
Added by Laws 2001, c. 397, § 5, emerg. eff. June 4, 2001. Amended
by Laws 2002, c. 313, § 2, eff. Nov. 1, 2002; Laws 2006, 2nd Ex.
Sess., c. 44, § 10, eff. Jan. 1, 2007; Laws 2010, c. 327, § 11, eff.
July 1, 2010; Laws 2010, c. 418, § 4, emerg. eff. June 9, 2010; Laws
2013, c. 371, § 2, eff. Jan. 1, 2014; Laws 2017, c. 44, § 1, eff.
July 1, 2017; Laws 2018, c. 264, § 1, eff. Jan. 1, 2019; Laws 2019,
c. 231, § 1, eff. July 1, 2019.
§68-2357.32Av2. Electricity generated by zero-emission facilities -
Tax credit.
A. Except as otherwise provided in subsection H of this section,
for tax years beginning on or after January 1, 2003, but with respect
to tax credits for eligible renewable resources described by
subparagraphs b, c and d of paragraph 2 of this subsection, for tax
years ending not later than December 31, 2021, there shall be allowed
a credit against the tax imposed by Section 2355 of this title to a
taxpayer for the taxpayer's production and sale to an unrelated
person of electricity generated by zero-emission facilities located
in this state. As used in this section:
1. "Electricity generated by zero-emission facilities" means
electricity that is exclusively produced by any facility located in
this state with a rated production capacity of one megawatt (1 mw) or
greater, constructed for the generation of electricity and placed in
operation after June 4, 2001, and with respect to electricity
generated by wind for any facility placed in operation not later than
July 1, 2017, which utilizes eligible renewable resources as its fuel
source. The construction and operation of such facilities shall
result in no pollution or emissions that are or may be harmful to the
environment, pursuant to a determination by the Department of
Environmental Quality; and
2. "Eligible renewable resources" means resources derived from:
a. wind,
b. moving water,
c. sun, or
d. geothermal energy.
B. For facilities placed in operation on or after January 1,
2003, and before January 1, 2007, the amount of the credit for the
electricity generated on or after January 1, 2003, but prior to
January 1, 2004, shall be seventy-five one-hundredths of one cent
($0.0075) for each kilowatt-hour of electricity generated by zero-
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emission facilities. For electricity generated on or after January
1, 2004, but prior to January 1, 2007, the amount of the credit shall
be fifty one-hundredths of one cent ($0.0050) per kilowatt-hour for
electricity generated by zero-emission facilities. For electricity
generated on or after January 1, 2007, but prior to January 1, 2012,
the amount of the credit shall be twenty-five one-hundredths of one
cent ($0.0025) per kilowatt-hour of electricity generated by zero-
emission facilities. For facilities placed in operation on or after
January 1, 2007, and before January 1, 2021, or with respect to
electricity generated by wind for any facility placed in operation
not later than July 1, 2017, the amount of the credit for the
electricity generated on or after January 1, 2007, shall be fifty
one-hundredths of one cent ($0.0050) for each kilowatt-hour of
electricity generated by zero-emission facilities.
C. Credits may be claimed with respect to electricity generated
on or after January 1, 2003, during a ten-year period following the
date that the facility is placed in operation on or after June 4,
2001.
D. 1. For credits generated prior to January 1, 2014, if the
credit allowed pursuant to this section exceeds the amount of income
taxes due or if there are no state income taxes due on the income of
the taxpayer, the amount of the credit allowed but not used in any
tax year may be carried forward as a credit against subsequent income
tax liability for a period not exceeding ten (10) years.
2. For credits generated, but not used, on or after January 1,
2014, the Oklahoma Tax Commission shall refund, at the taxpayer's
election, directly to the taxpayer eighty-five percent (85%) of the
face amount of such credits. The direct refund of the credits
pursuant to this paragraph shall be available to all taxpayers,
including, without limitation, pass-through entities and taxpayers
subject to Section 2355 of this title, but shall not be available to
any entities falling within the provisions of subsection E of this
section. The amount of any direct refund of credits actually
received at the eighty-five percent (85%) level by the taxpayer
pursuant to this paragraph shall not be subject to the tax imposed by
Section 2355 of this title. If the pass-through entity does not file
a claim for a direct refund, the pass-through entity shall allocate
the credit to one or more of the shareholders, partners or members of
the pass-through entity; provided, the total of all credits refunded
or allocated shall not exceed the amount of the credit or refund to
which the pass-through entity is entitled. For the purposes of this
paragraph, "pass-through entity" means a corporation that for the
applicable tax year is treated as an S corporation under the Internal
Revenue Code of 1986, as amended, general partnership, limited
partnership, limited liability partnership, trust or limited
liability company that for the applicable tax year is not taxed as a
corporation for federal income tax purposes.
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E. Any nontaxable entities, including agencies of the State of
Oklahoma or political subdivisions thereof, shall be eligible to
establish a transferable tax credit in the amount provided in
subsection B of this section. Such tax credit shall be a property
right available to a state agency or political subdivision of this
state to transfer or sell to a taxable entity, whether individual or
corporate, who shall have an actual or anticipated income tax
liability under Section 2355 of this title. These tax credit
provisions are authorized as an incentive to the State of Oklahoma,
its agencies and political subdivisions to encourage the expenditure
of funds in the development, construction and utilization of
electricity from zero-emission facilities as defined in subsection A
of this section.
F. For credits generated prior to January 1, 2014, the amount of
the credit allowed, but not used, shall be freely transferable at any
time during the ten (10) years following the year of qualification.
Any person to whom or to which a tax credit is transferred shall have
only such rights to claim and use the credit under the terms that
would have applied to the entity by whom or by which the tax credit
was transferred. The provisions of this subsection shall not limit
the ability of a tax credit transferee to reduce the tax liability of
the transferee, regardless of the actual tax liability of the tax
credit transferor, for the relevant taxable period. The transferor
initially allowed the credit and any subsequent transferees shall
jointly file a copy of any written transfer agreement with the
Oklahoma Tax Commission within thirty (30) days of the transfer. The
written agreement shall contain the name, address and taxpayer
identification number or social security number of the parties to the
transfer, the amount of the credit being transferred, the year the
credit was originally allowed to the transferor, and the tax year or
years for which the credit may be claimed. The Tax Commission may
promulgate rules to permit verification of the validity and
timeliness of the tax credit claimed upon a tax return pursuant to
this subsection but shall not promulgate any rules that unduly
restrict or hinder the transfers of such tax credit. The tax credit
allowed by this section, upon the election of the taxpayer, may be
claimed as a payment of tax, a prepayment of tax or a payment of
estimated tax for purposes of Section 1803 or Section 2355 of this
title.
G. For electricity generation produced and sold in a calendar
year, the tax credit allowed by the provisions of this section, upon
election of the taxpayer, shall be treated and may be claimed as a
payment of tax, a prepayment of tax or a payment of estimated tax for
purposes of Section 2355 of this title on or after July 1 of the
following calendar year.
H. No credit otherwise authorized by the provisions of this
section may be claimed for any event, transaction, investment,
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expenditure or other act occurring on or after July 1, 2010, for
which the credit would otherwise be allowable until the provisions of
this subsection shall cease to be operative on July 1, 2011.
Beginning July 1, 2011, the credit authorized by this section may be
claimed for any event, transaction, investment, expenditure or other
act occurring on or after July 1, 2010, according to the provisions
of this section. Any tax credits which accrue during the period of
July 1, 2010, through June 30, 2011, may not be claimed for any
period prior to the taxable year beginning January 1, 2012. No
credits which accrue during the period of July 1, 2010, through June
30, 2011, may be used to file an amended tax return for any taxable
year prior to the taxable year beginning January 1, 2012.
I. For tax years beginning on or after January 1, 2019, the
total amount of credits authorized by this section with respect to
eligible renewable resources described by subparagraphs b, c and d of
paragraph 2 of subsection A of this section used to offset tax or
paid as a refund shall be adjusted annually to limit the annual
amount of credits to Five Hundred Thousand Dollars ($500,000.00).
The Tax Commission shall annually calculate and publish a percentage
by which the credits authorized by subparagraphs b, c and d of
paragraph 2 of subsection A of this section shall be reduced so the
total amount of credits used to offset tax or paid as a refund does
not exceed Five Hundred Thousand Dollars ($500,000.00) per year. The
formula to be used for the percentage adjustment shall be Five
Hundred Thousand Dollars ($500,000.00) divided by the credits claimed
in the second preceding year.
J. Pursuant to subsection I of this section, in the event the
total tax credits authorized by this section with respect to eligible
renewable resources described by subparagraphs b, c and d of
paragraph 2 of subsection A of this section exceed Five Hundred
Thousand Dollars ($500,000.00) in any calendar year, the Tax
Commission shall permit any excess over Five Hundred Thousand Dollars
($500,000.00) but shall factor such excess into the percentage
adjustment formula for subsequent years.
K. Any credits authorized by this section with respect to
eligible renewable resources described by subparagraphs b, c and d of
paragraph 2 of subsection A of this section not used or unable to be
used because of the provisions of subsection I or J of this section
may be carried over until such credits are fully used.
L. The Tax Commission shall prepare an annual report and submit
it to the Office of the State Secretary of Energy and Environment,
the Governor, the Speaker of the Oklahoma House of Representatives
and the President Pro Tempore of the Oklahoma State Senate
summarizing the amount of credits allowed pursuant to subparagraphs
b, c and d of paragraph 2 of subsection A of this section. The
Secretary of Energy and Environment shall submit recommendations for
changes to the tax credit to the Governor, the Speaker of the
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Oklahoma House of Representatives and the President Pro Tempore of
the Oklahoma State Senate within sixty (60) days after receipt of the
report from the Oklahoma Tax Commission.
Added by Laws 2001, c. 397, § 5, emerg. eff. June 4, 2001. Amended
by Laws 2002, c. 313, § 2, eff. Nov. 1, 2002; Laws 2006, 2nd Ex.
Sess., c. 44, § 10, eff. Jan. 1, 2007; Laws 2010, c. 327, § 11, eff.
July 1, 2010; Laws 2010, c. 418, § 4, emerg. eff. June 9, 2010; Laws
2013, c. 371, § 2, eff. Jan. 1, 2014; Laws 2017, c. 44, § 1, eff.
July 1, 2017; Laws 2018, c. 264, § 1, eff. Jan. 1, 2019; Laws 2019,
c. 287, § 1, eff. Nov. 1, 2019.
§68-2357.401. Electronic fund transfer tax credit.
A. Except as otherwise provided by subsections B and C of this
section, for taxable years beginning January 1, 2009, and ending
before January 1, 2017, there shall be allowed a credit against the
tax imposed pursuant to Section 2355 of this title in the amount of
all electronic funds transfers fees paid by an individual or entity
pursuant to Section 2-503.1j of Title 63 of the Oklahoma Statutes.
B. For any fees paid by a person or entity for the taxable year
beginning January 1, 2009, the credit otherwise authorized by this
section shall not be claimed for an individual prior to January 1,
2011. Subject to the requirements of this subsection, an individual
taxpayer shall be able to claim the credit authorized by this section
for all fees paid during the tax year ending December 31, 2009, and
the tax year ending December 31, 2010, on the income tax return filed
for the tax year ending December 31, 2010.
C. For any fees paid by an entity other than a natural person
for the taxable year beginning January 1, 2009, the credit otherwise
authorized by this section shall not be claimed on an income tax
return prior to January 1, 2011. Subject to the requirements of this
subsection, an entity other than a natural person shall be able to
claim the credit authorized by this section for all fees paid during
a tax year ending at any time during calendar year 2009 and for all
fees paid during calendar year 2010 on the income tax return filed
for the tax year ending not later than December 31, 2010.
D. The credit authorized by this section shall not be used to
reduce the income tax liability of the taxpayer to less than zero
(0).
E. To the extent not used in any taxable year, the credit
authorized by this section may be carried over, in order, to each of
the five (5) succeeding taxable years.
Added by Laws 2009, c. 442, § 16, eff. July 1, 2009. Amended by Laws
2014, c. 34, § 1, eff. Nov. 1, 2014.
§68-2357.402. Repealed by Laws 2013, c. 363, § 17, eff. Jan. 1,
2014.
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§68-2357.403. Oklahoma Affordable Housing Act.
A. This act shall be known and may be cited as the "Oklahoma
Affordable Housing Act".
B. As used in this section:
1. "Allocation year" means the year for which the Oklahoma
Housing Finance Agency allocates credits pursuant to this section;
2. "Eligibility statement" means a statement authorized and
issued by the Oklahoma Housing Finance Agency certifying that a given
project qualifies for the Oklahoma Affordable Housing Tax Credit
authorized by this section. The Oklahoma Housing Finance Agency,
under Title 330, Oklahoma Housing Finance Agency, Chapter 36,
Affordable Housing Tax Credit Program Rules, shall promulgate rules
establishing criteria upon which the eligibility statements will be
issued. The eligibility statement shall specify the amount of
Oklahoma Affordable Housing Tax Credits allocated to a qualified
project. The Oklahoma Housing Finance Agency shall only authorize
the tax credits created by this section to qualified projects which
are placed in service after July 1, 2015, but which shall not be used
to reduce tax liability accruing prior to January 1, 2016;
3. "Federal low-income housing tax credit" means the federal tax
credit as provided in Section 42 of the Internal Revenue Code of
1986, as amended;
4. "Oklahoma Affordable Housing Tax Credit" means the tax credit
created by this section;
5. "Qualified project" means a qualified low-income building as
that term is defined in Section 42 of the Internal Revenue Code of
1986, as amended; and
6. "Taxpayer" means a person, firm or corporation subject to the
tax imposed by Section 2355 of this title or an insurance company
subject to the tax imposed by Section 624 or 628 of Title 36 of the
Oklahoma Statutes or other financial institution subject to the tax
imposed by Section 2370 of this title.
C. For qualified projects placed in service after July 1, 2015,
the amount of state tax credits created by this section which are
allocated to a project shall be equal to that of the federal low-
income housing tax credits for a qualified project. The total
Oklahoma Affordable Housing Tax Credits allocated to all qualified
projects for an allocation year shall not exceed Four Million Dollars
($4,000,000.00). For purposes of this section, the "credit period"
shall mean the period of ten (10) taxable years and "placed in
service" shall have the same meaning as is applicable under the
federal credit program.
D. A taxpayer owning an interest in an investment in a qualified
project shall be allowed Oklahoma Affordable Housing Tax Credits
under this section for tax years beginning on or after January 1,
2016, if the Oklahoma Housing Finance Agency issues an eligibility
statement for such project, which tax credit shall be allocated among
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some or all of the partners, members or shareholders of the taxpayer
owning such interest in any manner agreed to by such partners,
members or shareholders. Such taxpayer may assign its interest in
the investment.
E. An insurance company claiming a credit against state premium
tax or retaliatory tax or any other tax imposed by Section 624 or 628
of Title 36 of the Oklahoma Statutes shall not be required to pay any
additional retaliatory tax under Section 628 of Title 36 of the
Oklahoma Statutes as a result of claiming the credit. The credit may
fully offset any retaliatory tax imposed by Section 628 of Title 36
of the Oklahoma Statutes.
F. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero ($0.00).
G. Any credit claimed but not used in a taxable year may be
carried forward two (2) subsequent taxable years.
H. The owner of a qualified project eligible for the credit
authorized by this section shall submit, at the time of filing the
tax return with the Oklahoma Tax Commission, an eligibility statement
from the Oklahoma Housing Finance Agency. In the case of failure to
attach the eligibility statement, no credit under this section shall
be allowed with respect to such project for that year until required
documents are provided to the Tax Commission.
I. If under Section 42 of the Internal Revenue Code of 1986, as
amended, a portion of any federal low-income housing credits taken on
a qualified project is required to be recaptured during the first ten
(10) years after a project is placed in service, the taxpayer
claiming Oklahoma Affordable Housing Tax Credits with respect to such
project shall also be required to recapture a portion of such
credits. The amount of Oklahoma Affordable Housing Tax Credits
subject to recapture shall be proportionally equal to the amount of
federal low-income housing credits subject to recapture.
J. The Oklahoma Housing Finance Agency or the Oklahoma Tax
Commission may require the filing of additional documentation
necessary to determine the accuracy of a tax credit claimed.
K. The Oklahoma Affordable Housing Act shall undergo a review
every five (5) years by a committee of nine (9) persons, to be
appointed three persons each by the Governor, President Pro Tempore
of the Oklahoma State Senate and the Speaker of the Oklahoma House of
Representatives.
Added by Laws 2014, c. 421, § 1, eff. Jan. 1, 2015. Amended by Laws
2019, c. 190, § 1, eff. Nov. 1, 2019.
§68-2357.404. Tax credit for tuition reimbursement for qualified
employees of vehicle and automotive parts manufacturing companies.
A. As used in this section:
1. "Vehicle manufacturing" and "automotive parts manufacturing"
mean a private or public company first placed in operation in this
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state after November 1, 2019, which is engaged in the research,
development, design and manufacture of motor vehicles or automotive
parts manufacturing which may be driven on the avenues of public
access. For purposes of this section, "motor vehicle" does not
include low-speed electric vehicles or motor vehicles manufactured
primarily for off-road use, such as primarily for use on a golf
course;
2. "Compensation" means payments in the form of contract labor
for which the payor is required to provide a Form 1099 to the person
paid, wages subject to withholding tax paid to a part-time employee
or full-time employee, or salary or other remuneration. Compensation
shall not include employer-provided retirement, medical or health-
care benefits, reimbursement for travel, meals, lodging or any other
expense;
3. "Institution" means an institution within The Oklahoma State
System of Higher Education or any other public or private college or
university that is accredited by a national accrediting body;
4. "Qualified employer" means a sole proprietor, general
partnership, limited partnership, limited liability company,
corporation, other legally recognized business entity, or public
entity whose principal business activity involves the vehicle
manufacturing as defined in this section;
5. "Qualified employee" means any person, regardless of the date
of hire, employed in this state by or contracting in this state with
a qualified employer on or after January 1, 2018, who has been
awarded an undergraduate or graduate degree from a qualified program
by an institution, and who was not employed in vehicle manufacturing
in this state immediately preceding employment or contracting with a
qualified employer. Provided, the definition shall not be
interpreted to exclude any person who was employed in vehicle
manufacturing, but not as a full-time engineer, prior to being
awarded an undergraduate or graduate degree from a qualified program
by an institution or any person who has been awarded an undergraduate
or graduate degree from a qualified program by an institution and is
employed by a professional staffing company and assigned to work in
vehicle manufacturing in this state;
6. "Qualified program" means a program that awards an
undergraduate or graduate degree and that has been accredited by the
Engineering Accreditation Commission of the Accreditation Board for
Engineering and Technology (ABET); and
7. "Tuition" means the average annual amount paid by a qualified
employee for enrollment and instruction in a qualified program.
Tuition shall not include the cost of books, fees or room and board.
B. 1. Except as otherwise provided in subsection E of this
section, for taxable years beginning after December 31, 2018, and
ending before January 1, 2026, a qualified employer shall be allowed
a credit against the tax imposed pursuant to Section 2355 of Title 68
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of the Oklahoma Statutes for tuition reimbursed to a qualified
employee.
2. The credit authorized by this subsection may be claimed only
if the qualified employee has been awarded an undergraduate or
graduate degree within one (1) year of commencing employment with the
qualified employer.
3. The credit authorized by this subsection shall be in the
amount of fifty percent (50%) of the tuition reimbursed to a
qualified employee for the first through fourth years of employment.
In no event shall this credit exceed fifty percent (50%) of the
average annual amount paid by a qualified employee for enrollment and
instruction in a qualified program at a public institution in
Oklahoma.
4. The credit authorized by this subsection shall not be used to
reduce the tax liability of the qualified employer to less than zero
(0).
5. No credit authorized by this subsection shall be claimed
after the fourth year of employment.
C. 1. Except as otherwise provided in subsection E of this
section, for taxable years beginning after December 31, 2018, and
ending before January 1, 2026, a qualified employer shall be allowed
a credit against the tax imposed pursuant to Section 2355 of Title 68
of the Oklahoma Statutes for compensation paid to a qualified
employee.
2. The credit authorized by this subsection shall be in the
amount of:
a. ten percent (10%) of the compensation paid for the
first through fifth years of employment in vehicle
manufacturing if the qualified employee graduated from
an institution located in this state, or
b. five percent (5%) of the compensation paid for the
first through fifth years of employment in vehicle
manufacturing if the qualified employee graduated from
an institution located outside this state.
3. The credit authorized by this subsection shall not exceed
Twelve Thousand Five Hundred Dollars ($12,500.00) for each qualified
employee annually.
4. The credit authorized by this subsection shall not be used to
reduce the tax liability of the qualified employer to less than zero
(0).
5. No credit authorized pursuant to this subsection shall be
claimed after the fifth year of employment.
D. 1. Except as otherwise provided in subsection F of this
section, for taxable years beginning after December 31, 2018, and
ending before January 1, 2026, a qualified employee shall be allowed
a credit against the tax imposed pursuant to Section 2355 of Title 68
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of the Oklahoma Statutes of up to Five Thousand Dollars ($5,000.00)
per year for a period of time not to exceed five (5) years.
2. The credit authorized by this subsection shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
3. Any credit claimed, but not used, may be carried over, in
order, to each of the five (5) subsequent taxable years.
E. 1. For any tax year during which the credit is allowed, the
total amount of credits authorized by subsections B and C of this
section used to offset tax shall be adjusted annually to limit the
annual amount of credits to Three Million Dollars ($3,000,000.00).
The Tax Commission shall annually calculate and publish a percentage
by which the credits authorized by subsections B and C of this
section shall be reduced so the total amount of credits used to
offset tax does not exceed Three Million Dollars ($3,000,000.00) per
year. The formula to be used for the percentage adjustment shall be
Three Million Dollars ($3,000,000.00) divided by the credits claimed
in the second preceding year.
2. Pursuant to paragraph 1 of this subsection, in the event the
total tax credits authorized by subsections B and C of this section
exceed Three Million Dollars ($3,000,000.00) in any tax year, the Tax
Commission shall permit any excess over Three Million Dollars
($3,000,000.00), but shall factor such excess into the percentage
adjustment formula for subsequent years.
F. 1. For any tax year during which the credit is allowed, the
total amount of credits authorized by subsection D of this section
used to offset tax shall be adjusted annually to limit the annual
amount of credits to Two Million Dollars ($2,000,000.00). The Tax
Commission shall annually calculate and publish a percentage by which
the credits authorized by subsection D of this section shall be
reduced so the total amount of credits used to offset tax does not
exceed Two Million Dollars ($2,000,000.00) per year. The formula to
be used for the percentage adjustment shall be Two Million Dollars
($2,000,000.00) divided by the credits claimed in the second
preceding year.
2. Pursuant to paragraph 1 of this subsection, in the event the
total tax credits authorized by subsection D of this section exceed
Two Million Dollars ($2,000,000.00) in any tax year, the Tax
Commission shall permit any excess over Two Million Dollars
($2,000,000.00), but shall factor such excess into the percentage
adjustment formula for subsequent years.
Added by Laws 2018, c. 317, § 1, eff. Nov. 1, 2018. Amended by Laws
2019, c. 388, § 1, eff. Nov. 1, 2019.
§68-2357.405. Tax credit for qualifying software or cybersecurity
employees.
A. As used in this section:
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1. "Degree-producing institution" means any public or private
college or university that has accredited programs, as defined in
this act, from the Accreditation Board for Engineering and Technology
(ABET);
2. "Technology center" means an institution in the Oklahoma
State Board of Career and Technology Education that offers accredited
programs as defined in this act;
3. "Accredited program" means:
a. an undergraduate or graduate cybersecurity, information
technology, computer science and engineering or
software engineering degree program accredited by the
Computing Accreditation Commission (CAC) or the
Engineering Accreditation Commission (EAC) of the
Accreditation Board for Engineering and Technology
(ABET) offered at a degree-producing institution, or
b. a software, cybersecurity, programming, software
programming, coding, application development, computer
science or information technology program requiring
more than eight hundred (800) hours of class time;
4. "Qualifying compensation" means average annualized wages paid
by a qualifying employer which meet or exceed one hundred ten percent
(110%) of the average county wage, as that percentage is determined
by the Oklahoma Department of Commerce based on the most recent U.S.
Department of Commerce data for the county in which the employer is
located; or, for federal employees, such employees shall meet a GS-5
or equivalent initial hiring threshold in lieu of the wage
requirement. For the purposes of this definition, annual wages shall
not include employer-provided health care or retirement benefits;
5. "Qualified employer" means a sole proprietor, general
partnership, limited partnership, limited liability company,
corporation or other legally recognized business entity, or
governmental entity that has at least fifteen full-time employees;
6. "Qualified industry" means a qualified employer whose
activities are defined or classified in the most recent North
American Industry Classification System (NAICS) manual under U.S.
Sector Nos. 21, 22, 31-33, 48, 51, 52, 54, 55, 62 and 92; and
7. "Qualified software or cybersecurity employee" means any
person employed in Oklahoma by a qualifying employer in a qualifying
industry on or after the effective date of this act who:
a. has been awarded a degree in an accredited program from
a degree-producing institution, or
b. has been awarded a certificate or credential in an
accredited program from a technology center.
B. An employer may apply to the Oklahoma Tax Commission for
qualification as a "qualified employer" in the manner prescribed by
the Tax Commission.
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C. In order for the qualified software or cybersecurity
employees to qualify to receive the tax credit, the qualified
employer shall be in a qualifying industry and pay employees a
qualifying compensation for the county in which the qualified
employer has its primary Oklahoma address.
D. 1. For taxable years beginning on or after January 1, 2020,
and ending before January 1, 2030, a qualified software or
cybersecurity employee shall be allowed a credit against the tax
imposed pursuant to Section 2355 of Title 68 of the Oklahoma
Statutes, subject to the amount prescribed in paragraph 2 of this
subsection; provided, the credit shall not be allowed for any
qualifying employee working in the state as of the effective date of
this act.
2. The credit may be claimed for a period of time not to exceed
seven (7) years and, except as provided in subsection I of this
section, shall be as follows:
a. Two Thousand Two Hundred Dollars ($2,200.00) for a
qualified software or cybersecurity employee who has
been awarded a bachelor's or higher degree from an
accredited program at a degree-producing institution,
and
b. One Thousand Eight Hundred Dollars ($1,800.00) for a
qualified software or cybersecurity employee who has
been awarded an associate's degree from an accredited
program at a degree-producing institution or a
credential or certificate from an accredited program at
a technology center.
E. The credit authorized by this section shall not be used to
reduce the tax liability of the taxpayer to less than zero (0).
F. Qualified employers may participate in the Oklahoma Quality
Jobs Program Act, the Small Employer Quality Jobs Incentive Act and
the 21st Century Quality Jobs Incentive Act. However, the qualified
employees as provided for in this section shall be included in
baseline employment for the purposes of the Oklahoma Quality Jobs
Program Act, the Small Employer Quality Jobs Incentive Act and the
21st Century Quality Jobs Incentive Act.
G. No taxpayer shall claim both the credit provided pursuant to
this section and the credit provided pursuant to Section 2357.304 of
Title 68 of the Oklahoma Statutes for the same tax year.
H. The maximum time period that the credit may be claimed by any
taxpayer is seven (7) years.
I. For the tax year beginning January 1, 2022, and each tax year
thereafter, the total amount of credits authorized by this section
used to offset tax shall be adjusted annually to limit the annual
amount of credits to Five Million Dollars ($5,000,000.00). The Tax
Commission shall annually calculate and publish by the first day of
the affected year a percentage by which the credits authorized by
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this section shall be reduced so the total amount of credits used to
offset tax does not exceed Five Million Dollars ($5,000,000.00) per
year. The formula to be used for the percentage adjustment shall be
Five Million Dollars ($5,000,000.00) divided by the credits claimed
in the second preceding year.
J. In the event the total tax credits authorized by this section
exceed Five Million Dollars ($5,000,000.00) in any calendar year, the
Tax Commission shall permit any excess over Five Million Dollars
($5,000,000.00) but shall factor such excess into the percentage
adjustment formula for subsequent years.
Added by Laws 2019, c. 483, § 1, eff. Nov. 1, 2019.
§68-2358. Adjustments to arrive at Oklahoma taxable income and
Oklahoma adjusted gross income.
For all tax years beginning after December 31, 1981, taxable
income and adjusted gross income shall be adjusted to arrive at
Oklahoma taxable income and Oklahoma adjusted gross income as
required by this section.
A. The taxable income of any taxpayer shall be adjusted to
arrive at Oklahoma taxable income for corporations and Oklahoma
adjusted gross income for individuals, as follows:
1. There shall be added interest income on obligations of any
state or political subdivision thereto which is not otherwise
exempted pursuant to other laws of this state, to the extent that
such interest is not included in taxable income and adjusted gross
income.
2. There shall be deducted amounts included in such income that
the state is prohibited from taxing because of the provisions of the
Federal Constitution, the State Constitution, federal laws or laws of
Oklahoma.
3. The amount of any federal net operating loss deduction shall
be adjusted as follows:
a. For carryovers and carrybacks to taxable years
beginning before January 1, 1981, the amount of any net
operating loss deduction allowed to a taxpayer for
federal income tax purposes shall be reduced to an
amount which is the same portion thereof as the loss
from sources within this state, as determined pursuant
to this section and Section 2362 of this title, for the
taxable year in which such loss is sustained is of the
total loss for such year;
b. For carryovers and carrybacks to taxable years
beginning after December 31, 1980, the amount of any
net operating loss deduction allowed for the taxable
year shall be an amount equal to the aggregate of the
Oklahoma net operating loss carryovers and carrybacks
to such year. Oklahoma net operating losses shall be
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separately determined by reference to Section 172 of
the Internal Revenue Code, 26 U.S.C., Section 172, as
modified by the Oklahoma Income Tax Act, Section 2351
et seq. of this title, and shall be allowed without
regard to the existence of a federal net operating
loss. For tax years beginning after December 31, 2000,
and ending before January 1, 2008, the years to which
such losses may be carried shall be determined solely
by reference to Section 172 of the Internal Revenue
Code, 26 U.S.C., Section 172, with the exception that
the terms "net operating loss" and "taxable income"
shall be replaced with "Oklahoma net operating loss"
and "Oklahoma taxable income". For tax years beginning
after December 31, 2007, and ending before January 1,
2009, years to which such losses may be carried back
shall be limited to two (2) years. For tax years
beginning after December 31, 2008, the years to which
such losses may be carried back shall be determined
solely by reference to Section 172 of the Internal
Revenue Code, 26 U.S.C., Section 172, with the
exception that the terms "net operating loss" and
"taxable income" shall be replaced with "Oklahoma net
operating loss" and "Oklahoma taxable income".
4. Items of the following nature shall be allocated as
indicated. Allowable deductions attributable to items separately
allocable in subparagraphs a, b and c of this paragraph, whether or
not such items of income were actually received, shall be allocated
on the same basis as those items:
a. Income from real and tangible personal property, such
as rents, oil and mining production or royalties, and
gains or losses from sales of such property, shall be
allocated in accordance with the situs of such
property;
b. Income from intangible personal property, such as
interest, dividends, patent or copyright royalties, and
gains or losses from sales of such property, shall be
allocated in accordance with the domiciliary situs of
the taxpayer, except that:
(1) where such property has acquired a nonunitary
business or commercial situs apart from the
domicile of the taxpayer such income shall be
allocated in accordance with such business or
commercial situs; interest income from investments
held to generate working capital for a unitary
business enterprise shall be included in
apportionable income; a resident trust or resident
estate shall be treated as having a separate
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commercial or business situs insofar as
undistributed income is concerned, but shall not
be treated as having a separate commercial or
business situs insofar as distributed income is
concerned,
(2) for taxable years beginning after December 31,
2003, capital or ordinary gains or losses from the
sale of an ownership interest in a publicly traded
partnership, as defined by Section 7704(b) of the
Internal Revenue Code, shall be allocated to this
state in the ratio of the original cost of such
partnership's tangible property in this state to
the original cost of such partnership's tangible
property everywhere, as determined at the time of
the sale; if more than fifty percent (50%) of the
value of the partnership's assets consists of
intangible assets, capital or ordinary gains or
losses from the sale of an ownership interest in
the partnership shall be allocated to this state
in accordance with the sales factor of the
partnership for its first full tax period
immediately preceding its tax period during which
the ownership interest in the partnership was
sold; the provisions of this division shall only
apply if the capital or ordinary gains or losses
from the sale of an ownership interest in a
partnership do not constitute qualifying gain
receiving capital treatment as defined in
subparagraph a of paragraph 2 of subsection F of
this section,
(3) income from such property which is required to be
allocated pursuant to the provisions of paragraph
5 of this subsection shall be allocated as herein
provided;
c. Net income or loss from a business activity which is
not a part of business carried on within or without the
state of a unitary character shall be separately
allocated to the state in which such activity is
conducted;
d. In the case of a manufacturing or processing enterprise
the business of which in Oklahoma consists solely of
marketing its products by:
(1) sales having a situs without this state, shipped
directly to a point from without the state to a
purchaser within the state, commonly known as
interstate sales,
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(2) sales of the product stored in public warehouses
within the state pursuant to "in transit" tariffs,
as prescribed and allowed by the Interstate
Commerce Commission, to a purchaser within the
state,
(3) sales of the product stored in public warehouses
within the state where the shipment to such
warehouses is not covered by "in transit" tariffs,
as prescribed and allowed by the Interstate
Commerce Commission, to a purchaser within or
without the state,
the Oklahoma net income shall, at the option of the
taxpayer, be that portion of the total net income of
the taxpayer for federal income tax purposes derived
from the manufacture and/or processing and sales
everywhere as determined by the ratio of the sales
defined in this section made to the purchaser within
the state to the total sales everywhere. The term
"public warehouse" as used in this subparagraph means a
licensed public warehouse, the principal business of
which is warehousing merchandise for the public;
e. In the case of insurance companies, Oklahoma taxable
income shall be taxable income of the taxpayer for
federal tax purposes, as adjusted for the adjustments
provided pursuant to the provisions of paragraphs 1 and
2 of this subsection, apportioned as follows:
(1) except as otherwise provided by division (2) of
this subparagraph, taxable income of an insurance
company for a taxable year shall be apportioned to
this state by multiplying such income by a
fraction, the numerator of which is the direct
premiums written for insurance on property or
risks in this state, and the denominator of which
is the direct premiums written for insurance on
property or risks everywhere. For purposes of
this subsection, the term "direct premiums
written" means the total amount of direct premiums
written, assessments and annuity considerations as
reported for the taxable year on the annual
statement filed by the company with the Insurance
Commissioner in the form approved by the National
Association of Insurance Commissioners, or such
other form as may be prescribed in lieu thereof,
(2) if the principal source of premiums written by an
insurance company consists of premiums for
reinsurance accepted by it, the taxable income of
such company shall be apportioned to this state by
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multiplying such income by a fraction, the
numerator of which is the sum of (a) direct
premiums written for insurance on property or
risks in this state, plus (b) premiums written for
reinsurance accepted in respect of property or
risks in this state, and the denominator of which
is the sum of (c) direct premiums written for
insurance on property or risks everywhere, plus
(d) premiums written for reinsurance accepted in
respect of property or risks everywhere. For
purposes of this paragraph, premiums written for
reinsurance accepted in respect of property or
risks in this state, whether or not otherwise
determinable, may at the election of the company
be determined on the basis of the proportion which
premiums written for insurance accepted from
companies commercially domiciled in Oklahoma bears
to premiums written for reinsurance accepted from
all sources, or alternatively in the proportion
which the sum of the direct premiums written for
insurance on property or risks in this state by
each ceding company from which reinsurance is
accepted bears to the sum of the total direct
premiums written by each such ceding company for
the taxable year.
5. The net income or loss remaining after the separate
allocation in paragraph 4 of this subsection, being that which is
derived from a unitary business enterprise, shall be apportioned to
this state on the basis of the arithmetical average of three factors
consisting of property, payroll and sales or gross revenue enumerated
as subparagraphs a, b and c of this paragraph. Net income or loss as
used in this paragraph includes that derived from patent or copyright
royalties, purchase discounts, and interest on accounts receivable
relating to or arising from a business activity, the income from
which is apportioned pursuant to this subsection, including the sale
or other disposition of such property and any other property used in
the unitary enterprise. Deductions used in computing such net income
or loss shall not include taxes based on or measured by income.
Provided, for corporations whose property for purposes of the tax
imposed by Section 2355 of this title has an initial investment cost
equaling or exceeding Two Hundred Million Dollars ($200,000,000.00)
and such investment is made on or after July 1, 1997, or for
corporations which expand their property or facilities in this state
and such expansion has an investment cost equaling or exceeding Two
Hundred Million Dollars ($200,000,000.00) over a period not to exceed
three (3) years, and such expansion is commenced on or after January
1, 2000, the three factors shall be apportioned with property and
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payroll, each comprising twenty-five percent (25%) of the
apportionment factor and sales comprising fifty percent (50%) of the
apportionment factor. The apportionment factors shall be computed as
follows:
a. The property factor is a fraction, the numerator of
which is the average value of the taxpayer's real and
tangible personal property owned or rented and used in
this state during the tax period and the denominator of
which is the average value of all the taxpayer's real
and tangible personal property everywhere owned or
rented and used during the tax period.
(1) Property, the income from which is separately
allocated in paragraph 4 of this subsection, shall
not be included in determining this fraction. The
numerator of the fraction shall include a portion
of the investment in transportation and other
equipment having no fixed situs, such as rolling
stock, buses, trucks and trailers, including
machinery and equipment carried thereon,
airplanes, salespersons' automobiles and other
similar equipment, in the proportion that miles
traveled in Oklahoma by such equipment bears to
total miles traveled,
(2) Property owned by the taxpayer is valued at its
original cost. Property rented by the taxpayer is
valued at eight times the net annual rental rate.
Net annual rental rate is the annual rental rate
paid by the taxpayer, less any annual rental rate
received by the taxpayer from subrentals,
(3) The average value of property shall be determined
by averaging the values at the beginning and
ending of the tax period but the Oklahoma Tax
Commission may require the averaging of monthly
values during the tax period if reasonably
required to reflect properly the average value of
the taxpayer's property;
b. The payroll factor is a fraction, the numerator of
which is the total compensation for services rendered
in the state during the tax period, and the denominator
of which is the total compensation for services
rendered everywhere during the tax period.
"Compensation", as used in this subsection means those
paid-for services to the extent related to the unitary
business but does not include officers' salaries, wages
and other compensation.
(1) In the case of a transportation enterprise, the
numerator of the fraction shall include a portion
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of such expenditure in connection with employees
operating equipment over a fixed route, such as
railroad employees, airline pilots, or bus
drivers, in this state only a part of the time, in
the proportion that mileage traveled in Oklahoma
bears to total mileage traveled by such employees,
(2) In any case the numerator of the fraction shall
include a portion of such expenditures in
connection with itinerant employees, such as
traveling salespersons, in this state only a part
of the time, in the proportion that time spent in
Oklahoma bears to total time spent in furtherance
of the enterprise by such employees;
c. The sales factor is a fraction, the numerator of which
is the total sales or gross revenue of the taxpayer in
this state during the tax period, and the denominator
of which is the total sales or gross revenue of the
taxpayer everywhere during the tax period. "Sales", as
used in this subsection does not include sales or gross
revenue which are separately allocated in paragraph 4
of this subsection.
(1) Sales of tangible personal property have a situs
in this state if the property is delivered or
shipped to a purchaser other than the United
States government, within this state regardless of
the FOB point or other conditions of the sale; or
the property is shipped from an office, store,
warehouse, factory or other place of storage in
this state and (a) the purchaser is the United
States government or (b) the taxpayer is not doing
business in the state of the destination of the
shipment.
(2) In the case of a railroad or interurban railway
enterprise, the numerator of the fraction shall
not be less than the allocation of revenues to
this state as shown in its annual report to the
Corporation Commission.
(3) In the case of an airline, truck or bus enterprise
or freight car, tank car, refrigerator car or
other railroad equipment enterprise, the numerator
of the fraction shall include a portion of revenue
from interstate transportation in the proportion
that interstate mileage traveled in Oklahoma bears
to total interstate mileage traveled.
(4) In the case of an oil, gasoline or gas pipeline
enterprise, the numerator of the fraction shall be
either the total of traffic units of the
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enterprise within Oklahoma or the revenue
allocated to Oklahoma based upon miles moved, at
the option of the taxpayer, and the denominator of
which shall be the total of traffic units of the
enterprise or the revenue of the enterprise
everywhere as appropriate to the numerator. A
"traffic unit" is hereby defined as the
transportation for a distance of one (1) mile of
one (1) barrel of oil, one (1) gallon of gasoline
or one thousand (1,000) cubic feet of natural or
casinghead gas, as the case may be.
(5) In the case of a telephone or telegraph or other
communication enterprise, the numerator of the
fraction shall include that portion of the
interstate revenue as is allocated pursuant to the
accounting procedures prescribed by the Federal
Communications Commission; provided that in
respect to each corporation or business entity
required by the Federal Communications Commission
to keep its books and records in accordance with a
uniform system of accounts prescribed by such
Commission, the intrastate net income shall be
determined separately in the manner provided by
such uniform system of accounts and only the
interstate income shall be subject to allocation
pursuant to the provisions of this subsection.
Provided further, that the gross revenue factors
shall be those as are determined pursuant to the
accounting procedures prescribed by the Federal
Communications Commission.
In any case where the apportionment of the three factors
prescribed in this paragraph attributes to Oklahoma a portion of net
income of the enterprise out of all appropriate proportion to the
property owned and/or business transacted within this state, because
of the fact that one or more of the factors so prescribed are not
employed to any appreciable extent in furtherance of the enterprise;
or because one or more factors not so prescribed are employed to a
considerable extent in furtherance of the enterprise; or because of
other reasons, the Tax Commission is empowered to permit, after a
showing by taxpayer that an excessive portion of net income has been
attributed to Oklahoma, or require, when in its judgment an
insufficient portion of net income has been attributed to Oklahoma,
the elimination, substitution, or use of additional factors, or
reduction or increase in the weight of such prescribed factors.
Provided, however, that any such variance from such prescribed
factors which has the effect of increasing the portion of net income
attributable to Oklahoma must not be inherently arbitrary, and
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application of the recomputed final apportionment to the net income
of the enterprise must attribute to Oklahoma only a reasonable
portion thereof.
6. For calendar years 1997 and 1998, the owner of a new or
expanded agricultural commodity processing facility in this state may
exclude from Oklahoma taxable income, or in the case of an
individual, the Oklahoma adjusted gross income, fifteen percent (15%)
of the investment by the owner in the new or expanded agricultural
commodity processing facility. For calendar year 1999, and all
subsequent years, the percentage, not to exceed fifteen percent
(15%), available to the owner of a new or expanded agricultural
commodity processing facility in this state claiming the exemption
shall be adjusted annually so that the total estimated reduction in
tax liability does not exceed One Million Dollars ($1,000,000.00)
annually. The Tax Commission shall promulgate rules for determining
the percentage of the investment which each eligible taxpayer may
exclude. The exclusion provided by this paragraph shall be taken in
the taxable year when the investment is made. In the event the total
reduction in tax liability authorized by this paragraph exceeds One
Million Dollars ($1,000,000.00) in any calendar year, the Tax
Commission shall permit any excess over One Million Dollars
($1,000,000.00) and shall factor such excess into the percentage for
subsequent years. Any amount of the exemption permitted to be
excluded pursuant to the provisions of this paragraph but not used in
any year may be carried forward as an exemption from income pursuant
to the provisions of this paragraph for a period not exceeding six
(6) years following the year in which the investment was originally
made.
For purposes of this paragraph:
a. "Agricultural commodity processing facility" means
building, structures, fixtures and improvements used or
operated primarily for the processing or production of
marketable products from agricultural commodities. The
term shall also mean a dairy operation that requires a
depreciable investment of at least Two Hundred Fifty
Thousand Dollars ($250,000.00) and which produces milk
from dairy cows. The term does not include a facility
that provides only, and nothing more than, storage,
cleaning, drying or transportation of agricultural
commodities, and
b. "Facility" means each part of the facility which is
used in a process primarily for:
(1) the processing of agricultural commodities,
including receiving or storing agricultural
commodities, or the production of milk at a dairy
operation,
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(2) transporting the agricultural commodities or
product before, during or after the processing, or
(3) packaging or otherwise preparing the product for
sale or shipment.
7. Despite any provision to the contrary in paragraph 3 of this
subsection, for taxable years beginning after December 31, 1999, in
the case of a taxpayer which has a farming loss, such farming loss
shall be considered a net operating loss carryback in accordance with
and to the extent of the Internal Revenue Code, 26 U.S.C., Section
172(b)(G). However, the amount of the net operating loss carryback
shall not exceed the lesser of:
a. Sixty Thousand Dollars ($60,000.00), or
b. the loss properly shown on Schedule F of the Internal
Revenue Service Form 1040 reduced by one-half (1/2) of
the income from all other sources other than reflected
on Schedule F.
8. In taxable years beginning after December 31, 1995, all
qualified wages equal to the federal income tax credit set forth in
26 U.S.C.A., Section 45A, shall be deducted from taxable income. The
deduction allowed pursuant to this paragraph shall only be permitted
for the tax years in which the federal tax credit pursuant to 26
U.S.C.A., Section 45A, is allowed. For purposes of this paragraph,
"qualified wages" means those wages used to calculate the federal
credit pursuant to 26 U.S.C.A., Section 45A.
9. In taxable years beginning after December 31, 2005, an
employer that is eligible for and utilizes the Safety Pays OSHA
Consultation Service provided by the Oklahoma Department of Labor
shall receive an exemption from taxable income in the amount of One
Thousand Dollars ($1,000.00) for the tax year that the service is
utilized.
10. For taxable years beginning on or after January 1, 2010,
there shall be added to Oklahoma taxable income an amount equal to
the amount of deferred income not included in such taxable income
pursuant to Section 108(i)(1) of the Internal Revenue Code of 1986 as
amended by Section 1231 of the American Recovery and Reinvestment Act
of 2009 (P.L. No. 111-5). There shall be subtracted from Oklahoma
taxable income an amount equal to the amount of deferred income
included in such taxable income pursuant to Section 108(i)(1) of the
Internal Revenue Code by Section 1231 of the American Recovery and
Reinvestment Act of 2009 (P.L. No. 111-5).
11. For taxable years beginning on or after January 1, 2019,
there shall be subtracted from Oklahoma taxable income or adjusted
gross income any item of income or gain, and there shall be added to
Oklahoma taxable income or adjusted gross income any item of loss or
deduction that in the absence of an election pursuant to the
provisions of the Pass-Through Entity Tax Equity Act of 2019 would be
allocated to a member or to an indirect member of an electing pass-
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through entity pursuant to Section 2351 et seq. of this title, if (i)
the electing pass-through entity has accounted for such item in
computing its Oklahoma net entity income or loss pursuant to the
provisions of the Pass-Through Entity Tax Equity Act of 2019, and
(ii) the total amount of tax attributable to any resulting Oklahoma
net entity income has been paid. The Oklahoma Tax Commission shall
promulgate rules for the reporting of such exclusion to direct and
indirect members of the electing pass-through entity. As used in
this paragraph, "electing pass-through entity", "indirect member",
and "member" shall be defined in the same manner as prescribed by
Section 2 of this act. Notwithstanding the application of this
paragraph, the adjusted tax basis of any ownership interest in a
pass-through entity for purposes of Section 2351 et seq. of this
title shall be equal to its adjusted tax basis for federal income tax
purposes.
B. 1. The taxable income of any corporation shall be further
adjusted to arrive at Oklahoma taxable income, except those
corporations electing treatment as provided in subchapter S of the
Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section
2365 of this title, deductions pursuant to the provisions of the
Accelerated Cost Recovery System as defined and allowed in the
Economic Recovery Tax Act of 1981, Public Law 97-34, 26 U.S.C.,
Section 168, for depreciation of assets placed into service after
December 31, 1981, shall not be allowed in calculating Oklahoma
taxable income. Such corporations shall be allowed a deduction for
depreciation of assets placed into service after December 31, 1981,
in accordance with provisions of the Internal Revenue Code, 26
U.S.C., Section 1 et seq., in effect immediately prior to the
enactment of the Accelerated Cost Recovery System. The Oklahoma tax
basis for all such assets placed into service after December 31,
1981, calculated in this section shall be retained and utilized for
all Oklahoma income tax purposes through the final disposition of
such assets.
Notwithstanding any other provisions of the Oklahoma Income Tax
Act, Section 2351 et seq. of this title, or of the Internal Revenue
Code to the contrary, this subsection shall control calculation of
depreciation of assets placed into service after December 31, 1981,
and before January 1, 1983.
For assets placed in service and held by a corporation in which
accelerated cost recovery system was previously disallowed, an
adjustment to taxable income is required in the first taxable year
beginning after December 31, 1982, to reconcile the basis of such
assets to the basis allowed in the Internal Revenue Code. The
purpose of this adjustment is to equalize the basis and allowance for
depreciation accounts between that reported to the Internal Revenue
Service and that reported to Oklahoma.
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2. For tax years beginning on or after January 1, 2009, and
ending on or before December 31, 2009, there shall be added to
Oklahoma taxable income any amount in excess of One Hundred Seventy-
five Thousand Dollars ($175,000.00) which has been deducted as a
small business expense under Internal Revenue Code, Section 179 as
provided in the American Recovery and Reinvestment Act of 2009.
C. 1. For taxable years beginning after December 31, 1987, the
taxable income of any corporation shall be further adjusted to arrive
at Oklahoma taxable income for transfers of technology to qualified
small businesses located in Oklahoma. Such transferor corporation
shall be allowed an exemption from taxable income of an amount equal
to the amount of royalty payment received as a result of such
transfer; provided, however, such amount shall not exceed ten percent
(10%) of the amount of gross proceeds received by such transferor
corporation as a result of the technology transfer. Such exemption
shall be allowed for a period not to exceed ten (10) years from the
date of receipt of the first royalty payment accruing from such
transfer. No exemption may be claimed for transfers of technology to
qualified small businesses made prior to January 1, 1988.
2. For purposes of this subsection:
a. "Qualified small business" means an entity, whether
organized as a corporation, partnership, or
proprietorship, organized for profit with its principal
place of business located within this state and which
meets the following criteria:
(1) Capitalization of not more than Two Hundred Fifty
Thousand Dollars ($250,000.00),
(2) Having at least fifty percent (50%) of its
employees and assets located in Oklahoma at the
time of the transfer, and
(3) Not a subsidiary or affiliate of the transferor
corporation;
b. "Technology" means a proprietary process, formula,
pattern, device or compilation of scientific or
technical information which is not in the public
domain;
c. "Transferor corporation" means a corporation which is
the exclusive and undisputed owner of the technology at
the time the transfer is made; and
d. "Gross proceeds" means the total amount of
consideration for the transfer of technology, whether
the consideration is in money or otherwise.
D. 1. For taxable years beginning after December 31, 2005, the
taxable income of any corporation, estate or trust, shall be further
adjusted for qualifying gains receiving capital treatment. Such
corporations, estates or trusts shall be allowed a deduction from
Oklahoma taxable income for the amount of qualifying gains receiving
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capital treatment earned by the corporation, estate or trust during
the taxable year and included in the federal taxable income of such
corporation, estate or trust.
2. As used in this subsection:
a. "qualifying gains receiving capital treatment" means
the amount of net capital gains, as defined in Section
1222(11) of the Internal Revenue Code, included in the
federal income tax return of the corporation, estate or
trust that result from:
(1) the sale of real property or tangible personal
property located within Oklahoma that has been
directly or indirectly owned by the corporation,
estate or trust for a holding period of at least
five (5) years prior to the date of the
transaction from which such net capital gains
arise,
(2) the sale of stock or on the sale of an ownership
interest in an Oklahoma company, limited liability
company, or partnership where such stock or
ownership interest has been directly or indirectly
owned by the corporation, estate or trust for a
holding period of at least three (3) years prior
to the date of the transaction from which the net
capital gains arise, or
(3) the sale of real property, tangible personal
property or intangible personal property located
within Oklahoma as part of the sale of all or
substantially all of the assets of an Oklahoma
company, limited liability company, or partnership
where such property has been directly or
indirectly owned by such entity owned by the
owners of such entity, and used in or derived from
such entity for a period of at least three (3)
years prior to the date of the transaction from
which the net capital gains arise,
b. "holding period" means an uninterrupted period of time.
The holding period shall include any additional period
when the property was held by another individual or
entity, if such additional period is included in the
taxpayer's holding period for the asset pursuant to the
Internal Revenue Code,
c. "Oklahoma company", "limited liability company", or
"partnership" means an entity whose primary
headquarters have been located in Oklahoma for at least
three (3) uninterrupted years prior to the date of the
transaction from which the net capital gains arise,
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d. "direct" means the taxpayer directly owns the asset,
and
e. "indirect" means the taxpayer owns an interest in a
pass-through entity (or chain of pass-through entities)
that sells the asset that gives rise to the qualifying
gains receiving capital treatment.
(1) With respect to sales of real property or tangible
personal property located within Oklahoma, the
deduction described in this subsection shall not
apply unless the pass-through entity that makes
the sale has held the property for not less than
five (5) uninterrupted years prior to the date of
the transaction that created the capital gain, and
each pass-through entity included in the chain of
ownership has been a member, partner, or
shareholder of the pass-through entity in the tier
immediately below it for an uninterrupted period
of not less than five (5) years.
(2) With respect to sales of stock or ownership
interest in or sales of all or substantially all
of the assets of an Oklahoma company, limited
liability company, or partnership, the deduction
described in this subsection shall not apply
unless the pass-through entity that makes the sale
has held the stock or ownership interest or the
assets for not less than three (3) uninterrupted
years prior to the date of the transaction that
created the capital gain, and each pass-through
entity included in the chain of ownership has been
a member, partner or shareholder of the pass-
through entity in the tier immediately below it
for an uninterrupted period of not less than three
(3) years.
E. The Oklahoma adjusted gross income of any individual taxpayer
shall be further adjusted as follows to arrive at Oklahoma taxable
income:
1. a. In the case of individuals, there shall be added or
deducted, as the case may be, the difference necessary
to allow personal exemptions of One Thousand Dollars
($1,000.00) in lieu of the personal exemptions allowed
by the Internal Revenue Code.
b. There shall be allowed an additional exemption of One
Thousand Dollars ($1,000.00) for each taxpayer or
spouse who is blind at the close of the tax year. For
purposes of this subparagraph, an individual is blind
only if the central visual acuity of the individual
does not exceed 20/200 in the better eye with
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correcting lenses, or if the visual acuity of the
individual is greater than 20/200, but is accompanied
by a limitation in the fields of vision such that the
widest diameter of the visual field subtends an angle
no greater than twenty (20) degrees.
c. There shall be allowed an additional exemption of One
Thousand Dollars ($1,000.00) for each taxpayer or
spouse who is sixty-five (65) years of age or older at
the close of the tax year based upon the filing status
and federal adjusted gross income of the taxpayer.
Taxpayers with the following filing status may claim
this exemption if the federal adjusted gross income
does not exceed:
(1) Twenty-five Thousand Dollars ($25,000.00) if
married and filing jointly;
(2) Twelve Thousand Five Hundred Dollars ($12,500.00)
if married and filing separately;
(3) Fifteen Thousand Dollars ($15,000.00) if single;
and
(4) Nineteen Thousand Dollars ($19,000.00) if a
qualifying head of household.
Provided, for taxable years beginning after December
31, 1999, amounts included in the calculation of
federal adjusted gross income pursuant to the
conversion of a traditional individual retirement
account to a Roth individual retirement account shall
be excluded from federal adjusted gross income for
purposes of the income thresholds provided in this
subparagraph.
2. a. For taxable years beginning on or before December 31,
2005, in the case of individuals who use the standard
deduction in determining taxable income, there shall be
added or deducted, as the case may be, the difference
necessary to allow a standard deduction in lieu of the
standard deduction allowed by the Internal Revenue
Code, in an amount equal to the larger of fifteen
percent (15%) of the Oklahoma adjusted gross income or
One Thousand Dollars ($1,000.00), but not to exceed Two
Thousand Dollars ($2,000.00), except that in the case
of a married individual filing a separate return such
deduction shall be the larger of fifteen percent (15%)
of such Oklahoma adjusted gross income or Five Hundred
Dollars ($500.00), but not to exceed the maximum amount
of One Thousand Dollars ($1,000.00).
b. For taxable years beginning on or after January 1,
2006, and before January 1, 2007, in the case of
individuals who use the standard deduction in
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determining taxable income, there shall be added or
deducted, as the case may be, the difference necessary
to allow a standard deduction in lieu of the standard
deduction allowed by the Internal Revenue Code, in an
amount equal to:
(1) Three Thousand Dollars ($3,000.00), if the filing
status is married filing joint, head of household
or qualifying widow; or
(2) Two Thousand Dollars ($2,000.00), if the filing
status is single or married filing separate.
c. For the taxable year beginning on January 1, 2007, and
ending December 31, 2007, in the case of individuals
who use the standard deduction in determining taxable
income, there shall be added or deducted, as the case
may be, the difference necessary to allow a standard
deduction in lieu of the standard deduction allowed by
the Internal Revenue Code, in an amount equal to:
(1) Five Thousand Five Hundred Dollars ($5,500.00), if
the filing status is married filing joint or
qualifying widow; or
(2) Four Thousand One Hundred Twenty-five Dollars
($4,125.00) for a head of household; or
(3) Two Thousand Seven Hundred Fifty Dollars
($2,750.00), if the filing status is single or
married filing separate.
d. For the taxable year beginning on January 1, 2008, and
ending December 31, 2008, in the case of individuals
who use the standard deduction in determining taxable
income, there shall be added or deducted, as the case
may be, the difference necessary to allow a standard
deduction in lieu of the standard deduction allowed by
the Internal Revenue Code, in an amount equal to:
(1) Six Thousand Five Hundred Dollars ($6,500.00), if
the filing status is married filing joint or
qualifying widow, or
(2) Four Thousand Eight Hundred Seventy-five Dollars
($4,875.00) for a head of household, or
(3) Three Thousand Two Hundred Fifty Dollars
($3,250.00), if the filing status is single or
married filing separate.
e. For the taxable year beginning on January 1, 2009, and
ending December 31, 2009, in the case of individuals
who use the standard deduction in determining taxable
income, there shall be added or deducted, as the case
may be, the difference necessary to allow a standard
deduction in lieu of the standard deduction allowed by
the Internal Revenue Code, in an amount equal to:
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(1) Eight Thousand Five Hundred Dollars ($8,500.00),
if the filing status is married filing joint or
qualifying widow, or
(2) Six Thousand Three Hundred Seventy-five Dollars
($6,375.00) for a head of household, or
(3) Four Thousand Two Hundred Fifty Dollars
($4,250.00), if the filing status is single or
married filing separate.
Oklahoma adjusted gross income shall be increased by
any amounts paid for motor vehicle excise taxes which
were deducted as allowed by the Internal Revenue Code.
f. For taxable years beginning on or after January 1,
2010, and ending on December 31, 2016, in the case of
individuals who use the standard deduction in
determining taxable income, there shall be added or
deducted, as the case may be, the difference necessary
to allow a standard deduction equal to the standard
deduction allowed by the Internal Revenue Code, based
upon the amount and filing status prescribed by such
Code for purposes of filing federal individual income
tax returns.
g. For taxable years beginning on or after January 1,
2017, in the case of individuals who use the standard
deduction in determining taxable income, there shall be
added or deducted, as the case may be, the difference
necessary to allow a standard deduction in lieu of the
standard deduction allowed by the Internal Revenue
Code, as follows:
(1) Six Thousand Three Hundred Fifty Dollars
($6,350.00) for single or married filing
separately,
(2) Twelve Thousand Seven Hundred Dollars ($12,700.00)
for married filing jointly or qualifying widower
with dependent child, and
(3) Nine Thousand Three Hundred Fifty Dollars
($9,350.00) for head of household.
3. a. In the case of resident and part-year resident
individuals having adjusted gross income from sources
both within and without the state, the itemized or
standard deductions and personal exemptions shall be
reduced to an amount which is the same portion of the
total thereof as Oklahoma adjusted gross income is of
adjusted gross income. To the extent itemized
deductions include allowable moving expense, proration
of moving expense shall not be required or permitted
but allowable moving expense shall be fully deductible
for those taxpayers moving within or into Oklahoma and
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no part of moving expense shall be deductible for those
taxpayers moving without or out of Oklahoma. All other
itemized or standard deductions and personal exemptions
shall be subject to proration as provided by law.
b. For taxable years beginning on or after January 1,
2018, the net amount of itemized deductions allowable
on an Oklahoma income tax return, subject to the
provisions of paragraph 24 of this subsection, shall
not exceed Seventeen Thousand Dollars ($17,000.00).
For purposes of this subparagraph, charitable
contributions and medical expenses deductible for
federal income tax purposes shall be excluded from the
amount of Seventeen Thousand Dollars ($17,000.00) as
specified by this subparagraph.
4. A resident individual with a physical disability constituting
a substantial handicap to employment may deduct from Oklahoma
adjusted gross income such expenditures to modify a motor vehicle,
home or workplace as are necessary to compensate for his or her
handicap. A veteran certified by the Department of Veterans Affairs
of the federal government as having a service-connected disability
shall be conclusively presumed to be an individual with a physical
disability constituting a substantial handicap to employment. The
Tax Commission shall promulgate rules containing a list of
combinations of common disabilities and modifications which may be
presumed to qualify for this deduction. The Tax Commission shall
prescribe necessary requirements for verification.
5. a. Before July 1, 2010, the first One Thousand Five
Hundred Dollars ($1,500.00) received by any person from
the United States as salary or compensation in any
form, other than retirement benefits, as a member of
any component of the Armed Forces of the United States
shall be deducted from taxable income.
b. On or after July 1, 2010, one hundred percent (100%) of
the income received by any person from the United
States as salary or compensation in any form, other
than retirement benefits, as a member of any component
of the Armed Forces of the United States shall be
deducted from taxable income.
c. Whenever the filing of a timely income tax return by a
member of the Armed Forces of the United States is made
impracticable or impossible of accomplishment by reason
of:
(1) absence from the United States, which term
includes only the states and the District of
Columbia;
(2) absence from the State of Oklahoma while on active
duty; or
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(3) confinement in a hospital within the United States
for treatment of wounds, injuries or disease,
the time for filing a return and paying an income tax
shall be and is hereby extended without incurring
liability for interest or penalties, to the fifteenth
day of the third month following the month in which:
(a) Such individual shall return to the United
States if the extension is granted pursuant
to subparagraph a of this paragraph, return
to the State of Oklahoma if the extension is
granted pursuant to subparagraph b of this
paragraph or be discharged from such hospital
if the extension is granted pursuant to
subparagraph c of this paragraph; or
(b) An executor, administrator, or conservator of
the estate of the taxpayer is appointed,
whichever event occurs the earliest.
Provided, that the Tax Commission may, in its discretion, grant
any member of the Armed Forces of the United States an extension of
time for filing of income tax returns and payment of income tax
without incurring liabilities for interest or penalties. Such
extension may be granted only when in the judgment of the Tax
Commission a good cause exists therefor and may be for a period in
excess of six (6) months. A record of every such extension granted,
and the reason therefor, shall be kept.
6. Before July 1, 2010, the salary or any other form of
compensation, received from the United States by a member of any
component of the Armed Forces of the United States, shall be deducted
from taxable income during the time in which the person is detained
by the enemy in a conflict, is a prisoner of war or is missing in
action and not deceased; provided, after July 1, 2010, all such
salary or compensation shall be subject to the deduction as provided
pursuant to paragraph 5 of this subsection.
7. a. An individual taxpayer, whether resident or
nonresident, may deduct an amount equal to the federal
income taxes paid by the taxpayer during the taxable
year.
b. Federal taxes as described in subparagraph a of this
paragraph shall be deductible by any individual
taxpayer, whether resident or nonresident, only to the
extent they relate to income subject to taxation
pursuant to the provisions of the Oklahoma Income Tax
Act. The maximum amount allowable in the preceding
paragraph shall be prorated on the ratio of the
Oklahoma adjusted gross income to federal adjusted
gross income.
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c. For the purpose of this paragraph, "federal income
taxes paid" shall mean federal income taxes, surtaxes
imposed on incomes or excess profits taxes, as though
the taxpayer was on the accrual basis. In determining
the amount of deduction for federal income taxes for
tax year 2001, the amount of the deduction shall not be
adjusted by the amount of any accelerated ten percent
(10%) tax rate bracket credit or advanced refund of the
credit received during the tax year provided pursuant
to the federal Economic Growth and Tax Relief
Reconciliation Act of 2001, P.L. No. 107-16, and the
advanced refund of such credit shall not be subject to
taxation.
d. The provisions of this paragraph shall apply to all
taxable years ending after December 31, 1978, and
beginning before January 1, 2006.
8. Retirement benefits not to exceed Five Thousand Five Hundred
Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five
Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand
Dollars ($10,000.00) for the 2006 tax year and all subsequent tax
years, which are received by an individual from the civil service of
the United States, the Oklahoma Public Employees Retirement System,
the Teachers' Retirement System of Oklahoma, the Oklahoma Law
Enforcement Retirement System, the Oklahoma Firefighters Pension and
Retirement System, the Oklahoma Police Pension and Retirement System,
the employee retirement systems created by counties pursuant to
Section 951 et seq. of Title 19 of the Oklahoma Statutes, the Uniform
Retirement System for Justices and Judges, the Oklahoma Wildlife
Conservation Department Retirement Fund, the Oklahoma Employment
Security Commission Retirement Plan, or the employee retirement
systems created by municipalities pursuant to Section 48-101 et seq.
of Title 11 of the Oklahoma Statutes shall be exempt from taxable
income.
9. In taxable years beginning after December 3l, 1984, Social
Security benefits received by an individual shall be exempt from
taxable income, to the extent such benefits are included in the
federal adjusted gross income pursuant to the provisions of Section
86 of the Internal Revenue Code, 26 U.S.C., Section 86.
10. For taxable years beginning after December 31, 1994, lump-
sum distributions from employer plans of deferred compensation, which
are not qualified plans within the meaning of Section 401(a) of the
Internal Revenue Code, 26 U.S.C., Section 401(a), and which are
deposited in and accounted for within a separate bank account or
brokerage account in a financial institution within this state, shall
be excluded from taxable income in the same manner as a qualifying
rollover contribution to an individual retirement account within the
meaning of Section 408 of the Internal Revenue Code, 26 U.S.C.,
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Section 408. Amounts withdrawn from such bank or brokerage account,
including any earnings thereon, shall be included in taxable income
when withdrawn in the same manner as withdrawals from individual
retirement accounts within the meaning of Section 408 of the Internal
Revenue Code.
11. In taxable years beginning after December 31, 1995,
contributions made to and interest received from a medical savings
account established pursuant to Sections 2621 through 2623 of Title
63 of the Oklahoma Statutes shall be exempt from taxable income.
12. For taxable years beginning after December 31, 1996, the
Oklahoma adjusted gross income of any individual taxpayer who is a
swine or poultry producer may be further adjusted for the deduction
for depreciation allowed for new construction or expansion costs
which may be computed using the same depreciation method elected for
federal income tax purposes except that the useful life shall be
seven (7) years for purposes of this paragraph. If depreciation is
allowed as a deduction in determining the adjusted gross income of an
individual, any depreciation calculated and claimed pursuant to this
section shall in no event be a duplication of any depreciation
allowed or permitted on the federal income tax return of the
individual.
13. a. In taxable years beginning after December 31, 2002,
nonrecurring adoption expenses paid by a resident
individual taxpayer in connection with:
(1) the adoption of a minor, or
(2) a proposed adoption of a minor which did not
result in a decreed adoption,
may be deducted from the Oklahoma adjusted gross
income.
b. The deductions for adoptions and proposed adoptions
authorized by this paragraph shall not exceed Twenty
Thousand Dollars ($20,000.00) per calendar year.
c. The Tax Commission shall promulgate rules to implement
the provisions of this paragraph which shall contain a
specific list of nonrecurring adoption expenses which
may be presumed to qualify for the deduction. The Tax
Commission shall prescribe necessary requirements for
verification.
d. "Nonrecurring adoption expenses" means adoption fees,
court costs, medical expenses, attorney fees and
expenses which are directly related to the legal
process of adoption of a child including, but not
limited to, costs relating to the adoption study,
health and psychological examinations, transportation
and reasonable costs of lodging and food for the child
or adoptive parents which are incurred to complete the
adoption process and are not reimbursed by other
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sources. The term "nonrecurring adoption expenses"
shall not include attorney fees incurred for the
purpose of litigating a contested adoption, from and
after the point of the initiation of the contest, costs
associated with physical remodeling, renovation and
alteration of the adoptive parents' home or property,
except for a special needs child as authorized by the
court.
14. a. In taxable years beginning before January 1, 2005,
retirement benefits not to exceed the amounts specified
in this paragraph, which are received by an individual
sixty-five (65) years of age or older and whose
Oklahoma adjusted gross income is Twenty-five Thousand
Dollars ($25,000.00) or less if the filing status is
single, head of household, or married filing separate,
or Fifty Thousand Dollars ($50,000.00) or less if the
filing status is married filing joint or qualifying
widow, shall be exempt from taxable income. In taxable
years beginning after December 31, 2004, retirement
benefits not to exceed the amounts specified in this
paragraph, which are received by an individual whose
Oklahoma adjusted gross income is less than the
qualifying amount specified in this paragraph, shall be
exempt from taxable income.
b. For purposes of this paragraph, the qualifying amount
shall be as follows:
(1) in taxable years beginning after December 31,
2004, and prior to January 1, 2007, the qualifying
amount shall be Thirty-seven Thousand Five Hundred
Dollars ($37,500.00) or less if the filing status
is single, head of household, or married filing
separate, or Seventy-five Thousand Dollars
($75,000.00) or less if the filing status is
married filing jointly or qualifying widow,
(2) in the taxable year beginning January 1, 2007, the
qualifying amount shall be Fifty Thousand Dollars
($50,000.00) or less if the filing status is
single, head of household, or married filing
separate, or One Hundred Thousand Dollars
($100,000.00) or less if the filing status is
married filing jointly or qualifying widow,
(3) in the taxable year beginning January 1, 2008, the
qualifying amount shall be Sixty-two Thousand Five
Hundred Dollars ($62,500.00) or less if the filing
status is single, head of household, or married
filing separate, or One Hundred Twenty-five
Thousand Dollars ($125,000.00) or less if the
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filing status is married filing jointly or
qualifying widow,
(4) in the taxable year beginning January 1, 2009, the
qualifying amount shall be One Hundred Thousand
Dollars ($100,000.00) or less if the filing status
is single, head of household, or married filing
separate, or Two Hundred Thousand Dollars
($200,000.00) or less if the filing status is
married filing jointly or qualifying widow, and
(5) in the taxable year beginning January 1, 2010, and
subsequent taxable years, there shall be no
limitation upon the qualifying amount.
c. For purposes of this paragraph, "retirement benefits"
means the total distributions or withdrawals from the
following:
(1) an employee pension benefit plan which satisfies
the requirements of Section 401 of the Internal
Revenue Code, 26 U.S.C., Section 401,
(2) an eligible deferred compensation plan that
satisfies the requirements of Section 457 of the
Internal Revenue Code, 26 U.S.C., Section 457,
(3) an individual retirement account, annuity or trust
or simplified employee pension that satisfies the
requirements of Section 408 of the Internal
Revenue Code, 26 U.S.C., Section 408,
(4) an employee annuity subject to the provisions of
Section 403(a) or (b) of the Internal Revenue
Code, 26 U.S.C., Section 403(a) or (b),
(5) United States Retirement Bonds which satisfy the
requirements of Section 86 of the Internal Revenue
Code, 26 U.S.C., Section 86, or
(6) lump-sum distributions from a retirement plan
which satisfies the requirements of Section 402(e)
of the Internal Revenue Code, 26 U.S.C., Section
402(e).
d. The amount of the exemption provided by this paragraph
shall be limited to Five Thousand Five Hundred Dollars
($5,500.00) for the 2004 tax year, Seven Thousand Five
Hundred Dollars ($7,500.00) for the 2005 tax year and
Ten Thousand Dollars ($10,000.00) for the tax year 2006
and for all subsequent tax years. Any individual who
claims the exemption provided for in paragraph 8 of
this subsection shall not be permitted to claim a
combined total exemption pursuant to this paragraph and
paragraph 8 of this subsection in an amount exceeding
Five Thousand Five Hundred Dollars ($5,500.00) for the
2004 tax year, Seven Thousand Five Hundred Dollars
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($7,500.00) for the 2005 tax year and Ten Thousand
Dollars ($10,000.00) for the 2006 tax year and all
subsequent tax years.
15. In taxable years beginning after December 31, 1999, for an
individual engaged in production agriculture who has filed a Schedule
F form with the taxpayer's federal income tax return for such taxable
year, there shall be excluded from taxable income any amount which
was included as federal taxable income or federal adjusted gross
income and which consists of the discharge of an obligation by a
creditor of the taxpayer incurred to finance the production of
agricultural products.
16. In taxable years beginning December 31, 2000, an amount
equal to one hundred percent (100%) of the amount of any scholarship
or stipend received from participation in the Oklahoma Police Corps
Program, as established in Section 2-140.3 of Title 47 of the
Oklahoma Statutes shall be exempt from taxable income.
17. a. In taxable years beginning after December 31, 2001, and
before January 1, 2005, there shall be allowed a
deduction in the amount of contributions to accounts
established pursuant to the Oklahoma College Savings
Plan Act. The deduction shall equal the amount of
contributions to accounts, but in no event shall the
deduction for each contributor exceed Two Thousand Five
Hundred Dollars ($2,500.00) each taxable year for each
account.
b. In taxable years beginning after December 31, 2004,
each taxpayer shall be allowed a deduction for
contributions to accounts established pursuant to the
Oklahoma College Savings Plan Act. The maximum annual
deduction shall equal the amount of contributions to
all such accounts plus any contributions to such
accounts by the taxpayer for prior taxable years after
December 31, 2004, which were not deducted, but in no
event shall the deduction for each tax year exceed Ten
Thousand Dollars ($10,000.00) for each individual
taxpayer or Twenty Thousand Dollars ($20,000.00) for
taxpayers filing a joint return. Any amount of a
contribution that is not deducted by the taxpayer in
the year for which the contribution is made may be
carried forward as a deduction from income for the
succeeding five (5) years. For taxable years beginning
after December 31, 2005, deductions may be taken for
contributions and rollovers made during a taxable year
and up to April 15 of the succeeding year, or the due
date of a taxpayer's state income tax return, excluding
extensions, whichever is later. Provided, a deduction
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for the same contribution may not be taken for two (2)
different taxable years.
c. In taxable years beginning after December 31, 2006,
deductions for contributions made pursuant to
subparagraph b of this paragraph shall be limited as
follows:
(1) for a taxpayer who qualified for the five-year
carryforward election and who takes a rollover or
nonqualified withdrawal during that period, the
tax deduction otherwise available pursuant to
subparagraph b of this paragraph shall be reduced
by the amount which is equal to the rollover or
nonqualified withdrawal, and
(2) for a taxpayer who elects to take a rollover or
nonqualified withdrawal within the same tax year
in which a contribution was made to the taxpayer's
account, the tax deduction otherwise available
pursuant to subparagraph b of this paragraph shall
be reduced by the amount of the contribution which
is equal to the rollover or nonqualified
withdrawal.
d. If a taxpayer elects to take a rollover on a
contribution for which a deduction has been taken
pursuant to subparagraph b of this paragraph within one
(1) year of the date of contribution, the amount of
such rollover shall be included in the adjusted gross
income of the taxpayer in the taxable year of the
rollover.
e. If a taxpayer makes a nonqualified withdrawal of
contributions for which a deduction was taken pursuant
to subparagraph b of this paragraph, such nonqualified
withdrawal and any earnings thereon shall be included
in the adjusted gross income of the taxpayer in the
taxable year of the nonqualified withdrawal.
f. As used in this paragraph:
(1) "non-qualified withdrawal" means a withdrawal from
an Oklahoma College Savings Plan account other
than one of the following:
(a) a qualified withdrawal,
(b) a withdrawal made as a result of the death or
disability of the designated beneficiary of
an account,
(c) a withdrawal that is made on the account of a
scholarship or the allowance or payment
described in Section 135(d)(1)(B) or (C) or
by the Internal Revenue Code, received by the
designated beneficiary to the extent the
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amount of the refund does not exceed the
amount of the scholarship, allowance, or
payment, or
(d) a rollover or change of designated
beneficiary as permitted by subsection F of
Section 3970.7 of Title 70 of Oklahoma
Statutes, and
(2) "rollover" means the transfer of funds from the
Oklahoma College Savings Plan to any other plan
under Section 529 of the Internal Revenue Code.
18. For taxable years beginning after December 31, 2005,
retirement benefits received by an individual from any component of
the Armed Forces of the United States in an amount not to exceed the
greater of seventy-five percent (75%) of such benefits or Ten
Thousand Dollars ($10,000.00) shall be exempt from taxable income but
in no case less than the amount of the exemption provided by
paragraph 14 of this subsection.
19. For taxable years beginning after December 31, 2006,
retirement benefits received by federal civil service retirees,
including survivor annuities, paid in lieu of Social Security
benefits shall be exempt from taxable income to the extent such
benefits are included in the federal adjusted gross income pursuant
to the provisions of Section 86 of the Internal Revenue Code, 26
U.S.C., Section 86, according to the following schedule:
a. in the taxable year beginning January 1, 2007, twenty
percent (20%) of such benefits shall be exempt,
b. in the taxable year beginning January 1, 2008, forty
percent (40%) of such benefits shall be exempt,
c. in the taxable year beginning January 1, 2009, sixty
percent (60%) of such benefits shall be exempt,
d. in the taxable year beginning January 1, 2010, eighty
percent (80%) of such benefits shall be exempt, and
e. in the taxable year beginning January 1, 2011, and
subsequent taxable years, one hundred percent (100%) of
such benefits shall be exempt.
20. a. For taxable years beginning after December 31, 2007, a
resident individual may deduct up to Ten Thousand
Dollars ($10,000.00) from Oklahoma adjusted gross
income if the individual, or the dependent of the
individual, while living, donates one or more human
organs of the individual to another human being for
human organ transplantation. As used in this
paragraph, "human organ" means all or part of a liver,
pancreas, kidney, intestine, lung, or bone marrow. A
deduction that is claimed under this paragraph may be
claimed in the taxable year in which the human organ
transplantation occurs.
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b. An individual may claim this deduction only once, and
the deduction may be claimed only for unreimbursed
expenses that are incurred by the individual and
related to the organ donation of the individual.
c. The Oklahoma Tax Commission shall promulgate rules to
implement the provisions of this paragraph which shall
contain a specific list of expenses which may be
presumed to qualify for the deduction. The Tax
Commission shall prescribe necessary requirements for
verification.
21. For taxable years beginning after December 31, 2009, there
shall be exempt from taxable income any amount received by the
beneficiary of the death benefit for an emergency medical technician
or a registered emergency medical responder provided by Section 1-
2505.1 of Title 63 of the Oklahoma Statutes.
22. For taxable years beginning after December 31, 2008, taxable
income shall be increased by any unemployment compensation exempted
under Section 85(c) of the Internal Revenue Code, 26 U.S.C., Section
85(c)(2009).
23. For taxable years beginning after December 31, 2008, there
shall be exempt from taxable income any payment in an amount less
than Six Hundred Dollars ($600.00) received by a person as an award
for participation in a competitive livestock show event. For
purposes of this paragraph, the payment shall be treated as a
scholarship amount paid by the entity sponsoring the event and the
sponsoring entity shall cause the payment to be categorized as a
scholarship in its books and records.
24. For taxable years beginning on or after January 1, 2016,
taxable income shall be increased by any amount of state and local
sales or income taxes deducted under 26 U.S.C., Section 164 of the
Internal Revenue Code. If the amount of state and local taxes
deducted on the federal return is limited, taxable income on the
state return shall be increased only by the amount actually deducted
after any such limitations are applied.
F. 1. For taxable years beginning after December 31, 2004, a
deduction from the Oklahoma adjusted gross income of any individual
taxpayer shall be allowed for qualifying gains receiving capital
treatment that are included in the federal adjusted gross income of
such individual taxpayer during the taxable year.
2. As used in this subsection:
a. "qualifying gains receiving capital treatment" means
the amount of net capital gains, as defined in Section
1222(11) of the Internal Revenue Code, included in an
individual taxpayer's federal income tax return that
result from:
(1) the sale of real property or tangible personal
property located within Oklahoma that has been
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directly or indirectly owned by the individual
taxpayer for a holding period of at least five (5)
years prior to the date of the transaction from
which such net capital gains arise,
(2) the sale of stock or the sale of a direct or
indirect ownership interest in an Oklahoma
company, limited liability company, or partnership
where such stock or ownership interest has been
directly or indirectly owned by the individual
taxpayer for a holding period of at least two (2)
years prior to the date of the transaction from
which the net capital gains arise, or
(3) the sale of real property, tangible personal
property or intangible personal property located
within Oklahoma as part of the sale of all or
substantially all of the assets of an Oklahoma
company, limited liability company, or partnership
or an Oklahoma proprietorship business enterprise
where such property has been directly or
indirectly owned by such entity or business
enterprise or owned by the owners of such entity
or business enterprise for a period of at least
two (2) years prior to the date of the transaction
from which the net capital gains arise,
b. "holding period" means an uninterrupted period of time.
The holding period shall include any additional period
when the property was held by another individual or
entity, if such additional period is included in the
taxpayer's holding period for the asset pursuant to the
Internal Revenue Code,
c. "Oklahoma company," "limited liability company," or
"partnership" means an entity whose primary
headquarters have been located in Oklahoma for at least
three (3) uninterrupted years prior to the date of the
transaction from which the net capital gains arise,
d. "direct" means the individual taxpayer directly owns
the asset,
e. "indirect" means the individual taxpayer owns an
interest in a pass-through entity (or chain of pass-
through entities) that sells the asset that gives rise
to the qualifying gains receiving capital treatment.
(1) With respect to sales of real property or tangible
personal property located within Oklahoma, the
deduction described in this subsection shall not
apply unless the pass-through entity that makes
the sale has held the property for not less than
five (5) uninterrupted years prior to the date of
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the transaction that created the capital gain, and
each pass-through entity included in the chain of
ownership has been a member, partner, or
shareholder of the pass-through entity in the tier
immediately below it for an uninterrupted period
of not less than five (5) years.
(2) With respect to sales of stock or ownership
interest in or sales of all or substantially all
of the assets of an Oklahoma company, limited
liability company, partnership or Oklahoma
proprietorship business enterprise, the deduction
described in this subsection shall not apply
unless the pass-through entity that makes the sale
has held the stock or ownership interest for not
less than two (2) uninterrupted years prior to the
date of the transaction that created the capital
gain, and each pass-through entity included in the
chain of ownership has been a member, partner or
shareholder of the pass-through entity in the tier
immediately below it for an uninterrupted period
of not less than two (2) years. For purposes of
this division, uninterrupted ownership prior to
July 1, 2007, shall be included in the
determination of the required holding period
prescribed by this division, and
f. "Oklahoma proprietorship business enterprise" means a
business enterprise whose income and expenses have been
reported on Schedule C or F of an individual taxpayer's
federal income tax return, or any similar successor
schedule published by the Internal Revenue Service and
whose primary headquarters have been located in
Oklahoma for at least three (3) uninterrupted years
prior to the date of the transaction from which the net
capital gains arise.
G. 1. For purposes of computing its Oklahoma taxable income
under this section, the dividends-paid deduction otherwise allowed by
federal law in computing net income of a real estate investment trust
that is subject to federal income tax shall be added back in
computing the tax imposed by this state under this title if the real
estate investment trust is a captive real estate investment trust.
2. For purposes of computing its Oklahoma taxable income under
this section, a taxpayer shall add back otherwise deductible rents
and interest expenses paid to a captive real estate investment trust
that is not subject to the provisions of paragraph 1 of this
subsection. As used in this subsection:
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a. the term "real estate investment trust" or "REIT" means
the meaning ascribed to such term in Section 856 of the
Internal Revenue Code,
b. the term "captive real estate investment trust" means a
real estate investment trust, the shares or beneficial
interests of which are not regularly traded on an
established securities market and more than fifty
percent (50%) of the voting power or value of the
beneficial interests or shares of which are owned or
controlled, directly or indirectly, or constructively,
by a single entity that is:
(1) treated as an association taxable as a corporation
under the Internal Revenue Code, and
(2) not exempt from federal income tax pursuant to the
provisions of Section 501(a) of the Internal
Revenue Code.
The term shall not include a real estate investment
trust that is intended to be regularly traded on an
established securities market, and that satisfies the
requirements of Section 856(a)(5) and (6) of the U.S.
Internal Revenue Code by reason of Section 856(h)(2) of
the Internal Revenue Code,
c. the term "association taxable as a corporation" shall
not include the following entities:
(1) any real estate investment trust as defined in
paragraph a of this subsection other than a
"captive real estate investment trust", or
(2) any qualified real estate investment trust
subsidiary under Section 856(i) of the Internal
Revenue Code, other than a qualified REIT
subsidiary of a "captive real estate investment
trust", or
(3) any Listed Australian Property Trust (meaning an
Australian unit trust registered as a "Managed
Investment Scheme" under the Australian
Corporations Act in which the principal class of
units is listed on a recognized stock exchange in
Australia and is regularly traded on an
established securities market), or an entity
organized as a trust, provided that a Listed
Australian Property Trust owns or controls,
directly or indirectly, seventy-five percent (75%)
or more of the voting power or value of the
beneficial interests or shares of such trust, or
(4) any Qualified Foreign Entity, meaning a
corporation, trust, association or partnership
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organized outside the laws of the United States
and which satisfies the following criteria:
(a) at least seventy-five percent (75%) of the
entity's total asset value at the close of
its taxable year is represented by real
estate assets, as defined in Section 856(c)
(5)(B) of the Internal Revenue Code, thereby
including shares or certificates of
beneficial interest in any real estate
investment trust, cash and cash equivalents,
and U.S. Government securities,
(b) the entity receives a dividend-paid deduction
comparable to Section 561 of the Internal
Revenue Code, or is exempt from entity level
tax,
(c) the entity is required to distribute at least
eighty-five percent (85%) of its taxable
income, as computed in the jurisdiction in
which it is organized, to the holders of its
shares or certificates of beneficial interest
on an annual basis,
(d) not more than ten percent (10%) of the voting
power or value in such entity is held
directly or indirectly or constructively by a
single entity or individual, or the shares or
beneficial interests of such entity are
regularly traded on an established securities
market, and
(e) the entity is organized in a country which
has a tax treaty with the United States.
3. For purposes of this subsection, the constructive ownership
rules of Section 318(a) of the Internal Revenue Code, as modified by
Section 856(d)(5) of the Internal Revenue Code, shall apply in
determining the ownership of stock, assets, or net profits of any
person.
4. A real estate investment trust that does not become regularly
traded on an established securities market within one (1) year of the
date on which it first becomes a real estate investment trust shall
be deemed not to have been regularly traded on an established
securities market, retroactive to the date it first became a real
estate investment trust, and shall file an amended return reflecting
such retroactive designation for any tax year or part year occurring
during its initial year of status as a real estate investment trust.
For purposes of this subsection, a real estate investment trust
becomes a real estate investment trust on the first day it has both
met the requirements of Section 856 of the Internal Revenue Code and
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has elected to be treated as a real estate investment trust pursuant
to Section 856(c)(1) of the Internal Revenue Code.
Added by Laws 1971, c. 137, § 8, emerg. eff. May 11, 1971. Amended
by Laws 1971, c. 182, § 1, emerg. eff. May 28, 1971; Laws 1971, pp.
1042, 1043, H.J.R. No. 1026, §§ 2A9 to 17, 25, emerg. eff. June 22,
1971; Laws 1972, c. 252, § 2, emerg. eff. April 7, 1972; Laws 1975,
c. 188, § 1, emerg. eff. May 23, 1975; Laws 1977, c. 32, § 1, emerg.
eff. May 6, 1977; Laws 1978, c. 198, § 1, eff. July 1, 1978; Laws
1979, c. 195, § 4, emerg. eff. May 24, 1979; Laws 1980, c. 163, § 1;
Laws 1980, c. 299, § 3; Laws 1980, c. 351, § 1, eff. Jan. 1, 1981;
Laws 1982, c. 293, § 2, emerg. eff. May 24, 1982; Laws 1983, c. 275,
§ 10, emerg. eff. June 24, 1983; Laws 1985, c. 307, § 1, emerg. eff.
July 24, 1985; Laws 1987, c. 113, § 24, operative Jan. 1, 1987; Laws
1987, c. 222, § 112, operative July 1, 1987; Laws 1988, c. 204, § 13,
operative July 1, 1988; Laws 1989, c. 249, § 39, eff. Jan. 1, 1989;
Laws 1991, 1st Ex. Sess., c. 2, § 12, emerg. eff. Jan. 18, 1991; Laws
1991, c. 66, § 1, emerg. eff. April 11, 1991; Laws 1991, c. 342, §
20, eff. Jan. 1, 1992; Laws 1992, c. 373, § 15, eff. July 1, 1992;
Laws 1993, c. 275, § 25, eff. July 1, 1993; Laws 1993, c. 273, § 15,
emerg. eff. May 27, 1993; Laws 1993, c. 308, § 1, emerg. eff. June 7,
1993; Laws 1995, c. 337, § 7, emerg. eff. June 9, 1995; Laws 1996, c.
3, § 15, emerg. eff. March 6, 1996; Laws 1996, c. 296, § 1, eff. Jan.
1, 1997; Laws 1997, c. 2, § 17, emerg. eff. Feb. 26, 1997; Laws 1997,
c. 190, § 4, eff. July 1, 1997; Laws 1998, c. 208, § 1, eff. Jan. 1,
1999; Laws 1998, c. 385, § 9, eff. Nov. 1, 1998; Laws 1999, c. 1, §
23, emerg. eff. Feb. 24, 1999; Laws 1999, c. 338, § 1, eff. Jan. 1,
2000; Laws 2000, c. 73, § 2, emerg. eff. April 14, 2000; Laws 2000,
c. 271, § 1, eff. Nov. 1, 2000; Laws 2001, c. 5, § 43, emerg. eff.
March 21, 2001; Laws 2001, c. 167, § 12, emerg. eff. May 2, 2001;
Laws 2001, c. 358, § 16, eff. July 1, 2001; Laws 2001, 1st Ex. Sess.,
c. 1, § 1, emerg. eff. Oct 8, 2001; Laws 2002, c. 372, § 1, eff. Jan.
1, 2003; Laws 2003, c. 3, § 70, emerg. eff. March 19, 2003; Laws
2004, c. 322, § 14, eff. Dec. 1, 2004 (State Question No. 713,
Legislative Referendum No. 336, adopted at election held Nov. 2,
2004); Laws 2005, c. 381, § 12, eff. Jan. 1, 2006; Laws 2006, c. 16,
§ 65, emerg. eff. March 29, 2006; Laws 2006, 2nd Ex. Sess., c. 44, §
21, eff. Jan. 1, 2007; Laws 2007, c. 1, § 57, eff. July 1, 2007; Laws
2007, c. 118, § 1, eff. July 1, 2007; Laws 2007, c. 346, § 3, eff.
Jan. 1, 2008; Laws 2008, c. 3, § 37, emerg. eff. Feb. 28, 2008; Laws
2008, c. 43, § 4, eff. July 1, 2008; Laws 2008, c. 395, § 3, eff.
Jan. 1, 2008; Laws 2009, c. 174, § 1, eff. Jan. 1, 2010; Laws 2009,
c. 436, § 1, eff. July 1, 2010; Laws 2010, c. 2, § 66, eff. July 1,
2010; Laws 2010, c. 421, § 1; Laws 2013, c. 363, § 2, eff. Jan. 1,
2014; Laws 2014, c. 138, § 1, eff. Nov. 1, 2014; Laws 2016, c. 334, §
1, eff. Nov. 1, 2016; Laws 2017, c. 235, § 1, eff. Jan. 1, 2017; Laws
2018, 2nd Ex. Sess., c. 9, § 1, eff. Jan. 1, 2018; Laws 2019, c. 201,
§ 5, emerg. eff. April 29, 2019.
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NOTE: Laws 1975, c. 18, § 1 repealed by Laws 1977, c. 32, § 2,
emerg. eff. May 6, 1977. Laws 1991, c. 232, § 1 repealed by Laws
1992, c. 373, § 22, eff. July 1, 1992. Laws 1995, c. 249, § 4
repealed by Laws 1996, c. 3, § 25, emerg. eff. March 6, 1996. Laws
1996, c. 216, § 1 and Laws 1996, c. 217, § 1 repealed by Laws 1997,
c. 2, § 26, emerg. eff. Feb. 26, 1997. Laws 1998, c. 366, § 13
repealed by Laws 1999, c. 1, § 45, emerg. eff. Feb. 24, 1999. Laws
2000, c. 212, § 1, Laws 2000, c. 214, § 3 and Laws 2000, c. 225, § 1
repealed by Laws 2001, c. 5, § 44, emerg. eff. March 21, 2001. Laws
2001, c. 316, § 1 and Laws 2001, c. 294, § 1 repealed by Laws 2001,
1st Ex. Sess., c. 1, § 3, emerg. eff. Oct. 8, 2001. Laws 2002, c.
144, § 1 repealed by Laws 2003, c. 3, § 71, emerg. eff. March 19,
2003. Laws 2005, c. 237, § 1 repealed by Laws 2006, c. 16, § 66,
emerg. eff. March 29, 2006. Laws 2005, c. 354, § 1 repealed by Laws
2006, c. 16, § 67, emerg. eff. March 29, 2006. Laws 2005, c. 413, §
9 repealed by Laws 2006, c. 16, § 68, emerg. eff. March 29, 2006.
Laws 2005, 1st Ex. Sess., c. 1, § 6 repealed by Laws 2006, c. 16, §
69, emerg. eff. March 29, 2006. Laws 2006, c. 178, § 1 repealed by
Laws 2007, c. 1, § 58, eff. July 1, 2007. Laws 2006, c. 272, § 17
repealed by Laws 2007, c. 1, § 59, eff. July 1, 2007. Laws 2006, 2nd
Ex. Sess., c. 42, § 5, repealed by Laws 2007, c. 1, § 60, eff. July
1, 2007. Laws 2007, c. 353, § 10 repealed by Laws 2008, c. 3, § 38,
emerg. eff. Feb. 28, 2008. Laws 2009, c. 426, § 10 repealed by Laws
2010, c. 2, § 67, eff. July 1, 2010. Laws 2010, c. 94, § 4 repealed
by Laws 2011, c. 1, § 31, emerg. eff. March 18, 2011.
§68-2358.1. Prisoners of war - Missing in action - Exceptions -
Refunds.
The income of a member of the Armed Forces of the United States
or a civilian who has been or is detained as a prisoner of war or
listed as missing in action in a conflict with the enemy in the
Southeast Asia and Vietnam war or conflict, and in any future war or
conflict with an enemy of the United States, and the income of the
spouse or dependent of such person shall be exempt from Oklahoma
income tax for and during the time in which such person was or is
detained as a prisoner of war or as confirmed missing in action, and
for the remainder of such taxpayer's income tax year following the
release of such prisoner of war or, if a person missing in action,
until he is declared deceased by the Armed Forces.
In any case where an income tax has been paid upon the income,
irrespective of the source of such income, of any such person who was
or is a prisoner of war or missing in action, or upon the income of
such person's spouse or dependent for any year during the time in
which such person was or is a prisoner of war or missing in action,
the tax monies shall be refunded to the person or persons having paid
such tax. Such refund shall be made by the Oklahoma Tax Commission
out of the Oklahoma Income Tax Adjustment Fund, and so much of such
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fund as is necessary for such purpose is hereby appropriated. The
provisions of this act shall be liberally construed to accomplish its
purpose and the statute of limitations in respect to refunds of
income taxes shall not apply to taxpayers covered by this act.
Laws 1973, c. 128, § 1, emerg. eff. May 9, 1973.
§68-2358.1A. Death of member of armed forces in combat zone -
Exemptions - refunds.
A. Any payment made by the United States Department of Defense
as a result of the death of a member of the Armed Forces of the
United States who has been killed in action in a United States
Department of Defense designated combat zone shall be exempt from
Oklahoma income tax during the taxable year in which the individual
is declared deceased by the Armed Forces. Any income earned by the
spouse of a member of the Armed Forces of the United States who has
been killed in action in a United States Department of Defense
designated combat zone shall be exempt from Oklahoma income tax
during the taxable year in which the individual is declared deceased
by the Armed Forces.
B. In any case where income tax has been paid upon any income
exempt pursuant to subsection A of this section, the tax monies shall
be refunded to the person or personal representative of the person.
The refund shall be made by the Oklahoma Tax Commission out of the
Oklahoma Income Tax Adjustment Fund, and so much of such fund as is
necessary for such purpose is hereby appropriated. The provisions of
this section shall be liberally construed to accomplish its purpose
and the statute of limitations with respect to refunds of income
taxes shall not apply to taxpayers covered by this section.
Added by Laws 2009, c. 217, § 1, eff. Jan. 1, 2010.
§68-2358.2. Repealed by Laws 1996, c. 289, § 10, emerg. eff. July 1,
1996.
§68-2358.3. Repealed by Laws 2013, c. 363, § 18, eff. Jan. 1, 2014.
§68-2358.4. Adjustment for individuals engaged in farming business.
A. For taxable years beginning after December 31, 2000, at the
election of an individual engaged in a farming business, the tax
imposed by Section 2355 of Title 68 of the Oklahoma Statutes for such
taxable year shall be equal to the sum of:
1. A tax computed under such section on taxable income reduced
by elected farm income; and
2. The increase in tax imposed by Section 2355 of Title 68 of
the Oklahoma Statutes which would result if taxable income for each
of the three (3) prior taxable years were increased by an amount
equal to one-third (1/3) of the elected farm income.
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Any adjustment under this section for any taxable year shall be
taken into account in applying this section for any subsequent
taxable year.
B. As used in this section:
1. "Elected farm income" means so much of the taxable income for
the taxable year which is attributable to any farming business, and
which is specified in the election under subsection A of this
section. For purposes of this paragraph, a gain from the sale or
other disposition of property, other than land, regularly used by the
taxpayer in such a farming business for a substantial period shall be
treated as attributable to such a farming business;
2. "Individual" shall not mean or include any estate or trust;
and
3. "Farming business" shall have the same meaning as the term is
defined in the Internal Revenue Code, 26 U.S.C., Section 263A(e)(4).
C. The Oklahoma Tax Commission shall promulgate any necessary
rules to implement the provisions of this section.
Added by Laws 2000, c. 290, § 1, eff. Jan. 1, 2001.
§68-2358.5. Interest on certain governmental obligations exempt from
income tax.
A. Interest on local governmental obligations issued after the
effective date of this act for purposes other than to provide
financing for projects for nonprofit corporations shall be exempt
from Oklahoma income taxation. For these purposes, local
governmental obligations shall include bonds or notes issued by, or
on behalf of, or for the benefit of Oklahoma educational
institutions, cities, towns, or counties or by public trusts of which
any of the foregoing is a beneficiary.
B. Interest on governmental obligations issued by the Oklahoma
Department of Transportation after the effective date of this act for
purposes of highway construction and maintenance shall be exempt from
Oklahoma income taxation.
Added by Laws 2000, c. 351, § 12, eff. July 1, 2001. Amended by Laws
2002, c. 290, § 1, eff. July 1, 2002.
NOTE: Editorially renumbered from § 2358.4 of this title to avoid
duplication in numbering.
§68-2358.5-1. Deduction for fostering children.
For taxable years beginning on or after January 1, 2019, there
shall be allowed a deduction for a taxpayer who contracts with a
child-placing agency, as defined in Section 402 of Title 10 of the
Oklahoma Statutes, in the amount of Five Thousand Dollars ($5,000.00)
for expenses incurred to provide care for a foster child. Provided:
1. In order to qualify, a taxpayer shall have been under
contract and providing care for at least six (6) months, regardless
of the tax year during which the care occurs;
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2. If the time period during which a taxpayer is under contract
and providing care is equal to less than six (6) months of the tax
year for which the deduction is being claimed, the taxpayer shall
only claim a monthly pro rata share of the annual Five Thousand
Dollars ($5,000.00) deduction; and
3. Any married persons filing separately in a year in which they
could have filed a joint return may each claim only one-half (1/2) of
the tax deduction that would have been allowed for a joint return.
Added by Laws 2013, c. 352, § 1, eff. Jan. 1, 2014. Amended by Laws
2014, c. 412, § 1, emerg. eff. June 3, 2014; Laws 2019, c. 264, § 1,
eff. Nov. 1, 2019.
§68-2358.5A. Obligations issued by state and certain state agencies
exempt from taxation.
A. All bonds, notes, debentures, evidences of indebtedness,
lease purchase agreements, certificates of participation, commercial
paper, or other obligations issued by the State of Oklahoma, the
Oklahoma Capitol Improvement Authority, the Oklahoma Municipal Power
Authority, the Oklahoma Student Loan Authority, and the Oklahoma
Transportation Authority, the income therefrom, including, without
limitation, any profit made on the sale thereof, and the transfer
thereof, including, without limitation, estate or inheritance taxes,
shall at all times be free from taxation within this state.
B. The provisions of this section shall be supplemental to, and
not limiting or restrictive of, any law involving the taxation of
such obligations within the State of Oklahoma.
Added by Laws 2006, c. 327, § 6, eff. July 1, 2006.
§68-2358.6. Bonus depreciation received under federal law - Addition
to federal taxable income - Subtraction in later years.
A. For income tax returns filed after September 10, 2001, by
corporations and fiduciaries, federal taxable income shall be
increased by eighty percent (80%) of any amount of bonus depreciation
received under the federal Job Creation and Worker Assistance Act of
2002, under Section 168(k) or Section 1400L of the Internal Revenue
Code of 1986, as amended, for assets placed in service after
September 10, 2001, and before September 11, 2004.
B. For income tax returns filed after December 31, 2007, by
corporations and fiduciaries, federal taxable income shall be
increased by eighty percent (80%) of any amount of bonus depreciation
received under the federal Economic Stimulus Act of 2008, or under
the American Recovery and Reinvestment Act of 2009, under Section
168(k) or Section 1400L of the Internal Revenue Code of 1986, as
amended, for assets placed in service after December 31, 2007, and
before January 1, 2010.
C. For a corporation with a unitary business having activity
both inside and outside the state, the increase shall be apportioned
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to Oklahoma in the same manner as income is apportioned to the state
under Section 2358 and Section 2362 of this title.
D. The amount of bonus depreciation added to federal taxable
income by this section shall be subtracted in a later taxable year as
herein provided. Twenty-five percent (25%) of the total amount of
bonus depreciation added back may be subtracted in the first taxable
year following the year of the addition and twenty-five percent (25%)
may be subtracted in each of the next three following taxable years.
E. A corporation or fiduciary filing a return for which federal
taxable income is not increased as provided in subsection A of this
section prior to October 1, 2002, shall file an amended return
reflecting such increase not later than June 30, 2003. The Oklahoma
Tax Commission shall not assess penalties or interest with respect to
the failure to reflect such increase if a correct amended return is
filed as required herein. A corporation or fiduciary filing a return
for which federal taxable income is not increased as provided for in
subsection B of this section prior to October 1, 2008, shall file an
amended return reflecting such increase not later than June 30, 2009.
The Tax Commission shall not assess penalties or interest with
respect to the failure to reflect such increase if a correct amended
return is filed as required herein.
Added by Laws 2002, c. 503, § 3, emerg. eff. June 7, 2002. Amended
by Laws 2008, c. 395, § 2, emerg. eff. June 3, 2008; Laws 2009, c.
426, § 11, emerg. eff. June 1, 2009.
§68-2358.7. Tax credit – Volunteer firefighter.
A. For taxable years beginning after December 31, 2004, there
shall be allowed as a credit against the tax imposed pursuant to
Section 2355 of this title an amount equal to:
1. Two Hundred Dollars ($200.00) each year for which a volunteer
firefighter provides proof of certification as required by subsection
B of this section; and
2. Four Hundred Dollars ($400.00) each year following the
taxable years for which a taxpayer is eligible for the credit
provided by paragraph 1 of this subsection for a volunteer
firefighter providing proof of certification as required by
subsection D of this section.
B. In order to claim the tax credit authorized by paragraph 1 of
subsection A of this section, a volunteer firefighter shall be
required to provide adequate documentation to the Oklahoma Tax
Commission of at least twelve (12) credited hours toward the State
Support or State Basic Firefighter or Firefighter I from an
internationally recognized accrediting assembly or board, their
equivalent, or other related fire or emergency medical services
training approved by the State Fire Marshal Commission and offered by
Oklahoma State University Fire Service Training or Oklahoma
Department of Career and Technology Education prior to or during the
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first taxable year for which a tax credit is claimed pursuant to
paragraph 1 of subsection A of this section. For the purpose of this
subsection, the local fire chief shall be the authority having
jurisdiction and shall choose and approve all volunteer firefighter
training in the applicable department.
C. For each year subsequent to the first year for which a
volunteer firefighter may claim the tax credit authorized by
paragraph 1 of subsection A of this section, in order to claim any
further tax credits pursuant to paragraph 1 of subsection A of this
section, the volunteer firefighter shall be required to provide
documentation that the firefighter has completed an additional six
(6) hours of State Support or State Basic Firefighter or Firefighter
I from an internationally recognized accrediting assembly or board,
their equivalent, or other related fire or emergency medical services
training approved by the State Fire Marshal Commission until such
program or its equivalent is completed. For purposes of this
subsection, equivalency shall be determined by the State Fire Marshal
Commission and Oklahoma State University Fire Service Training. For
purposes of this subsection, Firefighter I or Firefighter II
certifications or their equivalents may be provided in lieu of the
State Support or State Basic Firefighter completion.
D. After having completed the State Support or State Basic
Firefighter program, in order to be eligible for the tax credit
authorized by paragraph 2 of subsection A of this section, the
volunteer firefighter shall:
1. Complete at least six (6) hours of continuing education each
year until the volunteer firefighter completes Intermediate or
Advanced Firefighter or Firefighter I from an internationally
recognized accrediting assembly or board, their equivalent, or other
related fire or emergency medical services training approved by the
State Fire Marshal Commission or its equivalent. For purposes of
this paragraph, equivalency shall be determined by the State Fire
Marshal Commission and Oklahoma State University Fire Service
Training;
2. After completion of Intermediate or Advanced Firefighter or
Firefighter I from an internationally recognized accrediting assembly
or board, their equivalent, or other related fire or emergency
medical services training approved by the State Fire Marshal
Commission, the volunteer firefighter shall complete six (6) hours of
training per year to claim the tax credit. For the purpose of this
subsection, the local fire chief shall be the authority having
jurisdiction and shall choose and approve all volunteer firefighter
training in the applicable department;
3. Provide documentation from the fire chief of the applicable
department that the firefighter has been provided and participated in
all annual training as required by federal and state authorities; and
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4. Provide documentation from the fire chief of the applicable
department that the volunteer firefighter has met the requirements
under the fire department's constitution and bylaws and is a member
in good standing of the department together with a record of the
total number of years of service in good standing with such
department.
E. The Office of the State Fire Marshal and the State Fire
Marshal Commission shall prescribe a reporting form for use by
volunteer fire departments and by volunteer firefighters in order to
provide the certifications required by this section.
F. The Oklahoma Tax Commission may require copies of such
reporting form provided by the State Fire Marshal Commission
regarding training history to verify eligibility for the tax credits
provided by this section.
Added by Laws 2004, c. 515, § 3, eff. July 1, 2004. Amended by Laws
2012, c. 161, § 2, eff. Nov. 1, 2012; Laws 2017, c. 232, § 4, eff.
July 1, 2017.
§68-2358.100. Filing of amended income tax return for 2004 or 2005.
Notwithstanding any other provision of law to the contrary, any
taxpayer who has filed an income tax return for the 2004 or 2005
income tax year or who requested an extension, whether or not the
extension was granted, and whether or not the extension has expired
prior to the effective date of this act, or will expire at any time
prior to January 1, 2006, may file an amended return in order to
recompute adjusted gross income or taxable income, as applicable,
based upon the amendments as contained in Enrolled House Bill No.
1547 of the 1st Session of the 50th Oklahoma Legislature with respect
to allocation of capital or ordinary gains from the sale of a
publicly traded partnership as provided by division (2) of
subparagraph b of paragraph 4 of subsection A of Section 2358 of
Title 68 of the Oklahoma Statutes.
Added by Laws 2005, c. 458, § 3, eff. July 1, 2005.
§68-2359. Exempted organizations.
A. A person or organization exempt from federal income taxation
under the provisions of the Internal Revenue Code shall also be
exempt from the tax imposed by Section 2351 et seq. of this title in
each year in which such person or organization satisfies the
requirements of the Internal Revenue Code for exemption from federal
income taxation. If the exemption applicable to any person or
organization under the provisions of the Internal Revenue Code is
limited or qualified in any manner, the exemption from taxes imposed
by this article shall be limited or qualified in a similar manner.
B. Notwithstanding the provisions of subsection A of this
section, the unrelated business taxable income or other income
subject to tax, as computed under the provisions of the Internal
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Revenue Code, of any person or organization exempt from the tax
imposed by Section 2351 et seq. of this title and subject to the tax
imposed on such income by the Internal Revenue Code shall be subject
to the tax which would have been imposed by this act but for the
provisions of subsection A of this section.
C. Insurance companies paying, during or for the taxable year, a
tax to this state on gross premium income shall be exempt from the
provisions of this article and the taxes levied thereby.
D. Royalty earned by an inventor from products developed and
manufactured in this state shall be exempt from the tax imposed by
Section 2355 of this title for a seven-year period, pursuant to the
provisions of Section 5064.7 of Title 74 of the Oklahoma Statutes.
E. Tenants of small business incubators shall be exempt for the
tax imposed by Section 2355 of this title, pursuant to the provisions
of Section 5078 of Title 74 of the Oklahoma Statutes.
Added by Laws 1971, c. 137, § 9, emerg. eff. May 11, 1971. Amended
by Laws 1975, c. 122, § 1, emerg. eff. May 13, 1975; Laws 1987, c.
121, § 10, eff. Nov. 1, 1987; Laws 1987, c. 228, § 11, eff. Jan. 1,
1988; Laws 1988, c. 313, § 1, emerg. eff. July 1, 1988; Laws 2019, c.
320, § 4.
§68-2360. Accounting periods and methods.
A. The taxpayer's taxable year under this act shall be the same
as his taxable year for federal income tax purposes. If, on the
effective date of this act, the taxpayer's taxable year for Oklahoma
income tax purposes is different than his taxable year for federal
income tax purposes, the taxpayer shall file a return for the short
period ending on the day for which his current taxable year for
federal income tax purposes ends. If such taxpayer's taxable year
for federal income tax purposes ends after his taxable year for
Oklahoma income tax purposes, then the taxpayer shall file a return
for such regular Oklahoma taxable year and a return for the short
period ending with the federal taxable year.
The Tax Commission shall prescribe and promulgate all necessary
rules and regulations for annualizing income and/or deductions for
short years necessitated by the transition, if any, to the federal
taxable year.
B. If a taxpayer's taxable year is changed for federal income tax
purposes, his Oklahoma taxable year shall be similarly changed under
the same rules applicable under the Internal Revenue Code.
C. The taxpayer's method of accounting under this act shall be
the same as his method of accounting for federal income tax purposes.
D. If a taxpayer's method of accounting is changed for federal
income tax purposes, such taxpayer's method for Oklahoma income tax
purposes shall be similarly changed under the same rules applicable
under the Internal Revenue Code.
Added by Laws 1971, c. 137, § 10, emerg. eff. May 11, 1971.
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§68-2361. Filings by married taxpayers - Joint returns - Relief from
liability for deficiency.
Married taxpayers shall file joint or separate returns in
accordance with the manner in which they file returns to the federal
government, or in the event of an adjustment thereto by the federal
government, as finally ascertained to be proper under the Internal
Revenue Code; except that: where either is a resident and the other
is a nonresident, they shall not be entitled to file joint Oklahoma
income tax returns, but if a joint return was filed with the federal
government, then the adjusted gross income as returned to the federal
government, or in the event of an adjustment thereto by the federal
government as finally ascertained under the Internal Revenue Code,
shall be allocated between the husband and wife. The foregoing
exception shall not apply if the nonresident is an active duty
service member whose income is not subject to Oklahoma income tax by
virtue of the Soldier's and Sailor's Civil Relief Act or if both have
net income and they desire to file a joint Oklahoma return and elect
to have their Oklahoma income determined and taxed on the basis of a
joint Oklahoma return as if both were residents.
If a joint return has been made under this section for a tax year
and taking into account all the facts and circumstances, the Tax
Commission determines that it is inequitable to hold one of the
spouses liable for the deficiency in tax for such tax year, then such
spouse shall be relieved of liability for tax, including interest and
penalties, for such tax year to the extent that such deficiency is
determined to be the liability of the other spouse. For purposes of
this section, the determination made by the Tax Commission shall be
the same as the determination made by the Internal Revenue Service
provided the tax year and circumstances surrounding the liability are
the same. If there has been no determination made by the Internal
Revenue Service, the Tax Commission shall apply the factors that
would have been applied by the Internal Revenue Service had a
determination been requested.
Added by Laws 1971, c. 137, § 11, emerg. eff. May 11, 1971. Amended
by Laws 1994, c. 278, § 26, eff. Sept. 1, 1994; Laws 1995, c. 337, §
8, emerg. eff. June 9, 1995; Laws 2001, c. 244, § 1, emerg. eff. May
23, 2001.
§68-2362. Oklahoma taxable income of a part-year resident
individual, nonresident individual, a nonresident trust and a
nonresident estate.
A. For tax years beginning on or after January 1, 1994, the
Oklahoma taxable income of a part-year resident individual,
nonresident individual, a nonresident trust and a nonresident estate
shall be calculated following the provisions of Section 2358 of this
title as if all income were earned in Oklahoma.
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B. Using Oklahoma income tax rates, part-year resident
individuals, nonresident individuals, nonresident trusts and
nonresident estates shall compute their tax liability on the amount
computed in the preceding paragraph.
C. From the liability computed there shall be deducted all
allowable credits to determine the amount of tax due.
D. Part-year resident individuals, nonresident individuals,
nonresident trusts and nonresident estates shall divide adjusted
gross income from Oklahoma sources by the adjusted gross income from
all sources to arrive at the applicable percentage that Oklahoma
adjusted gross income represents of all adjusted income received by
the taxpayer in the income year.
E. Part-year resident individuals, nonresident individuals,
nonresident trusts and nonresident estates shall multiply the amount
of Oklahoma tax computed by the applicable percentage calculated in
the preceding paragraph in order to determine the amount of income
tax which must be paid to the State of Oklahoma. Nothing in this
section shall be construed to allow for greater than one hundred
percent (100%) of a taxpayer's income to be taxed.
F. For purposes of determining the adjusted gross income from
Oklahoma, the following shall be includable:
1. The ownership of any interest in real or tangible personal
property in this state;
2. A business, trade, profession or occupation carried on in
this state or compensation for services performed in this state;
3. A business, trade, profession or occupation carried on or
compensation for services performed partly within and partly without
this state to the extent allocable and apportionable to Oklahoma as
determined under Section 2358 of this title;
4. The distributive share of the Oklahoma part of partnership
income, gains, losses or deductions;
5. The distributive share of the Oklahoma part of estate or
trust income, gains, losses or deductions;
6. Income from intangible personal property, including
annuities, dividends, interest and gains from the disposition of
intangible personal property to the extent that such income is from
property employed in a trade, business, profession or occupation
carried on in Oklahoma. A part-year resident individual, nonresident
individual, nonresident trust or nonresident estate, other than a
dealer holding property primarily for sale to customers in the
ordinary course of trade or business, shall not be deemed to carry on
a business, trade, profession or occupation in Oklahoma solely by
reason of the purchase and sale of property for its own account;
7. The distributive share of the Oklahoma taxable income or loss
of a corporation defined in subchapter S of the Internal Revenue
Code, 26 U.S.C., Section 1361 et seq.;
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8. Income received from all sources of wagering, games of chance
or any other winnings from sources within this state. Proceeds which
are not money shall be taken into account at their fair market value;
and
9. The distributive share of the Oklahoma part of limited
liability company income, gains, losses or deductions.
Added by Laws 1971, c. 137, § 12, emerg. eff. May 11, 1971. Amended
by Laws 1971, p. 1043, H.J.R. No. 1026, § 2A18, emerg. eff. June 22,
1971; Laws 1972, c. 252, § 3, emerg. eff. April 7, 1972; Laws 1989,
c. 249, § 30, eff. Jan. 1, 1990; Laws 1990, c. 339, § 6, emerg. eff.
May 31, 1990; Laws 1991, c. 342, § 21, eff. Jan. 1, 1992; Laws 1994,
c. 278, § 27, eff. Sept. 1, 1994; Laws 2003, c. 472, § 20.
§68-2363. Partners and Partnerships.
The Oklahoma distributive share of partnership income, gains,
losses or deductions of a partnership to be reported by the partners
shall be the same portion of that reported for federal income tax
purposes, as the Oklahoma income, gain, losses or deduction
determined under Sections 2358 and/or 2362 of this title for said
partnership, bears to the federal income, gains, losses or
deductions.
Laws 1971, c. 137, § 13, emerg. eff. May 11, 1971.
§68-2364. Estates, trusts and beneficiaries.
A. The Oklahoma taxable income or loss of an estate, trust or
any beneficiary of either shall be the same portion of that reported
for federal income tax purposes as the Oklahoma income, gains, losses
or deductions determined under applicable provisions of this act for
said estate, trust and/or beneficiary bears to the federal income,
gains, losses or deductions. Amounts allowable under the Oklahoma
Estate Tax Law as deductions in computing the taxable estate of a
decedent shall not be allowed as deductions in computing the taxable
income of the estate or of any other person unless there is filed, as
provided in Internal Revenue Code, Section 642, or any provisions
comparable thereto, the statement required therein and if such waiver
is filed then to the extent allowed as a deduction for income tax
purposes, such amount shall not be allowed for estate tax purposes.
B. A beneficiary of a trust shall exclude from Oklahoma taxable
income any excess distributions by trusts required to be included in
the beneficiary's federal taxable income by reason of Sections 665
through 669 of the Internal Revenue Code, or any provisions
comparable thereto.
Added by Laws 1971, c. 137, § 14. Amended by Laws 1971, p. 1043,
H.J.R. No. 1026, § 2A26, emerg. eff. June 22, 1971.
§68-2365. Subchapter S corporations.
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Except as otherwise provided for in the Pass-Through Entity Tax
Equity Act of 2019, the provisions, applicable to the taxation of
income of corporations and stockholders, electing treatment as
provided in subchapter S of the Internal Revenue Code, shall apply to
taxpayers as provided under this act. A corporation having an
election in effect under subchapter S of the Internal Revenue Code
shall not be subject to the Oklahoma income tax on corporations and
for tax years beginning after December 31, 1996, shall not be subject
to the tax imposed by subsection A of Section 2370 of this title, and
the shareholders of such corporation shall include in their taxable
incomes their proportionate part of the federal income of such
corporation, subject to the modifications as set forth in Sections
2358, 2362 and 2370.2 of this title, in the same manner and to the
same extent as provided by the Internal Revenue Code. However, if
any of the shareholders of such corporation are nonresidents during
any part of the taxable year of the corporation, such corporation
shall be taxable for such year on that part of the income of the
corporation, as determined pursuant to Sections 2358, 2362 and 2370.2
of this title, allocable to the shares of stock owned by such
nonresident unless (i) the corporation files with its return for such
year an agreement executed by each nonresident stockholder stating
that such nonresident will file an Oklahoma income tax return which
will include in the adjusted gross income of such nonresident that
portion of the Oklahoma taxable income of the corporation allocable
to the interest of the nonresident in such corporation, or (ii) the
corporation has made a valid election pursuant to the provisions of
the Pass-Through Entity Tax Equity Act of 2019 and has paid the
applicable tax. For purposes of this section, the term "corporation"
shall include state–chartered banks, state and federal savings
associations and national banking associations that have total assets
of Three Billion Dollars ($3,000,000,000.00) or less and that are
organized pursuant to the laws of this state, or the United States,
or are located or doing business in this state.
Added by Laws 1971, c. 137, § 15, emerg. eff. May 11, 1971. Amended
by Laws 2000, c. 5, § 1, emerg. eff. March 14, 2000; Laws 2001, c.
319, § 1, eff. July 1, 2001; Laws 2019, c. 201, § 6, emerg. eff.
April 29, 2019.
§68-2366. Allocation of income and deductions.
The Tax Commission may allocate gross income, gains, losses,
deductions, credits or allowances between two or more organizations,
trades or businesses (whether or not incorporated, or organized in
the United States or affiliated) owned or controlled directly or
indirectly by the same interests, if the Tax Commission reasonably
determines such allocation is necessary to prevent evasion of taxes
or to clearly reflect income of the organizations, trades or
businesses. Each such organization shall be deemed to be transacting
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business in Oklahoma and subject to all the provisions of this act.
This section shall apply only with respect to related organizations,
trades or businesses which in the aggregate derive income both within
and outside the State of Oklahoma and then only with respect to such
income, deductions, credits or allowances related thereto.
Added by Laws 1971, c. 137, § 16, emerg. eff. May 11, 1971.
§68-2367. Consolidated returns.
The provisions of the Internal Revenue Code, 26 U.S.C., Section 1
et seq., applicable to consolidated corporate income tax returns,
shall not apply to taxpayers under this act, except that:
1. If two or more corporations file federal income tax returns
on a consolidated basis, and if all of such corporations derive all
of their income from sources within Oklahoma, then such corporations
shall be required to file consolidated returns for purposes of
determining their Oklahoma income tax liability.
2. If two or more corporations file federal income tax returns
on a consolidated basis, and if one or more of such corporations
derive a portion of their income from sources outside the State of
Oklahoma, then such corporations shall not be required to file
consolidated returns for purposes of determining their Oklahoma
income tax liability except as hereinafter provided in subsection 3
of this section.
3. The Oklahoma Tax Commission shall permit an affiliated group
of corporations described in subsection 2 of this section to elect to
file a consolidated return for Oklahoma income tax purposes provided
such group files an appropriate election in accordance with
regulations to be promulgated by the Tax Commission. If an
affiliated group of corporations elects to file a consolidated
Oklahoma income tax return under the provisions of this section, such
election shall be binding and the affiliated group of corporations
shall be required to file a consolidated Oklahoma income tax return
for future tax years unless the Oklahoma Tax Commission releases the
affiliated group of corporations from such election. If an
affiliated group of corporations elects to file a consolidated
Oklahoma income tax return under the provisions of this subsection,
the group's consolidated income, loss or deductions shall be
determined on a component member by component member basis in
accordance with the provisions of Sections 2358 and 2362 of this
title.
Laws 1971, c. 137, § 17; Laws 1971, p. 1043, H.J.R. No. 1026, § 2A19,
emerg. eff. June 22, 1971; Laws 1993, c. 273, § 5, eff. Sept. 1,
1993.
§68-2368. Persons required to make returns - Income of estates and
trusts - Income of partnerships - Returns by corporations - Time for
returns - Verification of returns - Form of returns.
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A. For tax years ending before January 1, 2017, the following
individuals shall each make a return stating specifically the taxable
income and, where necessary, the adjusted gross income and the
adjustments provided in Section 2351 et seq. of this title to arrive
at Oklahoma taxable income and, where necessary, Oklahoma adjusted
gross income:
1. Every resident individual having a gross income, or gross
receipts, for the taxable year in an amount sufficient to require the
filing of a federal income tax return, if single, or if married and
not living with husband or wife; and
2. Except as otherwise provided for in the Pass-Through Entity
Tax Equity Act of 2019, every resident individual having a gross
income, or gross receipts, for the taxable year in an amount
sufficient to require the filing of a federal income tax return, if
married and living with husband or wife.
Provided however, every resident individual who does not meet the
requirements sufficient to file a federal return, but has Oklahoma
withholding, may file a claim for refund for all Oklahoma income
taxes withheld and shall not be subject to the provisions of Section
2358 of this title; and
3. Every nonresident individual having Oklahoma gross income for
the taxable year of One Thousand Dollars ($1,000.00) or more.
B. If a husband and wife, living together, have an aggregate
gross income or gross receipts, for such year, in an amount
sufficient to require the filing of a federal income tax return:
1. Each shall make a return; or
2. The income of each shall be included in a single joint
return, in which case the tax shall be computed on the aggregate net
income.
C. 1. For tax years beginning on or after January 1, 2017,
every resident individual whose gross income from both within and
outside of Oklahoma exceeds the sum of the standard deduction and
personal exemption allowed in Section 2358 of this title shall file
an Oklahoma income tax return. Resident individuals not required to
file a federal income tax return must attach a completed federal
income tax return to the Oklahoma income tax return to show how
adjusted gross income and deductions were determined, if their gross
income is more than their adjusted gross income. The Oklahoma income
tax return must show the taxable income and, where necessary, the
adjusted gross income and modifications required by Section 2351 et
seq. of this title, and any other information the Tax Commission may
require.
2. Except as otherwise provided for in the Pass-Through Entity
Tax Equity Act of 2019, every nonresident individual having Oklahoma
gross income for the taxable year of One Thousand Dollars ($1,000.00)
or more shall file an Oklahoma income tax return.
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D. If an individual is unable to make his or her own return, the
return shall be made by a duly authorized agent or by the guardian or
other person charged with the care of the person or property of such
individual.
E. Every partnership shall make a return for each taxable year,
stating the taxable income and the adjustments to arrive at Oklahoma
income. The Oklahoma return shall include a schedule showing the
distribution to partners of the various items of income as per the
federal return and the adjustments required by Section 2351 et seq.
of this title for Oklahoma. The return shall be signed by one of the
partners. Except for partnerships making an election pursuant to the
provisions of the Pass-Through Entity Tax Equity Act of 2019, if a
partnership has elected pursuant to the provisions of Section 761 of
the Internal Revenue Code, or any provision comparable thereto, not
to file partnership income tax returns, that partnership shall not be
required to file an Oklahoma partnership return. The Oklahoma Tax
Commission shall promulgate rules for purposes of partnership returns
when multiple partners would otherwise be required to file a
nonresident return. The rules shall provide a specific number of
partners in a partnership above which a composite return may be
filed. The return shall be in such form as prescribed by the Tax
Commission.
F. Every corporation shall make a return for each taxable year
stating the taxable income and the adjustments provided in Section
2351 et seq. of this title to arrive at Oklahoma taxable income. In
addition, corporations electing subchapter S treatment pursuant to
the Internal Revenue Code and Section 2351 et seq. of this title,
shall include a schedule showing the distribution to shareholders of
the various items of income as per the federal return and the
adjustments for Oklahoma. All corporation returns shall be signed by
the president, vice president, or other principal officer and the
corporate seal impressed. In cases where receivers, trustees in
bankruptcy, or assignees are operating the property or business of
corporations, such receivers, trustees, or assignees shall make a
return for such corporations in the same manner and form as
corporations are required to make returns. Any tax due on the basis
of such returns made by receivers, trustees, or assignees shall be
collected in the same manner as if collected from the corporations of
whose business or property they have custody and control.
G. Every resident estate and trust shall make a return for each
taxable year stating the taxable income and the adjustments to arrive
at Oklahoma taxable income. Every nonresident estate or trust having
Oklahoma taxable income as provided in Section 2362 of this title
shall make a return for each taxable year stating the taxable income
and the adjustments to arrive at Oklahoma taxable income. The
Oklahoma return shall include a schedule showing the distribution to
beneficiaries, if any, of the various items of income as per the
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federal return and the adjustments for Oklahoma. The fiduciary shall
be responsible for making the return and the return shall be signed
by the fiduciary, or by one fiduciary if there is more than one. The
Tax Commission shall promulgate rules for purposes of estate and
trust returns when multiple returns would otherwise be required of
nonresident beneficiaries of estates or trusts. The return shall be
in such form as prescribed by the Tax Commission.
H. 1. All individual returns, except individual returns filed
electronically, made on the basis of the calendar year shall be due
on or before the fifteenth day of April following the close of the
taxable year. Provided, if the Internal Revenue Code provides for a
later due date for returns of individuals, the Tax Commission shall
accept returns filed by individuals by such date and such returns
shall be considered as timely filed.
2. All individual returns filed electronically, made on the
basis of the calendar year, shall be due on or before the twentieth
day of April following the close of the taxable year.
3. All individual returns made on the basis of a fiscal year
shall be due on or before the fifteenth day of the fourth month
following the close of the fiscal year.
4. For tax years beginning before January 1, 2016, calendar year
corporation returns shall be due on or before the fifteenth day of
March following the close of the taxable year. For tax years
beginning on or after January 1, 2016, calendar year corporation
returns shall be due no later than thirty (30) days after the due
date established under the Internal Revenue Code.
5. For tax years beginning before January 1, 2016, fiscal year
corporation returns shall be due on or before the fifteenth day of
the third month following the close of the fiscal year. For tax
years beginning on or after January 1, 2016, fiscal year corporation
returns shall be due no later than thirty (30) days after the due
date established under the Internal Revenue Code.
6. For tax years beginning before January 1, 2016, partnership
returns shall be due on or before the fifteenth day of April
following the close of the taxable year. For tax years beginning on
or after January 1, 2016, partnership returns shall be due no later
than thirty (30) days after the due date established under the
Internal Revenue Code.
7. All estate and trust returns made on the basis of the
calendar year shall be due on or before the fifteenth day of April
following the close of the taxable year. All estate and trust
returns made on the basis of a fiscal year shall be due on or before
the fifteenth day of the fourth month following the close of the
fiscal year.
8. In the case of complete liquidation, or the dissolution, of a
corporation the return of such corporation shall be made on or before
the fifteenth day of the fourth month following the month in which
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the corporation is completely liquidated. A corporation which has
terminated its business activities, satisfied or made provision for
all of its liabilities or has distributed all of its assets, even
though not formally dissolved under state law, is deemed to have
completely liquidated for purposes of this subsection.
I. Returns by individuals, fiduciaries, partnerships,
corporations or any other person or entity required, or that may
hereafter be required to file a return, shall contain or be verified
by a written declaration that such return is made under the penalties
of perjury and the fact that any individual's name is signed to a
filed return shall be prima facie evidence for all purposes that the
return was actually signed by that individual. Provided, the Tax
Commission shall promulgate rules to provide procedures for
verification of signatures on returns which are filed electronically.
J. Every return required by Section 2351 et seq. of this title
shall be in such form as the Tax Commission may, from time to time,
prescribe. Each return shall be filed with the Tax Commission and
forms shall be furnished by the Tax Commission on application
therefor, but failure to secure or receive the form of a return
prescribed shall not relieve any taxpayer from the obligation of
making and filing any return herein required.
K. For tax years ending after January 1, 2017, if a taxpayer
elects to make installment payments of tax due pursuant to the
provisions of subsection (h) of Section 965 of the Internal Revenue
Code, 26 U.S.C., Section 965, such election may also apply to the
payment of Oklahoma income tax, attributable to the income upon which
such installment payments are based.
Added by Laws 1971, c. 137, § 18, emerg. eff. May 11, 1971. Amended
by Laws 1971, H.J.R. No. 1026, p. 1043, emerg. eff. June 22, 1971;
Laws 1972, c. 252, § 4, emerg. eff. April 7, 1972; Laws 1983, c. 13,
§ 5, emerg. eff. March 23, 1983; Laws 1983, c. 275, § 11, emerg. eff.
June 24, 1983; Laws 1988, c. 204, § 14, operative July 1, 1988; Laws
1989, c. 249, § 32, eff. July 1, 1989; Laws 1993, c. 273, § 6, eff.
Sept. 1, 1993; Laws 2002, c. 458, § 12, emerg. eff. June 5, 2002;
Laws 2007, c. 155, § 12, eff. Nov. 1, 2007; Laws 2016, c. 28, § 2,
eff. July 1, 2016; Laws 2017, c. 235, § 2, eff. Jan. 1, 2017; Laws
2018, c. 225, § 1; Laws 2019, c. 201, § 7, emerg. eff. April 29,
2019.
§68-2368.1. Check-off for donation to Oklahoma City National
Memorial Foundation.
A. The Oklahoma Tax Commission shall include on each state
individual income tax return form for tax years beginning after
December 31, 2001, and each state corporate tax return form for tax
years beginning after December 31, 2001, an opportunity for the
taxpayer to donate from a tax refund for the benefit of the Oklahoma
City National Memorial Foundation.
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B. The monies generated from donations made pursuant to
subsection A of this section shall be collected by the Oklahoma Tax
Commission and placed to the credit of the Oklahoma City National
Memorial Foundation to help defray the expense to construct and
maintain the national memorial created to honor the victims of the
bombing of the Alfred P. Murrah Federal Building in Oklahoma City.
Added by Laws 2000, c. 25, § 1, eff. Sept. 1, 2000. Amended by Laws
2001, c. 358, § 28, eff. July 1, 2001.
§68-2368.2. Minimum cumulative donations from check-offs – Removal
of check-off from forms.
A. Except as exempted in subsection B of this section, if on
September 1 of any year the total contributions to any one of the
funds created through donations or contributions from income tax
refunds by checking the appropriate box on the income tax return
forms do not equal Fifteen Thousand Dollars ($15,000.00) or more for
three (3) consecutive years, the explanations and spaces for
designating contributions to the fund shall be removed from the
income tax return forms for the following and all subsequent years.
All contributions to the removed fund after September 1 shall be
refunded to the taxpayer.
B. The provisions of this section shall not apply to:
1. The Income Tax Checkoff Revolving Fund for the Support of the
Folds of Honor Scholarship Program authorized in Section 2368.19 of
this title; or
2. The Oklahoma Silver Haired Legislature - Excellence in State
Government Revolving Fund.
Added by Laws 2000, c. 25, § 2, eff. Sept. 1, 2000. Amended by Laws
2017, c. 112, § 1, eff. Nov. 1, 2017; Laws 2019, c. 370, § 1, eff.
Nov. 1, 2019.
§68-2368.3. Tax refund donation to Oklahoma School for the Deaf and
Oklahoma School for the Blind - Revolving fund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2001, and each state corporate tax
return form for tax years beginning after December 31, 2001, shall
contain a provision to allow a donation from a tax refund for the
benefit of the Oklahoma School for the Deaf and the Oklahoma School
for the Blind, as follows:
Oklahoma School for the Deaf/Oklahoma School for the Blind.
Check if you wish to donate from your tax refund: ( ) $2, ( ) $5, or
( ) $____.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Oklahoma School for the Deaf/Oklahoma School for the
Blind Revolving Fund created in subsection C of this section.
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C. There is hereby created in the State Treasury a revolving
fund for the State Department of Rehabilitation Services to be
designated the "Oklahoma School for the Deaf/Oklahoma School for the
Blind Revolving Fund". The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of all monies
apportioned to the fund pursuant to the provisions of this section.
All monies accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the State Department of
Rehabilitation Services for the purpose of funding programs at the
Oklahoma School for the Deaf and the Oklahoma School for the Blind.
Such monies shall be equally divided between the two designated
schools. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2001, c. 251, § 1, eff. Nov. 1, 2001. Amended by Laws
2012, c. 304, § 549.
§68-2368.3a. Oklahoma Silver Haired Legislature – Excellence in
State Government Revolving Fund.
A. There is hereby created in the State Treasury a revolving
fund for the Department of Human Services, to be designated the
"Oklahoma Silver Haired Legislature – Excellence in State Government
Revolving Fund". The fund shall be a continuing fund, not subject to
fiscal year limitations, and shall consist of any monies transferred
thereto by Section 2368.4 of this title.
B. All monies accruing to the credit of said fund are hereby
appropriated and shall be budgeted and expended by the Department of
Human Services for the purposes specified by Section 2368.4 of this
title; provided no monies in the fund shall be expended for salaries
or other administrative costs, or any programs or services not
authorized by Section 2368.4 of this title.
C. Expenditures from said fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
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Added by Laws 2002, c. 321, § 2, eff. Nov. 1, 2002. Amended by Laws
2012, c. 304, § 550.
§68-2368.4. Oklahoma Silver Haired Legislature and Silver Haired
Legislature Alumni Association activities - Donation from tax refund.
A. The Oklahoma Tax Commission shall include on each state
individual income tax return form for tax years beginning after
December 31, 2019, and each state corporate tax return form for tax
years beginning after December 31, 2019, an opportunity for the
taxpayer to donate from a tax refund for the benefit of the Oklahoma
Silver Haired Legislature and the Oklahoma Silver Haired Legislature
Alumni Association activities.
B. The monies generated from donations made pursuant to
subsection A of this section shall be used by the Department of Human
Services for the following purposes:
1. a. To fund all reasonable expenses of:
(1) Oklahoma Silver Haired Legislators,
(2) Oklahoma Silver Haired Legislature training
sessions,
(3) Silver Haired Legislature interim studies, and
(4) Silver Haired Legislature advocacy activities
approved by the Oklahoma Silver Haired Legislature
Alumni Association Executive Board, and
b. Monies authorized by this paragraph may only be used
for expenses incurred by Silver Haired Legislators and
alternates and other members of the Oklahoma Silver
Haired Legislature Alumni Association as approved by
the Oklahoma Silver Haired Legislature Alumni
Association Executive Board for reasonable expenses
incurred in activities described in this section;
provided, no monies shall be expended for salaries; and
2. Monies generated in excess of Fifty Thousand Dollars
($50,000.00) shall be used to fund those programs or services for
senior citizens which are recommended to the Department for funding
by the Oklahoma Silver Haired Legislature Alumni Association.
C. All monies generated pursuant to subsection A of this section
shall be paid to the State Treasurer and placed to the credit of the
Oklahoma Silver Haired Legislature - Excellence in State Government
Revolving Fund.
Added by Laws 2002, c.321, § 1, eff. Nov. 1, 2002. Amended by Laws
2007, c. 57, § 1, eff. Nov. 1, 2007; Laws 2019, c. 370, § 2, eff.
Nov. 1, 2019.
§68-2368.5. Support of common schools - Donation from tax refund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2003, and each state corporate tax
return form for tax years beginning after December 31, 2003, shall
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contain a provision to allow a donation from a tax refund for the
benefit of the common schools of this state, as follows:
Support of Oklahoma Common Schools. Check if you wish to donate
from your tax refund: ( ) $2, ( ) $5, or ( ) $____.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Income Tax Checkoff Revolving Fund for the Support of
Oklahoma Common Schools created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund for the State Department of Education to be designated the
"Income Tax Checkoff Revolving Fund for the Support of Oklahoma
Common Schools". The fund shall be a continuing fund, not subject to
fiscal year limitations, and shall consist of all monies apportioned
to the fund pursuant to the provisions of this section. All monies
accruing to the credit of the fund are hereby appropriated and may be
budgeted and expended by the State Department of Education for the
purpose of funding common education in this state. Such monies shall
be apportioned as and in the manner that state aid is provided to the
common schools of this state. Expenditures from the fund shall be
made upon warrants issued by the State Treasurer against claims filed
as prescribed by law with the Director of the Office of Management
and Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2003, c. 104, § 1, eff. Nov. 1, 2003. Amended by Laws
2012, c. 304, § 551.
§68-2368.6. Support of road and highway maintenance - Donation from
tax refund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2003, and each state corporate tax
return form for tax years beginning after December 31, 2003, shall
contain a provision to allow a donation from a tax refund for the
benefit of maintenance of the roads and highways in this state, as
follows:
Support of Oklahoma Road and Highway Maintenance. Check if you
wish to donate from your tax refund: ( ) $2, ( ) $5, or ( ) $____.
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B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Income Tax Checkoff Revolving Fund for the Support of
Oklahoma Road and Highway Maintenance created in subsection C of this
section.
C. There is hereby created in the State Treasury a revolving
fund for the Department of Transportation to be designated the
"Income Tax Checkoff Revolving Fund for the Support of Oklahoma Road
and Highway Maintenance". The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of all monies
apportioned to the fund pursuant to the provisions of this section.
All monies accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the Department of Transportation
for the purpose of funding road and highway maintenance in this
state. Such monies shall be apportioned as and in a manner specified
by the Transportation Commission. Expenditures from the fund shall
be made upon warrants issued by the State Treasurer against claims
filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2003, c. 104, § 2, eff. Nov. 1, 2003. Amended by Laws
2012, c. 304, § 552.
§68-2368.7. Support of Medicaid program - Donation from tax refund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2003, and each state corporate tax
return form for tax years beginning after December 31, 2003, shall
contain a provision to allow a donation from a tax refund for the
benefit of the Medicaid program of this state, as follows:
Support of Oklahoma Medicaid Program. Check if you wish to
donate from your tax refund: ( ) $2, ( ) $5, or ( ) $____.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Income Tax Checkoff Revolving Fund for the Support of
the Oklahoma Medicaid Program created in subsection C of this
section.
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C. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Health Care Authority to be designated the
"Income Tax Checkoff Revolving Fund for the Support of the Oklahoma
Medicaid Program". The fund shall be a continuing fund, not subject
to fiscal year limitations, and shall consist of all monies
apportioned to the fund pursuant to the provisions of this section.
All monies accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the Oklahoma Health Care
Authority for the purpose of funding the Medicaid program in this
state. Such monies shall be apportioned as and in the manner
specified by the Oklahoma Health Care Authority. Expenditures from
the fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterprise Services for approval and
payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2003, c. 104, § 3, eff. Nov. 1, 2003. Amended by Laws
2012, c. 304, § 553.
§68-2368.8. County fairs – Donation from tax refund.
A. The Oklahoma Tax Commission shall include on each state
individual tax return form for tax years beginning after December 31,
2003, and each state corporate tax return form for tax years
beginning after December 31, 2003, an opportunity for the taxpayer to
donate from a tax refund for the benefit of Oklahoma county fairs.
B. The monies generated from donations made pursuant to
subsection A of this section shall be collected by the Oklahoma Tax
Commission and placed to the credit of the Oklahoma County Fair
Enhancement Fund.
Added by Laws 2003, c. 123, § 1, eff. Nov. 1, 2003.
NOTE: Editorially renumbered from Title 68, § 2368.5 to avoid
duplication in numbering.
§68-2368.9. Junior Livestock Auction Scholarship Revolving Fund –
Donation from tax refund.
A. The Oklahoma Tax Commission shall include on each state
individual tax return form for tax years beginning after December 31,
2003, and each state corporate tax return form for tax years
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beginning after December 31, 2003, an opportunity for the taxpayer to
donate from a tax refund for the benefit of the State of Oklahoma
Junior Livestock Auction Scholarship Revolving Fund.
B. The monies generated from donations made pursuant to
subsection A of this section shall be paid to the State Treasurer by
the Oklahoma Tax Commission and placed to the credit of the State of
Oklahoma Junior Livestock Auction Scholarship Revolving Fund created
in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund for the State Department of Agriculture, Food, and Forestry to
be designated the “State of Oklahoma Junior Livestock Auction
Scholarship Revolving Fund”. The fund shall be a continuing fund,
not subject to fiscal year limitations, and shall consist of all
monies transferred thereto by subsection A of this section.
D. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the State Department
of Agriculture, Food, and Forestry for the purpose of helping fund
educational opportunities for students exhibiting at the two
statewide Junior Livestock Auctions which serve the entire state and
are held annually in Oklahoma City and Tulsa.
Added by Laws 2003, c. 123, § 2, eff. Nov. 1, 2003.
NOTE: Editorially renumbered from Title 68, § 2368.6 to avoid
duplication in numbering.
§68-2368.10. Line for remittance of use tax on individual tax
returns – Information in income tax form instructions.
A. In order to raise awareness of liabilities for use taxes
levied in Section 1401 et seq. of Title 68 of the Oklahoma Statutes
for purchases of tangible personal property made outside this state
to be consumed within this state, and to increase compliance with
such provisions of law, the Oklahoma Tax Commission is hereby
directed to include a line for the remittance of use tax on
individual income tax returns for tax years beginning on or after
July 1, 2003.
B. The Tax Commission shall include the following information in
the income tax form instructions:
1. An explanation of an individual’s obligation to pay use tax
on items purchased from mail order, Internet, or other sellers that
do not collect state and local sales and use taxes on the items; and
2. A method to help an individual determine the amount of use
tax the individual owes. The method may include a table that gives
the average amounts of use tax payable by taxpayers in various income
ranges.
C. The revenues derived pursuant to the provisions of this
section shall be apportioned by the Tax Commission as follows:
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1. Sixty-five percent (65%) shall be apportioned according to
the provisions of Section 1403 of Title 68 of the Oklahoma Statutes;
and
2. Thirty-five percent (35%) shall be apportioned to each
municipality and county that levies a use tax, in the proportions
which total municipal and county use tax revenue was apportioned by
the Tax Commission in the preceding month.
D. No penalties or interest shall be applied with respect to any
taxes remitted pursuant to the provisions of this section.
Added by Laws 2003, c. 376, § 4, eff. July 1, 2003.
NOTE: Editorially renumbered from Title 68, § 2368.8 to avoid
duplication in numbering.
§68-2368.11. Retirement of Capitol dome debt - Donation from tax
refund.
A. The Oklahoma Tax Commission shall include on each state
individual income tax return form for tax years beginning after
December 31, 2004, and each state corporate tax return form for tax
years beginning after December 31, 2004, an opportunity for the
taxpayer to donate from a tax refund for retiring the debt incurred
in construction and completion of the dome on the Oklahoma State
Capitol.
B. The monies generated from donations made pursuant to
subsection A of this section shall be collected by the Tax Commission
and placed to the credit of the Oklahoma Capitol Complex and
Centennial Commemoration Commission Revolving Fund to help defray the
expense to construct and complete the dome on the Oklahoma State
Capitol.
Added by Laws 2004, c. 35, § 1, eff. July 1, 2004.
NOTE: Editorially renumbered from Title 68, § 2368.11 to avoid a
duplication in numbering.
§68-2368.12. Donation from tax refund – Programs to recruit, train,
and supervise volunteers as Court Appointed Special Advocates.
A. Each state individual income tax return form for tax years
which begin after December 31, 2003, and each state corporate tax
return form for tax years beginning after December 31, 2003, shall
contain a provision to allow a donation from a tax refund for the
benefit of programs to recruit, train, and supervise volunteers as
Court Appointed Special Advocates, as follows:
Support of programs for volunteers to act as Court Appointed
Special Advocates for abused or neglected children. Check if you
wish to donate from your tax refund: ( ) $2, ( ) $5, or ( ) $____.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
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credit of the Income Tax Checkoff Revolving Fund for Court Appointed
Special Advocates created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund for the Office of the Attorney General to be designated the
"Income Tax Checkoff Revolving Fund for Court Appointed Special
Advocates". The fund shall be a continuing fund, not subject to
fiscal year limitations, and shall consist of all monies apportioned
to the fund pursuant to the provisions of this section. All monies
accruing to the credit of the fund are hereby appropriated and shall
be budgeted and expended by the Office of the Attorney General for
the purpose of providing grants to the Oklahoma CASA Association for
the purpose of providing support for Court Appointed Special
Advocates for abused and neglected children. Expenditures from the
fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of State Finance for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, the taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
E. Pursuant to Section 2368.18 of this title, the income tax
checkoff contained in this section is hereby reauthorized effective
January 1, 2018.
Added by Laws 2004, c. 295, § 1, eff. Jan. 1, 2005. Amended by Laws
2012, c. 209, § 1, eff. Nov. 1, 2012; Laws 2018, c. 92, § 1, eff.
Nov. 1, 2018.
NOTE: Editorially renumbered from § 2368.11 of this title to avoid
duplication in numbering.
§68-2368.13. Oklahoma Pet Overpopulation Fund – Donation from tax
refund.
A. The Oklahoma Tax Commission shall include on each state
individual tax return form for tax years beginning after December 31,
2003, and each state corporate tax return form for tax years
beginning after December 31, 2003, an opportunity for the taxpayer to
donate from a tax refund for the benefit of the Oklahoma Pet
Overpopulation Fund created in subsection C of this section.
B. The monies generated from donations made pursuant to
subsection A of this section shall be collected by the Tax Commission
and placed to the credit of the Oklahoma Pet Overpopulation Fund
created in subsection C of this section.
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C. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma Pet Overpopulation Fund". The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all monies transferred to the fund
pursuant to subsection A of this section, all monies transferred to
the fund through the purchase of Animal Friendly special license
plates, and any monies received in the form of gifts, grants,
reimbursements, or donations specifically designated for the fund.
D. All monies accruing to the credit of the Oklahoma Pet
Overpopulation Fund are hereby appropriated and may be budgeted and
expended by the Oklahoma Department of Agriculture, Food, and
Forestry through the State Veterinarian for the purpose of
implementing and maintaining pet sterilization efforts in the State
of Oklahoma.
E. Expenditures from the Oklahoma Pet Overpopulation Fund shall
be made upon warrants issued by the State Treasurer against claims
filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment.
F. Pursuant to Section 2368.18 of this title, the income tax
checkoff contained in this section is hereby reauthorized effective
January 1, 2019.
Added by Laws 2004, c. 504, § 17, eff. July 1, 2004. Amended by Laws
2012, c. 304, § 554; Laws 2018, c. 120, § 1, eff. Nov. 1, 2018.
NOTE: Editorially renumbered from § 2368.11 of this title to avoid
duplication in numbering.
NOTE: An identical section was added by Laws 2004, c. 366, § 2 and
repealed by Laws 2005, c. 1, § 113, emerg. eff. March 15, 2005.
§68-2368.14. Tax refund donation to Oklahoma National Guard Relief
Program.
A. Each state individual income tax return form for tax years
which begin after December 31, 2004, and each state corporate tax
return form for tax years beginning after December 31, 2004, shall
contain a provision to allow a donation from a tax refund for the
benefit of providing financial relief to qualified members of the
Oklahoma National Guard, as follows:
Support of the Oklahoma National Guard Relief Program. Check if
you wish to donate from your tax refund: ( ) $2, ( ) $5, or ( )
$____.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Income Tax Checkoff Revolving Fund for the Support of
the Oklahoma National Guard Relief Program created in subsection C of
this section.
C. There is hereby created in the State Treasury a revolving
fund for the Military Department of the State of Oklahoma to be
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designated the "Income Tax Checkoff Revolving Fund for the Support of
the Oklahoma National Guard Relief Program". The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies apportioned to the fund pursuant to the
provisions of this section. All monies accruing to the credit of the
fund are hereby appropriated and may be budgeted and expended by the
Military Department for the purpose of funding qualified National
Guard members to assist with approved expenses. Such monies shall be
apportioned as and in a manner specified by the Military Department.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
E. Pursuant to Section 2368.18 of this title, the income tax
checkoff contained in this section is hereby reauthorized effective
January 1, 2014.
Added by Laws 2005, c. 238, § 2, eff. Nov. 1, 2005. Amended by Laws
2012, c. 209, § 2, eff. Nov. 1, 2012; Laws 2013, c. 15, § 84, emerg.
eff. April 8, 2013.
NOTE: Laws 2012, c. 304, § 555 repealed by Laws 2013, c. 15, § 85,
emerg. eff. April 8, 2013.
§68-2368.15. Oklahoma Leukemia and Lymphoma Revolving Fund –
Donation from tax refund.
A. The Oklahoma Tax Commission shall include on each state
individual tax return form for tax years beginning after December 31,
2006, and each state corporate tax return form for tax years
beginning after December 31, 2006, an opportunity for the taxpayer to
donate from a tax refund for the benefit of the Oklahoma Leukemia and
Lymphoma Revolving Fund.
B. All monies generated from donations made pursuant to
subsection A of this section shall be paid to the State Treasurer by
the Oklahoma Tax Commission and placed to the credit of the Oklahoma
Leukemia and Lymphoma Revolving Fund created in subsection D of this
section.
C. The monies generated from donations made pursuant to
subsection A of this section shall be used by the State Department of
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Health for the purpose supporting voluntary health agencies dedicated
to curing leukemia, lymphoma, Hodgkin's disease, and myeloma, and to
improving the quality of life of patients and their families.
D. 1. There is hereby created in the State Treasury a revolving
fund for the State Department of Health to be designated the
"Oklahoma Leukemia and Lymphoma Revolving Fund". The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the State Department of Health as
designated by subsection C of this section.
2. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended by the State Department
of Health for the purpose specified in subsection C of this section.
3. Expenditures from said fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
Added by Laws 2006, c. 299, § 1, eff. Nov. 1, 2006. Amended by Laws
2012, c. 304, § 556.
§68-2368.16. Regional food bank - Donation from tax refund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2007, and each state corporate tax
return form for tax years beginning after December 31, 2007, shall
contain a provision to allow a donation from a tax refund for the
benefit of any regional food bank in this state. For purposes of
this section, "regional food bank" means a nonprofit charitable
organization exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), which as a part
of a food bank network, maintains a food distribution operation
providing food to other nonprofit entities that offer groceries or
meals to people in need of food assistance. The provision to allow
donation shall read as follows:
Support of programs for regional food banks in this state. Check
if you wish to donate from your tax refund: ( ) $2, ( ) $5, or ( )
$____.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Income Tax Checkoff Revolving Fund for Oklahoma
Regional Food Banks created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund for the Department of Human Services to be designated the
"Income Tax Checkoff Revolving Fund for Oklahoma Regional Food
Banks". The fund shall be a continuing fund, not subject to fiscal
year limitations, and shall consist of all monies apportioned to the
fund pursuant to the provisions of this section. All monies accruing
to the credit of the fund are hereby appropriated and may be budgeted
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and expended by the Department of Human Services for the purpose of
providing funding for all regional food banks in this state.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
E. Pursuant to Section 2368.18 of this title, the income tax
checkoff contained in this section is hereby reauthorized effective
January 1, 2019.
Added by Laws 2007, c. 353, § 11, eff. Jan. 1, 2008. Amended by Laws
2012, c. 209, § 3, eff. Nov. 1, 2012; Laws 2013, c. 15, § 86, emerg.
eff. April 8, 2013; Laws 2019, c. 370, § 3, eff. Nov. 1, 2019.
NOTE: Laws 2012, c. 304, § 557 repealed by Laws 2013, c. 15, § 87,
emerg. eff. April 8, 2013.
§68-2368.17. Revenue and taxation – Y.M.C.A. Youth and Government
program.
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B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Oklahoma Youth and Government Revolving Fund created in
subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma Youth and Government Revolving
Fund" administered by the State Department of Education. The fund
9)!&#!%!%%"'%)6! !2!(# 7!8;
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all the monies received by the State Department
of Education pursuant to the provisions of subsection A of this
section. All monies accruing to the credit of the fund are
appropriated and may be budgeted and expended by the State Department
of Education at the beginning of each fiscal year for the purpose of
providing grants to the Oklahoma chapter of the Y.M.C.A. Youth and
Government program for purposes of educating young people regarding
government and the legislative process. Expenditures from the fund
shall be made upon warrants issued by the State Treasurer against
claims filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for a refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2009, c. 254, § 1, eff. Jan. 1, 2010. Amended by Laws
2011, c. 172, § 4, eff. Jan. 1, 2012; Laws 2012, c. 304, § 558; Laws
2015, c. 51, § 1, eff. Nov. 1, 2015.
§68-2368.18. Income tax checkoffs - Expiration.
All income tax checkoffs provided for in state statute shall
expire four (4) years after enactment, unless reauthorized by the
Legislature.
Added by Laws 2009, c. 254, § 2, eff. Jan 1, 2010.
§68-2368.19. Folds of Honor Scholarship Program – Donation from tax
refund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2009, and each state corporate tax
return form for tax years beginning after December 31, 2009, shall
contain a provision to allow a donation from a tax refund for the
purpose of providing academic and vocational training scholarships
administered through the Folds of Honor Scholarship Program to
dependents of military servicemen and servicewomen who were either
killed or wounded in action due to military service in the war in
Iraq or Afghanistan where such program is administered through Folds
of Honor Incorporated, a nonprofit charitable organization exempt
from taxation pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3). The provision to allow donation
shall read as follows:
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Support of Folds of Honor Scholarship Program, a nonprofit
charitable organization providing academic and vocational training
scholarships to dependents of military servicemen and servicewomen
who were either killed or wounded in action due to military service
in the war in Iraq or Afghanistan. Check if you wish to donate from
your tax refund: ( ) $2, ( ) $5, or ( ) $____.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Income Tax Checkoff Revolving Fund for the Support of
the Folds of Honor Scholarship Program created in subsection C of
this section.
C. There is hereby created in the State Treasury a revolving
fund for the Military Department of the State of Oklahoma to be
designated the "Income Tax Checkoff Revolving Fund for the Support of
the Folds of Honor Scholarship Program". The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies apportioned to the fund pursuant to the
provisions of this section. All monies accruing to the credit of the
fund are hereby appropriated and may be budgeted and expended by the
Military Department for the purpose of providing grants for academic
and vocational training scholarships administered through the Folds
of Honor Scholarship Program. Such monies shall be apportioned as
and in a manner specified by the Military Department. Expenditures
from the fund shall be made upon warrants issued by the State
Treasurer against claims filed as prescribed by law with the Director
of the Office of Management and Enterprise Services for approval and
payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
E. Pursuant to Section 2368.18 of this title, the income tax
checkoff contained in this section is hereby reauthorized effective
January 1, 2017.
Added by Laws 2009, c. 217, § 2, eff. Jan. 1, 2010. Amended by Laws
2012, c. 304, § 559; Laws 2017, c. 112, § 2, eff. Nov. 1, 2017.
NOTE: Editorially renumbered from § 2368.17 of Title 68 to avoid a
duplication in numbering.
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§68-2368.20. Individual income and corporate tax return – Honor
Flights.
A. Each state individual income tax return form for tax years
which begin after December 31, 2010, and each state corporate tax
return form for tax years beginning after December 31, 2010, shall
contain a provision to allow a donation for the benefit of Oklahoma
Honor Flights.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Oklahoma Honor Flights Revolving Fund created in
subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma Honor Flights Revolving Fund" and
administered by the Oklahoma Department of Veterans Affairs. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all the monies received by the
Oklahoma Department of Veterans Affairs pursuant to the provisions of
subsection A of this section. All monies accruing to the credit of
the fund are appropriated and may be budgeted and expended by the
Oklahoma Department of Veterans Affairs at the beginning of each
fiscal year for the purpose of providing grants to Oklahoma Honor
Flights for purposes of transporting Oklahoma veterans to Washington,
D.C., to visit those memorials dedicated to honor their service and
sacrifices. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2010, c. 298, § 1, eff. Jan. 1, 2011. Amended by Laws
2012, c. 304, § 560.
§68-2368.21. Individual income and corporate tax return – Multiple
Sclerosis Society.
A. Each state individual income tax return form for tax years
which begin after December 31, 2009, and each state corporate tax
return form for tax years beginning after December 31, 2009, shall
9)!&#!%!%%"'%)6! !2!(# 7!8;,
contain a provision to allow a donation from a tax refund for the
benefit of the Multiple Sclerosis Society.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Multiple Sclerosis Society Revolving Fund created in
subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Multiple Sclerosis Society Revolving Fund"
and administered by the State Department of Health. The fund shall
be a continuing fund, not subject to fiscal year limitations, and
shall consist of all the monies received by the State Department of
Health pursuant to the provisions of subsection A of this section.
All monies accruing to the credit of the fund are appropriated and
may be budgeted and expended by the State Department of Health at the
beginning of each fiscal year for the purpose of providing grants to
the Multiple Sclerosis Society for purposes of mobilizing people and
resources to drive research for a cure and to address the challenges
of everyone affected by multiple sclerosis. Expenditures from the
fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterprise Services for approval and
payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2010, c. 307, § 1, eff. Nov. 1, 2010. Amended by Laws
2011, c. 172, § 5, eff. Jan. 1, 2012; Laws 2012, c. 304, § 561.
NOTE: Editorially renumbered from § 2368.20 of this title to avoid
duplication in numbering.
§68-2368.22. Tax donation – Domestic violence and sexual assault
services.
A. Each state individual income tax return form for tax years
which begin after December 31, 2011, and each state corporate tax
return form for tax years beginning after December 31, 2011, shall
contain a provision to allow a donation from a tax refund for the
benefit of domestic violence and sexual assault services in Oklahoma
that have been certified by the Attorney General. As used in this
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section the term "services" shall include but not be limited to
programs, shelters or a combination thereof.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Domestic Violence and Sexual Assault Services Revolving
Fund created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Domestic Violence and Sexual Assault
Services Revolving Fund" administered by the Attorney General. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all the monies received by the
Attorney General pursuant to the provisions of subsection A of this
section. All monies accruing to the credit of the fund are
appropriated and may be budgeted and expended by the Attorney General
at the beginning of each fiscal year for the purpose of providing
grants to domestic violence and sexual assault services providers for
the purpose of providing domestic violence and sexual assault
services in Oklahoma. Expenditures from the fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
D. The Attorney General shall provide notice of the Domestic
Violence and Sexual Assault Services Revolving Fund on the website of
the Attorney General.
E. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for a refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2011, c. 172, § 1, eff. Jan. 1, 2012. Amended by Laws
2012, c. 304, § 562.
§68-2368.23. Tax donation – Volunteer fire departments.
A. Each state individual income tax return form for tax years
which begin after December 31, 2011, and each state corporate tax
return form for tax years beginning after December 31, 2011, shall
contain a provision to allow a donation from a tax refund for the
benefit of volunteer fire departments in Oklahoma.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
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credit of the Volunteer Fire Department Revolving Fund created in
subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Volunteer Fire Department Revolving Fund"
administered by the Office of the State Fire Marshal. The fund shall
be a continuing fund, not subject to fiscal year limitations, and
shall consist of all the monies received by the Office of the State
Fire Marshal pursuant to the provisions of subsection A of this
section. All monies accruing to the credit of the fund are
appropriated and may be budgeted and expended by the Office of the
State Fire Marshal at the beginning of each fiscal year for the
purpose of providing grants to volunteer fire departments in this
state for the purpose of purchasing bunker gear, wildland gear and
other protective clothing. Expenditures from the fund shall be made
upon warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for a refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2011, c. 172, § 2, eff. Jan. 1, 2012. Amended by Laws
2012, c. 304, § 563.
§68-2368.24. Tax donation - Oklahoma Lupus Revolving Fund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2011, and each state corporate tax
return form for tax years beginning after December 31, 2011, shall
contain a provision to allow a donation from a tax refund for the
benefit of the Oklahoma Lupus Revolving Fund.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Oklahoma Lupus Revolving Fund created in subsection C
of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma Lupus Revolving Fund" and
administered by the State Department of Health. The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all the monies received by the State Department of Health
pursuant to the provisions of subsection A of this section. All
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monies accruing to the credit of the fund are appropriated and may be
budgeted and expended by the State Department of Health at the
beginning of each fiscal year for the purpose of providing grants to
the Oklahoma Medical Research Foundation for the purpose of funding
research into treating and curing Lupus in this state. Expenditures
from the fund shall be made upon warrants issued by the State
Treasurer against claims filed as prescribed by law with the Director
of the Office of Management and Enterprise Services for approval and
payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for a refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2011, c. 172, § 3, eff. Jan. 1, 2012. Amended by Laws
2012, c. 304, § 564.
§68-2368.25. Donation from tax refund - Oklahoma Sports Eye Safety
Program Revolving Fund - Apportionment.
A. Each state individual income tax return form for tax years
which begin after December 31, 2011, and each state corporate tax
return form for tax years beginning after December 31, 2011, shall
contain a provision to allow a donation from a tax refund for the
benefit of the Oklahoma Sports Eye Safety Program Revolving Fund.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Oklahoma Sports Eye Safety Program Revolving Fund
created in Section 3 of this act.
C. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for a refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of Title 68 of the Oklahoma Statutes. Prior to the apportionment set
forth in this section, an amount equal to the total amount of refunds
made pursuant to this subsection during any one (1) year shall be
deducted from the total donations received pursuant to this section
during the following year and such amount deducted shall be paid to
the State Treasurer and placed to the credit of the Income Tax
Withholding Refund Account.
Added by Laws 2011, c. 384, § 2, eff. Nov. 1, 2011.
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§68-2368.26. Donation from tax refund - Historic Greenwood District
Music Festival Revolving Fund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2011, and each state corporate tax
return form for tax years beginning after December 31, 2011, shall
contain a provision to allow a donation from a tax refund for the
purpose of supporting music festivals held in the Historic Greenwood
District.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Historic Greenwood District Music Festival Revolving
Fund created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Historic Greenwood District Music Festival
Revolving Fund" and administered by the Oklahoma Historical Society.
The fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all the monies received by the
Oklahoma Historical Society pursuant to the provisions of subsection
A of this section. All monies accruing to the credit of the fund are
appropriated and may be budgeted and expended by the Oklahoma
Historical Society at the beginning of each fiscal year for the
purpose of promoting and supporting music festivals in the Historic
Greenwood District. Expenditures from the fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2011, c. 384, § 4, eff. Nov. 1, 2011. Amended by Laws
2012, c. 304, § 565.
§68-2368.27. Donations from tax refund to Oklahoma College Savings
Plan accounts.
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Added by Laws 2015, c. 299, § 2, eff. Nov. 1, 2015.
§68-2368.28. Donation from tax refund - Indigent Veteran Burial
Revolving Fund
A. Each state individual income tax return form for tax years
which begin after December 31, 2016, and each state corporate tax
return form for tax years beginning after December 31, 2016, shall
contain a provision to allow a donation from a tax refund for the
benefit of the Oklahoma Department of Veterans Affairs Indigent
Veteran Burial Program.
B. All monies generated pursuant to subsection A of this section
shall be paid to the State Treasurer by the Oklahoma Tax Commission
and placed to the credit of the Indigent Veteran Burial Revolving
Fund created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Indigent Veteran Burial Revolving Fund"
and administered by the Oklahoma Department of Veterans Affairs. The
fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all the monies received pursuant to
the provisions of subsection A of this section and any donations
received from any individuals or organizations. All monies accruing
to the credit of the fund are appropriated and may be budgeted and
expended by the Oklahoma Department of Veterans Affairs to provide
reimbursement to a cemetery or funeral home for costs incurred
burying an indigent veteran; provided, the maximum reimbursement
shall not exceed Five Hundred Dollars ($500.00) per veteran and total
reimbursements made in calendar year 2017 shall be limited to Twenty
Thousand Dollars ($20,000.00). Expenditures from the fund shall be
made upon warrants issued by the State Treasurer against claims filed
as prescribed by law with the Director of the Office of Management
and Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of Title 68 of the Oklahoma Statutes. Prior to the apportionment set
forth in this section, an amount equal to the total amount of refunds
made pursuant to this subsection during any one (1) year shall be
deducted from the total donations received pursuant to this section
during the following year and such amount deducted shall be paid to
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the State Treasurer and placed to the credit of the Income Tax
Withholding Refund Account.
Added by Laws 2016, c. 81, § 1, eff. Jan 1, 2017.
§68-2368.29. Donation from tax refund - General Revenue Fund
A. Each state individual income tax return form for tax years
beginning after December 31, 2016, and each state corporate tax
return form for tax years beginning after December 31, 2016, shall
contain provisions to allow a donation from a tax refund or a direct
donation for the benefit of the General Revenue Fund of the State of
Oklahoma, as follows:
Support of Oklahoma General Revenue Fund. Check if you wish to
donate from your tax refund: ( ) entire amount, or ( ) $____. Check
if you wish to make a direct donation to the General Revenue Fund:
(______) amount $_____________.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Income Tax Checkoff Revolving Fund for the Support of
the Oklahoma General Revenue Fund created in subsection C of this
section.
C. There is hereby created in the State Treasury a revolving
fund for the Oklahoma General Revenue Fund to be designated the
“Income Tax Checkoff Revolving Fund for the Support of the Oklahoma
General Revenue Fund“. The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of all monies
apportioned to the fund pursuant to the provisions of this section.
All monies accruing to the credit of the fund shall be deposited to
the credit of the General Revenue Fund and appropriation of such
funds shall be subject to the provisions of Section 23 of Article X
of the Oklahoma Constitution. Expenditures from the fund shall be
made upon warrants issued by the State Treasurer against claims filed
as prescribed by law with the Director of the Office of Management
and Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2016, c. 144, § 1, eff. Jan. 1, 2017.
NOTE: Editorially renumbered from § 2368.28 of this title to avoid
duplication in numbering.
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§68-2368.30. Donation from tax refund - Oklahoma Emergency
Responders Assistance Program Revolving Fund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2016, and each state corporate tax
return form for tax years beginning after December 31, 2016, shall
contain a provision to allow a donation from a tax refund for the
benefit of the Oklahoma Emergency Responders Assistance Program.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Oklahoma Emergency Responders Assistance Program
Revolving Fund created in subsection C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma Emergency Responders Assistance
Program Revolving Fund" and administered by the Department of Public
Safety. The fund shall be a continuing fund, not subject to fiscal
year limitations, and shall consist of all the monies received by the
Department of Public Safety pursuant to the provisions of subsection
A of this section. All monies accruing to the credit of the fund are
appropriated and may be budgeted and expended by the Department of
Public Safety at the beginning of each fiscal year for the purpose of
providing grants to the Oklahoma Emergency Responders Assistance
Program for purposes of providing postcritical incident care to all
emergency first responders and their families who are experiencing
emotional trauma. Expenditures from the fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of this title. Prior to the apportionment set forth in this section,
an amount equal to the total amount of refunds made pursuant to this
subsection during any one (1) year shall be deducted from the total
donations received pursuant to this section during the following year
and such amount deducted shall be paid to the State Treasurer and
placed to the credit of the Income Tax Withholding Refund Account.
Added by Laws 2017, c. 277, § 2, eff. Nov. 1, 2017.
§68-2368.31. Donation from tax refund – Oklahoma AIDS Care Revolving
Fund.
A. Each state individual income tax return form for tax years
which begin after December 31, 2018, and each state corporate tax
return form for tax years beginning after December 31, 2018, shall
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contain a provision to allow a donation from a tax refund for the
benefit of the Oklahoma AIDS Care Revolving Fund.
B. Except as otherwise provided for in this section, all monies
generated pursuant to subsection A of this section shall be paid to
the State Treasurer by the Oklahoma Tax Commission and placed to the
credit of the Oklahoma AIDS Care Revolving Fund created in subsection
C of this section.
C. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma AIDS Care Revolving Fund" and
administered by the Department of Human Services. The fund shall be
a continuing fund, not subject to fiscal year limitations, and shall
consist of all the monies received by the Department of Human
Services pursuant to the provisions of subsection A of this section.
All monies accruing to the credit of the fund are appropriated and
may be budgeted and expended by the Department of Human Services at
the beginning of each fiscal year for the purpose of providing grants
to the Oklahoma AIDS Care Fund for purposes of emergency assistance,
advocacy, education, prevention and collaboration with other
entities. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
D. If a taxpayer makes a donation pursuant to subsection A of
this section in error, such taxpayer may file a claim for refund at
any time within three (3) years from the due date of the tax return.
Such claims shall be filed pursuant to the provisions of Section 2373
of Title 68 of the Oklahoma Statutes. Prior to the apportionment set
forth in this section, an amount equal to the total amount of refunds
made pursuant to this subsection during any one (1) year shall be
deducted from the total donations received pursuant to this section
during the following year and such amount deducted shall be paid to
the State Treasurer and placed to the credit of the Income Tax
Withholding Refund Account.
Added by Laws 2018, c. 135, § 1, eff. Nov. 1, 2018.
§68-2368.32. Historic Greenwood District/Juneteenth Festival
Revolving Fund.
There is hereby created in the State Treasury a revolving fund to
be designated the "Historic Greenwood District/Juneteenth Festival
Revolving Fund" and administered by the Oklahoma Department of
Commerce. The fund shall be a continuing fund, not subject to fiscal
year limitations, and shall consist of all the monies received by the
Oklahoma Department of Commerce pursuant to the provisions related to
the Historic Greenwood District License Plate in Section 1135.5 of
Title 47 of the Oklahoma Statutes. All monies accruing to the credit
of the fund are appropriated and may be budgeted and expended by the
Oklahoma Department of Commerce at the beginning of each fiscal year
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for the purpose of providing grants to support and promote the
Historic Greenwood District Juneteenth Festival in the Historic
Greenwood District in Tulsa, Oklahoma. Expenditures from the fund
shall be made upon warrants issued by the State Treasurer against
claims filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment and in
consultation with the Black Wall Street Chamber of Commerce.
Added by Laws 2019, c. 434, § 4, eff. Nov. 1, 2019.
§68-2369. Reports by persons making payments to taxpayers -
Withholding production payments for failure to file state income tax
return.
A. Except as otherwise provided for in this section, all
persons, banks or corporations, in whatever capacity acting, and
whether or not otherwise exempted from taxation under this act,
including lessees, mortgagors of real or personal property,
fiduciaries, employers and all officers or employees of the state or
of any political subdivision thereof, having the control, receipt,
custody, disposal or payment of interest, income from real property
and tangible personal property including rents, oil or gas production
payments, and mining production payments, salaries, wages, premiums,
annuities, compensation, remunerations, emoluments or other fixed or
determinable annual or other periodical gains, profits or income,
amounting to Seven Hundred Fifty Dollars ($750.00) or over, paid or
payable during any year, to any taxpayer, shall make complete reports
thereof, under oath, to the Tax Commission, under such rules and
regulations, in such form and manner and to such extent, as may be
prescribed by it.
B. Such reports may be required, regardless of amounts, (1) in
case of payments of interest upon bonds, mortgages, deeds of trust,
or other similar obligations of corporations, and (2) in the case of
dividend payments by corporations subject to the tax levied by this
act and (3) in the case of any broker transacting any business, as
such, for any individual subject to the provisions of this act. The
Tax Commission may require such corporations to state the name and
address of each shareholder, the number of shares owned by him and,
in the case of a broker, it may require submission of the names of
the customer for whom such broker transacted any business, with such
details as to profits, losses or other information as the Tax
Commission may require as to each such customer. Any reports
required under this subsection shall likewise be rendered under oath,
and in accordance with rules and regulations prescribed and adopted
by the Tax Commission.
C. Complete reports shall be required, regardless of amounts and
not limited to payments exceeding Seven Hundred Fifty Dollars
($750.00), for all oil, gas, or mining production payments, paid or
payable during any year, to any person, as defined in Section 202 of
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of this title. The Tax Commission may require any person or
corporation making such production payments to report the total
production payments made to any person during any calendar year, in
addition to any other information necessary to calculate Oklahoma
income tax upon such production payments. The Tax Commission may
require such reports from any person or corporation making production
payments for any time period prior to the effective date of this act
based on payment records that such person or corporation is required
to maintain by state or federal law. For purposes of this section,
the term "production payment" means payments of proceeds generated
from mineral interests in this state, including but not limited to, a
lease bonus, delay rental, royalty and working interest payment, and
overriding royalty interest payment.
D. 1. The Tax Commission, or its duly authorized agent, is
authorized and empowered to issue orders to withhold all production
payments to any person upon a determination that the person has
failed to file a state income tax return as required by law reporting
production payment income or has failed to pay state income tax. The
order to withhold production payments shall be directed to the person
or corporation making production payments and shall apply to all
production payments that the person named within such order is
entitled to until the return is filed and the income tax, penalty and
interest are paid. Release of the order to withhold shall be mailed
by the Tax Commission to the person or corporation withholding
production payments upon the filing of the return and payment of the
tax, penalty and interest by the person named within such order or
upon payment of the tax, penalty and interest by the person or
corporation withholding the production payment.
2. Upon receipt of the Tax Commission order to withhold
production payments, the person or corporation making production
payments, within thirty (30) days of receiving such order, shall:
a. withhold payments for all production of the
person named within such order until such order is released by the
Tax Commission,
b. hold in suspense all production payments subject
to such order to withhold, and
c. in the case of established delinquent income tax,
upon receiving such order from the Tax Commission of such established
delinquency, pay the tax, penalty and interest out of the withheld
production payments and receipt such tax payment to the taxpayer in
lieu of cash in settlement for such production.
The order to withhold shall apply to production payments in any case
where a successor person or corporation is required to make
production payments and to production payments of subsequent
production of minerals in this state. Any person or corporation that
withholds production payments or pays same to the Tax Commission
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pursuant to such order is hereby relieved of all liability for such
acts.
3. The Tax Commission shall mail notice to each delinquent
taxpayer at the last-known address reported by the person or
corporation making production payments at least twenty (20) days
prior to issuance of an order to withhold production payments. The
notice shall contain a statement that the taxpayer has failed to file
an income tax return as required by law or has failed to pay
delinquent income tax. An order to withhold production payments may
be issued by the Tax Commission, or its duly authorized agent, for
collection of any delinquent income tax, penalty and interest owed by
the taxpayer entitled to production payments.
4. Any person or corporation making production payments who
refuses or fails tofile the reports required by this section, in the
manner and at the time prescribed by the Tax Commission, shall be
subject to a penalty in the amount of One Hundred Dollars ($100.00)
for each day such report is delinquent. Any person or corporation
making production payments who refuses to withhold payments shall be
subject to a penalty in the amount of One Hundred Dollars ($100.00)
for each payment made which was ordered to be withheld. All
penaltiesassessed pursuant to this subsection shall be collected and
apportioned in the same manner as the state income tax.
Amended by Laws 1986, c. 218, § 22, emerg. eff. June 9, 1986.
§68-2370. In lieu taxes for state, national banking associations and
credit unions.
A. For taxable years beginning after December 31, 1989, for the
privilege of doing business within this state, every state banking
association, national banking association and credit union organized
under the laws of this state, located or doing business within the
limits of the State of Oklahoma shall annually pay to this state a
privilege tax at the rate of six percent (6%) of the amount of the
taxable income as provided in this section.
B. 1. The privilege tax levied by this section shall be in
addition to the Business Activity Tax levied in Section 1218 of this
title and the franchise tax levied in Article 12 of this title and in
lieu of the tax levied by Section 2355 of this title and in lieu of
all taxes levied by the State of Oklahoma, or any subdivision
thereof, upon the shares of stock or personal property of any banking
association or credit union subject to taxation under this section.
2. Nothing in this section shall be construed to exempt the real
property of any banking associations or credit unions from taxation
to the same extent, according to its value, as other real property is
taxed. Nothing herein shall be construed to exempt an association
from payment of any fee or tax authorized or levied pursuant to the
banking laws.
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3. Personal property which is subject to a lease agreement
between a bank or credit union, as lessor, and a nonbanking business
entity or individual, as lessee, is not exempt from personal property
ad valorem taxation. Provided further, that it shall be the duty of
the lessee of such personal property to return sworn lists or
schedules of their taxable property within each county to the county
assessor of such county as provided in Sections 2433 and 2434 of this
title.
C. Any tax levied under this section shall accrue on the last
day of the taxable year and be payable as provided in Section 2375 of
this title. The accrual of such tax for the first taxable year to
which this act applies, shall apply notwithstanding the prior accrual
of a tax in the same taxable year based upon the net income of the
next preceding taxable year; provided, however, any additional
deduction enuring to the benefit of the taxpayer shall be deducted in
accordance with the optional transitional deduction procedures in
Section 2354 of this title.
D. The basis of the tax shall be United States taxable income as
defined in paragraph 10 of Section 2353 of this title and any
adjustments thereto under the provisions of Section 2358 of this
title with the following adjustments:
1. There shall be deducted all interest income on obligations of
the United States government and agencies thereof not otherwise
exempted and all interest income on obligations of the State of
Oklahoma or political subdivisions thereof, including public trust
authorities, not otherwise exempted under the laws of this state; and
2. Expense deductions claimed in arriving at taxable income
under paragraph 10 of Section 2353 of this title shall be reduced by
an amount equal to fifty percent (50%) of excluded interest income on
obligations of the United States government or agencies thereof and
obligations of the State of Oklahoma or political subdivisions
thereof.
E. 1. Except as otherwise provided in paragraph 2 of this
subsection, before January 1, 2017, there shall be allowed a credit
against the tax levied in subsection A of this section in an amount
equal to the amount of taxable income received by a participating
financial institution as defined in Section 90.2 of Title 62 of the
Oklahoma Statutes pursuant to a loan made under the Rural Economic
Development Loan Act. Such credit shall be limited each year to five
percent (5%) of the amount of annual payroll certified by the
Oklahoma Rural Economic Development Loan Program Review Board
pursuant to the provisions of paragraph 3 of subsection B of Section
90.4 of Title 62 of the Oklahoma Statutes with respect to the loan
made by the participating financial institution and may be claimed
for any number of years necessary until the amount of total credits
claimed is equal to the total amount of taxable income received by
the participating financial institution pursuant to the loan. Any
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credit allowed but not used in a taxable year may be carried forward
for a period not to exceed five (5) taxable years. In no event shall
a credit allowed pursuant to the provisions of this subsection be
transferable or refundable.
2. No credit otherwise authorized by the provisions of this
subsection may be claimed for any event, transaction, investment,
expenditure or other act occurring on or after July 1, 2010 for which
the credit would otherwise be allowable. The provisions of this
paragraph shall cease to be operative on July 1, 2012. Beginning
July 1, 2012, the credit authorized by this subsection may be claimed
for any event, transaction, investment, expenditure or other act
occurring on or after July 1, 2012, according to the provisions of
this subsection.
Added by Laws 1971, c. 137, § 20, emerg. eff. May 11, 1971. Amended
by Laws 1971, H.J.R. No. 1026, p. 1043, § 2A22, emerg. eff. June 22,
1971; Laws 1983, c. 167, § 2, emerg. eff. June 6, 1983; Laws 1983, c.
300, § 1, emerg. eff. June 24, 1983; Laws 1986, c. 109, § 1, emerg.
eff. April 9, 1986; Laws 1989, 1st Ex.Sess., c. 2, § 100, operative
Jan. 1, 1990; Laws 1991, c. 128, § 13, emerg. eff. April 29, 1991;
Laws 2002, c. 486, § 10, eff. Jan. 1, 2003; Laws 2010, c. 327, § 29,
eff. July 1, 2010; Laws 2011, c. 1, § 32, emerg. eff. March 18, 2011;
Laws 2014, c. 41, § 1, eff. Nov. 1, 2014.
NOTE: Laws 2010, S.J.R. No. 61, § 19 repealed by Laws 2011, c. 1, §
33, emerg. eff. March 18, 2011.
§68-2370.1. Credit against tax imposed by Section 2370.
A. There shall be allowed a credit against the tax imposed by
Section 2370 of this title for any state banking association,
national banking association and credit union organized under the
laws of this state for the amount of the guaranty fee paid by the
banking association or credit union to the United States Small
Business Administration pursuant to the "7(a)" loan guaranty program.
B. The credit authorized by this section may be claimed for
guaranty fees paid on or after January 1, 2000, and before January 1,
2022.
C. No credit may be claimed pursuant to this section if,
pursuant to the agreement between the banking association or credit
union and the entity to which proceeds are made available, the
banking association or credit union adds the amount of the SBA 7(a)
loan guaranty fee to the amount financed by the borrower or in any
other way recovers the guaranty fee amount from the borrower.
D. The credit authorized by this section may be claimed and if
not fully used in the initial year for which the credit is claimed
may be carried over, in order, to each of the five (5) succeeding
taxable years. The credit authorized by this section may not be used
to reduce the tax liability of the credit claimant below zero (0).
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E. The Oklahoma Tax Commission shall prepare a report regarding
the amount of tax credits claimed as authorized by this section. The
report shall be submitted to the Speaker of the House of
Representatives and to the President Pro Tempore of the Senate not
later than March 31 of each year.
F. Pursuant to Section 46A of Title 62 of the Oklahoma Statutes,
there shall be a measurable goal of retaining and/or creating two
thousand jobs per year in Oklahoma for the credit against the tax
imposed by Section 2370 of this title.
Added by Laws 1999, c. 242, § 1, eff. Jan. 1, 2000. Amended by Laws
2014, c. 32, § 1, eff. Nov. 1, 2014; Laws 2016, c. 110, § 1, eff.
Nov. 1, 2016; Laws 2018, c. 131, § 1, eff. Nov. 1, 2018.
§68-2370.2. Subchapter S elections.
Except as otherwise provided for in the Pass-Through Entity Tax
Equity Act of 2019, a state banking association or national banking
association having an election in effect under subchapter S of the
Internal Revenue Code for any tax year beginning after December 31,
1996, in reporting items of income, loss, deductions and credits
proportionately to its shareholders for inclusion in their taxable
incomes, shall use as a basis items of income, loss, deductions and
credits of such banking association as shown on its federal income
tax return, subject to modifications as set forth in Sections 2358
and 2362 of this title.
Added by Laws 2000, c. 5, § 2, emerg. eff. March 14, 2000. Amended
by Laws 2001, c. 319, § 2, eff. July 1, 2001; Laws 2019, c. 201, § 8,
emerg. eff. April 29, 2019.
§68-2370.3. Repealed by Laws 2013, c. 363, § 19, eff. Jan. 1, 2014.
§68-2372. Returns by banking institutions.
Except as otherwise provided for in the Pass-Through Entity Tax
Equity Act of 2019, every national banking association or state bank,
subject to taxation under this act, shall make its return to the Tax
Commission at the same time and in the same manner required of other
corporations, as specified herein, and except to the manner of
computing the net income subject to the tax levied by this act, each
shall be subject to all other provisions of this act applicable to
such other corporations.
Added by Laws 1971, c. 137, § 22, emerg. eff. May 11, 1971. Amended
by Laws 2019, c. 201, § 9, emerg. eff. April 29, 2019.
§68-2373. Payment of refunds - Extension of time.
If, upon any revision or adjustment, including overpayment or
illegal payment on account of income derived from tax-exempt Indian
land, any refund is found to be due any taxpayer, it shall be paid
out of the "Income Tax Withholding Refund Account", created by
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Section 2385.16 of this title, in the same manner as refunds are paid
pursuant to such section. The information filed, reflecting the
revision or adjustment, shall constitute the claim for refund.
Except as provided in subsection H of Section 2375 of this title,
the amount of the refund shall not exceed the portion of the tax paid
during the three (3) years immediately preceding the filing of the
claim, or, if no claim was filed, then during the three (3) years
immediately preceding the allowance of the refund. However, this
three-year limitation shall not apply to the amount of refunds
payable upon claims filed by members of federally recognized Indian
tribes or the United States on behalf of its Indian wards or former
Indian wards, to recover taxes illegally collected from tax-exempt
lands. In the case of any refund to a member of a federally
recognized Indian tribe or to the United States on behalf of its
Indian wards or former Indian wards, to recover taxes illegally
collected on bonus payments from oil and gas leases located on tax-
exempt Indian lands pursuant to this section, the Tax Commission
shall pay interest on all refunds issued after January 1, 1996, at
the rate of six percent (6%) per annum from the date of payment by
the taxpayer to the date of the refund.
In cases where the Tax Commission and the taxpayer have signed a
consent, as provided by law, extending the period during which the
tax may be assessed, the period during which the taxpayer may file a
claim for refund or during which an allowance for a refund may be
made shall be automatically extended to the final date fixed by such
consent plus thirty (30) days.
The Oklahoma Tax Commission may authorize the use of direct
deposit in lieu of refund checks for electronically filed income tax
returns.
Added by Laws 1971, c. 137, § 23, emerg. eff. May 11, 1971. Amended
by Laws 1971, p. 1043, H.J.R. No. 1026, § 2A24, emerg. eff. June 22,
1971; Laws 1979, c. 47, § 73, emerg. eff. April 9, 1979; Laws 1979,
c. 264, § 10, emerg. eff. June 5, 1979; Laws 1985, c. 15, § 2, emerg.
eff. April 11, 1985; Laws 1991, c. 342, § 22, emerg. eff. June 15,
1991; Laws 1993, c. 146, § 25; Laws 1996, c. 289, § 9, eff. July 1,
1996; Laws 1997, c. 294, § 23, eff. July 1, 1997.
§68-2374. Interest.
In the case of any refund to a taxpayer as provided in Section
226 of the Uniform Tax Procedure Code for taxes collected pursuant to
this act, the Tax Commission shall pay interest thereon at the rate
of six percent (6%) per annum from the date of payment by the
taxpayer to the date of such refund. To the extent inconsistent
herewith, Section 226 of the Uniform Tax Procedure Code is hereby
superseded.
Amended by Laws 1983, c. 13, § 7, emerg. eff. March 23, 1983. x
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§68-2375. Payment of tax - Delinquency - Penalties and interest -
Assessment or refund during IRS extension.
A. At the time of transmitting the return required hereunder to
the Oklahoma Tax Commission, the taxpayer shall remit therewith to
the Tax Commission the amount of tax due under the applicable
provisions of Section 2351 et seq. of this title. Failure to pay
such tax on or before the date the return is due shall cause the tax
to become delinquent. If the return is filed electronically, the
amount of the tax due pursuant to the provisions of this article
shall be due on or before the twentieth day of April following the
close of the taxable year regardless of when the return is
electronically filed. The tax shall be deemed delinquent if unpaid
after the twentieth day of April if the return is electronically
filed. Provided, if the Internal Revenue Code provides for a later
due date for returns of individuals, the Tax Commission shall accept
payments made with returns filed by individuals by such date and such
payments shall be considered as timely paid.
B. If any tax due under Section 2351 et seq. of this title,
except a deficiency determined under Section 221 of this title, is
not paid on or before the date such tax becomes delinquent, a penalty
of five percent (5%) of the total amount of the tax due shall be
added thereto, collected and paid. However, the Tax Commission shall
not collect the penalty assessed if the taxpayer remits the tax and
interest within sixty (60) days of the mailing of a proposed
assessment or voluntarily pays the tax upon the filing of an amended
return.
C. If any part of deficiency, arbitrary or jeopardy assessment
made by the Tax Commission is based upon or occasioned by the refusal
of any taxpayer to file with the Tax Commission any return as
required by Section 2351 et seq. of this title, within ten (10) days
after a written demand for such report or return has been served upon
any taxpayer by the Tax Commission by registered letter with a return
receipt attached, the Tax Commission may assess and collect, as a
penalty, twenty-five percent (25%) of the amount of the assessment.
In the exercise of the authority granted by subsection C of Section
223 and Section 224 of this title, the Tax Commission shall assess
the tax as an estimated tax on the basis of its own determination of
the Oklahoma taxable income of the taxpayer, to be adjusted if and
when Oklahoma taxable income is ascertained under the provisions of
Section 2351 et seq. of this title.
D. If any part of any deficiency was due to negligence or
intentional disregard, without the intent to defraud, then ten
percent (10%) of the total amount of the deficiency, in addition to
such deficiency, including interest as authorized by law, shall be
added, collected and paid.
E. If any part of any deficiency was due to fraud with intent to
evade tax, then fifty percent (50%) of the total amount of the
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deficiency, in addition to such deficiency, including interest as
herein provided, shall be added, collected and paid.
F. The provisions in this section for penalties shall supersede
all other provisions for penalties on income taxes. The provisions
in this section for penalties shall supersede the provisions in the
Uniform Tax Procedure Code, Section 201 et seq. of this title, only
to the extent of conflict between such provisions and the penalty
provisions in this section.
G. All taxes, penalties and interest levied under Section 2351
et seq. of this title must be paid to the Tax Commission at Oklahoma
City, in the form or remittance required by and payable to it.
H. 1. The period of time prescribed in Section 223 of this
title, in which the procedures for the assessment of income tax may
be commenced by the Tax Commission, shall be tolled and extended
until the amount of taxable income for any year of a taxpayer under
the Internal Revenue Code has been finally determined under
applicable federal law and for the additional period of time
hereinafter provided in this subsection.
2. If, in such final determination, the amount of taxable income
for any year of a taxpayer under the Internal Revenue Code is changed
or corrected from the amounts included in the federal return of the
taxpayer for such year and such change or correction affects the
Oklahoma taxable income of the taxpayer for such year, the taxpayer,
within one (1) year after such final determination of the corrected
taxable income, shall file an amended return under Section 2351 et
seq. of this title reporting the corrected Oklahoma taxable income,
and the Tax Commission shall make assessment or refund within two (2)
years from the date the return required by this paragraph is filed
and not thereafter, unless a waiver is agreed to and signed by the
Tax Commission and the taxpayer.
3. In the event of failure by a taxpayer to comply with the
provisions of paragraph 2 of this subsection, the statute of
limitations shall be tolled for a period of time equal to the time
between the date the amended return under this subsection is required
until such return is actually furnished.
4. In administering the provisions of this subsection, the Tax
Commission shall have the authority to audit each and every item of
income, deduction, credit or any other matter related to the return
where such items or matters relate to allocation or apportionment
between the State of Oklahoma and some other state or the federal
government even if such items or matters were not affected by
revisions made in such final determination. Where such items or
matters do not relate to allocation or apportionment between the
State of Oklahoma and some other state or the federal government, the
Tax Commission shall be bound by the revisions made in such final
determination.
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5. The provisions of this subsection shall be effective on
September 1, 1993, and except in the case of tax years which are the
subject of closing, settlement or resolution agreements entered into
by taxpayers and the Tax Commission, keep open all tax years
beginning after June 30, 1988, and all tax years beginning on or
before June 30, 1988, for which extensions of the statute of
limitations have been executed by the taxpayer, but only to the
extent such extensions remain open on the date of enactment hereof.
Added by Laws 1971, c. 137, § 25, emerg. eff. May 11, 1971. Amended
by Laws 1986, c. 218, § 23, emerg. eff. June 9, 1986; Laws 1989, c.
249, § 33, eff. Jan. 1, 1990; Laws 1992, c. 172, § 2, emerg. eff. May
5, 1992; Laws 1993, c. 273, § 7, emerg. eff. May 27, 1993; Laws 1994,
c. 278, § 28, eff. Sept. 1, 1994; Laws 1997, c. 294, § 24, eff. July
1, 1997; Laws 1998, c. 385, § 10, eff. Nov. 1, 1998; Laws 2002, c.
458, § 13, emerg. eff. June 5, 2002; Laws 2007, c. 155, § 13, eff.
Nov. 1, 2007; Laws 2014, c. 274, § 3, eff. Nov. 1, 2014.
§68-2376. False return - Failure to return - Prosecution - Penalty.
A. Any person, natural or corporate, or any officer or agent of
any corporation who, with the intent to defraud the state or evade
the payment of any income tax, shall fail to file a state income tax
return when such person is required to do so by the statutes of
Oklahoma, and within the time in which such returns are required to
be filed, or within a time extension if obtained from the Tax
Commission shall be guilty, upon conviction, of a felony and shall be
punished as provided for in Section 240.1 of this title.
B. Any person, natural or corporate, or any officer or agent of
any corporation who, with the intent to defraud the state, or evade
the payment of any income tax, files a state income tax return which
is false in any material items or particular, shall be guilty, upon
conviction, of a felony and shall be punished as provided for in
subsection A of Section 241 of this title.
C. Nothing in this section shall be construed to prevent the
state or any agency thereof from collecting any fees or penalties as
provided by law. Any corporate violator may be so fined.
D. Offenses defined in this section shall be reported to the
appropriate district attorney of this state by the Oklahoma Tax
Commission as soon as said offenses are discovered by the Commission
or its agents or employees. Any other provision of law to the
contrary notwithstanding, the Commission shall make available to the
appropriate district attorney, or to the authorized agent of said
district attorney, its records and files pertinent to such
prosecutions, and such records and files shall be fully admissible
for the purpose of such prosecutions.
Added by Laws 1971, c. 137, § 26, emerg. eff. May 11, 1971. Amended
by Laws 1986, c. 218, § 24, emerg. eff. June 9, 1986; Laws 1997, c.
133, § 564, eff. July 1, 1999.
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NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 564 from July 1, 1998, to July 1, 1999.
§68-2377. Prosecutions for failure to file income tax return or for
filing false return.
Offenses defined by Title 68, O.S. 1961, Section 919, shall be
reported to the appropriate county or district attorney of this State
by the Oklahoma Tax Commission as soon as said offenses are
discovered by the Commission or its agents or employees. Any other
provision of law to the contrary notwithstanding, the Commission
shall make available to the appropriate county or district attorney,
or to the authorized agent of said county or district attorney, its
records and files pertinent to such prosecutions, and such records
and files shall be fully admissible for the purpose of such
prosecutions.
Laws 1967, c. 334, § 7, emerg. eff. May 18, 1967.
§68-2378. Other taxes not in lieu of income tax.
All taxes, required to be paid under any other law of this state
in which law it is stated either, that such taxes are to be in lieu
of other taxes, or that the property on which the tax is levied shall
be subject to no other form of tax than therein provided, are hereby
declared to be in lieu of general ad valorem property taxes, and
shall not be construed to be in lieu of the net income tax hereby
levied.
Added by Laws 1971, c. 137, § 27, emerg. eff. May 11, 1971.
§68-2379. Taxes levied by prior laws.
This act shall not release, extinguish or otherwise affect the
liability of any person or property for taxes that shall have
accrued, or become payable or owing, under any law repealed by this
act, and which shall have not been paid when this act becomes
effective. All such taxes shall remain payable and be subject to the
laws levying same to the same extent as if this act had not been
enacted, and when collected shall be apportioned or distributed as
provided by such laws. All remedies for the collection of unpaid
taxes, existing or available when this act becomes effective, shall
be available for the collection of taxes due under such prior laws or
due under this act, and this act shall not affect any proceeding or
action commenced before the effective date hereof, or any proceeding
or action pending when this act becomes effective.
Added by Laws 1971, c. 137, § 28, emerg. eff. May 11, 1971.
§68-2381. Applicability of act to taxable years.
The provisions of this act shall apply to all taxpayers whose
taxable year begins on and after January 1, 1971; provided, however,
that in respect to any taxpayer whose taxable year begins in 1970 and
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ends in 1971, such taxpayer may, at his option, determine his tax
under this act or compute his tax liability for such fiscal year
ending in 1971, by using the sum of the computations of 1, and 2, as
follows:
1. The tax computed under the provisions of the law applicable
to the calendar year 1970, multiplied by the ratio of the number of
months of the year in 1970, to the total number of months of the
taxable year.
2. The tax computed under the provisions of this law applicable
to the calendar year 1971, multiplied by the ratio of the number of
months of the year in 1971, to the total number of months of the
taxable year.
Added by Laws 1971, c. 137, § 30, emerg. eff. May 11, 1971.
§68-2382. Invalidity clause.
If any of the provisions of this act shall be adjudged to be
invalid or unconstitutional, such adjudication shall not affect the
validity or constitutionality of any of the other provisions of this
act.
Added by Laws 1971, c. 137, § 31, emerg. eff. May 11, 1971.
§68-2385. Specified tax return preparers – Electronic filing.
Any specified tax return preparer shall file all individual
income tax returns prepared by such preparer by electronic means.
The term “specified tax return preparer” shall have the same meaning
as provided in Section 6011 of the Internal Revenue Code of 1986, as
amended. The preparation of a substantial part of a return or claim
for refund is treated as if it were the preparation of the entire
return or claim for refund. This section shall apply to all returns
filed after December 31, 2010.
Added by Laws 2003, c. 472, § 21. Amended by Laws 2010, c. 419, § 4,
eff. Nov. 1, 2010.
§68-2385.1. Definitions.
When used in the remaining sections of this article, the
following terms shall, unless the context otherwise requires, have
the following meanings:
(a) The term "Tax Commission" shall mean the Oklahoma Tax
Commission;
(b) The term "employer" shall mean any person (including any
individual, fiduciary, estate, trust, partnership, limited liability
company or corporation) transacting business in or deriving any
income from sources within the State of Oklahoma for whom an
individual performs or performed any service, of whatever nature, as
the employee of such person, except that if the person for whom the
individual performs or performed the services does not have control
of the payment of the wages for such services, the term "employer"
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shall mean the person having control of the payment of such wages.
As used in the preceding sentence, the term "employer" includes any
limited liability company, corporation, individual, estate, trust, or
organization which is exempt from taxation under this article. The
term "employer" shall not include those nonresident employers who
have no office, warehouse, or place of business in Oklahoma and whose
transactions are limited to the solicitation of orders for
merchandise, which orders are filled from a point without the state
and delivered directly from said point to the purchaser in Oklahoma;
(c) The term "employee" shall mean any "resident individual," as
defined by Section 2353 of this title, performing services for an
employer, either within or without, or both within and without, the
State of Oklahoma, and every other individual performing services
within the State of Oklahoma, the performance of which services
constitutes, establishes, and determines the relationship between the
parties as that of employer and employee. As used in the preceding
sentence, the term "employee" includes an officer of a corporation
and an officer, employee, or elected official of the United States, a
state, territory, or any political subdivision thereof, or the
District of Columbia, or any agency or instrumentality of any one or
more of the foregoing;
(d) The term "taxpayer" is as defined by Section 2353 of this
title, other than estates;
(e) The term "wages" shall have the same meaning as used in the
Internal Revenue Code, 26 U.S.C., Section 1 et seq., except as
otherwise provided in this section and article. "Wages" shall not
include remuneration paid:
(1) for services paid to an employee in connection with
farming activities where the amount paid is Nine
Hundred Dollars ($900.00) or less monthly; or
(2) for domestic service in a private home, local college
club, or local chapter of a college fraternity or
sorority; or
(3) for service not in the course of the employer's trade
or business performed in any calendar quarter by an
employee, unless the cash remuneration paid for such
service is Two Hundred Dollars ($200.00) or more; or
(4) for services performed in the state by a person who is
not a "resident individual," whose income in any
calendar quarter is not more than Three Hundred Dollars
($300.00); or
(5) for services performed by a duly ordained,
commissioned, or licensed minister of a church in the
exercise of his ministry or by a member of a religious
order in the exercise of duties required by such order;
and
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(f) The term "winnings subject to withholding" shall have the
same meaning as used in the Internal Revenue Code, 26 U.S.C., Section
1 et seq., and shall apply to transactions in this state.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from § 2330 by Laws 1971, c. 137, § 32, emerg. eff. May
11, 1971. Amended by Laws 1977, c. 104, § 1, emerg. eff. May 30,
1977; Laws 1990, c. 339, § 7, emerg. eff. May 31, 1990; Laws 1991, c.
342, § 23, eff. Jan. 1, 1992; Laws 1993, c. 366, § 46, eff. Sept. 1,
1993; Laws 1994, c. 278, § 29, eff. Sept. 1, 1994.
§68-2385.2. Amount to be withheld.
A. Every employer making payment of wages shall deduct and
withhold from the wages paid each employee a tax in an amount
determined in accordance with a table fixing graduated rates of tax
to be withheld, which table shall be devised by the Oklahoma Tax
Commission and fix the rate of such tax to be withheld from each
employee as a percentage of the amount of federal income tax withheld
under the Internal Revenue Code, and/or a percentage of the amount of
salary paid to the employee, giving consideration to the approximate
amount of the state tax liability of any such employee, if such
employee-taxpayer were to elect to use the standard deduction. Such
table shall be published by the Oklahoma Tax Commission and furnished
to all employers filing income withholding tax returns as required by
law.
B. Whenever the amount to be withheld from the wages of an
employee is calculated to total less than twenty-five cents ($0.25)
in any quarterly period of a year, the provisions of subsection A of
this section shall not apply.
C. Every person, including the government of the United States,
a state or a political subdivision thereof or any instrumentalities
of the foregoing, making any payment of winnings which are subject to
withholding shall deduct and withhold from such payment a tax in an
amount equal to four percent (4%) of such payment.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from § 2331 by Laws 1971, c. 137, § 32, emerg. eff. May
11, 1971. Amended by Laws 1971, p. 1041, H.J.R. No. 1026, § 1,
emerg. eff. June 22, 1971; Laws 1990, c. 339, § 8, emerg. eff. May
31, 1990; Laws 1994, c. 278, § 30, eff. Sept. 1, 1994.
§68-2385.3. Payment of taxes to Tax Commission - Statement to
employee - Failure to withhold or pay over.
A. Every employer required to deduct and withhold taxes under
Section 2385.2 of this title shall pay over the amount so withheld as
taxes to the Oklahoma Tax Commission pursuant to the schedule
outlined in paragraphs 1 through 3 of this subsection, and shall file
a quarterly return in such form as the Tax Commission shall prescribe
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on or before the twentieth day of the month following the close of
each calendar quarter:
1. Every employer required to remit federal withholding under
the Federal Semiweekly Deposit Schedule shall pay over the amount so
withheld under subsection A of this section on the same dates as
required under the Federal Semiweekly Deposit Schedule for federal
withholding taxes;
2. Every employer owing an average of Five Hundred Dollars
($500.00) or more per quarter in taxes in the previous fiscal year
who is not subject to the provisions of paragraph 1 of this
subsection shall pay over the amount so withheld on or before the
twentieth day of each succeeding month; and
3. Every employer owing an average of less than Five Hundred
Dollars ($500.00) per quarter in taxes in the previous fiscal year
shall pay over the amount so withheld on or before the twentieth day
of the month following the close of each succeeding quarterly period.
B. Every employer subject to the provisions of paragraph 1 of
subsection A of this section shall file returns pursuant to the Tax
Commission's electronic data interchange program.
C. Every employer required under Section 2385.2 of this title to
deduct and withhold a tax from the wages paid an employee shall, as
to the total wages paid to each employee during the calendar year,
furnish to such employee, on or before January 31 of the succeeding
year, a written statement showing the name of the employer, the name
of the employee and the employee's Social Security account number, if
any, the total amount of wages subject to taxation, and the total
amount deducted and withheld as tax and such other information as the
Tax Commission may require. If an employee's employment is
terminated before the close of a calendar year, the written statement
must be furnished within thirty (30) days of the date of which the
last payment of wages is made.
D. Every employer required under Section 2385.2 of this title to
deduct and withhold a tax from the wages paid an employee shall
furnish to the Oklahoma Tax Commission, on or before January 31 of
the succeeding year, an annual reconciliation and such other
information as the Tax Commission may require pursuant to the Tax
Commission's electronic data interchange program.
E. If the Tax Commission, in any case, has justifiable reason to
believe that the collection of the tax provided for in Section 2385.2
of this title is in jeopardy, the Tax Commission may require the
employer to file a return and pay the tax at any time.
F. Any sum or sums withheld in accordance with the provisions of
Section 2385.2 of this title shall be deemed to be held in trust for
the State of Oklahoma, and, as trustee, the employer shall have a
fiduciary duty to the State of Oklahoma in regard to such sums and
shall be subject to the trust laws of this state.
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G. If any employer fails to withhold the tax required to be
withheld by Section 2385.2 of this title and thereafter the income
tax is paid by the employee, the tax so required to be withheld shall
not be collected from the employer but such employer shall not be
relieved from the liability for penalties or interest otherwise
applicable because of such failure to withhold the tax.
H. Every person making payments of winnings subject to
withholding shall, for each monthly period, on or before the
twentieth day of the month following the payment of such winnings pay
over to the Tax Commission the amounts so withheld, and shall file a
return, in a form as prescribed by the Tax Commission.
I. Every person making payments of winnings subject to
withholding shall furnish to each recipient on or before January 31
of the succeeding year a written statement in a form as prescribed by
the Tax Commission. Every person making such reports shall also
furnish a copy of such report to the Tax Commission in a manner and
at a time as shall be prescribed by the Tax Commission.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965. Amended
by Laws 1968, c. 200, § 1. Renumbered from § 2332 of this title by
Laws 1971, c. 137, § 32, emerg. eff. May 11, 1971. Amended by Laws
1983, c. 13, § 6, emerg. eff. March 23, 1983; Laws 1986, c. 218, §
25, emerg. eff. June 9, 1986; Laws 1990, c. 339, § 9, emerg. eff. May
31, 1990; Laws 1991, c. 342, § 24, emerg. eff. June 15, 1991; Laws
1993, c. 366, § 47, eff. Sept. 1, 1993; Laws 1998, c. 427, § 5, eff.
Jan. 1, 1999; Laws 1998, 1st Ex. Sess., c. 1, § 12, eff. Jan. 1,
1999; Laws 1999, c. 320, § 30, operative July 1, 1999; Laws 2002, c.
460, § 40, eff. Nov. 1, 2002; Laws 2003, c. 472, § 22; Laws 2005, c.
479, § 20, eff. July 1, 2006; Laws 2009, c. 426, § 12, eff. Nov. 1,
2009; Laws 2012, c. 357, § 8, eff. July 1, 2012; Laws 2014, c. 273, §
3, eff. Nov. 1, 2014; Laws 2016, c. 28, § 3, eff. July 1, 2016; Laws
2018, c. 66, § 7, eff. July 1, 2018.
§68-2385.4. Overpayments.
When an employer believes that he has made an overpayment of the
tax required to be paid under Section 2385.3, he may file an
application with the Tax Commission on a form approved by it either
to have the amount of such overpayment refunded to him or to have the
sum credited against the payment which he is required to make for a
subsequent period, but such refund or credit shall be made or allowed
to the employer only to the extent that the amount of such
overpayment was not withheld under Section 2385.2 by the employer.
Any employer aggrieved by the refusal of the Tax Commission to refund
in accordance with an application duly filed by him may pursue the
remedies provided in Article 2 of this Code, the Uniform Tax
Procedure Law.
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Added by Laws 1965, c. 530, § 2. Amended by Laws 1968, c. 200, § 2.
Renumbered from Title 68, § 2333 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
§68-2385.5. Credit as taxes paid.
The amount deducted and withheld as tax under Section 2385.2 of
this title during any calendar year shall be allowed as a credit to
the recipient of the income as income taxes paid.
Laws 1965, c. 530, § 2. Amended by Laws 1990, c. 339, § 10, emerg.
eff. May 31, 1990.
§68-2385.6. Penalty for failure to pay over or file return - Failure
to furnish statement to employee.
A. If an employer fails to file a return or to pay to the
Oklahoma Tax Commission the withholding tax within the time
prescribed by this article, there shall be imposed on him a penalty
equal to ten percent (10%) of the amount of tax, or ten percent (10%)
of the amount of the underpayment of tax, if such failure is not
corrected within fifteen (15) days after the tax becomes delinquent.
There shall also be imposed on such employer interest at the rate of
one and one-quarter percent (1 1/4%) per month during the period such
underpayment exists. For the purposes of this paragraph,
"underpayment" shall mean the excess of the amount of the tax
required to be paid over the amount thereof actually paid on or
before the date prescribed therefor. Such penalty and interest shall
be added to and become a part of the tax assessed. However, the Tax
Commission shall not collect the penalty assessed if the taxpayer
remits the tax and interest within sixty (60) days of the mailing of
a proposed assessment or voluntarily pays the tax upon the filing of
an amended return.
B. Any employer who is required under the provisions of Section
2385.3 of this title to furnish a statement to an employee, but who
willfully fails to furnish such employee the statement required by
said section, shall be guilty of a misdemeanor and upon conviction
shall be punished by a fine of not exceeding One Hundred Dollars
($100.00), or by imprisonment for not more than six (6) months in the
county jail, or by both such fine and imprisonment for each such
offense.
C. The provisions of subsections A and B of this section shall
also apply to every person making payments of winnings subject to
withholding.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2335 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971. Amended by Laws 1986, c. 218, § 26, emerg. eff.
June 9, 1986; Laws 1988, c. 87, § 3, operative July 1, 1988; Laws
1990, c. 339, § 11, emerg. eff. May 31, 1990; Laws 1998, c. 385, §
11, eff. Nov. 1, 1998; Laws 2005, c. 479, § 21, eff. July 1, 2005;
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Laws 2012, c. 357, § 9, eff. July 1, 2012; Laws 2014, c. 274, § 4,
eff. Nov. 1, 2014.
§68-2385.7. Declaration of estimated tax.
A. Except as provided in subsection B of this section, every
taxpayer, as defined by Section 2353 of this title, shall make
estimated tax payments for the taxable year if:
1. In the case of a single individual taxpayer, the tax
liability of the taxpayer can reasonably be expected to be Five
Hundred Dollars ($500.00) or more in excess of taxes to be withheld
from wages;
2. In the case of married individuals, the combined tax
liability of the married individuals can reasonably be expected to be
Five Hundred Dollars ($500.00) or more in excess of taxes to be
withheld from wages; or
3. In the case of a corporation or trust, the tax of the
corporation or trust for the taxable year can reasonably be expected
to be Five Hundred Dollars ($500.00) or more.
B. Subsection A of this section shall not apply to:
1. Estates; and
2. Any individual whose gross income from farming for the
taxable year is at least sixty-six and two-thirds percent (66 2/3%)
of the total estimated gross income from all sources for the taxable
year. However, if an individual whose gross income from farming
qualifies pursuant to the provisions of this paragraph for the
previous taxable year, the individual shall not be required to
qualify for the current taxable year. In no event shall the
qualification for the previous taxable year be carried forward for
more than one (1) year.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from § 2336 of this title by Laws 1971, c. 137, § 32,
emerg. eff. May 11, 1971. Amended by Laws 1989, c. 249, § 34, eff.
Jan. 1, 1990; Laws 1997, c. 294, § 25, eff. July 1, 1997; Laws 2000,
c. 314, § 21, eff. July 1, 2000.
§68-2385.8. Repealed by Laws 2000, c. 314, § 31, eff. July 1, 2000.
§68-2385.9. Payment of estimated tax.
A. The required annual payment of estimated tax shall be paid in
four equal installments as follows:
1. In the case of a taxpayer on a calendar year basis, the first
installment shall be paid on April 15 of the taxable year, the second
and third on June 15 and September 15, respectively, of the taxable
year and the fourth on January 15 of the succeeding taxable year.
However, if taxpayer files return and pays tax due on or before
January 31, the payment of the installment due January 15 is waived;
and
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2. In the application of this section to the case of a taxable
year beginning on any date other than January 1, there shall be
substituted, for the months specified in this section, the months
which correspond thereto.
B. As used in this section, the “required annual payment” shall
mean the lesser of:
1. Seventy percent (70%) of the tax shown on the return for the
taxable year; or
2. One hundred percent (100%) of the tax shown on the return for
the preceding taxable year of twelve (12) months.
C. For purposes of determining the amount of tax due on any of
the respective dates, taxpayers may compute the tax by placing
taxable income on an annualized basis as prescribed by rules
promulgated by the Tax Commission, which shall be in accordance with
the annualization provisions of the Internal Revenue Code. For
corporate taxpayers, the annualization provisions found in Section
6655(e)(2)(c) and 6655(e)(3) of the Internal Revenue Code may not be
used. The provisions allowed in this section for computing estimated
taxes on an annualized basis shall only be permitted for a taxable
year of twelve (12) months.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from § 2338 of this title by Laws 1971, c. 137, § 32,
emerg. eff. May 11, 1971. Amended by Laws 1989, c. 249, § 35, eff.
Jan. 1, 1990; Laws 1997, c. 294, § 26, eff. July 1, 1997; Laws 2000,
c. 314, § 22, eff. July 1, 2000.
§68-2385.10. Refunds - Filing of return as constituting claim.
In the event that the completed return of the taxpayer discloses
a refund to be due by reason of the credits for withholding and/or
estimated taxes previously paid, the filing of such tax return shall
constitute a claim for refund of the excess.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2339 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
§68-2385.11. Extensions of time for filing declarations and payment
of tax.
The Tax Commission may allow reasonable extensions of time for
the filing of declarations of estimated tax and the payment of said
tax. No extensions shall be granted for more than two (2) months,
except in the case of taxpayers who are outside the continental
limits of the United States in which case, at the discretion of the
Tax Commission, a longer period may be granted.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2340 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
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§68-2385.12. Repealed by Laws 2000, c. 314, § 31, eff. July 1, 2000.
§68-2385.13. Amount of estimate - Penalty for underestimating.
A. In the case of any underpayment of the estimated tax payment
required in Section 2385.9 of this title, there shall be added to the
amount of the underpayment interest thereon at an annual rate of
twenty percent (20%) for the period of the underpayment.
B. As used in subsection A of this section, the amount of the
underpayment shall be the excess of the required installment over the
amount paid on or before the due date of the installment. The period
of underpayment shall run from the due date of the required
installment to the earlier of the fifteenth day of the fourth month,
or for corporations, the fifteenth day of the third month, following
the close of the taxable year or the date on which the required
installment is paid.
C. No addition to tax shall be imposed under subsection A of
this section if the tax shown on the return for the taxable year is
less than One Thousand Dollars ($1,000.00) or if the taxpayer was an
Oklahoma resident throughout the preceding taxable year of twelve
(12) months and did not have any liability for tax for the preceding
taxable year.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from § 2342 of this title by Laws 1971, c. 137, § 32,
emerg. eff. May 11, 1971. Amended by Laws 1971, p. 1041, H.J.R. No.
1026, § 4, emerg. eff. June 22, 1971; Laws 1972, c. 252, § 5, emerg.
eff. April 7, 1972; Laws 1986, c. 218, § 27, emerg. eff. June 9,
1986; Laws 1988, c. 87, § 4, operative July 1, 1988; Laws 1996, c.
42, § 1, eff. July 1, 1996; Laws 2000, c. 314, § 23, eff. July 1,
2000.
§68-2385.14. Taxes as payment on account.
All taxes deducted and withheld by an employer pursuant to
Section 2385.2 and all taxes paid to the Tax Commission by taxpayers
hereunder shall be deemed and credited as payments on account of the
tax levied on income for the taxable year.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2343 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
§68-2385.15. Administration.
The administration of the provisions of Sections 2385.1 through
2385.19, inclusive, is vested in the Tax Commission. All forms
necessary and proper for the enforcement of such provisions shall be
prescribed and furnished by the Tax Commission, and the Tax
Commission may promulgate rules and regulations to enforce such
provisions, if not inconsistent with such provisions, as may be
reasonably necessary to make practical the administration thereof,
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including the use of a bracket or tables closely approximating the
amount required to be withheld under the provisions of Section
2385.2. In cases where employers have difficulty in determining the
exact amount of wages earned by employees in this State, the Tax
Commission may enter into an agreement with such employers as may be
deemed most practical.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2344 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
§68-2385.16. Deposit of payments - Refunds - Method of refunds.
A. All payments received by the Oklahoma Tax Commission
transmitted by employers for taxes withheld from employees and all
payments received by the Tax Commission from taxpayers as herein
provided shall be deposited with the State Treasurer in the Tax
Commission’s Official Depository Clearing Account and be designated
Income Tax Withholding Funds. These funds shall be under the
exclusive control of the Tax Commission. The Tax Commission is
empowered and directed each month to transfer the amount thereof
which the Tax Commission estimates to be necessary to make tax
refunds to a separate account designated as the Income Tax
Withholding Refund Account, and to make apportionments from such
funds remaining in said Official Depository Clearing Account, of the
amount it considers available for distribution as income taxes
collected. The Tax Commission shall maintain a balance in the refund
account sufficient to cover anticipated tax refunds.
All warrants drawn against such refund account as provided in the
preceding subsection which are not presented for payment within
ninety (90) days of issuance thereof shall be void.
Persons entitled to refunds of monies represented by warrants
which are not presented for payment within ninety (90) days from the
date of issuance thereof may file claims for refund at any time
within three (3) years from the due date of the return. Such claims
shall be filed and paid under the provisions of Section 2373 of this
Code, and if allowed shall be paid under the provisions of such
section. An income tax refund warrant which was not presented for
payment within ninety (90) days from the date of issuance or reissued
for a like amount up to three (3) years from the date of issuance of
the original warrant shall be subject to reporting and remittance to
the Oklahoma State Treasurer pursuant to the Uniform Unclaimed
Property Act.
B. Neither the Tax Commission nor any member or employee thereof
shall be held personally liable for making any refund by reason of a
fraudulent withholding certificate being used as a basis for such
refund.
C. The Oklahoma Tax Commission may use a direct deposit system
and card-based disbursement system in lieu of checks or warrants for
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the purposes of issuing refunds for overpayment of individual income
taxes. Notwithstanding the provisions of Section 205 of this title,
the Tax Commission may enter into a contract with, and release
taxpayer information to, entities deemed to be qualified by the Tax
Commission to implement the card-based disbursement system. The Tax
Commission shall not release to any entity contracted with pursuant
to this section the full social security number of taxpayers opting
to receive a refund through the card-based disbursement system.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2345 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971. Amended by Laws 1985, c. 15, § 3, emerg. eff.
April 11, 1985; Laws 1988, c. 204, § 15, operative July 1, 1988; Laws
1992, c. 28, § 1, emerg. eff. April 2, 1992; Laws 2004, c. 535, § 14,
eff. Nov. 1, 2004; Laws 2011, c. 364, § 4.
§68-2385.17. Refund - Credit against estimated income tax -
Necessity for withholding certificate - Effect of refund.
Any amount withheld or paid by estimate in excess of the amount
due shown by a return filed by any employee shall be refunded to said
employee. The Tax Commission shall prescribe regulations providing
for the crediting against the estimated income tax for any taxable
year of the amount determined by the taxpayer or Tax Commission to be
an overpayment of the income tax for a preceding taxable year. In
order to obtain a credit against the tax due or a refund, said
employee shall attach to his return a legible copy of the withholding
certificate required to be furnished to said employee by his
employer, as provided for by Section 2385.3 of this title. The Tax
Commission may delay making any refund until such time as the claim
may be verified by audit, or if the employee is delinquent in the
filing of prior returns. The making of any refund shall not be a
conclusive finding of the tax due by any individual but shall be made
subject to the future audit of his return and the determination of
his liability.
Amended by Laws 1983, c. 275, § 12, emerg. eff. June 24, 1983; Laws
1986, c. 218, § 28, emerg. eff. June 9, 1986.
§68-2385.18. Procedures and remedies.
In administering the withholding tax required by the foregoing
provisions, except when specific provisions require otherwise, the
Tax Commission shall follow other provisions of this Article, insofar
as the same can be followed and applied, and it is specifically
provided that in all other instances the procedures and remedies
contained in Article 2 of this Code, in connection with the making of
assessments and the enforcement and collection thereof, the penalties
and interest to be applied, all lien and tax warrant provisions, all
incidental remedies including proceedings for an injunction, and any
and all other provisions contained in Article 2 which may be applied
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or used to enforce the provisions hereof, shall be available and
applicable to the same extent as if same were made a part hereof.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2347 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
§68-2385.19. Agreement with Treasury Secretary of United States.
The Tax Commission is hereby authorized and directed to make an
agreement with the Secretary of the Treasury of the United States
with respect to withholding of income tax as provided by this
Article, pursuant to an Act of Congress, 66 Stat. 765, Ch. 940; Pub.
L. 587; 5 USCA Sections 84b, 84c, July 17, 1952, and Executive Order
No. 10407, 17 F.R. 10132, November 7, 1952.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2348 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
§68-2385.20. Lists of persons filing tax returns.
Notwithstanding the provisions of a section of the Uniform Tax
Procedure Act, as same now exists or as same may hereafter be
amended, making the records and files of the Oklahoma Tax Commission
relating to all state tax laws privileged and confidential, the
Oklahoma Tax Commission shall as soon as practicable in each year
cause to be prepared and made available to the public inspection in
the offices of the Oklahoma Tax Commission in Oklahoma City,
Oklahoma, in such manner as it may determine, lists containing the
name and post-office address of each person, whether individual,
corporate or otherwise, making and filing an income tax return with
the Oklahoma Tax Commission.
It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Oklahoma Tax
Commission or any employee thereof, for any error or omission of any
name or address, in the preparation and publication of said list.
It is further provided that the provisions of this Act shall be
strictly interpreted and shall not be construed as permitting the
disclosure of any other information contained in the records and
files of the Tax Commission relating to income tax or to any other
taxes.
Added by Laws 1965, c. 530, § 2, emerg. eff. July 24, 1965.
Renumbered from Title 68, § 2349 by Laws 1971, c. 137, § 32, emerg.
eff. May 11, 1971.
§68-2385.23. Employer's surety bond.
A. The Oklahoma Tax Commission may require every employer who is
delinquent or becomes delinquent in the withholding and remitting of
taxes as required by the provisions of Sections 2385.1 through
2385.22 of Title 68 of the Oklahoma Statutes to furnish to the Tax
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Commission a bond from a surety company chartered or authorized to do
business in this state, cash bond, certificates of deposits,
certificates of savings or U.S. Treasury bonds, or an assignment of
negotiable stocks or bonds, as the Tax Commission may deem necessary
to secure the withholding and remitting of taxes levied pursuant to
the Oklahoma Income Tax Act.
B. Any surety bond furnished pursuant to this section shall be a
continuing instrument and shall constitute a new and separate
obligation in the sum stated therein for each calendar year or a
portion thereof while such bond is in force. Such bond shall remain
in effect until the surety or sureties are released and discharged by
the Tax Commission.
C. The Tax Commission shall fix the amount of such bond or other
security required in each case after considering the estimated tax
liability of such employer. Such bond shall not be greater than an
amount equal to three times the amount of the average quarterly tax
liability of such employer. Any bond or security shall be such as
will protect this state against failure of an employer to withhold
and remit the taxes levied pursuant to the Oklahoma Income Tax Act.
Added by Laws 1986, c. 218, § 29, emerg. eff. June 9, 1986.
§68-2385.24. State, county and municipal retirement systems -
Withholding.
Beginning July 1, 1989, all state and county retirement systems
whose benefits were exempt from state income taxation prior to
January 1, 1989, and all municipal retirement systems whose benefits
were subject to state income taxation prior to January 1, 1989, shall
begin to withhold monies, as required by Sections 2385.1 et seq. of
this title, for state income tax purposes from the benefits paid to
each member of the retirement systems, unless the member requests the
retirement system not to withhold monies for state income tax
purposes.
Added by Laws 1989, c. 249, § 40, emerg. eff. May 19, 1989.
§68-2385.25. Definitions.
As used in this section through Section 2385.28 of this title:
1. “Oil” and “gas” shall be defined as such terms are defined in
Section 1001.2 of this title;
2. “Remitter” means any person who distributes revenue to
royalty interest owners; and
3. “Royalty interest owner” means any person who retains a non-
working interest in oil or gas production.
Added by Laws 2000, c. 315, § 6, eff. Oct. 1, 2000. Amended by Laws
2001, c. 402, § 3, eff. July 1, 2001.
§68-2385.26. Royalty interest owner - Withholding and deducting -
Exceptions.
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A. Each remitter, except as otherwise provided in subsection B
of this section, shall deduct and withhold from each payment being
made to any royalty interest owner in respect to production of oil
and gas in this state, but not including that to which the remitter
is entitled, an amount equal to five percent (5%) of the gross amount
which would have otherwise been payable to the person entitled to the
payment.
B. The obligation to deduct and withhold from payments as
provided in subsection A of this section does not apply to those
payments which are made to:
1. Current or permanent residents of Oklahoma;
2. The United States, this state or any state or federal agency
or political subdivision;
3. Any charitable institution;
4. Any federally recognized Indian tribe; or
5. A publicly-traded partnership as defined by Section 7704 (b)
of the Internal Revenue Code, 26 U.S. Code 7704 (b), that is treated
as a partnership for federal tax purposes under Section 7704 (c) of
the Internal Revenue Code, 26 U.S. Code 7704 (c), or its publicly-
traded partnership affiliates. As used in this paragraph, "publicly-
traded partnership affiliates" shall include any limited liability
company or limited partnership for which at least eighty percent
(80%) of the limited liability member interests or limited
partnership interests of which are owned directly or indirectly by
the publicly-traded partnership.
The obligation to deduct and withhold from payments as provided
in subsection A of this section does not apply if the remitter and
the royalty interest owner are the same person.
C. Any royalty interest owner from whom an amount is withheld
pursuant to the provisions of subsection A of this section, or if the
royalty interest owner is not liable to the State of Oklahoma for
income taxes, any person to whom a royalty interest owner
subsequently distributes royalty payments with respect to which an
amount is withheld pursuant to the provisions of subsection A of this
section, and who files an income tax return with this state is
entitled to a credit against the tax as shown on the return for the
amount withheld by the remitter under subsection A of this section.
If the amount withheld is greater than the tax due on the return, the
person filing the return shall be entitled to a refund in the amount
of the overpayment.
Added by Laws 2000, c. 315, § 7, eff. Oct. 1, 2000. Amended by Laws
2001, c. 402, § 4, eff. July 1, 2001; Laws 2006, c. 327, § 7, eff.
July 1, 2006; Laws 2017, c. 78, § 1, eff. Nov. 1, 2017.
§68-2385.27. Payments - Due dates - Returns
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A. Any remitter required to deduct and withhold any amount under
Section 7 of this act shall pay to the Oklahoma Tax Commission the
amounts required to be deducted and withheld as follows:
1. For payments made to royalty interest owners during the
months of January, February and March, the withholding amounts shall
be due on or before April 30;
2. For payments made to royalty interest owners during the
months of April, May and June, the withholding amounts shall be due
on or before July 30;
3. For payments made to royalty interest owners during the
months of July, August and September, the withholding amounts shall
be due on or before October 30; and
4. For payments made to royalty interest owners during the
months of October, November and December, the withholding amounts
shall be due on or before January 30 of the succeeding calendar year.
B. The remitter shall file a return with each payment to the Tax
Commission. The return, in a form prescribed by the Tax Commission,
shall show the amount of total royalty payments made subject to
withholding under Section 7 of this act and the amount of the payment
withheld.
C. Every remitter required under Section 7 of this act to deduct
and withhold an amount from payments made during a calendar year
shall furnish by January 31 of the succeeding year to the person to
whom such payment was made and to the Tax Commission a written
statement showing the name of the remitter, the name of the recipient
of the royalty payment, the recipient’s social security number or
federal identification number, the amount of royalty payments made,
the amounts withheld, and any such other information as the Tax
Commission may require.
D. If the Tax Commission, in any case, has justifiable reason to
believe that the collection of the amount provided for in Section 7
of this act is in jeopardy, the Tax Commission may require a remitter
to file a return and pay the withheld amounts at any time.
E. All amounts received by the Tax Commission pursuant to the
provisions of Sections 6 through 9 of this act shall be deposited as
provided in Section 2385.16 of Title 68 of the Oklahoma Statutes.
Except as otherwise provided in Sections 6 through 9 of this act,
such amounts shall be treated as other amounts withheld under the
provisions of Section 2385.1 of Title 68 of the Oklahoma Statutes.
Added by Laws 2000, c. 315, § 8, eff. Oct. 1, 2000.
§68-2385.28. Remitters - Fiduciary duty - Penalties.
A. Any amounts withheld in accordance with the provisions of
Section 2385.26 of this title shall be deemed to be held in trust for
the State of Oklahoma, and, as trustee, the remitter shall have a
fiduciary duty to the State of Oklahoma in regard to such amounts and
shall be subject to the trust laws of this state. Any remitter who
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fails to pay to the Tax Commission any amounts required to be
withheld by such remitter, after such amounts have been withheld from
oil or gas royalty payments, and appropriates the amount held in
trust to the remitter’s own use, or to the use of any person not
entitled thereto, without authority of law, shall be guilty of
embezzlement.
B. If any remitter fails to withhold the amounts required to be
withheld by Section 2385.26 of this title and thereafter income tax
is paid by the recipient of the oil or gas production payment with
respect to such payment, the amount so required to be withheld shall
not be collected from the remitter but such remitter shall not be
relieved from the liability for penalties or interest otherwise
applicable because of such failure to withhold such amount.
C. If a remitter fails to file a return or to pay to the Tax
Commission the amounts withheld within the time prescribed by
Sections 2385.25 through 2385.28 of this title, there shall be
imposed on the remitter a penalty equal to ten percent (10%) of the
amount required to be withheld, or ten percent (10%) of the amount of
the underpayment of the amount required to be withheld, if such
failure is not corrected within fifteen (15) days after the tax
becomes delinquent. There shall also be imposed on such remitter
interest at the rate of one and one-quarter percent (1 1/4%) per
month during the period such underpayment exists. For the purposes
of this subsection, "underpayment" shall mean the excess of the
amount required to be paid over the amount thereof actually paid on
or before the date prescribed therefor. Such penalty and interest
shall be added to and become a part of the amount assessed. However,
the Tax Commission shall not collect the penalty assessed if the
remitter remits the amount required to be withheld within thirty (30)
days of the mailing of a proposed assessment or voluntarily pays such
amount upon the filing of an amended return.
D. Any remitter who is required under the provisions of
subsection C of Section 2385.27 of this title to furnish a statement
to a recipient of oil or gas royalty payment, but who willfully fails
to furnish such recipient the statement, shall be punished by an
administrative fine not exceeding One Thousand Dollars ($1,000.00).
Added by Laws 2000, c. 315, § 9, eff. Oct. 1, 2000. Amended by Laws
2012, c. 357, § 10, eff. July 1, 2012.
§68-2385.29. Pass-through entities – Definitions.
As used in Sections 23 through 25 of this act:
1. “Member” means any person who is a shareholder of an S
Corporation, a partner in a general partnership, a limited
partnership, or limited liability partnership, a member of a limited
liability company, or a beneficiary of a trust;
2. “Nonresident” means an individual who is not a resident of or
domiciled in this state, a business entity that does not have its
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commercial domicile in this state, or a trust not organized in this
state; and
3. “Pass-through entity” means a corporation that for the
applicable tax years is treated as an S Corporation under the
Internal Revenue Code, general partnership, limited partnership,
limited liability partnership, trust, or limited liability company
that for the applicable tax year is not taxed as a corporation for
federal income tax purposes.
Added by Laws 2003, c. 472, § 23.
§68-2385.30. Withholding by pass-through entities – Returns –
Quarterly estimated payments – Written statement of taxable income
upon which withholding was based and tax withheld.
A. A pass-through entity shall withhold income tax at the rate
of five percent (5%) from a nonresident member’s share of the
Oklahoma share of income of the entity distributed to each
nonresident member and pay the withheld amount on or before the due
date of the pass-through entity’s income tax return, including
extensions.
The pass-through entity shall file a return with each payment to
the Oklahoma Tax Commission. The return, in a form prescribed by the
Tax Commission, shall show the amount of the Oklahoma taxable income
upon which withholding was based and the amount withheld.
B. A pass-through entity may make quarterly estimated payments
for the taxable year and a pass-through entity shall be required to
make quarterly estimated payments for the taxable year if the amount
that must be withheld from all nonresident members for the taxable
year can reasonably be expected to exceed Five Hundred Dollars
($500.00). The estimated tax payments shall be paid in equal
quarterly installments on or before the last day of the month
succeeding the calendar quarter. The total of quarterly estimated
payments required to be paid by a pass-through entity for the taxable
year shall be the lesser of:
1. Seventy percent (70%) of the withholding tax that must be
withheld from all its nonresident members for the taxable year; or
2. One hundred percent (100%) of the withholding tax that had to
be withheld from all of its nonresident members for the preceding
taxable year.
The provisions of this subsection shall not relieve a pass-
through entity from the requirement of remitting amounts to the Tax
Commission that were actually withheld from distributions.
C. The amount of income tax withheld shall be allowed as a
credit to the recipient of the income as income taxes paid.
D. A pass-through entity shall not be required to withhold
income tax from an entity exempt pursuant to subsection C of Section
2359 of this title or Section 501(c)(3) of the Internal Revenue Code,
26 U.S.C., Section 501(c)(3).
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E. Every pass-through entity required pursuant to this section
to withhold income tax shall furnish to its nonresident member and to
the Tax Commission annually, but not later than the due date of the
pass-through entity’s income tax return for the taxable year
including extensions, a written statement of the amount of taxable
income upon which withholding was based and of the tax withheld on
behalf of the nonresident member on forms prescribed by the Tax
Commission. The written statement shall show the name of member, the
applicable social security number or federal identification number,
the amount of the nonresident member’s share of Oklahoma taxable
income upon which withholding was based, the amounts withheld, and
any such information as may be required by the Tax Commission.
F. If the Tax Commission, in any case, has justifiable reason to
believe that the collection of the amount required in subsection A of
this section is in jeopardy, the Tax Commission may require a pass-
through entity to file a return and pay the withheld amounts at any
time.
G. All amounts received by the Tax Commission pursuant to the
provisions of Sections 2385.29 through 2385.31 of this title shall be
deposited as provided by Section 2385.16 of this title.
H. Notwithstanding the provisions of subsection A of this
section, a pass-through entity is not required to withhold tax for a
nonresident member if:
1. The Tax Commission has determined, by rule, that the income
of the nonresident member is not subject to withholding;
2. The nonresident member files an affidavit with the Tax
Commission, in the form and manner prescribed by the Tax Commission,
whereby such nonresident member agrees to be subject to the personal
jurisdiction of the Tax Commission in the courts of this state for
the purpose of determining and collecting any Oklahoma taxes,
including estimated tax payments, together with any related interest
and penalties. The Tax Commission may revoke an exemption granted by
this subsection at any time it determines that the nonresident member
is not abiding by the terms of the affidavit; or
3. The entity is a publicly traded partnership, as defined by
Section 7704(b) of the Internal Revenue Code, which is treated as a
partnership for the purposes of the Internal Revenue Code, and which
has agreed to file an annual information return reporting the name,
address, taxpayer identification number and other information
requested by the Tax Commission of each unitholder with an income in
the state in excess of Five Hundred Dollars ($500.00).
Added by Laws 2003, c. 472, § 24. Amended by Laws 2004, c. 356, § 1,
eff. July 1, 2004; Laws 2004, c. 518, § 4, eff. July 1, 2004.
§68-2385.31. Amounts withheld by pass-through entities – Fiduciary
duty to state – Failure to withhold, file return, pay required
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amounts, or furnish statement – Liability for penalties and interest
– Fine.
A. Any amounts withheld in accordance with the provisions of
Section 2385.30 of this title shall be deemed to be held in trust for
the State of Oklahoma, and, as trustee, the pass-through entity shall
have a fiduciary duty to the State of Oklahoma in regard to such
amounts and shall be subject to the trust laws of this state. Any
pass-through entity who fails to pay to the Tax Commission any
amounts required to be withheld by such pass-through entity, after
such amounts have been withheld from distributions to nonresident
members, and appropriates the amount held in trust to the pass-
through entity's own use, or to the use of any person not entitled
thereto, without authority of law, shall be guilty of embezzlement.
B. If any pass-through entity fails to withhold or pay required
estimated payments of the amounts required to be withheld by Section
2385.30 of this title and thereafter income tax is paid by the
nonresident member with respect to such payment, the amount so
required to be withheld shall not be collected from the pass-through
entity, but such pass-through entity shall not be relieved from the
liability for penalties or interest otherwise applicable because of
such failure to withhold or pay such amount.
C. If a pass-through entity fails to file a return or to pay to
the Tax Commission the amounts withheld or any estimated payment
required within the time prescribed by Section 2385.30 of this title,
there shall be imposed on the pass-through entity a penalty equal to
ten percent (10%) of the amount required to be withheld or paid, or
ten percent (10%) of the amount of the underpayment of the amount
required to be withheld or paid, if such failure is not corrected
within fifteen (15) days after the tax becomes delinquent. There
shall also be imposed on such pass-through entity interest at the
rate of one and one-fourth percent (1 1/4%) per month during the
period such underpayment exists. For the purposes of this
subsection, "underpayment" shall mean the excess of the amount
required to be paid over the amount thereof actually paid on or
before the date prescribed therefor. Such penalty and interest shall
be added to and become a part of the amount assessed. However, the
Tax Commission shall not collect the penalty assessed if the pass-
through entity remits the amount required to be withheld within
thirty (30) days of the mailing of a proposed assessment or
voluntarily pays such amount upon the filing of an amended return.
D. Any pass-through entity who is required under the provisions
of subsection E of Section 2385.30 of this title to furnish a
statement to a nonresident member, but who willfully fails to furnish
such recipient the statement, shall be punished by an administrative
fine not exceeding One Thousand Dollars ($1,000.00).
Added by Laws 2003, c. 472, § 25. Amended by Laws 2004, c. 518, § 5,
eff. July 1, 2004; Laws 2012, c. 357, § 11, eff. July 1, 2012.
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§68-2385.32. Failure of individual independent contractors to
provide verification of employment authorization - Withholding at top
marginal rate.
A. If an individual independent contractor, contracting for the
physical performance of services in this state, fails to provide to
the contracting entity documentation to verify the independent
contractor's employment authorization, pursuant to the prohibition
against the use of unauthorized alien labor through contract set
forth in 8 U.S.C., Section 1324a(a)(4), the contracting entity shall
be required to withhold state income tax at the top marginal income
tax rate as provided in Section 2355 of Title 68 of the Oklahoma
Statutes as applied to compensation paid to such individual for the
performance of such services within this state which exceeds the
minimum amount of compensation the contracting entity is required to
report as income on United States Internal Revenue Service Form 1099.
B. Any contracting entity who fails to comply with the
withholding requirements of this subsection shall be liable for the
taxes required to have been withheld unless such contracting entity
is exempt from federal withholding with respect to such individual
pursuant to a properly filed Internal Revenue Service Form 8233 or
its equivalent.
C. Nothing in this section is intended to create, or should be
construed as creating, an employer-employee relationship between a
contracting entity and an individual independent contractor.
Added by Laws 2007, c. 112, § 9, eff. Nov. 1, 2007.
§68-2386. Printing - Printing-related activities - Distribution of
printed materials - Exemptions.
The following activities, either singularly or in the aggregate,
with respect to any person that is not otherwise subject to income
taxation in the State of Oklahoma, that has contracted with a
commercial printer in this state for any printing, including but not
limited to printing-related activities and distribution of printed
materials, to be performed in Oklahoma, shall not subject that person
to the income tax laws of this state:
1. The ownership by that person of tangible or intangible
property located at the Oklahoma premises of the commercial printer
for use by the printer in performing its services for the owner;
2. The periodic presence of employees of that person at the
Oklahoma premises of the commercial printer which is directly related
to the services provided by that commercial printer; or
3. The printing, including printing-related activities and
distribution of printed materials, performed by the commercial
printer in Oklahoma for or on behalf of that person.
Added by Laws 2001, c. 15, § 3, emerg. eff. April 2, 2001.
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§68-2391. Short title - Oklahoma Tourism Development Act.
This act shall be known and may be cited as the "Oklahoma Tourism
Development Act".
Added by Laws 2017, c. 196, § 1, eff. Nov. 1, 2017.
§68-2392. Legislative findings and purpose.
The Legislature hereby finds:
1. That the general welfare and material well-being of the
citizens of the State of Oklahoma depend, in large measure, upon the
development of tourism attractions in this state;
2. That it is in the best interests of the citizens of this
state to induce the creation of new or the expansion of existing
tourism attractions within this state in order to advance the public
purposes of relieving unemployment by preserving and creating jobs
that would not exist if not for the inducements to be offered by this
state to approved companies, and by preserving and creating sources
of tax revenues for the support of public services provided by this
state;
3. That the authority prescribed by this act, and the purposes
to be accomplished under the provisions of this act, are proper
governmental and public purposes for which public funds may be
expended; and
4. That the inducement of the creation or expansion of tourism
attraction projects is of paramount importance, mandating that the
provisions of this act be liberally construed and applied in order to
advance public purposes.
Added by Laws 2017, c. 196, § 2, eff. Nov. 1, 2017.
§68-2393. Definitions.
As used in the Oklahoma Tourism Development Act:
1. "Agreement" means an agreement entered into pursuant to
Section 2396 of this title, by and between the Executive Director of
the Oklahoma Tourism and Recreation Department and an approved
company, with respect to a tourism attraction project;
2. "Approved company" means any eligible company or companies
seeking to undertake a tourism attraction project and is approved by
the Executive Director pursuant to Sections 2395 and 2396 of this
title;
3. "Approved costs" means:
a. obligations incurred for labor and to vendors,
contractors, subcontractors, builders and suppliers in
connection with the acquisition, construction,
equipping and installation of a tourism attraction
project,
b. the costs of acquiring real property or rights in real
property in connection with a tourism attraction
project, and any costs incidental thereto,
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c. the costs of contract bonds and of insurance of all
kinds that may be required or necessary during the
course of the acquisition, construction, equipping and
installation of a tourism attraction project which are
not paid by the vendor, supplier or contractor, or
otherwise provided,
d. all costs of architectural and engineering services
including, but not limited to, estimates, plans and
specifications, preliminary investigations, and
supervision of construction and installation, as well
as for the performance of all the duties required by or
consequent to the acquisition, construction, equipping
and installation of a tourism attraction project,
e. all costs required to be paid under the terms of any
contract for the acquisition, construction, equipping
and installation of a tourism attraction project,
f. all costs required for the installation of utilities in
connection with a tourism attraction project including,
but not limited to, water, sewer, sewage treatment,
gas, electricity and communications, and including off-
site construction of utility extensions paid for by the
approved company, and
g. all other costs comparable with those described in this
paragraph;
4. "Director" means the Executive Director of the Oklahoma
Tourism and Recreation Department or the Executive Director's
designated representative;
5. "Eligible company" means any corporation, limited liability
company, partnership, sole proprietorship, business trust or any
other entity, operating or intending to operate a tourism attraction
project, whether owned or leased, within this state that meets the
standards promulgated by the Executive Director pursuant to Section
2394 of this title and, with respect to an Entertainment District,
shall also include any such entity that will acquire, construct,
develop, equip, install, expand or operate all or any portion of the
Entertainment District, whether owned or leased;
6. "Entertainment District" means a mixed-use planned
development project, with approved costs of One Million Dollars
($1,000,000.00) or more in the aggregate, encompassing more than one
hundred thousand (100,000) square feet and including an entertainment
or recreational component and at least three of the following
categories: (a) retail; (b) housing; (c) office; (d) restaurants; (e)
hotel, regardless of whether the hotel is a destination hotel; (f)
grocery; (g) brewery facilities for a small brewer (as defined in the
Oklahoma Alcoholic Beverage Control Act, Section 1-103 of Title 37A
of the Oklahoma Statutes); or (h) structured parking. An
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Entertainment District may include a project that is anticipated to
be completed in multiple phases;
7. "Entertainment District Tenant Party" means any corporation,
limited liability company, partnership, sole proprietorship, business
trust or any other entity operating within a tourism attraction
project that is an Entertainment District pursuant to a lease or
similar agreement with an approved company or otherwise;
8. "Final approval" means the action taken by the Executive
Director authorizing the eligible company to receive inducements
under Section 2397 of this title;
9. "Increased state sales tax liability" means that portion of
an entity's reported state sales tax liability resulting from taxable
sales of goods and services to its customers at the tourism
attraction which exceeds the reported state sales tax liability for
sales to its customers at the tourism attraction for the same month
in the calendar year immediately preceding the certification as an
approved company or an Entertainment District Tenant Party, as
applicable;
10. "Inducements" means the sales tax credit or incentive
payment as prescribed in Section 2397 of this title;
11. "Preliminary approval" means the action taken by the
Executive Director conditioned upon final approval by the Executive
Director upon satisfaction by the eligible company of the
requirements of this act;
12. a. "Tourism attraction" means:
(1) a cultural or historical site,
(2) a recreational or entertainment facility,
(3) an area of natural phenomena or scenic beauty,
(4) a theme park,
(5) an amusement or entertainment park,
(6) an indoor or outdoor play or music show,
(7) a botanical garden,
(8) a cultural or educational center,
(9) a destination hotel whose location and amenities,
including but not limited to upscale dining,
recreation and entertainment, make the hotel
itself a destination for tourists, or
(10) an Entertainment District.
b. A tourism attraction shall not include:
(1) lodging facilities, unless:
(a) the facilities constitute a portion of a
tourism attraction project and represent less
than fifty percent (50%) of the total
approved costs of the tourism attraction
project, or
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(b) the lodging facilities are a part of a
destination hotel or an Entertainment
District,
(2) facilities that are primarily devoted to the
retail sale of goods, unless:
(a) the goods are created at the site of the
tourism attraction project, or
(b) if the sale of goods is incidental to the
tourism attraction project, or
(c) such facilities are a part of an
Entertainment District,
(3) facilities that are not open to the general
public, unless such facilities are a part of an
Entertainment District wherein a substantial
portion of the Entertainment District is open to
the general public, as determined by the Executive
Director,
(4) facilities that do not serve as a likely
destination where individuals who are not
residents of this state would remain overnight in
commercial lodging at or near the tourism
attraction project, unless such facilities are a
part of an Entertainment District,
(5) facilities owned by the State of Oklahoma or a
political subdivision of this state, or
(6) facilities established for the purpose of
conducting legalized gambling. However, a
facility regulated under the Oklahoma Horse Racing
Act, Sections 200 through 209 of Title 3A of the
Oklahoma Statutes, shall be a tourism attraction
for purposes of this act for any approved project
as outlined in subparagraph a of this paragraph or
for an approved project relating to pari-mutuel
racing at the facility and not for establishing a
casino or for offering casino-style gambling; and
13. "Tourism attraction project" or "project" means:
a. the acquisition, including the acquisition of real
estate by leasehold interest with a minimum term of ten
(10) years, construction and equipping of a tourism
attraction, and
b. the construction and installation of improvements to
facilities necessary or desirable for the acquisition,
construction and installation of a tourism attraction,
including, but not limited to:
(1) surveys, and
(2) installation of utilities, which may include:
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(a) water, sewer, sewage treatment, gas,
electricity, communications and similar
facilities, and
(b) off-site construction of utility extensions
to the boundaries of the real estate on which
the facilities are located, all of which
shall be used to improve the economic
situation of the approved company in a manner
that shall allow the approved company to
attract tourists.
Added by Laws 2017, c. 196, § 3, eff. Nov. 1, 2017. Amended by Laws
2019, c. 443, § 1, eff. Nov. 1, 2019.
§68-2394. Inducements for tourism attraction projects - Criteria -
Consultant's report.
A. The Executive Director of the Oklahoma Tourism and Recreation
Department, with approval of the Oklahoma Tourism and Recreation
Commission, shall establish standards for the making of applications
for inducements to eligible companies and their tourism attraction
projects by the promulgation of rules in accordance with the
Administrative Procedures Act.
B. With respect to each eligible company making an application
to the Executive Director for inducements, and with respect to the
tourism attraction described in the application, the Executive
Director shall make inquiries and request materials of the applicant
that shall include, but shall not be limited to:
1. Marketing plans for the project that target individuals who
are not residents of this state;
2. A description and location of the project, including a
description and boundary of the area encompassing the Entertainment
District, if applicable;
3. Capital and other anticipated expenditures for the project
that indicate that the total cost of the project shall exceed the
minimum amount set forth in subsection C of this section and the
anticipated sources of funding therefor, which for an Entertainment
District that is anticipated to be completed in multiple phases may
include capital and other anticipated expenditures for all phases of
the project;
4. The anticipated employment and wages to be paid at the
project, which may include employment and wages to be paid by the
eligible company and any tenants of the tourism attraction project;
5. Business plans which indicate the average number of days in a
year in which the project or any component thereof will be in
operation and open to the public, if applicable; and
6. The anticipated revenues and expenses generated by the
project, which for an Entertainment District may include the
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anticipated revenues and expenses generated by each of the different
phases or components of the Entertainment District.
Based upon a review of these materials, if the Executive Director
determines that the eligible company and the tourism attraction may
reasonably be expected to satisfy the criteria for final approval in
subsection C of this section, then the Executive Director may
consider granting a preliminary approval of the eligible company and
the tourism attraction project pursuant to subsection B of Section
2395 of this title.
C. For a tourism attraction project, after granting a
preliminary approval, the Executive Director shall engage the
services of a competent consulting firm which shall submit to the
Executive Director a report analyzing the data made available by the
eligible company and which shall collect and analyze additional
information necessary to determine that, in the independent judgment
of the consultant, the tourism attraction project will:
1. Attract at least twenty-five percent (25%) of its visitors
from among persons who are not residents of this state;
2. Have costs in excess of Five Hundred Thousand Dollars
($500,000.00);
3. Have a significant and positive economic impact on this state
considering, among other factors, the extent to which the tourism
attraction project will compete directly with existing tourism
attractions in this state, and the extent to which the tourism
attraction project will be revenue-neutral to the State of Oklahoma,
meaning the amount by which increased tax revenues from the tourism
attraction project will exceed the inducements allowed pursuant to
Section 2397 of this title;
4. Produce sufficient revenues and public demand to be operating
and open to the public on a regular and persistent basis; and
5. Not adversely affect existing employment in this state.
D. For a tourism attraction project that is an Entertainment
District and is anticipated to be completed in multiple phases, the
consulting firm's report may include the data and information for the
entire Entertainment District including any and all components or
phases of the Entertainment District and a separate report for each
component or phase of the Entertainment District shall not be
required.
E. The eligible company shall pay for the cost of the
consultant's report and shall cooperate with the consultant and
provide all of the data that the consultant deems necessary to make a
determination pursuant to this section.
Added by Laws 2017, c. 196, § 4, eff. Nov. 1, 2017. Amended by Laws
2019, c. 443, § 2, eff. Nov. 1, 2019.
§68-2395. Preliminary and final approval of projects.
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A. The Executive Director of the Oklahoma Tourism and Recreation
Department, with the approval of the Oklahoma Tourism and Recreation
Commission, shall establish standards for preliminary approval and
final approval of eligible companies and their projects by the
promulgation of rules in accordance with the Administrative
Procedures Act.
B. The Executive Director may give preliminary approval by
designating an eligible company as a preliminarily approved company
and preliminarily authorizing the undertaking of the tourism
attraction project.
C. The Executive Director shall review the report of the
consultant prepared pursuant to subsection C of Section 2394 of this
title and other information that has been made available to the
Executive Director in order to assist the Executive Director in
determining whether the tourism attraction project will further the
purposes of this act.
D. The criteria for final approval of eligible companies and
tourism attraction projects shall include, but shall not be limited
to, the criteria set forth in subsection C of Section 2394 of this
title.
E. After a review of the relevant materials, the consultant's
report, other information made available to the Executive Director,
and completion of other inquiries, the Executive Director may give
final approval to the eligible company's application for a tourism
attraction project and may grant to the eligible company the status
of an approved company. The decision reached by the Executive
Director may be appealed by the eligible company to the Tourism and
Recreation Commission. The decision of the Tourism and Recreation
Commission shall constitute the final administrative decision of the
Oklahoma Tourism and Recreation Department.
Added by Laws 2017, c. 196, § 5, eff. Nov. 1, 2017. Amended by Laws
2019, c. 443, § 3, eff. Nov. 1, 2019.
§68-2396. Approved projects - Agreement terms and provisions.
A. Upon granting final approval, the Executive Director of the
Oklahoma Tourism and Recreation Department may enter into an
agreement with an approved company with respect to its tourism
attraction project. The terms and provisions of each agreement shall
include, but shall not be limited to:
1. The amount of approved costs, which shall be determined by
negotiations between the Executive Director and the approved company;
2. A date certain by which the approved company shall have
completed the tourism attraction project or an individual component
or phase of the project if the tourism attraction project is an
Entertainment District. Within three (3) months of the completion
date of the whole or an individual component or phase of the project,
the approved company shall document its actual costs of the project
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through a certification of the costs by an independent certified
public accountant acceptable to the Executive Director; and
3. The following provisions:
a. the term of the agreement shall be ten (10) years from
the later of:
(1) the date of the final approval of the tourism
attraction project, or
(2) the completion date specified in the agreement, if
the completion date is within three (3) years of
the date of the final approval of the tourism
attraction project. However, the term of the
agreement may be extended for up to two (2)
additional years by the Executive Director, with
the advice and consent of the Oklahoma Tax
Commission, if the Executive Director determines
that the failure to complete the tourism
attraction project within three (3) years resulted
from:
(a) unanticipated and unavoidable delay in the
construction of the tourism attraction
project,
(b) an original completion date for the tourism
attraction project, as originally planned,
which will be more than three (3) years from
the date construction began, or
(c) a change in business structure resulting from
a merger or acquisition,
b. in any tax year during which an agreement is in effect,
if the amount of sales tax to be remitted by the
approved company or an Entertainment District Tenant
Party, if applicable, exceeds the sales tax credit
available to the approved company or Entertainment
District Tenant Party, if applicable, then the approved
company or Entertainment District Tenant Party, if
applicable, shall pay the excess to this state as sales
tax,
c. within forty-five (45) days after the end of each
calendar year the approved company shall supply the
Executive Director with such reports and certifications
as the Executive Director may request demonstrating to
the satisfaction of the Executive Director that the
approved company is in compliance with the provisions
of the Oklahoma Tourism Development Act, and
d. the approved company or an Entertainment District
Tenant Party, if applicable, shall not receive an
inducement with respect to any calendar year if:
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(1) with respect to any tourism attraction project
that is not an Entertainment District in any
calendar year following the fourth year of the
agreement, the tourism attraction project fails to
attract at least fifteen percent (15%) of its
visitors from among persons who are not residents
of this state, or
(2) in any calendar year following the first year of
the project or the tourism attraction project is
not operating and open to the public on a regular
and consistent basis, which for a tourism
attraction project that is an Entertainment
District shall mean that a substantial portion of
the Entertainment District is not operating and
open to the public on a regular and consistent
basis.
B. The agreement shall not be transferable or assignable by the
approved company without the written consent of the Executive
Director but, with respect to a tourism attraction project that is an
Entertainment District, the approved company can elect to pass-
through all or a portion of the sales tax credit to one or more
Entertainment District Tenant Parties in accordance with Section 2397
of this title.
C. If the approved company utilizes or receives inducements
which are subsequently disallowed then the approved company will be
liable for the payment to the Tax Commission of an amount equal to
(i) all taxes resulting from the disallowance of the inducements plus
applicable penalties and interest, whether owed by the approved
company or an Entertainment District Tenant Party to which the
credits have been passed-through in accordance with Section 2397 of
this title, and/or (ii) all incentive payments previously received by
the approved company, plus applicable penalties and interest. Only
the approved company originally allowed a sales tax credit shall be
held liable to make such payments and not any Entertainment District
Tenant Party to whom the credit has been passed-through in accordance
with Section 2397 of this title.
D. The Executive Director shall provide a copy of each agreement
entered into with an approved company to the Tax Commission.
E. For a tourism attraction project that is an Entertainment
District and anticipated to have multiple components or phases, the
Executive Director may enter into more than one agreement with
different approved companies for the different components or phases
of the Entertainment District and such agreements may be entered into
at different times as though the different components or phases of
the Entertainment District are their own separate project. In such
case, the Executive Director shall not be required to obtain a
separate consultant's report (referred to in subsection C of Section
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2394 of this title) for each individual component or phase of the
Entertainment District, but only one consultant's report for the
entire Entertainment District.
Added by Laws 2017, c. 196, § 6, eff. Nov. 1, 2017. Amended by Laws
2019, c. 443, § 4, eff. Nov. 1, 2019.
§68-2397. Inducement claim forms - Sales tax credits.
A. Upon receiving notification from the Executive Director of
the Oklahoma Tourism and Recreation Department that an approved
company has entered into a tourism project agreement and is entitled
to the inducements provided by the Oklahoma Tourism Development Act,
the Oklahoma Tax Commission shall provide the approved company with
forms and instructions as necessary to claim or receive or pass-
through those inducements.
B. An approved company whose agreement provides that it shall
expend approved costs of more than Five Hundred Thousand Dollars
($500,000.00) for a tourism attraction project but less than One
Million Dollars ($1,000,000.00) shall be entitled to a sales tax
credit if the company certifies to the Tax Commission that it has
expended at least the minimum amount in approved costs, and the
Executive Director certifies that the approved company is in
compliance with this act. The Tax Commission shall then issue a tax
credit memorandum to the approved company granting a sales tax credit
in the amount of up to ten percent (10%) of the approved costs, but
limited to the percent of the approved costs that will result in the
project being revenue-neutral to the State of Oklahoma as determined
by the Tax Commission. Subsequent requests for credit for additional
certified approved costs in excess of the minimum amount for each
project as listed in this subsection but less than One Million
Dollars ($1,000,000.00) shall result in a sales tax credit in the
amount of up to ten percent (10%) of the approved costs, but limited
to the percent of the approved costs that will result in the project
being revenue-neutral to the State of Oklahoma as determined by the
Tax Commission. Sales tax credits allowed pursuant to the provisions
of this act shall not be transferable or assignable; provided that,
with respect to a tourism attraction project that is an Entertainment
District, the approved company can elect to pass-through all or a
portion of the sales tax credit to one or more Entertainment District
Tenant Parties. The approved company and the Entertainment District
Tenant Party shall jointly file a copy of the written credit pass-
through agreement with the Oklahoma Tax Commission within thirty (30)
days of the effective date of the agreement. Such filing of the
agreement with the Oklahoma Tax Commission shall perfect such
agreement. The written agreement shall contain the name, address and
taxpayer identification number of the parties to the agreement, the
amount of credit being passed-through, the month and year the credit
was originally allowed to the approved company, the month and tax
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year or years for which the credit may be claimed, and a
representation by the approved company that the approved company has
neither claimed for its own behalf nor conveyed such credits to any
other Entertainment District Tenant Party. The Tax Commission shall
develop a standard form for use by an approved company and an
Entertainment District Tenant Party demonstrating eligibility for the
Entertainment District Tenant Party to utilize the sales tax credit.
The Tax Commission shall develop a system to record and track the
pass-through of the sales tax credit and certify the ownership of the
sales tax credit and may promulgate rules to permit verification of
the validity and timeliness of a sales tax credit claimed upon a
sales tax return pursuant to this subsection but shall not promulgate
any rules which unduly restrict or hinder the pass-through of such
sales tax credit to an Entertainment District Tenant Party.
An approved company whose agreement provides that it shall expend
approved costs in excess of One Million Dollars ($1,000,000.00) shall
be entitled to a sales tax credit if the company certifies to the Tax
Commission that it has expended at least One Million Dollars
($1,000,000.00) in approved costs and the Executive Director
certifies that the approved company is in compliance with this act.
The Tax Commission shall then issue a tax credit memorandum to the
approved company granting a sales tax credit in the amount of up to
twenty-five percent (25%) of the approved costs, but limited to the
percent of the approved costs that will result in the project being
revenue-neutral to the State of Oklahoma as determined by the Tax
Commission. The credit on all subsequent additional certified
approved costs shall be in the amount of up to twenty-five percent
(25%) of the costs, but limited to the percent of the approved costs
that will result in the project being revenue-neutral to the State of
Oklahoma as determined by the Tax Commission. For a tourism
attraction project that is an Entertainment District, an approved
company may elect to receive an incentive payment based on sales tax
collections of Entertainment District Tenant Parties rather than a
sales tax credit. The incentive payment shall be in the amount of up
to twenty-five percent (25%) of the approved costs but limited to the
percent of the approved costs that will result in the project being
revenue-neutral to the State of Oklahoma as determined by the Tax
Commission; provided that, (A) in no event shall the incentive
payments exceed the increased state sales tax liability of the
approved company and the Entertainment District Tenant Parties that
is actually received by the Tax Commission, and (B) the approved
company shall be entitled to receive only ten percent (10%) of the
incentive payment amount during each calendar year. The Tax
Commission shall issue an incentive payment memorandum to the
approved company granting a right to receive an incentive payment
from the Tax Commission in the amount of up to twenty-five percent
(25%) of the approved costs but limited to the percent of the
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approved costs that will result in the project being revenue-neutral
to the State of Oklahoma as determined by the Tax Commission. As
soon as practicable after the end of each calendar year during the
term of the agreement, the approved company shall file a claim for
the incentive payment with the Tax Commission, and the Tax Commission
shall be responsible for ensuring that the amount of the incentive
payment claimed does not exceed the increased state sales tax
liability of the approved company and the Entertainment District
Tenant Parties that has been actually received by the Tax Commission,
which may include accessing the Oklahoma sales tax returns of the
Entertainment District Tenant Parties as permitted by this section.
The cumulative inducements provided pursuant to this act shall
not exceed Fifteen Million Dollars ($15,000,000.00) per year.
The Tax Commission shall require proof of expenditures prior to
issuing a tax credit memorandum or incentive payment memorandum to
the approved company which may be satisfied by a report from an
independent certified public accountant. Additional credit memoranda
or incentive memoranda may be issued as the approved company
certifies additional expenditures of approved costs.
No tax credit memorandum or incentive payment memorandum shall be
issued for any approved costs expended after the expiration of three
(3) years from the date the agreement was signed by the Executive
Director and the approved company. However, the Executive Director,
with the advice and consent of the Tax Commission, may authorize
inducements for approved costs expended up to five (5) years from the
date the agreement was signed if the Executive Director determines
that the failure to complete the tourism attraction project within
three (3) years resulted from:
1. Unanticipated and unavoidable delay in the construction of
the tourism attraction;
2. An original completion date for the tourism attraction, as
originally planned, which will be more than three (3) years from the
date construction began; or
3. A change in business ownership or business structure
resulting from a merger or acquisition.
C. A sales tax credit allowed pursuant to the provisions of this
section may be used to offset a portion of the reported state sales
tax liability of the approved company or an Entertainment District
Tenant Party, if applicable, for all sales tax reporting periods
following the issuance of the credit memorandum subject to the
following limitations:
1. Only increased state sales tax liability may be offset by the
issued credit;
2. An approved company whose agreement provides that it shall
expend approved costs in excess of One Million Dollars
($1,000,000.00) or an Entertainment District Party, if applicable,
shall be entitled to use only ten percent (10%) of the amount of each
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issued credit to offset increased state sales tax liability during
each calendar year, plus the amount of any unused credit carried
forward from a prior calendar year, and an approved company whose
agreement provides that it shall expend approved costs of more than
the minimum amount for each project as listed in this subsection but
less than One Million Dollars ($1,000,000.00) shall be entitled to
use only twenty percent (20%) of the amount of each issued credit to
offset increased state sales tax liability during each calendar year,
plus the amount of any unused credit carried forward from a prior
calendar year; and
3. All issued credit memoranda or incentive payment memorandum
shall expire at the end of the month following the expiration of the
agreement as provided in Section 2396 of this title.
The approved company or an Entertainment District Tenant Party,
if applicable, shall have no obligation to refund or otherwise return
any amount of this inducement to the person from whom the sales tax
was collected.
D. The Tax Commission shall promulgate rules as are necessary
for the proper administration of the Oklahoma Tourism Development
Act. The Tax Commission may also develop forms and instructions as
necessary for an approved company or Entertainment District Tenant
Party, if applicable, to claim or receive or pass-through the
inducements provided by this act.
E. The Tax Commission shall have the authority to obtain any
information necessary from or regarding the approved company or an
Entertainment District Tenant Party, if applicable, and the Executive
Director to verify that approved companies or an Entertainment
District Tenant Party, if applicable, have received the proper
amounts of inducements as authorized by this act. The Oklahoma Tax
Commission shall demand the repayment of any inducements taken or
received in excess of the inducements allowed by this act.
F. No sales tax credit or incentive payment right authorized by
this section shall be granted on or after January 1, 2026.
Notwithstanding the foregoing, an approved company that has entered
into a tourism attraction project agreement with the Oklahoma Tourism
and Recreation Department pursuant to Section 2396 of this title
prior to January 1, 2026, shall continue to be entitled to claim or
receive any inducements authorized by this section as contemplated by
the tourism project agreement.
Added by Laws 2017, c. 196, § 7, eff. Nov. 1, 2017. Amended by Laws
2019, c. 443, § 5, eff. Nov. 1, 2019.
§68-2401. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2402. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-2403. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2404. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2404.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2404.2. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2404.3. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2404.4. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2404.5. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2405. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2405.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2405.2. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2406. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2407. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2407.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2408. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2409.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-2410. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2411. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2412. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2413. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2414. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2415. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2416. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2417. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2418. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2419. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2420. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2421. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2422. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2423. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2424. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2425. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-2426. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2427. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2427.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2427.2. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2428. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2429. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2430. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2431. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2432. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2433. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2434. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2435. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2436. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2437. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2439. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-2440. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2441. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2442. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2443. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2444. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2445. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2446. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2447. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2448. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2449. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2450. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2451. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2452. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2453. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2454. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2455. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-2456. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2457. Repealed by Laws 1989, c. 321, § 28.
NOTE: Prior to repeal, this section as amended by Laws 1988, c. 162,
§ 146 was renumbered as § 3005 of this title by Laws 1988, c. 162, §
164, eff. Jan. 1, 1992.
§68-2458. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2459. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992. Repealed by Laws 1989, c. 321, § 28. Repealed by Laws 1991,
c. 249, § 4, eff. Jan. 1, 1992.
§68-2460. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2461. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2462. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2462.1. Repealed by Laws 1988, c. 162, § 167, eff. January 1,
1992 and by Laws 1991, c. 249, § 6, eff. Jan. 1, 1992.
§68-2463. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2463.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2464. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2465. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2466. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2467. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-2468. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2469. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2470. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2471. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2472. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2473. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2474. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2475. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2476. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2477. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2478. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2479. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2479.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2480. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.1. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-2481.2. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.3. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.4. Payment of revaluation costs - Apportionment of costs -
Appropriation of amount - Statement to jurisdictions receiving
revenue - Billing statement.
A. The cost of the comprehensive program of revaluation shall be
paid by appropriate warrants from those who receive the revenues of
the mill rates levied on the property of the county in the following
manner: The county assessor shall prepare a special budget for such
comprehensive program of revaluation and file the same with the
county excise board or county budget board.
B. That board shall apportion such cost among the various
recipients of revenues from the mill rates levied, including the
county, all cities and towns, all school districts excluding any
sinking funds of such recipients, in the ratio which each recipient's
total tax proceeds collected from its mill rates levied for the
preceding year bears to the total tax proceeds of all recipients,
excluding sinking funds, from all their mill rates levied for the
preceding year.
C. Such amounts shall be included in or added to the budgets of
each such recipient and the mill rates to be established by the board
for each such recipient for the current year shall include and be
based upon such amounts. Then the board and each such recipient
shall appropriate the said amounts to the county assessor for
expenditure for the comprehensive program of revaluation.
D. The county assessor shall render a statement to each of the
jurisdictions within the county which receive revenue from an ad
valorem mill rate excluding sinking funds. Such statement shall
include the following information:
1. The current fiscal year in which the charge has been
incorporated in the jurisdiction's budget;
2. All jurisdictions receiving statements from the county
assessor, the mill rate for each in the previous year, and the
proportion of each to the combined mill rates of each jurisdiction
within the county for the previous year; the proportions specified in
this paragraph should sum to one hundred percent (100%); and
3. The charge for the entity receiving the statement as well as
the charge for each jurisdiction of the county based upon the
proportions specified in paragraph 2 of this subsection; the total of
all current year charges for all county jurisdictions should sum to
the total county assessor's budget for the comprehensive program of
revaluation for the current fiscal year.
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E. In any county wherein any jurisdiction's budget and mill
rates are not subject to review and approval by the county excise
board, the county assessor shall nevertheless include any such
jurisdiction in the calculations required under subsection A of this
section. The county assessor shall also render a billing statement
to any such jurisdiction showing the charge for the current fiscal
year due from the jurisdiction. Such billing statement shall also
show all the information specified in paragraphs 2 and 3 of
subsection D of this section. Such billing statement shall clearly
indicate that the charge payable by the jurisdiction is due and
payable by December 31 of the current fiscal year.
Amended by Laws 1988, c. 90, § 9, operative July 1, 1988; Laws 1988,
c. 162, § 153, eff. July 1, 1989; Laws 1989, c. 321, § 5, operative
July 1, 1989; Amended by Laws 1991, c. 124, § 34, eff. July 1, 1991.
(Repeal of this section by Laws 1991, c. 249, § 5, is effective July
1, 1992).
§68-2481.5. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.6. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.8. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.9. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.10. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.11. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-2481.12. Repealed by Laws 1988, c. 162, § 167, eff. January 1,
1992 and by Laws 1991, c. 249, § 6, eff. Jan. 1, 1992.
§68-2482. Renumbered as § 3001 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2483. Renumbered as § 3002 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2484. Renumbered as § 3003 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
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§68-2486. Renumbered as § 3006 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2487. Renumbered as § 3007 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2488. Renumbered as § 3008 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2489. Renumbered as § 3009 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2490. Renumbered as § 3010 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2491. Renumbered as § 3011 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2492. Renumbered as § 3012 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2493. Renumbered as § 3013 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2494. Renumbered as § 3014 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2495. Renumbered as § 3015 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2496. Renumbered as § 3016 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2497. Renumbered as § 3017 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2498. Renumbered as § 3018 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2499. Renumbered as § 3019 of this title by Laws 1988, c. 162, §
163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-2601. Power to levy and assess tax - Tax in lieu of other taxes.
The power is hereby vested in the governing body of any city or
town in the State of Oklahoma to levy and assess, by ordinance, an
annual tax upon the gross receipts from residential and commercial
sales of power, light, heat, gas, electricity or water in said city
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or town in an amount not exceeding two percent (2%) of the gross
receipts from residential and commercial sales, which tax shall be
in lieu of any other franchise, license, occupation or excise tax,
levied by such city or town.
Laws 1935, p. 131, § 1; Laws 1965, c. 215, § 1.
§68-2602. Application of tax.
The tax authorized to be levied under Section 1, of this act,
shall, when levied, apply to all persons, firms, associations or
corporations engaged in the business of furnishing power, light,
heat, gas, electricity or water in any city or town, except it shall
not apply to any person, firm, association or corporation operating
under a valid franchise from said city or town.
Laws 1935, p. 131, § 2; Laws 1965, c. 215, § 1.
§68-2603. Tax levied for one year - Payable quarterly - Disposition.
The tax authorized to be levied under Section 2601 of this title,
shall be levied for a term of not less than one (1) year; shall be
payable monthly.
Laws 1935, p. 132, § 3; Laws 1965, c. 215, § 1; Laws 1991, c. 124, §
33, eff. July 1, 1991.
§68-2604. Failure or refusal to pay tax - Penalties.
Any person, firm or corporation failing or refusing to pay such
tax, when levied, shall be regarded as a trespasser and may be ousted
from such city or town, and in addition thereto, an action may be
maintained against such person, firm or corporation for the amount of
the tax, and all expenses of collecting same, including reasonable
attorney fees.
Added by Laws 1935, p. 132, § 4. Amended by Laws 1965, c. 215, § 1.
§68-2605. Lien for tax.
The tax so imposed shall constitute a first and prior lien on all
of the assets, located within said city or town, of any person, firm
or corporation engaged in the business of selling power, light, heat,
gas, electricity or water.
Added by Laws 1935, p. 132, § 5. Amended by Laws 1965, c. 215, § 1.
§68-2701. Authorization to tax for purposes of municipal government
- Exceptions and limitations.
A. Any incorporated city or town in this state is hereby
authorized to assess, levy, and collect taxes for general and special
purposes of municipal government as the Legislature may levy and
collect for purposes of state government, subject to the provisions
of subsection F of this section, except ad valorem property taxes.
Provided:
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1. Taxes shall be uniform upon the same class subjects, and any
tax, charge, or fee levied upon or measured by income or receipts
from the sale of products or services shall be uniform upon all
classes of taxpayers;
2. Motor vehicles may be taxed by the city or town only when
such vehicles are primarily used or located in such city or town for
a period of time longer than six (6) months of a taxable year;
3. The provisions of this section shall not be construed to
authorize imposition of any tax upon persons, firms, or corporations
exempted from other taxation under the provisions of Sections 348.1,
624 and 321 of Title 36 of the Oklahoma Statutes, by reason of
payment of taxes imposed under such sections;
4. Cooperatives and communications companies are hereby
authorized to pass on to their subscribers in the incorporated city
or town involved, the amount of any special municipal fee, charge or
tax hereafter assessed or levied on or collected from such
cooperatives or communications companies;
5. No earnings, payroll or income taxes may be levied on
nonresidents of the cities or towns levying such tax;
6. The governing body of any city or town shall be prohibited
from proposing taxing ordinances more often than three times in any
calendar year, or twice in any six-month period; and
7. Any revenues derived from a tax authorized by this subsection
not dedicated to a limited purpose shall be deposited in the
municipal general fund.
B. A sales tax authorized in subsection A of this section may be
levied for limited purposes specified in the ordinance levying the
tax. Such ordinance shall be submitted to the voters for approval as
provided in Section 2705 of this title. Any sales tax levied or any
change in the rate of a sales tax levied pursuant to the provisions
of this section shall become effective on the first day of the
calendar quarter following approval by the voters of the city or town
unless another effective date, which shall also be on the first day
of a calendar quarter, is specified in the ordinance levying the
sales tax or changing the rate of sales tax. Such ordinance shall
describe with specificity the projects or expenditures for which the
limited-purpose tax levy would be made. The municipal governing body
shall create a limited-purpose fund and deposit therein any revenue
generated by any tax levied pursuant to this subsection. Money in
the fund shall be accumulated from year to year. The fund shall be
placed in an insured interest-bearing account and the interest which
accrues on the fund shall be retained in the fund. The fund shall be
nonfiscal and shall not be considered in computing any levy when the
municipality makes its estimate to the excise board for needed
appropriations. Money in the limited-purpose tax fund shall be
expended only as accumulated and only for the purposes specifically
described in the taxing ordinance as approved by the voters.
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C. The Oklahoma Tax Commission shall give notice to all vendors
of a rate change at least sixty (60) days prior to the effective date
of the rate change. Provided, for purchases from printed catalogs
wherein the purchaser computed the tax based upon local tax rates
published in the catalog, the rate change shall not be effective
until the first day of a calendar quarter after a minimum of one
hundred twenty (120) days’ notice to vendors. Failure to give notice
as required by this section shall delay the effective date of the
rate change to the first day of the next calendar quarter.
D. The change in the boundary of a municipality shall be
effective, for sales and use tax purposes only, on the first day of a
calendar quarter after a minimum of sixty (60) days’ notice to
vendors.
E. If the proceeds of any sales tax levied by a municipality
pursuant to subsection B of this section are being used by the
municipality for the purpose of retiring indebtedness incurred by the
municipality or by a public trust of which the municipality is a
beneficiary for the specific purpose for which the sales tax was
imposed, the sales tax shall not be repealed until such time as the
indebtedness is retired. However, in no event shall the life of the
tax be extended beyond the duration approved by the voters of the
municipality. The provisions of this subsection shall apply to all
sales tax levies imposed by a municipality and being used by the
municipality for the purposes set forth in this subsection prior to
or after July 1, 1995.
F. The sale of an article of clothing or footwear designed to be
worn on or about the human body shall be exempt from the sales tax
imposed by any incorporated city or town, in accordance with and to
the extent set forth in Section 3 of this act.
Added by Laws 1965, c. 430, § 1, emerg. eff. July 8, 1965. Amended
by Laws 1987, c. 213, § 3, operative July 1, 1987; Laws 1995, c. 70,
§ 1, eff. July 1, 1995; Laws 1998, c. 301, § 14, eff. Nov. 1, 1998;
Laws 2003, c. 413, § 30, eff. Nov. 1, 2003; Laws 2007, c. 136, § 6,
eff. July 1, 2007.
§68-2702. Contractual agreements to collect taxes and enforce and
assess penalties by Tax Commission - Tax Commission Compliance Fund.
A. The governing body of any incorporated city or town and the
Oklahoma Tax Commission shall enter into contractual agreements
whereby the Tax Commission shall have authority to assess, to collect
and to enforce any taxes or, penalties or interest thereon, levied by
such incorporated city or town, and remit the same to such
municipality. Said assessment, collection, and enforcement authority
shall apply to any taxes, penalty or interest liability existing at
the time of contracting. Upon contracting, the Tax Commission shall
have all the powers of enforcement in regard to such taxes, penalties
and interest as are granted to or vested in the contracting
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municipality. Such agreement shall provide for the assessment,
collection, enforcement, and prosecution of such municipal tax,
penalties and interest, in the same manner as and in accordance with
the administration, collection, enforcement, and prosecution by the
Tax Commission of any similar state tax except as provided by
agreement. Such agreement shall authorize the Tax Commission to
retain an amount not to exceed one-half of one percent (0.5%) as a
retention fee of municipal tax collected for services rendered in
connection with such collections; provided, if a municipality files
an action resulting in collection of delinquent state and municipal
taxes, the Tax Commission shall remit one-half (1/2) of the retention
fee applied to the amount of such taxes to the municipality to be
apportioned as are other sales tax revenue. All funds retained by
the Tax Commission for the collection services to municipalities
shall be deposited in the Oklahoma Tax Commission Revolving Fund in
the State Treasury. The municipality shall agree to refrain from any
assessment, collection, or enforcement of the municipal tax except as
specified in an agreement made pursuant to subsections A, C, D and E
of this section.
B. The Tax Commission shall place all sales taxes, including
penalties and interest, collected on behalf of a municipality
pursuant to the provisions of this section and all use taxes,
including penalties and interest, collected on behalf of a
municipality pursuant to the provisions of Section 1411 of this title
in the Sales Tax Remitting Account as provided in Section 1373 of
this title.
C. Notwithstanding the provisions of subsection E of this
section, the Tax Commission and the governing body of any
incorporated city or town may enter into contractual agreements
whereby the municipality would be authorized to implement or augment
the enforcement, collection and prosecution of the municipal tax in
those contracting municipalities and to provide for the satisfaction
of refunds or credits to taxpayers. Such agreements shall and are
hereby authorized to provide that the municipality and the Tax
Commission may exchange necessary information to effectively carry
out the terms of such agreements. The municipality, its officers and
employees shall preserve the confidentiality of such information in
the same manner and be subject to the same penalties as provided by
Section 205 of this title, provided that the municipal prosecutor and
other municipal enforcement personnel may receive all information
necessary to implement or augment the enforcement and prosecution of
municipal sales tax ordinances.
D. Provided further that, upon the request of any incorporated
city or town, the Tax Commission shall enter into contractual
agreements with such municipality whereby the municipality would be
authorized to implement or augment the enforcement, either directly
or through contract with private auditors or audit firms, of the
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municipal tax. Any person performing an audit shall first be
approved by the Tax Commission and, once approved, shall be appointed
as an agent of the Tax Commission for purposes of the audit.
Contracts with a private auditor or audit firm shall not be subject
to the limitations of Section 262 of this title and shall and are
hereby authorized to provide that the municipality, private auditors
or audit firms and the Tax Commission may exchange necessary
information to effectively carry out the terms of such agreements.
The municipality, its officers and employees and private auditors or
audit firms may receive all information necessary to perform audits
and shall preserve the confidentiality of such information in the
same manner and be subject to the same penalties as provided by
Section 205 of this title. Municipalities conducting audits directly
or by contracting for private auditors or audit firms pursuant to
this subsection shall furnish to the Tax Commission the audit results
and all relevant supporting documentation. Further, such
municipalities shall provide for the payment of private auditors or
audit firms by deduction from the tax assessment resulting from the
audit conducted by said private auditors or audit firms unless a
municipality contracts with the auditor or audit firm for another
method of payment. Any municipal sales tax funds recovered as a
result of the services provided under this subsection will not be
included in calculating the retention fee retained by the Tax
Commission pursuant to subsection A of this section. The contracts
authorized by subsection A of this section shall provide that the Tax
Commission shall not have any obligations thereunder to any
municipality that does not participate in an audit conducted under
this subsection.
E. 1. Pursuant to the provisions of this subsection, upon the
request of any municipality, the Tax Commission shall enter into a
contractual agreement with the municipality whereby the municipality
would be authorized to engage in compliance activities, either
directly or through contract with private persons or entities, to
augment the collection of the municipal tax by the Tax Commission.
The sole responsibility for the administration of any and all such
compliance activities shall remain with the Tax Commission to ensure
that sellers and purchasers shall only be required to register, file
returns, and remit state and local taxes to one single authority, and
that no enforcement activities are duplicated.
2. Any contractual agreement entered into pursuant to paragraph
1 of this subsection and any person or entity who will be performing
compliance activities shall first be approved by the Tax Commission
in its sole discretion. Once approved, the private person or entity
shall be appointed as an agent of the Tax Commission for purposes of
such compliance activities. Any agreements entered into pursuant to
paragraph 1 of this subsection shall provide that the municipality,
private persons or entities appointed as an agent and the Tax
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Commission may exchange necessary information to effectively carry
out the terms of the agreements. The municipality, its officers and
employees and any private person or entity appointed as an agent of
the Tax Commission may receive all information necessary for
compliance activities and shall preserve the confidentiality of the
information in the same manner and be subject to the same penalties
as provided by Section 205 of this title. Municipalities conducting
compliance activities directly or by contracting with private persons
or entities pursuant to this subsection shall furnish to the Tax
Commission the compliance results and all relevant supporting
documentation and the Tax Commission shall take such information and
issue proposed assessments or conduct other such administrative
action as is necessary.
3. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tax Commission to be known as the "Tax
Commission Compliance Fund". The fund shall be a continuing fund,
not subject to fiscal year limitations, and notwithstanding any other
provisions of law, shall consist of the first three-fourths of one
percent (3/4 of 1%) of enhanced collections of state sales and use
taxes collected pursuant to an agreement entered into pursuant to
paragraph 1 of this subsection. All monies accruing to the credit of
the fund are hereby appropriated and may be budgeted and expended by
the Oklahoma Tax Commission for the purpose of reimbursing a
municipality for enhanced collections of state sales taxes pursuant
to an agreement entered into pursuant to paragraph 1 of this
subsection. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
4. The Director of the Office of Management and Enterprise
Services shall form an Implementation Working Group composed of
representatives of municipalities and of the Tax Commission and shall
adopt a plan to implement this subsection by September 30, 2011. The
plan shall ensure that the Tax Commission shall maintain a central
point of collection and centralized administration and enforcement
and further shall be consistent with all applicable state laws.
F. Any sum or sums collected or required to be collected
pursuant to a municipal sales tax levy shall be deemed to be held in
trust for the municipality, and, as trustee, the collecting vendor
shall have a fiduciary duty to the municipality in regards to such
sums and shall be subject to the trust laws of this state.
Added by Laws 1965, c. 430, § 2, emerg. eff. July 8, 1965. Amended
by Laws 1979, c. 139, § 1, emerg. eff. May 3, 1979; Laws 1981, c.
351, § 2, eff. Jan. 1, 1982; Laws 1984, c. 1, § 70, emerg. eff. Jan.
30, 1984; Laws 1984, c. 102, § 3, emerg. eff. April 5, 1984; Laws
1985, c. 95, § 2, eff. Jan. 1, 1986; Laws 1986, c. 218, § 30, emerg.
eff. June 9, 1986; Laws 1989, c. 168, § 2, eff. Nov. 1, 1989; Laws
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1990, c. 60, § 3, emerg. eff. April 16, 1990; Laws 1991, c. 293, § 6,
emerg. eff. May 30, 1991; Laws 1993, c. 28, § 3, emerg. eff. March
30, 1993; Laws 2002, c. 460, § 41, eff. Nov. 1, 2002; Laws 2010, c.
412, § 16, eff. July 1, 2010; Laws 2011, c. 378, § 1, eff. Sept. 1,
2011; Laws 2012, c. 304, § 566; Laws 2014, c. 303, § 3, eff. July 1,
2015.
§68-2702.1. Collection of municipally imposed lodging tax.
A. The Oklahoma Tax Commission may enter into agreement with any
municipality for the collection of a municipally imposed lodging tax.
B. Any municipality that enters into agreement with the Oklahoma
Tax Commission for collection of municipal lodging taxes shall adopt
a resolution expressing the intent of the municipality to allow the
Oklahoma Tax Commission to serve as the collecting agent for the tax.
C. The Oklahoma Tax Commission shall collect any and all
municipal lodging taxes for each municipality adopting a resolution
described in subsection B of this section.
D. The Oklahoma Tax Commission may require the municipality
imposing a lodging tax levy to provide for the following:
1. Specific description of the entities and transactions subject
to the levy;
2. Specific description of the entities and transactions exempt
from the levy;
3. Specific definitions of the terms "hotel", "motel" or other
facility the occupancy of which would be subject to the lodging tax
levy;
4. A due date for reporting and remittance of the tax which
shall be the twentieth day of the month following the month during
which the charge for occupancy of a hotel, motel or other facility is
incurred by the occupant;
5. A date certain for determination of delinquency and any
applicable penalty amounts;
6. Any applicable discount provided to the tax remitter; and
7. Such other provisions as the Oklahoma Tax Commission may
require.
E. Any municipality that has previously entered into agreement
with the Oklahoma Tax Commission for collection of municipal lodging
taxes may adopt a resolution expressing the intent of the
municipality to discontinue allowing the Oklahoma Tax Commission to
serve as the collecting agent for the tax.
Added by Laws 2013, c. 395, § 1.
§68-2703. Enforcement and collection.
Any incorporated city or town may provide ordinance for the
enforcement and collection of taxes assessed and levied by such
municipality, including penal provisions and civil actions, to
enforce payment brought in a court of competent jurisdiction.
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Laws 1965, c. 430, § 3.
§68-2704. Liens and priorities.
All taxes, interest and penalties imposed by any incorporated
city, town or the Oklahoma Tax Commission under authority of this
act, or other authorized municipal taxes, are hereby declared to
constitute a lien in favor of such municipality upon all franchises,
property and rights to property, whether real or personal, then
belonging to or thereafter acquired by the person owing the tax,
whether such property is employed by such person in the conduct of
business, or is in the hands of an assignee, trustee, or receiver for
the benefit of creditors, from the date said taxes are due and
payable under the provisions of the municipal tax ordinances levying
such taxes. Said lien shall be co equal with all tax liens created
by state statutes, except where the Legislature by statute declares
certain and specific municipal tax liens to be a first or prior lien.
The liens herein created shall otherwise be prior, superior and
paramount to all other liens, claims or encumbrances on the property
of the person, firm or corporation owing the tax. Such liens,
however, shall be inferior to those of any bona fide mortgagee,
pledgee, judgment creditor, or purchaser, who has filed or recorded
said mortgages or conveyances in the office of the county clerk of
the county in which the property is located, and whose rights shall
have attached prior to the date of the entry of the notice of the
lien of the claiming incorporated city or town upon the district
court judgment docket in the office of the court clerk, in the county
in which the property is located. Such taxes, penalties and interest
owing the incorporated city or town shall at all times, constitute a
prior, superior and paramount claim as against the claims of
unsecured creditors. The said lien of the incorporated city or town
shall continue until the amount of the tax and penalty due and owing,
and interest subsequently accruing thereon, is paid. In any action
affecting the title to real estate or the ownership or right to
possession of personal property, the incorporated city or town
asserting a lien on such property may be made a party defendant, for
the purpose of determining its lien upon the property involved
therein only in cases where notice of the lien of the municipality
has been entered upon the district court judgment docket; and in such
action service of summons upon such municipality, by serving the
mayor or clerk of such incorporated city or the president or clerk of
the board of trustees of any incorporated town, shall be sufficient
service and binding upon such municipality.
Laws 1965, c. 430, § 4; Laws 1979, c. 139, § 2, emerg. eff. May 3,
1979.
§68-2705. Approval of taxing ordinance by voters.
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A. Any taxes which may be levied by an incorporated city or town
as authorized by the provisions of Section 2701 et seq. of this title
shall not become valid until the ordinance setting the rate of such
tax shall have been approved by a majority vote of the registered
voters of such incorporated city or town voting on such question at a
general or special municipal election.
B. In the case of a levy submitted for voter approval pursuant
to Section 13 of this act, taxes levied by an incorporated city or
town shall not become valid until the ordinance setting the rate of
the levy shall have been approved by a majority vote of the
registered voters of each such incorporated city or town voting on
such question at a special municipal election. Elections conducted
pursuant to questions submitted pursuant to Section 13 of this act
shall be conducted on the same date or in a sequence that provides
that the last vote required for approval by all participating
counties or municipalities occurs not later than thirty (30) days
after the date upon which the first vote occurs.
C. No ordinance shall be resubmitted for ratification within six
(6) months following its defeat by the electors.
Added by Laws 1965, c. 430, § 5, emerg. eff. July 8, 1965. Amended
by Laws 1967, c. 174, § 1, emerg. eff. May 1, 1967; Laws 1985, c.
179, § 94, operative July 1, 1985; Laws 2009, c. 309, § 16, eff. July
1, 2009.
§68-2706. Provisions as cumulative.
The provisions of this act shall be cumulative to any existing
authority of incorporated cities and towns to raise revenue, and
shall not repeal any existing law on the subject excepting those
sections enumerated herein.
Added by Laws 1965, c. 430, § 6.
§68-2801. Short title.
Articles 28, 29, 30 and 31 of Title 68 of the Oklahoma Statutes
shall be known and may be cited as the Ad Valorem Tax Code.
Added by Laws 1988, c. 162, § 1, eff. Jan. 1, 1992.
§68-2802. Definitions.
As used in Section 2801 et seq. of this title:
1. "Accepted standards for mass appraisal practice" means those
standards for the collection and analysis of information about
taxable properties within a taxing jurisdiction permitting the
accurate estimate of fair cash value for similar properties in the
jurisdiction either without direct observation of such similar
properties or without direct sales price information for such similar
properties using a reliable statistical or other method to estimate
the values of such properties;
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2. "Additional homestead exemption" means the exemption provided
by Section 2890 of this title;
3. "Assessor" means the county assessor and, unless the context
clearly requires otherwise, deputy assessors and persons employed by
the county assessor in performance of duties imposed by law;
4. "Assess and value" means to establish the fair cash value and
taxable fair cash value of taxable real and personal property
pursuant to requirements of law;
5. "Assessed valuation" or "assessed value" means the percentage
of the fair cash value of personal property, or the percentage of the
taxable fair cash value of real property, pursuant to the provisions
of Sections 8 and 8B of Article X of the Oklahoma Constitution,
either of individual items of personal property, parcels of real
property or the aggregate total of such individual taxable items or
parcels within a jurisdiction;
6. "Assessment percentage" means the percentage applied to
personal property and real property pursuant to Section 8 of Article
X of the Oklahoma Constitution;
7. "Assessment ratio" means the relationship between assessed
value and taxable fair cash value for a county or for use categories
within a county expressed as a percentage determined in the annual
equalization ratio study;
8. "Assessment roll" means a computerized or noncomputerized
record required by law to be kept by the county assessor and
containing information about property within a taxing jurisdiction;
9. "Assessment year" means the year beginning January 1 of each
calendar year and ending on December 31 preceding the following
January 1 assessment date;
10. "Circuit breaker" means the form of property tax relief
provided by Sections 2904 through 2911 of this title;
11. "Class of subjects" means a category of property
specifically designated pursuant to provisions of the Oklahoma
Constitution for purposes of ad valorem taxation;
12. "Code" means the Ad Valorem Tax Code, Section 2801 et seq.
of this title;
13. "Coefficient of dispersion" means a statistical measure of
assessment uniformity for a category of property or for all property
within a taxing jurisdiction;
14. "Confidence level" means a statistical procedure for
determining the degree of reliability for use in reporting the
assessment ratio for a taxing jurisdiction;
15. "Cost approach" means a method used to establish the fair
cash value of property involving an estimate of current construction
cost of improvements, subtracting accrued depreciation and adding the
value of land;
16. "County board of equalization" means the board which, upon
hearing competent evidence, has the authority to correct and adjust
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the assessment rolls in its respective county to conform to fair cash
value and such other responsibilities as prescribed in Section 2801
et seq. of this title;
17. "Equalization" means the process for making adjustments to
taxable property values within a county by analyzing the
relationships between assessed values and fair cash values in one or
more use categories within the county or between counties by
analyzing the relationship between assessed value and fair cash value
in each county;
18. "Equalization ratio study" means the analysis of the
relationships between assessed values and fair cash values in the
manner provided by law;
19. "Fair cash value" or "market value" means the value or price
at which a willing buyer would purchase property and a willing seller
would sell property if both parties are knowledgeable about the
property and its uses and if neither party is under any undue
pressure to buy or sell and for real property shall mean the value
for the highest and best use for which such property was actually
used, or was previously classified for use, during the calendar year
next preceding the applicable January 1 assessment date;
20. "Homestead exemption" means the reduction in the taxable
value of a homestead as authorized by law;
21. "Income and expense approach" means a method to estimate
fair cash value of a property by determining the present value of the
projected income stream;
22. "List and assess" means the process by which taxable
property is discovered, its description recorded for purposes of ad
valorem taxation and its fair cash value and taxable fair cash value
are established;
23. "Mill" or "millage" means the rate of tax imposed upon
taxable value. One (1) mill equals One Dollar ($1.00) of tax for
each One Thousand Dollars ($1,000.00) of taxable value;
24. "Multiple regression analysis" means a statistical technique
for estimating unknown data on the basis of known and available data;
25. "Parcel" means a contiguous area of land described in a
single description by a deed or other instrument or as one of a
number of lots on a plat or plan, separately owned and capable of
being separately conveyed;
26. "Sales comparison approach" means the collection,
verification, and screening of sales data, stratification of sales
information for purposes of comparison and use of such information to
establish the fair cash value of taxable property;
27. "State Board of Equalization" means the Board responsible
for valuation of railroad, airline and public service corporation
property and the adjustment and equalization of all property values
both centrally and locally assessed;
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28. "Taxable value" means the percentage of the fair cash value
of personal property or the taxable fair cash value of real property,
less applicable exemptions, upon which an ad valorem tax rate is
levied pursuant to the provisions of Section 8 and Section 8B of
Article X of the Oklahoma Constitution;
29. "Taxable fair cash value" means the fair cash value of
locally assessed real property as capped pursuant to Section 8B of
Article X of the Oklahoma Constitution;
30. "Use category" means a subcategory of real property, that is
either agricultural use, residential use or commercial/industrial use
but does not and shall not constitute a class of subjects within the
meaning of the Oklahoma Constitution for purposes of ad valorem
taxation;
31. "Use value" means the basis for establishing fair cash value
of real property pursuant to the requirement of Section 8 of Article
X of the Oklahoma Constitution; and
32. "Visual inspection program" means the program required in
order to gather data about real property from physical examination of
the property and improvements in order to establish the fair cash
values of properties so inspected at least once each four (4) years
and the fair cash values of similar properties on an annual basis.
Added by Laws 1988, c. 162, § 2, eff. Jan. 1, 1992. Amended by Laws
1997, c. 304, § 2, emerg. eff. May 29, 1997; Laws 2005, c. 116, § 3,
eff. Nov. 1, 2005; Laws 2018, c. 266, § 1, eff. Nov. 1, 2018.
§68-2802.1. Implementation of Oklahoma Constitution Article X,
Section 8B - Definitions - Promulgation of rules.
A. For purposes of implementing Section 8B of Article X of the
Oklahoma Constitution:
1. "Any person" means any person or entity, whether real or
artificial, other than the present owner;
2. "Any year when title to the property is transferred, changed,
or conveyed to another person or when improvements have been made to
the property" means the year next preceding the January 1 assessment
date;
3. "Improvement" means a valuable addition made to property
amounting to more than normal repairs, replacement, maintenance or
upkeep, but for purposes of Section 8B of Article X of the Oklahoma
Constitution shall not mean any expenditure, whether or not pursuant
to a policy of insurance, for the purpose of repairing damage to a
residential or business structure caused by rain, strong winds,
tornadic winds, hail, fire or any other natural disaster or other
event causing damage and any such improvements made shall be
disregarded for purposes of determining the maximum amount of fair
cash value subject to ad valorem taxation pursuant to Section 8B of
Article X of the Oklahoma Constitution unless the improvements
increase the square footage in which case only additional square
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footage may be considered an "improvement". If improvements
constitute an increase in square footage, the county assessor shall
determine the fair cash value of the additional square footage and
shall separately determine the maximum fair cash value subject to ad
valorem taxation for the square footage which is not part of the
additional square footage amount and only in the amount authorized by
Section 8B of Article X of the Oklahoma Constitution. Except with
respect to the additional square footage, such improvements shall not
allow any county assessor to increase the fair cash value of the
applicable property by more than the percentage allowed by Section 8B
of Article X of the Oklahoma Constitution for property upon which no
improvements have been made; and
4. "Transfers, change or conveyance of title" means all types of
transfers, changes or conveyances of any interest, whether legal or
equitable. However, "transfers, change or conveyance of title" shall
not include the following:
a. deeds recorded prior to January 1, 1996,
b. deeds which secure a debt or other obligation,
c. deeds which, without additional consideration, confirm,
correct, modify or supplement a deed previously
recorded,
d. deeds between husband and wife, or parent and child, or
any persons related within the second degree of
consanguinity, without actual consideration therefor,
or deeds between any person and an express revocable
trust created by such person or such person's spouse,
e. deeds of release of property which is security for a
debt or other obligation,
f. deeds of partition, unless, for consideration, some of
the parties take shares greater in value than their
undivided interests,
g. deeds made pursuant to mergers of partnerships, limited
liability companies or corporations, or deeds pursuant
to which property is transferred from a person to a
partnership, limited liability company or corporation
of which the transferor or the transferor's spouse,
parent, child, or other person related within the
second degree of consanguinity to the transferor, or
trust for primary benefit of such persons, are the only
owners of the partnership, limited liability company or
corporation,
h. deeds made by a subsidiary corporation to its parent
corporation for no consideration other than the
cancellation or surrender of the subsidiary's stock, or
i. any deed executed pursuant to a foreclosure proceeding
in which the grantee is the holder of a mortgage on the
property being foreclosed, or any deed executed
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pursuant to a power of sale in which the grantee is the
party exercising such power of sale or any deed
executed in favor of the holder of a mortgage on the
property in consideration for the release of the
borrower from liability on the indebtedness secured by
such mortgage except as to cash consideration paid.
B. This section shall be applied effective from the date of the
passage of Section 8B of Article X of the Oklahoma Constitution.
C. The Oklahoma Tax Commission shall promulgate rules necessary
to implement Section 8B of Article X of the Oklahoma Constitution and
this section.
Added by Laws 1997, c. 304, § 3, emerg. eff. May 29, 1997. Amended
by Laws 2002, c. 476, § 3, emerg. eff. June 6, 2002; Laws 2014, c.
388, § 1, emerg. eff. June 3, 2014.
§68-2802.2. Date of delivery or payment.
A. For any return, claim, statement, or other document required
to be filed with a county assessor in this state or any payment
required to be made to a county assessor in this state within a
prescribed period or on or before a prescribed date under authority
of the Ad Valorem Tax Code, the date of the postmark stamped on the
cover in which the return, claim, statement, or other document or
payment is mailed shall be deemed to be the date of delivery or the
date of payment, as the case may be.
B. The provisions of this section shall apply only if:
1. The postmark date falls within the prescribed period or on or
before the prescribed date for filing, including any extension, of
the return, claim, statement, or other document or for making
payment, including any extension granted for making such payment; and
2. The return, claim, statement, or other document or payment
was, within the prescribed period or on or before the prescribed date
for filing, deposited in the mail in the United States in an envelope
or other appropriate wrapper, postage prepaid, properly addressed to
the county assessor with which the return, claim, statement, or other
document is required to be filed, or to which the payment is required
to be made.
C. For purposes of this section, if any return, claim,
statement, or other document or payment is sent by United States
registered mail, the registration shall be prima facie evidence that
the return, claim, statement, or other document or payment was
delivered to the county assessor to which addressed, and the date of
registration shall be deemed the postmark date.
D. The provisions of this section shall not apply with respect
to returns, claims, statements or other documents or payments which
are required under any provision of the Ad Valorem Tax Code to be
delivered by any method other than by mailing.
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E. For the purposes of this section, if the prescribed period
ends on or the prescribed date is a legal holiday as defined by
Section 82.1 of Title 25 of the Oklahoma Statutes or any other day
when the office of the county assessor does not remain open for
public business until the regularly scheduled closing time, then the
prescribed period or prescribed date shall be extended until the end
of the next day upon which the office of the county assessor is open
for public business until the regularly scheduled closing time.
Added by Laws 2011, c. 357, § 1, eff. Nov. 1, 2011.
§68-2803. Classification of property - Valuation of classes -
Uniformity of treatment.
A. The Legislature, pursuant to authority of Article X, Section
22 of the Oklahoma Constitution, hereby classifies the following
types of property for purposes of ad valorem taxation:
1. Real property;
2. Personal property, except as provided in paragraph 3 of this
subsection;
3. Personal property which is household goods of the head of
families and livestock employed in support of the family in those
counties which have exempted such property pursuant to subsection (b)
of Section 6 of Article X of the Oklahoma Constitution;
4. Public service corporation property; and
5. Railroad and air carrier property.
B. Valuation of each class of subjects shall be made by a method
appropriate for each class or any subclass thereof, as established by
the Ad Valorem Division of the Oklahoma Tax Commission.
C. Classification as provided by this section shall require
uniform treatment of each item within a class or any subclass as
provided in Article X, Section 5 of the Oklahoma Constitution.
Added by Laws 1988, c. 162, § 3, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 7, operative Jan. 1, 1992; Laws 1994, c. 326, § 1,
eff. July 1, 1994; Laws 1995, c. 57, § 1, eff. July 1, 1995.
§68-2804. Property subject to tax.
All property in this state, whether real or personal, except that
which is specifically exempt by law, and except that which is
relieved of ad valorem taxation by reason of the payment of an in
lieu tax, shall be subject to ad valorem taxation.
Added by Laws 1988, c. 162, § 4, eff. Jan. 1, 1992.
§68-2805. Fees or taxes to be levied in lieu of ad valorem tax.
The following fees or taxes levied by the provisions of the
Oklahoma Statutes shall be in lieu of ad valorem tax, whether in lieu
of real property tax, personal property tax, or both as provided by
law:
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1. The registration fees and taxes imposed upon aircraft by
Section 251 et seq. of Title 3 of the Oklahoma Statutes;
2. Registration fees for motor vehicles as provided in Section
1103 of Title 47 of the Oklahoma Statutes, except as otherwise
specifically provided;
3. The fee imposed upon transfers of used vehicles in lieu of
the ad valorem tax upon inventories of used motor vehicles by Section
1137.1 of Title 47 of the Oklahoma Statutes;
4. The registration and license fees imposed upon vessels and
motors pursuant to the Oklahoma Vessel and Motor Registration Act,
Section 4001 et seq. of Title 63 of the Oklahoma Statutes;
5. The taxes levied upon the gross production of substances
pursuant to Section 1001 of this title;
6. The taxes levied upon the gross production of substances
pursuant to Section 1020 of this title;
7. The tax imposed upon gross receipts pursuant to Section 1803
of this title;
8. The tax imposed upon certain textile products pursuant to
Section 2001 of this title;
9. The tax imposed upon certain freight cars pursuant to Section
2202 of this title;
10. The tax imposed on certain parts of the inventories, both
new and used items, owned and/or possessed for sale by retailers of
farm tractors and other equipment pursuant to Sections 1 through 4 of
this act;
11. The tax imposed upon inventories of new vehicles and certain
vessels pursuant to Section 5301 of this title; and
12. Such other fees or taxes as may be expressly provided by law
to be in lieu of ad valorem taxation.
Added by Laws 1988, c. 162, § 5, eff. Jan. 1, 1992. Amended by Laws
1989, c. 346, § 73, eff. Jan. 1, 1992; Laws 1991, 1st Ex. Sess., c.
2, § 13, eff. Jan. 1, 1992; Laws 1991, c. 149, § 5, eff. Jan. 1,
1992.
§68-2806. Real property defined.
A. Real property, for the purpose of ad valorem taxation, shall
be construed to mean the land itself, and all rights and privileges
thereto belonging or in any wise appertaining, such as permanent
irrigation, or any other right or privilege that adds value to real
property, and all mines, minerals, quarries and trees on or under the
same, and all buildings, structures and improvements or other
fixtures, including but not limited to improvements such as barns,
bins or cattle pens, or other improvements or fixtures of whatsoever
kind thereon, exclusive of such machinery and fixtures on the same as
are, for the purpose of ad valorem taxation, defined as personal
property.
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B. Notwithstanding the provisions of Section 2807 of this title,
real property shall also consist of any improvements affixed to land
owned by the United States, any branch of the Armed Forces of the
United States, or any agency or quasi-agency of the United States if
such improvements are used for:
1. National defense purposes; or
2. Housing of military personnel and their families as
contemplated by the Military Housing Privatization Initiative of
1996, 10 U.S.C., Sections 2871 through 2885, as amended.
Improvements used for housing of military personnel and their
families shall, in addition to the actual housing units, include, but
not be limited to, facilities related to such housing units, such as
housing maintenance facilities, housing rental and management
offices, parks and community centers. Such improvements shall, for
purposes of ad valorem taxation, be construed to be owned by the
United States or the applicable branch of the Armed Forces of the
United States. For purposes of this subsection, “national defense
purposes” shall include, without limitation, the furtherance of an
existing mission or modification or enhancement of the mission of the
military installation and any activity that is in furtherance of the
defense of the United States and its interests.
Added by Laws 1988, c. 162, § 6, eff. Jan. 1, 1992. Amended by Laws
2006, c. 194, § 2, eff. Nov. 1, 2006.
§68-2807. Personal property defined.
Personal property, for the purpose of ad valorem taxation, shall
be construed to include:
1. All goods, chattels and effects;
2. Except as provided in subsection B of Section 2806 of this
title:
a. all improvements made by others upon lands, the fee of
which is vested in the United States or this state,
b. all improvements, including elevators and other
structures, upon lands, the title to which is vested in
any railway company or other corporation whose property
is not subject to the same mode and rule of taxation as
other property, and
c. all improvements on leased lands that do not become a
part of the realty;
3. The dormant, and other stock of nurserymen, including all
trees, shrubs and plants that have been dug and placed in bins or
storage, and are ready for sale. The trees, shrubs or plants of a
nurseryman shall be "growing crops" within the meaning of Section 6
of Article X of the Oklahoma Constitution and exempt from ad valorem
taxation, if such trees, shrubs or plants are grown upon the premises
of the nurseryman, removed from the earth on such premises prior to
any preparation for resale, and if such trees, shrubs or plants are
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held for resale in a manner that will permit the continued growth or
development of the tree, shrub or plant;
4. All horses, cattle, mules, asses, sheep, swine, goats and
other livestock including poultry, and commercially raised livestock
including but not limited to animals of the families bovidae,
cervidae and antilocapridae or birds of the ratite group. Such
livestock or poultry having a speculative value, by reason of the
fact that the same is subject to registration in some recognized
association, shall be assessed on the market value as though the same
had no speculative value;
5. All household furniture, including gold and silver plate,
musical instruments, watches and jewelry;
6. Personal, private or professional libraries;
7. All wagons, vehicles or carriages and all farm tractors,
implements or machinery appertaining to agricultural labor; and all
types of motors, feed grinders, pumps for irrigation and other
irrigation equipment;
8. All machinery and materials used by manufacturers, and all
manufactured articles, including all machinery and equipment of
cotton gins, cottonseed oil mills, newspaper and printing plants,
refineries, gasoline plants, flour and grain mills and elevators,
bakeries, ice plants, laundries, automobile assembly plants, repair
shops, breweries, radio broadcasting stations, tractors, graders,
road machinery and equipment, and all other similar or related plants
or industries;
9. All goods, wares, and merchandise, including oil, gas, and
petroleum products severed from the realty;
10. All abstractors' books and the records contained therein;
and equipment and all other personal property and records and files
of mercantile credit reporting organizations;
11. All agricultural implements or machinery, goods, wares,
merchandise, or other chattels, in this state, in possession of, or
under the control of, or held for sale by, any warehouseman, agent,
factor or representative in any capacity of any manufacturer, or any
dealer or agent of any such manufacturer;
12. a. All tanks and containers used to store or hold crude
oil or any of its products or byproducts and all tanks
and containers used to store or hold gasoline, water,
or other liquids or gases,
b. All oil, gas, water or other pipelines,
c. All telegraph and telephone lines,
d. All railroad tracks, and
e. All oil, gas, and petroleum products in storage; and
13. All other property, having an actual, constructive or
taxable situs in this state, and not included within the definition
of real property.
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Added by Laws 1988, c. 162, § 7, eff. Jan. 1, 1992. Amended by Laws
1989, c. 24, § 2, eff. Jan. 1, 1992; Laws 1995, c. 19, § 1, eff. July
1, 1995; Laws 2006, c. 194, § 3, eff. Nov. 1, 2006; Laws 2015, c.
262, § 1, emerg. eff. May 6, 2015.
§68-2807.1. Livestock employed in support of family - Defined.
A. For purposes of the exemption authorized pursuant to
subsection (b) of Section 6 of Article X of the Oklahoma
Constitution, "livestock employed in support of the family" means all
horses, cattle, mules, asses, sheep, swine, goats, poultry and any
other livestock.
B. For purposes of the exemption authorized pursuant to
subsection (b) of Section 6 of Article X of the Oklahoma
Constitution, and for purposes of this section, livestock owned by a
general partnership, limited partnership, corporation, limited
liability company, estate, trust or other lawfully recognized entity
the primary purpose of which is to confer the economic benefits
derived from the ownership of the livestock on two or more members of
the same family and not any persons who are not members of the same
family, whether such members are related by consanguinity or
affinity, shall be deemed to be livestock employed in support of the
family. For purposes of this subsection, an adopted child shall be
treated as being related by consanguinity to the person or persons
who become the adoptive parent or parents of such child.
C. For purposes of the exempt treatment provided by subsection B
of this section, a surviving spouse having no other family members by
consanguinity or affinity after the death of his or her spouse shall
continue to be eligible for the exempt treatment of livestock used
for his or her support according to the requirements of subsection B
of this section.
Added by Laws 1994, c. 51, § 1, eff. Sept. 1, 1994. Amended by Laws
2012, c. 193, § 1, eff. Jan. 1, 2013.
§68-2808. Definitions - Certain property to be assessed by State
Board of Equalization.
A. As used in the Ad Valorem Tax Code:
1. "Public service corporation" means all transportation
companies, transmission companies, all gas, electric, light, heat and
power companies and all waterworks and water power companies, and all
persons authorized to exercise the right of eminent domain or to use
or occupy any right-of-way, street, alley, or public highway, along,
over or under the same in a manner not permitted to the general
public;
2. "Transportation company" means any company, corporation,
trustee, receiver, or any other person owning, leasing or operating
for hire, a street railway, canal, steamboat line, and also any
sleeping car company, parlor car company and express company, and any
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other company, trustee, or person in any way engaged in such business
as a common carrier. As used in the Ad Valorem Tax Code, the term
"transportation company" shall not include any railroad or any air
carrier. However, all railroad and air carrier property shall
continue to be valued and assessed by the State Board of Equalization
for purposes of ad valorem taxation;
3. "Transmission company" means any company, corporation,
trustee, receiver, or other person owning, leasing or operating for
hire any telegraph or telephone line or radio broadcasting system;
4. "Person" means individuals, partnerships, associations, and
corporations in the singular as well as plural number;
5. "Video services provider" means a subclass of public service
corporations consisting of any public service corporation offering
video programming services; and
6. "Video programming" shall have the same meaning as set forth
in 47 U.S.C., Section 522(20).
B. As used in the Ad Valorem Tax Code, "transmission company"
and "public service corporation" shall not be construed to include
cable television companies.
C. Any real or personal property used by any company,
corporation, trustee, receiver, or other person owning, leasing, or
operating for hire any pipeline or oil or gas gathering system which
was assessed by the State Board of Equalization after January 1,
1997, shall continue to be assessed by the State Board of
Equalization through ad valorem tax year 1998.
Added by Laws 1988, c. 162, § 8, eff. Jan. 1, 1992. Amended by Laws
1988, c. 258, § 5, emerg. eff. June 27, 1988; Laws 1995, c. 57, § 2,
eff. July 1, 1995; Laws 1997, c. 337, § 1, eff. July 1, 1997; Laws
2009, c. 119, § 1, eff. Jan. 1, 2010.
§68-2809. Farm tractors - Subject of tax - Definition - Designation.
A. Each farm tractor in the state shall be subject to ad valorem
taxation and shall be returned and assessed as other personal
property.
B. The term farm tractor as used in this section and in the Ad
Valorem Tax Code is hereby defined to be any motor vehicle of tractor
type designed and used primarily as a farm implement for drawing
plows, listers, mowing machines, harvesters, and other implements of
husbandry on a farm, or any motor vehicle of tractor type used for
the purpose of hauling farm products, by the producer thereof, from
farm to farm, or from farm to market.
C. No tractor shall be designated a farm tractor unless it is
used in whole or in part by the owner thereof upon, or in connection
with, a farm owned, leased or operated by such tractor owner.
Added by Laws 1988, c. 162, § 9, eff. Jan. 1, 1992.
§68-2810. Repealed by Laws 1997, c. 294, § 30, eff. July 1, 1997.
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§68-2811. Manufactured homes not registered or assessed for ad
valorem taxation - Listing and assessment - Proof of registration and
payment of taxes - Exemptions.
A. Upon locating a manufactured home which is not registered as
required pursuant to the provisions of Title 47 of the Oklahoma
Statutes or is not listed and assessed for ad valorem taxation
pursuant to the provisions of the Ad Valorem Tax Code, the county
assessor of the county in which the manufactured home is located
shall list and assess the manufactured home, and place the home on
the tax rolls as required by law. The county assessor shall cause
such manufactured home to be entered on the assessment rolls and tax
rolls for the year or years not to exceed three (3) years omitted
pursuant to the provisions of Section 2844 of this title whether or
not such manufactured home had situs in such county on January 1 of
the year in which the manufactured home was located. No manufactured
home shall be entered upon the assessment roll of any county for an
assessment year in which the manufactured home was previously
assessed for ad valorem taxation in such county or any other county
of this state. The county assessor may use the following method to
determine the fair cash value of such a manufactured home:
1. If a bill of sale is provided to the county assessor, the
actual consideration reflected thereon may be used as the fair cash
value; or
2. If a bill of sale is not provided to the county assessor, the
total delivered price may be used as the fair cash value, depreciated
at a rate of ten percent (10%) per year for the first three (3) years
of age of such manufactured home and at a rate of three percent (3%)
per year for each year thereafter until accumulated depreciation
shall equal eighty percent (80%), after which the depreciated fair
cash value shall remain at such level.
B. The county assessor of the county in which a manufactured
home is located shall require satisfactory proof of registration,
payment of ad valorem taxes and excise taxes on a manufactured home.
An ad valorem tax receipt for a manufactured home presented as
evidence of payment of ad valorem taxes for such home shall be
conclusive as to proper payment of ad valorem taxes upon such home
for all assessment years preceding the year of the receipt by the
county issuing such receipt.
C. Any person owning a manufactured home and refusing to show
satisfactory proof of registration of such manufactured home pursuant
to the provisions of this section or payment of ad valorem taxes
pursuant to the provisions of the Ad Valorem Tax Code upon demand by
the county assessor of the county in which the manufactured home is
located, upon conviction, shall be guilty of a misdemeanor.
D. A used manufactured home held for resale, on a sales lot, by
a licensed manufactured housing dealer on January 1, shall be exempt
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from ad valorem taxation and the dealer shall be required to obtain a
current certificate of title and registration decal for the
manufactured home. A purchaser of a used manufactured home held for
resale for which a certificate of title and registration decal has
been obtained shall provide to the county assessor of the county in
which the home is to be located the information specified in
subsection G of Section 2813 of this title. The manufactured home
shall not be subject to ad valorem taxation until the first January 1
date following the date of purchase.
Added by Laws 1988, c. 162, § 11, eff. Jan. 1, 1992. Amended by Laws
1997, c. 192, § 5, eff. Jan. 1, 1998; Laws 1998, c. 403, § 4, emerg.
eff. June 10, 1998.
§68-2812. Manufactured homes - Locus of listing and assessment -
Transmission of information.
A. Subject to the provisions of subsection B of Section 2813 of
this title, a manufactured home which is located on land owned by the
owner of the manufactured home shall be listed and assessed in the
county in which it is located for ad valorem taxation as is real
property pursuant to the provisions of the Ad Valorem Tax Code. The
person owning and residing in such manufactured home may apply for
homestead exemption. The county assessor shall approve the
application of such person if all requirements of law for such
exemption have been met.
B. A manufactured home which is located on land not owned by the
owner of the manufactured home shall be listed and assessed in the
county in which it is located for ad valorem taxation as is personal
property pursuant to the provisions of the Ad Valorem Tax Code.
C. Each year that a manufactured home is subject to ad valorem
taxes as provided by law, the county assessor and the county
treasurer shall transmit the information relating to ad valorem tax
payment to the Oklahoma Tax Commission which shall identify the
manufactured home and record the payment in the computer system
provided for by Section 1113 of Title 47 of the Oklahoma Statutes.
The county assessor and treasurer of each county shall provide such
information as may be required in order to implement the provisions
of this section.
Added by Laws 1988, c. 162, § 12, eff. Jan. 1, 1992. Amended by Laws
1997, c. 192, § 6, eff. Jan. 1, 1998.
§68-2813. Manufactured homes - Listing, assessment and payment of
tax.
A. On the first day of January of each year, the county assessor
of the county in which a manufactured home is located shall list,
assess and tax such manufactured home as required by the provisions
of Section 2812 of this title and the Ad Valorem Tax Code.
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B. In addition to the other requirements prescribed by law for
the listing and assessing of real property pursuant to the provisions
of the Ad Valorem Tax Code, when listing the value of real property
on which a manufactured home is located and owned by the person
owning the manufactured home and when listing the value of the
improvements thereon, the county assessor shall separately describe
and identify the value of the manufactured home apart from other real
property and the value of the other improvements thereon. The value
of the real property, the manufactured home, and the other
improvements shall be shown separately.
C. Except as authorized by subsection E of this section, when a
manufactured home is moved, or whenever title to a manufactured home
is transferred, any county treasurer shall collect all ad valorem
taxes due for the current calendar year and all delinquent taxes due
and owing prior to the change of title or location and shall issue a
receipt of taxes paid, which shall be a Form 936, and a tax payment
decal. These transactions may be handled by mail or facsimile
transmission at the option of the taxpayer, except for tax payments
which shall be handled either by mail or in person.
D. After issuance of a receipt of taxes paid and a decal
pursuant to the provisions of subsection C of this section and after
notification by the county treasurer of such payment, the county
assessor of the county in which the manufactured home is located
shall furnish to the county assessor of the county where the
manufactured home is to be located, the following information:
1. The name of the owner of the manufactured home;
2. The serial number or identification number of the
manufactured home;
3. The registration number given to the manufactured home by the
Oklahoma Tax Commission;
4. The address or legal description where the manufactured home
is to be located;
5. The actual retail selling price of the manufactured home,
excluding Oklahoma state taxes; and
6. Any other information necessary to enable the county assessor
to list and assess the proper ad valorem taxes for the manufactured
home for the following year.
E. 1. When lawfully repossessing a manufactured home which has
been listed and assessed as real property pursuant to the provisions
of subsection A of Section 2812 of this title, a holder of a
perfected security interest in the home is authorized to pay the ad
valorem taxes for the full current year and any registration fees or
ad valorem taxes which may be due for any prior year on the
manufactured home based on the assessed value of the home pursuant to
the provisions of subsection B of this section apart from other real
property and the other improvements thereon. When lawfully
repossessing a manufactured home which has been listed and assessed
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as personal property pursuant to the provisions of subsection B of
Section 2812 of this title, a holder of a perfected security interest
in the home is authorized to pay the ad valorem taxes for the full
current year and any registration fees or ad valorem taxes which may
be due for any prior years. The county treasurer shall issue a
receipt of taxes paid to said holder and a decal showing the payment
of such taxes. Such receipt shall be issued notwithstanding the
existence of a tax sale certificate issued as a result of a tax sale
to a purchaser of property upon which a manufactured home is located
and for which the holder of a perfected security interest makes
payment as authorized by this subsection. Such receipt shall be
issued if the procedures prescribed by Section 3106 of this title are
followed. If a tax sale certificate has been issued as required by
law and the notice of sale contained the statement concerning the
right of a secured party to repossess the manufactured home, the
amount of taxes paid by the holder of the security interest shall be
refunded to the holder of the tax sale certificate. The receipt
shall be evidence of payment of the ad valorem taxes for purposes of
obtaining a permit. The Department shall issue a permit immediately
to the holder of a perfected security interest or licensed
representative thereof, if the holder or representative is bonded by
the state, to move the manufactured home to a secure location with a
repossession affidavit. However, all excise taxes and ad valorem
taxes due on such a manufactured home shall be required to be paid
within thirty (30) days of the issuance of the permit. A certificate
of title for a manufactured home shall not be issued pursuant to a
repossession prior to the furnishing of proof satisfactory to the
Oklahoma Tax Commission or motor license agent that all ad valorem
taxes due have been paid. If the home is subject to registration
pursuant to the provisions of the Oklahoma Vehicle License and
Registration Act, the holder of a perfected security interest in a
manufactured home may repossess the manufactured home and transport
the manufactured home within the state for the purpose of securing
the property after registering the manufactured home pursuant to the
provisions of Section 1113 or 1117 of Title 47 of the Oklahoma
Statutes.
2. The county assessor shall issue a special waiver and a
commercial move affidavit for the second through the sixth day of the
first month of the following year to allow a manufactured home which
is used for commercial purposes to be moved during the first five (5)
days in January without a Form 936 or a tax decal. All registration
fees, excise taxes or ad valorem taxes due on the manufactured home
shall be required to be paid within thirty (30) days of the issuance
of the special waiver and commercial move affidavit. A business
entity applying for a special waiver and a commercial move affidavit
pursuant to this paragraph shall provide the county assessor with the
information required by subsection B of Section 14-103D of Title 47
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of the Oklahoma Statutes. No individual county assessor shall issue
any business entity more than ten special waivers and commercial move
affidavits in a calendar year. As used in this paragraph,
“manufactured home used for commercial purposes” means a manufactured
home owned by any lawfully recognized business entity the primary
purpose of which is to provide temporary housing for the employees or
contractors of such business entity.
F. 1. The decal shall be affixed to the manufactured home
license plate as evidence of the ad valorem tax paid and shall remain
on the license plate, which shall be affixed to the exterior of the
manufactured home, while the manufactured home is in transit.
2. It shall be a misdemeanor for any person to transport or
cause to be transported a manufactured home without the decal affixed
as required by this section or without a special waiver and affidavit
as provided in subsection E of this section.
3. The decal issued pursuant to subsection C of this section
shall be of such size, color, design and numbering as the Tax
Commission may direct. The tax payment decals shall be made with
reflectionized material so as to provide effective and dependable
brighteners during the service period for which the tax payment decal
is issued. The Tax Commission shall issue such tax payment decals to
the various county treasurers of the state in order for a
manufactured home owner or repossessor to move the manufactured home.
Added by Laws 1988, c. 162, § 13, eff. Jan. 1, 1992. Amended by Laws
1991, c. 249, § 7, eff. Jan. 1, 1992; Laws 1997, c. 117, § 1, eff.
Nov. 1, 1997; Laws 1997, c. 192, § 7, eff. Jan. 1, 1998; Laws 1998,
c. 403, § 5, emerg. eff. June 10, 1998; Laws 2002, c. 417, § 5, eff.
July 1, 2002; Laws 2012, c. 269, § 2, eff. Jan. 1, 2013.
§68-2814. Office of county assessor - Creation - Filling.
There is hereby created the office of county assessor in and for
each county of this state, which office shall be filled in the same
manner as provided by Section 131 of Title 19 of the Oklahoma
Statutes.
Added by Laws 1988, c. 162, § 14, eff. Jan. 1, 1992.
§68-2815. County assessor - Oath.
The county assessor shall take an oath that he will assess all
property as provided by law, and he shall maintain his office at the
county seat, which office shall be provided, furnished and maintained
as required by law.
Added by Laws 1988, c. 162, § 15, eff. Jan. 1, 1992.
§68-2815.1. Removal of elected officials from office – Exhaustion of
remedies.
All elected county officers may not be subject to any legal or
disciplinary action for causes related to job performance and the
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assessment of a specific parcel of property unless the owner of the
specific parcel of property has already exhausted the remedies
provided in Sections 2876, 2877 and 2880.1 of Title 68 of the
Oklahoma Statutes.
Added by Laws 2000, c. 60, § 1, eff. Nov. 1, 2000.
§68-2815.2. Current boundary descriptions – Maintenance and use by
county assessor.
The county assessor shall maintain and use the current boundary
descriptions of each and every school district or part of a district
in the county furnished by the State Department of Education pursuant
to Section 4-104 of Title 70 of the Oklahoma Statutes.
Added by Laws 2001, c. 239, § 1, eff. Nov. 1, 2001.
§68-2816. Officers and personnel - Educational accreditation.
A. The Director of the Ad Valorem Division of the Oklahoma Tax
Commission, the first deputy within such division, all field analysts
or equalization and assessment analysts within such division, each
elected county assessor assuming office on or after January 1, 1991,
all first deputies within such assessors' offices and all personnel
involved in the actual appraisal of property shall be required to
achieve educational accreditation as prescribed by this section.
Such accreditation shall be achieved within the time prescribed.
Failure to achieve such accreditation shall result in forfeiture of
office or termination of employment. A vacancy in a public office
created for failure to achieve such accreditation shall be filled in
the manner provided by law.
B. Accreditation for persons designated in subsection A of this
section shall consist of initial accreditation and advanced
accreditation as follows:
1. Within one (1) year from the date an assessor is elected to
office, the assessor shall be required to successfully complete
initial accreditation. If the assessor does not successfully
complete testing or some part of the requirement, initial
accreditation shall be completed within eighteen (18) months from the
date of the assessor's election to office. Initial accreditation
shall consist of successful completion of two (2) academic units.
The first academic unit shall consist of basic ad valorem taxation
law, legal responsibilities of the assessor's office, the role of the
county assessor, valuation requirements and assessment
administration. The second academic unit shall consist of basic
appraisal and assessment processes.
2. Within one (1) year from the completion date of initial
accreditation, the assessor shall be required to successfully
complete advanced accreditation. If the assessor does not
successfully complete advanced accreditation testing or some part of
the requirement, advanced accreditation shall be completed by July 1,
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1995, for persons holding office on May 27, 1993, or for persons
assuming office after May 27, 1993, within eighteen (18) months from
the date initial accreditation is completed. Advanced accreditation
shall consist of successful completion of five (5) academic units.
Each unit shall consist of one of the following topics:
a. appraisal procedures,
b. valuation of personal property,
c. valuation of agricultural property,
d. mass appraisal procedures, and
e. cadastral mapping.
3. A county assessor's deputy not previously accredited pursuant
to paragraphs 1 and 2 of this subsection shall be subject to the same
requirements as the county assessor. Failure to complete the
accreditations within the times prescribed shall result in dismissal
of the deputy.
4. For any person required to achieve accreditation pursuant to
this section and for whom the period of time to complete the
accreditation is not otherwise prescribed, the accreditation shall be
completed within eighteen (18) months of January 1, 1991, or within
eighteen (18) months of the beginning date of employment if such
person is initially employed after January 1, 1991.
C. Each county assessor who has successfully completed advanced
accreditation shall thereafter be required to complete a continuing
education requirement of thirty (30) hours every three (3) years.
Failure to complete the continuing education requirement shall result
in forfeiture of any travel reimbursement until the requirement is
completed. Continuing education shall consist of successful
completion of academic units on changes in Oklahoma Statutes
affecting ad valorem taxation, real estate or appraisal, valuation
and appraisal methods, mass appraisal methods or other topics
appropriate to the improvement of county assessor's offices. A
deputy who has completed advanced accreditation as required by this
section shall be subject to the continuing education requirement.
D. The Oklahoma State University Center for Local Government
Technology, in cooperation with the Oklahoma Tax Commission and the
County Assessors' Association, shall develop educational
requirements, curriculum materials, appropriate study resources and
examinations for an education program for accreditation purposes
established in this section. The Oklahoma State University Center
for Local Government Technology shall provide necessary classes,
seminars and materials in support of the accreditation requirements.
Nothing in this section shall be construed to prohibit use of the
International Association of Assessing Officers' course work, where
applicable, or any of its professional designations, as a substitute
for or supplement to the accreditation program requirements.
E. For purposes of the administration of the accreditation
requirements, the Oklahoma State University Center for Local
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Government Technology shall be responsible for keeping an official
record as to the accreditation of individual county assessors and
deputies and others who are required to achieve accreditation. Such
record shall be the sole responsibility of Oklahoma State University
and shall be defined as an open record under Section 24A.1 et seq. of
Title 51 of the Oklahoma Statutes. The Oklahoma State University
Center for Local Government Technology shall be responsible for
forwarding only the pass/fail results of individual testing to the
Tax Commission. The Tax Commission shall issue the accreditations to
all persons who have so qualified. All expenses incurred in the
performance of the duties imposed upon the Oklahoma State University
Center for Local Government Technology shall be paid out of funds
deposited in the County Government Education-Technical Revolving Fund
as provided in Section 6 of this act, appropriated or otherwise made
available to the Tax Commission, or the University may charge a
reasonable fee to defray the cost of sponsoring the educational
accreditation academic units required by this section.
F. The Oklahoma State University Center for Local Government
Technology, in cooperation with the County Assessors' Association and
the County Treasurers' Association shall provide computer software
programs, support of software and hardware including installation,
maintenance, data management and training, to counties currently
using the services previously provided by the State Auditor and
Inspector. All expenses incurred in the performance of the duties
imposed upon the Oklahoma State University Center for Local
Government Technology shall be paid out of funds deposited in the
County Government Education-Technical Revolving Fund as provided by
Section 6 of this act, appropriated or otherwise made available to
the Tax Commission, or the University may charge a reasonable fee to
defray the cost of sponsoring the County Computer Assistance Program
support services required by this section.
G. The Oklahoma State University Center for Local Government
Technology, in cooperation with the County Assessors' Association,
shall provide the administration, support, training and
implementation of the Oklahoma State University Center for Local
Government Technology-sponsored computer-assisted mass appraisal
computer software system to any county using the services provided by
the Ad Valorem Division of the Oklahoma Tax Commission and other
counties upon request on the effective date of this act, if such
county elects to adopt the Oklahoma State University Center for Local
Government Technology-sponsored program. All expenses incurred in
the performance of the duties imposed upon the Oklahoma State
University Center for Local Government Technology for the computer-
assisted mass appraisal program shall be paid out of funds deposited
in the County Government Education-Technical Revolving Fund as
provided by Section 6 of this act, appropriated or otherwise made
available to the Oklahoma Tax Commission.
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H. All powers, duties, responsibilities, property, assets,
liabilities, fund balances, encumbrances and obligations of the Ad
Valorem Division of the Oklahoma Tax Commission relating to the
computer-assisted mass appraisal system, referenced in subsection G
of this section, including, but not limited to, program management,
support and training, are hereby transferred to the Oklahoma State
University Center for Local Government Technology.
Added by Laws 1988, c. 162, § 16, eff. Jan. 1, 1991. Amended by Laws
1993, c. 273, § 8, emerg. eff. May 27, 1993; Laws 1996, c. 114, § 1,
eff. Nov. 1, 1996; Laws 2007, c. 346, § 4, eff. Jan. 1, 2008; Laws
2009, c. 170, § 1, eff. July 1, 2009; Laws 2018, c. 260, § 1, eff.
July 1, 2019.
§68-2817. Valuation and assessment of property - Fair cash value -
Use value
A. All taxable personal property, except intangible personal
property, personal property exempt from ad valorem taxation, or
household personal property, shall be listed and assessed each year
at its fair cash value, estimated at the price it would bring at a
fair voluntary sale, as of January 1.
The fair cash value of household personal property shall be
valued at ten percent (10%) of the appraised value of the improvement
to the residential real property within which such personal property
is located as of January 1 each year. The assessment of household
personal property as provided by this section may be altered by the
taxpayer listing such property at its actual fair cash value. For
purposes of establishing the value of household personal property,
pursuant to the requirement of Section 8 of Article X of the Oklahoma
Constitution, the percentage of value prescribed by this section for
the household personal property shall be presumed to constitute the
fair cash value of the personal property.
All unmanufactured farm products shall be assessed and valued as
of the preceding May 31. Every person, firm, company, association,
or corporation, in making the assessment, shall assess all
unmanufactured farm products owned by the person, firm, company,
association or corporation on the preceding May 31, at its fair cash
value on that date instead of January 1.
Stocks of goods, wares and merchandise shall be assessed at the
value of the average amount on hand during the preceding year, or the
average amount on hand during the part of the preceding year the
stock of goods, wares or merchandise was at its January 1 location.
Provided, persons primarily engaged in selling lumber and other
building materials, including cement and concrete, except for home
centers classified under Industry No. 444110 of the North American
Industrial Classification Systems (NAICS) Manual, shall be assessed
at the average value of the inventory on hand as of January 1 of each
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year and the value of the inventory on hand as of December 31 of the
same year.
B. All taxable real property shall be assessed annually as of
January 1, at its fair cash value, estimated at the price it would
bring at a fair voluntary sale for:
1. The highest and best use for which the property was actually
used during the preceding calendar year; or
2. The highest and best use for which the property was last
classified for use if not actually used during the preceding calendar
year.
When improvements upon residential real property are divided by a
taxing jurisdiction line, those improvements shall be valued and
assessed in the taxing jurisdiction in which the physical majority of
those improvements are located.
The Ad Valorem Division of the Oklahoma Tax Commission shall be
responsible for the promulgation of rules which shall be followed by
each county assessor of the state, for the purposes of providing for
the equitable use valuation of locally assessed real property in this
state. Agricultural land and nonresidential improvements necessary
or convenient for agricultural purposes shall be assessed for ad
valorem taxation based upon the highest and best use for which the
property was actually used, or was previously classified for use,
during the calendar year next preceding January 1 on which the
assessment is made.
C. The use value of agricultural land shall be based on the
income capitalization approach using cash rent. The rental income
shall be calculated using the direct capitalization method based upon
factors including, but not limited to:
1. Soil types, as depicted on soil maps published by the Natural
Resources Conservation Service of the United States Department of
Agriculture;
2. Soil productivity indices approved by the Ad Valorem Division
of the Tax Commission;
3. The specific agricultural purpose of the soil based on use
categories approved by the Ad Valorem Division of the Tax Commission;
and
4. A capitalization rate to be determined annually by the Ad
Valorem Division of the Tax Commission based on the sum of the
average first mortgage interest rate charged by the Federal Land Bank
for the immediately preceding five (5) years, weighted with the
prevailing rate or rates for additional loans or equity, and the
effective tax rate.
The final use value will be calculated using the soil
productivity indices and the agricultural use classification as
defined by rules promulgated by the State Board of Equalization.
This subsection shall not be construed in a manner which is
inconsistent with the duties, powers and authority of the Board as to
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valuation of the counties as fixed and defined by Section 21 of
Article X of the Oklahoma Constitution.
However, in calculating the use value of buffer strips as defined
in Section 2817.2 of this title, exclusive consideration shall be
based only on income from production agriculture from such buffer
strips, not including federal or state subsidies, when valued as
required by subsection C of Section 2817.2 of this title.
D. The use value of nonresidential improvements on agricultural
land shall be based on the cost approach to value estimation using
currently updated cost manuals published by the Marshall and Swift
Company or similar cost manuals approved by the Ad Valorem Division
of the Tax Commission. The use value estimates for the
nonresidential improvements shall take obsolescence and depreciation
into consideration in addition to necessary adjustments for local
variations in the cost of labor and materials. This section shall
not be construed in a manner which is inconsistent with the duties,
powers and authority of the Board as to equalization of valuation of
the counties as determined and defined by Section 21 of Article X of
the Oklahoma Constitution.
The use value of facilities used for poultry production shall be
determined according to the following procedures:
1. The Ad Valorem Division of the Tax Commission is hereby
directed to develop a standard system of valuation of both real and
personal property of such facilities, which shall be used by all
county assessors in this state, under which valuation based on the
following shall be presumed to be the fair cash value of the
property:
a. for real property, a ten-year depreciation schedule, at
the end of which the residual value is twenty percent
(20%) of the value of the facility during its first
year of operation, and
b. for personal property, a five-year depreciation
schedule, at the end of which the residual value is
zero;
2. Such facilities shall be valued only in comparison to other
facilities used exclusively for poultry production. Such a facility
which is no longer used for poultry production shall be deemed to
have no productive use;
3. During the first year such a facility is placed on the tax
rolls, its fair cash value shall be presumed to be the lesser of the
actual purchase price or the actual documented cost of construction;
and
4. For the purpose of determining the valuation of
nonresidential improvements used for poultry production, the
provisions of this subsection shall be applicable and such
improvements shall not be considered to be commercial property.
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E. The value of investment in property used exclusively by an
oil refinery that is used wholly as a facility, device or method for
the desulphurization of gasoline or diesel fuel as defined in Section
2817.3 of this title shall not be included in the capitalization used
in the determination of fair market value of such oil refinery if
such property would qualify as exempt property pursuant to Section
2902 of this title, whether or not an application for such exemption
is made by an otherwise qualifying manufacturing concern owning the
property described by Section 2817.3 of this title.
F. The use value of a lot in any platted addition or a
subdivision in a city, town or county zoned for residential,
commercial, industrial or other use shall be deemed to be the fair
cash value of the underlying tract of land platted, divided by the
number of lots contained in the platted addition or subdivision until
the lot shall have been conveyed to a bona fide purchaser or the lot
with building or buildings located thereon shall have been occupied
other than as a sales office by the owner thereof, or shall have been
leased, whichever event shall first occur. One who purchases a lot
for the purposes of constructing and selling a building on such lot
shall not be deemed to be a bona fide purchaser for purposes of this
section. However, if the lot is held for a period longer than two
(2) years before construction, then the assessor may consider the lot
to have been conveyed to a bona fide purchaser. The cost of any land
or improvements to any real property required to be dedicated to
public use, including, but not limited to, streets, curbs, gutters,
sidewalks, storm or sanitary sewers, utilities, detention or
retention ponds, easements, parks or reserves shall not be utilized
by the county assessor in the valuation of any real property for
assessment purposes.
G. The transfer of real property without a change in its use
classification shall not require a reassessment thereof based
exclusively upon the sale value of the property. However, if the
county assessor determines:
1. That by reason of the transfer of a property there is a
change in the actual use or classification of the property; or
2. That by reason of the amount of the sales consideration it is
obvious that the use classification prior to the transfer of the
property is not commensurate with and would not justify the amount of
the sales consideration of the property;
then the assessor shall, in either event, reassess the property for
the new use classification for which the property is being used, or,
the highest and best use classification for which the property may,
by reason of the transfer, be classified for use.
H. When the term "fair cash value" or the language "fair cash
value, estimated at the price it would bring at a fair voluntary
sale" is used in the Ad Valorem Tax Code, in connection with and in
relation to the assessment of real property, it is defined to mean
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and shall be given the meaning ascribed and assigned to it in this
section and when the term or language is used in the Code in
connection with the assessment of personal property it shall be given
its ordinary or literal meaning.
I. Where any real property is zoned for a use by a proper zoning
authority, and the use of the property has not been changed, the use
and not zoning shall determine assessment. Any reassessment required
shall be effective January 1 following the change in use. Taxable
real property need not be listed annually with the county assessor.
J. If any real property shall become taxable after January 1 of
any year, the county assessor shall assess the same and place it upon
the tax rolls for the next ensuing year. When any building is
constructed upon land after January 1 of any year, the value of the
building shall be added by the county assessor to the assessed
valuation of the land upon which the building is constructed at the
fair cash value thereof for the next ensuing year. However, after
the building has been completed it shall be deemed to have a value
for assessment purposes of the fair cash value of the materials used
in such building only, until the building and the land on which the
building is located shall have been conveyed to a bona fide purchaser
or shall have been occupied or used for any purpose other than as a
sales office by the owner thereof, or shall have been leased,
whichever event shall first occur. The county assessor shall
continue to assess the building based upon the fair market value of
the materials used therein until the building and land upon which the
building is located shall have been conveyed to a bona fide purchaser
or is occupied or used for any purpose other than as a sales office
by the owner thereof, or is leased, whichever event shall first
occur.
K. In the event improvements on land or personal property
located therein or thereon are destroyed or partially destroyed, or
the land itself is impaired or partially impaired by fire, lightning,
storm, winds, floodwaters, overflow of streams or other cause (all
such destruction or impairments being referred to herein as "damage")
during any year, the county assessor shall determine the amount of
damage and shall reassess the property for that year at the fair cash
value of the property, taking into account the actual loss of
functional use of the property occasioned by such damage. The
assessor shall make the appropriate value adjustments to the property
for that tax year up to the time at which the assessor publishes the
"Assessor's Report to the Excise Board" as required by subsection D
of Section 2867 of this title. After such time, adjustments can be
made only by the county board of tax roll corrections and only after
the assessor has certified the tax roll for that year. The board
secretary shall notify property owners in advance of the time and
place at which the value adjustment to their property will be heard
by the board. The board of tax roll corrections is authorized only
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to approve or reject the value adjustment submitted by the county
assessor.
L. All taxable personal property used in the exploration of oil,
natural gas, or other minerals, including drilling equipment and
rigs, shall be assessed annually at the value set forth in the first
Hadco International monthly bulletin published for the tax year,
using the appropriate depth rating assigned to the drawworks by its
manufacturer and the actual condition of the rig.
M. The value of taxable tangible personal property used in
commercial disposal systems of waste materials from the production of
oil and gas shall not include any contract rights or leases for the
use of such systems nor any value associated with the wellbore or
non-recoverable down-hole material, including casing.
Added by Laws 1988, c. 162, § 17, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 8, operative Jan. 1, 1991; Laws 1996, c. 189, § 1,
eff. Nov. 1, 1996; Laws 1997, c. 318, § 1, eff. Nov. 1, 1997; Laws
1998, c. 405, § 4, eff. Nov. 1, 1998; Laws 1999, c. 1, § 24, emerg.
eff. Feb. 24, 1999; Laws 2000, c. 255, § 1, eff. Jan. 1, 2001; Laws
2001, c. 358, § 17, eff. July 1, 2001; Laws 2002, c. 345, § 1, eff.
Jan. 1, 2003; Laws 2003, c. 431, § 2, eff. Jan. 1, 2004; Laws 2005,
c. 381, § 13, eff. Jan. 1, 2006; Laws 2006, c. 16, § 70, emerg. eff.
March 29, 2006; Laws 2007, c. 250, § 1, eff. Jan. 1, 2008; Laws 2008,
c. 3, § 39, emerg. eff. Feb. 28, 2008; Laws 2008, c. 140, § 1, emerg.
eff. May 9, 2008; Laws 2013, c. 158, § 1, eff. Nov. 1, 2013; Laws
2014, c. 4, § 20, emerg. eff. April 2, 2014; Laws 2014, c. 177, § 1,
eff. Nov. 1, 2014; Laws 2016, c. 176, § 1, eff. Jan. 1, 2017.
NOTE: Laws 1998, c. 403, § 6 repealed by Laws 1999, c. 1, § 45,
emerg. eff. Feb. 24, 1999. Laws 2005, c. 451, § 1 repealed by Laws
2006, c. 16, § 71, emerg. eff. March 29, 2006. Laws 2007, c. 329, §
1 repealed by Laws 2008, c. 3, § 40, emerg. eff. Feb. 28, 2008. Laws
2013, c. 401, § 3 repealed by Laws 2014, c. 4, § 21, emerg. eff.
April 2, 2014.
§68-2817.1. Implementation of Oklahoma Constitution Article X,
Section 8B - Increasing taxable fair cash value of locally assessed
real property.
A. For purposes of implementing Section 8B of Article X of the
Oklahoma Constitution, the taxable fair cash value of locally
assessed real property shall not be automatically increased five
percent (5%) each year, the five-percent limitation on the increase
in the taxable fair cash value shall not be cumulative, and the five-
percent limitation shall not be considered as a twenty-percent
increase every four (4) years.
B. For purposes of implementing Section 8B of Article X of the
Oklahoma Constitution, improvements made to locally assessed real
property shall be assessed in accordance with law by the county
assessor based on the fair cash value of the improvement. The
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assessed value of the improvement shall then be added to the existing
assessed value of the property, except as otherwise provided in the
Oklahoma Housing Reinvestment Program Act. The existing property
shall continue to be subject to the five-percent limitation on the
increase in valuation as set forth in Section 8B of Article X of the
Oklahoma Constitution. Except when title to the property is
transferred, changed, or conveyed to another person as defined in
Section 2802.1 of this title, and in accordance with Legislative
intent as set forth in subsection A of this section, under no
circumstances shall the taxable fair cash value of the existing
property increase by more than five percent (5%) in any taxable year.
Added by Laws 1997, c. 304, § 4, emerg. eff. May 29, 1997. Amended
by Laws 2002, c. 344, § 8, eff. Jan. 1, 2003; Laws 2005, c. 116, § 4,
eff. Nov. 1, 2005.
§68-2817.2. Buffer strips – Uniform certified document – Duties of
Conservation Commission.
A. For purposes of this section, the term “buffer strip” shall
include any of the following approved Natural Resources Conservation
Service (NRCS) practices which meet the standards and specifications
of the NRCS:
1. Alley cropping;
2. Filter strip;
3. Field border;
4. Contour buffer strips;
5. Grassed waterway;
6. Riparian forest buffer; or
7. Riparian herbaceous cover.
B. In order to qualify under this section, the landowner must be
participating in an Oklahoma Conservation Commission state cost-share
program or be participating in federal conservation cost share
programs through the United States Department of Agriculture.
Eligibility for land to be considered under this section shall be
based on the Natural Resources Conservation Service Buffer Strip
Standards and Specifications and eligibility for state buffer
programs shall be based on the requirements of the local conservation
district.
C. For purposes of valuation and assessment as provided in
Section 2817 of Title 68 of the Oklahoma Statutes, a buffer strip
shall be valued as a separate parcel of property.
D. 1. The conservation district in which the land is located
shall assist the taxpayer in completing a uniform certified document
as prescribed by the Oklahoma Tax Commission in cooperation with the
Conservation Commission that certifies:
a. the property meets the requirements established under
this section for buffer strips, and
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b. the acreage or square footage of property which
qualifies for assessment as a buffer strip.
2. The document shall be filed by the applicant with the county
assessor of the county in which the land is located by March 15.
Approved applications shall be filed by the county assessor with the
Tax Commission.
E. Nothing in this section shall be construed to require any
taxpayer to have buffer strips.
F. The Oklahoma Conservation Commission, in consultation with
the Natural Resources Conservation Service, shall provide a report
concerning the implementation of this program to the Oklahoma
Legislature by March 1, 2002.
G. The Oklahoma Conservation Commission shall be responsible for
the administration of any state programs for assessing, monitoring,
studying and restoring buffer strips. Such administration shall
include, but not be limited to, the receipt and expenditure of funds
from federal, state and private sources for buffer strips.
Added by Laws 2000, c. 255, § 2, eff. Jan. 1, 2001. Amended by Laws
2005, c. 451, § 2, eff. Jan. 1, 2006.
§68-2817.3. Exclusion of property used for desulphurization of
gasoline or diesel fuel.
A. As used in subsection E of Section 2817 of this title,
“facility, device or method for the desulphurization of gasoline or
diesel fuel” means any structure, building, installation, excavation,
machinery, equipment or device and any attachment or addition to or
reconstruction, replacement or improvement of that property, that is
used, constructed, acquired or installed on or after January 1, 2003,
wholly or partly to meet or exceed rules adopted by the Oklahoma
Environmental Quality Board, or by the United States Environmental
Protection Agency with respect to any program which has been
delegated to the Department of Environmental Quality for the
prevention, monitoring, control or reduction of the amount of sulfur
in gasoline or diesel fuel. This definition shall not apply to a
motor vehicle.
B. In applying for an exclusion of property under the provisions
of subsection E of Section 2817 of this title, a person seeking the
exclusion shall present in a request to the Executive Director of the
Department of Environmental Quality information detailing:
1. The anticipated environmental benefits from the installation
of the facility, device or method for the desulphurization of
gasoline or diesel fuel;
2. The estimated cost of the facility, device or method; and
3. The purpose of the installation of such facility, device or
method and the proportion of the installation that is such a
facility, device or method.
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C. Following submission of the information required by
subsection B of this section, the Executive Director of the
Department of Environmental Quality shall determine if the facility,
device or method is used wholly as a facility, device or method for
the desulphurization of gasoline or diesel fuel. As soon as
practicable, the Executive Director shall send notice by regular mail
to the Director of the Ad Valorem Division of the Oklahoma Tax
Commission that the person has applied for a determination under this
section. If the Executive Director determines that the facility,
device or method is used wholly for the desulphurization of gasoline
or diesel fuel, the Executive Director shall issue a letter to the
person stating that determination and the proportion of the
installation that is a facility, device or method for the
desulphurization of gasoline or diesel fuel.
D. The Department of Environmental Quality may charge a person
seeking a determination under the provisions of this section an
additional fee not to exceed its administrative costs for processing
the information, making the determination and issuing the letter
required by this section. The Environmental Quality Board may adopt
rules to implement this section.
E. A person seeking an exclusion under this section shall
provide to the county assessor or the Director of the Ad Valorem
Division of the Oklahoma Tax Commission a copy of the letter issued
by the Executive Director of the Department of Environmental Quality
under subsection C of this section. The county assessor or the
Director of the Ad Valorem Division of the Tax Commission shall
accept the copy of the letter from the Executive Director as
conclusive evidence that the facility, device or method is used
wholly for the desulphurization of gasoline or diesel fuel. The
county assessor or the Director of the Ad Valorem Division of the Tax
Commission shall further determine if the property for which the
exclusion is sought is qualified as provided in subsection E of
Section 2817 of this title.
F. The exclusion provided by this section, once allowed, need
not be applied for subsequent years, and the exclusion applies to the
property until it changes ownership or the qualification of the
property for the exclusion changes. However, the county assessor or
the Director of the Ad Valorem Division of the Tax Commission may
require a person allowed an exclusion in a prior year to file a new
application to confirm the current qualification for the exclusion by
delivering a written notice that a new application is required,
accompanied by an appropriate application form, to the person
previously allowed the exclusion.
Added by Laws 2002, c. 345, § 2, eff. Jan. 1, 2003. Amended by Laws
2003, c. 431, § 3, eff. Jan. 1, 2004.
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§68-2818. Taxpayer's return not conclusive of value - Raising or
lowering returned value - Separate valuation by county assessor -
Inspection and examination of premises.
A. The return of the taxpayer shall not be conclusive as to the
value or amount of any property. The county assessor shall have the
authority and it shall be his duty to raise or lower the returned
value:
1. Of any personal property, to conform to the fair cash value
thereof, estimated at the price it would bring at a fair voluntary
sale; or
2. Of any real property so that the assessment thereof shall be
made in accordance with the provisions of Section 2817 of this title
and with all provisions of the Ad Valorem Tax Code applicable to the
valuation of real property.
B. The county assessor shall assess and value all property, both
real and personal, which is subject to assessment by him, and shall
place a separate value on the land and improvements in assessing real
estate; and he shall do all things necessary, including the viewing
and inspecting of property, to enable him to assess and value all
taxable property, determine the accuracy of assessment lists filed
with him, discover and assess omitted property, and determine the
taxable status of any property which is claimed to be exempt from ad
valorem taxation for any reason.
C. In the performance of his duties, the county assessor, or his
duly appointed and authorized deputy, shall have the power and
authority to:
1. Go upon any premises and enter any business building or
structure and view the same and the property therein, and to view,
inspect or appraise any property located within his county, however,
the county assessor shall not have the power or authority to enter
the private dwelling of a taxpayer except as provided for in
subsection D of this section; and
2. Examine any person under oath in regard to the amount or
value of his property.
D. In the event of a dispute concerning the valuation of
household personal property, a taxpayer may request the county
assessor to perform a visual inspection of such property.
E. Prior to entering the business or commercial premises of any
taxpayer for purposes of discovering personal property, the county
assessor or deputy shall request permission to enter the business or
commercial premises and shall state the reason for the inspection.
If access to the business or commercial premises is denied, the
county assessor or deputy shall be required to obtain a search
warrant in order to conduct an inspection of the interior of the
business or commercial premises. A search warrant may be obtained
upon a showing of probable cause that personal property located
within particularly described business or commercial premises is
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subject to ad valorem taxation, but not listed or assessed for ad
valorem taxation as required by law.
Added by Laws 1988, c. 162, § 18, eff. Jan. 1, 1992. Amended by Laws
1989, c. 152, § 5, eff. Jan. 1, 1992.
§68-2819. Determination of taxable value.
Taxable values of real and personal property shall be established
in accordance with the requirements of Sections 8, 8B and 8C of
Article X of the Oklahoma Constitution. The county assessor shall
determine the taxable value of all taxable property that the assessor
is required by law to assess and value and shall determine such
taxable value in accordance with the requirements of Sections 8, 8B
and 8C of Article X of the Oklahoma Constitution.
Added by Laws 1988, c. 162, § 19, eff. Jan. 1, 1992. Amended by Laws
1997, c. 304, § 5, emerg. eff. May 29, 1997.
§68-2819.1. Notice of intent to decrease assessment ration – Public
meetings.
A. No county assessor may decrease the assessment ratio used to
compute the taxable value of real or personal property unless the
assessor provides written notice of an intent to decrease the
assessment ratio at least ninety (90) days prior to the first date as
of which the assessor intends to cause such ratio to be decreased.
The written notice shall be mailed by certified mail with return
receipt requested to the county treasurer, the county clerk, the
county sheriff, to each of the county commissioners and to the
governing board of any local government jurisdiction that levies ad
valorem taxes upon any property located within the county. Such
notice shall be mailed not later than sixty (60) days prior to the
expiration of the ninety-day period prescribed by this subsection.
The notice shall clearly state the assessment ratio in effect prior
to the decrease, the category of property (whether real or personal
or both) to be affected by the proposed decrease in assessment ratio
and the date as of which such decrease is proposed to take effect.
B. The county assessor shall also be required to publish a
notice of intent to decrease the assessment ratio which clearly
states the ratio in effect prior to the decrease, the category of
property (whether real or personal or both) to be affected by the
proposed decrease in assessment ratio and the date as of which such
decrease is proposed to take effect. The notice shall be placed at
least one time for three (3) consecutive weeks in a newspaper of
general circulation in the county in which the assessor holds office.
The last publication date shall be not later than thirty (30) days
prior to the date that any decrease in the assessment ratio is
implemented. At the beginning of the notice to be published, there
shall appear in a font which is conspicuously larger than the other
information which appears in the notice the following wording:
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"NOTICE OF INTENT TO DECREASE ASSESSMENT RATIO WITH RESPECT TO REAL
OR PERSONAL PROPERTY OR BOTH IN [insert applicable county name] FOR
THE [insert applicable year] ASSESSMENT YEAR".
C. Before the county assessor may implement a decrease in an
assessment ratio with respect to either real or personal property,
there shall be at least three public meetings held at a location
within the county prior to the date as of which the first decrease in
assessment ratio occurs. Notice of the meetings shall be posted in
the office of the county assessor, the office of the county
treasurer, the office of each county commissioner, the office of the
county clerk and such other places within the county as may be
feasible in order to provide adequate notice of the date, time and
location of each meeting. The last public meeting shall be held not
later than thirty (30) days prior to the date any decrease in the
applicable assessment ratio is implemented.
D. The county assessor or a designee from the office of the
county assessor shall attend each of the public meetings in order to
answer questions about the proposed decrease in the assessment ratio
and any possible effects on the budgets of any ad valorem taxing
jurisdiction.
Added by Laws 2015, c. 118, § 1, eff. Nov. 1, 2015.
§68-2820. Visual inspection of taxable property.
A. Each county assessor shall conduct a comprehensive program
for the individual visual inspection of all taxable property within
his respective county. Each assessor shall thereafter maintain an
active and systematic program of visual inspection on a continuous
basis and shall establish an inspection schedule which will result in
the individual visual inspection of all taxable property within the
county at least once each four (4) years.
B. The first cycle of visual inspections for property shall
begin upon January 1, 1991, as prescribed by Section 2481.1 of Title
68 of the Oklahoma Statutes, and shall end upon December 31, 1994.
Thereafter, each succeeding four-year cycle for visual inspections
shall begin upon January 1 of the year following the fourth year of
the preceding cycle and shall end upon December 31 of the applicable
four-year cycle. The county assessor shall utilize the standard
parcel identification system required by law to assign each parcel of
real property a unique identification code or number. The code or
number shall be used to ensure that the inspection sequence for real
property results in a visual inspection of each parcel at least once
each four (4) years. Each successor of the county assessor shall use
the same cycle as used by the assessor's predecessor in office for
visual inspections of property.
C. Prior to the beginning of the first visual inspection cycle
and each subsequent visual inspection cycle, the county assessor
shall develop a plan that details the number of real property parcels
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to be inspected in each year of the cycle by use category, geographic
area or other basis, the resources and budget proposed to complete
the inspections and the valuation methodology to be used in
determining the fair cash value of the real property and improvements
thereon. The plan shall be adequate to ensure the visual inspection
of all parcels of real property within the county at least once each
four (4) years. The plan shall also be adequate to ensure that the
information collected from the visual inspection of real property
each year is sufficient to establish a representative sample from
each use category in order to conduct the proper valuation of all
taxable property within each use category by means of an accepted
standard for mass appraisal practice. The county assessor shall
submit the proposed plan to the Oklahoma Tax Commission by the first
working day in October preceding the beginning of the four-year
cycle. The Oklahoma Tax Commission shall either approve the plan if
the plan and resources are adequate to complete the cycle and if the
plan will result in a representative sample from each use category in
order to value all taxable property each year or shall correct and
modify the plan in order to establish a program for visual inspection
that will be completed by the end of the cycle and that will provide
a representative sample from each use category in order to value all
taxable property each year. An approved plan shall be made for each
county as of the beginning date of each cycle and a copy of such plan
shall be filed with the Oklahoma Tax Commission.
D. Each year the county assessor shall submit a progress report
to the Oklahoma Tax Commission indicating the number of real property
parcels inspected by use category, geographic area or other basis,
the resources and budget expended in the last completed fiscal year
and the valuation methodology used to determine fair cash values of
the real property and improvements. The Oklahoma Tax Commission
shall correct and modify any visual inspection plan during the four-
year cycle if progress reports indicate that inspection of real
property parcels will not be completed or will be performed in
violation of legal requirements for such inspections. The county
assessor shall be required to complete the four-year cycle in
accordance with such plan as corrected and modified.
E. Each county assessor shall prepare and submit to the Oklahoma
Tax Commission a detailed report of the progress made in the visual
inspection program in his county to the date of the report and it
shall be made a matter of public record. Such report shall be
submitted upon forms supplied by the Oklahoma Tax Commission and
shall consist of such information as the Oklahoma Tax Commission
requires. The progress report shall be submitted not later than
October 15 each year or the first working day thereafter. Based in
part on all such county progress reports, the Oklahoma Tax Commission
shall prepare its own report from all sources and transmit a copy of
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its own report to the Legislature and the State Board of
Equalization.
Added by Laws 1988, c. 162, § 20, eff. Jan. 1, 1991. Amended by Laws
2001, c. 358, § 18, eff. July 1, 2001.
§68-2821. Physical inspection of real property - Type of information
to be gathered - Recording - Cadastral maps and parcel identification
system to be required and maintained - Comprehensive sales file -
Office equipment.
A. Each county assessor shall cause real property to be
physically inspected as part of the visual inspection cycle and shall
require such examination as will provide adequate data from which to
make accurate valuations.
B. The information gathered from the physical inspection shall
be relevant to the type of property involved, its use category, the
valuation methodology to be used for the property, whether the
methodology consists of the cost approach, an income and expense
approach or sales comparison approach, and shall be complete enough
in order to establish the fair cash value of the property in
accordance with accepted standards for mass appraisal practice.
C. Information gathered during the physical inspection shall be
recorded using a standard method as prescribed by the Oklahoma Tax
Commission in computerized or noncomputerized form. The information
may include property ownership, location, size, use, use category, a
physical description of the land and improvements or such other
information as may be required.
D. In order to conduct the visual inspections of real property
during the four-year cycle, each county assessor shall acquire and
maintain cadastral maps and a parcel identification system. The
standards for the cadastral maps and the parcel identification system
shall be uniform for each county of the state and shall be in such
form as developed by the Ad Valorem Task Force.
E. The county assessor shall maintain a comprehensive sales file
for each parcel of real property within the county containing
relevant property characteristics, sales price information,
adjustments to sales price for purposes of cash equivalency,
transaction terms and such other information as may be required in
order to establish the fair cash value of taxable real property.
Each county assessor shall ensure that the office is equipped
with adequate drafting facilities, tools, equipment and supplies in
order to produce or update maps, sketches or drawings necessary to
support the proper administration of the ad valorem tax and such
other tools or equipment as may be required to perform duties imposed
by law for the discovery and valuation of taxable property.
Added by Laws 1988, c. 162, § 21, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 9, operative Jan. 1, 1992; Laws 1991, c. 338, § 1,
eff. Jan. 1, 1992.
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§68-2822. Adequate provisions to effectuate visual inspection
program to be included in assessors' budgets.
A. Each county assessor in budgets submitted to the county
excise board or county budget board shall make adequate provision to
effect countywide visual inspections of real property during the
four-year cycle.
B. Each jurisdiction within a county which receives revenue from
an ad valorem mill rate shall receive a copy of the budget for the
countywide visual inspection program for that county. The county
excise board or county budget board shall notify all such
jurisdictions of any meetings at which discussion or action on the
budget for the comprehensive program of visual inspections is or may
be on the agenda. Such jurisdictions shall have the opportunity to
appear before the county excise board or the county budget board,
prior to approval of such budgets, to provide testimony, comments,
information and documentation concerning the budgets submitted by the
county assessor pursuant to subsection A of this section.
C. The several county excise and budget boards, in passing upon
budgets submitted by the several assessors, shall authorize and levy
amounts which will suffice to carry out the countywide visual
inspection program as approved by the Oklahoma Tax Commission under
Section 2820 of this title. Such amounts shall be separate from
other funds allocated to the office of county assessor and shall be
used exclusively to carry out the countywide visual inspection
program. The allocation of such amounts shall not serve to decrease
other funds allocated to the office of county assessor by the county
excise board or the county budget board. Any disputes as to the
amount authorized to carry out the countywide visual inspection
program shall be resolved by the county excise board; provided, the
Oklahoma Tax Commission shall take such action as may be necessary to
ensure that such amounts are used exclusively to carry out the
countywide visual inspection program and that the allocation of such
amounts does not serve to decrease other funds allocated to the
office of county assessor.
Added by Laws 1988, c. 162, § 22, eff. Jan. 1, 1992. Amended by Laws
1992, c. 366, § 1, emerg. eff. June 9, 1992; Laws 1993, c. 273, § 9,
emerg. eff. May 27, 1993; Laws 1994, c. 326, § 2, eff. July 1, 1994.
§68-2823. Cost of comprehensive visual inspection program.
A. For each fiscal year, the cost of the comprehensive program
of visual inspections for real property and the cost of physical
inspections of personal property shall be paid by appropriate
warrants from those who receive the revenues of the mill rates levied
on the property of the county as prescribed by this section. School
districts are hereby authorized to pay such costs from revenues
accruing to their building funds. The county assessor shall prepare
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a budget for the comprehensive program of visual inspections for real
property and the cost of physical inspections of personal property
and file such budget with the county excise board or county budget
board.
B. The county excise board or county budget board shall
apportion such cost among the various recipients of revenues from the
mill rates levied, including the county, all cities and towns, all
school districts, all sinking funds of such recipients, and all
jurisdictions specified in subsection D of this section, in the ratio
which each recipient's total tax collection authorized from its mill
rates levied for the preceding year bears to the total tax collection
authorized of all recipients from all their mill rates levied for the
preceding year. The cost shall include only those expenses directly
attributable to the visual inspection program and those expenses
directly attributable to physical inspections of personal property
and shall not include any expenses of the office of the county
assessor which, in the judgment of the county excise board or county
budget board, are expenses of county assessor's office which would
exist in the absence of such program or in the absence of physical
inspection of personal property. Expenses that are attributable both
to the visual inspection program and physical inspection of personal
property, and which would exist in the absence of such program or
inspection, including but not limited to salaries, employee benefits,
office supplies and equipment, may be prorated; provided, no portion
of the salary of the county assessor shall be included in such costs.
C. Upon receipt of the billing statement provided for in
subsections D and E of this section by each such recipient, the mill
rates to be established by the board for each such recipient for the
current year shall include and be based upon such amounts and shall
constitute an appropriation of such amounts to the county assessor
for expenditure for the expenses of administering the visual
inspection program each year. In the case of a sinking fund of a
recipient, if, after approving its budget, the governing body of a
recipient notifies the board in writing that there are no funds
appropriated to pay the amount of the billing statement for such
sinking fund, such notice shall constitute conclusive evidence of a
financial obligation of the recipient as it relates to such sinking
fund. The board may seek a judgment for the amount of such
obligation and court costs in the district court of the county in
which the board is located.
D. The county assessor shall render a statement to each of the
jurisdictions within the county which receive revenue from an ad
valorem mill rate. Such statement shall include the following
information:
1. The current fiscal year in which the charge has been
incorporated in the jurisdiction's budget;
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2. All jurisdictions receiving statements from the county
assessor, the mill rate for each in the previous year, and the
proportion of each to the combined mill rates of all jurisdictions
within the county for the previous year. The proportions specified
in this paragraph should equal a total of one hundred percent (100%);
3. The charge for the entity receiving the statement as well as
the charge for each jurisdiction of the county based upon the
proportions specified in paragraph 2 of this subsection. The total
of all current year charges for all county jurisdictions should equal
the total visual inspection program budget for the current fiscal
year;
4. The amount of the total budget for the office of the county
assessor and the percentage that visual inspection program expenses
are of such total budget; and
5. A copy of the County Budget Visual Inspection Account and a
brief description of the areas to be visually inspected for the
current fiscal year, consistent with the plan on file with the
Oklahoma Tax Commission pursuant to Section 2820 of this title.
E. In any county wherein any jurisdiction's budget and mill
rates are not subject to review and approval by the county excise
board, the county assessor shall nevertheless include any such
jurisdiction in the calculations required under subsection A of this
section. The county assessor shall also render a billing statement
to any such jurisdiction showing the charge for the current fiscal
year due from the jurisdiction. Such billing statement shall also
show all the information specified in subsection D of this section.
Such billing statement shall clearly indicate that the charge payable
by the jurisdiction is due and payable by December 31 of the current
fiscal year.
Added by Laws 1988, c. 162, § 23, eff. July 1, 1992. Amended by Laws
1991, c. 249, § 8, eff. July 1, 1992; Laws 1992, c. 208, § 2; Laws
1994, c. 326, § 3, eff. July 1, 1994; Laws 2001, c. 358, § 19, eff.
July 1, 2001; Laws 2002, c. 476, § 4, emerg. eff. June 6, 2002.
§68-2824. Special assistance in valuation of certain property.
Any county assessor may request special assistance from the
Oklahoma Tax Commission in the valuation of property which requires
specialized knowledge not otherwise available to the assessor's
staff. Upon approval of such request, the Oklahoma Tax Commission
may assist the assessor in the valuation of such property in such
manner as the Oklahoma Tax Commission, in its discretion, considers
proper and adequate.
Added by Laws 1988, c. 162, § 24, eff. Jan. 1, 1992.
§68-2825. Valuation guidance and assistance.
The Oklahoma Tax Commission shall make and publish such rules,
regulations and guides which it determines are needed for the general
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guidance and assistance of county assessors. Each assessor is hereby
directed and required to value property in accordance with the
standards established by law.
Added by Laws 1988, c. 162, § 25, eff. Jan. 1, 1992.
§68-2826. Appraisers - Valuations - Reassessment.
Appraisers whose services may be obtained by appointment by the
assessor or who may be assigned by the Oklahoma Tax Commission, upon
request of the county assessor, to assist any county assessor shall
act in an advisory capacity only. Valuations made by such appraisers
shall not be binding upon the assessor. All valuations made pursuant
to the Ad Valorem Tax Code shall be made and entered by the assessor
pursuant to law. County assessors may provide photocopies of
taxpayer rendition forms and photocopies of any other documents filed
by the taxpayer which are directly related to and necessary for
appraisers to assist in this capacity. The original documents filed
by the taxpayer must be maintained by the county assessors. Upon the
expiration of the period for reassessment, provided in Section 2846
of this title, all copies of taxpayer documents and the related work
papers of the appraisers must be destroyed or returned to the county
assessors by February 1 of the following year. In addition, all
photocopies of taxpayer documentation and appraiser work papers must
be returned to the county assessor within ten (10) calendar days of
the termination of the contract with the appraisers to provide the
services described in this section.
Added by Laws 1988, c. 162, § 26, eff. Jan. 1, 1992. Amended by Laws
2012, c. 164, § 1, eff. Nov. 1, 2012.
§68-2827. Book, records and materials to be maintained by county
assessor.
Each county assessor shall keep such books and records as are
required by the rules and regulations of the Oklahoma Tax Commission
including, but not limited to, publications provided by the Oklahoma
Tax Commission to assist the assessor and appraisal staff in the
valuation of taxable property as required by law.
Added by Laws 1988, c. 162, § 27, eff. Jan. 1, 1992.
§68-2828. Visual inspection program - Annual progress report to
Legislature.
The Oklahoma Tax Commission, prior to the convening of each
regular session of the Legislature, shall submit a comprehensive
report showing the extent or progress of the real property visual
inspection program in each county based upon data from all sources
available to the Oklahoma Tax Commission. Such report shall also
include any comments and recommendations the Oklahoma Tax Commission
may have in regard to the program.
Added by Laws 1988, c. 162, § 28, eff. Jan. 1, 1992.
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§68-2829. Valuation of property pursuant to accepted mass appraisal
methodology.
A. Each county assessor, in order to comply with the provisions
of Section 17 of this act requiring the annual valuation of all
taxable real and personal property within the county, shall establish
the fair cash value of such taxable property using an accepted mass
appraisal methodology.
B. For purposes of this section "accepted mass appraisal
methodology" shall mean the process for making estimates of fair cash
value for a property about which no direct or timely information is
available concerning economic value by using known information about
the property characteristics, location, use, size, sales price and
other information of similar properties. Such mass appraisal
methodology may include multiple regression analysis or other
statistical techniques for mass appraisal. If information of similar
properties is not available in the taxing jurisdiction, the county
assessor may use other applicable regional or national information to
annually determine the fair cash value of a property estimated at the
price it would bring at a fair voluntary sale as provided in Section
17 of this act.
C. Each county assessor shall utilize the information gathered
from the visual inspection of real property conducted during each
year of the four-year cycle for such inspections and shall conduct
such statistical calculations using the data so acquired together
with sales price or other information available as may be required to
make accurate estimates of fair cash values for all taxable real or
personal property within the county each year. The results of such
calculations shall be recorded on the assessment roll of the county
on an annual basis in order to reflect any increase or decrease in
the fair cash value of any property in any year.
D. The statistical analysis required by this section shall be
performed within each county using such computer facilities as may be
available, but shall be conducted in accordance with procedures
established for the uniform mass appraisal program established by the
Oklahoma Tax Commission.
Added by Laws 1988, c. 162, § 29, eff. Jan. 1, 1992.
§68-2829.1. County Assessor Fee Revolving Fund.
There is hereby created in the office of the county treasurer a
revolving fund for the office of the county assessor, to be
designated the "County Assessor Fee Revolving Fund". The fund shall
be a continuing fund, not subject to fiscal year limitations, and
shall consist of all fees collected by the assessor and all monies
accruing to the fund. Monies deposited to the fund shall be expended
by the county assessor and shall not be transferred to any other
account for a purpose other than:
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1. For maintenance, replacement and upgrade of computer hardware
and software associated with county assessor databases and geographic
information systems; and
2. To provide products and services generated from the database
and geographic information system to both public and private parties.
The intent of this section is to increase the net funding level
available to the county assessor to maintain electronic databases and
geographic information systems as required pursuant to Section 2829
of this title.
Added by Laws 1994, c. 200, § 3.
§68-2830. Monitoring valuations - Noncompliance guidelines and
procedure.
A. The Oklahoma Tax Commission shall monitor the progress of
valuation in each county as it occurs each year. Such monitoring may
be conducted by periodic audits of assessments through visits to the
county or through an analysis of assessment activity by means of a
computer-assisted monitoring program.
B. The Oklahoma Tax Commission shall establish guidelines for
determining the extent of noncompliance with the applicable law or
administrative rules governing valuation of taxable property. Such
guidelines shall establish three categories of noncompliance. The
categories shall be respectively denominated as Category 1, Category
2 and Category 3. Each category shall represent progressive degrees
of noncompliance. Provided, if the Tax Commission finds that a
county assessor is not annually valuing taxable real and personal
property within the county as required by Sections 2817 and 2829 of
this title, the Tax Commission shall certify that the county is not
in compliance with such statutes and shall be required to take action
as prescribed by this section for the appropriate category of
noncompliance according to the guidelines established pursuant to the
provisions of this subsection. The Oklahoma Tax Commission shall be
authorized to take action as prescribed by this section for each
category of noncompliance as follows:
Category 1: The Oklahoma Tax Commission shall notify the county
assessor of the nature of the noncompliance and shall indicate the
action required to correct such noncompliance.
Category 2: The Oklahoma Tax Commission shall order the action
to be taken in order to bring the county into compliance. The
Oklahoma Tax Commission is authorized to do any or all of the
following:
1. Impose a schedule of required actions by county officials to
bring the county into compliance;
2. Establish deadlines for bringing the county into compliance;
or
3. Impose changes in procedures in the assessor's office, if
necessary, to facilitate continued compliance.
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Category 3: The Oklahoma Tax Commission shall notify the board
of county commissioners and the county assessor of the affected
county that the county is in violation of law or regulations relating
to the valuation function for the administration of the ad valorem
tax. The Oklahoma Tax Commission shall conduct a conference, within
thirty (30) days after such notice, in that county with the board of
county commissioners, the county assessor and the county board of
equalization, to formally notify the county of the extent of
noncompliance and the measures necessary to correct it. The Oklahoma
Tax Commission is authorized to do any or all of the following:
1. Impose a schedule of required actions by county officials to
bring the county into compliance;
2. Establish deadlines for bringing the county into compliance;
3. Impose changes in procedures in the assessor's office, if
necessary, to facilitate continued compliance;
4. Place the county valuation function under the temporary
supervision of a qualified Oklahoma Tax Commission employee;
5. Require additional training for the assessor, deputies or
members of the equalization board; or
6. Provide written or oral reports to the board of county
commissioners and the county board of equalization of the progress in
regaining compliance status for the county. Such reports shall be
public records.
The Oklahoma Tax Commission shall periodically conduct a review
of the extent of noncompliance in each county determined to be in
Category 3 noncompliance. When the Oklahoma Tax Commission
determines that such a county is in substantial compliance with the
applicable law or administrative regulations governing valuation of
taxable property, the Commission shall so certify.
C. The Oklahoma Tax Commission may request the Court of Tax
Review to order a county determined to be in Category 3 noncompliance
to reimburse the Oklahoma Tax Commission from the county assessor's
budget as established in Section 2823 of this title for all costs
incurred as a result of the assumption of the valuation function by
the Commission. The salary of the county assessor shall not be paid
during the time that a qualified employee of the Oklahoma Tax
Commission is supervising the valuation function in the county, but
shall be restored as of the date the Commission certifies to the
board of county commissioners that noncompliance has been corrected.
D. The county assessor shall have the right to appeal an order
issued by the Oklahoma Tax Commission to correct Category 2
noncompliance or to appeal a decision finding Category 3
noncompliance in the manner provided by Section 2883 of this title.
Added by Laws 1988, c. 162, § 30, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 10, operative Jan. 1, 1992; Laws 1996, c. 323, § 1,
eff. July 1, 1996.
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§68-2831. Place of listing and assessment.
A. All property, both real and personal, having an actual,
constructive or taxable situs in this state, shall, except as
hereinafter provided, be listed and assessed and taxable in the
county, school districts, and municipal subdivision thereof, where
actually located on the first day of January of each year. In all
cases oil field equipment, drilling equipment, construction
equipment, road machinery, and equipment used by construction, road
building, or drilling contractors or companies or individuals engaged
in such businesses, shall be taxable in the county, school districts,
and municipal subdivision thereof, where actually located on the
first day of January of each year, but if same is not assessed in
said county it shall be subject to assessment and taxation in the
county of the owner's domicile. Goods, wares, merchandise and
property becoming a part of the finished product of drilling
equipment, for use outside the continental United States shall not be
subject to any other taxes.
B. When any personal property is brought into or located in this
state or removed from one county to another within this state between
January 1 and September 1, and shall acquire an actual situs therein
before the first of September, such property shall be listed and
assessed and taxable where situated after such removal or change in
location, unless such property has already been assessed in some
other state or county for the current year, or the property was
originally produced in this state subsequent to January 1, but if
same is not assessed in said county it shall be subject to assessment
and taxation in the county of the owner's domicile.
C. When cattle or other livestock are pastured or kept on a
tract of land situated partially within each of two or more counties
or other taxing districts, so that they may roam or be driven from
one county or taxing district to another and are not kept in any one
county or taxing district, the number to be listed and assessed in
each county or taxing district shall be determined by ascertaining
the acreage proportion of the entire tract which is located in each
county or taxing district and applying the same proportion to the
total number of cattle or other livestock. When cattle or other
livestock are likewise pastured or kept on a tract of land situated
partially in the State of Oklahoma and partially in some other state,
the number having a taxable situs in Oklahoma shall be determined in
like manner.
D. In any case where other personal property, by reason of its
nature or use, does not stay in one place long enough to acquire a
definite taxable situs, such property shall be listed and assessed at
the domicile of the owner, if the owner is domiciled in this state,
and otherwise in the county, school districts, and municipal
subdivision thereof, where the owner has his principal business in
this state.
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E. Tangible personal property moving through the state from a
point outside the state, in transit to a final destination outside
the state, shall for purposes of taxation, acquire no situs in the
state. The owner shall, if required, in order to obtain a
determination that any property has not acquired a situs in the
state, submit to the appropriate assessing officer documentary proof
of the in-transit character and the final destination of the
property.
Added by Laws 1988, c. 162, § 31, eff. Jan. 1, 1992.
§68-2832. Persons required to list property.
A. Property subject to ad valorem taxation shall, unless
otherwise provided, be listed for taxation by the owner thereof or
his duly authorized agent.
B. Property belonging to or controlled by the following shall be
listed by the following persons or their duly authorized agents:
1. A corporation or joint stock association, by an officer;
2. A partnership, by a partner;
3. A minor child or insane person, by the guardian or the person
having such property in charge;
4. A person for whose benefit it is held in trust, by the
trustee;
5. The estate of a deceased person, by the executor or
administrator;
6. A body politic or corporate, by the proper agent or officer
thereof;
7. Manufacturers and others in the hands of an agent, by such
agent in the name of the principal;
8. Persons, companies, or corporations whose assets are in the
hands of receivers, by such receiver; and
9. Merchandise consigned or floor-planned to a dealer by a
manufacturer or jobber, by the dealer.
C. A person required to list property in behalf of another shall
list it separately from his own, naming the person to whom it
belongs. The undivided property of a person deceased, belonging to
his heirs, may be listed as belonging to such heirs without
enumerating them.
Added by Laws 1988, c. 162, § 32, eff. Jan. 1, 1992.
§68-2833. Jointly owned property - Listing, assessment and taxation
- Taxes as lien.
A. If any real estate in this state is jointly owned by two or
more persons, or by tenants in common, and the interest of one or
more of such joint owners or tenants in common is subject to
taxation, and that of the others is not, then it shall be the duty of
the joint owners or tenants in common whose interests are subject to
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taxation to list such undivided interests for taxation at the time
and in the same manner as other taxable property is listed.
B. In any other case where the owner of an undivided interest in
real estate desires to have his interest separately assessed, he
shall list such undivided interest with the county assessor and
advise the county assessor of the name and amounts owned by other
owners of undivided interests in such real estate.
C. In either instance, it shall be the duty of the county
assessor to assess such undivided interest or interests for taxation
as other property. Such assessment shall be equalized, and taxes
levied and extended against the same, as other taxable property.
D. Such taxes shall be a lien on such interest and if same be
not paid and become delinquent, it shall be the duty of the county
treasurer to advertise and sell such interests as in the case of
other real property for delinquent taxes, and the purchasers at such
sale shall be entitled to certificate of purchase, and to a deed if
not redeemed, and all other rights and remedies as in cases of the
sale of other real estate for taxes. If any such interests in real
estate have been omitted or escaped taxation for any year or years
for which same was liable, it shall be the duty of all officers to
discover and assess the same for such omitted year or years the same
as other property which has been omitted or escaped taxation, and
such taxes shall be a lien and collected in the same manner and to
the same extent as other taxes on omitted property.
Added by Laws 1988, c. 162, § 33, eff. Jan. 1, 1992.
§68-2834. Subdivided land or lot - Surveying and platting.
A. Whenever a legal subdivision of land, or any lot or
subdivision, is owned by two or more persons in severalty and the
description of one or more parts or parcels thereof cannot, in the
judgment of the county assessor, be made sufficiently certain and
accurate for the purpose of assessment and taxation, without noting
the metes and bounds of the same, he shall make his report thereof to
the board of county commissioners of his county, setting forth the
description of the legal subdivision, with his request that the same
be surveyed and platted in conformity with this section.
B. When so requested the board of county commissioners shall
cause a survey and plat to be made of such tract of land by a
competent person selected by the board of county commissioners, which
plat shall describe said tract and any other subdivisions of the
smallest legal subdivision of which the same is a part, conforming as
nearly as possible to the present location of the separate lots,
parcels, subdivisions, highways and easements as shown by the records
of the county clerk and county assessor, numbering them by
progressive numbers, setting forth the courses and distances, the
number of acres, and such other memoranda as is necessary; and
description of such lots and subdivisions according to number and
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designation thereon as shown by said plat shall be deemed a
sufficient description for all purposes, inclusive of transfer, by
reference thereto.
C. Said plat shall be certified to by the person making the
survey as correct and when so certified shall be submitted to the
board of county commissioners for approval; and when endorsed with
the approval of the board it shall be signed and acknowledged by the
chairman thereof and filed for record with the county clerk and shall
be known as commissioners' plat of the tract or subdivision therein
designated, and when so executed and filed shall have the same effect
as if executed, acknowledged, and filed by the owners thereof.
D. Whenever each of the legal subdivisions comprising an entire
quarter section of land is so owned by two or more persons in
severalty, said entire quarter section may be ordered surveyed and
platted in one plat as provided by the preceding provisions of this
section.
E. The costs and expenses of such plat, survey and record shall
be ordered paid by the board of county commissioners out of the
county general fund.
Added by Laws 1988, c. 162, § 34, eff. Jan. 1, 1992.
§68-2835. Forms for listing and assessment of property.
A. On or before January 1 of each year, the Oklahoma Tax
Commission shall prescribe for the use of all county assessors,
suitable blank forms for the listing and assessment of all property,
both real and personal. Such forms shall contain such information
and instructions as may be necessary in order to obtain a full and
complete list of all taxable property and such forms shall be used
uniformly throughout the state. Any change in these forms must have
the approval of the Tax Commission.
B. It shall be the duty of the county assessor to furnish such
forms to any taxpayer upon request, and all personal property shall
be listed on such forms in the manner provided therein. Such lists
shall be signed and sworn to and filed with the county assessor not
later than March 15 of each year; and such lists may show the
description of real property, which may be by subdivision of quarter
sections, or less if any such subdivision is owned in less quantity,
describing such less quantity by United States Land Survey
nomenclature if that can be done, otherwise by metes and bounds,
according to ownership.
C. Real estate need not be listed by the taxpayer, but may be
listed if the taxpayer so desires, in which case the list shall show
the taxpayer's estimate of the value of each tract of land and shall
separately show the value of the buildings and improvements thereon.
D. All such sworn lists of property shall contain such other
information concerning both real and personal property as may be
required by such forms so prescribed.
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E. All such sworn lists of property, any other documents
produced by a taxpayer to the assessor or the board of equalization
during the informal and formal hearing process, or during discovery
in any ad valorem tax appeal in the Court of Tax Review or the
district court, shall be protected as confidential and shall not be
available for inspection under the Open Records Act.
Added by Laws 1988, c. 162, § 35, eff. Jan. 1, 1992. Amended by Laws
2000, c. 314, § 25, eff. July 1, 2000; Laws 2006, c. 272, § 18; Laws
2015, c. 263, § 1, emerg. eff. May 6, 2015.
§68-2836. County assessor to take lists - Meeting taxpayers -
Taxpayer failing to meet assessor - Receiving lists at assessor's
office - Penalty for failure to list.
A. The county assessor of each county in the state shall, on the
first day of January of each year, or as soon thereafter as may be
practicable, proceed to take a list of taxable property in the
county. In order to take lists of personal property and receive
homestead exemption applications, the county assessor, or the
assessor's deputy, shall meet the taxpayers at various places
throughout the county. The county assessor may exercise discretion
as to where to meet the taxpayers and how long to stay at each place,
provided the assessor goes to each city and incorporated town in
counties that have not abolished household personal property tax. At
least ten (10) days prior to the date the county assessor will meet
the taxpayers to list their property, the county assessor shall give
notice by publication in at least one newspaper of general
circulation in the county, stating the date and hours of the day of
each visit to each city, town or other place; and such notice may be
published in the manner of commercial advertising, rather than legal
notices, and the county may pay up to rates prevalent in the area for
commercial advertising.
B. If any taxpayer shall fail to meet the county assessor and
list the taxpayer's property on the date advertised, such taxpayer
may render a written list of all the taxpayer's personal property and
make written application for homestead exemption, and shall subscribe
and swear to the oath required by each taxpayer as to its
correctness. Such written lists or applications shall not constitute
a valid return or application unless made on the forms prescribed by
the Oklahoma Tax Commission and in the manner required by law.
C. After the county assessor shall have visited each city, town,
or other place, the county assessor shall be in the county assessor's
office at the county seat from March 1 to March 15, inclusive, for
the purpose of receiving lists from those who have not listed their
property for the current year, and all who fail to list all or any
part of their personal property for the current year, on or before
March 15, shall be delinquent. If any personal property is not
listed by the person whose duty it is to list such property on or
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before March 15 of any year, when such property is assessed there
shall be added to the assessed valuation of such property as a
mandatory penalty, amounts as follows:
1. If listed or assessed after March 15, but on or before April
15, ten percent (10%) of the assessed value; and
2. If listed or assessed after April 15, twenty percent (20%) of
the assessed value.
D. If the county assessor fails, neglects, or refuses to add the
valuation penalty as provided by this section, the county assessor
shall be liable on the county assessor's official bond for the amount
of the penalties.
Added by Laws 1988, c. 162, § 36, eff. Jan. 1, 1992. Amended by Laws
2012, c. 276, § 1, eff. Nov. 1, 2012.
§68-2837. Corporations - Assessment.
All corporations organized, existing or doing business in this
state, other than railroads, air carriers and public service
corporations assessed by the State Board of Equalization, and other
than national banks, state banks, trust companies, and building and
loan associations, shall be assessed upon the value of their real
property and personal property as listed separately by such
corporation and less the value of any property which may be relieved
of ad valorem taxation by the payment of an in lieu tax.
Added by Laws 1988, c. 162, § 37, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 3, eff. July 1, 1995.
§68-2838. Corporations - Lists or schedules of property - Tax
liability of property - Statement of capital stock, capital,
indebtedness and other financial information.
A. All corporations organized, existing or doing business in
this state, other than railroads, air carriers and public service
corporations assessed by the State Board of Equalization, and other
than national banks, state banks and trust companies, and building
and loan associations, shall, on or before March 15th of each year,
return sworn lists or schedules of their taxable property within each
county, to the county assessor of such county, and such property
shall be listed with reference to amount, kind and value, on the
first day of January of the year in which it is listed; and said
property shall be subject to taxation for county, municipal, public
school and other purposes to the same extent as the real and personal
property of private persons, in the taxing districts in which such
property is located. Any real estate owned by such corporation shall
be assessed annually at the same time and in the same manner as real
estate belonging to private persons. In making such sworn lists, all
corporations shall itemize their property in the same manner and to
the same extent as required by railroads, air carriers and public
service corporations.
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B. It shall be the duty of each corporation to make, under oath,
and deliver to the county assessor of the county where its principal
business is transacted, a statement on forms prescribed by the
Oklahoma Tax Commission, of its authorized capital stock and the
amount of capital paid thereon, the amount of its outstanding bonded
and other indebtedness, the total amount of its invested capital
within and without Oklahoma, and such other financial information as
may be deemed necessary to enable the county assessor to determine
the value of real or personal property owned by any such corporation;
and each corporation shall also deliver to the county assessor of the
county where its principal business is located, a copy of all lists
or schedules of property filed in every other county in this state.
Added by Laws 1988, c. 162, § 38, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 4, eff. July 1, 1995.
§68-2839. Statements of capital invested and other necessary
information - Neglect, failure or refusal to furnish information.
A. It shall be the duty of each taxpayer, upon written request
of the county assessor or the county board of equalization of any
county, to furnish, under oath, a written statement showing the
amount of capital invested in any plant, equipment, stock of
merchandise or material, or any other species of property located in
such county, and any other information which may reasonably be deemed
necessary to enable the county officials to assess the property of
such taxpayer at the fair cash value of such property. In any case
where such written statement is requested, the taxpayer shall have
ten (10) days from receipt of the written request within which to
prepare and furnish such statement under oath.
B. Should any taxpayer neglect, fail or refuse to make a proper
itemization of his property in any county, or neglect, fail or refuse
to furnish any other information required by this section, or Section
38 of this act, it shall be the duty of the county assessor or the
county board of equalization to ascertain, from the best information
obtainable, the value of the property of such taxpayer, and as a
penalty shall add ten percent (10%) of the value thereof so
ascertained. The penalty shall not be applied until the taxpayer
shall have had ten (10) days' notice of the intention to apply the
penalty and an opportunity to be heard.
Added by Laws 1988, c. 162, § 39, eff. Jan. 1, 1992.
§68-2840. County assessor to prepare, build and maintain certain
permanent records.
A. Each county assessor shall prepare, build and maintain
permanent records containing the following information:
1. The classification, grade and value of each tract of land
located outside cities and towns and platted subdivisions and
additions and the improvements thereon;
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2. The description and value of all lots and tracts and the
improvements thereon, and a list of lands that have been annexed to
any city or town, commencing with the lowest numbered section and the
different subdivisions and fractional parts thereof in the lowest
numbered townships in the lowest numbered range in the county, and
ending with the highest numbered section, township and range and the
improvements thereon; and
3. The information required herein to be shown on such permanent
records shall be shown as to tax exempt as well as taxable property,
and shall be in such forms as may be acceptable to the Oklahoma Tax
Commission. It shall not be necessary to place upon such records any
grade or value on land and improvements owned by the United States of
America, the State of Oklahoma or any subdivision thereof, or any
land and improvements exempt from ad valorem taxation by reason of
the same being used exclusively and directly for religious,
charitable, or educational purposes, such as churches, schools,
colleges, universities, cemeteries, and all lands owned by railroads,
air carriers, and public service corporations that are assessed by
the State Board of Equalization. Exempt Indian land and other exempt
property shall be valued and the value placed upon such records.
B. When the valuation of the real estate of each county has been
completed, as required by this section, it shall be the mandatory
duty of the county assessor and each of his successors in office, to
continuously maintain, revise and correct the records relating
thereto, and to continuously adjust and correct assessed valuations
in conformity therewith. Such maintenance, revision and correction
shall be made each year based upon the results of the calculations
required by law to be performed each year in order to determine the
fair cash value of all property within the county.
C. Each county assessor shall request in his budget request each
year sufficient funds to carry out the provisions of this section.
It shall be the mandatory duty of the several boards of county
commissioners, the several county excise boards, and the several
county budget boards each year to make sufficient appropriations to
enable the county assessor to perform the duties required of him by
this section. If any board of county commissioners, county excise
board, or county budget board fails, neglects or refuses, upon
written request of the county assessor, to provide adequate
appropriations for supplies, deputy hire or traveling expenses for
the performance of the duties imposed upon the county assessor by
this section, such appropriations may be obtained by mandamus action
instituted in district court by the county assessor or any other
county officer, or any taxpayer of the county.
D. The classification and valuation provided for by this section
shall be done under the supervisory assistance of the Oklahoma Tax
Commission. The forms used in such classification and valuation of
property shall be prescribed by the Oklahoma Tax Commission. Where
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the classification and valuation has already been completed, it shall
not be necessary for the county assessor to again make such
classification and valuation, except it shall be the duty of such
county assessor to continuously maintain, revise and correct the same
as required by this section.
Added by Laws 1988, c. 162, § 40, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 5, eff. July 1, 1995.
§68-2841. Land list.
Each county assessor in the state shall prepare and keep a book
to be known as a "land list", which shall contain:
1. The name of the owner and a description, sufficient for
identification of all real estate in the county, with the number of
acres and value of the land and the value of the improvements;
2. The number of the lot or lots;
3. The name of the city or town;
4. The value of the city or town lots; and
5. The value of the improvements.
Provided, in those counties in this state which have approved an
exemption of household goods of the heads of families and livestock
employed in support of the family from ad valorem taxation pursuant
to the provisions of subsection (b) of Section 6 of Article X of the
Oklahoma Constitution, the county assessor may, in preparation of the
land list, combine the value of land and improvements thereon. The
county assessor shall correct the land list each year before
commencing the assessment by noting thereon all transfers of record
as shown by the office of county clerk, and shall note thereon such
transfers as may be brought to the attention of the assessor while
assessing, and also note thereon what real estate is not subject to
taxation and the reason therefor. The land list shall be in such
form as may be acceptable to the Oklahoma Tax Commission.
Added by Laws 1988, c. 162, § 41, eff. Jan. 1, 1992. Amended by Laws
1998, c. 405, § 5, eff. Nov. 1, 1998.
§68-2842. Assessment roll - Form - Content - Adjustments - Annual
report.
A. Each county assessor in the state shall annually prepare an
assessment roll, which shall be in such form as may be prescribed by
the Oklahoma Tax Commission and shall contain the following:
1. A list of all lands in the county in numerical order
beginning with the lowest numbered section, in the lowest numbered
township in the lowest numbered range in the county, and ending in
the highest numbered section, township and range, with the number of
acres in each tract, and the numbers of the school districts in which
such lands are located, and the name and address of the owner in each
instance excepting unplatted lands located inside a city or town;
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2. A list of town lots in each town or city in like numerical
order and the unplatted lands located inside each city and town, in
numerical order beginning with the lowest numbered section in the
lowest numbered township and range with the number of acres in each
tract, and the number of the school district in which such lots or
tracts are located, and the name and address of the owner in each
instance;
3. A list in alphabetical order of all persons and bodies
corporate in whose names any personal property has been assessed, the
address of each such taxpayer, the number of the school district in
which such property is taxable, with a sufficient number of columns
opposite each name to enter the value, and where practicable the
number of the several classes of property assessed to each property
owner;
4. The value fixed by the county assessor of all property; and
additional columns to show the equalized value as fixed by the State
Board of Equalization. In listing real estate the value of land and
improvements shall be shown separately in each instance; provided, in
those counties in this state which have approved an exemption of
household goods of the heads of families and livestock employed in
support of the family from ad valorem taxation pursuant to the
provisions of subsection (b) of Section 6 of Article X of the
Oklahoma Constitution, the county assessor may, in preparation of the
assessment roll, combine the value of land and improvements thereon;
and
5. Such other information as may be required by the Tax
Commission. Each property in which there is a homestead interest
shall be entered on a separate line, and the assessment roll shall
show the total assessed valuation of each homestead, the amount of
exemption allowed, and the assessed valuation less the exemption.
B. The assessment roll shall be available electronically to the
county board of equalization while the board is in session, in order
that the board may correct and adjust the taxable value of the
property of the county. If there should be any lawful adjustments
necessary, the board shall inform the county assessor in writing on a
form prescribed by the Oklahoma Tax Commission.
C. Prior to November 1 each year, the county assessor shall
submit on a form prepared by the Tax Commission a report to the Tax
Commission which states the net assessed valuation and millage levy
of each political subdivision or taxing authority of the state that
is authorized to levy a property tax regardless of whether such
property tax is actually levied.
Added by Laws 1988, c. 162, § 42, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 11, operative Jan. 1, 1992; Laws 1998, c. 405, § 6,
eff. Nov. 1, 1998; Laws 2005, c. 116, § 5, eff. Nov. 1, 2005.
§68-2843. Unlisted personal property - Discovery and assessment.
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A. If any personal property is not listed with the county
assessor on or before March 15th of any year, the county assessor
shall proceed, as soon as the omission is discovered, to ascertain
and estimate from the best information obtainable, the amount and
value of such property, and shall list and assess the same in the
name of the owner thereof if such owner be known. If the owner is
unknown the property may be listed and assessed in the name of the
person in charge of such property as agent, or it may be listed and
assessed to "unknown owner"; and the failure of the county assessor
to ascertain the true owner shall not invalidate the assessment.
B. If any person, firm, association or corporation has any
property belonging to others under his control or charge or in his
possession, as warehouseman, factor, bailee, agent, employee or
otherwise, he shall, upon written request of the county assessor or
county board of equalization, make report, under oath, of the amount
and ownership of such property, and upon refusal, neglect or failure
to make such report, such person, firm, association or corporation
shall be personally liable for the taxes on such property.
C. No assessment of personal property not listed with the county
assessor shall become final until ten (10) days after the county
assessor has mailed to the last-known address of the person, firm,
association, corporation or company he believes to be the owner, or
to the person in charge of such property, a copy of the assessment
sheet upon which such property is listed, and which assessment sheet
shall show a reasonable itemization and description of the property
assessed and the value thereof, and shall show that the list and
assessment was made by the county assessor.
Added by Laws 1988, c. 162, § 43, eff. Jan. 1, 1992.
§68-2844. Omitted property - Entry on assessment rolls and tax rolls
- Assessments - Arrearages - Taxing during current year.
A. If any real, personal, railroad, air carrier or public
service corporation property is omitted in the assessment of any
prior year or years, and the property thereby escapes just and proper
taxation, at any time and as soon as such omission is discovered, the
county assessor or the county board of equalization, or the State
Board of Equalization in the case of public service corporation
property or railroad and air carrier property, whose duty it is to
assess the class of property which has been omitted, shall at any
time cause such property to be entered on the assessment rolls and
tax rolls for the year or years omitted, not to exceed the last
fifteen (15) years as to real property and the last three (3) years
as to personal property, and shall, after reasonable notice to the
parties affected, in order that they be heard, assess such omitted
property for said periods and cause to be extended against the same
on the tax rolls for the current year all arrearage of taxes properly
accruing against it, including therein interest thereon at the rate
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of twelve percent (12%) per annum from the time such tax should have
become delinquent.
B. If any tax on property subject to taxation is prevented from
being collected for any year or years by reason of any erroneous
proceedings, or failure to give notice, or otherwise, the amount of
such tax which such property should have paid or should have been
paid thereon shall be added to the tax on such property for the
current year, and if for want of sufficient time or for any cause
such assessment cannot be entered, and the tax thereon extended on
the tax rolls for the current year, the same shall be done the
following year.
Added by Laws 1988, c. 162, § 44, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 6, eff. July 1, 1995; Laws 2005, c. 116, § 6, eff.
Nov. 1, 2005; Laws 2006, c. 272, § 19, eff. Nov. 1, 2006.
§68-2845. Assessment of unassessed real estate.
When any real estate has failed to be assessed for ad valorem
taxes for any prior year or years, the same shall be assessed for ad
valorem taxes for said prior year or years by the county assessor,
and the taxes thereupon may be paid without the payment of any
penalty or interest accruing prior to the date of assessment,
provided that all taxes are paid within thirty (30) days after the
date of such assessment and the sending of written notice thereof. If
not so paid within said thirty (30) days, it shall be the duty of the
county treasurer to collect the same in the manner provided by law,
together with penalty at the lawful rate calculated from the date the
same would have been delinquent had it been timely assessed, but in
no event to an extent greater than one hundred percent (100%) of the
principal amount thereof and not to exceed fifteen (15) years.
Added by Laws 1988, c. 162, § 45, eff. Jan. 1, 1992.
§68-2846. Undervalued and underassessed property - Reassessment.
A. Whenever real or personal property has in any year, through
false representations or concealments willfully and fraudulently made
by the owner or agent in listing the same for assessment, been
grossly undervalued and has escaped for that year just and proper
taxation, the county assessor or the State Board of Equalization,
whose duty it is to assess such class of property shall, at any time
within two (2) years from the date of such original undervaluation,
cause such property to be entered on the assessment roll and tax
books for the year or years so undervalued.
B. After reasonable notice to the party affected, in order that
he may be heard, the county assessor or State Board of Equalization
shall reassess such undervalued property and cause same to be
extended against such property on the tax list or rolls for the
current year, with all arrearage of taxes thus properly accruing
against it, including interest thereon at the rate of six percent
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(6%) per annum from the time such tax should have become delinquent.
C. As to such property so grossly undervalued in assessment no
contract shall be made with anyone by either the State Board of
Equalization, or the board of county commissioners, to pay anyone a
commission or in any way causing same to be reassessed; but it shall
be the duty of the State Board of Equalization, with the assistance
of the Attorney General and the county assessor, with the assistance
of the district attorney, to make and cause such reassessment to be
made.
Added by Laws 1988, c. 162, § 46, eff. Jan. 1, 1992.
§68-2847. Property of railroads, air carriers and public service
corporations - Valuation and assessment.
A. The property of all railroads, air carriers and public
service corporations shall be assessed annually by the State Board of
Equalization at its fair cash value estimated at the price it would
bring at a fair voluntary sale.
B. Taxable values of real and personal property of all
railroads, air carriers and public service corporations shall be
established in accordance with the requirements of Section 8 of
Article X of the Oklahoma Constitution. The State Board of
Equalization shall determine the taxable value of all taxable
property that the Board is required by law to assess and value, and
shall determine such taxable value in accordance with the
requirements of Section 8 of Article X of the Oklahoma Constitution.
C. The State Board of Equalization shall assess the property of
that subclass of public service corporations known as video services
providers, as defined in Section 2808 of this title, as provided:
1. Every video services provider shall file with the State Board
of Equalization a certification regarding total gross receipts for
the immediate preceding calendar year by April 15 and shall specify
the total gross receipts derived from video programming services;
2. The State Board of Equalization shall determine the
percentage of gross receipts the video services provider has derived
from video programming in the immediately preceding calendar year;
and
3. The percentage determined pursuant to paragraph 2 of this
subsection shall be applied to the taxable fair cash value allocated
to Oklahoma, and the resulting fair cash value attributable to video
programming services shall be assessed using the statewide average of
the assessment ratios applied to the assets of cable television
companies in that tax year. Unless the taxpayer or the State Board
of Equalization demonstrates otherwise, the statewide average
assessment ratio applied to the personal property of a cable
television company shall be assumed to be twelve percent (12%).
D. The percentage of fair cash value for real and personal
property of railroads, air carriers and public service corporations
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required by the Oklahoma Constitution to be taxable shall be the
percentage at which it was assessed on January 1, 1996, in accordance
with the provisions of paragraph 3 of subsection A of Section 8 of
Article X of the Oklahoma Constitution, and, subject to the
requirements of federal law, shall be uniformly applied to calculate
the taxable values of public service corporation property within the
state for the applicable assessment year.
Added by Laws 1988, c. 162, § 47, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 7, eff. July 1, 1995; Laws 1997, c. 304, § 6, emerg.
eff. May 29, 1997; Laws 2009, c. 119, § 2, eff. Jan. 1, 2010.
§68-2848. Railroads, air carriers and public service corporations -
Sworn lists or schedules.
A. Every railroad, air carrier and public service corporation
organized, existing, or doing business in this state, shall, on or
before April 15 of each year, return sworn lists or schedules of its
taxable property to the Oklahoma Tax Commission as provided by law,
or as may be required by the Commission; and such property shall be
listed with reference to the amount, kind, and value as of the first
day of January of the year in which it is listed; and said property
shall be subject to taxation for county, municipal, public school and
other purposes to the same extent as the real and personal property
of individuals.
B. The Oklahoma Tax Commission may request certain financial
data be included on any statement or schedule including, but not
limited to:
1. The amount of capital stock authorized, and the number of
shares into which such capital stock is divided;
2. The amount of capital stock paid up;
3. The market value of such stock, or if no market value, then
the actual value of the shares of stock; and
4. The total amount of bonded indebtedness.
Added by Laws 1988, c. 162, § 48, eff. Jan. 1, 1992. Amended by Laws
1988, c. 258, § 6, emerg. eff. June 27, 1988; Laws 1995, c. 57, § 8,
eff. July 1, 1995.
§68-2849. Repealed by Laws 1988, c. 258, § 7, emerg. eff. June 27,
1988.
§68-2850. Transmission companies - Sworn lists or schedules.
Every transmission company doing business in this state shall
return sworn lists or schedules of its taxable property to the
Oklahoma Tax Commission, and such lists or schedules shall show the
total length of line in each county, school district or other
subdivision of the state, total number of wires to each line and
total number of poles per mile, the total number of instruments in
each municipal subdivision, the total amount of office furniture and
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the total amount of tools, and material, the total amount of other
property, and the location thereof.
Added by Laws 1988, c. 162, § 50, eff. Jan. 1, 1992.
§68-2851. Pipeline companies - Sworn statement or schedule.
A. Each pipeline company doing business in this state shall
return to the Oklahoma Tax Commission a sworn statement or schedule
as follows:
1. The right-of-way and main line, giving the entire length of
main line in this and other states, showing the size of pipe and
showing the proportion in each city, school district, and county, and
the total in this state;
2. The total length of each lateral or branch line and the size
of the pipe, together with the name of each city, school district,
and county in which such lateral and branch lines are located;
3. A complete list giving location as to city, school district
or county of all pumping stations, storage depots, machine shops, or
other buildings together with all machinery, tools, tanks and
material;
4. A statement or schedule showing the amount of its authorized
capital stock and the number of shares into which the same is
divided; the amount of capital stock paid up; the market value of
such stock, or if it has no market value, then the actual value
thereof, and the total amount of outstanding bonded indebtedness; and
5. A correct detailed statement of all other personal property,
including oil in storage, and giving the location thereof.
B. Notwithstanding the provisions of Section 205 of this title,
the Tax Commission shall provide the assessor for each county listed
in the report, required by this section, schedules which detail
descriptions and corresponding values by taxing jurisdiction of all
pipeline company property listed in such reports to ensure that
property is reported for, and resulting tax revenues are attributed
to, the correct city, school district and county where taxable
property is located.
Added by Laws 1988, c. 162, § 51, eff. Jan. 1, 1992. Amended by Laws
2015, c. 285, § 1, eff. Nov. 1, 2015.
§68-2851.2. Task Force on Valuation of Gas Gathering System Assets.
A. There is hereby created the “Task Force on Valuation of Gas
Gathering System Assets”.
B. The Task Force shall consist of six (6) members to be
appointed as follows:
1. Three members shall be appointed by the Speaker of the
Oklahoma House of Representatives from the membership of the House;
and
2. Three members shall be appointed by the President Pro Tempore
of the Oklahoma State Senate from the membership of the Senate.
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C. The Speaker of the Oklahoma House of Representatives shall
designate one of the Speaker's appointees as a cochair. The
President Pro Tempore of the Oklahoma State Senate shall designate
one of the Pro Tempore's appointees as a cochair. The Task Force
shall conduct an organizational meeting not later than August 31,
2002.
D. The Task Force shall conduct a study of the valuation of gas
gathering system assets for purposes of ad valorem taxation. The
study shall include:
1. The valuation methods currently used for gas gathering
systems;
2. The methods used to determine whether gas gathering system
assets are subject to the jurisdiction of a county assessor or the
State Board of Equalization for purposes of valuation and assessment;
3. Existing opinions of the courts of the State of Oklahoma
governing the valuation and assessment of gas gathering system assets
or such other materials, cases, opinions or determinations that may
be relevant to the study; and
4. Other matters as may be pertinent to the study and
recommendations of the Task Force as the Task Force deems relevant.
E. The Task Force shall not be subject to the Oklahoma Open
Meeting Act or to the Oklahoma Open Records Act.
F. The Task Force shall be authorized to meet at such times as
may be required in order to fulfill the duties imposed upon the Task
Force by law. Members of the Task Force shall be reimbursed for
their necessary travel expenses incurred in the performance of their
duties in accordance with Section 456 of Title 74 of the Oklahoma
Statutes.
G. Staff assistance for the Task Force shall be provided by the
Oklahoma House of Representatives and the Oklahoma State Senate.
H. The Task Force shall complete its study not later than
December 31, 2007.
Added by Laws 2002, c. 265, § 1, emerg. eff. May 17, 2002. Amended
by Laws 2003, c. 462, § 3, eff. July 1, 2003; Laws 2006, c. 272, §
20.
§68-2851.3. Valuation methodology of gas gathering system assets –
Local or central assessment – Changes.
A. Effective January 1, 2003, there shall be no changes in the
valuation methodology of gas gathering system assets.
B. Effective January 1, 2003, there shall be no changes in the
determination of whether gas gathering system assets are locally
assessed or centrally assessed and the treatment of such assets for
the January 1, 2002, assessment year shall be maintained and
preserved.
Added by Laws 2002, c. 265, § 2, emerg. eff. May 17, 2002.
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§68-2852. Gas, light, heat and power companies - Sworn statement.
All gas, light, heat and power companies shall annually return to
the Oklahoma Tax Commission a sworn statement showing the size and
total length of pipe owned by such company and the location thereof,
giving the county, city and school district; a statement of
franchises held by such company from any municipal corporation in
this state, the length of time the same are to run, and the
conditions under which they were granted; and a statement of all
buildings and other permanent improvements, pumping stations, tools,
material and other personal property, and the location thereof.
Added by Laws 1988, c. 162, § 52, eff. Jan. 1, 1992.
§68-2853. Electric light and power companies - Statement under oath.
Electric light and power companies doing business in this state
shall return to the Oklahoma Tax Commission a statement under oath,
showing size, capacity, location and value of each powerhouse or
power plant owned by such company, the total amount of poles, wire
and other equipment for the transportation or transmission of light,
heat and power; the total amount of its authorized capital stock and
the amount actually paid up thereon, the total amount of its
outstanding bonded indebtedness; all contracts between such
corporation and any municipal corporations of this state, and the
amount of revenue derived therefrom; any franchises owned or held by
such company, and granted by any municipal corporation of this state;
and cash on hand and the location thereof.
Added by Laws 1988, c. 162, § 53, eff. Jan. 1, 1992.
§68-2854. Waterworks and power companies - Sworn return.
Each waterworks and power company doing business in this state,
shall file with the Oklahoma Tax Commission a sworn return, giving
size, capacity, location and value of its pumping stations, and all
other permanent improvements used in connection therewith, the total
length and size of pipe and other means used for conducting and
conveying water; total number of hydrants and the rental thereof; the
total amount of its authorized capital stock and the amount actually
paid thereon; total amount of its outstanding indebtedness; total
amount of tools, material and other personal property, including cash
on hand, and the location thereof.
Added by Laws 1988, c. 162, § 54, eff. Jan. 1, 1992.
§68-2855. Sleeping-car and parlor-car companies - Statement under
oath - Valuation and assessment.
Every sleeping-car company and parlor-car company engaged in
business in this state shall file with the Oklahoma Tax Commission a
statement under oath, showing the aggregate number of miles made by
cars operated by such company over the several lines of railroad in
this state during the fiscal year next preceding the date of such
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statement; the total number of cars owned by such company and the
total value thereof and the average number of miles traveled by cars
of the particular class covered by the statement in the ordinary
course of business during the fiscal year, and it shall be the duty
of the State Board of Equalization to ascertain the number of cars
required to make the total mileage of cars of such corporation within
the period of one (1) year. Said Board shall ascertain and fix a
valuation upon each particular class of said cars, and the number so
ascertained to be required to make the total mileage of the cars of
each such corporation, within the period of one (1) year, shall be
assessed to the respective corporations, and such assessment shall be
included in the record of the proceedings of the Board and shall be
certified by the State Auditor and Inspector to the county clerks of
the several counties of the state wherein such cars are operated in
the same manner as property of the other railroads, air carriers and
public service corporations is certified and returned.
Added by Laws 1988, c. 162, § 55, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 9, eff. July 1, 1995.
§68-2856. Express companies - Statement under oath - Assessment.
A. Every express company doing business in this state shall file
with the Oklahoma Tax Commission a statement under oath, which shall
include a duplicate of the report made by said company to the
Interstate Commerce Commission of its assets, income, disbursements
and business for the year ending on the thirty-first day of December
of the preceding year.
B. Each statement shall also contain the following items, or
such of them as may not be covered by the information contained in
the report to the Interstate Commerce Commission, and which said item
shall be reported as the same existed on the thirty-first day of
December of the preceding year:
1. The total net assets of the company, as the same are carried
upon the books of the company;
2. The total net assets of the company invested in or pertaining
to business other than the express business, as such assets are
carried upon the books of the company;
3. The total net assets of the company pertaining to or invested
in its express business, as the same are carried upon the books of
the company;
4. The amount of the capital stock of the company and the number
of shares into which the same is divided, or if the company has no
capital stock, then the number of shares or interests into which it
is divided, together with the value placed upon each share, or
interest, for bookkeeping purposes;
5. The market value of the share of the capital stock, or of the
shares or interest of the company, which market price shall be
determined by the average price at which such shares of the capital
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stock or shares or interest of the company shall have been sold
during the year upon the New York Stock Exchange, or if such shares
or interest of the company are not listed upon the New York Stock
Exchange, then the average price at which the same have been sold
during the year upon all other stock exchanges;
6. The total mileage, other than ocean mileage, over which the
company conducts an express business; and
7. The mileage over which the company conducts an express
business in this state, the mileage in each county of the state, and
the mileage in each taxing district of each county of the state.
C. In assessing any express company, the State Board of
Equalization may determine the value of all property of such company
pertaining to or employed in its express business, and allocate to
Oklahoma its proportion of the total value upon any just and
reasonable basis. The total assessment for the state shall then be
allocated to the various counties, and municipal subdivisions
thereof, in the proportion which the mileage of the express company
in such counties and subdivisions bears to the total mileage of such
company in this state. Where an express company has an office or
other taxable property in a county or other taxing district in which
it has no operated mileage, such property shall be listed and
assessed in the county and taxing district where located on January
1.
Added by Laws 1988, c. 162, § 56, eff. Jan. 1, 1992.
§68-2857. Railroad, air carrier or public service corporation -
Failure or refusal to make statements or schedules - Ascertainment of
value - Penalty.
A. Should any railroad, air carrier or public service
corporation doing business in this state fail or refuse to file the
statements or schedules with the Oklahoma Tax Commission within the
time and manner required by law, it shall be the duty of the State
Board of Equalization to ascertain from the best information
obtainable the value of the property of such company. The Tax
Commission may grant an extension without penalty, upon written
request of the taxpayer and for a good cause, of not to exceed
fifteen (15) days for the filing of the returns as required by the Ad
Valorem Tax Code.
B. There shall be assessed by the State Board of Equalization an
administrative penalty for every day which a railroad, air carrier or
public service corporation doing business in this state fails or
refuses to file the statements or schedules with the Tax Commission
within the time and manner required by law in the lesser of the
amount of Two Hundred Dollars ($200.00) per day for each county in
which such entity has property subject to ad valorem tax or one
percent (1%) of the assessed value. The State Board of Equalization
shall be responsible for collecting this penalty and shall remit
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fifty percent (50%) of such penalty to the county general fund of the
counties in which such entity has property subject to ad valorem tax.
Fifty percent (50%) of such penalty shall be deposited in the General
Revenue Fund.
Added by Laws 1988, c. 162, § 57, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 10, eff. July 1, 1995; Laws 1998, c. 405, § 7, eff.
Jan. 1, 1999; Laws 2000, c. 314, § 26, eff. July 1, 2000.
§68-2858. Railroad, air carrier and public service corporation -
Findings as to assessment - Powers, duties and authority of Tax
Commission relating to assessment - Discovery and inspection of
personal property.
A. The Oklahoma Tax Commission shall make its findings as to the
assessment of all railroad, air carrier and public service
corporation property; and such findings shall, on or before the third
Monday of June of each year, be presented to the State Board of
Equalization as recommendations for its final action under Section 21
of Article X of the Oklahoma Constitution. A copy of the Oklahoma
Tax Commission's letter of transmittal of its findings shall, at such
time, be furnished each member of said Board.
B. All duties, powers and authority of all officers and agencies
of the state, relating to the assessment of railroad, air carrier and
public service corporation property, which have been conferred upon
them and vested in them, by law, are hereby transferred to, conferred
upon and vested in, the Oklahoma Tax Commission; excepting only the
duties, powers and authority of the State Board of Equalization, as
fixed and defined by Section 21 of Article X of the Oklahoma
Constitution.
C. In the performance of its duties, as prescribed by this
section, the Oklahoma Tax Commission, or any duly authorized
representative thereof, shall have the power to administer oaths, to
conduct hearings and to compel the attendance of witnesses and the
production of the books, records and papers of any person, firm,
association, or corporation, and to enter any business or commercial
premises and inspect the property of the taxpayer.
D. Prior to entering the business or commercial premises of any
taxpayer for purposes of discovering personal property, the Oklahoma
Tax Commission shall request permission to enter the business or
commercial premises and shall state the reason for the inspection.
If access to the business or commercial premises is denied, the
Oklahoma Tax Commission shall be required to obtain a search warrant
in order to conduct an inspection of the interior of the business or
commercial premises. A search warrant may be obtained upon a showing
of probable cause that personal property located within particularly
described business or commercial premises is subject to ad valorem
taxation, but not listed or assessed for ad valorem taxation as
required by law.
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Added by Laws 1988, c. 162, § 58, eff. Jan. 1, 1992. Amended by Laws
1989, c. 152, § 6, eff. Jan. 1, 1992; Laws 1995, c. 57, § 11, eff.
July 1, 1995.
§68-2859. Railroads, air carriers and public service corporations -
Returns not conclusive as to value or amount of property - Duties,
power and authority of State Board of Equalization.
A. The returns of railroads, air carriers and public service
corporations shall not be conclusive as to the value or amount of any
property. The State Board of Equalization shall have the authority
and it shall be its duty to raise or lower the returned value:
1. Of any personal property, to conform to the fair cash value
thereof, estimated at the price it would bring at a fair voluntary
sale; or
2. Of any real property at not to exceed its fair cash value for
the highest and best use for which such property is actually used or
classified for use.
B. It shall be the duty of the State Board of Equalization, with
the assistance of the Oklahoma Tax Commission, to do all things
necessary to enable it to assess and value all taxable property of
railroads, air carriers and public service corporations, discover
omitted property, and determine the taxable status of any property
which is claimed to be exempt from ad valorem taxation for any
reason.
C. In the performance of its duties, as prescribed by this
section, the State Board of Equalization, or any duly authorized
representative thereof, shall have the power to administer oaths, to
conduct hearings, and to compel the attendance of witnesses and the
production of the books, records and papers of any person, firm,
association, or corporation; and to enter any business or commercial
premises and inspect the property of the taxpayer.
D. Prior to entering the business or commercial premises of any
taxpayer for purposes of discovering personal property, the State
Board of Equalization shall request permission to enter the business
or commercial premises and shall state the reason for the inspection.
If access to the business or commercial premises is denied, the State
Board of Equalization shall be required to obtain a search warrant in
order to conduct an inspection of the interior of the business or
commercial premises. A search warrant may be obtained upon a showing
of probable cause that personal property located within particularly
described business or commercial premises is subject to ad valorem
taxation, but not listed or assessed for ad valorem taxation as
required by law.
Added by Laws 1988, c. 162, § 59, eff. Jan. 1, 1992. Amended by Laws
1989, c. 152, § 7, eff. Jan. 1, 1992; Laws 1995, c. 57, § 12, eff.
July 1, 1995.
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§68-2860. Railroads, air carriers and public service corporations -
Certification of assessed valuations.
A. The State Board of Equalization, after having assessed all
property of railroads, air carriers and public service corporations
in this state according to the provisions of the Ad Valorem Tax Code,
shall cause the assessed valuations to be certified by the State
Auditor and Inspector to the county assessors of each county in which
any portion of the property of any such railroad, air carrier or
public service corporation may be located. Such certificates of
assessment shall show the various portions of the property of such
corporations located and taxable in each county, and in every city,
town, school district or other municipal subdivision thereof, and
shall include a full statement of all property of such corporations
located in each of the said several subdivisions, together with the
assessed value thereof. Said valuations shall be certified by the
State Auditor and Inspector to the assessors of the several counties
wherein such property is located on or before July 31 of each year.
B. The county assessor shall enter on his assessment roll in its
appropriate place the assessed valuation of each railroad, air
carrier and public service corporation, and at the proper time, place
such assessment on the proper tax roll of his county, subject to the
levies as provided by law.
Added by Laws 1988, c. 162, § 60, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 13, eff. July 1, 1995; Laws 2001, c. 358, § 20, eff.
July 1, 2001.
§68-2861. County boards of equalization - Creation - Membership -
Appointment - Term - Qualifications - Secretary and clerk - Conflicts
and disputes - Unlawful acts - Penalty.
A. A county board of equalization is hereby created for each
county in the state. Said board shall consist of three (3) members.
B. Members of the county board of equalization shall be
appointed as follows:
1. One member shall be appointed by the Oklahoma Tax Commission;
2. One member shall be appointed by the board of county
commissioners; and
3. One member shall be appointed by the district judge or a
majority of the district judges in all judicial districts where more
than one district judge is elected.
C. The tenure of office of each county board of equalization
member shall be coterminous with that of the first county
commissioner district and the third county commissioner district.
D. The qualifications of the members of the county board of
equalization shall be as follows:
1. The member must be a qualified elector and resident of the
county;
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2. The member may not hold an elected office of the state,
county, school district or municipal subdivision;
3. The member may not file for any elected office of the state,
county, school district or municipal subdivision without first
resigning from the county board of equalization; and
4. Not more than one member shall live in any one county
commissioner's district; provided, any member serving on the
effective date of this act may continue to serve until completion of
the member's tenure of office pursuant to the provisions of
subsection C of this section notwithstanding the provisions of this
paragraph.
E. The county clerk shall serve as secretary and clerk of said
board without additional compensation.
F. If there is a conflict or dispute as to the membership, the
eligibility of any appointee for membership, the priority of an
appointment or appointments, one as opposed to another, or the right
of any appointee to serve in any county commissioner's district,
then, such conflict or dispute shall be resolved by a determination
and order of the Oklahoma Tax Commission.
G. It shall be unlawful for any member of the county board of
equalization to sell or contract to sell, or to lease or contract to
lease, or to represent any person, firm, corporation or association
in the sale or the lease of any machinery, supplies, equipment,
material, or other goods, wares, or merchandise to any county or city
or town of the county. It shall also be unlawful for any member of
the county board of equalization to serve as employee, official, or
attorney for any county or city, or town of the county, or for any
such member to represent any taxpayer before the board in any manner,
or to use the position as a board member to further the member's own
interests. It shall also be unlawful for any taxpayer or interested
party to employ any member of the county board of equalization in any
matter coming before the board.
H. Any person violating any of the provisions of this section
shall be deemed guilty of a felony, and upon conviction thereof shall
be punished by a fine of not less than Two Hundred Dollars ($200.00)
and not more than One Thousand Dollars ($1,000.00) or by imprisonment
in the State Penitentiary for not less than six (6) months or more
than two (2) years, or by both such fine and imprisonment.
I. Any action taken by a county excise board after August 24,
1989, and before May 30, 1990, are hereby declared to be official
actions of a duly constituted county excise board.
Added by Laws 1988, c. 162, § 61, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 12; Laws 1990, c. 322, § 1, emerg. eff. May 30, 1990;
Laws 1995, c. 117, § 1, eff. July 1, 1995; Laws 1997, c. 133, § 565,
eff. July 1, 1999; Laws 1999, 1st Ex.Sess., c. 5, § 410, eff. July 1,
1999.
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NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 565 from July 1, 1998, to July 1, 1999.
§68-2862. County board of equalization members - Oath - Training
course - Compensation.
A. The members of the county board of equalization for each
county in the state, before entering upon their duties, shall
subscribe to the oath required of other county officers.
B. Each member of the county board of equalization shall be
required to attend and successfully complete a course for purposes of
instructing the members about the duties imposed on the board by law.
The course shall be developed by the Oklahoma State University Center
for Local Government Technology and shall include subjects similar to
those prescribed by law for certification of county assessors and
their deputies. Failure of a county board of equalization member to
successfully complete such course within eighteen (18) months of the
date as of which the member was appointed shall result in forfeiture
of the office and the vacancy shall be filled in the manner provided
by law. In addition to the initial training requirement, each member
of the county board of equalization shall attend and successfully
complete the same or a similar course of instruction developed by the
Oklahoma State University Center for Local Government Technology
within eighteen (18) months of any subsequent term to which the
member is appointed. Failure of a county board of equalization
member to complete such course of instruction shall result in
forfeiture of office and the vacancy shall be filled in the manner
provided by law.
C. The members of county boards of equalization in all counties
having an assessed valuation of Two Billion Dollars
($2,000,000,000.00) or more shall receive as compensation an amount
not to exceed Seventy-five Dollars ($75.00) per day. The members of
county boards of equalization in all other counties may receive as
compensation an amount not to exceed Fifty Dollars ($50.00) per day,
such amount to be established by the boards.
D. In addition to the amounts specified in subsection C of this
section, members of county boards of equalization shall be reimbursed
for each mile of travel to and from their residences to the place of
meeting of the board for each session attended at the rate provided
for other county officers. The members shall also be reimbursed for
each mile of necessary travel in the performance of their official
duties at the same rate.
E. The total number of days in each year for which the members
of a county board of equalization may be paid shall be as follows:
1. In counties having an assessed valuation of Forty Million
Dollars ($40,000,000.00) or less, not to exceed forty (40) days;
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2. In counties having an assessed valuation of more than Forty
Million Dollars ($40,000,000.00) and not more than Eighty Million
Dollars ($80,000,000.00), not to exceed forty-five (45) days; and
3. In counties having an assessed valuation of more than Eighty
Million Dollars ($80,000,000.00), not to exceed ninety (90) days.
Added by Laws 1988, c. 162, § 62, eff. Jan. 1, 1991. Amended by Laws
1997, c. 304, § 7, emerg. eff. May 29, 1997; Laws 1999, c. 134, § 3,
emerg. eff. April 28, 1999; Laws 1999, c. 187, § 1, eff. Nov. 1,
1999; Laws 2000, c. 64, § 1, eff. July 1, 2000; Laws 2007, c. 172, §
1, eff. Nov. 1, 2007; Laws 2016, c. 51, § 1, eff. Nov. 1, 2016.
§68-2863. County board of equalization - Sessions - Purpose -
Special sessions - Duties and authority - Hearing officers.
A. The county boards of equalization shall hold sessions
commencing on April 1, or the first working day thereafter, and
ending not later than May 31, for the purpose of correcting and
adjusting the assessment rolls in their respective counties to
conform to the fair cash value of the property assessed, as defined
by law. However, in counties having an assessed valuation in excess
of One Billion Dollars ($1,000,000,000.00), sessions shall commence
on the fourth Monday in January and end not later than May 31. If
the number of appeals pending would in the estimation of the board
make it impracticable for the county board of equalization to
complete hearing and adjudication of such appeals on or before May
31, a special session may be called, for such time as is necessary to
complete consideration of the appeals, subject to the approval of the
county budget board, between June 1 and no later than July 31. Such
approval of the county budget board must be requested no later than
May 15. The county board of equalization may meet in special session
between March 1 and March 31 for the purpose of considering appeals
pending on or before the date of notice of such special session, if
the number of appeals pending would in the estimation of the board
make it impracticable for the county board of equalization to
complete hearing and adjudication of such appeals on or before May
31. At any such special session called between March 1 and March 31,
the board shall conduct no other business than the hearing or
adjudication of such appeals pending pursuant to the provisions of
Section 2801 et seq. of this title. Except for special sessions, the
meetings of each board shall be called by the chair or, in the event
of the refusal or inability of the chair, by a majority membership of
the board. The secretary of the board of equalization shall fix the
dates of the extended special session hearings provided for in this
section.
B. It shall be the duty of the boards and they shall have the
authority to:
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1. Raise or lower appraisals to conform to the fair cash value
of the property, as defined by law in response to an appeal filed as
prescribed by law;
2. Add omitted property;
3. Cancel assessments of property not taxable; and
4. Hear all grievances and appeals filed with the board
secretary as outlined in Section 2877 of this title.
C. It shall be the duty of each county board of equalization to
cooperate with and assist the county assessor in performing the
duties imposed upon the assessor by the provisions of Section 2840 of
this title, to the end that the records required by the provisions of
such section shall be fully and accurately prepared and maintained
and shall reflect the assessed valuations of the real property of the
county. After such records have been prepared and the assessed
valuations adjusted in accordance with the provisions of this
section, the county board of equalization shall not raise or lower
the assessed valuation of any parcel or tract of real estate without
hearing competent evidence justifying such change or until at least
one member of the board or a person designated by the board has made
a personal inspection of such property and submitted a written report
to the board. In no event shall any such change be made by the
county board of equalization if such change would be inconsistent
with the equalized value of other similar property in the county.
D. In counties with a net assessed valuation in excess of Five
Hundred Million Dollars ($500,000,000.00), the county board of
equalization may, subject to the approval of the county budget board,
appoint sufficient hearing officers to assist in the hearing of
appeals filed before the county board of equalization. Such hearing
officers shall be knowledgeable in the field of mass appraisal, real
estate or related experience. Hearing officers shall receive the
same compensation as county board of equalization members. The
secretary of the county budget board shall appoint such personnel
necessary to assist the hearing officers in the performance of their
duties.
Such hearing officers shall review appeals assigned to them by
the board of equalization, hold hearings, receive testimony from the
taxpayer and county assessor and submit a written recommendation to
the county board of equalization as to the fair market value of the
protested property. Upon submission of the hearing officer’s written
recommendation, the county board of equalization shall take final
action on the appeal by either adopting, amending or rejecting the
final report. The county board of equalization may also re-hear the
appeal itself, request additional testimony from the taxpayer or
county assessor or request additional review by a hearing officer.
All proceedings before any hearing officer shall be subject to
the provisions of the Oklahoma Open Records Act and the Oklahoma Open
Meeting Act.
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Added by Laws 1988, c. 162, § 63, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 13; Laws 1991, c. 158, § 1, emerg. eff. May 7, 1991;
Laws 1997, c. 304, § 8, emerg. eff. May 29, 1997; Laws 2013, c. 158,
§ 2, eff. Nov. 1, 2013.
§68-2864. State Board of Equalization - Membership - Sessions -
Officers - Quorum - Powers, duties and authority - Fees.
A. The Governor, State Auditor and Inspector, State Treasurer,
Lieutenant Governor, Attorney General, Superintendent of Public
Instruction and President of the Board of Agriculture shall
constitute the State Board of Equalization, and the Board must hold a
session at the Capitol of the state, commencing at 10:00 a.m. on
December 1, or the first working day thereafter, of each year for the
purpose of equalizing the taxable property values of the several
counties for the next following assessment year. The State Auditor
and Inspector shall notify all other members of the Board of the time
and place of the annual session as herein required. The Governor
shall serve as chair and the State Auditor and Inspector shall serve
as secretary of the Board, and a vice-chair shall be elected from the
other members. In case of the absence or failure of the chair and
secretary, or either of them, to so act on the statutory meeting
date, any four or more members thereof shall proceed on such date to
conduct the Board's session and carry on its work as herein required.
Any official action by the Board shall require approval by a majority
of all members of the Board.
B. It shall be the duty of the Board to examine the various
county assessments and to equalize, correct and adjust the same as
between and within the counties by determining the ratio of the
aggregate assessed value of the property or any class thereof, in any
or all of them, to the fair cash value thereof as herein defined, and
to order and direct the assessment rolls of any county in this state
to be so corrected as to adjust and equalize the valuation of the
real and personal property among the several counties during the next
succeeding assessment year. The Board is hereby authorized to
appoint a committee of its members or designate a third party to
assist the Board in the resolution of any dispute between a county
assessor and the Oklahoma Tax Commission. Any recommendation or
proposed means of resolving the dispute developed by such committee
or third party shall be submitted to the Board for final action.
C. In determining the assessment ratio for all air carrier
property and all railroad property, the Board shall be subject to the
provisions of paragraph 3 of subsection A of Section 8 of Article X
of the Oklahoma Constitution.
D. In order to equalize, correct and adjust the various county
assessments within the counties as required by this section, the
Board shall analyze the relationship between the assessed value and
the fair cash value for each use category of real property and
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separately analyze the relationship between the assessed value and
the fair cash value for the agricultural use category, the
residential use category and the commercial/industrial use category.
The Board shall order any increase or decrease determined by the
Board to be necessary for equalization of property values within the
county, including, but not limited to, the authority to require an
assessment ratio for a use category bearing a specific relationship
to the percentage used to determine taxable value of real property in
the county for the applicable assessment year pursuant to the
provisions of Section 8 of Article X of the Oklahoma Constitution.
E. The Board shall equalize, correct and adjust the various
county assessments as between the counties as required by this
section by ordering any increase or decrease required as prescribed
by this subsection. The Board shall order any increase or decrease
required to comply with the assessment ratio in effect for the
applicable assessment year pursuant to the provisions of Section 8 of
Article X of the Oklahoma Constitution.
F. The Board shall set a fee or schedule of fees to be used by
county assessors for the search, production and copying in electronic
and/or digital format of property data, administration files,
sketches and pictures for the real property maintained within the
county assessors’ computer systems for commercial purposes. Such fee
or schedule of fees shall be uniform across the state to the extent
possible with variances between the counties permitted to allow for
the ability of various counties to produce data based on available
technology, personnel and budget resources. The fee or schedule of
fees shall not apply or be charged to individual property owners
obtaining information on the owner’s property for the owner’s use.
After establishing the fee or schedule of fees each year at its
December 1 meeting, the Board shall review the fee or schedule of
fees and make adjustments necessary to ensure uniform application to
the extent possible across all counties and to take into account
technological changes that may occur over time. The Board may direct
that a county assessor’s compliance with the fee or schedule of fees
be considered when the county assessment examination is performed
pursuant to the requirements of this section. Fees collected
pursuant to this subsection shall be deposited in the applicable
county assessor revolving fund, as provided in Section 2829.1 of this
title, and the expenditure of such funds shall be subject to the
provisions of such section. The fee or schedule of fees applicable
to a county assessor shall be posted within its principal office and
with the county clerk. The Board shall only establish fees or a fee
schedule wherein the custodian shall charge reasonable costs for the
retrieval of an existing record, regardless of format. Reasonable
costs shall not exceed the actual cost of duplication of the record.
As used in this section, “actual cost of duplication” means the cost
of materials and supplies used to duplicate or reproduce the record.
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Costs for labor may only be charged when the request requires the
custodian to compile data, extract data or redact information in
order to create a new document to comply with a public record
request. Records not readily available at the time of request shall
be provided by the custodian of records within a reasonable time
after receipt of the request. A reasonable time shall be presumed to
be three (3) working days or less. The period may be extended by the
custodian if extenuating circumstances exist. The period of
extension shall not exceed seven (7) working days, unless:
1. The period of extension is agreed to by both parties;
2. The request is voluminous; or
3. Fulfilling the request would impair the custodian’s ability
to discharge its duties.
The custodian shall notify the person requesting the records
within seven (7) working days of the reason why the request cannot be
fulfilled within the time period requested by the requestor and when
the custodian will provide the records.
Added by Laws 1988, c. 162, § 64, eff. Jan. 1, 1992. Amended by Laws
1990, c. 212, § 2, eff. Jan. 1, 1992; Laws 1997, c. 304, § 9, emerg.
eff. May 29, 1997; Laws 1998, c. 318, § 1, eff. Nov. 1, 1998; Laws
2011, c. 363, § 1, eff. Nov. 1, 2011.
§68-2865. Oklahoma Tax Commission - Adjustment and equalization of
valuation of real and personal property - Findings - Powers, duties
and authority.
A. The Oklahoma Tax Commission shall render its findings as to
the adjustment and equalization of the valuation of real and personal
property of the several counties of the state by reporting to the
State Board of Equalization the ratio derived from comparing the
assessed value of the real property of each county to the full or
fair cash value of the real property of such county; and such
findings shall, on or before December 1 of each calendar year, be
presented to the State Board of Equalization as recommendations for
its final action under Section 21 of Article X of the Oklahoma
Constitution.
B. All duties, powers and authority relating to the adjustment
and equalization of the valuation of real and personal property of
the several counties of the state, shall be vested in the Oklahoma
Tax Commission, excepting only the duties, powers and authority of
the State Board of Equalization, as fixed and defined by Section 21
of Article X of the Oklahoma Constitution.
C. In the assessment of all property which it is their duty to
assess for taxation, all county officers shall continue to perform
all the duties required of them, and to exercise all the powers and
authority vested in them, by law.
D. In the performance of its duties, as herein defined, the
Oklahoma Tax Commission, or any duly authorized representative
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thereof, shall have the power to administer oaths, to conduct
hearings, and to compel the attendance of witnesses and the
production of the books, records and papers of any person, firm,
association or corporation, or of any county; and to enter any
business or commercial premises and inspect the property of the
taxpayer.
E. Prior to entering the business or commercial premises of any
taxpayer for purposes of discovering personal property, the Oklahoma
Tax Commission shall request permission to enter the business or
commercial premises and shall state the reason for the inspection.
If access to the business or commercial premises is denied, the
Oklahoma Tax Commission shall be required to obtain a search warrant
in order to conduct an inspection of the interior of the business or
commercial premises. A search warrant may be obtained upon a showing
of probable cause that personal property located within particularly
described business or commercial premises is subject to ad valorem
taxation, but not listed or assessed for ad valorem taxation as
required by law.
Added by Laws 1988, c. 162, § 65, eff. Jan. 1, 1992. Amended by Laws
1989, c. 152, § 8, eff. Jan. 1, 1992.
§68-2866. Oklahoma Tax Commission - Equalization ratio study.
A. For purposes of reporting to the State Board of Equalization
the ratio derived from comparing the assessed value of the real
property of each county to the full or fair cash value of such real
property, the Oklahoma Tax Commission shall conduct and publish an
equalization ratio study for each county annually in accordance with
the requirements of this section.
B. The equalization ratio study shall be conducted in a manner
that ensures:
1. the ratio of assessed value to the fair cash value of
properties in a sample extracted from a county is expressed as a
median of the ratios determined for all properties included in the
sample;
2. sample data gathered for purposes of establishing the fair
cash value of properties within the sample relates to the applicable
assessment date of the study in a manner that produces reliable ratio
study results;
3. sample sizes of sufficient numbers to produce an estimated
ratio for a use category within a county or a ratio for an entire
county at a ratio that accurately estimates the true, but unknown,
assessment level;
4. appraisals selected for inclusion in the ratio study are
representative of the use category or stratum of properties included
in the sample;
5. sales files containing adequate information are developed and
maintained for purposes of appraisals; and
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6. uniformity of assessments within a use category or stratum
for a county do not exceed a coefficient of dispersion value of
twenty percent (20%).
C. The Oklahoma Tax Commission shall provide for a computer
system that permits the equalization ratio study to be conducted
pursuant to the requirements of this section. Such computer system
shall be designed to permit monitoring and analysis of assessment
performance in the several counties and to detect noncompliance with
legal standards for valuation of taxable property in order to fulfill
the duties imposed by Section 2830 of this title. The provisions of
this subsection shall not be construed to authorize the Oklahoma Tax
Commission to install a mainframe computer capable of remote
monitoring of or making inputs into computers in the offices of the
various county assessors.
Added by Laws 1988, c. 162, § 66, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 14, operative Jan. 1, 1992.
§68-2867. Abstract of assessments.
A. As soon as practicable after the assessment rolls are
corrected and adjusted by the county board of equalization through
the first Monday in June, the county assessor shall make out an
abstract thereof, containing the total amount of property listed
under the various classifications appearing on the blank forms for
the listing and assessment of property, and the total value of each
class, and it shall be the mandatory duty of the county assessor
under the penalties as outlined pursuant to Section 2943 of this
title, to transmit this abstract to the Oklahoma Tax Commission not
later than June 15 of each year or the first working day thereafter,
unless delayed by court action or other causes beyond his control.
B. It is hereby specifically provided that where any county
assessor fails to comply with the provisions of this section by the
time herein required, the Oklahoma Tax Commission shall immediately
notify the chairman of the board of county commissioners and the
county clerk of such county and neither such county assessor nor any
of his deputies or employees shall be paid any remuneration,
compensation or salary for the month of June and each succeeding
month thereafter until such abstract is transmitted to the Oklahoma
Tax Commission. This penalty provision shall be cumulative to the
penalty provisions and requirements of Section 2943 of this title.
C. It shall be the duty of the Oklahoma Tax Commission to
furnish the necessary forms for such abstract, which forms shall be
subject to approval by the State Auditor and Inspector.
D. Within ten (10) days after the county assessor of each county
receives from the State Board of Equalization the certificates of
assessment of all railroads, air carriers and public service
corporations, and the equalized value of real and personal property
of such county, it shall be the duty of the county assessor to
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prepare and file with the county excise board an abstract of the
assessed valuations of the county and each municipal subdivision
thereof as shown by his records through that date; and said abstract
shall show separately the valuations of all personal property, real
property, railroad and air carrier property and public service
corporation property, in each municipality, and shall be properly
totaled and balanced.
Added by Laws 1988, c. 162, § 67, eff. Jan. 1, 1992. Amended by Laws
1995, c. 57, § 14, eff. July 1, 1995.
§68-2868. Tax rolls - Preparation - Contents.
A. As soon as practicable, and not later than October 1, the
county assessor shall prepare tax rolls containing all adjustments by
either the equalization board or the excise board which have been
completed and provided to the assessor, and containing:
1. A list or lists in alphabetical order of all the persons and
bodies corporate in whose name any personal or public service
property has been assessed, with the assessed valuation thereof
distinguished by separate amounts if located in more than one school
district and by the number of each school district, each in a
separate column opposite the name, and the total amount of the tax as
to each school district location extended in another column. In city
and town districts, distinction shall be made as to urban and rural
locations;
2. A list or lists of all taxable lands in the county or school
districts of the county, not including city or town lots, nor
unplatted tracts of land inside a city or town, in numerical order,
commencing with the lowest numbered section and the different
subdivisions and fractional parts thereof in the lowest numbered
township in the lowest numbered range in the county, and ending with
the highest numbered section, township and range, with the number of
the school district located in and the name of the owner in each
instance, the assessed valuation of each tract, and the total amount
of taxes extended in separate columns opposite each tract in the same
manner as provided in the alphabetical list or lists of names; except
where homestead exemptions are involved, then by distinctive
valuations and amounts of tax as hereinafter provided; and
3. A list of the city or town lots in each city or town and the
unplatted tracts in each city or town in the county, commencing with
the lowest numbered section in the lowest numbered township in the
lowest numbered range in the county and the different subdivisions
and fractional parts thereof and ending with the highest numbered
section, township and range, and the number of acres in each tract
with the name of the owner in each instance, and the valuation and
total tax extended in separate columns in the same manner as
hereinbefore provided in respect to personal property and lands,
except homesteads which shall be distinguished as provided for lands.
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Each lot shall be separately listed, except as hereinafter provided,
and the valuation and tax separately extended thereon. Where one
building or one set of improvements is situated on two or more lots
or parts of lots so as to preclude distinction as to the value of
improvements as to each such lot or parts of lots, such lots or parts
of lots shall be listed together with one valuation, and the tax
extended in one amount. Unless the owner otherwise elects, vacant
lots valued and equalized at Ten Dollars ($10.00) or less per lot and
belonging to the same owner may, if adjacent and lying within the
same city or town block, be so listed with one valuation and the tax
extended in one amount; and in either or any event where more than
one lot or part of lot is listed under one valuation, the tax rolls
shall disclose whether the same be vacant or improved. All additions
to cities and towns shall be arranged in the tax rolls in
alphabetical order immediately following the original townsite.
B. In applying the tax rate to determine the amount of tax due,
the county assessor shall compute same to the nearest dollar, that
is, any fraction of a dollar in the amount of fifty cents ($0.50) or
less shall be disregarded, and any fraction of a dollar in the amount
of fifty-one cents ($0.51) or more shall be shown as a full dollar.
The total amount of the tax due and extended on the tax rolls, as
required by this section, shall be determined and shown accordingly.
Provided, however, in all cases where, under the tax rate, the tax is
computed to be less than One Dollar ($1.00), then the tax due shall
be shown as One Dollar ($1.00). Once the total amount of taxes due
is calculated and extended onto the tax rolls, the amount of taxes
due or value upon which the tax was assessed cannot be increased by a
final judgment in any tax appeal filed pursuant to Section 2880.1 or
Section 2881 of this title. The limitation on taxes due in the
preceding sentence shall not apply in cases of omitted property.
C. Each property, whether lands or lots, lawfully exempted from
taxation in whole or in part by reason of a homestead interest, shall
be distinguished upon the tax rolls by the word "homestead" or an
appropriate symbol, and opposite each of such properties shall be
entered in separate columns the total assessed valuation, the value
of the exemption allowed and approved and the assessed valuation
after the amount of exemption allowed has been deducted. In
extending the tax the county assessor shall, as to each such
property, consolidate all levies to which the homestead exemption is
subject, compute the tax thereon and enter the same in one column in
one amount, and all the levies to which the valuation in excess of
the homestead exemption is subject, compute the tax thereon and enter
the same in another column in one amount.
D. All real property which is exempt from taxation shall be
listed in the tax rolls, with the name of the owner, in all respects
as if the same were taxable but with the reason for the exemption
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noted thereon across the columns where otherwise the tax would have
been entered.
E. The county treasurer shall transfer to the tax rolls for the
current year, in a separate column, all delinquent taxes remaining
unpaid for the previous years, distinguishing the same as to each lot
and tract of land by the year and amount of tax, exclusive of
penalty, as to all real properties; and when giving a statement of
taxes on any property, said statement shall include all taxes due and
shall designate the sum due for the current year, and the sum past
due and delinquent. Said transfer to the current rolls of unpaid
real property tax of previous years is hereby declared to be
mandatory; and the county treasurer shall be allowed not to exceed
fifteen (15) days after the delivery to him of said current rolls
within which to make such transfer, before he shall be required to
open the same for the reception and collection of taxes and to begin
the thirty-day nonpenalty-taxpaying period before delinquency.
F. The tax rolls shall be made up as required by and in the form
prescribed by the State Auditor and Inspector and shall contain such
other information as may be required by the State Auditor and
Inspector.
Added by Laws 1988, c. 162, § 68, eff. Jan. 1, 1992. Amended by Laws
1992, c. 360, § 2, eff. July 1, 1992; Laws 2015, c. 263, § 2, emerg.
eff. May 6, 2015.
§68-2869. Extension of tax levies on tax rolls - Delivery of tax
rolls to county treasurer - Filing abstract of tax rolls - Correction
of levy or tax rolls - Assessor's warrant - Receipt and acceptance of
tax rolls - Collection of taxes.
A. It shall be the duty of the county assessor to proceed to
extend the tax levies on his tax rolls immediately upon receipt of
the certification of such levies from the county excise board,
without regard to any protest that may be filed against any levy.
B. It shall further be the duty of the county assessor to
deliver the tax rolls to the county treasurer when the same shall
have been completed, and at the same time to file a true and
correct abstract of such tax rolls with the county clerk, which
abstract shall be made on forms prescribed by and in the manner
required by the State Auditor and Inspector. The county clerk shall
charge the county treasurer with the amount contained in said
abstract.
C. If there is any correction or change in the levy of any
municipality, after such levy has been certified by the county excise
board to the county assessor, regardless of whether such change is
made by order of the county excise board or by a court of competent
jurisdiction, it shall be the duty of the county assessor to deliver
the tax rolls to the county treasurer, without regard to such change;
and it shall be the duty of the county treasurer, with the assistance
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of the county assessor, to make the necessary corrections on the tax
rolls after the same shall have been delivered to the county
treasurer.
D. The county assessor shall, notwithstanding the filing of any
protest against the levies or budgets or the pendency of any
procedure with reference to the correctness of the assessment of any
property or as to the legality of any levy, complete the tax rolls
and abstract thereof, and deliver the same to the county treasurer
and county clerk, respectively, on or before the first day of October
of each year.
E. The county assessor shall attach to the tax rolls his
warrant, under his own hand, requiring the county treasurer to
collect the taxes in accordance with said tax rolls, and such warrant
and tax rolls shall be full and sufficient authority for the
collection by the county treasurer of all taxes therein contained. No
informality in the foregoing requirement shall render illegal any
proceeding for the collection of taxes.
F. The county treasurer shall accept the tax rolls and give his
receipt therefor; and upon the date fixed when taxes shall become due
and payable to the county treasurer shall proceed to collect the
taxes as provided by law.
Added by Laws 1988, c. 162, § 69, eff. Jan. 1, 1992.
§68-2870. Destruction or loss of tax lists, rolls or abstracts.
A. In case of the destruction or loss of tax lists, rolls or
abstracts, or any portion thereof, of any county of this state, after
the assessments have been adjusted by the county board of
equalization according to law, and before the taxes have become
delinquent according to law, it shall be the duty of the county
assessor with the approval of the board of county commissioners of
the county in which said loss or destruction shall occur, within
ninety (90) days after such loss or destruction, to appoint special
deputy assessors, whose duty it shall be to assist the county
assessor in reassessing all taxable property of said county, or such
portion thereof, the tax records of which have been lost or destroyed
as aforesaid, in the manner and form provided by law. Before entering
upon the duties of such appointment, such special deputy assessors
shall qualify before the county assessor as provided by law for the
qualification of deputy assessors, and such special deputy assessors
shall receive the same compensation for their services, as other
personnel in such assessor's office for each day actually employed.
The original assessment, the record of which is lost, shall, in the
new assessment, be followed and adopted as far as practicable.
B. The county assessor shall, within ten (10) days after the
appointment of the special deputies, proceed to make out and deliver
to the county board of equalization the assessment rolls of the
county as provided by law. The county board of equalization shall
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meet within ten (10) days after the delivery of the assessment rolls
to it, which assessment rolls and lists shall be received by said
board and corrected so as to correspond, as nearly as may be, to the
original rolls and lists lost or destroyed.
C. The county assessor shall, within thirty (30) days after the
date of the meeting of the county board of equalization required by
this section, make out and file with the treasurer of said county, an
abstract of the special assessment herein provided. Such assessment,
and the assessment lists, assessment rolls, tax rolls and abstracts,
when so made and filed shall, in all respects, be of the same force
and effect as if made at the regular assessment, and shall have the
same effect and value as evidence, as the lists, assessment rolls,
tax rolls, and abstracts lost or destroyed; and the rates of taxation
shall in no case be changed or varied from those theretofore fixed
for the year covered by such restored records. In such cases no
penalty shall attach for nonpayment of taxes until at least ninety
(90) days after the said abstract is filed with the county treasurer.
D. In all cases contemplated in, and covered by this section,
the Oklahoma Tax Commission shall provide for the use of said county
assessor and special deputy assessors, upon the requisition or
request of the board of county commissioners of the county, all
necessary notices, blank forms, lists and instructions and forward
the same to the county assessor of said county.
E. In all cases where duplicates or copies of the assessment
rolls and tax rolls for the year involved can be reproduced from the
land list or other available records, if the said county assessor and
the board of county commissioners shall determine that said
reproduced roll is correct, and upon the verification of the same by
the persons who made such assessment, or other person competent to
make such verification, such reproduced assessment roll shall be
accepted in lieu of the special assessment herein required.
F. Upon the receipt by the county treasurer of the county
assessor's abstract of the tax roll, all persons who have theretofore
paid the whole or any part of the tax chargeable against them for the
year involved may, within sixty (60) days, present their receipts to
the county treasurer who shall credit them upon the proper record
with the amount of taxes so paid.
G. For the purpose of performing the extraordinary duties
provided by this section, the county assessor and county treasurer
shall be empowered, with the consent and under the direction of the
board of county commissioners, to employ such additional deputies as
may be necessary to enable them to perform the duties required by
this section within the period herein limited.
Added by Laws 1988, c. 162, § 70, eff. Jan. 1, 1992.
§68-2871. Correction or alteration of tax rolls - Board of tax rolls
corrections created.
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A. After delivery of the tax rolls to the county treasurer of
any county, no correction or alteration as to any item contained
therein as of such date of delivery shall ever be made, except by the
county treasurer and on authority of a proper certificate authorized
by law or pursuant to order or decree of court in determination of a
tax appeal or other proper case.
B. A board of tax roll corrections is hereby created and shall
consist of the chair of the board of county commissioners as chair
or, in the chair's absence, the vice-chair of the board of county
commissioners or their statutory designee, the chair of the county
equalization board or, in the chair's absence, the vice-chair of the
county equalization board as vice-chair, the county clerk as
nonvoting member and secretary, and the county assessor, a majority
of whom shall constitute a quorum. The board is hereby authorized to
hear and determine allegations of error, mistake or difference as to
any item or items so contained in the tax rolls, in any instances
hereinafter enumerated, on application of any person or persons whose
interest may in any manner be affected thereby, or by his or her
agent or attorney, verified by affidavit and showing that the
complainant was not at fault through failure to fulfill any duty
enjoined upon him or her by law, or upon discovery by the county
treasurer or assessor before the tax has been paid or attempted to be
paid and disclosure by statement of fact in writing signed by the
treasurer or assessor and verified by the assessor or treasurer as
the case may be. Such right shall not be available to anyone
attempting to acquire, or who has acquired, the lien of the county
for such tax, whether by purchase, assignment, deed or otherwise. In
counties with two county boards of equalization, the chair of each
such board shall serve, in alternating years, as the vice-chair of
the board of tax roll corrections. When a complaint is pending
before the board of tax roll corrections, such taxes as may be owed
by the protesting taxpayer shall not become due until thirty (30)
days after the decision of the board of tax roll corrections. When a
complaint is filed on a tax account which has been delinquent for
more than one (1) year, and upon showing that the tax is delinquent,
the complaint shall be dismissed, with prejudice.
C. If, upon such hearing, it appears that:
1. Any personal or real property has been assessed to any
person, firm, or corporation not owning or claiming to own the same;
2. Property exempt from taxation has been assessed;
3. Exemption deductions allowed by law have not been taken into
account;
4. The same property, whether real or personal, has been
assessed more than once for the taxes of the same year;
5. Property, whether real or personal, has been assessed in the
county for the taxes of a year to which the same was not subject;
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6. Improvements to real estate or other property assessed have
been destroyed by fire, or that the value of land has been impaired,
damaged or destroyed by wildfires, floods or overflow of streams, and
the county assessor has made and entered an adjustment to assessments
previously made and entered;
7. Lands or lots have in any manner been erroneously described;
8. Any valuation or valuations assessed and entered are at
variance with the valuation finally equalized;
9. Any valuation or valuations returned for assessment and not
increased by the county assessor have been entered on the assessment
rolls for equalization at variance with the value returned, or in the
event of increase by either the county assessor or the county board
of equalization and no notice thereof was sent; provided, offer of
proof of failure to receive notice may not be heard;
10. Any valuation assessed and entered included, in whole or in
part, as of the date of assessment under the law relating thereto,
any property that had no taxable situs in the county, did not exist
or had been erroneously placed;
11. Any property subject to taxation as of January 1 of any year
was thereafter acquired by conveyance of title, including tax title,
by the county, or any city, town or school district therein;
12. An error resulted from inclusion in the total of levies
computed against the valuation entered, a tax levy or levies
certified and final for none or part of which such property was
liable in fact and the same be self-evident on recomputation, and
involve no question of law;
13. As to personal tax, if there has been an error in the name
of the person assessed, or, as to real property, the record owner at
the time of assessment desires that his or her name be entered in
lieu of whatever other name may have been entered as "owner" upon the
roll;
14. There has been any error in the tax extended against the
valuation entered, whether by erroneous computation or otherwise;
15. There has been any error in transcribing from the county
assessor's permanent survey record to the assessment rolls either as
to area or value of lands or lots or as to improvements thereon;
16. The county treasurer has, of his or her own volition,
restored to the tax rolls any tax or assessment where the entry upon
the tax rolls shows the same theretofore to have been stricken or
reduced by certificate issued by constituted authority, except where
restored by specific court order or in conformity to general decree
of the Supreme Court of Oklahoma invalidating in mass all such
certificates of a class certain, and except if the owner of such
property demand its restoration and make payment, in which instance
the county treasurer shall require that the owner sign on the face of
the owner's receipt a statement that the owner "paid voluntarily
without demand, request or duress"; or
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17. Any personal property assessment and personal tax charge has
been entered upon the assessment and tax rolls except upon proper
return of assessment by the taxpayer or increase thereof with due
notice, or as a delinquent assessment made by the county assessor or
deputies in detail either on view or reliable information; then, in
the event any of the grounds stated in this subsection are present,
it shall be the duty of the board of tax roll corrections to make and
the secretary to enter its findings of fact and to correct such
error, if such exists, by issuing its order, in words and figures, to
accomplish such:
a. if such error increases the amount of tax charged, the
county clerk shall issue a certificate of error to the
county assessor ordering the assessor to certify such
correction or increase to the county treasurer for
entry on the tax rolls, and
b. if such error does not increase the amount of tax
charged, the county clerk shall issue a certificate of
error to the county treasurer if the tax be not paid,
stating the amount or other effect of such order, and
it shall be the duty of such county treasurer to make
and enter such correction upon the tax rolls and, if
there be a decrease to the amount of tax charged, to
enter a credit, in lieu of cash, for the amount of
decrease of tax shown in such certificate.
D. If, prior to such hearing by the board, as provided by this
section, the tax has been paid, no certificate shall issue; but if
less than one (1) year shall have elapsed after the payment of the
tax and before the filing of such application for correction of
error, and after such hearing the findings of fact disclose that less
tax was due to have been paid than was paid, then the person who paid
the tax, or such person's heirs, successors, or assigns, may execute
a cash voucher claim setting forth facts and findings, verify it, and
file it with the county clerk, who shall thereupon deliver such claim
to the county treasurer for designation of the fund from which the
claim must be paid and approval of the claim as to availability of
funds by the county treasurer. If taxes have been paid under
protest, the county treasurer must designate the refund to be paid
from such protest fund. If taxes have been paid but not paid under
protest and if there are funds available in current collections of
the taxing unit which received the taxes paid, then the county
treasurer must designate the refund to be paid from such current
collections of such taxing unit. The county clerk shall thereupon
issue a cash voucher against the appropriate fund of the county,
directing the county treasurer to pay to such person the amount so
found to be erroneous. The word "person" as used in this subsection
shall comprehend the person, firm, or corporation who paid such tax
and the heirs, assigns or successors, as the case may be. No such
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claim for refund shall be allowed and paid unless the same be filed
within six (6) months after the effective date of the order of
correction.
E. If there be any error in the taxes collected from any person,
the overpayment or duplicate payment of any such taxes collected in
error may be recovered by the taxpayer, and the county treasurer may
make such payment from the resale property fund of the county if
funds are not available as stated in subsection D of this section.
F. Beginning January 1, 1987, notwithstanding the one-year
limitations period for filing a claim for refund as provided in
subsection D of this section, if there be any error in taxes
collected from any person on property constitutionally exempt under
Section 6B of Article X of the Oklahoma Constitution, by the county
treasurer in counties with a population in excess of five hundred
thousand (500,000) persons, according to the latest Federal Decennial
Census, to the extent that such county has been reimbursed from the
Ad Valorem Reimbursement Fund provided by Section 193 of Title 62 of
the Oklahoma Statutes, the overpayment or duplicate payment of any
such taxes collected in error may be recovered by the taxpayer as
provided by law.
G. Upon dismissal of a complaint or denial of relief to the
taxpayer, the county clerk, as secretary of the board of tax roll
corrections, shall prepare a letter order of dismissal or denial
which shall be mailed to the taxpayer or person at the address found
on the complaint.
H. Both the taxpayer and the county assessor shall have the
right of appeal from any order of the board of tax roll corrections
to the district court of the same county. In case of appeal the
trial in the district court shall be de novo.
I. Notice of appeal shall be served upon the county clerk, as
secretary of the board of tax roll corrections, and a copy served
upon the county assessor. The appeal shall be filed in the district
court within fifteen (15) days of the date of the mailing of the
order of the board of tax roll corrections to the taxpayer.
Added by Laws 1988, c. 162, § 71, eff. Jan. 1, 1992. Amended by Laws
1995, c. 337, § 9, emerg. eff. June 9, 1995; Laws 1997, c. 155, § 1,
eff. Nov. 1, 1997; Laws 1998, c. 396, § 2, emerg. eff. June 10, 1998;
Laws 2007, c. 172, § 2, eff. Nov. 1, 2007; Laws 2008, c. 140, § 2,
emerg. eff. May 9, 2008; Laws 2013, c. 158, § 3, eff. Nov. 1, 2013;
Laws 2014, c. 177, § 2, eff. Nov. 1, 2014.
§68-2872. Compensation of chairman of county board of equalization
for attendance of meetings of board of tax rolls corrections.
For attendance upon meetings of the board of tax roll corrections
the chairman of the county equalization board shall be entitled to
compensation at a rate identical to the compensation authorized by
law for attendance by the chairman of the county board of
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equalization upon meetings of the county board of equalization; but
his attendance upon meetings of the board of tax roll corrections
shall not be counted against the maximum number of days for which he
may be compensated for equalization board meetings.
Added by Laws 1988, c. 162, § 72, eff. Jan. 1, 1992.
§68-2873. Board of tax rolls corrections - Modification of valuation
of property.
The board of tax roll corrections shall be authorized to modify a
valuation of property in accordance with the standards prescribed by
or for a purpose authorized by Section 71 of this act irrespective of
whether or not the valuation so modified has been affected by an
order of the State Board of Equalization for purposes of equalizing
assessments within a county or between the several counties as
authorized by law. Any modification by the board of tax roll
corrections to a value that has been modified as a result of an order
by the State Board of Equalization shall be reported to the Oklahoma
Tax Commission. The Oklahoma Tax Commission shall determine the
impact, if any, that the modification made by the board of tax roll
corrections has upon equalization within the county or between the
several counties and shall make recommendations to the State Board of
Equalization for any action required.
Added by Laws 1988, c. 162, § 73, eff. Jan. 1, 1992.
§68-2874. Correction of clerical errors on tax rolls.
Whether upon discovery by the county treasurer or county assessor
or any of their deputies, or upon complaint of the taxpayer, the
agent or attorney or any person acting on behalf of the taxpayer,
upon certificate of clerical error issued by the county assessor to
the county treasurer, with a copy to the county clerk and a copy
retained, the county treasurer shall be authorized to make correction
upon the tax rolls of either of the following specifically enumerated
errors of strictly clerical import not involving valuations assessed
and equalized and not involving any exemption allowed whether of
homestead, service in the armed forces, charitable, educational,
religious, or other authorized exemptions, and which clerical error
certificates shall issue only under the conditions stated as to each,
as follows:
1. Error in the name of the person assessed, upon affidavit
verifying the name of the true owner as of October 1 of the taxable
year involved;
2. Error in the address of the person, firm or corporation
assessed, when furnished by such person or a representative of the
firm or corporation;
3. Error in the legal description of real property, when
verified by the county clerk, certifying to the description on his
land records as of January 1 of the taxable year involved;
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4. Error in land-list entry, such as section or part thereof,
township, range or of lot or block or of designation of urban
addition, when verified by the county clerk to the land records or
plats on file, as of January 1 of the taxable year involved;
5. Error in the school district designation as of the date when
school district tax levies attached themselves to such property, when
verified by the county assessor certifying to the date, if after
January 1 of such taxable year, when the school district designation
or location changed, or the school district designation prior to
January 1 of such taxable year where no change of the boundaries of
such district was thereafter ordered during such taxable year. If a
school district boundary change occurs after April 15 of such taxable
year, the opinion of the district attorney as to the applicable
school district designation to such property for purpose of levy of
such taxable year shall be attached to the certification;
6. If the error of school district designation caused the
application of levies not applicable thereto, then also the
“extension of tax”, when verified by the county clerk with proof of
computation attached;
7. Error commonly called duplicate assessment, but only in
instances where the two entries as delivered to the county treasurer
are verified by the county treasurer or deputy to be completely
identical in every specific detail; and
8. Error in transcribing to the tax rolls from assessment rolls
or assessment lists, conditioned on complete absence of all
indication of erasures or other alteration of original entry when
confirmed by endorsement to the certificate by the county clerk
certifying to personal visual inspection and verifying absence of all
indication of erasure or change in original entry.
Added by Laws 1988, c. 162, § 74, eff. Jan. 1, 1992. Amended by Laws
1993, c. 239, § 19, eff. July 1, 1993; Laws 2013, c. 158, § 4, eff.
Nov. 1, 2013.
§68-2875. Ad Valorem Division of Oklahoma Tax Commission – Creation
- Authority and duties.
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1. Confer with and assist county assessors and county boards of
equalization in the performance of their duties, to the end that all
assessments of property be made relative, just and uniform and that
real property and tangible personal property may be assessed at its
fair cash value estimated at the price it would bring at a fair
voluntary sale;
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2. Prescribe forms with numbers ascribed thereto for the county
assessors' use in assessment procedure, including property
classification and appraisal forms;
3. Provide technical assistance to county assessors and county
boards of equalization in the services of appraisal engineers;
4. Provide from year to year schedules of values of personal
property to aid county assessors in the assessment of personal
property;
5. Conduct training schools, institutes, conferences and
meetings for the purpose of improving the qualifications of county
assessors and their deputies as required by law;
6. Prepare and furnish from time to time to county assessors an
assessors' manual. Such manual shall include, but not be limited to,
valuation methodologies for property in a county for which no
comparable property exists in order for a county assessor to
establish a value for ad valorem tax purposes. The manual shall
include information concerning valuation of hazardous waste disposal
facilities and such other types of facilities as may be requested by
the county assessor for which the assessor does not have adequate
data to value such property;
7. Render such other assistance as may be conducive to the
proper assessment of property for ad valorem taxation;
8. Recommend rules to the Tax Commission establishing uniform
procedures and standards for the appraisal of real property by county
assessors;
9. Develop assessment manuals for the valuation of manufactured
homes and periodic updates for such manuals for use by county
assessors; and
10. Promptly notify county assessors, county treasurers and
members of county excise and equalization boards of any changes to
the laws relating to ad valorem taxation.
B. The county assessors shall not use any form not prescribed or
approved by the Ad Valorem Division.
C. Each county assessor shall comply with the rules and guides
adopted by the Oklahoma Tax Commission.
D. The Ad Valorem Division, upon request of any county assessor,
shall furnish to the county assessor any information shown by its
files and records as to any real and personal property, subject to
taxation, including income and expense data as shown by income tax
returns, to the end that no property shall escape taxation, and this
information is to be furnished notwithstanding any statute that such
files and records shall be confidential and privileged.
E. The Ad Valorem Division shall be authorized to obtain
information relating to the ownership, location, taxable status or
valuation for purposes of ad valorem taxation of real or personal
property from any state agency, board, commission, department,
authority or other division of state government if necessary to
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respond to a request by a county assessor as provided by subsection D
of this section. Such information shall be confidential and
privileged and shall only be released to a county assessor in order
to locate, discover and correctly value taxable property as required
by law.
Added by Laws 1988, c. 162, § 75, eff. Jan. 1, 1992. Amended by Laws
1989, c. 63, § 2, eff. Jan. 1, 1992; Laws 1998, c. 405, § 8; Laws
2015, c. 142, § 1, eff. Nov. 1, 2015.
§68-2876. Increase in valuation - Notice - Complaints and hearings.
A. If the county assessor increases the valuation of any
personal property above that returned by the taxpayer, or in the case
of real property increases the fair cash value or the taxable fair
cash value from the preceding year, or pursuant to the requirements
of law if the assessor has added property not listed by the taxpayer,
the county assessor shall notify the taxpayer in writing of the
amount of such valuation as increased or valuation of property so
added.
B. For cases in which the taxable fair cash value or fair cash
value of real property has increased, the notice shall include the
fair cash value of the property for the current year, the taxable
fair cash value for the preceding and current year, the assessed
value for the preceding and current year and the assessment
percentage for the preceding and current year.
C. For cases in which the county assessor increases the
valuation of any personal property above that returned by the
taxpayer, the notice shall describe the property with sufficient
accuracy to notify the taxpayer as to the property included, the fair
cash value for the current year, the assessment percentage for the
current year, any penalty for the current year pursuant to subsection
C of Section 2836 of this title and the assessed value for the
current year.
D. The notice shall be mailed to the taxpayer at the taxpayer's
last-known address and shall clearly be marked with the mailing date.
The assessor shall have the capability to duplicate the notice,
showing the date of mailing. Such record shall be prima facie
evidence as to the fact of notice having been given as required by
this section.
E. The taxpayer shall have thirty (30) calendar days from the
date the notice was mailed in which to file a written protest with
the county assessor specifying objections to the increase in fair
cash value or taxable fair cash value by the county assessor;
provided, in the case of a scrivener's error or other admitted error
on the part of the county assessor, the assessor may make corrections
to a valuation at any time, notwithstanding the thirty-day period
specified in this subsection. The protest shall set out the
pertinent facts in relation to the matter contained in the notice in
9)!&#!%!%%"'%)6! !2!(# 7!810
ordinary and concise language and in such manner as to enable a
person of common understanding to know what is intended. The protest
shall be made upon a form prescribed by the Oklahoma Tax Commission.
F. A taxpayer may file a protest if the valuation of property
has not increased or decreased from the previous year if the protest
is filed on or before the first Monday in April. Such protest shall
be made upon a form prescribed by the Oklahoma Tax Commission.
G. The county assessor shall schedule an informal hearing with
the taxpayer to hear the protest as to the disputed valuation or
addition of omitted property. The informal hearing may be held in
person or may be held telephonically, if requested by the taxpayer.
A taxpayer that is unable to participate in a scheduled informal
hearing, either in person or telephonically, shall be given at least
two additional opportunities to participate on one of two alternative
dates provided by the county assessor, each on a different day of the
week, before the county assessor or an authorized representative of
the county assessor. The assessor shall issue a written decision in
the matter disputed within seven (7) calendar days of the date of the
informal hearing and shall provide by regular or electronic mail a
copy of the decision to the taxpayer. The decision shall clearly be
marked with the date it was mailed. Within fifteen (15) calendar
days of the date the decision is mailed, the taxpayer may file an
appeal with the county board of equalization. The appeal shall be
made upon a form prescribed by the Oklahoma Tax Commission. One copy
of the form shall be mailed or delivered to the county assessor and
one copy shall be mailed or delivered to the county board of
equalization. On receipt of the notice of an appeal to the county
board of equalization by the taxpayer, the county assessor shall
provide the county board of equalization with all information
submitted by the taxpayer, data supporting the disputed valuation and
a written explanation of the results of the informal hearing.
Added by Laws 1988, c. 162, § 76, eff. Jan. 1, 1992. Amended by Laws
1989, c. 66, § 2, eff. Jan. 1, 1992; Laws 1989, c. 321, § 15,
operative Jan. 1, 1992; Laws 2004, c. 518, § 6, eff. July 1, 2004;
Laws 2006, c. 272, § 21; Laws 2014, c. 387, § 1, eff. Jan. 1, 2015;
Laws 2018, c. 266, § 2, eff. Nov. 1, 2018; Laws 2019, c. 19, § 1,
eff. Nov. 1, 2019.
§68-2877. Appeal from action by county assessor to county board of
equalization - Hearing procedure - Record - Time and form of appeal –
Failure to appear at hearing without advance notice – Assessment of
costs.
9)!&#!%!%%"'%)6! !2!(# 7!81-
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"%2$"
""2""
#","#"##+"
##2"#""
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#####"""
"####
3##
#",### 
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"
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""6!"
%2#,""
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"#",,##
"#""
B. In all cases where the county assessor has, without giving
the notice required by law, increased the valuation of property as
listed by the taxpayer, and the taxpayer has knowledge of such
adjustment or addition, the taxpayer may at any time prior to the
adjournment of the board, file an appeal in the form and manner
provided for in Section 2876 of this title. Thereafter, the board
shall fix a date of hearing, notify the taxpayer, and conduct the
hearing as required by this section.
C. The taxpayer or agent may appear at the scheduled hearing
either in person, by telephone or other electronic means, or by
affidavit.
D. If the taxpayer or agent fails to appear before the county
board of equalization at the scheduled hearing, unless advance
notification is given for the reason of absence, the county shall be
authorized to assess against the taxpayer the costs incurred by the
county in preparation for the scheduled hearing. If such costs are
assessed, payment of the costs shall be a prerequisite to the filing
of an appeal to the district court. A taxpayer that gives advance
notification of their absence shall be given the opportunity to
reschedule the hearing date.
E. 1. In order to increase taxpayer transparency, a member of
the board of equalization shall not directly or indirectly
communicate with the county assessor or any deputy assessor or
designated agent on any matter relating to any pending appeal before
the board of equalization prior to the actual hearing.
2. Prior to the presentation of any evidence at a county board
of equalization hearing, each member of the board hearing the protest
must sign an affidavit stating the member is not in violation of
paragraph 1 of this subsection.
3. Prior to the presentation of any evidence at a county board
of equalization hearing, all parties to the proceeding must sign an
affidavit stating that the evidence being presented is true to the
best of their belief and knowledge.
4. The provisions of paragraph 1 of this subsection shall not
apply to a routine communication between the county assessor and the
board of equalization that relates to the administration of an
appraisal roll, including a communication made in connection with the
certification, correction, or collection of an account that is not
the subject of a pending appeal.
5. The affidavit required in paragraph 2 of this subsection
shall be in the following form: "My name is [insert name]. I have
not communicated with another person in violation of subsection E of
Section 2877 of Title 68 of the Oklahoma Statutes."
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6. The affidavit required in paragraph 3 of this subsection
shall be in the following form: "My name is [insert name]. The
information I will present today is true and correct to the best of
my belief and knowledge."
Added by Laws 1988, c. 162, § 77, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 16, operative Jan. 1, 1992; Laws 2004, c. 518, § 7,
eff. July 1, 2004; Laws 2012, c. 164, § 2, eff. Nov. 1, 2012; Laws
2014, c. 381, § 1, eff. Nov. 1, 2014; Laws 2015, c. 54, § 23, emerg.
eff. April 10, 2015.
NOTE: Laws 2014, c. 387, § 2 repealed by Laws 2015, c. 54, § 24,
emerg. eff. April 10, 2015.
§68-2878. Repealed by Laws 1989, c. 321, § 28.
§68-2879. Repealed by Laws 1989, c. 321, § 28.
§68-2880. Repealed by Laws 1989, c. 321, § 28.
§68-2880.1. Appeal of order of county equalization board to district
court - Notice of appeal - Appeal to Supreme Court - Legal counsel
for assessor - Costs - Presumption of correctness of valuation.
A. Both the taxpayer and the county assessor shall have the
right of appeal from any order of the county board of equalization to
the district court of the same county, and right of appeal of either
may be either upon questions of law or fact including value, or upon
both questions of law and fact. The county assessor is the proper
party defendant in any appeal to the district court brought by the
taxpayer. The taxpayer is the proper party defendant in any appeal
to the district court brought by the county assessor. In either
case, the county board of equalization shall not be considered a
party in any litigation from an appeal brought pursuant to this
section. In case of appeal the trial in the district court shall be
de novo. Provided, the county assessor shall not be permitted to
appeal an order of the county board of equalization upon a question
of the constitutionality of a law upon which the board based its
order, but the county assessor is hereby authorized in such instance
to request a declaratory judgment to be rendered by the district
court.
B. Notice of appeal shall be filed with the county clerk as
secretary of the county board of equalization, which appeal shall be
filed in the district court within thirty (30) calendar days of the
date the board of equalization order was mailed, or in the event that
the order was delivered, from the date of delivery. It shall be the
duty of the county clerk to preserve all complaints and to make a
record of all orders of the board and both the complaint and orders
shall be a part of the record in any case appealed to the district
court from the county board of equalization.
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C. Either the taxpayer or the county assessor may appeal from
the district court to the Supreme Court, as provided for in the Code
of Civil Procedure, but no matter shall be reviewed on such appeal
which was not presented to the district court.
D. In such appeals to the district court and to the Supreme
Court and in requests for declaratory judgment it shall be the duty
of the district attorney to appear for and represent the county
assessor. The General Counsel or an attorney for the Tax Commission
may appear in such appeals or requests for declaratory judgment on
behalf of the county assessor, either upon request of the district
attorney for assistance, or upon request of the county assessor. It
shall be the mandatory duty of the board of county commissioners and
the county excise board to provide the necessary funds to enable the
county assessor to pay the costs necessary to be incurred in
perfecting appeals and requests for declaratory judgment made by the
county assessor to the courts.
E. In all appeals taken by the county assessor the presumption
shall exist in favor of the correctness of the county assessor's
valuation and the procedure followed by the county assessor.
Added by Laws 1989, c. 321, § 17, operative Jan. 1, 1992. Amended by
Laws 1998, c. 405, § 9; Laws 2015, c. 194, § 1, eff. Nov. 1, 2015;
Laws 2019, c. 19, § 2, eff. Nov. 1, 2019.
§68-2881. Railroads, air carriers and public service corporations -
Increase of evaluation of property - Notice - Complaints and hearings
- Appeals to Court of Tax Review and Supreme Court.
A. The secretary of the State Board of Equalization shall notify
all railroads, air carriers and public service corporations of the ad
valorem tax assessments rendered by the State Board, including the
valuation, assessment ratio and total amount of assessment. The
notice, which shall clearly be marked with the date upon which it was
prepared, shall be mailed within one (1) working day of such date.
The taxpayer shall have twenty (20) calendar days from the date of
the notice in which to file, with the Clerk of the Court of Tax
Review, a written complaint on a form prescribed by the Tax
Commission, specifying grievances with the pertinent facts in
relation thereto in ordinary and concise language, without
repetition, and in such manner as to enable a person of common
understanding to know what is intended. The complaint shall include
the amount of Oklahoma assessed valuation protested and the grounds
for the protest. The taxpayer shall be required to send a copy of
the complaint to the Tax Commission.
B. If the taxpayer fails to file a written complaint within the
twenty-day period provided for in this section, then the assessed
valuation stated in the notice, without further action of the State
Board of Equalization, shall become final and absolute at the
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expiration of twenty (20) days from the date the notice is mailed to
the taxpayer.
C. After the filing of a complaint provided for in subsection A
of this section, the State Board of Equalization shall have thirty
(30) days within which to file an answer. The Court of Tax Review
shall set a date of hearing, conduct such hearing, render its
decision, and notify in writing the taxpayer and the State Board of
Equalization of its decision within sixty (60) days of the date of
the scheduling conference. The Court of Tax Review shall be
authorized and empowered to take evidence pertinent to the complaint,
and for that purpose may compel the attendance of witnesses and the
production of books, records and papers by subpoena, and to confirm,
correct or adjust the valuation, as required by law.
D. The State Board of Equalization shall notify, in writing and
by certified mail, the Attorney General and all affected school
districts and other recipients of ad valorem tax revenue of the
complaint provided for by this section within ten (10) days of the
filing of the complaint.
E. The Attorney General may appear in all actions to enforce the
valuation and assessment of property by the State Board of
Equalization and the collection of ad valorem tax which is the
subject of the complaint filed pursuant to this section.
F. Either the State Board of Equalization or the party filing a
complaint pursuant to this section may appeal the decision of the
Court of Tax Review by filing a notice of intent to appeal with the
Clerk of the Court of Tax Review within thirty (30) calendar days of
the date the final decision is sent to the parties. Appeal shall be
brought in the Oklahoma Supreme Court in the same manner as provided
for other appeals from the Court of Tax Review. The Supreme Court
shall give precedence to such appeals and affirm the decision of the
Court of Tax Review if supported by competent evidence. If the
Oklahoma Supreme Court assigns the appeal to the Court of Civil
Appeals, the Oklahoma Court of Civil Appeals shall give precedence to
the appeal and affirm the decision of the Court of Tax Review if
supported by competent evidence.
G. In all instances where the notice of assessed valuation
certified by the State Board of Equalization has been permitted to
become final, such notice shall have the same force and be subject to
the same law as a judgment not subject to further appeal.
Added by Laws 1988, c. 162, § 81, eff. Jan. 1, 1992. Amended by Laws
1992, c. 360, § 3, eff. July 1, 1992; Laws 1995, c. 158, § 1, emerg.
eff. May 2, 1995; Laws 1995, c. 358, § 7, eff. July 1, 1995; Laws
1997, c. 337, § 2, eff. July 1, 1997; Laws 2001, c. 358, § 21, eff.
July 1, 2001.
NOTE: Laws 1995, c. 57, § 15 repealed by Laws 1995, c. 358, § 12,
emerg. eff. June 9, 1995.
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§68-2882. Noncompliance with legal requirement for level and
uniformity of assessments - Notice to correct assessment - Filing of
complaint by county - Publication of notice of order to correct
assessment - Answer - Hearing - Appeal.
A. In any case where the State Board of Equalization, in the
equalization of property locally assessed, shall make its
determination that the ratio of the assessed value of real property
within the county to the fair cash value of said real property does
not comply with the legal requirements for the level of assessment,
or does not comply with the legal requirements for the uniformity of
assessment then the State Board shall notify, by mail, the board of
county commissioners of said county, and the county assessor, giving
the ratio determined and the percentage valuation increase or
decrease the county must achieve during the next assessment period or
the action required for compliance with any applicable order for
assessment uniformity.
B. The district attorney, acting under direction of the board of
county commissioners and for the entire taxpaying public of the
county shall have twenty (20) days from date of such notice to the
board of county commissioners and the county assessor in which to
file with the Clerk of the Court of Tax Review a written complaint
specifying grievances and the pertinent facts in relation thereto in
ordinary and concise language and without repetition, and in such
manner as to enable a person of common understanding to know what is
intended. The board of county commissioners shall cause a notice of
the order for a valuation increase or decrease made by the State
Board of Equalization to be published in at least one (1) newspaper
of general circulation within the county at least one (1) time each
week for two (2) consecutive weeks. Such notice by publication shall
constitute sufficient notice to any taxpayer within such county of
the possible increase or decrease in the valuation of property owned
by the taxpayer located within such county. No individual valuation
increase or decrease notice shall be required to be mailed or
delivered to an affected taxpayer as a result of the implementation
of an order for an increase or decrease in valuation issued by the
State Board of Equalization.
C. After the filing of a complaint as provided for in subsection
B of this section the State Board of Equalization shall have fifteen
(15) days within which to file an answer. The Court of Tax Review
shall set a date of hearing within sixty (60) days of the date of the
notice which caused the filing of the complaint. The Court of Tax
Review shall be authorized and empowered to take evidence pertinent
to said complaint, and for that purpose, is authorized to compel the
attendance of witnesses and the production of books, records and
papers by subpoena, and to confirm, correct or adjust the order of
the State Board of Equalization, as required by law.
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D. At the time of hearing upon a complaint filed pursuant to
this section, the State Board of Equalization shall bear the burden
of proof of supporting its action which is the subject matter of the
complaint.
E. Either the State Board of Equalization or the party filing a
complaint pursuant to this section may appeal the decision of the
Court of Tax Review by filing a notice of intent to appeal with the
Clerk of the Court of Tax Review within ten (10) calendar days of the
date the final decision is rendered. Appeal shall be made to the
Oklahoma Supreme Court which shall affirm the decision of the Court
of Tax Review if supported by competent evidence.
Added by Laws 1988, c. 162, § 82, eff. Jan. 1, 1992.
§68-2883. Appeal to Court of Tax Review of decision to correct
Category 2 or Category 3 noncompliance in valuation procedure -
Notice of intent to appeal - Answer - Hearing - Appeal to Supreme
Court.
A. A county assessor may appeal the decision of the Oklahoma Tax
Commission to correct Category 2 noncompliance or a decision ordering
corrective action for Category 3 noncompliance as authorized by
Section 30 of this act by filing a notice of intent to appeal with
the Clerk of the Court of Tax Review within ten (10) calendar days of
the date the final decision is rendered.
B. After the filing of a notice of intent to appeal as provided
for in subsection A of this section the Oklahoma Tax Commission shall
have fifteen (15) days within which to file an answer. The Court of
Tax Review shall set a date of hearing within sixty (60) days of the
date of the answer date. The Court of Tax Review shall be authorized
and empowered to take evidence pertinent to said appeal, and for that
purpose, is authorized to compel the attendance of witnesses and the
production of books, records and papers by subpoena, and to confirm,
correct or adjust the order of the Oklahoma Tax Commission, as
required by law.
C. At the time of hearing upon a complaint filed pursuant to
this section, the Oklahoma Tax Commission shall bear the burden of
proof of supporting its action which is the subject matter of the
appeal.
D. Either the county assessor or the Oklahoma Tax Commission may
appeal the decision of the Court of Tax Review by filing a notice of
intent to appeal with the Clerk of the Court of Tax Review within ten
(10) calendar days of the date the final decision is rendered.
Appeal shall be made to the Oklahoma Supreme Court which shall affirm
the decision of the Court of Tax Review if supported by competent
evidence.
Added by Laws 1988, c. 162, § 83, eff. Jan. 1, 1992.
§68-2884. Payment and appeal of protested taxes.
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A. The full amount of the taxes assessed against the property of
any taxpayer who has appealed from a decision affecting the value or
taxable status of such property as provided by law shall be paid at
the time and in the manner provided by law. If at the time such
taxes or any part thereof become delinquent and any such appeal is
pending, it shall abate and be dismissed upon a showing that the
taxes have not been paid.
B. When such taxes are paid, or by December 31, whichever is
earlier, the persons protesting the taxes shall give notice to the
county treasurer that an appeal involving such taxes has been taken
and is pending, and shall set forth the total amount of tax that has
been paid under protest or required by law to be paid prior to April
1 that will be paid under protest. The notice shall be on a form
prescribed by the Tax Commission. If taxes are paid in two equal
installments and the amount paid under protest does not exceed fifty
percent (50%) of the full amount of assessed taxes, all protested
taxes shall be specified in the second installment payment. If such
amount does exceed fifty percent (50%) of the full amount of assessed
taxes, then the portion of protested taxes that exceeds fifty percent
(50%) of the full amount of assessed taxes shall be specified in the
first installment payment and the entire second installment shall be
specified to be paid under protest. The taxpayer shall attach to
such notice a copy of the petition filed in the court or other
appellate body in which the appeal was taken. For railroads, air
carriers, and public service corporations, the amount of taxes
protested shall not exceed the amount of tax calculated on the
protested assessed valuation specified in the complaint filed
pursuant to the provisions of subsection A of Section 2881 of this
title.
C. It shall be the duty of the county treasurer to hold taxes
paid under protest separate and apart from other taxes collected.
Any portion of such taxes not paid under protest shall be apportioned
as provided by law. Except as otherwise provided for in this
subsection, the treasurer shall invest the protested taxes in the
same manner as the treasurer invests surplus tax funds not paid under
protest, but shall select an interest-bearing investment medium which
will permit prompt refund or apportionment of the protested taxes
upon final determination of the appeal. In cases where the amount of
the protested ad valorem taxes by a taxpayer is in excess of Fifteen
Thousand Dollars ($15,000.00), the taxpayer may elect to choose the
type of investment and where the investment of the protested funds
will be deposited as long as the investment is of a type authorized
for the county, the depository institution qualifies as a county
depository, and the depository institution is located in the
applicable county.
D. 1. Prior to January 31 of each year, the county treasurer
shall determine the amount of ad valorem taxes paid under protest and
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those ad valorem taxes that will be paid under protest pursuant to
subsection B of this section. The county treasurer shall then notify
the State Auditor and Inspector of the total amount of paid protested
ad valorem taxes and anticipated protested ad valorem taxes, the
total amount of protested taxes and anticipated protested taxes by
each individual taxpayer, and how such paid protested ad valorem
taxes and anticipated protested ad valorem taxes would have been
apportioned to each school district and technology center school
district by fund had such amount of protested ad valorem taxes not
been protested.
2. The State Auditor and Inspector shall compile all of the
information submitted by the county treasurers in a format which
shall set forth the total amount of paid and anticipated protested
taxes for each school district and technology center school district
by fund and a total for each school district and technology center
school district by fund. This information shall then be submitted by
the State Auditor and Inspector to the State Superintendent of Public
Instruction, the Director of the Oklahoma Department of Career and
Technology Education, the Speaker of the House of Representatives,
and the President Pro Tempore of the Senate. If any of the
information submitted to the State Auditor and Inspector changes
after being submitted, the county treasurer shall notify the State
Auditor and Inspector and the State Auditor and Inspector shall
submit revised information to the parties enumerated in this
paragraph within thirty (30) days of such change.
3. Within ten (10) days of the release of the escrowed ad
valorem taxes by the county treasurer, as required by subsection E of
this section, the county treasurer shall submit a schedule showing
the disposition of the released funds, separated by fund for each
school district and technology center school, to the State Auditor
and Inspector. The State Auditor and Inspector shall certify the
apportionment schedule and transmit a copy to the State
Superintendent of Public Instruction and the Director of the Oklahoma
Department of Career and Technology Education.
4. The State Auditor and Inspector shall promulgate any
necessary rules to implement the provisions of this subsection.
E. 1. In cases involving taxpayers other than railroads, air
carriers, or public service corporations, if upon the final
determination of any such appeal, the court shall find that the
property was assessed at too great an amount, the board of
equalization from whose order the appeal was taken shall certify the
corrected valuation of the property of such taxpayers to the county
assessor, in accordance with the decision of the court, and shall
send a copy of such certificate to the county treasurer. Upon
receipt of the corrected certificate of valuation, the county
assessor shall compute and certify to the county treasurer the
correct amount of taxes payable by the taxpayer. The difference
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between the amount paid and the correct amount payable, with accrued
interest, shall be refunded by the treasurer to the taxpayer upon the
taxpayer filing a proper verified claim therefor, and the remainder
paid under protest, with accrued interest, shall be apportioned as
provided by law.
2. If upon the final determination of any appeal, the court
shall find that the property of the railroad, air carrier, or public
service corporation was assessed at too great an amount, the State
Board of Equalization from whose order the appeal was taken shall
certify the corrected valuation of the property of the railroads, air
carriers, and public service corporations to the State Auditor and
Inspector in accordance with the decision of the court. Upon receipt
of the corrected certificate of valuation, the State Auditor and
Inspector shall certify to the county treasurer the correct valuation
of the railroad, air carrier, or public service corporation and shall
send a copy of the certificate to the county assessor, who shall make
the correction as specified in Section 2871 of this title. The
difference between the amount paid and the correct amount payable
with accrued interest shall be refunded by the treasurer upon the
taxpayer filing a proper verified claim, and the remainder paid under
protest with accrued interest shall be apportioned according to law.
F. If an appeal is upon a question of valuation of the property,
then the amount paid under protest by reason of the question of
valuation being appealed shall be limited to the amount of taxes
assessed against the property for the year in question less the
amount of taxes which would be payable by the taxpayer for that year
if the valuation of the property asserted by the taxpayer in the
appeal were determined by the court to be correct. If an appeal is
timely filed by a taxpayer pursuant to subsection A of Section 2880.1
of this title, the amount of taxes payable by the taxpayer shall not
exceed the amount based upon the value originally submitted by the
assessor to the county board of equalization. If an appeal is timely
filed by the county assessor pursuant to subsection A of Section
2880.1 of this title, the amount of taxes payable by the taxpayer
shall not exceed the amount of taxes based upon the value assessed by
the county assessor and submitted to the board of equalization.
G. If an appeal is upon a question of assessment of the
property, then the amount paid under protest by reason of the
question of assessment being appealed shall be limited to the amount
of taxes assessed against the property for the year in question less
the amount of taxes which would be payable by the taxpayer for that
year if the assessment of the property asserted by the taxpayer in
the appeal was determined by the court to be correct.
Added by Laws 1988, c. 162, § 84, eff. Jan. 1, 1992. Amended by Laws
1992, c. 360, § 4, eff. July 1, 1992; Laws 1995, c. 158, § 2, emerg.
eff. May 2, 1995; Laws 1995, c. 325, § 2, eff. July 1, 1995; Laws
1997, c. 336, § 2, eff. July 1, 1997; Laws 1998, c. 405, § 10; Laws
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2001, c. 33, § 63, eff. July 1, 2001; Laws 2008, c. 416, § 1, eff.
July 1, 2008; Laws 2015, c. 263, § 3, emerg. eff. May 6, 2015.
§68-2885. Exclusiveness of remedies - Precedence of appeals.
A. The proceedings before the county assessor, boards of
equalization and appeals therefrom shall be the sole method by which
assessments or equalizations shall be corrected or taxes abated.
Equitable remedies shall be resorted to only where the aggrieved
party has no taxable property within the tax district of which
complaint is made.
B. Appeals taken from all boards of equalization shall have
precedence in the court to which they are taken.
Added by Laws 1988, c. 162, § 85, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 18, operative Jan. 1, 1992.
§68-2886. Illegality for which no appeal provided - Payment - Notice
of suit - Investment of protested taxes.
In all cases where the illegality of the tax is alleged to arise
by reason of some action from which the laws provide no appeal, the
aggrieved person shall pay the full amount of the taxes and give
notice of any lawsuit by such person at the time and in the manner
provided by Section 2884 of this title. It shall be the duty of the
county treasurer to hold, invest and disburse such taxes only in the
manner provided for by Section 2884 of this title.
Added by Laws 1988, c. 162, § 86, eff. Jan. 1, 1992. Amended by Laws
1991, c. 158, § 3, eff. Jan. 1, 1992; Laws 2000, c. 157, § 1, eff.
July 1, 2000.
§68-2887. Exempt property.
The following property shall be exempt from ad valorem taxation:
1. All property of the United States, and such property as may
be exempt by reason of treaty stipulations existing at statehood
between the Indians and the United States government, or by reason of
federal laws in effect at statehood, during the time such treaties or
federal laws are in force and effect. In instances where a federal
agency has obtained title to property through foreclosure, voluntary
or involuntary liquidation or bankruptcy, which was previously
subject to ad valorem taxation, the property may continue to be
assessed for ad valorem taxes if such federal agency has agreed to
pay such taxes;
2. All property of this state, and of the counties, school
districts, and municipalities of this state, including property
acquired for the use of such entities pursuant to the terms of a
lease-purchase agreement which provides for the passage of title or
the release of security interest, if applicable, upon payment of all
rental payments and an additional nominal amount;
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3. All property of any college or school, provided such property
is devoted exclusively and directly to the appropriate objects of
such college or school within this state and all property used
exclusively for nonprofit schools and colleges;
4. The books, papers, furniture and scientific or other
apparatus pertaining to any institution, college or society referred
to in paragraph 3 of this section, and devoted exclusively and
directly for the purpose above contemplated, and the like property of
students in any such institution or college, while such property is
used for the purpose of their education;
5. All fraternal orphan homes and other orphan homes;
6. All property used for free public libraries, free museums,
public cemeteries, or free public schools;
7. All property used exclusively and directly for fraternal or
religious purposes within this state.
For purposes of administering the exemption authorized by this
section and in order to determine whether a single family residential
property is used exclusively and directly for fraternal or religious
purposes, the fair cash value of a single family residential
property, for which an exemption is claimed as authorized by this
subsection, in excess of Two Hundred Fifty Thousand Dollars
($250,000.00) for the applicable assessment year shall not be exempt
from taxation;
8. All property of any charitable institution organized or
chartered under the laws of this state as a nonprofit or charitable
institution, provided the net income from such property is used
exclusively within this state for charitable purposes and no part of
such income inures to the benefit of any private stockholder,
including property which is not leased or rented to any person other
than a governmental body, a charitable institution or a member of the
general public who is authorized to be a tenant in property owned by
a charitable institution under Section 501(c)(3) of the Internal
Revenue Code and which includes but is not limited to an institution
that either:
a. additionally satisfies the income standards set forth
in Internal Revenue Service Revenue Procedure 96-32,
which may be audited by the county assessor of the
applicable county, in addition to other requirements of
this subparagraph, as a condition of obtaining and
maintaining the exemption, if:
(1) the property provides residential rental
accommodations regardless of whether services or
meals are provided, and
(2) the property:
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(a) is occupied as of the applicable January 1
assessment date if the structure is a single-
family dwelling, or
(b) has an average seventy-five percent (75%)
occupancy rate, based upon the total number
of units suitable for occupancy, during the
calendar year preceding the applicable
January 1 assessment date if the property
contains multiple structures suitable for
multi-family housing. The owner of any
property subject to the occupancy
requirements prescribed herein shall submit a
report to the county assessor of the county
in which the property is located no later
than December 15 each year regarding the
occupancy rate for the preceding eleven (11)
months. If the report indicates that the
average occupancy rate was less than seventy-
five percent (75%), the county assessor shall
determine the taxable value of the property
for the succeeding assessment year and the
property shall not be exempt for any
subsequent assessment year unless the average
occupancy rate is at least seventy-five
percent (75%) during the succeeding eleven-
month period. Except as provided in Section
178.6 of Title 60 of the Oklahoma Statutes,
no asset consisting of a single-family or
multi-family dwelling unit owned by an entity
the property of which would otherwise be
exempt pursuant to subparagraph a of this
paragraph shall be exempt from ad valorem
taxation if any such dwelling unit was
improved with or acquired with any portion of
proceeds from the sale of obligations issued
by any entity organized pursuant to Section
176 of Title 60 of the Oklahoma Statutes if
the interest income derived from such
obligations is exempt from federal income
tax, or
b. (1) for a facility constructed prior to January 1,
2006, is a continuum of care retirement community
providing housing for the aged, licensed under
Oklahoma law, owned by a nonprofit entity
recognized by the Internal Revenue Service as a
Section 501(c)(3) tax-exempt entity and located in
a county with a population of more than five
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hundred thousand (500,000) according to the latest
Federal Decennial Census, and
(2) (a) for a facility in which construction was
completed on or after January 1, 2006, is:
i. a continuum of care retirement community
providing housing for the aged, licensed
under Oklahoma law,
ii. owned by a nonprofit entity recognized
by the Internal Revenue Service as a
Section 501(c)(3) tax-exempt entity, and
iii. located in any county of the state
regardless of population, or
(b) for a facility other than a facility
described by division (1) of subparagraph b
of this paragraph and which is partially or
fully constructed prior to January 1, 2006,
is:
i. owned and occupied on or after January
1, 2006, by an entity that operates a
continuum of care retirement community
providing housing for the aged, licensed
under Oklahoma law,
ii. owned by a nonprofit entity recognized
by the Internal Revenue Service as a
Section 501(c)(3) tax-exempt entity, and
iii. is located in any county of the state
regardless of population;
9. All property used exclusively and directly for charitable
purposes within this state, provided the charity using said property
does not pay any rent or remuneration to the owner thereof unless the
owner is a charitable institution described in Section 501(c)(3) of
the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), or a
veterans' organization described in Section 501(c)(19) of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(19);
10. All property of any hospital established, organized and
operated by any person, partnership, association, organization,
trust, or corporation, as a nonprofit and charitable hospital,
provided the property and net income from such hospital are used
directly, solely, and exclusively within this state for charitable
purposes and that no part of such income shall inure to the benefit
of any individual, person, partner, shareholder, or stockholder, and
provided further that such hospital facilities shall be open to the
public without discrimination as to race, color or creed and
regardless of ability to pay, and that such hospital is licensed and
otherwise complies with the laws of this state relating to the
licensing and regulation of hospitals;
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11. All libraries and office equipment of ministers of the
Gospel actively engaged in ministerial work in the State of Oklahoma,
where said libraries and office equipment are being used by said
ministers in their ministerial work, shall be deemed to be used
exclusively for religious purposes and are declared to be within the
meaning of the term "religious purposes" as used in Article X,
Section 6 of the Constitution of the State of Oklahoma;
12. Household goods, tools, implements and livestock of every
person maintaining a home, not exceeding One Hundred Dollars
($100.00) in value or One Thousand Dollars ($1,000.00) in value if
Article X, Section 6 of the Oklahoma Constitution provides for an
exemption in such amount; and in addition thereto, there shall be
exempt from taxation on personal property the further sum of Two
Hundred Dollars ($200.00) to all enlisted and commissioned personnel,
whether on active duty or honorably discharged, who served in the
Armed Forces of the United States during:
a. the Spanish-American War,
b. the period beginning on April 6, 1917, and ending on
July 2, 1921,
c. the period beginning on December 6, 1941, and ending on
such date as the state of national emergency as
declared by the President of the United States shall
cease to exist, or
d. any other or future period during which a state of
national emergency shall have been or shall be declared
to exist by the Congress or the President of the United
States.
All surviving spouses made so by the death of such enlisted or
commissioned personnel, who are bona fide residents of this state,
shall be entitled to the above additional exemption provided in this
paragraph;
13. Family portraits;
14. All food and fuel provided in kind for the use of the family
not to exceed provisions for one (1) year's time, and all grain and
forage necessary to maintain for one (1) year the livestock used to
provide food for the family. No person from whom pay is received or
expected for board shall be considered a member of the family within
the intent and meaning of this paragraph;
15. All growing crops; and
16. All game animals, fowl and reptile, which are not being
grown for food or sale and which are kept exclusively for propagation
or exhibition, in private grounds or public parks in this state.
Added by Laws 1988, c. 162, § 87, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 19, operative Jan. 1, 1992; Laws 1990, c. 264, § 85,
eff. Jan. 1, 1992; Laws 1991, c. 249, § 9, eff. Jan. 1, 1992; Laws
1996, c. 187, § 1, eff. July 1, 1996; Laws 2000, c. 361, § 2, emerg.
eff. June 6, 2000; Laws 2001, c. 155, § 1, eff. Nov. 1, 2001; Laws
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2002, c. 476, § 5, emerg. eff. June 6, 2002; Laws 2003, c. 81, § 1,
eff. Jan. 1, 2004; Laws 2007, c. 254, § 1, eff. Jan. 1, 2008; Laws
2010, c. 304, § 2, eff. Nov. 1, 2010.
§68-2887.1. Application for exemption by charitable institutions.
A charitable institution requesting an exemption pursuant to the
provisions of paragraph 8 of Section 2887 of Title 68 of the Oklahoma
Statutes shall be required to file an application initially with the
county assessor of the county in which the property is located, and,
if the information contained in such application complies with the
requirements of paragraph 8 of Section 2887 of Title 68 of the
Oklahoma Statutes, the property shall be exempt from the date of
acquisition thereof by the charitable institution until the earlier
of the date of disposition of the property or the date of cessation
of compliance with the requirements of paragraph 8 of Section 2887 of
Title 68 of the Oklahoma Statutes. The charitable institution
annually shall evidence the continuing compliance with such
requirements by filing an affidavit with the county assessor, stating
whether and the extent to which the property continues to qualify for
the exemption.
Added by Laws 2000, c. 361, § 3, emerg. eff. June 6, 2000.
§68-2888. Homestead, rural homestead and urban homestead defined.
A. 1. The term "homestead", as used in the provisions of the Ad
Valorem Tax Code governing homestead exemptions, shall mean and
include the actual residence of a natural person who is a citizen of
the State of Oklahoma, provided the record actual ownership of such
residence be vested in such natural person residing and domiciled
thereon. Any single person of legal age, married couple and their
minor child or children, or the minor child or children of a deceased
person, whether residing together or separated, or surviving spouse
shall be allowed under Section 2801 et seq. of this title only one
homestead exemption in this state. No person or the family of such
person shall be required to be domiciled thereon if such person is in
the armed service of the United States in time of war or during a
state of national emergency as declared by the Congress or the
President of the United States, and such person shall not be required
to be domiciled thereon in order to assert or claim the exemption
provided in Section 2889 of this title, and such exemption may be
claimed by any agent of, or member of the family of, such person.
The surviving spouse and/or minor children of a deceased person shall
be considered record owners of the homestead where the title of
record in the office of the county clerk on January 1 is in the name
of the deceased, but in all other cases the deed or other evidence of
ownership must be of record in the office of the county clerk on
January 1 in order for any person to be qualified as the record
owner. However, a natural person actually owning, residing and
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domiciled in the residence on January 1 shall be deemed to be the
record owner of the residence on January 1, within the meaning of
this section, if the deed or other evidence of ownership of such
person, executed on or before January 1, be of record in the office
of the county clerk on or before February 1 immediately following.
Despite any provision to the contrary in this section, if a parent or
parents residing and domiciled in the residence own the residence
jointly with one or more of their children, whether residing together
or separated, and where the record joint ownership of the property is
recorded in the office of the county clerk in accordance with the
provisions of this section, the parent or parents residing and
domiciled in the residence shall be entitled to the entire homestead
exemption. A rural homestead shall not include more than one hundred
sixty (160) acres of land and the improvements thereon. An urban
homestead shall not include any land except the lot or lots, or the
unplatted tract, upon which are located the dwelling, garage, barn
and/or other outbuildings necessary or convenient for family use.
2. Despite any provision to the contrary in this section, the
person actually owning, residing and domiciled in the residence as of
the date of a tornado shall be deemed to be the record owner of the
residence on such date, within the meaning of this section, if the
deed or other evidence of ownership of such person, executed on or
before such date, be of record in the office of the county clerk on
or before such date. However, the provisions of this paragraph shall
only apply to any person who is eligible to claim the income tax
credit pursuant to Section 2357.29A of this title with respect to a
tornado or to any person whose primary residence was damaged or
destroyed in a tornado and who purchased or built a new primary
residence at a location within this state other than the location of
the damaged or destroyed residence. For the purposes of this
section, "tornado" means a tornado which occurred in calendar year
2013 or any subsequent tornado for which a Presidential Major
Disaster Declaration was issued.
B. The term "rural homestead" as used herein shall mean and
include any homestead located outside a city or town or outside any
platted subdivision or addition.
C. The term "urban homestead" as used herein shall mean and
include any homestead located within any city or town whether
incorporated or unincorporated, or located within a platted
subdivision or addition, whether such subdivision or addition be a
part of a city or town. In no case shall an urban homestead exceed
in area one (1) acre.
Added by Laws 1988, c. 162, § 88, eff. Jan. 1, 1992. Amended by Laws
1997, c. 138, § 1, eff. Nov. 1, 1997; Laws 2000, c. 314, § 27, emerg.
eff. June 5, 2000; Laws 2002, c. 190, § 3, emerg. eff. May 6, 2002;
Laws 2003, c. 374, § 6, emerg. eff. June 4, 2003; Laws 2013, c. 370,
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§ 6, emerg. eff. May 29, 2013; Laws 2014, c. 215, § 6, emerg. eff.
May 2, 2014; Laws 2014, c. 329, § 6, emerg. eff. May 23, 2014.
NOTE: Laws 2000, c. 157, § 3 repealed by Laws 2000, c. 314, § 30,
emerg. eff. June 5, 2000.
§68-2889. Homesteads - Classification - Exemption from ad valorem
taxation.
Homesteads, as defined in Section 2888 of this title, are hereby
classified for the purpose of taxation as provided in Section 22 of
Article X of the Oklahoma Constitution. All homesteads in this state
shall be assessed for taxation the same as other real property
therein, except that each homestead, as defined by Section 2801 et
seq. of this title, shall be exempted from all forms of ad valorem
taxation to the extent of One Thousand Dollars ($1,000.00) of the
assessed valuation.
Added by Laws 1988, c. 162, § 89, eff. Jan. 1, 1992. Amended by Laws
1997, c. 304, § 10, emerg. eff. May 29, 1997.
§68-2890. Additional homestead exemption.
A. In addition to the amount of the homestead exemption
authorized and allowed in Section 2889 of this title, an additional
exemption is hereby granted, to the extent of One Thousand Dollars
($1,000.00) of the assessed valuation on each homestead of heads of
households whose gross household income from all sources for the
preceding calendar year did not exceed Twenty Thousand Dollars
($20,000.00).
B. The term "gross household income" as used in this section
means the gross amount of income of every type, regardless of the
source, received by all persons occupying the same household, whether
such income was taxable or nontaxable for federal or state income tax
purposes, including pensions, annuities, federal Social Security,
unemployment payments, public assistance payments, alimony, support
money, workers' compensation, loss-of-time insurance payments,
capital gains and any other type of income received, and excluding
gifts. The term "gross household income" shall not include any
veterans' disability compensation payments. The term "head of
household" as used in this section means a person who as owner or
joint owner maintains a home and furnishes support for the home,
furnishings, and other material necessities.
C. The application for the additional homestead exemption shall
be made each year on or before March 15 or within thirty (30) days
from and after receipt by the taxpayer of notice of valuation
increase, whichever is later, and upon the form prescribed by the
Oklahoma Tax Commission, which shall require the taxpayer to certify
as to the amount of gross income. Upon request of the county
assessor, the Oklahoma Tax Commission shall assist in verifying the
correctness of the amount of the gross income.
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D. For persons sixty-five (65) years of age or older as of March
15 and who have previously qualified for the additional homestead
exemption, no annual application shall be required in order to
receive the exemption provided by this section; however, any person
whose gross household income in any calendar year exceeds the amount
specified in this section in order to qualify for the additional
homestead exemption shall notify the county assessor and the
additional exemption shall not be allowed for the applicable year.
Any executor or administrator of an estate within which is included a
homestead property exempt pursuant to the provisions of this section
shall notify the county assessor of the change in status of the
homestead property if such property is not the homestead of a person
who would be eligible for the exemption provided by this section.
Added by Laws 1988, c. 162, § 90, eff. Jan. 1, 1992. Amended by Laws
1991, c. 249, § 10, eff. Jan. 1, 1992; Laws 1996, c. 323, § 2, eff.
Jan. 1, 1997; Laws 2004, c. 447, § 8, emerg. eff. June 4, 2004; Laws
2016, c. 56, § 1, eff. Nov. 1, 2016.
§68-2890.1. Application for limit on fair cash value of homestead -
Qualifications for limitation.
A. The application for a limit on the fair cash value of
homestead property as provided for in Section 8C of Article X of the
Oklahoma Constitution shall be made on or before March 15 or within
thirty (30) days from and after receipt by the taxpayer of a notice
of valuation increase, whichever is later. The application shall be
made upon a form prescribed by the Oklahoma Tax Commission, which
shall require the taxpayer to certify as to the amount of gross
household income. As used in Section 8C of Article X of the Oklahoma
Constitution, “gross household income” shall be as defined in Section
2890 of this title. Upon request of the county assessor, the
Oklahoma Tax Commission shall assist in verifying the correctness of
the amount of the gross income.
B. For persons who have previously qualified for the limitation
on the fair cash value of homestead property as provided for in
Section 8C of Article X of the Oklahoma Constitution, no annual
application shall be required in order to be subject to the
limitation. However:
1. Any such person whose gross household income in any calendar
year exceeds the amount provided for in Section 8C of Article X of
the Oklahoma Constitution shall notify the county assessor and the
limitation shall not be allowed for the applicable year; and
2. Any such person who makes improvements to the property shall
notify the county assessor and the improvements shall be assessed in
accordance with law by the county assessor and added to the assessed
value of the property as provided in Section 8C of Article X of the
Oklahoma Constitution.
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C. Any executor or administrator of an estate within which is
included a homestead property subject to the limitation of the fair
cash value of homestead property as provided for in Section 8C of
Article X of the Oklahoma Constitution shall notify the county
assessor of the change in status of the homestead property if such
property is not the homestead of a person who would be eligible for
the limitation of the fair cash value of homestead property.
Added by Laws 1997, c. 304, § 11, emerg. eff. May 29, 1997. Amended
by Laws 2000, c. 314, § 28, eff. July 1, 2000; Laws 2004, c. 447, §
9, emerg. eff. June 4, 2004; Laws 2005, c. 1, § 114, emerg. eff.
March 15, 2005.
NOTE: Laws 2004, c. 383, § 1 repealed by Laws 2005, c. 1, § 115,
emerg. eff. March 15, 2005.
§68-2891. Homestead exemption - Forms.
On or before January 1st of each year, the Oklahoma Tax
Commission shall prescribe suitable blank forms to be used by all
claimants for homestead exemption. Such forms shall contain
provisions for the showing of all information which the Oklahoma Tax
Commission may deem necessary to enable the proper county officials
to determine whether each claim for exemption should be allowed. It
shall be the duty of the county assessor of each county in this state
to furnish such forms, upon request, to each person desiring to make
application for homestead exemption on property located within that
county. The forms so prescribed shall be used uniformly throughout
the state and no application for exemption shall be allowed unless
the applicant uses the regularly prescribed form in making his or her
application.
Added by Laws 1988, c. 162, § 91, eff. Jan. 1, 1992.
§68-2892. Homestead exemption - Application.
A. To receive a homestead exemption, a taxpayer shall be
required to file an application with the county assessor. Such
application may be filed at any time. However, the county assessor
shall, if such applicant otherwise qualifies, grant a homestead
exemption for a tax year only if the application is filed on or
before March 15 of such year or within thirty (30) days from and
after receipt by the taxpayer of notice of valuation increase,
whichever is later. Except as provided in this subsection, if an
application for a homestead exemption is filed after March 15 or
within thirty (30) days after receipt by the taxpayer of notice of
valuation increase, whichever is later, the county assessor shall, if
such applicant otherwise qualifies, grant the homestead exemption
beginning with the following tax year.
B. For any owner of real property who is eligible to claim the
income tax credit pursuant to Section 2357.29A of this title with
respect to a tornado or for any owner of real property whose primary
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residence was damaged or destroyed in a tornado and who purchased or
built a new primary residence at a location within this state other
than the location of the damaged or destroyed residence, the
application for a homestead exemption may be filed after March 15 and
the homestead exemption shall be granted for such year. For a
tornado occurring in calendar year 2013, the exemption may be filed
no later than June 1, 2014. For any subsequent tornado, the
exemption may be filed no later than June 1 of the year immediately
following the year during which the tornado occurred. For the
purposes of this section, "tornado" means a tornado which occurred in
calendar year 2013 or any subsequent tornado for which a Presidential
Major Disaster Declaration was issued.
C. Any taxpayer who has been granted a homestead exemption and
who continues to occupy such homestead property as a homestead, shall
not be required to reapply for such homestead exemption.
D. Once granted, the homestead exemption shall remain in full
force and effect for each succeeding year, so long as:
1. The record of actual property ownership is vested in the
taxpayer;
2. The instrument of ownership is on record in the county
clerk's office;
3. The owner-taxpayer is in all other respects entitled by law
to the homestead exemption; and
4. The taxpayer has no delinquent accounts appearing on the
personal property tax lien docket in the county treasurer's office.
On October 1 of each year, the county treasurer will provide a copy
of the personal property tax lien docket to the county assessor.
Based upon the personal property tax lien docket, the county assessor
shall act to cancel the homestead exemption of all property owners
having delinquent personal property taxes. Such cancellation of the
homestead exemption will become effective January 1 of the following
year and will remain in effect for at least one (1) calendar year;
however, such cancellation will not become effective January 1 of the
following year if the taxpayer pays such delinquent personal property
taxes prior to January 1. Cancellation of the homestead exemption
will require the county assessor to notify each taxpayer no later
than January 1 of the next calendar year whose homestead is canceled
and will require the taxpayer to refile an application for homestead
exemption by those dates so indicated in this section and the payment
of all delinquent personal property taxes before the homestead can be
reinstated.
E. Any purchaser or new owner of real property must file an
application for homestead exemption as herein provided.
F. The application for homestead exemption shall be filed with
the county assessor of the county in which the homestead is located.
A taxpayer applying for homestead exemption shall not be required to
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appear before the county assessor in person to submit such
application.
G. The property owner shall sign and swear to the truthfulness
and correctness of the application's contents. If the property owner
is a minor or incompetent, the legal guardian shall sign and swear to
the contents of the application.
H. The county assessor and duly appointed deputies are
authorized and empowered to administer the required oaths.
I. The taxpayer shall notify the county assessor following any
change in the use of property with homestead exemption thereon. The
notice of change in homestead exemption status of property shall be
in writing and may be filed with the county assessor at any time on
or before March 15 of the next following year after which such change
occurs. The filing of a deed or other instrument evidencing a change
of ownership or use shall constitute sufficient notice to the county
assessor.
J. Any single person of legal age, married couple and their
minor child or children, or the minor child or children of a deceased
person, whether residing together or separated, or surviving spouse
shall be allowed under this Code only one homestead exemption in the
State of Oklahoma.
K. Any property owner who fails to give notice of change to the
county assessor and permits the allowance of homestead exemption for
any succeeding year where such homestead exemption is unlawful and
improper shall owe the county treasurer:
1. An amount equal to twice the amount of the taxes lawfully due
but not paid by reason of such unlawful and improper allowance of
homestead exemption; and
2. The interest and penalty on such total sum as provided by
statutes on delinquent ad valorem taxes. There shall be a lien on
the property while such taxes are unpaid, but not for a period longer
than that provided by statute for other ad valorem tax liens.
L. Any person who has intentionally or knowingly permitted the
unlawful and improper allowance of homestead exemption shall forfeit
the right to a homestead exemption on any property in this state for
the two (2) succeeding years.
Added by Laws 1988, c. 162, § 92, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 20, operative Jan. 1, 1992; Laws 1990, c. 63, § 2,
eff. Jan. 1, 1992; Laws 1997, c. 345, § 3, eff. Nov. 1, 1997; Laws
1998, c. 405, § 11, eff. Nov. 1, 1998; Laws 2000, c. 314, § 29,
emerg. eff. June 5, 2000; Laws 2002, c. 190, § 4, emerg. eff. May 6,
2002; Laws 2003, c. 374, § 7, emerg. eff. June 4, 2003; Laws 2004, c.
447, § 10, emerg. eff. June 4, 2004; Laws 2013, c. 370, § 7, emerg.
eff. May 29, 2013; Laws 2014, c. 329, § 7, emerg. eff. May 23, 2014.
NOTE: Laws 2000, c. 157, § 4 repealed by Laws 2000, c. 314, § 30,
emerg. eff. June 5, 2000. Laws 2014, c. 215, § 7 repealed by Laws
2015, c. 54, § 25, emerg. eff. April 10, 2015.
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§68-2893. Homestead exemption - Approval or rejection - Notice.
The county assessor shall examine each application for homestead
exemption filed with him and shall determine whether or not such
application should be approved or rejected and if approved, determine
the amount of the exemption. If the application is approved, he
shall mark the same "approved" and show thereon the amount of
exemption allowed and make the proper deduction upon his assessment
rolls. In case he finds that the exemption should not be allowed by
reason of not being in conformity to law, he shall mark the
application "rejected" and state thereon the reason for such
rejection. In any case where the county assessor disallows or
reduces an application for exemption, he shall notify the applicant
of his action by mailing written notice to him at the address shown
in the application, which notice shall be on forms prescribed by the
Oklahoma Tax Commission. All applications for exemption, showing
thereon the action of the county assessor, shall be delivered to the
county board of equalization on or before the fourth Monday of April
of each year.
Added by Laws 1988, c. 162, § 93, eff. Jan. 1, 1992.
§68-2894. Homestead exemption - Review of applications by county
board of equalization.
The county board of equalization shall have the authority and it
shall be its duty to review any and all applications for homestead
exemption which may have been filed with the county assessor and to
make whatever order is necessary in order to grant homestead
exemption to all applicants who are legally entitled to such
exemption and prevent unlawful exemption on any property. If the
board disallows any exemption which has theretofore been allowed by
the county assessor, or changes the amount of exemption as allowed by
the county assessor, such disallowance or change shall not be final
until ten (10) days' notice in writing of said change shall have been
given the applicant, and an opportunity for a hearing afforded on
such disallowance or change.
Added by Laws 1988, c. 162, § 94, eff. Jan. 1, 1992.
§68-2895. Homestead exemption - Hearing before county board of
equalization when application rejected or amount changed - Appeal.
A. In any case where the county assessor or county board of
equalization disallows or rejects an application for homestead
exemption or changes the amount of said exemption from that claimed
by the applicant, said applicant may obtain a hearing before the
county board of equalization by filing a written complaint with the
secretary of said board within ten (10) days from receipt of the
notice from the county assessor or county board of equalization,
showing such rejection or change in amount, and said complaint shall
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specify his grievances, and the pertinent facts in relation thereto,
in ordinary and concise language and without repetition, and in such
manner as to enable a person of common understanding to know what is
intended; and the county board of equalization shall be authorized
and empowered to take evidence pertinent to said complaint; and for
that purpose, is authorized to compel the attendance of witnesses and
the production of books, records and papers, by subpoena.
B. The taxpayer shall have the right to appeal from the finding
of the board with reference to his application for homestead
exemption, as is or may be provided by law for appeals from the
county board of equalization on questions of valuation of property,
and the appeal shall be taken in the same manner and subject to the
same requirements.
Added by Laws 1988, c. 162, § 95, eff. Jan. 1, 1992.
§68-2896. Homesteads - Separate listing and assessment - Buildings
used for both dwelling and business or commercial purposes - Rural
homesteads.
A. All homesteads shall be separately listed and assessed and
separately described on the assessment rolls and tax rolls wherever
possible. No homestead exemption shall be allowed on any
improvements on real estate or other buildings which are used for
business or commercial purposes, but where the same improvement or
building is used both as a dwelling and for business purposes the
value of that portion used as a dwelling shall be considered to be a
part of the homestead and subject to exemption.
B. In any case where a building is used partially as a dwelling
and partially for business or commercial purposes, or where some
buildings on the same tract of land consist of the dwelling and
appurtenances and others are used for business or commercial
purposes, it shall be the duty of the county assessor to separately
value the dwelling and appurtenances and that part used for business
or commercial purposes. The keeping of boarders or roomers by
citizens in a building maintained otherwise exclusively as a home
shall not be considered as commercial purposes.
C. The location and use of a part of a building or buildings for
business or commercial purposes on a rural homestead shall not
prevent the owner of such homestead from obtaining an exemption on
one hundred sixty (160) acres of land; but in case of urban
homesteads where it is impossible to definitely separate by
description, land upon which the dwelling and appurtenances are
located, from the land upon which the business or commercial
buildings are located, only that proportion of the land shall be
considered a part of the homestead and subject to exemption which the
proportion of the assessed value of the dwelling and appurtenances
bears to the total assessed valuation of all buildings and
improvements on such lot or lots.
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D. In the case of rooming houses, duplexes, apartment buildings,
or any other building occupied by more than one family, and used
entirely for residential purposes, the homestead and part subject to
exemption shall be considered only that proportion of the total
assessed value of the land and improvements as the number of rooms
occupied by the owner bears to the total number of rooms of such
building. The renting of not to exceed three bedrooms shall not
constitute business or commercial use or affect the exemption of a
homestead and at no part of any hotel, motel, hostelry or apartment
hotel shall be exempt.
E. In the case of rural homesteads, the homestead shall consist
of not more than one hundred sixty (160) acres of land, which shall
include and be about and contiguous or adjacent to the land upon
which the dwelling house stands, to be selected by the owner, and the
land designated as the homestead shall, as nearly as possible,
consist of some legal subdivision of a section or sections.
Added by Laws 1988, c. 162, § 96, eff. Jan. 1, 1992.
§68-2897. Homestead exemption - Laws relating to assessment of
property not impaired.
No law relating to homestead exemption shall in any manner
affect, alter or impair any law relating to the assessment of
property, and each homestead which may be entitled to exemption shall
be assessed at its fair cash value, estimated at the price it would
bring at a fair voluntary sale as is provided by law.
Added by Laws 1988, c. 162, § 97, eff. Jan. 1, 1992.
§68-2898. Rules and regulations.
It shall be the duty of the Oklahoma Tax Commission to issue for
the information and guidance of the county assessors and county
boards of equalization proper rules and regulations, not inconsistent
with the provisions of the Ad Valorem Tax Code, affecting the
application, hearing, assessment or equalization of property which is
claimed to be entitled to the exemption granted by this Code.
Added by Laws 1988, c. 162, § 98, eff. Jan. 1, 1992.
§68-2899. County assessor - Report to Tax Commission.
It shall be the duty of each county assessor, on or before June
15 of each year unless delayed by court action or other extraordinary
circumstances certified by the Oklahoma Tax Commission, to make a
report to the Oklahoma Tax Commission upon forms to be prescribed and
furnished by the Oklahoma Tax Commission, showing the following
information which shall reflect the current balanced records of the
county assessor:
1. Total number of rural homesteads within his county; total
number of acres allowed homestead exemption; total assessed valuation
of rural homesteads before exemption; total amount of exemption
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allowed on the rural homesteads; and the total assessed valuation of
rural homesteads, less exemptions allowed.
2. Total number of urban homesteads within his county; total
number of lots allowed homestead exemption; total assessed valuation
of urban homesteads before exemption; total amount of exemption
allowed on urban homesteads; and the total assessed valuations of
urban homesteads, less exemptions allowed.
Added by Laws 1988, c. 162, § 99, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 21, operative Jan. 1, 1992; Laws 1994, c. 278, § 31,
eff. Sept. 1, 1994.
§68-2899.1. Requests to county assessors from law enforcement
organizations to keep personal information of undercover or cover
officers confidential.
A. All law enforcement organizations in the state of Oklahoma
shall be permitted to request to a county assessor that personal
information regarding undercover or covert law enforcement officers
not be made publicly available on the Internet, but instead kept in a
secure location at a county assessor's office where it may be made
available to authorized persons pursuant to law.
B. For purposes of this section, "personal information" shall
mean:
1. The home address of a person;
2. The home address of the spouse, domestic partner or minor
child of a person; and
3. Any telephone number or electronic mail address of a person.
C. Any law enforcement official who wishes to have the personal
information of an undercover or covert officer that is contained in
the records of a county assessor be kept confidential must obtain an
order of a court that requires the county assessor to maintain the
personal information of the person or entity in a confidential
manner. Such an order must be based on a sworn affidavit by the law
enforcement official, which affidavit:
1. States that the individual whose information is to be kept
confidential is an undercover or covert officer; and
2. Sets forth sufficient justification for the request for
confidentiality.
Upon receipt of such an order, a county assessor shall keep such
information confidential and shall not disclose the confidential
information to anyone not specifically authorized by law to view the
information, unless disclosure is specifically authorized in writing
by that person or the affiant. A county assessor shall not post such
confidential information on the Internet.
Added by Laws 2019, c. 219, § 1, emerg. eff. April 29, 2019.
§68-2900. Homestead exemption - Unlawful acts - Penalties.
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If any person make any false or fraudulent claim for exemption,
or make any false statement or false representation of a material
fact, in support of such claim, or any person who assists another in
the preparation of any such false or fraudulent claim, or enters into
any collusion with another by the execution of a fictitious deed, or
other instrument, for the purpose of obtaining unlawful homestead
exemption pursuant to the provisions of this Code, shall be guilty of
a misdemeanor and subject, upon conviction thereof, to a forfeiture
of the exemption herein granted for a period of two (2) years from
date of conviction, and to a fine of not less than Twenty-five
Dollars ($25.00), nor more than Two Hundred Dollars ($200.00), or by
imprisonment in the county jail for not more than six (6) months, or
both. Any person who shall make oath to any false or fraudulent
homestead exemption application shall be guilty of the felony of
perjury and, upon conviction, subject to the penalty provided by law
for the felony of perjury.
Added by Laws 1988, c. 162, § 100, eff. Jan. 1, 1992. Amended by
Laws 1997, c. 133, § 566, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 566 from July 1, 1998, to July 1, 1999.
§68-2901. Homestead exemption - Situs of taxpayer.
The claiming of a homestead exemption as provided by the Ad
Valorem Tax Code shall thereby fix the situs of such taxpayer in this
state for all income, estate and other taxes levied by the State of
Oklahoma.
Added by Laws 1988, c. 162, § 101, eff. Jan. 1, 1992.
§68-2902. Manufacturing facilities – Exemption from ad valorem tax.
A. Except as otherwise provided by subsection H of Section 3658
of this title pursuant to which the exemption authorized by this
section may not be claimed, a qualifying manufacturing concern, as
defined by Section 6B of Article X of the Oklahoma Constitution, and
as further defined herein, shall be exempt from the levy of any ad
valorem taxes upon new, expanded or acquired manufacturing
facilities, including facilities engaged in research and development,
for a period of five (5) years. The provisions of Section 6B of
Article X of the Oklahoma Constitution requiring an existing facility
to have been unoccupied for a period of twelve (12) months prior to
acquisition shall be construed as a qualification for a facility to
initially receive an exemption, and shall not be deemed to be a
qualification for that facility to continue to receive an exemption
in each of the four (4) years following the initial year for which
the exemption was granted. Such facilities are hereby classified for
the purposes of taxation as provided in Section 22 of Article X of
the Oklahoma Constitution.
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B. For purposes of this section, the following definitions shall
apply:
1. "Manufacturing facilities" means facilities engaged in the
mechanical or chemical transformation of materials or substances into
new products and except as provided by paragraph 8 of subsection C of
this section shall include:
a. establishments which have received a manufacturer
exemption permit pursuant to the provisions of Section
1359.2 of this title,
b. facilities, including repair and replacement parts,
primarily engaged in aircraft repair, building and
rebuilding whether or not on a factory basis,
c. establishments primarily engaged in computer services
and data processing as defined under Industrial Group
Numbers 5112 and 5415, and U.S. Industry Number 334611
and 519130 of the NAICS Manual, latest revision, and
which derive at least fifty percent (50%) of their
annual gross revenues from the sale of a product or
service to an out-of-state buyer or consumer, and as
defined under Industrial Group Number 5142 of the NAICS
Manual, latest revision, which derive at least eighty
percent (80%) of their annual gross revenues from the
sale of a product or service to an out-of-state buyer
or consumer. Eligibility as a manufacturing facility
pursuant to this subparagraph shall be established,
subject to review by the Oklahoma Tax Commission, by
annually filing an affidavit with the Tax Commission
stating that the facility so qualifies and such other
information as required by the Tax Commission. For
purposes of determining whether annual gross revenues
are derived from sales to out-of-state buyers, all
sales to the federal government shall be considered to
be an out-of-state buyer,
d. for which the investment cost of the construction,
acquisition or expansion of the manufacturing facility
is Two Hundred Fifty Thousand Dollars ($250,000.00) or
more. Provided, "investment cost" shall not include
the cost of direct replacement, refurbishment, repair
or maintenance of existing machinery or equipment,
except that "investment cost" shall include capital
expenditures for direct replacement, refurbishment,
repair or maintenance of existing machinery or
equipment that qualifies for depreciation and/or
amortization pursuant to the Internal Revenue Code of
1986, as amended, and such expenditures shall be
eligible as a part of an "expansion" that otherwise
qualifies under this section, and
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e. establishments primarily engaged in distribution as
defined under Industry Numbers 49311, 49312, 49313 and
49319 and Industry Sector Number 42 of the NAICS
Manual, latest revision, and which meet the following
qualifications:
(1) construction with an initial capital investment of
at least Five Million Dollars ($5,000,000.00),
(2) employment of at least one hundred (100) full-
time-equivalent employees, as certified by the
Oklahoma Employment Security Commission,
(3) payment of wages or salaries to its employees at a
wage which equals or exceeds one hundred seventy-
five percent (175%) of the federally mandated
minimum wage, as certified by the Oklahoma
Employment Security Commission, and
(4) commencement of construction on or after November
1, 2007, with construction to be completed within
three (3) years from the date of the commencement
of construction.
Eligibility as a manufacturing facility pursuant to this
subparagraph shall be established, subject to review by the Tax
Commission, by annually filing an affidavit with the Tax Commission
stating that the facility so qualifies and containing such other
information as required by the Tax Commission.
Provided, eating and drinking places, as well as other retail
establishments, shall not qualify as manufacturing facilities for
purposes of this section, nor shall centrally assessed properties.
Eligibility as a manufacturing facility pursuant to this
subparagraph shall be established, subject to review by the Tax
Commission, by annually filing an application with the Tax Commission
stating that the facility so qualifies and containing such other
information as required by the Tax Commission;
2. "Facility" and "facilities" means and includes the land,
buildings, structures, improvements, machinery, fixtures, equipment
and other personal property used directly and exclusively in the
manufacturing process; and
3. "Research and development" means activities directly related
to and conducted for the purpose of discovering, enhancing,
increasing or improving future or existing products or processes or
productivity.
C. The following provisions shall apply:
1. A manufacturing concern shall be entitled to the exemption
herein provided for each new manufacturing facility constructed, each
existing manufacturing facility acquired and the expansion of
existing manufacturing facilities on the same site, as such terms are
defined by Section 6B of Article X of the Oklahoma Constitution and
by this section;
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2. Except as otherwise provided in paragraph 5 of this
subsection, no manufacturing concern shall receive more than one
five-year exemption for any one manufacturing facility unless the
expansion which qualifies the manufacturing facility for an
additional five-year exemption meets the requirements of paragraph 4
of this subsection and the employment level established for any
previous exemption is maintained;
3. Any exemption as to the expansion of an existing
manufacturing facility shall be limited to the increase in ad valorem
taxes directly attributable to the expansion;
4. Except as provided in paragraphs 5 and 6 of this subsection,
all initial applications for any exemption for a new, acquired or
expanded manufacturing facility shall be granted only if:
a. there is a net increase in annualized base payroll over
the initial payroll of at least Two Hundred Fifty
Thousand Dollars ($250,000.00) if the facility is
located in a county with a population of fewer than
seventy-five thousand (75,000), according to the most
recent Federal Decennial Census, while maintaining or
increasing base payroll in subsequent years, or at
least One Million Dollars ($1,000,000.00) if the
facility is located in a county with a population of
seventy-five thousand (75,000) or more, according to
the most recent Federal Decennial Census, while
maintaining or increasing base payroll in subsequent
years; provided the payroll requirement of this
subparagraph shall be waived for claims for exemptions,
including claims previously denied or on appeal on
March 3, 2010, for all initial applications for
exemption filed on or after January 1, 2004, and on or
before March 31, 2009, and all subsequent annual
exemption applications filed related to the initial
application for exemption, for an applicant, if the
facility has been located in Oklahoma for at least
fifteen (15) years engaged in marine engine
manufacturing as defined under U.S. Industry Number
333618 of the NAICS Manual, latest revision, and has
maintained an average employment of five hundred (500)
or more full-time-equivalent employees over a ten-year
period. Any applicant that qualifies for the payroll
requirement waiver as outlined in the previous sentence
and subsequently closes its Oklahoma manufacturing
plant prior to January 1, 2012, may be disqualified for
exemption and subject to recapture. For an applicant
engaged in paperboard manufacturing as defined under
U.S. Industry Number 322130 of the NAICS Manual, latest
revision, union master payouts paid by the buyer of the
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facility to specified individuals employed by the
facility at the time of purchase, as specified under
the purchase agreement, shall be excluded from payroll
for purposes of this section.
In order to provide certainty with respect to
investments in manufacturing facilities pertaining to
all initial applications for exemption filed on or
after January 1, 2016, the following definitions shall
apply:
(1) "base payroll" shall mean total payroll adjusted
for any nonrecurring bonuses, exercise of stock
option or stock rights and other nonrecurring,
extraordinary items included in total payroll, and
(2) "initial payroll" shall mean base payroll for the
year immediately preceding the initial
construction, acquisition or expansion.
The Tax Commission shall verify payroll information
through the Oklahoma Employment Security Commission by
using reports from the Oklahoma Employment Security
Commission for the calendar year immediately preceding
the year for which initial application is made for
base-line payroll, which must be maintained or
increased for each subsequent year; provided, a
manufacturing facility shall have the option of
excluding from its payroll, for purposes of this
section:
i. payments to sole proprietors, members of
a partnership, members of a limited
liability company who own at least ten
percent (10%) of the capital of the
limited liability company or
stockholder-employees of a corporation
who own at least ten percent (10%) of
the stock in the corporation, and
ii. any nonrecurring bonuses, exercise of
stock option or stock rights or other
nonrecurring, extraordinary items
included in total payroll numbers as
reported by the Oklahoma Employment
Security Commission. A manufacturing
facility electing either option shall
indicate such election upon its
application for an exemption under this
section. Any manufacturing facility
electing either option shall submit such
information as the Tax Commission may
require in order to verify payroll
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information. Payroll information
submitted pursuant to the provisions of
this paragraph shall be submitted to the
Tax Commission and shall be subject to
the provisions of Section 205 of this
title, and
b. the facility offers, or will offer within one hundred
eighty (180) days of the date of employment, a basic
health benefits plan to the full-time-equivalent
employees of the facility, which is determined by the
Department of Commerce to consist of the elements
specified in subparagraph b of paragraph 1 of
subsection A of Section 3603 of this title or elements
substantially equivalent thereto.
For purposes of this section, calculation of the amount of
increased base payroll shall be measured from the start of initial
construction or expansion to the completion of such construction or
expansion or for three (3) years from the start of initial
construction or expansion, whichever occurs first. The amount of
increased base payroll shall include payroll for full-time-equivalent
employees in this state who are employed by an entity other than the
facility which has previously or is currently qualified to receive an
exemption pursuant to the provisions of this section and who are
leased or otherwise provided to the facility, if such employment did
not exist in this state prior to the start of initial construction or
expansion of the facility. The manufacturing concern shall submit an
affidavit to the Tax Commission, signed by an officer, stating that
the construction, acquisition or expansion of the facility will
result in a net increase in the annualized base payroll as required
by this paragraph and that full-time-equivalent employees of the
facility are or will be offered a basic health benefits plan as
required by this paragraph. If, after the completion of such
construction or expansion or after three (3) years from the start of
initial construction or expansion, whichever occurs first, the
construction, acquisition or expansion has not resulted in a net
increase in the amount of annualized base payroll, if required, or
any other qualification specified in this paragraph has not been met,
the manufacturing concern shall pay an amount equal to the amount of
any exemption granted, including penalties and interest thereon, to
the Tax Commission for deposit to the Ad Valorem Reimbursement Fund;
5. If a facility fails to meet the base payroll requirement of
subparagraph a of paragraph 4 of this subsection, the payroll
requirement shall be waived for claims for exemptions, including
claims previously denied or on appeal on June 1, 2009, for all
initial applications for exemption filed on or after January 1, 2004,
and on or before March 31, 2009, and all subsequent annual exemption
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applications filed related to such initial application for exemption,
for an applicant, if the facility:
a. has been located for at least five (5) years as of
March 31, 2009, in a county in Oklahoma with a
population of six hundred thousand (600,000) or more,
b. is owned by an applicant that has been engaged in
manufacturing as defined under U.S. Industry Numbers
323110, 323111, 323121 and 323122 of the NAICS Manual,
latest revision,
c. is owned by an applicant that maintains a workforce of
at least three hundred (300) employees on June 1, 2009,
d. is owned by an applicant that has filed multiple
applications for exemption pursuant to this section,
and
e. is owned by an applicant that operates at least one
facility in this state of at least seven hundred thirty
thousand (730,000) square feet on June 1, 2009.
In the event that any applicant obtaining a waiver of the payroll
requirement pursuant to this paragraph ceases to operate all of its
facilities in this state on or before a date that is four (4) years
after any initial application for an exemption is filed by such
applicant, all sums of property taxes exempted under this paragraph
through a waiver of the payroll requirement that relate to such
application shall become due and payable as if such sums were
assessed in the year in which the applicant ceases to operate all of
its facilities in the state;
6. Any new, acquired or expanded automotive final assembly
manufacturing facility which does not meet the requirements of
paragraph 4 of this subsection shall be granted an exemption only if
all other requirements of this section are met and only if the
investment cost of the construction, acquisition or expansion of the
manufacturing facility is Three Hundred Million Dollars
($300,000,000.00) or more and the manufacturing facility retains an
average employment of one thousand seven hundred fifty (1,750) or
more full-time-equivalent employees in the year in which the
exemption is initially granted and in each of the four (4) subsequent
years only if an average employment of one thousand seven hundred
fifty (1,750) or more full-time-equivalent employees is maintained in
the subsequent year. Any property installed to replace property
damaged by the tornado or natural disaster that occurred May 8, 2003,
may continue to receive the exemption provided in this paragraph for
the full five-year period based on the value of the previously
qualifying assets as of January 1, 2003. The exemption shall
continue in effect as long as all other qualifications in this
paragraph are met. If the average employment of one thousand seven
hundred fifty (1,750) or more full-time-equivalent employees is
reduced as a result of temporary layoffs because of a tornado or
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natural disaster on May 8, 2003, then the average employment
requirement shall be waived for year 2003 of the exemption period.
Calculation of the number of employees shall be made in the same
manner as required under Section 2357.4 of this title for an
investment tax credit. As used in this paragraph, "expand" and
"expansion" shall mean and include any increase to the size or scope
of a facility as well as any renovation, restoration, replacement or
remodeling of a facility which permits the manufacturing of a new or
redesigned product;
7. Any new, acquired, or expanded computer data processing, data
preparation, or information processing services provider classified
in Industrial Group Number 7374 of the SIC Manual, latest revision,
and U.S. Industry Number 514210 of the North American Industrial
Classification System (NAICS) Manual, latest revision, may apply for
exemptions under this section for each year in which new, acquired,
or expanded capital improvements to the facility are made if:
a. there is a net increase in annualized payroll of the
applicant at any facility or facilities of the
applicant in this state of at least Two Hundred Fifty
Thousand Dollars ($250,000.00), which is attributable
to the capital improvements, or a net increase of Seven
Million Dollars ($7,000,000.00) or more in capital
improvements, while maintaining or increasing payroll
at the facility or facilities in this state which are
included in the application, and
b. the facility offers, or will offer within one hundred
eighty (180) days of the date of employment of new
employees attributable to the capital improvements, a
basic health benefits plan to the full-time-equivalent
employees of the facility, which is determined by the
Department of Commerce to consist of the elements
specified in subparagraph b of paragraph 1 of
subsection A of Section 3603 of this title or elements
substantially equivalent thereto;
8. Effective January 1, 2017, an entity engaged in electric
power generation by means of wind, as described by the North American
Industry Classification System, No. 221119, shall not be defined as a
qualifying manufacturing concern for purposes of the exemption
otherwise authorized pursuant to Section 6B of Article X of the
Oklahoma Constitution or qualify as a "manufacturing facility" as
defined in this section. No initial application for exemption shall
be filed by or accepted from an entity engaged in electric power
generation by means of wind on or after January 1, 2018; and
9. An entity or applicant engaged in an industry as defined
under U.S. Industry Number 324110 of the NAICS Manual, latest
revision, which has applied for or been granted an exemption for a
time period which began on or after calendar year 2012 and before
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calendar year 2016 but which did not meet the payroll requirements of
subparagraph a of paragraph 4 of this subsection because of
nonrecurring bonuses, exercise of stock option or stock rights or
other nonrecurring, extraordinary items included in total payroll in
the previous year, shall be allowed an exemption, beginning with
calendar year 2016, for the number of years, including the calendar
year for which the exemption was denied, remaining in the entity's
five-year exemption period, provided such entity attains or increases
payroll at or above the initial or base payroll established for the
exemption.
D. 1. Except as provided in paragraph 2 of this subsection, the
five-year period of exemption from ad valorem taxes for any
qualifying manufacturing facility property shall begin on January 1
following the initial qualifying use of the property in the
manufacturing process.
2. The five-year period of exemption from ad valorem taxes for
any qualifying manufacturing facility, as specified in subparagraphs
a and b of this paragraph, which is located within a tax incentive
district created pursuant to the Local Development Act by a county
having a population of at least five hundred thousand (500,000),
according to the most recent Federal Decennial Census, shall begin on
January 1 following the expiration or termination of the ad valorem
exemption, abatement, or other incentive provided through the tax
incentive district. Facilities qualifying pursuant to this
subsection shall include:
a. a manufacturing facility as defined in subparagraph c
of paragraph 1 of subsection B of this section, and
b. an establishment primarily engaged in distribution as
defined under Industry Number 49311 of the North
American Industry Classification System for which the
initial capital investment was at least One Hundred
Eighty Million Dollars ($180,000,000.00); provided,
that the qualifying job creation and depreciable
property investment occurred prior to calendar year
2017 but not earlier than calendar year 2013.
E. Any person, firm or corporation claiming the exemption herein
provided for shall file each year for which exemption is claimed, an
application therefor with the county assessor of the county in which
the new, expanded or acquired facility is located. The application
shall be on a form or forms prescribed by the Tax Commission, and
shall be filed on or before March 15, except as provided in Section
2902.1 of this title, of each year in which the facility desires to
take the exemption or within thirty (30) days from and after receipt
by such person, firm or corporation of notice of valuation increase,
whichever is later. In a case where completion of the facility or
facilities will occur after January 1 of a given year, a facility may
apply to claim the ad valorem tax exemption for that year. If such
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facility is found to be qualified for exemption, the ad valorem tax
exemption provided for herein shall be granted for that entire year
and shall apply to the ad valorem valuation as of January 1 of that
given year. For applicants which qualify under the provisions of
subparagraph b of paragraph 1 of subsection B of this section, the
application shall include a copy of the affidavit and any other
information required to be filed with the Tax Commission.
F. The application shall be examined by the county assessor and
approved or rejected in the same manner as provided by law for
approval or rejection of claims for homestead exemptions. The
taxpayer shall have the same right of review by and appeal from the
county board of equalization, in the same manner and subject to the
same requirements as provided by law for review and appeals
concerning homestead exemption claims. Approved applications shall
be filed by the county assessor with the Tax Commission no later than
June 15, except as provided in Section 2902.1 of this title, of the
year in which the facility desires to take the exemption. Incomplete
applications and applications filed after June 15 will be declared
null and void by the Tax Commission. In the event that a taxpayer
qualified to receive an exemption pursuant to the provisions of this
section shall make payment of ad valorem taxes in excess of the
amount due, the county treasurer shall have the authority to credit
the taxpayer's real or personal property tax overpayment against
current taxes due. The county treasurer may establish a schedule of
up to five (5) years of credit to resolve the overpayment.
G. Nothing herein shall in any manner affect, alter or impair
any law relating to the assessment of property, and all property,
real or personal, which may be entitled to exemption hereunder shall
be valued and assessed as is other like property and as provided by
law. The valuation and assessment of property for which an exemption
is granted hereunder shall be performed by the Tax Commission.
H. The Tax Commission shall have the authority and duty to
prescribe forms and to promulgate rules as may be necessary to carry
out and administer the terms and provisions of this section.
Added by Laws 1988, c. 162, § 102, eff. Jan. 1, 1992. Amended by
Laws 1989, c. 221, § 2, eff. Jan. 1, 1992; Laws 1992, c. 396, § 2,
emerg. eff. June 11, 1992; Laws 1993, c. 68, § 1, emerg. eff. April
14, 1993; Laws 1993, c. 273, § 2, emerg. eff. May 27, 1993; Laws
1994, c. 278, § 32, eff. Sept. 1, 1994; Laws 1995, c. 337, § 10,
emerg. eff. June 9, 1995; Laws 1997, c. 190, § 5, eff. July 1, 1997;
Laws 1998, c. 301, § 15, eff. Nov. 1, 1998; Laws 1999, c. 134, § 1,
emerg. eff. April 28, 1999; Laws 1999, c. 181, § 1, emerg. eff. May
21, 1999; Laws 1999, c. 363, § 1, eff. Jan. 1, 2000; Laws 2000, c. 3,
§ 3, emerg. eff. March 2, 2000; Laws 2000, c. 339, § 20, emerg. eff.
June 6, 2000; Laws 2001, c. 5, § 45, emerg. eff. March 21, 2001; Laws
2001, c. 118, § 1, emerg. eff. April 23, 2001; Laws 2001, c. 358, §
22, eff. July 1, 2001; Laws 2002, c. 232, § 1, eff. Nov. 1, 2002;
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Laws 2002, c. 476, § 6, emerg. eff. June 6, 2002; Laws 2003, c. 3, §
72, emerg. eff. March 19, 2003; Laws 2003, c. 458, § 1, emerg. eff.
June 6, 2003; Laws 2004, c. 10, § 1, emerg. eff. March 15, 2004; Laws
2004, c. 447, § 11, emerg. eff. June 4, 2004; Laws 2005, c. 1, § 116,
emerg. eff. March 15, 2005; Laws 2005, c. 479, § 22, eff. July 1,
2005; Laws 2006, c. 16, § 72, emerg. eff. March 29, 2006; Laws 2006,
c. 281, § 30, emerg. eff. June 7, 2006; Laws 2007, c. 352, § 1, eff.
Nov. 1, 2007; Laws 2008, c. 440, § 12; Laws 2009, c. 2, § 28, emerg.
eff. March 12, 2009; Laws 2009, c. 426, § 13, emerg. eff. June 1,
2009; Laws 2010, c. 2, § 68, emerg. eff. March 3, 2010; Laws 2011, c.
383, § 1, eff. Jan. 1, 2012; Laws 2012, c. 306, § 1, emerg. eff. May
29, 2012; Laws 2015, c. 153, § 1, eff. Jan. 1, 2016; Laws 2016, c.
210, § 39, emerg. eff. April 26, 2016; Laws 2016, c. 317, § 3, eff.
Jan. 1, 2016; Laws 2019, c. 258, § 1, eff. Nov. 1, 2019.
NOTE: Laws 2000, c. 219, § 1 repealed by Laws 2001, c. 5, § 46,
emerg. eff. March 21, 2001. Laws 2002, c. 188, § 1 repealed by Laws
2002, c. 299, § 17, emerg. eff. May 23, 2002 and by Laws 2002, c.
476, § 8, emerg. eff. June 6, 2002. Laws 2002, c. 299, § 15 repealed
by Laws 2003, c. 3, § 73, emerg. eff. March 19, 2003. Laws 2003, c.
374, § 8 repealed by Laws 2004, c. 5, § 80, emerg. eff. March 1,
2004. Laws 2004, c. 5, § 79 repealed by Laws 2004, c. 317, § 3,
emerg. eff. May 19, 2004 and by Laws 2004, c. 447, § 22, emerg. eff.
June 4, 2004. Laws 2004, c. 317, § 2 repealed by Laws 2005, c. 1, §
117, emerg. eff. March 15, 2005. Laws 2005, c. 286, § 1 repealed by
Laws 2006, c. 16, § 73, emerg. eff. March 29, 2006. Laws 2008, c.
406, § 2 repealed by Laws 2009, c. 2, § 29, emerg. eff. March 12,
2009. Laws 2009, c. 387, § 2 repealed by Laws 2010, c. 2, § 69,
emerg. eff. March 3, 2010. Laws 2015, c. 335, § 2 repealed by Laws
2016, c. 210, § 40, emerg. eff. April 26, 2016.
§68-2902.1. Dates and activities to follow in administering Section
2902.
In order to administer subsection C of Section 2902 of this
title, the following dates and activities shall apply:
1. Any person, firm or corporation claiming the exemption herein
provided pursuant to subsection C of Section 2902 of this title shall
file, each year for which the exemption is claimed, an application
therefor with the county assessor of the county in which the new,
expanded or acquired facility is located. Such application shall be
on a form or forms prescribed by the Oklahoma Tax Commission and
shall be filed before July 1, 1993; and, thereafter subsequent years
of application for the exemption shall be filed on or before March 15
of the calendar year in which the facility desires to take the
exemption.
Provided, for those person, firms or corporations qualifying
pursuant to subsection C of Section 2902 of this title, the exemption
from ad valorem taxes shall continue in effect for the four (4)
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following years upon application as long as all requirements in
subsection C of Section 2902 of this title are met; and
2. Such application shall be examined by the county assessor and
approved or rejected by the county assessor in the same manner as
provided by law for approval or rejection of claims for homestead
exemptions. Any applicants rejected by the county assessor whose
applications were received before July 1, 1993, may protest any
rejection to the county equalization board which shall conduct
hearings to protest in the manner prescribed pursuant to Title 68 of
the Oklahoma Statutes. In the event the county equalization board
has adjourned and so is unable to conduct a review of the county
assessor’s rejection in tax year 1993, the board shall hear the
protest in 1994. Provided, applicants must appeal within thirty (30)
days of rejection. The applicant shall not be required to pay the
tax until appeal is heard by the county equalization board. In the
event payment is determined to be due by the county equalization
board, the company shall pay said tax, but no interest or penalty
shall be assessed or due. Approved applications shall be filed by
the county assessor with the Tax Commission no later than August 1,
1993. Incomplete applications and applications filed after such date
will be declared null and void by the Tax Commission.
Added by Laws 1993, c. 273, § 3, emerg. eff. May 27, 1993. Amended
by Laws 2004, c. 447, § 12, emerg. eff. June 4, 2004.
§68-2902.2. Intangible personal property tax exemption - Application
- Affidavit.
Any person, firm, or corporation claiming the exemption provided
in Section 6A of Article X of the Oklahoma Constitution, relating to
property moving through the state in interstate commerce, shall file
an application with the county assessor for each year for which the
exemption is claimed. The application shall be on a form prescribed
by the Oklahoma Tax Commission and shall be filed during the year in
which the tax is due, on or before March 15 or within thirty (30)
days from and after receipt by the taxpayer of a notice of valuation
increase, whichever is later. Claims filed for previous years shall
be declared null and void. Eligibility for the exemption shall be
established by annually filing an affidavit with the county assessor
stating that the property qualifies for exemption pursuant to the
provisions of Section 6A of Article X of the Oklahoma Constitution,
relating to property moving through the state in interstate commerce,
and such other information as may be required by the county assessor.
Each application for such an exemption shall be examined by the
county assessor in the same manner as applications for homestead
exemptions are examined pursuant to Section 2893 of this title.
Further, the applications shall be reviewed by the county board of
equalization in the same manner as homestead exemption applications
are reviewed pursuant to Section 2894 of this title and applicants
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shall have the same rights to review and appeal as provided in
Section 2895 of this title.
Added by Laws 2000, c. 10, § 1, emerg. eff. March 29, 2000. Amended
by Laws 2000, c. 314, § 24, eff. July 1, 2000; Laws 2002, c. 503, §
5, emerg. eff. June 7, 2002; Laws 2007, c. 346, § 5, eff. Jan. 1,
2008.
§68-2902.3. Qualified aircraft manufacturers – Reimbursement of
certain ad valorem taxes paid – Application – Agreement – Aircraft
Manufacturer Payment Fund – False or fraudulent application, claim,
etc. - Penalties.
A. As used in this section:
1. “Qualified aircraft manufacturer” means a corporation:
a. primarily engaged in the manufacture or repair of
aircraft components and replacement parts,
b. which is headquartered in this state and the primary
facilities of which are located in this state,
c. which, as of July 1, 2005, has wages in this state
totaling at least Eighty Million Dollars
($80,000,000.00) for the preceding twelve-month period,
and
d. which experienced a decline in annualized wages as a
result of the terrorist attacks on the United States on
September 11, 2001, and as a result of such decline, had
an application for a tax exemption pursuant to the
provisions of Section 2902 of Title 68 of the Oklahoma
Statutes denied or rejected by the Oklahoma Tax
Commission or a county assessor for one (1) or more
years beginning after such terrorist attacks and prior
to July 1, 2005; and
2. “Tax Commission” or “Commission” means the Oklahoma Tax
Commission.
B. A qualified aircraft manufacturer shall be eligible to enter
into an agreement with the Tax Commission for a period not to exceed
five (5) years. The agreement shall provide for the following:
1. For each year of the term of the agreement, the qualified
aircraft manufacturer shall agree to:
a. maintain Oklahoma wages during the period of the
agreement in an amount not less than one hundred percent
(100%) of the manufacturer’s wages for the twelve (12)
months preceding July 1, 2005,
b. maintain or increase its investment, based on original
cost, in real and personal property in this state in an
amount not less than one hundred percent (100%) of the
manufacturer’s level of investment, based on original
cost, as of July 1, 2005, and
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c. meet all other qualifications specified in this section
and provide documentation of such to the Tax Commission;
and
2. The Tax Commission shall agree to make payments to the
qualified aircraft manufacturer in the amount of ad valorem taxes
actually paid by the manufacturer in any year following the terrorist
attacks of September 11, 2001, but which would have been exempt from
ad valorem taxes pursuant to the provisions of Section 2902 of Title
68 of the Oklahoma Statutes if the manufacturer had not experienced a
decline in annualized wages as a result of such terrorist attacks.
Payments to a manufacturer shall not exceed the amount of such taxes
actually paid by the manufacturer prior to the date of the payment,
nor shall payments to a single manufacturer exceed a total of Two
Million Five Hundred Thousand Dollars ($2,500,000.00) over the five-
year period of the agreement or a total of Five Hundred Thousand
Dollars ($500,000.00) in any single fiscal year. If such amount is
insufficient to reimburse the manufacturer for ad valorem taxes
actually paid by the manufacturer in any year following the terrorist
attacks of September 11, 2001, but which would have been exempt from
ad valorem taxes pursuant to the provisions of Section 2902 of Title
68 of the Oklahoma Statutes if the manufacturer had not experienced a
decline in annualized wages as a result of such terrorist attacks,
any amount not reimbursed shall carry forward and may be paid in a
subsequent fiscal year subject to the limitations of this section;
provided, in no event shall payments be made after the expiration of
the agreement.
C. A qualified aircraft manufacturer shall make an initial
application to the Tax Commission to enter into an agreement pursuant
to the provisions of this section not later than September 1, 2005,
and upon approval, shall submit a claim for payment annually
thereafter for the remainder of the five-year period of the agreement
on a date specified by the Tax Commission. Such application and
claim shall be on a form prescribed by the Tax Commission and shall
contain such information as may be necessary for the Tax Commission
to determine if the qualifications and other requirements of this
section have been met. The determination shall be made upon
application of the manufacturer and annually thereafter as a
condition of receiving a payment pursuant to the provisions of this
section. Prior to approving a claim for payment, the Tax Commission
shall verify the information contained in the claim and shall verify
that all requirements of this section have been met as a condition of
making the payment.
D. If the qualified aircraft manufacturer does not meet the
terms of the agreement and all provisions of this section, payments
shall cease and shall not be resumed, and the agreement shall expire
and be void.
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E. A qualified aircraft manufacturer that has qualified pursuant
to this section may receive payments only in accordance with the
provisions under which it initially applied and was approved.
F. As soon as practicable after verification of the eligibility
of the qualified aircraft manufacturer as required by this section,
the Tax Commission shall issue a warrant to the manufacturer.
G. There is hereby created within the State Treasury a special
fund for the Tax Commission to be designated the “Aircraft
Manufacturer Payment Fund”. The Tax Commission is hereby authorized
and directed to withhold a portion of the taxes levied and collected
pursuant to Sections 1354 and 2355 of Title 68 of the Oklahoma
Statutes which would otherwise be apportioned to the General Revenue
Fund for deposit into the fund. The amount deposited shall equal the
sum of an amount required for making payments, as determined pursuant
to the provisions of this section. All of the amounts deposited in
such fund shall be used and expended by the Tax Commission solely for
the purposes and in the amounts authorized by this section. The
liability of the State of Oklahoma to make the investment payments
under this section shall be limited to the balance contained in the
fund created by this subsection.
H. The Tax Commission may promulgate rules necessary to
implement its duties and responsibilities under the provisions of
this section.
I. Any person making an application, claim for payment or any
report, return, statement or other instrument or providing any other
information pursuant to the provisions of this section who willfully
makes a false or fraudulent application, claim, report, return,
statement, invoice or other instrument or who willfully provides any
false or fraudulent information, or any person who willfully aids or
abets another in making such false or fraudulent application, claim,
report, return, statement, invoice or other instrument or who
willfully aids or abets another in providing any false or fraudulent
information, upon conviction, shall be guilty of a felony punishable
by the imposition of a fine not less than One Thousand Dollars
($1,000.00) and not more than Fifty Thousand Dollars ($50,000.00) or
imprisonment in the State Penitentiary for not less than two (2)
years and not more than five (5) years, or by both such fine and
imprisonment. Any person convicted of a violation of this section
shall be liable for the repayment of all investment payments which
were paid to the manufacturer. Interest shall be due on such
payments at the rate of ten percent (10%) per annum.
Added by Laws 2005, c. 461, § 1, eff. July 1, 2005.
§68-2902.4. Repealed by Laws 2017, c. 299, § 1, eff. Jan. 1, 2018.
§68-2902.5. Manufacturing facilities - Delay of exemption from ad
valorem tax.
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A. Notwithstanding any other provision of law, manufacturing
facilities applying for the exemption under Section 2902 of Title 68
of the Oklahoma Statutes on or after November 1, 2017, shall be
eligible to delay the five-year period of exemption from ad valorem
taxes following the expiration or termination of the ad valorem
exemption, abatement or other incentive provided through the tax
incentive district established pursuant to the Local Development Act.
For the purposes of this section, "exemption" shall mean the
exemption authorized by Section 6B of Article X of the Oklahoma
Constitution and Section 2902 of Title 68 of the Oklahoma Statutes.
B. In order to delay the exemption as provided in this section,
a manufacturing facility shall:
1. Create at least one hundred new jobs at the state index wage
provided for in paragraph 2 of subsection F of Section 3604 of Title
68 of the Oklahoma Statutes; and
2. Invest at least ten (10) times the investment cost in new
depreciable property required in paragraph 1 of subsection B of
Section 2902 of Title 68 of the Oklahoma Statutes.
C. The delay of the exemption shall not be available for any job
creation or investment of new depreciable property that occurred
prior to November 1, 2017, or the date of the creation of the tax
incentive district, whichever is later.
D. In order to delay the exemption, a tax incentive district
must be created pursuant to the Local Development Act and the
governing body established by the Local Development Act must notify
the Oklahoma Tax Commission and the Oklahoma Department of Commerce
at the time of applying for the exemption.
E. Prior to the investment and job creation activities required
pursuant to subsection B of this section commencing by the company or
companies in the tax incentive district, the governing body of the
tax incentive district shall notify the Oklahoma Department of
Commerce in writing of the creation of the tax incentive district.
The governing body of the tax incentive district shall provide to the
Oklahoma Department of Commerce the following information:
1. Company (or companies) name and contact information;
2. Complete description of the economic development activity
including projected new job creation, projected wages of the new
jobs, and planned investment in new depreciable property; and
3. Any other information requested by the Oklahoma Department of
Commerce.
The Oklahoma Department of Commerce, in conjunction with the
Oklahoma Tax Commission, shall conduct a fiscal and economic impact
of the proposed project. If the project has no adverse fiscal impact
and a positive economic impact, the project will be referred to the
Incentive Approval Committee created in subsection B of Section 3603
of Title 68 of the Oklahoma Statutes for review of the project. If
the Incentive Approval Committee approves the project for delay of
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the exemption, the Oklahoma Department of Commerce shall prepare a
contract between the Oklahoma Department of Commerce, on behalf of
the State of Oklahoma, and the company or companies that will be
awarded a delay of the exemption. Once the contract is executed by
the parties, the contract will be forwarded to the Oklahoma Tax
Commission. The Oklahoma Tax Commission shall be responsible for
monitoring the terms and conditions of the contract between the
Oklahoma Department of Commerce and the company or companies that
have been awarded a delay of the exemption.
F. If the application for an exemption is approved, the five-
year period of exemption from ad valorem taxes for any qualifying
manufacturing facility shall begin on January 1 following the
expiration or termination of the ad valorem exemption, abatement or
other incentive provided through the tax incentive district.
G. This section shall not apply to electric power generation
facilities. Electric power generation facilities shall not qualify
to delay the exemption from ad valorem taxes following the expiration
or termination of the ad valorem exemption, abatement or other
incentive provided through the tax incentive district pursuant to the
Local Development Act.
Added by Laws 2017, c. 334, § 1, eff. Nov. 1, 2017.
§68-2903. Rural water or sewer district - Exemption from ad valorem
and other taxes.
All property, both real and personal, of any rural water or sewer
district, as defined in the "Rural Water and Sewer Districts Act"
contained in Chapter 266, Oklahoma Session Laws 1963, as amended
(Chapter 18, Title 82, O.S. Supp. 1969), and created and organized
for the purposes therein described, but which districts are
incorporated as nonprofit corporations under the provisions of
Chapter 13, Oklahoma Session Laws 1968 (Chapter 19, Title 18, O.S.
Supp. 1969), shall be exempt from all ad valorem taxation. The motor
vehicles or other vehicles of any such district shall be registered
and licensed each year for a license fee of One Dollar ($1.00), and
said districts shall be exempt from sales and use taxes.
Added by Laws 1988, c. 162, § 103, eff. Jan. 1, 1992.
§68-2904. Definitions.
The following words when used in Sections 104 through 111 of this
act shall have the following meanings, unless otherwise qualified by
the context:
1. "Claimant" means a person who has filed a claim pursuant to
Section 106 of this act.
2. "Disabled person" means a person unable to engage in any
substantial gainful activity by reason of a medically determined
physical or mental impairment which can be expected to last for a
continuous period of twelve (12) months or more. Proof of disability
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may be established by certification by an agency of state government,
an insurance company, or as may be required by the Oklahoma Tax
Commission. Eligibility to receive disability benefits under the
Federal Social Security Act shall constitute proof of disability, for
purposes of said sections.
3. "Gross household income" means the gross amount of income of
every type, regardless of the source, received by all persons
occupying the same household, whether such income was taxable or
nontaxable for federal or state income tax purposes, including
pensions, annuities, federal social security, unemployment payments,
veterans' disability compensation, public assistance payments,
alimony, support money, workers' compensation, loss-of-time insurance
payments, capital gains and any other type of income received; and
excluding gifts.
4. "Head of household" means a person who as owner or joint
owner maintains a home and furnishes his own support for said home,
furnishings and other material necessities.
5. "Household" means any house, dwelling or other type of living
quarters, and the real property thereof, occupied by the owner or
joint owners as a residence, subject to ad valorem taxation.
6. "Property taxes" means the ad valorem taxes on the household
actually paid by the head of the household for the preceding calendar
year.
Added by Laws 1988, c. 162, § 104, eff. Jan. 1, 1992.
§68-2905. Persons 65 years of age or older or totally disabled
person - Application and administration of Sections 2904 to 2911.
The provisions of Sections 2904 through 2911 of this title shall
apply only to persons sixty-five (65) years of age or older or to any
totally disabled person, who is head of a household, was a resident
of and domiciled in this state during the entire preceding calendar
year, and whose gross household income does not exceed the amount of
Twelve Thousand Dollars ($12,000.00) for any calendar year. The
provisions of these sections shall be administered by the Oklahoma
Tax Commission, which shall devise and furnish appropriate forms for
claims, reports of household income, proof of property taxes paid,
and such other forms as may be deemed necessary to support claims
made pursuant to said sections.
Added by Laws 1988, c. 162, § 105, eff. Jan. 1, 1992. Amended by
Laws 1996, c. 323, § 3, eff. Jan. 1, 1997.
§68-2906. Person 65 years of age or older or totally disabled person
- Filing of claim.
Any person sixty-five (65) years of age or older or any totally
disabled person, who is the head of a household, a resident of and
domiciled in this state during the entire preceding calendar year,
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and whose gross household income for such year does not exceed Twelve
Thousand Dollars ($12,000.00) may file a claim for property tax
relief on the amount of property taxes paid on the household occupied
by such person during the preceding calendar year. Each head of
household shall be allowed to file only one claim per year.
Added by Laws 1988, c. 162, § 106, eff. Jan. 1, 1992. Amended by
Laws 1996, c. 323, § 4, eff. Jan. 1, 1997.
§68-2907. Person 65 years of age or older or totally disabled person
- Amount of claim - Right to file claim.
A. The amount of any claim filed pursuant to Section 108 of this
act shall be for the amount of the property taxes paid by the
claimant for the preceding calendar year which exceeds one percent
(1%) of the household income, but no claim for property tax relief
shall exceed Two Hundred Dollars ($200.00).
B. The right to file a claim and to receive property tax relief
under the provisions of this act shall be personal to the claimant
and shall not survive his death, except that a surviving spouse of
the claimant may receive benefits hereunder upon the timely filing of
a claim.
Added by Laws 1988, c. 162, § 107, eff. Jan. 1, 1992.
§68-2908. Persons 65 years of age or older or totally disabled
person - Time for filing claims - Income tax credit.
All claims for relief in respect to property taxes authorized by
Sections 104 through 111 of this act shall be received by and in the
possession of the Oklahoma Tax Commission on or before June 30, 1992,
for property taxes paid for the year 1991, and on or before June 30
each year thereafter for property taxes paid for the preceding
calendar year. Claimants shall be allowed a direct credit against
income taxes owed by such claimant to the State of Oklahoma for the
amount of his claim, in which case such claim shall be filed with
claimant's income tax return.
Added by Laws 1988, c. 162, § 108, eff. Jan. 1, 1992.
§68-2909. Persons 65 years of age or older or totally disabled
person - Proof supporting claim - Forms.
Every person filing a claim under Sections 104 through 111 of
this act shall furnish the Oklahoma Tax Commission information and
proof of age, household members, disability, amount of property taxes
paid, changes, if any, of households, amount of gross income of
household, and such other information as the Oklahoma Tax Commission
may require. Claims and supporting proof must be on forms prescribed
by the Oklahoma Tax Commission.
Added by Laws 1988, c. 162, § 109, eff. Jan. 1, 1992.
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§68-2910. Persons 65 years of age or older or totally disabled
person - Audit of claims - Hearing.
A. The Oklahoma Tax Commission shall, within a reasonable time
after receipt of a claim, audit said claim for correctness and
payment. If the Oklahoma Tax Commission determines the amount of a
claim to be incorrect or excessive, or the supporting proof to be
inadequate, or that the claim should be disallowed for any other
reason, it shall notify the claimant by mail of the correct amount,
if any, for which the claim can be allowed or the finding and reasons
for disallowance of the claim. The claimant may, within thirty (30)
days after the date the notice is mailed by the Oklahoma Tax
Commission, submit further or additional proof in support of his
claim or request an oral hearing before the Oklahoma Tax Commission.
B. Upon request for a hearing, the Oklahoma Tax Commission shall
notify claimant in writing of the date, place and time of the
hearing. The hearing date shall not be less than ten (10) days from
the date of mailing the written hearing notice to the claimant. Upon
examination of the claimant's additional proof or after the oral
hearing, the Oklahoma Tax Commission shall enter an order in
accordance with its findings. The order of the Oklahoma Tax
Commission shall be final.
Added by Laws 1988, c. 162, § 110, eff. Jan. 1, 1992.
§68-2911. Persons 65 years of age or older or totally disabled
person - Direct income tax credit - Payment of claims.
Claims for property tax relief filed under Sections 104 through
111 of this act shall be allowed as a direct tax credit on the
taxpayer's individual income tax return filed for the calendar year
1991 and each year thereafter. In all cases where claimants have no
income tax liability or where the property tax relief authorized by
this act exceeds the claimant's income tax liability, such claim, or
any balance thereof, shall be paid out in the same manner and out of
the same fund as refunds of income taxes are paid and so much of said
fund as is necessary for such purposes is hereby appropriated.
Added by Laws 1988, c. 162, § 111, eff. Jan. 1, 1992.
§68-2912. Taxes on real estate as lien.
As between grantor and grantee of any land where there is no
express agreement as to who shall pay the taxes that may be assessed
thereon, taxes on any real estate shall become a lien on such real
estate on October 1 of each year, and if such real estate is conveyed
after said date the grantor shall pay such taxes, and if conveyed on
or prior to October 1st of such year the grantee shall pay such
taxes.
Added by Laws 1988, c. 162, § 112, eff. Jan. 1, 1992.
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§68-2913. Due date of ad valorem taxes - Penalty on delinquent taxes
- Collection of taxes.
A. All taxes levied upon an ad valorem basis for each fiscal
year shall become due and payable on the first day of November.
Except for mortgage servicers, the exclusive method for payment shall
be as follows:
1. Unless one-half (1/2) of the taxes so levied has been paid
before the first day of January, the entire tax levy for such fiscal
year shall become delinquent on that date.
2. If the first half of the taxes levied upon an ad valorem
basis for any such fiscal year has been paid before the first day of
January, the second half shall be paid before the first day of April
thereafter and if not paid shall become delinquent on that date.
In no event may payment be made in more than two equal
installments subject to the provisions of the payment schedule
specified in this subsection.
B. Mortgage servicers, as defined in 24 C.F.R., part 3500.17,
shall pay all accounts which they are servicing in one annual payment
before the first day of January or the entire tax levy for such
fiscal year shall become delinquent on that date.
C. If the total tax owed is Twenty-five Dollars ($25.00) or
less, then the total amount must be paid before January 1. If the
total tax is not paid before January 1, the unpaid balance owing
shall become delinquent on the first day of January and shall be
subject to delinquent charges as provided for in this section.
D. All delinquent taxes shall bear interest at the rate of one
and one-half percent (1 1/2%) per month or major fraction thereof
until paid. In no event shall such interest exceed a sum equal to
the unpaid principal amount of tax, and when such interest has
accumulated to a sum equivalent to one hundred percent (100%) of the
unpaid tax the further accumulation of interest shall cease.
E. In addition to any other penalties prescribed by law,
delinquent taxes shall be subject to a late payment penalty of five
percent (5%) per month or a major fraction thereof until paid. The
penalty assessed herein shall only apply to delinquent taxes that are
due on property located in a dependent school district in a county
with a population of less than seventy-five thousand (75,000)
according to the most recent Federal Decennial Census and held by a
nonindividual taxpayer when the tax has been paid delinquent for two
(2) or more separate and consecutive years and the fair cash value of
the property exceeds Five Hundred Thousand Dollars ($500,000.00).
F. The county treasurer shall stamp the date of receipt on each
letter received containing funds for payment of taxes and no interest
shall be added or charged after the receipt of such letter or the
amount due. It shall be the duty of every person subject to taxation
according to the law to attend the county treasurer's office and pay
his or her taxes. If any person neglects to pay his or her taxes
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until after they have become delinquent, the county treasurer is
directed and required to collect the delinquent tax as provided for
by law. The first half of taxes payable pursuant to the provisions
of this section shall not become delinquent until thirty (30) days
after the tax rolls have become completed and filed by the county
assessor with the county treasurer.
G. The county treasurer may waive penalties or interest in any
case where it is shown to the county treasurer that such penalties or
interest were incurred through no fault of the taxpayer. Each waiver
of penalties or interest shall be audited by the Office of the State
Auditor and Inspector each year during the annual audit of the county
offices.
Added by Laws 1988, c. 162, § 113, eff. Jan. 1, 1992. Amended by
Laws 1991, c. 47, § 3, eff. Jan. 1, 1992; Laws 1996, c. 94, § 1, eff.
Nov. 1, 1996; Laws 1998, c. 287, § 1, emerg. eff. May 27, 1998; Laws
2006, c. 77, § 4, eff. July 1, 2006; Laws 2008, c. 436, § 6, eff.
Jan. 1, 2009.
§68-2914. County treasurer - Collection of taxes.
The county treasurer of each county upon receipt of the tax rolls
shall proceed with the collection of the taxes as therein extended,
issuing, in triplicate, receipts upon all collections, delivering the
original to the taxpayer and filing the triplicate with the county
clerk. Such receipts shall be, in manner and form, the same as the
tax rolls, and shall have endorsed thereon in red ink the amount of
delinquent taxes levied against the property.
Added by Laws 1988, c. 162, § 114, eff. Jan. 1, 1992.
§68-2915. Duty to pay taxes - Statement of taxes due.
A. It shall be the duty of every person subject to taxation
under the Ad Valorem Tax Code, Section 2801 et seq. of this title, to
attend the treasurer's office and pay taxes, and if any person
neglects to attend and pay taxes until after they have become
delinquent, the treasurer shall collect the same in the manner
provided by law. If any person owing taxes, removes from one county
to another in this state, the county treasurer shall forward the tax
claim to the treasurer of the county to which the person has removed,
and the taxes shall be collected by the county treasurer of the
latter place as other taxes and returned to the proper county, less
legal charges. The county treasurer may visit, in person or by
deputy, places other than the county seat for the purpose of
receiving taxes. Nothing herein shall be so construed as to prevent
an agent of any person subject to taxation from paying the taxes.
B. The county treasurer of each county shall, within thirty (30)
days after the tax rolls have been completed and delivered to the
office of the county treasurer by the county assessor, mail to each
taxpayer at the taxpayer's last-known address a statement showing
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separately the amount of all ad valorem taxes assessed against the
taxpayer's real and personal property for the current year and all
delinquent taxes remaining unpaid thereon for previous years. At the
county treasurer’s option, in lieu of regular mailing, the treasurer
may instead send the tax statement to the taxpayer by electronic mail
provided the taxpayer has submitted a written request to receive such
statements by electronic mail instead of by regular mail. It is
expressly provided, however, that failure of any taxpayer to receive
such statement, or failure of the treasurer to so mail the same,
shall not in any way extend the date by which such taxes shall be due
and payable nor relieve the taxpayer of the duty and responsibility
of paying same as provided by law.
C. The statement required by this section shall contain an
explanation of how the ad valorem tax bill is calculated using
language so that a person of common understanding would know what is
intended. The statement shall also contain an explanation of the
manner in which ad valorem taxes are apportioned between the county,
school district or other jurisdiction levying ad valorem taxes and
shall identify the apportionment of the taxes for the current year on
the subject property. The State Auditor and Inspector shall
promulgate rules necessary to implement the provisions of this
subsection.
D. It shall be the mandatory duty of the county treasurer to
request an appropriation for necessary postage and expense to defray
the cost of furnishing taxpayers the statement herein provided and it
shall be the mandatory duty of the board of county commissioners and
the county excise board to make such appropriation.
Added by Laws 1988, c. 162, § 115, eff. Jan. 1, 1992. Amended by
Laws 1991, c. 47, § 4, eff. Jan. 1, 1992; Laws 1996, c. 323, § 5,
eff. July 1, 1997; Laws 1997, c. 340, § 3, emerg. eff. June 9, 1997;
Laws 2011, c. 79, § 1.
NOTE: Laws 1997, c. 304, § 12 repealed by Laws 1998, c. 5, § 29,
emerg. eff. March 4, 1998.
§68-2916. Mediums in which taxes payable - Tax receipts.
All state, county, school district, city, town, or other taxes
shall be paid to the county treasurer, either in lawful currency, or
by check or draft upon a bank therein stated, or by post office or
express order, or at the option of the county treasurer, by a
nationally recognized credit or debit card as determined acceptable
by the Oklahoma Tax Commission. If payment is made by a credit or
debit card, the county treasurer may add an amount equal to the
amount of the service charge incurred for the acceptance of such
card. County treasurers may enter into contracts for credit card
processing services according to applicable county purchasing law or
may enter into agreements with the State Treasurer to participate in
any credit card processing agreements entered into by the State
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Treasurer. It shall be unlawful for any county treasurer to receive
in payment of any taxes to be collected, any state, county, school
district, city or town warrants. No county treasurer shall be
required to execute a tax receipt for any taxes except those paid in
lawful money, until the check, draft, post office or express order
has been actually paid, and in case any such check, draft, post
office or express order should prove to be worthless, it shall not
operate as a payment of the tax for the payment of which it was
given, and any tax receipt or other receipt given therefor shall be
illegal and void. Further, the county treasurer has the option of
requiring cash as the method of payment if the taxpayer has
previously issued bad or hot checks.
Added by Laws 1988, c. 162, § 116, eff. Jan. 1, 1992. Amended by
Laws 1997, c. 144, § 3, eff. July 1, 1997; Laws 1997, c. 340, § 4,
emerg. eff. June 9, 1997; Laws 2006, c. 77, § 5, eff. July 1, 2006.
§68-2917. Form of tax receipt - Furnishing list of items and rates
of tax levy.
The receipts for taxes issued by the county treasurers shall be
in the form prescribed by the State Auditor and Inspector. The said
county treasurer shall furnish, when requested, a printed list of the
several items and rates of tax levy, by and upon which such tax is
authorized to be collected.
Added by Laws 1988, c. 162, § 117, eff. Jan. 1, 1992.
§68-2918. Numbering tax receipts.
All tax receipts issued by the county treasurer shall be numbered
and the treasurer shall not receipt for more than one (1) year's
taxes on the same property in one tax receipt, but shall keep a
separate and distinct receipt, issued for the taxes of each year for
which the same have been levied and assessed.
Added by Laws 1988, c. 162, § 118, eff. Jan. 1, 1992. Amended by
Laws 2005, c. 47, § 1, eff. Nov. 1, 2005.
§68-2919. County treasurer's entry upon payment of tax.
Whenever any taxes are paid, the county treasurer shall write
upon the tax roll, opposite the description of the real estate or
property whereon the same were levied, the word "Paid", together with
the date of such payment and the name of the person paying the same.
Added by Laws 1988, c. 162, § 119, eff. Jan. 1, 1992.
§68-2920. Fraudulent tax receipt a felony.
If any county treasurer in this state or his deputy, or any other
person shall knowingly and willfully make, issue, and deliver any tax
receipt, or duplicate tax receipt, required to be issued, by
fraudulently making the tax receipt and its duplicate, or the paper
purporting to be its duplicate, different from each other with the
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intent to defraud the State of Oklahoma or any county in said state
or any person whomsoever, such county treasurer or deputy treasurer
or other person shall be deemed guilty of a felony, and on conviction
thereof shall be sentenced to imprisonment in the State Penitentiary
for a time not less than one (1) year nor more than five (5) years.
Added by Laws 1988, c. 162, § 120, eff. Jan. 1, 1992. Amended by
Laws 1997, c. 133, § 567, eff. July 1, 1999; Laws 1999, 1st Ex.Sess.,
c. 5, § 411, eff. July 1, 1999.
NOTE: Laws 1998, 1st Ex.Sess., c. 2, § 23 amended the effective date
of Laws 1997, c. 133, § 567 from July 1, 1998, to July 1, 1999.
§68-2921. County treasurer records.
The county treasurer shall keep a record in the form prescribed
by the State Auditor and Inspector, and at the close of each day's
business shall enter up the duplicate of each tax receipt issued by
him during such day, showing the number of each receipt, date of
payment, equalized value, and total tax.
Added by Laws 1988, c. 162, § 121, eff. Jan. 1, 1992.
§68-2922. Duplicate tax receipts - Duty of county clerk.
It shall be the duty of the county clerk on receiving any
duplicate tax receipt from the county treasurer forthwith to examine
the same and compare them with the abstract and list of receipts
required to be filed with him and see that the taxes of the duplicate
receipts correspond with the total collections for that day. If
found to be correct, he shall enter in his cash book under the
collections for the proper municipality the amount so reported by the
county treasurer and shall be liable on his official bond to account
for the same.
Added by Laws 1988, c. 162, § 122, eff. Jan. 1, 1992.
§68-2923. Apportionment and distribution of collections.
At the end of each calendar month the county treasurer shall
apportion all collections for said month, and distribute the same
among the different funds to which they belong.
Added by Laws 1988, c. 162, § 123, eff. Jan. 1, 1992.
§68-2924. County treasurer's monthly statement of amount apportioned
- County clerk to issue warrants for payment.
The county treasurer shall at the end of each month after
apportioning the collections of that month, make a statement to the
county clerk of the amount apportioned each town, city and school
district for all monies which are required by law to be paid to the
treasurers of such towns, cities and school districts by the county
treasurer, and the county clerk shall issue a warrant for the amount
shown by the statement of the county treasurer, payable to the
treasurer of such town, city or school district. The form of the
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warrant and the manner in which they shall be turned over to the
various treasurers of the towns, cities, and school districts shall
be prescribed by the State Auditor and Inspector.
Added by Laws 1988, c. 162, § 124, eff. Jan. 1, 1992.
§68-2924.1. Statement of ad valorem revenue to be deposited in
Common School Fund - Transfer of monies - Condition effect of
section.
A. At the end of each month after apportioning the collections
of that month, the county treasurer shall make a statement to the
county clerk of the amount of ad valorem revenue collected pursuant
to Section 12a of Article X of the Oklahoma Constitution which are
required by law to be transferred to the State Treasurer for deposit
in the Common School Fund. The county treasurer shall transfer such
monies to the State Treasurer in the manner prescribed by the State
Auditor and Inspector.
B. The provisions of this section shall not have the force and
effect of law unless and until the voters of the State of Oklahoma
approve amendments to Section 12a of Article X of the Oklahoma
Constitution contained in Enrolled House Joint Resolution No. 1005 of
the 1st Extraordinary Session of the 42nd Oklahoma Legislature.
Added by Laws 1989, 1st Ex.Sess., c. 2, § 97, operative Jan. 1, 1991.
§68-2925. Property sold at public sale or under court order -
Collection of taxes, interest and costs.
Whenever personal property within the State of Oklahoma is sold
at public sale or under order of a court after the first day of
January of that year, it shall be the duty of the administrator,
executor, referee in bankruptcy, receiver or owner making such
property available for sale to pay into the county treasury of the
county in which the personal property was originally taxed, the
amount of any and all taxes, interest and costs due on said personal
property; provided, the priority of the tax lien shall be as set
forth in Sections 3102 and 3103 of this title.
Added by Laws 1988, c. 162, § 125, eff. Jan. 1, 1992. Amended by
Laws 1992, c. 378, § 1, emerg. eff. June 9, 1992; Laws 1994, c. 63, §
1, eff. Sept. 1, 1994.
§68-2926. Property to be sold at public sale or under court order -
Notice - Assessment.
If the property described in Section 125 of this act has not been
assessed for taxation for such year, then it shall be the duty of the
person having charge of such sale to notify the county assessor in
writing that such property is about to be sold and request that he
make an immediate assessment of such property for taxation. If the
levy for such year has not been made, then the levy for the next year
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just preceding shall be taken for the levy of such year, and the
taxes figured accordingly.
Added by Laws 1988, c. 162, § 126, eff. Jan. 1, 1992.
§68-2927. Repealed by Laws 1992, c. 378, § 3, emerg. eff. June 9,
1992.
§68-2928. Repealed by Laws 1992, c. 378, § 3, emerg. eff. June 9,
1992.
§68-2929. Selling personal property before taxes, interest and costs
paid - Liability.
If any person or entity in this state, after their personal
property, except livestock, is assessed and before the tax, interest
and costs thereon is paid, shall sell the same, and not retain
sufficient money to pay all taxes, interest and costs thereon, the
taxes, interest and costs shall be a lien thereon, or if such
property is about to be sold at auction, or about to be sold at cost,
then in either such event all taxes, interest and costs thereon shall
at once become due and payable, and the county treasurer shall at
once issue a tax warrant for the collection thereof, and the sheriff
shall forthwith collect it as in other cases; provided, the priority
of the tax lien shall be as set forth in Sections 3102 and 3103 of
this title. The person or entity owing such tax, interest and costs
shall be civilly liable to any purchaser of such property for any
tax, interest and costs owing thereon, but the property so purchased
shall be liable in the hands of the purchaser for such tax, interest
and costs. If the property is sold in the ordinary course of retail
trade, it shall not be so liable in the hands of the purchaser.
Added by Laws 1988, c. 162, § 129, eff. Jan. 1, 1992. Amended by
Laws 1992, c. 378, § 2, emerg. eff. June 9, 1992; Laws 1994, c. 63, §
2, eff. Sept. 1, 1994.
§68-2930. Property seized and sold by attachment, execution of
chattel mortgage - Payment of taxes.
If the property of any taxpayer be so seized by attachment,
execution or chattel mortgage as to take all property liable to
execution, without leaving a sufficient amount of property exempt
from levy and sale to pay the taxes, then the tax on the property of
such taxpayer shall at once fall due and be paid from the proceeds of
the sale of the attached property in preference to all other claims
against it, and it is hereby made the duty of constables, deputy
sheriffs, sheriffs or other officers selling property under
attachment, to ascertain the amount of taxes due on any property so
sold and retain from the proceeds of such sale all taxes due, and to
pay the same to the county treasurer.
Added by Laws 1988, c. 162, § 130, eff. Jan. 1, 1992.
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§68-2931. Removal of property from county before taxes paid.
When any person is about to remove his property from the county
after the same has been assessed and before the taxes thereon have
been paid, without leaving sufficient remaining for the payment of
the taxes thereon, the tax shall at once become due and payable, and
the county treasurer shall issue a tax warrant for the collection of
the same, and it shall be enforced as in other cases.
Added by Laws 1988, c. 162, § 131, eff. Jan. 1, 1992.
§68-2932. Duties of certain public officers concerning sales, levy
of attachments or removal of property.
It shall be the duty of all town trustees, constables, deputy
sheriffs, sheriffs, city and town councilmen to at once inform the
county treasurer of the making of sales, levy of attachments or
removal hereinbefore mentioned, and it shall be the duty of the
county treasurer to proceed with the collection of the tax as
hereinbefore provided, when such facts become known to him in any
manner.
Added by Laws 1988, c. 162, § 132, eff. Jan. 1, 1992.
§68-2933. Property sold or removed from county before delivery of
tax rolls - Assessment.
If, before the county assessor has delivered the tax rolls to the
county treasurer property subject to taxation is sold or seized, so
as to jeopardize the collection of the tax thereon, or is attempted
to be removed from the county, as hereinbefore mentioned, the county
assessor shall furnish the county treasurer the assessment on such
property, and the county treasurer shall at once levy on the property
so returned to him the percentage of tax levied in the county for the
previous year, and collect the same as hereinbefore provided. If the
tax rolls for the year have come into the possession of the county
treasurer, then if such property be not listed therein, the county
treasurer shall enter the same on the tax rolls and levy thereon the
same percentage of tax that is levied in the county for the year, and
the county treasurer shall then collect the taxes so levied as in
other cases.
Added by Laws 1988, c. 162, § 133, eff. Jan. 1, 1992.
§68-2934. Reduction in assessed valuation due to illegality or
voidness - Reentry of valuation and payment of difference.
A. Wherever the assessed valuation of real estate has been
heretofore, or may hereafter be, purportedly reduced by any
unconstitutional, illegal or unauthorized action or order of any
court, board, commission or officer under circumstances such that the
purported reduction in assessed valuation was or is void and the ad
valorem taxes paid upon such purported reduced valuation, the county
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treasurer of the county in which such land is situated, upon request
from the owner of said real estate or of an interest therein, or any
person acting on his behalf, shall reenter upon the current tax
rolls, with reference to the year, book, page and line of original
valid assessments purportedly reduced, the difference between the
valid assessed valuation and the purported valuation after such void
reduction, and the amount of ad valorem taxes due upon such
difference in valuation.
B. In absence of such request, the county treasurer of the
county in which such land is situated may reenter on his current tax
rolls in the manner aforesaid, the difference between the valid
assessed valuation and the purported valuation after such void
reduction the amount of ad valorem taxes due upon difference in
valuation, but only when the action or order by authority of which
the original reduction was made has been declared unconstitutional by
a duly constituted authority. Written notice by registered mail
shall be sent to the last record owner of such property prior to such
reentry.
C. Within ninety (90) days after the giving of such notice, or
reentry upon request by the owner of such land or interest therein as
above provided, the taxes so reentered and due upon such difference
in valuation may be paid without the payment of any penalty or
interest: provided, however, that if not paid within said ninety (90)
days, penalties shall begin to accrue only from and after the
expiration of said ninety (90) days from the date of such reentry
upon the ad valorem taxes due upon such difference in valuation.
Added by Laws 1988, c. 162, § 134, eff. Jan. 1, 1992.
§68-2935. Federal resettlement or rural rehabilitation projects -
County treasurer to make application for payments in lieu of taxes.
The county treasurer of any county in this state, in which any
resettlement or rural rehabilitation project for resettlement
purposes of the United States is located, shall make application to
the United States each fiscal year for and on behalf of the county
and political subdivisions, whose jurisdiction limits are within or
coextensive with the limits of the county, for the payments of such
sums in lieu of taxes as the United States may agree to pay on
account of the nontaxable property in any such project. In making
such applications the county treasurer shall act as the agent of the
county and political subdivisions in which any such nontaxable
property is situated. The payments received by the county treasurer
from the United States on account of said property shall be in
consideration of the services and protection afforded such property
and the tenants thereon, furnished by the county and its
subdivisions.
Added by Laws 1988, c. 162, § 135, eff. Jan. 1, 1992.
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§68-2936. Receipt of federal in lieu payments - Apportionment and
payment to political subdivisions.
Whenever such payment from the United States is received, the
county treasurer shall issue a receipt therefor in the name of the
county. Immediately after receiving a payment from the United States
in lieu of taxes on account of any such nontaxable property, the
county treasurer shall, without any deduction, apportion and pay such
payment to the county and several political subdivisions in which any
such property is located in the same proportion that ad valorem taxes
for the year for which the payment is received are apportioned among
such subdivisions of government.
Added by Laws 1988, c. 162, § 136, eff. Jan. 1, 1992.
§68-2937. Notice to county and political subdivision boards of
apportionment of federal in lieu payments - Crediting funds.
Whenever any such payment from the United States is received and
apportioned by the county treasurer, he shall notify the governing
boards of the county and subdivisions to which the money was
apportioned that such apportionment has been made. All such monies
received by the county or any subdivision, pursuant to such
apportionment, shall be credited to the various funds of the county
and subdivisions involved in the same proportion that ad valorem
taxes levied by the county and subdivision for said year are
apportioned. Such income shall be estimated and appropriated each
year by the governing boards of the county and subdivisions, subject
to approval by the county excise board of such estimates and
appropriations.
Added by Laws 1988, c. 162, § 137, eff. Jan. 1, 1992.
§68-2938. Basis of application for federal in lieu payments -
Installments.
In making and presenting the application for such payments to the
United States, the county treasurer shall make application for
payments based upon the estimated cost of the public services
available for the benefit of the property in any such project and the
tenants thereon, after taking into consideration the benefits which
may be derived by the county or political subdivision from the
project within its jurisdiction, but the amount shall not be in
excess of the taxes which would result to the county and political
subdivisions for said period if the real property of the project
within the county were taxable. If, after the application is
presented, the United States provides for the payment to be made in
installments, it shall be the duty of the county treasurer to present
a claim or bill to the United States for each installment as it falls
due.
Added by Laws 1988, c. 162, § 138, eff. Jan. 1, 1992.
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§68-2939. Political subdivisions may enter into agreements with
federal government for payments for performance of services -
Crediting payments - Estimates and appropriations.
If the United States declines to deal with the county treasurer
with respect to the county or any political subdivision whose
jurisdictional limits are within or coextensive with the limits of
the county, or in the event the jurisdictional limits of a
subdivision lie in more than one county, such political subdivision
is authorized to make requests of the United States for such payments
in lieu of taxes as the United States may agree to pay, and is hereby
empowered to enter into agreements with the United States for the
performance by the political subdivision of services for the benefit
of a project, and for the payment by the United States to the
political subdivision in one or more installments, of sums in lieu of
taxes. Such payments received by the county or any political
subdivision shall be credited to the various funds of the county or
subdivision receiving the payment in the same proportion that ad
valorem taxes levied by the county and subdivision for said year are
apportioned. Such income shall be estimated and appropriated each
year by the governing boards of the county and subdivisions subject
to approval by the county excise board of such estimates and
appropriations.
Added by Laws 1988, c. 162, § 139, eff. Jan. 1, 1992.
§68-2940. Property acquired for public purpose - Relief from taxes.
Whenever the United States, the state, or a city, town, county,
school district, or any other political subdivision, including, but
not limited to, a turnpike authority, municipal trust, water or
conservation district, flood control district, levee or waterway
improvement district, urban renewal authority, public housing
authority, or any other authority authorized by law, state or
federal, acquires title to any real property for a governmental
purpose between January 1 and October 1 of the tax year, such
property shall be relieved of ad valorem tax for the remaining months
of the year beginning with the first of the month next succeeding the
date its acquisition for public purposes becomes a matter of public
record, if the deed thereto was recorded prior to October 1;
provided, however, that all taxes assessed against such property
prior to its acquisition shall be paid in full and there be paid a
sum equal to one-twelfth (1/12) times the number of months that the
property remained in private ownership of an amount estimated by the
county treasurer of the county wherein the real property lies to be
substantially equal to the amount of tax which would have been or
will become due and payable for the year had the real property not
been acquired for public purposes. In estimating the amount of taxes
which would have been or will become due and payable for the tax year
had the real property not been acquired for public purposes the
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county treasurer shall use as a basis the current assessment and the
tax rate for the preceding year, unless the tax for the current year
shall be by then determined and set, in which event he shall use as
basis the new assessment and rate. The public agency acquiring the
property shall deduct the amount of such taxes from the purchase
price payable to the private owner and remit the same to the county
treasurer in satisfaction of such taxes. The county treasurer of any
county is hereby authorized upon order of the board of tax roll
corrections to cancel of record all taxes assessed against such
property for the year of its acquisition when the deed thereto was
recorded prior to October 1 and the aforesaid estimated amount of the
tax for the months that the property was in private ownership is
paid, which order shall be issued upon application of the acquiring
authority.
Added by Laws 1988, c. 162, § 140, eff. Jan. 1, 1992.
§68-2941. Release and extinguishment of liens.
Any and all ad valorem taxes and assessments, together with
interest, penalty and costs, heretofore or hereafter levied for any
year upon any real property and any lien created thereby in this
state are hereby released and extinguished forever upon the
expiration of seven (7) years after the date upon which any part
thereof became or shall become due, and any lien for ad valorem taxes
or assessments together with interest, penalty and costs, for any tax
year or years which has heretofore accrued or may hereafter accrue
because of the failure of any real property to have been assessed or
taxed and placed upon any tax roll, shall be and are hereby
extinguished upon the expiration of seven (7) years from the date
when such lien would have accrued had such assessment or assessments
been made or placed upon the tax rolls as required by law.
Added by Laws 1988, c. 162, § 141, eff. Jan. 1, 1992.
§68-2942. Certification after 15 years of taxes assessed not
required of certain persons.
Any county officer or other person who is required to certify to
public records shall not be required to certify any taxes which have
been or should have been assessed more than fifteen (15) years prior
to the date of such certification.
Added by Laws 1988, c. 162, § 142, eff. Jan. 1, 1992.
§68-2943. Duties of officials mandatory - Neglect of duties -
Penalties.
The provisions of the Ad Valorem Tax Code relating to the duties
of various officials, and the time within which such duties shall be
performed, are hereby declared to be mandatory; and the failure of
any such official, board or commission, to perform the duties
prescribed herein, within the time specified, shall subject them to
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removal from office for neglect of duty; and they shall receive no
remuneration, compensation or salary for their services, after the
time herein fixed for the performance of such duties and until the
same shall have been completed or performed. Each of them shall also
be subject to a penalty of Five Dollars ($5.00) per day for each
day's delay for such neglect or failure; and it shall be the duty of
the district attorney as to county officers, and the Attorney General
as to state officers, to institute proper action to collect any such
penalty; provided, that the validity of any assessment or levy shall
not be affected because of any insufficiency, informality or delay in
the performance of any duty imposed upon any official, board or
commission.
Added by Laws 1988, c. 162, § 143, eff. Jan. 1, 1992.
§68-2944. Under assessment of property - Penalties.
It shall be unlawful for any county assessor, deputy county
assessor, member of a county board of equalization or board of county
commissioners, or member or duly authorized representative of the
Oklahoma Tax Commission or State Board of Equalization to enter into
any agreement or understanding with the owner or agent of any taxable
property, whereby such property is to be assessed lower
proportionately than other taxable property in the same county, as an
inducement to have such property brought into or kept in such county,
or for any other reason. Any person entering into any such unlawful
agreement or understanding, including the owner or agent of the
property involved, shall be deemed guilty of a misdemeanor and upon
conviction thereof shall be punished by a fine of not less than Five
Hundred Dollars ($500.00), and by imprisonment in the county jail for
not less than six (6) months. Any person convicted of such a
misdemeanor shall not be allowed to hold public office in this state.
Added by Laws 1988, c. 162, § 144, eff. Jan. 1, 1992. Amended by Laws
1989, c. 321, § 22, operative Jan. 1, 1992.
§68-2945. False or fraudulent lists or information - Failure or
refusal to allow inspection or comply with subpoena.
A. If any person shall knowingly and willfully make or give
under oath or affirmation a false and fraudulent list of taxable
personal property, or a false and fraudulent list of any taxable
personal property under the control of the person or required to be
listed by the person, or shall knowingly and willfully make false
answer to any question which may be put under oath by any person,
board or commission authorized to examine persons under oath in
relation to the value or amount of any taxable personal property, the
person shall be deemed guilty of the felony of perjury, and upon
conviction shall be punished as is provided by law for the punishment
of the felony of perjury.
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B. If any taxpayer, or any official, employee, or agent of the
taxpayer, shall fail or refuse, upon proper request, to permit the
inspection of any property or the examination of any books, records
and papers by any person authorized by the Ad Valorem Tax Code to do
so, or shall fail or refuse to comply with any subpoena duces tecum
legally issued under authority of this Code, the taxpayer shall be
stopped from questioning or contesting the amount or validity of any
assessment placed upon the property of the taxpayer to the board of
equalization. Nothing in this section shall impair or impede the
right of the taxpayer to appeal any order of the board of
equalization to the district court as provided for in Section 2880.1
of this title.
Added by Laws 1988, c. 162, § 145, eff. Jan. 1, 1992. Amended by
Laws 1997, c. 133, § 568, eff. July 1, 1999; Laws 2007, c. 250, § 2,
eff. Jan. 1, 2008.
NOTE: Laws 1998, 1st Ex. Sess., c. 2, § 23 amended the effective
date of Laws 1997, c. 133, § 568 from July 1, 1998, to July 1, 1999.
§68-2946. Repealed by Laws 1989, c. 321, § 28.
§68-2946.1. Repealed by Laws 1993, c. 273, § 16, eff. July 1, 1993.
§68-2946.2. Abolition of Ad Valorem Task Force.
A. The Ad Valorem Task Force is hereby abolished, effective July
1, 1993.
B. All powers, duties, responsibilities, property, assets,
liabilities, fund balances, encumbrances and obligations of the Ad
Valorem Task Force are hereby transferred to the Ad Valorem Division
of the Oklahoma Tax Commission.
C. The coordinator position of the Task Force shall cease to
exist on July 1, 1993. Such employees of the Ad Valorem Task Force
as may be needed may be employed by the Ad Valorem Division of the
Oklahoma Tax Commission. Such employees shall be transferred and
shall be exempt from the provisions of the merit system of personnel
administration as provided in the Oklahoma Personnel Act, Section
840.1 et seq. of Title 74 of the Oklahoma Statutes. The employees so
transferred shall be exempt from any examination or other employment
requirements required for new employees. The Oklahoma Tax Commission
shall establish the appropriate salary on the official date of
transfer.
D. All rules of the Ad Valorem Task Force pertaining to the
functions and powers herein transferred and assigned to the Ad
Valorem Division of the Oklahoma Tax Commission, in force at the time
of such transfer, shall continue in force and effect as rules of the
Ad Valorem Division of the Oklahoma Tax Commission until duly
modified or abrogated by the appropriate body.
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Added by Laws 1993, c. 273, § 12, eff. July 1, 1993. Amended by Laws
1993, c. 308, § 2, eff. July 1, 1993.
§68-2946.3. Repealed by Laws 1995, c. 246, § 10, eff. Nov. 1, 1995.
§68-2946.4. Repealed by Laws 1999, c. 59, § 4, eff. July 1, 1999.
§68-2947. Computer-Assisted Mass Appraisal Implementation Revolving
Fund.
A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tax Commission, to be designated the "Computer-
Assisted Mass Appraisal Implementation Revolving Fund". The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of appropriations made by the Legislature. Monies
appropriated to the fund shall be expended by the Ad Valorem Division
of the Oklahoma Tax Commission for the purpose of implementing the
visual inspection program and the computer-assisted system of mass
appraisal as required by law.
B. On the effective date of this act, all monies remaining in
the Computer-Assisted Mass Appraisal Implementation Revolving Fund
shall be transferred to the County Government Education-Technical
Revolving Fund created in Section 5 of this act.
Added by Laws 1989, c. 321, § 25, operative July 1, 1989. Amended by
Laws 1993, c. 273, § 14, eff. July 1, 1993; Laws 2018, c. 260, § 2,
eff. July 1, 2019.
§68-2947.1. County Government Education-Technical Revolving Fund.
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Tax Commission to be designated the "County
Government Education-Technical Revolving Fund". The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the Oklahoma Tax Commission from
the apportionment of documentary stamp revenues as provided by
Section 3204 of Title 68 of the Oklahoma Statutes. All monies
accruing to the credit of said fund are hereby appropriated and may
be budgeted and expended by the Oklahoma State University Center for
Local Government Technology and the Oklahoma Cooperative Extension
Service County Training Program for the purpose of education,
training, research, software and computer modernization. The fund
shall be subject to the oversight of the Commission on County
Government Personnel Education and Training. Amounts deposited in
any fiscal year shall be distributed by the Oklahoma Tax Commission
as provided in Section 6 of this act. Expenditures from said fund
shall be made upon warrants issued by the State Treasurer against
claims filed as prescribed by law.
Added by Laws 2018, c. 260, § 5, eff. July 1, 2019.
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§68-2947.2. Apportionment of County Government Education-Technical
Revolving Fund.
A. For the fiscal year ending June 30, 2020, and for each fiscal
year thereafter, ten percent (10%) deposited to the County Government
Education-Technical Revolving Fund in any fiscal year shall be
distributed by the Oklahoma Tax Commission monthly to the Oklahoma
Cooperative Extension Service for duties imposed on the Extension
Service pursuant to Sections 130.1 through 130.7 and Section 1500 of
Title 19 of the Oklahoma Statutes and Section 3006 of Title 68 of the
Oklahoma Statutes.
B. For the fiscal year ending June 30, 2020, and for each fiscal
year thereafter, eighty-eight and five-tenths percent (88.5%)
deposited to the County Government Education-Technical Revolving Fund
in any fiscal year shall be distributed by the Oklahoma Tax
Commission monthly to the Oklahoma State University Center for Local
Government Technology for duties imposed pursuant to Sections 2816
and 2862 of Title 68 of the Oklahoma Statutes related to any
training, support, professional development, and additional software
necessary for county assessors, treasurers and boards of
equalization, and the acquisition and administration of a computer-
assisted mass appraisal software system for county governments;
provided, the Oklahoma State University Center for Local Government
Technology may delay the acquisition of such software until such time
as sufficient funds are available.
C. After the computer-assisted mass appraisal software
acquisition is complete and associated costs are paid, any county
which elects not to participate in the Oklahoma State University
Center for Local Government Technology's computer-assisted mass
appraisal software system may apply to the Center for Local
Government Technology for a refund up to ten percent (10%) of such
county's deposit to the revolving fund annually; provided, if
available funds are insufficient for a ten-percent rebate, the
percentage shall be adjusted so that rebates may be paid.
Added by Laws 2018, c. 260, § 6, eff. July 1, 2019.
§68-2947.3. County Government Education-Technical Revolving Fund
reserve account.
A. Within the County Government Education-Technical Revolving
Fund there shall be established a reserve account. The reserve
account shall consist of any revenue not otherwise apportioned
pursuant to the provisions of subsection A or subsection B of Section
6 of this act.
B. The maximum balance for the reserve account shall never
exceed Two Million Dollars ($2,000,000.00) at the end of each fiscal
year.
C. The Oklahoma State University Center for Local Government
Technology and the Oklahoma Cooperative Extension Service County
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Training Program may request permission to expend funds in the
reserve account from the Commission on County Government Personnel
Education and Training.
D. The balance in the reserve account of the County Government
Education-Technical Revolving Fund shall serve as a contingency for
adverse conditions if the distributions provided for in subsections A
and B of Section 6 of this act are insufficient to support the
purposes of education training, research, software and computer
modernization of county governments.
E. For any fiscal year ending June 30, the Oklahoma Tax
Commission shall transfer any amount of revenue in excess of Two
Million Dollars ($2,000,000.00) remaining in the reserve account of
the County Government Education-Technical Revolving Fund to the
General Revenue Fund of the State Treasury.
Added by Laws 2018, c. 260, § 7, eff. July 1, 2019.
§68-2948. Repealed by Laws 1993, c. 273, § 16, eff. July 1, 1993.
§68-2949. Personal property tax exemption for heads of households 62
years of age or older residing in certain manufactured homes.
A. 1. Beginning with the year 1990 and through the year 2012,
any person sixty-two (62) years of age or older, who is the head of a
household, is a resident of and is domiciled in this state during the
entire preceding calendar year, whose gross household income for the
preceding year did not exceed Ten Thousand Dollars ($10,000.00) and
owns and resides in a manufactured home which is located on land not
owned by the owner of the manufactured home may receive an exemption
on the manufactured home in an amount equal to Two Thousand Dollars
($2,000.00).
2. For years beginning after December 31, 2012, any person
sixty-two (62) years of age or older, who is the head of a household,
is a resident of and is domiciled in this state during the entire
preceding calendar year and owns and resides in a manufactured home
which is located on land not owned by the owner of the manufactured
home, may receive an exemption on the manufactured home in an amount
equal to Two Thousand Dollars ($2,000.00) if the person's gross
household income for the preceding year did not exceed the greater of
Twenty-two Thousand Dollars ($22,000.00) or fifty percent (50%) of
the amount determined by the United States Department of Housing and
Urban Development to be the estimated median income for the preceding
year for the county or metropolitan statistical area which includes
the county in which the claimant's property is located.
B. The application for the exemption provided by this section
shall be made each year on or before March 15 or within thirty (30)
days from and after the receipt by the taxpayer of notice of
valuation increase, whichever is later and upon the form prescribed
by the Oklahoma Tax Commission, which shall require the taxpayer to
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certify as to the amount of gross income. Upon request of the county
assessor, the Tax Commission shall assist in verifying the
correctness of the amount of said gross income. The form prescribed
by the Tax Commission pursuant to this section shall state in bold
letters that the form is to be returned to the county assessor of the
county in which the manufactured home is located.
C. For persons sixty-five (65) years of age or older as of March
15 and who have previously qualified for the exemption provided by
this section, no annual application shall be required in order to
receive the exemption provided by this section; however, any person
whose gross household income in any calendar year exceeds the amount
specified in this section in order to qualify for the exemption
provided by this section shall notify the county assessor and the
exemption shall not be allowed for the applicable year. Any executor
or administrator of an estate within which is included a homestead
property exempt pursuant to the provisions of this section shall
notify the county assessor of the change in status of the homestead
property if such property is not the homestead of a person who would
be eligible for the exemption provided by this section.
D. As used in this section:
1. "Gross household income" means the gross amount of income of
every type, regardless of the source, received by all persons
occupying the same household, whether such income was taxable or
nontaxable for federal or state income tax purposes, including
pensions, annuities, federal Social Security, unemployment payments,
veterans' disability compensation, public assistance payments,
alimony, support money, workers' compensation, loss-of-time insurance
payments, capital gains and any other type of income received, and
excluding gifts; and
2. "Head of household" means a person who as owner or joint
owner maintains a home and furnishes the support for said home,
furnishings, and other material necessities.
Added by Laws 1989, c. 321, § 27, operative July 1, 1989. Amended by
Laws 1990, c. 322, § 3, emerg. eff. May 30, 1990; Laws 1991, c. 47, §
5; Laws 2004, c. 447, § 13, emerg. eff. June 4, 2004; Laws 2012, c.
266, § 1, eff. Jan. 1, 2013.
§68-2950. Repealed by Laws 2003, c. 8, § 7, eff. July 1, 2003.
§68-3001. Appropriation - Defined.
The term "appropriation" as used in Sections 2482-24113 of this
Code is hereby declared to be synonymous with "estimate made and
approved," as defined in 62 O.S.1961, Section 473, and the
provisions, requirements, limitations and penalty of 62 O.S.1961,
Sections 471 through 480, are hereby specifically declared to extend
to and embrace "appropriations" as herein defined.
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Laws 1965, c. 501, § 2. Renumbered from § 2482 by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-3002. Financial statement - Estimated needs - Publication -
Filing.
A. Notwithstanding the provisions of the School District Budget
Act, each board of county commissioners and the board of education of
each school district, shall, prior to October 1 of each year, make,
in writing, a financial statement, showing the true fiscal condition
of their respective political subdivisions as of the close of the
previous fiscal year ended June 30th, and shall make a written
itemized statement of estimated needs and probable income from all
sources including ad valorem tax for the current fiscal year. Such
financial statement shall be supported by schedules or exhibits
showing, by classes, the amount of all receipts and disbursements,
and shall be sworn to as being true and correct. The statement of
estimated needs shall be itemized so as to show, by classes: first,
the several amounts necessary for the current expenses of the
political subdivision and each officer and department thereof as
submitted in compliance with the provisions of Section 3004 of this
title; second, the amount required by law to be provided for sinking
fund purposes; third, the probable income that will be received from
all sources, including interest income and ad valorem taxes; and
shall be detailed in form and amount so as to disclose the several
items for which the excise board is authorized and required, by this
article, to approve estimates and make appropriations.
B. Each municipality that does not prepare an annual audit
pursuant to Section 17-105 of Title 11 of the Oklahoma Statutes shall
make a financial statement as required by this section. Every
municipality shall adopt a budget, which shall contain estimates of
expenditures and revenues, including probable income by source, for
the budget year; provided, that all municipalities may use estimated
fund balances if final certified fund balances are not available.
The budget shall be in a format similar to the estimate of needs or,
at the municipality’s discretion, to Sections 17-207 and 17-212
through 17-214 of Title 11 of the Oklahoma Statutes. This section
shall not apply to any municipality that has opted to prepare a
budget pursuant to the Municipal Budget Act.
C. Each budget and each financial statement and estimate of
needs for each county, city, incorporated town, or school district,
as prepared in accordance with this section, shall be published in
one issue in some legally qualified newspaper published in such
political subdivision. If there be no such newspaper published in
such political subdivision, such statement and estimate shall be so
published in some legally qualified newspaper of general circulation
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therein; and such publication shall be made, in each instance, by the
board or authority making the estimate.
D. The financial statements and estimates of all counties shall
be filed with the county excise board on or before August 17 of each
year; and the financial statements and budgets of all incorporated
towns shall be filed with the county excise board on or before August
22 of each year; and the financial statements and budgets of all
cities shall be filed with the county excise board on or before
August 27 of each year; and the financial statements and estimates of
all school districts shall be filed with the county excise board on
or before October 1 of each year. Said financial statements and
estimates shall have attached thereto an affidavit showing the
publication thereof as required herein, or they may be filed and the
said affidavit attached thereto at any time within five (5) days
after the filing thereof.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1988, c. 90, § 10,
operative July 1, 1988. Renumbered from § 2483 of this title by Laws
1988, c. 162, § 163, eff. Jan. 1, 1992, as amended by Laws 1991, c.
249, § 3, eff. Jan. 1, 1992. Amended by Laws 2002, c. 98, § 9, eff.
Nov. 1, 2002; Laws 2003, c. 44, § 1, emerg. eff. April 7, 2003; Laws
2004, c. 361, § 15, eff. July 1, 2004; Laws 2006, c. 75, § 1, emerg.
eff. April 21, 2006.
§68-3003. Revenue from nonrecurrent sources not to be included in
political subdivisions estimate of probable income - Exceptions -
Exclusion from minimum program income of school districts - Federal
funds.
A. It shall be unlawful for the governing board of any county,
city, town, school district, or other governmental subdivision of
this state, in preparation of its budget for any fiscal year, to
estimate as probable income from sources other than ad valorem tax of
such governmental subdivision of the state and other than any excise
or other tax assessed by legislative enactment and distributed in
lieu of ad valorem taxes, any revenue from nonrecurrent sources,
regardless of such collections in the immediately preceding fiscal
year, to be derived from or the result of sales, forfeitures,
penalties, gifts, federal aid allotments of every kind, windfalls,
seizures, sheriff's sales, court actions whether civil or criminal,
injunctions or protests won or released by dismissal, or from any
other such source not normally recurrent year after year and so made
recurrent by legislative enactment. Provided, that upon a finding by
the governing board of any county, city, town, school district, or
other governmental subdivision of this state, that a source of
income, although nonrecurrent, will actually be available for the
next ensuing fiscal year, the board may include such income in its
estimate of probable income. Provided that shared revenues of the
federal government, if ascertainable, shall be allowed to be included
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in the estimates. It shall also be unlawful for any excise board to
approve or require the same, or for any supervisory state board,
commission, or officer, or for any agent or employee of either
thereof to countenance, approve, or require the same or to diminish
in any degree the distribution or allotment of state revenues or
appropriations by reason of such collections in a prior year or
prospect of such collections in the ensuing year; nor shall any
revenue received by a school district from gross production taxes
during the immediately preceding fiscal year, which was payable to
such district in another year or years, be considered as minimum
program income of such district for state aid purposes. The
provisions of Section 21 of Title 21 of the Oklahoma Statutes shall
be applicable where the foregoing prohibitions are disregarded.
Revenue received by a school district during the immediately
preceding year, which was earned by, or which was payable to, such
school district in another year or years, shall not be considered as
minimum program income of such district for state aid purposes.
B. All funds received by counties, cities, towns or other
subdivisions of government in the State of Oklahoma, hereinafter
referred to as the recipient government, from the federal government
pursuant to the distribution of funds authorized by the state shall
be deposited in the treasury of the recipient government in a fund
which shall be recorded and accounted for separately and apart from
all other funds. Principal and interest received from investments of
the federal monies, proceeds from the sale of assets purchased from
the federal monies, and other miscellaneous income derived from the
direct operation of the federal monies may be deposited in the fund
from which the federal monies were deposited if required by the
federal government or by the governing board of the recipient
government.
The unappropriated cash balance on hand may be appropriated as
needed upon the request of the governing board of the recipient
government and approval by the county excise board, provided, if the
governing board of the recipient government determines the need to do
so, it may estimate the amount remaining to be collected from its
entitlement from federal funds during the remainder of its fiscal
year and include such estimate in its request for appropriations.
The estimate shall not exceed the amount of the entitlement which is
to be received during the remainder of the recipient government's
fiscal year or, if the amount of the entitlement has not been
certified, ninety percent (90%) of such funds received during a
corresponding period of the previous fiscal year; provided that if
the entitlement is less than that estimated or if the entitlement to
be collected during the recipient government's fiscal year, in
addition to the unappropriated cash balance, is reduced below the
amount appropriated for the fiscal year, the governing board of the
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recipient government shall request the county excise board for an
adequate reduction of appropriations in the fund.
All disbursements made from the fund in which federal monies are
deposited shall be made in the same manner as those made from the
general fund of the recipient government; provided that, no warrants
shall be drawn on the fund unless sufficient monies are available to
pay the warrants.
All forms and procedures necessary for the effective operation of
this act shall be prescribed by the office of the State Auditor and
Inspector.
C. All monies distributed by the federal government and received
by any state agency, board, or commission to administer and
distribute to counties, cities, towns, or other subdivisions of the
government in the State of Oklahoma, hereinafter referred to as the
recipient government, that do not follow procedures in subsection B
of this section may utilize the letter of commitment appropriation
process as specified in this subsection. The recipient government
shall receive approval for the program as required by the agency,
board, or commission administering the program and by the federal
government, if required. Once approved, the state agency, board or
commission may authorize a letter of commitment of federal monies
available to the recipient government. The Excise Board may approve
an appropriation in the amount of the letter of commitment. Each
recipient government may establish a separate appropriation within a
special revenue fund designated for federal monies. The recipient
government may encumber funds in an amount not to exceed the sum of
the total letter of commitment, which is a binding commitment of
funding which the recipient government will receive for the project
or projects eligible for such federal funding. The encumbrance of
funds authorized by this section shall be made in accordance with
procedures prescribed by the State Auditor and Inspector and shall be
administered in accordance with rules and regulations concerning such
distribution adopted by the federal government and the state agency,
board, or commission. Any expenditure incurred by the recipient
government using the letter of commitment appropriation process and
disallowed by the federal government or state agency, board, or
commission administering the funds shall be paid by the recipient
government.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1977, c. 108, § 1,
emerg. eff. May 30, 1977; Laws 1985, c. 34, § 1, eff. Nov. 1, 1985.
Renumbered from Title 68, § 2484 by Laws 1988, c. 162, § 163, eff.
Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992. Amended
by Laws 1989, c. 135, § 1, operative July 1, 1989.
§68-3004. Officers to report earnings, cost of maintenance and
estimate of needs.
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Each officer, board or commission of any county, city or town,
and all employees charged with the management or control, of any
department or institution of either thereof shall on or before the
first Monday in July of each year, make and file with the board or
commission charged with the duty of reporting to the excise board, a
report in writing showing, by classes, the earnings and cost of
maintaining their respective offices or departments for the previous
fiscal year, together with an itemized statement and estimate of the
probable need thereof for the current or ensuing fiscal year.
Provided, that the report relative to the construction and repair of
bridges shall be made by the county commissioners and county
surveyors, conjointly, and shall be itemized so as to show the
location of each proposed new bridge and the estimated cost thereof,
and provided further, that the report relative to the probable needs
of the courts of record shall be made by the court clerk and district
attorney, conjointly, and shall be itemized so as to show separately
the respective needs of each court.
Added by Laws 1965, c. 501, § 2. Renumbered from Title 68, § 2485 by
Laws 1988, c. 162, § 163, eff. Jan. 1, 1992. Amended by Laws 2004,
c. 361, § 16, eff. July 1, 2004.
§68-3005. Repealed by Laws 1989, c. 321, § 28.
NOTE: Prior to repeal, this section as amended by Laws 1988, c. 162,
§ 146 was renumbered from § 2457 of this title by Laws 1988, c. 162,
§ 164, eff. Jan. 1, 1992.
§68-3005.1. County excise boards - Membership - Unlawful acts -
Compensation - Penalties.
A. A county excise board is hereby created for each county in
the state, to be composed of the members of the county board of
equalization as created in Section 2861 of this title. The county
clerk shall serve as secretary and clerk of said board without
additional compensation.
B. It shall be unlawful for any member of the county excise
board to sell or contract to sell, or to lease or contract to lease,
or to represent any person, firm, corporation or association in the
sale or the lease of any machinery, supplies, equipment, material, or
other goods, wares, or merchandise to any county or city or town of
the county. It shall also be unlawful for any member of the county
excise board to serve as employee, official, or attorney for any
county or city, or town of the county, or for any such member to
represent any taxpayer before such board in any manner, or to use his
or her position as a board member to further his or her own
interests. It shall also be unlawful for any taxpayer or interested
party to employ any member of the county excise board in any matter
coming before the board.
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C. The members of county excise boards in all counties having an
assessed valuation of Two Billion Dollars ($2,000,000,000.00) or more
shall receive as compensation an amount not to exceed Seventy-five
Dollars ($75.00) per day. The members of county excise boards in all
other counties may receive as compensation an amount not to exceed
Fifty Dollars ($50.00) per day, said amount to be established by the
boards.
In addition, the members of county excise boards shall be
reimbursed for each mile of travel to and from their residences to
the place of meeting of the board for each session attended at the
rate provided for other county officers. The members of county
excise boards shall be also reimbursed for each mile of necessary
travel in the performance of their official duties at the same rate.
The total number of days in each year for which the members of
said board may be paid shall be as follows:
In counties having an assessed valuation of Forty Million Dollars
($40,000,000.00) and less, not to exceed sixty (60) days;
In counties having an assessed valuation of more than Forty
Million Dollars ($40,000,000.00) and not more than Eighty Million
Dollars ($80,000,000.00), not to exceed sixty-five (65) days;
In counties having an assessed valuation of more than Eighty
Million Dollars ($80,000,000.00) and not more than Five Hundred
Million Dollars ($500,000,000.00), not to exceed one hundred (100)
days;
In counties having an assessed valuation of more than Five
Hundred Million Dollars ($500,000,000.00), not to exceed two hundred
fifty (250) days.
D. Any person violating any of the provisions of this section
shall be deemed guilty of a felony, and upon conviction thereof shall
be punished by a fine of not less than Two Hundred Dollars ($200.00)
and not more than One Thousand Dollars ($1,000.00) or by imprisonment
in the State Penitentiary for not less than six (6) months or more
than two (2) years, or by both such fine and imprisonment.
Added by Laws 1990, c. 322, § 2, eff. Jan. 1, 1992. Amended by Laws
1991, c. 232, § 5, emerg. eff. May 24, 1991; Laws 1999, c. 134, § 4,
emerg. eff. April 28, 1999; Laws 1999, c. 187, § 2, eff. Nov. 1,
1999; Laws 2000, c. 64, § 2, eff. July 1, 2000; Laws 2007, c. 172, §
3, eff. Nov. 1, 2007.
§68-3006. Meetings of county excise board - Organization - Powers
and duties.
A. The county excise board shall meet at the county seat on the
first Monday of July of each year as provided in Section 3014 of this
title or on such earlier date in the year as determined by the excise
board, and organize by electing one of its members as chairman, and
another as vice chairman who shall preside in the absence of the
chairman, for the purpose of performing the duties required of it by
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law during such fiscal year. Thenceforth, said board may meet from
day to day, or adjourn from day to day and time to time thereafter
for said purpose.
B. In its functionings it is hereby declared an agency of the
state, as a part of the system of checks and balances required by the
Constitution, and as such it is empowered to require adequate and
accurate reporting of finances and expenditures for all budget and
supplemental purposes, charged with the duty of requiring adequate
provision for performance of mandatory constitutional and statutory
governmental functions within the means available, but it shall have
no authority thereafter to deny any appropriation for a lawful
purpose if within the income and revenue provided.
C. Each member of the county excise board shall be required to
attend and successfully complete a course of instruction consisting
of at least six (6) hours within eighteen (18) months of appointment
for the first four (4) years of service on the board and three (3)
hours of instruction for every four (4) years of service after the
expiration of the initial four-year period. The course of
instruction shall include the duties and responsibilities of the
county excise board, including duties and responsibilities related to
authorized millage rates imposed by local taxing jurisdictions, and
the course shall be offered by or approved by the Oklahoma State
University Cooperative Extension Service.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1980, c. 226, § 8,
emerg. eff. May 27, 1980. Renumbered from § 2486 of this title by
Laws 1988, c. 162, § 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, §
3, eff. Jan. 1, 1992. Amended by Laws 2012, c. 300, § 1, eff. Nov.
1, 2012.
§68-3007. Order of proceedings of county excise board.
As to each budget, original or supplemental, the county excise
board shall proceed in the following order:
(1) Examine the financial statements contained therein for the
purpose of ascertaining the true fiscal condition of each of the
several fund accounts of the municipality as of the close of the
previous fiscal year, or as of the date reported for supplemental
purposes; and it may require such additional statistics or financial
statements from the municipal officers as will enable it to make such
determination, and correct such statements if need be.
(2) Examine specifically the several items and amounts stated in
the estimate of needs, and if any be contained therein not authorized
by law or that may be contrary to law, or in excess of needs, as
determined by the excise board, said item shall be ordered stricken
and disregarded. If the amount as to any lawful item exceeds the
amount authorized by law, it shall be ordered reduced to that extent;
otherwise, the excise board joins in responsibility therefor.
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(3) Examine the content of the estimate of needs, and if the
governing board has failed to make provision for mandatory
governmental functions, whether such mandate be of the Constitution
or of the Legislature, or if the provision submitted by estimate be
deemed inadequate, the county excise board shall, whether on request
in writing by the officer charged with a mandatory duty or of its own
volition, prepare an estimate by items and amounts, either by the
items submitted or by additional items, and cause publication thereof
in some newspaper of general circulation in the county, in one issue
if published in a weekly paper, and in two consecutive issues if
published in a daily paper, and thereafter attach such estimate,
together with affidavit and proof of publication, to that submitted
by the governing board, for further consideration. However, nothing
herein contained shall prevent any governing board, upon a timely
finding that its estimate of needs as first filed is inadequate, from
filing a written request with the excise board to increase such
estimate as to any item or items, whether mandatory or not; whereupon
the excise board shall cause publication thereof, as aforesaid, at
the expense of the municipality.
(4) Compute the total means available to each fund, except the
sinking fund, by the converse of the formula provided by law for
computing the tax levy, as provided in Section 3017 of this Code.
(5) If the total of the several items of estimated needs for
lawful purposes as heretofore ascertained is within the income and
revenue lawfully available, the excise board shall approve the same
by items and compute the levy required. If said total exceeds the
means provided to finance the same, the excise board will proceed to
revise the same by reducing items, in whole or in part, in the
following order: (a) first apply such revision by reduction of items
for governmental functions merely authorized but not required; (b) if
further reduction be necessary, second, by reduction of items
required by the Legislature but not within Constitutional
requirement; (c) if still further reduction be necessary and no other
items remain, third, by reduction of items for Constitutional
governmental functions until the total thereof be within the income
and revenue provided. At the option of the excise board, the
governing board may collaborate in such reductions; but the final
order shall be that of the county excise board.
Laws 1965, c. 501, § 2; Laws 1979, c. 26, § 2, emerg. eff. April 3,
1979. Renumbered from § 2487 by Laws 1988, c. 162, § 163, eff. Jan.
1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992. Amended by
Laws 2007, c. 155, § 14, eff. Nov. 1, 2007.
§68-3008. Attendance and opinion of district attorney - Further
detail as to items - Restrictions - Assistance.
The county excise board may require the attendance of the
District Attorney at any of its sessions when passing upon the
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validity or invalidity of items of appropriation; or it may request
his opinion in writing as to any such item. Said board is hereby
empowered to require such further detail as to any item of any
estimate as it deems necessary and proper for such determination, and
it may place such restrictions thereon as will limit the use thereof
to purposes authorized by law; but such further detail and such
restrictions shall not enlarge upon the number of accounts in the
bookkeeping systems prescribed and kept as provided by law. However,
such further detail and any restrictions imposed thereon shall be
disclosed by statements attached to the original copy of such budget
filed with the county clerk, and to the duplicate copy of such budget
filed with the State Auditor and Inspector. If such excise board
desires assistance for the purpose of inspecting and correcting
financial statements and accounts, and inspection of levies, it may
invoke those provisions of law providing such assistance (74 O.S.
1961, Section 212), provided there shall have been made an
appropriation for county audit and an assignment to such county for
such purpose.
Laws 1965, c. 501, § 2; Laws 1979, c. 30, § 40, emerg. eff. April 6,
1979. Renumbered from § 2488 by Laws 1988, c. 162, § 163, eff. Jan.
1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3009. Sinking fund - Building fund and General fund requirements
- Special Budget Accounts - Departmentalization and itemization.
The county excise board shall comply with the following:
(a) Provision and levy for the sinking funds of any municipality
shall be made in strict conformity to the special statute therefor
(62 O.S.1961, Section 431): but no surplus shall be disclosed or
computed in any sinking fund account except it be in cash and
investments actually on hand in excess of all accrual liabilities,
whether collections exceed anticipations or not.
(b) Building fund appropriations and levies under Section X,
Article 10, Oklahoma Constitution, shall be computed by the same
formula and subject to the same defenses as general funds, but need
be itemized only as to the amount needed for construction of new
buildings, remodeling or repairing buildings, and purchasing
furniture, and for a reserve for interest on warrant issues according
to statute.
(c) The general fund shall comprehend and include all
appropriations and expenditures financed from levy of ad valorem tax
under any of the provisions of Section 9, Article X, Oklahoma
Constitution, and all revenues from sources other than ad valorem
taxation except the proceeds derived from the sale of bonds and those
revenues specifically required by law to be deposited into the
sinking fund, the building or replacement funds, or in cash funds, or
in any other fund or funds so specifically denominated by statute. If
a portion of the ad valorem levies under said Section 9, Article 10,
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Oklahoma Constitution, and specific revenues from other sources, be
required by law to be devoted to a special purpose, other than those
specifically required to be accounted for in cash funds, such special
purpose shall be provided for by a special budget account within the
general fund, distinguished from the governmental budget account, and
assigned such appropriation account or accounts as will accomplish
such special purpose and include sums at least equivalent to the net
estimate of revenues or levy thus specially applied. As to counties,
cities, and towns, except as hereinafter provided, the governmental
budget account shall be departmentalized, and the appropriations made
for the use of each separate office, board, commission or department
shall be stated in separate items, and no appropriation shall be
available for the use of more than one office, board, commission or
department; and the appropriations so made for the use of each such
separate office, board, commission or department, or for any special
function of either of them, of the several municipalities, including
the general fund appropriations of municipalities not so
departmentalized, shall not be increased or diminished after such
appropriations become final, except in the manner provided by law
(Section 24101 of this Code), or by order of a court of competent
jurisdiction.
Laws 1965, c. 501, § 2. Renumbered from § 2489 by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-3010. Items of appropriation - Meaning of terms.
Each of the items of appropriation as hereinafter defined and
enumerated shall represent, in the broadest permissible sense, a
specific purpose, and each such item of appropriation shall be the
estimate made and approved for such purpose, subject to encumbrance
and expenditure therefor under restrictions otherwise provided by
law. The distinctive functional purpose of each shall be that
assigned by statute, charter or ordinance to the office, board,
commission or department for counties, cities and towns, and to
quasi-municipal boards serving a particular function but lacking
corporate powers. As applied to each, except where otherwise
provided by law, the terms used shall be applied in meaning as
follows: the term "personal services" is defined to comprehend all
salaries, wages, per diem compensation, fees where the only
compensation of the recipient is the fees earned, and all allowances
or reimbursement for travel expense where authorized by law and/or
defined by law, paid to any officer, deputy, employee or other
individual for services rendered or employment in relation to the
office, department or subdivision of the municipality, including such
items as fees and mileage of witnesses and jurors when paid from the
general fund, fees of constables and justices of the peace and all
other fees, compensation or remuneration paid to individuals or
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persons who have only their professional, technical or vocational
skills and services to sell. In the departments of roads and
highways and/or streets and alleys the term "personal services" shall
comprehend all items so defined hereinbefore and shall be further
specifically defined to include such items as salaries, wages, per
diem compensation and all other compensation or remuneration paid to
engineers, surveyors, mechanics, truck drivers, tractor and grader
operators, carpenters, etc., for professional, technical and
vocational skills and services rendered in relation to employment by
or within such department or subdivision of the municipality. The
term "maintenance and operation" is defined to comprehend all current
expense except those items herein defined as "personal services" and/
or "capital outlay," and "sinking funds," including all items,
articles and materials consumed with use, rentals on machinery and
equipment, premiums on surety bonds and insurance, all maintenance
and repair accomplished according to the conditions of a contract,
and all items of expense paid to any person, firm or corporation who
renders service in connection with the repair, sale or trade of
articles and commodities. In the departments of roads and highways
and/or streets and alleys the term "maintenance and operation" shall
comprehend all items so defined hereinbefore, and shall be further
specifically defined to include all items, articles and materials
consumed with the use in the repair, maintenance, construction or
reconstruction of roads, bridges, highways, streets and alleys by the
usage of force account labor, rentals on machinery and equipment,
premiums on surety bonds and insurance, and all repair and
maintenance accomplished under the terms of a contract. The term
"capital outlay" is defined to comprehend all items and articles
(either new or replacements) not consumed with use but only
diminished in value with prolonged use, such as new, or replacements
of, machinery, equipment, furniture and fixtures, all real
properties, and all construction or reconstruction of buildings,
appurtenances and improvements to real properties accomplished
according to the conditions of a contract. In the departments of
roads and highways and/or streets and alleys the term "capital
outlay" shall comprehend all items so defined hereinbefore and shall
be further specifically defined to include the cost, and all expense
incurred in relation thereto, of rights-of-way or other real property
necessary for the construction of roads and highways and/or streets
and alleys as the case may be. Provided, that the State Auditor and
Inspector may add or substitute, and define, other items of
appropriation where necessary to fulfill special functions therein
required, but such items shall always be the fewest that will fulfill
the requirements of the Constitution or Legislature.
Laws 1965, c. 501, § 2; Laws 1979, c. 30, § 120, emerg. eff. April 6,
1979. Renumbered from § 2490 by Laws 1988, c. 162, § 163, eff. Jan.
1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
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§68-3011. Departments operated within general fund - Special budget
and cash accounts - Items of appropriation.
(1) For each office, board, commission and department, including
public utilities operated within the general fund, and special budget
accounts and cash accounts, of counties, cities and towns, the items
of appropriation shall, unless otherwise provided by law, be as
follows: "personal services," "maintenance and operation," and
"capital outlay," applied as enumerated and defined in the preceding
section. Provided, that public utilities owned or controlled and
managed by the city may be operated within the budget as a department
within the general fund or may be separately operated as a private
enterprise, not controlled by general taxation statutes, and
expenditures for operating expenses, replacements and extensions may
be made from the income derived from the operation of such utility
without appropriation. Nothing herein contained shall operate to
prevent the governing board from transferring any surplus, not needed
for the operation of such public utilities, to the general fund or
sinking fund of the municipality.
(2) The board of trustees of a town (not a city) having a
population less than that required by law to become a city, may at
its option submit its estimate of needs in short form, not
departmentalized, showing in separate items the amounts of funds
estimated and appropriated for the functions and purposes thereof,
but defined as follows: "personal services," "maintenance and
operation" and "capital outlay" as enumerated and defined in the
preceding section. Small utilities managed directly by such board of
town trustees may be operated within such budget or separately
operated and reported as are city utilities separately operated; but
if within the budget and as separate department, the departmentalized
budget form shall be used.
Laws 1965, c. 501, § 2. Renumbered from § 2491 by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-3012. Public hearings before excise boards.
The county excise board of each county shall at its first annual
meeting fix the time and place for public hearings before such board
at which meeting any taxpayer may appear and be heard for or against
any part of the statements of estimated needs for current expense
purposes for the current fiscal year as certified by each of the
municipalities.
Laws 1965, c. 501, § 2. Renumbered from § 2492 by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
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§68-3013. Notice of hearing - Continuing hearings - Calling
officials for examination.
The notice of such hearing shall be given by one publication in a
newspaper of general circulation in such county and such notice shall
fix the time and place of such hearing.
The hearing shall be continued from day to day until concluded,
not to exceed a total of ten (10) days; provided, however, that such
hearing shall be concluded before the expiration of ten (10) days if
there are no requests on file with the board at such hearing. Upon
the request of any taxpayer at such hearing, the excise board shall
have the power to call in the official or person in charge of any
office, department, or municipality for examination concerning
estimated needs for current expense purposes for the current fiscal
year, as certified by the various municipalities.
Laws 1965, c. 501, § 2. Renumbered from § 2493 by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-3014. Tax levies - Duties of county excise board - Duties of
county assessor - Changes and corrections - Delivery to county
treasurer.
A. The county excise board shall meet on the first Monday of
July of each year, or on such earlier date in the year as determined
by the excise board, for the purpose of performing the duties
required of it by law, and shall meet from day to day until all of
the levies shall have been fixed and the appropriations approved.
B. As used in this section, "municipality" or "municipal
subdivision" shall mean a taxing jurisdiction authorized by law to
levy ad valorem taxes.
C. It shall be the duty of said board to certify the levies of
each municipality to the county assessor on the same date that such
levies are fixed; and it shall be the duty of the county assessor to
proceed to extend such levies on his tax rolls immediately upon
receipt of such certificates, without regard to any protest that may
be filed against any levy. It shall further be the duty of the
county assessor to deliver the tax rolls to the county treasurer when
the same shall have been completed, and at the same time, to file a
true and correct abstract of such tax rolls with the county clerk.
The county clerk shall charge the county treasurer with the amount
contained in said abstract. Should there be any correction or change
in the levy of any municipality, after such levy has been certified
by the county excise board to the county assessor, regardless of
whether such change is made by order of the county excise board or by
a court of competent jurisdiction, it shall be the duty of the county
assessor to deliver the tax rolls to the county treasurer, without
regard to such change; and it shall be the duty of the county
treasurer, with the assistance of the county assessor, to make the
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necessary corrections on the tax rolls after the same shall have been
delivered to the said county treasurer.
D. The county excise board shall fix the levies and make the
appropriations of each municipality within fifteen (15) days after
the financial statement and estimate of any such municipality is
filed, unless the valuations of the county, and the municipal
subdivisions thereof, have not been certified to it; and, in that
event, said excise board shall have thirty (30) days from the date of
receipt of such valuations. If any such municipality extends into a
county for which the valuations have not been certified, it shall be
the duty of the county excise board to fix the levies and make
appropriations for such municipality based upon the certified
valuation of the other county for the preceding year. Such
municipality shall have thirty (30) days from receipt of the
certified valuations of the other county or counties to request
modification of the appropriations.
E. It shall be the duty of the county assessor in the
preparation of the tax roll to separately list and extend on the
rolls all real property by separately listing all city and town lots
and all other real property in subdivisions of a quarter of a quarter
of a section, or less, if such subdivisions are owned in less
quantity, describing the same in the usual and customary manner, or
by metes and bounds and showing the value of all buildings and
improvements on each separate and distinct piece of property. The
county assessor shall, notwithstanding the filing of any protest
against the levies or budgets or the pendency of any procedure with
reference to the correctness of the assessment of any property or as
to the legality of any levy, complete the tax roll and abstract
thereof, and deliver the same to the county treasurer and county
clerk, respectively, on or before the first day of October of each
year. The county treasurer shall accept the said rolls and upon the
date fixed when taxes shall become due and payable the county
treasurer shall proceed to collect the taxes as provided by law.
Laws 1965, c. 501, § 2; Laws 1980, c. 226, § 9, emerg. eff. May 27,
1980; Laws 1988, c. 77, § 1, emerg. eff. March 25, 1988. Renumbered
from § 2494 by Laws 1988, c. 162, § 163, eff. Jan. 1, 1992 and Laws
1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3015. Apportionment of millage.
The county excise board shall meet for the purpose of performing
the duties required of it by law as provided by the preceding
section, and shall on or before July 25th of each year apportion the
millage as authorized by Section 9, Article X, Oklahoma Constitution.
Laws 1965, c. 501, § 2. Renumbered from § 2495 by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
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§68-3016. Appropriation when estimate not submitted.
Should any municipality fail to make and submit an estimate as
herein provided, the county excise board shall have authority to make
an appropriation for current expense and sinking fund purposes and
make such levy therefor as it may find necessary to meet the probable
needs of such municipality, provided that no such estimate shall be
approved until the same shall have been by the county excise board
advertised in like manner to items that shall be added to or
increased in an estimate.
Laws 1965, c. 501, § 2. Renumbered from § 2496 by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-3017. Computation of appropriations - Procedure.
When the excise board shall have ascertained the total assessed
valuation of the property taxed ad valorem in the county and in each
municipal subdivision thereof, and shall have computed the total of
the several items of appropriation for general fund, sinking fund,
and other legal purposes for the county and each municipal
subdivision thereof, said board shall then proceed to compute the
levy for each fund of each municipality. The procedure for the
computation of such levies shall be as follows:
First: Determine the total amount of the several items of
appropriation for each fund.
Second: Deduct from such total appropriation the actual cash
fund balance of the immediately preceding fiscal year.
Third: Deduct from the remainder thus ascertained the estimated
probable income from sources other than ad valorem taxation; however,
in no event shall the amount of such estimated income exceed ninety
percent (90%) of the actual collections from such sources for the
previous fiscal year. Provided, that the amount of such estimated
income for a school district may be the amount that is chargeable as
minimum program income of the district for the purpose of receiving
state equalization aid. Also, deduct the estimated probable revenue
to be derived from additional collection from taxes in the process of
collection of the immediately preceding taxable year; provided that
the amount so estimated shall be cash fund balance as hereinafter
defined, and shall include none of that portion of the reserve added
at the beginning of such year for delinquent tax, and shall not
exceed ninety percent (90%) of the actual collections of additional
back taxes legally accrued to and credited to the same fund account
of the immediately preceding fiscal year.
Fourth: Add to the remainder a reserve for delinquent taxes, the
amount of which reserve shall be determined by the excise board,
except for any municipality which has opted by resolution to come
under the provisions of Section 17-201 et seq. of Title 11 of the
Oklahoma Statutes, in which case the governing body of such
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municipality shall determine the needs of the municipality for
sinking fund purposes, after taking into consideration the amount of
uncollected taxes for the previous year or years; provided that the
reserve so added shall not exceed twenty percent (20%) or be less
than five percent (5%); and provided, further, that the reserve so
added shall not be subject to review.
Fifth: Compute the levy necessary to raise an amount of money
equal to the remainder thus ascertained, based upon the total
assessed valuation of the county or subdivision thereof, taking into
consideration any deduction which must be made because of the
exemption of homesteads as required by Section 2406 et seq. of this
Code.
Sixth: Compute the reduction in levy necessary to be made
because of monies being required by law to be used for the purpose of
reducing ad valorem tax levies.
The rates of levy for general fund, sinking fund, and other
purposes authorized by law shall be separately made and stated, and
the revenue accruing therefrom respectively, when collected, shall be
credited to the proper fund accounts.
Laws 1965, c. 501, § 2; Laws 1977, c. 228, § 1, eff. July 1, 1977;
Laws 1984, c. 146, § 2, operative July 1, 1984; Laws 1988, c. 90, §
11, operative July 1, 1988. Renumbered from § 2497 by Laws 1988, c.
162, § 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan.
1, 1992.
§68-3018. Cash fund balance - Transfer - "Cash fund balance"
defined.
If and when an actual cash fund balance shall accrue in any fund
for any prior fiscal year, such fund balance shall forthwith be
transferred to the same fund for the fiscal year next succeeding the
year for which the taxes were originally levied, and shall be used to
pay any warrants and interest thereon which may be outstanding and
unpaid for such year. After all warrants and interest on such
warrants for such year have been paid or reserved for, the fund
balance, if any, shall forthwith be transferred to the next
succeeding year for the same purpose. This procedure shall be
followed for each succeeding fiscal year until all warrants issued
prior to the current fiscal year are paid or reserved for, and then
any cash fund balance remaining shall accrue and be transferred to
the current fiscal year, to be used to pay any legal warrant and
interest charges of such year. The term "actual cash fund balance",
as used herein, is hereby defined to mean an excess of actual cash
actually on hand over and above all legal obligations. Taxes in
process of collection shall not be considered in determining the
actual cash fund balance for any fund for any fiscal year or years.
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Laws 1965, c. 501, § 2; Laws 1988, c. 90, § 12, operative July 1,
1988. Renumbered from § 2498 by Laws 1988, c. 162, § 163, eff. Jan.
1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3019. Certifying appropriation - Accounts - Warrants -
Certificates of indebtedness.
The secretary of the excise board shall immediately certify each
appropriation as made by the excise board to the clerk or other
issuing officer of the municipality for which the same is made. The
several items of the estimate as made and approved by the excise
board for each fiscal year shall constitute and are hereby declared
to be an appropriation of funds for the several and specific purposes
named in such estimate, and the appropriations thus made shall not be
used for any other fiscal year or purposes whatsoever, except as
provided in the preceding section. Each clerk or other issuing
officer shall open and keep an account for the amount of each item of
appropriation, showing the purpose for which the same is
appropriated, and the date, number, and amount of each warrant
thereon. No warrant or certificate of indebtedness in any form shall
be issued, approved, signed or attested, on or against any
appropriation for a purpose other than that for which the said item
of appropriation was made, or in excess of the amount thereof.
Added by Laws 1965, c. 501, § 2. Renumbered from § 2499 by Laws
1988, c. 162, § 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3,
eff. Jan. 1, 1992. Amended by Laws 1993, c. 107, § 1, emerg. eff.
April 23, 1993.
§68-3020. Temporary appropriations.
A. The excise boards of the various counties in the state may
convene at any time after the beginning of any fiscal year, upon call
of the chairman of the board, for the purpose of approving temporary
appropriations for the counties, cities, school districts and other
municipal subdivisions of the state. Whenever the governing board of
any such county, city, school district or other municipal subdivision
of the state shall present to the excise board of such county or of
the county in which any such city, school district or other municipal
subdivision is located in whole or in part, a verified application
showing that the needs of such county, city, school district or other
municipal subdivision so require, such excise board may make
temporary appropriations for lawful current expenses of such county,
city, school district or other municipal subdivision.
B. Warrants or checks may be drawn against such temporary
appropriations pending action by the excise board upon the annual
estimate of needs and budget of such county, city, school district or
other municipal subdivision for such fiscal year. The amount which
may be appropriated by such temporary appropriations shall in no
event exceed the entire amount which the governing board, making the
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application, estimates will be available for the entire fiscal year
for each purpose for which a temporary appropriation is requested;
provided, however, the limitation on appropriations and any
requirement for request or approval of temporary appropriations shall
not apply to any city or town if the revenue from the ad valorem tax
to the municipal general fund amounted to less than five percent (5%)
of the total revenues accruing to the municipal general fund during
the prior fiscal year. Such cities and towns may pay for lawful
current expenditures pursuant to the estimate of needs as filed by
the city or town and pending final action of the excise board.
C. Any such temporary appropriations so approved by the excise
board of any county shall, when the annual budget for such county,
city, school district or other municipal subdivision is finally
approved, be merged in the annual appropriations for the same
purposes and any warrant which has been, in the meantime, drawn
against such temporary appropriations shall be charged against the
final approved annual appropriations of such county, city, school
district or other municipal subdivision for the said current fiscal
year.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1977, c. 60, § 1,
eff. Oct. 1, 1977; Laws 1980, c. 226, § 6, emerg. eff. May 27, 1980;
Laws 1983, c. 36, § 1, eff. Nov. 1, 1983; Laws 1988, c. 90, § 13,
operative July 1, 1988. Renumbered from § 24100 of this title by
Laws 1988, c. 162, § 163, eff. Jan. 1, 1992. Amended by Laws 1991,
c. 236, § 5, eff. Sept. 1, 1991; Laws 2004, c. 361, § 17, eff. July
1, 2004.
§68-3021. Supplemental and additional appropriations.
Whenever the public welfare or the needs of any county, city,
town, or school district shall require, the excise board may, on call
of the chair, convene at any time for the purpose of making
supplemental or additional appropriations for current expense
purposes; provided, that all such appropriations authorizing the
creation of an indebtedness shall come within the limitations of
Section 26, Article X, Oklahoma Constitution. No supplemental or
additional appropriation shall be made for any county, city, town or
school district in excess of the income and revenue provided or
accumulated for the year. As to all such proposed appropriations the
following procedure shall be followed:
First: The proper officers of the county, city, town or school
district shall make and file with the excise board a financial
statement showing its true fiscal condition as at the close of the
month next preceding or as of May 15 or June 20, or both dates,
preceding the date of filing, and shall submit therewith a statement
of the amount and purpose for which each proposed supplemental
appropriation is to be used. The financial statement shall show, as
to current expense or general fund, the amount of cash in the
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treasury; the amount of taxes in process of collection as to which
the date of sale for delinquency has not elapsed; the amount of the
uncollected portion of the estimated income other than ad valorem tax
as fixed by the excise board for the current fiscal year; the amount
of warrants outstanding and an estimate of the interest accrued and
accruing thereon; the amount of unexpended balance of all
appropriations for current expense purposes as to which a period of
six (6) months has not elapsed from the date of the close of the
fiscal year for which the appropriation was available; and the
surplus or deficit in revenue, if any, in each fund.
Second: If the financial statement herein required shall
correctly reflect a surplus in revenue in any fund available for
current expenses, and the excise board shall so affirmatively find,
it may make supplemental appropriations to an amount not exceeding
the aggregate of such surplus.
Third: If the surplus of revenue, as found and determined by the
excise board, shall be insufficient for the additional needs and
requirements of the county, or other municipal subdivision, the
excise board shall have the power and authority to revoke and cancel
in whole, or in part, any appropriation or appropriations, or parts
thereof, previously made to any officer or department of government
of any county, city, town or school district and to make in lieu
thereof such supplemental and additional appropriations for current
expense purpose as the interest of the public may require; provided,
that no appropriation or part thereof shall be revoked or canceled
against which there may be an unpaid claim or contract pending. The
total amount of all such appropriations shall not exceed the
aggregate of the amount of appropriations so revoked or canceled, and
the surplus or unappropriated revenue, if any, of the county, city,
town or school district for which it is proposed to make such
additional appropriation; provided, that before any appropriation or
part thereof shall be revoked or canceled, the officer or officers in
charge of the office or department of government for which any such
appropriation is available shall be notified of the proposed
revocation or cancellation, and shall be afforded an opportunity, if
so desired, to appear before the excise board and protest against
such proposed action. As to counties, cities and school districts,
the financial statement and request for supplemental appropriations
herein required to be filed with the excise board shall be published
at least one time in some newspaper of general circulation in the
county or city for which made. The publication shall be made at
least three (3) days prior to the date on which the excise board
shall consider the proposed supplemental or additional
appropriations. No appropriations shall be made and considered by
the excise board in the absence of the financial statement herein
required to be filed.
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Fourth: If at any time during the budget year it appears to the
county treasurer that there is temporarily insufficient money in a
particular fund to meet the requirements of appropriation in the
fund, the excise board, upon request of the county treasurer and upon
notification to the county commissioners, may temporarily transfer
money from one fund to any other fund with the permission of the
county officer in charge of the fund that the money will be
temporarily transferred from. No transfer shall be made from the
debt service fund to any other fund except as may be permitted by the
terms of the bond issue or applicable law. Any funds temporarily
transferred shall be repaid to the original fund from which they were
transferred within the fiscal year that the funds were transferred.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1973, c. 93, § 1,
emerg. eff. May 2, 1973. Renumbered from § 24101 of this title by
Laws 1988, c. 162, § 163, eff. Jan. 1, 1992. Amended by Laws 1991,
c. 236, § 6, eff. Sept. 1, 1991; Laws 2006, c. 96, § 1, emerg. eff.
April 25, 2006.
§68-3022. Municipal budgets and levies - Filing - Notice.
After the officers of the several municipal subdivisions of the
state, constituting the budget making bodies of such subdivisions,
including counties, cities, towns and school districts, shall have
made and filed their budgets as required by existing laws with the
county clerks, and after advertisement as now required by law, the
excise boards shall meet from time to time thereafter until the State
Board of Equalization shall have reported the valuation of public
service corporations and utilities, together with the equalized
valuation of all other property, to the county, and shall then
proceed to pass on appropriations and make levies for all such
municipal subdivisions as now provided by law, and shall file a copy
of all budgets with the levies made thereon, with the State Auditor
and Inspector, and one copy with the county clerks of the respective
counties, and the county clerk shall immediately thereafter publish
notice for one time, in some newspaper of general circulation in the
county, that such budgets and levies are on file for the inspection
of any citizen.
Within three (3) days after the filing of any such budgets and
levies with the State Auditor and Inspector, the State Auditor and
Inspector shall give notice by mail of the fact and date of such
filing to any taxpayer who shall have filed written request therefor.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1979, c. 30, § 41,
emerg. eff. April 6, 1979. Renumbered from Title 68, § 24102 by Laws
1988, c. 162, § 163, eff. Jan 1, 1992 and Laws 1991, c. 249, § 3,
eff. Jan. 1, 1992; Laws 2004, c. 447, § 14, emerg. eff. June 4, 2004.
§68-3023. Examination of budgets and levies by taxpayers - Filing
protests.
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(a) Taxpayers of the state shall have the right, at all times, to
examine the budgets and levies on file with the respective county
clerks of the state and with the State Auditor and Inspector, for the
purpose of checking same for illegalities in the levies made, and any
taxpayer may, at any time within fifteen (15) days from the date of
filing with the State Auditor and Inspector as above provided for,
file a protest in writing together with three copies thereof, with
the State Auditor and Inspector against any alleged illegality of any
levy. Provided the State Auditor and Inspector shall grant an
additional fifteen (15) days in which any taxpayer may file protest
to any budget or levy upon proper application showing the necessity
for such extension. The State Auditor and Inspector shall thereupon
transmit by certified mail one copy of each to the county clerk, the
district attorney and county treasurer of the county affected
thereby; or said protest with the same number of copies may be filed
with the county clerk in which event the county clerk shall transmit
one copy of each to the State Auditor and Inspector and to the
district attorney and county treasurer of the county affected
thereby, and such filing shall have the same force and effect as
though filed with the State Auditor and Inspector. The said protest
shall specify the said alleged illegal levy and the grounds upon
which said alleged illegalities are based. Any protest filed by any
taxpayer as herein provided shall inure to the benefit of all
taxpayers. If no protest is filed by any taxpayer as to the levy of
any county or municipal subdivision thereof within said fifteen-day
period or any extension thereof all appropriations and levies of said
county and municipal subdivisions thereof not protested, shall be
deemed to be legal, and all proceedings for refunds or suits for
refunds or recovery of taxes or to contest the validity thereof in
any manner shall be barred.
(b) The excise board may reconvene at any time within sixty (60)
days after the filing of the budgets and levies with the State
Auditor and Inspector and reduce any protested budgets and levies
which the excise board deems to be illegal.
Laws 1965, c. 501, § 2; Laws 1973, c. 268, § 1, emerg. eff. May 24,
1973; Laws 1979, c. 30, § 42, emerg. eff. April 6, 1979. Renumbered
from § 24103 by Laws 1988, c. 162, § 163, eff. Jan. 1, 1992 and Laws
1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3024. Court of Tax Review.
A. There is hereby re-created a Court of Tax Review. For each
case brought before the Court of Tax Review, the Chief Justice of the
Oklahoma Supreme Court shall assign the case to a judicial
administrative district. The presiding judge of the judicial
administrative district to which the case is assigned shall appoint a
panel of three judges of the district court, who shall determine in
what county the case will be heard. A majority of the three-judge
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panel shall be required to render a decision in each case. The
Oklahoma Supreme Court shall establish court rules for the Court of
Tax Review and the Clerk of the Oklahoma Supreme Court shall serve as
Clerk of the Court of Tax Review.
B. The Court of Tax Review is hereby vested with jurisdiction
over and shall hear:
1. Complaints regarding valuation of public service corporation
property by the State Board of Equalization as authorized by Section
2881 of this title, for which a scheduling conference shall be
required within twenty (20) days of the answer filed by the State
Board of Equalization;
2. Complaints regarding actions of the State Board of
Equalization regarding either intracounty or intercounty property
value equalization as authorized by Section 2882 of this title; and
3. Appeals as authorized by Section 2830 of this title
concerning Category 2 or Category 3 noncompliance as determined by
the Oklahoma Tax Commission. The Court of Tax Review shall determine
if a county deemed to be in Category 3 noncompliance is required to
reimburse the Oklahoma Tax Commission from the county assessor's
budget for all costs incurred as a result of the assumption of the
valuation function by the Commission.
C. The Court of Tax Review shall prescribe procedures for the
purpose of hearing properly filed protests against alleged illegal
levies, as shown on the annual budgets filed with the State Auditor
and Inspector. The Court shall reconvene as often as deemed
necessary by the Court until final determination has been made as to
all protested levies. The judges shall be paid their traveling and
living expenses while acting as members of the Court, out of the
funds now provided by law for payment of district judges' expenses
when holding court outside the counties of their residence.
Decisions of the Court of Tax Review concerning alleged illegal
levies shall be subject to the provisions of Sections 3025, 3026,
3027, 3028 and 3029 of this title.
D. The Court of Tax Review as it existed prior to July 1, 1997,
shall cease to exist and all duties and responsibilities of such
court, except as provided in this section, shall be transferred to
the Court of Tax Review as re-created in this section.
E. All cases which have not been submitted for determination in
the Court of Tax Review as it existed prior to July 1, 1997, shall be
transferred to the Court of Tax Review as it exists after July 1,
1997, for disposition. All cases which have been submitted by the
parties for determination in the Court of Tax Review prior to July 1,
1997, shall remain with the panel to which they have been assigned
for final determination.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1979, c. 30, § 43,
emerg. eff. April 6, 1979; Laws 1980, c. 361, § 3, eff. Oct. 1, 1980;
Laws 1988, c. 162, § 154, eff. Jan. 1, 1992; Laws 1989, c. 321, § 24,
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operative Jan. 1, 1992. Renumbered from § 24104 by Laws 1988, c.
162, § 163, eff. Jan. 1, 1992, as amended by Laws 1991, c. 249, § 3,
eff. Jan. 1, 1992. Amended by Laws 1992, c. 360, § 5, eff. July 1,
1992; Laws 1996, c. 97, § 20, eff. Nov. 1, 1996; Laws 1997, c. 337, §
3, eff. July 1, 1997.
§68-3025. Powers and duties of Court - Continuances.
Said Court shall have the power and it shall be its duty to hear
and determine all protests filed under Section 24103 of this Code,
and it shall have the power to administer oaths, compel the
attendance of witnesses and production of evidence, including any
public record from any county in the state upon the hearing of such
protests. Said Court shall proceed to hear and determine all said
protests as speedily as practicable, and, so far as practicable,
shall hear all protests for any county on the same date; provided
that continuances may be granted as to any protestant or any county
upon good cause shown.
Laws 1965, c. 501, § 2; Renumbered from § 24105 by Laws 1988, c.
162, § 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan.
1, 1992.
§68-3026. Decision - Correction of appropriations and tax roll -
Representation of counties - Pleading.
The Court of Tax Review shall hear and determine all protests
submitted to it and its decision shall be in writing and filed with
the State Auditor and Inspector whose duty it shall be, if no appeal
be taken as hereinafter provided, to transmit a copy of such decision
to the county clerk, county assessor, and county treasurer, and to
the protestant or his attorney of record, and it shall thereupon be
the duty of the county clerk to correct the appropriations
accordingly, and the duty of the county assessor to so correct the
tax rolls if the same have not been turned over to the county
treasurer. The district attorney, assisted by the Attorney General
at the request of the district attorney, shall represent his county
and the municipal subdivisions thereof at the hearing of any protest
before said Court of Tax Review, and each county shall pay all
necessary expenses of its district attorney in attending any such
hearings. No pleadings by the county shall be required and the cause
shall be deemed at issue upon the filing of such protest.
Laws 1965, c. 501, § 2; Laws 1979, c. 30, § 44, emerg. eff. April 6,
1979; Laws 1988, c. 162, § 155, eff. Jan. 1, 1992. Renumbered from §
24106 by Laws 1988, c. 162, § 163, eff. Jan. 1, 1992, and by Laws
1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3027. Appeals - Finality of unappealed decision.
Either the protestant or the county may appeal from the final
decision of the Court to the Supreme Court of the state, and it shall
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be sufficient to perfect such appeal if the appellant shall, within
thirty (30) days from the date of such decision of the Court, file
with the Clerk of the Supreme Court a petition in error with a copy
of the order or decision appealed from. If no appeal be taken, the
decision of the Court shall be final.
Laws 1965, c. 501, § 2; Laws 1970, c. 189, § 1, eff. Jan. 1, 1971.
Renumbered from § 24107 by Laws 1988, c. 162, § 163, eff. Jan 1, 1992
and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3028. Time and manner of perfecting record on appeal -
Determination without costs - Setting case for hearing.
The Court shall cause the evidence adduced at any time and all
hearings to be taken and preserved, and upon an appeal being taken in
any case, the record, consisting of protest and the transcript of the
proceedings sought to be reviewed, shall be perfected within the time
and in the manner prescribed by rule of the Supreme Court. The time
limit prescribed herein for filing the petition in error may not be
extended. The appeal shall be docketed and determined without cost
to either party and the Supreme Court shall, as soon as practicable,
set the case for hearing after briefs have been filed under the rules
and orders of the Court.
Laws 1965, c. 501, § 2; Laws 1970, c. 189, § 2. Renumbered from §
24108 by Laws 1998, c. 162, § 163, eff. Jan. 1, 1992 and Laws 1991,
c. 249, § 3, eff. Jan. 1, 1992.
§68-3029. Mandate from Supreme Court - Correction of appropriation.
After the decision of the Supreme Court in any case becomes
final, the Clerk of said Court shall issue and transmit a proper
mandate to the State Auditor and Inspector, who shall thereupon
transmit certified copies thereof to the county clerk, county
treasurer and the attorney of record for the protestant, and the
county clerk shall thereupon immediately correct the appropriations
in accordance with said mandate and as herein provided in cases where
no appeal is taken.
Laws 1965, c. 501, § 2; Laws 1979, c. 30 § 45, emerg eff. April 6,
1979. Renumbered from § 24109 by Laws 1988, c. 162, § 163, eff. Jan.
1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3030. Effect of protest - Refund of excess taxes.
(a) The filing of protest as herein provided shall not prevent
the spreading of record and the collection of any levy made by the
excise board, but if any protest be filed as herein provided and any
taxes shall be paid pending the hearing and determination of said
protest or pending the decision of the Supreme Court, all that part
of the levy alleged in said protest to be illegal shall be retained
by the county treasurer in a separate fund until the legality of said
levy has been determined, and all taxes paid by any taxpayer in
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excess of the amount finally determined to be legal shall be refunded
by the county treasurer to the taxpayer, together with such interest
thereon as may have been received by the county treasurer on such
fund pending final determination of the illegality of such levy, upon
verified claim filed with the county clerk at any time within six (6)
months after such final determination.
(b) It shall be the duty of the county clerk within thirty (30)
days from the final determination of the illegality of all levies to
notify all taxpayers by publication in one issue of a newspaper of
general circulation in the county that refund will be made of excess
tax collected.
(c) If no demand is made for refund within said period of six (6)
months, said taxes so collected and held shall be distributed to the
fund or funds for which they were levied and collected and credited
as a surplus therein for the next succeeding fiscal year.
Laws 1965, c. 501, § 2; Renumbered from § 24110 by Laws 1988, c.
162, § 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan.
1, 1992.
§68-3031. Payment and collection of taxes not affected.
Nothing in Sections 24102 - 24112 of this Code shall be construed
to affect the time for payment and collection of taxes as now
provided by law.
Laws 1965, c. 501, § 2. Renumbered from § 24111 by Laws 1988, c.
162, § 163, eff. Jan 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-3032. Warrants and debts prohibited during protest period -
Exceptions.
(1) Pending the expiration of the time within which protests may
be filed with the State Auditor and Inspector, no warrant shall be
issued or debt contracted by any municipality for any purpose except
as provided hereinafter:
(a) Counties: For salaries and compensation of each officer and
all regular deputies and employees thereunder, including home
demonstration agents and farm demonstration agents employed by the
board of county commissioners under contract with the Extension
Division of the Oklahoma State University or United States Department
of Agriculture or any other state or federal department under
cooperative agreement with the board of county commissioners as now
or that may hereafter be provided by law, salaries of the county
superintendent of health and regular employees of any county health
unit, for regular salaries and maintenance and operation costs of a
county hospital and other quasi-municipal boards now or hereafter
created by law; for insurance on county property and risks including
premiums on bonds of public officials; for office supplies, blank
books, stationery, printing, postage, telephone, telegraph, lights,
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fuel and water; for rent; for support, maintenance, surgical and
medical attention and necessary medicine and hospitalization, and
transportation, of the poor or insane, prisoners, and widows; for
neglected children, crippled children; for support, maintenance,
surgical and medical attention and necessary medicines and
hospitalization and transportation of crippled, homeless, abandoned,
dependent and neglected children, and children in danger of becoming
delinquent, whether or not such debts are contracted in conjunction
with a cooperating state department or agency; for jury
commissioners, jurors, bailiffs, and witnesses for courts of record,
for transcripts and each item of court expense as may be necessary
and authorized by law; for fees of peace officers, and for such fees
and costs in criminal and coroner actions for which the county is
liable; for election expenses, including salaries, per diem, and such
other expenses as allowed by law; for annual audits and examination
of fiscal affairs of the county; for fuels, oils, and maintenance and
repair of county highway equipment and regular salaries and wages of
the county engineer, his or her assistants, and regularly employed
maintenance workers, in event of emergency entered of record in the
minutes of the board by full and unanimous adoption, the necessary
wages of emergency help, supplies, and materials for county highway
repair, or any other necessity of the county as required by an
emergency entered of record in the board minutes; and capital outlay
items purchased from temporary appropriations approved by the board
of county commissioners and the county excise board or county budget
boards whichever is appropriate.
(b) Cities and towns: For salaries and temporary compensation
for each officer and all regular deputies and employees thereunder,
for insurance on city or town property or risks including bonds
required of any officials or employees, for office supplies, blank
books, stationery, printing, postage, telephone, telegraph, express,
freight, drayage, light, current, water, fuels and oils, maintenance
materials and supplies, and rents, whether for the city or town
proper or for any utility enterprise or for any quasi-municipal or
semi-independent board or commission therein authorized and
functioning under authority of city charters or the laws of this
state, or any department thereof such as street, police, radio, fire,
water, light, library, hospital, court, detention home; for board,
maintenance and medical care of prisoners; for charities and aid to
the poor; for clinics and health service including cooperative
agreements with the State Department of Health with or without
coordination with the board of county commissioners of the county or
schools of the city or town or in cooperation with any other state or
federal agency as now or as may hereafter be authorized by law; for
jurors and witnesses in the municipal criminal court or police court;
for election expenses, including salaries, per diem, and such other
expenses as allowed by law; for annual or special audits and
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examination of fiscal affairs of cities and towns; for maintenance of
public libraries, parks, streets or any other continuously
functioning governmental, quasi-governmental, or utility enterprise,
and the continuing normal expense of operation thereof whether of
salaries, wages, materials, or supplies, and whether herein
enumerated or not; for capital improvements or capital outlays; and,
in event of emergency entered of record by order of the governing
board describing it, the necessary wages of emergency help, supplies,
materials, and other necessities as the emergency demands. Provided,
however, that this section shall not apply to any city or town if the
revenue from the ad valorem tax to the municipal general fund
amounted to less than five percent (5%) of the total revenues
accruing to the municipal general fund during the prior fiscal year.
(c) School districts: For salaries and compensation of
officers; for salaries and compensation of teachers and other
employees; for office supplies, blank books, stationery and printing;
for light, fuel and water; for school supplies, equipment and
apparatus; for freight, express and other transportation charges; for
repair and maintenance of buildings, grounds and equipment; for
administrative expense; for transportation of children to and from
school; and for payment of insurance. Except as otherwise provided
by Section 1-117 of Title 70 of the Oklahoma Statutes, capital
expenditures, as defined by the section, shall not be authorized by
this section from the general fund of a school district but may be
authorized from the building fund of a school district.
(d) Fairs: For premiums on livestock; poultry, agricultural and
horticultural products; dairy products, boys' and girls' club work,
products of domestic science and domestic arts, school exhibits, hand
paintings, decorating and drawing, manufactured articles, cultivated
plants and flowers.
For necessary expenses of management of all fairs authorized by
law including office expenses, postage, telegraph and telephone,
salary and traveling expenses of the secretary, printing and
necessary office supplies, premium ribbons and badges, clerical help,
guards, superintendents and judges.
For advertising the fairs and for decorating and cleaning the
grounds and buildings.
For transportation and arrangement of fair exhibits at the county
fair and county fair exhibits at the Oklahoma State Fair and other
state fairs.
(2) Pending the final determination of any protested levy, no
warrant shall be issued or debt contracted against any contested
portion of any fund, except for the purposes hereinbefore provided.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1979, c. 30, § 46,
emerg. eff. April 6, 1979; Laws 1980, c. 226, § 7, emerg. eff. May
27, 1980; Laws 1989, c. 156, § 1, emerg. eff. May 8, 1989; Laws 1990,
c. 221, § 5, operative July 1, 1990; Laws 1991, c. 209, § 1, eff.
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July 1, 1991. Renumbered from § 24112 by Laws 1988, c. 162, § 163,
eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992; Laws
1995, c. 153, § 1, emerg. eff. May 2, 1995.
§68-3033. County clerk to furnish budget forms.
It is hereby made the duty of each county clerk, as secretary of
the county excise board of his county, to procure and furnish, at the
expense of his county, the budget forms required by Section 24102 of
this Code for the budget making bodies mentioned therein to prepare
and file for consideration by said excise board and to be, by them,
filed with the county clerk and State Auditor and Inspector as
prescribed by law.
Laws 1965, c. 501, § 2; Laws 1979, c. 30, § 47, emerg. eff. April 6,
1979. Renumbered from § 24113 by Laws 1988, c. 162, § 163, eff. Jan
1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1, 1992.
§68-3101. Tax lien on real property.
Taxes upon real property are hereby made a lien for seven (7)
years from the date upon which such tax became due and payable.
Added by Laws 1985, c. 356, § 11, emerg. eff. July 30, 1985.
Renumbered from § 24304.1 by Laws 1988, c. 162, § 161, eff. January
1, 1992 and Laws 1991, c. 249, § 1, eff. January 1, 1992.
§68-3102. Personal property tax lien - Notice - Entry on docket -
Priority.
Within sixty (60) days after taxes on personal property shall
become delinquent as of April 1, the county treasurer shall mail
notice to the last-known address of such delinquent taxpayer and
cause a general notice to be published one time in some newspaper of
general circulation, published in the county, giving the name of each
person owing delinquent personal property taxes, stating the amount
thereof due, and stating that such delinquent personal property
taxes, within thirty (30) days from date of this publication, shall
be placed on a personal property tax lien docket in the office of the
county treasurer and the homestead exemption of such taxpayer shall
be canceled pursuant to Section 2892 of this title. Such liens are
superior to all other liens, conveyances or encumbrances filed
subsequent thereto, on real or personal property. The tax lien shall
be a lien on all real and personal property of the taxpayer in the
county for a period of seven (7) years, except as otherwise provided
in subsection B of Section 3103 of this title. From and after the
entry of the tax upon the tax lien docket, any person claiming any
interest in any land or personal property can sue the county
treasurer and board of county commissioners in the district court to
determine the validity or priority of the lien.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1970, c. 299, § 2,
emerg. eff. April 28, 1970; Laws 1971, c. 165, § 1, emerg. eff. May
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25, 1971; Laws 1990, c. 63, § 3, eff. Jan. 1, 1991; Laws 1990, c.
339, § 17, emerg. eff. May 31, 1990; Laws 1991, c. 41, § 1, emerg.
eff. April 4, 1991. Renumbered from Title 68, § 24305 by Laws 1988,
c. 162, § 161, eff. Jan. 1, 1992 and by Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992. Amended by Laws 1997, c. 340, § 5, emerg. eff. June 9,
1997; Laws 2004, c. 447, § 15, emerg. eff. June 4, 2004.
§68-3103. Personal property tax lien record - Priority of liens -
Release of lien for purposes of sale - Collection of delinquent
personal taxes and penalties - Tax lien docket - Treasurer's
statement.
A. Within thirty (30) days after publication of the general
notice required in the provisions of Section 3102 of this title, the
county treasurer shall cause a personal property tax lien record to
be made in a docket for such purpose, showing the names and addresses
of all persons, firms, and corporations owing delinquent personal
property taxes, setting forth the delinquent years and amounts due
and unpaid, together with penalty and costs as provided for by
Section 2913 of this title. The liens are superior to all other
liens, conveyances or encumbrances filed subsequent thereto, on real
or personal property. The tax lien shall be a lien on all personal
and real property of the person, firm, or corporation owing the
delinquent tax for a period of seven (7) years from the date of the
tax lien, except as otherwise provided in subsection B of this
section. If such a lien is not collected within seven (7) years from
the date upon which such tax became due and payable, the unpaid
personal property taxes shall cease to be a lien upon any real or
personal property of the person, firm, or corporation owing the tax.
The provisions of this section shall not apply to taxes which became
due or payable prior to January 1, 1971.
B. A tax lien on real property of a business arising from
delinquent personal property taxes of the business may be released
for purposes of a sale of such real property upon application to and
approval of the county treasurer. No lien shall be released unless
all excess proceeds of the sale are paid to the county treasurer in
payment of the personal property taxes which are the subject of the
lien. If a county treasurer determines that such a lien should be
released, the county treasurer shall make an entry in the county
treasurer's tax records indicating that the lien has been removed
from the real property to be sold. The tax lien shall remain valid
as to all other property of the taxpayer. As used in this
subsection, "excess proceeds" means all proceeds over those needed to
satisfy any liens on the property which have priority over the
personal property tax lien of the county.
C. It shall be the duty of the county treasurer to collect all
delinquent personal taxes due and unpaid, together with penalties and
costs, as provided for by Section 2913 of this title, and costs and
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lien fee in the amount of Five Dollars ($5.00), and, upon receiving
the same, shall release the lien on the personal property tax lien
docket.
D. The county treasurer shall keep a personal property tax lien
docket in the form prescribed by the State Auditor and Inspector and
shall enter on the docket the names and addresses of delinquent
taxpayers along with the other information required by the provisions
of this section.
E. Upon compliance with the provisions of this section and
Section 3102 of this title, the county treasurer may enter in the
personal property tax lien docket the following statement:
"All unpaid items contained in this tax roll have been
transferred to the personal property tax lien docket for this year."
No further entries are required and the personal property tax roll
for that year may be closed. The provisions of this section apply to
all personal property tax rolls after 1970. Except as otherwise
provided by subsection B of this section, all unpaid personal
property taxes shall become a lien on any real estate owned by the
taxpayer.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1970, c. 299, § 3,
emerg. eff. April 28, 1970; Laws 1971, c. 165, § 2, emerg. eff. May
25, 1971; Laws 1975, c. 186, § 1, emerg. eff. May 23, 1975; Laws
1979, c. 30, § 124, emerg. eff. April 6, 1979; Laws 1984, c. 195, §
4, eff. Jan. 1, 1985; Laws 1990, c. 63, § 4, eff. Jan. 1, 1991; Laws
1991, c. 41, § 2, emerg. eff. April 4, 1991. Renumbered from § 24306
of this title by Laws 1988, c. 162, § 161, eff. Jan. 1, 1992 and by
Laws 1991, c. 249, § 1, eff. Jan. 1, 1992. Amended by Laws 1997, c.
340, § 6, emerg. eff. June 9, 1997.
§68-3104. Tax warrants.
A. 1. The county treasurer shall issue tax warrants for the
collection of delinquent personal taxes upon demand of any person, or
whenever the treasurer shall deem it advisable, on a form prescribed
by the State Auditor and Inspector, to the sheriff of the county in
which the real or personal property is located for the collection of
such delinquent personal taxes.
2. The tax warrant shall be issued or directed against any
person or legal entity who had possession, control or an interest in
personal property at the time the taxes were assessed.
3. The tax warrant shall command the sheriff to collect the
amount due for unpaid taxes, penalties and interest thereon, cost of
advertising, sheriff's collection fees and any other lawful fees on
personal property belonging to the person to whom such taxes were
assessed, and if no personal property is found, then upon any real
property such person owns or in which such person has an interest.
B. 1. The sheriff, upon receiving a tax warrant, shall levy
said warrant and sell the property of the taxpayer in the manner and
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form as provided for the sale of personal and/or real property on
execution.
2. The sheriff shall pay the total amount received from the sale
of personal and/or real property to the county treasurer.
3. The tax warrant shall be returned by the sheriff within sixty
(60) days after its issuance.
4. Failure to collect or return the tax warrant as provided in
this section, shall subject the sheriff to the same penalties as
provided by law for the failure to collect or return execution.
5. The sheriff shall be entitled to the same fees as are
provided by law for like sales on execution.
Added by Laws 1971, c. 165, § 3, emerg. eff. May 25, 1971. Amended
by Laws 1979, c. 30, § 125, emerg, eff. April 6, 1979. Renumbered
from § 24306.1 by Laws 1988, c. 162, § 162, eff. January 1, 1992 and
Laws 1991, c. 249, § 1, eff. January 1, 1992. Amended by Laws 2003,
c. 184, § 6, eff. Nov. 1, 2003.
§68-3105. Real property to be sold for delinquent taxes and special
assessments - Exemption.
A. The county treasurer shall in all cases, except those
provided for in subsection B of this section, where taxes are a lien
upon real property and have been unpaid for a period of three (3)
years or more as of the date such taxes first became due and payable,
advertise and sell such real estate for such taxes and all other
delinquent taxes, special assessments and costs at the tax resale
provided for in Section 3125 of this title, which shall be held on
the second Monday of June each year in each county. The county
treasurer shall not be bound before so doing to proceed to collect by
sale all personal taxes on personal property which are by law made a
lien on realty, but shall include such personal tax with that due on
the realty, and shall sell the realty for all of the taxes and
special assessments.
B. In counties with a population in excess of one hundred
thousand (100,000) persons according to the most recent federal
decennial census, the county treasurer shall not conduct a tax sale
of such real estate where taxes are a lien upon real property if the
following conditions are met:
1. The real property contains a single-family residential
dwelling;
2. The individual residing on the property is sixty-five (65)
years of age or older or has been classified as totally disabled, as
defined in subsection C of this section, and such individual owes the
taxes due on the real property;
3. The real property is not currently being used as rental
property;
4. The individual living on the property has an annual income
that does not exceed the HHS Poverty Guidelines as established each
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year by the United States Department of Health and Human Services
that are published in the Federal Register and in effect at the time
that the proposed tax sale is to take place; and
5. The fair market value of the real property as reflected on
the tax rolls in the office of the county assessor does not exceed
One Hundred Twenty-five Thousand Dollars ($125,000.00).
C. As used in this section, a person who is “totally disabled”
means a person who is unable to engage in any substantial gainful
activity by reason of a medically determined physical or mental
impairment which can be expected to last for a continuous period of
twelve (12) months or more. Proof of disability may be established
by certification by an agency of state government, an insurance
company, or as may be required by the county treasurer. Eligibility
to receive disability benefits pursuant to a total disability under
the Federal Social Security Act shall constitute proof of disability
for purposes of this section.
D. It shall be the duty of the individual owning property
subject to the provisions of subsection B of this section to make
application to the county treasurer for an exemption from a tax sale
prior to the property being sold. It shall also be the duty of the
individual to provide evidence to the county treasurer that the
individual meets the financial requirements outlined in paragraph 4
of subsection B and all other requirements of this section to qualify
for the exemption. Any individual claiming the exemption provided in
this section shall establish eligibility for the exemption each year
the exemption is claimed.
E. Taxes, interest and penalties will continue to accrue while
the exemption is claimed. The exemption from sale of property
described in this section shall no longer be applicable and the
county treasurer shall proceed with the sale of such real estate if
any of the conditions prescribed in this section are no longer met.
F. Every notice of tax resale shall contain language approved by
the Office of the State Auditor and Inspector informing the taxpayer
of the provisions of this section.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1968, c. 404, § 1,
emerg. eff. May 17, 1968. Renumbered from § 24311 of this title by
Laws 1988, c. 162, § 161, eff. Jan. 1, 1992, as amended by Laws 1991,
c. 249, § 1, eff. Jan. 1, 1992. Amended by Laws 2002, c. 183, § 1,
eff. July 1, 2002; Laws 2003, c. 181, § 1, eff. Nov. 1, 2003; Laws
2007, c. 172, § 4, eff. Nov. 1, 2007; Laws 2008, c. 82, § 1, emerg.
eff. April 24, 2008.
§68-3105.1. Tax liens held prior to effective date of act.
Any person holding a tax lien pursuant to Sections 3101 through
3125 of Title 68 of the Oklahoma Statutes prior to the effective date
of this act shall be authorized to continue the tax lien or tax deed
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process under the laws in effect at the time such tax lien or tax
deed was obtained.
Added by Laws 2008, c. 82, § 7, emerg. eff. April 24, 2008.
§68-3106. Notice of delinquent taxes and special assessments.
A. The county treasurer, according to the law, shall give notice
of delinquent taxes and special assessments by publication once a
week for two (2) consecutive weeks at any time after April 1, but
prior to the end of September following the year the taxes were first
due and payable, in some newspaper in the county to be designated by
the county treasurer. Such notice shall contain a notification that
all lands on which the taxes are delinquent and remain due and unpaid
will be sold in accordance with Section 3105 of this title, a list of
the lands to be sold, the name or names of the last record owner or
owners as of the preceding December 31 or later as reflected by the
records in the office of the county assessor, which records shall be
updated based on real property conveyed after October 1 each year and
the amount of taxes due and delinquent. If the sale involves
property upon which is located a manufactured home the notice shall
contain the following language: "The sale hereby advertised involves
a manufactured home which may be subject to the right of a secured
party to repossess. A holder of a perfected security interest in
such manufactured home may be able to pay ad valorem taxes based upon
the value of the manufactured home apart from the value of real
property." In addition to said published notice, the county
treasurer shall give notice by mailing to the record owner of said
real property as of the preceding December 31 or later as reflected
by the records in the office of the county assessor, which records
shall be updated based on real property conveyed after October 1 each
year, a notice stating the amount of delinquent taxes owed and
informing the owner that the subject real property will be sold as
provided for in Section 3105 of this title if the delinquent taxes
are not paid and showing the legal description of the property of the
owner being sold. Failure to receive said notice shall not
invalidate said sale. The county treasurer shall charge and collect
in cash, cashier's check or money order, in addition to the taxes,
interest and penalty, the publication fees as provided by the
provisions of Section 121 of Title 28 of the Oklahoma Statutes, and
Five Dollars ($5.00) plus postage for mailing the notice, which shall
be paid into the county treasury or whatever fund the publication and
mailing fee expenses came from, and the county shall pay the cost of
the publication of such notice. But in no case shall the county be
liable for more than the amount charged to the delinquent lands for
advertising and the cost of mailing.
B. If personal property taxes become delinquent on a
manufactured home which is located on property not owned by the owner
of the manufactured home and the county treasurer provides notice
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pursuant to Sections 3102 and 3103 of this title, such notice shall
also be sent to the last-known address of the owner of the real
property on which the manufactured home is located.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1968, c. 404, § 2,
emerg. eff. May 17, 1968; Laws 1971, c. 154, § 1, emerg. eff. May 22,
1971; Laws 1972, c. 98, § 1, eff. Sept. 1, 1972; Laws 1974, c. 80, §
1, eff. Jan. 1, 1975; Laws 1984, c. 195, § 5, eff. Jan. 1, 1985; Laws
1984, c. 295, § 2, eff. Jan. 1, 1985; Laws 1988, c. 80, § 9, eff.
Jan. 1, 1989. Renumbered from § 24312 of this title by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992, as amended by Laws 1991, c. 249, § 1,
eff. Jan. 1, 1992. Amended by Laws 2007, c. 172, § 5, eff. Nov. 1,
2007; Laws 2008, c. 82, § 2, emerg. eff. April 24, 2008; Laws 2009,
c. 191, § 1, eff. Nov. 1, 2009; Laws 2010, c. 416, § 1, eff. Nov. 1,
2010; Laws 2017, c. 39, § 1, eff. Nov. 1, 2017.
§68-3106.1. Renumbered as § 3127.1 of this title by Laws 1997, c.
337, § 5, eff. July 1, 1997.
§68-3107. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3108. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3109. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3110. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3111. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3112. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3113. Redemption of real estate.
The owner of any real estate, or any person having a legal or
equitable interest therein, may redeem the same at any time before
the execution of a deed of conveyance therefor by the county
treasurer by paying to the county treasurer the sum which was
originally delinquent including interest at the lawful rate as
provided in Section 2913 of this title and such additional costs as
may have accrued; provided, that minors or incapacitated or partially
incapacitated persons may redeem from taxes any real property
belonging to them within one (1) year after the expiration of such
disability, with interest and penalty at not more than ten percent
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(10%) per annum. The term incapacitated as used in this section
relates to mental incapacitation only, physical disability is not
covered under this term or this section.
Added by Laws 1965, c. 501, § 2. Renumbered from § 24318 of this
title by Laws 1988, c. 162, § 161, eff. Jan. 1, 1992, as amended by
Laws 1991, c. 249, § 1, eff. Jan. 1, 1992. Amended by Laws 1998, c.
246, § 30, eff. Nov. 1, 1998; Laws 2008, c. 82, § 3, emerg. eff.
April 24, 2008; Laws 2009, c. 191, § 2, eff. Nov. 1, 2009.
§68-3114. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3115. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3116. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3117. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3118. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3119. Resale tax deed - Rights conveyed.
A resale tax deed shall convey only the surface and surface
rights and mineral interests owned by the owners of the surface
rights as distinguished from mineral and mineral rights of such real
property. The resale tax deed shall not convey any other interest
owned by any other individual or legal entity.
Added by Laws 1979, c. 118, § 1. Renumbered from Title 68, § 24323.1
by Laws 1988, c. 162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249,
§ 1, eff. Jan. 1, 1992. Amended by Laws 2008, c. 82, § 4, emerg.
eff. April 24, 2008.
§68-3120. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3121. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3122. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3123. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
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§68-3124. Repealed by Laws 2008, c. 82, § 8, emerg. eff. April 24,
2008.
§68-3125. Resale by county of unredeemed lands.
If any real estate shall remain unredeemed for the period
provided for in Section 3105 of this title, the county treasurer
shall proceed to sell such real estate at resale, which shall be held
on the second Monday of June each year in each county.
Added by Laws 1965, c. 501, § 2. Renumbered from § 24329 of this
title by Laws 1988, c. 162, § 161, eff. Jan. 1, 1992 and by Laws
1991, c. 249, § 1, eff. Jan. 1, 1992. Amended by Laws 2004, c. 177,
§ 3, emerg. eff. May 3, 2004; Laws 2008, c. 82, § 5, emerg. eff.
April 24, 2008.
§68-3126. Advertising expense.
In the event the county excise board fails, neglects or refuses
to make an appropriation, or an appropriation in an amount
sufficient, to pay the cost of advertising the resale for any year,
the county treasurer shall proceed to advertise and hold such resale,
and the cost of advertising, or any part of the cost of advertising
over and above the amount appropriated by the county excise board,
shall be paid from the resale-property fund, hereinafter provided.
Laws 1965, c. 501, § 2. Renumbered from § 24330 by Laws 1988, c.
162, § 161, eff. Jan 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-3127. Notice of resale.
The county treasurer, according to the law, shall give notice of
the resale of such real estate by publication of said notice once a
week for four (4) consecutive weeks preceding such sale, in some
newspaper, having been continuously published one hundred four (104)
consecutive weeks with admission to the United States mails as
second-class mail matter, with paid circulation and published in the
county where delivered to the mails, to be designated by the county
treasurer; and if there be no paper published in the county, or
publication is refused, the county treasurer shall give notice by
written or printed notice posted on the door of the courthouse. Such
notice shall contain a description of the real estate to be sold, the
name of the record owner of said real estate as of the preceding
December 3l or later as shown by the records in the office of the
county assessor, which records shall be updated based on real
property conveyed after October 1 each year, the time and place of
sale, a statement of the date on which said real estate taxes first
became due and payable as provided for in Section 2913 of this title,
the year or years for which taxes have been assessed but remain
unpaid and a statement that the same has not been redeemed, the total
amount of all delinquent taxes, costs, penalties and interest
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accrued, due and unpaid on the same, and a statement that such real
estate will be sold to the highest bidder for cash. It shall not be
necessary to set forth the amount of taxes, penalties, interest and
costs accrued each year separately, but it shall be sufficient to
publish the total amount of all due and unpaid taxes, penalties,
interest and costs. The county treasurer shall, at least thirty (30)
days prior to such resale of real estate, give notice by certified
mail, by mailing to the record owner of said real estate, as shown by
the records in the county assessor’s office, which records shall be
updated based on real property conveyed after October 1 each year,
and to all mortgagees of record of said real estate a notice stating
the time and place of said resale and showing the legal description
of the real property to be sold. If the county treasurer does not
know and cannot, by the exercise of reasonable diligence, ascertain
the address of any mortgagee of record, then the county treasurer
shall cause an affidavit to be filed with the county clerk, on a form
approved by the State Auditor and Inspector, stating such fact, which
affidavit shall suffice, along with publication as provided for by
this section, to give any mortgagee of record notice of such resale.
Neither failure to send notice to any mortgagee of record of said
real estate nor failure to receive notice as provided for by this
section shall invalidate the resale, but the resale tax deed shall be
ineffective to extinguish any mortgage on said real estate of a
mortgagee to whom no notice was sent. Beginning on April 24, 2008,
no encumbrancer of real property in this state shall be permitted to
file any instrument purporting to encumber real property in any
county of the state with any county clerk unless the instrument
states on its face the mailing address of such encumbrancer.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1974, c. 80, § 2,
eff. Jan. 1, 1975; Laws 1984, c. 295, § 5, eff. Jan. 1, 1985.
Renumbered from § 24331 of this title by Laws 1988, c. 162, § 161,
eff. Jan. 1, 1992, as amended by Laws 1991, c. 249, § 1, eff. Jan. 1,
1992. Amended by Laws 2008, c. 82, § 6, emerg. eff. April 24, 2008;
Laws 2010, c. 416, § 2, eff. Nov. 1, 2010.
§68-3127.1. Repealed by Laws 2006, c. 77, § 8, eff. July 1, 2006.
§68-3128. Publication costs on resale, rate.
For publication costs on resale of real estate, and for
publishing lists of lands upon which taxes are delinquent, the county
treasurer shall charge and collect from the purchaser at such sale,
and the publisher shall be paid, as full compensation for publishing
said resale list in four regular issues, and for publishing lists of
land upon which taxes are delinquent in three regular issues, in some
newspaper within the county having been continuously published one
hundred four (104) consecutive weeks with admission to the United
States mails as second class mail matter:
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The publication fees, as provided by Title 28, O.S.1961, Section
121, or as same may hereafter be amended.
Laws 1965, c. 501, § 2. Renumbered from § 24332 by Laws 1988, c.
162, § 161, effective January 1, 1992 and Laws 1991, c. 249, § 1,
eff. Jan. 1, 1992.
§68-3129. Sale - Property bid off in name of county - County
liability.
A. On the day real estate is advertised for resale, the county
treasurer shall offer same for sale at the office of the county
treasurer between the hours of eight a.m. and five p.m., the exact
hours of each sale to be determined by the local county treasurer,
and continue the sale thereafter from day to day between such hours
until all of the real estate is sold. The real estate shall be sold
at public auction to the highest bidder for cash.
B. All property must be sold for a sum not less than two-thirds
(2/3) of the assessed value of such real estate as fixed for the
current fiscal year, or for the total amount of taxes, penalties,
interest and costs due on such property, whichever is the lesser. If
there is no bid equal to or greater than the sum so required, the
county treasurer shall bid off the same in the name of the county.
All property bid off in the name of the county shall be for the
amount of all taxes, penalties, interest and costs due thereon, and
the county treasurer shall issue a deed therefor to the board of
county commissioners for the use and benefit of the county.
C. The county treasurers shall provide to the Oklahoma Health
Care Authority (OHCA) a list of properties that will be sold at tax
resales in their respective counties. Using the information
provided, OHCA shall produce a list for each county of properties on
which OHCA has liens. The county treasurers shall make the list of
properties with OHCA liens available to potential buyers at the tax
resales. OHCA shall file a release of the liens on properties that
fit the definition of blighted properties as defined in Section 38-
101 of Title 11 of the Oklahoma Statutes, in the county records of
the county where the property is located upon request of that
county's treasurer. The filing of the lien release shall not
extinguish the debt owed to OHCA which may be enforced through any
legal means available to OHCA.
D. The county shall not be liable to the state or any taxing
district thereof for any part of the amount for which any property
may be sold to such county. All property bid off in the name of the
county shall be exempt from ad valorem taxation as long as title is
held for the county.
E. 1. The county shall not be civilly liable for any
environmental problems or conditions on any property which existed on
the property prior to the county's involuntary ownership of the
property pursuant to this section, or which may result from such
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environmental problems or conditions on the property. During the
period of the county's involuntary ownership of the property, the
person or persons who would be legally liable for the environmental
problems or conditions on the property but for the county's ownership
shall continue to be liable for such environmental problems or
conditions.
2. In addition, the county shall not be subject to civil
liability with regard to any actions taken by the county to remediate
any problems or conditions on the property resulting from the
environmental problems or conditions if the remedial action is not
performed in a reckless or negligent manner.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1991, c. 222, § 2,
eff. July 1, 1991. Renumbered from § 24333 of this title by Laws
1988, c. 162, § 161, effective Jan. 1, 1992, as amended by Laws 1991,
c. 249, § 1, eff. Jan. 1, 1992. Amended by Laws 1999, c. 187, § 3,
eff. Nov. 1, 1999; Laws 2013, c. 154, § 1, eff. Nov. 1, 2013; Laws
2014, c. 156, § 1, emerg. eff. April 25, 2014.
§68-3130. Monies received at resale deemed collections of tax -
Credit and apportionment.
Monies received by the county treasurer at resale from individual
purchasers, not redemptioners, shall nevertheless be deemed to be
collections of tax, and if no redemption be had before issuance and
delivery of a deed therefor, the tax monies so collected, not
including excess proceeds to be held for the owner thereof, shall be
credited and apportioned as such taxes would have been apportioned
had they been paid in the proper time and manner, and the monies so
collected representing penalties on ad valorem tax, listing fees and
publication costs shall be credited to the "resale property fund" of
such county as hereinafter provided. In instances where vacant lots
are offered for sale for both ad valorem taxes and special
improvement taxes, but are sold for less than the total sum due, the
county treasurer shall, after deducting the listing fees and
publication costs, apportion the proceeds of such sale ratably
between the ad valorem and special improvement tax accounts in the
same ratio such proceeds bear to the total tax published as due for
such resale.
Laws 1965, c. 501, § 2. Renumbered from § 24334 by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-3131. Filing of resale return with county clerk - Issuance of
deed - Payment of sale expenses - Remaining funds, disposition.
A. Within thirty (30) days after resale of property, the county
treasurer shall file in the office of the county clerk a return, and
retain a copy thereof in the county treasurer's office, which shall
show or include, as appropriate:
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1. Each tract or parcel of real estate so sold;
2. The date upon which it was resold;
3. The name of the purchaser;
4. The price paid therefor;
5. A copy of the notice of such resale with an affidavit of its
publication or posting; and
6. The complete minutes of sale, and that the same was adjourned
from day to day until the sale was completed.
Such notice and return shall be presumptive evidence of the
regularity, legality and validity of all the official acts leading up
to and constituting such resale. Within such thirty (30) days, the
county treasurer shall execute, acknowledge and deliver to the
purchaser or the purchaser's assigns, or to the board of county
commissioners where such property has been bid off in the name of the
county, a deed conveying the real estate thus resold. The issuance
of such deed shall effect the cancellation and setting aside of all
delinquent taxes, assessments, penalties and costs previously
assessed or existing against the real estate, and of all outstanding
individual and county tax sale certificates, and shall vest in the
grantee an absolute and perfect title in fee simple to the real
estate, subject to all claims which the state may have had on the
real estate for taxes or other liens or encumbrances. Twelve (12)
months after the deed shall have been filed for record in the county
clerk's office, no action shall be commenced to avoid or set aside
the deed. Provided, that persons under legal disability shall have
one (1) year after removal of such disability within which to redeem
the real estate.
B. Any number of lots or tracts of land may be included in one
deed, for which deed the county treasurer shall collect from the
purchaser the fees provided for in Section 43 of Title 28 of the
Oklahoma Statutes. The county treasurer shall also charge and
collect from the purchaser at such sale an amount in addition to the
bid placed on such real estate, sufficient to pay all expenses
incurred by the county in preparing, listing and advertising the lot
or tract purchased by such bidder, which sums shall be credited and
paid into the resale property fund hereinafter provided, to be used
to defray to that extent the costs of resale.
C. When any tract or lot of land sells for more than the taxes,
penalties, interest and cost due thereon, the excess shall be held in
a separate fund for the record owner of such land, as shown by the
county records as of the date said county resale begins, to be
withdrawn any time within one (1) year. No assignment of this right
to excess proceeds shall be valid which occurs on or after the date
on which said county resale began. At the end of one (1) year, if
such money has not been withdrawn or collected from the county, it
shall be credited to the county resale property fund.
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Added by Laws 1965, c. 501, § 2. Renumbered from § 24335 of this
title by Laws 1988, c. 162, § 161, eff. Jan. 1, 1992, as amended by
Laws 1991, c. 249, § 1, eff. Jan. 1, 1992. Amended by Laws 1994, c.
278, § 33, eff. Sept. 1, 1994; Laws 1999, c. 187, § 4, eff. Nov. 1,
1999; Laws 2004, c. 447, § 17, emerg. eff. June 4, 2004; Laws 2009,
c. 191, § 3, eff. Nov. 1, 2009; Laws 2014, c. 156, § 2, emerg. eff.
April 25, 2014.
§68-3132. Form of resale tax deed.
The resale tax deed shall be in substantially the following form:
Resale Deed
WHEREAS, _______, County Treasurer of ________ County, State of
Oklahoma, on the _____ day of ______, 19__, sold separately and
singly, in the manner provided by law, at tax resale and (here fill
in the name of the purchaser, unless the land was bid in for the
county, in which event, the name and official title of the County
Treasurer should appear) bid in for (in this space should appear, if
bid in for the county, "the County," if not bid in for the County,
the name of the successful bidder) the real estate hereinafter
described, and
WHEREAS, all proceedings, notices and duties provided, required
and imposed by law prerequisite to the vesting of authority in said
County Treasurer to execute this resale deed have been followed,
given, complied with and performed, and,
WHEREAS, the said ______, County Treasurer, is now by law vested
with the power and authority to execute this resale deed,
NOW, THEREFORE, this indenture, made this ____ day of ______,
19__, between the State of Oklahoma, by _________, the County
Treasurer of ________ County, of the first part, and (if purchased
for the county, the Board of County Commissioners should appear here;
if not, the name of the purchaser other than the county), of the
second part, witnesseth, that the said party of the first part for
and in consideration of the premises and (here fill in the total sum
paid, if purchased by one other than the county, or if purchased by
the county, the following: "the cancellation of all the taxes,
penalties, interest and costs heretofore levied and assessed against
the real estate hereinbelow described"), hath granted, bargained and
sold, and by these presents doth grant, bargain, sell and convey to
the said party of the second part, his (or her) (here should appear
such of the following words as are properly applicable: "heirs,
successors, executors, administrators and assigns"), forever, the
following separately described tracts, parcels, or lots of land so
sold separately and singly for the (if sold to one other than the
county, here insert "amount bid"; but if bid in the name of the
county, insert "amount of taxes, interest, penalties and costs
cancelled") in the total sum set opposite each, all of said tracts,
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parcels, or lots of land being located in ________ County, Oklahoma,
to wit:
Description Amount $
(Here should appear a proper legal description of each tract, as
sold, and opposite each, the amount of the bid, or the amount of the
total taxes, interest, penalty and costs cancelled as to each and
every such description) To have and to hold said tracts and parcels
of land, with the appurtenances thereto belonging, to said party of
the second part, his (or her) (here should appear such of the
following words as are properly applicable: "heirs, successors,
executors, administrators, and assigns") forever, in as full and
ample manner as the said County Treasurer of said County is empowered
by law to sell the same.
In testimony whereof, _______, County Treasurer of said County of
________, State of Oklahoma, has hereunto set his hand and seal the
day and year aforesaid.
Attest: State of Oklahoma
(Seal)
By ____________
County Treasurer
State of Oklahoma
SS.
_________ County
Before me, the undersigned, a Notary Public within and for the
above named county and State, on this ____ day of ________,
personally appeared _______, to me known to be the County Treasurer
of ________ County, Oklahoma, and the identical person who executed
the within and foregoing instrument and conveyance of land, and
acknowledged to me that he executed the same in his capacity as
County Treasurer of _______ County, Oklahoma, as his free and
voluntary act and deed as such, and as the free and voluntary act and
deed of ________ County, and the State of Oklahoma, for the uses and
purposes therein set forth.
Witness my hand and notarial seal the day and year above written.
_____________________
Notary Public
(Or County Clerk)
My Commission Expires __________.
Laws 1965, c. 501, § 2. Renumbered from § 24336 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3133. Prima facie evidence, resale tax deed as.
(a) A resale tax deed executed in substantial compliance with the
provisions of the preceding section shall be prima facie evidence in
all courts of the state, and in all suits and controversies relating
to the rights of the grantee named in said deed, his heirs,
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successors or assigns, to the land thereby conveyed, of the following
facts:
(1) That the real property deeded was subject to taxation for the
year or years included in such sale;
(2) That the property had been legally assessed for such year;
(3) That the taxes were levied according to law;
(4) That the said property was legally sold to the county at
delinquent tax sale more than two (2) years prior to said resale and
that the lien acquired by the county at such sale remained in the
county;
(5) That the property deeded had not been redeemed from sale at
the date of the deed;
(6) That the property was legally sold at resale to the grantee
named in said resale deed and was duly advertised before being sold;
(7) That all proceedings, notices and duties provided, required
and imposed by law prerequisite to the vesting of authority in the
county treasurer to execute such deed had been followed, given,
complied with and performed.
(b) To defeat the deed it must be clearly pleaded and clearly
proven that one or more of the essential prerequisites to the vesting
of authority in said county treasurer to execute such deed was wholly
omitted and not done; and a showing that one or more of said
prerequisites was irregularly done shall not be sufficient to defeat
the deed.
Laws 1965, c. 501, § 2. Renumbered from § 24337 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3134. Management of real estate purchased by county at resale.
So long as the same remains unsold, the board of county
commissioners shall manage the real estate purchased at resale in the
name of the county; leasing, renting or using such property for the
best interests of said county. The board is authorized to collect
rents, enforce ejectments, and to make repairs or replacements on
said real estate while the title remains in the county. Neglect of
the board of county commissioners to acquire possession of such
property shall constitute malfeasance in office and any county
commissioner upon conviction thereof shall be removed from office.
Laws 1965, c. 501, § 2. Renumbered from § 24338 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3134.1. Dilapidated buildings acquired at resale by county -
Tearing down and removal.
The board of county commissioners of any county in this state
with a population in excess of five hundred fifty thousand (550,000)
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may cause dilapidated buildings acquired by resale to be torn down
and removed in accordance with the following procedure:
1. For the purposes of this section, "dilapidated building"
means a structure which through neglect or injury lacks necessary
repairs or otherwise is in a state of decay or partial ruin to such
an extent that said structure is a hazard to the health, safety, or
welfare of the general public. "Owner" means the owner of record as
shown by the tax rolls of the county treasurer, at the time property
was bid off in the name of the county;
2. At least ten (10) days' notice that a building is to be torn
down or removed shall be given before the board of county
commissioners holds a hearing. A copy of the notice shall be posted
on the property to be affected. In addition, a copy of said notice
shall be sent by mail to the property owner at the address shown by
the tax rolls in the office of the county treasurer. Written notice
shall also be mailed to any mortgage holder as shown by the records
in the office of the county clerk to the last-known address of the
mortgagee. Notice shall also be given by posting a copy of the
notice on the property, and by publication in a newspaper having a
general circulation in the county. Such notice shall be published
once not less than ten (10) days prior to any hearing or action by
the board pursuant to the provisions of this section;
3. A hearing shall be held by the board of county commissioners
to determine if the property is dilapidated and has become
detrimental to the health, safety, or welfare of the general public
and the community, or if said property creates a fire hazard which is
dangerous to other property;
4. Pursuant to a finding that the condition of the property
constitutes a detriment or a hazard and that the property would be
benefited by the removal of such conditions, the board of county
commissioners may cause the dilapidated building to be torn down and
removed. The board of county commissioners shall fix reasonable
dates for the commencement and completion of the work. The agents of
the county are granted the right of entry on the property for the
performance of the necessary duties as a governmental function of the
county;
5. The board of county commissioners shall determine the actual
cost of the dismantling and removal of dilapidated buildings and any
other expenses that may be necessary in conjunction with the
dismantling and removal of the buildings including the cost of notice
and mailing. If dismantling and removal of the dilapidated buildings
is done on a private contract basis, the contract shall be awarded to
the lowest and best bidder. All costs and expenses may be paid from
the resale property fund of the county;
6. The board of county commissioners may designate, by
resolution, an administrative officer or administrative body to carry
out the duties of the board specified in this section. The property
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owner shall have the right of appeal to the board of county
commissioners from any order of the administrative officer or
administrative body. Such appeal shall be taken by filing written
notice of appeal with the county clerk within ten (10) days after the
administrative order is rendered;
7. Nothing in the provisions of this section shall prevent the
county from abating a dilapidated building as a nuisance or otherwise
exercising its duties to protect the health, safety, or welfare of
the general public; and
8. The officers, employees or agents of the county shall not be
liable for any damages or loss of property due to the removal of
dilapidated buildings performed pursuant to the provisions of this
section or as otherwise prescribed by law.
Added by Laws 1992, c. 22, § 3, emerg. eff. March 30, 1992.
§68-3135. Sale or auction of property acquired at resale by county.
A. Any property acquired by the county under the provisions of
the resale tax laws may be sold by the county treasurer, after notice
by publication, at a price as may be approved by the board of county
commissioners, the notice to be given after receipt of bid on the
property. The notice shall be published by the county treasurer once
during each of the three (3) consecutive weeks preceding the sale,
and if there be no paper published in the county, the county
treasurer shall give notice by written or printed notice posted on
the door of the courthouse. The notice shall embrace a description
of the property, the amount bid and the name of the bidder, and state
that the sale of the property so listed shall be made at the price
and to the bidder at a given date, beginning at an hour to be
specified therein, subject to the approval of the board of county
commissioners, unless higher bids are received at the sale. On the
date stated in the notice, the property shall be sold by the county
treasurer to the highest competitive bidder, for cash in hand or
certified funds, or to the original bidder if there be no higher
price offered. The sale in any event shall be subject to the
approval of the board of county commissioners in its discretion. The
cost of the advertisement and other expense incident to the sale, as
provided by law, shall be apportioned to the respective tracts listed
in the sale and shall be added to the sale price of the real estate
as a separate and additional charge and shall be paid by the
purchaser, in addition to the amount bid upon the real estate. A
deposit shall be required of any bidder before advertisement of the
property to cover the advertisement and costs. Upon declaring the
successful bidder at the sale, and before closing the sale, the
bidder shall be required to make, or increase, the bid sufficient to
cover cost of advertising and sale, and sufficient to cover the fees
of the county clerk for the recording mandatorily required by law
upon approval by the board of county commissioners, otherwise the
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sale shall continue. Upon approval of the sale as hereinbefore
provided, the chair of the board of county commissioners shall
execute a deed conveying title to the purchaser of the property in as
full and ample manner as by law provided on a form prescribed by the
State Auditor and Inspector.
B. In addition to the methods provided for in subsection A of
this section, the county may also periodically hold auctions to sell
any property or properties acquired by the county under the
provisions of the resale tax laws. The auctions shall be held at a
time, date and place as set by the county treasurer with the approval
of the county commissioners. On the date of the auction, the
property or properties shall be sold by the county treasurer to the
highest competitive bidder, for cash in hand or certified funds. Any
bid which is less than all of the real estate ad valorem taxes owed
at the time of the original resale shall be accepted only upon
approval of the county commissioners and the county excise board.
The county treasurer and county commissioners may contract with an
auctioneer to conduct the auction for a fee or commission as may be
mutually agreed upon. If an auctioneer is employed, the auctioneer
shall be responsible for conducting the auction and all the necessary
advertising.
Added by Laws 1965, c. 501, § 2. Amended by Laws 1979, c. 30, § 128,
emerg. eff. April 6, 1979. Renumbered from § 24339 of this title by
Laws 1988, c. 162, § 161, eff. Jan. 1, 1992, and Laws 1991, c. 249, §
1, eff. Jan. 1, 1992. Amended by Laws 1995, c. 182, § 6, eff. Nov.
1, 1995; Laws 1996, c. 205, § 1, eff. July 1, 1996; Laws 2007, c.
353, § 12, eff. Nov. 1, 2007.
§68-3136. Report of sale by county of property acquired at resale -
Recording.
When any sale is consummated under the provisions of the
preceding section, the county treasurer shall file, with the county
clerk, the original bid, proof of publication and report and approval
of sale by the board of county commissioners, and it shall be the
duty of the county clerk to record the same, and index it against
each and every tract or parcel sold. The cost of recording shall be
considered a part of the cost of sale, and shall be paid by the
purchaser. The State Auditor and Inspector shall prescribe, for the
use of the several county treasurers, a form of bid and form of
report of sale. The form of report of sale shall contain a place for
the approval of the sale by the board of county commissioners.
Laws 1965, c. 501, § 2. Amended by Laws 1979, c. 30, § 129, emerg.
eff. April 6, 1979. Renumbered from § 24340 by Laws 1988, c. 162, §
161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1, 1992.
§68-3137. Resale property fund.
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A. All penalties, interest and forfeitures which may accrue on
delinquent ad valorem taxes, whether real or personal, tangible or
intangible, on any properties, persons, firms or corporations within
any county, city, town or school district within a county; the
proceeds of sale of property acquired by the county at resale, the
proceeds of leases, rentals and other royalties arising from the
management, control and operation by the county commissioners of
property acquired by the county at resale, when collected shall be
credited to and accounted for in a special cash fund to be styled the
“resale property fund” of such county, except the proceeds of sale of
such property located in any special improvement district and by the
resale of which any special improvement taxes were canceled, in which
event the proceeds of sale thereof after having been acquired by the
county shall be divided ratably between the resale property fund and
the special improvement-tax account (paving, etc.) of the special
improvement district in which such property is located, in the same
ratio as the ad valorem tax bears to the special improvement taxes in
the total amount of such taxes published as due at the time of the
resale whereby the county acquired title to such property. That
portion so accruing to such special improvement-tax account shall, in
keeping with the statutes relating thereto, be applied to the fund
provided for retirement of bonds and interest coupons of such
improvement district.
B. The resale property fund herein created for each county is
hereby declared to be a continuous fund, not subject to fiscal year
limitations, and is hereby dedicated, insofar as may be necessary, to
the enforcement of the tax laws of the state, and is authorized to be
expended for the following purposes:
1. For the purchase of necessary records, printing, supplies and
equipment, and the employment of necessary clerical personnel, either
on whole or part-time basis, in connection with delinquent personal
tax lists and personal tax warrants, delinquent real estate tax lists
and lists of unredeemed delinquent real estate subject to tax sale or
resale, such costs to be limited to those incurred by the county
treasurer;
2. For payment of the cost of advertising or publication, or
posting if publication cannot be had, of any such lists;
3. For the reimbursement of the purchaser at resale or at
commissioners’ sale of any lot, tract, or parcel of real estate, sold
at resale, against which no tax was due, or where the inclusion of
such lot, tract, or parcel in the publication and offer for resale
has been held invalid by a court of competent jurisdiction, or where
the title thereto is vested in the Commissioners of the Land Office
of the State of Oklahoma, or where such Commissioners of the Land
Office have instituted or successfully terminated mortgage
foreclosure proceedings in relation thereto prior to issuance of
either a resale tax deed or a county commissioners’ deed, or where
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such tract or parcel was nontaxable at the time of the assessment
thereof for taxes, or where the sale thereof to such purchaser was
illegal for any other reason; and such purchaser has no adequate
recourse against the property thus sold; such reimbursement shall be
made in the order of the claims filed with the county treasurer
therefore, when properly supported by evidence satisfactory to said
treasurer that the claimant is entitled to reimbursement hereunder.
Provided, however, that no claim for refund not filed, as herein
provided, within a period of three (3) years from the date of such
sale shall be allowed or paid from said fund; and
4. For all rebates allowed under authority of statute by the
board of county commissioners or the tax roll correction board of the
county upon taxes found to have been illegally or erroneously
collected, or on sale of certificate or issue of tax deed on lands or
lots on which no tax was due or as to which the sale thereof is or
was illegal for any reason. Provided, however, before the owner of
such invalid deed may be reimbursed as aforesaid, he shall first be
required to divest himself of purported title by attaching a
quitclaim deed or other disclaimer to his claim for refund, setting
out the reason for invalidity of the tax deed. The same procedure
for refund shall apply whether the tax deed be from the county
treasurer or the chairman of the board of county commissioners. The
determination of whether such property has been erroneously sold for
taxes to such purchaser, shall be made by the board of county
commissioners; and in event title under an invalid resale tax deed
remains with the county commissioners, the board of county
commissioners so finding same invalid shall execute its resolution or
order of disclaimer which shall be filed in the deed records of the
county clerk without fee. No fee shall be charged for recording any
quitclaim deed or disclaimer from the purchaser under the provisions
of this section.
C. The expenditures so made shall be made only upon sworn
itemized claims approved by the county treasurer and filed with the
county clerk and paid by cash voucher drawn by the county clerk
payable from said fund. Claims for cost of publication shall take
precedence over all other claims on said fund, otherwise said
approved claims shall be paid in the order filed as funds accrue from
sale of county property as hereinbefore provided. If any such claim
has not been paid within three (3) years, the same shall cease to be
an obligation of the resale property fund of such county; but nothing
in this article shall operate to prevent the payment for such
services from an appropriation for such purpose in the general fund
of the county in the manner and under the restrictions provided by
law.
D. Any residue of cash actually on hand in said fund at any
time, after providing for the expense of delinquent tax publication,
and for the mandatory holding of sales and resales, made or about to
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be made, the purchase of necessary records, printing and supplies and
the payment of clerical hire, such expenditures, or reserve therefor,
to be limited to the necessary expenses incurred by virtue of the
authorization herein granted, may be expended by the county
commissioners, without further appropriation, in the upkeep, repair
and maintenance of unsold properties acquired by the county at
resale, by the issuance of cash warrants on such fund in payment of
sworn itemized claims therefor; limited in amount to the sum
certified to by the county treasurer as being actually on hand in
excess of the amount reserved for the purposes hereinbefore stated.
E. On or before the 30th of June of each year the county
treasurer shall file a financial statement of the resale property
fund with the county clerk for the approval of the board of county
commissioners, setting forth the necessary reserves for expenditures
either made or anticipated, to cover:
1. The cost of preparing and making delinquent tax publications,
as hereinbefore set out;
2. The purchase of necessary records, printing and supplies and
the payment of clerical hire, such reserves therefor, to be limited
to the necessary expenses incurred by virtue of the authorization
herein granted;
3. To pay claims and encumbrances for the upkeep, repair and
maintenance of unsold properties;
4. To pay all rebates allowed under authority of statute by the
board of county commissioners or the board of tax roll corrections
upon taxes found to have been illegally or erroneously collected; and
5. To pay for tax sale certificates or issue of deeds on lands
or lots on which no tax was due or as to which the sale thereof was
illegal for any reason.
F. Any balance remaining on hand over and above the necessary
reserves for the above mentioned items shall be apportioned forthwith
by the county treasurer in the following manner:
1. In each county having a net assessed valuation in excess of
Eight Million Dollars ($8,000,000.00):
a. one-third (1/3) of such surplus residue to such county
to be applied first to the payment of delinquent
warrants of such county, thereafter to its current
general fund,
b. one-third (1/3) to the cities and towns of such county,
in the ratio that the last certified assessed valuation
of each bears to the total such assessed valuation of
all such cities and towns in such county, to be by each
of them applied in the payment of any delinquent
warrants of such city or town, thereafter to its
current general fund, and
c. one-third (1/3) to the various school districts of the
county on a scholastic enumeration basis, to be applied
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by each of them to the payment of any delinquent
warrants of such district and thereafter to its current
general fund.
2. In each county having a net assessed valuation of Eight
Million Dollars ($8,000,000.00) or less:
a. In the ratio that the county, city or town and school
district levy bears to the fifteen-mill levy as
allocated by the county excise board.
b. Such surplus to the cities and towns of such county in
the ratio that the last certified assessed valuation of
each bears to the total assessed valuation of all such
cities or towns in such county.
c. Such surplus to the school districts of the county on a
scholastic enumeration basis.
d. The amounts apportioned to each county, city or town
and school district shall be applied by each of them to
the payment of any delinquent warrants of such
municipality and thereafter to its current general
fund.
G. Nothing in this section shall be construed to repeal, amend,
alter or modify any of the provisions of Sections 2479 or 2480 of
this article, but shall be construed to be cumulative thereto.
Added by Laws 1965, c. 501, § 2. Renumbered from Title 68, § 24341
by Laws 1988, c. 162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249,
§ 1, eff. Jan. 1, 1992; Laws 2004, c. 447, § 18, emerg. eff. June 4,
2004.
§68-3138. Conditions precedent to action to restrain tax collection.
Whenever any action or proceeding shall be commenced and
maintained before any court or judge to prevent or to restrain the
collection of any tax or part thereof or to recover any such tax
previously paid, or to recover the possession or title of any
property, real or personal, sold for taxes, or to invalidate any deed
or grant thereof for taxes, or to restrain, prevent, recover or delay
any payment of taxes; the true and just amount of taxes due upon such
property or by such person, if in dispute, must be ascertained and
paid before the judgment prayed for, and if not in dispute must be
paid in accordance with the provisions of this article.
Laws 1965, c. 501, § 2. Renumbered from § 24342 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3139. Official neglect not to affect sale.
The sale of lands, town or city lots, or any other real property,
shall not be invalid on account of such real property having been
listed or charged in any other name than that of the rightful owner;
nor shall any such sale be invalid nor the conveyance for the real
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property so sold be voidable by reason of neglect or failure of the
county treasurer or any other officer to collect the tax for which it
was sold by distraint and sale of personal property.
Laws 1965, c. 501, § 2. Renumbered from § 24343 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3140. Procedure to cancel deed.
To defeat the deed, the person desiring to set the same aside and
recover the land, or to resist the recovery of possession by the
holder of the deed, in addition to showing clearly the entire failure
to do some one or all the things of which the tax deed is made
presumptive evidence, must show that he or the person under whom he
claims had the right to redeem the land from tax sale at the time the
deed was made, and must, when his action to set aside the tax deed is
brought, or a defense to a recovery of possession is pleaded, tender
in open court for the use of the holder of the tax deed, all taxes,
penalties, interests and costs, which the party seeking to redeem
would be bound to pay if he was then redeeming the land from tax
sale, and on failure so to do, his action or defense, as the case may
be, shall be dismissed. The rule that tax proceedings are to be
strictly construed as against the tax purchaser, shall not apply to
proceedings under this article, but in all courts its provisions
shall be liberally construed, to the end that its provisions and all
proceedings thereunder shall be sustained.
Laws 1965, c. 501, § 2. Renumbered from § 24344 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3141. Limitation of action to recover land - Payment of taxes
due.
No action shall be commenced by the holder of the tax deed or the
former owner or owners of land by any person claiming under him or
them to recover possession of the land which has been sold and
conveyed by deed for nonpayment of taxes, or to avoid such deed,
unless such action shall be commenced within one (1) year after the
recording of such deed; and in case of action to avoid the deed, not
until all taxes, interest and penalties, costs and expenses, shall be
paid or tendered by the party commencing such action.
Laws 1965, c. 501, § 2. Renumbered from § 24345 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3142. Tax lien subject to other state lien.
Whenever any lands shall be sold for delinquent taxes under the
provisions of this article, upon which any mortgage or other lien
exists in favor of the State of Oklahoma, or the Commissioners of the
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Land Office or any other commission, board or officer having power to
loan public funds, or any funds under the control of the state upon
real estate security, such tax shall be secondary at all times to the
lien of the state, or of the Commissioners of the Land Office, or of
such commission, board or officer.
Laws 1965, c. 501, § 2. Renumbered from § 24346 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3143. Prior lien of state or subdivisions against public service
corporations for delinquent taxes.
The state or any county, city, town or school district shall have
and possess a prior lien against any public service corporation for
delinquent taxes.
Laws 1965, c. 501, § 2. Renumbered from § 24347 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3144. Quitclaim deed to land sold through error.
The board of county commissioners of any county in this state may
execute quitclaim deeds to persons whose property has been sold to
the county at a tax sale through error. The determination of whether
such property has been erroneously sold to the county shall be made
by the board of county commissioners upon proper application of the
aggrieved owner.
Laws 1965, c. 501, § 2. Renumbered from § 24348 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3145. Survival and enforcement of covenants and restrictions
running with land after resale or certificate tax deed.
Whenever in any city or incorporated town, or addition or
subdivision thereto or thereof, a deed in the chain of title shall
contain restrictions and covenants running with the land, as
hereinafter defined and limited, said restrictions and covenants
shall survive and be enforceable after the issuance of a resale or
certificate tax deed, to the same extent that they would be
enforceable against a voluntary grantee, immediate, mediate, or
remote, of the owner of the title immediately prior to the delivery
of the tax deed.
Laws 1965, c. 501, § 2. Renumbered from § 24349 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3146. Restrictions and covenants to which law applicable.
Section 3145 of this title shall apply only to the usual
restrictions and covenants limiting the use of property, the type,
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character and location of buildings, and covenants against nuisances
and what the former parties deemed to be undesirable conditions, in,
upon, and about the property, and other similar restrictions and
covenants.
Added by Laws 1965, c. 501, § 2. Renumbered from Title 68, § 24350
by Laws 1988, c. 162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249,
§ 1, eff. Jan. 1, 1992. Amended by Laws 1999, c. 146, § 1, eff. Nov.
1, 1999.
§68-3147. Other rights surviving to grantee.
Any right that the former owner had to enforce like restrictions
and covenants against the immediate, mediate or remote grantor and
other parties owning other property held or sold under the same plan,
or in the same or adjacent subdivisions of land or otherwise, except
forfeitures, right of reentry, or reverter, shall likewise survive to
the grantee in said tax deed and to his or its heirs, successors and
assigns.
Laws 1965, c. 501, § 2. Renumbered from § 24351 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3148. Officials - Failure to perform duties.
(a) Any county official charged with any duty in connection with
the holding of delinquent tax sales and tax resales who fails to
perform such duty, shall be guilty of malfeasance in office and upon
conviction thereof shall be removed from office. In addition, any
official who fails to perform such duty shall forfeit all salary or
compensation for his services for a period of three months after such
failure might, with due diligence, have been discovered; and any
official who approves, or votes to approve, a claim for salary or
compensation, or issues, registers or pays a warrant for salary or
compensation, in violation of the foregoing, shall be liable upon his
official bond for the payment of such salary or compensation.
(b) The provisions of this section relate to the duty of the
board of county commissioners and the county excise board to provide
funds for preparing and advertising delinquent tax sales and tax
resales, and to the duty of the county treasurer to prepare,
advertise and hold such delinquent tax sales and tax resales.
However, no county official shall be held responsible for failure to
hold a tax resale when prevented from doing so by prior failure to
hold a delinquent tax sale, or for failure to provide more than a
substantial portion of the funds necessary to pay the cost of
advertising a tax resale.
Laws 1965, c. 501, § 2. Renumbered from § 24400 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
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§68-3149. Attorney General - Removal of officials.
It shall be the duty of the Attorney General to file charges for
removal from office against any official who fails to make provision
for the holding of such tax sales and tax resales or to hold such tax
sales and tax resales as provided by law.
Laws 1965, c. 501, § 2. Renumbered from § 24401 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3150. Officer derelict in duty forfeits pay.
In case of a dereliction of any duty on the part of any officer
or person required by law to perform any duty under the provisions of
this article, such person shall thereby forfeit all pay and
allowances that would otherwise be due him, and the board of county
commissioners, on receiving satisfactory evidence of such dereliction
or failure, shall refuse to pay such person or persons any sum
whatever for such services.
Laws 1965, c. 501, § 2. Renumbered from § 24402 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3151. County treasurer to account quarterly.
In addition to the statements and showings required by this
article, it shall be the duty of the county treasurer four times each
year to balance his books and come to an accounting with the board of
county commissioners.
Laws 1965, c. 501, § 2. Renumbered from § 24403 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3152. Duties mandatory - Penalty for failure to perform.
The provisions of this article relating to the duties of various
officials, and the time within which such duties shall be performed,
are hereby declared to be mandatory, and the failure of any such
official, board or commission, to perform the duties prescribed
herein, within the time specified, shall subject them to removal from
office, for neglect of duty; and they shall receive no remuneration,
compensation or salary for their services, after the time herein
fixed for the performance of such duties and until the same shall
have been completed or performed. Each of them shall also be subject
to a penalty of Five Dollars ($5.00) per day for each day's delay for
such neglect or failure, and it shall be the duty of the district
attorney to institute proper action to collect any such penalty;
provided, that the validity of any levy or appropriation shall not be
affected because of any insufficiency, informality or delay in the
performance of any duty imposed upon any official, board or
commission by this article.
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Laws 1965, c. 501, § 2. Renumbered from § 24404 by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-3201. Imposition of tax - Definitions.
A. A tax is hereby imposed on each deed, instrument, or writing
by which any lands, tenements, or other realty sold shall be granted,
assigned, transferred, or otherwise conveyed to or vested in the
purchaser or purchasers, or any other person or persons, by his or
their direction, when the consideration or value of the interest or
property conveyed, exclusive of the value of any lien or encumbrance
remaining thereon at the time of sale, exceeds One Hundred Dollars
($100.00). The tax shall be prorated at the rate of seventy-five
cents ($0.75) for each Five Hundred Dollars ($500.00) of the
consideration or any fractional part thereof.
B. The tax is limited to conveyances of realty sold and does not
apply to other conveyances. The tax attaches at the time the deed or
other instrument of conveyance is executed and delivered to the
buyer, irrespective of the time when the sale is made.
C. As used in this section:
1. "Sold" means a transfer of an interest for a valuable
consideration, which may involve money or anything of value;
2. "Deed" means any instrument or writing whereby realty is
assigned, transferred, or otherwise conveyed to, or vested in, the
purchaser or, at his direction, any other person; and
3. "Consideration" means the actual pecuniary value exchanged or
paid or to be exchanged or paid in the future, exclusive of interest,
whether in money or otherwise, for the transfer or conveyance of an
interest of realty, including any assumed indebtedness.
Added by Laws 1967, c. 259, § 1. Amended by Laws 1971, c. 315, § 1,
operative July 1, 1971; Laws 1978, c. 120, § 1; Laws 1983, c. 275, §
14, emerg. eff. June 24, 1983; Laws 1984, c. 195, § 7, eff. Jan. 1,
1985. Renumbered from § 5101 of this title by Laws 1988, c. 162, §
160, eff. Jan. 1, 1992. Amended by Laws 1991, c. 338, § 2, eff. Jan.
1, 1992; Laws 2018, c. 260, § 3, eff. July 1, 2019.
§68-3202. Exemptions.
The tax imposed by Section 3201 of this title shall not apply to:
1. Deeds recorded prior to the effective date of Sections 3201
through 3206 of this title;
2. Deeds which secure a debt or other obligation;
3. Deeds which, without additional consideration, confirm,
correct, modify or supplement a deed previously recorded;
4. Deeds between husband and wife, or parent and child, or any
persons related within the second degree of consanguinity, without
actual consideration therefor, deeds between any person and an
express revocable trust created by such person or such person’s
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spouse or deeds pursuant to which property is transferred from a
person to a partnership, limited liability company or corporation of
which the transferor or the transferor’s spouse, parent, child, or
other person related within the second degree of consanguinity to the
transferor, or trust for primary benefit of such persons, are the
only owners of the partnership, limited liability company or
corporation. However, if any interest in the partnership, limited
liability company or corporation is transferred within one (1) year
to any person other than the transferor or the transferor’s spouse,
parent, child, or other person related within the second degree of
consanguinity to the transferor, the seller shall immediately pay the
amount of tax which would have been due had this exemption not been
granted;
5. Tax deeds;
6. Deeds of release of property which is security for a debt or
other obligation;
7. Deeds executed by Indians in approval proceedings of the
district courts or by the Secretary of the Interior;
8. Deeds of partition, unless, for consideration, some of the
parties take shares greater in value than their undivided interests,
in which event a tax attaches to each deed conveying such greater
share computed upon the consideration for the excess;
9. Deeds made pursuant to mergers of partnerships, limited
liability companies or corporations;
10. Deeds made by a subsidiary corporation to its parent
corporation for no consideration other than the cancellation or
surrender of the subsidiary's stock;
11. Deeds or instruments to which the State of Oklahoma or any
of its instrumentalities, agencies or subdivisions is a party,
whether as grantee or as grantor or in any other capacity;
12. Deeds or instruments to which the United States or any of
its agencies or departments is a party, whether as grantor or as
grantee or in any other capacity, provided that this shall not exempt
transfers to or from national banks or federal savings and loan
associations;
13. Any deed executed pursuant to a foreclosure proceeding in
which the grantee is the holder of a mortgage on the property being
foreclosed, or any deed executed pursuant to a power of sale in which
the grantee is the party exercising such power of sale or any deed
executed in favor of the holder of a mortgage on the property in
consideration for the release of the borrower from liability on the
indebtedness secured by such mortgage except as to cash consideration
paid; provided, however, the tax shall apply to deeds in other
foreclosure actions, unless otherwise hereinabove exempted, and shall
be paid by the purchaser in such foreclosure actions; or
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14. Deeds and other instruments to which the Oklahoma Space
Industry Development Authority or a spaceport user, as defined in the
Oklahoma Space Industry Development Act, is a party.
Added by Laws 1967, c. 259, § 2. Amended by Laws 1968, c. 186, § 1,
emerg. eff. April 15, 1968; Laws 1971, c. 315, § 2, operative July 1,
1971; Laws 1988, c. 24, § 1, operative July 1, 1988. Renumbered from
§ 5102 of this title by Laws 1988, c. 162, § 160, eff. Jan. 1, 1992.
Amended by Laws 1991, c. 338, § 3, eff. Jan. 1, 1992; Laws 1993, c.
366, § 48, eff. Sept. 1, 1993; Laws 1999, c. 164, § 41, eff. July 1,
1999; Laws 1999, c. 340, § 2, eff. July 1, 1999; Laws 2001, c. 405, §
48, eff. Nov. 1, 2001.
§68-3203. Persons obligated to pay tax - Requisite stamps -
Recording.
A. The taxes imposed by Section 3201 of this title shall be paid
by any person who makes, signs, issues, or sells any of the documents
and instruments subject to the taxes imposed by Section 3201 of this
title, or for whose use or benefit the same are made, signed, issued
or sold.
B. Only documentary stamps shall be used in payment of the tax
imposed by Section 3201 of this title. The requisite stamps shall be
affixed to the deed, instrument, or other writing by which the realty
is conveyed. Said tax is not to be considered paid until the
requisite stamps are affixed to the deed, instrument, or other
writing by which the realty is conveyed, which stamps must be affixed
before the deed is accepted for recording.
C. The name and address of the buyer shall be shown on the face
of the deed, instrument or other writing by which the realty is
conveyed prior to the recording of such deed, instrument or other
writing.
Laws 1967, c. 259, § 3; Laws 1971, c. 315, § 3, operative July 1,
1971. Renumbered from § 5103 by Laws 1988, c. 162, § 160, eff. Jan.
1, 1992; Laws 1991, c. 338, § 4, eff. Jan. 1, 1992.
§68-3204. Design and distribution of stamps - Accounting -
Distribution of funds.
A. The Oklahoma Tax Commission shall design such stamps in such
denominations as in its judgment it deems necessary for the
administration of this tax. The Oklahoma Tax Commission shall
distribute the stamps to the county clerks of the counties of this
state, and the county clerks shall have the responsibility of selling
these stamps and shall have the further duty of accounting for the
stamps to the Oklahoma Tax Commission on the last day of each month.
Stamp metering machines or rubber stamps as prescribed by the
Oklahoma Tax Commission may be used by the county clerk, and the
expenses thereof shall be paid by the county concerned. The use of
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meters or rubber stamps shall be governed by the Oklahoma Tax
Commission.
B. The county clerks shall account for all collections from the
sales of such stamps to the Oklahoma Tax Commission, on the last day
of each month. The first fifty-five cents ($0.55) of each seventy-
five cents ($0.75) collected shall be apportioned as follows:
1. The county clerks shall retain five percent (5%) of all
monies collected for such stamps as their cost of administration; and
2. Of the remaining ninety-five percent (95%) the Oklahoma Tax
Commission shall transfer monthly to the County Government Education-
Technical Revolving Fund created by Section 5 of this act for the
fiscal year ending June 30, 2020, and for each fiscal year
thereafter, Five Hundred Thousand Dollars ($500,000.00) plus three
percent (3%) of the remainder. The remainder of the collections
shall be transferred by the Oklahoma Tax Commission to the General
Revenue Fund of the State Treasury to be expended pursuant to
legislative appropriation.
C. The remaining twenty cents ($0.20) of each seventy-five cents
($0.75) collected shall be paid into the county general fund.
Added by Laws 1967, c. 259, § 4. Amended by Laws 1971, c. 315, § 4,
operative July 1, 1971; Laws 1978, c. 120, § 2; Laws 1981, c. 78, §
1, operative July 1, 1981; Laws 1986, c. 223, § 48, operative July 1,
1986. Renumbered from § 5104 of this title by Laws 1988, c. 162, §
160, eff. Jan. 1, 1992. Amended by Laws 1997, c. 304, § 13, emerg.
eff. May 29, 1997; Laws 2018, c. 260, § 4, eff. July 1, 2019.
§68-3205. Rules and regulations - Documentary Stamp Tax Unit.
The Oklahoma Tax Commission shall prescribe such rules and
regulations as it may deem necessary to carry out the purpose of
Sections 3201 through 3206 of this title. There is hereby created
the Documentary Stamp Tax Unit of the Oklahoma Tax Commission. The
Oklahoma Tax Commission through the Documentary Stamp Tax Unit shall
be responsible for the administration and enforcement of the taxes as
imposed by Section 3201 of this title. The provisions of Section 240
of Title 68 of the Oklahoma Statutes apply to the provisions of the
documentary stamp tax act.
Laws 1967, c. 259, § 5; Laws 1971, c. 315, § 5, operative July 1,
1971. Renumbered from § 5105 by Laws 1988, c. 162, § 160, eff. Jan.
1, 1992; Laws 1991, c. 338, § 5, eff. Jan. 1, 1992.
§68-3206. Violations - Punishments.
A. Any person who shall willfully fail to purchase and affix the
exact amount of stamps on any deed, instrument, or writing as
required under Section 3201 of this title shall, upon conviction, be
subject to a fine of not more than One Thousand Dollars ($1,000.00)
or to imprisonment of not more than one (1) year, or to both such
fine and imprisonment for such offense.
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B. The willful removal or alteration of the cancellation or
defacing marks with intent to use or cause the same to be used after
a documentary stamp has already been used shall, upon conviction,
subject the guilty person to a fine of not more than One Thousand
Dollars ($1,000.00) or to imprisonment of not more than one (1) year,
or to both such fine and imprisonment for such offense.
C. Proof of payment of the documentary stamp tax shall be the
exhibiting of the conveyance instrument showing the required stamps
have been affixed. The failure or refusal of any taxpayer to furnish
proof of payment of the documentary stamp tax, upon being so
requested to do so by the Oklahoma Tax Commission, within ninety (90)
days after being notified by registered or certified mail with return
receipt requested shall be prima facie evidence of intent of the
taxpayer to defraud the state and evade the payment of such tax. Any
taxpayer who intends to defraud the state or evade the payment of the
documentary stamp tax, fee, penalty or interest thereon pursuant to
the provisions of Section 217 of this title, shall be guilty of a
misdemeanor and, upon conviction, shall be punished by a fine of not
more than One Thousand Dollars ($1,000.00) for each offense.
D. Should the county clerk become aware that the provisions of
the documentary stamp law have or might have been violated, he or she
shall immediately report the facts to the Oklahoma Tax Commission.
Added by Laws 1967, c. 259, § 6. Amended by Laws 1971, c. 315, § 6,
operative July 1, 1971. Renumbered from Title 68, § 5106 by Laws
1988, c. 162, § 160, eff. Jan. 1, 1992. Amended by Laws 1991, c.
338, § 6, eff. Jan. 1, 1992.
§68-3301. Repealed by Laws 1991, c. 338, § 7, eff. Jan. 1, 1992.
§68-3401. Short title.
This act shall be known and may be cited as the "Uniform Federal
Lien Registration Act".
Added by Laws 1988, c. 132, § 1, eff. Nov. 1, 1988. Renumbered from §
24302.5 by Laws 1988, c. 162, § 162, eff. Jan. 1, 1992 and Laws 1991,
c. 249, § 2, eff. Jan. 1, 1992.
§68-3402. Applicability.
The Uniform Federal Lien Registration Act applies only to federal
tax liens and to other federal liens notices of which under any Act
of Congress or any regulation adopted pursuant thereto are required
or permitted to be filed in the same manner as notices of federal tax
liens.
Added by Laws 1988, c. 132, § 2, eff. Nov. 1, 1988. Renumbered from §
24302.6 by Laws 1988, c. 162, § 162, eff. Jan. 1, 1992 and Laws 1991,
c. 249, § 2, eff. Jan. 1, 1992.
§68-3403. Notices - Filing.
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A. Notices of liens, certificates, and other notices affecting
federal tax liens or other federal liens must be filed in accordance
with the Uniform Federal Lien Registration Act.
B. After any notice required by the Uniform Federal Lien
Registration Act to the owner of real property located in the State
of Oklahoma, notices of liens upon real property for obligations
payable to the United States and certificates and notices affecting
the liens shall be filed in the office of the county clerk of the
county in which the real property subject to the liens is situated.
C. Notices of federal liens upon personal property, whether
tangible or intangible, for obligations payable to the United States
and certificates and notices affecting the liens shall be filed as
follows:
1. If the person against whose interest the lien applies is a
corporation or a partnership whose principal executive office is in
this state, as these entities are defined in the internal revenue
laws of the United States, in the office of the county clerk of
Oklahoma County, Oklahoma;
2. If the person against whose interest the lien applies is a
trust that is not covered by paragraph 1 of this subsection, in the
office of the county clerk of Oklahoma County, Oklahoma;
3. If the person against whose interest the lien applies is the
estate of a decedent, in the office of the county clerk of Oklahoma
County, Oklahoma;
4. In all other cases, in the office of the county clerk of the
county where the person against whose interest the lien applies
resides at the time of filing of the notice of lien.
Added by Laws 1988, c. 132, § 3, eff. Nov. 1, 1988. Renumbered from §
24302.7 by Laws 1988, c. 162, § 162, eff. Jan. 1, 1992 and Laws 1991,
c. 249, § 2, eff. Jan. 1, 1992.
§68-3404. Certification by U.S. Secretary of Treasury and other
officials.
Certification of notices of liens, certificates, or other notices
affecting federal liens by the Secretary of the Treasury of the
United States or his delegate, or by any official or entity of the
United States responsible for filing or certifying of notice of any
other lien, entitles them to be filed and no other attestation,
certification, or acknowledgement is necessary.
Added by Laws 1988, c. 132, § 4, eff. Nov. 1, 1988. Renumbered from §
24302.8 by Laws 1988, c. 162, § 162, eff. Jan. 1, 1992 and Laws 1991,
c. 249, § 2, eff. Jan. 1, 1992.
§68-3405. Duties of filing officers - Filing certificate.
A. If a notice of federal lien, a refilling of a notice of
federal lien, or a notice of revocation of any certificate described
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in subsection B of this section is presented to a filing officer who
is:
1. The county clerk of Oklahoma County, the filing officer shall
cause the notice to be marked, held, and indexed in accordance with
the provisions of Article 9 of the Uniform Commercial Code as if the
notice were a financing statement within the meaning of the Uniform
Commercial Code; or
2. Any other officer described in Section 3403 of this title,
the filing officer shall endorse the notice and mark it with the date
and time of receipt and immediately file the notice alphabetically or
enter it in an alphabetical index showing the name and address of the
person named in the notice, the date and time of receipt, the title
and address of the official or entity certifying the lien, and the
total amount appearing on the notice of lien.
B. If a certificate of release, nonattachment, discharge, or
subordination of any lien is presented to the county clerk of
Oklahoma County for filing, the clerk shall:
1. Cause a certificate of release or nonattachment to be marked,
held, and indexed as if the certificate were a termination statement
within the meaning of the Uniform Commercial Code, but the notice of
lien to which the certificate relates may not be removed from the
files; and
2. Cause a certificate of discharge or subordination to be
marked, held, and indexed as if the certificate were a release of
collateral within the meaning of the Uniform Commercial Code.
C. If a refiled notice of federal lien referred to in subsection
A of this section or any of the certificates or notices referred to
in subsection B of this section is presented for filing to any other
filing officer specified in Section 3403 of this title, the clerk
shall permanently attach the refiled notice or the certificate to the
original notice of lien and enter the refiled notice or the
certificate with the date of filing in any alphabetical lien index on
the line where the original notice of lien is entered.
D. Upon request of any person, the filing officer shall issue a
certificate showing whether there is on file, on the date and hour
stated therein, any notice of lien or certificate or notice affecting
any lien filed under the Uniform Federal Lien Registration Act or the
Uniform Federal Tax Lien Registration Act, naming a particular
person, and if a notice or certificate is on file, giving the date
and hour of filing of each notice or certificate. The fee for a
certificate is One Dollar ($1.00). Upon request, the filing officer
shall furnish a copy of any notice of federal lien, or notice or
certificate affecting a federal lien, for a fee of One Dollar ($1.00)
per page.
Added by Laws 1988, c. 132, § 5, eff. Nov. 1, 1988. Renumbered from
Title 68, § 24302.9 by Laws 1988, c. 162, § 162, eff. Jan. 1, 1992
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and Laws 1991, c. 249, § 2, eff. Jan. 1, 1992. Amended by Laws 2000,
c. 371, § 180, eff. July 1, 2001.
§68-3406. Filing fee.
A. The fee for filing and indexing each notice of lien or
certificate of notice affecting the lien, including a lien on real
estate; a lien on tangible and intangible personal property; a
certificate of discharge or subordination; and all other notices,
including a certificate of release or nonattachment, shall be the
uniform filing fee provided by paragraphs (1) and (2) of subsection
(a) of Section 1-9-525 of Title 12A of the Oklahoma Statutes if the
notice of lien is first filed on or after July 1, 2001.
B. For notices of lien first filed prior to July 1, 2001, the
filing fee paid at the time of filing shall be payment for the
subsequent filing of all other certificates or notices affecting said
tax lien.
C. The filing officer shall bill the District Director of the
Internal Revenue Service or other appropriate federal officials on a
monthly basis for fees for documents filed by the Internal Revenue
Service.
Added by Laws 1988, c. 132, § 6, eff. Nov. 1, 1988. Amended by Laws
1990, c. 339, § 13, eff. Sept. 1, 1990. Renumbered from § 24302.10
of this title by Laws 1988, c. 162, § 162, eff. Jan. 1, 1992 and Laws
1991, c. 249, § 2, eff. Jan. 1, 1992. Amended by Laws 2001, c. 354,
§ 7, eff. July 1, 2001.
§68-3407. Construction and application of act.
The Uniform Federal Lien Registration Act shall be applied and
construed to effectuate its general purpose to make uniform the law
with respect to the subject of the Uniform Federal Lien Registration
Act among states enacting it.
Added by Laws 1988, c. 132, § 7, eff. Nov. 1, 1988. Renumbered from §
24302.11 by Laws 1988, c. 162, § 162, eff. Jan. 1, 1992 and Laws
1991, c. 249, § 2, eff. Jan. 1, 1992.
§68-3501. Short title.
This act shall be known and may be cited as the "Oklahoma Federal
Facilities Development Act".
Added by Laws 1993, c. 1, § 1, emerg. eff. Feb. 8, 1993.
§68-3502. Findings and intent of Legislature.
A. It is the finding of the Legislature that there exists in
this state a continuing need for programs to assist political
subdivisions in attracting federal facility development and
consequent job creation and ancillary economic growth within this
state. In order to achieve these essential public purposes, it is
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necessary to assist and encourage political subdivisions to develop
facilities for use by the federal government.
B. It is the intent of the Legislature that:
1. The State of Oklahoma provide appropriate incentives to
assist political subdivisions of this state in attracting qualified
federal facilities that hold the promise of significant development
of the economy of the State of Oklahoma;
2. The amount of such incentives provided in connection with a
particular federal facility:
a. be directly related to the jobs created as a result of
the facility locating in the State of Oklahoma, and
b. not exceed the estimated net direct state benefits that
will accrue to the state as a result of the facility
locating in the State of Oklahoma;
3. The Oklahoma Department of Commerce and the Oklahoma Tax
Commission implement the provisions of this act and exercise all
powers as authorized in this act. The exercise of powers conferred
by this act shall be deemed and held to be the performance of
essential public purposes; and
4. Nothing herein shall be construed to constitute a guarantee
or assumption by the State of Oklahoma of any debt of a political
subdivision nor to authorize the credit of the State of Oklahoma to
be given, pledged or loaned to any political subdivision.
Added by Laws 1993, c. 1, § 2, emerg. eff. Feb. 8, 1993.
§68-3503. Definitions.
As used in this act:
1. "Qualified federal facility" means a facility developed after
March 1, 1993, by or at the expense of a political subdivision of
this state and leased or conveyed to the government of the United
States which primarily houses federal employees; provided, the annual
gross payroll for new direct jobs of a qualified federal facility
must be projected by the Department of Commerce as having the
potential to equal or exceed Fifty Million Dollars ($50,000,000.00)
when the facility is fully operational;
2. "New direct job" means full-time-equivalent employment in a
qualified federal facility which did not exist in this state prior to
the date of approval by the Department of Commerce of the application
of the political subdivision for the qualified federal facility
pursuant to the provisions of Section 4 of this act;
3. "Estimated direct state benefits" means the tax revenues
projected by the Department of Commerce to accrue to the state as a
result of new direct jobs;
4. "Estimated direct state costs" means the costs projected by
the Department of Commerce to accrue to the state as a result of new
direct jobs. Such costs shall include but not be limited to:
a. the costs of education of new state resident children,
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b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to new
state residents,
d. the costs of employee training and other state
services, and
e. the costs of physical infrastructure needed to support
the facility;
5. "Estimated net direct state benefits" means the estimated
direct state benefits less the estimated direct state costs;
6. "Net benefit rate" means the estimated net direct state
benefits computed as a percentage of gross payroll; provided, the net
benefit rate shall not exceed the lesser of five and one-fourth
percent (5.25%) or the minimum rate deemed by the Department of
Commerce to be necessary to result in an incentive payment at a level
which will enable the political subdivision to attract the qualified
federal facility;
7. "Political subdivision" means a municipality, a county or a
public trust, the beneficiary or beneficiaries of which are a
municipality, a county or the State of Oklahoma or a combination
thereof;
8. "Gross payroll" means wages for new direct jobs as defined in
paragraph (e) of Section 2385.1 of Title 68 of the Oklahoma Statutes;
9. "Project term" means the length of time a political
subdivision may receive incentive payments pursuant to the provisions
of this act; provided, the project term shall not exceed twenty (20)
years from the date of the first incentive payment;
10. "Total net benefit" means the net benefit rate multiplied by
the gross payroll over the project term as estimated by the
Department of Commerce pursuant to the provisions of subsection C of
Section 4 of this act; and
11. "Develop" means acquire, maintain, construct, improve,
enlarge, renew, renovate, replace, lease, equip, furnish or operate.
Added by Laws 1993, c. 1, § 3, emerg. eff. Feb. 8, 1993.
§68-3504. Incentive payments - Amount - Application - Qualifications
- Approval - Notice - Additional information.
A. A political subdivision may receive quarterly incentive
payments from the Oklahoma Tax Commission pursuant to the provisions
of this act in an amount which shall be equal to the net benefit rate
multiplied by the actual gross payroll of new direct jobs for a
calendar quarter; provided, the total amount of such payments shall
not exceed the total net benefit.
B. In order to receive incentive payments pursuant to the
provisions of this act, a political subdivision shall apply to the
Oklahoma Department of Commerce. The application shall be on a form
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prescribed by the Department and shall contain such information as
may be required by the Department.
C. The Department shall determine if the applicant is qualified
to receive incentive payments pursuant to the provisions of this act
and if so, conduct a cost/benefit analysis to determine the estimated
net direct state benefits and the net benefit rate and to estimate
the amount of gross payroll for the project term. In conducting such
cost/benefit analysis, the Department shall consider quantitative
factors, such as the anticipated level of new tax revenues to the
state along with the added cost to the state of providing services,
qualitative factors, and such other criteria as deemed appropriate by
the Department.
D. Upon approval of such an application, the Department shall
notify the Oklahoma Tax Commission and shall provide the Commission
with a copy of the application and the results of the cost/benefit
analysis. The Tax Commission may require the political subdivision
or the qualified federal facility to submit such additional
information as may be necessary to administer the provisions of this
act.
Added by Laws 1993, c. 1, § 4, emerg. eff. Feb. 8, 1993.
§68-3505. Incentive payments - Funding source.
In order to ensure the availability of funds for incentive
payments authorized pursuant to the provisions of this act, the
Oklahoma Tax Commission shall transfer such amounts as determined by
multiplying the net benefit rate provided by the Department of
Commerce by the gross payroll as determined pursuant to the
provisions of subsection A of Section 6 of this act. Such funds
shall be transferred from current withholding tax collections into an
agency special account designated for this purpose by the Oklahoma
Tax Commission at such times as may be deemed necessary by the Tax
Commission.
Added by Laws 1993, c. 1, § 5, emerg. eff. Feb. 8, 1993.
§68-3506. Incentive payments - Claims - Verification - Issuance of
warrants.
A. As soon as practicable after the end of a calendar quarter
for which a political subdivision has qualified to receive an
incentive payment, the political subdivision shall file a claim for
the payment with the Oklahoma Tax Commission and shall specify the
actual number and gross payroll of new direct jobs for the calendar
quarter. The Commission shall verify the actual gross payroll for
new direct jobs for such calendar quarter. If the Tax Commission is
not able to provide such verification, the Tax Commission may request
such additional information from the political subdivision as may be
necessary or may request the political subdivision to revise its
claim.
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B. As soon as practicable after such verification, the Tax
Commission shall issue a warrant to the political subdivision in the
amount of the net benefit rate multiplied by the actual gross payroll
as verified by the Commission for the calendar quarter.
Added by Laws 1993, c. 1, § 6, emerg. eff. Feb. 8, 1993.
§68-3507. Incentive payments - Deposit - Use - Investment - Audits -
Unused assets.
A. A political subdivision receiving an incentive payment
pursuant to the provisions of this act shall deposit such payment in
a separate fund and shall not be permitted to use such monies for any
purpose other than payment of expenses associated with a qualified
federal facility.
A political subdivision shall be permitted to invest the monies
accruing to such fund in such manner as is authorized by law for
investment of other monies of the political subdivision; provided,
the interest earned from such investments shall be deposited to the
fund and shall be used solely for payment of expenses associated with
a qualified federal facility.
B. A political subdivision receiving an incentive payment
pursuant to the provisions of this act shall annually cause an
independent financial audit of such fund to be made and shall submit
such audit to the Department of Commerce, the Oklahoma Tax
Commission, and the State Auditor and Inspector. The State Auditor
and Inspector shall review such audit and report his findings to the
Governor, the President Pro Tempore of the Senate and the Speaker of
the House of Representatives.
C. At the end of the project term or at the end of the period of
time for which the qualified federal facility is leased or conveyed
to the government of the United States, whichever is later, any
assets of the qualified federal facility owned by the political
subdivision, including, but not limited to any property or any monies
remaining in the fund created pursuant to the provisions of
subsection A of this section, shall be disposed of between the
political subdivision and the state according to the proportions of
funding provided by the state through incentive payments authorized
by this act and funding provided by the political subdivision.
Added by Laws 1993, c. 1, § 7, emerg. eff. Feb. 8, 1993.
§68-3508. Promulgation of rules.
The Department of Commerce and the Tax Commission shall
promulgate such rules as may be necessary to implement the provisions
of this act.
Added by Laws 1993, c. 1, § 8, emerg. eff. Feb. 8, 1993.
§68-3600. Repealed by Laws 2002, c. 112, § 4, eff. Dec. 31, 2002.
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§68-3601. Short title.
Section 3601 et seq. of this title shall be known and may be
cited as the "Oklahoma Quality Jobs Program Act".
Added by Laws 1993, c. 275, § 1, eff. July 1, 1993. Amended by Laws
1994, c. 7, § 1, emerg. eff. March 29, 1994.
§68-3602. Legislative intent.
It is the intent of the Legislature that:
1. The State of Oklahoma provide appropriate incentives to
support establishments of basic industries that hold the promise of
significant development of the economy of the State of Oklahoma;
2. The amount of incentives provided pursuant to this act in
connection with a particular establishment:
a. be directly related to the jobs created as a result of
the establishment locating in the State of Oklahoma,
and
b. not exceed the estimated net direct state benefits that
will accrue to the state as a result of the
establishment locating in the State of Oklahoma;
3. The Oklahoma Department of Commerce and the Oklahoma Tax
Commission implement the provisions of this act and exercise all
powers as authorized in this act. The exercise of powers conferred
by this act shall be deemed and held to be the performance of
essential public purposes; and
4. Nothing herein shall be construed to constitute a guarantee
or assumption by the State of Oklahoma of any debt of any individual,
company, corporation or association nor to authorize the credit of
the State of Oklahoma to be given, pledged or loaned to any
individual, company, corporation or association.
Added by Laws 1993, c. 275, § 2, eff. July 1, 1993.
§68-3603. Definitions.
A. As used in the Oklahoma Quality Jobs Program Act:
1. a. "Basic industry" means:
(1) those manufacturing activities defined or
classified in the NAICS Manual under Industry
Sector Nos. 31, 32 and 33, Industry Group No. 5111
or Industry No. 11331,
(2) those electric power generation, transmission and
distribution activities defined or classified in
the NAICS Manual under U.S. Industry Nos. 221111
through 221122, if:
(a) an establishment engaged therein qualifies as
an exempt wholesale generator as defined by
15 U.S.C., Section 79z-5a,
(b) the exempt wholesale generator facility
consumes from sources located within the
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state at least ninety percent (90%) of the
total energy used to produce the electrical
output which qualifies for the specialized
treatment provided by the Energy Policy Act
of 1992, P.L. 102-486, 106 Stat. 2776, as
amended, and federal regulations adopted
pursuant thereto,
(c) the exempt wholesale generator facility sells
to purchasers located outside the state for
consumption in activities located outside the
state at least ninety percent (90%) of the
total electrical energy output which
qualifies for the specialized treatment
provided by the Energy Policy Act of 1992,
P.L. 102-486, 106 Stat. 2776, as amended, and
federal regulations adopted pursuant thereto,
and
(d) the facility is constructed on or after July
1, 1996,
(3) those administrative and facilities support
service activities defined or classified in the
NAICS Manual under Industry Group Nos. 5611 and
5612, Industry Nos. 51821, 519130, 52232 and 56142
or U.S. Industry Nos. 524291 and 551114, those
other support activities for air transportation
defined or classified in the NAICS Manual under
Industry Group No. 488190, and those support,
repair, and maintenance service activities for the
wind industry defined or classified in the NAICS
Manual under Industry Group No. 811310,
(4) those professional, scientific and technical
service activities defined or classified in the
NAICS Manual under U.S. Industry Nos. 541710 and
541380,
(5) distribution centers for retail or wholesale
businesses defined or classified in the NAICS
Manual under Sector No. 42, if forty percent (40%)
or more of the inventory processed through such
warehouse is shipped out-of-state,
(6) those adjustment and collection service activities
defined or classified in the NAICS Manual under
U.S. Industry No. 561440, if seventy-five percent
(75%) of the loans to be serviced were made by
out-of-state debtors,
(7) (a) those air transportation activities defined
or classified in the NAICS Manual under
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Industry Group No. 4811, if the following
facilities are located in this state:
(i) the corporate headquarters of an
establishment classified therein, and
(ii) a facility or facilities at which
reservations for transportation provided
by such an establishment are processed,
whether such services are performed by
employees of the establishment, by
employees of a subsidiary of or other
entity affiliated with the establishment
or by employees of an entity with whom
the establishment has contracted for the
performance of such services; provided,
this provision shall not disqualify an
establishment which uses an out-of-state
entity or employees for some
reservations services, or
(b) those air transportation activities defined
or classified in the NAICS Manual under
Industry Group No. 4811, if an establishment
classified therein has or will have within
one (1) year sales of at least seventy-five
percent (75%) of its total sales, as
determined by the Incentive Approval
Committee pursuant to the provisions of
subsection B of this section, to out-of-state
customers or buyers, to in-state customers or
buyers if the product or service is resold by
the purchaser to an out-of-state customer or
buyer for ultimate use, or to the federal
government,
(8) flight training services activities defined or
classified in the NAICS Manual under U.S. Industry
Group No. 611512, which for purposes of the
Oklahoma Quality Jobs Program Act shall include
new direct jobs for which gross payroll existed on
or after January 1, 2003, as identified in the
NAICS Manual,
(9) the following, if an establishment classified
therein has or will have within one (1) year sales
of at least seventy-five percent (75%) of its
total sales, as determined by the Incentive
Approval Committee pursuant to the provisions of
subsection B of this section, to out-of-state
customers or buyers, to in-state customers or
buyers if the product or service is resold by the
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purchaser to an out-of-state customer or buyer for
ultimate use, or to the federal government:
(a) those transportation and warehousing
activities defined or classified in the NAICS
Manual under Industry Subsector No. 493, if
not otherwise listed in this paragraph,
Industry Subsector Nos. 482 and 484 and
Industry Group Nos. 4884 through 4889,
(b) those passenger transportation activities
defined or classified in the NAICS Manual
under Industry Nos. 561510 and 561599,
(c) those freight or cargo transportation
activities defined or classified in the NAICS
Manual under Industry No. 541614,
(d) those insurance activities defined or
classified in the NAICS Manual under Industry
Group No. 5241,
(e) those services to dwellings and other
buildings, as defined or classified in the
NAICS Manual under Industry Group No. 5617,
excluding U.S. Industry Nos. 561730, 56171,
56172, 56174 and 56179,
(f) those equipment rental and leasing activities
defined or classified in the NAICS Manual
under Industry Group No. 5324,
(g) those information technology and other
computer-related service activities defined
or classified in the NAICS Manual under
Industry Group Nos. 5112, 5182, 5191 and
5415,
(h) those business support service activities
defined or classified in the NAICS Manual
under U.S. Industry Nos. 561410 through
561430, excluding 56143, and Industry No.
51911,
(i) those medical and diagnostic laboratory
activities defined or classified in the NAICS
Manual under Industry Group No. 6215,
(j) those professional, scientific and technical
service activities defined or classified in
the NAICS Manual under Industry Group Nos.
5412, 5414, 5415, 5416 and 5417, Industry
Nos. 54131, 54133, 54136 and 54137, and U.S.
Industry No. 541990, if not otherwise listed
in this paragraph,
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(k) those communication service activities
defined or classified in the NAICS Manual
under Industry Nos. 51741 and 51791,
(l) those refuse systems activities defined or
classified in the NAICS Manual under Industry
Group No. 5622, provided that the
establishment is primarily engaged in the
capture and distribution of methane gas
produced within a landfill,
(m) general wholesale distribution of groceries,
defined or classified in the NAICS Manual
under Industry Group Nos. 4244 and 4245,
(n) those activities relating to processing of
insurance claims, defined or classified in
the NAICS Manual under U.S. Industry Nos.
524210 and 524292; provided, activities
described in U.S. Industry Nos. 524210 and
524292 in the NAICS Manual other than
processing of insurance claims shall not be
included for purposes of this subdivision,
(o) those agricultural activities classified in
the NAICS Manual under U.S. Industry Nos.
112120 and 112310,
(p) those professional organization activities
classified in the NAICS Manual under U.S.
Industry No. 813920,
(q) alternative energy structure construction
classified in the NAICS Manual under U.S.
Industry No. 237130,
(r) solar reflective coating application
classified in the NAICS Manual under U.S.
Industry No. 238160,
(s) solar heating equipment installation
classified in the NAICS Manual under U.S.
Industry No. 238220,
(t) those wired telecommunications carriers
classified in the NAICS Manual under U.S.
Industry No. 517110, and
(u) those securities, commodity contracts and
investment activities classified in the NAICS
Manual under Industry Subsector No. 523,
(10) those activities related to extraction or pipeline
transportation of petroleum, natural gas or
refined petroleum products, defined or classified
in the NAICS Manual under Industry Group No. 2111,
213111, 213112 or 486, subject to the limitations
9)!&#!%!%%"'%)6! !2!(# 7!8;1
provided in paragraph 3 of this subsection and
paragraph 3 of subsection B of this section,
(11) those activities performed by the federal civilian
workforce at a facility of the Federal Aviation
Administration located in this state if the
Director of the Oklahoma Department of Commerce
determines or is notified that the federal
government is soliciting proposals or otherwise
inviting states to compete for additional federal
civilian employment or expansion of federal
civilian employment at such facilities,
(12) those activities defined or classified in the
NAICS Manual under U.S. Industry No. 711211 (2007
version),
(13) those real estate or brokerage activities
classified in the NAICS Manual under U.S. Industry
No. 53120 for which at least seventy-five percent
(75%) of the establishment's revenues are
attributed to out-of-state sales and at least
seventy-five percent (75%) of the real estate
transactions generating those revenues are
attributed to real property located outside the
State of Oklahoma, or
(14) those support activities for rail transportation
and those support activities for water
transportation defined or classified in the NAICS
Manual under U.S. Industry Nos. 4882 and 4883.
b. An establishment described in subparagraph a of this
paragraph shall not be considered to be engaged in a
basic industry unless it offers, or will offer within
one hundred eighty (180) days of employment, a basic
health benefits plan to the individuals it employs in
new direct jobs in this state which is determined by
the Oklahoma Department of Commerce to consist of the
following elements or elements substantially equivalent
thereto:
(1) not more than fifty percent (50%) of the premium
shall be paid by the employee,
(2) coverage for basic hospital care,
(3) coverage for physician care,
(4) coverage for mental health care,
(5) coverage for substance abuse treatment,
(6) coverage for prescription drugs, and
(7) coverage for prenatal care;
2. "Change-in-control event" means the transfer to one or more
unrelated establishments or unrelated persons, of either:
9)!&#!%!%%"'%)6! !2!(# 7!8;
a. beneficial ownership of more than fifty percent (50%)
in value and more than fifty percent (50%) in voting
power of the outstanding equity securities of the
transferred establishment, or
b. more than fifty percent (50%) in value of the assets of
an establishment.
A transferor shall be treated as related to a transferee if more
than fifty percent (50%) of the voting interests of the transferor
and transferee are owned, directly or indirectly, by the other or are
owned, directly or indirectly, by the same person or persons, unless
such transferred establishment has an outstanding class of equity
securities registered under Sections 12(b) or 15(d) of the Securities
Exchange Act of 1934, as amended, in which event the transferor and
transferee will be treated as unrelated; provided, an establishment
applying for the Oklahoma Quality Jobs Program Act as a result of a
change-in-control event is required to apply within one hundred
eighty (180) days of the change-in-control event to qualify for
consideration. An establishment entering the Oklahoma Quality Jobs
Program Act as the result of a change-in-control event shall be
required to maintain a level of new direct jobs as agreed to in its
contract with the Oklahoma Department of Commerce and to pay new
direct jobs an average annualized wage which equals or exceeds one
hundred twenty-five percent (125%) of the average county wage as that
percentage is determined by the Oklahoma Department of Commerce based
upon the most recent U.S. Department of Commerce data for the county
in which the new jobs are located. For purposes of this paragraph,
healthcare premiums paid by the applicant for individuals in new
direct jobs shall not be included in the annualized wage. Such
establishment entering the Oklahoma Quality Jobs Program Act as the
result of a change-in-control event shall be required to retain the
contracted average annualized wage and maintain the contracted
maintenance level of new direct jobs numbers as certified by the Tax
Commission. If the required average annualized wage or the required
new direct jobs numbers do not equal or exceed such contracted level
during any quarter, the quarterly incentive payments shall not be
made and shall not be resumed until such time as such requirements
are met. An establishment described in this paragraph shall be
required to repay all incentive payments received under the Oklahoma
Quality Jobs Program Act if the establishment is determined by the
Tax Commission to no longer have business operations in the state
within three (3) years from the beginning of the calendar quarter for
which the first incentive payment claim is filed;
3. "New direct job":
a. means full-time-equivalent employment in this state in
an establishment which has qualified to receive an
incentive payment pursuant to the provisions of the
Oklahoma Quality Jobs Program Act which employment did
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not exist in this state prior to the date of approval
by the Department of the application of the
establishment pursuant to the provisions of Section
3604 of this title and with respect to an establishment
qualifying for incentive payments pursuant to division
(12) of subparagraph a of paragraph 1 of this
subsection shall not include compensation paid to an
employee or independent contractor for an athletic
contest conducted in the state if the compensation is
paid by an entity that does not have its principal
place of business in the state or that does not own
real or personal property having a market value of at
least One Million Dollars ($1,000,000.00) located in
the state, and the employees or independent contractors
of such entity are compensated to compete against the
employees or independent contractors of an
establishment that qualifies for incentive payments
pursuant to division (12) of subparagraph a of
paragraph 1 of this subsection and which is organized
under Oklahoma law or that is lawfully registered to do
business in the state and which does have its principal
place of business located in the state and owns real or
personal property having a market value of at least One
Million Dollars ($1,000,000.00) located in the state;
provided, that if an application of an establishment is
approved by the Oklahoma Department of Commerce after a
change-in-control event and the Director of the
Oklahoma Department of Commerce determines that the
jobs located at such establishment are likely to leave
the state, "new direct job" shall include employment
that existed in this state prior to the date of
application which is retained in this state by the new
establishment following a change in control event, if
such job otherwise qualifies as a new direct job, and
b. shall include full-time-equivalent employment in this
state of employees who are employed by an employment
agency or similar entity other than the establishment
which has qualified to receive an incentive payment and
who are leased or otherwise provided under contract to
the qualified establishment, if such job did not exist
in this state prior to the date of approval by the
Department of the application of the establishment or
the job otherwise qualifies as a new direct job
following a change-in-control event. A job shall be
deemed to exist in this state prior to approval of an
application if the activities and functions for which
the particular job exists have been ongoing at any time
9)!&#!%!%%"'%)6! !2!(# 7!8;
within six (6) months prior to such approval. With
respect to establishments defined in division (10) of
subparagraph a of paragraph 1 of this subsection, new
direct jobs shall be limited to those jobs directly
comprising the corporate headquarters of or directly
relating to manufacturing, maintenance, administrative,
financial, engineering, surveying, geological or
geophysical services performed by the establishment.
Under no circumstances shall employment relating to
field services be considered new direct jobs;
4. "Estimated direct state benefits" means the tax revenues
projected by the Department to accrue to the state as a result of new
direct jobs;
5. "Estimated direct state costs" means the costs projected by
the Department to accrue to the state as a result of new direct jobs.
Such costs shall include, but not be limited to:
a. the costs of education of new state resident children,
b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to new
state residents, and
d. the costs of other state services;
6. "Estimated net direct state benefits" means the estimated
direct state benefits less the estimated direct state costs;
7. "Net benefit rate" means the estimated net direct state
benefits computed as a percentage of gross payroll; provided:
a. except as otherwise provided in this paragraph, the net
benefit rate may be variable and shall not exceed five
percent (5%),
b. the net benefit rate shall not exceed six percent (6%)
in connection with an establishment which is owned and
operated by an entity which has been awarded a United
States Department of Defense contract for which:
(1) bids were solicited and accepted by the United
States Department of Defense from facilities
located outside this state,
(2) the term is or is renewable for not less than
twenty (20) years, and
(3) the average annual salary, excluding benefits
which are not subject to Oklahoma income taxes,
for new direct jobs created as a direct result of
the awarding of the contract is projected by the
Oklahoma Department of Commerce to equal or exceed
Forty Thousand Dollars ($40,000.00) within three
(3) years of the date of the first incentive
payment,
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c. except as otherwise provided in subparagraph d of this
paragraph, in no event shall incentive payments,
cumulatively, exceed the estimated net direct state
benefits,
d. the net benefit rate shall be five percent (5%) for an
establishment locating:
(1) in an opportunity zone located in a high-
employment county, as such terms are defined in
subsection G of Section 3604 of this title, or
(2) in a county in which:
(a) the per capita personal income, as determined
by the Department, is eighty-five percent
(85%) or less of the statewide average per
capita personal income,
(b) the population has decreased over the
previous ten (10) years, as determined by the
Oklahoma Department of Commerce based on the
most recent U.S. Department of Commerce data,
or
(c) the unemployment rate exceeds the lesser of
five percent (5%) or two percentage points
above the state average unemployment rate as
certified by the Oklahoma Employment Security
Commission,
e. the net benefit rate shall not exceed six percent (6%)
in connection with an establishment which:
(1) is, as of the date of application, receiving
incentive payments pursuant to the Oklahoma
Quality Jobs Program Act and has been receiving
such payments for at least one (1) year prior to
the date of application, and
(2) expands its operations in this state by creating
additional new direct jobs which pay average
annualized wages which equal or exceed one hundred
fifty percent (150%) of the average annualized
wages of new direct jobs on which incentive
payments were received during the preceding
calendar year,
f. with respect to an establishment defined or classified
in the NAICS Manual under U.S. Industry No. 711211
(2007 version) or any establishment defined or
classified in the NAICS Manual as a U.S. Industry
Number which is not included within the definition of
"basic industry" as such term is defined in this
section on April 17, 2008, the net benefit rate shall
not exceed the highest rate of income tax imposed upon
the Oklahoma taxable income of individuals pursuant to
9)!&#!%!%%"'%)6! !2!(# 7!8;-
subparagraph (g) or subparagraph (h), as applicable, of
paragraph 1 and paragraph 2 of subsection B of Section
2355 of this title. Any change in such highest rate of
individual income tax imposed pursuant to the
provisions of Section 2355 of this title shall be
applicable to the computation of incentive payments to
an establishment as described by this subparagraph and
shall be effective for purposes of incentive payments
based on payroll paid by such establishment on or after
January 1 of any applicable year for which the net
benefit rate is modified as required by this
subparagraph, and
g. the net benefit rate shall not exceed six percent (6%)
in connection with an establishment which employs
United States military veterans in at least ten percent
(10%) of its gross payroll. The net benefit rate for
an establishment which employs United States military
veterans in at least ten percent (10%) of its payroll
shall not be lower than five percent (5%).
Incentive payments made pursuant to the provisions of this
subparagraph shall be based upon payroll associated with such new
direct jobs. For purposes of this subparagraph, the amount of health
insurance premiums or other benefits paid by the establishment shall
not be included for purposes of computation of the average annualized
wage;
8. "Gross payroll" means wages, as defined in Section 2385.1 of
this title for new direct jobs;
9. a. "Establishment" means any business or governmental
entity, no matter what legal form, including, but not
limited to, a sole proprietorship; partnership; limited
liability company; corporation or combination of
corporations which have a central parent corporation
which makes corporate management decisions such as
those involving consolidation, acquisition, merger or
expansion; federal agency; political subdivision of the
State of Oklahoma; or trust authority; provided,
distinct, identifiable subunits of such entities may be
determined to be an establishment, for all purposes of
the Oklahoma Quality Jobs Program Act, by the
Department subject to the following conditions:
(1) within three (3) years of the first complete
calendar quarter following the start date, the
entity must have a minimum payroll of Two Million
Five Hundred Thousand Dollars ($2,500,000.00) and
the subunit must also have or will have a minimum
payroll of Two Million Five Hundred Thousand
Dollars ($2,500,000.00),
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(2) the subunit is engaged in an activity or service
or produces a product which is demonstratively
independent and separate from the entity's other
activities, services or products and could be
conducted or produced in the absence of any other
activity, service or production of the entity,
(3) has an accounting system capable of tracking or
facilitating an audit of the subunit's payroll,
expenses, revenue and production. Limited
interunit overlap of administrative and purchasing
functions shall not disqualify a subunit from
consideration as an establishment by the
Department,
(4) the entity has not previously had a subunit
determined to be an establishment pursuant to this
section; provided, the restriction set forth in
this division shall not apply to subunits which
qualify pursuant to the provisions of subparagraph
b of paragraph 7 of this subsection, and
(5) it is determined by the Department that the entity
will have a probable net gain in total employment
within the incentive period.
b. The Department may promulgate rules to further limit
the circumstances under which a subunit may be
considered an establishment. The Department shall
promulgate rules to determine whether a subunit of an
entity achieves a net gain in total employment. The
Department shall establish criteria for determining the
period of time within which such gain must be
demonstrated and a method for determining net gain in
total employment;
10. "NAICS Manual" means any manual, book or other publication
containing the North American Industry Classification System, United
States, 1997, promulgated by the Office of Management and Budget of
the United States of America, or the latest revised edition;
11. "Qualified federal contract" means a contract between an
agency or instrumentality of the United States government, including
but not limited to the Department of Defense or any branch of the
United States Armed Forces, but exclusive of any contract performed
for the Federal Emergency Management Agency as a direct result of a
natural disaster declared by the Governor or the President of the
United States with respect to damage to property located in Oklahoma
or loss of life or personal injury to persons in Oklahoma, and a
lawfully recognized business entity, whether or not the business
entity is organized under the laws of the State of Oklahoma or
whether or not the principal place of business of the business entity
is located within the State of Oklahoma, for the performance of
9)!&#!%!%%"'%)6! !2!(# 7!8;;
services, including but not limited to testing, research,
development, consulting or other services in a basic industry, if the
contract involves the performance of such services performed on or
after July 1, 2009, by the employees of the business entity within
the State of Oklahoma or if the contract involves the performance of
such services performed on or after July 1, 2009, by employees of a
lawfully recognized business entity that is a subcontractor of the
business entity with which the prime contract has been formed. A
qualified federal contract described in this paragraph shall not
qualify unless both the qualified federal contractor and any
subcontractors originally involved in the work or added subsequently
during the period of performance verify to the qualified federal
contractor verifier that it offers, or will offer within one hundred
eighty (180) days of employment of its respective employees, a basic
health benefits plan as described in subparagraph b of paragraph 1 of
this subsection to individuals who perform qualified labor hours in
this state;
12. "Qualified federal contractor verifier" means a nonprofit
entity organized under the laws of the State of Oklahoma, having an
affiliation with a comprehensive university which is part of The
Oklahoma State System of Higher Education, and having the following
characteristics:
a. established multiyear classified and unclassified
indefinite-delivery/indefinite-quantity federal
contract vehicles in excess of Fifty Million Dollars
($50,000,000.00),
b. current capability to sponsor and maintain personnel
security clearances and authorized by the federal
government to handle and perform classified work up to
the Top Secret Sensitive Compartmented Information
levels,
c. at least one on-site federally certified Sensitive
Compartmented Information Facility,
d. on-site secure mass data storage complex with the
capability of isolating, segregating and protecting
corporate proprietary and classified information,
e. trusted agent status by maintaining no ownership of,
vested interest in, nor royalty production from any
intellectual property,
f. at least one hundred thousand (100,000) square feet of
configurable laboratory and support space,
g. the direct access to restricted air space through a
formalized memorandum of agreement with the Department
of Defense,
h. at least five thousand (5,000) acres available for
outdoor testing and training facilities, and
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i. the ability to house state-of-the-art surety
facilities, including chemical, biological,
radiological, explosives, electronics, and unmanned
systems laboratories and ranges;
13. "SIC Manual" means the 1987 revision to the Standard
Industrial Classification Manual, promulgated by the Office of
Management and Budget of the United States of America;
14. "Start date" means the date on which an establishment may
begin accruing benefits for the creation of new direct jobs, which
date shall be determined by the Department;
15. "Effective date" means the date of approval of a contract
under which incentive payments will be made pursuant to the Oklahoma
Quality Jobs Program Act, which shall be the date the signed and
accepted incentive contract is received by the Department; provided,
an approved project may have a start date which is different from the
effective date;
16. "Total qualified labor hours" means the reimbursed payment
amount for hours of work performed by the State of Oklahoma workforce
of a qualified federal contractor or the State of Oklahoma workforce
of a subcontractor of a qualified federal contractor and which are
required for the full performance of a qualified federal contract;
17. "Qualified labor rate" means the fully reimbursed labor rate
paid through a qualified federal contract for qualified labor hours
to the qualified federal contractor or subcontractor;
18. "Qualified federal contractor" means a business entity:
a. maintaining a prime contract with the federal
government as defined in paragraph 11 of this
subsection,
b. providing notice of intent to apply to the Department
within one hundred eighty (180) days of July 1, 2010,
or one hundred eighty (180) days of the date of the
award of a qualified federal contract or award of a new
qualified subcontract under an existing qualified
federal contract, and
c. adding substantively to the contract by performing at
least eight percent (8%) of the total labor whether
qualified and nonqualified labor as determined by the
federal contractor verifier on a direct contract or
individual task order or delivery order on an
indefinite-delivery/indefinite-quantity or other
blanket contract vehicle.
Should a prime contractor provide notice to the Department of its
intent not to apply for incentive for a qualified federal contract or
fails to qualify under the criteria above, subcontractors in order of
tier ranking as determined by the federal contract verifier may
assume the role of the prime and apply to become a qualified federal
contractor provided the entity meets the same criteria above with the
9)!&#!%!%%"'%)6! !2!(# 7!8;,
exception that notice of intent to apply with the Department must be
provided within sixty (60) days of the prime's disqualification or
one hundred eighty (180) days of the award of its subcontract,
whichever is later; and
19. "Proxy establishment" means a public trust which:
a. is organized and existing under Section 176 of Title 60
of the Oklahoma Statutes for the benefit of a
geographic area which includes a city or county or some
combination thereof, and
b. benefits a geographic area where new direct jobs which
meet the requirements of the Oklahoma Quality Jobs
Program Act are created by an establishment, other than
the proxy establishment, which is a branch of the Armed
Forces of the United States.
A proxy establishment may be determined to be an establishment
for all purposes of the Oklahoma Quality Jobs Program Act by the
Department and incentive payments may be made to such proxy
establishment for new direct jobs otherwise qualified pursuant to the
Oklahoma Quality Jobs Program Act. The Department may promulgate
rules to further specify the circumstances under which a proxy
establishment may be considered an establishment for the purposes of
making application for incentive payments pursuant to the Oklahoma
Quality Jobs Program Act. Provided however, that with respect to any
data on qualifying direct new jobs from a branch of the Armed Forces
of the United States, such rules shall only require a proxy
establishment to provide such data as would otherwise be publicly
releasable by the branch of the Armed Forces of the United States.
B. The Incentive Approval Committee is hereby created and shall
consist of the Director of the Office of Management and Enterprise
Services, the Director of the Department and one member of the
Oklahoma Tax Commission appointed by the Tax Commission, or a
designee from each agency approved by such member. It shall be the
duty of the Committee to determine the eligibility of all applicants
for the Oklahoma Quality Jobs Program Act, subject to the applicable
requirements.
C. For an establishment defined as a "basic industry" pursuant
to division (4) of subparagraph a of paragraph 1 of subsection A of
this section, the Incentive Approval Committee shall consist of the
members provided by subsection B of this section and the Executive
Director of the Oklahoma Center for the Advancement of Science and
Technology, or a designee from the Center appointed by the Executive
Director.
Added by Laws 1993, c. 275, § 3, eff. July 1, 1993. Amended by Laws
1994, c. 7, § 2, emerg. eff. March 29, 1994; Laws 1994, c. 322, § 22,
emerg. eff. June 8, 1994; Laws 1995, c. 349, § 1, eff. July 1, 1995;
Laws 1996, c. 3, § 16, emerg. eff. March 6, 1996; Laws 1996, c. 73, §
1, emerg. eff. April 9, 1996; Laws 1996, c. 342, § 5, eff. July 1,
9)!&#!%!%%"'%)6! !2!(# 7!81
1996; Laws 1997, c. 258, § 1, emerg. eff. May 23, 1997; Laws 1998, c.
379, § 1, eff. July 1, 1998; Laws 1999, c. 134, § 2, emerg. eff.
April 28, 1999; Laws 1999, c. 426, § 3, emerg. eff. June 10, 1999;
Laws 2000, c. 275, § 1, eff. Jan. 1, 2001; Laws 2001, c. 351, § 1,
eff. Nov. 1, 2001; Laws 2002, c. 308, § 1, eff. July 1, 2002; Laws
2003, c. 377, § 1, emerg. eff. June 4, 2003; Laws 2004, c. 457, § 1,
eff. July 1, 2004; Laws 2005, c. 352, § 1, emerg. eff. June 6, 2005;
Laws 2006, c. 281, § 31, eff. July 1, 2006; Laws 2007, c. 1, § 61,
emerg. eff. Feb. 22, 2007; Laws 2008, c. 35, § 1, emerg. eff. April
17, 2008; Laws 2008, c. 406, § 3, eff. Nov. 1, 2008; Laws 2009, c.
369, § 1, eff. July 1, 2009; Laws 2010, c. 2, § 70, emerg. eff. March
3, 2010; Laws 2010, c. 267, § 1, eff. July 1, 2010; Laws 2010, c.
347, § 1, eff. Nov. 1, 2010; Laws 2011, c. 268, § 1, eff. Nov. 1,
2011; Laws 2012, c. 308, § 1, eff. Nov. 1, 2012; Laws 2013, c. 15, §
88, emerg. eff. April 8, 2013; Laws 2013, c. 227, § 23, eff. Nov. 1,
2013; Laws 2013, c. 378, § 1, eff. Nov. 1, 2013; Laws 2014, c. 332, §
1, eff. Nov. 1, 2014; Laws 2015, c. 139, § 1, eff. Nov. 1, 2015; Laws
2018, c. 156, § 1, eff. Nov. 1, 2018.
NOTE: Laws 1994, c. 278, § 34 repealed by Laws 1995, c. 1, § 40,
emerg. eff. March 2, 1995. Laws 1995, c. 337, § 11 repealed by Laws
1996, c. 3, § 25, emerg. eff. March 6, 1996. Laws 1999, c. 79, § 2
repealed by Laws 1999, c. 426, § 5, eff. July 1, 1999. Laws 2005, c.
390, § 1 repealed by Laws 2006, c. 16, § 75, emerg. eff. March 29,
2006. Laws 2006, c. 16, § 74 repealed by Laws 2007, c. 1, § 62,
emerg. eff. Feb. 22, 2007. Laws 2009, c. 339, § 1 repealed by Laws
2010, c. 2, § 71, emerg. eff. March 3, 2010. Laws 2012, c. 304, §
567 repealed by Laws 2013, c. 15, § 89, emerg. eff. April 8, 2013.
Laws 2012, c. 310, § 1 repealed by Laws 2013, c. 15, § 90, emerg.
eff. April 8, 2013.
§68-3604. Incentive payments.
A. Except as otherwise provided in subsection I or subsection L
of this section, an establishment which meets the qualifications
specified in the Oklahoma Quality Jobs Program Act may receive
quarterly incentive payments for a ten-year period from the Oklahoma
Tax Commission pursuant to the provisions of the Oklahoma Quality
Jobs Program Act; provided, such an establishment defined or
classified in the NAICS Manual under U.S. Industry No. 711211 (2007
version) may receive quarterly incentive payments for a fifteen-year
period. The amount of such payments shall be equal to the net
benefit rate multiplied by the actual gross payroll of new direct
jobs for a calendar quarter as verified by the Oklahoma Employment
Security Commission.
B. In order to receive incentive payments, an establishment
shall apply to the Oklahoma Department of Commerce. The application
shall be on a form prescribed by the Department and shall contain
such information as may be required by the Department to determine if
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the applicant is qualified. An establishment may apply for an
effective date for a project, which shall not be more than twenty-
four (24) months from the date the application is submitted to the
Department.
C. Except as otherwise provided by subsection D or E of this
section, in order to qualify to receive such payments, the
establishment applying shall be required to:
1. Be engaged in a basic industry;
2. Have an annual gross payroll for new direct jobs projected by
the Department to equal or exceed Two Million Five Hundred Thousand
Dollars ($2,500,000.00) within three (3) years of the first complete
calendar quarter following the start date; and
3. Have a number of full-time-equivalent employees subject to
the tax imposed by Section 2355 of this title and working an annual
average of thirty (30) or more hours per week in new direct jobs
located in this state equal to or in excess of eighty percent (80%)
of the total number of new direct jobs.
D. In order to qualify to receive incentive payments as
authorized by the Oklahoma Quality Jobs Program Act, an establishment
engaged in an activity described under:
1. Industry Group Nos. 3111 through 3119 of the NAICS Manual
shall be required to:
a. have an annual gross payroll for new direct jobs
projected by the Department to equal or exceed One
Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years of the first complete calendar
quarter following the start date and make, or which
will make within one (1) year, at least seventy-five
percent (75%) of its total sales, as determined by the
Incentive Approval Committee pursuant to the provisions
of subsection B of Section 3603 of this title, to out-
of-state customers or buyers, to in-state customers or
buyers if the product or service is resold by the
purchaser to an out-of-state customer or buyer for
ultimate use, or to the federal government, unless the
annual gross payroll equals or exceeds Two Million Five
Hundred Thousand Dollars ($2,500,000.00) in which case
the requirements for purchase of output provided by
this subparagraph shall not apply, and
b. have a number of full-time-equivalent employees working
an average of thirty (30) or more hours per week in new
direct jobs equal to or in excess of eighty percent
(80%) of the total number of new direct jobs; and
2. Division (4) of subparagraph a of paragraph 1 of subsection A
of Section 3603 of this title, shall be required to:
a. have an annual gross payroll for new direct jobs
projected by the Department to equal or exceed One
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Million Five Hundred Thousand Dollars ($1,500,000.00)
within three (3) years of the first complete calendar
quarter following the start date, and
b. have a number of full-time-equivalent employees working
an average of thirty (30) or more hours per week in new
direct jobs equal to or in excess of eighty percent
(80%) of the total number of new direct jobs.
E. 1. An establishment which locates its principal business
activity within a site consisting of at least ten (10) acres which:
a. is a federal Superfund removal site,
b. is listed on the National Priorities List established
under Section 9605 of Title 42 of the United States
Code,
c. has been formally deferred to the state in lieu of
listing on the National Priorities List, or
d. has been determined by the Department of Environmental
Quality to be contaminated by any substance regulated
by a federal or state statute governing environmental
conditions for real property pursuant to an order of
the Department of Environmental Quality,
shall qualify for incentive payments irrespective of its actual gross
payroll or the number of full-time-equivalent employees engaged in
new direct jobs.
2. In order to qualify for the incentive payments pursuant to
this subsection, the establishment shall conduct the activity
resulting in at least fifty percent (50%) of its Oklahoma taxable
income or adjusted gross income, as determined under Section 2358 of
this title, whether from the sale of products or services or both
products and services, at the physical location which has been
determined not to comply with the federal or state statutes described
in this subsection with respect to environmental conditions for real
property. The establishment shall be subject to all other
requirements of the Oklahoma Quality Jobs Program Act other than the
exemptions provided by this subsection.
3. In order to qualify for the incentive payments pursuant to
this subsection, the entity shall obtain from the Department of
Environmental Quality a letter of concurrence that:
a. the site designated by the entity does meet one or more
of the requirements listed in paragraph 1 of this
subsection, and
b. the site is being or has been remediated to a level
which is consistent with the intended use of the
property.
In making its determination, the Department of Environmental
Quality may rely on existing data and information available to it,
but may also require the applying entity to provide additional data
and information as necessary.
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4. If authorized by the Department of Environmental Quality
pursuant to paragraph 3 of this subsection, the entity may utilize a
remediated portion of the property for its intended purpose prior to
remediation of the remainder of the site, and shall qualify for
incentive payments based on employment associated with the portion of
the site.
F. Except as otherwise provided by subsection G of this section,
for applications submitted on and after June 4, 2003, in order to
qualify to receive incentive payments as authorized by the Oklahoma
Quality Jobs Program Act, in addition to other qualifications
specified herein, an establishment shall be required to pay new
direct jobs an average annualized wage which equals or exceeds:
1. One hundred ten percent (110%) of the average county wage as
determined by the Department of Commerce based on the most recent
U.S. Department of Commerce data for the county in which the new
direct jobs are located. For purposes of this paragraph, health care
premiums paid by the applicant for individuals in new direct jobs
shall be included in the annualized wage; or
2. One hundred percent (100%) of the average county wage as that
percentage is determined by the Department of Commerce based upon the
most recent U.S. Department of Commerce data for the county in which
the new jobs are located. For purposes of this paragraph, health
care premiums paid by the applicant for individuals in new direct
jobs shall not be included in the annualized wage.
Provided, no average wage requirement shall exceed Twenty-five
Thousand Dollars ($25,000.00), in any county. This maximum wage
threshold shall be indexed and modified from time to time based on
the latest Consumer Price Index year-to-date percent change release
as of the date of the annual average county wage data release from
the Bureau of Economic Analysis of the U.S. Department of Commerce.
G. 1. As used in this subsection, "opportunity zone" means one
or more census tracts in which, according to the most recent Federal
Decennial Census, at least thirty percent (30%) of the residents have
annual gross household incomes from all sources below the poverty
guidelines established by the U.S. Department of Health and Human
Services. An establishment which is otherwise qualified to receive
incentive payments and which locates its principal business activity
in an opportunity zone shall not be subject to the requirements of
subsection F of this section.
2. As used in this subsection:
a. "negative economic event" means:
(1) a man-made disaster or natural disaster as defined
in Section 683.3 of Title 63 of the Oklahoma
Statutes, resulting in the loss of a significant
number of jobs within a particular county of this
state, or
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(2) an economic circumstance in which a significant
number of jobs within a particular county of this
state have been lost due to an establishment
changing its structure, consolidating with another
establishment, closing or moving all or part of
its operations out of this state, and
b. "significant number of jobs" means Local Area
Unemployment Statistics (LAUS) data, as determined by
the Bureau of Labor Statistics, for a county which are
equal to or in excess of five percent (5%) of the total
amount of Local Area Unemployment Statistics (LAUS)
data for that county for the calendar year, or most
recent twelve-month period in which employment is
measured, preceding the event.
An establishment which is otherwise qualified to receive
incentive payments and which locates in a county in which a negative
economic event has occurred within the eighteen-month period
preceding the start date shall not be subject to the requirements of
subsection F of this section; provided, an establishment shall not be
eligible to receive incentive payments based upon a negative economic
event with respect to jobs that are transferred from one county of
this state to another.
H. The Department shall determine if the applicant is qualified
to receive incentive payments.
I. If the applicant is determined to be qualified by the
Department and is not subject to the provisions of subparagraph d of
paragraph 7 of subsection A of Section 3603 of this title, the
Department shall conduct a cost/benefit analysis to determine the
estimated net direct state benefits and the net benefit rate
applicable for a ten-year period beginning with the first complete
calendar quarter following the start date and to estimate the amount
of gross payroll for a ten-year period beginning with the first
complete calendar quarter following the start date or for a fifteen-
year period for an establishment defined or classified in the NAICS
Manual under U.S. Industry No. 711211 (2007 version). In conducting
such cost/benefit analysis, the Department shall consider
quantitative factors, such as the anticipated level of new tax
revenues to the state along with the added cost to the state of
providing services, and such other criteria as deemed appropriate by
the Department. In no event shall incentive payments, cumulatively,
exceed the estimated net direct state benefits, except for applicants
subject to the provisions of subparagraph d of paragraph 7 of
subsection A of Section 3603 of this title.
J. Upon approval of such an application, the Department shall
notify the Tax Commission and shall provide it with a copy of the
contract and the results of the cost/benefit analysis. The Tax
Commission may require the qualified establishment to submit such
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additional information as may be necessary to administer the
provisions of the Oklahoma Quality Jobs Program Act. The approved
establishment shall file quarterly claims with the Tax Commission and
shall continue to file such quarterly claims during the ten-year
incentive period to show its continued eligibility for incentive
payments, as provided in Section 3606 of this title, or until it is
no longer qualified to receive incentive payments. The establishment
may be audited by the Tax Commission to verify such eligibility.
Once the establishment is approved, an agreement shall be deemed to
exist between the establishment and the State of Oklahoma, requiring
the continued incentive payment to be made as long as the
establishment retains its eligibility as defined in and established
pursuant to this section and Sections 3603 and 3606 of this title and
within the limitations contained in the Oklahoma Quality Jobs Program
Act, which existed at the time of such approval. An establishment
described in this subsection shall be required to repay all incentive
payments received under the Oklahoma Quality Jobs Program Act if the
establishment is determined by the Oklahoma Tax Commission to no
longer have business operations in the state within three (3) years
from the beginning of the calendar quarter for which the first
incentive payment claim is filed.
K. A municipality with a population of less than one hundred
thousand (100,000) persons in which an establishment eligible to
receive quarterly incentive payments pursuant to the provisions of
this section is located may file a claim with the Tax Commission for
up to twenty-five percent (25%) of the amount of such payment. The
amount of such claim shall not exceed amounts paid by the
municipality for direct costs of municipal infrastructure
improvements to provide water and sewer service to the establishment.
Such claim shall not be approved by the Tax Commission unless the
municipality and the establishment have entered into a written
agreement for such claims to be filed by the municipality prior to
submission of the application of the establishment pursuant to the
provisions of this section. If such claim is approved, the amount of
the payment to the establishment made pursuant to the provisions of
Section 3606 of this title shall be reduced by the amount of the
approved claim by the municipality and the Tax Commission shall issue
a warrant to the municipality in the amount of the approved claim in
the same manner as warrants are issued to qualifying establishments.
L. For any contract executed by an establishment on or after the
effective date of this act, five percent (5%) of the quarterly
incentive payment amount shall be transferred by the Oklahoma Tax
Commission to the Oklahoma Quick Action Closing Fund.
Added by Laws 1993, c. 275, § 4, eff. July 1, 1993. Amended by Laws
1994, c. 7, § 3, emerg. eff. March 29, 1994; Laws 1995, c. 349, § 2,
eff. July 1, 1995; Laws 1997, c. 147, § 1, eff. July 1, 1997; Laws
1997, c. 258, § 2, emerg. eff. May 23, 1997; Laws 1998, c. 379, § 2,
9)!&#!%!%%"'%)6! !2!(# 7!8
eff. July 1, 1998; Laws 1999, c. 1, § 25, emerg. eff. Feb. 24, 1999;
Laws 2000, c. 149, § 1, emerg. eff. April 28, 2000; Laws 2000, c.
275, § 2, eff. Jan. 1, 2001; Laws 2001, c. 351, § 2, eff. Nov. 1,
2001; Laws 2002, c. 21, § 1, emerg. eff. March 8, 2002; Laws 2003, c.
377, § 2, emerg. eff. June 4, 2003; Laws 2004, c. 457, § 2, eff. July
1, 2004; Laws 2006, c. 282, § 1, eff. July 1, 2006; Laws 2007, c. 1,
§ 63, emerg. eff. Feb. 22, 2007; Laws 2007, c. 357, § 1, eff. July 1,
2007; Laws 2008, c. 35, § 2, emerg. eff. April 17, 2008; Laws 2008,
c. 406, § 5, eff. Nov. 1, 2008; Laws 2013, c. 378, § 2, eff. Nov. 1,
2013; Laws 2014, c. 4, § 22, emerg. eff. April 2, 2014; Laws 2018, c.
144, § 2.
NOTE: Laws 1998, c. 227, § 1 repealed by Laws 1999, c. 1, § 45,
emerg. eff. Feb. 24, 1999. Laws 2006, c. 281, § 32 repealed by Laws
2007, c. 1, § 64, emerg. eff. Feb. 22, 2007. Laws 2013, c. 227, § 24
repealed by Laws 2014, c. 4, § 23, emerg. eff. April 2, 2014.
§68-3604.1. Quarterly incentive payments for federal contractors -
Application and qualifications.
A. A qualified federal contractor may receive quarterly
incentive payments for renewable ten-year periods from the Oklahoma
Tax Commission pursuant to the provisions of the Oklahoma Quality
Jobs Program Act and the provisions of this section.
B. The amount of such payments shall be equal to a net benefit
rate of not less than twenty-five hundredths of one percent (0.25%),
but not greater than two percent (2%), multiplied by the total
qualified labor hours worked by employees of the federal contractor
or employees of a qualified federal subcontractor, or both, pursuant
to a qualified federal contract for a calendar quarter as verified by
the Oklahoma Employment Security Commission and certified by a
qualified federal contractor verifier. The net benefit rate for a
qualified federal contractor shall be scaled to annual subcontracting
goals that account for both total qualified subcontract labor hours
and the ratio of qualified subcontract labor hours to total qualified
labor hours. Unless limited by the cost/benefit analysis, the net
benefit rate shall:
1. Not exceed twenty-five hundredths of one percent (0.25%) when
annual qualified subcontract labor hours are less than Two Hundred
Thousand Dollars ($200,000.00) or when annual qualified subcontract
labor is less than one percent (1%) of the annual total qualified
labor hours claimed;
2. Not be less than five-tenths of one percent (0.5%) when
subcontract goals are met with a minimum of Two Hundred Thousand
Dollars ($200,000.00) of annual total qualified subcontractor labor
hours and these hours are a minimum of one percent (1%) of the annual
total qualified hours claimed;
3. Not be less than one percent (1%) when subcontract goals are
met with a minimum of One Million Dollars ($1,000,000.00) of annual
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total qualified subcontractor labor hours and when these hours
represent a minimum of five percent (5%) of the annual total
qualified hours claimed;
4. Not be less than one and five-tenths percent (1.5%) when
subcontract goals are met with a minimum of Two Million Dollars
($2,000,000.00) of annual total qualified subcontractor labor hours
and these hours are a minimum of ten percent (10%) of the annual
total qualified hours claimed; and
5. Not be less than two percent (2.0%) when subcontract goals
are met with a minimum of Four Million Dollars ($4,000,000.00) of
annual total qualified subcontractor labor hours and these hours are
a minimum of twenty percent (20%) of the annual total qualified hours
claimed.
C. In order to receive incentive payments, a qualified federal
contractor shall apply to the Oklahoma Department of Commerce within
one hundred eighty (180) days following the date of the award of a
qualified federal contract or award of a new qualified subcontract
under an existing qualified federal contract. The application shall
be on a form prescribed by the Department and shall contain such
information as may be required by the Department to determine if the
applicant is qualified. Once qualified by the Department, the
applicant shall submit qualified federal contracts to the federal
contract verifier. The federal contract verifier shall establish
with the applicant an information system(s) or contract(s) as may be
required to certify the total qualified labor hours, qualified labor
rates, and reimbursement through the qualified federal contract. A
qualified federal contractor may apply for an effective date for a
project, which shall not be more than twenty-four (24) months from
the date the application is submitted to the Department. No state
agency shall be required to make any payment to a qualified federal
contract verifier for any information needed by the agency to perform
any duty imposed upon it pursuant to the provisions of Section 3601
et seq. of this title. All costs for the federal contract verifier
shall be reimbursed through value-added services on the qualified
federal contract or other mechanisms agreed to by the federal
contractor verifier and the federal contract performers.
D. In order to qualify to receive incentive payments as
authorized by the Oklahoma Quality Jobs Program Act, in addition to
other qualifications specified herein, a qualified federal contractor
shall be required to pay direct jobs an average annualized wage which
equals or exceeds:
1. One hundred ten percent (110%) of the average county wage as
determined by the Department of Commerce based on the most recent
U.S. Department of Commerce data for the county in which the new
direct jobs are located. For purposes of this paragraph, health care
premiums paid by the applicant for individuals in new direct jobs
shall be included in the annualized wage; or
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2. One hundred percent (100%) of the average county wage as that
percentage is determined by the Department of Commerce based upon the
most recent U.S. Department of Commerce data for the county in which
the new jobs are located. For purposes of this paragraph, health
care premiums paid by the applicant for individuals in new direct
jobs shall not be included in the annualized wage.
Provided, no average wage requirement shall exceed Twenty-nine
Thousand Four Hundred Nine Dollars ($29,409.00), in any county. This
maximum wage threshold shall be indexed and modified from time to
time based on the latest Consumer Price Index year-to-date percent
change release as of the date of the annual average county wage data
release from the Bureau of Economic Analysis of the U.S. Department
of Commerce.
3. For qualified subcontractor work, the qualified federal
contractor shall have a minimum average qualified labor rate
requirement paid to the subcontractor of Thirty-one Dollars ($31.00)
per hour, in any county. This maximum wage threshold shall be
indexed and modified from time to time based on the latest Consumer
Price Index year-to-date percent change release as of the date of the
annual average county wage data release from the Bureau of Economic
Analysis of the U.S. Department of Commerce.
E. The Department shall determine if the applicant is qualified
to receive incentive payments using information supplied to the
Department by the qualified federal contractor verifier. The NAICS
code or codes under which the federal government awarded the
qualified federal contract shall be used to determine the basic
industry for a qualified federal contractor. For federal contracts
awarded under NAICS codes not within the definition of basic industry
pursuant to paragraph 1 of subsection A of Section 3603 of this
title, the Department of Commerce, with the federal contract
verifier, may evaluate and utilize individual statement of work items
that would qualify within a basic industry definition.
F. If the applicant is determined to be qualified by the
Department, the Department shall conduct a cost/benefit analysis to
determine the estimated net direct state benefits and the net benefit
rate, as provided by subsection B of this section, applicable for a
ten-year period beginning with the first complete calendar quarter
following the start date and to estimate the amount of gross payroll
and total qualified labor hours for a ten-year period beginning with
the first complete calendar quarter following the start date. In
conducting such cost/benefit analysis, the Department shall consider
quantitative factors, such as the anticipated level of new tax
revenues to the state along with the added cost to the state of
providing services, and such other criteria as deemed appropriate by
the Department. In no event shall incentive payments, cumulatively,
exceed the estimated net direct state benefits. Using this net cost/
benefit analysis model, the Department may establish the renewable
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ten-year contract with a qualified federal contractor at the entity
level to encompass any current or future qualified federal contracts
that meet the cost/benefit analysis metrics as determined by the
federal contractor verifier and confirmed by the Department.
G. Upon approval of such an application, the Department shall
notify the Tax Commission and shall provide it with a copy of the
contract that has been cosigned by the federal contractor verifier
and the results of the cost/benefit analysis. The Tax Commission may
require the qualified federal contractor, federal contract verifier,
and qualified subcontractors to submit such additional information as
may be necessary to administer the provisions of the Oklahoma Quality
Jobs Program Act. The approved qualified federal contractor shall
file quarterly claims with the Tax Commission and shall continue to
file such quarterly claims during the ten-year incentive period to
show its continued eligibility for incentive payments, as provided in
Section 3606 of this title, or until it is no longer qualified to
receive incentive payments. The qualified federal contractor may be
audited by the Tax Commission to verify such eligibility. Once the
qualified federal contractor is approved, an agreement shall be
deemed to exist between the qualified federal contractor and the
State of Oklahoma, requiring the continued incentive payment to be
made as long as the qualified federal contractor retains its
eligibility as defined in and established pursuant to this section
and Sections 3603 and 3606 of this title and within the limitations
contained in the Oklahoma Quality Jobs Program Act, which existed at
the time of such approval.
H. For qualified federal contracts with periods of performance
exceeding two (2) years, if the actual annual verified gross
qualified labor hours for four (4) consecutive calendar quarters does
not equal or exceed Two Million Five Hundred Thousand Dollars
($2,500,000.00) within three (3) years of the start date, or does not
equal or exceed actual annual gross qualified labor hours of Two
Million Five Hundred Thousand Dollars ($2,500,000.00) at any other
time during the ten-year period after the start date, the incentive
payments shall not be made and shall not be resumed until such time
as the actual annual qualified labor hours exceed Two Million Five
Hundred Thousand Dollars ($2,500,000.00).
I. If the average annualized wage or minimum average qualified
labor rate required by subsection H of this section is not met during
any calendar quarter, the incentive payments shall not be made and
shall not be resumed until such time as such requirements are met.
J. Before approving a quarterly incentive payment for a
qualified federal contract, the federal contract verifier must first
determine through the Department that neither the qualified federal
contractor nor the subcontractor are receiving incentive payments
under the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs
Act, the 21st Century Quality Jobs Incentive Act or the Former
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Military Facility Development Act for the performance of the same
such services under the qualified federal contract and is not
qualified for approval of an application for incentive payments under
the Oklahoma Quality Jobs Program Act, the Saving Quality Jobs Act,
the 21st Century Quality Jobs Incentive Act or the Former Military
Facility Development Act for the performance of the same such
services under the qualified federal contract. If the qualified
federal contractor or the subcontractor are receiving or have an
approved application for incentive payments under the Oklahoma
Quality Jobs Program Act, the Saving Quality Jobs Act, the 21st
Century Quality Jobs Incentive Act or the Former Military Facility
Development Act for the performance of the same such services under
the qualified federal contract, each may choose to defer in part or
in entirety the other incentives for the qualified federal contractor
to receive the incentives pursuant to subsection B of this section.
The federal contract verifier shall confirm any deferrals and ensure
the total for all quality jobs incentive payments on any individual
does not exceed the total net benefit to the state. Should neither
the federal contractor nor the subcontractor defer in part or in
entirety their incentive payments such that the total for all Quality
Jobs incentive payments exceeds the total net benefit to the state,
the priority for incentive payments shall go to the entity with the
earliest recognized start date indentified within the current
Department of Commerce Quality Jobs contract.
Added by Laws 2009, c. 369, § 2, eff. July 1, 2009. Amended by Laws
2010, c. 267, § 2, eff. July 1, 2010; Laws 2011, c. 268, § 2, eff.
Nov. 1, 2011; Laws 2013, c. 227, § 25, eff. Nov. 1, 2013.
§68-3605. Quality Jobs Program Incentive Payment Fund.
There is hereby created within the State Treasury a special fund
for the Oklahoma Tax Commission to be designated the "Quality Jobs
Program Incentive Payment Fund". The Oklahoma Tax Commission is
hereby authorized and directed to withhold a portion of the taxes
levied and collected pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes for deposit into the fund. The amount deposited
shall equal the sum of an amount determined by multiplying the net
benefit rate provided by the Department of Commerce by the gross
payroll as determined pursuant to the provisions of subsection A of
Section 6 of this act. All of the amounts deposited in such fund
shall be used and expended by the Tax Commission solely for the
purposes and in the amounts authorized by the Oklahoma Quality Jobs
Program Act. The liability of the State of Oklahoma to make the
incentive payments under this act shall be limited to the balance
contained in the fund created by this section.
Added by Laws 1993, c. 275, § 5, eff. July 1, 1993.
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§68-3606. Filing claim to receive incentive payment - Determination
- Payments.
A. As soon as practicable after the end of the first complete
calendar quarter following the start date, the establishment shall
file a claim for the payment with the Oklahoma Tax Commission and
shall specify the actual number and gross payroll of new direct jobs
for the establishment for the calendar quarter. The Tax Commission
shall verify the actual gross payroll for new direct jobs for the
establishment for such calendar quarter. If the Tax Commission is
not able to provide such verification utilizing all available
resources, the Tax Commission may request such additional information
from the establishment as may be necessary or may request the
establishment to revise its claim. An establishment may file for an
extension of the initial filing date with the Oklahoma Department of
Commerce. Any such extension shall be based solely upon an
extraordinary adverse business circumstance which prevented the
establishment from hiring the new direct jobs as projected. If an
establishment fails to file claims as required by this section, it
shall forfeit the right to receive any incentive payments after three
(3) years from the start date. If an establishment has filed at
least one claim pursuant to this section but fails to file another
claim within two (2) years of the most recent claim, the Tax
Commission, after consulting with the Department of Commerce, may
dismiss the establishment from the program, forfeiting the
establishment's right to receive incentive payments based on that
contract.
B. If the actual verified gross payroll for four (4) consecutive
calendar quarters does not equal or exceed the applicable total
required by Section 3604 of this title within three (3) years of the
start date, or does not equal or exceed the applicable total required
by Section 3604 of this title at any other time during the ten-year
period after the start date or during the fifteen-year period after
the start date for establishments defined or classified in the NAICS
Manual under U.S. Industry No. 711211 (2007 version), the incentive
payments shall not be made and shall not be resumed until such time
as the actual verified gross payroll equals or exceeds the amounts
specified in Section 3604 of this title. If an establishment fails
to achieve the required gross payroll within three (3) years of the
start date, the establishment shall not make a new or renewal
application for incentive payments authorized pursuant to the
Oklahoma Quality Jobs Program Act for a period of twelve (12) months
from the last day of the last month of the three-year period during
which the required gross payroll amount was not achieved.
C. If the average annualized wage required for an establishment
does not equal or exceed the amount specified in paragraph 1 or 2 of
subsection F of Section 3604 of this title during any calendar
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quarter, the incentive payments shall not be made and shall not be
resumed until such time as such requirements are met.
D. In no event shall incentive payments, cumulatively, exceed
the estimated net direct state benefits, except for establishments
subject to the provisions of subparagraph d of paragraph 7 of
subsection A of Section 3603 of this title.
E. An establishment that has qualified pursuant to Section 3604
of this title may receive payments only in accordance with the
provisions of the law under which it initially applied and was
approved. If an establishment that is receiving incentive payments
expands, it may apply for additional incentive payments based on the
gross payroll anticipated from the expansion only, pursuant to
Section 3604 of this title. Provided, an establishment which has
suffered an extraordinary adverse business circumstance, as certified
by the Incentive Approval Committee, may be allowed to voluntarily
withdraw from the Oklahoma Quality Jobs Program, repay to the Tax
Commission the total amount of incentive payments received pursuant
to the provisions of this section, plus interest at the rate
specified in Section 727.1 of Title 12 of the Oklahoma Statutes, and
reapply to the Department for a new incentive contract if the
establishment qualifies pursuant to the provisions of the Oklahoma
Quality Jobs Program Act. Any funds received by the Tax Commission
pursuant to the provisions of this subsection shall be apportioned in
the manner that income tax revenues are apportioned.
F. An establishment that is receiving incentive payments may not
apply for additional incentive payments for any new projects until
twelve (12) quarters after receipt of the first incentive payment, or
until the establishment's actual verified gross payroll for new
direct jobs equals or exceeds Two Million Five Hundred Thousand
Dollars ($2,500,000.00) during any four consecutive-calendar-quarter
period, whichever comes first. After meeting the requirements of
this subsection, an establishment may apply for additional incentive
payments based upon the gross payroll anticipated from an expansion
only.
G. As soon as practicable after verification of the actual gross
payroll as required by this section and except as otherwise provided
by subsection K of Section 3604 of this title, the Tax Commission
shall issue a warrant to the establishment in the amount of the net
benefit rate multiplied by the actual gross payroll as determined
pursuant to subsection A of this section for the calendar quarter.
Added by Laws 1993, c. 275, § 6, eff. July 1, 1993. Amended by Laws
1995, c. 349, § 3, eff. July 1, 1995; Laws 1998, c. 379, § 3, eff.
July 1, 1998; Laws 2000, c. 275, § 3, eff. Jan. 1, 2001; Laws 2001,
c. 351, § 3, eff. Nov. 1, 2001; Laws 2004, c. 457, § 3, eff. July 1,
2004; Laws 2006, c. 282, § 2, eff. July 1, 2006; Laws 2007, c. 1, §
65, emerg. eff. Feb. 22, 2007; Laws 2007, c. 357, § 3, eff. July 1,
2007; Laws 2008, c. 35, § 3, emerg. eff. April 17, 2008; Laws 2008,
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c. 406, § 6, eff. Nov. 1, 2008; Laws 2012, c. 308, § 2, eff. Nov. 1,
2012; Laws 2013, c. 378, § 3, eff. Nov. 1, 2013.
NOTE: Laws 2006, c. 281, § 33 repealed by Laws 2007, c. 1, § 66,
emerg. eff. Feb. 22, 2007.
§68-3607. Eligibility of establishments receiving incentive payments
to receive certain tax credits and exemptions.
A. Notwithstanding any other provision of law, if a qualified
establishment receives an incentive payment pursuant to the
provisions of Section 3601 et seq. of this title, neither the
qualified establishment nor its contractors or subcontractors shall
be eligible to receive the credits or exemptions provided for in the
following provisions of law in connection with the activity for which
the incentive payment was received:
1. Paragraphs 16 and 17 of Section 1357 of this title;
2. Paragraph 7 of Section 1359 of this title;
3. Section 2357.4 of this title; except as provided in
subsection B of this section;
4. Section 2357.7 of this title;
5. Section 2-11-303 of Title 27A of the Oklahoma Statutes;
6. Section 2357.22 of this title;
7. Section 2357.31 of this title;
8. Section 54003 of this title;
9. Section 54006 of this title;
10. Section 625.1 of Title 36 of the Oklahoma Statutes;
11. Subsections C and D of Section 2357.59 of this title;
12. Section 2357.13 of this title; or
13. Section 4201 of this title.
B. Any establishment which has qualified to receive quarterly
incentive payments pursuant to subsection B of Section 3604 of this
title for a ten-year period with a project start date after January
1, 2010, shall be eligible to receive the credit provided for in
Section 2357.4 of this title if such establishment:
1. Qualifies for the credit allowed pursuant to paragraph 1 of
subsection B of Section 2357.4 of this title based on an investment
made after January 1, 2010;
2. Pays an average annualized wage which equals or exceeds the
average state wage as determined by the Department of Commerce based
on the most recent U.S. Department of Commerce data; and
3. Obtains a determination letter from the Oklahoma Department
of Commerce that the business activity of the entity will result in a
positive net benefit rate.
C. For purposes of the exception provided for in this section:
1. "Estimated direct state benefits" has the meaning set out in
paragraph 4 of subsection A of Section 3603 of this title;
2. "Estimated indirect state benefits" means the indirect new
tax revenues projected by the Oklahoma Department of Commerce to
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accrue to the state, including, but not limited to, revenue generated
from ancillary support jobs directly related to the primary business;
3. "Estimated direct state costs" has the meaning set out in
paragraph 5 of subsection A of Section 3603 of this title; and
4. "Estimated indirect state costs" means the costs projected by
the Oklahoma Department of Commerce to accrue to the state as a
result of new indirect jobs. Such costs shall include, but not be
limited to, costs enumerated in paragraph 3 of this subsection.
D. Any establishment which has qualified to receive quarterly
incentive payments pursuant to subsection B of Section 3604 of this
title for a ten-year period with a project start date after January
1, 2010, shall be eligible to receive the credit provided for in
Section 2357.4 of this title pursuant to the provisions of this
section if such establishment obtains a determination letter from the
Oklahoma Department of Commerce that the business activity of the
entity will result in a positive net benefit rate, to be computed by
the Oklahoma Department of Commerce using a methodology which
provides for the analysis of estimated direct state benefits,
estimated indirect state benefits, estimated direct state costs and
estimated indirect state costs. The Oklahoma Department of Commerce
shall use such information as it determines to be relevant for the
analysis required by this subsection including, but not limited to,
the type of business activity in which the entity is engaged or will
be engaged, amount of capital investment, type of assets acquired or
utilized by the business entity, economic impact of the business
activity within the relevant geographic region and such other factors
as the Department determines to be relevant. The Oklahoma Department
of Commerce may use information regarding the business entity alone
or in conjunction with relevant information regarding other business
activity in a geographically relevant area surrounding the principal
business location of the primary business entity in order to perform
the computation of the net benefit rate. If the result of the
analysis is a positive net benefit rate, the establishment shall be
allowed to qualify to receive quarterly incentive payments pursuant
to subsection B of Section 3604 of this title for a ten-year period
and shall be eligible to receive the credit provided for in Section
2357.4 of this title. The Oklahoma Department of Commerce shall
transmit a determination letter to the authorized representative of
the establishment and shall also transmit a copy of the determination
letter to the Oklahoma Tax Commission, regardless of whether the
result is a positive or negative net benefit rate.
Added by Laws 1993, c. 275, § 7, eff. July 1, 1993. Amended by Laws
1994, c. 278, § 35, eff. Sept. 1, 1994; Laws 1996, c. 342, § 6,
emerg. eff. June 14, 1996; Laws 1997, c. 258, § 3, emerg. eff. May
23, 1997; Laws 1999, c. 390, § 14, emerg. eff. June 8, 1999; Laws
2000, c. 6, § 16, emerg. eff. March 20, 2000; Laws 2008, c. 406, § 7,
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eff. Nov. 1, 2008; Laws 2009, c. 284, § 1, eff. Jan. 1, 2010; Laws
2013, c. 227, § 26, eff. Nov. 1, 2013.
NOTE: Laws 1999, c. 203, § 2 repealed by Laws 2000, c. 6, § 33,
emerg. eff. March 20, 2000.
§68-3608. Promulgation of rules.
The Department of Commerce and the Tax Commission shall
promulgate rules necessary to implement their respective duties and
responsibilities under the provisions of this act.
Added by Laws 1993, c. 275, § 8, eff. July 1, 1993.
§68-3609. False or fraudulent information in making application,
claim for payment or other instrument - Penalties.
Any person making an application, claim for payment or any
report, return, statement or other instrument or providing any other
information pursuant to the provisions of this act who willfully
makes a false or fraudulent application, claim, report, return,
statement, invoice or other instrument or who willfully provides any
false or fraudulent information, or any person who willfully aids or
abets another in making such false or fraudulent application, claim,
report, return, statement, invoice or other instrument or who
willfully aids or abets another in providing any false or fraudulent
information, upon conviction, shall be guilty of a felony punishable
by the imposition of a fine of not less than One Thousand Dollars
($1,000.00) and not more than Fifty Thousand Dollars ($50,000.00), or
imprisonment in the State Penitentiary for not less than two (2)
years and not more than five (5) years, or by both such fine and
imprisonment. Any person convicted of a violation of this section
shall be liable for the repayment of all incentive payments which
were paid to the establishment. Interest shall be due on such
payments at the rate of ten percent (10%) per annum.
Added by Laws 1993, c. 275, § 9, eff. July 1, 1993.
§68-3610. Report on effect of Oklahoma Quality Jobs Program.
The Oklahoma Department of Commerce shall prepare triennially a
report which shall include, but not be limited to, documentation of
the new direct jobs created under the Oklahoma Quality Jobs Program
Act and a fiscal analysis of the costs and benefits of the Program to
the state. The report shall be submitted to the President Pro
Tempore of the Senate, the Speaker of the House of Representatives
and the Governor of this state no later than March 1, 1996, and every
three (3) years thereafter. The report may be used for the purpose
of determining whether to continue or sunset the Oklahoma Quality
Jobs Program Act.
Added by Laws 1994, c. 322, § 13, emerg. eff. June 8, 1994. Amended
by Laws 1996, c. 112, § 1, eff. Nov. 1, 1996.
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§68-3611. Payroll projection.
A. For purposes of the payroll projection required to be made by
the Department of Commerce pursuant to paragraph 2 of subsection C of
Section 3604 of Title 68 of the Oklahoma Statutes, the Department of
Commerce shall include payroll for all jobs created by an
establishment as a result of an expanded or new facility, regardless
of whether the jobs meet the definition of new direct jobs if:
1. The establishment is defined or classified under Industry
Numbers 3443, 3556 or 3728 of the Standard Industrial Classification
(SIC) Manual, latest version;
2. The jobs were not created by the establishment more than ten
(10) calendar quarters prior to the date of approval of the
application by the Department of Commerce; and
3. The establishment's application is approved by the Department
of Commerce prior to January 30, 1997.
B. When payroll described in subsection A of this section is
included by the Department of Commerce in the projection required by
paragraph 2 of subsection C of Section 3604 of Title 68 of the
Oklahoma Statutes, then the three-year period of such projection
shall begin the month after included payroll is first paid by the
establishment, and not on the anticipated date on which the
establishment will receive its first incentive payment.
C. For the purpose of determining if an establishment has met
the requirements of subsection B of Section 3606 of Title 68 of the
Oklahoma Statutes, the Tax Commission shall include payroll for any
jobs which the Department of Commerce included in its projection
pursuant to the provisions of subsection A of this section. If
payroll for such jobs is included, then the three-year period defined
in subsection B of Section 3603 of Title 68 of the Oklahoma Statutes
shall begin the month after included payroll is first paid by the
establishment and not on the date of the first incentive payment.
D. For the purpose of calculating incentive payments as provided
by Section 3606 of Title 68 of the Oklahoma Statutes, the Tax
Commission shall include payroll for those jobs which meet the
requirements of subsections A and C of this section regardless of
whether such jobs fall within the definition of a new direct job;
provided, an establishment shall in no event be entitled to such
incentive payments on payroll made prior to the date of approval of
its application by the Department of Commerce.
Added by Laws 1996, c. 342, § 7, emerg. eff. June 14, 1996.
§68-3612. New direct jobs – Inclusion of jobs created by
establishment as result of retained, expanded or new facility –
Calculation of incentive payments.
A. For purposes of the determination required to be made by the
Department of Commerce pursuant to paragraph 2 of subsection A of
Section 3603 of Title 68 of the Oklahoma Statutes, the Department of
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Commerce shall include jobs created by an establishment as a result
of a retained, expanded or new facility if:
1. The establishment and jobs are defined or classified under
Industry Number 326211 of the NAICS Manual;
2. The jobs were not created by the establishment more than
fourteen (14) calendar quarters prior to the date of approval of the
application by the Department of Commerce; and
3. The establishment’s application has been approved by the
Department of Commerce prior to March 30, 1997.
B. For the purpose of calculating incentive payments as provided
by Section 3606 of Title 68 of the Oklahoma Statutes, the Oklahoma
Tax Commission shall include payroll for those jobs which meet the
requirements of subsection A of this section regardless of whether
such jobs fall within the definition of a new direct job; provided,
an establishment shall in no event be entitled to such incentive
payments on payroll for those jobs which meet the requirements of
subsection A of this section made prior to the effective date of this
act. No claims may be made for such payroll prior to July 1, 2004.
Added by Laws 2003, c. 376, § 5, eff. July 1, 2003.
§68-3621. Short title.
This act shall be known and may be cited as the “Compete with
Canada Film Act”.
Added by Laws 2001, c. 259, § 1, eff. July 1, 2001.
§68-3622. Legislative intent.
The Legislature hereby finds that the production of films in
Oklahoma not only provides jobs for Oklahomans and dollars for
Oklahoma businesses, but also enhances the state’s image nationwide.
Recognizing that the high costs of film production are driving motion
picture and television production out of the country, most notably to
Canada, and that the film industry is always seeking attractive
locations that can help cut the costs of production, the Legislature
further finds that the State of Oklahoma, with the appropriate
incentive, can become an attractive site for film production and that
Oklahoma is presently among several states with minimal incentives to
attract the film industry. It is therefore the intent of the
Legislature that Oklahoma provide an incentive that will stand out
among those of other states and increase film production in this
state.
Added by Laws 2001, c. 259, § 2, eff. July 1, 2001.
§68-3623. Definitions.
As used in the Compete with Canada Film Act:
1. "Crew" means any person who works on preproduction, principal
photography, and postproduction, with the exception of producers,
principal cast, screenwriters, and the director. The qualifying
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salary of producers, principal cast, screenwriters, and the director,
also known as "above-the-line personnel", may be included as crew if
the salaries are paid to loan-out corporations and limited liability
companies registered to do business in the State of Oklahoma or the
salaries are paid to Oklahoma-based above-the-line personnel. The
qualifying salary of above-the-line personnel shall not comprise more
than twenty-five percent (25%) of total expenditures as defined in
paragraph 2 of this section. For purposes of this paragraph,
"Oklahoma-based" means a company or individual with an Oklahoma
income tax requirement;
2. "Expenditure" or "production cost" includes but is not
limited to:
a. wages or salaries of persons who are residents of this
state and who have earned income from working on a film
in this state, including payments to personal services
corporations with respect to the services of qualified
performing artists, as determined under Section 62(a)
(A) of the Internal Revenue Code,
b. the cost of construction and operations, wardrobe,
accessories and related services,
c. the cost of photography, sound synchronization,
lighting and related services,
d. the cost of editing and related services,
e. rental of facilities and equipment,
f. other direct costs of producing a film, and
g. the wages and salaries of persons who are defined and
registered as an Oklahoma Expatriate by the Office of
the Oklahoma Film and Music Commission;
3. "Film" means a professional single media, multimedia program
or feature, which is not child pornography as defined in subsection A
of Section 1024.1 of Title 21 of the Oklahoma Statutes or obscene
material as defined in paragraph 1 of subsection B of Section 1024.1
of Title 21 of the Oklahoma Statutes, including, but not limited to,
national advertising messages that are broadcast on a national
affiliate or cable network, fixed on film or digital video, which can
be viewed or reproduced and which is exhibited in theaters, licensed
for exhibition by individual television stations, groups of stations,
networks, cable television stations or other means or licensed for
home viewing markets;
4. "High impact production" means a production for which total
expenditures or production costs are equal to or greater than Fifty
Million Dollars ($50,000,000.00), with at least one-third (1/3) of
total costs deemed Oklahoma expenditures by the Office of the
Oklahoma Film and Music Commission; and
5. "Production company" means a person or company who produces
film for exhibition in theaters, on television or elsewhere.
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Added by Laws 2001, c. 259, § 3, eff. July 1, 2001. Amended by Laws
2002, c. 203, § 1, eff. July 1, 2002; Laws 2006, c. 29, § 1, eff.
July 1, 2006; Laws 2007, c. 341, § 1; Laws 2008, c. 436, § 14, eff.
July 1, 2009; Laws 2019, c. 313, § 2, eff. July 1, 2019.
§68-3624. Oklahoma Film Enhancement Rebate Program.
A. There is hereby created the Oklahoma Film Enhancement Rebate
Program. A rebate in the amount of up to seventeen percent (17%) of
documented expenditures made in Oklahoma directly attributable to the
production of a film, television production, or television
commercial, as defined in Section 3623 of this title, in this state,
may be paid to the production company responsible for the production.
Provided, for documented expenditures made after July 1, 2009, the
rebate amount shall be thirty-five percent (35%), except as provided
in subsection B of this section.
B. The amount of rebate paid to the production company as
provided for in subsection A of this section shall be increased by an
additional two percent (2%) of documented expenditures if a
production company spends at least Twenty Thousand Dollars
($20,000.00) for the use of music created by an Oklahoma resident
that is recorded in Oklahoma or for the cost of recording songs or
music in Oklahoma for use in the production.
C. The rebate program shall be administered by the Office of the
Oklahoma Film and Music Commission and the Oklahoma Tax Commission,
as provided in the Compete with Canada Film Act.
D. To be eligible for a rebate payment:
1. The production company responsible for a film, television
production, or television commercial, as defined in Section 3623 of
this title, made in this state shall submit documentation to the
Office of the Oklahoma Film and Music Commission of the amount of
wages paid for employment in this state to residents of this state
directly relating to the production and the amount of other
production costs incurred in this state directly relating to the
production;
2. The production company has filed or will file any Oklahoma
tax return or tax document which may be required by law;
3. Except major studio productions, the production company shall
provide the name of the completion guarantor and a copy of the bond
guaranteeing the completion of the project or if a film has not
secured a completion bond, the production company shall provide
evidence that all Oklahoma crew and local vendors have been paid and
there are no liens against the production company pending in the
state;
4. The minimum budget for the film shall be Fifty Thousand
Dollars ($50,000.00) of which not less than Twenty-five Thousand
Dollars ($25,000.00) shall be expended in this state;
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5. The production company shall provide evidence of financing
for production prior to the commencement of principal photography;
and
6. The production company shall provide evidence of a
certificate of general liability insurance with a minimum coverage of
One Million Dollars ($1,000,000.00) and a workers' compensation
policy pursuant to state law, which shall include coverage of
employer's liability.
E. A production company shall not be eligible to receive both a
rebate payment pursuant to the provisions of this act and an
exemption from sales taxes pursuant to the provisions of paragraph 23
of Section 1357 of this title. If a production company has received
such an exemption from sales taxes and submits a claim for rebate
pursuant to the provisions of the Compete with Canada Film Act, the
company shall be required to fully repay the amount of the exemption
to the Tax Commission. A claim for a rebate shall include
documentation from the Tax Commission that repayment has been made as
required herein or shall include an affidavit from the production
company that the company has not received an exemption from sales
taxes pursuant to the provisions of paragraph 21 of Section 1357 of
this title.
F. The Office shall approve or disapprove all claims for rebate
and shall notify the Tax Commission. The Tax Commission shall, upon
notification of approval from the Office of the Film and Music
Commission, issue payment for all approved claims from funds in the
Oklahoma Film Enhancement Rebate Program Revolving Fund created in
Section 3625 of this title. Excluding any rebate payments to high
impact productions as provided for in subsection G of this section,
the amount of payments in any single fiscal year shall not exceed
Eight Million Dollars ($8,000,000.00). If the amount of approved
claims exceeds the amount specified in this subsection in a fiscal
year, payments shall be made in the order in which the claims are
approved by the Office. If an approved claim is not paid in whole or
in part, the unpaid claim or unpaid portion may be paid in the
following fiscal year subject to the limitations specified in this
subsection.
G. 1. At the time the Office of the Film and Music Commission
issues a conditional prequalification for a production, such
prequalification may include a proposed designation as a high impact
production, as defined in Section 3623 of this title.
2. The proposed designation must be approved by the Cabinet
Secretary for Commerce and Tourism.
3. If the high impact production otherwise meets all of the
requirements of the Compete With Canada Act and the Office gives
final approval to rebate claims, such rebate claims shall not be
subject to the Eight Million Dollar ($8,000,000.00) cap provided for
in subsection F of this section.
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4. The payment of a rebate claim approved by the Office for a
production designated as a high impact production by the Cabinet
Secretary may be made as follows:
a. by special appropriation to the Oklahoma Film
Enhancement Rebate Program Revolving Fund, if the claim
is approved during a regular or special session of the
Oklahoma Legislature, or
b. by payment from the Oklahoma Quick Action Closing Fund
pursuant to Section 48.2 of Title 62 of the Oklahoma
Statues, if the claim is approved when the Oklahoma
Legislature is not in session.
Added by Laws 2001, c. 259, § 4, eff. July 1, 2001. Amended by Laws
2002, c. 203, § 2, eff. July 1, 2002; Laws 2005, c. 381, § 15, eff.
July 1, 2005; Laws 2006, c. 29, § 2, eff. July 1, 2006; Laws 2007, c.
341, § 2; Laws 2008, c. 436, § 15, eff. July 1, 2009; Laws 2009, c.
426, § 14, eff. July 1, 2009; Laws 2017, c. 121, § 1, eff. July 1,
2017; Laws 2019, c. 313, § 3, eff. July 1, 2019.
§68-3625. Oklahoma Film Enhancement Rebate Program Revolving Fund.
A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tax Commission to be designated the "Oklahoma
Film Enhancement Rebate Program Revolving Fund". The fund shall be a
continuing fund, not subject to fiscal year limitations, and shall
consist of all monies received by the Tax Commission which are
specifically required by law to be deposited in the fund, any public
or private donations, contributions, and gifts received for the
benefit of the fund and any amounts appropriated by the Oklahoma
Legislature. All monies accruing to the credit of the fund are
hereby appropriated and may be budgeted and expended by the Tax
Commission for the purpose of paying rebates as provided in this act.
Expenditures from the fund shall be made upon warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
B. The Oklahoma Tax Commission shall apportion, from the
revenues which would otherwise be apportioned to the General Revenue
Fund pursuant to subparagraph a of paragraph 1 of Section 2352 of
this title, an amount that the Commission estimates to be necessary
to pay the rebates provided by Section 3624 of this title to the
Oklahoma Film Enhancement Rebate Program Revolving Fund.
Added by Laws 2001, c. 259, § 5, eff. July 1, 2001. Amended by Laws
2005, c. 381, § 16, eff. July 1, 2005; Laws 2012, c. 304, § 568; Laws
2019, c. 313, § 4, eff. July 1, 2019.
§68-3626. Termination of act.
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The provisions of the Compete with Canada Film Act shall be
terminated effective July 1, 2027, and no claim shall be paid
thereafter.
Added by Laws 2001, c. 259, § 6, eff. July 1, 2001. Amended by Laws
2008, c. 436, § 16, eff. July 1, 2009; Laws 2014, c. 2, § 1; Laws
2019, c. 313, § 5, eff. July 1, 2019.
§68-3651. Short title.
This act shall be known and may be cited as the “Oklahoma Quality
Jobs Incentive Leverage Act”.
Added by Laws 2002, c. 299, § 1, emerg. eff. May 23, 2002.
§68-3652. Legislative findings.
The Legislature finds that certain establishments which have,
previous to the effective date of this act, qualified for incentive
payments pursuant to the Oklahoma Quality Jobs Program Act are a
source of economic benefits for the state, its political subdivisions
and its residents that can only be achieved through the use of
specialized economic incentives. The Oklahoma Quality Jobs Incentive
Leverage Act is enacted in order to provide a mechanism for the
leverage of incentive payments for the purpose of promoting and
sustaining economic growth and activity within the State of Oklahoma.
The Legislature finds that the use of the incentive payment, together
with other fiscal resources, is a method that provides a beneficial
correlation between the use of monies in the Quality Jobs Program
Incentive Leverage Fund and the total economic benefits to be derived
from the use of proceeds from the sale of obligations provided by
Section 3654 of this title.
Added by Laws 2002, c. 299, § 2, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 1, eff. Nov. 1, 2008.
§68-3653. Definitions.
As used in this act:
1. "Establishment" means a business that:
a. has at least One Hundred Fifteen Million Dollars
($115,000,000.00) in annual gross compensation paid
with respect to jobs located in Oklahoma according to
Oklahoma Employment Security records and company
reports for the three (3) years prior to the
irrevocable election filing date provided by Section
3658 of this title,
b. has an average salary of at least Forty Thousand
Dollars ($40,000.00) paid to employees as of the
irrevocable election filing date provided by Section
3658 of this title,
c. intends to add substantial gross compensation, as
defined below, with respect to full-time-equivalent
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employment located in Oklahoma within three (3) years
of filing an initial irrevocable election with the
Oklahoma Department of Commerce pursuant to the
provisions of subsection A of Section 3658 of this
title,
d. has at least Two Hundred Million Dollars
($200,000,000.00) total investment in Oklahoma,
e. intends to add investment for additional modernization
and retooling of a facility located in the state, on or
after the effective date of this act, of at least One
Hundred Million Dollars ($100,000,000.00), but for
purposes of this act not in excess of an additional Two
Hundred Fifty Million Dollars ($250,000,000.00) within
five (5) years of filing a second irrevocable election
with the Oklahoma Department of Commerce pursuant to
the provisions of subsection A of Section 3658 of this
title, unless the establishment has completed at least
eighty percent (80%) of the expenditures for the
additional investment by the end of the five-year
period in which case the establishment shall be allowed
a one-year extension for completion of the investment,
f. for purposes of an initial irrevocable election filed
prior to the effective date of this act, has and
maintains at least one thousand five hundred fifty
(1,550) full-time employees in the state, and
g. is described by Industry Number 3011, Industry Group
Number 301, Major Group 30 of the Standard Industrial
Classification Manual (SIC), latest revision;
2. "Gross compensation" means wages, as defined in Section
2385.1 of Title 68 of the Oklahoma Statutes, and benefits paid on
behalf of employees receiving wages; and
3. "Substantial gross compensation" means annualized
compensation of Four Million Dollars ($4,000,000.00) or more within
three (3) years of filing the initial irrevocable election with the
Oklahoma Department of Commerce pursuant to Section 3658 of this
title.
Added by Laws 2002, c. 299, § 3, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 2, eff. Nov. 1, 2008.
§68-3654. Issuance of obligations - Calculation of foregone
incentives - Payment of proceeds - Repayment - Guaranty.
A. The Oklahoma Development Finance Authority shall, according
to the requirements of the Oklahoma Development Finance Authority
Act, issue obligations in a principal amount determined as required
by this section upon certification by the Oklahoma Department of
Commerce that an establishment has filed the second irrevocable
election described in subsection A of Section 3658 of this title.
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The Authority shall not issue any additional obligations as a result
of a second irrevocable election authorized by Section 3658 of this
title until any obligations issued by the Authority prior to the
effective date of this act have been fully defeased. No obligation
issued by the Oklahoma Development Finance Authority pursuant to this
act shall be considered a general obligation of the State of Oklahoma
for any purpose and the indebtedness incurred shall be a debt of the
Oklahoma Development Finance Authority and not a debt of the State of
Oklahoma.
B. Notwithstanding any other provision of this section to the
contrary, the total principal amount of indebtedness incurred by the
Authority shall not be greater than an amount required for proceeds
equal to fourteen and four-tenths percent (14.4%) of the maximum
amount of projected additional investment, as disclosed pursuant to
Section 3655 of this title, for the applicable facility of an
establishment as defined by Section 3653 of this title. The maximum
amount of projected additional investment for purposes of this
subsection shall not exceed Two Hundred Fifty Million Dollars
($250,000,000.00).
C. The proceeds of such issuance shall be used by the Authority
for the benefit of an establishment making a second irrevocable
election pursuant to the requirements of this act and such proceeds
shall be made available to an establishment for purposes of making
the investments described by Section 3653 and Section 3655 of this
title according to the requirements of this act and any agreement
executed by the establishment and the Oklahoma Development Finance
Authority.
D. Upon receipt and analysis of the disclosures regarding
proposed investment for additional modernization and retooling of a
facility located within the state and owned by an establishment that
qualifies for access to the proceeds from the sale of the
obligations, the Oklahoma Development Finance Authority shall, if
requested by the establishment, structure the issuance of the
obligations in a manner that provides for the receipt of proceeds
equal to fourteen and four-tenths percent (14.4%) of the amount of
additional investment disclosed pursuant to the provisions of Section
3655 of this title.
E. Upon availability of such proceeds, the Authority shall make
payment to the qualified establishment of the full allocation of
proceeds from a second or subsequent issuance of obligations based
upon the computation required by subsection D of this section.
F. The obligations authorized by subsection A of this section,
whether issued prior to or on or after the effective date of this
act, shall be fully repaid in a period not to exceed twenty (20)
years from their issuance.
G. The Oklahoma Development Finance Authority shall require that
each and every establishment filing a second irrevocable election
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pursuant to Section 3658 of this title will use proceeds derived from
the sale of obligations issued pursuant to subsection A of this
section according to the requirements of this act.
H. An establishment that otherwise qualifies to use proceeds
from the sale of obligations pursuant to this section shall be
required to provide documentation to the Oklahoma Development Finance
Authority that, prior to the effective date of this act, a minimum of
Fifty Million Dollars ($50,000,000.00) has been expended or legally
committed for expenditure for a modernization and retooling of an
existing facility located within the state before the Authority is
authorized to transfer any such proceeds to the establishment.
I. Subject to the requirements of this section, the Oklahoma
Development Finance Authority is authorized to issue its obligations
in the principal amount required in order to make the proceeds from
the sale of its obligations available to each establishment that
qualifies for the use of such proceeds as required by this section,
and in such additional principal amount as may be required for the
payment of interest or the payment of principal and interest for the
fiscal year ending June 30, 2010, or subsequent fiscal year, together
with such additional principal amount that may be required or that
may be associated with the costs of the issuance of the obligations.
Under no circumstances shall the amount of proceeds derived from the
sale of obligations authorized by subsection A of this section and
which are made available to a qualified establishment exceed the
amount prescribed by this section.
J. The Oklahoma Development Finance Authority shall provide that
the first payment of interest or the first payment of principal and
interest in repayment of the obligations authorized by subsection A
of this section as a result of a second irrevocable election shall
not become due until the later of July 1, 2009, or the first date
upon which the revenues payable to the Authority from the Quality
Jobs Program Incentive Leverage Fund are no longer committed to the
payment of debt service requirements and related costs in connection
with obligations issued by the Authority pursuant to the Quality Jobs
Program Incentive Leverage Act prior to the effective date of this
act, if feasible, or the Authority shall provide for the first
payment of interest or the first payment of principal and interest
using some portion of the proceeds derived from the sale of
obligations authorized by subsection A of this section. If any
payment of principal or interest with respect to obligations issued
on or after the effective date of this act is due at any time after
July 1, 2009, the Authority may use such proceeds with respect to
such required payment. With respect to obligations issued by the
Authority as a result of a second irrevocable election, in no case
shall the Authority issue the obligations in any manner that requires
the use of revenues apportioned to the Quality Jobs Program Incentive
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Leverage Fund pursuant to Section 3659 of this act until July 1,
2009, or thereafter.
K. The Oklahoma Development Finance authority may enter into
such agreements with a qualified establishment as are necessary to
implement the provisions of this act. The Authority shall require
that an establishment using proceeds from obligations issued pursuant
to this section as a result of a second irrevocable election enter
into a contract with the Authority reflecting the benefits derived by
the State of Oklahoma in a manner consistent with the findings of
Section 3652 of this title. The Authority may provide for the
issuance of obligations in a manner that results in availability of
proceeds suitable to the proposed additional investment activity of
an establishment and which takes into account the obligation of the
Authority to repay principal and interest with the objective of
obtaining the most favorable financing terms to the Authority for the
repayment of the obligations.
L. If an establishment to which proceeds from the sale of
obligations issued pursuant to subsection A of this section as a
result of a second irrevocable election are transferred does not make
use of the proceeds in the amount required by any agreement with the
Authority or in contravention of any of the terms or requirements
imposed by the Authority or by the requirements of this act, the
establishment shall become liable to the Oklahoma Development Finance
Authority for the payment of principal, interest or other costs
associated with the repayment of any amount of debt represented by
obligations issued pursuant to subsection A of this section resulting
from a second irrevocable election to the extent such proceeds were
paid to the establishment and such proceeds were not used in the
amount disclosed to the Oklahoma Development Finance Authority
pursuant to Section 3655 of this title. If an establishment does not
make the full amount of additional investment as disclosed pursuant
to Section 3655 of this title, the establishment shall be liable for
principal, interest or other costs associated with repayment of debt
equal to the difference between the amount of investment disclosed
pursuant to Section 3655 of this title and the actual investment made
by the establishment multiplied by fourteen and four-tenths percent
(14.4%).
M. An establishment that otherwise qualifies for the use of
proceeds derived from the sale of obligations pursuant to subsection
A of this section resulting from a second irrevocable election shall
execute and deliver to the Oklahoma Development Finance Authority a
guaranty, or shall cause a guaranty to be executed and delivered by a
third party, in such form as the Authority may determine, for the
benefit of the Oklahoma Development Finance Authority in the event of
a deficit between the sum of the incentive payment and the
withholding taxes transferred to the Quality Jobs Program Incentive
Leverage Fund pursuant to Section 3659 of this title and the total
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amount required for the payment of principal, interest or other costs
associated with the obligations, proceeds from the sale of which are
paid to the establishment or are available for use by the
establishment. The Authority shall only accept a third-party
guaranty from an entity that has a net worth in excess of the net
worth of the establishment on behalf of which the guaranty is
provided. Payments received by the Oklahoma Development Finance
Authority pursuant to the provisions of this subsection and pursuant
to the terms of the guaranty shall be deposited into the Quality Jobs
Program Incentive Leverage Fund. The Oklahoma Development Finance
Authority shall require that the guaranty provide for such terms of
payment as may be required to make payments of principal, interest or
other costs in a timely manner to the entity or entities to which the
Authority is obligated to make payment. No revenues authorized to be
apportioned pursuant to Section 2352 of Title 68 of the Oklahoma
Statutes shall be transferred to the Quality Jobs Program Incentive
Leverage Fund until the terms of the guaranty have been invoked and
payment received or until the Oklahoma Development Finance Authority
determines an event of default under the terms of the guaranty.
N. The Oklahoma Development Finance Authority, in addition to
any other powers granted to it pursuant to the Oklahoma Development
Finance Authority Act, may pursue such remedies for the collection of
any debt owed to the Authority as authorized by this section as are
available to any creditor under the laws of the State of Oklahoma.
O. The provisions of the Oklahoma Development Finance Authority
Act shall be fully applicable to the obligations issued pursuant to
subsection A of this section and except insofar as the provisions of
this act are inconsistent with the provisions of the Oklahoma
Development Finance Authority Act, the Oklahoma Quality Jobs
Incentive Leverage Act shall supercede and govern all entities,
transactions, obligations, rights and remedies associated with such
obligations.
Added by Laws 2002, c. 299, § 4, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 3, eff. Nov. 1, 2008.
§68-3655. Proposed amount of investment and expenditure - Period
required for full expenditure - Determination of total principal
amount.
A. Within sixty (60) days after filing the second irrevocable
election pursuant to Section 3658 of this title, each establishment
that has filed such election shall provide to the Oklahoma
Development Finance Authority, on such form as may be prescribed by
the Authority for this purpose, the total amount of additional
investment and expenditure proposed by the establishment for the
additional modernization or retooling of a facility located within
the state owned by the establishment. The full amount of
expenditures qualifying for the use of proceeds pursuant to Section
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3654 of this title shall be made not later than five (5) years from
the date as of which the disclosure document required by this
subsection is filed, except as such period may be extended pursuant
to subparagraph e of paragraph 1 of Section 3653 of this title;
provided, such five-year-time period may be extended one time, for a
period not to exceed twelve (12) months, by the Oklahoma Department
of Commerce if the establishment makes a request for an extension and
provides the Department with a schedule of intended investment and
expenditure.
B. The Oklahoma Development Finance Authority shall evaluate the
information provided pursuant to subsection A of this section in
order to determine the total principal amount of the issuance or
issuances authorized by subsection A of Section 3654 of this title.
The total principal amount of any indebtedness issued by the
Authority shall not exceed an amount required in order to allow all
establishments that have made the disclosure required by subsection A
of this section to fully expend proceeds made available to the
establishment by the Authority, plus amounts required for repayment
of the obligations, if applicable, and the costs of the issuance.
Added by Laws 2002, c. 299, § 5, emerg. eff. May 23, 2002. Amended
by Laws 2007, c. 349, § 1, emerg. eff. June 4, 2007; Laws 2008, c.
182, § 4, eff. Nov. 1, 2008.
§68-3656. Use of Credit Enhancement Reserve Fund for issuance of
obligations.
A. The Oklahoma Development Finance Authority may use the Credit
Enhancement Reserve Fund in order to obtain favorable financing terms
for the issuance of obligations authorized by Section 3654 of this
title. The commitment from the Credit Enhancement Reserve Fund for
any such obligations shall not exceed Ten Million Dollars
($10,000,000.00).
B. For purposes of the issuance authorized by Section 3654 of
this title, the provisions of Section 5063.4c of Title 74 of the
Oklahoma Statutes shall not be applicable.
Added by Laws 2002, c. 299, § 6, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 5, eff. Nov. 1, 2008.
§68-3657. Quality Jobs Program Incentive Leverage Fund.
There is hereby created within the State Treasury a special fund
for the Oklahoma Development Finance Authority to be designated the
“Quality Jobs Program Incentive Leverage Fund”. All amounts
deposited into the fund shall be used and expended by the Oklahoma
Development Finance Authority solely for the purposes and in the
amounts authorized by the Oklahoma Quality Jobs Incentive Leverage
Act. The Oklahoma Development Finance Authority is hereby
specifically authorized and directed to use the monies transferred
from the Quality Jobs Program Incentive Leverage Fund for the payment
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of principal, interest and other costs associated with the issuance
of obligations pursuant to the provisions of this act. The Oklahoma
Development Finance Authority shall establish separate accounts
within the Quality Jobs Program Incentive Leverage Fund as may be
required to separately record transactions involving each
establishment that files an irrevocable election or second
irrevocable election pursuant to Section 3658 of this title and to
provide for the deposit of incentive payments, if applicable, and
withholding taxes apportioned to the Fund pursuant to Section 3659 of
this title or for such other purposes as the Authority may determine
to be necessary.
Added by Laws 2002, c. 299, § 7, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 6, eff. Nov. 1, 2008.
§68-3658. Irrevocable election to transfer incentive payments to
Fund - Claim and use of tax credits - Ineligibility for certain
exemptions.
A. An establishment, as defined in Section 3653 of this title,
which has been authorized to receive incentive payments pursuant to
the Oklahoma Quality Jobs Program Act prior to the effective date of
this act, and that intends to use proceeds derived from the sale of
obligations issued pursuant to Section 3654 of this title which
obligations are issued on or after the effective date of this act,
shall, as a condition of being eligible to make use of such proceeds,
file a second irrevocable election with the Oklahoma Department of
Commerce.
B. An establishment shall file its second irrevocable election
with the Oklahoma Department of Commerce not later than one hundred
eighty (180) days prior to the last date that withholding tax
revenues attributable to the payroll of the establishment are legally
required to be used in satisfaction of any debt service requirements
or related costs imposed pursuant to an issuance of obligations by
the Oklahoma Development Finance Authority if such issuance occurred
prior to the effective date of this act. Such second irrevocable
election shall be required in order for the establishment to be
eligible for use of any proceeds from the sale of additional
obligations authorized by Section 3654 of this title which
obligations are issued on or after the effective date of this act.
From the date upon which the second irrevocable election is filed
until the last date upon which withholding tax revenues attributable
to the payroll of the establishment are legally required to be used
in satisfaction of any debt service requirements or related costs
imposed as a result of obligations issued by the Oklahoma Development
Finance Authority prior to the effective date of this act, the five-
year period of time within which the establishment would otherwise be
required to make investment pursuant to this act shall be extended.
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C. Upon filing such second irrevocable election, any incentive
payments which would have been paid to the establishment pursuant to
the Oklahoma Quality Jobs Program Act after such filing shall be
deposited to the Quality Jobs Program Incentive Leverage Fund. Such
incentive payments shall be treated as an asset of the establishment
which has been paid to the State of Oklahoma for purposes of this
act.
D. Beginning upon the later date of July 1, 2009, or the first
date upon which the revenues payable to the Authority from the
Quality Jobs Program Incentive Leverage Fund are no longer committed
to the payment of debt service requirements and related costs in
connection with obligations issued by the Authority pursuant to the
Quality Jobs Incentive Leverage Act prior to the effective date of
this act, and for each fiscal year thereafter as otherwise required
by this act, monies transferred to the Quality Jobs Program Incentive
Leverage Fund shall be used for the payment of principal and interest
or other costs associated with the additional issuance of obligations
by the Oklahoma Development Finance Authority pursuant to the
provisions of Section 3654 of this title as a result of a second
irrevocable election. Not later than January 1 and July 1 of each
year, the Oklahoma Development Finance Authority shall certify to the
Oklahoma Department of Commerce and the Oklahoma Tax Commission the
amount which will be required for payment of principal, interest and
other costs associated with the issuance of such obligations for the
succeeding six-month period.
E. Beginning on the later date of July 1, 2009, or the first
date upon which the revenues payable to the Authority from the
Quality Jobs Program Incentive Leverage Fund are no longer committed
to the payment of debt service requirements and related costs in
connection with obligations issued by the Authority pursuant to the
Quality Jobs Incentive Leverage Act prior to the effective date of
this act, and for each fiscal year thereafter as otherwise required
by this act, as often as may be necessary for the Oklahoma
Development Finance Authority to make payments with respect to
indebtedness issued pursuant to the provisions of this act as a
result of a second irrevocable election, the Tax Commission shall
transfer from the revenues specified in Section 3659 of this title an
amount required to equal the difference between the incentive payment
deposit and the amount certified pursuant to the provisions of
subsection C of this section. The Tax Commission shall then transfer
the total amount required pursuant to the certification to the
Oklahoma Development Finance Authority.
F. An establishment to which proceeds from the sale of any
obligations issued by the Oklahoma Development Finance Authority are
made available as provided by this act pursuant to a second
irrevocable election shall not claim any tax credits that would
otherwise be authorized pursuant to Section 2357.4 of Title 68 of the
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Oklahoma Statutes as a result of jobs created or capital investment
made as a direct result of the use of such bond proceeds. For
purposes of this subsection and for purposes of computing any tax
credit pursuant to Section 2357.4 of Title 68 of the Oklahoma
Statutes, "bond proceeds" shall mean the amount transferred, paid or
made available to the establishment together with the total amount of
principal and interest paid by the Oklahoma Development Finance
Authority with respect to any amount of proceeds transferred, paid or
made available to the establishment.
G. An establishment that files a second irrevocable election
authorized by this section and to which proceeds from the sale of
obligations authorized by Section 3654 of this title are paid or made
available may utilize income tax credits earned prior to the
effective date of this act pursuant to Section 2357.4 of Title 68 of
the Oklahoma Statutes for a period of fifteen (15) taxable years
subsequent to the year in which the election is filed.
H. An establishment that files a second irrevocable election
authorized by this section and to which any proceeds from the sale of
obligations authorized by Section 3654 of this title are paid or made
available shall not be eligible to claim any exemption pursuant to
Section 6B of Article X of the Oklahoma Constitution or Section 2902
of Title 68 of the Oklahoma Statutes with respect to real or personal
property constituting the facility described by the establishment
pursuant to the disclosure document as provided by Section 3655 of
this title. The maximum amount of investment in any facility for
purposes of the foregone exemption required by this subsection shall
be Five Hundred Million Dollars ($500,000,000.00), inclusive of any
amounts invested prior to the effective date of this act.
I. An establishment that files a second irrevocable election
authorized by this section and to which any proceeds from the sale of
obligations authorized by Section 3654 of this title are paid or made
available shall not be eligible to claim any exemption otherwise
available pursuant to Section 1359 of Title 68 of the Oklahoma
Statutes with respect to the facility constructed, acquired, improved
or equipped with such proceeds. The provisions of this subsection
shall not require any waiver of sales tax exemption with respect to
personal property acquired for the manufacturing process after
completion of construction of the applicable facility.
Added by Laws 2002, c. 299, § 8, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 7, eff. Nov. 1, 2008.
§68-3659. Remitted withholding taxes - Transfer and apportionment.
A. Beginning on the later date of July 1, 2009, or the first
date upon which the revenues payable to the Authority from the
Quality Jobs Program Incentive Leverage Fund are no longer committed
to the payment of debt service requirements and related costs in
connection with obligations issued by the Authority pursuant to the
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Quality Jobs Incentive Leverage Act prior to the effective date of
this act, and for each fiscal year thereafter during which any
obligations issued by the Oklahoma Development Finance Authority
issued pursuant to Section 3654 of this title remain unpaid as a
result of a second irrevocable election, the Oklahoma Tax Commission
shall identify an establishment that makes the second irrevocable
election authorized by Section 3658 of this title and shall compute
the amount of withholding taxes imposed pursuant to Section 2385.2 of
Title 68 of the Oklahoma Statutes attributable to employees of that
establishment whose wages are subject to the levy.
B. Beginning on the later date of July 1, 2009, or the first
date upon which the revenues payable to the Authority from the
Quality Jobs Program Incentive Leverage Fund are no longer committed
to the payment of debt service requirements and related costs in
connection with obligations issued by the Authority pursuant to the
Quality Jobs Incentive Leverage Act prior to the effective date of
this act, and for each fiscal year thereafter during which any
obligations issued by the Oklahoma Development Finance Authority
issued pursuant to Section 3654 of this title as a result of a second
irrevocable election remain unpaid, the Oklahoma Tax Commission shall
transfer to the Quality Jobs Program Incentive Leverage Fund an
amount of withholding taxes remitted by an establishment which has
made the second irrevocable election equal to the amount required
pursuant to subsection E of Section 3658 of this title. With respect
to the withholding taxes remitted by an establishment that makes the
second irrevocable election pursuant to Section 3658 of this title,
the Tax Commission shall continue to transfer such taxes to the
Quality Jobs Program Incentive Leverage Fund for any period of time
after which the establishment files the second irrevocable election.
If the Oklahoma Development Finance Authority does not issue
obligations as a result of the second irrevocable election, the
establishment shall notify the Tax Commission and the Oklahoma
Development Finance Authority that further transfers of withholding
taxes remitted by the establishment to the Quality Jobs Program
Incentive Leverage Fund are not required.
C. Subject to the provisions of Section 11, Chapter 299, O.S.L.
2002, if the amount of the withholding taxes remitted by the
establishment is less than the amount required pursuant to subsection
E of Section 3658 of this title, the proceeds from the guaranty
required by subsection M of Section 3654 of this title shall be paid
to the Quality Jobs Program Incentive Leverage Fund.
D. After the amount of withholding taxes required to be
transmitted to the Quality Jobs Program Incentive Leverage Fund has
been computed, the remaining withholding tax remitted by a qualified
establishment shall be apportioned in the manner prescribed by law.
E. The amount of withholding taxes transferred to the Quality
Jobs Program Incentive Leverage Fund pursuant to this section shall
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be deemed not to have accrued to the State Treasury for purposes of
certifications required by the State Board of Equalization pursuant
to Section 23 of Article X of the Oklahoma Constitution and shall be
deemed to be monies held in trust for the benefit of the Oklahoma
Development Finance Authority in order to repay obligations issued by
the Authority pursuant to Section 3654 of this title.
F. The withholding taxes attributable to the wages of employees
of an establishment which has made the second irrevocable election
provided for by Section 3658 of this title shall be apportioned in
the manner prescribed by law as soon as all of the obligations of the
Oklahoma Development Finance Authority issued pursuant to Section
3654 of this title have been fully repaid and after such time the
provisions of this section shall cease to have the force and effect
of law.
Added by Laws 2002, c. 299, § 9, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 8, eff. Nov. 1, 2008.
§68-3660. Establishments ceasing to qualify for incentive payment -
Liability for payment of principal, interest or other costs.
A. An establishment making the second irrevocable election
pursuant to the provisions of Section 3658 of this title and which
ceases to qualify for an incentive payment pursuant to the provisions
of the Oklahoma Quality Jobs Program Act, other than a payment in the
amount of One Dollar ($1.00) as provided in paragraph 1 of subsection
D of Section 3658 of this title, and the withholding tax collections
of which are not sufficient to make required payments of principal or
interest because of a reduction in gross payroll at a facility
constructed with or equipped with personal property acquired through
the use of proceeds from the issuance of obligations by the Oklahoma
Development Finance Authority pursuant to the provisions of this act,
shall be liable to the State of Oklahoma and the Oklahoma Development
Finance Authority for the amount of any required principal or
interest payment associated with obligations issued as a result of a
second irrevocable election the proceeds of which have been paid to
the establishment or are available for use by the establishment that
remains after using the incentive payment plus the withholding taxes
of the establishment.
B. An establishment incurring an obligation for the payment of
any principal, interest or other costs pursuant to subsection A of
this section shall be liable only for amounts accrued during such
period of time. The establishment shall not have any direct
liability for subsequent periods of time during which the sum of the
incentive payment and the withholding tax collected from the
establishment is sufficient to make required payments in satisfaction
of the obligations issued pursuant to subsection A of Section 3654 of
this title.
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Added by Laws 2002, c. 299, § 10, emerg. eff. May 23, 2002. Amended
by Laws 2008, c. 182, § 9, eff. Nov. 1, 2008.
§68-3701. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3702. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3703. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3704. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3705. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3706. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3707. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3708. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3709. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3710. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3711. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3712. Repealed by Laws 2018, c. 156, § 2, eff. Nov. 1, 2018.
§68-3801. Short title.
Sections 1 through 8 of this act shall be known and may be cited
as the "Former Military Facility Development Act".
Added by Laws 1994, c. 363, § 1, eff. July 1, 1994.
§68-3802. Qualification for incentive payments - Definitions - Cost/
benefit analysis.
A. Except as otherwise provided by this section, an
establishment which meets the qualifications specified in the
Oklahoma Quality Jobs Program Act, Sections 3601 through 3609 of
Title 68 of the Oklahoma Statutes, except that the establishment:
1. Has an annual gross payroll for new direct jobs, as defined
in the Oklahoma Quality Jobs Program Act, projected by the Department
of Commerce to equal at least One Million Five Hundred Thousand
Dollars ($1,500,000.00) but less than Two Million Five Hundred
Thousand Dollars ($2,500,000.00) within three (3) years of the
anticipated date of receipt of first incentive payment; and
2. Locates its principal business activity at a former military
facility,
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may qualify for payments from the Former Military Facility Projects
Fund created in Section 3 of this act pursuant to approval by the
Oklahoma Department of Commerce. Such establishments shall be deemed
"former military facility projects".
B. Unless otherwise indicated in the Former Military Facility
Development Act, the definitions contained in Section 3603 of Title
68 of the Oklahoma Statutes shall apply to the Former Military
Facility Development Act.
C. As used in this section, "former military facility" shall
mean any tract or parcel of real property used primarily for a
military purpose during a state of war, armed conflict or during
peace time, title to which was vested in the United States
Government, any branch of the Armed Forces of the United States of
America or was subsequently conveyed by such entities to the State of
Oklahoma, any political subdivision of the State of Oklahoma, or any
public trust having the State of Oklahoma or any political
subdivision of the State of Oklahoma as its beneficiary, whether
singly or in combination with other government entities prior to the
date on which the establishment acquired its interest.
D. The Department shall determine if the applicant is qualified
to receive incentive payments.
E. If the applicant is determined to be qualified by the
Department of Commerce, the Department shall conduct a cost/benefit
analysis to determine the estimated net direct state benefits and the
net benefit rate applicable for a ten-year period and to estimate the
amount of gross payroll for a ten-year period. In conducting such
cost/benefit analysis, the Department shall consider quantitative
factors, such as the anticipated level of new tax revenues to the
state along with the added cost to the state of providing services,
and such other criteria as deemed appropriate by the Department. In
no event shall former military facility project payments,
cumulatively, exceed the estimated net direct state benefits.
Notwithstanding any other provision of law, when the maximum of Two
Million Five Hundred Thousand Dollars ($2,500,000.00) of projected
former military facility projects payments provided by Sections 1
through 8 of this act have been obligated to specific establishments
for a given fiscal year, then no additional application for such
payments may be considered by the Department of Commerce for that
fiscal year and in any event no payments in excess of said Two
Million Five Hundred Thousand Dollars ($2,500,000.00) shall be paid
by the Tax Commission within any fiscal year.
F. An establishment which meets the qualifications specified in
Sections 1 through 8 of this act may receive quarterly incentive
payments for a ten-year period from the Oklahoma Tax Commission
pursuant to the provisions of the Former Military Facility
Development Act in an amount which shall be equal to the net benefit
rate multiplied by the actual gross payroll of new direct jobs for a
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calendar quarter as verified by the Oklahoma Employment Security
Commission except as provided and limited by this section and in
Sections 3 and 4 of this act.
G. Upon approval of such an application, the Department shall
notify the Oklahoma Tax Commission and shall provide it with a copy
of the application and the results of the cost/benefit analysis. The
Tax Commission may require the qualified establishment to submit such
additional information as may be necessary to administer the
provisions of the Former Military Facility Development Act. The
approved establishment shall report to the Tax Commission
periodically to show its continued eligibility for incentive
payments, as provided in Section 4 of this act. The establishment
may be audited by the Tax Commission to verify such eligibility.
Once the establishment is approved, an agreement shall be deemed to
exist between the establishment and the State of Oklahoma, requiring
the continued payment to be made as long as the establishment retains
its eligibility as defined in and established pursuant to this
section and Sections 3 and 4 of this act and within the applicable
limitations contained in the Oklahoma Quality Jobs Program Act, which
existed at the time of such approval.
H. No incentive payments which would otherwise be authorized by
this section shall be made to an establishment occupying any lands
title to which has been held or title to which is held, at the time
of application for such payments, by any public trust created
pursuant to the provisions of Section 176 et seq. of Title 60 of the
Oklahoma Statutes if such trust is specifically excluded from the
definition of "state agency" or "agency of the state" by the
provisions of Section 33 of Title 25 of the Oklahoma Statutes or any
other provision of law.
Added by Laws 1994, c. 363, § 2, eff. July 1, 1994.
§68-3803. Former Military Facility Projects Fund.
There is hereby created within the State Treasury a special fund
for the Oklahoma Tax Commission to be designated the "Former Military
Facility Projects Fund". The Oklahoma Tax Commission is hereby
authorized and directed to withhold a portion of the taxes levied and
collected pursuant to Section 2355 of Title 68 of the Oklahoma
Statutes for deposit into the Fund. The amount deposited shall equal
the sum of an amount determined by multiplying the net benefit rate
provided by the Department of Commerce by the gross payroll of each
qualified military facility project establishment. All of the
amounts deposited in such Fund shall be used and expended by the Tax
Commission solely for the purposes and in the amounts authorized by
the Former Military Facility Development Act. Liability of the State
of Oklahoma to make the payments under the Former Military Facility
Development Act shall be limited to the balance contained in the Fund
created by this section. Provided, the Tax Commission may never pay
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more than Two Million Five Hundred Thousand Dollars ($2,500,000.00)
from the Fund in any one (1) fiscal year.
Added by Laws 1994, c. 363, § 3, eff. July 1, 1994.
§68-3804. Filing of claim - Issuance of warrant.
A. As soon as practicable after the end of a calendar quarter
for which an establishment has qualified to receive a payment from
the Former Military Facility Project Fund, the establishment shall
file a claim for the payment with the Oklahoma Tax Commission and
shall specify the actual number and gross payroll of new direct jobs
for the establishment for the calendar quarter. The Tax Commission
shall verify the actual gross payroll for new direct jobs for the
establishment for such calendar quarter. If the Tax Commission is
not able to provide such verification utilizing all available
resources, the Tax Commission may request such additional information
from the establishment as may be necessary or may request the
establishment to revise its claim.
B. If the actual verified gross payroll for four (4) consecutive
calendar quarters does not equal or exceed a total of One Million
Five Hundred Thousand Dollars ($1,500,000.00) within three (3) years
of the date of the first incentive payment, or does not equal or
exceed a total of One Million Five Hundred Thousand Dollars
($1,500,000.00) at any other time during the ten-year period after
the date the first payment was made, the incentive payments shall not
be made and shall not be resumed until such time as the actual
verified gross payroll equals or exceeds the amounts specified in
this subsection. Provided, in no event shall former military
facility projects payments, cumulatively for any individual
establishment, exceed the estimated net direct state benefits
determined by the Department to apply to the military facility
project establishment. Provided further, in no event shall the
former military projects facility payments exceed, cumulatively for
all qualifying establishments, payments in excess of Two Million Five
Hundred Thousand Dollars ($2,500,000.00) in any single fiscal year.
C. An establishment that has qualified pursuant to Section 2 of
this act may receive payments only in accordance with the provisions
under which it initially applied and was approved. If an
establishment that is receiving former military facility projects
payments expands, it may apply for additional incentive payments
based on the gross payroll anticipated from the expansion only,
pursuant to Section 3604 of Title 68 of the Oklahoma Statutes.
D. As soon as practicable after such verification, the Tax
Commission shall issue a warrant to the former military facility
project establishment in the amount of the net benefit rate
multiplied by the actual gross payroll as determined pursuant to
subsection A of this section for the calendar quarter.
Added by Laws 1994, c. 363, § 4, eff. July 1, 1994.
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§68-3805. Establishments receiving incentive payments not eligible
to receive certain tax credits and exemptions.
The prohibition set forth in Section 3607 of Title 68 of the
Oklahoma Statutes shall apply to an establishment which receives
incentive payments pursuant to the Former Military Facility
Development Act.
Added by Laws 1994, c. 363, § 5, eff. July 1, 1994.
§68-3806. Rulemaking.
The Department of Commerce and the Tax Commission shall
promulgate rules necessary to implement their respective duties and
responsibilities under the provisions of the Former Military Facility
Development Act.
Added by Laws 1994, c. 363, § 6, eff. July 1, 1994.
§68-3807. Fraud..
Any person making an application, claim for payment or any
report, return, statement or other instrument or providing any other
information pursuant to the provisions of the Former Military
Facility Development Act who willfully makes a false or fraudulent
application, claim, report, return, statement, invoice or other
instrument or who willfully provides any false or fraudulent
information, or any person who willfully aids or abets another in
making such false or fraudulent application, claim, report, return,
statement, invoice or other instrument or who willfully aids or abets
another in providing any false or fraudulent application, claim,
report, return, statement, invoice or other instrument or who
willfully aids or abets another in providing any false or fraudulent
information, upon conviction, shall be guilty of a felony punishable
by the imposition of a fine of not less than One Thousand Dollars
($1,000.00) and not more than Fifty Thousand Dollars ($50,000.00), or
imprisonment in the State Penitentiary for not less than two (2)
years and not more than five (5) years, or by both such fine and
imprisonment. Any person convicted of a violation of this section
shall be liable for the repayment of all incentive payments which
were paid to the establishment. Interest shall be due on such
payments at the rate of ten percent (10%) per annum.
Added by Laws 1994, c. 363, § 7, eff. July 1, 1994.
§68-3808. Report on effect of Former Military Facility Development
Act.
The Oklahoma Department of Commerce shall prepare triennially a
report which shall include, but not be limited to, documentation of
the new direct jobs created under the Former Military Facility
Development Act and a fiscal analysis of the costs and benefits of
the act to the state. The report shall be submitted to the President
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Pro Tempore of the Senate, the Speaker of the House of
Representatives and the Governor of this state no later than March 1,
1996, and every three (3) years thereafter. The report may be used
for the purpose of determining whether to continue or sunset the
Former Military Facility Development Act.
Added by Laws 1994, c. 363, § 8, eff. July 1, 1994. Amended by Laws
1996, c. 112, § 3, eff. Nov. 1, 1996.
§68-3901. Short title.
This act shall be known and may be cited as the "Small Employer
Quality Jobs Incentive Act".
Added by Laws 1997, c. 419, § 1, eff. Jan. 1, 1998.
§68-3902. Incentive payments.
It is the intent of the Legislature that:
1. The State of Oklahoma provide appropriate incentives to
support the creation of quality jobs, particularly by small
businesses, in basic industries in this state;
2. The incentives provided be directly related to quality jobs
created as a result of a business locating or expanding in this
state;
3. The Oklahoma Department of Commerce and the Oklahoma Tax
Commission implement the provisions of this act and exercise all
powers as authorized in this act. The exercise of powers conferred
by this act shall be deemed and held to be the performance of
essential public purposes; and
4. Nothing herein shall be construed to constitute a guarantee
or assumption by the State of Oklahoma of any debt of any individual,
company, corporation or association nor to authorize the credit of
the State of Oklahoma to be given, pledged or loaned to any
individual, company, corporation or association.
Added by Laws 1997, c. 419, § 2, eff. Jan. 1, 1998.
§68-3903. Definitions.
As used in the Small Employer Quality Jobs Incentive Act:
1. "Basic industry" means a basic industry as defined under the
Oklahoma Quality Jobs Program Act in divisions (1) through (9) of
subparagraph a of paragraph 1 of subsection A of Section 3603 of this
title, excluding those activities described in division (10) of
subparagraph a of paragraph 1 of subsection A of Section 3603 of this
title. Provided, for the purposes of the Small Employer Quality Jobs
Incentive Act, the determination required by subdivision (b) of
division (7) or division (8) of subparagraph a of paragraph 1 of
subsection A of Section 3603 of this title shall be made by the
Oklahoma Department of Commerce and not the Incentive Approval
Committee;
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2. "Establishment" means any business, no matter what legal
form, including, but not limited to, a sole proprietorship,
partnership, corporation, or limited liability corporation;
3. "Estimated direct state benefits" means the tax revenues
projected by the Oklahoma Department of Commerce to accrue to the
state as a result of new direct jobs;
4. "Estimated direct state costs" means the costs projected by
the Department to accrue to the state as a result of new direct jobs.
Such costs shall include, but not be limited to:
a. the costs of education of new state resident children,
b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to new
state residents, and
d. the costs of other state services;
5. "Estimated net direct state benefits" means the estimated
direct state benefits less the estimated direct state costs;
6. "Full-time employment" means employment of persons residing
in this state and working for thirty (30) hours per week or more in
this state, which has a minimum six-month duration during any twelve-
month period;
7. "Gross taxable payroll" means wages, as defined in Section
2385.1 of this title, for new direct jobs;
8. "Net benefit rate" means the estimated net direct state
benefits computed as a percentage of gross payroll; provided:
a. the net benefit rate may be variable and shall not
exceed five percent (5%), and
b. in no event shall incentive payments, cumulatively,
exceed the estimated net direct state benefits; and
9. "New direct job" means full-time employment which did not
exist in this state prior to the date of approval, by the Oklahoma
Department of Commerce, of an application made pursuant to the Small
Employer Quality Jobs Incentive Act. A job shall be deemed to exist
in this state prior to approval of an application if the activities
and functions for which the particular job exists have been ongoing
at any time within six (6) months prior to such approval.
Added by Laws 1997, c. 419, § 3, eff. Jan. 1, 1998. Amended by Laws
2002, c. 308, § 2, eff. July 1, 2002; Laws 2003, c. 377, § 3, emerg.
eff. June 4, 2003; Laws 2005, c. 352, § 2, eff. July 1, 2005; Laws
2006, c. 281, § 34, eff. July 1, 2006; Laws 2013, c. 227, § 27, eff.
Nov. 1, 2013; Laws 2014, c. 128, § 1, eff. July 1, 2014.
§68-3904. Incentive payments.
A. An establishment which meets the qualifications specified in
the Small Employer Quality Jobs Incentive Act may receive quarterly
incentive payments for a seven-year period from the Oklahoma Tax
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Commission pursuant to the provisions of the Small Employer Quality
Jobs Incentive Act in an amount equal to the net benefit rate
multiplied by the actual gross taxable payroll of new direct jobs as
verified by the Tax Commission.
B. In order to receive incentive payments, an establishment
shall apply to the Oklahoma Department of Commerce. The application
shall be on a form prescribed by the Department and shall contain
such information as may be required by the Department to determine if
the applicant is qualified. The establishment may apply for an
effective date for a project, which shall not be more than twelve
(12) months from the date the application is submitted to the
Department.
C. Before approving an application for incentive payments, the
Department must first determine that the applicant meets the
following requirements:
1. Be engaged in a basic industry;
2. Has no more than five hundred full-time employees in this
state on the date of application nor an average of more than five
hundred full-time employees in this state during the four calendar
quarters immediately preceding the date of application;
3. Has a projected minimum employment, as determined by the
Department, of new direct jobs within twelve (12) months of the date
of application, or after July 1, 2011, within twenty-four (24) months
of the date of application, as follows:
a. if the establishment is located in a municipality with
a population less than three thousand five hundred
(3,500) persons, as determined by the Department of
Commerce based on the most recent U.S. Department of
Commerce data, or if the establishment is located in an
unincorporated area and the largest municipality within
twenty (20) miles of the establishment is such a
municipality, new direct jobs equal to the greater of
five (5) jobs or five percent (5%) of the company's
full-time employment at the date of application,
b. if the establishment is located in a municipality with
a population of three thousand five hundred (3,500)
persons or more but less than seven thousand (7,000)
persons, as determined by the Department of Commerce
based on the most recent U.S. Department of Commerce
data, or if the establishment is located in an
unincorporated area and the largest municipality within
twenty (20) miles of the establishment is such a
municipality, new direct jobs equal to the greater of
ten (10) jobs or seven and one-half percent (7.5%) of
the company's full-time employment at the date of the
application, and
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c. if the establishment is located in a municipality with
a population of seven thousand (7,000) persons or more,
as determined by the Department of Commerce based on
the most recent U.S. Department of Commerce data, or if
the establishment is located in an unincorporated area
and the largest municipality within twenty (20) miles
of the establishment is such a municipality, new direct
jobs equal to the greater of fifteen (15) jobs or ten
percent (10%) of the company's full-time employment at
the date of application.
Provided, for an establishment engaged in software publishing as
defined or classified in the NAICS Manual under Industry Group No.
5112, data processing, hosting and related services as defined or
classified in the NAICS Manual under Industry Group No. 5182,
computer systems design and related services as defined or classified
in the NAICS Manual under Industry Group No. 5415, scientific
research and development services as defined or classified in the
NAICS Manual under Industry Group No. 5417, medical and diagnostic
laboratories as defined or classified in the NAICS Manual under
Industry Group No. 6215 or testing laboratories as defined or
classified in the NAICS Manual under U.S. Industry No. 541380, the
projected minimum employment requirements of this paragraph must be
achieved within thirty-six (36) months of the date of application;
4. Has or will have within twelve (12) months of the date of
application, or after July 1, 2011, within twenty-four (24) months of
the date of application, as determined by the Department, sales of at
least thirty-five percent (35%) for the first two (2) years and
subsequently sixty percent (60%) of its total sales to out-of-state
customers or buyers, to in-state customers or buyers if the product
or service is resold by the purchaser to an out-of-state customer or
buyer for ultimate use, or to the federal government, except that:
a. those establishments in the NAICS Manual under the U.S.
Industry No. 541710 or 541380 are excused from the out-
of-state sales requirement,
b. warehouses that serve as distribution centers for
retail or wholesale businesses shall be required to
distribute forty percent (40%) of inventory to out-of-
state locations, and
c. adjustment and collection services activities defined
or classified in the NAICS Manual under U.S. Industry
No. 561440 shall be required to have seventy-five
percent (75%) of loans to be serviced made by out-of-
state debtors;
5. Will pay the individuals it employs in new direct jobs an
average annualized wage which equals or exceeds:
a. one hundred twenty-five percent (125%) of the average
county wage of small employers located in that county
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as that percentage is determined by the Department of
Commerce based on the most recent wage and employment
data from the Oklahoma Employment Security Commission
for the county in which the new direct jobs are
located. For purposes of this subparagraph, health
care premiums paid by the applicant for individuals in
new direct jobs shall be included in the annualized
wage, or
b. one hundred ten percent (110%) of the average county
wage of small employers located in that county as that
percentage is determined by the Department of Commerce
based upon the most recent wage and employment data
from the Oklahoma Employment Security Commission for
the county in which the new direct jobs are located.
For purposes of this subparagraph, health care premiums
paid by the applicant for individuals in new direct
jobs shall not be included in the annualized wage, or
c. one hundred percent (100%) of the average county wage,
excluding health care premiums paid by the applicant
for individuals in new direct jobs if the county in
which the new jobs are located has:
(1) according to the most recent annual determination
by the Oklahoma Employment Security Commission, a
county unemployment rate more than ten percent
(10%) higher than the state unemployment rate, and
(2) according to the most recent United States Census
Bureau Data, a county personal poverty rate above
fifteen percent (15%);
6. Has a basic health benefit plan which, as determined by the
Department, meets the elements established under divisions (1)
through (7) of subparagraph b of paragraph 1 of subsection A of
Section 3603 of this title and which will be offered to individuals
within twelve (12) months of employment in a new direct job;
7. Has not received incentive payments under the Oklahoma
Quality Jobs Program Act, the Saving Quality Jobs Act, or the Former
Military Facility Development Act; and
8. Is not qualified for approval of an application for incentive
payments under the Oklahoma Quality Jobs Program Act, the Saving
Quality Jobs Act, or the Former Military Facility Development Act.
D. The Oklahoma Department of Commerce shall determine if an
applicant is qualified to receive the incentive payment. Upon
qualifying the applicant, the Department shall notify the Tax
Commission and shall provide it with a copy of the application, and
approval which shall provide the number of persons employed by the
applicant upon the date of approval and the maximum total incentives
which may be paid to the applicant during the seven-year period. The
Tax Commission may require the qualified establishment to submit
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additional information as may be necessary to administer the
provisions of the Small Employer Quality Jobs Incentive Act. The
approved establishment shall report to the Tax Commission quarterly
to show its continued eligibility for incentive payments, as provided
in Section 3905 of this title. Establishments may be audited by the
Tax Commission to verify such eligibility. Once the establishment is
approved, an agreement shall be deemed to exist between the
establishment and the State of Oklahoma, requiring incentive payments
to be made for a seven-year period as long as the establishment
retains its eligibility and within the limitations of the Small
Employer Quality Jobs Incentive Act which existed at the time of such
approval. Any establishment which has been approved for incentive
payments prior to July 1, 2002, shall continue to receive such
payments pursuant to the laws as they existed prior to July 1, 2002,
for any period of time of the original five-year period for such
payments remaining after July 1, 2002.
E. For any contract executed by an establishment on or after
August 2, 2018, five percent (5%) of the quarterly incentive payment
amount shall be transferred by the Oklahoma Tax Commission to the
Oklahoma Quick Action Closing Fund.
Added by Laws 1997, c. 419, § 4, eff. Jan. 1, 1998. Amended by Laws
1998, c. 379, § 4, eff. July 1, 1998; Laws 1999, c. 67, § 1, emerg.
eff. April 7, 1999; Laws 2002, c. 308, § 3, eff. July 1, 2002; Laws
2003, c. 377, § 4, emerg. eff. June 4, 2003; Laws 2004, c. 457, § 4,
eff. July 1, 2004; Laws 2005, c. 352, § 3, eff. July 1, 2005; Laws
2006, c. 256, § 1, eff. July 1, 2006; Laws 2007, c. 1, § 67, emerg.
eff. Feb. 22, 2007; Laws 2007, c. 357, § 3, eff. July 1, 2007; Laws
2010, c. 254, § 1, eff. Jan. 1, 2011; Laws 2013, c. 227, § 28, eff.
Nov. 1, 2013; Laws 2018, c. 191, § 1, eff. Nov. 1, 2018; Laws 2019,
c. 25, § 42, emerg. eff. April 4, 2019; Laws 2019, c. 197, § 1, eff.
July 1, 2019.
NOTE: Laws 2006, c. 281, § 35 repealed by Laws 2007, c. 1, § 68,
emerg. eff. Feb. 22, 2007. Laws 2018, c. 144, § 3 repealed by Laws
2019, c. 25, § 43, emerg. eff. April 4, 2019.
§68-3905. Quarterly reports to Commission - Quarterly incentive
payments.
A. 1. Beginning with the first complete calendar quarter after
the application of the establishment is approved by the Oklahoma
Department of Commerce, the establishment shall begin filing
quarterly reports with the Oklahoma Tax Commission that specify the
actual number and individual gross taxable payroll of new direct jobs
for the establishment and such other information as required by the
Tax Commission. In no event shall the first claim for incentive
payments be filed later than three (3) years from the start date
designated by the Department. The Tax Commission shall verify the
actual individual gross taxable payroll for new direct jobs. If the
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Tax Commission is not able to provide such verification utilizing all
available resources, the Tax Commission may request additional
information from the establishment as may be necessary or may request
the establishment to revise its reports.
The establishment shall continue filing such reports during the
seven-year incentive period or until it is no longer qualified to
receive incentive payments. Such reports shall constitute a claim
for quarterly incentive payments by the establishment.
2. Upon receipt of a report for the initial calendar quarter of
the incentive period and for each subsequent calendar quarter
thereafter, the Tax Commission shall determine if the establishment
has met the following requirements:
a. created and or maintained the minimum number of new
direct jobs as specified in paragraph 3 of subsection C
of Section 3904 of this title, and
b. paid the individuals it employed in new direct jobs an
annualized wage which equaled or exceeded the
applicable percentage of the average county wage as
that percentage was determined by the Oklahoma
Department of Commerce upon approval of the
application.
3. Upon determining that an establishment has met the
requirements of paragraph 2 of this subsection for the initial
calendar quarter of the incentive period, the Tax Commission shall
issue a warrant to the establishment in an amount which shall be
equal to the net benefit rate multiplied by the amount of gross
taxable payroll of new direct jobs actually paid by the
establishment.
B. Except as provided in subsection C of this section, the
quarterly incentive payment provided for in subsection A of this
section shall be allowed in each of the twenty-seven subsequent
calendar quarters.
C. 1. An establishment which does not meet the requirements of
paragraph 2 of subsection A of this section within twelve (12) months
of the date of its application, or after July 1, 2011, within twenty-
four (24) months of the date of its application, shall be ineligible
to receive any incentive payments pursuant to its application and
approval.
2. An establishment which at any time during the twenty-seven
subsequent calendar quarters does not meet the requirements of
paragraph 2 of subsection A of this section shall be ineligible to
receive an incentive payment during the calendar quarter in which
such requirements are not met.
Added by Laws 1997, c. 419, § 5, eff. Jan. 1, 1998. Amended by Laws
1999, c. 67, § 2, emerg. eff. April 7, 1999; Laws 2002, c. 308, § 4,
eff. July 1, 2002; Laws 2006, c. 281, § 36, eff. July 1, 2006; Laws
2010, c. 254, § 2, eff. Jan. 1, 2011.
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§68-3906. Small Employer Quality Jobs Incentive Payment Fund.
There is hereby created within the State Treasury a special fund
for the Oklahoma Tax Commission to be designated the "Small Employer
Quality Jobs Incentive Payment Fund". The Tax Commission is hereby
authorized and directed to withhold a portion of the taxes levied and
collected pursuant to Section 2355 of Title 68 of the Oklahoma
Statutes for deposit into the fund. The amount deposited shall equal
the sum estimated by the Tax Commission to be sufficient to pay
incentive payments claimed pursuant to the provisions of Section 5 of
this act. All of the amounts deposited in such fund shall be used
and expended by the Tax Commission solely for the purposes and in the
amounts authorized by the Small Employer Quality Jobs Incentive Act.
The liability of the State of Oklahoma to make incentive payments
under this act shall be limited to the balance contained in the fund
created by this section.
Added by Laws 1997, c. 419, § 6, eff. Jan. 1, 1998.
§68-3907. Rulemaking authority.
The Oklahoma Department of Commerce and the Oklahoma Tax
Commission shall promulgate rules necessary to implement their
respective duties and responsibilities under the provisions of this
act.
Added by Laws 1997, c. 419, § 7, eff. Jan. 1, 1998.
§68-3908. Violations and penalties.
Any person making an application, claim for payment or any
report, return, statement, invoice, or other instrument or providing
any other information pursuant to the provisions of this act who
willfully makes a false or fraudulent application, claim, report,
return, statement, invoice, or other instrument or who willfully
provides any false or fraudulent information, or any person who
willfully aids or abets another in making such false or fraudulent
application, claim, report, return, statement, invoice, or other
instrument or who willfully aids or abets another in providing any
false or fraudulent information, upon conviction, shall be guilty of
a felony. The fine for a violation of this provision shall not be
less than One Thousand Dollars ($1,000.00) nor more than Fifty
Thousand Dollars ($50,000.00). Any person convicted of a violation
of this section shall be liable for the repayment of all incentive
payments which were paid to the establishment. Interest shall be due
on such payments at the rate of ten percent (10%) per annum.
Added by Laws 1997, c. 419, § 8, eff. Jan. 1, 1998.
§68-3909. Establishment receiving incentive payment and its
contractors and subcontractors ineligible to receive certain tax
credits and exemptions.
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Notwithstanding any other provision of law, if a qualified
establishment receives an incentive payment pursuant to the
provisions of this act, neither the qualified establishment nor its
contractors or subcontractors shall be eligible to receive the
credits or exemptions provided for in the following provisions of law
in connection with the activity for which the incentive payment was
received:
1. Paragraphs 16 and 17 of Section 1357 of this title;
2. Paragraph 8 of Section 1359 of this title;
3. Section 2357.4 of this title;
4. Section 2357.7 of this title;
5. Section 2-11-303 of Title 27A of the Oklahoma Statutes;
6. Section 2357.22 of this title;
7. Section 2357.31 of this title;
8. Section 54003 of this title;
9. Section 54006 of this title;
10. Section 625.1 of Title 36 of the Oklahoma Statutes; or
11. Subsections C and D of Section 2357.59 of this title.
Added by Laws 1997, c. 419, § 9, eff. Jan. 1, 1998. Amended by Laws
2008, c. 406, § 8, eff. Nov. 1, 2008.
§68-3910. Triennial report.
The Oklahoma Department of Commerce shall prepare triennially a
report which shall include, but not be limited to, documentation of
the new direct jobs created under the Small Employer Quality Jobs
Incentive Act and a fiscal analysis of the costs and benefits of the
act to the state. The report shall be submitted to the President Pro
Tempore of the Senate, the Speaker of the House of Representatives
and the Governor no later than March 1, 2001, and every three (3)
years thereafter. The report may be used for the purpose of
determining whether to continue or sunset the Small Employer Quality
Jobs Incentive Act.
Added by Laws 1997, c. 419, § 10, eff. Jan. 1, 1998.
§68-3911. Short title.
This act shall be known and may be cited as the "21st Century
Quality Jobs Incentive Act".
Added by Laws 2009, c. 285, § 1, eff. Nov. 1, 2009.
§68-3912. Legislative intent.
It is the intent of the Legislature that:
1. The State of Oklahoma provide appropriate incentives to
attract growth industries and sectors to Oklahoma in the twenty-first
century through a policy of rewarding businesses with a highly
skilled, knowledge-based workforce;
2. The Oklahoma Department of Commerce and the Oklahoma Tax
Commission implement the provisions of this act and exercise all
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powers as authorized in this act. The exercise of powers conferred
by this act shall be deemed and held to be the performance of
essential public purposes; and
3. Nothing herein shall be construed to constitute a guarantee
or assumption by the State of Oklahoma of any debt of any individual,
company, corporation or association nor to authorize the credit of
the State of Oklahoma to be given, pledged or loaned to any
individual, company, corporation or association.
Added by Laws 2009, c. 285, § 2, eff. Nov. 1, 2009.
§68-3913. Definitions.
As used in the 21st Century Quality Jobs Incentive Act:
1. "Basic industry" means:
a. a basic industry as defined under the Oklahoma Quality
Jobs Program Act in divisions (1) through (9) of
subparagraph a of paragraph 1 of subsection A of
Section 3603 of Title 68 of the Oklahoma Statutes,
excluding those activities described in division (10)
of subparagraph a of paragraph 1 of subsection A of
Section 3603 of Title 68 of the Oklahoma Statutes. For
the purposes of this act, if a determination is
required by subdivision (b) of division (7) or by
division (9) of subparagraph a of paragraph 1 of
subsection A of Section 3603 of Title 68 of the
Oklahoma Statutes, such determination shall be:
(1) made by the Oklahoma Department of Commerce and
not by the Incentive Approval Committee, and
(2) based on a requirement that those industries that
are required to have at least seventy-five percent
(75%) of total sales to out-of-state customers or
buyers for purposes of the Quality Jobs Program
Act shall only be required to have fifty percent
(50%) of total sales, as determined by the
Department of Commerce, to out-of-state customers
or buyers, to in-state customers or buyers if the
product or service is resold by the purchaser to
an out-of-state customer or buyer for ultimate
use, or to the federal government, for the
purposes of this act,
b. (1) those specialty hospitals (except psychiatric and
substance abuse hospitals) defined or classified
in the NAICS Manual under U.S. Industry Group No.
62231, and
(2) those performing arts companies defined or
classified in the NAICS Manual under U.S. Industry
Group No.7111, and
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c. an establishment classified in this subparagraph which
has or will have within one (1) year sales of at least
fifty percent (50%) of its total sales, as determined
by the Department of Commerce, to out-of-state
customers or buyers, to in-state customers or buyers if
the product or service is resold by the purchaser to an
out-of-state customer or buyer for ultimate use, or to
the federal government:
(1) those electric utility activities defined or
classified in the NAICS Manual under U.S. Industry
Group No. 2211 which meet the requirements of
subdivisions a, b and d of division 2 of
subparagraph a of paragraph 1 of Section 3603 of
Title 68 of the Oklahoma Statutes,
(2) those heavy and civil engineering construction
activities defined or classified in the NAICS
Manual under U.S. Industry Group No. 237,
(3) those motion picture and video industries defined
or classified in the NAICS Manual under U.S.
Industry Group No. 5121,
(4) those sound recording industries defined or
classified in the NAICS Manual under U.S. Industry
Group No. 5122,
(5) those securities, commodity contracts and other
financial investment activities defined or
classified in the NAICS Manual under U.S. Industry
Group No. 523,
(6) those insurance carriers and related activities
defined or classified in the NAICS Manual under
U.S. Industry Group No. 524,
(7) those funds, trusts and other financial vehicles
defined or classified in the NAICS Manual under
U.S. Industry Group No. 525,
(8) those professional, scientific and technical
services defined or classified in the NAICS Manual
under U.S. Industry Group Nos. 5411, 5412, 5413,
5414, 5418 and 5419, and
(9) those electronic and precision equipment repair
and maintenance activities defined or classified
in the NAICS Manual under U.S. Industry Group No.
8112;
2. "Establishment" means any business, no matter what legal
form, including, but not limited to, a sole proprietorship,
partnership, corporation, or limited liability corporation;
3. "Estimated direct state benefits" means the tax revenues
projected by the Oklahoma Department of Commerce to accrue to the
state as a result of new direct jobs;
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4. “Estimated indirect state benefits” means the indirect new
tax revenues projected by the Oklahoma Department of Commerce to
accrue to the state, including, but not limited to, revenue generated
from ancillary support jobs directly related to the establishment;
5. "Estimated direct state costs" means the costs projected by
the Department to accrue to the state as a result of new direct jobs.
Such costs shall include, but not be limited to:
a. the costs of education of new state resident children,
b. the costs of public health, public safety and
transportation services to be provided to new state
residents,
c. the costs of other state services to be provided to new
state residents, and
d. the costs of other state services;
6. “Estimated indirect state costs” means the costs projected by
the Department to accrue to the state as a result of new indirect
jobs. Such costs shall include, but not be limited to, costs
enumerated in subparagraphs a, b, c and d of paragraph 5 of this
subsection;
7. "Estimated net direct state benefits" means the estimated
direct state benefits less the estimated direct state costs;
8. “Estimated net direct and indirect state benefits” means the
estimated direct and indirect state benefits less the estimated
direct and indirect state costs;
9. "Full-time employment" means employment of persons residing
in this state and working for thirty (30) hours per week or more in
this state, which has a minimum six-month duration during any twelve-
month period;
10. "Gross taxable payroll" means wages, as defined in Section
2385.1 of Title 68 of the Oklahoma Statutes, for new direct jobs;
11. "Initial net benefit rate" means the estimated net direct
state benefits computed as a percentage of gross payroll; provided:
a. the initial net benefit rate may be variable and shall
not exceed seven percent (7%), and
b. in no event shall incentive payments, cumulatively,
exceed the estimated net direct state benefits; and
12. "Fulfillment net benefit rate" means the estimated net
direct and indirect state benefits computed as a percentage of gross
payroll after the completion of the first twelve (12) quarters or
until the establishment reaches ten new direct jobs, whichever occurs
first, provided:
a. the fulfillment net benefit rate may be variable and
shall not exceed ten percent (10%), and
b. in no event shall incentive payments, cumulatively,
exceed the estimated net direct and indirect state
benefits; and
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13. "New direct job" means full-time employment which did not
exist in this state prior to the date of approval, by the Oklahoma
Department of Commerce, of an application made pursuant to this act.
A job shall be deemed to exist in this state prior to approval of an
application if the activities and functions for which the particular
job exists have been ongoing at anytime within six (6) months prior
to such approval.
Added by Laws 2009, c. 285, § 3, eff. Nov. 1, 2009.
§68-3914. Incentive payments.
A. Except for the payment amount required by subsection E of
this section, an establishment which meets the qualifications
specified in the 21st Century Quality Jobs Incentive Act may receive
quarterly incentive payments for a ten-year period from the Oklahoma
Tax Commission pursuant to the provisions of this act, as verified by
the Tax Commission, in an amount equal to:
1. The gross payroll multiplied by the initial net benefit rate
until such time as the establishment creates ten new direct jobs; or
2. The gross payroll multiplied by the fulfillment net benefit
rate after such time as the establishment created and maintains ten
new direct jobs.
B. In order to receive incentive payments, an establishment
shall apply to the Oklahoma Department of Commerce. The application
shall be on a form prescribed by the Department and shall contain
such information as may be required by the Department to determine if
the applicant is qualified. The establishment may apply for an
effective date for a project, which shall not be more than twelve
(12) months from the date the application is submitted to the
Department.
C. Before approving an application for incentive payments, the
Department must first determine that the applicant meets the
following requirements:
1. Be engaged in a basic industry as defined in the 21st Century
Quality Jobs Incentive Act;
2. Will hire at least ten full-time employees in this state
within twelve (12) quarters of the date of application;
3. Will pay the individuals it employs in new direct jobs an
average annualized wage which equals or exceeds three hundred percent
(300%) of the average county wage for the county in which the
applicant is located as that percentage is determined by the
Department of Commerce based on the most recent U.S. Department of
Commerce data. For purposes of this paragraph, health care premiums
paid by the applicant for individuals in new direct jobs shall not be
included in the annualized wage. Provided, no average wage
requirement shall exceed Ninety-four Thousand Dollars ($94,000.00) in
any county. This maximum wage threshold shall be indexed and
modified from time to time based on the latest Consumer Price Index
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year-to-date percent change release as of the date of the annual
average county wage data release from the Bureau of Economic Analysis
of the U.S. Department of Commerce;
4. Has a basic health benefit plan which, as determined by the
Department, meets the elements established under divisions (1)
through (7) of subparagraph b of paragraph 1 of subsection A of
Section 3603 of this title and which will be offered to individuals
within twelve (12) months of employment in a new direct job;
5. Has not received incentive payments under the Small Employer
Quality Jobs Program Act, the Saving Quality Jobs Act or the Former
Military Facility Development Act; and
6. Is not qualified for approval of an application for incentive
payments under the Small Employer Quality Jobs Program Act, the
Saving Quality Jobs Act or the Former Military Facility Development
Act.
D. The Oklahoma Department of Commerce shall determine if an
applicant is qualified to receive the incentive payment. Upon
qualifying the applicant, the Department shall notify the Tax
Commission and shall provide it with a copy of the contract and
approval which shall provide the number of persons employed by the
applicant upon the date of approval and the maximum total incentives
which may be paid to the applicant during the ten-year period. The
Tax Commission may require the qualified establishment to submit
additional information as may be necessary to administer the
provisions of this act. The approved establishment shall report to
the Tax Commission quarterly to show its continued eligibility for
incentive payments, as provided in Section 3905 of this title.
Establishments may be audited by the Tax Commission to verify such
eligibility. Once the establishment is approved, an agreement shall
be deemed to exist between the establishment and the State of
Oklahoma, requiring incentive payments to be made for a ten-year
period as long as the establishment retains its eligibility and
within the limitations of this act as it existed at the time of such
approval.
E. For any contract executed by an establishment on or after the
effective date of this act, five percent (5%) of the quarterly
incentive payment amount shall be transferred by the Oklahoma Tax
Commission to the Oklahoma Quick Action Closing Fund.
Added by Laws 2009, c. 285, § 4, eff. Nov. 1, 2009. Amended by Laws
2013, c. 378, § 4, eff. Nov. 1, 2013; Laws 2014, c. 4, § 24, emerg.
eff. April 2, 2014; Laws 2018, c. 144, § 4.
NOTE: Laws 2013, c. 227, § 29 repealed by Laws 2014, c. 4, § 25,
emerg. eff. April 2, 2014.
§68-3915. Quarterly reports.
A. 1. Beginning with the first complete calendar quarter after
the application of the establishment is approved by the Oklahoma
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Department of Commerce, the establishment shall begin filing
quarterly reports with the Oklahoma Tax Commission that specify the
actual number and individual gross taxable payroll of new direct jobs
for the establishment and such other information as required by the
Tax Commission. In no event shall the first claim for incentive
payments be filed later than three (3) years from the start date
designated by the Department. The Tax Commission shall verify the
actual individual gross taxable payroll for new direct jobs. If the
Tax Commission is not able to provide such verification utilizing all
available resources, the Tax Commission may request additional
information from the establishment as may be necessary or may request
the establishment to revise its reports.
The establishment shall continue filing such reports during the
ten-year incentive period or until it is no longer qualified to
receive incentive payments. Such reports shall constitute a claim
for quarterly incentive payments by the establishment.
2. Upon receipt of a report for the initial calendar quarter of
the incentive period and for each subsequent calendar quarter
thereafter, the Tax Commission shall determine if the establishment
has met the following requirements:
a. during the initial twelve (12) quarters of the contract
or until the establishment creates ten new direct jobs,
paid the individuals it employed in new direct jobs an
average annualized wage that exceeded the requirements
of paragraph 3 of subsection C of Section 3914 of this
title, or
b. after the establishment created ten new direct jobs:
(1) paid the individuals it employed in new direct
jobs an average annualized wage which equaled or
exceeded the requirements of paragraph 3 of
subsection C of Section 3914 of this title, and
(2) created and/or maintained the minimum number of
new direct jobs as specified in the 21st
Century
Quality Jobs Incentive Act.
3. Upon determining that an establishment has met the
requirements of paragraph 2 of this subsection for the initial
calendar quarter of the incentive period, the Tax Commission shall
issue a warrant to the establishment in an amount which shall be
equal to either:
a. the initial net benefit rate multiplied by the amount
of gross taxable payroll of new direct jobs actually
paid by the establishment during the initial twelve
(12) quarters of the contract or until the
establishment reaches ten new direct jobs, whichever
comes first, or
b. the fulfillment net benefit rate multiplied by the
amount of gross taxable payroll of new direct jobs
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actually paid by the establishment after it creates or
maintains ten new direct jobs.
B. Except as provided in subsection C of this section, the
quarterly incentive payment provided for in subsection A of this
section shall be allowed in each of the thirty-nine (39) subsequent
calendar quarters.
C. 1. An establishment which does not meet the requirements of
paragraph 2 of subsection A of this section within twelve (12)
quarters of the date of its application shall be ineligible to
receive any incentive payments pursuant to its application and
approval.
2. An establishment which at any time during the thirty-nine
(39) subsequent calendar quarters does not meet the requirements of
paragraph 2 of subsection A of this section shall be ineligible to
receive an incentive payment during the calendar quarter in which
such requirements are not met.
3. An establishment which has met the requirements of paragraph
2 of subsection A of this section within twelve (12) quarters of the
date of its application, but which at any time during the subsequent
twenty-eight (28) quarters fails to meet the requirements of
paragraph 2 of subsection A of this section in four (4) consecutive
quarters, shall be ineligible to receive any further incentive
payments pursuant to its application and approval.
Added by Laws 2009, c. 285, § 5, eff. Nov. 1, 2009. Amended by Laws
2011, c. 341, § 1, eff. Nov. 1, 2011.
§68-3916. 21st Century Quality Jobs Incentive Payment Fund.
There is hereby created within the State Treasury a special fund
for the Oklahoma Tax Commission to be designated the "21st Century
Quality Jobs Incentive Payment Fund". The Tax Commission is hereby
authorized and directed to withhold a portion of the taxes levied and
collected pursuant to Section 2355 of Title 68 of the Oklahoma
Statutes for deposit into the fund. The amount deposited shall equal
the sum estimated by the Tax Commission to be sufficient to pay
incentive payments claimed pursuant to the provisions of Section 4 of
this act. All of the amounts deposited in such fund shall be used
and expended by the Tax Commission solely for the purposes and in the
amounts authorized by the 21st Century Quality Jobs Incentive Act.
The liability of the State of Oklahoma to make incentive payments
under the 21st Century Quality Jobs Incentive Act shall be limited to
the balance contained in the fund created by this section.
Added by Laws 2009, c. 285, § 6, eff. Nov. 1, 2009.
§68-3917. Rulemaking authority.
The Oklahoma Department of Commerce and the Oklahoma Tax
Commission shall promulgate rules necessary to implement their
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respective duties and responsibilities under the provisions of the
21st Century Quality Jobs Incentive Act.
Added by Laws 2009, c. 285, § 7, eff. Nov. 1, 2009.
§68-3918. Violations and penalties.
Any person making an application, claim for payment or any
report, return, statement, invoice, or other instrument or providing
any other information pursuant to the provisions of this act who
willfully makes a false or fraudulent application, claim, report,
return, statement, invoice, or other instrument, or who willfully
provides any false or fraudulent information, or any person who
willfully aids or abets another in making such false or fraudulent
application, claim, report, return, statement, invoice, or other
instrument, or who willfully aids or abets another in providing any
false or fraudulent information, upon conviction, shall be guilty of
a misdemeanor. The fine for a violation of this provision shall not
be less than One Thousand Dollars ($1,000.00) nor more than Fifty
Thousand Dollars ($50,000.00). Any person convicted of a violation
of this section shall be liable for the repayment of all incentive
payments which were paid to the establishment. Interest shall be due
on such payments at the rate of ten percent (10%) per annum.
Added by Laws 2009, c. 285, § 8, eff. Nov. 1, 2009.
§68-3919. Disqualification from receipt of credits or exemptions
under other laws.
Notwithstanding any other provision of law, if a qualified
establishment receives an incentive payment pursuant to the
provisions of the 21st Century Quality Jobs Incentive Act, neither
the qualified establishment nor its contractors or subcontractors
shall be eligible to receive the credits or exemptions provided for
in the following provisions of law in connection with the activity
for which the incentive payment was received:
1. Paragraphs 16 and 17 of Section 1357 of Title 68 of the
Oklahoma Statutes;
2. Paragraph 8 of Section 1359 of Title 68 of the Oklahoma
Statutes;
3. Section 2357.4 of Title 68 of the Oklahoma Statutes;
4. Section 2357.7 of Title 68 of the Oklahoma Statutes;
5. Section 2-11-303 of Title 27A of the Oklahoma Statutes;
6. Section 2357.22 of Title 68 of the Oklahoma Statutes;
7. Section 2357.31 of Title 68 of the Oklahoma Statutes;
8. Section 54003 of Title 68 of the Oklahoma Statutes;
9. Section 54006 of Title 68 of the Oklahoma Statutes;
10. Section 625.1 of Title 36 of the Oklahoma Statutes; or
11. Subsections C and D of Section 2357.59 of Title 68 of the
Oklahoma Statutes.
Added by Laws 2009, c. 285, § 9, eff. Nov. 1, 2009.
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§68-3920. 21st Century Quality Jobs Incentive Act.
The Oklahoma Department of Commerce shall prepare a report which
shall include, but not be limited to, documentation of the new direct
jobs created under this act and a fiscal analysis of the costs and
benefits of the act to the state. The report shall be submitted to
the President Pro Tempore of the Senate, the Speaker of the House of
Representatives and the Governor no later than March 1, 2011, and
every three (3) years thereafter. The report may be used for the
purpose of determining whether to continue or sunset the 21st Century
Quality Jobs Incentive Act.
Added by Laws 2009, c. 285, § 10, eff. Nov. 1, 2009.
§68-4001. Repealed by Laws 2004, c. 322, § 18, eff. Dec. 1, 2004
(State Question No. 713, Legislative Referendum No. 336, adopted at
election held Nov. 2, 2004).
§68-4002. Oklahoma Health Care Authority – Authority to assess Home-
Based Support Quality Assurance Assessment.
A. As used in this section:
1. “Contracted community-based service provider” means any
entity contracted by the Department of Human Services, the Oklahoma
Health Care Authority, or any private person providing the support,
or promotion of support, for a service recipient to remain in such
person’s home or residence and shall include, but not be limited to,
entities and persons providing personal support, professional
support, case management, and transportation services, and services
through a Home and Community-Based Waiver or Advantage Waiver as
defined by Title XIX of the Social Security Act, Section 1915 (C);
and
2. "Gross receipts" means annual gross revenues received in
compensation for services rendered by a contracted community-based
service provider, but shall not include any amount received by a
contracted service provider as a charitable contribution or any
amount received by a provider as compensation for services rendered
that is not reimbursed;
B. 1. For the purpose of providing quality care enhancements,
the Oklahoma Health Care Authority is authorized to and shall
annually assess a Home-Based Support Quality Assurance Assessment
pursuant to this section on each contracted community-based service
provider in this state. Quality of care enhancements include, but
are not limited to, the purposes specified in Section 1 of this act.
2. The Home-Based Support Quality Assurance Assessment assessed
on a contracted community-based service provider shall be calculated
by the Oklahoma Health Care Authority by multiplying the total annual
Medicaid gross receipts for the provision of all services rendered in
this state by the contracted community-based service provider by five
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and one-half percent (5.5%), regardless of whether such Medicaid
receipts are based on days or hours of service, the cost of services
rendered, or some other basis. The Home-Based Support Quality
Assurance Assessment shall not be increased unless specifically
authorized by the Legislature.
Added by Laws 2010, c. 133, § 2, eff. Nov. 1, 2010.
§68-4101. Short title.
This act shall be known and may be cited as the “Oklahoma
Specialized Quality Investment Act”.
Added by Laws 2004, c. 391, § 1, eff. July 1, 2004. Amended by Laws
2006, c. 1, § 12, eff. July 1, 2007, following passage of State
Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7, 2006.
§68-4102. Legislative intent – Incentives to support retention of
manufacturing and jobs.
It is the intent of the Legislature that:
1. The State of Oklahoma provide appropriate incentives to
support retention of a qualified manufacturing establishment:
a. that is imminently at risk of ceasing operations in
this state,
b. that provides long-term benefits through retention of
quality jobs which increase the wealth of the state,
and
c. that agrees to engage in significant modernization and
retooling that will promote the growth of the industry
in Oklahoma and, by doing so, stabilize the economy of
the State of Oklahoma when there is a direct threat to
the existing revenue base and wealth of the state
because existing establishments are at risk of being
lost to other states or nations;
2. The amount of incentives provided pursuant to this act in
connection with a particular establishment be directly related to
benefits due to retention of jobs and the investment of additional
capital for modernizing and retooling;
3. The Oklahoma Department of Commerce and the Oklahoma Tax
Commission implement the provisions of this act and exercise all
powers as authorized in this act. The exercise of powers conferred
by this act shall be deemed and held to be the performance of
essential public purposes; and
4. Nothing herein shall be construed to constitute a guarantee
or assumption by the State of Oklahoma of any debt of any individual,
company, corporation or association. Nor does this act authorize the
credit of the State of Oklahoma to be given, pledged or loaned to any
individual, company, corporation or association. Nothing herein
shall be construed to constitute a gift by the State of Oklahoma to
any individual, company, corporation or association.
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Added by Laws 2004, c. 391, § 2, eff. July 1, 2004.
§68-4103. Definitions.
For purposes of the Oklahoma Specialized Quality Investment Act:
1. “Capital costs” means costs for land, buildings, improvements
to buildings, fixtures and for machinery, equipment and other
personal property used in and for the manufacturing process incurred
by a qualified establishment, on or after the effective date of this
act, with respect to the manufacturing site located in this state and
specified in a quality investment agreement;
2. “Department” means the Oklahoma Department of Commerce;
3. “Qualified establishment” means a business entity engaged in
the activity described by Industry Number 3011, Industry Group Number
301, Major Group 30 of the Standard Industrial Classification manual,
latest revision. No establishment that has been certified as
eligible to participate in the Oklahoma Quality Jobs Incentive
Leverage Act incentive program shall be eligible for any investment
payment pursuant to the Oklahoma Specialized Quality Investment Act.
A qualified establishment shall enter into a quality investment
agrement pertaining to a single manufacturing site as that term is
defined in Section 1352 of this title. No combination of other
locations of an establishment or any related entities of an
establishment shall be included in a quality investment agreement.
An establishment may enter into additional quality investment
agreements for additional sites;
4. “Fiscal year” means the state fiscal year, which shall begin
on July 1 of a calendar year and end on June 30 of the next calendar
year;
5. “Quality investment agreement” means an agreement with
duration, for purposes of computing the total incentive payment
amount, of not more than five (5) years entered into between a
qualified establishment and the Department; and
6. “Start date” means the date on which a qualified
establishment begins accruing benefits because of investment of new
capital costs in a manufacturing site that is designated in a quality
investment agreement with the Oklahoma Department of Commerce.
Added by Laws 2004, c. 391, § 3, eff. July 1, 2004. Amended by Laws
2006, c. 1, § 13, eff. July 1, 2007, following passage of State
Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7, 2006.
§68-4104. Quality investment agreements – Duration – Investment –
Terms.
A. A qualified establishment shall be eligible to enter into a
quality investment agreement with the Oklahoma Department of Commerce
for a period not to exceed five (5) years.
B. Under such an agreement, the establishment shall agree to
abide by the terms of the agreement in accordance with the provisions
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of this act, including investing capital costs in this state in a
projected amount each year during the term of the agreement. Actual
investment amounts may vary from those amounts specified in the
agreement, but in no event shall the quality investment payments made
exceed an amount that is based on the estimated amount in the
agreement or the actual investment amount listed in the claim and
verified by the Oklahoma Tax Commission. The total amount of capital
costs eligible for investment payments to a qualified establishment
shall not exceed Fifty Million Dollars ($50,000,000.00). In
exchange, the state shall agree to make an annual payment in an
amount equal to ten percent (10%) of the amount of capital costs
invested by the qualified establishment in this state during the
preceding fiscal year.
C. No investment payment authorized by this act shall be made to
a qualified establishment until July 1, 2005, or thereafter. The
amount of investment payment shall not exceed a total of One Million
Dollars ($1,000,000.00) for any fiscal year during which a quality
investment agreement is in effect.
D. If a qualified establishment makes a capital investment
during any period of time in excess of Ten Million Dollars
($10,000,000.00) and the amount of the investment payment to which
the establishment is otherwise entitled by this act would exceed the
limit prescribed by subsection C of this section, the establishment
may carry over the excess investment payment amount to any subsequent
fiscal year and may be paid such amount in a subsequent year if the
combined amount of the carryover and investment payment based on
actual capital investment for the preceding period does not exceed
One Million Dollars ($1,000,000.00). Not more than Five Million
Dollars ($5,000,000.00) in total investment payments shall be payable
or paid to a qualified establishment.
E. Any carryover amount may be carried over for a period of time
necessary in order for the qualified establishment to be paid the
full amount of investment payments authorized by this act based upon
actual capital investment made in the state during the term of the
quality investment agreement.
F. A qualified establishment may enter into a quality investment
agreement with the Department according to the following procedures:
1. The establishment shall make an initial application to the
Department on a form prescribed by the Department containing such
information as may be required by the Department;
2. The Department shall determine if the establishment meets the
following requirements:
a. the establishment is engaged in manufacturing described
by Industry Number 3011, Industry Group Number 301,
Major Group 30 of the Standard Industrial
Classification Manual, latest revision, at a specified
site in this state,
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b. the establishment has been located and doing business
in this state for a continuous period of time of not
less than ten (10) years prior to the date of the
application,
c. the establishment offers, or will offer within twelve
(12) months of entering into a quality investment
agreement, a basic health benefits plan as described in
subparagraph b of paragraph 1 of subsection A of
Section 3603 of Title 68 of the Oklahoma Statutes to
its employees in this state,
d. the establishment will incur, with respect to the
manufacturing site which is the subject of the
agreement, capital costs projected to equal or exceed
Ten Million Dollars ($10,000,000.00) within the period
of the quality investment agreement, and capital costs
projected to equal or exceed One Million Dollars
($1,000,000.00) during the first year of the agreement,
e. the establishment will maintain Oklahoma taxable
payroll during the period of the quality investment
agreement and for at least two (2) years following
expiration of the agreement in an amount not less than
sixty percent (60%) of the establishment’s Oklahoma
taxable payroll as of the start date, and
f. the establishment will pay its employees in this state
an average annualized wage which equals or exceeds
Forty Thousand Dollars ($40,000.00) exclusive of health
care benefits paid for by the establishment; and
3. The determination shall be made upon application of the
establishment and annually thereafter as a condition of receiving an
investment payment pursuant to the provisions of this act.
Upon approval of an establishment, the Department shall enter
into a quality investment agreement with the establishment for a
period not to exceed five (5) years. The agreement shall specify the
start date and the duration of the agreement. The agreement shall
provide that:
a. the establishment shall receive an investment payment
in an amount determined by the provisions of this
section,
b. the establishment shall continue to meet the
requirements of paragraph 2 of this subsection and all
other provisions of this act for the duration of the
agreement, and
c. the establishment shall agree to make an investment in
capital costs in this state in a projected amount for
each year of the agreement.
Added by Laws 2004, c. 391, § 4, eff. July 1, 2004.
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§68-4105. Specialized Quality Investment Payment Fund.
There is hereby created within the State Treasury a special fund
for the Oklahoma Tax Commission to be designated the “Specialized
Quality Investment Payment Fund”. The Tax Commission is hereby
authorized and directed to withhold a portion of the taxes levied and
collected pursuant to Sections 1354 and 2355 of this title for
deposit into the fund. The amount deposited shall equal the sum of
an amount required for making investment payments, as determined
pursuant to the provisions of this act. All of the amounts deposited
in such fund shall be used and expended by the Tax Commission solely
for the purposes and in the amounts authorized by the Oklahoma
Specialized Quality Investment Act. The liability of the State of
Oklahoma to make the investment payments under this act shall be
limited to the balance contained in the fund created by this section.
Added by Laws 2004, c. 391, § 5, eff. July 1, 2004. Amended by Laws
2006, c. 1, § 14, eff. July 1, 2007, following passage of State
Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7, 2006.
§68-4106. Claims for investment payments – Timing – Verification –
Cessation of payments and recovery of payments when agreement terms
not met – Additional payments.
A. As soon as practicable after the end of a fiscal year for
which a qualified establishment has qualified to receive an
investment payment, the establishment shall file a claim for the
payment with the Oklahoma Tax Commission for ten percent (10%) of the
total amount of capital costs actually invested by the establishment
during such fiscal year.
B. If the first claim for investment payment is filed later than
two (2) years from the start date designated by the Department, the
agreement shall be deemed expired and void.
C. The Tax Commission shall verify for each fiscal year the
actual amount of capital costs and the actual tax benefit accrued or
to be accrued to the State of Oklahoma. If the Tax Commission is not
able to provide such verification utilizing all available resources,
the Tax Commission may request such additional information from the
establishment as may be necessary or may reject the establishment’s
claim based upon analysis of actual capital costs incurred by the
establishment.
D. If the qualified establishment does not meet the terms of the
agreement and all provisions of this act, investment payments shall
cease and shall not be resumed, and the agreement shall expire and be
void. The Oklahoma Department of Commerce may seek to recover in a
court of competent jurisdiction any payments made to a qualified
establishment if the establishment does not comply with the
requirements of subparagraph e of paragraph 2 of subsection F of
Section 4 of this act; provided, however, that no investment payments
shall be subject to recovery or recapture based upon a failure to
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invest capital equal to the amount estimated by the qualified
establishment as stated in a quality investment agreement.
E. A qualified establishment that has qualified pursuant to
Section 4 of this act may receive payments only in accordance with
the provisions under which it initially applied and was approved.
F. An establishment that is receiving investment payments may
not apply for additional investment payments for any new capital
costs until expiration of its quality investment agreement.
Provided, a qualified establishment may apply for additional
investment payments pursuant to subsequent quality investment
agreements based upon additional capital costs at a different
manufacturing site.
G. As soon as practicable after verification of the eligibility
of the manufacturer as required by this section, the Tax Commission
shall issue a warrant to the establishment.
Added by Laws 2004, c. 391, § 6, eff. July 1, 2004.
§68-4107. Eligibility to receive other credits or exemptions.
Notwithstanding any other provision of law, if a qualified
establishment receives an investment payment pursuant to the
provisions of this act, neither the qualified establishment nor its
contractors or subcontractors shall be eligible to receive the
credits or exemptions provided for in the following provisions of law
in connection with the activity for which the investment payment was
received:
1. Section 625.1 of Title 36 of the Oklahoma Statutes (premium
tax credits);
2. Paragraph 7 of Section 1359 of Title 68 of the Oklahoma
Statutes (construction materials sales tax refunds);
3. Section 2357.4 of Title 68 of the Oklahoma Statutes (new
jobs/investment income tax credits);
4. Section 2902 of Title 68 of the Oklahoma Statutes (state
reimbursement to communities for property tax exemptions to
manufacturers);
5. Section 3601 et seq. of Title 68 of the Oklahoma Statutes
(Oklahoma Quality Jobs Program Act);
6. Section 3651 et seq. of Title 68 of the Oklahoma Statutes
(Oklahoma Quality Jobs Incentive Leverage Act);
7. Section 3701 et seq. of Title 68 of the Oklahoma Statutes
(Saving Quality Jobs Act);
8. Section 3801 et seq. of Title 68 of the Oklahoma Statutes
(Former Military Facility Development Act); and
9. Section 3901 et seq. of Title 68 of the Oklahoma Statutes
(Small Employer Quality Jobs Incentive Act).
Added by Laws 2004, c. 391, § 7, eff. July 1, 2004.
§68-4108. Rules – Implementation.
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The Oklahoma Department of Commerce and the Oklahoma Tax
Commission shall promulgate rules necessary to implement their
respective duties and responsibilities under the provisions of this
act.
Added by Laws 2004, c. 391, § 8, eff. July 1, 2004.
§68-4109. False or fraudulent applications and instruments – Felony
– Punishment.
Any person making an application, claim for payment or any
report, return, statement or other instrument or providing any other
information pursuant to the provisions of this act who willfully
makes a false or fraudulent application, claim, report, return,
statement, invoice or other instrument or who willfully provides any
false or fraudulent information, or any person who willfully aids or
abets another in making such false or fraudulent application, claim,
report, return, statement, invoice or other instrument or who
willfully aids or abets another in providing any false or fraudulent
information, upon conviction, shall be guilty of a felony punishable
by the imposition of a fine not less than One Thousand Dollars
($1,000.00) and not more than Fifty Thousand Dollars ($50,000.00) or
imprisonment in the State Penitentiary for not less than two (2)
years and not more than five (5) years, or by both such fine and
imprisonment. Any person convicted of a violation of this section
shall be liable for the repayment of all investment payments which
were paid to the establishment. Interest shall be due on such
payments at the rate of ten percent (10%) per annum.
Added by Laws 2004, c. 391, § 9, eff. July 1, 2004.
§68-4201. Short title.
This act shall be known and may be cited as the “Oklahoma Quality
Investment Act”.
Added by Laws 2006, c. 1, § 1, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4202. Purpose – Legislative intent – Incentive payments.
A. It is the purpose of this act to implement the provisions of
the constitutional amendment contained in Enrolled Senate Bill No.
755 of the 1st Session of the 50th Oklahoma Legislature.
B. It is the intent of the Legislature that:
1. The State of Oklahoma provide appropriate incentives to
support retention of manufacturing establishments:
a. that yield higher long-term benefits for job retention
and increase the wealth of the state,
b. that create competitive advantages for the State of
Oklahoma in attracting and retaining industries and
jobs, and
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c. that hold the promise of significant modernization and
retooling that will assure the stability of the
industry in Oklahoma and, by doing so, help enlarge the
tax base and stabilize the economy of the State of
Oklahoma when there is a direct threat to the existing
revenue base and wealth of the state because existing
establishments are at risk of being lost to other
states or nations;
2. The amount of incentives provided pursuant to this act in
connection with a particular establishment be directly related to
benefits caused by retention of jobs and investment and the placing
of new investment, created as a result of the establishment
modernizing and retooling in, and thereby remaining and growing in
the State of Oklahoma as reflected by the economic impact, historical
contributions trends and tax revenue projections analyses;
3. The Quality Investment Committee created by this act, the
Oklahoma Department of Commerce, the Oklahoma Tax Commission, the
Governor, the President Pro Tempore of the Senate and the Speaker of
the House of Representatives implement the provisions of this act and
exercise all powers as authorized in this act. The exercise of
powers conferred by this act shall be deemed and held to be the
performance of essential public purposes; and
4. Nothing herein shall be construed to constitute a guarantee
or assumption by the State of Oklahoma of any debt of any individual,
company or corporation or association. Nor does this act authorize
the credit of the State of Oklahoma to be given, pledged or loaned to
any individual, company, corporation or association. Nothing herein
shall be construed to constitute a gift by the State of Oklahoma to
any individual, company, corporation or association.
C. In fiscal years when the provisions of subparagraph a of
paragraph 6 of Section 23 of Article X of the Oklahoma Constitution
are not applicable and the balance at the beginning of such fiscal
year in the Constitutional Reserve Fund is equal to or greater than
Eighty Million Dollars ($80,000,000.00), up to Ten Million Dollars
($10,000,000.00) may be expended for the purpose of providing
incentives to support retention of at-risk manufacturing
establishments in this state in order to retain employment for
residents of this state. Such incentives shall be paid by the
Oklahoma Tax Commission upon a unanimous finding by the Governor, the
Speaker of the House of Representatives and the President Pro Tempore
of the Senate that:
1. Such incentives have been recommended by the Quality
Investment Committee created by this act pursuant to criteria set out
by law;
2. The incentive will result in a substantial benefit to this
state; and
3. Payment of the incentive would be in accordance with law.
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Added by Laws 2006, c. 1, § 2, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4203. Definitions.
For purposes of the Oklahoma Quality Investment Act:
1. “At-risk establishments” are those manufacturing
establishments, presently existing in Oklahoma which the Quality
Investment Committee, as described in paragraph 6 of this section,
finds would be lost within the state based on changes in global
economies, establishment structure, consolidation of establishments,
and which are structurally noncompetitive but which could regain a
competitive position with new investment if incentives are offered;
2. “Capital costs” means costs for land, building, improvements
to buildings, fixtures and for machinery and equipment as those terms
are described in Section 2902 of Title 68 of the Oklahoma Statutes;
3. “Economic impact” means economic impact as described in
analyses that identify the value in terms of sales tax and income tax
revenues to the state and to the local community of the establishment
that the retention and expansion or modernization of the
manufacturing site provides. The Oklahoma Department of Commerce may
contract for the performance of an economic impact analysis to aid it
in determining whether to recommend entering into a Quality
Investment Contract with a particular establishment;
4. “Historical contributions trends” means historical
contributions of an establishment as described in analyses of direct
and indirect historical contributions to the state and local
economies that an establishment has had on jobs and tax base growth,
and on payroll and tax revenue inputs and growth. Analyses shall
include consideration of positive trends attributable to suppliers of
the establishment. The Oklahoma Department of Commerce may contract
for the performance of an historical contributions analysis to aid
the Quality Investment Committee in determining whether to recommend
entering into a Quality Investment Contract with a particular
establishment;
5. “Local community” means the town or city and the county of
the location of the establishment; provided, a city or town and a
county may jointly constitute the “local community”;
6. “Quality Investment Committee” means the independent
committee referenced in paragraph 6 of Section 23 of Article X of the
Oklahoma Constitution that consists of the following members:
a. the Director of the Oklahoma Department of Commerce,
b. the Dean of Engineering of Oklahoma State University,
c. the Director of the Oklahoma Alliance for Manufacturing
Excellence,
d. the Dean of the Price Business College of the
University of Oklahoma,
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e. the Executive Director for the Oklahoma Center for the
Advancement of Science and Technology,
f. one small business representative from the Oklahoma
Science and Technology Research and Development Board,
and
g. the State Director of Career Technology Education;
7. “Tax revenues projections” means a projection of anticipated
tax revenues based upon an analysis of historic taxes collected from
the establishment in the local community and in the state overall
over the previous ten (10) years in order to determine:
a. the average of the growth percentages to determine the
projected growth in such revenues to the community and
the state over the following ten (10) years if no
retooling occurs but retention is assumed to be a
constant and remains stagnant,
b. the modernization or retooling project’s estimated
impact on tax revenues and growth rates over the
following ten (10) years, and
c. the projections of loss in tax revenues should the
plant location close and operations, in whole or in
part, are removed from the state.
The Oklahoma Department of Commerce may contract with the
Oklahoma Tax Commission for performance of tax revenues projections
analyses to aid it in determining whether to enter into an agreement
upon recommendation of the Quality Investment Committee;
8. “Establishment” means a manufacturer that is a partnership,
limited partnership, corporation, limited liability company, limited
liability partnership, or sole proprietorship. The establishment may
enter into a Quality Investment Contract pertaining to only one
manufacturing site as that term is defined in Section 1352 of Title
68 of the Oklahoma Statutes. No combination of other locations of
the establishment, or any related entities of the establishment is
contemplated. An establishment may have multiple contracts due to
multiple sites or multiple expansions due to retooling and
modernization at one site;
9. “NAICS” Manual means any manual book or other publication
containing the North American Industry Classification System, United
States, 1997, or as updated or amended from time to time, promulgated
by the Office of Management and Budget of the United States of
America; and
10. “Start date” means the date on which an establishment may
begin accruing benefits for investment of new capital costs in a
manufacturing site that is assigned in the agreement with the
Oklahoma Department of Commerce.
Added by Laws 2006, c. 1, § 3, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
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§68-4204. Quality Investment Contracts – Application – Requirements
– Qualifications.
A. An establishment which meets the qualifications specified in
the Oklahoma Quality Investment Act may apply to enter into a Quality
Investment Contract to receive annual incentive payments over a five-
year period from the Oklahoma Tax Commission pursuant to the
provisions of the Oklahoma Quality Investment Act in an amount which
shall not exceed ten percent (10%) of the amount of actual capital
costs invested pursuant to a Quality Investment Contract developed
and executed pursuant to this act. The Committee shall review
economic impacts, historical contributions trends and tax revenue
projections analyses conducted by or on behalf of the Oklahoma
Department of Commerce, and shall consider whether or not the
establishment is located in an economically distressed area of the
state, the number of jobs which are at risk, and the average salary
of the jobs which are at risk for the purposes of making
recommendations for offering a Quality Investment Contract and the
percentage of investment which shall be provided as incentive
payments. Provided, incentive payments shall in no event exceed ten
percent (10%) of the capital costs actually incurred for the Oklahoma
site that is the subject of the agreement. Provided, a county, town
or municipality in which an establishment eligible to receive annual
incentive payments pursuant to this section is located may join in
the Quality Investment Contract with the state and the establishment
and set out that it intends to annually appropriate a portion of
local sales tax revenue that shall be included in the incentive
payments.
Provided further, the Quality Investment Committee may not
recommend and the state shall not enter into contracts that would
result in payments from state revenues to all establishments in the
program in an amount in excess of Ten Million Dollars
($10,000,000.00) in any fiscal year. The maximum amount of projected
investment for purposes of a contract made pursuant to this act shall
not exceed Fifty Million Dollars ($50,000,000.00).
B. In order to receive incentive payments, an establishment
shall apply to and enter into a Quality Investment Contract with the
Oklahoma Department of Commerce on behalf of the state and the local
community when the town, city or county resolve to join with the
agreement. The application shall be on a form prescribed by the
Committee and shall contain such information as may be required by
the Committee and the Oklahoma Department of Commerce to determine if
the applicant is qualified.
C. In order to qualify to receive such payments, the
establishment applying shall be required to:
1. Be engaged in manufacturing in activities described under
Industry Group Nos. 31 through 33 of the NAICS Manual;
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2. Incur capital costs for new retooling or modernization
projected to equal or exceed One Million Dollars ($1,000,000.00)
within twenty-four (24) months of the start date; and
3. Apply to and enter into a Quality Investment Contract
specifying:
a. the amount of capital investment the establishment must
make within twenty-four (24) months of the start date
in order to remain in the Oklahoma Quality Investment
Program,
b. the total minimum amount of Oklahoma taxable payroll it
will maintain in this state during the course of the
agreement,
c. the total amount in incentive payments it may receive,
d. if applicable, the amount of local revenues a county or
municipality intends to apportion to the establishment
annually, and
e. that it will offer “basic health insurance” as defined
in the Oklahoma Quality Jobs Program Act, within twelve
(12) months of entering into a Quality Investment
Contract.
Added by Laws 2006, c. 1, § 4, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4205. Application for incentive payment – Cessation of payment –
New application – Verification and payment.
A. As soon as practicable after the end of a calendar year for
which an establishment has qualified to receive an incentive payment,
the establishment shall file a claim for the payment with the
Oklahoma Tax Commission for one-tenth (1/10) or less of the total
amount of investment identified and specified in its Quality
Investment Contract. Provided, in the event the establishment
applies for an incentive payment before all investment for retooling
or modernization has occurred, the payment shall be reduced by the
percentage of investment costs predicted but not incurred at the time
of the claim as those costs bear to the whole investment. In no
event shall the first claim for investment payment be filed later
than two (2) years from the start date designated by the Quality
Investment Committee. The Tax Commission shall verify for each
calendar year the actual amount of capital investment in Oklahoma and
the amounts of local communities’ sales tax rebates for the
establishment. If the Tax Commission is not able to provide such
verification utilizing all available resources, the Tax Commission
may request such additional information from the establishment as may
be necessary or may reject the establishment’s claim.
B. If the capital costs for investment in retooling or
investment does not meet or exceed One Million Dollars
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($1,000,000.00) within twenty-four (24) months of the start date of
the establishment as set out in its agreement with the Quality
Investment Committee, incentive payments shall cease and shall not be
resumed.
C. An establishment that has qualified pursuant to Section 4 of
this act may receive payments only in accordance with the provisions
under which it initially applied and was approved.
D. An establishment that is receiving incentive payments may not
apply for additional incentive payments for any new capital
improvement projects until twelve (12) quarters after receipt of the
first incentive payment, or until the establishment’s actual verified
capital costs of retooling and modernization equals or exceeds One
Million Dollars ($1,000,000.00), whichever comes first. After
meeting the requirements of this subsection, an establishment may
apply for additional incentive payments based upon additional
retooling and modernization capital costs and investment.
E. As soon as practicable after verification of the eligibility
of the manufacturer as required by this section, the Tax Commission
shall issue a warrant to the establishment.
Added by Laws 2006, c. 1, § 5, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4206. Quality Investment Committee – Meetings – Recommendations
– Consideration by Governor, Speaker and President Pro Tempore –
Investments authorized.
A. The Quality Investment Committee shall meet not less than
once per quarter and consider applications for Quality Investment
Contracts from at-risk establishments. The Committee shall review
each application received since its last meeting and consider for
each application economic impacts, historical contributions trends
and tax revenue projections analyses conducted by or on behalf of the
Oklahoma Department of Commerce; whether the establishment is located
in an economically distressed area of the state; whether loss of the
establishment would cause the local community to become an
economically distressed area; the number of jobs of Oklahoma citizens
which are at risk; and the average salary of the jobs which are at
risk.
B. Based on its review of applications, the Committee shall make
recommendations to the Governor, the Speaker of the House of
Representatives and the President Pro Tempore of the Senate as to
which applications for investment contracts should be approved and
the percentage of investment the state should make as an incentive
payment to the at-risk establishment for those contracts which are
approved. In making such recommendations, the Committee shall not
make recommendations for Quality Investment Contracts which could
require payments in any year in excess of the amount allowed by the
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Oklahoma Quality Investment Act or the provisions of Section 23 of
Article X of the Oklahoma Constitution.
C. The Governor, the Speaker of the House of Representatives and
the President Pro Tempore of the Senate shall meet as often as is
necessary to consider recommendations of the Quality Investment
Committee. The Governor shall schedule and chair such meetings.
Quality Investment Contracts shall only be entered into upon the
unanimous approval by the Governor, the Speaker of the House of
Representatives and the President Pro Tempore of the Senate of the
terms of the contract. A decision on recommendations of the Quality
Investment Committee shall be made within thirty (30) days of receipt
of such recommendations.
D. For any fiscal year, the incentives shall not exceed ten
percent (10%) of the amount invested by an establishment in capital
assets to be utilized in this state. The contract shall make payment
of any incentives in any fiscal year contingent on the balance at the
beginning of such fiscal year in the Constitutional Reserve Fund
being equal to or greater than Eighty Million Dollars
($80,000,000.00) and on the certification by the State Board of
Equalization for such fiscal year General Revenue Fund being greater
than that of the preceding fiscal year certification. Investment
contracts authorized by this act shall provide that if any incentive
payment is payable during a fiscal year in which either the balance
at the beginning of the fiscal year in the Constitutional Reserve
Fund is not equal to or greater than Eighty Million Dollars
($80,000,000.00) or when the certification by the State Board of
Equalization for such fiscal year General Revenue Fund is less than
that of the immediately prior fiscal year certification, then any
incentive payments which would have been payable during such fiscal
year shall be payable in the first fiscal year when funds are
available pursuant to the provisions of division 1 of subparagraph
(b) of paragraph 6 of Section 23 of Article X of the Oklahoma
Constitution. In the event that the amount of incentives due in any
year under investment contracts authorized by this subsection is less
than the amounts available for payment under this subsection in such
year, then incentives payments for such year shall be reduced pro
rata.
Added by Laws 2006, c. 1, § 6, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4207. Ineligibility for certain tax credits or exemptions.
Notwithstanding any other provision of law, if a qualified
establishment receives an incentive payment pursuant to the
provisions of this act, neither the qualified establishment nor its
contractors or subcontractors shall be eligible to receive the
credits or exemptions provided for in the following provisions of law
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in connection with the activity for which the incentive payment was
received:
1. Section 625.1 of Title 36 of the Oklahoma Statutes (premium
tax credits);
2. Paragraph 7 of Section 1359 of Title 68 of the Oklahoma
Statutes (construction materials sales tax refunds);
3. Section 2357.4 of Title 68 of the Oklahoma Statutes (new
jobs/investment income tax credits);
4. Section 2357.7 of Title 68 of the Oklahoma Statutes (venture
capital investment credits);
5. Section 2-11-303 of Title 27A of the Oklahoma Statutes
(pollution control equipment investment income tax credits);
6. Section 2357.22 of Title 68 of the Oklahoma Statutes (income
tax credits for investment in clean-burning motor fuel vehicles);
7. Section 2357.31 of Title 68 of the Oklahoma Statutes (small
business income tax credits);
8. Section 54003 of Title 68 of the Oklahoma Statutes (research
and development or computer services sales tax refunds);
9. Subsections C and D of Section 2357.29 of Title 68 of the
Oklahoma Statutes (recycling income tax credits);
10. Section 2902 of Title 68 of the Oklahoma Statutes (state
reimbursement to communities for property tax exemptions to
manufacturers);
11. Section 3601 et seq. of Title 68 of the Oklahoma Statutes
(Oklahoma Quality Jobs Program Act);
12. Section 3701 et seq. of Title 68 of the Oklahoma Statutes
(Saving Quality Jobs Act);
13. Section 3801 et seq. of Title 68 of the Oklahoma Statutes
(Former Military Facilities Development Act);
14. Section 3901 et seq. of Title 68 of the Oklahoma Statutes
(Small Employer Quality Jobs Incentive Act);
15. Sections 3651 through 3659 of Title 68 of the Oklahoma
Statutes (Quality Jobs Incentive Leverage Act); and
16. Section 4101 et seq. of Title 68 of the Oklahoma Statutes
(Oklahoma Specialized Quality Investment Act).
Added by Laws 2006, c. 1, § 7, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4208. Oklahoma Department of Commerce and Oklahoma Tax
Commission – Rules.
The Oklahoma Department of Commerce and the Oklahoma Tax
Commission shall promulgate rules necessary to implement their
respective duties and responsibilities under the provisions of this
act.
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Added by Laws 2006, c. 1, § 8, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4209. False or fraudulent application or other information –
Aiding or abetting – Felony – Punishment.
Any person making an application, claim for payment or any
report, return, statement or other instrument or providing any other
information pursuant to the provisions of this act who willfully
makes a false or fraudulent application, claim, report, return,
statement, invoice or other instrument or who willfully provides any
false or fraudulent information, or any person who willfully aids or
abets another in making such false or fraudulent application, claim,
report, return, statement, invoice or other instrument or who
willfully aids or abets another in providing any false or fraudulent
information, upon conviction, shall be guilty of a felony punishable
by the imposition of a fine not less than One Thousand Dollars
($1,000.00) and not more than Fifty Thousand Dollars ($50,000.00) or
imprisonment in the State Penitentiary for not less than two (2)
years and not more than five (5) years, or by both such fine and
imprisonment. Any person convicted of a violation of this section
shall be liable for the repayment of all incentive payments which
were paid to the establishment. Interest shall be due on such
payments at the rate of ten percent (10%) per annum.
Added by Laws 2006, c. 1, § 9, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4210. Five-year performance review – Written report.
A. The Oklahoma Department of Commerce shall, using its own
resources or through a contract with a service provider, conduct a
five-year performance review of the Oklahoma Quality Investment Act.
The performance review may include measures of economic productivity
in areas or regions affected by the business activity of any
recipient of a payment authorized pursuant to this act. Such
measures of economic productivity may include, but shall not be
limited to, total payroll statistics, business activity supported by
the business activity of the payment recipients, growth in property
tax values attributable to capital expansion, growth in state or
local tax sources attributable to capital expansion, increased
investment activity by other business entities, business site
location inquiries related to the business activity of a recipient or
such other indicators of the net benefits to the State of Oklahoma or
an economic region as the Department of Commerce or its service
provider may select.
B. The results of the five-year performance review shall be
provided in a written report to be submitted not later than January
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31, 2012, and not later than January 31 each successive five-year
period covering the results of performance measurement of the
Oklahoma Quality Investment Act as conducted pursuant to subsection A
of this section. The first such report shall only be required to
address the performance measures for the period of July 1, 2006,
through December 31, 2011. The report shall be provided to the
Governor, the Speaker of the Oklahoma House of Representatives, the
President Pro Tempore of the State Senate and to each member of the
Quality Investment Committee.
C. The Quality Investment Committee shall use the results of the
five-year performance report in making determinations required of it
pursuant to the Oklahoma Quality Investment Act.
Added by Laws 2006, c. 1, § 10, eff. July 1, 2007, following passage
of State Question No. 725 (SB 755, Laws 2005, c. 239) on Nov. 7,
2006.
§68-4301. Oklahoma Quality Events Incentive Act.
This act shall be known and may be cited as the "Oklahoma Quality
Events Incentive Act" and shall be in effect through June 30, 2021.
Added by Laws 2010, c. 386, § 1, eff. July 1, 2012. Amended by Laws
2014, c. 3, § 1, eff. Nov. 1, 2014; Laws 2018, c. 201, § 1, eff. July
1, 2018.
§68-4302. Legislative findings.
The Legislature finds that certain quality events conducted
within the state have a significant economic impact. In order to
assist with the promotion of such events and to assist the promoters
and organizers of such events with the planning and performance of
such events, the Legislature finds that it is in furtherance of an
essential governmental function to provide a method by which an
eligible municipality or an eligible county may utilize a portion of
the state sales tax revenues derived from taxable transactions
occurring within a designated area to promote certain qualifying
events. The State of Oklahoma has a legitimate interest in economic
development related to the occurrence of quality events and the
Legislature finds that the use of state sales tax revenues authorized
by this act provides a method by which the state can compete
successfully in a national and global economy against other
jurisdictions offering similar incentives for such events.
Added by Laws 2010, c. 386, § 2, eff. July 1, 2012.
§68-4303. Definitions.
As used in the Oklahoma Quality Events Incentive Act:
1. "Certified sponsor" means an entity or organization
authorized to promote and conduct a quality event, which is incurring
expenses for the promotion of such event to be conducted within the
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corporate limits of an eligible municipality or an unincorporated
area within a county;
2. "Eligible local support amounts" means:
a. any payment made by a local government entity or
transfer of monies from the general fund or transfer of
tax revenues derived from a locally imposed tax to a
certified sponsor for the purpose of attracting,
promoting, advertising, organizing, conducting or
otherwise supporting a quality event, or
b. any direct payment made by a certified sponsor to a
for-profit or nonprofit entity, other than the host
community, for the purpose of attracting, promoting,
advertising, organizing, conducting or otherwise
supporting a quality event;
3. "Event history" means:
a. historical information on the event including past
locations of the event,
b. a description of previous attempts by the host
community to secure the event,
c. information regarding attempts by other communities to
recruit the event, and
d. if applicable, the competitive bidding process for
securing the event by the host community;
4. "Host community" means any county, incorporated city or town,
or any combination of counties, incorporated cities or towns of the
state which are authorized by their respective governing bodies to
host or assist in the presentation of a quality event;
5. "Incremental sales tax revenue" means the amount of
additional state sales tax revenue collected as a result of the
quality event, as determined by the Oklahoma Tax Commission based on
actual documentation;
6. "New event" means a quality event which did not occur within
a period of twenty-four (24) months prior to the month during which a
quality event is held;
7. "Quality event" means:
a. a new event or a meeting of a nationally recognized
organization or its members,
b. a new or existing event that is a national,
international or world championship, or
c. a new or existing event that is managed or produced by
an Oklahoma-based national or international
organization;
8. "Recurring event" means a quality event which occurred at
least once within the twenty-four (24) months prior to the month
during which a quality event is held;
9. "State sales tax revenue" means the proceeds from the state
sales tax levy imposed pursuant to Section 1354 of this title upon
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taxable transactions occurring as a result of the quality event, as
determined by the Oklahoma Tax Commission based on actual
documentation; and
10. "Vendors" means those persons or business entities making
taxable sales of tangible personal property or services as a result
of the quality event, as determined by the Oklahoma Tax Commission
based on actual documentation and, unless the context otherwise
requires, shall have the same meaning as defined by Section 1352 of
this title.
Added by Laws 2010, c. 386, § 3, eff. July 1, 2012. Amended by Laws
2013, c. 156, § 1; Laws 2014, c. 3, § 2, eff. Nov. 1, 2014; Laws
2018, c. 201, § 2, eff. July 1, 2018.
§68-4304. Quality event - Designation - Submission of forms to
Oklahoma Tax Commission.
A. Not later than six (6) months prior to the initial date of a
quality event, a host community may designate:
1. The dates during which a quality event will be hosted; and
2. The type of expenses eligible for distribution of captured
revenues to the host community including, but not limited to,
advertising, facility rental, promotional materials and security.
B. Any designation made by a host community for purposes of the
Oklahoma Quality Events Incentive Act shall be made pursuant to an
ordinance or resolution duly adopted by the governing body of the
host community.
C. A host community may only designate one quality event during
the time frame in which a designated quality event will occur.
D. Within thirty (30) days of the date on which the host
community adopts an ordinance or resolution pursuant to subsection A
of this section, such host community shall submit to the Oklahoma Tax
Commission, on such forms as the Tax Commission may prescribe, a copy
of such ordinance or resolution and the event history. The Oklahoma
Tax Commission shall designate a single employee or division
responsible for processing information, making determinations and any
other duties related to the Oklahoma Quality Events Incentive Act.
E. Within sixty (60) days from the date of receipt of the
information from the host community as required by subsection D of
this section, the Tax Commission shall approve or disapprove, in
whole or in part, the submission and analysis of the required
information. The Oklahoma Department of Commerce and the Oklahoma
Tourism and Recreation Department shall provide such assistance and
information as requested by the Tax Commission.
Added by Laws 2010, c. 386, § 4, eff. July 1, 2012. Amended by Laws
2013, c. 156, § 2; Laws 2014, c. 3, § 3, eff. Nov. 1, 2014; Laws
2018, c. 201, § 3, eff. July 1, 2018.
§68-4305. Eligible local support.
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A. The host community shall provide to the Oklahoma Tax
Commission detailed information disclosing the total amount of
eligible local support amounts for purposes of determining the amount
of incremental state sales tax revenue that may be paid to a host
community in which a quality event occurs.
B. The Tax Commission shall verify the amount of eligible local
support amounts prior to making any payment to a host community.
C. After the conclusion of an event, the host community shall
provide information related to the event, such as attendance figures,
financial information or other public information held by the host
community that the Tax Commission considers necessary to evaluate the
actual economic impact of the event.
D. The Tax Commission shall compare the total amount of eligible
local support amounts with the total amount of incremental state
sales tax revenues remitted by vendors, such revenues to be
established based on actual documentation.
E. If the Tax Commission determines through an analysis of the
actual documentation that the total amount of incremental state sales
tax revenues is zero, no payment shall be made to a host community.
F. If the Tax Commission determines through an analysis of the
actual documentation that the total amount of incremental state sales
tax revenues is greater than zero, but less than the total amount of
eligible local support amounts, the Tax Commission shall make
payment, subject to the limitations of subsection I of this section,
to the host community of the quality event in an amount equal to the
incremental state sales tax revenues.
G. If the Tax Commission determines through an analysis of the
actual documentation that the total amount of incremental state sales
tax revenues is at least equal to the amount of eligible local
support amounts, the Tax Commission shall make payment, subject to
the limitations of subsection I of this section, to the host
community in which the quality event occurs in an amount equal to,
but not greater than, the eligible local support amounts.
H. No payment shall be made to any host community from a source
other than the incremental state sales tax revenues, if any, derived
from state sales tax remittances of vendors as a result of the
quality event, as determined by the Oklahoma Tax Commission.
I. No payment shall be made to any host community in excess of
Two Hundred Fifty Thousand Dollars ($250,000.00) for a single quality
event regardless of the amount of eligible local support paid by the
host community.
Added by Laws 2010, c. 386, § 5, eff. July 1, 2012. Amended by Laws
2014, c. 3, § 4, eff. Nov. 1, 2014; Laws 2018, c. 201, § 4, eff. July
1, 2018.
§68-4306. Proceeds from county or municipality sales tax.
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No proceeds from the levy of any sales tax imposed by a county or
a municipality shall be affected by the provisions of this act and
the proceeds from any such levy shall be collected and remitted as
required by the Oklahoma Sales Tax Code. The distribution of the
revenues shall be made in accordance with all applicable requirements
of law with respect to such sales tax levies.
Added by Laws 2010, c. 386, § 6, eff. July 1, 2012.
§68-4307. Maximum total payments.
Notwithstanding any other provision of this act, total payments
resulting from the provisions of the Oklahoma Quality Events
Incentive Act to all host communities shall not exceed:
1. Two Million Dollars ($2,000,000.00) for the fiscal year
ending June 30, 2013;
2. Two Million Five Hundred Thousand Dollars ($2,500,000.00) for
the fiscal year ending June 30, 2014; and
3. Three Million Dollars ($3,000,000.00) for each of the fiscal
years ending June 30, 2015, through June 30, 2018.
Added by Laws 2010, c. 386, § 7, eff. July 1, 2012. Amended by Laws
2014, c. 3, § 5, eff. Nov. 1, 2014.
§68-4308. Payment of incremental sales tax revenues.
After the conclusion of a quality event for which the Oklahoma
Tax Commission has given approval pursuant to subsection E of Section
4 of this act, and within the time limit prescribed by Section 5 of
this act, the Tax Commission shall utilize the amount of incremental
sales tax revenues derived from the levy of the state sales tax
imposed pursuant to Section 1354 of Title 68 of the Oklahoma Statutes
necessary to make payment to a host community based upon eligible
local support payments according to the requirements of Section 5 of
this act.
Added by Laws 2010, c. 386, § 8, eff. July 1, 2012.
§68-4309. Promulgation of rules.
The Oklahoma Tax Commission may promulgate such rules as may be
necessary to implement the provisions of the Oklahoma Quality Events
Incentive Act.
Added by Laws 2010, c. 386, § 9, eff. July 1, 2012. Amended by Laws
2018, c. 201, § 5, eff. July 1, 2018.
§68-4310. Annual report.
The Executive Director of the Oklahoma Department of Commerce
shall make a report to the Governor, the Speaker of the House of
Representatives and the President Pro Tempore of the Senate not later
than December 1, 2013, and each December 1 thereafter if this act is
in force and effect, regarding the effect and impact of the Oklahoma
Quality Events Incentive Act.
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Added by Laws 2010, c. 386, § 10, eff. July 1, 2012.
§68-4311. Contract, memorandum of understanding, other agreement -
Subsequent unenforceability of act.
A. A county, city or town that enters into any contract,
memorandum of understanding or other agreement with a person or
lawfully recognized business entity while the Oklahoma Quality Events
Incentive Act is in force and effect and in reliance upon the
provisions of the Oklahoma Quality Events Incentive Act shall receive
the payments provided by this act even if the Oklahoma Quality Events
Incentive Act ceases to have the force and effect of law at any time
subsequent to the execution of such contract, memorandum of
understanding or agreement, including any amendments to such
documents if the amendments are incorporated and adopted while the
Oklahoma Quality Events Incentive Act is in force and effect.
B. Any person or lawfully recognized business entity that enters
into a contract, memorandum of understanding or other agreement with
another person or lawfully recognized business entity while the
Oklahoma Quality Events Incentive Act is in force and effect and in
reliance upon the provisions of the Oklahoma Quality Events Incentive
Act shall have the right to enforce the terms of such contract,
memorandum of understanding or agreement with respect to any amount
payable pursuant to the terms of the Oklahoma Quality Events
Incentive Act as of the date upon which such contract, memorandum of
understanding or agreement is executed, including any amendments to
such documents if the amendments are incorporated and adopted while
the Oklahoma Quality Events Incentive Act is in force and effect.
Added by Laws 2010, c. 386, § 11, eff. July 1, 2012.
§68-4401. Short title.
Sections 5 through 10 of this act shall be known and may be cited
as the “Lake Murray Area Infrastructure Support Act”.
Added by Laws 2007, c. 106, § 5, eff. July 1, 2007.
§68-4402. Legislative findings.
The Legislature finds that sales taxable transactions conducted
within the area designated by Section 7 of this act have a
significant economic impact. In order to assist the Oklahoma Tourism
and Recreation Department with the maintenance and improvement of
critical infrastructure for the Lake Murray area, the Legislature
finds that it is in furtherance of an essential governmental function
to provide a method by which the State of Oklahoma may utilize a
portion of certain incremental state sales tax revenues derived from
taxable transactions occurring within the area designated by Section
7 of this act as the “Lake Murray Designated Area” to ensure the
proper maintenance and allow for the continued development of
critical infrastructure within the Lake Murray area.
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Added by Laws 2007, c. 106, § 6, eff. July 1, 2007.
§68-4403. Definitions.
As used in this act:
1. “Base Year” or “Lake Murray Designated Area Base Year” means
the amount of state sales tax revenue remitted by vendors located
within the Lake Murray Designated Area during the fiscal year ending
June 30, 2007, or the amount of state sales tax revenue remitted by
vendors as a result of sales taxable transactions occurring within
the Lake Murray Designated Area during the fiscal year ending June
30, 2007, or the sum of both such amounts;
2. “Incremental sales tax revenues” means the amount of sales
tax revenue in excess of the amount of sales tax revenue collected
within the Lake Murray Designated Area during the Base Year for
purposes of the computation required by subsection A of Section 10 of
this act;
3. “Lake Murray Designated Area” means the area of land bordered
on the north by State Highway 70, on the east by the eastern side of
Townships 5 and 6 South, Range 2 East, on the south by the southern
side of Township 6 South, Range 2 East and on the west by Interstate
35;
4. “State sales tax revenue” means a portion of the proceeds
from the state sales tax levy imposed pursuant to Section 1354 of
Title 68 of the Oklahoma Statutes upon taxable transactions occurring
within the Lake Murray Designated Area; and
5. “Vendors” means those persons or business entities making
taxable sales of tangible personal property or services within the
Lake Murray Designated Area or which are required to remit sales tax
based upon transactions occurring within the Lake Murray Designated
Area and unless the context otherwise requires shall have the same
meaning as defined by Section 1352 of Title 68 of the Oklahoma
Statutes.
Added by Laws 2007, c. 106, § 7, eff. July 1, 2007.
§68-4404. Boundary designation - Amount of sales tax revenue -
Affected vendors - Forms and procedures.
A. The Department of Tourism and Recreation shall notify the
Oklahoma Tax Commission on such form as the Tax Commission may
prescribe of the precise boundary of the Lake Murray Designated Area.
B. The Oklahoma Tax Commission shall determine the amount of
state sales tax revenue collected within the Lake Murray Designated
Area during the Base Year in order to allow the computation of
incremental sales tax revenues pursuant to subsection A of Section 10
of this act.
C. The Tax Commission shall identify all vendors upon which the
duty to collect sales tax is imposed pursuant to the Oklahoma Sales
Tax Code located or doing business within the Lake Murray Designated
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Area. The Tax Commission shall provide any required instructions to
affected vendors relevant to any duties that may be imposed upon the
vendors with respect to the collection and remittance of sales tax
derived from transactions occurring within or attributable to
transactions occurring within the Lake Murray Designated Area.
D. The Oklahoma Tax Commission may prescribe special forms or
prescribe by rule special sales tax reporting procedures applicable
to vendors making taxable sales of tangible personal property or
services within the Lake Murray Designated Area in order to implement
the provisions of the Lake Murray Area Infrastructure Support Act.
Added by Laws 2007, c. 106, § 8, eff. July 1, 2007.
§68-4405. Sales tax, distribution of revenue, applicability of act.
No proceeds from the levy of any sales tax imposed by a county or
a municipality shall be affected by the provisions of the Lake Murray
Area Infrastructure Support Act and the proceeds from any such levy
shall be collected and remitted as required by the Oklahoma Sales Tax
Code. The distribution of the revenues shall be made in accordance
with all applicable requirements of law with respect to such sales
tax levies. The provisions of the Lake Murray Area Infrastructure
Support Act shall not be applicable and shall not have the force or
effect of law unless the Oklahoma Tourism and Recreation Commission
approves an agreement for the leasing of certain real property,
including, but not limited to the existing Lake Murray State Lodge
facility to another entity for the purpose of operation and
development of lodge facilities within the Lake Murray resort area.
Added by Laws 2007, c. 106, § 9, eff. July 1, 2007.
§68-4406. Remission of sales tax revenues - Maintenance and
development of assets.
A. The Oklahoma Tax Commission shall remit to the Oklahoma
Tourism and Recreation Department Revolving Fund created pursuant to
Section 2251 of Title 74 of the Oklahoma Statutes, or to a designated
account established within such fund, twenty-five percent (25%) of
the incremental sales tax revenues derived from the levy of the state
sales tax imposed pursuant to Section 1354 of Title 68 of the
Oklahoma Statutes collected from vendors making taxable sales within
or attributable to transactions within the Lake Murray Designated
Area.
B. The Oklahoma Tourism and Recreation Department shall be able
to use the revenues apportioned to the Oklahoma Tourism and
Recreation Department Revolving Fund pursuant to subsection A of this
section to support the maintenance and development of assets owned by
the State of Oklahoma and located within the Lake Murray Designated
Area as determined by the Oklahoma Tourism and Recreation Department
to be necessary for sustaining the Lake Murray area and related state
park assets as a viable tourism destination.
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Added by Laws 2007, c. 106, § 10, eff. July 1, 2007.
§68-5001. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5002. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5003. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5004. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5005. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5006. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5006.1. Forms - Mailing address required.
The forms prescribed by the Oklahoma Tax Commission pursuant to
Sections 5006 or 2909 of this title shall have the mailing address of
the Tax Commission printed on such forms.
Added by Laws 1989, c. 63, § 3, eff. Jan. 1, 1990.
§68-5007. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5008. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5009. Repealed by Laws 1988, c. 162, § 165, eff. January 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-5010. Short title.
Sections 1 through 7 of this act shall be known and may be cited
as the "Sales Tax Relief Act".
Added by Laws 1990, c. 126, § 1, emerg. eff. April 25, 1990.
§68-5011. Eligibility for relief - Computation - Convicted felons.
A. Except as otherwise provided by this section, beginning with
the calendar year 1990 and for each calendar year through 1998, and
for calendar year 2003, any individual who is a resident of and is
domiciled in this state during the entire calendar year for which the
filing is made and whose gross household income for such year does
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not exceed Twelve Thousand Dollars ($12,000.00) may file a claim for
sales tax relief.
B. For calendar years 1999, 2002 and 2004, any individual who is
a resident of and is domiciled in this state during the entire
calendar year for which the filing is made may file a claim for sales
tax relief if the gross household income for such year does not
exceed the following amounts:
1. For an individual not subject to the provisions of paragraph
2 of this subsection and claiming no allowable personal exemption
other than the allowable personal exemption for that individual or
the spouse of that individual, Fifteen Thousand Dollars ($15,000.00);
or
2. For an individual claiming one or more allowable personal
exemptions other than the allowable personal exemption for that
individual or the spouse of that individual, an individual with a
physical disability constituting a substantial handicap to
employment, or an individual who is sixty-five (65) years of age or
older at the close of the tax year, Thirty Thousand Dollars
($30,000.00).
C. For calendar years 2000, 2001, 2005 and following, an
individual who is a resident of and is domiciled in this state during
the entire calendar year for which the filing is made may file a
claim for sales tax relief if the gross household income for such
year does not exceed the following amounts:
1. For an individual not subject to the provisions of paragraph
2 of this subsection and claiming no allowable personal exemption
other than the allowable personal exemption for that individual or
the spouse of that individual, Twenty Thousand Dollars ($20,000.00);
or
2. For an individual claiming one or more allowable personal
exemptions other than the allowable personal exemption for that
individual or the spouse of that individual, an individual with a
physical disability constituting a substantial handicap to
employment, or an individual who is sixty-five (65) years of age or
older at the close of the tax year, Fifty Thousand Dollars
($50,000.00).
D. The amount of the claim filed pursuant to the Sales Tax
Relief Act shall be Forty Dollars ($40.00) multiplied by the number
of allowable personal exemptions. As used in the Sales Tax Relief
Act, "allowable personal exemption" means a personal exemption to
which the taxpayer would be entitled pursuant to the provisions of
the Oklahoma Income Tax Act, except for:
1. The exemptions such taxpayer would be entitled to pursuant to
Section 2358 of this title if such taxpayer or spouse is blind or
sixty-five (65) years of age or older at the close of the tax year;
2. An exemption for a person convicted of a felony if during all
or any part of the calendar year for which the claim is filed such
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person was an inmate in the custody of the Department of Corrections;
or
3. An exemption for a person if during all or any part of the
calendar year for which the claim is filed such person resided
outside of this state.
E. A person convicted of a felony shall not be permitted to file
a claim for sales tax relief pursuant to the provisions of Sections
5010 through 5016 of this title for the period of time during which
the person is an inmate in the custody of the Department of
Corrections. Such period of time shall include the entire calendar
year if the person is in the custody of the Department of Corrections
during any part of the calendar year. The provisions of this
subsection shall not prohibit all other members of the household of
an inmate from filing a claim based upon the personal exemptions to
which the household members would be entitled pursuant to the
provisions of the Oklahoma Income Tax Act.
F. The Department of Corrections shall withhold up to fifty
percent (50%) of any money inmates receive for claims made pursuant
to the Sales Tax Relief Act prior to September 1, 1991, for costs of
incarceration.
G. For purposes of Section 139.105 of Title 17 of the Oklahoma
Statutes, the gross household income of any individual who may file a
claim for sales tax relief shall not exceed Twelve Thousand Dollars
($12,000.00).
Added by Laws 1990, c. 126, § 2, emerg. eff. April 25, 1990. Amended
by Laws 1991, c. 272, § 1, eff. Sept. 1, 1991; Laws 1992, c. 311, §
2, eff. Sept. 1, 1992; Laws 1998, c. 427, § 6, eff. Jan. 1, 1999;
Laws 2004, c. 322, § 15, eff. Dec. 1, 2004 (State Question No. 713,
Legislative Referendum No. 336, adopted at election held Nov. 2,
2004).
§68-5012. Gross household income.
For purposes of this act "gross household income" means the gross
amount of income of every type, regardless of the source, received by
all persons occupying the same household, whether such income was
taxable or nontaxable for federal or state income tax purposes,
including pensions, annuities, federal social security, unemployment
payments, veterans' disability compensation, public assistance
payments, alimony, support money, workers' compensation, loss-of-time
insurance payments, capital gains and any other type of income
received; and excluding gifts.
Added by Laws 1990, c. 126, § 3, emerg. eff. April 15, 1990.
§68-5013. Filing of claim - Credits - Refunds - Families receiving
federal assistance or state supplemental payments.
A. All claims for relief authorized by the Sales Tax Relief Act
shall be received by and in the possession of the Oklahoma Tax
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Commission on or before June 30 of each year for sales taxes paid for
the preceding calendar year. Claimants shall be allowed a direct
credit against income taxes owed by such claimant to the State of
Oklahoma for the amount of such claim, in which case such claim shall
be filed with the income tax return of the claimant on or before
April 15 following the close of the taxable year, unless the claimant
has been granted an extension of time in order to file an income tax
return, in which case the claim may be filed with the return filed
pursuant to the extension. In all cases where claimants have no
income tax liability or where the sales tax relief authorized by this
section exceeds the income tax liability of the claimant, such claim,
or any balance thereof, shall be paid out in the same manner and out
of the same fund as refunds of income taxes are paid and so much of
said fund as is necessary for such purposes is hereby appropriated.
B. 1. Sales tax relief for families receiving assistance
pursuant to the federal program of Temporary Aid to Needy Families
shall be transferred from the Oklahoma Tax Commission to the
Department of Human Services as provided in this subsection for
purposes of obtaining federal matching funds to increase the payments
to recipients of Temporary Aid to Needy Families. The determination
of the amount to be transferred by the Oklahoma Tax Commission shall
be based on a statistical report prepared monthly by the Department
of Human Services which identifies the number of recipients of
Temporary Aid to Needy Families. The amount transferred shall equal
one-twelfth (1/12) of the annual sales tax relief for all persons
receiving assistance during the month of the report. The amount
transferred shall be paid out of the Income Tax Withholding Refund
Account of the Tax Commission.
2. Monies received from the Tax Commission shall be deposited in
the Human Services Fund. Recipients of assistance pursuant to the
federal program of Temporary Aid to Needy Families shall receive
sales tax relief as a part of their monthly Temporary Aid to Needy
Families.
C. All duties of the Tax Commission to make sales tax relief
payments to recipients since January 1, 1992, of state supplemental
payments or medical assistance as patients in long-term care
facilities who have received such supplemental payments or medical
assistance throughout the calendar year are hereby transferred to the
Department of Human Services. Receipt of such supplemental payments
or medical assistance shall constitute automatic eligibility for
sales tax relief under the provisions of the Sales Tax Relief Act.
Sales tax relief payments to persons identified in this subsection
shall be made as soon as practicable after the commencement of each
calendar year. The Department of Human Services shall notify the Tax
Commission of the total amount of the sales tax relief payments made
in order that such sum may be transferred from the Income Tax
Withholding Refund Account of the Tax Commission to the Department.
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D. For those individuals receiving assistance or state
supplemental payments as provided in subsections B and C of this
section, the Department of Human Services shall make the sales tax
relief payment without the requirement of an additional application
form.
E. To avoid duplication of payment, at the end of each calendar
year, the Department of Human Services shall provide the Tax
Commission with a list of the individuals who received sales tax
relief from the Department. Persons receiving sales tax relief
payments directly from the Department of Human Services shall not be
entitled to additional sales tax relief payments from the Tax
Commission.
F. The Department of Human Services and the Tax Commission shall
work jointly to notify individuals receiving assistance or state
supplemental payments from the Department of Human Services of their
possible entitlement and right to apply for sales tax relief as
provided for in the Sales Tax Relief Act.
Added by Laws 1990, c. 126, § 4, emerg. eff. April 25, 1990. Amended
by Laws 1992, c. 130, § 1, eff. July 1, 1992; Laws 1998, c. 301, §
16, eff. Nov. 1, 1998; Laws 2007, c. 155, § 15, eff. Nov. 1, 2007.
§68-5014. Information changes.
Every person filing a claim pursuant to the Sales Tax Relief Act
shall furnish the Oklahoma Tax Commission information changes, if
any, of households, amount of gross income of household, number of
personal exemptions claimed, and such other information as the
Oklahoma Tax Commission may require. Claims and supporting proof
must be on forms prescribed by the Oklahoma Tax Commission.
Added by Laws 1990, c. 126, § 5, emerg. eff. April 25, 1990.
§68-5015. Audit of claim - Notice - Hearing.
A. The Oklahoma Tax Commission shall, within a reasonable time
after receipt of a claim, audit said claim for correctness and
payment. If the Oklahoma Tax Commission determines the amount of a
claim to be incorrect or excessive, or the supporting proof to be
inadequate, or that the claim should be disallowed for any other
reason, it shall notify the claimant by mail of the correct amount,
if any, for which the claim can be allowed or the finding and reasons
for disallowance of the claim. The claimant may, within thirty (30)
days after the date the notice is mailed by the Oklahoma Tax
Commission, submit further or additional proof in support of his
claim or request an oral hearing before the Oklahoma Tax Commission.
B. Upon request for a hearing, the Oklahoma Tax Commission shall
notify claimant in writing of the date, place and time of the
hearing. The hearing date shall not be less than ten (10) days from
the date of mailing the written hearing notice to the claimant. Upon
examination of the claimant's additional proof or after the oral
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hearing, the Oklahoma Tax Commission shall enter an order in
accordance with its findings. The order of the Oklahoma Tax
Commission shall be final.
Added by Laws 1990, c. 126, § 6, emerg. eff. April 25, 1990.
§68-5016. False or fraudulent claims - Penalties.
In addition to the penalties provided in the Uniform Tax
Procedure Code, any person who knowingly and willfully files a claim
for sales tax relief to which such person is not entitled or who
knowingly and willfully furnishes any false or fraudulent information
to the Tax Commission pursuant to the provisions of the Sales Tax
Relief Act, shall be subject to a penalty equal to the amount of the
relief claimed. In addition to such penalty, such person shall repay
to the Tax Commission any amount of sales tax relief granted pursuant
to such claim.
Added by Laws 1990, c. 126, § 7, emerg. eff. April 25, 1990. Amended
by Laws 1990, c. 339, § 19, emerg. eff. May 31, 1990.
§68-5101. Renumbered as § 3201 of this title by Laws 1988, c. 162, §
160, eff. Jan. 1, 1992.
§68-5102. Renumbered as § 3202 of this title by Laws 1988, c. 162, §
160, eff. January 1, 1992.
§68-5103. Renumbered as § 3203 of this title by Laws 1988, c. 162, §
160, eff. Jan. 1, 1992.
§68-5104. Renumbered as § 3204 of this title by Laws 1988, c. 162, §
160, eff. Jan. 1, 1992.
§68-5105. Renumbered as § 3205 of this title by Laws 1988, c. 162, §
160, eff. Jan. 1, 1992.
§68-5106. Renumbered as § 3206 of this title by Laws 1988, c. 162, §
160, eff. Jan. 1, 1992.
§68-5301. Imposition of tax on new vehicles and vessels in lieu of
ad valorem tax.
A. A tax is hereby imposed in lieu of the ad valorem tax on the
inventories of new automobiles, new trucks, new travel trailers, new
manufactured homes, new recreational vehicles and new motorcycles
owned and/or possessed for sale by Oklahoma licensed dealers,
licensed under the Oklahoma Vehicle License and Registration Act, and
on the inventories of new vessels and new motors owned and/or
possessed for sale by Oklahoma licensed dealers licensed pursuant to
the Oklahoma Vessel and Motor Registration Act. Said tax shall be
paid by the dealer on such new vehicles in lieu of the annual ad
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valorem tax assessment of his average inventory of new vehicles, new
manufactured homes, new recreational vehicles, new vessels and new
motors, but shall not relieve any other property of the dealer from
ad valorem taxation.
B. Used motor vehicle dealers shall pay a tax in lieu of the ad
valorem tax on inventories of used motor vehicles as provided for in
Section 1137.1 of Title 47 of the Oklahoma Statutes.
Amended by Laws 1986, c. 172, § 4, eff. July 1, 1986; Laws 1989, c.
346, § 74, eff. Jan. 1, 1990.
§68-5302. Affixing of stamp prior to sale and registration - Amount
of stamp.
A. The in-lieu tax imposed in Section 5301 of this title shall
be evidenced by a tax stamp affixed by said dealer to the
Manufacturer's Certificate or Statement of Origin covering each new
automobile, truck, travel trailer, manufactured home, recreational
vehicle, motorcycle, vessel, watercraft, motorboat, or other boats
and motor before the dealer executes the assignment on such
Certificate of Origin transferring the ownership of such vehicle to
the purchaser. The tax stamp shall be in the amount of Three Dollars
and fifty cents ($3.50).
B. It shall be unlawful for a licensed new vehicle, manufactured
home, recreational vehicle, or motorboat and vessel dealer to sell or
assign a Certificate of Origin to any new automobile, truck, travel
trailer, manufactured home, recreational vehicle, motorcycle, vessel,
watercraft, motorboat, or other boat or motor sold by the
manufacturer of such vehicle to such dealer for delivery and
registration in Oklahoma without his having first obtained and
affixed to such Certificate of Origin a proper tax stamp as required
by the provisions of this section, except to assign such Certificate
of Origin to another authorized licensed dealer franchised to sell
such new items of the same manufacturer.
C. No new automobile, manufactured home, recreational vehicle,
truck, travel trailer, motorcycle, vessel, watercraft, motorboat, or
other boat or motor shall be registered and licensed by the Oklahoma
Tax Commission or one of its motor license agents unless the
Manufacturer's Certificate or Statement of Origin covering such new
vehicle, manufactured home, recreational vehicle, vessel, watercraft,
motorboat, or other boat and motor shall have the tax stamp provided
for in this section affixed on such Manufacturer's Certificate or
Statement of Origin.
Amended by Laws 1984, c. 195, § 8, eff. Jan. 1, 1985.
§68-5304. Purchase of stamps - Form - Distribution - Custody.
The tax stamps required by this act to be placed upon
Manufacturer's Certificates or Statements of Origin of new
automobiles, new trucks, new travel trailers, new manufactured homes,
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new recreational vehicles, new motorcycles, new vessels, new
watercraft, new motorboats and other new boats and new motors, and on
the applications for registration of the vehicles described in
Section 5303 of this title shall be manufactured or purchased by the
Oklahoma Tax Commission in the required amounts. Said tax stamps
shall be of such design, color combination and material as the Tax
Commission shall deem necessary for the administration of this tax
and to afford the best security to the tax revenue involved. The
Commission may require any manufacturer of such tax stamps to furnish
a bond in such amount as it deems necessary to protect the state and
counties against loss. The Tax Commission shall distribute such tax
stamps to the county treasurer of each county, taking such receipt
therefor as may be necessary, and said county treasurer shall have
the responsibility of the custody and the sale of said stamps to the
person required by this act to obtain same, and shall have the duty
of accounting for said stamps to their respective counties, and to
the Oklahoma Tax Commission as it may require.
Laws 1971, c. 177, § 4, operative July 1, 1971; Laws 1972, c. 97, §
4, operative July 1, 1972; Laws 1973, c. 271, § 4, operative July 1,
1973; Laws 1978, c. 216, § 4, emerg. eff. April 21, 1978; Laws 1981,
c. 118, § 32.
§68-5305. Apportionment of revenue.
The county treasurer shall, at the end of each calendar month,
apportion all collections from the sales of the tax stamps herein
provided for as follows:
Two percent (2%) shall be deposited to the credit of the General
Revenue Fund of the State Treasury, and
Forty-nine percent (49%) shall be allocated to the schools of the
county on an ADA basis, and forty-nine percent (49%) shall go to the
general fund of the county.
Amended by Laws 1986, c. 223, § 49, operative July 1, 1986.
§68-5306. Qualifications.
When used in this act, the terms "automobile", "truck",
"manufactured home", "travel trailer" and "motorcycle" shall have the
meanings as same are respectively defined in the Oklahoma Vehicle
License and Registration Act, and the terms "new automobile", "new
truck", "new motorcycle", "new manufactured home" and "new
recreational vehicle" shall be given the same meaning as the term
"new vehicle" is defined in the Oklahoma Vehicle License and
Registration Act. Vessel and motors shall have the same meanings as
in the Oklahoma Vessel and Motor Registration Act. The term "truck"
shall also include truck-tractors and farm trucks, but this act shall
not be construed as relieving or exempting from ad valorem taxation
the inventory of dealers in special mobilized machinery, motor homes
or any other similar self-propelled vehicles.
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Laws 1971, c. 177, § 6, operative July 1, 1971; Laws 1972, c. 97, §
5, operative July 1, 1972; Laws 1973, c. 271, § 5, operative July 1,
1973; Laws 1978, c. 216, § 5, emerg. eff. April 21, 1978; Laws 1981,
c. 118, § 33.
§68-5401. Tax on farm equipment in lieu of ad valorem tax - Items to
be taxed - Minimum retail list price - Exceptions.
A. A tax is hereby imposed, in lieu of the ad valorem tax on
certain items of the whole goods inventories, both new and used
items, owned and/or possessed for sale or lease by retailers of farm
tractors and other equipment as defined by subsection C of this
section.
B. Items to be taxed in lieu of ad valorem pursuant to the
provisions of this section are those items of inventory of whole
goods agricultural equipment and whole goods attachments thereto
received from suppliers of agricultural equipment, if said items have
a retail list price of Five Hundred Dollars ($500.00) or higher but
not including repair or replacement parts. The tax shall be paid by
the dealer on such items in lieu of the annual ad valorem tax
assessment of dealer's average inventory but shall not relieve any
other property of the dealer from ad valorem taxation. Each dealer
shall maintain a sales log for applicable items pursuant to this
section with a serial number where applicable. The log shall be
subject to inspection by county assessors. Equipment sold by
consignment or by auctions where the selling agent does not take
title to the equipment shall continue to be subject to ad valorem
taxation. Sales of covered whole goods items between dealers shall
be considered wholesale transactions and shall not be subject to the
tax imposed by this section until sold at retail.
C. For purposes of this act, a retailer of farm tractors and
other equipment is any person having a franchise or dealer agreement
for selling and retailing farm tractors and farm implements. On and
after January 1, 1993, those business entities which do not have a
franchise or dealer agreement for retailing farm equipment, but which
from time to time publicly buy and sell such farm equipment shall
also be subject to the provisions of this section, and the tax
imposed by this section shall apply to the same items and under the
same conditions as apply to franchised dealers.
D. "Whole goods agricultural equipment" shall be defined as any
machine, including but not limited to a farm tractor, combine, plow
or baler, capable of performing agricultural operations either with
power from its own engine, or when drawn or otherwise moved by
another whole goods unit. "Whole goods attachments" shall be defined
as those complete attachments which, when fitted to, drawn or
otherwise moved by other equipment, perform specialized agricultural
operations. Such attachments include, but shall not be limited to,
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combine headers, mowers, swathers, shredders and cultivation and
haying equipment.
Added by Laws 1991, c. 149, § 1, eff. Jan. 1, 1992. Amended by Laws
1992, c. 360, § 7, eff. July 1, 1992.
§68-5402. When tax shall apply - Tax stamps - Affixing stamps prior
to transfer of ownership.
A. The in-lieu tax imposed in Section 5401 of this title shall
apply on the date of sale or lease and shall be evidenced by a tax
stamp. The tax stamp shall be based on the following actual sales
price without reduction for any trade-in:
1. Beginning with sales of Five Hundred Dollars ($500.00) to One
Thousand Nine Hundred Ninety-nine Dollars ($1,999.00): $6.00;
2. Two Thousand Dollars ($2,000.00) to Nine Thousand Nine
Hundred Ninety-nine Dollars ($9,999.00): $12.00;
3. Ten Thousand Dollars ($10,000.00) to Nineteen Thousand Nine
Hundred Ninety-nine Dollars ($19,999.00): $18.00;
4. Twenty Thousand Dollars ($20,000.00) to Twenty-nine Thousand
Nine Hundred Ninety-nine Dollars ($29,999.00): $24.00;
5. Thirty Thousand Dollars ($30,000.00) to Thirty-nine Thousand
Nine Hundred Ninety-nine Dollars ($39,999.00): $36.00;
6. Forty Thousand Dollars ($40,000.00) to Forty-nine Thousand
Nine Hundred Ninety-nine Dollars ($49,999.00): $48.00;
7. Fifty Thousand Dollars ($50,000.00) to Fifty-nine Thousand
Nine Hundred Ninety-nine Dollars ($59,999.00): $60.00;
8. Sixty Thousand Dollars ($60,000.00) to Sixty-nine Thousand
Nine Hundred Ninety-nine Dollars ($69,999.00): $72.00;
9. Seventy Thousand Dollars ($70,000.00) to Seventy-nine
Thousand Nine Hundred Ninety-nine Dollars ($79,999.00): $84.00;
10. Eighty Thousand Dollars ($80,000.00) to Eighty-nine Thousand
Nine Hundred Ninety-nine Dollars ($89,999.00): $96.00; and
11. Ninety Thousand Dollars ($90,000.00) and above: $108.00.
B. The appropriate tax stamp or stamps shall be affixed by the
dealer to the dealer's copy of the sales invoice covering new or used
whole goods agricultural equipment and whole goods attachments
thereto sold before transferring ownership to any new or used farm
implement.
Added by Laws 1991, c. 149, § 2, eff. Jan. 1, 1992. Amended by Laws
1992, c. 360, § 8, eff. July 1, 1992.
§68-5403. Manufacture or purchase of stamps - Form - Bond -
Distribution - Custody.
A. The tax stamp or stamps required by Section 5402 of this
title to be affixed upon the dealer's copy of the sales invoice
covering each new or used whole goods agricultural equipment or whole
goods attachment thereto sold shall be manufactured or purchased by
the Oklahoma Tax Commission in the required amounts. Said tax stamps
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shall be of such design, color combination and material and value in
multiples of Six Dollars ($6.00) as the Tax Commission shall deem
necessary for the administration of this tax and to afford the best
security to the tax revenue involved. Said stamps shall be purchased
by dealers in the county where the business is located.
B. The Commission may require any manufacturer of such tax
stamps to furnish a bond in such amount as it deems necessary to
protect the state and local taxing entities against loss.
C. The Tax Commission shall distribute such tax stamps to the
county treasurer of each county, taking such receipt therefor as may
be necessary. The county treasurer shall have the responsibility of
the custody and the sale of the stamps to the person required by
Section 5402 of this title to obtain such stamps. In addition, the
county treasurer shall have the duty of accounting for said stamps to
their respective counties, and to the Oklahoma Tax Commission as it
may require.
Added by Laws 1991, c. 149, § 3, eff. Jan. 1, 1992. Amended by Laws
1992, c. 360, § 9, eff. July 1, 1992.
§68-5404. Apportionment of collections from stamp sales - Report to
county assessor - Computation of new assessed valuation.
The county treasurer shall apportion each month all collections
from the sale of tax stamps pursuant to Section 5402 of this title as
follows:
1. Two percent (2%) shall be deposited to the credit of the
General Revenue Fund of the State Treasury; and
2. Ninety-eight percent (98%) shall be distributed as if said
funds had been collected as ad valorem tax where the farm implement
dealer's business is located.
Funds received by taxing jurisdictions from this source shall be
utilized as if the said funds had in fact been generated by ad
valorem taxes, including servicing of debt by sinking funds. On and
after January 1, 1993, and at the end of each calendar year
thereafter, the treasurer shall furnish a report to the county
assessor, which shall show the total amount of in-lieu taxes
authorized by this act and apportioned during the fiscal year to
those taxing jurisdictions authorized to receive revenue from such
in-lieu taxes. The assessor shall calculate annually the amount of
assessed valuation that otherwise would be displaced by such in-lieu
tax, by dividing the total amount of revenue derived from such tax
apportioned to each taxing jurisdiction by the actual millage rate
levied by each taxing jurisdiction during the fiscal year. The
assessor shall add the result of that calculation to the actual
assessed valuation of each taxing jurisdiction to determine the new
adjusted assessed valuation of each taxing jurisdiction, and said
adjusted assessed valuation shall be used for all purposes, including
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the determination of debt limits, in the following fiscal year
whenever the term "assessed valuation" is required to be used.
Added by Laws 1991, c. 149, § 4, eff. Jan. 1, 1992. Amended by Laws
1992, c. 27, § 1, eff. July 1, 1992; Laws 1993, c. 146, § 26.
§68-5501. Repealed by Laws 2018, 2nd Ex. Sess., c. 16, § 1, emerg.
eff. April 10, 2018.
NOTE: This section was added by Section 9 of House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature, c.
16. The Senate voted on and passed House Bill No. 1010 on the
condition that the House repeal Sections 9 through 15 of that bill.
Sections 9 through 15 enacted the Oklahoma Occupancy Tax Act.
§68-5502. Repealed by Laws 2018, 2nd Ex. Sess., c. 16, § 1, emerg.
eff. April 10, 2018.
NOTE: This section was added by Section 10 of House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature. The
Senate voted on and passed House Bill No. 1010 on the condition that
the House repeal Sections 9 through 15 of that bill. Sections 9
through 15 enacted the Oklahoma Occupancy Tax Act.
§68-5503. Repealed by Laws 2018, 2nd Ex. Sess., c. 16, § 1, emerg.
eff. April 10, 2018.
NOTE: This section was added by Section 11 of House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature. The
Senate voted on and passed House Bill No. 1010 on the condition that
the House repeal Sections 9 through 15 of that bill. Sections 9
through 15 enacted the Oklahoma Occupancy Tax Act.
§68-5504. Repealed by Laws 2018, 2nd Ex. Sess., c. 16, § 1, emerg.
eff. April 10, 2018.
NOTE: This section was added by Section 12 of House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature. The
Senate voted on and passed House Bill No. 1010 on the condition that
the House repeal Sections 9 through 15 of that bill. Sections 9
through 15 enacted the Oklahoma Occupancy Tax Act.
§68-5505. Repealed by Laws 2018, 2nd Ex. Sess., c. 16, § 1, emerg.
eff. April 10, 2018.
NOTE: This section was added by Section 13 of House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature. The
Senate voted on and passed House Bill No. 1010 on the condition that
the House repeal Sections 9 through 15 of that bill. Sections 9
through 15 enacted the Oklahoma Occupancy Tax Act.
§68-5506. Repealed by Laws 2018, 2nd Ex. Sess., c. 16, § 1, emerg.
eff. April 10, 2018.
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NOTE: This section was added by Section 14 of House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature. The
Senate voted on and passed House Bill No. 1010 on the condition that
the House repeal Sections 9 through 15 of that bill. Sections 9
through 15 enacted the Oklahoma Occupancy Tax Act.
§68-5507. Repealed by Laws 2018, 2nd Ex. Sess., c. 16, § 1, emerg.
eff. April 10, 2018.
NOTE: This section was added by Section 15 of House Bill No. 1010 of
the 2nd Extraordinary Session of the 56th Oklahoma Legislature. The
Senate voted on and passed House Bill No. 1010 on the condition that
the House repeal Sections 9 through 15 of that bill. Sections 9
through 15 enacted the Oklahoma Occupancy Tax Act.
§68-6001. Definitions.
As used in Section 6001 et seq. of this title:
1. "Aircraft" means and includes every self-propelled plane,
airplane, helicopter, or balloon or sailplane manufactured by mass
production or individually constructed or assembled, used, or
designed for navigation or flight in the air or airspace, and subject
to registration with the Federal Aviation Administration;
2. "Commercial airline" means an air carrier, foreign air
carrier or intrastate air carrier, as defined by Section 40102 of
Title 49 of the United States Code, 49 U.S.C., Section 40102, and
operating pursuant to Part 121 or 129 of Title 14 of the Code of
Federal Regulations, 14 CFR, Part 121 or 129, or conducting scheduled
or unscheduled services pursuant to Part 135 thereof, provided any
such aircraft used to provide such services operates under Part 135
for at least fifty percent (50%) of its annual operations. For the
purpose of satisfying this requirement, such operations may not
include those chartered by the aircraft owner as an individual or as
a business entity in which the aircraft owner owns a majority
interest;
3. "Purchase price" means the total amount paid for the aircraft
whether paid in money or otherwise. "Purchase price" is further
defined as the fair market value when no current purchase is
involved; and
4. "Use" means and includes the operation or basing of an
aircraft on or from any airport in this state for a period of thirty
(30) days or more. For purposes of Section 6001 et seq. of this
title, the term "use" does not apply to aircraft which are intended
for exclusive use in another state, but which are stored in this
state pending shipment to such other state, or aircraft which are
retained in this state solely for fabrication, repair, testing,
alteration, modification, refurbishing or maintenance.
Added by Laws 1984, c. 138, § 2, operative July 1, 1984. Amended by
Laws 1995, c. 337, § 12, emerg. eff. June 9, 1995; Laws 1996, c. 344,
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§ 2, eff. July 1, 1996; Laws 2000, c. 239, § 2, eff. July 1, 2000;
Laws 2018, c. 276, § 1, emerg. eff. May 10, 2018.
§68-6002. Levy of tax - Interest.
Beginning on and after July 1, 1984, there shall be levied an
excise tax of three and one-fourth percent (3 1/4%) of the purchase
price of each aircraft that is to be registered with the Federal
Aviation Administration, upon the transfer of legal ownership of any
such aircraft or the use of any such aircraft within this state. The
excise tax levied pursuant to the provisions of Sections 6001 through
6004 of this title is in lieu of all other taxes on the transfer or
the first registration in this state on aircraft, including optional
equipment and accessories attached thereto at the time of sale and
sold as a part thereof, except annual aircraft registration fees.
The tax hereby levied shall be due at the time of the transfer of
legal ownership or first registration in this state, and shall be
collected by the Oklahoma Tax Commission at the time of the issuance
of a certificate of registration for any such aircraft. The excise
tax levied pursuant to the provisions of this section shall be
delinquent from and after the twentieth day after the legal ownership
or possession of any aircraft is obtained. Any person failing or
refusing to pay the tax provided for in this section on or before the
date of delinquency shall pay, in addition to the tax, a penalty of
ten percent (10%) on the total amount of tax due. Interest shall be
collected on the total delinquent tax at the rate of one and one-
fourth percent (1 1/4%) per month from the date of the delinquency
until said tax is paid.
Added by Laws 1984, c. 138, § 3, operative July 1, 1984. Amended by
Laws 1985, c. 179, § 95, operative July 1, 1985; Laws 1991, c. 342, §
25, emerg. eff. June 15, 1991.
§68-6003. Exemptions.
The following aircraft shall be exempt from provisions of Section
6001 et seq. of this title:
1. Aircraft manufactured under an F.A.A. approved certificate
and which are owned and in the physical possession of the
manufacturer of the aircraft. The aircraft shall have an aircraft
exemption license as provided for in Section 254 of Title 3 of the
Oklahoma Statutes;
2. Aircraft owned by dealers and in the dealer's inventory, not
including aircraft that are used personally or for business. In
order for this exemption to apply, the dealer shall be licensed in
accordance with Section 254.1 of Title 3 of the Oklahoma Statutes;
3. Aircraft of the federal government, any agency thereof, any
territory or possession, any state government, agency, or political
subdivision thereof;
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4. Aircraft transferred from one corporation or limited
liability company to another corporation or limited liability company
pursuant to reorganization of the corporation or limited liability
company. For the purpose of this section the term reorganization
means a statutory merger, consolidation, or acquisition;
5. Aircraft purchased or used by commercial airlines as defined
by paragraph 2 of Section 6001 of this title, provided any such
aircraft does not operate under Part 91 of Title 14 of the Code of
Federal Regulations, 14 C.F.R., Part 91, for more than fifty percent
(50%) of its annual operations. If the operations of such aircraft
are not at least fifty percent (50%) Part 135 charter operations
annually, the excise tax levied pursuant to the provisions of Section
6002 of this title shall be due and payable. An aircraft owner shall
provide a report to the Oklahoma Tax Commission on an annual basis
detailing the operations of the aircraft and any supporting flight,
maintenance or charter log books required by the Commission. For the
purpose of satisfying this requirement, such operations may not
include those chartered by the aircraft owner as an individual or as
a business entity in which the aircraft owner owns a majority
interest;
6. Aircraft transferred in connection with the dissolution or
liquidation of a corporation or limited liability company and only if
included in a payment in kind to the shareholders or members;
7. Aircraft transferred to a corporation for the purpose of
organizing such corporation. However, the former owners of the
aircraft must have control of the corporation in proportion to their
interest in the aircraft prior to the transfer;
8. Aircraft transferred to a partnership or limited liability
company when the organization of the partnership or limited liability
company is by the former owners of the aircraft. However, the former
owners of the aircraft must have control of the partnership in
proportion to their interest in the aircraft prior to the transfer;
9. Aircraft transferred from a partnership or limited liability
company to the members of the partnership or limited liability
company and if made in payment in kind in the dissolution of the
partnership;
10. Aircraft transferred or conveyed to a partner of a
partnership or shareholder or member of a limited liability company
or other person who after such sale owns a joint interest in the
aircraft and on which the sales or use tax levied pursuant to the
provisions of this title or the excise tax levied pursuant to the
provisions of Section 6002 of this title have previously been paid on
the aircraft;
11. Aircraft on which a tax levied pursuant to the provisions of
the laws of another state, equal to or in excess of the excise tax
levied by Section 6002 of this title, has been paid by the person
using the aircraft in this state. Aircraft on which a tax levied
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pursuant to the laws of another state, in an amount less than the
excise tax levied by Section 6002 of this title, has been paid by the
person using the aircraft in this state shall be subject to the levy
of the excise tax at a rate equal to the difference between the rate
of tax levied by Section 6002 of this title and the rate of tax
levied by the other state;
12. Aircraft when legal ownership of such aircraft is obtained
by the applicant for a certificate of title by inheritance;
13. Aircraft when legal ownership of such aircraft is obtained
by the lienholder or mortgagee under or by foreclosure of a lien or
mortgage in the manner provided for by law;
14. Aircraft which is transferred between husband and wife or
parent and child where no valuable consideration is given;
15. Aircraft which is purchased by a resident of this state and
used exclusively in this state for agricultural spraying purposes;
provided, if such aircraft is sold, leased or used outside this state
or for a purpose other than agricultural spraying at any time within
three (3) years from the date of purchase, the excise tax levied
pursuant to the provisions of Section 6002 of this title shall be due
and payable. For purposes of this subsection, "agricultural
spraying" means the aerial application of any substance sold and used
for soil enrichment or soil corrective purposes or for promoting the
growth and productivity of plants and animals;
16. Aircraft which have a selling price in excess of Two Million
Five Hundred Thousand Dollars ($2,500,000.00) and which are
transferred to a purchaser who is not a resident of this state for
immediate transfer out of state;
17. Aircraft which is transferred without consideration between
an individual and an express trust which that individual or the
spouse, child or parent of that individual has a right to revoke; and
18. Rotary-wing aircraft purchased to be used exclusively for
the purpose of training U.S. military personnel or other training
authorized by the U.S. Government. The exemption provided by this
paragraph shall cease to be effective on January 1, 2018.
Added by Laws 1984, c. 138, § 4, operative July 1, 1984. Amended by
Laws 1985, c. 341, § 3, emerg. eff. July 30, 1985; Laws 1986, c. 41,
§ 8, operative July 1, 1986; Laws 1991, c. 184, § 1, eff. July 1,
1991; Laws 1992, c. 225, § 4, eff. July 1, 1992; Laws 1993, c. 41, §
1, emerg. eff. April 5, 1993; Laws 1993, c. 366, § 49, eff. Sept. 1,
1993; Laws 1994, c. 363, § 11, eff. July 1, 1994; Laws 1995, c. 337,
§ 13, emerg. eff. June 9, 1995; Laws 1996, c. 344, § 3, eff. July 1,
1996; Laws 1997, c. 294, § 27, eff. July 1, 1997; Laws 1999, c. 283,
§ 1, eff. July 1, 1999; Laws 2000, c. 138, § 3, eff. July 1, 2000;
Laws 2013, c. 380, § 1, eff. Nov. 1, 2013; Laws 2018, c. 276, § 2,
emerg. eff. May 10, 2018.
NOTE: Laws 1991, 1st Ex.Sess., c. 2, § 14 repealed by Laws 1992, c.
225, § 11, eff. July 1, 1992.
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§68-6003.1. Repealed by Laws 2009, c. 424, § 1, emerg. eff. June 1,
2009.
§68-6004. Report on transfer of legal ownership of aircraft -
Cancellation or suspension of license.
The Tax Commission shall require every person licensed as a
dealer in aircraft pursuant to the provisions of Sections 251 through
257 of Title 3 of the Oklahoma Statutes to make a report to the Tax
Commission within a period of thirty (30) days after the transfer by
such person of the legal ownership of any aircraft. The report shall
be made on a form prescribed and furnished by the Tax Commission,
showing the name and address of the purchaser, a description of the
aircraft, including the name of the manufacturer, the Federal
Aviation Administration registration number of the aircraft, the type
and year manufactured, the serial number, the date of the transfer,
and the amount of the sale price. The Tax Commission may cancel or
suspend the license of any person licensed as a dealer in aircraft
pursuant to the provisions of Sections 251 through 257 of Title 3 of
the Oklahoma Statutes who shall fail or refuse to comply with the
provisions of Sections 2 through 8 of this act.
Added by Laws 1984, c. 138, § 5, operative July 1, 1984.
§68-6005. Distribution of revenues.
A. For fiscal years beginning prior to July 1, 1999, all
revenues derived pursuant to the provisions of Sections 6001 through
6007 of this title shall be paid monthly by the Oklahoma Tax
Commission to the State Treasurer and placed to the credit of the
General Revenue Fund to be paid out pursuant to direct appropriation
by the Legislature.
B. 1. For the fiscal year beginning July 1, 1999, fifty percent
(50%) of all revenues derived pursuant to the provisions of Sections
6001 through 6007 of this title shall be paid monthly by the Tax
Commission to the State Treasurer and placed to the credit of the
General Revenue Fund to be paid out pursuant to direct appropriation
by the Legislature, and fifty percent (50%) of the revenues shall be
placed to the credit of the Oklahoma Aeronautics Commission Revolving
Fund.
2. For fiscal year 2001 through fiscal year 2015, one hundred
percent (100%) of the revenues derived pursuant to the provisions of
Sections 6001 through 6007 of this title shall be paid monthly by the
Tax Commission to the State Treasurer and shall be placed to the
credit of the Oklahoma Aeronautics Commission Revolving Fund.
3. For the fiscal year beginning July 1, 2015, and for each
fiscal year thereafter, the first Four Million Five Hundred Thousand
Dollars ($4,500,000.00) of the revenues each fiscal year derived
pursuant to the provisions of Sections 6001 through 6007 of this
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title shall be paid by the Tax Commission to the State Treasurer and
placed to the credit of the Oklahoma Aeronautics Commission Revolving
Fund, and all such revenues derived each fiscal year in excess of
Four Million Five Hundred Thousand Dollars ($4,500,000.00) shall be
paid by the Tax Commission to the State Treasurer and placed to the
credit of the General Revenue Fund to be paid out pursuant to direct
appropriation by the Legislature.
Added by Laws 1984, c. 138, § 6, operative July 1, 1984. Amended by
Laws 1998, c. 303, § 1, eff. July 1, 1999; Laws 1999, c. 283, § 3,
eff. July 1, 1999; Laws 2015, c. 347, § 1, eff. Nov. 1, 2015.
§68-6006. Seizure and sale of aircraft.
A. If the owner of an aircraft subject to the tax levied
pursuant to the provisions of this act fails or refuses to pay said
tax after proper demand thereof by an officer or agent of the Tax
Commission, such officer or agent shall report said failure to the
Tax Commission, and shall seize and hold the aicraft in the same
manner as provided for in Section 116.14 of Title 47 of the Oklahoma
Statutes for the seizure of motor vehicles.
B. The Tax Commission, upon demand of the owner of said
aircraft, shall accord a hearing to said owner as provided for by law
and enter its findings and order accordingly. If it shall be
determined by the Tax Commission that said tax is due and payable,
then it shall issue its warrant directly to the sheriff of the county
in which the aircraft is located, and direct the sale of such
aircraft according to the same procedures provided for in Section
116.14 of Title 47 of the Oklahoma Statutes for the sale of vehicles
for failure to pay the annual license fee. Such seizure and sale of
such aircraft may include both the registration fee due and the
excise tax levied pursuant to the provisions of this act, together
with all costs of advertisement and sale. The sale shall be
conducted in the same manner as provided for by law for the sale of
personal property under execution.
Added by Laws 1984, c. 138, § 7, operative July 1, 1984.
§68-6007. Rules and regulations.
Authority is hereby given to the Oklahoma Tax Commission to
promulgate all necessary rules and regulations for the purpose of
implementing and enforcing the provisions of Sections 2 through 6 of
this act.
Added by Laws 1984, c. 138, § 8, operative July 1, 1984.
§68-6101. Assessments - Rebates.
A. All parties required to pay an assessment pursuant to Section
173 of Title 85 of the Oklahoma Statutes shall be entitled to receive
a rebate equal to two-thirds (2/3) of the amount of the assessment
actually paid, subject to application to and approval of the same by
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the Oklahoma Tax Commission. This rebate shall only apply to
assessments due after January 15, 2002. This rebate shall not be
considered in determining tax liability of an insurer pursuant to
Section 629 of Title 36 of the Oklahoma Statutes.
B. Beginning January 1, 2003, the Oklahoma Tax Commission shall
accept applications for rebates from all eligible parties for
assessments paid pertaining to the previous calendar year. If any
party fails to apply for a rebate on or before May 31 of each year,
the Tax Commission shall reduce the amount of the rebate in the
application by ten percent (10%). No rebates shall be paid until
after July 1 of each year.
C. The Oklahoma Tax Commission may promulgate rules as necessary
to effectuate the provisions of this act.
Added by Laws 2002, c. 31, § 2, emerg. eff. April 10, 2002. Amended
by Laws 2007, c. 155, § 16, eff. Nov. 1, 2007.
§68-6102. Workers' Compensation Assessment Rebate Fund.
There is hereby created within the State Treasury a special fund
for the Oklahoma Tax Commission to be designated the “Workers’
Compensation Assessment Rebate Fund”. The Oklahoma Tax Commission is
hereby authorized and directed to withhold a portion of the taxes
levied and collected pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes for deposit into the fund. The amount deposited
shall be appropriate to pay the rebates provided for in Section 2 of
this act. All of the amounts deposited in such fund shall be used
and expended by the Oklahoma Tax Commission solely for the purpose of
payment of rebates authorized by Section 2 of this act. The
liability of the State of Oklahoma to make the rebate payments under
Section 2 of this act shall be limited to the balance contained in
the fund created by this section.
Added by Laws 2002, c. 31, § 3, emerg. eff. April 10, 2002.
§68-24100. Renumbered as § 3020 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24101. Renumbered as § 3021 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and by Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24102. Renumbered as § 3022 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24103. Renumbered as § 3023 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
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§68-24104. Renumbered as § 3024 of this title by Laws 1988, c. 162,
§ 163, eff. January 1, 1992 and by Laws 1991, c. 249, § 3, eff.
January 1, 1992.
§68-24105. Renumbered as § 3025 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24106. Renumbered as § 3026 of this title by Laws 1988, c. 162,
§ 163, eff. January 1, 1992, and by Laws 1991, c. 249, § 3, eff.
January 1, 1992.
§68-24107. Renumbered as § 3027 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24108. Renumbered as § 3028 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24109. Renumbered as § 3029 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24110. Renumbered as § 3030 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24111. Renumbered as § 3031 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24112. Renumbered as § 3032 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24113. Renumbered as § 3033 of this title by Laws 1988, c. 162,
§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,
1992.
§68-24200. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24201. Repealed by Laws 1988, c. 162, § 165, eff. Jan. 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-24202. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24203. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24204. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24205. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24206. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24207. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24208. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24209. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24210. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24211. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24212. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24213. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24214. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24215. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24216. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24217. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-24218. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24219. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24220. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24227. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24228. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24229. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24230. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24231. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24232. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24233. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24237. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24302.5. Renumbered as § 3401 of this title by Laws 1988, c.
162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.
1, 1992.
§68-24302.6. Renumbered as § 3402 of this title by Laws 1988, c.
162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.
1, 1992.
§68-24302.7. Renumbered as § 3403 of this title by Laws 1988, c.
162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.
1, 1992.
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§68-24302.8. Renumbered as § 3404 of this title by Laws 1988, c.
162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.
1, 1992.
§68-24302.9. Renumbered as § 3405 of this title by Laws 1988, c.
162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.
1, 1992.
§68-24302.10. Renumbered as § 3406 of this title by Laws 1988, c.
162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.
1, 1992.
§68-24302.11. Renumbered as § 3407 of this title by Laws 1988, c.
162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.
1, 1992.
§68-24303. Repealed by Laws 1988, c. 162, § 165, eff. Jan. 1, 1992
and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24304. Repealed by Laws 1984, c. 295, § 6, eff. Jan. 1, 1985.
§68-24304.1. Renumbered as § 3101 of this title by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-24305. Renumbered as § 3102 of this title by Laws 1988, c. 162,
§ 161, eff. January 1, 1992 and Laws 1991, c. 249, § 1, eff. January
1, 1992.
§68-24306. Renumbered as § 3103 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24306.1. Renumbered as § 3104 of this title by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-24311. Renumbered as § 3105 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24312. Renumbered as § 3106 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
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§68-24313. Renumbered as § 3107 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24313.1. Renumbered as § 3108 of this title by Laws 1988, c.
162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.
1, 1992.
§68-24314. Renumbered as § 3109 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24315. Renumbered as § 3110 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24316. Renumbered as § 3111 of this title by Laws 1988, c. 162,
§ 161, eff. January 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24317. Renumbered as § 3112 of this title by Laws 1988, c. 162,
§ 161, eff. January 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24318. Renumbered as § 3113 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24319. Renumbered as § 3114 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24320. Renumbered as § 3115 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24321. Renumbered as § 3116 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24322. Renumbered as § 3117 of this title by Laws 1988, c. 162,
§ 161, eff. January 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24323. Renumbered as § 3118 of this title by Laws 1988, c. 162,
§ 161, eff. January 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
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§68-24323.1. Renumbered as §3119 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24324. Renumbered as § 3120 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24325. Renumbered as § 3121 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24326. Renumbered as §3122 of this title by Laws 1988, c. 162, §
161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1, 1992.
§68-24327. Renumbered as § 3123 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24328. Renumbered as § 3124 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24329. Renumbered as §3125 of this title by Laws 1988, c. 162, §
161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1, 1992.
§68-24330. Renumbered as § 3126 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24331. Renumbered as § 3127 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24332. Renumbered as § 3128 of this title by Laws 1988, c. 162,
§ 161, eff. January 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24333. Renumbered as § 3129 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24334. Renumbered as § 3130 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan
1, 1992.
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§68-24335. Renumbered as § 3131 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24336. Renumbered as § 3132 of this title by Laws 1988, c. 162,
§ 161, eff. January 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24337. Renumbered as § 3133 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24338. Renumbered as § 3134 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24339. Renumbered as § 3135 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24340. Renumbered as § 3136 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24341. Renumbered as § 3137 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24342. Renumbered as § 3138 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24343. Renumbered as § 3139 of this title by Laws 1988, c. 162,
§ 161, effective January 1, 1992 and Laws 1991, c. 249, § 1, eff.
Jan. 1, 1992.
§68-24344. Renumbered as § 3140 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24345. Renumbered as § 3141 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24346. Renumbered as § 3142 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
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§68-24347. Renumbered as § 3143 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24348. Renumbered as § 3144 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24349. Renumbered as § 3145 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24350. Renumbered as § 3146 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24351. Renumbered as § 3147 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24400. Renumbered as § 3148 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24401. Renumbered as § 3149 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24402. Renumbered as § 3150 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24403. Renumbered as § 3151 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24404. Renumbered as § 3152 of this title by Laws 1988, c. 162,
§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,
1992.
§68-24410. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
§68-24411. Repealed by Laws 1988, c. 162, § 165, eff. January 1,
1992 and by Laws 1991, c. 249, § 4, eff. Jan. 1, 1992.
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§68-50001. Tax on fire insurance gross premiums - Fire Marshal Fund
- Salaries of employees of State Fire Marshal.
A. There is hereby levied upon percentages of fire insurance
gross premiums from a sum of the following lines of insurance: fire,
allied, homeowners multiperil, commercial multiperil, growing crops,
ocean marine, inland marine, auto physical damage (including
collision), and aircraft physical damage, less returns and dividends
to policyholders, which is issued in this state by companies doing
business in this state a tax of five-sixteenths of one percent (5/16
of 1%). The percentages of fire insurance gross premiums to be
considered for taxation shall be determined annually by the
Commissioner. This tax shall be collected annually, by the last day
of February, from companies collecting such premiums and shall be
collected by the Insurance Commissioner as other taxes on insurance
are collected. The Insurance Commissioner shall keep a separate
account of all such monies received and shall pay the same to the
State Treasurer.
B. There is hereby created in the State Treasury a fund for the
Fire Marshal Commission and the State Fire Marshal to be designated
the "Fire Marshal Fund". The fund shall consist of all monies
collected pursuant to the provisions of this section and shall be
used in the performance of duties imposed by law upon the Fire
Marshal Commission and the Office of the State Fire Marshal.
Expenditures from the Fire Marshal Fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment. Beginning July 1, 1982, all
expenditures from the Fire Marshal Fund shall be made pursuant only
to legislative appropriation.
C. All monies annually collected pursuant to the provisions of
this section shall be apportioned as follows:
1. For the fiscal year beginning July 1, 2017, the first One
Million Six Hundred Thousand Dollars ($1,600,000.00) shall be
deposited in the State Fire Marshal Revolving Fund as defined in
Section 324.20b of Title 74 of the Oklahoma Statutes; provided, that
ten percent (10%) of the first One Million Six Hundred Thousand
Dollars ($1,600,000.00) shall be paid into the General Revenue Fund
of this state;
2. For the fiscal year beginning July 1, 2018, and for every
subsequent fiscal year thereafter, the first Two Million Dollars
($2,000,000.00) shall be deposited in the Fire Marshal Fund;
provided, that ten percent (10%) of the first Two Million Dollars
($2,000,000.00) shall be paid into the General Revenue Fund of this
state; and
3. Any remaining monies not apportioned pursuant to paragraphs 1
and 2 of this subsection shall be deposited into the General Revenue
Fund of this state.
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D. Employees of the Office of State Fire Marshal, other than the
State Fire Marshal, shall have salaries commensurate with those fixed
by the Merit System of Personnel Administration. All salaries shall
be payable monthly from funds available to the State Fire Marshal.
The State Fire Marshal, subject to confirmation by the Fire Marshal
Commission, shall appoint and fix the salaries of such employees as
are necessary to fulfill the duties of his office.
Added by Laws 1941, p. 334, § 1, emerg. eff. May 16, 1941. Amended
by Laws 1965, c. 291, § 1, emerg. eff. June 24, 1965; Laws 1967, c.
40, § 1, emerg. eff. March 24, 1967, Laws 1970, c. 103, § 1, emerg.
eff. March 30, 1970; Laws 1973, c. 42, § 1, emerg. eff. April 25,
1973; Laws 1974, c. 113, § 1, emerg, eff., May 1, 1974; Laws 1976, c.
115, § 1, emerg. eff. May 14, 1976; Laws 1977, c. 34, § 1, emerg.
eff. May 14, 1976; Laws 1977, c. 34, § 1, emerg. eff. May 6, 1977;
Laws 1978, c. 163, § 1, emerg. eff. April 7, 1978; Laws 1979, c. 290,
§ 1, emerg. eff. May 25, 1979; Laws 1980, c. 88, § 1, emerg. eff.
April 10, 1980; Laws 1981, c. 239, § 1, emerg. eff. June 22, 1981;
Laws 1982, c. 216, § 4, emerg. eff. April 29, 1982; Laws 1983, c.
202, § 4, operative July 1, 1983; Laws 1987, c. 175, § 34, eff. Nov.
1, 1987; Laws 2012, c. 304, § 569; Laws 2017, c. 232, § 1, eff. July
1, 2017.
NOTE: Laws 1981, c. 36, § 3 repealed by Laws 1981, c. 239, § 2,
emerg. eff. June 22, 1981.
§68-50002. Lost cigarette and tobacco stamps - Refunds.
The Oklahoma Tax Commission is hereby authorized to refund a
wholesaler and/or jobber for cigarette or tobacco tax stamps which
have not been received after a period of ninety (90) days has expired
from the date of mailing such stamps; provided that before any refund
is made, (a) an affidavit shall have been filed by the wholesaler
and/or jobber with the Oklahoma Tax Commission setting forth the
facts, (b) the Oklahoma Tax Commission has made an investigation, and
(c) an audit has been made to determine the loss. Payment of any such
refund shall be made from current collections from such stamps and an
appropriation of so much of said funds as is necessary for such
purpose is hereby made.
Laws 1967, c. 373, § 1, emerg. eff. May 22, 1967.
§68-50003. Return of stamps found after refund.
If, after payment of the refund, the cigarette or tobacco stamps
are found, such stamps shall be returned immediately to the Oklahoma
Tax Commission and failure to return the stamps shall constitute a
felony.
Laws 1967, c. 373, § 2, emerg. eff. May 22, 1967.
§68-50004. Coin-operated amusement devices - Location and hours of
operation - Licensing.
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Any coin-operated amusement device, including pool and billiard
tables, operated in conjunction with any place of business may
lawfully be operated and remain open for play during all hours that
the place of business in which such device is located may lawfully
remain open for business, provided however that not more than one (1)
coin-operated pool and billiard table operate in each individual
place of business outside the city limits of a city or town, and the
presence of such coin-operated amusement devices shall not require
any other license because of their presence, as long as they are
incidental to the operation of such business and there is a valid
coin-operated amusement device license for each such device. Provided
that any incorporated city or town may, by ordinance, authorize and
license family amusement centers offering pool and billiards to
persons of all ages and either sex.
Laws 1967, c. 392, § 1, emerg. eff. May 23, 1967.
§68-50005. Repealed by Laws 2016, c. 29, § 1, eff. Nov. 1, 2016.
§68-50006. Repealed by Laws 2016, c. 29, § 1, eff. Nov. 1, 2016.
§68-50007. Repealed by Laws 2016, c. 29, § 1, eff. Nov. 1, 2016.
§68-50008. Repealed by Laws 2016, c. 29, § 1, eff. Nov. 1, 2016.
§68-50009. Repealed by Laws 2016, c. 29, § 1, eff. Nov. 1, 2016.
§68-50010. Short title.
Section 50010 et seq. of this title shall be known and may be
cited as the "Oklahoma Tourism Promotion Act".
Added by Laws 1987, c. 114, § 1, eff. Nov. 1, 1987. Amended by Laws
2006, 2nd Ex. Sess., c. 44, § 13, eff. July 1, 2007.
§68-50011. Definitions.
As used in the Oklahoma Tourism Promotion Act:
1. "Committee" means the Oklahoma Tourism Promotion Advisory
Committee;
2. "Department" means the Oklahoma Tourism and Recreation
Department; and
3. "Tourism promotion" or "promote Oklahoma tourism" means and
is limited to:
a. the cost of producing advertisements, placement of
those advertisements with the media (newspapers,
magazines, radio, television, billboard, direct mail,
and the Internet) and the production and printing of
collateral materials designed specifically to support
and fulfill information requests generated by the media
advertising campaigns, and the production, printing and
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distribution of brochures and promotions for regional,
national and international tourism conferences.
Tourism promotion shall also include festivals, sites
and events concerning ethnic history and ethnic events
which have occurred or are occurring in this state.
For purposes of this paragraph, "ethnic" means of or
relating to races or large groups of people classed
according to common traits or customs, and
b. the cost of providing a computerized consumer-oriented
traveler response information program. Such program
shall include a comprehensive state data base
containing up-to-date information on state travel
attractions and facilities, including but not limited
to, lodging facilities, restaurants, chambers of
commerce, convention and visitors bureaus, golf
courses, campgrounds, events, regional tourism
organizations and all other attractions. Oklahoma
travel attractions and facilities shall be included on
such data base free of charge.
"Tourism promotion" and "promote Oklahoma tourism" shall not
include expenses for travel or lodging.
Added by Laws 1987, c. 114, § 2, eff. Nov. 1, 1987. Amended by Laws
1988, c. 142, § 4, emerg. eff. April 25, 1988; Laws 1988, c. 287, §
9, operative July 1, 1988; Laws 1989, c. 226, § 1, emerg. eff. May 9,
1989; Laws 1993, c. 366, § 50, eff. Sept. 1, 1993; Laws 1995, c. 296,
§ 1, eff. July 1, 1995; Laws 1997, c. 101, § 1, eff. July 1, 1997;
Laws 1999, c. 390, § 15, emerg. eff. June 8, 1999; Laws 2006, 2nd Ex.
Sess., c. 44, § 14, eff. July 1, 2007.
§68-50012. Repealed by Laws 2006, 2nd Ex. Sess., c. 44, § 19, eff.
July 1, 2007.
§68-50013. Repealed by Laws 2006, 2nd Ex. Sess., c. 44, § 19, eff.
July 1, 2007.
§68-50014. Oklahoma Tourism Promotion Revolving Fund - Oklahoma
Tourism Capital Improvement Revolving Fund.
A. 1. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tourism and Recreation Department, to be
designated the "Oklahoma Tourism Promotion Revolving Fund". The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the Oklahoma Tourism and
Recreation Department and apportioned to such fund pursuant to the
provisions of Sections 1353 and 1403 of this title and such other
monies accredited to the fund pursuant to law.
2. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Oklahoma Tourism
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and Recreation Department for the purpose of Oklahoma tourism
promotion, as defined by Section 50011 of this title, provided that
the Department shall ensure that all areas of the state will be
adequately promoted, and all monies expended from the fund shall
reflect a consistent brand and image in the promotion of Oklahoma
tourism.
3. No monies from this revolving fund shall be transferred for
any purpose to any other state agency or be used for the purpose of
contracting with any other state agency or reimbursing any other
state agency for any expense with the exception of contracting and
payment for research work completed by an institution of The Oklahoma
State System of Higher Education. No monies from this revolving fund
shall be expended for any wage or salary of any employee of any state
agency. Expenditures from the fund shall be made upon warrants
issued by the State Treasurer against claims filed as prescribed by
law with the Director of the Office of Management and Enterprise
Services for approval and payment.
B. 1. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tourism and Recreation Department, to be
designated the "Oklahoma Tourism Capital Improvement Revolving Fund".
The fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all monies received by the Oklahoma
Tourism and Recreation Department and apportioned to such fund
pursuant to the provisions of Sections 1353 and 1403 of this title
and such other monies accredited to the fund pursuant to law.
2. All monies accruing to the credit of the fund are hereby
appropriated and may be budgeted and expended by the Oklahoma Tourism
and Recreation Department for the purpose of funding capital
improvement projects or operations at state parks and tourist
information centers; provided, no more than twenty percent (20%) of
the amount accruing annually shall be expended for the purpose of
funding operations.
3. No monies from this revolving fund shall be transferred for
any purpose to any other state agency. Expenditures from the fund
shall be made upon warrants issued by the State Treasurer against
claims filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment.
Added by Laws 1987, c. 114, § 5, eff. Nov. 1, 1987. Amended by Laws
1995, c. 296, § 2, eff. July 1, 1995; Laws 1998, c. 301, § 17, eff.
Nov. 1, 1998; Laws 2005, c. 17, § 1, eff. Nov. 1, 2005; Laws 2006,
2nd Ex. Sess., c. 44, § 15, eff. July 1, 2007; Laws 2010, c. 466, §
3, eff. July 1, 2010; Laws 2012, c. 304, § 570.
§68-50015. Oklahoma Tourism Promotion Advisory Committee.
A. There is hereby created an Oklahoma Tourism Promotion
Advisory Committee which shall advise the Oklahoma Tourism and
Recreation Department on matters of statewide tourism promotion. The
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Committee shall consist of thirteen (13) members and one ex officio
nonvoting member as follows:
1. Chair of the Senate Tourism Committee, or designee;
2. Chair of the House of Representatives Tourism and Recreation
Committee, or designee;
3. President of the Oklahoma Travel Industry Association, or
designee;
4. President of the Oklahoma Lakes and Countries Association, or
designee;
5. Member of the Oklahoma Tourism and Recreation Commission,
selected by the Oklahoma Tourism and Recreation Commission, whose
occupation shall be in the tourism industry;
6. President of the Oklahoma Hotel/Motel Association, or
designee;
7. President of the Oklahoma Restaurant Association, or
designee;
8. Representative of the City Convention and Tourism Bureau or a
representative of a municipal chamber of commerce, appointed by the
Oklahoma Tourism and Recreation Commission;
9. Director of the Oklahoma Arts Council, or designee;
10. Representative of the tour operator or travel agent sector,
appointed by the Oklahoma Tourism and Recreation Commission;
11. Representative of the transportation sector, including but
not limited to, airlines, bus companies, car rental business,
appointed by the Oklahoma Tourism and Recreation Commission;
12. Executive Director of the Oklahoma Historical Society, or
designee; and
13. Director of the Native American Cultural and Educational
Authority, or designee.
The Director of the Travel Promotion Division of the Oklahoma
Tourism and Recreation Department, or designee, shall serve as the ex
officio nonvoting member.
B. The initial appointed members shall be appointed on or before
January 1, 1988. The term of office of each appointed member shall
be for one (1) year and end on December 31 of each year, but all
members shall hold office until their successors are appointed.
C. The membership shall annually elect a chair and vice-chair of
the Committee, each of whom shall serve for a term of one (1) fiscal
year and until their successor is elected, and who shall perform such
duties as the Committee directs.
D. The members of the Committee shall receive no compensation
for their services or reimbursements for any expenses incurred.
E. The Committee shall hold at least four regular meetings each
calendar year at a place and time to be fixed by the Oklahoma Tourism
and Recreation Commission.
Added by Laws 1987, c. 114, § 6, eff. Nov. 1, 1987. Amended by Laws
1994, c. 47, § 1, emerg. eff. April 11, 1994; Laws 1994, c. 334, § 2,
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eff. July 1, 1994; Laws 1995, c. 296, § 3, eff. July 1, 1995; Laws
1996, c. 348, § 9, eff. July 1, 1996; Laws 2001, c. 355, § 2, emerg.
eff. June 1, 2001; Laws 2010, c. 249, § 1, eff. July 1, 2010.
§68-50016. Master capital improvement plan - Submission of project
list to Legislature.
The Department of Tourism and Recreation shall develop,
periodically revise and maintain a comprehensive state master capital
improvement plan for state park and recreation facilities under its
jurisdiction, and shall prioritize projects within the plan. Prior
to the expenditure of funds in the Oklahoma Tourism Capital
Improvement Revolving Fund, the Department shall identify and list
the specific projects for which such funds will be used, which shall
be taken from the state master plan in the order of priority. If the
Department determines that an emergency exists which could adversely
affect the public peace, health and safety, it may identify and list
a project not taken from the state master plan in the order of
priority. In such instance, the Department shall include a
determination of the existence of such emergency and a justification
therefor.
The list of such projects shall be submitted to the President Pro
Tempore of the Oklahoma State Senate and the Speaker of the Oklahoma
House of Representatives. The Legislature may, within thirty (30)
legislative days after submission of the list, in a bill or joint
resolution approved by a vote of not fewer than two-thirds (2/3) of
the members in each house thereof, disapprove one or more projects on
the list and direct the Department to revise and resubmit the list as
provided herein.
Added by Laws 2006, 2nd Ex. Sess., c. 44, § 16, eff. July 1, 2007.
§68-53001. Renumbered as § 2-11-401 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53002. Renumbered as § 2-11-402 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53003. Renumbered as § 2-11-403 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53004. Renumbered as § 2-11-404 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53005. Renumbered as § 2-11-405 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53006. Renumbered as § 2-11-406 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
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§68-53007. Renumbered as § 2-11-407 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53008. Renumbered as § 2-11-408 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53009. Renumbered as § 2-11-409 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-53010. Renumbered as § 2-11-410 of Title 27A by Laws 1993, c.
145, § 359, eff. July 1, 1993.
§68-54001. Short title.
Sections 5 through 10 of this act shall be known and may be cited
as the "Oklahoma Research and Development Incentives Act".
Added by Laws 1992, c. 225, § 5, eff. July 1, 1992.
§68-54002. Definitions.
As used in the Oklahoma Research and Development Incentives Act:
1. "Qualified purchaser" means any new or expanding business
which adds and maintains for a period of at least thirty-six (36)
months at least ten (10) new full-time-equivalent in-state employees
at an average annual salary of Thirty-five Thousand Dollars
($35,000.00) per employee, as certified by the Employment Security
Commission and is a business which derives at least fifty percent
(50%) of its annual gross revenues from the sale of a product or
service to an out-of-state buyer or consumer;
2. "Qualified purchases" means computers, data processing
equipment, related peripherals and telephone, telegraph or
telecommunications service and equipment; and
3. "Primarily engaged in" means that not less than seventy-five
percent (75%) of the combined annual gross revenues of the original
business and the expanding business or not less than seventy-five
percent (75%) of the annual gross revenues of the new business result
from such activities.
Added by Laws 1992, c. 225, § 6, eff. July 1, 1992.
§68-54003. Purchaser primarily engaged in computer services and data
processing or research and development - Sales and use tax exemption.
A. There are hereby specifically exempted from the taxes levied
by Section 1354 and Section 1402 of Title 68 of the Oklahoma Statutes
sales of qualified purchases to a qualified purchaser which is
primarily engaged in computer services and data processing as defined
under Industrial Group Numbers 7372, 7373, 7374 and 7375 of the SIC
Manual, latest revision, or a qualified purchaser which is primarily
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engaged in research and development as defined under Industrial Group
Numbers 8731, 8732, 8733 and 8734 of the SIC Manual, latest revision.
B. A qualified purchaser which is primarily engaged in computer
services and data processing as defined under Industrial Group Number
7374 of the SIC Manual, latest revision, shall be required to have a
minimum of One Hundred Thousand Dollars ($100,000.00) in qualified
purchases in order to be eligible to receive the exemption provided
for in this section.
C. In order to be eligible to receive the exemption provided for
in this section, a new or expanding business shall not include the
existing employee positions of any business enterprise that is
directly or beneficially owned by a corporation, trust, joint
venture, proprietorship, or partnership doing business in this state
as of January 1, 1992.
D. Eligibility to receive the exemption provided for in this
subsection pursuant to the requirement to derive fifty percent (50%)
of revenues from out-of-state buyers or consumers and pursuant to the
requirement that the business be primarily engaged in computer
services and data processing or in research and development shall be
established, subject to review by the Oklahoma Tax Commission, by
annually filing an affidavit with the Oklahoma Tax Commission stating
that the business so qualifies and such other information as required
by the Commission. For purposes of determining whether annual gross
revenues are derived from sales to out-of-state buyers or consumers,
all sales to the federal government shall be considered to be sales
to an out-of-state buyer or consumer.
Added by Laws 1992, c. 225, § 7, eff. July 1, 1992.
§68-54004. Purchaser primarily engaged in computer services and data
processing or research and development - Refund of state and local
sales taxes.
A. In order to administer the exemption for sales to a qualified
computer services, data processing or research and development
facility as provided by Section 7 of this act, there shall be made a
sales tax refund for state and local sales taxes paid by the account
created by this section to such qualified facility.
B. The Oklahoma Tax Commission shall transfer each month from
sales tax collected the amount which the Commission estimates to be
necessary to make the sales tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local sales taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified computer
services, data processing or research and development facility upon
the principal amount of any refund made to such qualified facility
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for purposes of administering the exemption provided by Section 7 of
this act, shall be determined according to the provisions of this
subsection. For any month during which the Oklahoma Tax Commission
transfers a sum to the account prescribed by subsection B of this
section, the Commission shall determine an interest rate by
determining the rate of interest paid for a three-month Treasury Bill
of the United States government as of the first working day of the
month in which the transfer is made. The interest rate so determined
shall accrue upon the amount transferred to the account. In each
subsequent month, the Commission shall determine the interest rate
paid for a three-month Treasury Bill of the United States government
as of the first working day of the month and such interest rate shall
accrue upon any amount transferred during the month and upon the
amounts previously transferred to the account together with interest
previously accrued upon such amounts.
D. For purposes of this section, state and local sales taxes
paid by a contractor or subcontractor for qualified purchases as
defined in Section 6 of this act, purchased by that contractor or
subcontractor pursuant to a contract with a qualified computer
services, data processing or research and development facility shall,
upon proper showing, be refunded to such qualified facility.
E. The qualified computer services, data processing or research
and development facility shall file with the Oklahoma Tax Commission
the following documentation for any refund claimed:
1. Invoices indicating the amount of state and local sales tax
billed;
2. Affidavit of each vendor that state and local sales tax
billed has not been audited, rebated, or refunded to such qualified
facility but rather the sales tax charged has been collected by the
vendor and remitted to the Oklahoma Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
F. In the event that state and local sales tax was paid by a
contractor or subcontractor, the qualified computer services, data
processing or research and development facility shall file with the
Oklahoma Tax Commission all documentation required in subsection E of
this section but in lieu of the affidavit of each vendor the
qualified facility shall file, for any refund claimed, an affidavit
from the contractor or subcontractor stating that the sales tax
refund of the qualified facility is based on state and local sales
tax paid by the contractor or subcontractor on qualified purchases as
defined in Section 6 of this act, purchased and that the amount of
state and local sales tax claimed was paid to the vendor and no
credit, refund, or rebate has been claimed by the contractor or
subcontractor.
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G. Only sales of qualified purchases as defined in Section 6 of
this act, made after July 1, 1992, shall be eligible for the refund
established by this section.
H. The qualified computer services, data processing or research
and development facility shall file, within thirty-six (36) months of
the date of the first purchase which is exempt from taxation pursuant
to the provisions of Section 7 of this act, with the Oklahoma Tax
Commission a certification issued by the Employment Security
Commission in order to qualify for the refund authorized by this
section.
I. Notwithstanding the provisions of any state tax law, the
amount refunded under this section shall be assessed if the number of
new full-time-equivalent employees drops below the number prescribed
in Section 6 of this act, at any time within thirty-six (36) months
of the date certification is issued by the Oklahoma Employment
Security Commission.
Added by Laws 1992, c. 225, § 8, eff. July 1, 1992.
§68-54005. Purchaser primarily engaged in computer services and data
processing or research and development - Refund of state and local
use taxes.
A. In order to administer the exemption for sales to a qualified
computer services, data processing or research and development
facility as provided by Section 7 of this act, as applicable to the
use tax imposed by law, there shall be made a use tax refund for
state and local taxes paid by qualified facilities for qualified
purchases as defined in Section 6 of this act, from the account
created by this section.
B. The Oklahoma Tax Commission shall transfer each month from
use tax collected the amount which the Commission estimates to be
necessary to make the use tax refund provided by this section to an
account designated as the Commission determines.
C. Any refund shall be paid from the account prescribed by this
section at the time the claim for refund is approved by the Oklahoma
Tax Commission. The amount of the refund shall not exceed the total
state and local use taxes paid together with accrued interest upon
such total. The amount of interest paid to a qualified computer
services, data processing or research and development facility upon
the principal amount of any refund made to such facility for purposes
of administering the exemption provided by Section 7 of this act,
shall be determined according to the provisions of this subsection.
For any month during which the Oklahoma Tax Commission transfers a
sum to the account prescribed by subsection B of this section, the
Commission shall determine an interest rate by determining the rate
of interest paid for a three-month Treasury Bill of the United States
government as of the first working day of the month in which the
transfer is made. The interest rate so determined shall accrue upon
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the amount transferred to the account. In each subsequent month, the
Commission shall determine the interest rate paid for a three-month
Treasury Bill of the United States government as of the first working
day of the month and such interest rate shall accrue upon any amount
transferred during the month and upon the amounts previously
transferred to the account together with interest previously accrued
upon such amounts.
D. For purposes of this section, state and local use taxes paid
by a contractor or subcontractor for qualified purchases as defined
in Section 6 of this act, purchased by that contractor or
subcontractor pursuant to a contract with a qualified facility shall,
upon proper showing, be refunded to such qualified facility.
E. The qualified computer services, data processing or research
and development facility shall file with the Oklahoma Tax Commission
the following documentation for any refund claimed:
1. Invoices indicating the amount of state and local use tax
billed;
2. Affidavit of each vendor that state and local use tax billed
has not been audited, rebated, or refunded to such qualified facility
but rather the use tax charged has been collected by the vendor and
remitted to the Oklahoma Tax Commission; and
3. All additional documentation required to be submitted
pursuant to rules promulgated by the Oklahoma Tax Commission.
F. In the event that state and local use tax was paid by a
contractor or subcontractor, the qualified facility shall file with
the Oklahoma Tax Commission all documentation required in subsection
E of this section but in lieu of the affidavit of each vendor the
qualified facility shall file, for any refund claimed, an affidavit
from the contractor or subcontractor stating that the use tax refund
of the qualified manufacturer is based on state and local use tax,
paid by the contractor or subcontractor on qualified purchases as
defined in Section 6 of this act, purchased and that the amount of
the state and local use tax claimed was paid to the vendor and no
credit, refund, or rebate has been claimed by the contractor or
subcontractor.
G. Only sales of tangible personal property made after July 1,
1992, shall be eligible for the refund established by this section.
H. The qualified computer services, data processing or research
and development facility shall file, within thirty-six (36) months of
the date of the first purchase which is exempt from taxation pursuant
to the provisions of Section 7 of this act, with the Oklahoma Tax
Commission, a certification issued by the Employment Security
Commission in order to qualify for the refund authorized by this
section.
I. Notwithstanding the provisions of any state tax law, the
amount refunded under this section shall be assessed if the number of
new full-time-equivalent employees drops below the number prescribed
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in Section 6 of this act, at any time within thirty-six (36) months
of the date certification is issued by the Oklahoma Employment
Security Commission.
Added by Laws 1992, c. 225, § 9, eff. July 1, 1992.
§68-54006. Repealed by Laws 2013, c. 363, § 20, eff. Jan. 1, 2014.
§68-55001. Definitions – Implementation of federal law – Taxes to
which act applies – Services deemed to be provided by home service
provider.
A. As used in this section:
1. “Charges for mobile telecommunications services” means any
charge for, or associated with, the provision of commercial mobile
radio service, as defined in Section 20.3 of Title 47 of the Code of
Federal Regulations as in effect on June 1, 1999, or any charge for,
or associated with, a service provided as an adjunct to a commercial
mobile radio service, that is billed to the customer by or for the
customer's home service provider regardless of whether individual
transmissions originate or terminate within the licensed service area
of the home service provider;
2. a. “Customer” means, in general:
(1) the person or entity that contracts with the home
service provider for mobile telecommunications
services, or
(2) if the end user of mobile telecommunications
services is not the contracting party, the end
user of the mobile telecommunications service, but
this division applies only for the purpose of
determining the place of primary use.
b. The term “customer” does not include:
(1) a reseller of mobile telecommunications service,
or
(2) a serving carrier under an arrangement to serve
the customer outside the home service provider's
licensed service area;
3. “Designated database provider” means a corporation,
association, or other entity representing the state and political
subdivisions of the state that is:
a. responsible for providing an electronic database
prescribed in Section 3 of this act, and
b. approved by the Tax Commission;
4. “Enhanced zip code” means a United States postal zip code of
9 or more digits;
5. “Home service provider” means the facilities-based carrier or
reseller with which the customer contracts for the provision of
mobile telecommunications services;
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6. “Licensed service area” means the geographic area in which
the home service provider is authorized by law or contract to provide
commercial mobile radio service to the customer;
7. “Mobile telecommunications service” means commercial mobile
radio service, as defined in Section 20.3 of Title 47 of the Code of
Federal Regulations as in effect on June 1, 1999;
8. “Place of primary use” means the street address
representative of where the customer's use of the mobile
telecommunications service primarily occurs, which must be:
a. the residential street address or the primary business
street address of the customer, and
b. within the licensed service area of the home service
provider;
9. “Prepaid telephone calling services” means the right to
purchase exclusively telecommunications services that must be paid
for in advance, that enables the origination of calls using an access
number, authorization code, or both, whether manually or
electronically dialed, if the remaining amount of units of service
that have been prepaid is known by the provider of the prepaid
service on a continuous basis;
10. “Reseller” means a provider who purchases telecommunications
services from another telecommunications service provider and then
resells, uses as a component part of, or integrates the purchased
services into a mobile telecommunications service. The term
“reseller” does not include a serving carrier with which a home
service provider arranges for the services to its customers outside
the home service provider's licensed service area; and
11. “Serving carrier” means a facilities-based carrier providing
mobile telecommunications service to a customer outside a home
service provider's or reseller's licensed service area.
B. The Oklahoma Legislature finds that the United States
Congress has enacted the Mobile Telecommunications Sourcing Act for
the purpose of establishing uniform nationwide sourcing rules for
state and local taxation of mobile telecommunications services. In
general, the rules provide that taxes on mobile telecommunications
services shall be paid to the jurisdiction where the customer’s
primary use of such services occurs, irrespective of where the mobile
telecommunications services originate, terminate, or pass through.
The Oklahoma Legislature desires to implement the federal Mobile
Telecommunications Sourcing Act in the state, and to make state and
local government officials aware of its provisions. The Oklahoma
Legislature recognizes that the federal act is intended to provide
sourcing rules in a manner that is revenue-neutral among the states,
and that the sourcing rules required by it are likely in fact to be
revenue-neutral at the state level. The Oklahoma Legislature further
finds that the federal requirements are within the powers of the
federal government.
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C. 1. This act shall apply to the tax imposed by Section 1354
of Title 68 of the Oklahoma Statutes and any tax, charge, or fee that
may be levied by the state or a taxing jurisdiction within this state
as a fixed charge for each customer or measured by gross amounts
charged to customers for mobile telecommunications services,
regardless of whether such tax, charge, or fee is imposed on the
vendor or customer of the service and regardless of the terminology
used to describe the tax, charge, or fee.
2. This act does not apply to:
a. any tax, charge, or fee levied upon or measured by the
net income, capital stock, net worth, or property value
of the provider of mobile telecommunications service,
b. any tax, charge, or fee that is applied to an equitably
apportioned amount that is not determined on a
transactional basis,
c. any tax, charge, or fee that represents compensation
for a mobile telecommunications service provider's use
of public rights-of-way or other public property,
provided that such tax, charge, or fee is not levied by
the taxing jurisdiction as a fixed charge for each
customer or measured by gross amounts charged to
customers for mobile telecommunication services, or
d. any generally applicable business and occupation tax
that is imposed by the state, is applied to gross
receipts or gross proceeds, is the legal liability of
the home service provider, and that statutorily allows
the home service provider to elect to use the sourcing
method required in this section.
3. The provisions of this act:
a. do not apply to the determination of the taxing situs
of prepaid telephone calling services, and
b. do not apply to the determination of the taxing situs
of air-ground radiotelephone service as defined in
Section 22.99 of Title 47 of the Code of Federal
Regulations as in effect on June 1, 1999.
D. 1. Notwithstanding any other provision of law of this state
or any political subdivision of this state, mobile telecommunications
services provided in a taxing jurisdiction to a customer, the charges
for which are billed by or for the customer's home service provider,
shall be deemed to be provided by the customer's home service
provider.
2. All charges for mobile telecommunications services that are
subject to the tax imposed by Section 1354 of Title 68 of the
Oklahoma Statutes and that are deemed under this act to be provided
to a customer’s place of primary use within this state by the
customer's home service provider are subject to the tax, regardless
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of where the mobile telecommunication services originate, terminate,
or pass through.
3. A home service provider shall be responsible for obtaining
and maintaining the customer's place of primary use. Subject to the
provisions of paragraph 5 of this subsection, a home service provider
may rely on the applicable residential or business street address
supplied by the home service provider's customer, and will not be
liable for any additional taxes, charges, or fees based on a
different determination of the place of primary use for taxes,
charges, or fees that are customarily passed on to the customer as a
separate itemized charge if the reliance on information provided by
its customer is in good faith.
4. Except as provided in paragraph 5 of this subsection, a home
service provider may treat the address used by the home service
provider for tax purposes for any customer under a service contract
or agreement in effect on or before July 28, 2002, as that customer's
place of primary use for the remaining term of such service contract
or agreement, excluding any extension or renewal of such service
contract or agreement, for purposes of determining the taxing
jurisdictions to which taxes, charges, or fees on charges for mobile
telecommunications services are remitted.
5. The Oklahoma Tax Commission may:
a. determine that the address used for purposes of
determining the taxing jurisdictions to which taxes,
charges, or fees for mobile telecommunications services
are remitted does not meet the definition of “place of
primary use” in this section and give binding notice to
the home service provider to change the place of
primary use on a prospective basis from the date of
notice of determination. Before the Tax Commission
gives such notice of determination, the customer shall
be given an opportunity to demonstrate in accordance
with Tax Commission rules and administrative procedures
that the address is the customer's place of primary
use, or
b. determine that the assignment of a taxing jurisdiction
by a home service provider under Section 3 of this act
does not reflect the correct taxing jurisdiction and
give binding notice to the home service provider to
change the assignment on a prospective basis from the
date of notice of determination. The home service
provider shall be given an opportunity to demonstrate
in accordance with Tax Commission rules and
administrative procedures that the assignment reflects
the correct taxing jurisdiction.
6. If charges for nontaxable mobile telecommunications services
are aggregated with and not separately stated from charges that are
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subject to taxation, then the charges for nontaxable mobile
telecommunications services will be subject to taxation unless the
home service provider can reasonably identify charges not subject to
the tax, charge, or fee from its books and records that are kept in
the regular course of business.
7. If a customer believes that an amount of tax, charge or fee,
or assignment of place of primary use or taxing jurisdiction included
on a billing is erroneous, the customer shall notify the home service
provider in writing. The customer shall include in this written
notification the street address for the place of primary use, the
account name and number for which the customer seeks a correction of
the tax assignment, a description of the error asserted by the
customer, and any other information that the home service provider
reasonably requires to process the request. Within sixty (60) days
of receiving a notice under this section, the home service provider
shall review its records and the electronic database or enhanced zip
code to determine the customer’s taxing jurisdiction. If this review
shows that the amount of tax, charge or fee, or assignment of place
of primary use or taxing jurisdiction is in error, the home service
provider shall correct the error and refund or credit the amount of
tax, charge or fee erroneously collected from the customer for a
period of up to two (2) years. If this review shows that the amount
of tax, charge or fee, or assignment of place of primary use or
taxing jurisdiction is correct, the home service provider shall
provide a written explanation to the customer. The procedures in
this section shall be the first course of remedy available to
customers seeking correction of assignment of place of primary use or
taxing jurisdiction, or a refund of or other compensation for taxes,
charges or fees erroneously collected by the home service provider,
and no cause of action based upon a dispute arising from the Act
shall accrue until a customer has reasonably exercised the rights and
procedure set forth herein.
Added by Laws 2001, c. 153, § 2.
§68-55002. Provision of electronic database containing local taxing
jurisdiction information – Liability of home service provider –
Presumption.
A. The Oklahoma Tax Commission may provide an electronic
database to a home service provider or, if the Tax Commission does
not provide such an electronic database to home service providers,
then the designated database provider may provide an electronic
database to a home service provider. Such database shall provide the
appropriate local taxing jurisdiction for each street address in the
state, including to the extent practicable, any multiple postal
street addresses applicable to one street location, and shall be in
the format required by Section 119 of the federal “Mobile
Telecommunications Sourcing Act”.
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B. The Tax Commission or designated database provider shall
provide notice of the availability of the then current electronic
database, and any subsequent revisions thereof, by publication in the
manner normally employed for the publication of informational tax,
charge, or fee notices to taxpayers in the state.
C. A home service provider using the data contained in an
electronic database described in subsection A of this section shall
be held harmless from any tax, charge, or fee liability that
otherwise would be due solely as a result of any error or omission in
such database provided by the Tax Commission or designated database
provider. The home service provider shall reflect changes made to
such database during a calendar quarter not later than thirty (30)
days after the end of such calendar quarter.
D. If an electronic database is not provided under subsection A
of this section, a home service provider shall be held harmless from
any tax, charge, or fee liability in this state that otherwise would
be due solely as a result of an assignment of a street address to an
incorrect taxing jurisdiction if, subject to Section 2 of this act,
the home service provider employs an enhanced zip code to assign each
street address to a specific taxing jurisdiction for each level of
taxing jurisdiction and exercises due diligence at each level of
taxing jurisdiction to ensure that each such street address is
assigned to the correct taxing jurisdiction. If an enhanced zip code
overlaps boundaries of taxing jurisdictions of the same level, the
home service provider must designate one specific jurisdiction within
such enhanced zip code for use in taxing the activity for such
enhanced zip code for each level of taxing jurisdiction. Any
enhanced zip code assignment changed in accordance with Section 2 of
this act is deemed to be in compliance with this section.
E. For purposes of this section, there is a rebuttable
presumption that a home service provider has exercised due diligence
if such home service provider demonstrates that it has:
1. Expended reasonable resources to implement and maintain an
appropriately detailed electronic database of street address
assignments to taxing jurisdictions;
2. Implemented and maintained reasonable internal controls to
promptly correct misassignments of street addresses to taxing
jurisdictions; and
3. Used all reasonably obtainable and usable data pertaining to
municipal annexation, incorporations, reorganizations and any other
changes in jurisdictional boundaries that materially affect the
accuracy of such database.
F. Subsection D of this section applies to a home service
provider that is in compliance with the requirements of that
subsection until the later of:
1. Eighteen (18) months after the nationwide standard numeric
code described in federal “Mobile Telecommunications Sourcing Act”
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has been approved by the Federation of Tax Administrators and the
Multistate Tax Commission; or
2. Six (6) months after the Tax Commission or a designated
database provider in this state provides such database as prescribed
in subsection A of this section.
Added by Laws 2001, c. 153, § 3.
§68-55003. Judgment limiting or impairing federal act – Invalidity
of act.
If a court of competent jurisdiction enters a final judgment on
the merits that:
1. Is based on federal or state law;
2. Is no longer subject to appeal; and
3. Substantially limits or impairs the essential elements of the
federal Mobile Telecommunications Sourcing Act, P.L. 106-252,
codified at 4 U.S.C., Sections 116 through 126 or Sections 2 and 3 of
this act;
then the provisions of this act shall be invalid and shall have no
legal effect as of the date of entry of such judgment.
Added by Laws 2001, c. 153, § 4.
§68-55004. When act applies relating to tax liabilities.
The provisions of this act relating to tax liabilities shall
apply only to charges on or revenues from customer bills issued on or
after August 1, 2002.
Added by Laws 2001, c. 153, § 5.
§68-55005. Facilitating Business Rapid Response to State Declared
Disasters Act of 2015.
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B. As used in this act:
1. "Critical Infrastructure" means property and equipment owned
or used by a telecommunications provider, a cable operator, and other
communications networks, electric generation, transmission and
distribution systems, natural gas and natural gas liquids gathering,
processing, storage, transmission and distribution systems, water
pipelines, and related support facilities that service multiple
customers or citizens including, but not limited to, real and
personal property such as buildings, offices, lines, poles, pipes,
structures, and equipment;
2. "Declared state disaster or emergency" means a disaster or
emergency event:
a. for which a Governor's State of Emergency Proclamation
has been issued,
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b. for which a Presidential Declaration of a Federal Major
Disaster or Emergency has been issued, or
c. other disaster or emergency event within the state for
which a good faith response effort is required, and for
which another authorized official of the state is given
notification from the registered business and such
official designates such event as a disaster or
emergency, thereby invoking the provisions of this act;
3. "Disaster or emergency related work" means repairing,
renovating, installing, building, rendering services or other
business activities that relate to critical infrastructure that has
been damaged, impaired or destroyed by the declared state disaster or
emergency;
4. "Disaster response period" means a period that begins ten
(10) days prior to the first day of the Governor's Proclamation, the
President's Declaration or designation by any other authorized
official of the state, whichever occurs first, and which extends
sixty (60) calendar days after the declared state disaster or
emergency, or any longer period authorized by the applicable state
entity or official;
5. "Out-of-state business" means a business entity that, except
for disaster or emergency related work, has no presence in the state
and conducts no business in the state, whose services are requested
by a registered business or by a state or local government for
purposes of performing disaster or emergency related work in the
state. This shall include a business entity affiliated with the
registered business in the state solely through common ownership. An
out-of-state-business has no registrations, tax filings or nexus in
the state other than disaster or emergency related work during the
tax year immediately preceding the declared state disaster or
emergency;
6. "Out-of-state employee" means an employee who does not work
in the state, except for disaster or emergency related work during
the disaster response period; and
7. "Registered business" means a business entity that is
currently registered to do business in the state prior to the
declared state disaster or emergency.
C. Except as provided in subsection E of this section, an out-
of-state business that conducts operations within the state for
purposes of performing work or services related to a declared state
disaster or emergency during the disaster response period shall not
be considered to have established a level of presence that would
require that business to register, file and/or remit state or local
taxes or that would require that business or its out-of-state
employees to be subject to any state licensing or registration
requirements. This includes any and all state or local business
licensing, registration or regulatory requirements, state and local
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taxes or fees including, but not limited to, unemployment insurance,
state or local occupational licensing fees, use tax or ad valorem tax
on equipment brought into the state temporarily for use during the
disaster response period and subsequently removed from the state.
For purposes of any state or local tax on, or measured by, in whole
or in part, net or gross income or receipts, all activity of the out-
of-state business that is conducted in this state pursuant to this
act shall be disregarded with respect to any filing requirements for
such tax including the filing required for a unitary or combined
group of which the out-of-state business may be a part. For the
purpose of apportioning income, revenue or receipts, the performance
by an out-of-state business of any work in accordance with this title
shall not be sourced to or shall not otherwise impact or increase the
amount of income, revenue or receipts apportioned to this state.
D. No out-of-state employee shall be considered to have
established residency or a presence in the state that would require
that person or that person's employer to file and pay income taxes or
be subjected to tax withholdings or to file and pay any other state
or local tax or fee during the disaster response period. This
includes any related state employer withholding and remittance
obligations, but does not include any transaction taxes or fees as
described in subsection E.
E. Out-of-state businesses and out-of-state employees shall be
required to pay transaction taxes and fees including, but not limited
to, fuel taxes or sales taxes on materials or services consumed or
used in the state subject to sales taxes, hotel taxes, car rental
taxes or fees that the out-of-state affiliated business or out-of-
state employee purchases for use or consumption in the state during
the disaster response period, unless such taxes are otherwise
exempted during a disaster response period.
F. Any out-of-state business or out-of-state employee that
remains in the state after the disaster response period shall:
1. Become subject to the state requirements for establishing
presence, residency or doing business in the state and will therefore
become responsible for any business or employee tax requirements that
ensue; and
2. Complete state and local registration, licensing, and filing
requirements that ensue as a result of establishing the requisite
business presence or residency in the state applicable under the
existing rules.
G. 1. An out-of-state business that enters the state shall,
upon request, provide to the Oklahoma Tax Commission a statement that
it is in the state for purposes of responding to the disaster or
emergency, which statement shall include the business name, state of
domicile, principal business address, federal tax identification
number, date of entry, and contact information.
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2. A registered business in the state shall, upon request,
provide the information required in paragraph 1 of this subsection
for any affiliate that enters the state that is an out-of-state
business. The notification shall also include contact information
for the registered business in the state.
Added by Laws 2015, c. 105, § 1.
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