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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2080 By: McCall
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2011, Section 238.1, which relates to state
licenses; providing exception for p ersons not
previously required to pay income tax or to persons
based on residency within certain time period;
providing for garnishment of wages; removing penalty
for failure to pay licensing fees; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 238.1, is
amended to read as follows:
Section 238.1 A. It is the intent of the Legislature that the
provisions of this section operate to provid e 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 t he 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
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entity. Nothing in this section shall apply to a licensee who was
not previously required to pay income tax or has moved to the state
within the past year.
B. Each licensing entity shall, on a date that allows the Tax
Commission to comply with the notice provisions of subsecti on 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 collect ion 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 Commission shall 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 pursuant to Section 254 of this
title until the taxpayer is deemed by the Tax Commission to be in
compliance with the income tax laws of this state;
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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, pe nalties 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 license e's license at such time
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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 o f compliance comes into compliance,
the Tax Commission shall immediately notify the licensing entity. A
licensing entity shall not be held liable for any action with
respect to a state license pursuant to the provisions of this
section proceed with the garnishment pursuant to paragraph 1 of
subsection C 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 sha ll
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. G. 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
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licensing entity which does not grant an individu al the right to
engage in a profession, occupation or business in this state; and
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 li cense; 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 .
SECTION 2. This act shall become effective November 1, 2021.
58-1-6956 LRB 12/21/20