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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2780 By: Pfeiffer of the House
and
Rader of the Senate
COMMITTEE SUBSTITUTE
An Act relating to st ate revenue administration;
amending 68 O.S. 2011, Section 227, as last amended
by Section 1, Chapter 358, O.S.L. 2016 (68 O.S. Supp.
2020, Section 227), which relates to claims for
refunds; providing specified exception to
authorization for refund of taxe s paid erroneously;
amending 68 O.S. 2011, Section 253, as amended by
Section 1, Chapter 273, O.S.L. 2014 (68 O.S. Supp.
2020, Section 253), which relates to liability for
payment of taxes; adding unpaid mixed beverage gross
receipts tax to those taxes for which certain
individuals may be personally liable; authorizing
collection contracts with respect to certain excise
tax; amending 68 O.S. 2011, Section 254, which
relates to hearings before the Oklahoma Tax
Commission; prescribing procedures related to
garnishment; defining term; providing for liability
based upon willful actions; prescribing procedures;
authorizing forms and rules; amending 68 O.S. 2011,
2011, Section 255, which relates to debt collection
for unpaid taxes; modifying time period; amending 68
O.S. 2011, Section 1361.2, which relates to procedure
for claiming specified sales tax exemption for
certain disabled veterans; specifying conditions
under which certain refund may be claimed and
establishing related requirement; updating statutory
language; amending 68 O.S. 2011, Section 1501, which
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relates to definitions; modifying definition to
exclude certain devices; amending Sections 5, 6 and
7, Chapter 260, O.S.L. 2018 (68 O.S. Supp. 2020,
Sections 2947.1, 2947.2 and 2947.3), which relate to
the County Government Education -Technical Revolving
Fund; authorizing direct apportionment of revenue to
specified entities by changing nature of specified
fund; modifying start date for certain
apportionments; conforming references; eliminating
requirement for specified reserve account; updating
reference; requiring Oklahoma Tax Commission to
distribute certain revenue under specified
circumstances; amending 68 O.S. 2011, Section 3204,
as amended by Section 4, Chapter 260, O.S.L. 2018 (68
O.S. Supp. 2020, Secti on 3204), which relates to
documentary stamp tax; conforming language; modifying
start date for certain apportionment; specifying
statutory authority; providing for transfer of
specified funds; amending 68 O.S. 2011, Section 3624,
as last amended by Sectio n 3, Chapter 313, O.S.L.
2019 (68 O.S. Supp. 2020, Section 3624), which
relates to the Oklahoma Film Enhancement Rebate
Program; clarifying certain payments; limiting
liability for payments to balance of specified fund;
updating statutory reference; provid ing for
noncodification; providing for codification; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 227, as last
amended by Section 1, Chapte r 358, O.S.L. 2016 (68 O.S. Supp. 2020,
Section 227), is amended to read as follows:
Section 227. (a) Any A. Except as provided in subsection B of
Section 1361.2 of this title, any taxpayer who has paid to the State
of Oklahoma, through error of fact, o r computation, or
misinterpretation of law, any tax collected by the Tax Commission
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may, as hereinafter provided, be refunded the amount of such tax so
erroneously paid, without interest.
(b) (1) B. 1. Except as otherwise provided by division (2)
paragraph 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) 2. Upon the effective date of this act August 26, 2016,
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.
(c) Said C. The 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 the tax was paid,
the nature and kind of tax so paid, the amount of the tax which said
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the 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 approv ed
or denied by written notice to the taxpayer.
(d) 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) 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 sh all 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) F. The provisions of this section shall not apply: (1) to
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
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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 b y statute; nor, (3) in
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.
SECTION 2. AMENDATORY 68 O.S. 2011, Section 253, as
amended by Section 1, Chapter 273, O.S.L. 2014 (68 O.S. Supp. 2020,
Section 253), is amended to read as follows:
Section 253. A. When the Oklahoma Tax Commission files a
proposed assessment against corporations, limited liability
companies or other legal entities fo r unpaid sales taxes, mixed
beverage gross receipts tax collected pursuant to Section 5 -105 of
Title 37A of the Oklahoma Statutes, withheld income taxes or motor
fuel taxes collected pursuant to Article 5, 6 or 7 of this title,
the Commission shall file su ch proposed assessments against the
individuals personally liable for the tax.
B. Any individual shall be liable for the payment of sales tax,
mixed beverage gross receipts 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
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responsibility for filing returns and making payments of the tax due
the State of Oklahoma.
C. Personal liability for sales tax, mixed beverage gross
receipts 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 1 986, as amended, or regulations
promulgated pursuant to such section.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 255.1A of Title 68, unless there
is created a duplication in numbering, reads as follows:
In order to facilitate and expedite the collection of any state
tax as authorized to be assessed and collected by any state agency,
the Oklahoma Tax Commission may enter into a contract with any state
agency to assist in the collection o f any state tax, penalties or
interest in which that agency has the authority to collect and
enforce. For providing such collection assistance, the Tax
Commission shall charge the state agency a fee not in excess of ten
percent (10%) of the total amount a ctually collected. All funds
retained by the Tax Commission for collection services shall be
deposited in the Tax Commission Reimbursement Fund in the State
Treasury. The Oklahoma Tax Commission and the Oklahoma Employment
Security Commission may enter i nto a contract whereby the Tax
Commission shall have authority to collect and enforce the
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unemployment tax, penalties and interest thereon. Such collection
and enforcement authority shall apply to any unemployment tax,
penalties or interest where a determ ination that an employer owes
delinquent contributions, penalties or interest has become final,
and therefore, the Oklahoma Employment Security Commission shall be
entitled to proceed by levy to collect any delinquent contribution
and to collect any penalt y or interest due and owing as a result of
the delinquency. The contract shall provide for the collection and
enforcement of the unemployment tax, interest and penalties in the
same manner as the collection and enforcement of any state tax
payable by any taxpayer subject to taxation under any state tax law.
SECTION 4. AMENDATORY 68 O.S. 2011, Section 254, is
amended to read as follows:
Section 254. A. Upon a hearing with notice the Oklahoma Tax
Commission shall be entitled to p roceed 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.
B. The Oklahoma Tax Commission may garnish the accrued earnings
of a delinquent taxp ayer employee by sending notice to the
taxpayer's employer. For the purpose of this section, "earnings"
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means any form of payment to an individual including, but not
limited to, salary, wages, commission or other compensation, but
does not include reimbur sements for travel expenses for state
employees. Such notice may be served by mail or by delivery by a
field agent of the Tax Commission to the taxpayer's employer along
with a copy to the delinquent taxpayer. Upon receipt of such notice
of delinquency, the employer shall withhold from compensation due,
or to become due to the employee, the total amount shown by the
notice. The Tax Commission may direct the employer to withhold part
of the amount due, not to exceed twenty -five percent (25%) of
earnings per pay period, until the total amount as shown by the
notice, plus interest and penalty, has been withheld and remitted to
the Tax Commission. The employer's response and calculation of
amounts withheld shall be on a form prescribed by the Tax
Commission.
C. Within seven (7) days after the end of each pay period, or
if the delinquent taxpayer does not have regular pay periods, within
thirty (30) days from the date of the notice, the employer shall
withhold amounts due or provide an explanation to the Tax Commission
why amounts due will not be withheld and remitted to the Tax
Commission. In any case in which the employee ceases to be employed
by the employer before the full amount set forth in the notice of
delinquency, plus delinquent penalty and interest , has been withheld
by the employer, the employer shall immediately notify the Tax
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Commission in writing the date the employee resigned or was
terminated. Any employer who knowingly and willfully refuses to
respond by any means to the notice as provided i n subsection B of
this section may be liable for the total amount as set forth in the
notice. The employer may not terminate delinquent taxpayer employee
based upon the notice of administrative wage garnishment.
D. An administrative wage garnishment may be issued after
ninety (90) days in which the tax has become delinquent, notice has
been sent to the taxpayer of the delinquency and possible remedies
to resolve the delinquency have been provided to the taxpayer, and a
tax warrant has been issued and file d pursuant to Section 231 of
this title. The taxpayer shall have ten (10) days after the
issuance of the notice to the employer to provide any additional
information to the Tax Commission for the garnishment of wages to be
withdrawn or released by the Tax Commission. The Tax Commission
shall withdraw or adjust the garnishment for wages upon proof to the
satisfaction of the Tax Commission that the delinquent tax, interest
and penalty referred to in the notice have been paid or the taxpayer
can show the wages subject to garnishment are exempt pursuant to
state or federal law.
E. The Tax Commission shall prescribe or approve forms and
promulgate rules and regulations for implementing the provisions of
this section.
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SECTION 5. AMENDATORY 68 O.S. 2011, Section 255, is
amended to read as follows:
Section 255. 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 fai ls 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 notif ied 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
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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 i nto
a contract with a person doing business in the State of Oklahoma or
in 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 fi le 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
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bond, certificates of deposits, certificates of savings or U.S.
Treasury bonds, as the Tax Commission may de em 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, reimbursemen ts 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 col lected. 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 collect ion 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 pai d
for the performance of such services. No costs shall be reimbursed
unless authorized in the contract.
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G. All such funds collected by a debt collection agency,
including the fees for collection services as provided for in such
contract, shall be remitte d to the Tax Commission within five (5)
fifteen (15) 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) fifteen (15) days
from the date of identification 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 sec tion
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.
SECTION 6. AMENDATORY 68 O.S. 2011, Section 1361.2, is
amended to read as follows:
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Section 1361.2 A. In order to claim the exemption authori zed
by paragraph 34 of Section 1357 of Title 68 of the Oklahoma Statutes
this title, 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 s hall 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.
B. A claim for refund of sales taxe s erroneously paid may only
be made if a vendor refuses to honor the proof of eligibility issued
by the Tax Commission for the exemption authorized pursuant to
paragraph 34 of Section 1357 of this title and the person eligible
for the exemption submits to the Tax Commission a signed
notification of the vendor's denial of exemption on a form
prescribed by the Commission.
SECTION 7. AMENDATORY 68 O.S. 2011, Section 1501, is
amended to read as follows:
Section 1501. As used in Sectio ns 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,
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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 mus ic 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; co in-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 dev ice" 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;
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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
not limited to cigarettes, candies, gum, cold drinks, hot drinks,
sandwiches, or chips. It shall not mean ven ding 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. Coin-operated devices shall not
include any device dispensing tangible personal property or
providing amusement where payment is made solely through the use of
a credit or debit card or other electronic or digital payment
process.
SECTION 8. AMENDATORY Section 5, Chapter 260, O.S.L.
2018 (68 O.S. Supp. 2020, Section 2947.1), is amended to read a s
follows:
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Section 2947.1 There is hereby created in the State Treasury a
revolving fund an agency special account 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 for
the collection and distribution of documentary stamp revenues as
provided by Section 3204 of Title 68 of the O klahoma 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 Trainin g 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 shal l 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 Sections 2947.2
and 2947.3 of this title .
SECTION 9. AMENDATORY Section 6, Chapter 260, O.S.L.
2018 (68 O.S. Supp. 2020, Section 2947.2), is amended to read as
follows:
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Section 2947.2 A. For the fiscal year ending June 30, 2020
June 30, 2022, and for each fiscal year t hereafter, ten percent
(10%) deposited to the County Government Education -Technical
Revolving Fund in any fiscal year shall be distributed of the
revenue collected pursuant to Section 3204 of this title shall be
apportioned by the Oklahoma Tax Commission m onthly 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 this title.
B. For the fiscal year ending June 30, 2020 June 30, 2022, 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 of
the revenue collected pursuant to Section 3204 of this title shall
be apportioned 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 this title 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
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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 ap ply 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 annual documentary
stamp tax revenue apportionment received by the Center for Local
Government Technology ; provided, if available funds are insufficient
for a ten-percent rebate, the percentage shall be adjusted so that
rebates may be paid.
SECTION 10. AMENDATORY Section 7, Chapter 260, O.S.L.
2018 (68 O.S. Supp. 2020, Section 2947.3), is ame nded to read as
follows:
Section 2947.3 A. Within the County Government Education -
Technical Revolving Fund there shall be established a reserve
account. The reserve account shall consist of any Any revenue not
otherwise apportioned pursuant to the provi sions of subsection A or
subsection B of Section 6 of this act Section 2947.2 of this title
shall be deposited and maintained in the special agency account
created in Section 8 of this act subject to the procedures provided
in this section.
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B. The maximum balance for the reserve agency special 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 C ounty
Training Program may request permission to expend funds in the
reserve account from the Commission on County Government Personnel
Education and Training. The Oklahoma Tax Commission shall, upon
written notification of expenditure approval from the C ommission on
County Government Personnel Education and Training, distribute from
the agency special account the approved amount, if available, to the
Oklahoma State University Center for Local Government Technology or
the Oklahoma Cooperative Extension Ser vice County Training Program,
as applicable.
D. The balance in the reserve account of the County Government
Education-Technical Revolving Fund special agency account shall
serve as a contingency for adverse conditions if the distributions
provided for in subsections A and B of Section 6 of this act Section
2947.2 of this title 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 Oklah oma Tax
Commission shall transfer any amount of revenue in excess of Two
Million Dollars ($2,000,000.00) remaining in the reserve account of
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the County Government Education -Technical Revolving Fund special
agency account to the General Revenue Fund of the State Treasury.
SECTION 11. AMENDATORY 68 O.S. 2011, Section 3204, as
amended by Section 4, Chapter 260, O.S.L. 2018 (68 O.S. Supp. 2020,
Section 3204), is amended to read as follows:
Section 3204. 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 shal l 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 Commiss ion may be used by the county clerk, and
the expenses thereof shall be paid by the county concerned. The use
of 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
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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 a ct
apportion for the fiscal year ending June 30, 2020 June 30, 2022,
and for each fiscal year thereafter, Five Hundred Thousand Dollars
($500,000.00) plus three percent (3%) of the remainder as provided
in Sections 2947.2 and 2947.3 of this title . 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.
SECTION 12. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
On the effective date of this act, all monies remaining in the
County Government Education-Technical Revolving Fund shall be
transferred to the agency special account created in Section 8 of
this act.
SECTION 13. AMENDATORY 68 O.S. 2011, Section 3624, as
last amended by Section 3, Chapter 313, O.S.L. 2019 (68 O.S. Supp.
2020, Section 3624), is amended to read as follows:
Section 3624. 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
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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 i ncreased 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 recordin g 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
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production costs incurred in this state directly relating to the
production;
2. The production comp any 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 completi on 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;
5. The production company shall provide evidence of financing
for production prior to th e 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 sta te 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 Section 3621
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et seq. of this title and an exemption from sales taxes pursua nt 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 Commiss ion 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 claims prequalified and approved by the
Office for 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
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unpaid claim or unpa id portion may be paid in the following fiscal
year subject to the limitations specified in this subsection. The
liability of the State of Oklahoma to make incentive payments
pursuant to this act shall be limited to the balance of the Oklahoma
Film Enhancement Rebate Program Revolving Fund.
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.
4. The payment of a rebate claim approved by the Office for a
production designated as a hig h 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
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b. by payment from the Oklahoma Quick Action Closing Fund
pursuant to Section 48.2 of Title 62 of the Oklahoma
Statues Statutes, if the claim is approved when the
Oklahoma Legislature is not in session.
SECTION 14. This act shall become effec tive November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
02/25/2021 - DO PASS, As Amended and Coauthored.