An Act
ENROLLED HOUSE
BILL NO. 2961 By: Wallace of the House
and
Thompson of the Senate
An Act relating to revenue and taxation; amending 68
O.S. 2011, Section 2370, as amended by Section 1,
Chapter 41, O.S.L. 2014 (68 O.S. Supp. 2020, Section
2370), which relates to taxes in lieu of income tax
for certain entities; modifying rate of tax; and
providing an effective date.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 2370, as
amended by Section 1, Chapter 41, O.S.L. 2014 (68 O.S. Supp. 2020,
Section 2370), is amended to read as follows:
Section 2370. A. For taxable years beginning after December
31, 1989 2021, 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 priv ilege tax at the rate of six
percent (6%) four percent (4%) 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 o f any ENR. H. B. NO. 2961 Page 2
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 va lue, 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.
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 provi ded 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 i ncome
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 there of ENR. H. B. NO. 2961 Page 3
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 s ection 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 Okla homa 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
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 b e 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 af ter July 1, 2012, according to the
provisions of this subsection.
SECTION 2. This act shall become effective January 1, 2022.
ENR. H. B. NO. 2961 Page 4
Passed the House of Representatives the 18th day of May, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the 20th day of May, 2021.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________