Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1301 Compare Versions

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28		-	~~ENGROSSED~~ SENATE
29		-	~~BILL NO.~~ ~~1301 By: Rader of the Senate~~
	29	+	SENATE FLOOR VERSION
	30	+	February 8, 2022
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31		-	and
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33		-	Pfeiffer of the House
	33	+	SENATE BILL NO. 1301 By: Rader
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38	39		An Act relating to sales tax; amending 68 O.S. 2021,
39	40		Sections 227 and 1364.1 , which relate to refund of
40	41		erroneous payments and permit to directly remit
41	42		taxes; prohibiting refund of certain erroneous tax
42	43		payment; requiring certain individual s to apply for
43	44		direct pay permit; authorizing claim for refund of
44	45		taxes paid under certain circumstance; conforming
45	46		language; updating statutory language; and providing
46	47		an effective date.
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52	53		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
53	54		SECTION 1. AMENDATORY 68 O.S. 2021, Section 227, is
54	55		amended to read as follows:
55	56		Section 227. A. Except as provided in subsection B of Section
56	57		1361.2 and subsection D of Section 1364.1 of this title, any
57	58		taxpayer who has paid to the State of Oklahoma this state, through
58	59		error of fact, or computation, or misinterpretati on of law, any tax
59	60		collected by the Oklahoma Tax Commission may, as hereinafter
60	61		provided, be refunded the amount of such the tax so erroneously
61	62		paid, without interest.
62	63		B. 1. Except as otherwise provided by paragraph 2 of this
63	64		subsection, any taxpayer who has so paid any such tax may, within
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90	92		three (3) years from the date of payment thereof file with the Tax
91	93		Commission a verified claim for refund of such the tax so
92	94		erroneously paid. The Tax Commission may accept an amended
93	95		withholding tax or other report or return as a verified claim for
94	96		refund if the amended report or return establishes a liability l ess
95	97		than the original report or return previously filed.
96	98		2. Upon August 26, 2016, with respect to the sales tax imposed
97	99		by Section 1354 of this title and with respect to the use tax
98	100		imposed by Section 1402 of this title, any taxp ayer who has so paid
99	101		such the sales or use tax may, within two (2) years from the date of
100	102		payment thereof file with the Tax Commission a verified claim for
101	103		refund of such the tax so erroneously paid. The Tax Commission may
102	104		accept an amended sales or use tax repor t or return as a verified
103	105		claim for refund if the amended report or return establishes a
104	106		liability less than the original report or return previously filed.
105	107		C. The claim so filed with the Tax Commission, except for an
106	108		amended report or return, shall speci fy the name of the taxpayer,
107	109		the time when and period for which the tax was paid, the nature and
108	110		kind of tax so paid, the amount of the tax which the taxpayer
109	111		claimed was erroneously paid, the grounds upon which a refund is
110	112		sought, and such other informati on or data relative to such payment
111	113		as may be necessary to an adjustment thereof by the Tax Commission.
112	114		It shall be the duty of the Commission to determine what amount of
113	115		refund, if any, is due as soon as practicable after such claim has
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140	143		been filed and advise the taxpayer about the correctness of his
141	144		claim and the claim for refund shall be approved or denied by
142	145		written notice to the taxpayer.
143	146		D. If the claim for refund is denied, the taxpa yer may file a
144	147		demand for hearing with the Commission. The demand for hearing must
145	148		be filed on or before the sixtieth day after the date the notice of
146	149		denial was mailed. If the taxpayer fails to file a demand for
147	150		hearing, the claim for refund shall be ba rred.
148	151		E. Upon the taxpayer's timely filing of a demand for hearing ,
149	152		the Commission shall set a date for hearing upon the claim for
150	153		refund which date shall not be later than sixty (60) days from the
151	154		date the demand for hearing was mailed. The taxpayer sha ll be
152	155		notified of the time and place of the hearing. The hearing m ay be
153	156		held after the sixty-day period provided by this subsection upon
154	157		agreement of the taxpayer.
155	158		F. The provisions of this section shall not apply:
156	159		1. To refunds of income tax erroneousl y paid, refunds of which
157	160		tax shall be payable out of the income tax adjustment fund as
158	161		provided by law;
159	162		2. To estate tax because the payment of such tax is covered by
160	163		an order of the Tax Commission and the estate and interested parties
161	164		are given notice that the Commission's position and computation of
162	165		the tax will become fin al unless they protest and resist the payment
163	166		thereof as provided by statute; nor
164	167
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190	194		3. In any case where the tax was paid after an assessment
191	195		thereof was made by the Tax Commission which assessment became final
192	196		under the law.
193	197		SECTION 2. AMENDATORY 68 O.S. 2021, Section 1364.1, is
194	198		amended to read as follows:
195	199		Section 1364.1. A. Every person who qualifies pursuant to
196	200		subsection B of this section and desires to shall apply to the Tax
197	201		Commission for a direct pay permit and directly remit the taxes due
198	202		under Section 1350 et seq. of this title or Section 1401 et seq. of
199	203		this title to the Oklahoma Tax Com mission rather than remit such
200	204		taxes to the vendor may apply to the Tax Commission for a direct
201	205		payment permit. The permit shall be vali d for three (3) years.
202	206		Each such person shall file with the Tax Commission an application
203	207		for a direct payment permit, setting forth such information as the
204	208		Tax Commission may require , including but not limited to:
205	209		1. An agreement that is signed by the o wner of the business or
206	210		representative of the business entity and as a natural person, and,
207	211		in the case of a corporatio n, as a legally constituted officer
208	212		thereof, that provides that th e applicant agrees to:
209	213		a. accrue and remit all taxes imposed by Section 1350 et
210	214		seq. of this title or Section 1401 et seq. of this
211	215		title on the sale or use of all taxable personal
212	216		property or services sold to or leased or rented by
213	217		the applicant. Provided , no tax shall be due from the
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240	245		holder of a direct payment permit on tan gible personal
241	246		property intended solely for use in other states, but
242	247		which is stored in Oklahoma pending shipment to su ch
243	248		other states or which is temporarily retained in
244	249		Oklahoma for the purpose of fabrication, repair,
245	250		testing, alteration, maintenance, or other service,
246	251		b. pay such taxes as required by Section 1365 of this
247	252		title. Provided, in lieu of monthly reports, per sons
248	253		qualifying pursuant to paragraph 2 of subsection B of
249	254		this section owing an average per month of Five
250	255		Hundred Dollars ($500.00) or l ess may file quarterly
251	256		reports and remit taxes due thereunder to the Tax
252	257		Commission on or before the twentieth day of t he month
253	258		following the calendar quarter. If not paid on or
254	259		before the twentieth day of such month, the tax shall
255	260		be delinquent, and
256	261		c. waive the discount permitted by Section 1367.1 of this
257	262		title on the payment of all taxes remitted directly to
258	263		the Tax Commission; and
259	264		2. A description of the accounting method by which the
260	265		applicant proposes to differentiate between taxable and exempt
261	266		transactions.
262	267		Upon verification that the applicant is eligible to receive a
263	268		direct payment permit, the Tax Commission shall iss ue a direct
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290	296		payment permit for the place of business set forth in the
291	297		application for the permit. The Tax Commission shall be the sole
292	298		judge of the applicant's qualifications and may refuse to issue a
293	299		direct payment permit to an applicant. An applicant w ho has been
294	300		denied the issuance of a permit may submit an amen ded application or
295	301		may submit a new application after a reasonable period o f time after
296	302		the denial of the original application.
297	303		B. The following persons shall qualify for a direct payment
298	304		permit as provided in subsection A of this section:
299	305		1. Every person who makes purchases of Eight Hundred Thousand
300	306		Dollars ($800,000.00) or mo re annually in taxable items for use in
301	307		Oklahoma enterprises; or
302	308		2. Every person who makes purchases of drugs for the treatment
303	309		of human beings, medical appliances, medical devices and other
304	310		medical equipment including but not limited to corrective
305	311		eyeglasses, contact lenses, hearing aids, prosthetic devices,
306	312		durable medical equipment, and mobility -enhancing equipment for
307	313		administration or distribution by a practitioner, as defined in
308	314		subsection B of Section 1357.6 of this title, who is authorized by
309	315		law to administer or distribute such items and the cost of such
310	316		items will be reimbursed under the Medicare or Medicaid prog ram.
311	317		C. For exempt purchases made by persons that have been i ssued a
312	318		permit under paragraph 2 of subsection B of this section, the Tax
313	319		Commission shall accept the following information, maintained
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340	347		separate from confidential patient records, as an acceptab le
341	348		accounting method by which the applicant documents the purc hase of
342	349		items exempt under Section 1357.6 of this title:
343	350		1. Patient case number or account number;
344	351		2. Type of insurance; and
345	352		3. Item description or product number.
346	353		D. A claim for refund of sales taxes erroneously paid may only
347	354		be made to the Tax Commission if a vendor refuses to honor the proof
348	355		of eligibility issued by the Commission for the exemption authorized
349	356		pursuant to subsection B of this section, and the person eligible
350	357		for the exemption submits to the Commission a signed notification of
351	358		the vendor's denial of exemption on a form prescribed by the
352	359		Commission.
353	360		SECTION 3. This act shall become effective November 1, 2022.
354		-	Passed the Senate the 22nd day of February, 2022.
355		-
356		-
357		-
358		-	Presiding Officer of the Senate
359		-
360		-
361		-	Passed the House of Representatives the ____ day of __________,
362		-	2022.
363		-
364		-
365		-
366		-	Presiding Officer of the House
367		-	of Representatives
368		-
	361	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	362	+	February 8, 2022 - DO PASS