An Act
ENROLLED SENATE
BILL NO. 1339 By: Coleman of the Senate
and
Strom of the House
An Act relating to sales tax; amending 68 O.S. 2021,
Sections 1391, 1392, and 1393, which relate to
definitions, election requirements , and notice and
reporting requirements; modifying definition;
defining term; expanding certain products required on
which to report, collect, and remit tax; clarifying
statutory language; expanding obligati on to collect
and remit certain taxes levied by local jurisdiction;
and providing an effective date.
SUBJECT: Tax remittance
BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1391, is
amended to read as follows:
Section 1391. 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 ot her person, or
b. is related to the other person because a third person,
or group of third person s who are affiliated with each
other as defined in this subsection, holds a direct or
indirect ownership interest of more than five perc ent
(5%) in the related person;
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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 fac ilitates
the sale at retail of tangible personal property a marketplace
seller's product. 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
products for sale at retail in any forum, and
b. either directly or indirectly through agreeme nts or
arrangements with third parties, collects the payment
from the purchaser and transmits the paymen t to the
person selling the property.
The term includes a person that may also be a vendor;
4. "Marketplace seller" means a person that has an agreeme nt
with a marketplace facilitator pursuant to which the marketplace
facilitator facilitates sales for the person;
5. "Notice and reporting require ments" means the notice
requirements under Section 4 of this act Section 1393 of this title
and the reporting requi rements under Sections 5 and 6 of this act
Sections 1394 and 1395 of this title;
6. "Product" means tangible personal property, services , or
other transactions taxable under the Oklahoma Sales T ax Code,
Section 1350 et seq. of this title;
7. "Referral" means the transfer by a referrer of a potential
purchaser to a person that advertises or lists produ cts for sale on
the referrer's platform;
7. 8. 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:
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(1) agrees to list or advertise for sale at r etail
one or more products of the marketpl ace seller or
remote seller in a physical or elec tronic medium,
(2) receives consideration from the marketplace
seller or remote seller from the sale of fered 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, and
(4) does not collect a receipt from the purchaser fo r
the sale.
b. The term does not include a p erson 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 perso n that may also be a v endor;
and
8. 9. "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, th rough a forum,
sells tangible personal prope rty products 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 this title. The term does not
include an employee who in the ordinary s cope of employment renders
services to his employer in exchange fo r wages and salaries.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1392, is
amended to read as follows:
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Section 1392. A. Subject to the provisions of subsections C
and D of this section, on or before July 1, 2018, and on or befor e
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 products within this state or delivered
to locations within this state s ubject to tax under Se ction 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 o f this title or to comply
with the notice and reporting requirements. The el ection 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 r eferrer 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 ob tain a
permit under Section 1364 or 1407 of this title. The collection
obligation of a marketplace faci litator or a referrer that elects to
collect and remit tax imposed under Section 1354 or 1402 of this
title also applies to any other taxes admini stered by the Tax
Commission which are levied by l ocal jurisdictions pur suant to
Sections 1370 through 1370.9 of this title and Sect ions 1411 and
2701 of this title on a retail sale of a product.
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 sectio n shall apply to sales:
1. Directly resulting from a referral of a purch aser 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.
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A referrer may make an election under s ubsection A of this section
for the sales described in paragraphs 1 an d 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 w ith the notice and
reporting requirements to an election to col lect 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 an d
obtaining a permit under Section 1364 o r 1407 of this title. The
new election shall be effective thir ty (30) days after the filing
and shall be effective for the balance of the fiscal year in which
the new election was fil ed and for the next succeeding fiscal year.
F. A marketplace facilitato r or a referrer who does not submit
an election under subsectio n A of this section or a new election
under subsection E of t his section shall be d eemed to have elected
to comply with the notice and reporting requir ements.
G. 1. A remote seller that had a ggregate sales of tangible
personal property products within this state or delivered to
locations within this state subject to tax under Section 1 354 or
1402 of this title worth at lea st One Hundred Thousand Dolla rs
($100,000.00) during the preceding or cu rrent calendar year shall
collect and remit the tax imposed under Sectio n 1354 or 1402 of this
title. The duty to collect a nd remit tax shall app ly to the first
calendar month succeed ing the month when the thresh old 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 ma rketplace facilitator or referrer
shall not be included in determi ning 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 re ferrer, a remote seller, a
marketplace facilitator, or a referrer subject to Sections 1391
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through 1397 of this title shall also be subject to Section 1365 of
this title relating to the keepi ng of records and Section 248 of
this title relating to the exami nation of records by the Commission
and agents and employees of the Commission.
SECTION 3. AMENDATORY 68 O.S. 2021, Sectio n 1393, is
amended to read as follows:
Section 1393. A. A marketplace facilitat or or a referrer
required to make an election under subsection A of Sect ion 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 secti on.
B. A marketplace fa cilitator subject to the requirements of
this section shall:
1. Post a conspicuous notice on its forum that informs
purchasers intending to purchase tangible personal prop erty products
for delivery to a location within this state t hat includes all of
the following:
a. sales or use tax may be due in con nection with the
purchase and delivery of the tangible personal
property products,
b. the state requires the purchaser to fi le a return if
use tax is due in connection with the purchas e and
delivery, and
c. the notice is required by this section; and
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 th e purchase,
b. a statement that the purchaser may be required to
remit use tax directly to the Tax Commission, and
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c. instructions for obtaining additio nal information from
the Commission regardin g whether and how to r emit 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, provide d 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 pursu ant to this title or other applicable state
law.
D. A referrer subject to the requirements of this sect ion shall
post a conspicuous notice on its platform that informs purchas ers
intending to purchase tangible personal property products for
delivery to a location within this state that includes all of the
following:
1. Sales or use tax may be due in connec tion with the purchase
and delivery;
2. The person to which the purchas er is being referred may or
may not collect and remit sales or use tax to the Co mmission in
connection with the transaction;
3. The state require s the purchaser to file a return if us e 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 th e
Commission regarding whether and how to remit use tax to t he
Commission; and
6. If the person to whom the purchaser is being refe rred does
not collect sales or use tax on a subsequent purchase by the
purchaser, the person may be required to provide info rmation to the
purchaser and the Commission about the purcha ser's potential use tax
liability.
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E. The notice required under subsect ion D of this section must
be prominently displayed and may include pop -up boxes or
notification by other means that appears when the referrer tra nsfers
a purchaser to another person t o complete the sale.
SECTION 4. This act shall become e ffective January 1, 2023.
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Passed the Senate the 20th day of May, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the 20th day of May, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Gove rnor 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: _______________________________ __