OK
Oklahoma Senate Bill SB1339

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1339 Compare Versions

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28+ENGROSSED HOUSE AMENDME NTS
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30+ENGROSSED SENATE BILL NO . 1339 By: Coleman of the Senate
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32+ and
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34+ Strom of the House
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4-An Act
5-ENROLLED SENATE
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42+An Act relating to sales tax; amending 68 O.S. 2021,
43+Sections 1391, 1392, and 1393, which relate to
44+definitions, election requirem ents, and notice and
45+reporting requirements; modifying definition;
46+defining term; expanding certain products required on
47+which to report, collect, and remit tax; clarifying
48+statutory language; expanding obligati on to collect
49+and remit certain taxes levied by local jurisdiction;
50+and providing an effective date.
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54+AMENDMENT NO. 1. Page 1, lines 6 through 10, strike the ti tle to
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59+"[ sales tax - expanding certain products required on
60+which to report, collect, and remit tax -
61+effective date ]"
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63+AMENDMENT NO. 2. Page 1, line 12, strike the enacting clause
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65+ENGR. H. A. to ENGR. S. B. NO. 1339 Page 2 1
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90+Passed the House of Representatives the 27th day of April, 2022.
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96+Presiding Officer of the House of
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100+Passed the Senate the ____ day of _______ ___, 2022.
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134+ENGROSSED SENATE
6135 BILL NO. 1339 By: Coleman of the Senate
7136
8137 and
9138
10139 Strom of the House
11140
12141
13142
14143
15144 An Act relating to sales tax; amending 68 O.S. 2021,
16145 Sections 1391, 1392, and 1393, which relate to
17146 definitions, election requirements , and notice and
18147 reporting requirements; modifying definition;
19148 defining term; expanding certain products required on
20149 which to report, collect, and remit tax; clarifying
21150 statutory language; expanding obligati on to collect
22151 and remit certain taxes levied by local jurisdiction;
23152 and providing an effective date.
24153
25154
26155
27-SUBJECT: Tax remittance
28-
29156 BE IT ENACTED BY THE PEOPLE OF THE STA TE OF OKLAHOMA:
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31157 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1391, is
32158 amended to read as follows:
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34159 Section 1391. As used in this act:
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36160 1. "Affiliated person" means a person that, with respect to
37161 another person:
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39162 a. has a direct or indirect ownership interest of more
40163 than five percent (5%) in the ot her person, or
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42164 b. is related to the other person because a third person,
43165 or group of third persons who are af filiated with each
44166 other as defined in this subsection, holds a direct or
45167 indirect ownership interest of more than five perc ent
46168 (5%) in the related person;
47169
48-ENR. S. B. NO. 1339 Page 2
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49194
50195 2. "Forum" means a place where sales at retail occur, whether
51196 physical or electronic. The term inc ludes a store, a booth, a
52197 publicly accessible Internet website, a catalog , or similar place;
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54198 3. "Marketplace facilitator " means a person that fac ilitates
55199 the sale at retail of tangible personal property a marketplace
56200 seller's product. For purposes of thi s section, a person
57201 facilitates a sale at retail if the person or an affiliated person:
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59202 a. lists or advertises tangible personal property
60203 products for sale at retail in any forum, and
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62204 b. either directly or indirectly through agreeme nts or
63205 arrangements with third parties, collects the payment
64206 from the purchaser and transmits the paymen t to the
65207 person selling the property.
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67208 The term includes a person that may also be a vendor;
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69209 4. "Marketplace seller" means a person that has an agreeme nt
70210 with a marketplace fac ilitator pursuant to which the marketplace
71211 facilitator facilitates sales for the person;
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73212 5. "Notice and reporting require ments" means the notice
74213 requirements under Section 4 of this act Section 1393 of this title
75214 and the reporting requirements under Sections 5 and 6 of this act
76215 Sections 1394 and 1395 of this title;
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78216 6. "Product" means tangible personal property, services , or
79217 other transactions taxable under the Oklahoma Sales T ax Code,
80218 Section 1350 et seq. of this title;
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82245 7. "Referral" means the transfer b y a referrer of a potential
83246 purchaser to a person that advertises or lists produ cts for sale on
84247 the referrer's platform;
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86248 7. 8. a. "Referrer" means the person, other than a person
87249 engaging in the business of printing or publishing a
88250 newspaper, that, pursuan t to an agreement or
89251 arrangement with a marketplace seller or remote
90252 seller, does the following:
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92-ENR. S. B. NO. 1339 Page 3
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94253 (1) agrees to list or advertise for sale at r etail
95254 one or more products of the marketpl ace seller or
96255 remote seller in a physical or electronic medium,
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98256 (2) receives consideration from the marketplace
99257 seller or remote seller from the sale of fered in
100258 the listing or advertisement,
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102259 (3) transfers by telecommunications, Internet link ,
103260 or other means, a purchaser to a marketplace
104261 seller, remote seller , or affiliated person to
105262 complete a sale, and
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107263 (4) does not collect a receipt from the purchaser fo r
108264 the sale.
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110265 b. The term does not include a p erson that:
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112266 (1) provides Internet advertising services, and
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114267 (2) does not provide the marketplace seller 's or
115268 remote seller's shipping terms or advertise
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116295 whether a marketplace seller or remote seller
117296 collects a sales or use tax.
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119297 c. The term includes a perso n that may also be a v endor;
120298 and
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122299 8. 9. "Remote seller" means a person, other than a marketplace
123300 facilitator, a marketplace seller , or a referrer, that does not
124301 maintain a place of business in this state that, th rough a forum,
125302 sells tangible personal prope rty products at retail, the sale or use
126303 of which is subject to the tax imposed by Section 1354 or 1402 of
127304 Title 68 of the Oklahoma S tatutes this title. The term does not
128305 include an employee who in the ordinary s cope of employment renders
129306 services to his employer in exchange fo r wages and salaries.
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131307 SECTION 2. AMENDATORY 68 O.S. 2021, Section 1392, is
132308 amended to read as follows:
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135-ENR. S. B. NO. 1339 Page 4
136309 Section 1392. A. Subject to the provisions of subsections C
137310 and D of this section, on or before July 1, 2018, and on or befor e
138311 June 1 of each calendar year thereafter, beginning June 1, 2019, a
139312 marketplace facilitator or a referrer tha t had aggregate sales of
140313 tangible personal property products within this state or delivered
141314 to locations within this state s ubject to tax under Se ction 1354 or
142315 1402 of this title worth at least Ten Thousand Dollars ($10,000.00)
143316 during the immediately prece ding twelve-calendar-month period shall
144317 file an election with the Tax Commission to collect and remit the
145318 tax imposed under Section 1354 or 1402 o f this title or to comply
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146345 with the notice and reporting requirements. The election shall be
147346 made on a form and in a manner prescribed by the Commission and,
148347 except as provided in subsection E of this section, shall apply to
149348 the next succeeding fiscal year .
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151349 B. A marketplace facilitator or a r eferrer that makes an
152350 election under subsection A of this section to col lect and remit the
153351 tax imposed under Section 1354 or 1402 of this title shall ob tain a
154352 permit under Section 1364 or 1407 of this title. The collection
155353 obligation of a marketplace faci litator or a referrer that elects to
156354 collect and remit tax imposed under Section 1354 or 1402 of this
157355 title also applies to any other taxes admini stered by the Tax
158356 Commission which are levied by l ocal jurisdictions pur suant to
159357 Sections 1370 through 1370.9 of this title and Sect ions 1411 and
160358 2701 of this title on a retail sale of a product.
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162359 C. The requirement by a marketplace facilitator to make an
163360 election under subsection A of this section shall only apply to
164361 sales through the marketplace facilitator 's forum made by or on
165362 behalf of a marketplace seller and shall not apply to sales made by
166363 a marketplace facilitator on its own behalf.
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168364 D. The requirement by a referrer to make an election under
169365 subsection A of this sectio n shall apply to sales:
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171366 1. Directly resulting from a referral of a purchaser to a
172367 marketplace seller;
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174394 2. Directly resulting from a referral of a purchaser to a
175395 remote seller; and
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177396 3. Of the referrer's own products.
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179-ENR. S. B. NO. 1339 Page 5
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181397 A referrer may make an election under s ubsection A of this section
182398 for the sales described in paragraphs 1 and 2 of this subsection
183399 that is different from the election made for the sales described in
184400 paragraph 3 of this subsection.
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186401 E. An election made on or before July 1, 2018, shall be in
187402 effect for the 2018-2019 fiscal year. A marketplace facilitator or
188403 a referrer may change an election to comply w ith the notice and
189404 reporting requirements to an election to col lect and remit the tax
190405 imposed under Section 1354 or 1402 of this title at any time during
191406 a fiscal year by filing a new election with the Commission and
192407 obtaining a permit under Section 1364 o r 1407 of this title. The
193408 new election shall be effective thir ty (30) days after the filing
194409 and shall be effective for the balance of the fiscal year in which
195410 the new election was fil ed and for the next succeeding fiscal year.
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197411 F. A marketplace facilitato r or a referrer who does not submit
198412 an election under subsectio n A of this section or a new election
199413 under subsection E of t his section shall be d eemed to have elected
200414 to comply with the notice and reporting requirements.
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202415 G. 1. A remote seller that had a ggregate sales of tangible
203416 personal property products within this state or delivered to
204417 locations within this state subject to tax under Section 1 354 or
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205444 1402 of this title worth at lea st One Hundred Thousand Dollars
206445 ($100,000.00) during the preceding or cu rrent calendar year shall
207446 collect and remit the tax imposed under Sectio n 1354 or 1402 of this
208447 title. The duty to collect a nd remit tax shall app ly to the first
209448 calendar month succeed ing the month when the threshold provided in
210449 this paragraph is met.
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212450 2. Sales in this state by a remote seller made through a
213451 marketplace forum or a referrer's platform where the tax is
214452 collected and remitted by the ma rketplace facilitator or referrer
215453 shall not be included in determining whether the remote seller has
216454 met the threshold amount provided in this subsection.
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218455 H. In addition to records that may be required to be maintained
219456 under other applicable provisions of this title by a remote seller,
220457 a marketplace facilitator or a referrer, a remote seller, a
221458 marketplace facilitator, or a referrer subject to Sections 1391
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223-ENR. S. B. NO. 1339 Page 6
224459 through 1397 of this title shall also be subject to Section 1365 of
225460 this title relating to the keepi ng of records and Section 248 of
226461 this title relating to the examination of records by the Commission
227462 and agents and employees of the Commission.
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229463 SECTION 3. AMENDATORY 68 O.S. 2021, Sectio n 1393, is
230464 amended to read as follows:
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232465 Section 1393. A. A marketplace facilitat or or a referrer
233466 required to make an election under subsection A of Sect ion 1392 of
234467 this title that does not elect to collect and remit the tax imposed
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235494 by Section 1354 or 1402 of this title shall comply with the
236495 applicable notice requirements of this secti on.
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238496 B. A marketplace facilitator subject to the requirements of
239497 this section shall:
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241498 1. Post a conspicuous notice on its forum that informs
242499 purchasers intending to purchase tangible personal prop erty products
243500 for delivery to a location within this state t hat includes all of
244501 the following:
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246502 a. sales or use tax may be due in con nection with the
247503 purchase and delivery of the tangible personal
248504 property products,
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250505 b. the state requires the purchaser to fi le a return if
251506 use tax is due in connection with the purchas e and
252507 delivery, and
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254508 c. the notice is required by this section; and
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256509 2. Provide a written notice to each purchaser at the time of
257510 each sale that includes all of the following:
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259511 a. a statement that sales or use tax is not being
260512 collected in connection with th e purchase,
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262513 b. a statement that the purchaser may be required to
263514 remit use tax directly to the Tax Commission, and
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266-ENR. S. B. NO. 1339 Page 7
267515 c. instructions for obtaining additio nal information from
268516 the Commission regardin g whether and how to r emit use
269517 tax to the Commission.
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270543
271544 C. The notice required by paragraph 2 of subsection B of this
272545 section must be prominently displayed on all invoices and order
273546 forms and on each sales receipt or similar document, whether in
274547 paper or electronic form, provide d to the purchaser. No statement
275548 that sales or use tax is not imposed on a transaction may be made by
276549 a marketplace facilitator unless the transaction is exempt from
277550 sales and use tax pursu ant to this title or other applicable state
278551 law.
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280552 D. A referrer subject to the requirements of this sect ion shall
281553 post a conspicuous notice on its platform that informs purchas ers
282554 intending to purchase tangible personal property products for
283555 delivery to a location within this state that includes all of the
284556 following:
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286557 1. Sales or use tax may be due in connec tion with the purchase
287558 and delivery;
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289559 2. The person to which the purchas er is being referred may or
290560 may not collect and remit sales or use tax to the Co mmission in
291561 connection with the transaction;
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293562 3. The state require s the purchaser to file a return if us e tax
294563 is due in connection with the purchase and delivery and not
295564 collected by the person;
565+4. The notice is required by this section;
296566
297-4. The notice is required by this section;
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298591
299592 5. Instructions for obtaining additional information from th e
300593 Commission regarding whether and how to remit use tax to t he
301594 Commission; and
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303595 6. If the person to whom the purchaser is being refe rred does
304596 not collect sales or use tax on a subsequent purchase by the
305597 purchaser, the person may be required to provide info rmation to the
306598 purchaser and the Commission about the purcha ser's potential use tax
307599 liability.
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311600 E. The notice required under subsect ion D of this section must
312601 be prominently displayed and may include pop -up boxes or
313602 notification by other means that appears when the referrer tra nsfers
314603 a purchaser to another person t o complete the sale.
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316604 SECTION 4. This act shall become e ffective January 1, 2023.
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319-ENR. S. B. NO. 1339 Page 9
320-Passed the Senate the 20th day of May, 2022.
605+Passed the Senate the 14th day of March, 2022.
321606
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323608
324609 Presiding Officer of the Senate
325610
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327-Passed the House of Representatives the 20th day of May, 2022.
612+Passed the House of Representatives the ____ day of __________,
613+2022.
328614
329615
330616
331617 Presiding Officer of the House
332618 of Representatives
333619
334-OFFICE OF THE GOVERNOR
335-Received by the Office of the Governor this _______ _____________
336-day of _________________ __, 20_______, at _______ o'clock _______ M.
337-By: _______________________________ __
338-Approved by the Gove rnor of the State of Oklahoma this _____ ____
339-day of _________________ __, 20_______, at _______ o'clock _______ M.
340620
341- _________________________________
342- Governor of the State of Oklahoma
343-
344-
345-OFFICE OF THE SECRETARY OF STATE
346-Received by the Office of the Secretary of State this __________
347-day of __________________, 20 _______, at _______ o'clock _______ M.
348-By: _______________________________ __