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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
ENGROSSED SENATE
BILL NO. 1481 By: Montgomery, Treat, Quinn,
and Allen of the Senate
and
Kendrix of the House
[ Franchise Tax Code - levy of tax after certain year
- annual statement requirement - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1203, is
amended to read as fo llows:
Section 1203. There For tax year 2022 and previous tax years,
there is hereby levied and assessed a franchise or excise tax upon
every corporation, association, joint -stock company and business
trust organized under the laws of this state, equal to One Dollar
and twenty-five cents ($1.25) for each One Thousand Dollars
($1,000.00) or fraction thereof of the amount of capital used,
invested or employed in the exercise of any power, privilege or
right inuring to such organization, within this state; it being the
purpose of this section to require the payment to the State of
Oklahoma this state this tax for the right gra nted by the laws of
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this state to exist as such organization and enjoy, under the
protection of the laws of this state, the powers, righ ts, privileges
and immunities derived from the state by reason of the form of such
existence.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1204, is
amended to read as follows:
Section 1204. There For tax year 2022 and previous tax years,
there is hereby levied and assessed upon every corporation,
association, joint-stock company and business trust, organized and
existing by virtue of the laws of some other state, territory or
country, now or hereafter doing business in this state, as
hereinbefore defined, a franchise or excise tax equal to One Dollar
and twenty-five cents ($1.25) for each One Thousa nd Dollars
($1,000.00) or fraction thereof of the amount of capital used,
invested or employed within this state; it being the purpose o f this
section to require the payment of a tax by all organizations not
organized under the laws of this state, measured by the amount of
capital, or its equivalent, used, invested or employed in this state
for which such organization receives the benefit and protection of
the government and laws of the state.
SECTION 3. AMENDATORY 68 O.S. 2021, Se ction 1210, is
amended to read as follows:
Section 1210. A. In addition to any other statement required
by law, for tax year 2022 and previous tax years, each and every
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corporation, association or organization, as enumerated in Se ctions
1201, 1203, and 1204 of this title, subject to the provisions of
Section 1201 et seq. of this title, either during the period of July
1 to August 31, inclusive, of each year, or not later than June 1
for taxpayers that remitted the maximum amount of tax pursuant to
Section 1205 of this title for the preceding tax year, or, except
for taxpayers that remitted the maximum amount of tax pursuant to
Section 1205 of this title for the preceding tax year, on or before
the date by which an income tax return is required to be filed
pursuant to the provisions of subsection G of Section 2368 o f this
title or pursuant to the provisions of Section 216 of this title,
based upon the election by the taxpayer regarding the due date for
payment of tax, shall file with the Oklahoma Tax Commiss ion a
statement under oath of its president, secretary or ma naging
officer, or managing agent in this state. The statement shall be in
such form as the Tax Com mission shall prescribe, including balance
sheets as at the close of its last preceding taxable year for which
an income tax return was required to be filed , showing the
following:
1. The amount of its authorized capital stock, int erests,
certificates, or other evidence of interest or ownership;
2. The amount thereof then pa id up;
3. The number of units into which the same is divided;
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4. The par value of each unit and the number of such units
issued and outstanding;
5. The location of the office or off ices;
6. The value of all property owned or used in its business and
wherever located;
7. The value of all property owned or used in its business
within this state as it existed on the last day of the tax year;
8. The total amount of all business wherev er transacted during
the tax year;
9. The total amount of business tran sacted within the State of
Oklahoma this state during such year; and
10. The names of its offi cers and the residence and post office
address of each as the sam e appear of record on the last day of the
tax year, based upon the election by the taxpayer rega rding the due
date for payment of tax.
B. If any corporation, association or organization maki ng a
return under the provisions of Section 1201 et seq. of this title
has no authorized capital, or if any of its shares of stock or other
evidences of interest or ownership have no pa r value, then such
corporation, association or organization shall so st ate in its
return, and shall, in addition thereto, state the book value of its
shares of stock or other evidences of interest or ownership. It
shall also, in making its return, make th e showing required of all
other corporations, associations and organiza tions, and each foreign
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corporation shall state the name of its r egistered agent residing at
the capital of the state. The return shall be in such form as the
Tax Commission shall pres cribe.
C. A corporation or organization subject to the tax levied by
Section 1203 or Section 1204 of this title for which the computati on
of capital employed in the state equals or exceeds Sixteen Million
Dollars ($16,000,000.00), shall file a maximum fra nchise tax return
on such form as may be prescribed by the Oklahoma Tax Commission.
D. The Tax Commission shall prescribe a form for us e by
corporations or orga nizations subject to the maximum tax imposed by
Section 1205 of this ti tle in order for such co rporations or
organizations to determine if the value of capital employ ed in this
state requires filing a maximum franchise tax return. The Tax
Commission shall also prescribe a form for use by corporations or
organizations exempt from the tax imposed by Sections 1203 and 1204
of this title pursuant to Section 1205 of this t itle. Such form
shall include the names of the officers of the c orporation or
organization and the residence and post office address of each as
the same appears of record on the last d ay of the tax year and a
statement attesting that no tax is due for the taxable period. If a
corporation or organization is required to file the maximum
franchise tax return or is exempt from the tax imposed by Sections
1203 and 1204 of this title pursuan t to Section 1205 of this title,
such return shall not be subject to th e requirements of subsection A
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of this section and the return sha ll only contain such info rmation
as may be prescribed by the Commission. The return shall be in such
form as the Tax Commission shall prescribe.
SECTION 4. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUD GET, dated
04/14/2022 - DO PASS, As Amended and Coauthored.