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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 329 By: Hall
AS INTRODUCED
An Act relating to the Oklahoma Tax Commission;
amending 68 O.S. 2011, Section 205, as l ast amended
by Section 37, Chapter 210, O.S.L. 2016 (68 O.S.
Supp. 2020, Section 205), which relates to exceptions
for confidential and privileged records and files;
excepting certain information provid ed to the
Incentive Evaluation Commission and the Oklahoma
Department of Commerce for certain pu rpose; requiring
certain information to be considered confidential ;
providing exception to the requirements of the
Oklahoma Open Records Act; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 205, as last
amended by Section 37, Chapter 210, O.S.L. 2016 (68 O.S. Supp. 2020,
Section 205), is amended to read as fol lows:
Section 205. A. The records and files of the Oklahoma Tax
Commission concerning t he administration of the Uniform Tax
Procedure Code or of any state tax law shall be consider ed
confidential and privileged, except as otherwise provided for by
law, and neither the Tax Commission nor any employee engaged in the
administration of the Tax C ommission or charged with the custody of
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any such records or files nor any person who may hav e secured
information from the Tax Commission shall disclose any informati on
obtained from the records or files or from any examination or
inspection of the premis es or property of any person.
B. Except as provided in paragraph 26 of subsection C of this
section, neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or char ged with the custody of
any such records or files s hall be required by any court of this
state to produce any of the records or files for the in spection of
any person or for use in any action or proceeding, except when the
records or files or the facts sho wn thereby are directly involved in
an action or proceeding pursuant to the provisions of the Uniform
Tax Procedure Code or of the state tax law , or when the
determination of the action or proceeding will affect the va lidity
or the amount of the claim of t he state pursuant to any state tax
law, or when the information contained in the records or files
constitutes evidence of violation of the provi sions of the Uniform
Tax Procedure Code or of any state tax law.
C. The provisions of this section shall not pr event the Tax
Commission from disclosing the follow ing information and no
liability whatsoever, civil or criminal, shall attach to any member
of the Tax Commission or any employee thereof for any error or
omission in the disclosure of such information:
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1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxpayer pursuant to the provisions of the
Uniform Tax Procedure Code or of any st ate tax law;
2. The exchange of infor mation that is not protected by the
federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
pursuant to reciprocal agreements entered into by the Tax Commission
and other state agencies or agencies of the fe deral government;
3. The publication of statistics so classified as to prevent
the identification of a particular report and the items thereof;
4. The examination of records and fi les by the State Auditor
and Inspector or the duly authorized agents of th e State Auditor and
Inspector;
5. The disclosing of information or evidence to the Oklah oma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics and D angerous Drugs Control, any district
attorney, or agent of any federal law enforcement agency when the
information or evidence is to be used by such officials to
investigate or prosecute violations of the criminal provisions of
the Uniform Tax Procedure Co de or of any state tax law or of any
federal crime committed against this state. Any information
disclosed to the Oklahoma State Bureau of Investigation, Attorney
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, any district attorn ey, or agent of any federal law
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enforcement agency shall be kept confident ial by such person and not
be disclosed except when presented to a court in a prosecution for
violation of the tax laws of this state or except as specifically
authorized by law, and a violation by the Oklahoma State Bureau of
Investigation, Attorney Gener al, Oklahoma State Bureau of Narcotics
and Dangerous Drugs Control, district attorney , or agent of any
federal law enforcement agency by otherwise releasing the
information shall be a felony;
6. The use by any division of the Tax Commission of any
information or evidence in the possession of or contained in any
report or return filed with any other division of the Tax
Commission;
7. The furnishing, at the discretion of the Tax Commi ssion, of
any information disclosed by its records or files to any officia l
person or body of this state, any ot her state, the United States , or
foreign country who is concerned with the administration or
assessment of any similar tax in this state, any ot her state or the
United States. The provisions of this paragraph shall in clude the
furnishing of information by the Tax Commission to a county assessor
to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklahoma Constitution
or Section 2890 of this title. The Tax Comm ission shall promulgate
rules to give guidance to the county assessors regarding the type of
information which may be used by the county assessors in determining
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the amount of gross household income pursuant to Section 8C of
Article X of the Oklahoma Const itution or Section 2890 of this
title. The provisions of this paragraph shall also inclu de the
furnishing of information to the State Treasurer for the purpose of
administration of the Uniform Unclaimed Property Act;
8. The furnishing of information to o ther state agencies for
the limited purpose of aiding in the collection of debts owed by
individuals to such requesting agencies;
9. The furnishing of information requested by any m ember of the
general public and stated in the sworn lists or schedules of taxable
property of public service cor porations organized, existing, or
doing business in this state which are submitted to and certified by
the State Board of Equalization pursuant to the provisions of
Section 2858 of this title and Section 21 of Article X of the
Oklahoma Constitution, provid ed such information would be a public
record if filed pursuant to Sections 2838 and 2839 of this title on
behalf of a corporation other than a p ublic service corporation;
10. The furnishing of information requested by any member of
the general public and stated in the findings of the Tax Commission
as to the adjustment and equalization of the valuation of real and
personal property of the countie s of the state, which are submitted
to and certified by the State Board of Equalization pursuant to the
provisions of Section 2865 of this title and Section 21 of Article X
of the Oklahoma Constitution;
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11. The furnishing of information to an Oklahoma who lesaler of
low-point beer, licensed under the provisions of Section 163.1 et
seq. of Title 37 of the Oklahoma St atutes, or an association or
organization whose mem bership is comprised of such wholesalers, of
the licensed retailers authorized by law to purc hase low-point beer
in this state or the furnishing of information to a li censed
Oklahoma wholesaler of low -point beer of shipments by licensed
manufacturers into this state;
12. The furnishing of information as to the issuance or
revocation of any tax pe rmit, license or exemption by the Tax
Commission as provided for by law. Such information shall be
limited to the name of the person issued the permit, license or
exemption, the name of the business entity authorized to engage in
business pursuant to the permit, license or exemption, the address
of the business entity, and the grounds for revocation;
13. The posting of notice of revocation of any tax permit or
license upon the premises of the place of business of any business
entity which has had any tax permit or license revoked by the Tax
Commission as provided for by law. S uch notice shall be limited to
the name of the person issued the permit or license, the n ame of the
business entity authorized to engage in business pursuant to the
permit or license, the address of the business entity, and the
grounds for revocation;
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14. The furnishing of information upon wr itten request by any
member of the general public a s to the outstanding and unpaid amount
due and owing by any taxpayer of this state for any de linquent tax,
together with penalty and interest, for which a tax warrant or a
certificate of indebtedness has b een filed pursuant to law;
15. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written request by any mem ber of the
general public as to any agreement entered into by the Tax
Commission concerning a compromise of tax liability for an amount
less than the amount of tax liability stated on such warrant;
16. The disclosure of information necessary to complete t he
performance of any contract authorized by this title to any person
with whom the Tax Commission has contracte d;
17. The disclosure of information to any person for a purpose
as authorized by the taxpayer pursuant to a waiver of
confidentiality. The wa iver shall be in writing and shall be made
upon such form as the Tax Commi ssion may prescribe;
18. The disclosure of information required in order to comply
with the provisions of Section 2369 of this title;
19. The disclosure to an employer, as defined in Sections
2385.1 and 2385.3 of this title, of information required in or der to
collect the tax imposed by Sect ion 2385.2 of this title;
20. The disclosure to a plaintiff of a corporation ’s last-known
address shown on the records of the Franchise Tax Div ision of the
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Tax Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
21. The disclosure o f information directly involved in the
resolution of the protest by a taxpayer to an assessme nt of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosur e of the pendency of an
administrative proceeding i nvolving such protest or claim, to a
person called by the Tax Commission as an expert witness or as a
witness whose area of knowledge or expertise specifically address es
the issue addressed in the protest or claim for refund. Such
disclosure to a witness shall be limited to information pertaining
to the specific knowledge of that witness as to th e transaction or
relationship between taxpayer and witness;
22. The disclosure of information necessary to impl ement an
agreement authorized by Section 2702 of th is title when such
information is directly involved in the resolution of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the governing body or to the municipal
attorney, if so designated by the governi ng body;
23. The furnishing of information regarding incentive payments
made pursuant to the provisions of Sections 3601 through 3609 of
this title or incentive payme nts made pursuant to the provisions of
Sections 3501 through 3508 of this title;
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24. The furnishing to a prospective purchaser of any business,
or his or her authorized representati ve, of information relating to
any liabilities, delinquencies, assessments or warrants of the
prospective seller of the business which have not been filed of
record, established, or become final and which relate solely to the
seller’s business. Any disclo sure under this paragraph shall only
be allowed upon the presentment by th e prospective buyer, or the
buyer’s authorized representative, of the purchase contract a nd a
written authorization between the parties;
25. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax pe rmit,
license, exemption, deduction, c redit or other tax preference by the
Tax Commission as provided for by law. Such information shall be
limited to the type of permit, license, e xemption, deduction, credit
or other tax preference issued or granted, the date and duration of
such permit, license, exemption, deduction, credit or other tax
preference and the amount of such revenue. The provisions of this
paragraph shall not authorize the disclosure of the name of the
person issued such permit, license, exe mption, deduction, credit or
other tax preference, or the name of the business entity aut horized
to engage in business pursuant to the permit, license, exemption,
deduction, credit or other tax preference;
26. The examination of records and files of a per son or entity
by the Oklahoma State Bu reau of Narcotics and Dangerous Drugs
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Control pursuant to a court order by a magistrate in whose
territorial jurisdiction the person or entity r esides, or where the
Tax Commission records and files are physically locat ed. Such an
order may only be issued upon a sworn application by an agent of the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control,
certifying that the person or entity whose records and files are to
be examined is the target of an ongoing in vestigation of a felony
violation of the Uniform Controlled Dangerous Substances Act and
that information resulting from such an examination would likely be
relevant to that investig ation. Any records or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control in the investigation
and prosecution of a felony violation of the Uniform Controlled
Dangerous Substances Act. Any such order issued pursuant to this
paragraph, along with the underlying application, shall be s ealed
and not disclosed to the person or entity who se records were
examined, for a period of ninety (90) days. The issuing magistrate
may grant extensions of such period upon a showing of good cause in
furtherance of the investigation. Upon the expiratio n of ninety
(90) days and any extensions granted by the magistrate, a copy of
the application and order shall be served upon the person or entit y
whose records were examined, along with a copy of the records or
information actually provided by the Tax Comm ission;
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27. The disclosure of information, as pres cribed by this
paragraph, which is related to the proposed or actual usage of tax
credits pursuant to Section 2357.7 of this title, the Small Business
Capital Formation Incentive Act or the Rural Venture C apital
Formation Incentive Act. Unless the context clearly requires
otherwise, the terms used in this paragraph shall have the same
meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this
title. The disclosu re of information authorized by this p aragraph
shall include:
a. the legal name of any qu alified venture capital
company, qualified small business capital company , or
qualified rural small business capital company,
b. the identity or legal name of any pers on or entity
that is a shareholder or partner of a qualified
venture capital company, qua lified small business
capital company, or qualified rural small business
capital company,
c. the identity or legal name of any Oklahoma business
venture, Oklahoma smal l business venture, or Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or
d. the amount of funds invested in a qualified ven ture
capital company, the amount of qualified investments
in a qualified small business capital company or
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qualified rural small business capital company and the
amount of investments made by a qualified venture
capital company, qualified small business ca pital
company, or qualified rural small business capital
company;
28. The disclosure of specific information as required by
Section 46 of Title 62 of the Oklahoma Statutes;
29. The disclosure of specific information as required by
Section 205.5 of this t itle;
30. The disclosure of specific information as required by
Section 205.6 of this title;
31. The disclosure of information to the State Treasurer
necessary to implement Section 2368.27 of this title; or
32. The disclosure of specific information to the Oklahoma
Health Care Authority for purposes of determining eligibility for
current or potential recipients o f assistance from the Oklahoma
Medicaid Program;
33. The disclosure of aggregate data and other specific
information not to include personally identifiable information to
the Incentive Evaluation Commission or its con tractor under the
provisions of Section 7001 et seq. of Title 62 of the Oklahoma
Statutes for the purpose of evaluating economic incentives .
Information provided to the Incentive Evaluation Commission and its
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contractor shall be considered confidential and shall not be subject
to the Oklahoma Open Records Act; or
34. The disclosure of aggreg ate data and other specific
information to the Oklahoma Department of Commerce for the purpose
of evaluating economic trends, the efficacy of agency in itiatives
and administering economic incentives. Information provided to the
Department of Commerce p ursuant to this paragraph shall be
considered confidential and shall not be subject to the Oklahoma
Open Records Act.
D. The Tax Commission shall cause to be prepared and made
available for public inspection in the office of the Tax Commission
in such manner as it may determine an annual list containing the
name and post office address of each person, whether individual,
corporate, or otherwise, making and filing an income tax retu rn with
the Tax Commission.
It is specifically provided that no liability whats oever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and public ation of the list.
E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state tax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferrals or
other preferential tax treatments. The report shall be prepared not
later than October 1 of each even -numbered year and shall be
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submitted to the Governor, the President Pro Tempore of the Senate
and the Speaker of the House of Representatives. The Tax Commission
may prepare and submit supplem ents to the report at other times of
the year if additional or updated informat ion relevant to the report
becomes available. The report shall include, for the previous
fiscal year, the Tax Commission ’s best estimate of the amount of
state revenue that wou ld have been collected but f or the existence
of each such exclusion, deduction, credit, exemption, deferral or
other preferential tax treatment allowed by law. The Tax Commission
may request the assistance of other state agencies as may be needed
to prepare the report. The Tax Comm ission is authorized to require
any recipient of a tax incentive or tax expenditure to report to the
Tax Commission such information as requested so that the Tax
Commission may fulfill its obligations as required by this
subsection. The Tax Commission may require this information to be
submitted in an electronic format. The Tax Commission may disallow
any claim of a person for a tax incentive due to its failure to file
a report as required under the authority of this subsection .
F. It is further provided that the provisions of this section
shall be strictly interpreted and shall not be construed as
permitting the disclosure of any other information contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.
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G. Unless otherwise provided for in this section, any v iolation
of the provisions of this section shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not exceeding One
Thousand Dollars ($1,000.00) or b y imprisonment in the county jail
for a term not exceeding one (1) year, or by both such fine and
imprisonment, and the offender shall be removed or dismissed from
office.
H. Offenses described in Section 2376 of this title shall be
reported to the approp riate district attorney of t his state by the
Tax Commission as soon as the offe nses are discovered by the Tax
Commission or its agents or employees. The Tax Commission shall
make available to the appropriate district attorney or to the
authorized agent of the district attorney its r ecords and files
pertinent to prosecutions, and suc h records and files shall be fully
admissible as evidence for the purpose of such prosecutions.
SECTION 2. This act shall become effective November 1, 2021.
58-1-1082 QD 1/9/2021 2:28:04 PM