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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 599 By: Rader
AS INTRODUCED
An Act relating to tax procedure; amending 68 O.S.
2011, Section 255, which relates to contracts with
debt collection agencies ; modifying time frame for
remittance; clarifying statutory language; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 255, is
amended to read as f ollows:
Section 255. A. In order to facilitate and expedite the
collection of taxes more than ninety (90) days overdue from any
taxpayer, the Oklahoma Tax Commission may enter into a contract with
a debt collection agency doing business in the State of O klahoma or
in any other state for the collection of such delinquent taxes in
addition to all other taxes accrued or accruing , including penalties
and interest thereon, from the taxpayer. The contra ct shall only
authorize the debt collection agency to coll ect tax liabilities
which are already established and the Tax Commission shall not refer
accounts to the debt collection agency unless the Tax Commission has
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notified the taxpayer, by first class ma il, of the liability and has
made additional efforts to co llect the debt. Provided, if a sales
tax permit holder fails to file two or more sales tax returns, as
required under Section 1365 of this title, or a taxpayer require d to
remit withholding taxes f ails to file two or more withholding tax
returns, as required under Section 2385.3 of this title, the Tax
Commission may refer the accounts to the debt collection agency
prior to the establishment of the tax liability, but onl y after the
Commission has notified the taxpayer as required under this
subsection.
B. If an account has been referred to a debt collection agency,
the Tax Commission shall review all payments posted by the
collection agency prior to commencing any furthe r collection
activity against the taxpayer. Further, the collection agency shall
review all payments posted by the Tax Commission prior to commencing
any collection activity. The Tax Commission or the collection
agency shall, within ten (10) business day s, provide the taxpayer
with a written confirmation of all payments received and any bal ance
due. In addition, the contract shall not authorize the debt
collection agency to conduct audits or examine the books and records
of a taxpayer in any manner. The Tax Commission may also enter into
a contract with a person doing business in the State of Oklahoma
this state or in any other state for the purpose of identifying and
locating the assets of such delinquent taxpayer. Such The contracts
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authorized by this section shall be subject to the prov isions of The
Oklahoma Central Purchasing Act.
C. In addition to the authority provided in subsection A of
this section, the Tax Commission may enter into a contract for the
purpose of identifying nonresident businesse s and individuals who
are required by law to file and pay Oklahoma state taxes and who a re
presently unknown to the Tax Commission.
D. Prior to entering into such a contract with a debt
collection agency, the Tax Commission shall require that the debt
collection agency file a bond in the amo unt of One Hundred Thousand
Dollars ($100,000.00). The bond shall be a bond from a surety
company chartered or authorized to do business in this state, cash
bond, certificates of deposits, certificates of savings or U. S.
Treasury bonds, as the Tax Commiss ion may deem necessary to
guarantee compliance with the terms of the contract.
E. Each contract entered into by the Tax Commission with a debt
collection agency, pursuant to the provisions of this section, shall
specify that fees for services rendered, re imbursements or other
remuneration shall be based o n the total amount of delinquent taxes ,
including accrued penalties and interest, which is actually
collected. No costs shall be reimbursed unless authorized in the
contract. Each contract entered into b etween the Tax Commission and
a debt collection age ncy shall provide for the payment of fees for
such services, reimbursements or other remuneration not in excess of
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thirty-five percent (35%) of the total amount of deli nquent taxes,
penalty and interest ac tually collected. The debt collection agency
contract fee shall be added to the amount of the delinquent taxes,
accrued penalties and interest collected from the taxpayer. The
total amount of the delinquent tax, accru ed penalties and interest ,
and the debt collection agency contract fee shall be owed and
collected from the taxpayer.
F. Each contract entered into by the Tax Commission with a
person for the purpose of identifying and locating assets of
delinquent taxpayers shall specify the amount of money to be paid
for the performance of such services. No costs shall be reimbursed
unless authorized in the contract.
G. All such funds collected by a debt collection agency ,
including the fees for collection services as provided for in such
contract, shall be remitted to the Tax Commission within five (5)
days fifteen (15) days from the date of collection from a taxpayer.
The Tax Commission shall pay from such remitted fees the amount of
fees to which such the debt collecting agency is entitled for
services performed pursuant to the pro visions of such the contract.
All assets of such the delinquent taxpayers which are identified and
located shall be reported to the Tax Commission within five (5) days
from the date of ide ntification and location. Forms to b e used for
such the remittances and report s shall be prescribed by the Tax
Commission.
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H. A debt collection agency entering into a contract with the
Tax Commission or a person entering into a contract with the Tax
Commission for asset location purposes pu rsuant to this section
shall agree that it is receiving income from sources within this
state or doing business in this state for purposes of the Oklahoma
tax laws. Debt collection agency employees and/or and their agents
shall not disclose confidential t ax information except as authorized
by Section 205 of this title, subject to the penalties contained
therein.
SECTION 2. This act shall become effective November 1, 2021.
58-1-1138 QD 1/20/2021 9:58:08 PM