Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB599 Compare Versions

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3		-	ENGR. S. B. NO. 599 Page 1 1
	3	+	SENATE FLOOR VERSION - SB599 SFLR Page 1
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28		-	~~ENGROSSED~~ SENATE
29		-	~~BILL NO.~~ ~~599 By: Rader of the Senate~~
	29	+	SENATE FLOOR VERSION
	30	+	February 2, 2021
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33		-	Pfeiffer of the House
	33	+	SENATE BILL NO. 599 By: Rader
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40	41		An Act relating to tax procedure; amending 68 O.S.
41	42		2011, Section 255, which relates to contracts with
42	43		debt collection agencies ; modifying time frame for
43	44		remittance; clarifying statutory language; and
44	45		providing an effective date .
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50	51		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
51	52		SECTION 1. AMENDATORY 68 O.S. 2011, Section 255, is
52	53		amended to read as follows:
53	54		Section 255. A. In order to facilitate and expedite the
54	55		collection of taxes more than ninety (90) days overdue from any
55	56		taxpayer, the Oklahoma Tax Commission may enter into a contract with
56		-	a debt collection agency doing business in the State of Oklahoma
	57	+	a debt collection agency doing business in the State of Oklahoma in
57	58		this state or in any other state for the collection of such
58	59		delinquent taxes in addition to all other taxes accrued or accruing ,
59	60		including penalties and interest thereon, from the taxpayer. The
60	61		contract shall only authorize the debt collection agency to collect
61	62		tax liabilities which are already established and the Tax Commission
62	63		shall not refer accounts to the debt collection agency unless the
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	65	+	SENATE FLOOR VERSION - SB599 SFLR Page 2
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89	91		Tax Commission has notified t he taxpayer, by first class ma il, of
90	92		the liability and has made additional efforts to collect the debt.
91	93		Provided, if a sales tax permit holder fails to file two or more
92	94		sales tax returns, as required under Section 1365 of this title, or
93	95		a taxpayer required to remit withholding taxes f ails to file two or
94	96		more withholding tax returns, as required under Section 2385.3 of
95	97		this title, the Tax Commission may refer the accounts to the debt
96	98		collection agency prior to the establishment of the tax liability,
97	99		but only after the Commission has not ified the taxpayer as required
98	100		under this subsection.
99	101		B. If an account has been referred to a debt collection agency,
100	102		the Tax Commission shall review all payments posted by the
101	103		collection agency prior to commencing any furthe r collection
102	104		activity against the taxpayer. Further, the collection agency shall
103	105		review all payments post ed by the Tax Commission prior to commencing
104	106		any collection activity. The Tax Commission or the collection
105	107		agency shall, within ten (10) business day s, provide the taxpayer
106	108		with a written confirmation of all payments received and any balance
107	109		due. In addition, the contract shall not authorize the debt
108	110		collection agency to conduct audits or examine the books and records
109	111		of a taxpayer in any manner. The Tax Commission may also enter into
110	112		a contract with a person doing business in the State of Oklahoma
111	113		this state or in any other state for the purpose of identifying and
112	114		locating the assets of such delinquent taxpayer. Such The contracts
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139	142		authorized by this section shall be subject to the prov isions of The
140	143		Oklahoma Central Purchasing Act.
141	144		C. In addition to the authority provided in subsection A of
142	145		this section, the Tax Commission may enter into a contract for the
143	146		purpose of identifying nonresident businesse s and individuals who
144	147		are required by law to file and pay Oklahoma state taxes and who are
145	148		presently unknown to the Tax Commission.
146	149		D. Prior to entering into such a contract with a debt
147	150		collection agency, the Tax Commission shall require that the debt
148	151		collection agency file a bond in the amo unt of One Hundred Thousand
149	152		Dollars ($100,000.00). The bond shall be a bond from a surety
150	153		company chartered or authorized to do business in this state, cash
151	154		bond, certificates of deposits, certificates of savings or U. S.
152	155		Treasury bonds, as the Tax Commiss ion may deem necessary to
153	156		guarantee compliance with the terms of the contract.
154	157		E. Each contract entered into by the Tax Commission with a debt
155	158		collection agency, pursuant to the provisions of this section, shall
156	159		specify that fees for services rendered, re imbursements or other
157	160		remuneration shall be based on the total amount of delinquent taxes,
158	161		including accrued penalties and interest, which is actually
159	162		collected. No costs shall be reimbursed unless authorized in the
160	163		contract. Each contract entered into b etween the Tax Commission and
161	164		a debt collection agency shall provide for the payment of fees for
162	165		such services, reimbursements or other remuneration not in excess of
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189	193		thirty-five percent (35%) of the total amount of deli nquent taxes,
190	194		penalty and interest ac tually collected. The debt collection agency
191	195		contract fee shall be a dded to the amount of the delinquent taxes,
192	196		accrued penalties and interest collected from the taxpayer. The
193	197		total amount of the delinquent tax, accru ed penalties and interest ,
194	198		and the debt collection agency contract fee shall be owed and
195	199		collected from the taxpayer.
196	200		F. Each contract entered into by the Tax Commission with a
197	201		person for the purpose of identifying and locating assets of
198	202		delinquent taxpayers shall specify the amount of money to be paid
199	203		for the performance of such services. No costs shall be reimbursed
200	204		unless authorized in the contract.
201	205		G. All such funds collected by a debt collection agency ,
202	206		including the fees for collection services as provided for in such
203	207		contract, shall be remitted to the Tax Commission within five (5)
204	208		days fifteen (15) days from the date of collection from a taxpayer.
205	209		The Tax Commission shall pay from such remitted fees the amount of
206	210		fees to which such the debt collecting agency is entitled for
207	211		services performed pursuant to the pro visions of such the contract.
208	212		All assets of such the delinquent taxpayers which are identified and
209	213		located shall be reported to the Tax Commission within five (5) days
210	214		from the date of ide ntification and location. Forms to b e used for
211	215		such the remittances and report s shall be prescribed by th e Tax
212	216		Commission.
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239	244		H. A debt collection agency entering into a contract with the
240	245		Tax Commission or a person entering into a contract with the Tax
241	246		Commission for asset location purposes pu rsuant to this section
242	247		shall agree that it is receiving income from s ources within this
243	248		state or doing business in this state for purposes of the Oklahoma
244	249		tax laws. Debt collection agency employees and/or and their agents
245	250		shall not disclose confidential t ax information except as authorized
246	251		by Section 205 of this title, sub ject to the penalties contained
247	252		therein.
248	253		SECTION 2. This act shall become effective November 1, 2021.
249		-	Passed the Senate the 3rd day of March, 2021.
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253		-	Presiding Officer of the Senate
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256		-	Passed the House of Representatives the ____ day of __________,
257		-	2021.
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261		-	Presiding Officer of the House
262		-	of Representatives
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	254	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	255	+	February 2, 2021 - DO PASS