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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 601 By: Rader of the Senate
and
Pfeiffer of the House
COMMITTEE SUBSTITUTE
An Act relating to income tax; amending 68 O.S. 2 011,
Section 217, as last amended by Section 1, Chapter
28, O.S.L. 2016 and 2368, as last amended by Section
7, Chapter 201, O.S.L. 2019 (68 O.S. Supp.2020,
Sections 217 and 2368), which relate to interest
accrual and due dates of certain reports or retur ns;
modifying provision related to accrual of interest;
modifying provisions related to due date of tax
returns; providing for emergency declaration by the
Governor or by the Internal Revenue Service; amending
68 O.S. 2011, Section 2385.13, which relates t o
withholding; modifying period of underpayment for
corporations; providing an effective date; and
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 217, as last
amended by Section 1, Chapter 28, O.S.L. 2016 (68 O.S. Supp. 2020,
Section 217), is amended to read as follows:
Section 217. A. If any amount of tax imposed or levied by any
state tax law, or any part of such amount, is not paid before such
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tax becomes delinquent, there shall be collected on the total
delinquent tax interest at the rate of one and one -quarter percent
(1 1/4%) per month from the date of the delinquency until paid.
B. Interest upon any amount of state tax determined as a
deficiency, under the provisions of Section 221 of this title, shall
be assessed at the same time as the deficiency and shall be paid
upon notice and demand of the Oklahoma Tax Commission at the rate of
one and one-quarter percent (1 1/4%) per month from the date
prescribed in the state tax law levying such tax for the payment
thereof to the date the deficiency is assessed.
C. If any tax due under state sales, use, tourism, mixed
beverage gross receipts, or motor fuel tax laws, or any part
thereof, is not paid withi n fifteen (15) days after such tax becomes
delinquent a penalty of ten percent (10%) on the total amount of tax
due and delinquent shall be added thereto, collected and paid.
However, the Tax Commission shall not collect the penalty assessed
if the taxpayer remits the tax and interest within sixty (60) days
of the mailing of a proposed assessment or voluntarily pays the tax
upon the filing of an amended return.
D. If any tax due under any state tax law other than those
specified in subsection C of this se ction, or any part thereof, is
not paid within thirty (30) days after such tax becomes delinquent a
penalty of ten percent (10%) on the total amount of tax due and
delinquent shall be added thereto, collected and paid. However, the
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Tax Commission shall no t collect the penalty assessed if the
taxpayer remits the tax and interest within sixty (60) days of the
mailing of a proposed assessment or voluntarily pays the tax upon
the filing of an amended return.
E. If any part of any deficiency, arbitrary or jeop ardy
assessment made by the Tax Commission is based upon or occasioned by
the taxpayer's negligence or by the failure or refusal of any
taxpayer to file with the Tax Commission any report or return, as
required by this title, or by any state tax law, withi n ten (10)
days after a written demand for such report or return has been
served upon any taxpayer by the Tax Commission by letter, the Tax
Commission may assess and collect, as a penalty, twenty -five percent
(25%) of the amount of the assessment. For pur poses of this
subsection, "negligence" shall mean the consistent understatement of
income, consistent understatement of receipts or a system of
recordkeeping by the taxpayer that consistently results in an
inaccurate reporting of tax liability.
F. If any part of any deficiency is due to fraud with intent to
evade tax, then fifty percent (50%) of the total amount of the
deficiency, in addition to such deficiency, including interest as
herein provided, shall be added, collected and paid.
G. All penalties or interest imposed by this title, or any
state tax law, shall be recoverable by the Tax Commission as a part
of the tax with respect to which they are imposed, the penalties
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bearing interest as provided in this section for the tax, and all
penalties and interest shall be apportioned as provided for the
apportionment of the tax on which such penalties or interest are
collected.
H. 1. Whenever an income tax refund is not paid to the
taxpayer within ninety (90) days after the return is filed or due,
whichever is later, with all documents as required by the Tax
Commission, entitling the taxpayer to a refund, then the Tax
Commission shall pay interest on the refund, at the same rate
specified for interest on delinquent tax payments. The payment of
interest on refunds provided for by this section shall apply to tax
year 1987 and subsequent tax years. The Tax Commission shall not be
required to pay interest on an income tax refund which is applied,
in whole or in part, to a prior year tax liability pursuant to
Section 2385.17 of this title or upon an income tax refund applied,
in whole or in part, to satisfy a debt owed to the Internal Revenue
Service of the United States or to a state agency, including the
Oklahoma Tax Commission, as provided by Section 205.2 of this title.
2. For tax returns filed after January 1, 2004, and before
January 2, 2010, whenever an income tax refund is not paid to the
taxpayer within the following number of days after the income tax
return is filed with all documents as required by th e Tax Commission
or after the income tax return is due, whichever is later, entitling
the taxpayer to a refund, then the Tax Commission shall pay interest
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on the refund at the same rate specified for interest on delinquent
tax payments:
a. for returns filed electronically, thirty (30) days,
and
b. for all other returns, one hundred fifty (150) days.
3. For tax returns filed after January 1, 2010, whenever an
income tax refund is not paid to the taxpayer within the following
number of days after the income tax return is filed or due,
whichever is later, with all documents as required by the Tax
Commission entitling the taxpayer to a refund, then the Tax
Commission shall pay interest on the refund at the same rate
specified for interest on delinquent tax paym ents:
a. for returns filed electronically, forty -five (45)
days, and
b. for all other returns, ninety (90) days.
SECTION 2. AMENDATORY 68 O.S. 2011, Section 2368, as
last amended by Section 7, Chapter 201, O.S.L. 2019 (68 O.S. Sup p.
2020, Section 2368), is amended to read as follows:
Section 2368. A. For tax years ending before January 1, 2017,
the following individuals shall each make a return stating
specifically the taxable income and, where necessary, the adjusted
gross income and the adjustments provided in Section 2351 et seq. of
this title to arrive at Oklahoma taxable income and, where
necessary, Oklahoma adjusted gross income:
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1. Every resident individual having a gross income, or gross
receipts, for the taxable year in an amount sufficient to require
the filing of a federal income tax return, if single, or if married
and not living with husband or wife; and
2. Except as otherwise provided for in the Pass -Through Entity
Tax Equity Act of 2019, every resident individual h aving a gross
income, or gross receipts, for the taxable year in an amount
sufficient to require the filing of a federal income tax return, if
married and living with husband or wife.
Provided however, every resident individual who does not meet
the requirements sufficient to file a federal return, but has
Oklahoma withholding, may file a claim for refund for all Oklahoma
income taxes withheld and shall not be subject to the provisions of
Section 2358 of this title; and
3. Every nonresident individual havi ng Oklahoma gross income
for the taxable year of One Thousand Dollars ($1,000.00) or more.
B. If a husband and wife, living together, have an aggregate
gross income or gross receipts, for such year, in an amount
sufficient to require the filing of a feder al income tax return:
1. Each shall make a return; or
2. The income of each shall be included in a single joint
return, in which case the tax shall be computed on the aggregate net
income.
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C. 1. For tax years beginning on or after January 1, 2017,
every resident individual whose gross income from both within and
outside of Oklahoma exceeds the sum of the standard deduction and
personal exemption allowed in Section 2358 of this title shall file
an Oklahoma income tax return. Resident individuals not req uired to
file a federal income tax return must attach a completed federal
income tax return to the Oklahoma income tax return to show how
adjusted gross income and deductions were determined, if their gross
income is more than their adjusted gross income. The Oklahoma
income tax return must show the taxable income and, where necessary,
the adjusted gross income and modifications required by Section 2351
et seq. of this title, and any other information the Tax Commission
may require.
2. Except as otherwise provided for in the Pass -Through Entity
Tax Equity Act of 2019, every nonresident individual having Oklahoma
gross income for the taxable year of One Thousand Dollars
($1,000.00) or more shall file an Oklahoma income tax return.
D. If an individual is un able to make his or her own return,
the return shall be made by a duly authorized agent or by the
guardian or other person charged with the care of the person or
property of such individual.
E. Every partnership shall make a return for each taxable year,
stating the taxable income and the adjustments to arrive at Oklahoma
income. The Oklahoma return shall include a schedule showing the
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distribution to partners of the various items of income as per the
federal return and the adjustments required by Section 2351 et seq.
of this title for Oklahoma. The return shall be signed by one of
the partners. Except for partnerships making an election pursuant
to the provisions of the Pass -Through Entity Tax Equity Act of 2019,
if a partnership has elected pursuant to the provisions of Section
761 of the Internal Revenue Code, or any provision comparable
thereto, not to file partnership income tax returns, that
partnership shall not be required to file an Oklahoma partnership
return. The Oklahoma Tax Commission shall promulgate rules for
purposes of partnership returns when multiple partners would
otherwise be required to file a nonresident return. The rules shall
provide a specific number of partners in a partnership above which a
composite return may be filed. The return shall be in such form as
prescribed by the Tax Commission.
F. Every corporation shall make a return for each taxable year
stating the taxable income and the adjustments provided in Section
2351 et seq. of this title to arrive at Oklahoma taxable in come. In
addition, corporations electing subchapter S treatment pursuant to
the Internal Revenue Code and Section 2351 et seq. of this title,
shall include a schedule showing the distribution to shareholders of
the various items of income as per the feder al return and the
adjustments for Oklahoma. All corporation returns shall be signed
by the president, vice president, or other principal officer and the
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corporate seal impressed. In cases where receivers, trustees in
bankruptcy, or assignees are operatin g the property or business of
corporations, such receivers, trustees, or assignees shall make a
return for such corporations in the same manner and form as
corporations are required to make returns. Any tax due on the basis
of such returns made by receive rs, trustees, or assignees shall be
collected in the same manner as if collected from the corporations
of whose business or property they have custody and control.
G. Every resident estate and trust shall make a return for each
taxable year stating the ta xable income and the adjustments to
arrive at Oklahoma taxable income. Every nonresident estate or
trust having Oklahoma taxable income as provided in Section 2362 of
this title shall make a return for each taxable year stating the
taxable income and the adjustments to arrive at Oklahoma taxable
income. The Oklahoma return shall include a schedule showing the
distribution to beneficiaries, if any, of the various items of
income as per the federal return and the adjustments for Oklahoma.
The fiduciary shall be responsible for making the return and the
return shall be signed by the fiduciary, or by one fiduciary if
there is more than one. The Tax Commission shall promulgate rules
for purposes of estate and trust returns when multiple returns would
otherwise be required of nonresident beneficiaries of estates or
trusts. The return shall be in such form as prescribed by the Tax
Commission.
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H. 1. All individual returns, except individual returns filed
electronically, made on the basis of the calendar year s hall be due
on or before the fifteenth day of April following the close of the
taxable year. Provided, if the Internal Revenue Code provides for a
later due date for returns of individuals, the Tax Commission shall
accept returns filed by individuals by s uch date and such returns
shall be considered as timely filed.
2. All individual returns filed electronically, made on the
basis of the calendar year, shall be due on or before the twentieth
day of April following the close of the taxable year.
3. All individual returns made on the basis of a fiscal year
shall be due on or before the fifteenth day of the fourth month
following the close of the fiscal year.
4. For tax years beginning before January 1, 2016, calendar
year corporation returns shall be due o n or before the fifteenth day
of March following the close of the taxable year. For tax years
beginning on or after January 1, 2016, calendar year corporation
returns shall be due no later than thirty (30) days after the due
date established under the Int ernal Revenue Code.
5. For tax years beginning before January 1, 2016, fiscal year
corporation returns shall be due on or before the fifteenth day of
the third month following the close of the fiscal year. For tax
years beginning on or after January 1, 2 016, fiscal year corporation
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returns shall be due no later than thirty (30) days after the due
date established under the Internal Revenue Code.
6. For tax years beginning before January 1, 2016, partnership
returns shall be due on or before the fifteenth day of April
following the close of the taxable year. For tax years beginning on
or after January 1, 2016, partnership returns shall be due no later
than thirty (30) days after the due date established under the
Internal Revenue Code.
7. All estate and trust returns made on the basis of the
calendar year shall be due on or before the fifteenth day of April
following the close of the taxable year. All estate and trust
returns made on the basis of a fiscal year shall be due on or before
the fifteenth day of the fourth month following the close of the
fiscal year.
8. In the case of complete liquidation, or the dissolution, of
a corporation the return of such corporation shall be made on or
before the fifteenth day of the fourth month following the month in
which the corporation is completely liquidated. A corporation which
has terminated its business activities, satisfied or made provision
for all of its liabilities or has distributed all of its assets,
even though not formally dissolved under state law, i s deemed to
have completely liquidated for purposes of this subsection.
9. The Tax Commission may also provide a later due date for
returns of individuals, calendar year corporations, fiscal year
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corporations, partnership returns, estate and trust returns , or
estimated tax payments as provided in Section 2385.9 of this title
if a state of emergency is declared by the Governor or upon
declaration by the Internal Revenue Service to postpone certain tax
filing and tax payment deadlines in disaster areas.
I. Returns by individuals, fiduciaries, partnerships,
corporations or any other person or entity required, or that may
hereafter be required to file a return, shall contain or be verified
by a written declaration that such return is made under the
penalties of perjury and the fact that any individual's name is
signed to a filed return shall be prima facie evidence for all
purposes that the return was actually signed by that individual.
Provided, the Tax Commission shall promulgate rules to provide
procedures for verification of signatures on returns which are filed
electronically.
J. Every return required by Section 2351 et seq. of this title
shall be in such form as the Tax Commission may, from time to time,
prescribe. Each return shall be filed with the Ta x Commission and
forms shall be furnished by the Tax Commission on application
therefor, but failure to secure or receive the form of a return
prescribed shall not relieve any taxpayer from the obligation of
making and filing any return herein required.
K. For tax years ending after January 1, 2017, if a taxpayer
elects to make installment payments of tax due pursuant to the
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provisions of subsection (h) of Section 965 of the Internal Revenue
Code, 26 U.S.C., Section 965, such election may also apply to the
payment of Oklahoma income tax, attributable to the income upon
which such installment payments are based.
SECTION 3. AMENDATORY 68 O.S. 2011, Section 2385.13, is
amended to read as follows:
Section 2385.13 A. In the case of an y underpayment of the
estimated tax payment required in Section 2385.9 of this title,
there shall be added to the amount of the underpayment interest
thereon at an annual rate of twenty percent (20%) for the period of
the underpayment.
B. As used in subse ction A of this section, the amount of the
underpayment shall be the excess of the required installment over
the amount paid on or before the due date of the installment. The
period of underpayment shall run from the due date of the required
installment to the earlier of the fifteenth day of the fourth month,
or for corporations, the fifteenth day of the third month thirty
(30) days after the due date for returns established under the
Internal Revenue Code , following the close of the taxable year or
the date on which the required installment is paid.
C. No addition to tax shall be imposed under subsection A of
this section if the tax shown on the return for the taxable year is
less than One Thousand Dollars ($1,000.00) or if the taxpayer was an
Oklahoma resident throughout the preceding taxable year of twelve
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(12) months and did not have any liability for tax for the preceding
taxable year.
SECTION 4. Section 3 of this act shall become effective
November 1, 2021.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-1-8162 JM 04/15/21