Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB825 Compare Versions

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Version 2 (New)

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3		-	An Act
4		-	ENROLLED SENATE
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	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 58th Legislature (2021)
	34	+
	35	+	ENGROSSED SENATE
5	36		BILL NO. 825 By: Standridge of the Senate
6	37
7	38		and
8	39
9	40		West (Kevin) of the House
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14	45		An Act relating to revenue and taxation; amending 6 8
15	46		O.S. 2011, Section 2701, which relates to the
16	47		authorization to tax for purposes of municipal
17	48		government; requiring a vote of the people to
18	49		redirect or reduce funds provided by taxes levied by
19	50		a vote of the people; updating statutory reference;
20	51		and providing an effective date.
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24		-	~~SUBJECT: Revenue and taxation~~
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25	56
26	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
27		-
28	58		SECTION 1. AMENDATORY 68 O.S. 2011, Section 2701, is
29	59		amended to read as follows:
30		-
31	60		Section 2701. A. Any incorporated city or town in this state
32	61		is hereby authorized to assess, levy, and collect taxes for general
33	62		and special purposes of municipal government as the Legislature may
34	63		levy and collect for purposes of state government, subject to the
35	64		provisions of subsection F of this section, except ad valo rem
36	65		property taxes. Provided:
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38	93		1. Taxes shall be uniform upon the same class subjects, and any
39	94		tax, charge, or fee levied upon or measured by income or receipts
40	95		from the sale of products or services shall be uniform upon all
41	96		classes of taxpayers;
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43	97		2. Motor vehicles may be taxed by the city or town only when
44	98		such vehicles are primarily used or located in such city or town for
45	99		a period of time longer than six (6) months of a taxable year;
46		-
47		-	ENR. S. B. NO. 825 Page 2
48		-
49	100		3. The provisions of this section shall not be construed to
50	101		authorize imposition of any tax upon persons, firms, or corporations
51	102		exempted from other taxation under the provisions of Sections 348.1,
52	103		624 and 321 of Title 36 of the Oklahoma Statutes, by reason of
53	104		payment of taxes imposed under such sections;
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55	105		4. Cooperatives and communications companies are hereby
56	106		authorized to pass on to their subscribers in the incorporated city
57	107		or town involved, the amount of any special municipal fee, charge or
58	108		tax hereafter assessed or levied on or collected from such
59	109		cooperatives or commu nications companies;
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61	110		5. No earnings, payroll or income taxes may be levied on
62	111		nonresidents of the cities or towns levying such tax;
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64	112		6. The governing body of any city or town shall be prohibited
65	113		from proposing taxing ordinances more often than three times in any
66	114		calendar year, or twice in any six -month period; and
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68	142		7. Any revenues derived from a tax authorized by this
69	143		subsection not dedicated to a limited purpose shall be deposited in
70	144		the municipal general fund.
71		-
72	145		B. A sales tax authorized in subsection A o f this section may
73	146		be levied for limited purposes specified in the ordinance levying
74	147		the tax. Such ordinance shall be submitted to the voters for
75	148		approval as provided in Section 2705 of this title. Any sales tax
76	149		levied or any change in the rate of a sale s tax levied pursuant to
77	150		the provisions of this section shall become effective on the first
78	151		day of the calendar quarter following approval by the voters of the
79	152		city or town unless another effective date, which shall also be on
80	153		the first day of a calendar q uarter, is specified in the ordinance
81	154		levying the sales tax or changing the rate of sales tax. Such
82	155		ordinance shall describe with specificity the projects or
83	156		expenditures for which the limited -purpose tax levy would be made.
84	157		The municipal governing body shall create a limited -purpose fund and
85	158		deposit therein any revenue generated by any tax levied pursuant to
86	159		this subsection. Money in the fund shall be accumulated from year
87	160		to year. The fund shall be placed in an insured interest -bearing
88	161		account and the interest which accrues on the fund shall be retained
89	162		in the fund. The fund shall be nonfiscal and shall not be
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91		-	ENR. S. B. NO. 825 Page 3
92	163		considered in computing any levy when the municipality makes its
93	164		estimate to the excise board for needed appropriations. Money in
94	165		the limited-purpose tax fund shall be expended only as accumulated
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95	193		and only for the purposes specifically described in the taxing
96	194		ordinance as approved by the voters.
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98	195		C. The Oklahoma Tax Commission shall give notice to all vendors
99	196		of a rate change at least sixty (60) days prior to the effective
100	197		date of the rate change. Provided, for purchases from printed
101	198		catalogs wherein the purchaser computed the tax based upon local tax
102	199		rates published in the catalog, the rate change shall not be
103	200		effective until the first day of a calendar quarter after a minimum
104	201		of one hundred twenty (120) one hundred twenty-days’ notice to
105	202		vendors. Failure to give notice as required by this section shall
106	203		delay the effective date of the rate change to the first day of the
107	204		next calendar quarter.
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109	205		D. The change in the boundary of a municipality shall be
110	206		effective, for sales and use tax purposes only, on the first day of
111	207		a calendar quarter after a minimum of sixty (60) days ’ notice to
112	208		vendors.
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114	209		E. If the proceeds of any sales tax levied by a municipa lity
115	210		pursuant to subsection B of this section are being used by the
116	211		municipality for the purpose of retiring indebtedness incurred by
117	212		the municipality or by a public trust of which the municipality is a
118	213		beneficiary for the specific purpose for which the sa les tax was
119	214		imposed, the sales tax shall not be repealed until such time as the
120	215		indebtedness is retired. However, in no event shall the life of the
121	216		tax be extended beyond the duration approved by the voters of the
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122	244		municipality. The provisions of this sub section shall apply to all
123	245		sales tax levies imposed by a municipality and being used by the
124	246		municipality for the purposes set forth in this subsection prior to
125	247		or after July 1, 1995.
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127	248		F. The sale of an article of clothing or footwear designed to
128	249		be worn on or about the human body shall be exempt from the sales
129	250		tax imposed by any incorporated city or town, in accordance with and
130	251		to the extent set forth in Section 3 of this act 1357.10 of this
131	252		title.
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134		-	ENR. S. B. NO. 825 Page 4
135	253		G. Any municipality that levies a dedicated tax pursuant t o a
136	254		vote of the people for the purpose of funding public safety or any
137	255		other governmental purpose shall not redirect all or a portion of
138	256		the dedicated tax revenue to another purpose without a vote of the
139	257		people authorizing such action.
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141	258		SECTION 2. This act shall become effective November 1, 2021.
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144		-	ENR. S. B. NO. 825 Page 5
145		-	Passed the Senate the 8th day of March, 2021.
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147		-
148		-
149		-	Presiding Officer of the Senate
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152		-	Passed the House of Representatives the 20th day of April, 2021.
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156		-	Presiding Officer of the House
157		-	of Representatives
158		-
159		-	OFFICE OF THE GOVERNOR
160		-	Received by the Office of the Governor this _______ _____________
161		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
162		-	By: _______________________________ __
163		-	Approved by the Governor of the State of Oklahoma this _____ ____
164		-	day of _________________ __, 20_______, at ____ ___ o'clock _______ M.
165		-
166		-	_________________________________
167		-	Governor of the State of Oklahoma
168		-
169		-
170		-	OFFICE OF THE SECRETARY OF STATE
171		-	Received by the Office of the Secretary of State this _______ ___
172		-	day of __________________, 20 _______, at _______ o'clock ____ ___ M.
173		-	By: _______________________________ __
	260	+	COMMITTEE REPORT BY: COMMITTEE ON RU LES, dated 04/06/2021 - DO PASS.