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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 932 By: David
AS INTRODUCED
An Act relating to income tax; amending 68 O.S. 2011,
Section 2359, as amended by Section 4, Chapter 320,
O.S.L. 2019 (68 O.S. Supp. 2020, Section 2359), which
relates to income tax exemption; excluding certain
private hospitals from income tax exemption; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 2359, as
amended by Section 4, Chapter 320, O.S.L. 2019 (68 O.S. Supp. 2020,
Section 2359), is amended to read as follows:
Section 2359. A. A person or organization exempt from federal
income taxation under the provis ions of the Internal Revenue Code
shall also be exempt from the tax imposed by Section 2351 et seq. of
this title in each year in which suc h person or organization
satisfies the requirements of the Internal Reve nue Code for
exemption from federal income ta xation. If the exemption applicable
to any person or organization under the provisions of the Internal
Revenue Code is limited or qualifie d in any manner, the exemption
from taxes imposed by this article shall be limited or qualified in
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a similar manner. The exemption provided in this subse ction shall
not apply to a private hospital as defined in Section 1 -701 of Title
63 of the Oklahoma Statutes.
B. Notwithstanding the provisions of subsection A of this
section, the unrelated business taxable inc ome or other income
subject to tax, as computed under the provisions of the Internal
Revenue Code, of any person or organization exempt from the tax
imposed by Section 2351 et seq. of this title and subject to the tax
imposed on such income by the Internal Revenue Code shall be subject
to the tax which would have been imposed by this act the Oklahoma
Income Tax Act but for the provisions of subsection A of this
section.
C. Insurance companies paying, during or for the taxable year,
a tax to this state on gross premium income shall be exempt from the
provisions of this a rticle and the taxes levied thereby.
D. Royalty earned by an inventor from products developed and
manufactured in this state shall be exempt from the ta x imposed by
Section 2355 of this title for a seven -year period, pursuant to the
provisions of Section 5064.7 of Title 74 of the Oklahoma Statutes.
E. Tenants of small business incubators shall be exempt for the
tax imposed by Section 2355 of this title, pursuant to the
provisions of Section 5078 of Title 74 of the Oklahoma Statutes.
SECTION 2. This act shall become effective November 1, 2021.
58-1-1073 QD 1/21/2021 5:46:57 PM