An Act
(1ST EXTRAORDINARY SESSION)
ENROLLED HOUSE
BILL NO. 1039 By: Wallace, Martinez, Kendrix,
Lepak, and Hays of the
House
and
Thompson (Roger) and Hall
of the Senate
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 1203, 1204, and 1210, which
relate to the franch ise tax upon corporations,
associations, joint-stock companies, and business
trusts, the franchise tax upon foreig n corporations,
and annual reporting; removing levy of tax after
certain year; limiting annual statement requirement
to certain years; updating statutory language;
providing an effective date; and declaring an
emergency.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1203, is
amended to read as follows:
Section 1203. There For tax year 2023 and previous tax years,
there is hereby levied and assessed a franchise or excise tax upo n
every corporation, association, joint-stock company and business
trust organized under the laws of this state, equal to One Dollar
and twenty-five cents ($1.25) for each One Thousand Dollars
($1,000.00) or fraction thereof of the amount of capital used,
invested or employed in the exercise of any power, pr ivilege or
right inuring to such organization, within this state; it being the
purpose of this section to require the payment to the State of
Oklahoma this state this tax for the right granted by the law s of
this state to exist as such organization and enj oy, under the
protection of the laws of this state, the powers, rights, privileg es ENR. H. B. NO. 1039 (1ST EX. SESS.) Page 2
and immunities derived from the state by reason of the form of such
existence.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1204, is
amended to read as follows:
Section 1204. There For tax year 2023 and previous tax years,
there is hereby levied and assessed upon every corporation,
association, joint-stock company and business trust, organized and
existing by virtue o f the laws of some other state, territory or
country, now or hereafte r doing business in this state, as
hereinbefore defined, a franchise or excise tax equal to One Dollar
and twenty-five cents ($1.25) for each One Thousand Dollars
($1,000.00) or fraction thereof of the amount of capita l used,
invested or employed within th is state; it being the purpose of this
section to require the payment of a tax by all organizations not
organized under the laws of this state, measured by the amount of
capital, or its equivalent, used, invested or em ployed in this state
for which such organization receives the benefit and protecti on of
the government and laws of the state.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 1210, is
amended to read as f ollows:
Section 1210. A. In addition to any other statement require d
by law, for tax year 2023 and previous tax years, each and every
corporation, association or organization, as enu merated in Sections
1201, 1203, and 1204 of this tit le, subject to the p rovisions of
Section 1201 et seq. of this title, either during the pe riod of July
1 to August 31, inclusive, of e ach year, or not later than June 1
for taxpayers that remitted the maxi mum amount of tax pursuant to
Section 1205 of this t itle for the precedi ng tax year, or, except
for taxpayers that remitted the maximum amoun t of tax pursuant to
Section 1205 of this ti tle for the preceding tax year, on or before
the date by which an incom e tax return is required to be filed
pursuant to the provisions of subsection G of Section 2368 of th is
title or pursuant to the provisions o f Section 216 of this title,
based upon the election by the taxpayer regarding the due date for
payment of tax, shall file with the Oklahoma Tax Commission a
statement under oath of its president, secretary or managi ng
officer, or managing agent in this st ate. The statement shall be in
such form as the Tax Commission shall prescribe, including balance
sheets as at the close of its last preceding taxable year for which
an income tax return was required to be filed, sh owing the
following: ENR. H. B. NO. 1039 (1ST EX. SESS.) Page 3
1. The amount of its authorized capital stock, interests,
certificates, or other evidence of interest or ownership;
2. The amount thereof then paid up;
3. The number of units into whi ch the same is divid ed;
4. The par value of each unit and the number of such units
issued and outstanding;
5. The location of the o ffice or offices;
6. The value of all property owned or used in its bu siness and
wherever located;
7. The value of all pr operty owned or used in its business
within this state as it existed on the last day of t he tax year;
8. The total amount of all bus iness wherever transacted during
the tax year;
9. The total amount of business transacted within the State of
Oklahoma this state during such year; and
10. The names of its officers and the residence and post o ffice
address of each as the same appear of record on the last day of the
tax year, based upon the election by the taxpayer regarding the due
date for payment of tax.
B. If any corporati on, association or organization making a
return under the provisions of Section 1201 et seq. of this title
has no authorized capital, or if any of its shares of stock or other
evidences of interest or ownership have no par value, then s uch
corporation, association or organization shall so state in its
return, and shall, in addition thereto, state the book value of it s
shares of stock or other evidences of interest or ownership. It
shall also, in making its return, make the showing requi red of all
other corporations, associations and organizations, and each foreign
corporation shall state the name of its registered ag ent residing at
the capital of the state. The return shall be in such form as the
Tax Commission shall prescribe.
C. A corporation or organiz ation subject to the tax levied by
Section 1203 or Section 1204 of th is title for which the computation ENR. H. B. NO. 1039 (1ST EX. SESS.) Page 4
of capital employed in the state equals or exceeds Sixteen Million
Dollars ($16,000,000.00), shall file a maximum franchise tax retu rn
on such form as may be prescribed by the Oklahoma Tax Commission.
D. The Tax Commissi on shall prescribe a form for use by
corporations or organizations subject to the maximum tax imposed by
Section 1205 of this title in order for such corporations or
organizations to dete rmine if the value of capital employed in this
state requires filing a maximum franchise tax return. The Tax
Commission shall also prescribe a form for use by corporations or
organizations exempt from the tax imposed by Sections 1203 a nd 1204
of this title pursuant to Section 1205 of this title. Such form
shall include the names of the officers of the corporation o r
organization and the residence and post office address of each as
the same appears of record on the last day of the tax y ear and a
statement attesting that no tax is due for the taxable period. If a
corporation or organization is required to file the ma ximum
franchise tax return or is exempt from the tax imposed by Section s
1203 and 1204 of this title pursuant to Section 12 05 of this title,
such return shall not be subject to the requirements of subsection A
of this section and the return shall only cont ain such information
as may be prescribed by the Commission. The retur n shall be in such
form as the Tax Commission shall prescribe.
SECTION 4. This act shall become effective July 1, 2023.
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 ap proval.
ENR. H. B. NO. 1039 (1ST EX. SESS.) Page 5
Passed the House of Representatives the 24th day of May, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the 26th day of May, 2023.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Okl ahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this ______ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________