Oklahoma 2023 Regular Session

Oklahoma House Bill HB1759 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	An Act
2		-	ENROLLED HOUSE
	1	+
	2	+
	3	+	SENATE FLOOR VERSION - HB1759 SFLR Page 1
	4	+	(Bold face denotes Committee Amendments) 1
	5	+	2
	6	+	3
	7	+	4
	8	+	5
	9	+	6
	10	+	7
	11	+	8
	12	+	9
	13	+	10
	14	+	11
	15	+	12
	16	+	13
	17	+	14
	18	+	15
	19	+	16
	20	+	17
	21	+	18
	22	+	19
	23	+	20
	24	+	21
	25	+	22
	26	+	23
	27	+	24
	28	+
	29	+	SENATE FLOOR VERSION
	30	+	April 10, 2023
	31	+	AS AMENDED
	32	+
	33	+	ENGROSSED HOUSE
3	34		BILL NO. 1759 By: Manger of the House
4	35
5	36		and
6	37
7	38		Stanley of the Senate
8		-
9		-
10	39
11	40
12	41
13	42
14	43		An Act relating to excise tax; amending 68 O.S. 2021,
15	44		Section 2105, which relates to excise tax on
16	45		vehicles; modifying name of responsible entity ;
17	46		defining term; updating statutory language; providing
18	47		for transfer-on-death procedures for vessels or
19	48		motors; requiring notice; prescribing content of
20	49		notice; authorizing revocation; providing for
21	50		affidavit by transferee; providing for codification;
22	51		and providing an effective date.
23	52
24	53
25	54
26		-
27		-	SUBJECT: Excise tax
28		-
29	55		BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA:
30		-
31	56		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2105, is
32	57		amended to read as follows:
33		-
34	58		Section 2105. An original or a transfer certificate of title
35	59		shall be issued without the payment of the excise tax levied by
36	60		Section 2101 et seq. of this title for:
37		-
38	61		1. Any vehicle owned by a nonresident person who operates
39	62		principally in some other state but who is in Oklahoma only
40	63		occasionally;
41		-
42	64		2. Any vehicle brought into this state by a person formerly
43	65		living in another state, wh o has owned and registered the vehicle in
	66	+
	67	+	SENATE FLOOR VERSION - HB1759 SFLR Page 2
	68	+	(Bold face denotes Committee Amendments) 1
	69	+	2
	70	+	3
	71	+	4
	72	+	5
	73	+	6
	74	+	7
	75	+	8
	76	+	9
	77	+	10
	78	+	11
	79	+	12
	80	+	13
	81	+	14
	82	+	15
	83	+	16
	84	+	17
	85	+	18
	86	+	19
	87	+	20
	88	+	21
	89	+	22
	90	+	23
	91	+	24
	92	+
44	93		such other state of residence at least sixty (60) days prior to the
45		-	time it is required to be registered in this state; ~~p rovided~~, ~~ENR. H. B. NO. 1759 Page 2~~
	94	+	time it is required to be registered in this state; provided,
46	95		however, this paragraph shall not apply to businesses engaged in
47	96		renting cars without a driver;
48		-
49	97		3. Any vehicle registered by the State of Oklahoma this state,
50	98		by any of the political su bdivisions thereof, or by a fire
51	99		department organized pursuant to Section 592 of Title 18 of the
52	100		Oklahoma Statutes to be used for the purposes of the fire
53	101		department, or a vehi cle which is the subject of a lease or lease-
54	102		purchase agreement executed between the person seeking an original
55	103		or transfer certificate of title for the vehicle and a municipality,
56	104		county, school district, or fire protection district. The person
57	105		seeking an original or transfer certificate of title shall provide
58	106		adequate proof that th e vehicle is subject to a lease or lease-
59	107		purchase agreement with a municipality, county, school district, or
60	108		fire protection district at the time the exci se tax levied would
61	109		otherwise be payable. The Oklahoma Tax Commission Service Oklahoma
62	110		shall have the authority to de termine what constitutes adequate
63	111		proof as required by this section;
64		-
65	112		4. Any vehicle, the legal ownership of which is obtained by the
66	113		applicant for a certi ficate of title by inh eritance. For the
67	114		purposes of this section, "inheritance" means any transfer from a
68	115		deceased individual to the direct successor in interest of the
69	116		decedent without consideration, whether through probate,
	117	+
	118	+	SENATE FLOOR VERSION - HB1759 SFLR Page 3
	119	+	(Bold face denotes Committee Amendments) 1
	120	+	2
	121	+	3
	122	+	4
	123	+	5
	124	+	6
	125	+	7
	126	+	8
	127	+	9
	128	+	10
	129	+	11
	130	+	12
	131	+	13
	132	+	14
	133	+	15
	134	+	16
	135	+	17
	136	+	18
	137	+	19
	138	+	20
	139	+	21
	140	+	22
	141	+	23
	142	+	24
	143	+
70	144		administration, inter vivos t rust, transfer-on-death designation, or
71	145		joint ownership;
72		-
73	146		5. Any used motor vehicle, travel trailer, or commercial
74	147		trailer which is owned and being offered for sale by a person
75	148		licensed as a dealer to sell the same, under the provisions of the
76	149		Oklahoma Vehicle License and Registrati on Act:
77		-
78	150		a. if such vehicle, travel trailer, or commercial trailer
79	151		has been registered in Oklahoma and the excise tax
80	152		paid thereon, or
81		-
82	153		b. when such vehicle, travel trailer, or commercial
83	154		trailer has been registered in some other s tate but is
84	155		not the latest manufactured model.
85		-
86	156		Provided, the provisions of this paragraph shall not b e
87	157		construed as allowing an exemption to any person not licensed as a
88	158		dealer of used motor vehicles, travel trailers, or commercial
89	159		trailers, or as an autom otive dismantler and parts recycler in this
90		-	state; ENR. H. B. NO. 1759 Page 3
91		-
	160	+	state;
92	161		6. Any vehicle which was purchased by a person li censed to sell
93	162		new or used motor vehicles in another state if:
94		-
95	163		a. if such vehicle is not purchased for operation or
96	164		resale in this state, and
97		-
98	165		b. the state from which the dealer is li censed offers
99	166		reciprocal privileges to a dealer licensed in this
100	167		state, pursuant to a reciprocal agreement between the
	168	+
	169	+	SENATE FLOOR VERSION - HB1759 SFLR Page 4
	170	+	(Bold face denotes Committee Amendments) 1
	171	+	2
	172	+	3
	173	+	4
	174	+	5
	175	+	6
	176	+	7
	177	+	8
	178	+	9
	179	+	10
	180	+	11
	181	+	12
	182	+	13
	183	+	14
	184	+	15
	185	+	16
	186	+	17
	187	+	18
	188	+	19
	189	+	20
	190	+	21
	191	+	22
	192	+	23
	193	+	24
	194	+
101	195		duly authorized agent of the Tax Commission Service
102	196		Oklahoma and the licensing state;
103		-
104	197		7. Any vehicle, the ownership of which w as obtained by the
105	198		lienholder or mortgagee under or by foreclosure of a lien or
106	199		mortgage in the manner provided by law or to the insurer under
107	200		subrogated rights arising by reason of loss under an insurance
108	201		contract;
109		-
110	202		8. Any vehicle which is taxed on an ad valorem basis;
111		-
112	203		9. Any vehicle or motor vehicle, the legal ownership of which
113	204		is obtained by transfers:
114		-
115	205		a. from one corporation to another corporation pursuant
116	206		to a reorganization. As used in this subsection
117	207		subparagraph, the term "reorganization" means:
118		-
119	208		(1) a statutory merger or consolida tion, or
120		-
121	209		(2) the acquisition by a corporation of substantially
122	210		all of the properties of another corporation when
123	211		the consideration is solely all or a part o f the
124	212		voting stock of the acquiring corporation, or of
125	213		its parent or subsidiary corporation,
126		-
127	214		b. in connection with the winding up , dissolution, or
128	215		liquidation of a corporation only when there is a
129	216		distribution in kind to the shareholders of the
130	217		property of such corporation,
131	218
	219	+	SENATE FLOOR VERSION - HB1759 SFLR Page 5
	220	+	(Bold face denotes Committee Amendments) 1
	221	+	2
	222	+	3
	223	+	4
	224	+	5
	225	+	6
	226	+	7
	227	+	8
	228	+	9
	229	+	10
	230	+	11
	231	+	12
	232	+	13
	233	+	14
	234	+	15
	235	+	16
	236	+	17
	237	+	18
	238	+	19
	239	+	20
	240	+	21
	241	+	22
	242	+	23
	243	+	24
	244	+
132	245		c. to a corporation where the former owners of the
133	246		vehicle or motor vehicle trans ferred are, immediately
134	247		after the transfer, in control of the corporation, and
135		-	the stock or securities received by eac h is ~~ENR. H. B. NO. 1759 Page 4~~
	248	+	the stock or securities received by eac h is
136	249		substantially in proportion to th e interest in the
137	250		vehicle or motor vehicle prior to the transfer,
138		-
139	251		d. to a partnership if the former owners of the vehicle
140	252		or motor vehicle transferred are, immediately after
141	253		the transfer, members of such partnership an d the
142	254		interest in the partnership rece ived by each is
143	255		substantially in proportion to the interest in the
144	256		vehicle or motor vehicle prior to the transfer,
145		-
146	257		e. from a partnership to the members thereof when made in
147	258		the dissolution of such partnership,
148		-
149	259		f. to a limited liability company if the forme r owners of
150	260		the vehicle or motor vehicle transferred are,
151	261		immediately after the transfer, members of the limited
152	262		liability company and the interest in the limited
153	263		liability company received by each is substantially in
154	264		proportion to the interest in the vehi cle or motor
155	265		vehicle prior to the transfer, or
156		-
157	266		g. from a limited liability company to the members
158	267		thereof when made in the dissol ution of such
159	268		partnership;
160	269
	270	+	SENATE FLOOR VERSION - HB1759 SFLR Page 6
	271	+	(Bold face denotes Committee Amendments) 1
	272	+	2
	273	+	3
	274	+	4
	275	+	5
	276	+	6
	277	+	7
	278	+	8
	279	+	9
	280	+	10
	281	+	11
	282	+	12
	283	+	13
	284	+	14
	285	+	15
	286	+	16
	287	+	17
	288	+	18
	289	+	19
	290	+	20
	291	+	21
	292	+	22
	293	+	23
	294	+	24
	295	+
161	296		10. Any vehicle which is purchased by a person to be used by a
162	297		business engaged in renting motor ve hicles without a driver,
163	298		provided:
164		-
165	299		a. the vehicle shall not be ren ted to the same person for
166	300		a period exceeding ninety (90) days,
167		-
168	301		b. any such vehicle exempted from the excise tax by these
169	302		provisions shall not be placed under any type of lease
170	303		agreement,
171		-
172	304		c. on any such vehicle exempted from the excise tax by
173	305		this subsection paragraph that is reregistered in this
174	306		state, without a prior sale or transfer to the persons
175	307		specified in divisions (1) and (2) of this
176	308		subparagraph, at any time prior to the expiration of
177	309		twelve (12) months from the date of issuance of the
178	310		original title, the seller shall pay immediately the
179	311		amount of excise tax which woul d have been due had
180		-	this exemption not been granted plus a penalty of ~~ENR. H. B. NO. 1759 Page 5~~
	312	+	this exemption not been granted plus a penalty of
181	313		twenty percent (20%). No such excise tax or penalty
182	314		shall become due and payable if the vehicle is sold or
183	315		transferred in a condition either physical or
184	316		mechanical which would render it eligible for a
185	317		salvage title pursuant to law or if the vehicle is
186	318		sold and transferred in this state at any time prior
187	319		to the expiration of twelve (12) months:
188	320
	321	+	SENATE FLOOR VERSION - HB1759 SFLR Page 7
	322	+	(Bold face denotes Committee Amendments) 1
	323	+	2
	324	+	3
	325	+	4
	326	+	5
	327	+	6
	328	+	7
	329	+	8
	330	+	9
	331	+	10
	332	+	11
	333	+	12
	334	+	13
	335	+	14
	336	+	15
	337	+	16
	338	+	17
	339	+	18
	340	+	19
	341	+	20
	342	+	21
	343	+	22
	344	+	23
	345	+	24
	346	+
189	347		(1) to the manufacturer of the vehicle or its
190	348		controlled financing arm, or
191		-
192	349		(2) to a factory authorized franchised new motor
193	350		vehicle dealer which holds a franchise of the
194	351		same line-make of the vehicle being purchased, or
195		-
196	352		d. when this exemption is claimed, the Tax Commission
197	353		Service Oklahoma shall issue a special title which
198	354		shall restrict the t ransfer of the title only within
199	355		this state prior to the expiration of twelve (12)
200	356		months unless:
201		-
202	357		(1) payment of the excise tax plus penalty as
203	358		provided in this section is made,
204		-
205	359		(2) the sale is made to a person specified in
206	360		division (1) or (2) of subparagr aph c of this
207	361		paragraph, or
208		-
209	362		(3) the vehicle is eligible for a salvage title.
210		-
211	363		For all other tax purposes vehicles herein exempted shall be
212	364		treated as though the excise tax has been paid;
213		-
214	365		11. Any vehicle of the latest manufactured model, registered
215	366		from a title in the name of the original manufacturer or assigned to
216	367		the original manufacturer and issued by any state and transferred to
217	368		a licensed, franchis ed Oklahoma motor vehicle dealer, as defined by
218	369		Section 1102 of Title 47 of the Oklahoma Statutes, which h olds a
219	370		franchise of the same line-make as the vehicle being registered;
220	371
	372	+	SENATE FLOOR VERSION - HB1759 SFLR Page 8
	373	+	(Bold face denotes Committee Amendments) 1
	374	+	2
	375	+	3
	376	+	4
	377	+	5
	378	+	6
	379	+	7
	380	+	8
	381	+	9
	382	+	10
	383	+	11
	384	+	12
	385	+	13
	386	+	14
	387	+	15
	388	+	16
	389	+	17
	390	+	18
	391	+	19
	392	+	20
	393	+	21
	394	+	22
	395	+	23
	396	+	24
	397	+
221	398		12. Any new motor vehicle, registered in the name of a
222	399		manufacturer or dealer of new motor vehicles, for which a license
223	400		plate has been issued pursuant to Section 1116.1 of Title 47 o f the
224	401		Oklahoma Statutes, if such vehicle is authorized by the manufacturer
225		-	or dealer for personal use by an ~~individu al~~. The authorization for ~~ENR. H. B. NO. 1759 Page 6~~
	402	+	or dealer for personal use by an individual. The authorization for
226	403		such use shall not exceed four (4) months which shall not be renewed
227	404		or the exemption provided by this subsection paragraph shall not be
228	405		applicable. The exemption provided by this subsection paragraph
229	406		shall not be applicable to a transfer of owners hip or registration
230	407		subsequent to the first registration of the vehicle by a
231	408		manufacturer or dealer;
232		-
233	409		13. Any vehicle, travel trailer, or commercial trailer of the
234	410		latest manufacturer model purchased by a franchised Oklahoma dealer
235	411		licensed to sell the sam e which holds a franchise of the s ame line-
236	412		make as the vehicle, travel trailer, or commercial trailer being
237	413		registered;
238		-
239	414		14. Any vehicle which is the subject of a lease or lease-
240	415		purchase agreement and which the ownership of such vehicle is being
241	416		obtained by the lessee, if the vehicle excis e tax was paid at the
242	417		time of the initial lease or lease-purchase agreement;
243		-
244	418		15. Any vehicle which:
245		-
246	419		a. is purchased by a private, nonprofit organization
247	420		which is exempt from taxation pursuant to the
248	421		provisions of Section 501(c)(3) of the Internal
	422	+
	423	+	SENATE FLOOR VERSION - HB1759 SFLR Page 9
	424	+	(Bold face denotes Committee Amendments) 1
	425	+	2
	426	+	3
	427	+	4
	428	+	5
	429	+	6
	430	+	7
	431	+	8
	432	+	9
	433	+	10
	434	+	11
	435	+	12
	436	+	13
	437	+	14
	438	+	15
	439	+	16
	440	+	17
	441	+	18
	442	+	19
	443	+	20
	444	+	21
	445	+	22
	446	+	23
	447	+	24
	448	+
249	449		Revenue Code, 26 U.S.C., Section 501(c)(3), and which
250	450		is primarily funded by a fraterna l or civic service
251	451		organization with at least one hundred local chapters
252	452		or clubs, and
253		-
254	453		b. is designed and used to provide mobile health
255	454		screening services to the general public at no cost to
256	455		the recipient, and for which no reimbursement of any
257	456		kind is received from any health ins urance provider,
258	457		health maintenance organization, or governmental
259	458		program;
260		-
261	459		16. Any vehicle which is purchased by an in dividual who has
262	460		been honorably discharged from active service in any branch of the
263	461		Armed Forces of the United St ates or Oklahoma Nationa l Guard and who
264	462		has been certified by the United States Department of Veterans
265	463		Affairs, its successor, or the Armed For ces of the United States to
266	464		be a disabled veteran in receipt of compensation at the one-hundred-
267	465		percent rate for a permanent disability s ustained through military
268	466		action or accident resulting from disease contracted while in such
269	467		active service and registe red with the veterans registry cre ated by
270		-	the Oklahoma Department of Veterans Affairs; provided, that if the ~~ENR. H. B. NO. 1759 Page 7~~
	468	+	the Oklahoma Department of Veterans Affairs; provided, that if the
271	469		veteran has previously recei ved exemption pursuant to this
272	470		paragraph, no registration with the veterans registry shall be
273	471		required. This exemption may not be claimed by an individu al for
274	472		more than one vehicle in a consecutive three-year period, unless the
	473	+
	474	+	SENATE FLOOR VERSION - HB1759 SFLR Page 10
	475	+	(Bold face denotes Committee Amendments) 1
	476	+	2
	477	+	3
	478	+	4
	479	+	5
	480	+	6
	481	+	7
	482	+	8
	483	+	9
	484	+	10
	485	+	11
	486	+	12
	487	+	13
	488	+	14
	489	+	15
	490	+	16
	491	+	17
	492	+	18
	493	+	19
	494	+	20
	495	+	21
	496	+	22
	497	+	23
	498	+	24
	499	+
275	500		vehicle is a replacement fo r a vehicle which was destroyed and
276	501		declared by the insurer to be a total loss claim. The Tax
277	502		Commission Service Oklahoma shall promulgate any rules necessary to
278	503		implement the provisions of this section; or
279		-
280	504		17. Any vehicle on which ownership is tr ansferred by a
281	505		repossessor directly back to the owner or owners from whom the
282	506		vehicle was repossessed; provided, ownership shall be assigned by
283	507		the repossessor within thirty (30 ) days of issuance of the
284	508		repossession title and shall be identical to that ref lected in the
285	509		vehicle title record immediately prior to the repossession.
286		-
287	510		SECTION 2. NEW LAW A new section of law to be codified
288	511		in the Oklahoma Statutes as Section 4012.1 of Title 63, unless there
289	512		is created a duplication in number ing, reads as follows:
290		-
291	513		A. The title of a vessel or motor that is not subject to any
292	514		lien or other encumbrance may be transferred in transfer -on-death
293	515		form by filing with Service Oklahoma a written notice of transfer
294	516		signed by the transferor and designating the transferee. Such
295	517		notice shall transfer ownership of the vessel or motor to the
296	518		transferee upon the death of the transferor. The notice shall
297	519		include:
	520	+	1. The identification number of the vessel or motor;
	521	+	2. The full name and address of the transferor;
	522	+	3. The full name and address of the transferee; and
298	523
299		-	1. The identification number of the vessel or motor;
300		-
301		-	2. The full name and address of the transferor;
302		-
303		-	3. The full name and address of the transferee; and
	524	+	SENATE FLOOR VERSION - HB1759 SFLR Page 11
	525	+	(Bold face denotes Committee Amendments) 1
	526	+	2
	527	+	3
	528	+	4
	529	+	5
	530	+	6
	531	+	7
	532	+	8
	533	+	9
	534	+	10
	535	+	11
	536	+	12
	537	+	13
	538	+	14
	539	+	15
	540	+	16
	541	+	17
	542	+	18
	543	+	19
	544	+	20
	545	+	21
	546	+	22
	547	+	23
	548	+	24
304	549
305	550		4. The signature of the transferor. The signature or consent
306	551		of or notice to the transferee shall not be required for any purpose
307	552		during the lifetime of the transferor.
308		-
309	553		B. A designation of the transferee may be revoked or changed at
310	554		any time prior to the death of the transferor by filing an amended
311	555		notice with Service Oklahoma.
312		-
313	556		C. To accept a certifica te of title of a vessel or motor
314	557		pursuant to notice filed under subsection A of thi s section, the
315		-	designated transferee shall execute an affidavit verifying the death ~~ENR. H. B. NO. 1759 Page 8~~
	558	+	designated transferee shall execute an affidavit verifying the death
316	559		of the transferor owner and submit it to Service Oklahoma. After
317	560		the date of the transfer of th e vessel or motor as evidenced by the
318	561		submitted affidavit and the records of Service Oklahoma, Service
319	562		Oklahoma shall issue a title reflecting the transfer of owner ship.
320		-
321	563		SECTION 3. This act shall become effective November 1, 2023.
322		-	ENR. H. B. NO. 1759 Page 9
323		-	Passed the House of Representatives the 27th day of February,
324		-	2023.
325		-
326		-
327		-
328		-
329		-	Presiding Officer of th e House
330		-	of Representatives
331		-
332		-
333		-	Passed the Senate the 19th day of April, 2023.
334		-
335		-
336		-
337		-
338		-	Presiding Officer of the Senate
339		-
340		-
341		-
342		-	OFFICE OF THE GOVERNOR
343		-	Received by the Office of the Governor this ____________________
344		-	day of ___________________, 20_______, at _______ o'clock _______ M.
345		-	By: _________________________________
346		-	Approved by the Governor of the State of Oklahoma this _____ ____
347		-	day of ___________________, 20_______, at _______ o'clock _______ M.
348		-
349		-
350		-	_________________________________
351		-	Governor of the State of O klahoma
352		-
353		-	OFFICE OF THE SECRETARY OF STATE
354		-	Received by the Office of the Secretary of State this __________
355		-	day of ___________________, 20_______, at _______ o'clock _______ M.
356		-	By: _________________________________
	564	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	565	+	April 10, 2023 - DO PASS AS AMENDED