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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1956 By: McCall
COMMITTEE SUBSTITUTE
An Act relating to revenue and taxation; enacting the
Dixon Act; amending 68 O.S. 2021, Section 238.1,
which relates to state licenses and collection of
income tax; providing for persons holding
professional license based on residency; requiring
certain statement by Oklahoma Tax C ommission;
providing for noncodification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the "Dixon Act".
SECTION 2. AMENDATORY 68 O.S. 2021, Section 238.1, is
amended to read as follows:
Section 238.1 A. It is the intent of the Legislature that the
provisions of this section operate to pr ovide for the collection of
income taxes due to the State of Oklahoma by persons holding state
licenses in a manner that will maximize flexibility for licensees to
pay any such taxes due while minimizing disruption to operations o f
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licensing entities. It is the further intent of the L egislature
that the Oklahoma Tax Commission allow at least six (6) months
notice to licensees pursuant to the provisions of subsection C of
this section prior to notification of noncompliance to a lic ensing
entity. Nothing in this section shall apply to a licensee who was
not previously required to pay income tax or has moved to the sta te
within the past year.
B. Each licensing entity shall, on a date that allows the Tax
Commission to comply with th e notice provisions of subse ction A of
this section, provide to the Tax Commission a list of all its
licensees and such identifying informat ion as may be required by the
Tax Commission. Such list and information shall be used by the Tax
Commission exclusively for the purpose of coll ection of income taxes
due to the State of Oklahoma. The provisions of any laws making
application information confidential shall not apply with respect to
information supplied to the Tax Commission pursuant to the
provisions of this section; provided, su ch information shall be
subject to the provisions of Section 205 of this title.
C. The Tax Commission shall not ify any licensee who is not in
compliance with the income tax laws of this state. Such
notification shall include:
1. A statement that the licensee's license will not be r enewed
or reissued Commission shall proceed by garn ishment to collect any
delinquent tax and to collect any penalty or interest due and owing
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as a result of a tax delinquency pursuant to Se ction 254 of this
title until the taxpayer is deemed by the Tax Com mission to be in
compliance with the income tax law s of this state;
2. The reasons that the taxpayer is considered to be out of
compliance with the income tax laws of this state, including a
statement of the amount of any tax, penalties and interest due o r a
list of the tax years for which income tax retu rns have not been
filed as required by law;
3. An explanation of the rights of the ta xpayer and the
procedures which must be followed by the taxpaye r in order to come
into compliance with the income tax l aws of this state; and
4. Such other information a s may be deemed necessary by the Tax
Commission.
D. A licensee who has entered into a nd is abiding by a payment
agreement, or who has requested reli ef as an innocent spouse wh ich
is pending or has been gr anted, shall be deemed to be in compliance
with the state income tax laws for purpo ses of this section.
E. If the Tax Commission notifie s a licensee who is not in
compliance with the income tax laws of this state as required i n
this section and such licen see does not respond to such notification
or fails to come into compliance with the income tax laws of this
state after an assessment has been made final or after the Tax
Commission determines that ev ery reasonable effort has b een made to
assist the licensee to come into compliance with the income tax laws
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of this state, the Tax Commissi on, notwithstanding the provisions of
Section 205 of this title, shall so notify the licensing entity,
which shall not renew or reissue the lice nsee's license at such time
as it is subject to renewal or thereafter and shall notify the
applicant of the reas on for nonrenewal or failure to reissue. If a
licensee who has been previously reported by the Tax Commission to a
licensing entity as being ou t of compliance comes into co mpliance,
the Tax Commission shall immediately noti fy the licensing entity. A
licensing entity shall not be held liable for any action w ith
respect to a state license pursuant to the provisions of th is
section shall proceed with the garnishment pursuant to paragraph 1
of subsection C of this section.
F. If the Oklahoma Bar Association receives notice that a
licensed attorney is not in compliance with the income tax laws of
this state as provided in t his section, the Bar Associa tion shall
begin proceedings by which the attorney may be suspended pursuant to
Rule Governing Disciplinary Pro ceedings. If suspended, the attorney
may be reinstated pursuant to reinstatement procedures as provided
in the Rules Governing Disciplinary Proc eedings.
G. The Tax Commission shall promulgate rules for the
implementation of the provisions of this section .
H. As used in this section:
1. "State license" means a license, certificate, registration,
permit, approval or ot her similar document issued by a licensing
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entity granting to an individual or business a right or privi lege to
engage in a profession, occupation or business in this state.
"State license" does not include an inactive license issued by a
licensing entity which does not grant an ind ividual the right to
engage in a profession, occupation or business in this state; and
2. "Licensing entity" means a bureau, department, division,
board, agency, commission or other entity of this state or of a
municipality in this state that issues a state license; and
3. "Reissue" means to issue a state license to an individua l
who has been in possession of an equivalent license issued by the
same licensing entity in the previous twelve (12) months .
SECTION 3. This act shall become effective November 1, 2023.
59-1-7448 LRB 02/14/23