An Act
ENROLLED HOUSE
BILL NO. 2289 By: Pfeiffer of the House
and
Rader of the Senate
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 221, 225, 226, 227, as amended by
Section 1, Chapter 114, O.S. L. 2022, 231, 255.2,
1364, 1364.2, 2373, 2375, 2385.3, and 3131 (68 O.S.
Supp. 2022, Section 227), which relate to state and
local tax administration; modifying provisions
related to assessment of additional taxes; modifying
method for computation of certain protest period;
modifying method for computing date as of which
assessments of additional tax considered final;
providing for confidential nature of certain
hearings; providing for rule regarding attendance of
authorized persons at hearing; requir ing filing of
confidential information and prescribing procedures
related thereto; modifying method for computation of
time period related to appeal procedures from final
order of Oklahoma Tax Commission; modifying method
for computation of time period related to claim for
refund process; requiring filing of tax warrants by
electronic means; modifying references to include
Oklahoma Medical Marijuana A uthority; authorizing
certain persons to obtain sales tax permits; imposing
age requirement; providing exception; modifying
required documentation to be provided by certain
vendors with respect to spec ial events; modifying
provisions related to autho rized deduction for
vendors; modifying provisions related to income tax
refunds; prescribing time limit for claim for refund
of income taxes; prescribing method for computation
of time period; prescribing methods for computing
refund amounts; modifying procedures relate d to
payment of income tax; requiring payment with income
tax return; providing for penalty with respect to ENR. H. B. NO. 2289 Page 2
failure to provide reconciliation reports with
respect to withholding tax; providing for collection
of penalty amount; modifying provisions related to
sales of property for delinquent ad valorem tax;
requiring notification by county treasurer; requiring
Oklahoma Tax Commission to provide information to
county treasurer; requiring remittance of certain tax
amounts; providing for disposition of proceeds after
remittance; providing an effective date; and
declaring an emergency.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 221, is
amended to read as follo ws:
Section 221. A. If any taxpayer shall fail t o make any report
or return as required by any state tax law, the Okla homa Tax
Commission, from any information in its possession or obtainable by
it, may determine the correct amou nt of tax for the taxable period.
If a report or return has been filed, th e Tax Commission shall
examine such report or return and make such aud it or investigation
as it may deem necessary. If, in cases where no report or return
has been filed, the Tax C ommission determines that there is a tax
due for the taxable period, or if, in cases where a repo rt or return
has been filed, the Tax Commission shall determine that the tax
disclosed by such re port or return is less than the tax disclosed by
its examination, it shall in writing p ropose the assessment of taxes
or additional taxes, as the case may be, and shall mail a cop y of
the proposed assessment to the taxpayer at the taxpa yer's last-known
address. Proposed assessments made in the name of the "Oklahoma Tax
Commission" by its authorized agents shall be considered as the
action of the Tax Commission.
B. Any assessment, correction or adjustment m ade as a result of
an office audit shall be presum ed to be the result of an audit of
the report or return only, and such office audit sha ll not be deemed
a verification of any item in the report or return unle ss the item
shall have been made the subject of a hearing before the Tax
Commission, and the corr ectness and amount of such item determined ENR. H. B. NO. 2289 Page 3
at such hearing; and such office audit shall not preclude the Tax
Commission from subsequently making further adjust ment, correction
or assessment as a result of a field audit of the books and records
of the taxpayer, wherever located, or upon disclosures from any
source other than the return. In c ases where no report or return
has been filed, the assessment of the tax on any information
available shall in no event preclude the assessment at an y time on
subsequently disclosed information.
C. Within sixty (60) days after the mailing of date indicated
on the aforesaid proposed assessment, the taxpay er may file with the
Tax Commission a written protest under oath, si gned by the taxpayer
or the taxpayer's duly authorized agent, setting out therein:
1. A statement of the amount of deficiency as d etermined by the
Tax Commission, the nature of the tax an d the amount thereof in
controversy;
2. A clear and concise assignment of each error alleged to ha ve
been committed by the Tax Commission;
3. The argument and legal authority upon which each assign ment
of error is made; provided, that the applicant shall not be bound or
restricted in such hear ing, or on appeal, to the arguments and legal
authorities contained and cited i n the application;
4. A statement of relief sought by the taxpayer; and
5. A verification by the taxpayer or the taxpayer's duly
authorized agent that the statements and facts contained therein are
true.
D. If in such written protest the taxpayer shall request an
oral hearing, the Tax Commission shall grant such hearing, and
shall, by written notice, advise the taxpayer of a date, which shall
not be less than ten (10) days fro m the date of mailing of such
written notice, when such tax payer may appear bef ore the Tax
Commission and present arguments and evidence, oral or written, in
support of the protest. Hearings shall be held as soon as
practicable. In the event an oral hear ing is not requested, the Tax
Commission shall proceed with out further notice t o examine into the
merits of the protest and enter an order in accordance with i ts
findings. Upon request of any taxpayer and upon prope r showing that
the principle of law invo lved in the assessment of any tax is
already pending before the courts for judicial determination, the ENR. H. B. NO. 2289 Page 4
taxpayer, upon agreement to abide by the decision of the court, may
pay the tax so assessed under protest and suc h protest shall be
resolved in accordanc e with the agreement to abide.
E. If the taxpayer fails to file a written protest within the
sixty-day period herein provided for or within the period as
extended by the Tax Commission, or if the taxpayer fails to f ile the
notice required by Section 226 o f this title within thirty (30) days
from the date of mailing of an indicated on the proposed assessment,
then the proposed assessment, without further action of the Tax
Commission, shall become final and absolute . A taxpayer who fails
to file a protest to an assessment of taxes within the time period
prescribed by this section may, within one (1) year of the date the
assessment becomes final, request the Tax Commissi on to adjust or
abate the assessment if the taxpay er can demonstrate, by a
preponderance of the evidence, that the assessment or some portion
thereof is clearly erroneous. If the Tax Commission determines that
the proper showing has been made, the assessm ent or portion thereof
determined to be clearly er roneous shall be deemed not to have
become final and absolute. No hearing to adjust or abate a cle arly
erroneous assessment may be granted after the Tax Commission 's
denial of such a request. An order of the Tax Commission denying a
taxpayer's request to adjust or abate an assessment alleged to be
clearly erroneous is not an appealable order under Sec tion 225 of
this title. No proceeding instituted by the Tax Commission to
collect a tax liability may be s tayed because of a request made by a
taxpayer to adjust or abate an assessment alleged to be clearly
erroneous.
F. The Tax Commission may in its dis cretion extend the t ime for
filing a protest for any period of time not to exceed an additional
ninety (90) days. Any extension granted shall not extend the period
of time within which the notice re quired by Section 226 of this
title may be filed.
G. Within a reasonable tim e after the hearing herein provided
for, the Tax Commission shall make and enter an ord er in writing in
which it shall set forth the disp osition made of the protest and a
copy of such order shall forthwith be mailed to the taxpayer. Th e
order shall contain findings of fact and conclusions of law. After
removing the identity of the taxpayer , the Tax Commission shall make
the order available for public inspection and shall publish those
orders the Tax Commission deems to be of precedenti al value. The
taxpayer may within the time and in the manner provided for by
Section 225 of this title, ap peal to the Supreme Court, but in the ENR. H. B. NO. 2289 Page 5
event the taxpayer fails to so proceed, the order shal l within
thirty (30) days from the date a certified copy thereof is mailed to
the taxpayer, become final. The provisions of Section 226 of this
title shall not apply where a proposed assessment or an assessment
of taxes has been permitted to become final.
H. In all instances where the proposed assessment or th e
assessment of taxes or additional taxes has been permitted to become
final, a certified copy of the asses sment may be filed in the office
of the county clerk of any county in this state, and upon b eing so
filed, the county clerk shall enter same upon the judgment docket in
the same manner as provided for in connection with judgments of
district courts. When an assessment is so filed and docketed, it
shall have the same force and be subject to the s ame law as a
judgment of the district court, and accordin gly it shall constit ute
a lien on any real estate of the taxpayer located in the county
wherein filed; and execution may issue and proceedings in aid of
execution may be had the same as on judgments of district courts.
Such lien is hereby released and ext inguished upon the p ayment of
such assessment, or, except as otherwise provided herein, upon the
expiration of ten (10) years after the date upon which the
assessment was filed in the office of the c ounty clerk; provided,
the Tax Commission may, prior to t he release and extin guishment of
such lien, refile the assessment one time in the office of the
county clerk. An assessment so refiled shall continue the li en
until payment of the assessment, or upo n the expiration of ten (10)
years after the date upon wh ich the assessment w as refiled in the
office of the county clerk. The remedies provided in this
subsection shall be in addition to other remedies provided b y law.
All active liens evidenced by an a ssessment filed with a county
clerk's office prior to Nov ember 1, 1989, shall be released and
extinguished if the assessment is not refiled prior to November 1,
2001.
I. In order to make more definite the intentio n of the
Legislature in connection with th e applicability or lack of
applicability of the refund pr ovisions of the tax statutes to those
treating with proposed assessments and assessments that have become
final, the Legislature being cognizant of the fact that such intent
has been questioned, it i s declared to be the intent of the
Legislature that the r efund provisions sha ll be without application
to taxes where the amount thereof has been determined by an
assessment, other than an assessment designated as an "office
audit", that has become final.
ENR. H. B. NO. 2289 Page 6
SECTION 2. AMENDATORY 68 O.S. 2021, Section 225, is
amended to read as follows:
Section 225. A. Any taxpayer aggrieved by any order, rul ing,
or finding of the Oklahoma Tax Commission directly affecting the
taxpayer or aggrieved by a final order of the Tax Commission issued
pursuant to subsection G of Section 221 of this title may appeal
therefrom directly to the Supreme Court of Oklahoma. Provided, any
taxpayer appealing from a final order of the Tax Commission
assessing a tax or an additional tax or denial of a claim for refund
may opt to file an appeal in district court as p rovided in
subsection D of this section.
B. Within thirty (30) days after the date of mailing to the
taxpayer of the order, ruling, or finding complained o f, the
taxpayer desiring to appeal shall:
1. File a petition in error in the office of the Clerk of the
Supreme Court; and
2. Request that the Tax Commission prep are for filing with the
Supreme Court, within thirty (30) days, the record of the appeal,
certified by the Secretary of the Tax Commission, and consi sting of
any citations, findings, judgments , motions, orders, pleadings and
rulings, together with a transc ript of all evidence introduced at
any hearing relative thereto, or such portion of such cit ations,
findings, judgments, motions, orders, pleadings, rulings, and
evidence as the appealing part ies and the Tax Commission may agree
to be sufficient to present fully to the Court the questions
involved.
C. Upon request of the taxpayer, the Tax Commis sion shall
furnish the taxpayer a copy of the proceedings had in connection
with the matter complain ed of.
D. In lieu of an appeal to the Supreme Court, any taxpay er
aggrieved by a final order of the Tax Commission assessing a tax or
an additional tax or denial of a claim for refund may opt to file an
appeal for a trial de novo in the district court of Oklahoma County
or the county in which the taxpayer resides. If the amount in
dispute exceeds Ten Thousand Dollars ($10,000.00), the appeal shall
be heard by a district or associate district judge sitting without a
jury. If the amount in dispute does not exceed Ten Thousand Dollars
($10,000.00), the appeal may be hea rd by a special judge sitting
without a jury. An order resulting from a trial provided purs uant ENR. H. B. NO. 2289 Page 7
to this subsection shall be appealable directly to t he Supreme Court
of Oklahoma by either part y. Such appeal shall be taken in the
manner and time provided b y law for appeal to the Supreme Court from
the district court in civil actions. Upon the fi ling of an appeal,
the order of the district court shall be superseded and ne ither
party shall be required to give bond. The provisions of this
subsection shall be applicable for tax periods beginning after the
effective date of this act. Provided, if th e order applies to
multiple tax periods which begin befor e and after the effe ctive date
of this act, the appeal provided by this subsection shall be
available to the aggrieved taxpayer.
E. If the appeal is from an order of the Tax Commission or a
district court denying a refund of taxes previously paid and if u pon
final determination of the appeal, the order denying the refund is
reversed or modified, the taxes prev iously paid, together with
interest thereon from the date of the filing of the petition in
error at the rate provided in subsection A of Section 217 of this
title, shall be refunded to the tax payer by the Tax Commission.
F. Such refunds and interest there on shall be paid by the Tax
Commission out of monies in the Tax Commission clearing account from
subsequent collections from the same source as the o riginal tax
assessment, provided that in th e event there are insufficient funds
for refunds from subsequent collections from the same source, the
refund shall be paid by the Tax Commission from monie s appropriated
by the Legislature to the special refund r eserve account for s uch
purposes as hereinafter provided. There is hereby created within
the official depository of the State Treasury an agency special
account for the Tax Commission for the purpos e of making such
refunds as may be required under this se ction, not otherwise
provided. This accoun t shall consist of monies appropriated by the
Legislature for the purpose of making refunds under this section.
G. If the appeal be from an order, judgment , finding, or ruling
of the Tax Commission other than one assessing a tax and from which
a right of appeal is not otherwise specifically provided for in this
article the Uniform Tax Procedure Code, any aggrieved taxpayer may
appeal from that order, judgmen t, finding, or ruling as provided in
this section. The filing of such an app eal shall supersede the
effect of such order, judgment, ruling, or finding of the Tax
Commission.
H. This section shall be construed to provide to the taxpayer a
legal remedy by action at law in any case where a tax, or the method ENR. H. B. NO. 2289 Page 8
of collection or enforce ment thereof, or any o rder, ruling, finding,
or judgment of the Tax Commission is compl ained of, or is sought to
be enjoined in any action in any court of this state or the Unite d
States of America.
I. All hearings held in proceedings pursuant to this sec tion
shall be confidential and shall be held in closed court without
admittance of any person other than interested parties, their
counsel, and employees of the Oklahoma Tax Comm ission and its
counsel. Confidential information filed wi th or submitted to t he
Supreme Court or district court in conjunction with any proceeding
pursuant to this section shall not constitute a public record and
shall be sealed by the court. Access to confidential information
shall be strictly controlled.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 226, is
amended to read as follows:
Section 226. (a) In addition to the right to a protest of a
proposed assessment as authorized by Section 221 of this title, a
right of action is hereby created to afford a remedy to a taxpayer
aggrieved by the provisions of this articl e or of any other state
tax law, or who resists the collection of or the enforcement of the
rules or regulations of the Tax Commission relating to the
collection of any stat e tax; however, such remedy shall be limited
as prescribed by subsection (c) of thi s section.
(b) Within thirty (30) days from the date of mailing to the
taxpayer of indicated on an assessment for taxes or additional taxes
pursuant to Section 221 of this title by the Tax Com mission, any
such taxpayer shall pay the tax to the Tax Commiss ion, and at the
time of making such payment shall give notice to the Tax Commission
of his intention to file su it for recovery of such tax. The
taxpayer shall not be requir ed to file suit with in such thirty-day
period in order to prosecute an action as au thorized by this
section; however, failure to file such suit within one (1) year from
the date of mailing of the assessment shall result in the assessment
becoming final and absolute. If the taxpayer prevails the Tax
Commission shall, by cash voucher draw n by the Tax Commission upon
its official depository clearing account or special refund reserve
account with the State Treasurer, refund to the taxpayer the amount
of tax determined not to be d ue pursuant to the final judgm ent of
the court having jurisdict ion, together with inter est on such amount
at the rate applicable to money judgments in civil cases from the
date of payment by the taxpayer to the date of the refund by the Tax ENR. H. B. NO. 2289 Page 9
Commission. The refunds paid shall be payab le as provided in
Section 225(d). If the taxpayer prevai ls and the court determines
that the position of the Tax Commission in the proceeding w as not
substantially justified, the court shall award the taxpa yer a
judgment for reasonable attorney fees, reas onable expenses of expert
witnesses in connection with th e proceeding and reasonable costs of
any study, analysis, engineering report, test or p roject which is
found by the court to be necessary for the prep aration of the
taxpayer's case.
(c) This section shall afford a legal remedy and right of
action in any state or federal court having jurisdiction of the
parties and the subject matter. It sh all be construed to provide a
legal remedy in the state or fede ral courts by action at law only in
cases where the taxes complained of are claime d to be an unlawful
burden on interstate commerce, or the collection thereof violative
of any Congressional Act or provision of the Federal Constitution,
or in cases where ju risdiction is vested in any of the Courts of the
United States. In all actions br ought hereunder service of process
upon the Chairman of the Tax Commission shall be sufficient service,
and the Tax Commission shall be the sole, necessary and proper party
defendant in any such suit, and the State Treasure r shall not be a
necessary or proper party thereto.
(d) Upon request of any taxpayer and upon proper showing that
the principle of law involved in the assessment of any tax is
already pending before the cou rts for judicial determination, the
taxpayer, upon agreement to abide by the decis ion of the court, may
pay the tax so assessed under protest, but need not file a suit.
SECTION 4. AMENDATORY 68 O.S. 2021, Sec tion 227, as
amended by Section 1, Chapter 114, O.S.L. 2022 (68 O.S. Supp. 2022,
Section 227), is amended to read as follows:
Section 227. A. Except as provided in subsection B of Section
1361.2 and subsection D of Section 1364.1 of this title, any
taxpayer who has paid to the State of Oklahoma, through error of
fact, or computation, or misinterpretation of law, any tax collected
by the Tax Commission may, as hereinafter provided, be refunded the
amount of such tax so erroneously paid, without interest.
B. 1. Except as otherwise provided by paragraph 2 of this
subsection, any taxpayer who has so paid any such tax may, within
three (3) years from the date of payment thereof file with the Tax
Commission a verified claim for refund of such tax so erroneously ENR. H. B. NO. 2289 Page 10
paid. The Tax Commission may accept an amended withholding tax o r
other report or return as a verifi ed claim for refund if the amended
report or return establishes a liability less than the original
report or return previously filed.
2. Upon August 26, 2016, with respect to the sales tax imposed
by Section 1354 of thi s title and with respect to the use tax
imposed by Section 1402 of this title, any taxpayer who has so paid
such sales or use tax may, within two (2) years from the date of
payment thereof file with the Tax Commission a verified claim for
refund of such tax so erroneously paid. The Tax Commission may
accept an amended sales or use tax report or return as a verified
claim for refund if the amended report or return establishes a
liability less than the original report or return previously filed.
C. The claim so filed with the Tax Commission, except for an
amended report or return, shall specify the name of the taxpayer,
the time when and period for which the tax was paid, the nature and
kind of tax so paid, the amount of the tax which the taxpayer
claimed was erroneously paid, the grounds upon which a refund is
sought, and such other information or data relative to such payment
as may be necessary to an adjustment thereof by the Tax Commission.
It shall be the duty of the Commission to determine what amount of
refund, if any, is due as soon as practicable after such claim has
been filed and advise the taxpayer about the correctness of his
claim and the claim for refund shall be approved or denied by
written notice to the taxpayer.
D. If the claim for refund is denied, the taxpayer may file a
demand for hearing with the Commission. The demand for hearing must
be filed on or before the sixtieth day after the date indicated on
the notice of denial was mailed. If the taxpayer fails to file a
demand for hearing, the claim fo r refund shall be barred.
E. Upon the taxpayer's timely filing of a demand for hearing,
the Commission shall set a date for hearing upon the claim for
refund which date shall not be later than sixty (60) days from the
date the demand for hearing was maile d. The taxpayer shall be
notified of the time and place of the hearing. The hearing may be
held after the sixty-day period provided by this subsection upon
agreement of the taxpayer.
F. The provisions of this section shall not apply:
ENR. H. B. NO. 2289 Page 11
1. To refunds of income tax erroneously paid, refun ds of which
tax shall be payable out of the income tax adjust ment fund as
provided by law;
2. To estate tax because the payment of such tax is covered by
an order of the Tax Commission and the estate and interested parties
are given notice that Commission 's position and computation of the
tax will become final unle ss they protest and resist the payment
thereof as provided by statute; nor
3. In any case where the tax was paid after an assessment
thereof was made by the Tax Commission which assessment becam e final
under the law.
SECTION 5. AMENDATORY 68 O.S. 2021, Section 2 31, is
amended to read as follows:
Section 231. A. If any tax, impose d or levied by any state tax
law, or any portion of such tax, is not paid before the same becomes
delinquent, the Oklahoma Tax Commission may immediately issue a
warrant under its offi cial seal. A tax warrant directed to the
sheriff of any county of the s tate shall command the sheriff to levy
upon and sell without any appraise ment or valuation any real or
personal property of the taxpayer found within the county for the
payment of the delinquent tax, interest and penalties, and the cost
of executing the warrant, and to return such warrant to the Tax
Commission, and to pay to it any monies collected by virtue thereof,
by a time to be therein specified, not more than sixty (60) days
from the date of the warrant.
B. The Tax Commission shall, immediately upon issuance of the
warrant, file with the county clerk of the county for whi ch the
warrant was issued a copy thereof, and thereupon the county clerk
shall record and index such warrant i n the same manner as judgments
using the name of the taxpayer named in th e warrant, a short name
for the tax, the amount of the tax or portion the reof, and interest
and penalties for which the warrant was issued, and the date and
time when such copy was fi led. The Tax Commission may shall file
the warrant in the appropriate of fice of the county clerk by
electronic means. The filing of the warrant in the office of the
county clerk of the county, shall constitute and be evidence and
notice of the state's lien upon any interest in any real property of
the taxpayer against whom su ch warrant is issued, until such tax,
penalty and interest accruing thereon is paid. Such lien shall be
in addition to any and all other liens existing in favor of the ENR. H. B. NO. 2289 Page 12
state to secure the payment of the unpaid tax, penalty, interest and
costs, and such lien shall be paramount and superior to all other
liens of whatsoever kind or cha racter, attaching to any of said
property subsequent to the date and time of such filing and shall be
in addition to any lien provided by Section 234 of this title. The
Tax Commission shall, immediately upon issuance of the warrant,
mail, by regular mail, a copy of the warrant to the last-known
address of the delinquent taxpayer. Such lien is hereby releas ed
and extinguished upon the payment of such tax, penalty, interest and
costs, or, except as otherwise provided herein, upon the expiration
of ten (10) years after the date upon which the warrant was filed
with the county clerk; provided, the Tax Commissio n may, prior to
the release and extinguishment of such lien, refile the w arrant in
the office of the county clerk. A warrant so refiled shall continue
the lien until payment of the tax, penalty, interest and costs, or
upon the expiration of ten (10) years after the date upon which the
warrant was refiled and indexed by the cou nty clerk. All active
liens evidenced by a warrant filed with a county clerk 's office
prior to November 1, 1989, shall be released and extinguished if the
warrant is not refiled prio r to November 1, 2001.
C. Except as otherwise provided in subsection D o f this
section, the Tax Commission shall forward the filed warrant to the
sheriff of the county in which the warrant was filed. Upon receipt
of the warrant, such sheriff shall there upon proceed to execute the
tax warrant in the same manner prescribed by l aw for executions
against property upon judgment of a court of record; and such
sheriff shall execute and deliver to the purchaser a bill of sale or
deed, as the case may be.
D. The Tax Commission shall not direct or forward to the
sheriff of any county a ny tax warrant issued pursuant to collection
by the Tax Commission. The Tax Co mmission shall promulgate rules
pertaining to tax warrants issued under this section.
E. The Tax Commission may levy upon and sell without any
appraisement or valuation any rea l or personal property of any
taxpayer identified by a filed tax warrant. The Tax Commission may
execute the tax warrant in the same manner prescribed by law for
executions against property upon judgment of a court of record and
may execute and deliver to the purchaser a bill of sale or deed, as
the case may be.
F. Any purchaser, o ther than the State of Oklahoma, shall be
entitled, upon application to the court having jurisdictio n of the ENR. H. B. NO. 2289 Page 13
property, to have confirmation, the procedure for which shall be the
same as is now provided for the confirmation of a sale of property
under execution, of such sale prior to the issuance of a bill of
sale or deed. The State of Oklahoma shall be authorized to make
bids at any such sale to the amount of tax, penalty and co sts
accrued. In the event such bid is successful, the sheriff shall
issue proper muniment of title to the Tax Commission which shall
hold such title for the use and benefit of th e State of Oklahoma;
and any taxpayer, or transferee of such taxpayer, shall have the
right, at any time within one (1) year from the date of such sale,
to redeem such property, upon the payment of all taxes, penalties
and costs accrued to the date of rede mption. Such applicant shall
not be entitled to a credit upon such taxes, pe nalties and costs, by
reason of revenue that might have accrued to the State of Oklahoma
or other purchaser under sale, prior to such redemption. After the
expiration of the peri od of redemption herein provided, the Tax
Commission acting for the State of Oklahoma may sell such property
at public auction, upon giving thirty (30) days ' notice, published
in a newspaper of general circulation in the county where such
property is located, to the highest and best bidder for cash; and
upon a sale had thereof, or when a redemption is made, the Tax
Commission, for and on behalf of the State o f Oklahoma, shall issue
its bill of sale or quit claim deed, as the case may be, to the
successful bidder or to the redemptioner. Such muniment of title
shall be executed by th e Tax Commission, and attested by its
secretary, with the seal of the Tax Commi ssion affixed. The sheriff
shall be entitled to the same fee for services in executing the
warrant, as the sheriff would be entitled to receive if he or she
were executing an execution issued by the court clerk of the county
upon a judgment of a court of record.
G. If any sheriff shall refuse or neglect to levy upon and sell
any real or personal prope rty of any taxpayer as directed by any
warrant issued by the Tax Commission, o r shall refuse or neglect, on
demand, to pay over to the Tax Commission, its ag ents or attorneys,
all monies collected or received under any warrant issued by the Tax
Commission, at any time after collecting or receiving the same, such
sheriff or other off icer shall, upon motion of the Tax Commission in
court, and after thirty (30) d ays' notice thereof, in writing, be
amerced in the amount for which any such warrant was issued by the
Tax Commission, together with all penalties and costs and with an
additional penalty of ten percent (10%) thereon, to and for the use
of the State of Oklahoma. Every surety of any sheriff or officer
shall be made a party to the judgment rendered as af oresaid against
the sheriff or other officer. ENR. H. B. NO. 2289 Page 14
H. The Tax Commission may expen d funds from the Oklahoma Tax
Commission Fund in the State Treasury to reimburs e the sheriff for
travel and administrative costs actually and necessarily incurred
while performing duties required b y this section. Such costs shall
be assessed against the d elinquent taxpayer, shall be added to the
amount necessary to satisfy the tax w arrant, and upon collection
thereof shall be deposited in the Oklahoma Tax Commission Fund.
I. A tax warrant issued a nd filed under authority of this
section shall:
1. Constitute and be evidence and notice of the state 's lien
upon real property; and
2. Not be subject to the provisions of any dormancy statute
which would limit the enforceability, effect or operation of the
lien, except as otherwise provided in this section.
J. After July 1, 1993, the Tax Commission shall not issue any
certificates of indebtedness pursuant to the provisions of Section
230 of this title.
K. When a tax warrant has been issued and filed as provided in
this section, the Tax Commission shall have al l of the remedies and
may take all of the proceedings thereon for the collectio n thereof
which may be had or taken upon a judgment of the district court.
SECTION 6. AMENDATORY 68 O.S. 2021, Section 255.2, is
amended to read as fol lows:
Section 255.2 As provided in Section 426 of Title 63 of the
Oklahoma Statutes, the State Department of Health Oklahoma Medical
Marijuana Authority and the Oklahoma Tax Commission shall enter into
a contract whereby the Ta x Commission shall have authority to
assess, collect and enforce the seven percent (7%) tax on retail
medical marijuana sales and any penalties and interest thereon.
Such assessment, collection and enforcement authority shal l apply to
any tax and any pena lty or interest liability on retail medical
marijuana sales existing at the time of contracting. The contract
shall provide for the a ssessment, collection and enforcement of the
tax on retail medical marijuana sales in the s ame manner as the
administration, collection and enforcement of any tax payable by any
taxpayer subject to taxation under any state tax law. For providing
such collection assistance, the Tax Commission shall charge the ENR. H. B. NO. 2289 Page 15
State Department of Health Oklahoma Medical Marijuana Authority a
fee of one and five-tenths percent (1.5%) of the gross collection
proceeds. All funds retained by the Tax Commission for the
collection services shall be deposited in the Tax Commission
Reimbursement Fund in the State Treasur y.
SECTION 7. AMENDATORY 68 O.S. 2021, Section 1364, is
amended to read as follows:
Section 1364. Permits to do busine ss.
A. Every person desiring to engage in a business within this
state who would be designated as a Group One or Group Three vendor,
pursuant to Section 1363 of this tit le, shall be required to secure
from the Oklahoma Tax Commission every three (3) years a written
permit for a fee of Twenty Dollars ($20.00) prior to engaging in
such business in this state. Each such person shall file with the
Tax Commission an applicati on for a permit to engage in or transact
business in this state, setting forth such in formation as the Tax
Commission may require. The application shall be signed by the
owner of the business or r epresentative of the business entity and
as a natural person, and, in the case of a corporation, as a legally
constituted officer thereof. To obtain a sales tax permit, an
individual or sole proprietor must be at least eighteen (18) years
of age. A parent or legal guardian may apply for a permit on behalf
of an individual or sole p roprietor who is not at least eighteen
(18) years of age, provided t he parent or legal guardian will be
considered the authorized user responsible for remitting state tax.
B. Upon receipt of an initial application, the Tax Commission
may issue a probation ary permit effective for six (6) months which
will automatically re new for an additiona l thirty (30) months unless
the applicant receives written notification of the refusal of t he
Commission to renew the permit. If the applicant recei ves a notice
of refusal, the applicant may request a hearing to show cause why
the permit should be renewed . Upon receipt of a request for a
hearing, the Tax Commiss ion shall set the matter for hea ring and
give ten (10) days' notice in writing of the time and place of the
hearing. At the hearing, the applicant shall set forth the
qualifications of the applica nt for a permit and proof of compliance
with all state tax laws.
C. Holders of a probation ary permit as provided in subsection B
of this section shall not be permitted to present the permit to ENR. H. B. NO. 2289 Page 16
obtain a commercial license plate for thei r motor vehicle as
provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
D. Upon verification that the applicant is a Group Three
vendor, the Tax Commission may require such app licant to furnish a
surety bond or other security as the Commission may deem necessary
to secure payment of taxes under this article, prior to issuance of
a permit for the place of business set forth in the application for
permit. Provided, the Tax Commis sion is hereby authorized to set
guidelines, by adoption of regulat ions, for the issuan ce of sales
tax permits. Pursuant to said guidelines the Tax Commission may
refuse to issue permits to any Group Three vendors, or any class of
vendors included in the whole classification of Group Three vendors,
if the Tax Commission determines that it i s likely this state will
lose tax revenue due to the difficulty of enforcing this article f or
any reasons stated in subsection (T) of Section 1354 of this title.
E. A separate permit for each additional place of business to
be operated must be obtained from the Tax Commission for a fee of
Ten Dollars ($10.00). Such permit shall be good for a p eriod of
three (3) years. The Tax Commission shall grant and issue to each
applicant a separate permit for each place of business in this
state, upon proper application therefor and verification thereof by
the Tax Commission.
F. A permit is not assignabl e and shall be valid only for the
person in whose name it is issued and for th e transaction of
business at the place designated therein. The per mit shall at all
times be conspicuously displayed at the place of business for which
issued in a position where it can be easily seen. The permit shall
be in addition to all other permits required by the laws of this
state. Provided, if the location of t he business is chang ed, such
person shall file with the Tax Commission an application for a
permit to engage in or transact business at the new location. Upon
issuance of the permit to the new location of such business, no
additional permit fee shall be d ue until the expirat ion of the
permit issued to the previous location of such business.
G. It shall be unlawfu l for any person coming within the class
designated as Group One or the class designated as Group Three to
engage in or transact a business of re selling tangible per sonal
property or services within this state unless a written permit or
permits shall have been issued to such person. Any person who
engages in a business subject to t he provisions of this section
without a permit or permits, or after a permit has been suspended, ENR. H. B. NO. 2289 Page 17
upon conviction, shall be guilty of a misdemeanor punishable by a
fine of not more than One Thousand Dollars ($1,000.00). Any person
convicted of a second or subsequent violation hereof shall be guilty
of a felony and punisha ble by a fine of not more than Five Thousand
Dollars ($5,000.00) or by a term of imprisonment in the State
Penitentiary for not more than two (2) years, or both such fin e and
imprisonment.
H. Any person operating under a permit as provided in this
article shall, upon discontinuance of business by sale or otherwise,
return such permit to the Tax Commission for canc ellation, together
with a remittance for any unpaid or acc rued taxes. Failure to
surrender a permit and pay any and all accrued taxes will be
sufficient cause for t he Tax Commission to refuse to issue a permit
subsequently to such person to engage in or t ransact any other
business in this state. In the case of a sale of any busine ss, the
tax shall be deemed to be due on the sale of the fixtures a nd
equipment, and the Tax Commission shall not issue a permit to
continue or conduct the business to the purcha ser until all tax
claims due the State of Oklahoma have be en settled.
I. All permits issued under the provisions of this article
shall expire three (3) years from t he date of issuance at the close
of business at each place or location of the business with in this
state. No refund of the fee shall be made if the business is
terminated prior to the expiration of the permit.
J. Whenever a holder of a permit fails to co mply with any
provisions of this article, the Tax Commission, after giving ten
(10) days' notice in writing of the time and place of hearing to
show cause why the permit should not be revoked, may revoke or
suspend the permit, the permi t to be renewed upon removal of cause
or causes of revocation or suspension. However, if a holder of a
permit becomes delinquent for a period of three (3) months or mor e
in reporting or paying of any tax due under this article, any duly
authorized agent of the Tax Commission may remove the permit from
the taxpayer's premises and it shall be returned or renewed onl y
upon the filing of proper reports and payment of all tax es due under
this article.
K. Permits are not required of persons coming within the
classification designa ted as Group Two. The Oklahoma Tax Commission
shall issue a limited permit to Group Five v endors. The permit
shall be in such form as the Tax Commission may prescribe.
ENR. H. B. NO. 2289 Page 18
L. Nothing in this article shall be construed to allow a permit
holder to purchase, t ax exempt, anything for resale that the permit
holder is not regularly in the business of r eselling.
M. All monies received pursuant to issuance of such permits to
do business shall be paid to the State Treasurer and placed to the
credit of the General Re venue Fund of the State Treasury.
N. Notwithstanding the provisions of Section 205 of this title,
the Oklahoma Tax Commission is authorized to relea se the following
information contained in the Master Sales and Use Tax File to
vendors:
1. Permit number;
2. Name in which permit is issued;
3. Name of business operation if different from owners hip
(DBA);
4. Mailing address;
5. Business address;
6. Business class or St andard Industrial Code (SIC); and
7. Effective date and expiration or cancellation date of
permit.
Release of such information shall be limited to tax remitters
for the express purpose of determining the validity of sales permits
presented as evidence of purchasers' sales tax resale status under
this Code.
The provisions of this subsection shall be strictly interpreted
and shall not be construed as permitting the disclosure of an y other
information contained in the records and files of the Tax Commission
relating to sales tax or to any other taxes.
This information may be provided on a subscription basis, with
periodic updates, and sufficient fee charged, not to exceed One
Hundred Fifty Dollars ($150.00) per year, to offset the
administrative costs of provi ding the list. All revenue received by
the Oklahoma Tax Commission from such fees shall be deposited to the
credit of the Oklahoma Tax Commission Revolving Fund. No liability ENR. H. B. NO. 2289 Page 19
whatsoever, civil or criminal, shall attach to any member o f the Tax
Commission or any employee thereof for any error or omission in the
disclosure of information pur suant to this subsection.
O. If the Tax Commission enters into the Streamlined Sales and
Use Tax Agreement under Section 1354.18 of this title, the Tax
Commission is authorized to participate in its online sales and use
tax registration system and shall n ot require the payment of the
registration fees or other charges provided in this section f rom a
vendor who registers within the online system if the vendor has no
legal requirement to register.
SECTION 8. AMENDATORY 68 O.S. 2021, Section 1364.2, is
amended to read as follows:
Section 1364.2 A. Promoters or organizers of special events
shall submit an application for a speci al event permit to t he
Oklahoma Tax Commission at lea st twenty (20) days prior to the
special event. The application shall be accompanied by a fee of
Fifty Dollars ($50.00). The application shall include the location
and dates of the special event, expec ted number of vendor s, and any
other information that may be required by the Tax Commission . A
separate permit shall be required for each special event and must be
prominently displayed. Multiple events held at the same location
during the calendar year may be included in o ne application.
B. All monies received from such fees shall be paid to the
State Treasurer and placed to the credit of the General Revenue Fund
of the State Treasurer.
C. Promoters or organizers shall provide vendor letters or
forms to special event vend ors for reporting sales tax collections
and any other information that may be required by the Tax
Commission.
D. Unless otherwise provided in this section, special event
vendors shall collect sales tax from purchasers of tangible perso nal
property and services taxable under Section 1350 et seq. of this
title and shall remit the tax, along with a sales tax report, to the
promoter or organizer.
E. Within fifteen (15) days followin g the conclusion of the
special event, the organizer or pr omoter shall forward all reports
and payments to the Tax Commission alo ng with a completed sales tax
report. If not filed on or before the fifteenth day, the tax shall ENR. H. B. NO. 2289 Page 20
be delinquent from such date. Reports timely mailed shall be
considered timely filed. If a report is not timely filed, interest
shall be charged from the da te the report should have been filed
until the report is actually filed.
F. At least ten (10) days prior to the start o f the special
event, the organizer or promoter shall submit a lis t of all vendors
registered to attend the event . Within fifteen (15) days following
the conclusion of the special event, the organizer or promoter shall
also submit a list of vendors at who actually attended each event
that hold a valid sales tax per mit issued under Section 1364 of this
title. The Each list shall include the vendor 's name, address,
telephone number, email address and sales tax permit number taxpayer
identification number. If a vendor holds an Oklahoma sales tax
permit issued under Section 1364 of this title, the permit numbers
shall also be included .
G. For the purposes of c ompensating the promoter or organizer
in keeping sales tax records, filing reports and r emitting the tax
when due, a promoter or organizer shall be allowed a deducti on of
the tax due as provided in Section 1367.1 of this title.
H. Promoters and organizers shall only be liable for failure to
report and remit all taxes that are remitted to the m by special
event vendors.
I. H. Promoters or organizers of a special event that is held
on an annual basis during the same thirty -day period each year may
request that the Tax Commission limit their responsibilities to the
following:
1. Submitting of an a pplication for a special event permit as
provided in subsection A of this section;
2. Providing report forms to special event vendors as provided
in subsection C of this section; and
3. Within fifteen (15) days following the conclusion of the
special event, submitting a list of special event vendors at each
event, including the vendor's name, address, and telephone number.
Such requests may be denied by the Tax Comm ission for reasons
including, but not limited to, failure by the promoter to comply
with the requirements of this section or failure by vendors of the ENR. H. B. NO. 2289 Page 21
promoter's previous special events to comply with the provisions of
subsection J I of this section.
J. I. Special event vendors of special events that are approved
under subsection I H of this section shall remit the tax along with
a sales tax report directly to the Ta x Commission within fi fteen
(15) days following the conclusion of the special event. If not
filed on or before the fifteenth day, the tax shall be delinquent
from such date. Reports timel y mailed shall be considered timely
filed. If a report is not time ly filed, interest sha ll be charged
from the date the report should have been filed until the report is
actually filed.
K. J. As used in this section:
1. "Promoter" or "organizer" means any person who organizes or
promotes a special event which results i n the rental, occupati on, or
use of any structure, lot, tract of land, sample or display case ,
table, or any other similar items for the exhibition and sale of
tangible personal property or se rvices taxable under Section 1350 et
seq. of this title by speci al event vendors;
2. "Special event" means an entertainment, amusement,
recreation, or marke ting event that occurs at a single location on
an irregular basis and at which tangible personal pr operty is sold.
"Special event" shall include, but not be limite d to, gun shows,
knife shows, craft shows, antique shows, flea markets, carnivals,
bazaars, art shows, and other merchandise displays or exhibits.
Special event shall not include any county, district, or state fair
or public or private school or universit y-sponsored event. Sp ecial
event shall not include an event sponsored by a city or town that
includes less than ten special event vendors or any event sponsored
by a church organization exemp t from federal income tax pursuant to
Section 501(c)(3) of the I nternal Revenue Code. Special event shall
not include a registered farmers market which is a designated area
in which farmers, growers or producers from a defined region gather
on a regularly scheduled basis to sell at retail nonpotentially
hazardous farm food products and who le-shell eggs to the public; and
3. "Special event vendor " means a person making sales of
tangible personal property or services taxable under Section 1350 et
seq. of this title at a special event within this state and who is
not permitted under Section 1 364 of this title.
ENR. H. B. NO. 2289 Page 22
SECTION 9. AMENDATORY 68 O.S. 2021, Sectio n 2373, is
amended to read as follows:
Section 2373. A. Any claim for refund filed pursua nt to this
section must be made on a return, in the form prescribed by the
Oklahoma Tax Commission.
B. Any claim for refund of an overpayment of any tax imposed by
Section 2355 of this title must be made within three (3) years from
the due date of the ret urn, including the period of any extension of
time for filing a return, or two (2) years from the payment of the
tax liability, whichever of such periods expires lat er, or if no
return was filed by the taxpayer, within two (2) years from the time
the tax was paid.
C. Except as provided in subsection H of Secti on 2375 of this
title, no refund shall be allowed or made after the expiration of
the period of limitation pr escribed in subsection B of this section
for the filing of a claim for refund, unless a cla im for refund is
filed by the taxpayer within such perio d. If a claim for ref und is
filed during the period prescribed in subsection B of this section,
the amount of the refund, if any, shall not exceed the amount of tax
paid within the period, immediatel y preceding the filing of the
claim, equal to three (3) years plus the period of any extension of
time for filing a return. If the claim was not filed within the
three (3) year period prescribed in subsection B of this section,
the refund shall not exceed the portion of the tax paid during the
two (2) years immediately preceding the filing of the claim.
D. If, upon any revision or adjustment, including overpayment
or illegal payment on account of income derived from tax -exempt
Indian land, any refund is found to be due any taxpayer, it shall be
paid out of the "Income Tax Withholdin g Refund Account", created by
Section 2385.16 of this title, in the same manner as refu nds are
paid pursuant to such section. The information filed, reflecting
the revision or adjustment, shall constitute the claim for refund.
Except as provided in su bsection H of Section 2375 of this
title, the amount of the refund shall not exceed the portion of the
tax paid during the three (3) years immediately preceding the filing
of the claim, or, if no claim was filed, then during the thr ee (3)
years immediately preceding the allowance of the refund. However,
this
E. The three-year limitation set forth in subsection C of this
section shall not apply to the amount of refunds payable upon c laims ENR. H. B. NO. 2289 Page 23
filed by members of federally recognized I ndian tribes or the United
States on behalf of its Ind ian wards or former Indian wards, to
recover taxes illegally co llected from tax-exempt lands. In the
case of any refund to a member of a federally recogn ized Indian
tribe or to the United States on beh alf of its Indian wards or
former Indian wards, to rec over taxes illegally collected on bonus
payments from oil and g as leases located on tax-exempt Indian lands
pursuant to this section, the Tax Commission s hall pay interest on
all refunds issued after Ja nuary 1, 1996, at the rate of six percent
(6%) per annum from the date of payment by the taxpayer to the date
of the refund.
F. In cases where that the Tax Commission and the taxpayer have
signed a consent, as provided by law, extending the period during
which the tax may be assessed, the period during which the taxp ayer
may file a claim for refund or during which an al lowance for a
refund may be made shall be automatically extended to the final date
fixed by such consent plus thirty (30) days.
G. The Oklahoma Tax Commission may authorize the use of direct
deposit in lieu of refund checks for electronically filed income tax
returns.
SECTION 10. AMENDATORY 68 O.S. 2021, Section 2375, i s
amended to read as follows:
Section 2375. A. At the time of transmitting t he return
required hereunder to the Oklahoma Tax Commission On the original
due date of the return, not including any extensions, the taxpayer
shall remit therewith to the Tax C ommission the amount of tax due
under the applicable pr ovisions of Section 2351 et seq. of this
title. Failure to pay such tax on or before the date the return is
due, not including any extensions, shall cause the tax to become
delinquent. If the return is filed electronically, the amount of
the tax due pursuant to the provisions of this article shall be due
on or before the twentieth day of April following the clos e of the
taxable year regardless of when the return is electronically filed.
The tax shall be deemed delinquent if unpaid aft er the twentieth day
of April if the return is electronically filed. Provided, if the
Internal Revenue Code provides for a later due date for returns of
individuals, the Tax Commission shall accept payments made with
returns filed by individuals by such d ate and such payment s shall be
considered as timely paid.
ENR. H. B. NO. 2289 Page 24
B. If any tax due under Section 2351 et seq. of this title,
except a deficiency determined under Section 221 of this title, is
not paid on or before the date such tax becomes delinquent, a
penalty of five percent (5%) of the total amount of the tax due
shall be added thereto, collected and paid. However, the Tax
Commission shall not collect the penalty assessed if the taxpayer
remits the tax and interest within sixty (60) days of the mailing of
a proposed assessment o r voluntarily pays the tax upon the filing of
an amended return.
C. If any part of deficiency, arbitrary or j eopardy assessment
made by the Tax Commission is based upon or occasioned by the
refusal of any taxpayer to file with the Tax Commission any retur n
as required by Sectio n 2351 et seq. of this title, within ten (10)
days after a written demand for such repo rt or return has been
served upon any taxpayer by the Tax Commission by registered letter
with a return receipt attached, the Tax Commission may a ssess and
collect, as a penalty, twenty-five percent (25%) of the amount of
the assessment. In the exercise o f the authority granted by
subsection C of Section 223 and Section 224 of this title, the T ax
Commission shall assess the tax as an estimated tax on the basis of
its own determination of the Oklahoma taxable income of the
taxpayer, to be adjusted if and wh en Oklahoma taxable income is
ascertained under the provisions of Section 2351 et seq. of t his
title.
D. If any part of any d eficiency was due to negligence or
intentional disregard, without the intent to defraud, then ten
percent (10%) of the total amoun t of the deficiency, in addition to
such deficiency, including interest as authorized by la w, shall be
added, collected and pa id.
E. If any part of any deficiency was d ue to fraud with intent
to evade tax, then fifty percent (50%) of the total amount of t he
deficiency, in addition to such deficiency, including interest as
herein provided, shall be added, collected and paid.
F. The provisions in th is section for penaltie s shall supersede
all other provisions for penalties on income taxes. The provisions
in this section for penalties shall supersede the provisions in the
Uniform Tax Procedure Co de, Section 201 et seq. of this tit le, only
to the extent of conflict between such provisions and the penalty
provisions in this section.
ENR. H. B. NO. 2289 Page 25
G. All taxes, penalties a nd interest levied under Section 2351
et seq. of this title must be paid to the Tax Commissi on at Oklahoma
City, in the form or remittance required by and payable to it.
H. 1. The period of time prescribed in Section 223 of this
title, in which the proc edures for the assessment of income tax may
be commenced by the Tax Commission, shall be toll ed and extended
until the amount of taxable income for any year of a taxpayer under
the Internal Revenue Code has been finally determined under
applicable federal law and for the additional period of time
hereinafter provided in this subsection.
2. If, in such final determination, the amou nt of taxable
income for any year of a taxp ayer under the Internal Revenue Code is
changed or corrected from the amounts includ ed in the federal return
of the taxpayer for such year and such change or correction affects
the Oklahoma taxable income of the t axpayer for such yea r, the
taxpayer, within one (1) year after such final determination of the
corrected taxable income, shall file an amended return under Section
2351 et seq. of this title reporting the corrected Oklaho ma taxable
income, and the Tax Comm ission shall make as sessment or refund
within two (2) years from the date the return required by this
paragraph is filed and no t thereafter, unless a waiver is agreed to
and signed by the Tax Commission and the taxpayer.
3. In the event of failure by a ta xpayer to comply wit h the
provisions of paragraph 2 of this subsection, the statute of
limitations shall be tolled for a perio d of time equal to the time
between the date the amended return under this subsection is
required until such return is actually fu rnished.
4. In administering the provision s of this subsection, the Tax
Commission shall have the authority to audit each an d every item of
income, deduction, credit or any other matter related to the return
where such items or matters relate to allocatio n or apportionment
between the State of Okl ahoma and some other state or the federal
government even if such items or matters were not affected by
revisions made in such final determination. Where such items or
matters do not relate to allocation or appor tionment between the
State of Oklahoma and some other state or the federal government,
the Tax Commission shall be bound by t he revisions made in such
final determination.
5. The provisions of this subsection shall be ef fective on
September 1, 1993, and e xcept in the case of tax years which are th e ENR. H. B. NO. 2289 Page 26
subject of closing, settlement or resolution agreements entered into
by taxpayers and the Tax Commission, keep open all tax years
beginning after June 30, 1988, and all tax yea rs beginning on or
before June 30, 1988, for which exte nsions of the statute o f
limitations have been executed by the taxpayer, but only to the
extent such extensions remain open on the date of enactment hereof.
SECTION 11. AMENDATORY 68 O.S. 2021, Section 2385.3, is
amended to read as follows:
Section 2385.3 A. Every employer required to deduct and
withhold taxes under Section 2385. 2 of this title shall pay over the
amount so withheld as taxes to the Oklahoma Tax Commission pursu ant
to the schedule outlined in paragraphs 1 through 3 of this
subsection, and shall file a quarterly return in such form as the
Tax Commission shall prescri be on or before the twentieth day of the
month following the close of each calendar quarter:
1. Every employer required to remit federal withholding unde r
the Federal Semiweekl y Deposit Schedule shall pay over the amount so
withheld under subsection A of this section on the same dates as
required under the Federal Semiweekly Deposit Schedule for federa l
withholding taxes;
2. Every employer owing an averag e of Five Hundred Dolla rs
($500.00) or more per quarter in taxes in the previous fiscal year
who is not subject to the provisions of paragraph 1 of this
subsection shall pay over the amount so withheld on or before the
twentieth day of each succeeding mont h; and
3. Every employer owing an average of less than Five Hundred
Dollars ($500.00) per quarter in taxes in the previous fiscal year
shall pay over the amount so withheld on or before the twentieth day
of the month following the close of each succeeding quarterly
period.
B. Every employer subject to the provisions of paragraph 1 of
subsection A of this section shall file returns pursuant to the Tax
Commission's electronic data interchange program.
C. Every employer required under Section 2385.2 of this title
to deduct and withhold a tax from the wages paid an employee shall,
as to the total wages paid to each employee during the calendar
year, furnish to such employee, on or before January 31 of the
succeeding year, a written statement showing the name of the ENR. H. B. NO. 2289 Page 27
employer, the name of the employee and the employee 's Social
Security account number, if a ny, the total amount of wages subject
to taxation, and the total amount deducted and withheld as tax and
such other information as the Tax Commission may requi re. If an
employee's employment is terminated before the close of a calendar
year, the written statement must be furnished within thirty (30)
days of the date of which the last payment of wages is mad e.
D. Every employer required under Section 2385.2 of this title
to deduct and withhold a tax from the wages paid an employee shall
furnish to the Oklahoma Tax Commission, on or before January 31 of
the succeeding year, an annual reconciliation and such o ther
information as the Tax Commission may require purs uant to the Tax
Commission's electronic data interchange program . Failure of an
employer to provide an annual reconciliation within thirty (30) days
of the due date may result in a penalty to be impos ed on the
employer in an amount not to exceed One Thous and Dollars ($1,000).
The additional penalty may be collected in the same manner as
provided by law for collection of delinquent taxes.
E. If the Tax Commission , in any case, has justifiable reason
to believe that the collection of the tax pro vided for in Section
2385.2 of this title is in jeopardy, the Tax Commission may require
the employer to file a return and pay the tax at any time.
F. Any sum or sums withh eld in accordance with the provisions
of Section 2385.2 of this title shall be deem ed to be held in trust
for the State of Oklahoma, and, as trustee, the employer shall have
a fiduciary duty to the State of Oklahoma in regard to such sums and
shall be subject to the trust laws of this state.
G. If any employer fails to withhold the tax required to be
withheld by Section 2385.2 of this title and thereafter the income
tax is paid by the emp loyee, the tax so required to be withheld
shall not be collected from the employer but such employer shall n ot
be relieved from the liability for penalt ies or interest otherwise
applicable because of such failure to withhold the tax.
H. Every person maki ng payments of winnings subject to
withholding shall, for each monthly period, on or before the
twentieth day of the month following the payment of such winnings
pay over to the Tax Commi ssion the amounts so withheld, and shall
file a return, in a form as prescribed by the Tax Commission.
ENR. H. B. NO. 2289 Page 28
I. Every person making payments of winnings subject to
withholding shall furnish to each recipient on or before Januar y 31
of the succeeding year a writ ten statement in a form as prescribed
by the Tax Commission. Every person making such reports shall also
furnish a copy of such report to the Tax Commission in a manner and
at a time as shall be prescribed by the Tax Comm ission.
SECTION 12. AMENDATORY 68 O.S. 2021, Section 3131, is
amended to read as follows:
Section 3131. A. Within thirty (30) days after resale of
property, the county treasurer s hall file in the office of the
county clerk a return, and retain a copy thereof in the county
treasurer's office, which shall show or include, as appropriate:
1. Each tract or parcel of real estate so sold;
2. The date upon which it was resold;
3. The name of the purchaser;
4. The price paid therefo r;
5. A copy of the notice of such resale with an affidavit of its
publication or posting; and
6. The complete minu tes of sale, and that the same was
adjourned from day to day until the sale was completed.
Such notice and return shall be presumptive evid ence of the
regularity, legality and validity of all the official acts leading
up to and constituting such resale. W ithin such thirty (30) days,
the county treasurer shall execute, acknowledge and deliver to the
purchaser or the purchaser 's assigns, or to the board of county
commissioners where such property has been bid off in the name o f
the county, a deed conveying t he real estate thus resold. The
issuance of such deed shall effect the cancellation and se tting
aside of all delinquent taxes, assessments , penalties and costs
previously assessed or existing against the real estate, and of all
outstanding individual and county tax sale certificates, and shall
vest in the grantee an absolute and perfect title i n fee simple to
the real estate, subject to all claims which the state may have had
on the real estate for taxes or other liens or en cumbrances;
provided, that all s uch claims which the state, municipality or both
the state and the municipality may have ha d on the real estate for ENR. H. B. NO. 2289 Page 29
taxes or other liens or encumbrances shall be canceled and
extinguished with respect to any deed conveying t itle to the board
of county commissioners where such property was bid off in the name
of the county. Twelve (12) months af ter the deed shall have been
filed for record in the county clerk's office, no action shall be
commenced to avoid or set aside the de ed. Provided, that persons
under legal disability shall have one (1) year after removal of such
disability within which to redeem the real estate.
B. Any number of lots or tracts of land may be included in one
deed, for which deed the county treasurer sh all collect from the
purchaser the fees provided for in Section 43 of Title 28 of the
Oklahoma Statutes. The county treasu rer shall also charge and
collect from the purch aser at such sale an amount in addition to the
bid placed on such real estate, suffic ient to pay all expenses
incurred by the county in preparing, listing and advertising the lot
or tract purchased by such bi dder, which sums shall be credited and
paid into the resale property fund hereinafter provided, to be used
to defray to that extent t he costs of resale.
C. When any tract or lot of land sells for more than the taxes,
penalties, interest and cost due there on, the excess shall be held
in a separate fund the county treasurer shall notify the Oklahoma
Tax Commission within thirty (30) days after t he resale, and shall
include in such notification all information necessary for the
Oklahoma Tax Commission to dete rmine whether a tax lien exists on
the subject property.
D. Within sixty (60) days of receipt of the n otification
described in subsection C of this section, the Oklahoma Tax
Commission shall provide notice to the county treasurer of any
outstanding tax liabilities, including tax, penalty and interest,
attached to each tract or lot of land, regardless of whether a tax
warrant has been filed. Upon timely notice of a li ability from the
Oklahoma Tax Commission, the county treasurer shall remit to the Tax
Commission the amount of the outstanding tax liabilities or the
excess proceeds, whichever is less. Any remaining proceeds shall be
held in the separate fund for the record owner of such land, as
shown by the county records as of the date the county resale begins,
to be withdrawn any time within one (1) year. No assig nment of this
right to excess proceeds shall be valid which occurs on or after the
date on which the county resale began. At the end of one (1) year,
if such money has not been w ithdrawn or collected from the county,
it shall be credited to the county res ale property fund.
ENR. H. B. NO. 2289 Page 30
SECTION 13. This act shall become effective July 1, 2023.
SECTION 14. It being immediately necessary for the preservation
of the public peace, hea lth or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and afte r its passage and approval.
ENR. H. B. NO. 2289 Page 31
Passed the House of Represent atives the 22nd day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the 20th day of April, 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 Oklahoma 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: _________________________________