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ENGROSSED SENATE
BILL NO. 562 By: Howard of the Senate
and
Martinez of the House
An Act relating to documentary tax stamp; amending 68
O.S. 2021, Section 3202, which relates to exemptions;
requiring submission of certain documents a s required
by the county clerk; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3202, is
amended to read as follows:
Section 3202. A. The tax imposed by Section 3201 of this title
shall not apply to:
1. Deeds recorded prior to the effective date of Sections 3201
through 3206 of this title;
2. Deeds which secure a debt or other obligation;
3. Deeds which, without additional consideration, confirm,
correct, modify or supplement a deed previously recorded;
4. Deeds between husband and wife, or parent and child, or any
persons related within the second degree of consanguini ty, without
actual consideration therefor, deeds between any person a nd an
express revocable trust created by such person or such person ’s
spouse or deeds pursuant to which property is transferred from a
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person to a partnership, limited liability company o r corporation of
which the transferor or the transferor’s spouse, parent, child, or
other person related within the second degree of consanguinity to
the transferor, or trust for primary benefit of such persons, are
the only owners of the partnership, limi ted liability company or
corporation. However, if any interest in th e partnership, limited
liability company or corporation is transferred within one (1) year
to any person other than the transferor or the transferor ’s spouse,
parent, child, or other pers on related within the secon d degree of
consanguinity to the transfero r, the seller shall immediately pay
the amount of tax which would have been due had this exemption not
been granted;
5. Tax deeds;
6. Deeds of release of property which is security for a debt or
other obligation;
7. Deeds executed by Indians in approval proceedings of the
district courts or by the Secretary of the Interior;
8. Deeds of partition, unless, for consideration, some of the
parties take shares greater in value than their und ivided interests,
in which event a tax attaches to each deed conveyin g such greater
share computed upon the consideration for the excess;
9. Deeds made pursuant to mergers of partnerships, limited
liability companies or corporations;
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10. Deeds made by a subsidiary corporation to i ts parent
corporation for no consideration other than the cancellation or
surrender of the subsidiary ’s stock;
11. Deeds or instruments to which the State of Oklahoma or any
of its instrumentalities, agencies or subdivisions is a party,
whether as grantee or as grantor or in any other capacity;
12. Deeds or instruments to which the United States or any of
its agencies or departments is a party, whether as grantor or as
grantee or in any other capacity, provided that this shall n ot
exempt transfers to or f rom national banks or federal savings and
loan associations;
13. Any deed executed pursuant to a foreclosure proceeding in
which the grantee is the holder of a mortgage on the property being
foreclosed, or any deed executed purs uant to a power of sale in
which the grantee is the party exercising such power of sale or any
deed executed in favor of the holder of a mortgage on the property
in consideration for the release of the borrower from liability on
the indebtedness secured by such mortgage except as to cash
consideration paid; provided, howeve r, the tax shall apply to deeds
in other foreclosure actions, unless otherwise hereinabove exempted,
and shall be paid by the purchaser in such foreclosure actions; or
14. Deeds and other instruments to which the Oklahoma Space
Industry Development Author ity or a spaceport user, as defined in
the Oklahoma Space Industry Development Act, is a party.
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B. An individual or entity cl aiming an exemption pursuant to
this section shall prov ide documentation as required by the county
clerk to verify eligibility for the exemption. Documentation may
include but not be limited to entity minutes and ownership ledgers,
tax returns or depreciation schedules re lated to the property
conveyed in the deed, mortgages or notes issued with lands,
tenements, or other realty being provided as collateral for which
the exemption is claimed , and on a form prescribed by the Oklahoma
Tax Commission. Affidavits claiming exemptions shall be signed
under penalty of perjury.
SECTION 2. This act shall become effective November 1, 2023.
Passed the Senate the 28th day of February, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives