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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 604 By: Rader of the Senate
and
Fetgatter of the House
An Act relating to tax compliance; amending 68 O.S.
2021, Sections 225 and 2385.3, wh ich relate to
appeals and withholding s; requiring certain hearings
to be confidential; requiring certa in information
submitted to court to be sealed and strictly
controlled; authorizing penalty for failure of an
employer to provide certain reconciliation; limiting
penalty; providing for colle ction of penalty;
amending 68 O.S. 2021, Section 3131, which relates to
resale return; requiring the county treasurer to
notify the Oklahoma Tax Commission within certain
period of certain information to determine exist ence
of lien; requiring the Commissio n to notify the
county treasurer within certain period of any
outstanding tax liabilities; requiring the county
treasurer to remit certain proceeds; requiring
remaining proceeds be held in certain fund; updating
statutory language; and providing an effective date.
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
"An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 2357.104, which relates to certain
railroad rehabilitation t ax credits; modifying
taxable year references; and providing an effective
date.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2 357.104, is
amended to read as follows:
Section 2357.104 A. Except as otherw ise provided by this
section, for taxable years beginning after December 31, 2005, and
ending before January 1, 2025 2030, there shall be allowed a credit
against the tax imposed by Section 2355 of this title equal to fifty
percent (50%) of an eligible tax payer's qualified railroad
reconstruction or replacement expenditures.
B. For tax years 2020 through 2024 2029, the amount of the
credit shall be limited to the product of Five Thousand Dollars
($5,000.00) and the number of miles of railroad track owned o r
leased within this state by the eligible taxpayer as of the close of
the taxable year.
C. The credit allowed pursuant to subsection A of this section
but not used shall be freely transferable, by written agreement, to
subsequent transferees at any time during the five (5) years
following the year of qualification. An eligible transferee shall
be any taxpayer subject to the tax imposed by Section 2355 of this
title. The person originally allowed the credit and the subsequent
transferee shall jointly fil e a copy of the written credit transfer
agreement with the Oklahoma Tax Commission within thirty (30) days
of the transfer. The written agreement shall contain the name,
address and taxpayer identification number of the parties to the
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transfer, the amount of credit being transferred, the year the
credit was originally allowed to the transferring person a nd the tax
year or years for which the credit may be claimed. The Tax
Commission shall promulgate rules to permit verification of the
timeliness of a tax credit claimed upon a tax return pursuant to
this subsection but shall not promulgate any rules which unduly
restrict or hinder the transfers of such tax credit. The Department
of Transportation shall promulgate rules to permit verification of
the eligibility of an eligible taxpayer's expenditures for the
purpose of claiming the credit. The rules shall provide for the
approval of qualified railroad reconstruction or replacement
expenditures prior to commencement of a project and provide a
certificate of verification upon completion of a project that uses
qualified railroad reconstruction or replacement e xpenditures. The
certificate of verification shall satisfy all requirements of the
Tax Commission pertaining to the eligibility of the person claiming
the credit.
D. Any credits allowed pursuant to the provisions of subsection
A of this section but not u sed in any tax year may be carried over
in order to each of the five (5) years following the year of
qualification.
E. As used in this section:
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1. "Class II and Class III railroad" means a railroad that is
classified by the United States Surface Transpor tation Board as a
Class II or Class III railroad;
2. "Eligible taxpayer" means any Class II or Class III
railroad; and
3. "Qualified railroad reconstruct ion or replacement
expenditures" means expenditures for:
a. track maintenance, natural disasters, and
reconstruction or replacement of railroad
infrastructure including track, roadbed, crossings,
bridges, industrial leads and track -related structures
owned or leased by a Class II or Class III railroad as
of January 1, 2006, or
b. new construction of indus trial leads, switches, spurs
and sidings and extensions of existing sidings by a
Class II or Class III railroad.
F. The total amount of credits authorized by this section used
to offset tax shall be adjusted annually to limit the annual amount
of credits to Two Million Dollars ($2,000,000.00) for tax years 2018
and 2019 and Five Million Dollars ($5,000,000.00) for tax year 2020
and all subsequent tax years. The Tax Commission shall annually
calculate and publish a percentage by which the credits authorize d
by this section shall be reduced so the total amount of credits used
to offset tax does not exceed the applicable annual limit. The
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formula to be used f or the percentage adjustment shall be the
applicable annual limit divided by the credits claimed in t he second
preceding year.
G. Pursuant to subsection F of this section, in the event the
total tax credits authorized by this section exceed the annual
applicable limit in any calendar year, the Tax Commission shall
permit any excess over the annual applic able limit but shall factor
such excess into the percentage adjustment formula for subsequent
years.
SECTION 2. This act shall become effe ctive November 1, 2023."
Passed the House of Representatives the 25th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 604 By: Rader of the Senate
and
Pfeiffer of the House
An Act relating to tax compliance; amending 68 O.S.
2021, Sections 225 and 2385.3, wh ich relate to
appeals and withholding s; requiring certain hearings
to be confidential; requiring ce rtain information
submitted to court to be sealed and strictly
controlled; authorizing penalty for failure of an
employer to provide certain reconciliation; limiting
penalty; providing for colle ction of penalty;
amending 68 O.S. 2021, Section 3131, which relates to
resale return; requiring the county treasurer to
notify the Oklahoma Tax Commission within certain
period of certain information to determine exist ence
of lien; requiring the Commissio n to notify the
county treasurer within certain period of any
outstanding tax liabilities; requiring the county
treasurer to remit certain proceeds; requiring
remaining proceeds be held in certain fund; updating
statutory language; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 3. AMENDATORY 68 O.S. 2021, Section 225, is
amended to read as follows:
Section 225. A. Any taxpayer aggri eved by any order, ruling,
or finding of the Oklahoma Tax Commission directly affecting the
taxpayer or aggrieved by a final order of the Tax Commission iss ued
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pursuant to subsection G of Section 221 of this title may appeal
therefrom directly to the Supre me 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 f or 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 compl ained of, 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 prepare for filing with the
Supreme Court, within t hirty (30) days, the record of the app eal,
certified by the Secretary of the Tax Commis sion, and consisting of
any citations, findings, judgments , motions, orders, pleadings, and
rulings, together with a transcript of all ev idence introduced at
any hearing relative thereto, or such portion of such citations,
findings, judgments, motions, ord ers, 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 Ta x Commission shall
furnish the taxpayer a copy of the proceedings had in connection
with the matter complain ed of.
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D. In lieu of an appeal to the Su preme Court, any taxpayer
aggrieved by a final order of the Tax Commi ssion assessing a tax or
an additional tax or denial of a claim for refund may opt to f ile an
appeal for a trial de novo in the district court of Oklahoma County
or the county in which th e taxpayer resides. If the amount in
dispute exceeds Ten Thousand Do llars ($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 heard by a specia l judge sitting
without a jury. An order resulting from a trial provi ded pursuant
to this subsection shall be appealab le directly to the Supreme Court
of Oklahoma by either part y. Such appeal shall be taken in the
manner and time provided by law for appe al to the Supreme Court from
the district court in civil actions. Upo n the filing of an appeal,
the order of the distr ict court shall be superseded and neither
party shall be required to give bond. The provisions of t his
subsection shall be applicable fo r tax periods beginning after th e
effective date of this act. Provide d, if the order applies to
multiple tax periods w hich begin before and after the effective date
of this act, the appeal provided by this subsection s hall be
available to the aggrieved ta xpayer.
E. If the appeal is fro m an order of the Tax Commission or a
district court denying a refund of taxes previous ly paid and if upon
final determination of the appeal, the order denying the refund is
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reversed or modified, the taxes previously paid, t ogether with
interest thereon from the date of the filing of the petit ion 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 thereon shall be pa id by the Tax
Commission out of monies in the Tax Commission clearing account from
subsequent collections from the same source as the original tax
assessment, provided that in th e event there are insufficient funds
for refunds from subsequent collections f rom the same source, the
refund shall be paid by the Tax Commission fr om monies appropriated
by the Legislature to the special refund reserve account for such
purposes as hereinafter provided. There is hereby created w ithin
the official depository of the State Treasury an agency special
account for the Tax Commission for th e purpose of making such
refunds as may be requir ed under this section, not otherwise
provided. This accoun t shall consist of monies appropriated by the
Legislature for the purpose of m aking refunds under this section .
G. If the appeal be from an order, judgment, finding, or ruling
of the Tax Commissio n other than one assessing a tax and from which
a right of appeal is not otherwise specifically prov ided for in this
article the Uniform Tax Procedure Code, any aggrieve d taxpayer may
appeal from that order, judgment, finding, or rul ing as provided in
this section. The filing of such an appeal shall supersede the
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effect of such order, judgment, ruling, or finding of the Tax
Commission .
H. This section shall be construe d to provide to the taxpayer a
legal remedy by action at law in any case where a tax, o r the method
of collection or enforcement thereof, or any o rder, ruling, finding,
or judgment of the Tax Commission is complained of, or is sought to
be enjoined in any action in any court of this state or t he United
States of America.
I. All hearings held in proceedings pursuant to this section
shall be confidential and shall be held in closed court wi thout
admittance of any person other than interested parties, their
counsel, and employees of the Oklahoma Tax Commission and its
counsel. Confidential information filed with or submitted to the
Supreme Court or district co urt in conjunction with any proc eeding
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 4. 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 Secti on 2385.2 of this title shall pay over the
amount so withheld as taxes to the Ok lahoma Tax Commission pursuant
to the schedule outlined in paragraphs 1 through 3 of this
subsection, and shall file a quarterly return in such form as the
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Tax Commission shall prescribe on or before the twentieth day of the
month following the close of ea ch calendar quarter:
1. Every employer required to remit federal wit hholding under
the Federal Semiweekly Deposit Schedule shall pay over the amount so
withheld under subsecti on A of this section on the same dates as
required under the Federal Semiweekly Deposit Schedule for federal
withholding taxes;
2. Every employer ow ing an average of Five Hundred Dollar s
($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 befo re the
twentieth day of each su cceeding month; and
3. Every employer owing an average of less than Five Hundred
Dollars ($500.00) per qua rter 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 ea ch succeeding quarterly
period.
B. Every employer subject to the pro visions 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 2 385.2 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
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succeeding year, a written statement show ing the name of the
employer, the name of the employee and the employ ee’s Social
Security account number, i f any, the total amount of wages subject
to taxation, and the total amount deduc ted and withheld as tax and
such other information as the Tax Commiss ion may require. If an
employee’s employment is terminated before th e close of a calendar
year, the written statement must be furnished within thirty (30)
days of the date of which the l ast payment of wages is made.
D. Every employer required under Secti on 2385.2 of this title
to deduct and withhold a tax from the wages p aid an employee shall
furnish to the Oklahoma Tax Commission, on or before January 31 of
the succeeding year, an annua l reconciliation and such other
information as the Tax Commission may require pursuant 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 imposed on the
employer in an amount not to exc eed One Thousand Dollars
($1,000.00). The penalty may be collected i n 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 i s in jeopardy, the Tax Commissio n may require
the employer to file a r eturn and pay the tax at any time.
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F. Any sum or sums withheld 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 this state, and, as trustee, the employer
shall have a fiduciary duty to the State of Oklahoma this state in
regard to such sums and shall be subject to the trust laws of this
state.
G. If any employer fails to w ithhold the tax required to be
withheld by Section 2385.2 of this tit le and thereafter the income
tax is paid by the employee, the tax so required to be withh eld
shall not be collected from the employer but such employer shal l not
be relieved from the liab ility for penalties or interest other wise
applicable because of such failure to withhold the tax.
H. Every person making 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 Commission the amounts s o withheld, and shall
file a return, in a form as prescribed by the Tax Commission.
I. Every person making payments of winnings subject to
withholding shall furnish to each recipient on or before January 31
of the succeeding year a written 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 Commission.
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SECTION 5. 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 shal l 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 therefor;
5. A copy of the no tice of such resale with an affi davit of its
publication or posting; a nd
6. The complete minutes of sale, and that the same was
adjourned from day to day until the sale was completed.
Such notice and return shall be p resumptive evidence of the
regularity, legality, and validity of all t he official acts leading
up to and constituting such resale. Within 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 propert y has been bid off in the name of
the county, a deed conveying the real estate thus resold. The
issuance of such deed shall effect the cancellation and set ting
aside of all delinquent t axes, assessments, penalties, and costs
previously assessed or existin g against the real estate, and of all
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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 sta te may have had
on the real estate for taxes or other liens or encumbr ances;
provided, that all such claims which the state, municipality , or
both the state and the municipality may have h ad on the real estate
for taxes or other liens or encumbrances shall be canceled and
extinguished with respect to any deed conveying title to the board
of county commissioners where such property was bid off in the name
of the county. Twelve (12) months a fter 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 deed. Provided, that persons
under legal disability shall have one (1) year after removal of such
disability within which t o 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 shall collect from the
purchaser the fees provided for in Section 43 of Title 28 of the
Oklahoma Statutes. The county treas urer shall also charge and
collect from the purchaser at such sale an amount in addition to the
bid placed on such real estate, sufficient to pay all expenses
incurred by the county in preparing, listing , and advertising the
lot or tract purchased by such bidder, which sums shall be cr edited
and paid into the resale property fund hereinafter provided, to be
used to defray to that extent the costs of resale.
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C. When any tract or lot of land sells for more than the taxes,
penalties, interest, and cost due thereon, the excess shall be hel d
in a separate fund the county treasurer shall notify the Oklahoma
Tax Commission within thirty (30) days a fter the resale and shall
include in the notification all information necessary for the
Commission to determine whethe r a tax lien exists on the s ubject
property.
D. Within sixty (60) days of receipt of the notificati on
described in Subsection C of this section, the Commission shall
provide notice to the county treasurer of any outstanding tax
liabilities, including tax, penalty, and interest, attach ed to each
tract or lot of land, regar dless of whether a tax warrant h as been
filed. Upon timely notice of a liability from the Commission, the
county treasurer shall remi t to the Commission the amount of the
outstanding tax liabilities or the excess proce eds, 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 assignment of th is right to excess proceeds shall
be valid which occurs on or after t he date on which the county
resale began. At the end of one (1) year, if such money has not
been withdrawn or collected from the county, it shall be credited to
the county resale propert y fund.
SECTION 6. This act shall become effective N ovember 1, 2023.
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Passed the Senate the 2nd day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives