OK
Oklahoma Senate Bill SB604

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB604 Compare Versions

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4-An Act
5-ENROLLED SENATE
6-BILL NO. 604 By: Rader of the Senate
28+ENGROSSED HOUSE AMENDME NT
29+ TO
30+ENGROSSED SENATE BILL NO . 604 By: Rader of the Senate
731
832 and
933
1034 Fetgatter of the House
1135
1236
1337
14-An Act relating to incentive payments; amendi ng 68
15-O.S. 2021, Sections 3604 and 3606, which relate to
16-the Oklahoma Quality Jobs Program Act; modifying
17-payment period for certain industry; requiring the
18-extension of contracts for cer tain entities;
19-prohibiting the inclusion of ad ditional award with
20-certain contract extension; stipulating calculation
21-of payments for certain extended contract; updating
22-statutory reference; and providing an effective date .
38+
39+
40+An Act relating to tax compliance; amending 68 O.S.
41+2021, Sections 225 and 2385.3, wh ich relate to
42+appeals and withholding s; requiring certain hearings
43+to be confidential; requiring certa in information
44+submitted to court to be sealed and strictly
45+controlled; authorizing penalty for failure of an
46+employer to provide certain reconciliation; limiting
47+penalty; providing for colle ction of penalty;
48+amending 68 O.S. 2021, Section 3131, which relates to
49+resale return; requiring the county treasurer to
50+notify the Oklahoma Tax Commission within certain
51+period of certain information to determine exist ence
52+of lien; requiring the Commissio n to notify the
53+county treasurer within certain period of any
54+outstanding tax liabilities; requiring the county
55+treasurer to remit certain proceeds; requiring
56+remaining proceeds be held in certain fund; updating
57+statutory language; and providing an effective date.
2358
2459
2560
26-SUBJECT: Quality jobs incentive payments
61+
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64+AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
65+and insert:
66+
67+"An Act relating to revenue and taxation; amending 68
68+O.S. 2021, Section 2357.104, which relates to certain
69+railroad rehabilitation t ax credits; modifying
70+taxable year references; and providing an effective
71+date.
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27100
28101 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
102+SECTION 1. AMENDATORY 68 O.S. 2021, Section 2 357.104, is
103+amended to read as follows:
104+Section 2357.104 A. Except as otherw ise provided by this
105+section, for taxable years beginning after December 31, 2005, and
106+ending before January 1, 2025 2030, there shall be allowed a credit
107+against the tax imposed by Section 2355 of this title equal to fifty
108+percent (50%) of an eligible tax payer's qualified railroad
109+reconstruction or replacement expenditures.
110+B. For tax years 2020 through 2024 2029, the amount of the
111+credit shall be limited to the product of Five Thousand Dollars
112+($5,000.00) and the number of miles of railroad track owned o r
113+leased within this state by the eligible taxpayer as of the close of
114+the taxable year.
115+C. The credit allowed pursuant to subsection A of this section
116+but not used shall be freely transferable, by written agreement, to
117+subsequent transferees at any time during the five (5) years
118+following the year of qualification. An eligible transferee shall
119+be any taxpayer subject to the tax imposed by Section 2355 of this
120+title. The person originally allowed the credit and the subsequent
121+transferee shall jointly fil e a copy of the written credit transfer
122+agreement with the Oklahoma Tax Commission within thirty (30) days
123+of the transfer. The written agreement shall contain the name,
124+address and taxpayer identification number of the parties to the
29125
30-SECTION 1. AMENDATORY 68 O.S. 2021, Section 3604, is
31-amended to read as follows:
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33-Section 3604. A. Except as otherwise provi ded in subsection I
34-or subsection L of this section, an establis hment which meets the
35-qualifications specified in the Oklahoma Quality Jobs Program Act
36-may receive quarterly incentive payments for a ten-year period from
37-the Oklahoma Tax Commission pursuant to the provisions of the
38-Oklahoma Quality Jobs Program Act; pro vided, such an establishment
39-defined or classified in the NAICS Manual under U.S. Industry No.
40-711211 (2007 version) may receive quarterly incentive payments for a
41-fifteen-year thirty-year period. The amount of such payments shall
42-be equal to the net bene fit rate multiplied by the actual gross
43-payroll of new direct jobs for a calendar quarter as verified b y the
44-Oklahoma Employment Security Commi ssion. For an establishment
45-defined or classifie d in the NAICS Manual under U.S. Industry No.
46-711211 (2007 version) that entered into a contract pursuant to the
151+transfer, the amount of credit being transferred, the year the
152+credit was originally allowed to the transferring person a nd the tax
153+year or years for which the credit may be claimed. The Tax
154+Commission shall promulgate rules to permit verification of the
155+timeliness of a tax credit claimed upon a tax return pursuant to
156+this subsection but shall not promulgate any rules which unduly
157+restrict or hinder the transfers of such tax credit. The Department
158+of Transportation shall promulgate rules to permit verification of
159+the eligibility of an eligible taxpayer's expenditures for the
160+purpose of claiming the credit. The rules shall provide for the
161+approval of qualified railroad reconstruction or replacement
162+expenditures prior to commencement of a project and provide a
163+certificate of verification upon completion of a project that uses
164+qualified railroad reconstruction or replacement e xpenditures. The
165+certificate of verification shall satisfy all requirements of the
166+Tax Commission pertaining to the eligibility of the person claiming
167+the credit.
168+D. Any credits allowed pursuant to the provisions of subsection
169+A of this section but not u sed in any tax year may be carried over
170+in order to each of the five (5) years following the year of
171+qualification.
172+E. As used in this section:
47173
48-ENR. S. B. NO. 604 Page 2
49-Oklahoma Quality Jobs Program Act w ith the Oklahoma Department of
50-Commerce before the effective date of this act :
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51198
52-1. The contract shall be ex tended from fifteen (15) years to
53-thirty (30) years; and
199+1. "Class II and Class III railroad" means a railroad that is
200+classified by the United States Surface Transpor tation Board as a
201+Class II or Class III railroad;
202+2. "Eligible taxpayer" means any Class II or Class III
203+railroad; and
204+3. "Qualified railroad reconstruct ion or replacement
205+expenditures" means expenditures for:
206+a. track maintenance, natural disasters, and
207+reconstruction or replacement of railroad
208+infrastructure including track, roadbed, crossings,
209+bridges, industrial leads and track -related structures
210+owned or leased by a Class II or Class III railroad as
211+of January 1, 2006, or
212+b. new construction of indus trial leads, switches, spurs
213+and sidings and extensions of existing sidings by a
214+Class II or Class III railroad.
215+F. The total amount of credits authorized by this section used
216+to offset tax shall be adjusted annually to limit the annual amount
217+of credits to Two Million Dollars ($2,000,000.00) for tax years 2018
218+and 2019 and Five Million Dollars ($5,000,000.00) for tax year 2020
219+and all subsequent tax years. The Tax Commission shall annually
220+calculate and publish a percentage by which the credits authorize d
221+by this section shall be reduced so the total amount of credits used
222+to offset tax does not exceed the applicable annual limit. The
54223
55-2. The extension shall not include additional money awarded but
56-shall allow for payments to continue for the thirty-year period, or
57-until the net benefit for the new direct jobs for the original
58-contract has been fully paid out as calculated based upon the
59-original application .
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61-B. In order to receive incentive payments, an establishment
62-shall apply to the Oklahoma Department of Com merce. The application
63-shall be on a form prescribed by the Depart ment and shall contain
64-such information as may be required by the Department to determine
65-if the applicant is qualified. An establishment may apply for an
66-effective date for a project, whi ch shall not be more than twenty-
67-four (24) months from the date the application is submitted to the
68-Department.
69-
70-C. Except as otherwise provide d by subsection D or E of this
71-section, in order to qualify to receive such payments, the
72-establishment applying shall be required to:
73-
74-1. Be engaged in a basic industry;
75-
76-2. Have an annual gross payroll for new dire ct jobs projected
77-by the Department to e qual or exceed Two Million Five Hundred
78-Thousand Dollars ($2,500,000.00) within three (3) years of the first
79-complete calendar quarter following the start date; and
80-
81-3. Have a number of full-time-equivalent employees subject to
82-the tax imposed by Section 2 355 of this title and working a n annual
83-average of thirty (30) or more hours per week in new direct jobs
84-located in this state equal to or in excess of eighty percent (80%)
85-of the total number of new direct jobs.
86-
87-D. In order to qualify to receive incentiv e payments as
88-authorized by the Oklahoma Quality Jobs Program Act, an
89-establishment engaged in an activity descri bed under:
249+formula to be used f or the percentage adjustment shall be the
250+applicable annual limit divided by the credits claimed in t he second
251+preceding year.
252+G. Pursuant to subsection F of this section, in the event the
253+total tax credits authorized by this section exceed the annual
254+applicable limit in any calendar year, the Tax Commission shall
255+permit any excess over the annual applic able limit but shall factor
256+such excess into the percentage adjustment formula for subsequent
257+years.
258+SECTION 2. This act shall become effe ctive November 1, 2023."
259+Passed the House of Representatives the 25th day of April, 2023.
90260
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92-ENR. S. B. NO. 604 Page 3
93-1. Industry Group Nos. 3111 through 3119 of the N AICS Manual
94-shall be required to:
95-
96-a. have an annual gross payroll for new direct j obs
97-projected by the Department to equal or exceed One
98-Million Five Hundred Thousand Dollars ($1,500,000.00)
99-within three (3) years of the first complete calendar
100-quarter following the start date and make, or which
101-will make within one (1) year, at least s eventy-five
102-percent (75%) of its total sales, as determined by the
103-Incentive Approval Committee pursuant to the
104-provisions of subsection B of Section 3603 of this
105-title, to out-of-state customers or buyers, to in -
106-state customers or buyers if the product or service is
107-resold by the purchaser to an out-of-state customer or
108-buyer for ultimate use, or to the federal gove rnment,
109-unless the annual gross payroll equals or exceeds Two
110-Million Five Hundred Thousand Dollars ($2 ,500,000.00)
111-in which case the requireme nts for purchase of output
112-provided by this subparagraph shall not apply, and
113-
114-b. have a number of full -time-equivalent employees
115-working an average of thirty (30) or more hours per
116-week in new direct jobs equal to or in excess of
117-eighty percent (80%) of th e total number of new direct
118-jobs; and
119-
120-2. Division (4) of subparagraph a of paragraph 1 of subsection
121-A of Section 3603 of this title, shall be required to:
122-
123-a. have an annual gross payroll for new direct jobs
124-projected by the Department to equal or exceed One
125-Million Five Hundred Thous and Dollars ($1,500,000.00)
126-within three (3) years of the first complete calendar
127-quarter following the start date, and
128-
129-b. have a number of full-time-equivalent employees
130-working an average of thirty (30) or more hours per
131-week in new direct jobs equal to or in excess of
132-eighty percent (80%) of the total number of new direct
133-jobs.
134262
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137-E. 1. An establishment which locates its principal business
138-activity within a site consisting of at least ten (10) acres which:
139264
140-a. is a federal Superfund removal site,
141-
142-b. is listed on the National Priorities List established
143-under Section 9605 of Title 42 of the United States
144-Code,
145-
146-c. has been formally deferred to the state in lieu of
147-listing on the National P riorities List, or
148-
149-d. has been determined by the Department of Environm ental
150-Quality to be contaminated by any substance regulated
151-by a federal or state statute governing environmental
152-conditions for real property pursuant to an order of
153-the Department of Environmental Quality,
154-
155-shall qualify for incentive payments irrespectiv e of its actual
156-gross payroll or the number of full -time-equivalent employees
157-engaged in new direct jobs.
158-
159-2. In order to qualify for the incentive payments pursuant to
160-this subsection, the establishment shall conduct the act ivity
161-resulting in at least fif ty percent (50%) of its Oklahoma taxable
162-income or adjusted gross income, as deter mined under Section 2358 of
163-this title, whether from the sale of products or services or both
164-products and services, at the physical location w hich has been
165-determined not to comply with the federal or state statutes
166-described in this subsection with respe ct to environmental
167-conditions for real p roperty. The establishment shall be subject to
168-all other requirements of the Oklahoma Quality Jobs Pr ogram Act
169-other than the exempt ions provided by this subsection.
170-
171-3. In order to qualify for the incentive paymen ts pursuant to
172-this subsection, the entit y shall obtain from the Department of
173-Environmental Quality a letter of concurrence that:
174-
175-a. the site designated by the entity does m eet one or
176-more of the requirements listed in paragraph 1 of this
177-subsection, and
265+Presiding Officer of the House of
266+ Representatives
178267
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181-b. the site is being or has been remediat ed to a level
182-which is consistent with the intended use of the
183-property.
184-
185-In making its determination, the Department of Environmental
186-Quality may rely on existing data and information available to it,
187-but may also require the applying entity to provide add itional data
188-and information, as necessary.
189-
190-4. If authorized by the Department of Environmental Qualit y
191-pursuant to paragraph 3 of t his subsection, the entity may utilize a
192-remediated portion of the property for its intended purpose prior to
193-remediation of the remainder of the site, and shall qualify for
194-incentive payments based on employment associated wi th the portion
195-of the site.
196-
197-F. Except as otherwise provided by subsection G of this
198-section, for applications su bmitted on and after June 4, 2003, in
199-order to qualify to receive incentive payments as authorized by the
200-Oklahoma Quality Jobs Program Act, in addition to other
201-qualifications specified herein, an establishment shall be required
202-to pay new direct jobs an average annualized wage which equals or
203-exceeds:
204-
205-1. One hundred ten percent (110%) of the average cou nty wage as
206-determined by the Department of Commerce based on the most recent
207-U.S. Department of Commerce data for the county in which the new
208-direct jobs are located. For purposes of this para graph, health
209-care premiums paid by the applicant for individu als in new direct
210-jobs shall be included in the annualized wage; or
211-
212-2. One hundred percent (100%) of the average county wage as
213-that percentage is determ ined by the Department of Commerce based
214-upon the most recent U.S. Department of Commerce data for the county
215-in which the new jobs are located . For purposes of this paragr aph,
216-health care premiums paid by the applicant for individuals in new
217-direct jobs shall not be included in the annualized wage.
218-
219-Provided, no average wage requirement shall exceed Twent y-five
220-Thousand Dollars ($25,000.00), in any county. This maximum wage
221-threshold shall be indexed and modified from time to time based on
222-the latest Consumer Price Index year-to-date percent change release
223-
224-ENR. S. B. NO. 604 Page 6
225-as of the date of the annual average county wage data release from
226-the Bureau of Economic Analysis of the U.S. Departmen t of Commerce.
227-
228-G. 1. As used in this subsection, “opportunity zone” means one
229-or more census tracts in which, according to the most recent Federal
230-Decennial Census, at least thirty pe rcent (30%) of the residents
231-have annual gross household incomes from a ll sources below the
232-poverty guidelines established by the U.S. Department of Healt h and
233-Human Services. An establishmen t which is otherwise qualified to
234-receive incentive payments and which locates its principal business
235-activity in an opportunity zone s hall not be subject to the
236-requirements of subsection F of this section.
237-
238-2. As used in this subsection:
239-
240-a. “negative economic event” means:
241-
242-(1) a man-made disaster or natural disaster as
243-defined in Section 683.3 of Title 63 o f the
244-Oklahoma Statutes, resul ting in the loss of a
245-significant number of jobs within a particular
246-county of this state, or
247-
248-(2) an economic circumstance in which a significant
249-number of jobs within a particular coun ty of this
250-state have been lost due to an establishment
251-changing its structure, consolidating with
252-another establishment, closing or moving all or
253-part of its operations out of this state, and
254-
255-b. “significant number of jobs ” means Local Area
256-Unemployment Statistics (LAUS) data, as determined by
257-the Bureau of Labor Statistics, for a county which are
258-equal to or in excess of five percent (5%) of the
259-total amount of Local Area Unemployment Statistics
260-(LAUS) data for that county for the calendar year, or
261-most recent twelve-month period in which employ ment is
262-measured, preceding th e event.
263-
264-An establishment which is otherwise qualified to receive
265-incentive payments and which locates in a county in which a negative
266-economic event has occurred within the eighteen -month period
267-
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269-preceding the start date shall not be subject to the require ments of
270-subsection F of this section; provided, an establishment shall not
271-be eligible to receive incentive payments based upon a negative
272-economic event with respect to jobs that are transferred from one
273-county of this state to another.
274-
275-H. The Department shall determine if the applicant is qualified
276-to receive incentive payments.
277-
278-I. If the applicant is determined to be qualified by the
279-Department and is not subject to the provisions of subparagraph d of
280-paragraph 7 of subse ction A of Section 3603 of thi s title, the
281-Department shall conduct a cost/benefit analysis to determine the
282-estimated net direct state benefits and the net benefit rate
283-applicable for a ten -year period beginning wi th the first complete
284-calendar quarter following the start date and to estimate the amount
285-of gross payroll for a ten -year period beginning with the firs t
286-complete calendar quarter following the start date or for a fifteen-
287-year thirty-year period for an establishment defined or classified
288-in the NAICS Manual under U.S. Industry No. 711211 (2007 version).
289-In conducting such cost/benefit analysis, the Depar tment shall
290-consider quantitative factors, such as th e anticipated level of new
291-tax revenues to the sta te along with the added cost to the state of
292-providing services, and such other criteria as deemed appropriate by
293-the Department. In no event shall ince ntive payments, cumulatively,
294-exceed the estimated ne t direct state benefits, except for
295-applicants subject to the provisions of subparagraph d of paragraph
296-7 of subsection A of Section 3603 of this title.
297-
298-J. Upon approval of such an application, the Dep artment shall
299-notify the Tax Commission and shall prov ide it with a copy of the
300-contract and the results of the cost/benefit analysis. The Tax
301-Commission may require the qualified establishment to submit such
302-additional information as may be necessary to administer the
303-provisions of the Oklahoma Quality Jobs Program Act. The approved
304-establishment shall fi le quarterly claims with the Tax Commission
305-and shall continue to file such quarterly claims during the ten -year
306-incentive period to show its continued eligibility for incentive
307-payments, as provided in Sec tion 3606 of this title, or until it is
308-no longer qualified to receive incentive payments. The
309-establishment may be audited by the Tax Commission to verify such
310-eligibility. Once the establishment is approved, an agreement shall
311-
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313-be deemed to exist betwee n the establishment and the State of
314-Oklahoma, requiring the continued incentive payment to be made as
315-long as the establishment retains its eligibility as defined in and
316-established pursuant to this se ction and Sections 3603 and 3606 of
317-this title and within the limitations contained in the Oklahoma
318-Quality Jobs Program Act, which existed at the time of su ch
319-approval. An establishment described in this subsection shall be
320-required to repay all incentiv e payments received under the Oklahoma
321-Quality Jobs Program Act if the establishment is determined by th e
322-Oklahoma Tax Commission to no longer have business operations in the
323-state within three (3) years from the beginning of the calendar
324-quarter for which the first incentive payment claim is filed.
325-
326-K. A municipality with a population of less than one hundr ed
327-thousand (100,000) persons in which an establishme nt eligible to
328-receive quarterly incentive payments pursuant to the provisions of
329-this section is located may file a claim with the Tax Commission for
330-up to twenty-five percent (25%) of the amount of suc h payment. The
331-amount of such claim shall not exceed amounts paid by the
332-municipality for direct costs of municipal infrastructure
333-improvements to provide water and sewer service to the
334-establishment. Such claim shall not be approved by the Tax
335-Commission unless the municipality and the establishment have
336-entered into a written agreement for such claims to be filed by the
337-municipality prior to submissi on of the application of the
338-establishment pursuant to the provisions of this section. If such
339-claim is approved, the amount of the payment to the establishm ent
340-made pursuant to the provisions of Section 3606 of this title shall
341-be reduced by the amount o f the approved claim by the municipality
342-and the Tax Commission shall issue a warrant to the municipality in
343-the amount of the approved claim in the same mann er as warrants are
344-issued to qualifying establishments.
345-
346-L. For any contract executed by an estab lishment on or after
347-the effective date of this act August 2, 2018, five percent (5%) of
348-the quarterly incentive payment amount shall be transferred by the
349-Oklahoma Tax Commission to the Oklahoma Quick Action Closing Fund.
350-
351-SECTION 2. AMENDATORY 68 O.S. 2021, Section 3606, is
352-amended to read as follows:
269+Passed the Senate the ____ day of _______ ___, 2023.
353270
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356-Section 3606. A. As soon as practicable after the end of the
357-first complete calendar quarter followin g the start date, the
358-establishment shall file a claim for the payment with t he Oklahoma
359-Tax Commission and shall specify the actual number and gross payroll
360-of new direct jobs for the establishment for the calendar quarter.
361-The Tax Commission shall verif y the actual gross payroll for new
362-direct jobs for the establishment for such calendar quarter. If the
363-Tax Commission is not able to provide such verification utilizing
364-all available resources, the Tax Commission may request such
365-additional information fr om the establishment as may be necessary or
366-may request the establishment to revise its claim. An establishment
367-may file for an extension of the initial filing date with the
368-Oklahoma Department of Commerce. Any such extension shall be based
369-solely upon an extraordinary adverse business circumstance which
370-prevented the establishme nt from hiring the new direct jobs as
371-projected. If an establishment fails to file claims as required by
372-this section, it shall forfeit the right to receive any incentive
373-payments after three (3) years from the start date. If an
374-establishment has filed a t least one claim pursuant to this section
375-but fails to file another claim within two (2) years of the most
376-recent claim, the Tax Commission, after consulting with the
377-Department of Commerce, may dismiss the establishment fro m the
378-program, forfeiting the e stablishment’s right to receive incentive
379-payments based on that contract.
380-
381-B. 1. Except as otherwise provi ded in paragraph 2 of this
382-subsection, if the actual verified gross pay roll for four (4)
383-consecutive calendar quarter s does not equal or exceed the
384-applicable total required by Section 3604 of this title within three
385-(3) years of the start date, or does no t equal or exceed the
386-applicable total required by Section 3604 of this title at any other
387-time during the ten-year period after the start date or during the
388-fifteen-year thirty-year period after the start date for
389-establishments defined or classified in t he NAICS Manual under U.S.
390-Industry No. 711211 (2007 version), the ince ntive payments shall not
391-be made and shall not be resumed until such time as the actual
392-verified gross payroll equals or exceeds the amounts specified in
393-Section 3604 of this title. If an establishment fails to achieve
394-the required gross payroll within th ree (3) years of the start date,
395-the establishment shall not make a new or r enewal application for
396-incentive payments authorized pursuant to the Oklahoma Quality Jobs
397-Program Act for a period of twelve (12) months from the last day of
398-
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400-the last month of the three-year period during which the required
401-gross payroll amount was not ac hieved.
402-
403-2. Any establishment which does not meet the quarterly payroll
404-requirements provided pursuant to par agraph 1 of this subsection
405-during the time period which begins on Apri l 1, 2020, and ends on
406-June 30, 2021, shall co ntinue to receive incentive p ayments and
407-shall be exempt from the prescribed limitations.
408-
409-C. If the average annualized wage required for a n establishment
410-does not equal or exceed the amount specified in paragr aph 1 or 2 of
411-subsection F of Section 3604 of this title during any calend ar
412-quarter, the incentive payments shall not be made and shall not be
413-resumed until such time as such requireme nts are met.
414-
415-D. In no event shall incentive payments, cumulatively, ex ceed
416-the estimated net direct state benefits, except for establishments
417-subject to the provisions of subparagraph d of paragraph 7 of
418-subsection A of Section 3603 of this title.
419-
420-E. An establishment that has qualified pursuant to Section 3604
421-of this title may receive payments only in accordance with the
422-provisions of the law under which it initially applied and was
423-approved. If an establishment that is receiving incentive payments
424-expands, it may apply for additional incentive payments based on the
425-gross payroll anticipated from the expansion only, p ursuant to
426-Section 3604 of this title. Provided, an establishment which has
427-suffered an extraordinary adverse business circumstance, as
428-certified by the Incentive Approval Committee, may be allowed to
429-voluntarily withdraw from the Oklahoma Quality Jobs Pr ogram, repay
430-to the Tax Commission the total amount of incentive payments
431-received pursuant to the provisions of this section, plus interes t
432-at the rate specified in Section 727.1 of Title 12 of the Oklahoma
433-Statutes, and reapply to the Department for a ne w incentive contract
434-if the establishment qualifies pursuant to the provisions of the
435-Oklahoma Quality Jobs Program Act. Any funds receive d by the Tax
436-Commission pursuant to the provisions of this subsection s hall be
437-apportioned in the manner that income tax revenues are apportion ed.
438-
439-F. An establishment that is receiving incentive payments may
440-not apply for additional incentive payments for any new projects
441-until twelve (12) quarters after receipt of the first incentive
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444-payment, or until the establishment ’s actual verified gross payroll
445-for new direct jobs equals or exceeds Two Million Five Hundred
446-Thousand Dollars ($2,500,000.00) during any four consecutive-
447-calendar-quarter period, whichever comes first. Afte r meeting the
448-requirements of this subsection, an establishment may app ly for
449-additional incentive payments based upon the gross payroll
450-anticipated from an expansion only.
451-
452-G. As soon as practicable after verification of the actual
453-gross payroll as requir ed by this section and except as otherwise
454-provided by subsection K of Section 3604 of this title, the Tax
455-Commission shall issue a warrant to the establishment in the amount
456-of the net benefit rate multiplied by the actual gross payroll as
457-determined pursuant to subsection A of this section for the c alendar
458-quarter.
459-
460-SECTION 3. This act shall become effective November 1, 2023.
461-
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464-Passed the Senate the 26th day of May, 2023.
465272
466273
467274
468275 Presiding Officer of the Senate
469276
470277
471-Passed the House of Representatives the 26th day of May, 2023.
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303+ENGROSSED SENATE
304+BILL NO. 604 By: Rader of the Senate
305+
306+ and
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308+ Pfeiffer of the House
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315+An Act relating to tax compliance; amending 68 O.S.
316+2021, Sections 225 and 2385.3, wh ich relate to
317+appeals and withholding s; requiring certain hearings
318+to be confidential; requiring ce rtain information
319+submitted to court to be sealed and strictly
320+controlled; authorizing penalty for failure of an
321+employer to provide certain reconciliation; limiting
322+penalty; providing for colle ction of penalty;
323+amending 68 O.S. 2021, Section 3131, which relates to
324+resale return; requiring the county treasurer to
325+notify the Oklahoma Tax Commission within certain
326+period of certain information to determine exist ence
327+of lien; requiring the Commissio n to notify the
328+county treasurer within certain period of any
329+outstanding tax liabilities; requiring the county
330+treasurer to remit certain proceeds; requiring
331+remaining proceeds be held in certain fund; updating
332+statutory language; and providing an effective date.
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339+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
340+SECTION 3. AMENDATORY 68 O.S. 2021, Section 225, is
341+amended to read as follows:
342+Section 225. A. Any taxpayer aggri eved by any order, ruling,
343+or finding of the Oklahoma Tax Commission directly affecting the
344+taxpayer or aggrieved by a final order of the Tax Commission iss ued
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371+pursuant to subsection G of Section 221 of this title may appeal
372+therefrom directly to the Supre me Court of Oklahoma. Provided, any
373+taxpayer appealing from a final order of the Tax Commission
374+assessing a tax or an additional tax or denial of a claim f or refund
375+may opt to file an appeal in district court as p rovided in
376+subsection D of this section.
377+B. Within thirty (30) days after the date of mailing to the
378+taxpayer of the order, ruling, or finding compl ained of, the
379+taxpayer desiring to appeal shall:
380+1. File a petition in error in the office of the Clerk of the
381+Supreme Court; and
382+2. Request that the Tax Commission prepare for filing with the
383+Supreme Court, within t hirty (30) days, the record of the app eal,
384+certified by the Secretary of the Tax Commis sion, and consisting of
385+any citations, findings, judgments , motions, orders, pleadings, and
386+rulings, together with a transcript of all ev idence introduced at
387+any hearing relative thereto, or such portion of such citations,
388+findings, judgments, motions, ord ers, pleadings, rulings, and
389+evidence as the appealing part ies and the Tax Commission may agree
390+to be sufficient to present fully to the Court the questions
391+involved.
392+C. Upon request of the taxpayer, the Ta x Commission shall
393+furnish the taxpayer a copy of the proceedings had in connection
394+with the matter complain ed of.
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421+D. In lieu of an appeal to the Su preme Court, any taxpayer
422+aggrieved by a final order of the Tax Commi ssion assessing a tax or
423+an additional tax or denial of a claim for refund may opt to f ile an
424+appeal for a trial de novo in the district court of Oklahoma County
425+or the county in which th e taxpayer resides. If the amount in
426+dispute exceeds Ten Thousand Do llars ($10,000.00), the appeal shall
427+be heard by a district or associate district judge sitting without a
428+jury. If the amount in dispute does not exceed Ten Thousand Dollars
429+($10,000.00), the appeal may be heard by a specia l judge sitting
430+without a jury. An order resulting from a trial provi ded pursuant
431+to this subsection shall be appealab le directly to the Supreme Court
432+of Oklahoma by either part y. Such appeal shall be taken in the
433+manner and time provided by law for appe al to the Supreme Court from
434+the district court in civil actions. Upo n the filing of an appeal,
435+the order of the distr ict court shall be superseded and neither
436+party shall be required to give bond. The provisions of t his
437+subsection shall be applicable fo r tax periods beginning after th e
438+effective date of this act. Provide d, if the order applies to
439+multiple tax periods w hich begin before and after the effective date
440+of this act, the appeal provided by this subsection s hall be
441+available to the aggrieved ta xpayer.
442+E. If the appeal is fro m an order of the Tax Commission or a
443+district court denying a refund of taxes previous ly paid and if upon
444+final determination of the appeal, the order denying the refund is
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471+reversed or modified, the taxes previously paid, t ogether with
472+interest thereon from the date of the filing of the petit ion in
473+error at the rate provided in subsection A of Section 217 of this
474+title, shall be refunded to the tax payer by the Tax Commission.
475+F. Such refunds and interest thereon shall be pa id by the Tax
476+Commission out of monies in the Tax Commission clearing account from
477+subsequent collections from the same source as the original tax
478+assessment, provided that in th e event there are insufficient funds
479+for refunds from subsequent collections f rom the same source, the
480+refund shall be paid by the Tax Commission fr om monies appropriated
481+by the Legislature to the special refund reserve account for such
482+purposes as hereinafter provided. There is hereby created w ithin
483+the official depository of the State Treasury an agency special
484+account for the Tax Commission for th e purpose of making such
485+refunds as may be requir ed under this section, not otherwise
486+provided. This accoun t shall consist of monies appropriated by the
487+Legislature for the purpose of m aking refunds under this section .
488+G. If the appeal be from an order, judgment, finding, or ruling
489+of the Tax Commissio n other than one assessing a tax and from which
490+a right of appeal is not otherwise specifically prov ided for in this
491+article the Uniform Tax Procedure Code, any aggrieve d taxpayer may
492+appeal from that order, judgment, finding, or rul ing as provided in
493+this section. The filing of such an appeal shall supersede the
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520+effect of such order, judgment, ruling, or finding of the Tax
521+Commission .
522+H. This section shall be construe d to provide to the taxpayer a
523+legal remedy by action at law in any case where a tax, o r the method
524+of collection or enforcement thereof, or any o rder, ruling, finding,
525+or judgment of the Tax Commission is complained of, or is sought to
526+be enjoined in any action in any court of this state or t he United
527+States of America.
528+I. All hearings held in proceedings pursuant to this section
529+shall be confidential and shall be held in closed court wi thout
530+admittance of any person other than interested parties, their
531+counsel, and employees of the Oklahoma Tax Commission and its
532+counsel. Confidential information filed with or submitted to the
533+Supreme Court or district co urt in conjunction with any proc eeding
534+pursuant to this section shall not constitute a public record and
535+shall be sealed by the court. Access to confidential information
536+shall be strictly controlled.
537+SECTION 4. AMENDATORY 68 O.S. 2021, Section 2385.3, is
538+amended to read as follows:
539+Section 2385.3. A. Every employer required to deduct and
540+withhold taxes under Secti on 2385.2 of this title shall pay over the
541+amount so withheld as taxes to the Ok lahoma Tax Commission pursuant
542+to the schedule outlined in paragraphs 1 through 3 of this
543+subsection, and shall file a quarterly return in such form as the
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570+Tax Commission shall prescribe on or before the twentieth day of the
571+month following the close of ea ch calendar quarter:
572+1. Every employer required to remit federal wit hholding under
573+the Federal Semiweekly Deposit Schedule shall pay over the amount so
574+withheld under subsecti on A of this section on the same dates as
575+required under the Federal Semiweekly Deposit Schedule for federal
576+withholding taxes;
577+2. Every employer ow ing an average of Five Hundred Dollar s
578+($500.00) or more per quarter in taxes in the previous fiscal year
579+who is not subject to the provisions of paragraph 1 of this
580+subsection shall pay over the amount so withheld on or befo re the
581+twentieth day of each su cceeding month; and
582+3. Every employer owing an average of less than Five Hundred
583+Dollars ($500.00) per qua rter in taxes in the previous fiscal year
584+shall pay over the amount so withheld on or before the twentieth day
585+of the month following the close of ea ch succeeding quarterly
586+period.
587+B. Every employer subject to the pro visions of paragraph 1 of
588+subsection A of this section shall file returns pursuant to the Tax
589+Commission’s electronic data interchange program.
590+C. Every employer required under Section 2 385.2 of this title
591+to deduct and withhold a tax from the wages paid an employee shall,
592+as to the total wages paid to each employee during the calendar
593+year, furnish to such employee, on or before January 31 of the
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620+succeeding year, a written statement show ing the name of the
621+employer, the name of the employee and the employ ee’s Social
622+Security account number, i f any, the total amount of wages subject
623+to taxation, and the total amount deduc ted and withheld as tax and
624+such other information as the Tax Commiss ion may require. If an
625+employee’s employment is terminated before th e close of a calendar
626+year, the written statement must be furnished within thirty (30)
627+days of the date of which the l ast payment of wages is made.
628+D. Every employer required under Secti on 2385.2 of this title
629+to deduct and withhold a tax from the wages p aid an employee shall
630+furnish to the Oklahoma Tax Commission, on or before January 31 of
631+the succeeding year, an annua l reconciliation and such other
632+information as the Tax Commission may require pursuant to the Tax
633+Commission’s electronic data interchange program. Failure of an
634+employer to provide an annual reconciliation within thirty (30) days
635+of the due date may result in a penalty to be imposed on the
636+employer in an amount not to exc eed One Thousand Dollars
637+($1,000.00). The penalty may be collected i n the same manner as
638+provided by law for collection of delinquent taxes.
639+E. If the Tax Commission, in any case, has justifiable reason
640+to believe that the collection of the tax pro vided for in Section
641+2385.2 of this title i s in jeopardy, the Tax Commissio n may require
642+the employer to file a r eturn and pay the tax at any time.
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669+F. Any sum or sums withheld in accordance with the provisions
670+of Section 2385.2 of this title shall be deem ed to be held in trust
671+for the State of Oklahoma this state, and, as trustee, the employer
672+shall have a fiduciary duty to the State of Oklahoma this state in
673+regard to such sums and shall be subject to the trust laws of this
674+state.
675+G. If any employer fails to w ithhold the tax required to be
676+withheld by Section 2385.2 of this tit le and thereafter the income
677+tax is paid by the employee, the tax so required to be withh eld
678+shall not be collected from the employer but such employer shal l not
679+be relieved from the liab ility for penalties or interest other wise
680+applicable because of such failure to withhold the tax.
681+H. Every person making payments of winnings subject to
682+withholding shall, for each monthly period, on or before the
683+twentieth day of the month following the payment of such winnings
684+pay over to the Tax Commission the amounts s o withheld, and shall
685+file a return, in a form as prescribed by the Tax Commission.
686+I. Every person making payments of winnings subject to
687+withholding shall furnish to each recipient on or before January 31
688+of the succeeding year a written statement in a form as prescribed
689+by the Tax Commission. Every person making such reports shall also
690+furnish a copy of such report to the Tax Commission in a manner and
691+at a time as shall be prescribed by the Tax Commission.
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718+SECTION 5. AMENDATORY 68 O.S. 2021, Section 3131, is
719+amended to read as follows:
720+Section 3131. A. Within thirty (30) days after resale of
721+property, the county treasurer shal l file in the office of the
722+county clerk a return, and retain a copy thereof in the county
723+treasurer’s office, which shall show or include , as appropriate:
724+1. Each tract or parcel of real estate so sold;
725+2. The date upon which it was resold;
726+3. The name of the purchaser;
727+4. The price paid therefor;
728+5. A copy of the no tice of such resale with an affi davit of its
729+publication or posting; a nd
730+6. The complete minutes of sale, and that the same was
731+adjourned from day to day until the sale was completed.
732+Such notice and return shall be p resumptive evidence of the
733+regularity, legality, and validity of all t he official acts leading
734+up to and constituting such resale. Within such thirty (30) days,
735+the county treasurer shall execute, acknowledge , and deliver to the
736+purchaser or the purchaser ’s assigns, or to the board of county
737+commissioners where such propert y has been bid off in the name of
738+the county, a deed conveying the real estate thus resold. The
739+issuance of such deed shall effect the cancellation and set ting
740+aside of all delinquent t axes, assessments, penalties, and costs
741+previously assessed or existin g against the real estate, and of all
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768+outstanding individual and county tax sale certificates, and shall
769+vest in the grantee an absolute and perfect title i n fee simple to
770+the real estate, subject to all claims which the sta te may have had
771+on the real estate for taxes or other liens or encumbr ances;
772+provided, that all such claims which the state, municipality , or
773+both the state and the municipality may have h ad on the real estate
774+for taxes or other liens or encumbrances shall be canceled and
775+extinguished with respect to any deed conveying title to the board
776+of county commissioners where such property was bid off in the name
777+of the county. Twelve (12) months a fter the deed shall have been
778+filed for record in the county clerk’s office, no action shall be
779+commenced to avoid or set aside the deed. Provided, that persons
780+under legal disability shall have one (1) year after removal of such
781+disability within which t o redeem the real estate.
782+B. Any number of lots or tracts of land may be included in one
783+deed, for which deed the county treasurer shall collect from the
784+purchaser the fees provided for in Section 43 of Title 28 of the
785+Oklahoma Statutes. The county treas urer shall also charge and
786+collect from the purchaser at such sale an amount in addition to the
787+bid placed on such real estate, sufficient to pay all expenses
788+incurred by the county in preparing, listing , and advertising the
789+lot or tract purchased by such bidder, which sums shall be cr edited
790+and paid into the resale property fund hereinafter provided, to be
791+used to defray to that extent the costs of resale.
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818+C. When any tract or lot of land sells for more than the taxes,
819+penalties, interest, and cost due thereon, the excess shall be hel d
820+in a separate fund the county treasurer shall notify the Oklahoma
821+Tax Commission within thirty (30) days a fter the resale and shall
822+include in the notification all information necessary for the
823+Commission to determine whethe r a tax lien exists on the s ubject
824+property.
825+D. Within sixty (60) days of receipt of the notificati on
826+described in Subsection C of this section, the Commission shall
827+provide notice to the county treasurer of any outstanding tax
828+liabilities, including tax, penalty, and interest, attach ed to each
829+tract or lot of land, regar dless of whether a tax warrant h as been
830+filed. Upon timely notice of a liability from the Commission, the
831+county treasurer shall remi t to the Commission the amount of the
832+outstanding tax liabilities or the excess proce eds, whichever is
833+less. Any remaining proceeds shall be held in the separate fund for
834+the record owner of such land, as shown by the county records as of
835+the date the county resale begins, to be withdrawn any time within
836+one (1) year. No assignment of th is right to excess proceeds shall
837+be valid which occurs on or after t he date on which the county
838+resale began. At the end of one (1) year, if such money has not
839+been withdrawn or collected from the county, it shall be credited to
840+the county resale propert y fund.
841+SECTION 6. This act shall become effective N ovember 1, 2023.
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868+Passed the Senate the 2nd day of March, 2023.
869+
870+
871+
872+ Presiding Officer of the Senate
873+
874+
875+Passed the House of Representatives the ____ day of __________,
876+2023.
472877
473878
474879
475880 Presiding Officer of the House
476881 of Representatives
477882
478-OFFICE OF THE GOVERNOR
479-Received by the Office of the Governor this _______ _____________
480-day of _________________ __, 20_______, at _______ o'clock _______ M.
481-By: _______________________________ __
482-Approved by the Governor of the State of Oklahoma this _________
483-day of ___________________, 20_______, at _______ o'clock _______ M.
484883
485- _________________________________
486- Governor of the State of Oklahoma
487-
488-
489-OFFICE OF THE SECRETARY OF STATE
490-Received by the Office of the Secretary of State this __ ________
491-day of __________________, 20 _______, at _______ o'clock _______ M.
492-By: _______________________________ __