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ENGROSSED SENATE
BILL NO. 608 By: Rader of the Senate
and
Pfeiffer of the House
An Act relating to the Oklahoma Tax Commission;
amending 68 O.S. 2021, Section s 212 and 1364, which
relate to licenses and permits; authorizing the
written protest of certain license and permi t refusal
within certain period; requiring notice for requested
hearing; limiting period for hearing request; making
language gender neutral; updating statutory la nguage;
and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 212, is
amended to read as follows:
Section 212. A. The Oklahoma Tax Commission is authorized to
cancel or to refuse the issuance, ext ension, or reinstatement of any
license, permit, or duplicate copy thereof, under the provisions of
any state tax law or oth er law, to any person, firm, or corporation
who shall be guilty of:
1. Violation of any of the provisions of this article;
2. Violation of the provisions of any state tax law;
3. Violation of the rules and regulations promulgated by the
Tax Commission for the administration and enfor cement of any state
tax law;
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4. Failure to observe or fulfill the conditions upon which the
license or permit was issued; or
5. Nonpayment of any delinquent tax or penalty.
B. Before any license, permit , or duplicate copy thereof may be
canceled, or the issuance, reinstatement, or ex tension thereof
refused, the Tax Commission shall give the owner of su ch license or
permit, or applicant therefor, twenty (20) days’ notice by
registered mail or certified mail with return receip t requested, of
a hearing before said the Tax Commission, grantin g said such person
an opportunity to show cau se why such action sh ould not be taken.
If the notice has been mailed as required by this section, failure
of the person to have received actual notice of the hearing shall
neither invalidate nor be grounds for inva lidating any action taken
at the hearing or pursuant to the h earing.
C. Within sixty (60) days of the date indicated on any notice
of refusal to issue, extend, or reinstate any license, permit , or
duplicate copy thereof, the applicant may file with the Tax
Commission a written protest signed by the applicant or the
authorized agent of the applicant, stating the reasons the license,
permit, or duplicate copy thereof should be issued and requesting an
administrative hearing. If a hearing is requested, the appl icant
shall be given at least ten (10) days’ notice of the hearing.
D. Upon the cancellation of any license, permit, or duplicate
copy thereof by the Tax Commission, all accrued taxes and penal ties,
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although said such taxes and penalties are not, at the ti me of the
cancellation, due and payable und er the terms of the state tax law
imposing or levying such tax or taxes, shall become due and payable
concurrently with the cancellation of such license, p ermit, or
duplicate copy thereof, and the licensee or perm ittee shall
forthwith make a report covering the period of time not covered by
preceding reports filed by said such person and ending with the date
of the cancellation and shall pay all such taxes and pen alties.
D. E. The Tax Commission may enter its orde r temporarily
suspending any license, permit , or duplicate copy thereof pending a
final hearing before it on the subject of the cancellation of such
license, permit, or duplicate copy thereof, and may give not ice of
such temporary suspension at the same ti me that notice of its
intention to cancel any licen se, permit, or duplicate copy or to
refuse the issuance, reinstatement , or extension thereof is given,
as provided by this section. After being given notice of any such
order of suspension, it shall be un lawful for any person to continue
to operate his or her business under any such suspended license,
permit, or duplicate copy thereof.
E. F. In the event any such person shall continue or threaten
to continue such unlawful operations after having received proper
notice of the suspension, cancellation, revocation , or refusal to
issue, extend, or reinstate his or her license, permit, or duplicate
copy thereof, upon complaint of the Tax Commission such person shall
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be enjoined from further operating or conduct ing such unlawful
business. In all cases where injunctio n proceedings are brought
under this article, the Commission shall not be required to furnish
bond, and where notice of suspension , cancellation, revocatio n, or
refusal to issue, extend, or reinstate any license, permit, or
duplicate copy thereof has been given in accordance with the
provisions of this section, no further notice shall be required
before the issuance of a temporary restraining order by the di strict
court.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1364, is
amended to read as follows:
Section 1364. Permits to do business.
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 title, shall be required to secur e
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 st ate. Each such person shall file with the
Tax Commission an application for a permit to engage in o r transact
business in this state, setting forth such information as the Tax
Commission may require. The application shall be signed by the
owner of the business or representative of the business ent ity and
as a natural person, and, in the case of a corpo ration, as a legally
constituted officer thereof.
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B. Upon receipt of an initial application, the Tax Commission
may issue a probationary permit effective f or six (6) months which
will automatically r enew for an additional thirty (30) months unless
the applicant receives written notification of the refusal of the
Commission to renew the permit. If the applicant receives a Within
twenty (20) days of the date of the written notification of the
notice of refusal, the applicant may r equest a hearing to show cau se
why the permit should be renewed. Upon receipt of a request for a
hearing, the Tax Commission shall set the matter for hearing and
give ten (10) days’ notice in writing of the time and place of t he
hearing. At the hearing, the applicant shall set fort h the
qualifications of the applicant for a permit and proof of compli ance
with all state tax laws.
C. Holders of a probationary permit as provided in sub section B
of this section shall not be permi tted to present the permit to
obtain a commercial license plate for their motor vehicle as
provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
D. Upon verification that the applicant is a Group Thre e
vendor, the Tax Commission may require suc h applicant to furnish a
surety bond or other security as the Commission may deem necessary
to secure payment of taxes under th is article, prior to issuance of
a permit for the place of business set forth in the application for
permit. Provided, the Tax C ommission is hereby authorize d to set
guidelines, by adoption of regulations, for the issuance of sales
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tax permits. Pursuant to said such guidelines the Tax Commission
may refuse to issue permits to any Group T hree vendors, or any class
of vendors included in the whole classificatio n of Group Three
vendors, if the Tax Commission determines that it is likely this
state will lose tax r evenue due to the difficulty of enforcing this
article for any reasons stated in subsection (T) paragraph 21 of
Section 1354 of this title.
E. A separate permit for each ad ditional 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 period of
three (3) years. The Tax Commission shall gra nt and issue to each
applicant a separate permit for each place of business in this
state, upon proper application therefor and verification ther eof by
the Tax Commission.
F. A permit is not assignable and shall be valid only for the
person in whose name it is issued and for the tran saction of
business at the place designated therein. The permit shall at all
times be conspicuously displayed at th e 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 requir ed by the laws of th is
state. Provided, if the location of the business is changed, such
person shall file with the Tax Commission an application for a
permit to engage in or transac t business at the new location. Upon
issuance of the permit to the new l ocation of such busi ness, no
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additional permit fee shall be due until the expiration of the
permit issued to the pre vious location of such business.
G. It shall be unlawful for any p erson coming within the class
designated as Group One or the class design ated as Group Three to
engage in or transact a business of reselling tangible personal
property or services within t his state unless a written permit or
permits shall have been issued to such person. Any person who
engages in a business subject to the pro visions of this sect ion
without a permit or permits, or after a permit has been suspended,
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 subseq uent violation hereo f shall be guilty
of a felony and punishable by a fine of not more than Five Thousand
Dollars ($5,000.00) or by a term of imprisonment in the State
Penitentiary custody of the Department o f Corrections for not more
than two (2) years, or both such fine and impriso nment.
H. Any person operating under a permit as provided in this
article shall, upon discontinuance of business by sale or othe rwise,
return such permit to the Tax Commission for cancellation, toge ther
with a remittance for any unpaid or accrued taxes. Failure to
surrender a permit and pay any and all accrued taxes will be
sufficient cause for the Tax Commission to refuse to issu e a permit
subsequently to such person to engage in or transact any ot her
business in this state. In the case of a sale of any business, the
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tax shall be deemed to be due on the sale of the fixture s and
equipment, and the Tax Commission shall not issue a permit to
continue or conduct the business to the purchaser until all tax
claims due the State of Oklahoma this state have been settled.
I. All permits issued under the p rovisions of this article
shall expire three (3) years from the date of issuance at the close
of business at each place or location of the business within this
state. No refund of the fee shall be made if the bu siness is
terminated prior to the expiration of the permit.
J. Whenever a holder of a permit fails to comply with any
provisions of this ar ticle, the Tax Commission, after giving ten
(10) twenty (20) 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 pe rmit, the permit to be renewed upon removal
of cause or causes of revo cation or suspension. However, if a
holder of a permit becomes delinquent for a period of three (3)
months or more in reporting or paying of any ta x due under this
article, any duly aut horized agent of the Tax Commission may remove
the permit from the tax payer’s premises and it shall be returned or
renewed only upon the filing of proper reports and payment of all
taxes due under this article.
K. Permits are not required of persons comin g within the
classification designated as Group Two. The Oklahoma Tax Commission
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shall issue a limited permit to Gro up Five vendors. The permit
shall be in such form as the Tax Commission may prescribe.
L. Nothing in this article shall be construed to a llow a permit
holder to purchase, tax exempt, anything for resale that the permit
holder is not regularly in the busi ness of reselling.
M. All monies received pursuant to is suance of such permits to
do business shall be paid to the State Treasurer and pla ced to the
credit of the General Revenue Fund of the State Treasury.
N. Notwithstanding the provisions of Section 20 5 of this title,
the Oklahoma Tax Commission is authorize d to release the following
information contained in the Master Sales and Use Tax F ile to
vendors:
1. Permit number;
2. Name in which permit is issued;
3. Name of business operation if different fr om ownership
(DBA);
4. Mailing address;
5. Business address;
6. Business class, North American Industr y Classification
System (NAICS), or Standard Industrial Code Classification (SIC);
and
7. Effective date and expiration or cancellation date of
permit.
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Release of such inform ation shall be limited to tax rem itters
for the express purpose of determining the validity of sales permits
presented as evidence of purchasers ’ sales tax resale status under
this Oklahoma Tax Code.
The provisions of this subsectio n shall be strictly interpreted
and shall not be construe d as permitting the disclosure of any other
information contained in the records and files of the Tax Commission
relating to sales tax or to any other taxe s.
This information may be provided on a sub scription basis, with
periodic updates, and sufficient fe e charged, not to exceed One
Hundred Fifty Dollars ($150.00) per year, to offset the
administrative costs of providing the list. All revenue received by
the Oklahoma Tax Commission from such fees sh all be deposited to the
credit of the Oklahoma Tax Commission Revolving Fund. No liability
whatsoever, civil or criminal, shall attach to any member of the Tax
Commission or any employ ee thereof for any error or omission in the
disclosure of information p ursuant to this subsection.
O. If the Tax Commission ent ers into the Streamlined Sales and
Use Tax Agreement under Section 1354.18 of this title, the Tax
Commission is authorized to pa rticipate in its online sal es and use
tax registration system and shall not require the payment of the
registration fees or othe r charges provided in this section from a
vendor who registers within the online system if the vendor has no
legal requirement to register.
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SECTION 3. This act shall become effective November 1, 2023.
Passed the Senate the 23rd 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