Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB608 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SB608 HFLR Page 1
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	3	+	ENGR. S. B. NO. 608 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 59th Legislature (2023)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 608 By: Rader of the Senate
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38	31		and
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40	33		Pfeiffer of the House
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45	38		An Act relating to the Oklahoma Tax Commission;
46	39		amending 68 O.S. 2021, Section s 212 and 1364, which
47	40		relate to licenses and permits; authorizing the
48	41		written protest of certain license and permi t refusal
49	42		within certain period; requiring notice for requested
50	43		hearing; limiting period for hearing request; making
51	44		language gender neutral; updating statutory la nguage;
52	45		and providing an effective date .
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57	50		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
58	51		SECTION 1. AMENDATORY 68 O.S. 2021, Section 212, is
59	52		amended to read as follows:
60	53		Section 212. A. The Oklahoma Tax Commission is authorized to
61	54		cancel or to refuse the issuance, ext ension, or reinstatement of any
62	55		license, permit, or duplicate copy thereof, under the provisions of
63	56		any state tax law or oth er law, to any person, firm, or corporation
64	57		who shall be guilty of:
65	58		1. Violation of any of the provisions of this article;
66	59		2. Violation of the provisions of any state tax law;
	60	+	3. Violation of the rules and regulations promulgated by the
	61	+	Tax Commission for the administration and enfor cement of any state
	62	+	tax law;
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68		-	SB608 HFLR Page 2
69		-	BOLD FACE denotes Committee Amendme nts. 1
	64	+	ENGR. S. B. NO. 608 Page 2 1
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94		-	3. Violation of the rules and regulations promulgated by the
95		-	Tax Commission for the administration and enfor cement of any state
96		-	tax law;
97	89		4. Failure to observe or fulfill the conditions upon which the
98	90		license or permit was issued; or
99	91		5. Nonpayment of any delinquent tax or penalty.
100	92		B. Before any license, permit , or duplicate copy thereof may be
101	93		canceled, or the issuance, reinstatement, or ex tension thereof
102	94		refused, the Tax Commission shall give the owner of su ch license or
103	95		permit, or applicant therefor, twenty (20) days’ notice by
104	96		registered mail or certified mail with return receip t requested, of
105	97		a hearing before said the Tax Commission, grantin g said such person
106	98		an opportunity to show cau se why such action sh ould not be taken.
107	99		If the notice has been mailed as required by this section, failure
108	100		of the person to have received actual notice of the hearing shall
109	101		neither invalidate nor be grounds for inva lidating any action taken
110	102		at the hearing or pursuant to the h earing.
111	103		C. Within sixty (60) days of the date indicated on any notice
112	104		of refusal to issue, extend, or reinstate any license, permit , or
113	105		duplicate copy thereof, the applicant may file with the Tax
114	106		Commission a written protest signed by the applicant or the
115	107		authorized agent of the applicant, stating the reasons the license,
116	108		permit, or duplicate copy thereof should be issued and requesting an
	109	+	administrative hearing. If a hearing is requested, the appl icant
	110	+	shall be given at least ten (10) days’ notice of the hearing.
	111	+	D. Upon the cancellation of any license, permit, or duplicate
	112	+	copy thereof by the Tax Commission, all accrued taxes and penal ties,
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118		-	SB608 HFLR Page 3
119		-	BOLD FACE denotes Committee Amendme nts. 1
	114	+	ENGR. S. B. NO. 608 Page 3 1
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144		-	administrative hearing. If a hearing is requested, the appl icant
145		-	shall be given at least ten (10) days’ notice of the hearing.
146		-	D. Upon the cancellation of any license, permit, or duplicate
147		-	copy thereof by the Tax Commission, all accrued taxes and penal ties,
148	139		although said such taxes and penalties are not, at the ti me of the
149	140		cancellation, due and payable und er the terms of the state tax law
150	141		imposing or levying such tax or taxes, shall become due and payable
151	142		concurrently with the cancellation of such license, p ermit, or
152	143		duplicate copy thereof, and the licensee or perm ittee shall
153	144		forthwith make a report covering the period of time not covered by
154	145		preceding reports filed by said such person and ending with the date
155	146		of the cancellation and shall pay all such taxes and pen alties.
156	147		D. E. The Tax Commission may enter its orde r temporarily
157	148		suspending any license, permit , or duplicate copy thereof pending a
158	149		final hearing before it on the subject of the cancellation of such
159	150		license, permit, or duplicate copy thereof, and may give not ice of
160	151		such temporary suspension at the same ti me that notice of its
161	152		intention to cancel any licen se, permit, or duplicate copy or to
162	153		refuse the issuance, reinstatement , or extension thereof is given,
163	154		as provided by this section. After being given notice of any such
164	155		order of suspension, it shall be un lawful for any person to continue
165	156		to operate his or her business under any such suspended license,
166	157		permit, or duplicate copy thereof.
	158	+	E. F. In the event any such person shall continue or threaten
	159	+	to continue such unlawful operations after having received proper
	160	+	notice of the suspension, cancellation, revocation , or refusal to
	161	+	issue, extend, or reinstate his or her license, permit, or duplicate
	162	+	copy thereof, upon complaint of the Tax Commission such person shall
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168		-	SB608 HFLR Page 4
169		-	BOLD FACE denotes Committee Amendme nts. 1
	164	+	ENGR. S. B. NO. 608 Page 4 1
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194		-	E. F. In the event any such person shall continue or threaten
195		-	to continue such unlawful operations after having received proper
196		-	notice of the suspension, cancellation, revocation , or refusal to
197		-	issue, extend, or reinstate his or her license, permit, or duplicate
198		-	copy thereof, upon complaint of the Tax Commission such person shall
199	189		be enjoined from further operating or conduct ing such unlawful
200	190		business. In all cases where injunctio n proceedings are brought
201	191		under this article, the Commission shall not be required to furnish
202	192		bond, and where notice of suspension , cancellation, revocatio n, or
203	193		refusal to issue, extend, or reinstate any license, permit, or
204	194		duplicate copy thereof has been given in accordance with the
205	195		provisions of this section, no further notice shall be required
206	196		before the issuance of a temporary restraining order by the di strict
207	197		court.
208	198		SECTION 2. AMENDATORY 68 O.S. 2021, Section 1364, is
209	199		amended to read as follows:
210	200		Section 1364. Permits to do business.
211	201		A. Every person desiring to engage in a business within this
212	202		state who would be designated as a Group One or Group Three vendor,
213	203		pursuant to Section 1363 of this title, shall be required to secur e
214	204		from the Oklahoma Tax Commission every three (3) years a written
215	205		permit for a fee of Twenty Dollars ($20.00) prior to engaging in
216	206		such business in this st ate. Each such person shall file with the
217	207		Tax Commission an application for a permit to engage in o r transact
	208	+	business in this state, setting forth such information as the Tax
	209	+	Commission may require. The application shall be signed by the
	210	+	owner of the business or representative of the business ent ity and
	211	+	as a natural person, and, in the case of a corpo ration, as a legally
	212	+	constituted officer thereof.
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219		-	SB608 HFLR Page 5
220		-	BOLD FACE denotes Committee Amendme nts. 1
	214	+	ENGR. S. B. NO. 608 Page 5 1
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245		-	business in this state, setting forth such information as the Tax
246		-	Commission may require. The application shall be signed by the
247		-	owner of the business or representative of the business ent ity and
248		-	as a natural person, and, in the case of a corpo ration, as a legally
249		-	constituted officer thereof.
250	239		B. Upon receipt of an initial application, the Tax Commission
251	240		may issue a probationary permit effective f or six (6) months which
252	241		will automatically r enew for an additional thirty (30) months unless
253	242		the applicant receives written notification of the refusal of the
254	243		Commission to renew the permit. If the applicant receives a Within
255	244		twenty (20) days of the date of the written notification of the
256	245		notice of refusal, the applicant may r equest a hearing to show cau se
257	246		why the permit should be renewed. Upon receipt of a request for a
258	247		hearing, the Tax Commission shall set the matter for hearing and
259	248		give ten (10) days’ notice in writing of the time and place of t he
260	249		hearing. At the hearing, the applicant shall set fort h the
261	250		qualifications of the applicant for a permit and proof of compli ance
262	251		with all state tax laws.
263	252		C. Holders of a probationary permit as provided in sub section B
264	253		of this section shall not be permi tted to present the permit to
265	254		obtain a commercial license plate for their motor vehicle as
266	255		provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
267	256		D. Upon verification that the applicant is a Group Thre e
268	257		vendor, the Tax Commission may require suc h applicant to furnish a
	258	+	surety bond or other security as the Commission may deem necessary
	259	+	to secure payment of taxes under th is article, prior to issuance of
	260	+	a permit for the place of business set forth in the application for
	261	+	permit. Provided, the Tax C ommission is hereby authorize d to set
	262	+	guidelines, by adoption of regulations, for the issuance of sales
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270		-	SB608 HFLR Page 6
271		-	BOLD FACE denotes Committee Amendme nts. 1
	264	+	ENGR. S. B. NO. 608 Page 6 1
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296		-	surety bond or other security as the Commission may deem necessary
297		-	to secure payment of taxes under th is article, prior to issuance of
298		-	a permit for the place of business set forth in the application for
299		-	permit. Provided, the Tax C ommission is hereby authorize d to set
300		-	guidelines, by adoption of regulations, for the issuance of sales
301	289		tax permits. Pursuant to said such guidelines the Tax Commission
302	290		may refuse to issue permits to any Group T hree vendors, or any class
303	291		of vendors included in the whole classificatio n of Group Three
304	292		vendors, if the Tax Commission determines that it is likely this
305	293		state will lose tax r evenue due to the difficulty of enforcing this
306	294		article for any reasons stated in subsection (T) paragraph 21 of
307	295		Section 1354 of this title.
308	296		E. A separate permit for each ad ditional place of business to
309	297		be operated must be obtained from the Tax Commission for a fee of
310	298		Ten Dollars ($10.00). Such permit shall be good for a period of
311	299		three (3) years. The Tax Commission shall gra nt and issue to each
312	300		applicant a separate permit for each place of business in this
313	301		state, upon proper application therefor and verification ther eof by
314	302		the Tax Commission.
315	303		F. A permit is not assignable and shall be valid only for the
316	304		person in whose name it is issued and for the tran saction of
317	305		business at the place designated therein. The permit shall at all
318	306		times be conspicuously displayed at th e place of business for which
319	307		issued in a position where it can be easily seen. The permit shall
	308	+	be in addition to all other permits requir ed by the laws of th is
	309	+	state. Provided, if the location of the business is changed, such
	310	+	person shall file with the Tax Commission an application for a
	311	+	permit to engage in or transac t business at the new location. Upon
	312	+	issuance of the permit to the new l ocation of such busi ness, no
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321		-	SB608 HFLR Page 7
322		-	BOLD FACE denotes Committee Amendme nts. 1
	314	+	ENGR. S. B. NO. 608 Page 7 1
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347		-	be in addition to all other permits requir ed by the laws of th is
348		-	state. Provided, if the location of the business is changed, such
349		-	person shall file with the Tax Commission an application for a
350		-	permit to engage in or transac t business at the new location. Upon
351		-	issuance of the permit to the new l ocation of such busi ness, no
352	339		additional permit fee shall be due until the expiration of the
353	340		permit issued to the pre vious location of such business.
354	341		G. It shall be unlawful for any p erson coming within the class
355	342		designated as Group One or the class design ated as Group Three to
356	343		engage in or transact a business of reselling tangible personal
357	344		property or services within t his state unless a written permit or
358	345		permits shall have been issued to such person. Any person who
359	346		engages in a business subject to the pro visions of this sect ion
360	347		without a permit or permits, or after a permit has been suspended,
361	348		upon conviction, shall be guilty of a misdemeanor punishable by a
362	349		fine of not more than One Thousand Dollars ($1,000.00). Any person
363	350		convicted of a second or subseq uent violation hereo f shall be guilty
364	351		of a felony and punishable by a fine of not more than Five Thousand
365	352		Dollars ($5,000.00) or by a term of imprisonment in the State
366	353		Penitentiary custody of the Department o f Corrections for not more
367	354		than two (2) years, or both such fine and impriso nment.
368	355		H. Any person operating under a permit as provided in this
369	356		article shall, upon discontinuance of business by sale or othe rwise,
370	357		return such permit to the Tax Commission for cancellation, toge ther
	358	+	with a remittance for any unpaid or accrued taxes. Failure to
	359	+	surrender a permit and pay any and all accrued taxes will be
	360	+	sufficient cause for the Tax Commission to refuse to issu e a permit
	361	+	subsequently to such person to engage in or transact any ot her
	362	+	business in this state. In the case of a sale of any business, the
371	363
372		-	SB608 HFLR Page 8
373		-	BOLD FACE denotes Committee Amendme nts. 1
	364	+	ENGR. S. B. NO. 608 Page 8 1
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398		-	with a remittance for any unpaid or accrued taxes. Failure to
399		-	surrender a permit and pay any and all accrued taxes will be
400		-	sufficient cause for the Tax Commission to refuse to issu e a permit
401		-	subsequently to such person to engage in or transact any ot her
402		-	business in this state. In the case of a sale of any business, the
403	389		tax shall be deemed to be due on the sale of the fixture s and
404	390		equipment, and the Tax Commission shall not issue a permit to
405	391		continue or conduct the business to the purchaser until all tax
406	392		claims due the State of Oklahoma this state have been settled.
407	393		I. All permits issued under the p rovisions of this article
408	394		shall expire three (3) years from the date of issuance at the close
409	395		of business at each place or location of the business within this
410	396		state. No refund of the fee shall be made if the bu siness is
411	397		terminated prior to the expiration of the permit.
412	398		J. Whenever a holder of a permit fails to comply with any
413	399		provisions of this ar ticle, the Tax Commission, after giving ten
414	400		(10) twenty (20) days’ notice in writing of the time and place of
415	401		hearing to show cause why the permit should not be revoked, may
416	402		revoke or suspend the pe rmit, the permit to be renewed upon removal
417	403		of cause or causes of revo cation or suspension. However, if a
418	404		holder of a permit becomes delinquent for a period of three (3)
419	405		months or more in reporting or paying of any ta x due under this
420	406		article, any duly aut horized agent of the Tax Commission may remove
421	407		the permit from the tax payer’s premises and it shall be returned or
	408	+	renewed only upon the filing of proper reports and payment of all
	409	+	taxes due under this article.
	410	+	K. Permits are not required of persons comin g within the
	411	+	classification designated as Group Two. The Oklahoma Tax Commission
422	412
423		-	SB608 HFLR Page 9
424		-	BOLD FACE denotes Committee Amendme nts. 1
	413	+	ENGR. S. B. NO. 608 Page 9 1
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449		-	renewed only upon the filing of proper reports and payment of all
450		-	taxes due under this article.
451		-	K. Permits are not required of persons comin g within the
452		-	classification designated as Group Two. The Oklahoma Tax Commission
453	438		shall issue a limited permit to Gro up Five vendors. The permit
454	439		shall be in such form as the Tax Commission may prescribe.
455	440		L. Nothing in this article shall be construed to a llow a permit
456	441		holder to purchase, tax exempt, anything for resale that the permit
457	442		holder is not regularly in the busi ness of reselling.
458	443		M. All monies received pursuant to is suance of such permits to
459	444		do business shall be paid to the State Treasurer and pla ced to the
460	445		credit of the General Revenue Fund of the State Treasury.
461	446		N. Notwithstanding the provisions of Section 20 5 of this title,
462	447		the Oklahoma Tax Commission is authorize d to release the following
463	448		information contained in the Master Sales and Use Tax F ile to
464	449		vendors:
465	450		1. Permit number;
466	451		2. Name in which permit is issued;
467	452		3. Name of business operation if different fr om ownership
468	453		(DBA);
469	454		4. Mailing address;
470	455		5. Business address;
	456	+	6. Business class, North American Industr y Classification
	457	+	System (NAICS), or Standard Industrial Code Classification (SIC);
	458	+	and
	459	+	7. Effective date and expiration or cancellation date of
	460	+	permit.
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472		-	SB608 HFLR Page 10
473		-	BOLD FACE denotes Committee Amendme nts. 1
	462	+	ENGR. S. B. NO. 608 Page 10 1
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498		-	6. Business class, North American Industr y Classification
499		-	System (NAICS), or Standard Industrial Code Classification (SIC);
500		-	and
501		-	7. Effective date and expiration or cancellation date of
502		-	permit.
503	487		Release of such inform ation shall be limited to tax rem itters
504	488		for the express purpose of determining the validity of sales permits
505	489		presented as evidence of purchasers ’ sales tax resale status under
506	490		this Oklahoma Tax Code.
507	491		The provisions of this subsectio n shall be strictly interpreted
508	492		and shall not be construe d as permitting the disclosure of any other
509	493		information contained in the records and files of the Tax Commission
510	494		relating to sales tax or to any other taxe s.
511	495		This information may be provided on a sub scription basis, with
512	496		periodic updates, and sufficient fe e charged, not to exceed One
513	497		Hundred Fifty Dollars ($150.00) per year, to offset the
514	498		administrative costs of providing the list. All revenue received by
515	499		the Oklahoma Tax Commission from such fees sh all be deposited to the
516	500		credit of the Oklahoma Tax Commission Revolving Fund. No liability
517	501		whatsoever, civil or criminal, shall attach to any member of the Tax
518	502		Commission or any employ ee thereof for any error or omission in the
519	503		disclosure of information p ursuant to this subsection.
520	504		O. If the Tax Commission ent ers into the Streamlined Sales and
521	505		Use Tax Agreement under Section 1354.18 of this title, the Tax
	506	+	Commission is authorized to pa rticipate in its online sal es and use
	507	+	tax registration system and shall not require the payment of the
	508	+	registration fees or othe r charges provided in this section from a
	509	+	vendor who registers within the online system if the vendor has no
	510	+	legal requirement to register.
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523		-	SB608 HFLR Page 11
524		-	BOLD FACE denotes Committee Amendme nts. 1
	512	+	ENGR. S. B. NO. 608 Page 11 1
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549		-	Commission is authorized to pa rticipate in its online sal es and use
550		-	tax registration system and shall not require the payment of the
551		-	registration fees or othe r charges provided in this section from a
552		-	vendor who registers within the online system if the vendor has no
553		-	legal requirement to register.
554	537		SECTION 3. This act shall become effective November 1, 2023.
	538	+	Passed the Senate the 23rd day of February, 2023.
555	539
556		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
557		-	04/13/2023 - DO PASS.
	540	+
	541	+
	542	+	Presiding Officer of the Senate
	543	+
	544	+
	545	+	Passed the House of Representatives the ____ day of __________,
	546	+	2023.
	547	+
	548	+
	549	+
	550	+	Presiding Officer of the House
	551	+	of Representatives
	552	+