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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 3346 By: Pfeiffer
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 105.1, 265, and 1364, as last
amended by Section 3, Chapter 35 9, O.S.L. 2023 (68
O.S. Supp. 2023, Section 1364), which relate to state
revenue administration; modifying provisions related
to certain employee of the Tax Commission; modify ing
requirements related to posi tion; modifying
authorized expenditures from the Oklahoma Tax
Commission and Office of Management and Enterprise
Services Joint Computer Enhancement Fund ; modifying
provisions related to revocation of sal es tax permit
with respect to certain pla ces of business based upon
cessation of business activity; p roviding an
effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 105.1, is
amended to read as follows:
Section 105.1 The Oklahoma Tax Commission shall have the
authority to designate as a peace o fficer the an employee in the
position of Director of Internal Affairs for the purpose of whose
duties include conducting personnel investigations and ba ckground
checks. An employee designa ted as a peace officer pursuant to this
section shall be certified pursuant to Section 3311 of T itle 70 of
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the Oklahoma Statutes, and have the authority to review information
contained in the files of federal, state or local law enforcement
officials in order to conduct the investigations prescribed by this
section. The employee designated as a peace officer shall not be
authorized to carry a firearm nor shall be required to be certified
pursuant to Section 3311 of Titl e 70 of the Oklahoma Statutes.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 26 5, is
amended to read as follows:
Section 265. A. There is hereby created in the State Treasury
a fund for the Oklahoma Tax Commission to be known as the "Oklahoma
Tax Commission and Offic e of Management and Enterprise Service s
Joint Computer Enhancement Fund". The fund shall be a continuing
fund, not subject to fiscal year limitations, and shall consist of
all monies deposited to the fund pursuant to law. All monies
accruing to the credi t of said fund are hereby appropriated and may
be budgeted and expended for the purposes authorized by subsectio n B
of this section. Expenditures from said fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
B. Monies in the Oklahom a Tax Commission and Office of
Management and Enterprise Services Joint Computer Enhancement Fund
shall be expended for the follo wing purposes:
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1. To make payments on an agreement authorized by Section 5,
Chapter 278, O.S.L. 2008;
2. To make payments for Information Technology acquisitions to
support the responsibilities of the Ok lahoma Tax Commission;
3. To make payments authori zed by Section 34.33 of Title 62 of
the Oklahoma Statutes; and
3. 4. To the extent not needed for the above -listed purposes to
be expended on other projects as specifically authorized by the
Legislature.
C. Notwithstanding any other provision of law, the re shall be
apportioned to the Oklahoma Tax Commission and Office of Management
and Enterprise Services Joint Computer Enhance ment Fund from the
monies that would otherwise be apportioned by Section 2352 of this
title, the revenue received as a result of a ny contracts entered
into by the Oklahoma Tax Commission pursuant to Section 264 of this
title.
D. The Tax Commission is here by authorized to deposit to the
credit of the Oklahoma Tax Commission and Office of Management and
Enterprise Services Joint Compu ter Enhancement Fund any monies in
excess of the amounts necessary to pay all claims presented to its
cash security reserve fu nd. When monies are deposited to the credit
of the Computer Enhancement Fund, the right of any person to present
a claim for refund of a cash security shall be preserve d and the
value thereof shall be paid from the cash security reserve fund.
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E. For the fiscal year beginning July 1, 2015, and thereafter a
portion of the revenue apportioned to the Oklahoma Tax Commission
and Office of Management and Enterprise Services J oint Computer
Enhancement Fund pursuant to Sections 1353, 1403 and 2352 of this
title shall be credited to the Oklahoma Tax Commission, in an amount
which is equal to the sum of one -half of one percent (0.5%) of gross
collections of sales and use tax levie d by counties of this state
pursuant to Section 1370 of this title and one -half of one percent
(0.5%) of sales and use tax levied by municipalities of this state
pursuant to Section 2701 of this title.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 1364, as
last amended by Section 3, Chapter 359, O.S.L. 2023 (68 O.S. S upp.
2023, Section 1364), is amended to read as follows:
Section 1364. Permits to do business.
A. Every person desiring to engag e in a business within this
state who would be designated as a Group One or Group Three vendor,
pursuant to Section 1363 of th is title, shall be required to secu re
from the Oklahoma Tax Commiss ion every three (3) years a written
permit for a fee of Twenty Dollars ($20.00) prior to engaging in
such business in this state. Each such person shall file with the
Tax Commission an app lication for a permit to engage in or transact
business in this sta te, setting forth such information a s the Tax
Commission may require. The application shall be signed by the
owner of the business or representative of the business entity and
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as a natural person, and, in the case of a corp oration, as a legally
constituted officer thereof. To obtain a sales tax permit, an
individual or sole proprietor must be at least eighteen (18) years
of age. A parent or legal guardian may apply for a permit on behalf
of an individual or sole proprietor who is not at least eighteen
(18) years of age, provided the parent or legal guardian will be
considered the authorized user responsible for remitting state tax.
B. Upon receipt of an initial application, the Tax Commis sion
may issue a probationary permi t effective for six (6) months w hich
will automatically renew for an additional thirty (30) mon ths unless
the applicant receives written notification of the refusal of the
Commission to renew the permit. Within twenty (20) days of the date
of the written notification of the notice of refusal, the applicant
may request a hearing to show cause why th e permit should be
renewed. Upon receipt of a request for a heari ng, the Tax
Commission shall set t he matter for hearing and give ten (10) days'
notice in writing of the time and place of the hearing. At the
hearing, the applicant shall set forth the qua lifications of the
applicant for a permit and proof of compliance with all state tax
laws.
C. Holders of a probationary permi t as provided in subsection B
of this section shall not be permitted t o present the permit to
obtain a commercial license plate fo r their motor vehicle as
provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
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D. Upon verification that the appli cant is a Group Three
vendor, the Tax Commission may require such applicant to furnish a
surety bond or other security as the Com mission may deem necessary
to secure payment of taxes under this ar ticle, prior to issuance of
a permit for the place of busine ss set forth in the application for
permit. Provided, the Tax Commiss ion is hereby authorized to set
guidelines, by adoption of regulations, for the issuance of sales
tax permits. Pursuant to the guidelines the Tax Commissi on may
refuse to issue permits to any Group Three vendors, or any class of
vendors included in the wh ole classification of Group Three vendors,
if the Tax Commission determines that it is likely this state will
lose tax revenue due to the difficulty of enf orcing this article for
any reasons stated in paragraph 21 of Section 1354 of this title.
E. A separate permit for each additional place o f 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 grant and issue to each
applicant a separate permit for each place o f business in this
state, upon proper application therefor and verification thereof 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 transaction of
business at the place de signated therein. The permit shall at all
times be conspicuously displayed at the place of business for which
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issued in a position where it can be e asily seen. The permit shall
be in addition to all other permits required by the laws of this
state. Provided, if the location of the business is changed, such
person shall file with the Tax Com mission an application for a
permit to engage in or transact business at the new location. Upon
issuance of the permit to the new location of such business, no
additional permit fee shall be due until the expiration of the
permit issued to the previous lo cation of such business.
G. It shall be unlawful for any pe rson coming within the class
designated as Group One or the class designated as Group Three to
engage in or transact a business of reselling tangible personal
property or services within this stat e unless a written permit or
permits shall have been issued to such person. Any person who
engages in a business subject to the provisions of this section
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 T housand Dollars ($1,000.00). Any person
convicted of a second or subsequent violation hereof shall be gui lty
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 custody of
the Department of Corrections for not more than two (2) years, or
both such fine and imprisonment.
H. Any person operating under a permit as provided in this
article shall, upon discontinuance of business b y sale or otherwise,
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return such permit to the Tax Commissio n for cancellation, together
with a remittance for any unpaid or accrued taxes. Failu re to
surrender a permit and pay any and all accrued taxes will be
sufficient cause for the Tax Commission to refuse to issue a permit
subsequently to such person to enga ge in or transact any other
business in this state. In the case of a sale of any business, the
tax shall be deemed to be due o n the sale of the fixtures and
equipment, and the Tax Commission shal l not issue a permit to
continue or conduct the business to the purchaser until all tax
claims due this state have been settled.
I. All permits issued under the pro visions 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 busine ss is
terminated prior to the expiration o f the permit. Whenever the
sales tax reports required to b e filed by Section 1365 of this title
indicate there is no business activity at a place of b usiness for a
period of twelve (12) months, the Tax Commission, after giving
twenty (20) days' notice to the permit holder in wri ting of the time
and place of hearing to show cause why the sales t ax permit for that
place of business should not be revoked, may revoke or suspend the
permit pursuant to an order of the Tax Commission after failure to
show cause or failure to appear by th e permit holder.
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J. Whenever a holder of a permit fails to comply with any
provisions of this article, the Tax Commission, after gi ving 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 permit pursuant to an order of the Tax Commission after
failure to show cause or failure to appear by the permit holder , the
permit to be renewed upon removal of cause or causes of revocation
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 tax due under this article, any duly authorized agent of the Tax
Commission may remove the permit from the taxpayer 's premises and it
shall be returned or renewed only upon the filing of pr oper reports
and payment of all taxes due under this article.
K. Permits are not required of persons coming within the
classification designated as Group Two. The Oklahoma Tax Commission
shall issue a limited permit to Group Five vendors. The permit
shall be in such form as the Tax Commission may prescribe.
L. Nothing in this article shall be c onstrued to allow a permit
holder to purchase, tax exempt, anything for resale that the permit
holder is not regularly in the business of reselling.
M. All monies received pursuant to issuance of such permits to
do business shall be paid to the State Treasurer and pl aced to the
credit of the General Revenue Fund of the State Treasury.
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N. Notwithstanding the provisions of Section 205 of this title,
the Oklahoma Tax Commission is authorized to release the following
information contained in the Master Sales and Use Tax File to
vendors:
1. Permit number;
2. Name in which permit is issued;
3. Name of business o peration if different from ownership
(DBA);
4. Mailing address;
5. Business address;
6. Business class, North American Industry Classification
System (NAICS), or Standard Industrial Classification (SIC); and
7. Effective date and expiration or can cellation date of
permit.
Release of such information shall b e limited to tax remitters
for the express purpose of determ ining the validity of sales permit s
presented as evidence of purchasers ' sales tax resale status under
this Oklahoma Tax Code.
The provisions of this subsection shall be strictly interpreted
and shall not be construed as permitting the disclosure of any ot her
information contained in the rec ords and files of the Tax Commission
relating to sales tax or to any other taxes.
This information may be provided on a subs cription basis, with
periodic updates, and sufficient fee charged, not to exceed One
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Hundred Fifty Dollars ($150.00) per year, to offset the
administrative costs of providing the list. All revenue received by
the Oklahoma Tax Comm ission from such fees sha ll be deposited to the
credit of the Oklahoma Tax Commission Fund. No liability
whatsoever, civil or criminal, shall attach to any member of the Tax
Commission or any employee thereof for any error or omission in the
disclosure of information pursuant to this subsection.
O. If the Tax Commission enters into the Streamlined Sales and
Use Tax Agreement under Section 1354.18 of this t itle, the Tax
Commission is authorized to participate in its online sales and use
tax registration system and shall not requir e the payment of the
registration fees or other charges provided in this section from a
vendor who registers within the online sys tem if the vendor has no
legal requirement to register.
SECTION 4. This act shall become effective July 1, 2024.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passag e and approval.
59-2-9804 MAH 01/15/24