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SENATE FLOOR VERSION
March 25, 2024
ENGROSSED HOUSE
BILL NO. 3346 By: Pfeiffer and Menz of the
House
and
Rader of the Senate
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 1364, as last amended by Section
3, Chapter 359, O.S.L. 2023 (68 O.S. Supp. 2023,
Section 1364), which relate to state revenue
administration; modifying provisions related to
revocation of sales tax permit with respect to
certain places of business based upon cessation of
business activity; providing 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 1364, as
last amended by Section 3, Chapter 359, O.S.L. 2023 (68 O.S. Supp.
2023, 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 secure
from the Oklahoma Tax Commission every three (3) years a written
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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 application for a permit to engage in or 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 entity and
as a natural person, and, in the case of a corporation, as a legall y
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 Commission
may issue a probationary permit effective for six (6) months which
will automatically renew for an additional thirty (30) months 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 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 p lace of the hearing. At the
hearing, the applicant shall set forth the qualifications of the
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applicant for a permit and proof of compliance with all state tax
laws.
C. Holders of a probationary permit as pro vided in subsection B
of this section shall not be permitted 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 Three
vendor, the Tax Commission may re quire such applicant to furnish a
surety bond or other security as the Commission may deem necessary
to secure payment of taxes under this article, prior to issuance of
a permit for the place of business set f orth in the application for
permit. Provided, the Tax Commission is hereby authorized to set
guidelines, by adoption of regulations, for the issuance of sales
tax permits. Pursuant to the guidelines the Tax Commission may
refuse to issue permits to any G roup Three vendors, or any class of
vendors included in the whole 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 enforcing this article for
any reasons stated in paragraph 21 of Section 1354 of this title.
E. A separate permit for each additional 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 grant and issue to each
applicant a separate permit for each place of business in this
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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 designated therein. The permit shall at all
times be conspicuously displayed at the place of business for which
issued in a position where it can be easily se en. The permit shall
be in addition to all oth er permits required by the laws of this
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 transact busines s 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 location of such business.
G. It shall be unlawful for any person com ing 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 state 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 Thousand Dollars ($1,000.00). Any person
convicted of a second or subsequent violation hereof shall be guilty
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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 by sale or otherwise,
return such permit to the Tax Commission for ca ncellation, together
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 issue a permit
subsequently to such person to engage 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 on the sale of the fixtures and
equipment, and the Tax Commission shall not issue a permit to
continue or conduct the business to the purc haser until all tax
claims due this state have been settled.
I. All permits issued under the provisions 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 business is
terminated prior to the expiration of the permit. Whenever the
sales tax reports required to be filed by Section 1365 of this title
indicate there is no business activity at a place of business for a
period of twelve (12) months, the Tax Com mission, after giving
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twenty (20) days' notice to the permit holder in writing of the time
and place of hearing to show cause why the sales tax permit for that
place of business should not be revoked, may revo ke 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.
J. Whenever a holder of a permit fails to comply with any
provisions of this article, the Tax Commission, after givi ng twenty
(20) days' notice in writing of the t ime 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 proper reports
and payment of all taxes due under this article.
K. Permits are not required of pers ons 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.
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L. Nothing in this article shall be const rued 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 Treasure r and placed to the
credit of the General Revenue Fund of the State Treasury.
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 operation 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 cancellation date of
permit.
Release of such information shall be limited to tax remitters
for the express purpose of determining the validity of sales permits
presented as evidence of purchasers' sales tax re sale status under
this Oklahoma Tax Code.
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The provisions of this subsection shall be strictly interpreted
and shall not be construed as permitting the disclosure of any other
information contained in the recor ds and files of the Tax Commission
relating to sales tax or to any other taxes.
This information may be provided on a subscription basis, with
periodic updates, and sufficient fee charged, not to exceed One
Hundred Fifty Dollars ($150.00) per year, to offs et the
administrative costs of providing the li st. All revenue received by
the Oklahoma Tax Commission from such fees shall be deposited to the
credit of the Oklahoma Tax Commission Fund. No liability
whatsoever, civil or criminal, shall attach to any me mber 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 title , the Tax
Commission is authorized to participa te in its online sales and use
tax registration system and shall not require the payment of the
registration fees or other charges provided in this section from a
vendor who registers within the online system if the vendor has no
legal requirement to register.
SECTION 2. This act shall become effective July 1, 2024.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergenc y is hereby
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declared to exist, by reason whereo f this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
March 25, 2024 - DO PASS