Oklahoma 2024 Regular Session

Oklahoma House Bill HB3346 Compare Versions

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1		-	An Act
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	30	+	March 25, 2024
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3	34		BILL NO. 3346 By: Pfeiffer and Menz of the
4	35		House
5	36
6	37		and
7	38
8	39		Rader of the Senate
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14	45		An Act relating to revenue and taxation; amending 68
15	46		O.S. 2021, Section 1364, as last amended by Section
16	47		3, Chapter 359, O.S.L. 2023 (68 O.S. Supp. 2023,
17		-	Section 1364), which ~~relates~~ to state revenue
	48	+	Section 1364), which relate to state revenue
18	49		administration; modifying provisions related to
19	50		revocation of sales tax permit with respect to
20	51		certain places of business based upon cessation of
21	52		business activity; providing an effective date; and
22	53		declaring an emergency.
23	54
24	55
25	56
26		-	~~SUBJECT: Revenue and taxation~~
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27	58
28	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
29		-
30	60		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1364, as
31	61		last amended by Section 3, Chapter 359, O.S.L. 2023 (68 O.S. Supp.
32	62		2023, Section 1364), is amended to read as follows:
33		-
34	63		Section 1364. Permits to do business.
35		-
36	64		A. Every person desiring to engage in a business within this
37	65		state who would be designated as a Group One or Group Three vendor,
38	66		pursuant to Section 1363 of this title , shall be required to secure
39	67		from the Oklahoma Tax Commission every three (3) years a written
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40	95		permit for a fee of Twenty Dollars ($20.00) prior to engaging in
41	96		such business in this state. Each such person shall file with the
42	97		Tax Commission an application for a permit to engage in or transact
43	98		business in this state, setting forth such information as the Tax
44	99		Commission may require. The application shall be signed by the
45	100		owner of the business or representative of the business entity and
46		-	as a natural person, and, in the case of a corporation, as a ~~legally ENR. H. B. NO. 3346 Page 2~~
	101	+	as a natural person, and, in the case of a corporation, as a legall y
47	102		constituted officer thereof. To obtain a sales tax permit, an
48	103		individual or sole proprietor must be at least eighteen (18) years
49	104		of age. A parent or legal guardian may apply for a permit on behalf
50	105		of an individual or sole proprietor who is not at least eighteen
51	106		(18) years of age, provided the parent or legal guardian will be
52	107		considered the authorized user responsible for remitting state tax.
53		-
54	108		B. Upon receipt of an initial application, the Tax Commission
55	109		may issue a probationary permit effective for six (6) months which
56	110		will automatically renew for an additional thirty (30) months unless
57	111		the applicant receives written notification of the refusal of the
58	112		Commission to renew the permit. Within twenty (20) days of the date
59	113		of the written notification of the notice of refusal, the applicant
60	114		may request a hearing to show cause why the permit should be
61	115		renewed. Upon receipt of a request for a hearing, the Tax
62	116		Commission shall set the matter for hearing and give ten (10) days'
63	117		notice in writing of the time and p lace of the hearing. At the
64	118		hearing, the applicant shall set forth the qualifications of the
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65	146		applicant for a permit and proof of compliance with all state tax
66	147		laws.
67		-
68	148		C. Holders of a probationary permit as pro vided in subsection B
69	149		of this section shall not be permitted to present the permit to
70	150		obtain a commercial license plate for their motor vehicle as
71	151		provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
72		-
73	152		D. Upon verification that the applicant is a Group Three
74	153		vendor, the Tax Commission may re quire such applicant to furnish a
75	154		surety bond or other security as the Commission may deem necessary
76	155		to secure payment of taxes under this article, prior to issuance of
77	156		a permit for the place of business set f orth in the application for
78	157		permit. Provided, the Tax Commission is hereby authorized to set
79	158		guidelines, by adoption of regulations, for the issuance of sales
80	159		tax permits. Pursuant to the guidelines the Tax Commission may
81	160		refuse to issue permits to any G roup Three vendors, or any class of
82	161		vendors included in the whole classification of Group Three vendors,
83	162		if the Tax Commission determines that it is likely this state will
84	163		lose tax revenue due to the difficulty of enforcing this article for
85	164		any reasons stated in paragraph 21 of Section 1354 of this title.
86		-
87	165		E. A separate permit for each additional place of business to
88	166		be operated must be obtained from the Tax Commission for a fee of
89	167		Ten Dollars ($10.00). Such permit shall be good for a period of
90	168		three (3) years. The Tax Commission shall grant and issue to each
91		-	applicant a separate permit for each place o f business in this ENR. H. B. NO. 3346 Page 3
	169	+	applicant a separate permit for each place of business in this
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92	197		state, upon proper application therefor and verification thereof by
93	198		the Tax Commission.
94		-
95	199		F. A permit is not assignable and shall be valid only for the
96	200		person in whose name it is issued and for the transaction of
97	201		business at the place designated therein. The permit shall at all
98	202		times be conspicuously displayed at the place of business for which
99	203		issued in a position where it can be easily se en. The permit shall
100	204		be in addition to all oth er permits required by the laws of this
101	205		state. Provided, if the location of the business is changed, such
102	206		person shall file with the Tax Commission an application for a
103	207		permit to engage in or transact busines s at the new location. Upon
104	208		issuance of the permit to the new location of such business, no
105	209		additional permit fee shall be due until the expiration of the
106	210		permit issued to the previous location of such business.
107		-
108	211		G. It shall be unlawful for any person com ing within the class
109	212		designated as Group One or the class designated as Group Three to
110	213		engage in or transact a business of reselling tangible personal
111	214		property or services within this state unless a written permit or
112	215		permits shall have been issued to such person. Any person who
113	216		engages in a business subject to the provisions of this section
114	217		without a permit or permits, or after a permit has been suspended,
115	218		upon conviction, shall be guilty of a misdemeanor punishable by a
116	219		fine of not more than One Thousand Dollars ($1,000.00). Any person
117	220		convicted of a second or subsequent violation hereof shall be guilty
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118	248		of a felony and punishable by a fine of not more than Five Thousand
119	249		Dollars ($5,000.00) or by a term of imprisonment in the custody of
120	250		the Department of Corrections for not more than two (2) years, or
121	251		both such fine and imprisonment.
122		-
123	252		H. Any person operating under a permit as provided in this
124	253		article shall, upon discontinuance of business by sale or otherwise,
125	254		return such permit to the Tax Commission for ca ncellation, together
126	255		with a remittance for any unpaid or accrued taxes. Failure to
127	256		surrender a permit and pay any and all accrued taxes will be
128	257		sufficient cause for the Tax Commission to refuse to issue a permit
129	258		subsequently to such person to engage in or transact any other
130	259		business in this state. In the case of a sale of any business, the
131	260		tax shall be deemed to be due on the sale of the fixtures and
132	261		equipment, and the Tax Commission shall not issue a permit to
133	262		continue or conduct the business to the purc haser until all tax
134	263		claims due this state have been settled.
135		-	ENR. H. B. NO. 3346 Page 4
136	264		I. All permits issued under the provisions of this article
137	265		shall expire three (3) years from the date of issuance at the close
138	266		of business at each place or location of the business within this
139	267		state. No refund of the fee shall be made if the business is
140	268		terminated prior to the expiration of the permit. Whenever the
141	269		sales tax reports required to be filed by Section 1365 of this title
142	270		indicate there is no business activity at a place of business for a
143	271		period of twelve (12) months, the Tax Com mission, after giving
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144	299		twenty (20) days' notice to the permit holder in writing of the time
145	300		and place of hearing to show cause why the sales tax permit for that
146	301		place of business should not be revoked, may revo ke or suspend the
147	302		permit pursuant to an order of the Tax Commission after failure to
148	303		show cause or failure to appear by the permit holder.
149		-
150	304		J. Whenever a holder of a permit fails to comply with any
151	305		provisions of this article, the Tax Commission, after givi ng twenty
152	306		(20) days' notice in writing of the t ime and place of hearing to
153	307		show cause why the permit should not be revoked, may revoke or
154	308		suspend the permit pursuant to an order of the Tax Commission after
155	309		failure to show cause or failure to appear by the permit holder, the
156	310		permit to be renewed upon removal of cause or causes of revocation
157	311		or suspension. However, if a holder of a permit becomes delinquent
158	312		for a period of three (3) months or more in reporting or paying of
159	313		any tax due under this article, any duly authorized agent of the Tax
160	314		Commission may remove the permit from the taxpayer's premises and it
161	315		shall be returned or renewed only upon the filing of proper reports
162	316		and payment of all taxes due under this article.
163		-
164	317		K. Permits are not required of pers ons coming within the
165	318		classification designated as Group Two. The Oklahoma Tax Commission
166	319		shall issue a limited permit to Group Five vendors. The permit
167	320		shall be in such form as the Tax Commission may prescribe.
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169	348		L. Nothing in this article shall be const rued to allow a permit
170	349		holder to purchase, tax exempt, anything for resale that the permit
171	350		holder is not regularly in the business of reselling.
172		-
173	351		M. All monies received pursuant to issuance of such permits to
174	352		do business shall be paid to the State Treasure r and placed to the
175	353		credit of the General Revenue Fund of the State Treasury.
176		-
177	354		N. Notwithstanding the provisions of Section 205 of this title,
178	355		the Oklahoma Tax Commission is authorized to release the following
179	356		information contained in the Master Sales and Use Tax File to
180		-	vendors: ENR. H. B. NO. 3346 Page 5
181		-
	357	+	vendors:
182	358		1. Permit number;
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184	359		2. Name in which permit is issued;
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186	360		3. Name of business operation if different from ownership
187	361		(DBA);
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189	362		4. Mailing address;
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191	363		5. Business address;
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193	364		6. Business class, North American Industry Classification
194	365		System (NAICS), or Standard Industrial Classification (SIC); and
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196	366		7. Effective date and expiration or cancellation date of
197	367		permit.
198		-
199	368		Release of such information shall be limited to tax remitters
200	369		for the express purpose of determining the validity of sales permits
201	370		presented as evidence of purchasers' sales tax re sale status under
202	371		this Oklahoma Tax Code.
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204	399		The provisions of this subsection shall be strictly interpreted
205	400		and shall not be construed as permitting the disclosure of any other
206	401		information contained in the recor ds and files of the Tax Commission
207	402		relating to sales tax or to any other taxes.
208		-
209	403		This information may be provided on a subscription basis, with
210	404		periodic updates, and sufficient fee charged, not to exceed One
211	405		Hundred Fifty Dollars ($150.00) per year, to offs et the
212	406		administrative costs of providing the li st. All revenue received by
213	407		the Oklahoma Tax Commission from such fees shall be deposited to the
214	408		credit of the Oklahoma Tax Commission Fund. No liability
215	409		whatsoever, civil or criminal, shall attach to any me mber of the Tax
216	410		Commission or any employee thereof for any error or omission in the
217	411		disclosure of information pursuant to this subsection.
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219	412		O. If the Tax Commission enters into the Streamlined Sales and
220	413		Use Tax Agreement under Section 1354.18 of this title , the Tax
221	414		Commission is authorized to participa te in its online sales and use
222	415		tax registration system and shall not require the payment of the
223	416		registration fees or other charges provided in this section from a
224	417		vendor who registers within the online system if the vendor has no
225		-	legal requirement to register. ENR. H. B. NO. 3346 Page 6
226		-
	418	+	legal requirement to register.
227	419		SECTION 2. This act shall become effective July 1, 2024.
228		-
229	420		SECTION 3. It being immediately necessary for the preservation
230	421		of the public peace, health or safety, an emergenc y is hereby
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231	449		declared to exist, by reason whereo f this act shall take effect and
232	450		be in full force from and after its passage and approval.
233		-
234		-
235		-	ENR. H. B. NO. 3346 Page 7
236		-	Passed the House of Representatives the 5th day of March, 2024.
237		-
238		-
239		-
240		-
241		-	Presiding Officer of the House
242		-	of Representatives
243		-
244		-
245		-
246		-	Passed the Senate the 24th day of April, 2024.
247		-
248		-
249		-
250		-
251		-	Presiding Officer of the Senate
252		-
253		-
254		-	OFFICE OF THE GOVERNOR
255		-	Received by the Office of the Governor this ____________________
256		-	day of ___________________, 20____ ___, at _______ o'clock _______ M.
257		-	By: _________________________________
258		-	Approved by the Governor of the State of Oklahoma this _____ ____
259		-	day of ___________________, 20_______, at _______ o'clock _______ M.
260		-
261		-
262		-	_________________________________
263		-	Governor of the State of Oklahoma
264		-
265		-	OFFICE OF THE SECRETARY OF STATE
266		-	Received by the Office of the Secretary of State this __________
267		-	day of ___________________, 20_______, at _______ o'clock _______ M.
268		-	By: _________________________________
269		-
	451	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	452	+	March 25, 2024 - DO PASS