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SENATE FLOOR VERSION
April 1, 2024
AS AMENDED
ENGROSSED HOUSE
BILL NO. 3458 By: Moore of the House
and
Jech of the Senate
[ revenue and taxation - confidential information -
district attorneys - Attorney General - Oklahoma
Medical Marijuana Aut hority -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 205, as
amended by Section 9, Chapter 354, O.S.L. 2022 (68 O.S. Supp. 2023,
Section 205), is amended to r ead as follows:
Section 205. A. The records and files of the Oklahoma Tax
Commission concerning the administration of the Uniform Tax
Procedure Code or of any state tax law shall be considered
confidential and privileged, except as otherwise provided for by
law, and neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files nor any person who may have secured
information from the Tax Commission shall disclose any information
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obtained from the records or files or from any examination or
inspection of the premises or property of any person.
B. Except as provided in paragraph 26 of subsection C of this
section, neither the Tax Commission nor any employee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files shall be required by any court of this
state to produce any of the records or files for the inspection of
any person or for use in any action or proceeding, e xcept when the
records or files or the facts shown thereby are directly involved in
an action or proceeding pursuant to the provisions of the Uniform
Tax Procedure Code or of the state tax law, or when the
determination of the action or proceeding will aff ect the validity
or the amount of the claim of the state pursuant to any state tax
law, or when the information contained in the records or files
constitutes evidence of violation of the provisions of the Uniform
Tax Procedure Code or of any state tax law.
C. The provisions of this section shall not prevent the Tax
Commission, or with respect to the Oklahoma Department of Commerce
in administration of the Oklahoma Rural Jobs Act as provided by
paragraph 22 of this subsection, from disclosing the following
information and no lia bility whatsoever, civil or criminal, shall
attach to any member of the Tax Commission, or the Oklahoma
Department of Commerce as applicable, or any employee thereof for
any error or omission in the disclosure of such information:
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1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxpayer pursuant to the provisions of the
Uniform Tax Procedure Code or of any state tax law;
2. The exchange of infor mation that is not pro tected by the
federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
pursuant to reciprocal agreements entered into by the Tax Commission
and other state agencies or agencies of the federal government;
3. The publication of statistics so classified as to prevent
the identification of a particular report and the items thereof;
4. The examination of records and files by the State Auditor
and Inspector or the duly authorized agents of the State Auditor and
Inspector;
5. The disclosing of informa tion or evidence to the Oklahoma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, any district
attorney or agent of any federal law enforcement agency when the
information or evidence is to be used by such officials to
investigate or prosecute violations of the criminal provisions of
the Uniform Tax Procedure Code or of any state tax law or of any
federal crime committed against this state. Any information
disclosed to the Oklahoma State Burea u of Investigation, Attorney
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, any district attorney or agent of any federal law
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enforcement agency shall be kept confidential by such person and not
be disclosed except when presented to a court in a prosecution for
violation of the tax laws of this state or except as specifically
authorized by law, and a violation by the Oklahoma State Bureau of
Investigation, Attorney General, Oklahoma State Bureau of Narcotics
and Dangerous Drugs Con trol, district attorney or agent of any
federal law enforcement agency by otherwise releasing the
information shall be a felony;
6. The use by any division of the Tax Commission of any
information or evidence in the possession of or contained in any
report or return filed with any other division of the Tax
Commission;
7. The furnishing, at the discretion of the Tax Commission, of
any information disclosed by its records or files to any official
person or body of this state, any other state, the United Sta tes or
foreign country who is concerned with the administration or
assessment of any similar tax in this state, any other state or the
United States. The provisions of this paragraph shall include the
furnishing of information by the Tax Commission to a county assessor
to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklahoma Constitution
or Section 2890 of this title. The Tax Commission shall promulgate
rules to give guidance to the county ass essors regarding the type of
information which may be used by the county assessors in determining
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the amount of gross household income pursuant to Section 8C of
Article X of the Oklahoma Constitution or Section 2890 of this
title. The provisions of this paragraph shall also include the
furnishing of information to the State Treasurer for the purpose of
administration of the Uniform Unclaimed Property Act;
8. The furnishing of information to other state agencies for
the limited purpose of aiding in the col lection of debts owed by
individuals to such requesting agencies;
9. The furnishing of information requested by any member of the
general public and stated in the sworn lists or schedules of taxable
property of public service corpora tions organized, existing, or
doing business in this state which are submitted to and certified by
the State Board of Equalization pursuant to the provisions of
Section 2858 of this title and Section 21 of Article X of the
Oklahoma Constitution, provided s uch information would be a public
record if filed pursuant to Sections 2838 and 2839 of this title on
behalf of a corporation other than a public service corporation;
10. The furnishing of information requested by any member of
the general public and stat ed in the findings of the Tax Commission
as to the adjustment and equalization of the valuation of real and
personal property of the counties of the state, which are submitted
to and certified by the State Board of Equalization pursuant to the
provisions of Section 2865 of this title and Section 21 of Article X
of the Oklahoma Constitution;
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11. The furnishing of information as to the issuance or
revocation of any tax permit, license or exemption by the Tax
Commission as provided for by law. Such informati on shall be
limited to the name of the person issued the permit, license or
exemption, the name of the business entity authorized to engage in
business pursuant to the permit, license or exemption, the address
of the business entity and the grounds for rev ocation;
12. The posting of notice of revocation of any tax permit or
license upon the premises of the place of business of any business
entity which has had any tax permit or license revoked by the Tax
Commission as provided for by law. Such notice shal l be limited to
the name of the person issued the permit or license, the name of the
business entity authorized to engage in business pursuant to the
permit or license, the address of the business entity and the
grounds for revocation;
13. The furnishing of information upon wr itten request by any
member of the general public as to the outstanding and unpaid amount
due and owing by any taxpayer of this state for any delinquent tax,
together with penalty and interest, for which a tax warrant or a
certificate of indebtedness has been filed pursuant to law;
14. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written request by any member of the
general public as to any agreement entered into by the Tax
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Commission concernin g a compromise of tax liability for an amount
less than the amount of tax liability stated on such warrant;
15. The disclosure of information necessary to complete the
performance of any contract authorized by this title to any person
with whom the Tax Co mmission has contracted;
16. The disclosure of information to any person for a purpose
as authorized by the taxpayer pursuant to a waiver of
confidentiality. The waiver shall be in writing and shall be made
upon such form as the Tax Commission may prescr ibe;
17. The disclosure of information required in order to comply
with the provisions of Section 2369 of this title;
18. The disclosure to an employer, as defined in Sections
2385.1 and 2385.3 of this title, of information required in order to
collect the tax imposed by Section 2385.2 of this title;
19. The disclosure to a plaintiff of a corporation 's last-known
address shown on the records of the Franchise Tax Division of the
Tax Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
20. The disclosure of information directly involved in the
resolution of the protest by a taxpayer to an assessment of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosure of the pendency of an
administrative proceeding involving such protest or claim, to a
person called by the Tax Commission as an expert witness or as a
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witness whose area of knowledge or expertise specifically addresses
the issue addressed in the protest or claim for refund. Such
disclosure to a witness shall be limited to information pertaining
to the specific knowledge of that witness as to the transaction or
relationship between taxpayer and witness;
21. The disclosure of informa tion necessary to implement an
agreement authorized by Section 2702 of this title when such
information is directly involved in the resolution of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the gov erning body or to the municipal
attorney, if so designated by the governing body;
22. The furnishing of information regarding incentive payments
made pursuant to the provisions of Sections 3601 through 3609 of
this title, incentive payments made pursuant to the provisions of
Sections 3501 through 3508 of this title, or tax credits claimed
pursuant to the provisions of Sections 1 through 8 of this act;
23. The furnishing to a prospective purchaser of any business,
or his or her authorized representative, o f information relating to
any liabilities, delinquencies, assessments or warrants of the
prospective seller of the business which have not been filed of
record, established or become final and which relate solely to the
seller's business. Any disclosure u nder this paragraph shall only
be allowed upon the presentment by the prospective buyer, or the
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buyer's authorized representative, of the purchase contract and a
written authorization between the parties;
24. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax permit,
license, exemption, deduction, credit or other tax preference by the
Tax Commission as provided for by law. Such information shall be
limited to the type of permit, license, exempti on, deduction, credit
or other tax preference issued or granted, the date and duration of
such permit, license, exemption, deduction, credit or other tax
preference and the amount of such revenue. The provisions of this
paragraph shall not authorize the d isclosure of the name of the
person issued such permit, license, exemption, deduction, credit or
other tax preference, or the name of the business entity authorized
to engage in business pursuant to the permit, license, exemption,
deduction, credit or othe r tax preference;
25. The examination of records and files of a person or entity
by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, district attorney or the Attorney General pursuant to a
court order by a magistrate in whose territoria l jurisdiction the
person or entity resides, or where the Tax Commission records and
files are physically located. Such an order may only be issued upon
a sworn application by an agent of the Oklahoma State Bureau of
Narcotics and Dangerous Drugs Control or the Attorney General ,
certifying that the person or entity whose records and files are to
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be examined is the target of an ongoing investigation of a felony
violation of the Uniform Controlled Dangerous Substances Act and
that information resulting from such an examination wo uld likely be
relevant to that investigation. Any records or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control , district attorney
or the Attorney General in the investigation and prosecution of a
felony violation of the Uniform Controlled Dangerous Substances Act
or money laundering pursuant to Section 2001 of Title 21 of the
Oklahoma Statutes. Any such order issued pursuant to this
paragraph, along with the underlying app lication, shall be sealed
and not disclosed to the person or entity whose records were
examined, for a period of ninety (90) days. The issuing magistrate
may grant extensions of such period upon a showing of good cause in
furtherance of the investigation. Upon the expiration of ninety
(90) days and any extensions granted by the magistrate, a copy of
the application and order shall be served upon the person or entity
whose records were examined, along with a copy of the records or
information actually prov ided by the Tax Commission;
26. The disclosure of information, as prescribed by this
paragraph, which is related to the proposed or actual usage of tax
credits pursuant to Section 2357.7 of this title, the Small Business
Capital Formation Incentive Act or the Rural Venture Capital
Formation Incentive Act. Unless the context clearly requires
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otherwise, the terms used in this paragraph shall have the same
meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this
title. The disclosure of information authorized by this paragraph
shall include:
a. the legal name of any qualified venture capital
company, qualified small business capital company or
qualified rural small business capital company,
b. the identity or legal name of any p erson or entity
that is a shareholder or partner of a qualified
venture capital company, qualified small business
capital company or qualified rural small business
capital company,
c. the identity or legal name of any Oklahoma business
venture, Oklahoma sm all business venture o r Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or
d. the amount of funds invested in a qualified venture
capital company, the amount of qualified investments
in a qualified small business capital company or
qualified rural small business capital company and the
amount of investments made by a qualified venture
capital company, qualified small business capital
company, or qualified rural small business capital
company;
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27. The disclosure of specif ic information as required by
Section 46 of Title 62 of the Oklahoma Statutes;
28. The disclosure of specific information as required by
Section 205.5 of this title;
29. The disclosure of specific information as required by
Section 205.6 of this title;
30. The disclosure of information to the State Treasurer
necessary to implement Section 2368.27 of this title;
31. The disclosure of specific information to the Oklahoma
Health Care Authority for purposes of determining eligibility f or
current or potential recipients of assistance from the Oklahoma
Medicaid Program; or
32. The disclosure of information to the Oklahoma Department of
Veterans Affairs including but not limited to the name and basis for
eligibility of each individual who qualifies for the sales tax
exemption authorized in paragraph 34 of Section 1357 of this title ;
or
33. The disclosure of information to the Oklahoma Medical
Marijuana Authority for the purposes of compliance with the Oklahoma
Medical Marijuana and Patien t Protection Act or Se ction 420 et seq.
of Title 63 of the Oklahoma Statutes .
D. The Tax Commission shall cause to be prepared and made
available for public inspection in the office of the Tax Commission
in such manner as it may determine an annual list c ontaining the
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name and post office address of each person, whether individual,
corporate or otherwise, making and filing an income tax return with
the Tax Commission.
It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and publication of the list.
E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state t ax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferrals or
other preferential tax treatments. The report shall be prepared not
later than October 1 of each even -numbered year and shall be
submitted to the Governor, the President Pro Temp ore of the Senate
and the Speaker of the House of Representatives. The Tax Commission
may prepare and submit supplements to the report at other times of
the year if additional or updated information relevant to the report
becomes available. The report shall include, for the previous
fiscal year, the Tax Commission 's best estimate of the amount of
state revenue that would have been collected but for the existence
of each such exclusion, deduction, credit, exemption, deferral or
other preferential tax treat ment allowed by law. The Tax Commission
may request the assistance of other state agencies as may be needed
to prepare the report. The Tax Commission is authorized to require
any recipient of a tax incentive or tax expenditure to re port to the
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Tax Commission such information as requested so that the Tax
Commission may fulfill its obligations as required by this
subsection. The Tax Commission may require this information to be
submitted in an electronic format. The Tax Commission ma y disallow
any claim of a person for a tax incentive due to its failure to file
a report as required under the authority of this subsection.
F. It is further provided that the provisions of this section
shall be strictly interpreted and shall not be const rued as
permitting the disclosure of any other information contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.
G. Unless otherwise provided for in this section, any violation
of the provisions of this sec tion shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not exceeding One
Thousand Dollars ($1,000.00) or by imprisonment in the county jail
for a term not exceeding one (1) year, or by both such fine and
imprisonment, and the offender shall be removed or dismissed from
office.
H. Offenses described in Section 2376 of this title shall be
reported to the appropriate district attorney of this state by the
Tax Commission as soon as the offenses are discovered by the Tax
Commission or its agents or e mployees. The Tax Commission shall
make available to the appropriate district attorney or to the
authorized agent of the district attorney its records and files
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pertinent to prosecutions, and such records and files shall be fully
admissible as evidence for the purpose of such prosecutions.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
April 1, 2024 - DO PASS AS AMENDED