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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 4044 By: McCall
COMMITTEE SUBSTITUTE
An Act relating to revenue and taxation; providing
procedures for compliance with certain tax laws;
authorizing waiver of p enalty and interest;
specifying tax types with respect to which wavier
allowable; imposing limitations and conditions on
taxpayer participation; prescribing procedures;
providing for administrative rules; restric ting
procedures based upon status as appointed or elected
official; authorizing utilization of procedures
notwithstanding statutory provisions; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 216.6 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. For the purpose of encouraging the vol untary disclosure and
payment of taxes owed to this state, the Oklahoma Tax Commission is
hereby authorized and directed to establish a Voluntary Disclosure
Initiative for eligible taxes, as provided in this sec tion. A
taxpayer shall be entitled to a waiv er of penalty, interest and
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other collection fees due on eligible taxes if the taxpayer
voluntarily files delin quent tax returns and pays the taxes due
during the disclosure initiative. The time in which a volu ntary
payment of tax liability may be made or the taxpayer may enter into
a payment program acceptable to the Tax Commission for payment of
the unpaid taxes in full in the manner and time established in a
written payment program agreement between the Tax C ommission and the
taxpayer under the Voluntar y Disclosure Initiative shall be
applicable with respect to the enumerated tax types in this section
for all periods beginning January 1, 2020, and ending December 31 ,
2024 and the taxpayer shall be required to make application to the
Tax Commission during the period beginning January 1, 2025, and
ending December 31, 2025.
B. Upon payment of the eligible taxes under the Voluntary
Disclosure Initiative established, the Tax Comm ission shall abate
and not seek to coll ect any interest, penalties or collection fees
that would otherwise be applicable.
C. As used in this section, "eligible taxes" shall include the
following taxes that were due and payable for the tax period or
periods prescribed by subsection A of this se ction before entering
into an agreement as provided in the initiative:
1. Mixed beverage tax levied pursuant to Section 576 of Title
37 of the Oklahoma Statutes;
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2. Gasoline and diesel tax levied pursuant to Sec tion 500.4 of
Title 68 of the Oklahoma Statutes;
3. Gross production and petroleum e xcise tax levied pursuant to
Sections 1001, 1101 and 1102 of Title 68 of the Oklahoma Statutes;
4. Sales tax levied pursuant to Section 1354 of Title 68 of the
Oklahoma Statutes;
5. Use tax levied pursuant to Section 1402 of Title 68 of the
Oklahoma Statutes;
6. Income tax levied pursuant to Section 2355 of Title 68 of
the Oklahoma Statutes ; and
7. Withholding tax levied p ursuant to Section 2385.2 of Title
68 of the Oklahoma Statutes .
D. To be eligible to participate in this initiative, taxpayers
must:
1. Not have collected taxes from others, such as sales and use
taxes or payroll taxes, and not reported those taxes; and
2. Not have, within the preceding three (3) year s, entered into
a voluntary disclosure agreement fo r the type of tax owed.
E. If the Tax Commission agrees with the propos ed terms for
payment of the principal amount of tax due and owing, the penalties
and interest otherwise imposed by law upon the princ ipal amount
shall be waived by operation of law and no further action by the Tax
Commission or by the taxpayer shall be required for the waiver o f
such penalty and applicable interest.
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F. The Tax Commission shall limit the period for which
additional taxes may be assessed to three (3) taxable years for
annually filed taxes or thirty -six (36) months for taxes that do not
have an annual filing frequency.
G. Taxpayers who meet all of the qualifications specifi ed in
subsection D of this section, except those who have collected taxes
from others, such as sales and use taxes or payroll taxes, and not
reported those taxes, may enter into a modified volun tary disclosure
agreement.
H. The provisions of a modified vo luntary disclosure agreement
shall be the same as a voluntary disclosure agreement as specified
in subsection E of this section; prov ided, the waiver of interest
shall not apply except as may be optionally granted at the
discretion of the Tax Commission, and the period for which taxes
must be reported and remitted or assessed is extended beyond the
three-year or thirty-six-month period provided in subsection F of
this section to include all perio ds in which tax has been collected
but not remitted.
I. The waiver of penalty and interest provided herein is fully
effective provided taxpayer continues payment or collection and
remittance of applicable taxes, as required by law, f or a period of
one (1) year after the tax period(s) for which taxes were paid
pursuant to this initiative.
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J. The Tax Commission is authorized to expend necessary
available funds, inc luding contracting with third par ties, to
publicly advertise, assist in the collection of elig ible taxes, and
administer the Voluntary Disclosure Initiative and shall be exempt
from the provisions of Secti on 85.7 of Title 74 of the Oklahoma
Statutes for the purpose of implementing this se ction.
K. The Tax Commission is author ized to promulgate rules
detailing the terms and other conditions of this program .
L. The provisions of this section shall not be applicable to
any person appointed to or elected to a public office.
M. A taxpayer may utilize the procedures described by this
section notwithstanding the provisions of Section 216.5 of Title 68
of the Oklahoma Statutes.
SECTION 2. This act shall become effective November 1, 2024.
59-2-10633 JM 02/29/24