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SENATE FLOOR VERSION
April 8, 2024
ENGROSSED HOUSE
BILL NO. 4044 By: McCall of the House
and
Treat of the Senate
An Act relating to revenue and taxation; providing
procedures for compliance with certain tax laws;
authorizing waiver of penalty and interest;
specifying tax types with respect to which wavier
allowable; imposing limitations and conditions on
taxpayer participation; prescribing procedures;
providing for administrative rules; restricting
procedures based upon status as appointed or e lected
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 voluntary disclosure and
payment of taxes owed to this sta te, the Oklahoma Tax Commission is
hereby authorized and directed to establish a Voluntary Disclosure
Initiative for eligible taxes, as provided in this section. A
taxpayer shall be entitled to a waiver of penalty, interest and
other collection fees due o n eligible taxes if the taxpayer
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voluntarily files delinquent tax returns and pays the taxes due
during the disclosure initiative. The time in which a voluntary
payment of tax liability may be made or the taxpayer may enter into
a payment program acceptab le 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 Ta x Commission and the
taxpayer under the Voluntary Disclosure Initiative shall be
applicable with respec t 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 Commission shall abate
and not seek to collect 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 section before entering
into an agreement as provided in the initiative:
1. Mixed beverage tax lev ied pursuant to Section 576 of Title
37 of the Oklahoma Statutes;
2. Gasoline and diesel tax levied pursuant to Section 500.4 of
Title 68 of the Oklahom a Statutes;
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3. Gross production and petroleum excise tax levied pursuant to
Sections 1001, 1101 and 11 02 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 pursuant 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 sale s and use
taxes or payroll taxes, and not reported those taxes; and
2. Not have, within the preceding three (3) years, entered into
a voluntary disclosure agreement for the type of tax owed.
E. If the Tax Commission agrees with the proposed terms for
payment of the principal amount of tax due and owing, the penalties
and interest otherwise imposed by law upon the principal amount
shall be waived by opera tion of law and no further action by the Tax
Commission or by the taxpayer shall be required for the wa iver of
such penalty and applicable interest.
F. The Tax Commission shall limit the period for which
additional taxes may be assessed to three (3) taxable years for
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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 specified 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 voluntary disclosure
agreement.
H. The provisions of a modified voluntary disclosure agreement
shall be the same as a voluntary disclosure agreement as specified
in subsection E of this section; provided, 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 b eyond the
three-year or thirty-six-month period provided in subsection F of
this section to include all periods 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, for a period of
one (1) year after the tax period(s) for which taxes were paid
pursuant to this initiative.
J. The Tax Commission is authorized to expend necessary
available funds, including contracting with third parties, to
publicly advertise, assist in the collection o f eligible taxes, and
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administer the Voluntary Disclosure Initiative and shall be exempt
from the provisions of Section 85.7 of Title 74 of the Oklahoma
Statutes for the purpose of implementing this section.
K. The Tax Commission is authorized to promulga te 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.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
April 8, 2024 - DO PASS