Oklahoma 2024 Regular Session

Oklahoma House Bill HB4092 Compare Versions

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3		-	ENGR. H. B. NO. 4092 Page 1 1
	3	+	HB4092 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 4092 By: Caldwell (Trey) and West
30		-	(Rick) of the House
	30	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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32		-	~~and~~
	32	+	STATE OF OKLAHOMA
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34		-	Jech of the Senate
	34	+	2nd Session of the 59th Legislature (2024)
	35	+
	36	+	COMMITTEE SUBSTITUTE
	37	+	FOR
	38	+	HOUSE BILL NO. 4092 By: Caldwell (Trey)
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	44	+	COMMITTEE SUBSTITUTE
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41	46		[ revenue and taxation – banks – associations –
42	47		credit unions – associations – institutions –
43	48		deductions – loans – terms - effective date ]
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49	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
50	56		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2370, is
51	57		amended to read as follow s:
52	58		Section 2370. A. For taxable years beginning after December
53	59		31, 2021, for the privilege of doing business within this state,
54	60		every state banking association, national banking associat ion and
55	61		credit union organized under the law s of this state, located or
56	62		doing business within the limits of the State of Oklahoma shall
57	63		annually pay to this state a privilege tax at the rate o f four
58		-	percent (4%) of the amount of the taxable income as provi ded in this
59		-	section.
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61		-	ENGR. H. B. NO. 4092 Page 2 1
	65	+	HB4092 HFLR Page 2
	66	+	BOLD FACE denotes Committee Amendments.
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	92	+	percent (4%) of the amount of the taxable income as provi ded in this
	93	+	section.
86	94		B. 1. The privilege tax levied by this sectio n shall be in
87	95		addition to the Business Activity Tax levied in Section 1218 of this
88	96		title and the franchise tax levied in Article 12 of this title and
89	97		in lieu of the tax levied by Section 2 355 of this title and in lieu
90	98		of all taxes levied by the State of Ok lahoma, or any subdivision
91	99		thereof, upon the shares of stock or personal property of any
92	100		banking association or credit union subject to taxation under this
93	101		section.
94	102		2. Nothing in this section shall be construed to exempt the
95	103		real property of any banking a ssociations or credit unions from
96	104		taxation to the same extent, according to its value, as other real
97	105		property is taxed. Nothing herein shall be construed to exempt an
98	106		association from pay ment of any fee or tax authorized or levied
99	107		pursuant to the banking laws.
100	108		3. Personal property which is subject to a lease agreement
101	109		between a bank or credit union, as lessor, and a nonbanking business
102	110		entity or individual, as lessee, is not exempt from p ersonal
103	111		property ad valorem taxation . Provided further, that it sha ll be
104	112		the duty of the lessee of such personal propert y to return sworn
105	113		lists or schedules of their taxable property within each county to
106	114		the county assessor of such county as provided in Sections 2433 and
107	115		2434 of this title.
108		-	C. Any tax levied under this section shall accrue on the last
109		-	day of the taxable y ear and be payable as provided in Sectio n 2375
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111		-	ENGR. H. B. NO. 4092 Page 3 1
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	144	+	C. Any tax levied under this section shall accrue on the last
	145	+	day of the taxable y ear and be payable as provided in Section 2375
136	146		of this title. The accrual of such tax for the first taxable year
137	147		to which this act app lies, shall apply notwithstanding the prior
138	148		accrual of a tax in the same taxable year based upon the net income
139	149		of the next preceding taxable year; provided, however, any
140	150		additional deduction enuring to the benefit of the taxpayer shall be
141	151		deducted in accordance with the optional transitional deduct ion
142	152		procedures in Sectio n 2354 of this title.
143	153		D. The basis of the tax shall be United States taxable income
144	154		as defined in paragraph 10 of Section 2353 of this title and any
145	155		adjustments thereto under the provisio ns of Section 2358 of this
146	156		title with the following adjustments:
147	157		1. There shall be deducted all interest income on oblig ations
148	158		of the United States government and agencies thereof not otherwise
149	159		exempted and all interest income on obligations of the State of
150	160		Oklahoma or political subdivisions thereo f, including public trus t
151	161		authorities, not otherwise exempted under the laws of this state;
152	162		and
153	163		2. Expense deductions claimed in arriving at taxable income
154	164		under paragraph 10 of Section 2353 of this title shall be reduced by
155	165		an amount equal to fifty perce nt (50%) of excluded int erest income
156	166		on obligations of the United States gove rnment or agencies thereof
157		-	and obligations of the State of Oklahoma or political subdivisions
158		-	thereof.
159	167
160		-	ENGR. H. B. NO. 4092 Page 4 1
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	195	+	and obligations of the State of Oklahoma or political subdivisions
	196	+	thereof.
185	197		E. 1. Except as otherwise prov ided in paragraph 2 of this
186	198		subsection, before January 1, 2017, ther e shall be allowed a credit
187	199		against the tax levied in subsection A of this section in an amount
188	200		equal to the amount of taxable income received by a participating
189	201		financial institution as d efined in Section 90.2 of Title 62 of the
190	202		Oklahoma Statutes pursuant to a loan made under the Rural Economic
191	203		Development Loan Act. Such credit shall be limited each year to
192	204		five percent (5%) of the amount of annual payroll certified by the
193	205		Oklahoma Rural Economic Development Loan Program Review Boa rd
194	206		pursuant to the provi sions of paragraph 3 of subsection B of Section
195	207		90.4 of Title 62 of the Oklahoma Statutes with respect to the loan
196	208		made by the participating financial institution and may be claimed
197	209		for any number of years necessary until the amount of total credits
198	210		claimed is equal to the total amount of taxable income rece ived by
199	211		the participating financial institution pursuant to the loan . Any
200	212		credit allowed but not used in a taxable year may be carried forward
201	213		for a period not to exceed five (5) taxable years. In no event
202	214		shall a credit allowed pursuant to the provision s of this subsection
203	215		be transferable or refundable.
204	216		2. No credit otherwise authorized by the provisions of this
205	217		subsection may be clai med for any event, transaction, investment,
206	218		expenditure or other act occurring on or after July 1, 2010, for
207		-	which the credit would otherwise be allowable . The provisions of
208		-	this paragraph shall cease to be operative on July 1, 2012 .
209	219
210		-	ENGR. H. B. NO. 4092 Page 5 1
	220	+	HB4092 HFLR Page 5
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	247	+	which the credit would otherwise be allowable . The provisions of
	248	+	this paragraph shall cease to be operative on July 1, 2012 .
235	249		Beginning July 1, 20 12, the credit authorized by this subsection may
236	250		be claimed for any event, transaction, investment, expenditure or
237	251		other act occurring on or after July 1, 2012, according to the
238	252		provisions of this subsection.
239	253		F. For all taxable years commencing after December 31, 2023,
240	254		national banking associations, state banks, trust companies, savings
241	255		and loan associations, and other lending institutions shall be
242	256		allowed as a deduction from net income, as defined in this
243	257		subsection, the net interest income received from qualified
244	258		agricultural real estate loans attributed to Oklahoma , net interest
245	259		income received from agriculture operating loans attributed to
246	260		Oklahoma, and the net interest income received from single family
247	261		residence loans attributed to O klahoma, to the extent such interest
248	262		is included in the Oklahoma ta xable income of a corporation.
249	263		As used in this subsection:
250	264		1. "Interest" means interest on an indebtedness attr ibuted to
251	265		Oklahoma and incurred in the ordinary course of the active conduct
252	266		of any business and interest on indebtedness incurred that is
253	267		secured by a single fami ly residence;
254	268		2. "Qualified agricultural real estate loans" means loans made
255	269		on real property that are substantially used for the production of
256	270		one or more agricultural products and:
257		-	a. have maturities of not less than five (5) years and
258		-	not more than forty (40) years,
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260		-	ENGR. H. B. NO. 4092 Page 6 1
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	299	+	a. have maturities of not less than five (5) years and
	300	+	not more than forty (40) years,
285	301		b. are secured by a first lien interes t in real estate,
286	302		except that the loans may be secured by a second lien
287	303		interest if the institution also holds the first lien
288	304		on the real property, and
289	305		c. have an outstanding loan balance, which when made, is
290	306		less than eighty-five (85%) percent of the appraised
291	307		value of the real estate, except loans for which
292	308		private mortgage insurance is obtained may exceed
293		-	eighty-five ~~percent~~ (85%) of the appraised value of
	309	+	eighty-five (85%) percent of the appraised value of
294	310		the real estate to the extent a loan amount in excess
295	311		of eighty-five (85%) percent is covered by su ch
296	312		insurance;
297	313		3. "Agriculture Operating Loans" means loans made for the
298	314		purpose of:
299	315		a. the purchase, care, feeding, or refinancing of
300	316		livestock or poultry,
301	317		b. purchasing seed, and
302	318		c. the purchase and maintenance of equipment, which shall
303	319		include, but is not limited to, fences, barns, sheds,
304	320		tractors, combines, and vehicles;
305	321		4. "Single family residence" means a residen ce that:
306	322		a. is the principal residence of its o ccupant,
307		-	b. is located in Oklahoma, in a rural area that is not
308		-	within the city limits of a t own with a population of
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310		-	ENGR. H. B. NO. 4092 Page 7 1
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	351	+	b. is located in Oklahoma, in a rural area that is not
	352	+	within the city limits of a t own with a population of
335	353		five thousand (5,000) or more as determined by the
336	354		most recent census for which data is availab le, and
337	355		c. is purchased or improved with the proceeds of the
338	356		loan;
339	357		5. "Net interest income received from qualified agricultural
340	358		real estate loans attributed to Oklahoma" means the product of the
341	359		ratio of the interest income earned on qualified agricultural real
342	360		estate loans over total interest income earned, in relation to the
343	361		net income of the national banking association, state bank, tr ust
344	362		company, savings and loan asso ciation, or other lending ins titution
345	363		without regard to this deduction;
346	364		6. "Net interest income received from agricultural operating
347	365		loans attributed to Oklahoma" means the product of the ratio of the
348	366		interest income earn ed on agricultural operating loans over total
349	367		interest income earned, in relation to t he net income of the
350	368		national banking association, state bank, trust company, savings and
351	369		loan association, or other lending institution without regard to
352	370		this deduction; and
353	371		7. "Net interest income received from single family residence
354	372		loans attributed to Oklahoma" means the product of the ratio of the
355	373		interest income earned on single family residence loans over total
356	374		interest income earned, in relation to the net income of the
357		-	national banking association, state bank, trust company, savings and
358	375
359		-	ENGR. H. B. NO. 4092 Page 8 1
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	403	+	national banking association, state bank, trust company, savings and
384	404		loan association, or other lending institution without regard to
385	405		this deduction.
386	406		SECTION 2. This act shall become effective N ovember 1, 2024.
387	407
388		-	Passed the House of Representatives the 11th day of March, 2024.
389		-
390		-
391		-
392		-
393		-	Presiding Officer of the House
394		-	of Representatives
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398		-	Passed the Senate the _________ day of ___________, 2024.
399		-
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403		-	Presiding Officer of the Senate
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	408	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	409	+	02/29/2024 - DO PASS, As Amended.