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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
ENGROSSED SENATE
BILL NO. 1035 By: Coleman of the Senate
and
Marti of the House
An Act relating to alcoholic beverages; amending 37A
O.S. 2021, Section 5-135, as amended by Sectio n 1,
Chapter 324, O.S.L. 2022 (37A O.S. Supp. 2022,
Section 5-135), which relates to monthly tax reports ;
providing acceptable percentages of collected amounts
provided in audits to be deemed in compliance;
allowing for a deduction of gross receipts under
certain conditions; providing for the promulgation of
rules by Oklahoma Tax Commission; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 37A O.S. 2021, Section 5-135, as
amended by Section 1, Chapter 324, O.S.L. 202 2 (37A O.S. Supp. 2022,
Section 5-135), is amended to read as follows:
Section 5-135. A. Every mixed beverage tax permit holder, or
any person transacting business subject to the gross receipts tax
levied by Section 5-105 of this title, shall file with the Oklahoma
Tax Commission a monthly report for each place o r location of
business, on or before the twentieth day of the month immediately
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following the month of receipt. The reports shall be made under
oath, on forms prescribed by the Tax Commission, wh ich shall include
the following information:
1. Name of mixed beverage tax permit holder;
2. Mixed beverage tax permit number;
3. Sales tax permit number;
4. Mixed beverage, caterer, public event or special event
license number;
5. Gross receipts fo r the month for the sale, preparation or
service of mixed beve rages, ice and nonalcoholic beverages mixed
with alcoholic beverages;
6. Gross receipts for the month from charges for the privilege
of admission to a mixed beverage establishment which entitl es a
person to complimentary mixed bever ages or discounted pric es for
mixed beverages;
7. Total retail value of complimentary or discounted alcoholic
beverages served for the month; and
8. Such other information as may be required by the Tax
Commission to enable it to collect taxes imposed as provided by law.
B. The gross receipts tax levied by Section 5-105 of this title
shall be calculated by multiplying the tax rate, thirteen and one-
half percent (13.5%), and the total gross receipts for ea ch month
from the sale, preparation or service of mixed beverages, ice and
nonalcoholic beverages mixed with alcoholic beverages, the total
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gross receipts of charges received for admission to mixed beverage
establishments, as provided in paragraph 6 of sub section A of this
section, and the total retail value of complimen tary or discounted
mixed beverages. Gross receipts from the sale of food prepared with
alcoholic beverages shall not be included in the calculation of the
monthly tax liability. The tax du e for the preceding month shall
accompany the report required in s ubsection A of this section. All
taxes, penalties and interest imposed by the Oklahoma Alcoholic
Beverage Control Act may be paid in the form of electronic funds
transfer or by a personal o r company check, cashier’s check,
certified check or postal money order payable to the Tax Commission.
C. If the gross receipts tax levied pursuant to the provisions
of Section 5-105 of this title is not paid on or before the
twentieth day of eac h month, the tax shall be delinquent, and
interest and penalty shal l accrue on and from the twenty-first day
of each month, pursuant to the provisions of the Uniform Tax
Procedure Code.
D. Every licensed wholesaler of alcoholic beverages in this
state shall file with the Tax Co mmission a monthly report, under
oath, on forms prescribed by the Tax Commission, which shall include
the name, location and mixed beverage tax permit number of each
mixed beverage, caterer, public event or special event licensee to
whom the licensed whole saler sold alcoholic beverages during the
report month.
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E. If the report required by subsection A of this section is
not filed with the Tax Commission on or before the twentieth day of
the month, the Tax Commission may assess an a dditional penalty of
Five Dollars ($5.00) for each day thereafter tha t the report is not
filed pursuant to the provisions of this section. The Tax
Commission may waive the penalty assessed pursuant to the provisions
of the Uniform Tax Procedure Code; prov ided, however, the additi onal
penalty, if assessed, shall not exceed an amount equal to twice the
amount of tax due for the period for which such report was required
to be filed, or the sum of Three Hundred Dollars ($300.00),
whichever is greater.
F. Taxes paid as provided by law represented by accounts
receivable which are found to be worthless or uncollectible may be
credited upon subsequent reports and remittances of such tax, in
accordance with rules promulgated by the Tax Commission. If such
accounts are thereafter collected , the same shall be reported and
the tax shall be paid upon the amount so collected.
G. In addition to any other authority granted by law, the Tax
Commission is hereby authorized to audit any mixed beverage, beer
and wine, caterer, public event or specia l event licensee to
determine if the correct amount of tax payable under Section 5-105
of this title has been collected. The taxpayer shall be deemed to
be in compliance if such an audit reveals that the amount collected
is within the following percentages of the amount of tax payable:
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1. For spirits, eighty-four percent (84%) to one hundred
sixteen percent (116%);
2. For wine, ninety percent (90%) to one hundred ten percent
(110%);
3. For beer sold at draft and not in or iginal packages, eighty-
six percent (86%) to one hundred fourteen percent (114%); and
4. For beer sold in or iginal packages, ninety-five percent
(95%) to one hundred five percent (105%).
H. A deduction not to exceed ten percent (10%) of the gross
receipts tax liability levied pursuant to Section 5-105 of this
title and determined by an audit of the purch ases from wholesalers
of a mixed beverage, beer and wine, caterer, public even t, or
special event licensee shall be allowed for properly documented
losses attributable to breakage, spillage, theft, fire, or other
occurrences. The Tax Commission may pr omulgate rules to provide for
loss deductions in addition to the ten percent (10%) allowance and
for the documentation required to properly verify loss claim
amounts.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON ALCOHOL, TOBACCO AND CONTROLLED
SUBSTANCES, dated 04/12/2023 - DO PASS.