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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 600 By: Rader
AS INTRODUCED
An Act relating to sales tax; amending 68 O.S. 2021,
Sections 1364 and 1364.2, which relate to sales tax
and special event permits ; requiring individual to be
of certain age to obtain permit; authorizing parent
or guardian to apply on behalf of minor; requiring
promoters or organizers to provide certa in letter;
requiring submission of certai n list before special
event; modifying information required post-event;
updating reference; updating statutory language; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA :
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1364, is
amended to read as follows:
Section 1364. Permits to do business.
A. Every person desiring to engage in a business within this
state who would be designated as a Group One o r Group Three vendor,
pursuant to Section 1363 of this title, shall be required to secur e
from the Oklahoma Tax Commission every three (3) years a written
permit for a fee of Twenty Dollars ($20.00) prior to engaging in
such business in this state. Each s uch person shall file with the
Tax Commission an application for a permit to engage in o r transact
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business in this state, setting forth such information as the Tax
Commission may require. The application shall be signed by the
owner of the business or re presentative of the business entity and
as a natural person, and, in the case of a corpo ration, as a legally
constituted officer thereof. To obtain a sales tax permit, an
individual or sole proprietor must be at least eighteen (18) years
of age. A parent or legal gu ardian may apply for a permit on behalf
of an individual or sole proprietor w ho is not at least eighteen
(18) years of age, provided the parent or legal guardian will be
considered the authorize d user responsible for remitting state tax .
B. Upon receipt of an initia l application, the Tax Commission
may issue a probationary permit effective for six (6) months which
will automatically renew for an additional thirty (30) months unless
the applicant receives written notification of the refusal of the
Commission to renew the permit. If the applicant receives a notice
of refusal, the applicant may request a hearing to show cause why
the permit should be renewed. Upon receipt of a request for a
hearing, the Tax Commission shall set the matter for hearing and
give ten (10) days’ notice in writing of the time and place of the
hearing. At the hearing, the applicant shall set forth the
qualifications of the applicant for a permit and proof of compli ance
with all state tax laws.
C. Holders of a probationary permit as provided in subsection B
of this section shall not be permitted to present the permit to
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obtain a commercial license plate for their motor vehicle as
provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
D. Upon verification that the applicant is a Grou p Three
vendor, the Tax Commission may require such applicant to f urnish a
surety bond or other security as the Commission may deem necessary
to secure payment of taxes under th is article, prior to issuance of
a permit for the place of business set forth i n the application for
permit. Provided, the Tax Commission is her eby authorized to set
guidelines, by adoption of regulations, for the issuance of sales
tax permits. Pursuant to said guidelines the Tax Commission may
refuse to issue permits to any Group Three vendors, or any class of
vendors included in the whole class ification of Group Three vendors,
if the Tax Commission determines that it is likely this state will
lose tax revenue due to the difficulty of enforcing this article for
any reasons stated i n subsection (T) of Section 1354 of this title.
E. A separate permit for each additional place of business to
be operated must be obtained from the Tax Commission for a fee of
Ten Dollars ($10.00). Such permit shall be good for a period of
three (3) years. The Tax Commission shall grant and issue to each
applicant a separate permit for each place of business in this
state, upon proper application therefor and verification ther eof by
the Tax Commission.
F. A permit is not assignable and shall be valid on ly for the
person in whose name it is issued and for the transacti on of
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business at the place designated therein. The permit shall at all
times be conspicuously displayed at th e place of business for which
issued in a position where it can be easily seen. The permit shall
be in addition to all other permits required by the laws of this
state. Provided, if the location of the business is changed, such
person shall file with the Tax Commission an application for a
permit to engage in or transact business a t the new location. Upon
issuance of the permit to the new locati on of such business, no
additional permit fee shall be due until the expiration of the
permit issued to the pre vious location of such business.
G. It shall be unlawful for any person coming within the class
designated as Group One or the class designated as Group Three to
engage in or transact a business of reselling tangible personal
property or services within t his state unless a written permit or
permits shall have been issued to such per son. Any person who
engages in a business subject to the provisio ns of this section
without a permit or permits, or after a permit has been suspended,
upon conviction, shall be guilty of a misdemeanor punishable by a
fine of not more than One Thousand Dol lars ($1,000.00). Any person
convicted of a second or subsequent violation hereof shall be guilty
of a felony and punishable by a fine of not more than Five Thousand
Dollars ($5,000.00) or by a term of imprisonment in the State
Penitentiary for not more t han two (2) years, or both such fine and
imprisonment.
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H. Any person operating under a permit as provided in this
article shall, upon discontinuance of business by sale or othe rwise,
return such permit to the Tax Commission for cancellation, together
with a remittance for any unpaid or accrued taxes. Failure to
surrender a permit and pay any and all accrued taxes will be
sufficient cause for the Tax Commission to refuse to issu e a permit
subsequently to such person to engage in or transact any other
business in this state. In the case of a sale of any business, the
tax shall be deemed to be due on the sale of the fixtures and
equipment, and the Tax Commission shall not issue a permit to
continue or conduct the business to the purchaser until all tax
claims due the State of Oklahoma have been settled.
I. All permits issued under the provisions of this article
shall expire three (3) years from the date of issuance at the close
of business at each place or location of the business within this
state. No refund of the fee shall be made if the business is
terminated prior to the expiration of the permit.
J. Whenever a holder of a permit fails to comply with any
provisions of this ar ticle, the Tax Commission, after giving ten
(10) days’ notice in writing of the time and place of hearing to
show cause why the permit should not be revoked, may revoke or
suspend the permit, the permit to be renewed upon removal of cause
or causes of revocation or suspension. However, if a holder of a
permit becomes delinquent for a period of three (3) months or more
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in reporting or paying of any tax due under this article, any duly
authorized agent of the Tax Commission may remove the permit from
the taxpayer’s premises and it shall be returned or renewed only
upon the filing of pr oper reports and payment of all taxes due under
this article.
K. Permits are not required of persons coming within the
classification designated as Group Two. The Oklahoma Tax Commission
shall issue a limited permit to Group Five vendors. The permit
shall be in such form as the Tax Commission may prescribe.
L. Nothing in this article shall be construed to allow a permit
holder to purchase, tax exempt, anything for resale that the permit
holder is not regularly in the business of reselling.
M. All monies received pursuant to issuance of such permits to
do business shall be paid to the State Treasurer and placed to the
credit of the General Revenue Fund of the State Treasury.
N. Notwithstanding the provisions of Section 205 of this title,
the Oklahoma Tax Commission is authorized to release the following
information contained in the Master Sales and Use Tax File to
vendors:
1. Permit number;
2. Name in which permit is issued;
3. Name of business operation if different from ownership
(DBA);
4. Mailing address;
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5. Business address;
6. Business class or Standard Indu strial Code (SIC); and
7. Effective date and expiration or cancellation date of
permit.
Release of such inform ation shall be limited to tax remitters
for the express purpose of determining the validity of sales permits
presented as evidence of purchasers ’ sales tax resale status under
this Code.
The provisions of this subsection shall be strictly interpreted
and shall not be construed as permitting the disclosure of any other
information contained in the records and files of the Tax Commission
relating to sales tax or to any other taxes.
This information may be provided on a subscription basis, with
periodic updates, and sufficient fee charged, not to exceed One
Hundred Fifty Dollars ($150.00 ) per year, to offset the
administrative costs of providing the li st. All revenue received by
the Oklahoma Tax Commission from such fees shall be deposited to the
credit of the Oklahoma Tax Commission Revolving Fund. No liability
whatsoever, civil or cri minal, shall attach to any member of the Tax
Commission or any emp loyee thereof for any error or omission in the
disclosure of information pursuant to this subsection.
O. If the Tax Commission enters into the Streamlined Sales and
Use Tax Agreement under Section 1354.18 of this title, the Tax
Commission is authorized to participate in its online sales and use
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tax registration system and shall not require the payment of the
registration fees or other charges provided in this section from a
vendor who registers within the online system if the vendor has no
legal requirement to register.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1364.2, is
amended to read as follows:
Section 1364.2. A. Promoters or organizers of special events
shall submit an application for a special event permit to the
Oklahoma Tax Commission at lea st twenty (20) days prior to the
special event. The application shall be accompanied by a fee of
Fifty Dollars ($50.00). The application shall include the location
and dates of the special event, expected number of vendors, and any
other information that may be required by the Tax Commission. A
separate permit shall be required for each special event and must be
prominently displayed. Multiple events held at the sam e location
during the calendar year may be included in one applica tion.
B. All monies received from such fees shall be paid to the
State Treasurer and placed to the credit of the General Revenue Fund
of the State Treasurer.
C. Promoters or organizers sha ll provide vendor letters or
forms to special event vendors for re porting sales tax collections
and any other information that may be required by the Tax
Commission.
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D. Unless otherwise provided in this section, special event
vendors shall collect sales t ax from purchasers of tangible personal
property and services taxa ble under Section 1350 et seq. of this
title and shall remit the tax, along with a sales tax report, to the
promoter or organizer.
E. Within fifteen (15) days following the conclusion of th e
special event, the organizer or promoter shall forward all repor ts
and payments to the Tax Commission alo ng with a completed sales tax
report. If not filed on or before the fifteenth day, the tax shall
be delinquent from such date. Reports timely maile d shall be
considered timely filed. If a report is not timely fil ed, interest
shall be charged from the da te the report should have been filed
until the report is actually filed.
F. At least ten (10) days prior to the start of the special
event, the organizer or promoter shall submit a list of all vendors
registered to attend the event. Within fifteen (15) days following
the conclusion of the special event, the organizer or promoter shall
also submit a list of vendors at who actually attended each event
that hold a valid sales tax permit issued under Section 1364 of th is
title. The Each list shall include the vendor ’s name, address,
telephone number, email address, and sales tax permit number
taxpayer identification number. If a vendor holds an Oklahoma sales
tax permit issued under Section 1364 of this title, the per mit
numbers shall also be included .
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G. For the purposes of compensating the promoter or organizer
in keeping sales tax records, filing reports and r emitting the tax
when due, a promoter or organizer shall be allowed a deduction of
the tax due as provided in Section 1367.1 of this title.
H. Promoters and organizers shall only be liable for failure to
report and remit all taxes that are remitted to the m by special
event vendors.
I. H. Promoters or organizers of a special event that is held
on an annual basis during the same thirty -day period each year may
request that the Tax Commission limit their responsibilities to the
following:
1. Submitting of an a pplication for a special event permit as
provided in subsection A of this section;
2. Providing report forms to special event vendors as provided
in subsection C of this section; and
3. Within fifteen (15) days following the conclusion of the
special event, submitting a list of special event vendors at each
event, including the vendor’s name, address, and telephone number.
Such requests may be denied by the Tax Commission for reasons
including, but not limited to, failure by the promoter to comply
with the requirements of this section or fail ure by vendors of the
promoter’s previous special events to comply with the provisions of
subsection J I of this section.
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J. I. Special event vendors of special events that are approved
under subsection I H of this section shall remit the tax along with
a sales tax report directly to the Tax Commission within fifteen
(15) days following the conclusion of the special event. If not
filed on or before the fifteenth day, the tax shall be delinquent
from such date. Reports timel y mailed shall be considered ti mely
filed. If a report is not timely filed, interest shall be ch arged
from the date the report should have been filed until the report is
actually filed.
K. J. As used in this section:
1. “Promoter” or “organizer” means any person who organizes or
promotes a special event which results in the rental, occupation, or
use of any structure, lot, tract of land, sample or display case,
table, or any other similar items for the exhibition and sale of
tangible personal property or se rvices taxable under Section 1350 et
seq. of this title by special event vendors;
2. “Special event” means an entertainment, amusement,
recreation, or marketing event that occurs at a single location on
an irregular basis and at which tangible personal pr operty is sold.
“Special event” shall include, but not be limited to, gun shows,
knife shows, craft shows, antique shows, flea markets, carnivals,
bazaars, art shows, and other merchandise displays or exhibits.
Special event shall not include any county, district, or state fair
or public or private school or university-sponsored event. Special
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event shall not include an event sponsored by a city or town that
includes less than ten special event vendors or any event sponsored
by a church organization exemp t from federal income tax pu rsuant to
Section 501(c)(3) of the Internal Revenue Code. Specia l event shall
not include a registered farmers market which is a designated area
in which farmers, growers , or producers from a defined region gather
on a regularly scheduled basis to sell at retail nonpotentially
hazardous farm food products and whole -shell eggs to the public; and
3. “Special event vendor ” means a person making sales of
tangible personal property or services taxable under Section 1350 et
seq. of this title at a special event within this state and who is
not permitted under Section 1364 of this title.
SECTION 3. This act shall become effective November 1, 2023.
59-1-253 QD 1/17/2023 7:12:12 PM