An Act
ENROLLED SENATE
BILL NO. 600 By: Rader of the Senate
and
Pfeiffer of the House
An Act relating to Oklahoma Tax Commission; amending
68 O.S. 2021, Sections 212 , 225, and 1364, as last
amended by Sections 2 and 7 of Enrolled House Bill
No. 2289 of the 1st Session of the 59th Oklahoma
Legislature, which relate to licenses and permits;
authorizing the written protest of certain license
and permit refusal within certain period; requiring
notice for requested hearing; deleting requirement
that certain information be strictly controlled;
designating procedure for filin g certain confidential
materials; limiting period for hearing request;
making language gender neutral; updating statutory
language; and providing an effective date .
SUBJECT: Tax administration
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 21 2, is
amended to read as follows:
Section 212. A. The Oklahoma Tax Commission is authorized to
cancel or to refuse the issuance, extension, or reinstatement of any
license, permit, or duplicate copy thereof, under the provisions of
any state tax law or o ther law, to any person, firm, or corporation
who shall be guilty of:
1. Violation of any of the provisions of this article;
ENR. S. B. NO. 600 Page 2
2. Violation of the provisions of any state tax law;
3. Violation of the rules and regulati ons promulgated by the
Tax Commission for the administration and enfor cement of any state
tax law;
4. Failure to observe or fulfill the conditions upon which the
license or permit was issued; or
5. Nonpayment of any delinquent tax or penalty.
B. Before any license, permit, or duplicate copy thereof may be
canceled, or the issuance, reinstatement, or extension thereof
refused, the Tax Commission shall give the owner of such license or
permit, or applicant therefor, twenty (20) days’ notice by
registered mail or certified mail with return rec eipt requested, of
a hearing before said the Tax Commission, grantin g said such person
an opportunity to show cause why such action should not be taken.
If the notice has been mailed as required by this section, failur e
of the person to have received actu al notice of the hearing shall
neither invalidate nor be grounds for inva lidating any action taken
at the hearing or pursuant to the hearing.
C. Within sixty (60) days of the date indicated on any notice
of refusal to issue, extend, or reinstate any licen se, permit, or
duplicate copy thereof, the applicant may file with the Tax
Commission a written protest signed by the applicant or the
authorized agent of the applicant, stating the reasons the license,
permit, or duplicate copy thereof should be issued an d requesting an
administrative hearing. If a hearing is requested, the appl icant
shall be given at least ten (10) days’ notice of the hearing.
D. Upon the cancellation of any license, permit, or duplicate
copy thereof by the Tax Commission, all accrued t axes and penalties,
although said such taxes and penalties are not, at the ti me of the
cancellation, due and payable under the terms of the state tax law
imposing or levying such tax or taxes, shall become due and payab le
concurrently with the cancellation of such license, permit, or
duplicate copy thereof, and the licensee or perm ittee shall
forthwith make a report covering the period of time not covered by
preceding reports filed by said such person and ending with the date
of the cancellation and shall p ay all such taxes and pen alties.
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D. E. The Tax Commission may enter its orde r temporarily
suspending any license, permit, or duplicate copy thereof pending a
final hearing before it on the subject of the cancellation o f such
license, permit, or duplicate copy thereof, and may give not ice of
such temporary suspension at the same ti me that notice of its
intention to cancel any license, permit, or duplicate copy or to
refuse the issuance, reinstatement , or extension thereof is given,
as provided by this secti on. After being given notice of any such
order of suspension, it shall be un lawful for any person to continue
to operate his or her business under any such suspended license,
permit, or duplicate copy thereof.
E. F. In the event any such person shall con tinue or threaten
to continue such unlawful operations after having received proper
notice of the suspension, cancellation, revocation, or refusal to
issue, extend, or reinstate his or her license, permit, or duplicate
copy thereof, upon complaint of the T ax Commission such person shall
be enjoined from further operating or conduct ing such unlawful
business. In all cases where injunction proceedings are brought
under this article, the Commission shall not be required to furnish
bond, and where notice of su spension, cancellation, revocatio n, or
refusal to issue, extend, or reinstate any license, permit, or
duplicate copy thereof has been given in accordance with the
provisions of this section, no further notice shall be r equired
before the issuance of a temp orary restraining order by the di strict
court.
SECTION 2. AMENDATORY 68 O.S. 2021 , Section 225, as last
amended by Section 2 of Enrolled House Bill No. 2289 of the 1 st
Session of the 59th Oklahoma Legislature, is amended to read a s
follows:
Section 225. A. Any taxpayer aggrieved by any order, ruling,
or finding of the Oklahoma Tax C ommission directly affecting the
taxpayer or aggrieved by a final order of the Tax Commission issued
pursuant to subsection G of Section 221 of this t itle may appeal
therefrom directly to the Supreme Court of Oklahoma. Provided, any
taxpayer appealing fro m a final order of the Tax Commission
assessing a tax or an additional tax or denial of a claim for refund
may opt to file an appeal in district court as provided in
subsection D of this section.
ENR. S. B. NO. 600 Page 4
B. Within thirty (30) days after the date of mailing to th e
taxpayer of the order, ruling, or finding complained of, the
taxpayer desiring to appeal shall:
1. File a petition in error in the office of the Cle rk of the
Supreme Court; and
2. Request that the Tax Commission prepare for filing with the
Supreme Court, within thirty (30) days, the record of the appeal,
certified by the Secretary of the Tax Commission, and consisting of
any citations, findings, judg ments, motions, orders, pleadings and
rulings, together with a transcript of all evidence introduced at
any hearing relative thereto, or such portion of such citations,
findings, judgments, motions, orders, pleadings, rulings, and
evidence as the appealing parties and the Tax Commission m ay agree
to be sufficient to present fully to the Court the questions
involved.
C. Upon request of the taxpayer, the Tax Commission shall
furnish the taxpayer a copy of the proceedings had in connection
with the matter complained of.
D. In lieu of an app eal to the Supreme Court, any taxpayer
aggrieved by a final order of the Tax Commission assessing a tax or
an additional tax or denial of a claim for refund may opt to file an
appeal for a trial de novo in the district cour t of Oklahoma County
or the county in which the taxpayer resides. If the amount in
dispute exceeds Ten Thousand Dollars ($10,000.00), the appeal shall
be heard by a district or associate district judge sitting without a
jury. If the amount in dispute doe s not exceed Ten Thousand Dollars
($10,000.00), the appeal may be heard by a special judge sitting
without a jury. An order resulting from a trial provided pursuant
to this subsection shall be appealable directly to the Supreme Court
of Oklahoma by either party. Such appeal shall be tak en in the
manner and time provided by law for appeal to the Supreme Court from
the district court in civil actions. Upon the filing of an appeal,
the order of the district court shall be superseded and neither
party shall be required to give bond. The pr ovisions of this
subsection shall be applicable for tax periods begi nning after the
effective date of this act January 1, 2014. Provided, if the order
applies to multiple tax periods which begin before and after the
ENR. S. B. NO. 600 Page 5
effective date of this act January 1, 2014, the appeal provided by
this subsection shall be available to th e aggrieved taxpayer.
E. If the appeal is from an order of the Tax Commission or a
district court denying a refund of taxes previously paid and if upon
final determination of the appeal, the order denying the refund is
reversed or modified, the taxes pre viously paid, together with
interest thereon from the date of the filing of the petition in
error at the rate provided in subsection A of Section 217 of thi s
title, shall be refunded to th e taxpayer by the Tax Commission.
F. Such refunds and interest the reon shall be paid by the Tax
Commission out of monies in the Tax Commission clearing account from
subsequent collections from the same source as the origina l tax
assessment, provided that in the event there are insufficie nt funds
for refunds from subseque nt collections from the same source, the
refund shall be paid by the Tax Commission from monies appropriated
by the Legislature to the special refund reserve account for such
purposes as hereinafter provided. There is her eby created within
the official depository of the State Treasury an agency special
account for the Tax Commission for the purpose of making such
refunds as may be required under this section, not otherwise
provided. This account shall consist of monies ap propriated by the
Legislature for the purpose of making refunds under this section.
G. If the appeal be from an order, judgment, finding, or ruling
of the Tax Commission other than one asses sing a tax and from which
a right of appeal is not otherwise spec ifically provided for in this
article, the Uniform Tax Procedure Code, any aggrieved taxpayer may
appeal from that order, judgment, finding, or ruling as provided in
this section. The filing of such an appeal shall supersed e the
effect of such order, judgm ent, ruling, or finding of the T ax
Commission.
H. This section shall be construed to provide to the taxpayer a
legal remedy by action at law in any case where a tax, or the method
of collection or enforcement thereof, or a ny order, ruling, finding,
or judgment of the Tax Commission is complained of, or is sought to
be enjoined in any action in any court of this state or the United
States of America.
ENR. S. B. NO. 600 Page 6
I. All hearings held in proceedings pursu ant to this section
shall be confidential and shall be held in clo sed court without
admittance of any person other than interested parties, their
counsel, and employees of the Oklahoma Tax Commission and its
counsel. Confidential information Information designated by a party
as confidential that is filed with or submitted to the Supreme Court
or district court in conjunction with any proceeding pursuant to
this section shall not constitute a public record and shall be
sealed by the court. Access to confidential information shall be
strictly controlled Any party seeking to file confidential materials
shall place the materials in a sealed manila envelope clearly marked
with the caption and case number, the word “CONFIDENTIAL”, and a
reference to this section of the Oklahoma Statutes .
SECTION 3. AMENDATORY 68 O.S. 2021, Section 1364, as
last amended by Section 7 of Enrolled House Bill No. 2289 of the 1 st
Session of the 59th Oklahoma Legislature, is amended to rea d 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 or Group Three vendor,
pursuant to Section 1363 of this title, shall be required to secure
from the Oklahoma Tax Commiss ion every three (3) years a written
permit for a fee of Twenty Dollars ($20.00) prior to enga ging in
such business in this state. Each such person shall file with the
Tax Commission an appli cation for a permit to engage in or transact
business in this sta te, setting forth such information a s the Tax
Commission may require. The application shall be signed by the
owner of the business or representative of the business entity and
as a natural person, and, in the case of a corporation, 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 guardian may apply for a permit on behalf
of an individual or sole proprietor who is not at least eighteen
(18) years of age, provided the parent or legal guardian will be
considered the authorized user responsible for remitting state tax.
B. Upon receipt of an initial application, the Tax Commissi on
may issue a probationary permit effective for six (6) months w hich
will automatically renew for an additional thirty (30) months unless
ENR. S. B. NO. 600 Page 7
the applicant receives written notification of the refusal of the
Commission to renew the permit. If the applicant receives a Within
twenty (20) days of the date of the written noti fication of the
notice of refusal, t he 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 t he matter for hearing and
give ten (10) days' notice in writing o f 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 compliance
with all state tax laws.
C. Holders of a probationary permit as provided in subsection B
of this section shall not be permitted to pre sent the permit to
obtain a commercial license plate fo r their motor vehicle as
provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
D. Upon verification that the applicant is a Group Three
vendor, the Tax Commission may require such applicant to furnish a
surety bond or other security as the Com mission may deem necessary
to secure payment of taxes under this article, prior to issuance of
a permit for the place of business set forth in the application for
permit. Provided, the Tax Commission i s hereby authorized to set
guidelines, by adoption of regulations, for the issuance of sales
tax permits. Pursuant to said the guidelines the Tax Commissi on may
refuse to issue permits to any Group Three vendors, or any class of
vendors included in the wh ole classification of Group Three vendors,
if the Tax Commission determines that it is likely this state will
lose tax revenue due to the difficulty of enf orcing this article for
any reasons stated in subsection (T) paragraph 21 of Section 1354 of
this title.
E. A separate permit for each additional place o f business to
be operated must be obta ined 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 o f business in this
state, upon proper application therefor and verification thereof by
the Tax Commission.
F. A permit is not assignable and shall be valid only for t he
person in whose name it is issued and for the transaction of
business at the place de signated therein. The permit shall at all
ENR. S. B. NO. 600 Page 8
times be conspicuously displayed at the place of business fo r which
issued in a position where it can be easily seen. The pe rmit shall
be in addition to all oth er permits required by the laws of this
state. Provided, if the location of the business i s changed, such
person shall file with the Tax Commission an app lication for a
permit to engage in or transact business at the ne w location. Upon
issuance of the permit to the new location of such business, no
additional permit fee shall be due until the expiration of the
permit issued to the previous 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 tangi ble personal
property or services within this state unless a wri tten permit or
permits shall have been issued to such person. An y person who
engages in a business s ubject to the provisions of this section
without a permit or permits, or after a permit has been suspended,
upon conviction, shall be guilty of a misdemean or punishable by a
fine of not more than One Thousand Dollars ($1 ,000.00). Any person
convicted of a second or subsequent violation hereof shall be gui lty
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 custody of the Departm ent of Corrections for not more
than two (2) years, or both such fine and imprisonment.
H. Any person operating under a permit as provided in this
article shall, upon discontinuance of business by sale or otherwise,
return such permit to the Tax Commissio n for cancellation, together
with a remittance for any unpaid or accrued taxes. Failu re to
surrender a permit and pay any and all accrued taxes will be
sufficient cause for the Tax Commission to refuse to issue a permit
subsequently to such person to enga ge in or transact any other
business in this state. In the case of a sale of any busi ness, the
tax shall be deemed to be due o n 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 this state have been settled.
I. All permits issued under the pro visions 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
ENR. S. B. NO. 600 Page 9
state. No refund of the fee shall be made if the busine ss is
terminated prior to the expiration o f the permit.
J. Whenever a holder of a permit fails to comply with any
provisions of this article, the Tax Commission, after gi ving ten
(10) twenty (20) days' notice in writing of the time and place of
hearing to show cause why the permit should not be r evoked, 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 bec omes delinquent for a period of three (3)
months or more 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 proper 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 vend ors. The permit
shall be in such form as the T ax 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 rese lling.
M. All monies received pursuant to is suance 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 ti tle,
the Oklahoma Tax Commission is authoriz ed 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 o peration if different from ownership
(DBA);
4. Mailing address;
ENR. S. B. NO. 600 Page 10
5. Business address;
6. Business class, North American Indus try Classification
System (NAICS), or Standard Industrial Code Classification (SIC);
and
7. Effective date and expiration or can cellation date of
permit.
Release of such information shall be limited t o tax remitters
for the express purpose of determining the validity of sales permits
presented as evidence of purchasers' sales tax resale status under
this Oklahoma Tax Code.
The provisions of this subsection shall be s trictly 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 ba sis, with
periodic updates, and su fficient fee charged, not to exceed One
Hundred Fifty Dollars ($150.00) per year, to offset the
administrative costs of providing the list. All revenue received by
the Oklahoma Tax Comm ission from such fees shall be depos ited to the
credit of the Oklahoma Tax Commission Revolving Fund. No liability
whatsoever, civil or criminal, shall attach to any member of the Tax
Commission or any employee thereof for any error or omission in the
disclosure of information pursuant to t his 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
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 4. This act shall become effective November 1, 2023.
ENR. S. B. NO. 600 Page 11
Passed the Senate the 26th day of May, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the 26th day of May, 2023.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________