Oklahoma 2025 Regular Session

Oklahoma House Bill HB1279 Compare Versions

Version 1 (Old)

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3		-	SENATE FLOOR VERSION - HB1279 SFLR Page 1
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	3	+	ENGR. H. B. NO. 1279 Page 1 1
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33	28		ENGROSSED HOUSE
34	29		BILL NO. 1279 By: Caldwell (Chad) of the
35	30		House
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37	32		and
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39	34		Daniels of the Senate
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45	40		An Act relating to revenue and taxation; amending 68
46	41		O.S. 2021, Section 221, as amended by Section 1,
47	42		Chapter 113, O.S.L. 2023 (68 O.S. Supp. 2024, Sectio n
48	43		221), which relates to the Uniform Tax Procedure
49	44		Code; modifying provisions related to protest
50	45		process; modifying provisions related to taxpayer
51	46		protest; prescribing procedures for protest with
52	47		respect to denial of certain tax credit; providing
53	48		for oral hearing before the Oklahoma Tax Commission;
54	49		requiring written order; prescribing procedures for
55	50		appeal; and declaring an emergency.
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61	56		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
62	57		SECTION 1. AMENDATORY 68 O.S. 2021, Sec tion 221, as
63	58		amended by Section 1, Chapter 113, O.S.L. 2023 (68 O.S. Supp. 2024,
64	59		Section 221), is amended to read as follows:
65	60		Section 221. A. If any taxpayer shall fail to make any report
66	61		or return as required by any state tax law, the Oklahoma Tax
67	62		Commission, from any information in its possession or obtainable by
68	63		it, may determine the correct amount of tax for the taxable period.
	64	+	If a report or return has been filed, the Tax Commission shall
	65	+	examine such report or return and make such audit or investig ation
69	66
70		-	SENATE FLOOR VERSION - HB1279 SFLR Page 2
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	67	+	ENGR. H. B. NO. 1279 Page 2 1
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96		-	If a report or return has been filed, the Tax Commission shall
97		-	examine such report or re turn and make such audit or investigation
98	92		as it may deem necessary. If, in cases where no report or return
99	93		has been filed, the Tax Commission determines that there is a tax
100	94		due for the taxable period, or if, in cases where a report or return
101	95		has been filed, the Tax Commission shall determin e that the tax
102	96		disclosed by such report or return is less than the tax disclosed by
103	97		its examination, it shall in writing propose th e assessment of taxes
104	98		or additional taxes, as the case may be, and shall mail a copy of
105	99		the proposed assessment to the taxpay er at the taxpayer's last -known
106	100		address. Proposed assessments made in the name of the "Oklahoma Tax
107	101		Commission" by its authorized agents shall be considered as the
108	102		action of the Tax Commission.
109	103		B. Any assessment, correction or adjustment made as a result of
110	104		an office audit shall be presumed to be the result of an audit of
111	105		the report or return only, and such office audit shall not be deemed
112	106		a verification of any item in the report or return unless the item
113	107		shall have been made the subject of a hearing befo re the Tax
114	108		Commission, and the correctness and amount of such item determined
115	109		at such hearing; and such office audit shall not preclude the Tax
116	110		Commission from subsequently making further adjustment, correction
117	111		or assessment as a result of a field audit of the books and records
118	112		of the taxpayer, wherever located, or upon disclosures from any
119	113		source other than the return. In cases wher e no report or return
	114	+	has been filed, the assessment of the tax on any information
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121		-	SENATE FLOOR VERSION - HB1279 SFLR Page 3
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	116	+	ENGR. H. B. NO. 1279 Page 3 1
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147		-	has been filed, the assessment of the tax on any information
148	141		available shall in no event preclude the a ssessment at any time on
149	142		subsequently disclosed information.
150	143		C. Within sixty (60) days after the date indicated on the
151	144		aforesaid proposed assessment, the taxpayer may file with the Tax
152	145		Commission a written protest under oath, signed by the taxpayer or
153	146		the taxpayer's duly authorized agent, on such a form as the Tax
154	147		Commission may prescribe, setting out therein:
155	148		1. A statement of the amount of deficiency as determined by the
156	149		Tax Commission, the nature of the tax and the amount thereof in
157	150		controversy;
158	151		2. A clear and concise assignment of each error alleged to have
159	152		been committed by the Tax Commission;
160	153		3. The argument and legal authority upon which each assignment
161	154		of error is made; provided, that the applicant shall not be bound or
162	155		restricted in such hearing , or on appeal, to the arguments and legal
163	156		authorities contained and cited in the application;
164	157		4. A statement of relief sought by the taxpayer; and
165	158		5. A verification by the taxpayer or the taxpayer's duly
166	159		authorized agent that the statements and facts co ntained therein are
167	160		true.
168	161		D. If in such written protest the taxpayer shall request an
169	162		oral hearing, the Tax Commission shall grant such hearing, and
170	163		shall, by written notice, advise the taxpayer of a date, which shall
	164	+	not be less than ten (10) days from t he date of mailing of such
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172		-	SENATE FLOOR VERSION - HB1279 SFLR Page 4
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	166	+	ENGR. H. B. NO. 1279 Page 4 1
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198		-	not be less than ten (10) days from the date of mailing of such
199	191		written notice, when such taxpayer may appear before the Tax
200	192		Commission and present arguments and eviden ce, oral or written, in
201	193		support of the protest. Hearings shall be held as soon as
202	194		practicable. In the event an oral hearing is not requested, the Tax
203	195		Commission shall proceed without further notice to examine into the
204	196		merits of the protest and enter an order in accordance with its
205	197		findings. Upon request of any taxpayer and upon proper showing that
206	198		the principle of law involve d in the assessment of any tax is
207	199		already pending before the courts for judicial determination, the
208	200		taxpayer, upon agreement to abi de by the decision of the court, may
209	201		pay the tax so assessed under protest and such protest shall be
210	202		resolved in accordance w ith the agreement to abide.
211	203		E. If the taxpayer fails to file a written protest within the
212	204		sixty-day period herein provided for or within the period as
213	205		extended by the Tax Commission, or if the taxpayer fails to file the
214	206		notice required by Section 226 of t his title within thirty (30) days
215	207		from the date indicated on the proposed assessment, then the
216	208		proposed assessment, without further action of the Tax Commission,
217	209		shall become final and absolute. A taxpayer who fails to file a
218	210		protest to an assessment of t axes within the time period prescribed
219	211		by this section may, within one (1) year of the date the assessment
220	212		becomes final, request the Tax Commission to adjust or abate the
221	213		assessment if the taxpayer can demonstrate, by a preponderance of
	214	+	the evidence, that the assessment or some portion thereof is clearly
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223		-	SENATE FLOOR VERSION - HB1279 SFLR Page 5
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	216	+	ENGR. H. B. NO. 1279 Page 5 1
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249		-	the evidence, that the assessment or some portion thereof is clearly
250	241		erroneous. If the Tax Commission determines that the proper showing
251	242		has been made, the assessment or portion thereof determined to be
252	243		clearly erroneous shall be deemed not to have become final and
253	244		absolute. No hearing to adjust or abate a clearly erroneous
254	245		assessment may be granted after the Tax Commission's denial of such
255	246		a request. An order of the Tax Commission denying a taxpayer's
256	247		request to adjust or abate an assessment alleged to be clearly
257	248		erroneous is not an appealable order under Section 225 of this
258	249		title. No proceeding instituted by the Tax Commission to collect a
259	250		tax liability may be stayed because of a request made by a taxpayer
260	251		to adjust or abate an assessment alleged to be clearly erroneous .
261	252		F. The Tax Commission may in its discretion extend the time for
262	253		filing a protest for any period of time not to exceed an additional
263	254		ninety (90) days. Any extension granted shall not extend the period
264	255		of time within which the notice required by Section 226 of this
265	256		title may be filed.
266	257		G. Within a reasonable time after the hearing herein provided
267	258		for, the Tax Commission shall make a nd enter an order in writing in
268	259		which it shall set forth the disposition made of the protest and a
269	260		copy of such order shall f orthwith be mailed to the taxpayer. The
270	261		order shall contain findings of fact and conclusions of law. After
271	262		removing the identity of the taxpayer, the Tax Commission shall make
272	263		the order available for public inspection and shall publish those
	264	+	orders the Tax Commission deems to be of precedential value. The
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274		-	SENATE FLOOR VERSION - HB1279 SFLR Page 6
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	266	+	ENGR. H. B. NO. 1279 Page 6 1
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300		-	orders the Tax Commission deems to be of precedential value. The
301	291		taxpayer may appeal the order within the time and in the manner
302	292		provided for by Section 225 of this title , appeal to the Supreme
303	293		Court, but in the event the taxpayer fails to so proceed, the order
304	294		shall, within thirty (30) days from the date a certified copy
305	295		thereof is mailed to the taxpayer, become final. The provisions of
306	296		Section 226 of this title shall not apply where a proposed
307	297		assessment or an assessment of taxes has been permitted to become
308	298		final.
309	299		H. In all instances where the proposed assessment or the
310	300		assessment of taxes or additional taxes has been permitted to become
311	301		final, a certified copy of the assessment may be filed in the office
312	302		of the county clerk of any county in this state, and upon b eing so
313	303		filed, the county clerk shall enter same upon the judgment docket in
314	304		the same manner as provided for in connection with judgments of
315	305		district courts. When an assessment is so filed and docketed, it
316	306		shall have the same force and be subject to the s ame law as a
317	307		judgment of the district court, and accordingly it shall constitute
318	308		a lien on any real estate of the taxpayer located in the county
319	309		wherein filed; and execution may issue and proceedings in aid of
320	310		execution may be had the same as on judgments of district courts.
321	311		Such lien is hereby released and extinguished upon the payment of
322	312		such assessment, or, except as otherwise provided herein, upon the
323	313		expiration of ten (10) years after the date upon which the
	314	+	assessment was filed in the office of the c ounty clerk; provided,
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	316	+	ENGR. H. B. NO. 1279 Page 7 1
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351		-	assessment was filed in the office of the county clerk; provided,
352	341		the Tax Commission may, prior to the release and extinguishment of
353	342		such lien, refile the assessment one time in the office of the
354	343		county clerk. An assessment so refiled shall continue the lien
355	344		until payment of the assessment, or upo n the expiration of ten (10)
356	345		years after the date upon which the assessment was refiled in the
357	346		office of the county clerk. The remedies provided in this
358	347		subsection shall be in addition to other remedies provided by law.
359	348		All active liens evidenced by an a ssessment filed with a county
360	349		clerk's office prior to November 1, 1989, shall be released and
361	350		extinguished if the assessment is not refiled prior to November 1,
362	351		2001.
363	352		I. In order to make more definite the intention of the
364	353		Legislature in connection with th e applicability or lack of
365	354		applicability of the refund provisions of the tax statutes to those
366	355		treating with proposed assessments and assessments that have become
367	356		final, the Legislature being cognizant of the fact that such intent
368	357		has been questioned, it i s declared to be the intent of the
369	358		Legislature that the refund provisions shall be without application
370	359		to taxes where the amount th ereof has been determined by an
371	360		assessment, other than an assessment designated as an "office
372	361		audit", that has become final.
373	362		J. Within fifteen (15) days after electronic notification of
374	363		the denial of a tax credit authorized by Section 28 -101 of Title 70
	364	+	of the Oklahoma Statutes, a taxpayer may file with the Tax
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376		-	SENATE FLOOR VERSION - HB1279 SFLR Page 8
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	366	+	ENGR. H. B. NO. 1279 Page 8 1
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402		-	of the Oklahoma Statutes, a taxpayer may file with the Tax
403	391		Commission a written protest under oath, signed by the taxpayer or
404	392		the taxpayer’s duly authorized agent, on such a form as the Tax
405	393		Commission may prescribe. If the taxpayer fails to file a written
406	394		protest within the fifteen -day period, then the denial shall become
407	395		final and absolute.
408	396		1. If in such timely written protes t the taxpayer shall request
409	397		an oral hearing, the Tax Commission shall set a date for hearing
410	398		upon the protest. The Tax Commission shall, by written notice,
411	399		advise the taxpayer of the time and place of the hearing, which
412	400		shall not be less than ten (10) da ys from the date of mailing of
413	401		such written notice, when such taxpayer may appear before the Tax
414	402		Commission and present arguments a nd evidence, oral or written, in
415	403		support of the protest.
416	404		2. Within sixty (60) days after the written protest is filed,
417	405		the Tax Commission shall make and enter an order in writing in which
418	406		it shall set forth the disposition made of the protest and a copy of
419	407		such order shall forthwith be mailed to the taxpayer. The order
420	408		shall contain findings of fact and conclusions of law. T he taxpayer
421	409		may appeal the order within the time and in the manner provided for
422	410		by Section 225 of this title, but in the event the taxpayer fails to
423	411		so proceed, the order shall, within thirty (30) days from the date a
424	412		certified copy thereof is mailed to the taxpayer, become final.
	413	+	SECTION 2. It being immediately necessary for the preservation
	414	+	of the public peace, health or safety, an emergency is here by
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	416	+	ENGR. H. B. NO. 1279 Page 9 1
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452		-	SECTION 2. It being immediately necessary for the preservation
453		-	of the public peace, he alth or safety, an emergency is hereby
454	441		declared to exist, by reason whereof this act shall take effect and
455	442		be in full force from and after its passage and approval.
456		-	COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
457		-	April 7, 2025 - DO PASS
	443	+	Passed the House of Representatives the 10th day of March, 2025.
	444	+
	445	+
	446	+
	447	+
	448	+	Presiding Officer of the House
	449	+	of Representatives
	450	+
	451	+
	452	+
	453	+	Passed the Senate the ____ day of __________, 2025.
	454	+
	455	+
	456	+
	457	+
	458	+	Presiding Officer of the Senate
	459	+
	460	+
	461	+
	462	+