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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 2730 By: Kendrix
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 217 and 2385.13, which relate to
tax interest rates; modifying interest rate;
clarifying application of interest rate change;
providing for noncodification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Se ction 217, is
amended to read as follows:
Section 217. A. If any amount of t ax imposed or levied by any
state tax law, or any part of such amount, is not paid before such
tax becomes delinquent, there shall be collected on the total
delinquent tax intere st at the rate of one and one-quarter percent
(1 1/4%) per month annual rate calculated using Wall Street Prime,
as of January 1 of that year, plus three percentage points from the
date of the delinquency until paid.
B. Interest upon any amount of state t ax determined as a
deficiency, under the provisions of Section 221 of this tit le, shall
be assessed at the same time as the deficiency and shall be paid
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upon notice and demand of the Oklahoma Tax Commission at the rate of
one and one-quarter percent (1 1/4 %) per month annual rate
calculated using Wall Street Prime, as of January 1 of that year,
plus three percentage points from the date prescribed in the state
tax law levying such tax for the payment thereof to the date the
deficiency is assessed.
C. If any tax due under state sales, use, tourism, mixed
beverage gross receipts, or m otor fuel tax laws, or any part
thereof, is not paid within fifteen (15) days after such tax becomes
delinquent a penalty of ten percent (10%) on the total amount of tax
due and delinquent shall be added thereto, collected and paid.
However, the Tax Commission shall not collect the penalty assessed
if the taxpayer remits the tax and interest within sixty (60) days
of the mailing of a proposed assessment or voluntarily pays the ta x
upon the filing of an amended return.
D. If any tax due under any state tax law other than those
specified in subsection C of this section, or any part thereof, is
not paid within thirty (30) days after such tax becomes delinquent a
penalty of ten perce nt (10%) on the total amount of tax due and
delinquent shall be added thereto, collected and paid. However, the
Tax Commission shall not collect the penalty assessed if the
taxpayer remits the tax and interest within sixty (60) days of the
mailing of a proposed assessment or voluntarily pays the tax upon
the filing of an amended re turn.
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E. If any part of any deficiency, arbitrary or jeopardy
assessment made by the Tax Commission is based upon or occasioned by
the taxpayer's negligence or by the failure or refusal of any
taxpayer to file with the Tax Commission any report or return, as
required by this title, or by any state tax law, within ten (10)
days after a written demand for such report or return has been
served upon any taxpayer by the Tax Commission by letter, the Tax
Commission may assess and collect, as a penalty, twenty -five percent
(25%) of the amount of the assessment. For purposes of this
subsection, "negligence" shall mean the consistent understatement of
income, consistent understatement of receipts or a system of
recordkeeping by the taxpayer that consistently results in an
inaccurate reporting of tax liability.
F. If any part of any deficiency is due to fraud with intent to
evade tax, then fifty percent (50%) of the total amount of the
deficiency, in addition to such deficiency, including interest as
herein provided, shall be added, collected and paid.
G. All penalties or interest imposed by this title, or any
state tax law, shall be recoverable by the Tax Commission as a part
of the tax with respect to which they are imposed, the penalties
bearing interest as provided in this section for the tax, and all
penalties and interest shall be apportioned as provided for the
apportionment of the tax on which such penalties or interest are
collected.
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H. 1. Whenever an income tax refund is not paid to the
taxpayer within ninety (90) days after the return is filed or due,
whichever is later, with all documents as required by the Tax
Commission, entitling the taxpayer to a refund, then the Tax
Commission shall pay interest on the refund, at the same rate
specified for interest on delinquent tax payments. The payment of
interest on refunds provided for by this section shall apply to tax
year 1987 and subsequent tax years. The Tax Commission shall not be
required to pay interest on an income tax refund which is applied,
in whole or in part, to a prior year tax liability pursuant to
Section 2385.17 of this title or upon an income tax refund applied,
in whole or in part, to satisfy a debt owed to the Int ernal Revenue
Service of the United States or to a state agency, including the
Oklahoma Tax Commission, as provided by Section 205.2 of this title.
2. For tax returns filed after January 1, 2004, and before
January 2, 2010, whenever an income tax refund i s not paid to the
taxpayer within the following number of days after the incom e tax
return is filed with all documents as required by the Tax Commission
or after the income tax return is due, whichever is later, entitling
the taxpayer to a refund, then the Tax Commission shall pay interest
on the refund at the same rate specified for interest on delinquent
tax payments:
a. for returns filed electronically, thirty (30) days,
and
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b. for all other returns, one hundred fifty (150) days.
3. For tax returns file d after January 1, 2010, whenever an
income tax refund is not paid to the taxp ayer within the following
number of days after the income tax return is filed or due,
whichever is later, with all documents as required by the Tax
Commission entitling the taxpa yer to a refund, then the Tax
Commission shall pay interest on the refund at the same rate
specified for interest on delinquent tax payments:
a. for returns filed electronically, forty -five (45)
days, and
b. for all other returns, ninety (90) days.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2385.13, is
amended to read as follows:
Section 2385.13. A. In the case of any underpayment of the
estimated tax payment required in Section 2385.9 of this title,
there shall be added to the amount of the underpayment interest
thereon at an annual rate of twenty percent (20%) calculated using
Wall Street Prime, as of January 1 of that year, plus three
percentage points for the period of the underpayment.
B. As used in subsection A of this sec tion, the amount of the
underpayment shall be the excess of the required insta llment over
the amount paid on or before the due date of the installment. The
period of underpayment shall run from the due date of the required
installment to the earlier of th e fifteenth day of the fourth month,
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or for corporations, thirty (30) days after the due date for returns
established under the Internal Revenue Code, following the close of
the taxable year or the date on which the required installment is
paid.
C. No addition to tax shall be imposed under subsection A of
this section if the tax sh own on the return for the taxable year is
less than One Thousand Dollars ($1,000.00) or if the taxpayer was an
Oklahoma resident throughout the preceding taxable year of twelve
(12) months and did not have any liability for tax for the preceding
taxable year.
SECTION 3. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
The amended interest rates provided in this act shall apply to
all delinquencies occurring on or after the effective date of t his
act and shall apply to any delinquent account in existence as of the
effective date of this act.
SECTION 4. This act shall become effective November 1, 2025.
60-1-10106 MAH 01/16/25