Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB583 Compare Versions

Version 1 (Old)

Version 2 (New)

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	3	+	ENGR. S. B. NO. 583 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 60th Legislature (2025)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 583 By: Rader of the Senate
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38	31		and
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40	33		Pfeiffer of the House
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45	38		An Act relating to sales tax; amending 68 O.S. 2021,
46	39		Section 1368.3, which relates to noncompliant
47	40		taxpayer; modifying definition; expanding certain
48	41		requirements to avoid closure of business and provide
49	42		defense to the closure of business; and providing an
50	43		effective date.
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55	48		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
56	49		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1368.3, is
57	50		amended to read as follows:
58	51		Section 1368.3. A. As used in this section, “noncompliant
59	52		taxpayer” means any taxpayer operating under a sales tax permit who,
60	53		within any consecutive twenty -four-month period, has failed to
61	54		timely file two reports or timely remit tax due for any two (2)
62	55		months, as required under the provisions of any tax law. Provided,
63	56		a taxpayer shall not be deemed noncompliant for nonpayment of income
64	57		taxes.
	58	+	B. In addition to all other remedies provided by law for the
	59	+	collection of unpaid taxes, the Oklahoma Tax Commission may close
	60	+	the business of a noncompliant taxpayer, subject to the
	61	+	administrative and judicial appeal procedures provided in this
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66		-	SB583 HFLR Page 2
67		-	BOLD FACE denotes Committee Amendments. 1
	63	+	ENGR. S. B. NO. 583 Page 2 1
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92		-	B. In addition to all other remedies provided by law for the
93		-	collection of unpaid taxes, the Oklahoma Tax Commission may close
94		-	the business of a noncompliant taxpayer, subject to the
95		-	administrative and judicial appeal procedures provided in thi s
96	88		section, if the noncompliant taxpayer, within any consecutive
97	89		twenty-four-month period, fails to timely file three reports or
98	90		timely remit tax due for any three (3) months, as required under the
99	91		provisions of any tax law.
100	92		C. 1. The Tax Commission shall give notice to a noncompliant
101	93		taxpayer that the third delinquency in reporting or remitting tax in
102	94		any consecutive twenty-four-month period will result in the closure
103	95		of the business. The notice must be in writing and delivered to the
104	96		noncompliant taxpayer by the United States Postal Service or by hand
105	97		delivery.
106	98		2. If the noncompliant taxpayer has a third delinquency in
107	99		reporting or remitting tax in any consecutive twenty -four-month
108	100		period after the issuance o f the notice provided in paragraph 1 of
109	101		this subsection, the Tax Commission shall notify the noncompliant
110	102		taxpayer by certified mail or by hand delive ry that the business
111	103		will be closed within five (5) business days from the date of the
112	104		delivery or attempted delivery of the notice unless the noncompliant
113	105		taxpayer makes arrangements with the Tax Commission to satisfy the
114	106		tax delinquency. When the fifth day falls on a Saturday, Sunday, or
115	107		legal holiday, the performance of the act is considered timely if it
	108	+	is performed on the next succeeding business day that is not a
	109	+	Saturday, Sunday, or legal holiday.
	110	+	D. A noncompliant taxpayer may avoid closure of the business
	111	+	by:
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117		-	SB583 HFLR Page 3
118		-	BOLD FACE denotes Committee Amendments. 1
	113	+	ENGR. S. B. NO. 583 Page 3 1
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143		-	is performed on the next succeeding business d ay that is not a
144		-	Saturday, Sunday, or legal holiday.
145		-	D. A noncompliant taxpayer may avoid closure of the business
146		-	by:
147	138		1. Filing all delinquent reports and remitting the delinquent
148	139		tax including any interest and penalty; or
149	140		2. a. Entering into a payment agreement approved by the Tax
150	141		Commission to satisfy the tax delinquency , and
151	142		b. Filing all required report s and remitting all taxes
152	143		due for a consecutive twenty -four-month period.
153	144		E. The decision to close the bu siness of a noncompliant
154	145		taxpayer will be final and absolute if the noncompliant taxpayer
155	146		fails to request an administrative hearing as provided in su bsection
156	147		F of this section.
157	148		F. 1. A noncompliant taxpayer may request an administrative
158	149		hearing concerning the decision of the Tax Commission to close the
159	150		business of a noncompliant taxpayer by filing with the Tax
160	151		Commission a written protest, signed by the noncompliant taxpayer or
161	152		the authorized agent of the noncompliant taxpayer, stating the
162	153		reasons for opposing the closure of the business and requesting an
163	154		administrative hearing. The protest shall be timely if filed within
164	155		five (5) business days after the delivery or attempted delivery of
165	156		the notice required by paragraph 2 of subsection C of this section.
	157	+	2. A noncompliant taxpayer may request that an administrative
	158	+	hearing be held in person, by telephone, upon written documents
	159	+	furnished by the nonco mpliant taxpayer, or upon written documents
	160	+	and any evidence produced by the noncompliant taxpayer at an
	161	+	administrative hearing. The Tax Commission shall have the
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167		-	SB583 HFLR Page 4
168		-	BOLD FACE denotes Committee Amendments. 1
	163	+	ENGR. S. B. NO. 583 Page 4 1
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193		-	2. A noncompliant taxpayer may request that an administrative
194		-	hearing be held in person, by telephone, upon written documents
195		-	furnished by the noncompliant taxpayer, or upon written documents
196		-	and any evidence produced by the noncompliant taxpayer at an
197		-	administrative hearing. The Tax Commission sh all have the
198	188		discretion to determine whether an administrative hearing at which
199	189		testimony is to be presen ted will be conducted in person or by
200	190		telephone. A noncompliant taxpayer who requests an administrative
201	191		hearing based upon written documents is not entitled to any other
202	192		administrative hearing prior to the date a decision is rendered by
203	193		the hearing officer.
204	194		3. The administrative hearing will be conducted by a hearing
205	195		officer appointed by the Tax Commission. The hearing officer will
206	196		set the time and place for a hearing and will give the noncompliant
207	197		taxpayer notice of the hearing. The noncompliant taxpay er may be
208	198		represented by an authorized representative and may present evidence
209	199		in support of the position of the noncompliant taxpayer.
210	200		4. The administrative hearing will be held within fourteen (14)
211	201		calendar days of receipt by the Tax Commission of the r equest for
212	202		hearing, as required in paragraph 1 of this subsection. The Tax
213	203		Commission shall give the nonc ompliant taxpayer at least five (5)
214	204		days’ notice of the hearing.
215	205		G. The defense or defenses to the closure of a business under
216	206		this section include w ritten proof that the noncompliant taxpayer:
	207	+	1. Filed all delinquent returns and paid the delinquent tax due
	208	+	including interest and penalty; or
	209	+	2. a. Has entered into a written payment agreement, approved
	210	+	by the Tax Commission prior to the hearing, to sat isfy
	211	+	the tax delinquency, and
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218		-	SB583 HFLR Page 5
219		-	BOLD FACE denotes Committee Amendments. 1
	213	+	ENGR. S. B. NO. 583 Page 5 1
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244		-	1. Filed all delinquent returns and paid the delinquent tax due
245		-	including interest and penalty; or
246		-	2. a. Has entered into a written payment agreement, approved
247		-	by the Tax Commission prior to the hearing, to satisfy
248		-	the tax delinquency, and
249	238		b. Has had no more than three (3) instances of untimely
250	239		filed reports or lat e tax remittances during a
251	240		consecutive twenty-four-month period.
252	241		H. 1. The decision of the hearing officer must be rendered in
253	242		writing with copies d elivered to the noncompliant taxpayer by the
254	243		United States Postal Service or by hand delivery.
255	244		2. If the decision of the hearing officer is to affirm the
256	245		closure of the business, the decision shall be submitted in writing
257	246		and delivered by the United State s Postal Service or by hand to the
258	247		noncompliant taxpayer.
259	248		3. The noncompliant taxpayer may seek judicial relief from the
260	249		decision of a hearing officer as provided in Section 225 of Title 68
261	250		of the Oklahoma Statutes for relief from a final order of the Tax
262	251		Commission.
263	252		I. The procedures established by this section are the sole
264	253		methods for seeking relief from a written decision to close the
265	254		business of a noncompliant taxpayer.
266	255		J. After being given notice of an order of closure of a
267	256		business pursuant to this section, it shall be unlawful for any
	257	+	person to continue to operate the business. If a person continues
	258	+	or threatens to continue the unlawful operation of the business
	259	+	after having received proper notice of the closure, upon complaint
	260	+	of the Tax Commission, the person shall be enjoined from further
	261	+	operating or conducting the unlawful business. In all cases where
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269		-	SB583 HFLR Page 6
270		-	BOLD FACE denotes Committee Amendments. 1
	263	+	ENGR. S. B. NO. 583 Page 6 1
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295		-	person to continue to operate the business. If a person continues
296		-	or threatens to continue the unlawful operati on of the business
297		-	after having received proper notice of the closure, upon complaint
298		-	of the Tax Commission, the person shall be enjoined from further
299		-	operating or conducting the unlawful business. In all cases where
300	288		injunction proceedings are brought under this subsection, the Tax
301	289		Commission shall not be required to furnish bond. Where notice of
302	290		closure has been given in accordance with the provisions of this
303	291		section, no further notice shall be required before the issuance of
304	292		a temporary restraining order.
305	293		K. If a noncompliant taxpayer fails to timely seek
306	294		administrative or judicial review of a business cl osure decision
307	295		pursuant to this section, or if the business closure decision is
308	296		affirmed after administrative or judicial review, the Tax Commission
309	297		shall affix a written notice to all entrances of the business that:
310	298		1. Identifies the business as being su bject to a business
311	299		closure order; and
312	300		2. States that the business is prohibited from further
313	301		operation.
314	302		SECTION 2. This act shall become effective November 1, 2025.
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316		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
317		-	04/17/2025 – DO PASS.
	304	+	ENGR. S. B. NO. 583 Page 7 1
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	329	+	Passed the Senate the 12th day of March, 2025.
	330	+
	331	+
	332	+
	333	+	Presiding Officer of the Senate
	334	+
	335	+
	336	+	Passed the House of Representatives the ____ day of __________,
	337	+	2025.
	338	+
	339	+
	340	+
	341	+	Presiding Officer of the House
	342	+	of Representatives
	343	+