1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3346 By: Pfeiffer
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6 AS INTRODUCED
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7 An Act relating to revenue and taxation; amending 68
7 O.S. 2021, Sections 105.1, 265, and 1364, as last
8 amended by Section 3, Chapter 359, O.S.L. 2023 (68
8 O.S. Supp. 2023, Section 1364), which relate to state
9 revenue administration; modifying provisions related
9 to certain employee of the Tax Commission; modifying
10 requirements related to position; modifying
10 authorized expenditures from the Oklahoma Tax
11 Commission and Office of Management and Enterprise
11 Services Joint Computer Enhancement Fund; modifying
12 provisions related to revocation of sales tax permit
12 with respect to certain places of business based upon
13 cessation of business activity; providing an
13 effective date; and declaring an emergency.
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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17 SECTION 1. AMENDATORY 68 O.S. 2021, Section 105.1, is
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18 amended to read as follows:
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19 Section 105.1 The Oklahoma Tax Commission shall have the
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20 authority to designate as a peace officer the an employee in the
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21 position of Director of Internal Affairs for the purpose of whose
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22 duties include conducting personnel investigations and background
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23 checks. An employee designated as a peace officer pursuant to this
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24 section shall be certified pursuant to Section 3311 of Title 70 of
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 1 the Oklahoma Statutes, and have the authority to review information
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2 contained in the files of federal, state or local law enforcement
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3 officials in order to conduct the investigations prescribed by this
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4 section. The employee designated as a peace officer shall not be
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5 authorized to carry a firearm nor shall be required to be certified
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6 pursuant to Section 3311 of Title 70 of the Oklahoma Statutes.
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7 SECTION 2. AMENDATORY 68 O.S. 2021, Section 265, is
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8 amended to read as follows:
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9 Section 265. A. There is hereby created in the State Treasury
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10 a fund for the Oklahoma Tax Commission to be known as the "Oklahoma
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11 Tax Commission and Office of Management and Enterprise Services
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12 Joint Computer Enhancement Fund". The fund shall be a continuing
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13 fund, not subject to fiscal year limitations, and shall consist of
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14 all monies deposited to the fund pursuant to law. All monies
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15 accruing to the credit of said fund are hereby appropriated and may
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16 be budgeted and expended for the purposes authorized by subsection B
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17 of this section. Expenditures from said fund shall be made upon
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18 warrants issued by the State Treasurer against claims filed as
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19 prescribed by law with the Director of the Office of Management and
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20 Enterprise Services for approval and payment.
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21 B. Monies in the Oklahoma Tax Commission and Office of
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22 Management and Enterprise Services Joint Computer Enhancement Fund
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23 shall be expended for the following purposes:
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 1 1. To make payments on an agreement authorized by Section 5,
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2 Chapter 278, O.S.L. 2008;
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3 2. To make payments for Information Technology acquisitions to
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4 support the responsibilities of the Oklahoma Tax Commission;
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5 3. To make payments authorized by Section 34.33 of Title 62 of
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6 the Oklahoma Statutes; and
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7 3. 4. To the extent not needed for the above-listed purposes to
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8 be expended on other projects as specifically authorized by the
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9 Legislature.
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10 C. Notwithstanding any other provision of law, there shall be
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11 apportioned to the Oklahoma Tax Commission and Office of Management
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12 and Enterprise Services Joint Computer Enhancement Fund from the
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13 monies that would otherwise be apportioned by Section 2352 of this
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14 title, the revenue received as a result of any contracts entered
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15 into by the Oklahoma Tax Commission pursuant to Section 264 of this
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16 title.
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17 D. The Tax Commission is hereby authorized to deposit to the
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18 credit of the Oklahoma Tax Commission and Office of Management and
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19 Enterprise Services Joint Computer Enhancement Fund any monies in
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20 excess of the amounts necessary to pay all claims presented to its
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21 cash security reserve fund. When monies are deposited to the credit
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22 of the Computer Enhancement Fund, the right of any person to present
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23 a claim for refund of a cash security shall be preserved and the
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24 value thereof shall be paid from the cash security reserve fund.
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 1 E. For the fiscal year beginning July 1, 2015, and thereafter a
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2 portion of the revenue apportioned to the Oklahoma Tax Commission
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3 and Office of Management and Enterprise Services Joint Computer
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4 Enhancement Fund pursuant to Sections 1353, 1403 and 2352 of this
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5 title shall be credited to the Oklahoma Tax Commission, in an amount
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6 which is equal to the sum of one-half of one percent (0.5%) of gross
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7 collections of sales and use tax levied by counties of this state
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8 pursuant to Section 1370 of this title and one-half of one percent
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9 (0.5%) of sales and use tax levied by municipalities of this state
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10 pursuant to Section 2701 of this title.
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11 SECTION 3. AMENDATORY 68 O.S. 2021, Section 1364, as
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12 last amended by Section 3, Chapter 359, O.S.L. 2023 (68 O.S. Supp.
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13 2023, Section 1364), is amended to read as follows:
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14 Section 1364. Permits to do business.
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15 A. Every person desiring to engage in a business within this
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16 state who would be designated as a Group One or Group Three vendor,
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17 pursuant to Section 1363 of this title, shall be required to secure
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18 from the Oklahoma Tax Commission every three (3) years a written
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19 permit for a fee of Twenty Dollars ($20.00) prior to engaging in
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20 such business in this state. Each such person shall file with the
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21 Tax Commission an application for a permit to engage in or transact
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22 business in this state, setting forth such information as the Tax
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23 Commission may require. The application shall be signed by the
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24 owner of the business or representative of the business entity and
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 1 as a natural person, and, in the case of a corporation, as a legally
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2 constituted officer thereof. To obtain a sales tax permit, an
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3 individual or sole proprietor must be at least eighteen (18) years
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4 of age. A parent or legal guardian may apply for a permit on behalf
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5 of an individual or sole proprietor who is not at least eighteen
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6 (18) years of age, provided the parent or legal guardian will be
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7 considered the authorized user responsible for remitting state tax.
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8 B. Upon receipt of an initial application, the Tax Commission
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9 may issue a probationary permit effective for six (6) months which
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10 will automatically renew for an additional thirty (30) months unless
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11 the applicant receives written notification of the refusal of the
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12 Commission to renew the permit. Within twenty (20) days of the date
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13 of the written notification of the notice of refusal, the applicant
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14 may request a hearing to show cause why the permit should be
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15 renewed. Upon receipt of a request for a hearing, the Tax
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16 Commission shall set the matter for hearing and give ten (10) days'
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17 notice in writing of the time and place of the hearing. At the
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18 hearing, the applicant shall set forth the qualifications of the
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19 applicant for a permit and proof of compliance with all state tax
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20 laws.
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21 C. Holders of a probationary permit as provided in subsection B
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22 of this section shall not be permitted to present the permit to
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23 obtain a commercial license plate for their motor vehicle as
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24 provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
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 1 D. Upon verification that the applicant is a Group Three
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2 vendor, the Tax Commission may require such applicant to furnish a
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3 surety bond or other security as the Commission may deem necessary
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4 to secure payment of taxes under this article, prior to issuance of
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5 a permit for the place of business set forth in the application for
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6 permit. Provided, the Tax Commission is hereby authorized to set
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7 guidelines, by adoption of regulations, for the issuance of sales
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8 tax permits. Pursuant to the guidelines the Tax Commission may
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9 refuse to issue permits to any Group Three vendors, or any class of
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10 vendors included in the whole classification of Group Three vendors,
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11 if the Tax Commission determines that it is likely this state will
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12 lose tax revenue due to the difficulty of enforcing this article for
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13 any reasons stated in paragraph 21 of Section 1354 of this title.
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14 E. A separate permit for each additional place of business to
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15 be operated must be obtained from the Tax Commission for a fee of
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16 Ten Dollars ($10.00). Such permit shall be good for a period of
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17 three (3) years. The Tax Commission shall grant and issue to each
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18 applicant a separate permit for each place of business in this
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19 state, upon proper application therefor and verification thereof by
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20 the Tax Commission.
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21 F. A permit is not assignable and shall be valid only for the
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22 person in whose name it is issued and for the transaction of
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23 business at the place designated therein. The permit shall at all
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24 times be conspicuously displayed at the place of business for which
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 1 issued in a position where it can be easily seen. The permit shall
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2 be in addition to all other permits required by the laws of this
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3 state. Provided, if the location of the business is changed, such
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4 person shall file with the Tax Commission an application for a
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5 permit to engage in or transact business at the new location. Upon
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6 issuance of the permit to the new location of such business, no
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7 additional permit fee shall be due until the expiration of the
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8 permit issued to the previous location of such business.
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9 G. It shall be unlawful for any person coming within the class
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10 designated as Group One or the class designated as Group Three to
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11 engage in or transact a business of reselling tangible personal
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12 property or services within this state unless a written permit or
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13 permits shall have been issued to such person. Any person who
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14 engages in a business subject to the provisions of this section
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15 without a permit or permits, or after a permit has been suspended,
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16 upon conviction, shall be guilty of a misdemeanor punishable by a
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17 fine of not more than One Thousand Dollars ($1,000.00). Any person
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18 convicted of a second or subsequent violation hereof shall be guilty
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19 of a felony and punishable by a fine of not more than Five Thousand
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20 Dollars ($5,000.00) or by a term of imprisonment in the custody of
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21 the Department of Corrections for not more than two (2) years, or
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22 both such fine and imprisonment.
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23 H. Any person operating under a permit as provided in this
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24 article shall, upon discontinuance of business by sale or otherwise,
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 1 return such permit to the Tax Commission for cancellation, together
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2 with a remittance for any unpaid or accrued taxes. Failure to
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3 surrender a permit and pay any and all accrued taxes will be
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4 sufficient cause for the Tax Commission to refuse to issue a permit
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5 subsequently to such person to engage in or transact any other
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6 business in this state. In the case of a sale of any business, the
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7 tax shall be deemed to be due on the sale of the fixtures and
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8 equipment, and the Tax Commission shall not issue a permit to
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9 continue or conduct the business to the purchaser until all tax
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10 claims due this state have been settled.
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11 I. All permits issued under the provisions of this article
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12 shall expire three (3) years from the date of issuance at the close
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13 of business at each place or location of the business within this
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14 state. No refund of the fee shall be made if the business is
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15 terminated prior to the expiration of the permit. Whenever the
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16 sales tax reports required to be filed by Section 1365 of this title
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17 indicate there is no business activity at a place of business for a
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18 period of twelve (12) months, the Tax Commission, after giving
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19 twenty (20) days' notice to the permit holder in writing of the time
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20 and place of hearing to show cause why the sales tax permit for that
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21 place of business should not be revoked, may revoke or suspend the
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22 permit pursuant to an order of the Tax Commission after failure to
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23 show cause or failure to appear by the permit holder.
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 1 J. Whenever a holder of a permit fails to comply with any
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2 provisions of this article, the Tax Commission, after giving twenty
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3 (20) days' notice in writing of the time and place of hearing to
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4 show cause why the permit should not be revoked, may revoke or
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5 suspend the permit pursuant to an order of the Tax Commission after
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6 failure to show cause or failure to appear by the permit holder, the
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7 permit to be renewed upon removal of cause or causes of revocation
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8 or suspension. However, if a holder of a permit becomes delinquent
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9 for a period of three (3) months or more in reporting or paying of
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10 any tax due under this article, any duly authorized agent of the Tax
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11 Commission may remove the permit from the taxpayer's premises and it
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12 shall be returned or renewed only upon the filing of proper reports
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13 and payment of all taxes due under this article.
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14 K. Permits are not required of persons coming within the
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15 classification designated as Group Two. The Oklahoma Tax Commission
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16 shall issue a limited permit to Group Five vendors. The permit
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17 shall be in such form as the Tax Commission may prescribe.
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18 L. Nothing in this article shall be construed to allow a permit
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19 holder to purchase, tax exempt, anything for resale that the permit
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20 holder is not regularly in the business of reselling.
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21 M. All monies received pursuant to issuance of such permits to
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22 do business shall be paid to the State Treasurer and placed to the
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23 credit of the General Revenue Fund of the State Treasury.
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 1 N. Notwithstanding the provisions of Section 205 of this title,
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2 the Oklahoma Tax Commission is authorized to release the following
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3 information contained in the Master Sales and Use Tax File to
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4 vendors:
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5 1. Permit number;
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6 2. Name in which permit is issued;
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7 3. Name of business operation if different from ownership
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8 (DBA);
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9 4. Mailing address;
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10 5. Business address;
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11 6. Business class, North American Industry Classification
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12 System (NAICS), or Standard Industrial Classification (SIC); and
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13 7. Effective date and expiration or cancellation date of
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14 permit.
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15 Release of such information shall be limited to tax remitters
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16 for the express purpose of determining the validity of sales permits
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17 presented as evidence of purchasers' sales tax resale status under
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18 this Oklahoma Tax Code.
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19 The provisions of this subsection shall be strictly interpreted
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20 and shall not be co