1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3458 By: Moore
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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, Section 205, as amended by Section 9,
8 Chapter 344, O.S.L. 2022 (68 O.S. Supp. 2023, Section
8 205), which relates to confidential information and
9 the Oklahoma Tax Commission; modifying provisions
9 related to confidential information; authorizing
10 release of certain information to district attorneys
10 and to the Attorney General; authorizing release of
11 information to the Oklahoma Medical Marijuana
11 Authority; and declaring an emergency.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 68 O.S. 2021, Section 205, as
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17 amended by Section 9, Chapter 354, O.S.L. 2022 (68 O.S. Supp. 2023,
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18 Section 205), is amended to read as follows:
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19 Section 205. A. The records and files of the Oklahoma Tax
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20 Commission concerning the administration of the Uniform Tax
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21 Procedure Code or of any state tax law shall be considered
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22 confidential and privileged, except as otherwise provided for by
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23 law, and neither the Tax Commission nor any employee engaged in the
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24 administration of the Tax Commission or charged with the custody of
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 1 any such records or files nor any person who may have secured
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2 information from the Tax Commission shall disclose any information
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3 obtained from the records or files or from any examination or
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4 inspection of the premises or property of any person.
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5 B. Except as provided in paragraph 26 of subsection C of this
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6 section, neither the Tax Commission nor any employee engaged in the
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7 administration of the Tax Commission or charged with the custody of
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8 any such records or files shall be required by any court of this
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9 state to produce any of the records or files for the inspection of
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10 any person or for use in any action or proceeding, except when the
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11 records or files or the facts shown thereby are directly involved in
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12 an action or proceeding pursuant to the provisions of the Uniform
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13 Tax Procedure Code or of the state tax law, or when the
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14 determination of the action or proceeding will affect the validity
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15 or the amount of the claim of the state pursuant to any state tax
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16 law, or when the information contained in the records or files
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17 constitutes evidence of violation of the provisions of the Uniform
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18 Tax Procedure Code or of any state tax law.
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19 C. The provisions of this section shall not prevent the Tax
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20 Commission, or with respect to the Oklahoma Department of Commerce
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21 in administration of the Oklahoma Rural Jobs Act as provided by
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22 paragraph 22 of this subsection, from disclosing the following
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23 information and no liability whatsoever, civil or criminal, shall
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24 attach to any member of the Tax Commission, or the Oklahoma
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 1 Department of Commerce as applicable, or any employee thereof for
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2 any error or omission in the disclosure of such information:
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3 1. The delivery to a taxpayer or a duly authorized
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4 representative of the taxpayer of a copy of any report or any other
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5 paper filed by the taxpayer pursuant to the provisions of the
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6 Uniform Tax Procedure Code or of any state tax law;
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7 2. The exchange of information that is not protected by the
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8 federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
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9 pursuant to reciprocal agreements entered into by the Tax Commission
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10 and other state agencies or agencies of the federal government;
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11 3. The publication of statistics so classified as to prevent
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12 the identification of a particular report and the items thereof;
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13 4. The examination of records and files by the State Auditor
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14 and Inspector or the duly authorized agents of the State Auditor and
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15 Inspector;
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16 5. The disclosing of information or evidence to the Oklahoma
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17 State Bureau of Investigation, Attorney General, Oklahoma State
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18 Bureau of Narcotics and Dangerous Drugs Control, any district
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19 attorney or agent of any federal law enforcement agency when the
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20 information or evidence is to be used by such officials to
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21 investigate or prosecute violations of the criminal provisions of
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22 the Uniform Tax Procedure Code or of any state tax law or of any
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23 federal crime committed against this state. Any information
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24 disclosed to the Oklahoma State Bureau of Investigation, Attorney
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 1 General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
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2 Control, any district attorney or agent of any federal law
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3 enforcement agency shall be kept confidential by such person and not
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4 be disclosed except when presented to a court in a prosecution for
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5 violation of the tax laws of this state or except as specifically
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6 authorized by law, and a violation by the Oklahoma State Bureau of
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7 Investigation, Attorney General, Oklahoma State Bureau of Narcotics
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8 and Dangerous Drugs Control, district attorney or agent of any
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9 federal law enforcement agency by otherwise releasing the
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10 information shall be a felony;
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11 6. The use by any division of the Tax Commission of any
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12 information or evidence in the possession of or contained in any
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13 report or return filed with any other division of the Tax
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14 Commission;
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15 7. The furnishing, at the discretion of the Tax Commission, of
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16 any information disclosed by its records or files to any official
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17 person or body of this state, any other state, the United States or
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18 foreign country who is concerned with the administration or
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19 assessment of any similar tax in this state, any other state or the
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20 United States. The provisions of this paragraph shall include the
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21 furnishing of information by the Tax Commission to a county assessor
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22 to determine the amount of gross household income pursuant to the
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23 provisions of Section 8C of Article X of the Oklahoma Constitution
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24 or Section 2890 of this title. The Tax Commission shall promulgate
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 1 rules to give guidance to the county assessors regarding the type of
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2 information which may be used by the county assessors in determining
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3 the amount of gross household income pursuant to Section 8C of
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4 Article X of the Oklahoma Constitution or Section 2890 of this
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5 title. The provisions of this paragraph shall also include the
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6 furnishing of information to the State Treasurer for the purpose of
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7 administration of the Uniform Unclaimed Property Act;
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8 8. The furnishing of information to other state agencies for
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9 the limited purpose of aiding in the collection of debts owed by
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10 individuals to such requesting agencies;
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11 9. The furnishing of information requested by any member of the
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12 general public and stated in the sworn lists or schedules of taxable
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13 property of public service corporations organized, existing, or
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14 doing business in this state which are submitted to and certified by
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15 the State Board of Equalization pursuant to the provisions of
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16 Section 2858 of this title and Section 21 of Article X of the
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17 Oklahoma Constitution, provided such information would be a public
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18 record if filed pursuant to Sections 2838 and 2839 of this title on
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19 behalf of a corporation other than a public service corporation;
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20 10. The furnishing of information requested by any member of
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21 the general public and stated in the findings of the Tax Commission
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22 as to the adjustment and equalization of the valuation of real and
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23 personal property of the counties of the state, which are submitted
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24 to and certified by the State Board of Equalization pursuant to the
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 1 provisions of Section 2865 of this title and Section 21 of Article X
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2 of the Oklahoma Constitution;
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3 11. The furnishing of information as to the issuance or
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4 revocation of any tax permit, license or exemption by the Tax
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5 Commission as provided for by law. Such information shall be
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6 limited to the name of the person issued the permit, license or
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7 exemption, the name of the business entity authorized to engage in
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8 business pursuant to the permit, license or exemption, the address
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9 of the business entity and the grounds for revocation;
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10 12. The posting of notice of revocation of any tax permit or
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11 license upon the premises of the place of business of any business
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12 entity which has had any tax permit or license revoked by the Tax
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13 Commission as provided for by law. Such notice shall be limited to
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14 the name of the person issued the permit or license, the name of the
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15 business entity authorized to engage in business pursuant to the
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16 permit or license, the address of the business entity and the
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17 grounds for revocation;
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18 13. The furnishing of information upon written request by any
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19 member of the general public as to the outstanding and unpaid amount
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20 due and owing by any taxpayer of this state for any delinquent tax,
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21 together with penalty and interest, for which a tax warrant or a
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22 certificate of indebtedness has been filed pursuant to law;
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23 14. After the filing of a tax warrant pursuant to law, the
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24 furnishing of information upon written request by any member of the
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 1 general public as to any agreement entered into by the Tax
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2 Commission concerning a compromise of tax liability for an amount
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3 less than the amount of tax liability stated on such warrant;
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4 15. The disclosure of information necessary to complete the
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5 performance of any contract authorized by this title to any person
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6 with whom the Tax Commission has contracted;
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7 16. The disclosure of information to any person for a purpose
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8 as authorized by the taxpayer pursuant to a waiver of
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9 confidentiality. The waiver shall be in writing and shall be made
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10 upon such form as the Tax Commission may prescribe;
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11 17. The disclosure of information required in order to comply
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12 with the provisions of Section 2369 of this title;
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13 18. The disclosure to an employer, as defined in Sections
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14 2385.1 and 2385.3 of this title, of information required in order to
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15 collect the tax imposed by Section 2385.2 of this title;
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16 19. The disclosure to a plaintiff of a corporation's last-known
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17 address shown on the records of the Franchise Tax Division of the
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18 Tax Commission in order for such plaintiff to comply with the
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19 requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
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20 20. The disclosure of information directly involved in the
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21 resolution of the protest by a taxpayer to an assessment of tax or
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22 additional tax or the resolution of a claim for refund filed by a
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23 taxpayer, including the disclosure of the pendency of an
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24 administrative proceeding involving such protest or claim, to a
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 1 person called by the Tax Commission as an expert witness or as a
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2 witness whose area of knowledge or expertise specifically addresses
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3 the issue addressed in the protest or claim for refund. Such
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4 disclosure to a witness shall be limited to information pertaining
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5 to the specific knowledge of that witness as to the transaction or
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6 relationship between taxpayer and witness;
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7 21. The disclosure of information necessary to implement an
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8 agreement authorized by Section 2702 of this title when such
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9 information is directly involved in the resolution of issues arising
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10 out of the enforcement of a municipal sales tax ordinance. Such
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11 disclosure shall be to the governing body or to the municipal
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12 attorney, if so designated by the governing body;
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13 22. The furnishing of information regarding incentive payments
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14 made pursuant to the provisions of Sections 3601 through 3609 of
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15 this title, incentive payments made pursuant to the provisions of
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16 Sections 3501 through 3508 of this title, or tax credits claimed
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17 pursuant to the provisions of Sections 1 through 8 of this act;
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18 23. The furnishing to a prospective purchaser of any business,
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19 or his or her authorized representative, of information relating to
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20 any liabilities, delinquencies, assessments or warrants of the
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21 prospective seller of the business which have not been filed of
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22 record, established or become final and which relate solely to the
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23 seller's business. Any disclosure under this paragraph shall only
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24 be allowed upon the presentment by the prospective buyer, or the
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 1 buyer's authorized representative, of the purchase contract and a
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2 written authorization between the parties;
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3 24. The furnishing of information as to the amount of state
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4 revenue affected by the issuance or granting of any tax permit,
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5 license, exemption, deduction, credit or other tax preference by the
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6 Tax Commission as provided for by law. Such information shall be
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7 limited to the type of permit, license, exemption, deduction, credit
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8 or other tax preference issued or granted, the date and duration of
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9 such permit, license, exemption, deduction, credit or other tax
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10 preference and the amount of such revenue. The provisions of this
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11 paragraph shall not authorize the disclosure of the name of the
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12 person issued such permit, license, exemption, deduction, credit or
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13 other tax preference, or the name of the business entity authorized
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14 to engage in business pursuant to the permit, license, exemption,
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15 deduction, credit or other tax preference;
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16 25. The examination of records and files of a person or entity
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17 by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
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18 Control, district attorney or the Attorney General pursuant to a
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19 court order by a magistrate in whose territorial jurisdiction the
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20 person or entity resides, or where the Tax Commission records and
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21 files are physically located. Such an order may only be issued upon
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22 a sworn application by an agent of the Oklahoma State Bureau of
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23 Narcotics and Dangerous Drugs Control or the Attorney General,
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24 certifying that the person or entity whose records and files are to
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 1 be examined is the target of an ongoing investigation of a felony
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2 violation of the Uniform Controlled Dangerous Substances Act and
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3 that information resulting from such an examination would likely be
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4 relevant to that investigation. Any records or information obtained
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5 pursuant to such an order may only be used by the Oklahoma State
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6 Bureau of Narcotics and Dangerous Drugs Control, district attorney
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7 or the Attorney General in the investigation and prosecution of a
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8 felony violation of the Uniform Controlled Dangerous Substances Act
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9 or money laundering pursuant to Section 2001 of Title 21 of the
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10 Oklahoma Statutes. Any such order issued pursuant to this
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11 paragraph, along with the underlying application, shall be sealed
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12 and not disclosed to the person or entity whose records were
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13 examined, for a period of ninety (90) days. The issuing magistrate
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14 may grant extensions of such period upon a showing of good cause in
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15 furtherance of the investigation. Upon the expiration of ninety
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16 (90) days and any extensions granted by the magistrate, a copy of
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17 the application