1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 2025 By: Rader
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6 AS INTRODUCED
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7 An Act relating to sales tax; amending 68 O.S. 2021,
7 Section 1364, as last amended by Section 3, Chapter
8 359, O.S.L. 2023 (68 O.S. Supp. 2023, Section 1364),
8 which relates to permits to do business; authorizing
9 the Oklahoma Tax Commission to revoke or suspend
9 certain permits under certain circumstance; updating
10 statutory language; and providing an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1364, as
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15 last amended by Section 3, Chapter 359, O.S.L. 2023 (68 O.S. Supp.
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16 2023, Section 1364), is amended to read as follows:
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17 Section 1364. Permits to do business.
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18 A. Every person desiring to engage in a business within this
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19 state who would be designated as a Group One or Group Three vendor,
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20 pursuant to Section 1363 of this title, shall be required to secure
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21 from the Oklahoma Tax Commission every three (3) years a written
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22 permit for a fee of Twenty Dollars ($20.00) prior to engaging in
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23 such business in this state. Each such person shall file with the
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24 Tax Commission an application for a permit to engage in or transact
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 1 business in this state, setting forth such information as the Tax
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2 Commission may require. The application shall be signed by the
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3 owner of the business or representative of the business entity and
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4 as a natural person, and, in the case of a corporation, as a legally
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5 constituted officer thereof. To obtain a sales tax permit, an
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6 individual or sole proprietor must be at least eighteen (18) years
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7 of age. A parent or legal guardian may apply for a permit on behalf
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8 of an individual or sole proprietor who is not at least eighteen
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9 (18) years of age, provided the parent or legal guardian will be
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10 considered the authorized user responsible for remitting state tax.
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11 B. Upon receipt of an initial application, the Tax Commission
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12 may issue a probationary permit effective for six (6) months which
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13 will automatically renew for an additional thirty (30) months unless
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14 the applicant receives written notification of the refusal of the
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15 Tax Commission to renew the permit. Within twenty (20) days of the
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16 date of the written notification of the notice of refusal, the
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17 applicant may request a hearing to show cause why the permit should
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18 be renewed. Upon receipt of a request for a hearing, the Tax
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19 Commission shall set the matter for hearing and give ten (10) days’
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20 notice in writing of the time and place of the hearing. At the
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21 hearing, the applicant shall set forth the qualifications of the
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22 applicant for a permit and proof of compliance with all state tax
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23 laws.
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 1 C. Holders of a probationary permit as provided in subsection B
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2 of this section shall not be permitted to present the permit to
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3 obtain a commercial license plate for their motor vehicle as
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4 provided in Section 1133.1 of Title 47 of the Oklahoma Statutes.
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5 D. Upon verification that the applicant is a Group Three
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6 vendor, the Tax Commission may require such applicant to furnish a
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7 surety bond or other security as the Tax Commission may deem
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8 necessary to secure payment of taxes under this article, prior to
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9 issuance of a permit for the place of business set forth in the
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10 application for permit. Provided, the Tax Commission is hereby
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11 authorized to set guidelines, by adoption of regulations, for the
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12 issuance of sales tax permits. Pursuant to the guidelines the Tax
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13 Commission may refuse to issue permits to any Group Three vendors,
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14 or any class of vendors included in the whole classification of
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15 Group Three vendors, if the Tax Commission determines that it is
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16 likely this state will lose tax revenue due to the difficulty of
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17 enforcing this article for any reasons stated in paragraph 21 of
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18 Section 1354 of this title.
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19 E. A separate permit for each additional place of business to
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20 be operated must be obtained from the Tax Commission for a fee of
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21 Ten Dollars ($10.00). Such permit shall be good for a period of
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22 three (3) years. The Tax Commission shall grant and issue to each
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23 applicant a separate permit for each place of business in this
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 1 state, upon proper application therefor and verification thereof by
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2 the Tax Commission.
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3 F. A permit is not assignable and shall be valid only for the
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4 person in whose name it is issued and for the transaction of
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5 business at the place designated therein. The permit shall at all
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6 times be conspicuously displayed at the place of business for which
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7 issued in a position where it can be easily seen. The permit shall
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8 be in addition to all other permits required by the laws of this
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9 state. Provided, if the location of the business is changed, such
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10 person shall file with the Tax Commission an application for a
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11 permit to engage in or transact business at the new location. Upon
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12 issuance of the permit to the new location of such business, no
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13 additional permit fee shall be due until the expiration of the
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14 permit issued to the previous location of such business.
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15 G. It shall be unlawful for any person coming within the class
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16 designated as Group One or the class designated as Group Three to
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17 engage in or transact a business of reselling tangible personal
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18 property or services within this state unless a written permit or
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19 permits shall have been issued to such person. Any person who
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20 engages in a business subject to the provisions of this section
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21 without a permit or permits, or after a permit has been suspended,
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22 upon conviction, shall be guilty of a misdemeanor punishable by a
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23 fine of not more than One Thousand Dollars ($1,000.00). Any person
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24 convicted of a second or subsequent violation hereof shall be guilty
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 1 of a felony and punishable by a fine of not more than Five Thousand
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2 Dollars ($5,000.00) or by a term of imprisonment in the custody of
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3 the Department of Corrections for not more than two (2) years, or
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4 both such fine and imprisonment.
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5 H. Any person operating under a permit as provided in this
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6 article shall, upon discontinuance of business by sale or otherwise,
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7 return such permit to the Tax Commission for cancellation, together
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8 with a remittance for any unpaid or accrued taxes. Failure to
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9 surrender a permit and pay any and all accrued taxes will be
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10 sufficient cause for the Tax Commission to refuse to issue a permit
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11 subsequently to such person to engage in or transact any other
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12 business in this state. In the case of a sale of any business, the
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13 tax shall be deemed to be due on the sale of the fixtures and
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14 equipment, and the Tax Commission shall not issue a permit to
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15 continue or conduct the business to the purchaser until all tax
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16 claims due this state have been settled.
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17 I. All permits issued under the provisions of this article
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18 shall expire three (3) years from the date of issuance at the close
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19 of business at each place or location of the business within this
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20 state. No refund of the fee shall be made if the business is
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21 terminated prior to the expiration of the permit. Whenever the
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22 sales tax reports required to be filed pursuant to Section 1365 of
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23 this title indicate there is no business activity at a place of
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24 business for a period of twelve (12) months, the Tax Commission,
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 1 after giving twenty (20) days’ notice to the permit holder in
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2 writing of the time and place of hearing to show cause why the sales
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3 tax permit for that place of business should not be revoked, may
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4 revoke or suspend the permit pursuant to an order of the Tax
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5 Commission after failure to show cause or failure to appear by the
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6 permit holder.
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7 J. Whenever a holder of a permit fails to comply with any
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8 provisions of this article, the Tax Commission, after giving twenty
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9 (20) days’ notice in writing of the time and place of hearing to
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10 show cause why the permit should not be revoked, may revoke or
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11 suspend the permit pursuant to an order of the Tax Commission after
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12 failure to show cause or failure to appear by the permit holder, the
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13 permit to be renewed upon removal of cause or causes of revocation
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14 or suspension. However, if a holder of a permit becomes delinquent
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15 for a period of three (3) months or more in reporting or paying of
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16 any tax due under this article, any duly authorized agent of the Tax
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17 Commission may remove the permit from the taxpayer’s premises and it
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18 shall be returned or renewed only upon the filing of proper reports
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19 and payment of all taxes due under this article.
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20 K. Permits are not required of persons coming within the
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21 classification designated as Group Two. The Oklahoma Tax Commission
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22 shall issue a limited permit to Group Five vendors. The permit
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23 shall be in such form as the Tax Commission may prescribe.
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 1 L. Nothing in this article shall be construed to allow a permit
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2 holder to purchase, tax exempt, anything for resale that the permit
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3 holder is not regularly in the business of reselling.
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4 M. All monies received pursuant to issuance of such permits to
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5 do business shall be paid to the State Treasurer and placed to the
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6 credit of the General Revenue Fund of the State Treasury.
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7 N. Notwithstanding the provisions of Section 205 of this title,
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8 the Oklahoma Tax Commission is authorized to release the following
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9 information contained in the Master Sales and Use Tax File to
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10 vendors:
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11 1. Permit number;
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12 2. Name in which permit is issued;
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13 3. Name of business operation if different from ownership
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14 (DBA);
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15 4. Mailing address;
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16 5. Business address;
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17 6. Business class, North American Industry Classification
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18 System (NAICS), or Standard Industrial Classification (SIC); and
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19 7. Effective date and expiration or cancellation date of
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20 permit.
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21 Release of such information shall be limited to tax remitters
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22 for the express purpose of determining the validity of sales permits
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23 presented as evidence of purchasers’ sales tax resale status under
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24 this Oklahoma Tax Code.
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 1 The provisions of this subsection shall be strictly interpreted
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2 and shall not be construed as permitting the disclosure of any other
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3 information contained in the records and files of the Tax Commission
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4 relating to sales tax or to any other taxes.
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5 This information may be provided on a subscription basis, with
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6 periodic updates, and sufficient fee charged, not to exceed One
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7 Hundred Fifty Dollars ($150.00) per year, to offset the
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8 administrative costs of providing the list. All revenue received by
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9 the Oklahoma Tax Commission from such fees shall be deposited to the
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10 credit of the Oklahoma Tax Commission Fund. No liability
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11 whatsoever, civil or criminal, shall attach to any member of the Tax
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12 Commission or any employee thereof for any error or omission in the
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13 disclosure of information pursuant to this subsection.
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14 O. If the Tax Commission enters into the Streamlined Sales and
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15 Use Tax Agreement under Section 1354.18 of this title, the Tax
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16 Commission is authorized to participate in its online sales and use
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17 tax registration system and shall not require the payment of the
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18 registration fees or other charges provided in this section from a
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19 vendor who registers within the online system if the vendor has no
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20 legal requirement to register.
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21 SECTION 2. This act shall become effective November 1, 2024.
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23 59-2-3051 QD 1/18/2024 3:40:03 PM
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Statutes affected:
Introduced: 68-1364