1 STATE OF OKLAHOMA
2 3rd Extraordinary Session of the 58th Legislature (2022)
3 HOUSE BILL 1022 By: McCall
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6 AS INTRODUCED
7 An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 1203, 1204, and 1210, which
8 relate to the franchise tax upon corporations,
associations, joint-stock companies, and business
9 trusts, the franchise tax upon foreign corporations,
and annual reporting; removing levy of tax after
10 certain year; limiting annual statement requirement
to certain years; updating statutory language; and
11 providing an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
15 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1203, is
16 amended to read as follows:
17 Section 1203. There For tax year 2022 and previous tax years,
18 there is hereby levied and assessed a franchise or excise tax upon
19 every corporation, association, joint-stock company and business
20 trust organized under the laws of this state, equal to One Dollar
21 and twenty-five cents ($1.25) for each One Thousand Dollars
22 ($1,000.00) or fraction thereof of the amount of capital used,
23 invested or employed in the exercise of any power, privilege or
24 right inuring to such organization, within this state; it being the
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1 purpose of this section to require the payment to the State of
2 Oklahoma this state this tax for the right granted by the laws of
3 this state to exist as such organization and enjoy, under the
4 protection of the laws of this state, the powers, rights, privileges
5 and immunities derived from the state by reason of the form of such
6 existence.
7 SECTION 2. AMENDATORY 68 O.S. 2021, Section 1204, is
8 amended to read as follows:
9 Section 1204. There For tax year 2022 and previous tax years,
10 there is hereby levied and assessed upon every corporation,
11 association, joint-stock company and business trust, organized and
12 existing by virtue of the laws of some other state, territory or
13 country, now or hereafter doing business in this state, as
14 hereinbefore defined, a franchise or excise tax equal to One Dollar
15 and twenty-five cents ($1.25) for each One Thousand Dollars
16 ($1,000.00) or fraction thereof of the amount of capital used,
17 invested or employed within this state; it being the purpose of this
18 section to require the payment of a tax by all organizations not
19 organized under the laws of this state, measured by the amount of
20 capital, or its equivalent, used, invested or employed in this state
21 for which such organization receives the benefit and protection of
22 the government and laws of the state.
23 SECTION 3. AMENDATORY 68 O.S. 2021, Section 1210, is
24 amended to read as follows:
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1 Section 1210. A. In addition to any other statement required
2 by law, for tax year 2022 and previous tax years, each and every
3 corporation, association or organization, as enumerated in Sections
4 1201, 1203, and 1204 of this title, subject to the provisions of
5 Section 1201 et seq. of this title, either during the period of July
6 1 to August 31, inclusive, of each year, or not later than June 1
7 for taxpayers that remitted the maximum amount of tax pursuant to
8 Section 1205 of this title for the preceding tax year, or, except
9 for taxpayers that remitted the maximum amount of tax pursuant to
10 Section 1205 of this title for the preceding tax year, on or before
11 the date by which an income tax return is required to be filed
12 pursuant to the provisions of subsection G of Section 2368 of this
13 title or pursuant to the provisions of Section 216 of this title,
14 based upon the election by the taxpayer regarding the due date for
15 payment of tax, shall file with the Oklahoma Tax Commission a
16 statement under oath of its president, secretary or managing
17 officer, or managing agent in this state. The statement shall be in
18 such form as the Tax Commission shall prescribe, including balance
19 sheets as at the close of its last preceding taxable year for which
20 an income tax return was required to be filed, showing the
21 following:
22 1. The amount of its authorized capital stock, interests,
23 certificates, or other evidence of interest or ownership;
24 2. The amount thereof then paid up;
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1 3. The number of units into which the same is divided;
2 4. The par value of each unit and the number of such units
3 issued and outstanding;
4 5. The location of the office or offices;
5 6. The value of all property owned or used in its business and
6 wherever located;
7 7. The value of all property owned or used in its business
8 within this state as it existed on the last day of the tax year;
9 8. The total amount of all business wherever transacted during
10 the tax year;
11 9. The total amount of business transacted within the State of
12 Oklahoma this state during such year; and
13 10. The names of its officers and the residence and post office
14 address of each as the same appear of record on the last day of the
15 tax year, based upon the election by the taxpayer regarding the due
16 date for payment of tax.
17 B. If any corporation, association or organization making a
18 return under the provisions of Section 1201 et seq. of this title
19 has no authorized capital, or if any of its shares of stock or other
20 evidences of interest or ownership have no par value, then such
21 corporation, association or organization shall so state in its
22 return, and shall, in addition thereto, state the book value of its
23 shares of stock or other evidences of interest or ownership. It
24 shall also, in making its return, make the showing required of all
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1 other corporations, associations and organizations, and each foreign
2 corporation shall state the name of its registered agent residing at
3 the capital of the state. The return shall be in such form as the
4 Tax Commission shall prescribe.
5 C. A corporation or organization subject to the tax levied by
6 Section 1203 or Section 1204 of this title for which the computation
7 of capital employed in the state equals or exceeds Sixteen Million
8 Dollars ($16,000,000.00), shall file a maximum franchise tax return
9 on such form as may be prescribed by the Oklahoma Tax Commission.
10 D. The Tax Commission shall prescribe a form for use by
11 corporations or organizations subject to the maximum tax imposed by
12 Section 1205 of this title in order for such corporations or
13 organizations to determine if the value of capital employed in this
14 state requires filing a maximum franchise tax return. The Tax
15 Commission shall also prescribe a form for use by corporations or
16 organizations exempt from the tax imposed by Sections 1203 and 1204
17 of this title pursuant to Section 1205 of this title. Such form
18 shall include the names of the officers of the corporation or
19 organization and the residence and post office address of each as
20 the same appears of record on the last day of the tax year and a
21 statement attesting that no tax is due for the taxable period. If a
22 corporation or organization is required to file the maximum
23 franchise tax return or is exempt from the tax imposed by Sections
24 1203 and 1204 of this title pursuant to Section 1205 of this title,
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1 such return shall not be subject to the requirements of subsection A
2 of this section and the return shall only contain such information
3 as may be prescribed by the Commission. The return shall be in such
4 form as the Tax Commission shall prescribe.
5 SECTION 4. This act shall become effective November 1, 2022.
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7 58-3EX-70029 MAH 06/12/22
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