Revenue & Taxation

 

SB 521(1) (Maddox/Paulk): Requires persons, firms or corporations claiming an exemption under Section 6A of Article X of the Oklahoma Constitution to annually apply for the exemption with the county assessor. The application must be filed by March 15. Eligibility for the exemption must be established by filing an affidavit with the county assessor stating that the property qualifies for exemption, and other information as may be required by the Tax Commission or county assessor. Effective 3-29-00.

SB 857(1) (Herbert/Seikel): Provides that in all cases where the illegality of a property tax is alleged to arise in a situation where the tax laws provide no appeal, the aggrieved person must pay the full amount of taxes and give notice of the lawsuit according to certain provisions. The bill also creates the Task Force on Budgetary Process of Political Subdivisions to review such process and make recommendations for changes in the law. Finally, the bill provides that, for certain properties damaged or destroyed by the tornadoes on May 3, 1999, a person owning and residing in a residence on May 15, 2000, is deemed to be the record owner of the residence for purposes of the homestead exemption. The exemption must be claimed by June 1, 2000 Effective 7-1-00.

SB 1019(1) (Taylor/Benson): Provides various tax incentives, as follows:

  1. Includes an enterprise with a total construction cost of more than $300 million with an average employment level of at least 1,750 FTE employees within the definition of "qualified manufacturer" for purposes of certain sales tax exemptions;

  2. Allows an automotive final assembly manufacturing facility to carry forward manufacturing investment income tax credits for 10 years following the initial five-year period;

  3. Modifies the threshold to qualify for a five-year manufacturers' ad valorem tax exemption from $500,000 to $2 million in capital improvements while maintaining or increasing payroll; and

  4. Modifies the threshold for an automotive final assembly manufacturing facility to qualify for a five-year manufacturers' ad valorem tax exemption from $75 million to $300 million and from 2,500 retained employees to 1,750 retained employees.

Effective 3-2-00.

SB 1040(1) (Monson/Langmacher): Modifies various provisions related to taxation, including:

  • Requires copies of ordinance or court order and map to be filed with the Ad Valorem Division of the Tax Commission when municipal boundaries are changed;

  • Modifies motor vehicle information required to be kept confidential, to conform with federal law and associated court cases;

  • Allows owners of 100 or more commercial vehicles to receive a permanent certificate of registration, if application submitted electronically;

  • Allows disclosure of certain tax information to OSBI in connection with authorized investigations;

  • Requires Tax Commission verification that applicant is in compliance with state income tax laws prior to issuance, renewal, reinstatement or transfer of state license;

  • Clarifies that gasoline used in farm tractors and stationary engines used exclusively for agricultural purposes is subject to tax of 2.08 cents per gallon;

  • Creates Streamlined Sales Tax System Act, enacting model legislation recommended by the National Conference of State Legislatures. The Tax Commission is authorized to enter into discussions with other states regarding development of a multi-state, voluntary, streamlined system for sales and use tax collection and administration, and to participate in a pilot project with other states and selected businesses. The Legislative Oversight Committee on the Streamlined Sales Tax System is created, to be chaired by the chairs of the Senate Finance Committee and the House Revenue and Taxation
    Committee;

  • Provides sales tax exemptions for City of Tulsa-Rogers County Port Authority, Muskogee City-County Port Authority and contractors thereof; dues or fees paid to municipally-owned recreation centers, and nonprofit organizations for the benefit of state parks;

  • Provides that total cost of construction include the cost of qualified depreciable property and labor services for purposes of determining qualifications of manufacturer for purposes of sales tax exemption of items to be used or incorporated in a new or expanded manufacturing facility;

  • Allows persons purchasing more than $800,000 (currently $1 million) in sales-taxable items to obtain a direct payment permit;

  • Modifies remittance dates for tax remitters participating in the Tax Commission's EDI and EFT programs;

  • Clarifies that $3,300 cap on vendor retention amounts applies monthly;

  • Authorizes Tax Commission to develop digital mapping system for municipal boundaries;

  • Requires estimated taxes to be paid in four equal installments and specifying that the required annual payment is the lesser of 70% of the tax due for the current year or 100% of the tax due for the previous year. Taxpayers may compute amounts due on an
    annualized basis;

  • Modifies interest rate charged on underpaid estimated taxes and providing that interest not accrue if tax due is less than $1,000 or if taxpayer did not have liability for preceding year;

  • Clarifies reference to property tax exemption provided by Section 6A of Article X of the Oklahoma Constitution. There are two sections of Article X numbered 6A;

  • Provides that county property lists are confidential and not subject to Open Records Act;

  • Modifies penalty for failure or refusal of railroad, airline or public service corporation to file property tax statements or schedules to lesser of $200 per day per county (current penalty) or 1% of assessed value;

  • Re-enacts provisions of SB 857 relating to ownership of homesteads of persons whose primary residences were damaged or destroyed by May 3, 1999, tornadoes;

  • Allows application for limit on fair cash value to be made within 30 days after receipt of a notice of valuation increases (currently due March 15).

Effective 7-1-00 for all provisions except Sections 28, 30 and 31.

SB 1041(1) (Monson/Thomas): Provides that the statutes on public trusts do not prevent trusts from administering or financing public housing projects if located within the geographic boundaries of the trust's beneficiary or beneficiaries. Property of charitable institutions which is exempt from ad valorem taxation includes property not leased or rented to any person other than a governmental body, charitable institution or member of public authorized to be a tenant in property owned by a tax-exempt nonprofit charitable institution and which satisfies the income standards set forth by the IRS if the property provides residential rental accommodations. Charitable institutions requesting ad valorem taxation exemption are required to file an initial application with the county assessor and an annual affidavit. Effective 6-6-00.

SB 1057(1) (Hobson/Corn): Exempts the sale, lease or use of parking privileges by a state higher education institution from sales taxes. Effective 6-1-00.

SB 1129(1) (Kerr/Bonny): Includes dairy operations with a depreciable investment of at least $250,000 which produce milk from dairy cows for purposes of income tax exemptions and credits allowed to agricultural commodity processing facilities or Oklahoma producer-owned agricultural processing ventures. The bill also allows an exclusion from taxable income for amounts included as federal taxable income or federal adjusted gross income, for individuals engaged in production agriculture who have filed a Schedule F form with their federal income tax return, which consists of the discharge of an obligation by a creditor incurred to finance the production of agricultural products. Effective 11-1-00.

SB 1203(1) (Littlefield/Roberts): Exempts deposits, rent or other charges made for returnable containers used to transport mushrooms or mushroom products from a farm for resale from sales taxes. Effective 7-1-00.

SB 1216(1) (Morgan/Braddock): Exempts sales of tangible personal property or services for use on campus construction projects for the benefit of higher education institutions financed through nonprofit entities from sales taxes. Effective 7-1-00.

SB 1224(1) (Easley/Nations): Exempts leases of aircraft upon which aircraft excise tax had been paid, or which are exempt from aircraft excise taxes, from sales taxes. Effective 7-1-00.

SB 1300(1) (Fisher/Roach): Contains the following provisions relating to taxation:

  • Exempts the amount of a surcharge or any other amount separately stated on an admission ticket imposed and used to construct, remodel or enlarge facilities of a public trust having a municipality or county as its beneficiary from sales tax;

  • Extends the carry forward period for the manufacturing investment income tax credit to 15 (formerly 5) years following the initial five-year period; and

  • Allows equal weighting of payroll, property and sales for income taxes for corporations which expand property or facilities in this state, if the expansion has an investment cost of at least $200 million over a three-year period and the expansion begins on or after 1-1-00.

Effective 7-1-00.

HB 1375(1) (Ervin/Fisher): Modifies amount of tax credits issued to the Oklahoma Capital Investment Board from $50 million to $100 million, and modifies the amount which may be claimed in any single fiscal year from $10 million to $20 million. Effective 5-15-00.

HB 1858(1) (Winchester/Coffee): Allows an income tax checkoff for the Oklahoma City National Memorial Foundation and provides for the removal of income tax checkoffs if at least $15,000 is not contributed for three consecutive years. Effective 9-1-00.

HB 1929(1) (Covey/Price): Changes the date by which construction of a warehouse must begin to qualify for a five-year ad valorem exemption from 12-31-99 to 12-31-01. Effective 5-24-00.

HB 2061(1) (C. Pope/Milacek): Modifies procedures for valuation of buffer strips for property tax purposes. Effective 1-1-01.

HB 2403(1) (Rice/Helton): Allows an income tax deduction for wages equal to the federal income tax credit set forth in Section 45A of the Internal Revenue Code, for tax years beginning after 12-31-95. Effective 1-1-01.

HB 2408(1) (Nations/Capps): Requires aircraft dealers to be licensed by the Oklahoma Tax Commission and provide proof of bona fide dealer status. Licenses expire on December 31 of the second year following the date of issue and are nontransferable. The license fee is $250, with no fee for renewal. The Tax Commission may deny a license application, revoke or suspend a license, or impose a fine of up to $500 per day for certain violations or other reasons, and may assess excise tax, penalty and interest for aircraft sold or purchased while a dealer was in violation. Persons licensed as dealers on 7-1-00 may retain their licenses until 12-31-00. Effective 7-1-00.

HB 2430(1) (Jones/Ford): Provides that elected county officers may not be subject to legal or disciplinary action for causes related to job performance and property assessment unless the property owner has exhausted statutory remedies. Effective 11-1-00.


(1) Passed, signed by Governor (2) Passed, pending Governor's approval/disapproval (3) Vetoed by Governor
(4) Pending in Legislature (5) Failed in Legislature (6) Enrolled with the Sec. of State
 

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