Revenue & Taxation
(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.
(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.
(Taylor/Benson): Provides various tax incentives, as follows:
- 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;
- Allows an automotive final assembly
manufacturing facility to carry forward manufacturing investment income
tax credits for 10 years following the initial five-year period;
- 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
- 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.
(Monson/Langmacher): Modifies various provisions related to taxation,
- 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
- 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
- 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
- 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
- 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.
(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.
(Hobson/Corn): Exempts the sale, lease or use of parking privileges
by a state higher education institution from sales taxes. Effective
(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.
(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.
(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
(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.
(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.
(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.
(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.
(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.
(C. Pope/Milacek): Modifies procedures for valuation of buffer strips
for property tax purposes. Effective 1-1-01.
(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.
(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.
(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.