Revenue & Taxation

 

SB 1084 (Helton/Pope, Clay): Allows the State Board of Equalization to appoint a committee or designate a third party to assist in the resolution of disputes between county assessors and the Tax Commission. Any recommendation or proposed dispute resolution method must be submitted to the Board for final action.

SB 1114 (Herbert/Seikel): Modifies requirements for registration and taxation of manufactured homes. All excise taxes and ad valorem taxes must be paid within 30 days of issuance of a permit to move a trade-in manufactured home. Procedures are specified for valuation of manufactured homes. Under current law, manufactured homes must be registered with the Tax Commission or a motor license agent if they are to be moved. These provisions are deleted, and the new requirements provide that if a manufactured home is to be moved or title transferred, all ad valorem taxes must be collected and information on the home must be provided to the county assessor in the county to which the home is moved. Other provisions relate to valuation of zoned property, which must be valued according to its use rather than its zoning, and to valuation of newly improved property. The bill also provides that nonresidents engaged in custom farming operations must obtain proof of eligibility for an agricultural sales tax exemption permit.

SB 1179 (Wilkerson/Begley): Enacts various provisions relating to ad valorem taxes, including the following:

  • Combines the Ad Valorem Reimbursement Fund and the Fund for the Reimbursement of Counties. Provisions relating to the Ad Valorem Reimbursement Fund are modified to allow payment of reimbursement to schools and counties for double homestead exemptions granted. Claims for reimbursement of five-year ad valorem exemptions for manufacturers (the current purpose of the Fund) will receive priority over double homestead reimbursement claims due to the constitutional requirement to pay these claims;

  • Requires funds accruing to the County Bridge Improvement Fund (as well as the County Road Improvement Fund) to be deposited to the county highway fund or the County Bridge and Road Improvement Fund, upon resolution of the board of county commissioners;

  • Includes personal property, as well as improvements on land, within property for which valuation is adjusted for natural disasters;

  • Allows the value of land and improvements for the land list and assessment roll to be combined in counties that have abolished household personal property taxes;

  • Allows claims for homestead exemptions to be filed with the county assessor at any time, rather than only prior to March 15. Claims received after March 15 will be applicable for the following tax year;

  • Modifies penalties for public service corporations which fail to file documents with the State Board of Equalization as required by law. Under current law, the penalty is added to the assessed value of the property (10% if filed between April 15 and May 15, and 20% if filed after May 15). The new penalty is $200 per day per county in which the corporation has property, to be apportioned equally to the county general fund and the General Revenue Fund;

  • Requires the Ad Valorem Division of the Tax Commission to notify county assessors, county treasurers and county excise and equalization board members of changes in ad valorem tax laws;

  • Provides that county assessors may request a declaratory judgment on constitutional questions; and

  • Requires protesting taxpayers to give notice as to theamount that will be paid under protest, as well as the amount actually paid under protest. The county treasurer then notifies the State Auditor and Inspector who compiles the information by school district and vo-tech district.

SB 1222 (Herbert/Seikel): Allows county treasurers to waive penalties or interest if they were incurred through no fault of the taxpayer. Each waiver must be audited by the State Auditor and Inspector each year during the annual county audit.

SB 1420 (Rozell/Tyler): Earmarks the first $400,000 received in FY 99 and the first $900,000 received in fiscal years thereafter from $1 of motor vehicle registration fees to the Motor Vehicle Driver Education Revolving Fund. Excess amounts will be deposited to the General Revenue Fund. This funding is in addition to amounts appropriated to the State Department of Education for driver's education.

HB 2426 (Ervin/Wilkerson): Makes several changes to the tax code, including the following:

  • Allows the Tax Commission to disclose informationto federal agents or foreign countries and changes the due date of the tax expenditure report;

  • Prohibits the Tax Commission from collecting penalties if the taxpayer remits within 30 days of the mailing of a proposed assessment or voluntarily pays the tax upon filing of an amended return;

  • Deletes requirement for filing notice of intention to appeal for taxpayers appealing Tax Commission decisions to the Supreme Court;

  • Clarifies penalties on tax warrants;

  • Reduces the time for collection agencies to pursue delinquent taxes from 6 months to 90 days;

  • Changes motor fuel reporting dates for bonded importers;

  • Clarifies sales tax exemption for youth camps;

  • Modifies agricultural processing ventures for purposes of the agricultural investment income tax credit;

  • Allows part-year residents to claim moving expenses;

  • Protects Roth IRAs from creditors; and

  • Reduces the time for the Tax Commission to hold abandoned securities and authorizes a sale of abandoned securities.

HB 2427 (Ervin/Wilkerson): Modifies employees of the Oklahoma Tax Commission who may serve summons or notices for hearings or proceedings. Under the prior law, only employees of the Enforcement Division were authorized to do so.

HB 2437 (Roach/Dunlap): Modifies allocation of interest income from investments held to generate working capital for a unitary business enterprise so that such income will be included in apportionable income.

HB 2669 (C. Pope/Muegge): Provides that interest will be paid on motor fuel tax refunds not issued within 20 days (rather than 60 days) of filing.

HB 2721 (Settle/Robinson): Changes the carry forward period for the recycling income tax credit from 9 years to 14 years.

HB 2754 (Langmacher/Wilkerson): Makes several changes to the tax code, including the following:

  • Eliminates the authority of the Tax Commission to charge taxpayers for certain out-of-state audit expenses;

  • Excludes gifts for which federal gift tax returns are not required from the value of a taxable estate;

  • Changes the definition of "manufacturer" for purposes of sales tax, ad valorem tax and income tax;

  • Excludes taxicab fares from sales tax;

  • Exempts sales of wireless telecommunications equipment given away or discounted as a promotion or contract inducement;

  • Modifies procedures for refunds of the sales tax exemption for film or television productions;

  • Provides that local sales tax changes will only become effective on the first day of a calendar quarter;

  • Removes freight charges from the use tax levy;

  • Allows counties to levy use taxes;

  • Cleans up references to assistance programs in the Sales Tax Relief Act; and

  • Allows expenditures from the Tourism Promotion Revolving Fund for higher education research work.

HB 2813 (Hefner/Easley): Reapportions aircraft excise tax revenues from the General Revenue Fund to the Aeronautics Commission Revolving Fund.

HB 2833 (Seikel/Herbert): Requires notice to be posted on the front door of homestead property sold at a tax sale. This requirement is in addition to all other notification requirements for such sales.

HB 2846 (Kinnamon/Maddox): Prohibits the Tax Commission from paying the firms on a percentage basis or any basis whereby compensation is dependent upon the amount of money collected. In cases where the Oklahoma Tax Commission enters into contracts with audit firms to audit persons the Commission believes may owe taxes.

HB 3152 (Benson/Taylor): Enacts various tax reductions relating to estate taxes and income taxes and expands persons eligible to receive rebates under the Sales Tax Relief Act.

With respect to estate taxes, the current $175,000 exemption for lineal heirs will be raised to $275,000 in 1999, $475,000 in 2000, $675,000 in 2001, $700,000 in 2002 and 2003, $850,000 in 2004, $950,000 in 2005 and $1 million in 2006 and thereafter.

With respect to income taxes, the current top rate of 7% for Method 1 is reduced to 6.75%. The Sales Tax Relief Act is modified to raise the current qualifying gross household income level from $12,000 to $15,000 for taxpayers without dependents and $30,000 for taxpayers with dependents or who are age 65 or older or physically disabled in 1999 and to $30,000 and $50,000 for such taxpayers, respectively, in 2000 and thereafter.

The income tax reduction and the increase in income levels under the Sales Tax Relief Act may be suspended if the State Board of Equalization in later years certifies a shortfall in revenue compared to a prior fiscal year.

The bill also provides an income tax credit for Small Business Administration guaranty fees and requires employers owing $100,000 or more per month in income tax withholding to remit according to the schedule for federal withholding taxes.

HB 3278 (Rice/Easley): Provides an ad valorem tax exemption for pollution control property (see HJR 1096(6) for constitutional amendment authorizing the exemption). Qualifying property is defined and procedures are specified for applying for a permit from the Executive Director of the Department of Environmental Quality.

HB 3304 (Kinnamon/Fisher): Modifies definitions for purposes of determining property exempt from ad valorem taxation by reason of payment of gross production taxes. The definition, as changed, references production or payment of gross production taxes during any of the three previous years, rather than the previous year.

HJR 1082 (Hilliard/Wilkerson): Creates the Committee on Tax Enforcement and Administrative Review, to be composed of 14 members appointed by the Speaker of the House of Representatives and the President Pro Tempore of the Senate. Four members must be legislators, and the remainder must represent various industries and interest groups. The duties of the Committee are to review the organizational structure and administration of the Tax Commission and to hear and evaluate taxpayer complaints and concerns. The Committee must develop a list of options and recommendations for changes by December 1, 1998.

HJR 1096 (Hefner/Easley): Proposes a constitutional amendment to exempt pollution control property from ad valorem taxes (see HB 3278 for related statutory amendments). 

 

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