Revenue & Taxation

 

SB184(3) (Haney/Settle): Vetoed by the Governor, this bill would have created a revolving fund for any monies received from settlement of claims against tobacco. (See Veto Section)

SB 270(1) (Wilkerson/Settle): Authorizes the Oklahoma Capitol Improvement Authority to issue up to Five Million Dollars ($5,000,000.00) in revenue bonds to purchase a building for a headquarters building for the Oklahoma State Bureau of Investigation. The OSBI will use money in its budget that is currently being used to pay rent on a building to make the payments necessary to retire the bonds. Effective 9-1-99

SB 316(1) (Monson/Langmacher): SB 316 makes various changes to the state tax statutes, including the following:

  • Modifies the list of property exempt from attachment, execution or other forced sale for the payment of debts to include interest in Roth IRAs (current law from duplicate section), interest in education IRAs and amounts received under the federal earned income tax credit;

  • Provides that the alcoholic beverage tax, cigarette tax and tobacco products tax will be part of the gross receipts or gross proceeds for sales tax purposes;

  • Provides that claims of school districts and counties from the Ad Valorem Reimbursement Fund will be disapproved if a school district or county has received an in-lieu payment from the facility receiving the five-year ad valorem exemption;

  • Requires claims for refunds to be paid from collections of the same tax source from which the overpayment occurred;

  • Provides that the sales tax imposed on utility services is also applied to associated delivery and transmission services;

  • Exempts admission ticket proceeds for repayment of money borrowed by a county-beneficiary public trust (as well as a state supported college or university) to construct or enlarge entertainment or athletic facilities;

  • Includes associated delivery and transmission services within the sales tax exemption for residential sales of gas and electricity;

  • Clarifies that, for sales tax exemptions relating to agriculture, the terms "agricultural products" and "ranching" or "ranch" include horses and the business of raising horses. Sales of items at race meetings are not included in the exemption;

  • Exempts items withdrawn from inventory (purchased sales tax exempt) for donation to persons affected by the May 3 tornadoes from sales tax;

  • Allows vendor retention of sales tax if a report or payment of tax is delinquent due to May 3 tornadoes;

  • Modifies motor vehicle excise tax exemption for rental vehicles sold or transferred to motor vehicle dealers under certain circumstances;

  • Allows income tax exemption for state income taxes payable by Method 2 filers due to federal tax reduction for May 3, 1999, tornado damage loss carryback;

  • Corrects a reference in Quality Jobs Program Act;

  • Allows tourism tax revenues to be used for Internet advertising (current law allows only newspapers, magazines, radio, television, billboard and direct mail); and

  • Repeals Section 216.1 of Title 68 (1984-tax amnesty program) and duplicate version of Section 1 of Title 31.

    Effective 6-8-99

SB 391(3) (Easley/Rice): Vetoed by the Governor, this bill would have authorized a nonprofit tax-exempt corporation recognized by the IRS as an instrumentality of this state to issue indebtedness or obligations to provide funds for the political subdivisions of this state, on a tax-exempt or taxable basis. (See Veto Section)

SB 396(1) (Laughlin/Maddux): Provides that liens are released and extinguished after 10 years after an assessment, warrant or certificate of indebtedness is filed in the office of the county clerk. The Tax Commission may refile such assessments one time for another ten-year period. Active liens evidenced by filings prior to 11/1/89 are released and extinguished if not refiled prior to 11/1/01. Effective 7-1-99

SB 398(1) (Capps/Nations): Provides for increased funding for the Oklahoma Aeronautics Commission. The bill accelerates the schedule passed last year to transfer revenues derived from the aircraft excise tax from the General Revenue Fund to the Oklahoma Aeronautics Commission Revolving Fund. Under current law, for FY 2000, 66.67% of the funds were to be deposited to the General Revenue Fund and 33.33% to the ACRF. For FY 2001, 33.33% was to be deposited to the General Revenue Fund and 66.67% to the ACRF. SB 398 changes this apportionment to 50% for each fund for FY 2000 and 100% to the ACRF beginning in FY 2001.

The aircraft excise tax exemption for aircraft with a selling price in excess of $5 million is deleted, and a new credit for excise tax due on these aircraft is provided. The credit will be in the amount of expenditures by the person owing the tax for the benefit of airports located in this state, as certified by the Aeronautics Commission. If the amount of the credit exceeds the amount of these expenditures, the credit may be carried forward for up to 10 years.

The bill also provides for a three-year phase-in of apportionment of revenues from aviation fuel taxes to the ACRF. Effective 7-1-99

SB 477(1) (Monson/Toure): Deletes application of Section 3145 of Title 68 of the Oklahoma Statutes to the character, race or nationality of property owners and repeals Section 180 of Title 62 of the Oklahoma Statutes, relating to the Industrial School for White Girls. Effective 11-1-99

SB 573(1) (Robinson/Ervin): Provides sales and use tax exemptions for leases of rail transportation cars to haul coal to coal-fired electric generating plants, effective 1/1/91. Effective 5-17-99

SB 644(1) (Monson/Cox): Provides an income tax credit for amounts paid by a taxpayer operating one or more food service establishments for immunizations against Hepatitis A for employees working in such establishments. The credit may not exceed the usual and customary fee for immunizations as approved by the State and Education Employees Group Insurance Board, and may not carry forward or is refunded. Effective 11-1-99

HB1003X (Rice/Easley): Enacted in special session to change the state's 7% gross production tax rate on oil production to a rate based upon the price of oil. If the price of oil equals or exceeds $17 per barrel, the rate remains at 7%. If the price per barrel is $14 or more but less than $17, the rate will be 4%, and if the price is less than $14 per barrel, the rate will be 1%. The tax on gas production remains at 7%. The per-barrel price is determined monthly by the Tax Commission, based upon data submitted by the three largest oil purchasers. HB1003X also advances the date of the gross production tax refund for "at risk" oil leases for production in calendar year 1998 from July 1, 1999, to April 1, 1999. The bill earmarks funds into which the first $100 million of tax revenues, collected when oil prices reach $14 a barrel, is deposited and apportioned as follows: 30% for higher education capital needs, 30% for tuition assistance, 30% for common education classroom technology, 5% for county road and bridge improvements, and 5% for REAP. Effective 1-1-00

HB 1050(1) (Maddux/Laughlin): Provides that taxes may be collected by tax warrant or court proceeding only if begun within 10 years after the final assessment of the taxes. Effective 11-1-99

HB 1254(1) (Bonny/Maddox): Allows a credit against the tax paid by financial institutions for amounts paid for Small Business Administration guaranty fees paid on or after 1/1/00. The credit may be carried forward for up to 5 years. Effective 1-1-00

HB 1294(1) (Settle/Fisher): Exempts from sales tax sales of aircraft engine repairs, modification, and replacement parts, sales of aircraft frame repairs and modification, aircraft interior modification, and paint, and sales of services employed in the repair, modification and replacement of parts of aircraft engines, aircraft frame and interior repair and modification, and paint. The exemption is limited to aircraft repairs, modification, and replacement parts for aircraft weighing more than 12,500 pounds and less than 100,000 pounds and which are brought into this state exclusively for such repairs or modification and is limited to repairs or modifications made by a new or expanded aircraft repair facility. A new or expanded aircraft repair facility is required to have an investment of more than $4 million and construction must have commenced or was in progress on or after 1/1/99. Effective 11-1-99

HB 1347(1) (Plunk/Wilkerson): Allows a sales tax exemption for equipment and supplies used for food preparation to organizations commonly known as "Meals on Wheels" or "Mobile Meals", or organizations receiving funding under the Older Americans Act of 1965 for nutrition programs. Effective 7-1-99

HB 1468(1) (Corn/Robinson): Provides for apportionment of motor fuel taxes on agricultural fuel and provides a documentary stamp tax exemption for transfers between persons and certain revocable trusts and family-owned corporations, partnerships or other entities. Effective 7-1-99

HB 1584(1) (Settle/Haney): Exempts from tourism tax sales by public or private colleges or universities which are recognized or accredited as defined by the Oklahoma State Regents for Higher Education and which are exempt from taxation under Section 501(c)(3) Internal Revenue Code. Effective 9-1-99

HB 1734(3) (Kirby/Maddox): Vetoed by the Governor. This bill would have changed the system of taxation of motor vehicles. Under current law, noncommercial motor vehicles are subject to an excise tax at a rate of 3.25% upon a sale or transfer of ownership. The basis for this tax is the manufacturer's price plus the value of optional equipment (total delivered price), discounted 35% each year. No adjustment is allowed for a trade-in. Annual tag fees are $15 plus a fee of 1.25% of the factory delivered price (discounted 10% each year). HB 1734 would have made the following changes to the current system:

  • Changes registration fees from $15 plus a fee of 1.25% of the factory delivered price (discounted 10% each year) to:
    · $85 for years 1 through 5 of registration in Oklahoma or any other state
    · $45 for years 6 through 10 of registration in Oklahoma or any other state
    · $15 for years 11 and following of registration in Oklahoma or any other state;

  • Changes tag agent retention amounts to $2.48 per vehicle registration and 3% of the vehicle excise tax (increased to 3.125% for FY 2001 and 3.25% for FY 2002 and following). Current retention amounts are an annual amount based on 2.39% of the average registration fee (currently $2.48) per vehicle registration and 4% of the vehicle excise tax;

  • Provides that vehicle excise tax revenue will be apportioned under Section 1104 of Title 47;

  • Deletes the sales tax exemption for motor vehicle sales (reinstated in Section 7);

  • Provides that various provisions relating to vendor collection of sales tax does not apply to the vehicle excise tax;

  • Defines terms (recodifies Section 2101 of Title 68);

  • Levies a vehicle excise tax of 4.5%, the basis of which is the actual sales price less the value of a vehicle traded in. These values must be within 20% of the average retail price of the vehicle as listed in the automotive reference material provided by the Tax Commission. A bill of sale or other documentation of actual sales prices must be presented to the Tax Commission or tag agent. The excise tax levied on heavyweight commercial trucks of $10 is not changed (recodifies subsections A and B of Section 2103 of Title 68);

  • Provides exemptions from and credits against excise tax (recodifies subsections C and D of Section 2103 of Title 68);

  • Provides exemptions from excise tax (recodifies Section 2105 of Title 68);

  • Provides for taxation of manufactured homes (recodifies Section 2104.3 of Title 68);

  • Provides procedures for seizure of vehicles upon which excise tax not paid (recodifies Section 2106 of Title 68);

  • Increases fine for obtaining out-of-state tag from $100 to $200;

  • Provides an amnesty period, from 7/1/99 through 9/30/99, during which penalties will be waived if a taxpayer voluntarily registers a motor vehicle and pays all excise taxes and registration fees due;

  • Corrects statutory references in motor vehicle rental tax provisions; and

  • Repeals Sections 2101, 2102, 2103, 2104, 2104.1, 2104.3, 2105, 2106 and 2108 of Title 68.

    (See Veto Section)

HB 1770(1) (Ervin/Fisher): Changes the requirement of 15 new jobs to qualify for a five-year manufacturing ad valorem exemption to a net increase of $200,000 or more in payroll or $500,000 or more in capital improvements while maintaining or increasing payroll. Effective 1-1-00


(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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