SB 583: Sales tax; expanding requirements for delinquent taxpayer to avoid closure. Effective date. - Oklahoma

Floor (House) → Floor (Senate) · 6 edits

MODERATE

This bill changes the sales tax enforcement rules for noncompliant taxpayers in Oklahoma. The threshold for business closure was increased from two delinquent reports/tax payments to three within a 24-month period, and new provisions were added to allow taxpayers to avoid closure by filing delinquent reports and paying taxes, entering payment agreements, or proving limited past delinquencies.

Scope change

The bill expands taxpayer protections by raising the delinquency threshold before business closure and adding specific defenses against closure.

REQUIREMENT

Increased the number of delinquent reports or tax payments required to trigger business closure from two to three within a consecutive twenty-four-month period

Added new provisions allowing noncompliant taxpayers to avoid business closure by filing all delinquent reports, remitting delinquent taxes including interest and penalties, or entering into an approved payment agreement

Added defense provisions allowing taxpayers to avoid closure if they have no more than three instances of untimely filed reports or late tax remittances during a consecutive twenty-four-month period

TIMELINE

Added specific timeline requirements for administrative hearings, including a 14-calendar-day deadline for holding hearings after request and 5-day deadline for filing protests

ENFORCEMENT

Added provisions for written notice requirements and administrative hearing procedures for taxpayers facing business closure

DEFINITION

Added clarification that taxpayers are not deemed noncompliant for nonpayment of income taxes

Enrolled (final version) → Floor (House) · 3 edits

MINOR

This bill reformulates the Oklahoma sales tax enforcement provisions for noncompliant taxpayers by reorganizing the statute's structure and clarifying the conditions under which businesses may be closed. The changes primarily involve formatting updates to align with House floor procedures and renumbering subsections to improve readability while maintaining the same substantive enforcement mechanisms.

Scope change

No substantive change to the bill's scope or applicability; the legislation continues to apply to sales tax permit holders in Oklahoma who fail to file reports or remit taxes on time.

TECHNICAL

Reorganized the bill's header and introductory sections to reflect House floor version formatting, including page number updates and removal of Senate-specific markings.

Reordered and renumbered subsections (B through K) to improve logical flow while preserving all original provisions regarding business closure procedures, notice requirements, and taxpayer defenses.

Added formatting notes indicating bold face denotes committee amendments and updated page references to match House floor version pagination.

Engrossed → Enrolled (final version) · 5 edits · Apr 30, 2025

MODERATE

This bill was finalized from its engrossed version to the enrolled version, with substantive changes to the enforcement thresholds and procedures for closing noncompliant taxpayer businesses. The key change is that the threshold for business closure was raised from two delinquent reports/tax payments to three, providing taxpayers with more time to resolve issues before facing closure. Several procedural clarifications and formatting changes were also made to standardize the language and ensure consistency throughout the statute.

Scope change

The bill's scope remains focused on sales tax compliance and business closure procedures for noncompliant taxpayers, but the eligibility criteria for closure was modified to be less stringent.

REQUIREMENT

Increased the threshold for business closure from two delinquent reports or tax payments to three within a twenty-four-month period, giving taxpayers more time to resolve compliance issues.

TIMELINE

Added specific language clarifying that the fifth day for closure notice calculations includes weekends and legal holidays, allowing action on the next business day.

DEFINITION

Reorganized and clarified the structure of the statute with new subsections (G, H, I, J, K) to better organize defenses, hearing procedures, and enforcement mechanisms.

TECHNICAL

Changed the bill header from 'ENGROSSED SENATE' to 'ENROLLED SENATE' and updated page numbering to reflect the final enrolled version.

ENFORCEMENT

Added new subsection K requiring the Tax Commission to affix written notices to all business entrances when closure decisions are affirmed after review.

Introduced → Engrossed · 6 edits · Mar 12, 2025

MODERATE

The bill was amended to strengthen enforcement against noncompliant taxpayers by adding new provisions for administrative hearings, clarifying defense mechanisms, and expanding the scope of allowable defenses. The changes make the closure process more transparent while giving taxpayers additional opportunities to avoid business closure through documented compliance.

Scope change

The bill's scope was expanded to include additional administrative procedures and defense options for taxpayers facing business closure due to tax delinquency.

ENFORCEMENT

Added new subsection H requiring hearing officers to render decisions in writing and delivered to taxpayers via mail or hand delivery.

Added new subsection I establishing that the procedures in the bill are the sole methods for seeking relief from business closure decisions.

Added new subsection J making it unlawful for anyone to continue operating a business after receiving closure notice.

REQUIREMENT

Added new subsection G(2)(b) allowing taxpayers to avoid closure if they have had no more than three instances of untimely filings in a 24-month period.

Modified subsection G(2)(a) to require written payment agreements to be approved by the Tax Commission prior to the hearing.

TIMELINE

Added new subsection F(2)(2) clarifying that taxpayers may request hearings via written documents, telephone, or in person with evidence.

Sales tax; expanding requirements for delinquent taxpayer to avoid closure. Effective date.

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