Okla. Stat. tit. 68, § 68-2358v2 — OK Code / Title 68 / Section 68-2358v2
Adjustments to arrive at Oklahoma taxable income and
Status: in_force

Oklahoma adjusted gross income.

For all tax years beginning after December 31, 1981, taxable

income and adjusted gross income shall be adjusted to arrive at

Oklahoma Statutes - Title 68. Revenue and Taxation Page 959

Oklahoma taxable income and Oklahoma adjusted gross income as

required by this section.

A. The taxable income of any taxpayer shall be adjusted to

arrive at Oklahoma taxable income for corporations and Oklahoma

adjusted gross income for individuals, as follows:

1. There shall be added interest income on obligations of any

state or political subdivision thereto which is not otherwise

exempted pursuant to other laws of this state, to the extent that

such interest is not included in taxable income and adjusted gross

income.

2. There shall be deducted amounts included in such income that

the state is prohibited from taxing because of the provisions of the

Federal Constitution, the State Constitution, federal laws or laws

of Oklahoma.

3. The amount of any federal net operating loss deduction shall

be adjusted as follows:

a. For carryovers and carrybacks to taxable years

beginning before January 1, 1981, the amount of any

net operating loss deduction allowed to a taxpayer for

federal income tax purposes shall be reduced to an

amount which is the same portion thereof as the loss

from sources within this state, as determined pursuant

to this section and Section 2362 of this title, for

the taxable year in which such loss is sustained is of

the total loss for such year;

b. For carryovers and carrybacks to taxable years

beginning after December 31, 1980, the amount of any

net operating loss deduction allowed for the taxable

year shall be an amount equal to the aggregate of the

Oklahoma net operating loss carryovers and carrybacks

to such year. Oklahoma net operating losses shall be

separately determined by reference to Section 172 of

the Internal Revenue Code, 26 U.S.C., Section 172, as

modified by the Oklahoma Income Tax Act, Section 2351

et seq. of this title, and shall be allowed without

regard to the existence of a federal net operating

loss. For tax years beginning after December 31,

2000, and ending before January 1, 2008, the years to

which such losses may be carried shall be determined

solely by reference to Section 172 of the Internal

Revenue Code, 26 U.S.C., Section 172, with the

exception that the terms “net operating loss” and

“taxable income” shall be replaced with “Oklahoma net

operating loss” and “Oklahoma taxable income”. For

tax years beginning after December 31, 2007, and

ending before January 1, 2009, years to which such

losses may be carried back shall be limited to two (2)

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years. For tax years beginning after December 31,

2008, the years to which such losses may be carried

back shall be determined solely by reference to

Section 172 of the Internal Revenue Code, 26 U.S.C.,

Section 172, with the exception that the terms “net

operating loss” and “taxable income” shall be replaced

with “Oklahoma net operating loss” and “Oklahoma

taxable income”.

4. Items of the following nature shall be allocated as

indicated. Allowable deductions attributable to items separately

allocable in subparagraphs a, b and c of this paragraph, whether or

not such items of income were actually received, shall be allocated

on the same basis as those items:

a. Income from real and tangible personal property, such

as rents, oil and mining production or royalties, and

gains or losses from sales of such property, shall be

allocated in accordance with the situs of such

property;

b. Income from intangible personal property, such as

interest, dividends, patent or copyright royalties,

and gains or losses from sales of such property, shall

be allocated in accordance with the domiciliary situs

of the taxpayer, except that:

(1) where such property has acquired a nonunitary

business or commercial situs apart from the

domicile of the taxpayer such income shall be

allocated in accordance with such business or

commercial situs; interest income from

investments held to generate working capital for

a unitary business enterprise shall be included

in apportionable income; a resident trust or

resident estate shall be treated as having a

separate commercial or business situs insofar as

undistributed income is concerned, but shall not

be treated as having a separate commercial or

business situs insofar as distributed income is

concerned,

(2) for taxable years beginning after December 31,

2003, capital or ordinary gains or losses from

the sale of an ownership interest in a publicly

traded partnership, as defined by Section 7704(b)

of the Internal Revenue Code, shall be allocated

to this state in the ratio of the original cost

of such partnership’s tangible property in this

state to the original cost of such partnership’s

tangible property everywhere, as determined at

the time of the sale; if more than fifty percent

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(50%) of the value of the partnership’s assets

consists of intangible assets, capital or

ordinary gains or losses from the sale of an

ownership interest in the partnership shall be

allocated to this state in accordance with the

sales factor of the partnership for its first

full tax period immediately preceding its tax

period during which the ownership interest in the

partnership was sold; the provisions of this

division shall only apply if the capital or

ordinary gains or losses from the sale of an

ownership interest in a partnership do not

constitute qualifying gain receiving capital

treatment as defined in subparagraph a of

paragraph 2 of subsection F of this section,

(3) income from such property which is required to be

allocated pursuant to the provisions of paragraph

5 of this subsection shall be allocated as herein

provided;

c. Net income or loss from a business activity which is

not a part of business carried on within or without

the state of a unitary character shall be separately

allocated to the state in which such activity is

conducted;

d. In the case of a manufacturing or processing

enterprise the business of which in this state

consists solely of marketing its products by:

(1) sales having a situs without this state, shipped

directly to a point from without the state to a

purchaser within the state, commonly known as

interstate sales,

(2) sales of the product stored in public warehouses

within the state pursuant to “in transit”

tariffs, as prescribed and allowed by the

Interstate Commerce Commission, to a purchaser

within the state,

(3) sales of the product stored in public warehouses

within the state where the shipment to such

warehouses is not covered by “in transit”

tariffs, as prescribed and allowed by the

Interstate Commerce Commission, to a purchaser

within or without the state,

the Oklahoma net income shall, at the option of the

taxpayer, be that portion of the total net income of

the taxpayer for federal income tax purposes derived

from the manufacture and/or processing and sales

everywhere as determined by the ratio of the sales

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defined in this section made to the purchaser within

the state to the total sales everywhere. The term

“public warehouse” as used in this subparagraph means

a licensed public warehouse, the principal business of

which is warehousing merchandise for the public;

e. In the case of insurance companies, Oklahoma taxable

income shall be taxable income of the taxpayer for

federal tax purposes, as adjusted for the adjustments

provided pursuant to the provisions of paragraphs 1

and 2 of this subsection, apportioned as follows:

(1) except as otherwise provided by division (2) of

this subparagraph, taxable income of an insurance

company for a taxable year shall be apportioned

to this state by multiplying such income by a

fraction, the numerator of which is the direct

premiums written for insurance on property or

risks in this state, and the denominator of which

is the direct premiums written for insurance on

property or risks everywhere. For purposes of

this subsection, the term “direct premiums

written” means the total amount of direct

premiums written, assessments and annuity

considerations as reported for the taxable year

on the annual statement filed by the company with

the Insurance Commissioner in the form approved

by the National Association of Insurance

Commissioners, or such other form as may be

prescribed in lieu thereof,

(2) if the principal source of premiums written by an

insurance company consists of premiums for

reinsurance accepted by it, the taxable income of

such company shall be apportioned to this state

by multiplying such income by a fraction, the

numerator of which is the sum of (a) direct

premiums written for insurance on property or

risks in this state, plus (b) premiums written

for reinsurance accepted in respect of property

or risks in this state, and the denominator of

which is the sum of (c) direct premiums written

for insurance on property or risks everywhere,

plus (d) premiums written for reinsurance

accepted in respect of property or risks

everywhere. For purposes of this paragraph,

premiums written for reinsurance accepted in

respect of property or risks in this state,

whether or not otherwise determinable, may at the

election of the company be determined on the

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basis of the proportion which premiums written

for insurance accepted from companies

commercially domiciled in this state bears to

premiums written for reinsurance accepted from

all sources, or alternatively in the proportion

which the sum of the direct premiums written for

insurance on property or risks in this state by

each ceding company from which reinsurance is

accepted bears to the sum of the total direct

premiums written by each such ceding company for

the taxable year.

5. The net income or loss remaining after the separate

allocation in paragraph 4 of this subsection, being that which is

derived from a unitary business enterprise, shall be apportioned to

this state on the basis of the arithmetical average of three factors

consisting of property, payroll and sales or gross revenue

enumerated as subparagraphs a, b and c of this paragraph. Net

income or loss as used in this paragraph includes that derived from

patent or copyright royalties, purchase discounts, and interest on

accounts receivable relating to or arising from a business activity,

the income from which is apportioned pursuant to this subsection,

including the sale or other disposition of such property and any

other property used in the unitary enterprise. Deductions used in

computing such net income or loss shall not include taxes based on

or measured by income. Provided, for corporations whose property

for purposes of the tax imposed by Section 2355 of this title has an

initial investment cost equaling or exceeding Two Hundred Million

Dollars ($200,000,000.00) and such investment is made on or after

July 1, 1997, or for corporations which expand their property or

facilities in this state and such expansion has an investment cost

equaling or exceeding Two Hundred Million Dollars ($200,000,000.00)

over a period not to exceed three (3) years, and such expansion is

commenced on or after January 1, 2000, the three factors shall be

apportioned with property and payroll, each comprising twenty-five

percent (25%) of the apportionment factor and sales comprising fifty

percent (50%) of the apportionment factor. The apportionment

factors shall be computed as follows:

a. The property factor is a fraction, the numerator of

which is the average value of the taxpayer’s real and

tangible personal property owned or rented and used in

this state during the tax period and the denominator

of which is the average value of all the taxpayer’s

real and tangible personal property everywhere owned

or rented and used during the tax period.

(1) Property, the income from which is separately

allocated in paragraph 4 of this subsection,

shall not be included in determining this

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fraction. The numerator of the fraction shall

include a portion of the investment in

transportation and other equipment having no

fixed situs, such as rolling stock, buses, trucks

and trailers, including machinery and equipment

carried thereon, airplanes, salespersons’

automobiles and other similar equipment, in the

proportion that miles traveled in this state by

such equipment bears to total miles traveled,

(2) Property owned by the taxpayer is valued at its

original cost. Property rented by the taxpayer

is valued at eight times the net annual rental

rate. Net annual rental rate is the annual

rental rate paid by the taxpayer, less any annual

rental rate received by the taxpayer from

subrentals,

(3) The average value of property shall be determined

by averaging the values at the beginning and

ending of the tax period but the Oklahoma Tax

Commission may require the averaging of monthly

values during the tax period if reasonably

required to reflect properly the average value of

the taxpayer’s property;

b. The payroll factor is a fraction, the numerator of

which is the total compensation for services rendered

in the state during the tax period, and the

denominator of which is the total compensation for

services rendered everywhere during the tax period.

“Compensation”, as used in this subsection, means

those paid-for services to the extent related to the

unitary business but does not include officers’

salaries, wages and other compensation.

(1) In the case of a transportation enterprise, the

numerator of the fraction shall include a portion

of such expenditure in connection with employees

operating equipment over a fixed route, such as

railroad employees, airline pilots, or bus

drivers, in this state only a part of the time,

in the proportion that mileage traveled in this

state bears to total mileage traveled by such

employees,

(2) In any case the numerator of the fraction shall

include a portion of such expenditures in

connection with itinerant employees, such as

traveling salespersons, in this state only a part

of the time, in the proportion that time spent in

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this state bears to total time spent in

furtherance of the enterprise by such employees;

c. The sales factor is a fraction, the numerator of which

is the total sales or gross revenue of the taxpayer in

this state during the tax period, and the denominator

of which is the total sales or gross revenue of the

taxpayer everywhere during the tax period. “Sales”,

as used in this subsection, does not include sales or

gross revenue which are separately allocated in

paragraph 4 of this subsection.

(1) Sales of tangible personal property have a situs

in this state if the property is delivered or

shipped to a purchaser other than the United

States government, within this state regardless

of the FOB point or other conditions of the sale;

or the property is shipped from an office, store,

warehouse, factory or other place of storage in

this state and (a) the purchaser is the United

States government or (b) the taxpayer is not

doing business in the state of the destination of

the shipment.

(2) In the case of a railroad or interurban railway

enterprise, the numerator of the fraction shall

not be less than the allocation of revenues to

this state as shown in its annual report to the

Corporation Commission.

(3) In the case of an airline, truck or bus

enterprise or freight car, tank car, refrigerator

car or other railroad equipment enterprise, the

numerator of the fraction shall include a portion

of revenue from interstate transportation in the

proportion that interstate mileage traveled in

this state bears to total interstate mileage

traveled.

(4) In the case of an oil, gasoline or gas pipeline

enterprise, the numerator of the fraction shall

be either the total of traffic units of the

enterprise within this state or the revenue

allocated to this state based upon miles moved,

at the option of the taxpayer, and the

denominator of which shall be the total of

traffic units of the enterprise or the revenue of

the enterprise everywhere as appropriate to the

numerator. A “traffic unit” is hereby defined as

the transportation for a distance of one (1) mile

of one (1) barrel of oil, one (1) gallon of

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gasoline or one thousand (1,000) cubic feet of

natural or casinghead gas, as the case may be.

(5) In the case of a telephone or telegraph or other

communication enterprise, the numerator of the

fraction shall include that portion of the

interstate revenue as is allocated pursuant to

the accounting procedures prescribed by the

Federal Communications Commission; provided that

in respect to each corporation or business entity

required by the Federal Communications Commission

to keep its books and records in accordance with

a uniform system of accounts prescribed by such

Commission, the intrastate net income shall be

determined separately in the manner provided by

such uniform system of accounts and only the

interstate income shall be subject to allocation

pursuant to the provisions of this subsection.

Provided further, that the gross revenue factors

shall be those as are determined pursuant to the

accounting procedures prescribed by the Federal

Communications Commission.

In any case where the apportionment of the three factors

prescribed in this paragraph attributes to this state a portion of

net income of the enterprise out of all appropriate proportion to

the property owned and/or business transacted within this state,

because of the fact that one or more of the factors so prescribed

are not employed to any appreciable extent in furtherance of the

enterprise; or because one or more factors not so prescribed are

employed to a considerable extent in furtherance of the enterprise;

or because of other reasons, the Tax Commission is empowered to

permit, after a showing by taxpayer that an excessive portion of net

income has been attributed to this state, or require, when in its

judgment an insufficient portion of net income has been attributed

to this state, the elimination, substitution, or use of additional

factors, or reduction or increase in the weight of such prescribed

factors. Provided, however, that any such variance from such

prescribed factors which has the effect of increasing the portion of

net income attributable to this state must not be inherently

arbitrary, and application of the recomputed final apportionment to

the net income of the enterprise must attribute to this state only a

reasonable portion thereof.

6. For calendar years 1997 and 1998, the owner of a new or

expanded agricultural commodity processing facility in this state

may exclude from Oklahoma taxable income, or in the case of an

individual, the Oklahoma adjusted gross income, fifteen percent

(15%) of the investment by the owner in the new or expanded

agricultural commodity processing facility. For calendar year 1999,

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and all subsequent years, the percentage, not to exceed fifteen

percent (15%), available to the owner of a new or expanded

agricultural commodity processing facility in this state claiming

the exemption shall be adjusted annually so that the total estimated

reduction in tax liability does not exceed One Million Dollars

($1,000,000.00) annually. The Tax Commission shall promulgate rules

for determining the percentage of the investment which each eligible

taxpayer may exclude. The exclusion provided by this paragraph

shall be taken in the taxable year when the investment is made. In

the event the total reduction in tax liability authorized by this

paragraph exceeds One Million Dollars ($1,000,000.00) in any

calendar year, the Tax Commission shall permit any excess over One

Million Dollars ($1,000,000.00) and shall factor such excess into

the percentage for subsequent years. Any amount of the exemption

permitted to be excluded pursuant to the provisions of this

paragraph but not used in any year may be carried forward as an

exemption from income pursuant to the provisions of this paragraph

for a period not exceeding six (6) years following the year in which

the investment was originally made.

For purposes of this paragraph:

a. “Agricultural commodity processing facility” means

buildings, structures, fixtures and improvements used

or operated primarily for the processing or production

of marketable products from agricultural commodities.

The term shall also mean a dairy operation that

requires a depreciable investment of at least Two

Hundred Fifty Thousand Dollars ($250,000.00) and which

produces milk from dairy cows. The term does not

include a facility that provides only, and nothing

more than, storage, cleaning, drying or transportation

of agricultural commodities, and

b. “Facility” means each part of the facility which is

used in a process primarily for:

(1) the processing of agricultural commodities,

including receiving or storing agricultural

commodities, or the production of milk at a dairy

operation,

(2) transporting the agricultural commodities or

product before, during or after the processing,

or

(3) packaging or otherwise preparing the product for

sale or shipment.

7. Despite any provision to the contrary in paragraph 3 of this

subsection, for taxable years beginning after December 31, 1999, in

the case of a taxpayer which has a farming loss, such farming loss

shall be considered a net operating loss carryback in accordance

with and to the extent of the Internal Revenue Code, 26 U.S.C.,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 968

Section 172(b)(G). However, the amount of the net operating loss

carryback shall not exceed the lesser of:

a. Sixty Thousand Dollars ($60,000.00), or

b. the loss properly shown on Schedule F of the Internal

Revenue Service Form 1040 reduced by one-half (1/2) of

the income from all other sources other than reflected

on Schedule F.

8. In taxable years beginning after December 31, 1995, all

qualified wages equal to the federal income tax credit set forth in

26 U.S.C.A., Section 45A, shall be deducted from taxable income.

The deduction allowed pursuant to this paragraph shall only be

permitted for the tax years in which the federal tax credit pursuant

to 26 U.S.C.A., Section 45A, is allowed. For purposes of this

paragraph, “qualified wages” means those wages used to calculate the

federal credit pursuant to 26 U.S.C.A., Section 45A.

9. In taxable years beginning after December 31, 2005, an

employer that is eligible for and utilizes the Safety Pays OSHA

Consultation Service provided by the Oklahoma Department of Labor

shall receive an exemption from taxable income in the amount of One

Thousand Dollars ($1,000.00) for the tax year that the service is

utilized.

10. For taxable years beginning on or after January 1, 2010,

there shall be added to Oklahoma taxable income an amount equal to

the amount of deferred income not included in such taxable income

pursuant to Section 108(i)(1) of the Internal Revenue Code of 1986

as amended by Section 1231 of the American Recovery and Reinvestment

Act of 2009 (P.L. No. 111-5). There shall be subtracted from

Oklahoma taxable income an amount equal to the amount of deferred

income included in such taxable income pursuant to Section 108(i)(1)

of the Internal Revenue Code by Section 1231 of the American

Recovery and Reinvestment Act of 2009 (P.L. No. 111-5).

11. For taxable years beginning on or after January 1, 2019,

there shall be subtracted from Oklahoma taxable income or adjusted

gross income any item of income or gain, and there shall be added to

Oklahoma taxable income or adjusted gross income any item of loss or

deduction that in the absence of an election pursuant to the

provisions of the Pass-Through Entity Tax Equity Act of 2019 would

be allocated to a member or to an indirect member of an electing

pass-through entity pursuant to Section 2351 et seq. of this title,

if (i) the electing pass-through entity has accounted for such item

in computing its Oklahoma net entity income or loss pursuant to the

provisions of the Pass-Through Entity Tax Equity Act of 2019, and

(ii) the total amount of tax attributable to any resulting Oklahoma

net entity income has been paid. The Oklahoma Tax Commission shall

promulgate rules for the reporting of such exclusion to direct and

indirect members of the electing pass-through entity. As used in

this paragraph, “electing pass-through entity”, “indirect member”,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 969

and “member” shall be defined in the same manner as prescribed by

Section 2355.1P-2 of this title. Notwithstanding the application of

this paragraph, the adjusted tax basis of any ownership interest in

a pass-through entity for purposes of Section 2351 et seq. of this

title shall be equal to its adjusted tax basis for federal income

tax purposes.

B. 1. The taxable income of any corporation shall be further

adjusted to arrive at Oklahoma taxable income, except those

corporations electing treatment as provided in subchapter S of the

Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section

2365 of this title, deductions pursuant to the provisions of the

Accelerated Cost Recovery System as defined and allowed in the

Economic Recovery Tax Act of 1981, Public Law 97-34, 26 U.S.C.,

Section 168, for depreciation of assets placed into service after

December 31, 1981, shall not be allowed in calculating Oklahoma

taxable income. Such corporations shall be allowed a deduction for

depreciation of assets placed into service after December 31, 1981,

in accordance with provisions of the Internal Revenue Code, 26

U.S.C., Section 1 et seq., in effect immediately prior to the

enactment of the Accelerated Cost Recovery System. The Oklahoma tax

basis for all such assets placed into service after December 31,

1981, calculated in this section shall be retained and utilized for

all Oklahoma income tax purposes through the final disposition of

such assets.

Notwithstanding any other provisions of the Oklahoma Income Tax

Act, Section 2351 et seq. of this title, or of the Internal Revenue

Code to the contrary, this subsection shall control calculation of

depreciation of assets placed into service after December 31, 1981,

and before January 1, 1983.

For assets placed in service and held by a corporation in which

the Accelerated Cost Recovery System was previously disallowed, an

adjustment to taxable income is required in the first taxable year

beginning after December 31, 1982, to reconcile the basis of such

assets to the basis allowed in the Internal Revenue Code. The

purpose of this adjustment is to equalize the basis and allowance

for depreciation accounts between that reported to the Internal

Revenue Service and that reported to this state.

2. For tax years beginning on or after January 1, 2009, and

ending on or before December 31, 2009, there shall be added to

Oklahoma taxable income any amount in excess of One Hundred Seventy-

five Thousand Dollars ($175,000.00) which has been deducted as a

small business expense under Internal Revenue Code, Section 179 as

provided in the American Recovery and Reinvestment Act of 2009.

C. 1. For taxable years beginning after December 31, 1987, the

taxable income of any corporation shall be further adjusted to

arrive at Oklahoma taxable income for transfers of technology to

qualified small businesses located in this state. Such transferor

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corporation shall be allowed an exemption from taxable income of an

amount equal to the amount of royalty payment received as a result

of such transfer; provided, however, such amount shall not exceed

ten percent (10%) of the amount of gross proceeds received by such

transferor corporation as a result of the technology transfer. Such

exemption shall be allowed for a period not to exceed ten (10) years

from the date of receipt of the first royalty payment accruing from

such transfer. No exemption may be claimed for transfers of

technology to qualified small businesses made prior to January 1,

1988.

2. For purposes of this subsection:

a. “Qualified small business” means an entity, whether

organized as a corporation, partnership, or

proprietorship, organized for profit with its

principal place of business located within this state

and which meets the following criteria:

(1) Capitalization of not more than Two Hundred Fifty

Thousand Dollars ($250,000.00),

(2) Having at least fifty percent (50%) of its

employees and assets located in this state at the

time of the transfer, and

(3) Not a subsidiary or affiliate of the transferor

corporation;

b. “Technology” means a proprietary process, formula,

pattern, device or compilation of scientific or

technical information which is not in the public

domain;

c. “Transferor corporation” means a corporation which is

the exclusive and undisputed owner of the technology

at the time the transfer is made; and

d. “Gross proceeds” means the total amount of

consideration for the transfer of technology, whether

the consideration is in money or otherwise.

D. 1. For taxable years beginning after December 31, 2005, the

taxable income of any corporation, estate or trust, shall be further

adjusted for qualifying gains receiving capital treatment. Such

corporations, estates or trusts shall be allowed a deduction from

Oklahoma taxable income for the amount of qualifying gains receiving

capital treatment earned by the corporation, estate or trust during

the taxable year and included in the federal taxable income of such

corporation, estate or trust.

2. As used in this subsection:

a. “qualifying gains receiving capital treatment” means

the amount of net capital gains, as defined in Section

1222(11) of the Internal Revenue Code, included in the

federal income tax return of the corporation, estate

or trust that result from:

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(1) the sale of real property or tangible personal

property located within this state that has been

directly or indirectly owned by the corporation,

estate or trust for a holding period of at least

five (5) years prior to the date of the

transaction from which such net capital gains

arise,

(2) the sale of stock or on the sale of an ownership

interest in an Oklahoma company, limited

liability company, or partnership where such

stock or ownership interest has been directly or

indirectly owned by the corporation, estate or

trust for a holding period of at least three (3)

years prior to the date of the transaction from

which the net capital gains arise, or

(3) the sale of real property, tangible personal

property or intangible personal property located

within this state as part of the sale of all or

substantially all of the assets of an Oklahoma

company, limited liability company, or

partnership where such property has been directly

or indirectly owned by such entity owned by the

owners of such entity, and used in or derived

from such entity for a period of at least three

(3) years prior to the date of the transaction

from which the net capital gains arise,

b. “holding period” means an uninterrupted period of

time. The holding period shall include any additional

period when the property was held by another

individual or entity, if such additional period is

included in the taxpayer’s holding period for the

asset pursuant to the Internal Revenue Code,

c. “Oklahoma company”, “limited liability company”, or

“partnership” means an entity whose primary

headquarters have been located in this state for at

least three (3) uninterrupted years prior to the date

of the transaction from which the net capital gains

arise,

d. “direct” means the taxpayer directly owns the asset,

and

e. “indirect” means the taxpayer owns an interest in a

pass-through entity (or chain of pass-through

entities) that sells the asset that gives rise to the

qualifying gains receiving capital treatment.

(1) With respect to sales of real property or

tangible personal property located within this

state, the deduction described in this subsection

Oklahoma Statutes - Title 68. Revenue and Taxation Page 972

shall not apply unless the pass-through entity

that makes the sale has held the property for not

less than five (5) uninterrupted years prior to

the date of the transaction that created the

capital gain, and each pass-through entity

included in the chain of ownership has been a

member, partner, or shareholder of the pass-

through entity in the tier immediately below it

for an uninterrupted period of not less than five

(5) years.

(2) With respect to sales of stock or ownership

interest in or sales of all or substantially all

of the assets of an Oklahoma company, limited

liability company, or partnership, the deduction

described in this subsection shall not apply

unless the pass-through entity that makes the

sale has held the stock or ownership interest or

the assets for not less than three (3)

uninterrupted years prior to the date of the

transaction that created the capital gain, and

each pass-through entity included in the chain of

ownership has been a member, partner or

shareholder of the pass-through entity in the

tier immediately below it for an uninterrupted

period of not less than three (3) years.

E. The Oklahoma adjusted gross income of any individual

taxpayer shall be further adjusted as follows to arrive at Oklahoma

taxable income:

1. a. In the case of individuals, there shall be added or

deducted, as the case may be, the difference necessary

to allow personal exemptions of One Thousand Dollars

($1,000.00) in lieu of the personal exemptions allowed

by the Internal Revenue Code.

b. There shall be allowed an additional exemption of One

Thousand Dollars ($1,000.00) for each taxpayer or

spouse who is blind at the close of the tax year. For

purposes of this subparagraph, an individual is blind

only if the central visual acuity of the individual

does not exceed 20/200 in the better eye with

correcting lenses, or if the visual acuity of the

individual is greater than 20/200, but is accompanied

by a limitation in the fields of vision such that the

widest diameter of the visual field subtends an angle

no greater than twenty (20) degrees.

c. There shall be allowed an additional exemption of One

Thousand Dollars ($1,000.00) for each taxpayer or

spouse who is sixty-five (65) years of age or older at

Oklahoma Statutes - Title 68. Revenue and Taxation Page 973

the close of the tax year based upon the filing status

and federal adjusted gross income of the taxpayer.

Taxpayers with the following filing status may claim

this exemption if the federal adjusted gross income

does not exceed:

(1) Twenty-five Thousand Dollars ($25,000.00) if

married and filing jointly;

(2) Twelve Thousand Five Hundred Dollars ($12,500.00)

if married and filing separately;

(3) Fifteen Thousand Dollars ($15,000.00) if single;

and

(4) Nineteen Thousand Dollars ($19,000.00) if a

qualifying head of household.

Provided, for taxable years beginning after December

31, 1999, amounts included in the calculation of

federal adjusted gross income pursuant to the

conversion of a traditional individual retirement

account to a Roth individual retirement account shall

be excluded from federal adjusted gross income for

purposes of the income thresholds provided in this

subparagraph.

2. a. For taxable years beginning on or before December 31,

2005, in the case of individuals who use the standard

deduction in determining taxable income, there shall

be added or deducted, as the case may be, the

difference necessary to allow a standard deduction in

lieu of the standard deduction allowed by the Internal

Revenue Code, in an amount equal to the larger of

fifteen percent (15%) of the Oklahoma adjusted gross

income or One Thousand Dollars ($1,000.00), but not to

exceed Two Thousand Dollars ($2,000.00), except that

in the case of a married individual filing a separate

return such deduction shall be the larger of fifteen

percent (15%) of such Oklahoma adjusted gross income

or Five Hundred Dollars ($500.00), but not to exceed

the maximum amount of One Thousand Dollars

($1,000.00).

b. For taxable years beginning on or after January 1,

2006, and before January 1, 2007, in the case of

individuals who use the standard deduction in

determining taxable income, there shall be added or

deducted, as the case may be, the difference necessary

to allow a standard deduction in lieu of the standard

deduction allowed by the Internal Revenue Code, in an

amount equal to:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 974

(1) Three Thousand Dollars ($3,000.00), if the filing

status is married filing joint, head of household

or qualifying widow; or

(2) Two Thousand Dollars ($2,000.00), if the filing

status is single or married filing separate.

c. For the taxable year beginning on January 1, 2007, and

ending December 31, 2007, in the case of individuals

who use the standard deduction in determining taxable

income, there shall be added or deducted, as the case

may be, the difference necessary to allow a standard

deduction in lieu of the standard deduction allowed by

the Internal Revenue Code, in an amount equal to:

(1) Five Thousand Five Hundred Dollars ($5,500.00),

if the filing status is married filing joint or

qualifying widow; or

(2) Four Thousand One Hundred Twenty-five Dollars

($4,125.00) for a head of household; or

(3) Two Thousand Seven Hundred Fifty Dollars

($2,750.00), if the filing status is single or

married filing separate.

d. For the taxable year beginning on January 1, 2008, and

ending December 31, 2008, in the case of individuals

who use the standard deduction in determining taxable

income, there shall be added or deducted, as the case

may be, the difference necessary to allow a standard

deduction in lieu of the standard deduction allowed by

the Internal Revenue Code, in an amount equal to:

(1) Six Thousand Five Hundred Dollars ($6,500.00), if

the filing status is married filing joint or

qualifying widow, or

(2) Four Thousand Eight Hundred Seventy-five Dollars

($4,875.00) for a head of household, or

(3) Three Thousand Two Hundred Fifty Dollars

($3,250.00), if the filing status is single or

married filing separate.

e. For the taxable year beginning on January 1, 2009, and

ending December 31, 2009, in the case of individuals

who use the standard deduction in determining taxable

income, there shall be added or deducted, as the case

may be, the difference necessary to allow a standard

deduction in lieu of the standard deduction allowed by

the Internal Revenue Code, in an amount equal to:

(1) Eight Thousand Five Hundred Dollars ($8,500.00),

if the filing status is married filing joint or

qualifying widow, or

(2) Six Thousand Three Hundred Seventy-five Dollars

($6,375.00) for a head of household, or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 975

(3) Four Thousand Two Hundred Fifty Dollars

($4,250.00), if the filing status is single or

married filing separate.

Oklahoma adjusted gross income shall be increased by

any amounts paid for motor vehicle excise taxes which

were deducted as allowed by the Internal Revenue Code.

f. For taxable years beginning on or after January 1,

2010, and ending on December 31, 2016, in the case of

individuals who use the standard deduction in

determining taxable income, there shall be added or

deducted, as the case may be, the difference necessary

to allow a standard deduction equal to the standard

deduction allowed by the Internal Revenue Code, based

upon the amount and filing status prescribed by such

Code for purposes of filing federal individual income

tax returns.

g. For taxable years beginning on or after January 1,

2017, in the case of individuals who use the standard

deduction in determining taxable income, there shall

be added or deducted, as the case may be, the

difference necessary to allow a standard deduction in

lieu of the standard deduction allowed by the Internal

Revenue Code, as follows:

(1) Six Thousand Three Hundred Fifty Dollars

($6,350.00) for single or married filing

separately,

(2) Twelve Thousand Seven Hundred Dollars

($12,700.00) for married filing jointly or

qualifying widower with dependent child, and

(3) Nine Thousand Three Hundred Fifty Dollars

($9,350.00) for head of household.

3. a. In the case of resident and part-year resident

individuals having adjusted gross income from sources

both within and without the state, the itemized or

standard deductions and personal exemptions shall be

reduced to an amount which is the same portion of the

total thereof as Oklahoma adjusted gross income is of

adjusted gross income. To the extent itemized

deductions include allowable moving expense, proration

of moving expense shall not be required or permitted

but allowable moving expense shall be fully deductible

for those taxpayers moving within or into this state

and no part of moving expense shall be deductible for

those taxpayers moving without or out of this state.

All other itemized or standard deductions and personal

exemptions shall be subject to proration as provided

by law.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 976

b. For taxable years beginning on or after January 1,

2018, the net amount of itemized deductions allowable

on an Oklahoma income tax return, subject to the

provisions of paragraph 24 of this subsection, shall

not exceed Seventeen Thousand Dollars ($17,000.00).

For purposes of this subparagraph, charitable

contributions and medical expenses deductible for

federal income tax purposes shall be excluded from the

amount of Seventeen Thousand Dollars ($17,000.00) as

specified by this subparagraph.

4. A resident individual with a physical disability

constituting a substantial handicap to employment may deduct from

Oklahoma adjusted gross income such expenditures to modify a motor

vehicle, home or workplace as are necessary to compensate for his or

her handicap. A veteran certified by the Department of Veterans

Affairs of the federal government as having a service-connected

disability shall be conclusively presumed to be an individual with a

physical disability constituting a substantial handicap to

employment. The Tax Commission shall promulgate rules containing a

list of combinations of common disabilities and modifications which

may be presumed to qualify for this deduction. The Tax Commission

shall prescribe necessary requirements for verification.

5. a. Before July 1, 2010, the first One Thousand Five

Hundred Dollars ($1,500.00) received by any person

from the United States as salary or compensation in

any form, other than retirement benefits, as a member

of any component of the Armed Forces of the United

States shall be deducted from taxable income.

b. On or after July 1, 2010, one hundred percent (100%)

of the income received by any person from the United

States as salary or compensation in any form, other

than retirement benefits, as a member of any component

of the Armed Forces of the United States shall be

deducted from taxable income.

c. Whenever the filing of a timely income tax return by a

member of the Armed Forces of the United States is

made impracticable or impossible of accomplishment by

reason of:

(1) absence from the United States, which term

includes only the states and the District of

Columbia;

(2) absence from this state while on active duty; or

(3) confinement in a hospital within the United

States for treatment of wounds, injuries or

disease,

the time for filing a return and paying an income tax

shall be and is hereby extended without incurring

Oklahoma Statutes - Title 68. Revenue and Taxation Page 977

liability for interest or penalties, to the fifteenth

day of the third month following the month in which:

(a) Such individual shall return to the United

States if the extension is granted pursuant

to subparagraph a of this paragraph, return

to this state if the extension is granted

pursuant to subparagraph b of this paragraph

or be discharged from such hospital if the

extension is granted pursuant to

subparagraph c of this paragraph; or

(b) An executor, administrator, or conservator

of the estate of the taxpayer is appointed,

whichever event occurs the earliest.

Provided, that the Tax Commission may, in its discretion, grant

any member of the Armed Forces of the United States an extension of

time for filing of income tax returns and payment of income tax

without incurring liabilities for interest or penalties. Such

extension may be granted only when in the judgment of the Tax

Commission a good cause exists therefor and may be for a period in

excess of six (6) months. A record of every such extension granted,

and the reason therefor, shall be kept.

6. Before July 1, 2010, the salary or any other form of

compensation, received from the United States by a member of any

component of the Armed Forces of the United States, shall be

deducted from taxable income during the time in which the person is

detained by the enemy in a conflict, is a prisoner of war or is

missing in action and not deceased; provided, after July 1, 2010,

all such salary or compensation shall be subject to the deduction as

provided pursuant to paragraph 5 of this subsection.

7. a. An individual taxpayer, whether resident or

nonresident, may deduct an amount equal to the federal

income taxes paid by the taxpayer during the taxable

year.

b. Federal taxes as described in subparagraph a of this

paragraph shall be deductible by any individual

taxpayer, whether resident or nonresident, only to the

extent they relate to income subject to taxation

pursuant to the provisions of the Oklahoma Income Tax

Act. The maximum amount allowable in the preceding

paragraph shall be prorated on the ratio of the

Oklahoma adjusted gross income to federal adjusted

gross income.

c. For the purpose of this paragraph, “federal income

taxes paid” shall mean federal income taxes, surtaxes

imposed on incomes or excess profits taxes, as though

the taxpayer was on the accrual basis. In determining

the amount of deduction for federal income taxes for

Oklahoma Statutes - Title 68. Revenue and Taxation Page 978

tax year 2001, the amount of the deduction shall not

be adjusted by the amount of any accelerated ten

percent (10%) tax rate bracket credit or advanced

refund of the credit received during the tax year

provided pursuant to the federal Economic Growth and

Tax Relief Reconciliation Act of 2001, P.L. No. 107-

16, and the advanced refund of such credit shall not

be subject to taxation.

d. The provisions of this paragraph shall apply to all

taxable years ending after December 31, 1978, and

beginning before January 1, 2006.

8. Retirement benefits not to exceed Five Thousand Five Hundred

Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five

Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand

Dollars ($10,000.00) for the 2006 tax year and all subsequent tax

years, which are received by an individual from the civil service of

the United States, the Oklahoma Public Employees Retirement System,

the Teachers’ Retirement System of Oklahoma, the Oklahoma Law

Enforcement Retirement System, the Oklahoma Firefighters Pension and

Retirement System, the Oklahoma Police Pension and Retirement

System, the employee retirement systems created by counties pursuant

to Section 951 et seq. of Title 19 of the Oklahoma Statutes, the

Uniform Retirement System for Justices and Judges, the Oklahoma

Wildlife Conservation Department Retirement Fund, the Oklahoma

Employment Security Commission Retirement Plan, or the employee

retirement systems created by municipalities pursuant to Section 48-

101 et seq. of Title 11 of the Oklahoma Statutes shall be exempt

from taxable income.

9. In taxable years beginning after December 3l, 1984, Social

Security benefits received by an individual shall be exempt from

taxable income, to the extent such benefits are included in the

federal adjusted gross income pursuant to the provisions of Section

86 of the Internal Revenue Code, 26 U.S.C., Section 86.

10. For taxable years beginning after December 31, 1994, lump-

sum distributions from employer plans of deferred compensation,

which are not qualified plans within the meaning of Section 401(a)

of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which

are deposited in and accounted for within a separate bank account or

brokerage account in a financial institution within this state,

shall be excluded from taxable income in the same manner as a

qualifying rollover contribution to an individual retirement account

within the meaning of Section 408 of the Internal Revenue Code, 26

U.S.C., Section 408. Amounts withdrawn from such bank or brokerage

account, including any earnings thereon, shall be included in

taxable income when withdrawn in the same manner as withdrawals from

individual retirement accounts within the meaning of Section 408 of

the Internal Revenue Code.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 979

11. In taxable years beginning after December 31, 1995,

contributions made to and interest received from a medical savings

account established pursuant to Sections 2621 through 2623 of Title

63 of the Oklahoma Statutes shall be exempt from taxable income.

12. For taxable years beginning after December 31, 1996, the

Oklahoma adjusted gross income of any individual taxpayer who is a

swine or poultry producer may be further adjusted for the deduction

for depreciation allowed for new construction or expansion costs

which may be computed using the same depreciation method elected for

federal income tax purposes except that the useful life shall be

seven (7) years for purposes of this paragraph. If depreciation is

allowed as a deduction in determining the adjusted gross income of

an individual, any depreciation calculated and claimed pursuant to

this section shall in no event be a duplication of any depreciation

allowed or permitted on the federal income tax return of the

individual.

13. a. In taxable years beginning after December 31, 2002,

nonrecurring adoption expenses paid by a resident

individual taxpayer in connection with:

(1) the adoption of a minor, or

(2) a proposed adoption of a minor which did not

result in a decreed adoption,

may be deducted from the Oklahoma adjusted gross

income.

b. The deductions for adoptions and proposed adoptions

authorized by this paragraph shall not exceed Twenty

Thousand Dollars ($20,000.00) per calendar year.

c. The Tax Commission shall promulgate rules to implement

the provisions of this paragraph which shall contain a

specific list of nonrecurring adoption expenses which

may be presumed to qualify for the deduction. The Tax

Commission shall prescribe necessary requirements for

verification.

d. “Nonrecurring adoption expenses” means adoption fees,

court costs, medical expenses, attorney fees and

expenses which are directly related to the legal

process of adoption of a child including, but not

limited to, costs relating to the adoption study,

health and psychological examinations, transportation

and reasonable costs of lodging and food for the child

or adoptive parents which are incurred to complete the

adoption process and are not reimbursed by other

sources. The term nonrecurring adoption expenses

shall not include attorney fees incurred for the

purpose of litigating a contested adoption, from and

after the point of the initiation of the contest,

costs associated with physical remodeling, renovation

Oklahoma Statutes - Title 68. Revenue and Taxation Page 980

and alteration of the adoptive parents’ home or

property, except for a special needs child as

authorized by the court.

14. a. In taxable years beginning before January 1, 2005,

retirement benefits not to exceed the amounts

specified in this paragraph, which are received by an

individual sixty-five (65) years of age or older and

whose Oklahoma adjusted gross income is Twenty-five

Thousand Dollars ($25,000.00) or less if the filing

status is single, head of household, or married filing

separate, or Fifty Thousand Dollars ($50,000.00) or

less if the filing status is married filing joint or

qualifying widow, shall be exempt from taxable income.

In taxable years beginning after December 31, 2004,

retirement benefits not to exceed the amounts

specified in this paragraph, which are received by an

individual whose Oklahoma adjusted gross income is

less than the qualifying amount specified in this

paragraph, shall be exempt from taxable income.

b. For purposes of this paragraph, the qualifying amount

shall be as follows:

(1) in taxable years beginning after December 31,

2004, and prior to January 1, 2007, the

qualifying amount shall be Thirty-seven Thousand

Five Hundred Dollars ($37,500.00) or less if the

filing status is single, head of household, or

married filing separate, or Seventy-five Thousand

Dollars ($75,000.00) or less if the filing status

is married filing jointly or qualifying widow,

(2) in the taxable year beginning January 1, 2007,

the qualifying amount shall be Fifty Thousand

Dollars ($50,000.00) or less if the filing status

is single, head of household, or married filing

separate, or One Hundred Thousand Dollars

($100,000.00) or less if the filing status is

married filing jointly or qualifying widow,

(3) in the taxable year beginning January 1, 2008,

the qualifying amount shall be Sixty-two Thousand

Five Hundred Dollars ($62,500.00) or less if the

filing status is single, head of household, or

married filing separate, or One Hundred Twenty-

five Thousand Dollars ($125,000.00) or less if

the filing status is married filing jointly or

qualifying widow,

(4) in the taxable year beginning January 1, 2009,

the qualifying amount shall be One Hundred

Thousand Dollars ($100,000.00) or less if the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 981

filing status is single, head of household, or

married filing separate, or Two Hundred Thousand

Dollars ($200,000.00) or less if the filing

status is married filing jointly or qualifying

widow, and

(5) in the taxable year beginning January 1, 2010,

and subsequent taxable years, there shall be no

limitation upon the qualifying amount.

c. For purposes of this paragraph, “retirement benefits”

means the total distributions or withdrawals from the

following:

(1) an employee pension benefit plan which satisfies

the requirements of Section 401 of the Internal

Revenue Code, 26 U.S.C., Section 401,

(2) an eligible deferred compensation plan that

satisfies the requirements of Section 457 of the

Internal Revenue Code, 26 U.S.C., Section 457,

(3) an individual retirement account, annuity or

trust or simplified employee pension that

satisfies the requirements of Section 408 of the

Internal Revenue Code, 26 U.S.C., Section 408,

(4) an employee annuity subject to the provisions of

Section 403(a) or (b) of the Internal Revenue

Code, 26 U.S.C., Section 403(a) or (b),

(5) United States Retirement Bonds which satisfy the

requirements of Section 86 of the Internal

Revenue Code, 26 U.S.C., Section 86, or

(6) lump-sum distributions from a retirement plan

which satisfies the requirements of Section

402(e) of the Internal Revenue Code, 26 U.S.C.,

Section 402(e).

d. The amount of the exemption provided by this paragraph

shall be limited to Five Thousand Five Hundred Dollars

($5,500.00) for the 2004 tax year, Seven Thousand Five

Hundred Dollars ($7,500.00) for the 2005 tax year and

Ten Thousand Dollars ($10,000.00) for the tax year

2006 and for all subsequent tax years. Any individual

who claims the exemption provided for in paragraph 8

of this subsection shall not be permitted to claim a

combined total exemption pursuant to this paragraph

and paragraph 8 of this subsection in an amount

exceeding Five Thousand Five Hundred Dollars

($5,500.00) for the 2004 tax year, Seven Thousand Five

Hundred Dollars ($7,500.00) for the 2005 tax year and

Ten Thousand Dollars ($10,000.00) for the 2006 tax

year and all subsequent tax years.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 982

15. In taxable years beginning after December 31, 1999, for an

individual engaged in production agriculture who has filed a

Schedule F form with the taxpayer’s federal income tax return for

such taxable year, there shall be excluded from taxable income any

amount which was included as federal taxable income or federal

adjusted gross income and which consists of the discharge of an

obligation by a creditor of the taxpayer incurred to finance the

production of agricultural products.

16. In taxable years beginning December 31, 2000, an amount

equal to one hundred percent (100%) of the amount of any scholarship

or stipend received from participation in the Oklahoma Police Corps

Program, as established in Section 2-140.3 of Title 47 of the

Oklahoma Statutes shall be exempt from taxable income.

17. a. In taxable years beginning after December 31, 2001,

and before January 1, 2005, there shall be allowed a

deduction in the amount of contributions to accounts

established pursuant to the Oklahoma College Savings

Plan Act. The deduction shall equal the amount of

contributions to accounts, but in no event shall the

deduction for each contributor exceed Two Thousand

Five Hundred Dollars ($2,500.00) each taxable year for

each account.

b. In taxable years beginning after December 31, 2004,

each taxpayer shall be allowed a deduction for

contributions to accounts established pursuant to the

Oklahoma College Savings Plan Act. The maximum annual

deduction shall equal the amount of contributions to

all such accounts plus any contributions to such

accounts by the taxpayer for prior taxable years after

December 31, 2004, which were not deducted, but in no

event shall the deduction for each tax year exceed Ten

Thousand Dollars ($10,000.00) for each individual

taxpayer or Twenty Thousand Dollars ($20,000.00) for

taxpayers filing a joint return. Any amount of a

contribution that is not deducted by the taxpayer in

the year for which the contribution is made may be

carried forward as a deduction from income for the

succeeding five (5) years. For taxable years

beginning after December 31, 2005, deductions may be

taken for contributions and rollovers made during a

taxable year and up to April 15 of the succeeding

year, or the due date of a taxpayer’s state income tax

return, excluding extensions, whichever is later.

Provided, a deduction for the same contribution may

not be taken for two (2) different taxable years.

c. In taxable years beginning after December 31, 2006,

deductions for contributions made pursuant to

Oklahoma Statutes - Title 68. Revenue and Taxation Page 983

subparagraph b of this paragraph shall be limited as

follows:

(1) for a taxpayer who qualified for the five-year

carryforward election and who takes a rollover or

nonqualified withdrawal during that period, the

tax deduction otherwise available pursuant to

subparagraph b of this paragraph shall be reduced

by the amount which is equal to the rollover or

nonqualified withdrawal, and

(2) for a taxpayer who elects to take a rollover or

nonqualified withdrawal within the same tax year

in which a contribution was made to the

taxpayer’s account, the tax deduction otherwise

available pursuant to subparagraph b of this

paragraph shall be reduced by the amount of the

contribution which is equal to the rollover or

nonqualified withdrawal.

d. If a taxpayer elects to take a rollover on a

contribution for which a deduction has been taken

pursuant to subparagraph b of this paragraph within

one (1) year of the date of contribution, the amount

of such rollover shall be included in the adjusted

gross income of the taxpayer in the taxable year of

the rollover.

e. If a taxpayer makes a nonqualified withdrawal of

contributions for which a deduction was taken pursuant

to subparagraph b of this paragraph, such nonqualified

withdrawal and any earnings thereon shall be included

in the adjusted gross income of the taxpayer in the

taxable year of the nonqualified withdrawal.

f. As used in this paragraph:

(1) “non-qualified withdrawal” means a withdrawal

from an Oklahoma College Savings Plan account

other than one of the following:

(a) a qualified withdrawal,

(b) a withdrawal made as a result of the death

or disability of the designated beneficiary

of an account,

(c) a withdrawal that is made on the account of

a scholarship or the allowance or payment

described in Section 135(d)(1)(B) or (C) or

by the Internal Revenue Code, received by

the designated beneficiary to the extent the

amount of the refund does not exceed the

amount of the scholarship, allowance, or

payment, or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 984

(d) a rollover or change of designated

beneficiary as permitted by subsection F of

Section 3970.7 of Title 70 of the Oklahoma

Statutes, and

(2) “rollover” means the transfer of funds from the

Oklahoma College Savings Plan to any other plan

under Section 529 of the Internal Revenue Code.

18. For tax years 2006 through 2021, retirement benefits

received by an individual from any component of the Armed Forces of

the United States in an amount not to exceed the greater of seventy-

five percent (75%) of such benefits or Ten Thousand Dollars

($10,000.00) shall be exempt from taxable income but in no case less

than the amount of the exemption provided by paragraph 14 of this

subsection. For tax year 2022 and subsequent tax years, retirement

benefits received by an individual from any component of the Armed

Forces of the United States shall be exempt from taxable income.

19. For taxable years beginning after December 31, 2006,

retirement benefits received by federal civil service retirees,

including survivor annuities, paid in lieu of Social Security

benefits shall be exempt from taxable income to the extent such

benefits are included in the federal adjusted gross income pursuant

to the provisions of Section 86 of the Internal Revenue Code, 26

U.S.C., Section 86, according to the following schedule:

a. in the taxable year beginning January 1, 2007, twenty

percent (20%) of such benefits shall be exempt,

b. in the taxable year beginning January 1, 2008, forty

percent (40%) of such benefits shall be exempt,

c. in the taxable year beginning January 1, 2009, sixty

percent (60%) of such benefits shall be exempt,

d. in the taxable year beginning January 1, 2010, eighty

percent (80%) of such benefits shall be exempt, and

e. in the taxable year beginning January 1, 2011, and

subsequent taxable years, one hundred percent (100%)

of such benefits shall be exempt.

20. a. For taxable years beginning after December 31, 2007, a

resident individual may deduct up to Ten Thousand

Dollars ($10,000.00) from Oklahoma adjusted gross

income if the individual, or the dependent of the

individual, while living, donates one or more human

organs of the individual to another human being for

human organ transplantation. As used in this

paragraph, “human organ” means all or part of a liver,

pancreas, kidney, intestine, lung, or bone marrow. A

deduction that is claimed under this paragraph may be

claimed in the taxable year in which the human organ

transplantation occurs.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 985

b. An individual may claim this deduction only once, and

the deduction may be claimed only for unreimbursed

expenses that are incurred by the individual and

related to the organ donation of the individual.

c. The Oklahoma Tax Commission shall promulgate rules to

implement the provisions of this paragraph which shall

contain a specific list of expenses which may be

presumed to qualify for the deduction. The Tax

Commission shall prescribe necessary requirements for

verification.

21. For taxable years beginning after December 31, 2009, there

shall be exempt from taxable income any amount received by the

beneficiary of the death benefit for an emergency medical technician

or a registered emergency medical responder provided by Section 1-

2505.1 of Title 63 of the Oklahoma Statutes.

22. For taxable years beginning after December 31, 2008,

taxable income shall be increased by any unemployment compensation

exempted under Section 85(c) of the Internal Revenue Code, 26

U.S.C., Section 85(c)(2009).

23. For taxable years beginning after December 31, 2008, there

shall be exempt from taxable income any payment in an amount less

than Six Hundred Dollars ($600.00) received by a person as an award

for participation in a competitive livestock show event. For

purposes of this paragraph, the payment shall be treated as a

scholarship amount paid by the entity sponsoring the event and the

sponsoring entity shall cause the payment to be categorized as a

scholarship in its books and records.

24. For taxable years beginning on or after January 1, 2016,

taxable income shall be increased by any amount of state and local

sales or income taxes deducted under 26 U.S.C., Section 164 of the

Internal Revenue Code. If the amount of state and local taxes

deducted on the federal return is limited, taxable income on the

state return shall be increased only by the amount actually deducted

after any such limitations are applied.

25. For taxable years beginning after December 31, 2020, each

taxpayer shall be allowed a deduction for contributions to accounts

established pursuant to the Achieving a Better Life Experience

(ABLE) Program as established in Section 4001.1 et seq. of Title 56

of the Oklahoma Statutes. For any tax year, the deduction provided

for in this paragraph shall not exceed Ten Thousand Dollars

($10,000.00) for an individual taxpayer or Twenty Thousand Dollars

($20,000.00) for taxpayers filing a joint return. Any amount of

contribution not deducted by the taxpayer in the tax year for which

the contribution is made may be carried forward as a deduction from

income for up to five (5) tax years. Deductions may be taken for

contributions made during the tax year and through April 15 of the

succeeding tax year, or through the due date of a taxpayer’s state

Oklahoma Statutes - Title 68. Revenue and Taxation Page 986

income tax return excluding extensions, whichever is later.

Provided, a deduction for the same contribution may not be taken in

more than one (1) tax year.

26. For tax year 2024 and subsequent tax years, tax credits

received pursuant to the Oklahoma Parental Choice Tax Credit Act in

Section 28-101 of Title 70 of the Oklahoma Statutes shall be exempt

from taxable income.

F. 1. For taxable years beginning after December 31, 2004, a

deduction from the Oklahoma adjusted gross income of any individual

taxpayer shall be allowed for qualifying gains receiving capital

treatment that are included in the federal adjusted gross income of

such individual taxpayer during the taxable year.

2. As used in this subsection:

a. “qualifying gains receiving capital treatment” means

the amount of net capital gains, as defined in Section

1222(11) of the Internal Revenue Code, included in an

individual taxpayer’s federal income tax return that

result from:

(1) the sale of real property or tangible personal

property located within this state that has been

directly or indirectly owned by the individual

taxpayer for a holding period of at least five

(5) years prior to the date of the transaction

from which such net capital gains arise,

(2) the sale of stock or the sale of a direct or

indirect ownership interest in an Oklahoma

company, limited liability company, or

partnership where such stock or ownership

interest has been directly or indirectly owned by

the individual taxpayer for a holding period of

at least two (2) years prior to the date of the

transaction from which the net capital gains

arise, or

(3) the sale of real property, tangible personal

property or intangible personal property located

within this state as part of the sale of all or

substantially all of the assets of an Oklahoma

company, limited liability company, or

partnership or an Oklahoma proprietorship

business enterprise where such property has been

directly or indirectly owned by such entity or

business enterprise or owned by the owners of

such entity or business enterprise for a period

of at least two (2) years prior to the date of

the transaction from which the net capital gains

arise,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 987

b. “holding period” means an uninterrupted period of

time. The holding period shall include any additional

period when the property was held by another

individual or entity, if such additional period is

included in the taxpayer’s holding period for the

asset pursuant to the Internal Revenue Code,

c. “Oklahoma company,” “limited liability company,” or

“partnership” means an entity whose primary

headquarters have been located in this state for at

least three (3) uninterrupted years prior to the date

of the transaction from which the net capital gains

arise,

d. “direct” means the individual taxpayer directly owns

the asset,

e. “indirect” means the individual taxpayer owns an

interest in a pass-through entity (or chain of pass-

through entities) that sells the asset that gives rise

to the qualifying gains receiving capital treatment.

(1) With respect to sales of real property or

tangible personal property located within this

state, the deduction described in this subsection

shall not apply unless the pass-through entity

that makes the sale has held the property for not

less than five (5) uninterrupted years prior to

the date of the transaction that created the

capital gain, and each pass-through entity

included in the chain of ownership has been a

member, partner, or shareholder of the pass-

through entity in the tier immediately below it

for an uninterrupted period of not less than five

(5) years.

(2) With respect to sales of stock or ownership

interest in or sales of all or substantially all

of the assets of an Oklahoma company, limited

liability company, partnership or Oklahoma

proprietorship business enterprise, the deduction

described in this subsection shall not apply

unless the pass-through entity that makes the

sale has held the stock or ownership interest for

not less than two (2) uninterrupted years prior

to the date of the transaction that created the

capital gain, and each pass-through entity

included in the chain of ownership has been a

member, partner or shareholder of the pass-

through entity in the tier immediately below it

for an uninterrupted period of not less than two

(2) years. For purposes of this division,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 988

uninterrupted ownership prior to July 1, 2007,

shall be included in the determination of the

required holding period prescribed by this

division, and

f. “Oklahoma proprietorship business enterprise” means a

business enterprise whose income and expenses have

been reported on Schedule C or F of an individual

taxpayer’s federal income tax return, or any similar

successor schedule published by the Internal Revenue

Service and whose primary headquarters have been

located in this state for at least three (3)

uninterrupted years prior to the date of the

transaction from which the net capital gains arise.

G. 1. For purposes of computing its Oklahoma taxable income

under this section, the dividends-paid deduction otherwise allowed

by federal law in computing net income of a real estate investment

trust that is subject to federal income tax shall be added back in

computing the tax imposed by this state under this title if the real

estate investment trust is a captive real estate investment trust.

2. For purposes of computing its Oklahoma taxable income under

this section, a taxpayer shall add back otherwise deductible rents

and interest expenses paid to a captive real estate investment trust

that is not subject to the provisions of paragraph 1 of this

subsection. As used in this subsection:

a. the term “real estate investment trust” or “REIT”

means the meaning ascribed to such term in Section 856

of the Internal Revenue Code,

b. the term “captive real estate investment trust” means

a real estate investment trust, the shares or

beneficial interests of which are not regularly traded

on an established securities market and more than

fifty percent (50%) of the voting power or value of

the beneficial interests or shares of which are owned

or controlled, directly or indirectly, or

constructively, by a single entity that is:

(1) treated as an association taxable as a

corporation under the Internal Revenue Code, and

(2) not exempt from federal income tax pursuant to

the provisions of Section 501(a) of the Internal

Revenue Code.

The term shall not include a real estate investment

trust that is intended to be regularly traded on an

established securities market, and that satisfies the

requirements of Section 856(a)(5) and (6) of the U.S.

Internal Revenue Code by reason of Section 856(h)(2)

of the Internal Revenue Code,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 989

c. the term “association taxable as a corporation” shall

not include the following entities:

(1) any real estate investment trust as defined in

paragraph a of this subsection other than a

captive real estate investment trust, or

(2) any qualified real estate investment trust

subsidiary under Section 856(i) of the Internal

Revenue Code, other than a qualified REIT

subsidiary of a captive real estate investment

trust, or

(3) any listed Australian property trust (meaning an

Australian unit trust registered as a “managed

investment scheme” under the Australian

Corporations Act 2001 in which the principal

class of units is listed on a recognized stock

exchange in Australia and is regularly traded on

an established securities market), or an entity

organized as a trust, provided that a listed

Australian property trust owns or controls,

directly or indirectly, seventy-five percent

(75%) or more of the voting power or value of the

beneficial interests or shares of such trust, or

(4) any qualified foreign entity, meaning a

corporation, trust, association or partnership

organized outside the laws of the United States

and which satisfies the following criteria:

(a) at least seventy-five percent (75%) of the

entity’s total asset value at the close of

its taxable year is represented by real

estate assets, as defined in Section

856(c)(5)(B) of the Internal Revenue Code,

thereby including shares or certificates of

beneficial interest in any real estate

investment trust, cash and cash equivalents,

and U.S. Government securities,

(b) the entity receives a dividend-paid

deduction comparable to Section 561 of the

Internal Revenue Code, or is exempt from

entity level tax,

(c) the entity is required to distribute at

least eighty-five percent (85%) of its

taxable income, as computed in the

jurisdiction in which it is organized, to

the holders of its shares or certificates of

beneficial interest on an annual basis,

(d) not more than ten percent (10%) of the

voting power or value in such entity is held

Oklahoma Statutes - Title 68. Revenue and Taxation Page 990

directly or indirectly or constructively by

a single entity or individual, or the shares

or beneficial interests of such entity are

regularly traded on an established

securities market, and

(e) the entity is organized in a country which

has a tax treaty with the United States.

3. For purposes of this subsection, the constructive ownership

rules of Section 318(a) of the Internal Revenue Code, as modified by

Section 856(d)(5) of the Internal Revenue Code, shall apply in

determining the ownership of stock, assets, or net profits of any

person.

4. A real estate investment trust that does not become

regularly traded on an established securities market within one (1)

year of the date on which it first becomes a real estate investment

trust shall be deemed not to have been regularly traded on an

established securities market, retroactive to the date it first

became a real estate investment trust, and shall file an amended

return reflecting such retroactive designation for any tax year or

part year occurring during its initial year of status as a real

estate investment trust. For purposes of this subsection, a real

estate investment trust becomes a real estate investment trust on

the first day it has both met the requirements of Section 856 of the

Internal Revenue Code and has elected to be treated as a real estate

investment trust pursuant to Section 856(c)(1) of the Internal

Revenue Code.
Okla. Stat. tit. 68, § 68-2858 — OK Code / Title 68 / Section 68-2858
Railroad, air carrier and public service corporation -
Status: in_force

Findings as to assessment - Powers, duties and authority of Tax

Commission relating to assessment - Discovery and inspection of

personal property.

A. The Oklahoma Tax Commission shall make its findings as to

the assessment of all railroad, air carrier and public service

corporation property; and such findings shall, on or before the

third Monday of June of each year, be presented to the State Board

of Equalization as recommendations for its final action under

Section 21 of Article X of the Oklahoma Constitution. A copy of the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1187

Oklahoma Tax Commission's letter of transmittal of its findings

shall, at such time, be furnished each member of said Board.

B. All duties, powers and authority of all officers and

agencies of the state, relating to the assessment of railroad, air

carrier and public service corporation property, which have been

conferred upon them and vested in them, by law, are hereby

transferred to, conferred upon and vested in, the Oklahoma Tax

Commission; excepting only the duties, powers and authority of the

State Board of Equalization, as fixed and defined by Section 21 of

Article X of the Oklahoma Constitution.

C. In the performance of its duties, as prescribed by this

section, the Oklahoma Tax Commission, or any duly authorized

representative thereof, shall have the power to administer oaths, to

conduct hearings and to compel the attendance of witnesses and the

production of the books, records and papers of any person, firm,

association, or corporation, and to enter any business or commercial

premises and inspect the property of the taxpayer.

D. Prior to entering the business or commercial premises of any

taxpayer for purposes of discovering personal property, the Oklahoma

Tax Commission shall request permission to enter the business or

commercial premises and shall state the reason for the inspection.

If access to the business or commercial premises is denied, the

Oklahoma Tax Commission shall be required to obtain a search warrant

in order to conduct an inspection of the interior of the business or

commercial premises. A search warrant may be obtained upon a

showing of probable cause that personal property located within

particularly described business or commercial premises is subject to

ad valorem taxation, but not listed or assessed for ad valorem

taxation as required by law.duties and authority of Tax Commission relating to assessment - Discovery and inspection of
Okla. Stat. tit. 68, § 68-3645.4 — OK Code / Title 68 / Section 68-3645.4
Investment rebate program
Status: in_force

A. 1. There is hereby created until July 1, 2032, an

investment rebate program for the cost of qualified capital

expenditures by establishments which create not less than a

threshold number of new direct jobs as provided in this section.

2. a. The threshold number of new direct jobs required for

establishments to qualify and remain qualified for

investment rebate payments created in paragraph 1 of

this subsection shall be as follows:

(1) five hundred (500) new direct jobs in year one of

the rebate payment period,

(2) one thousand (1,000) cumulative new direct jobs

in year two of the rebate payment period,

(3) two thousand five hundred (2,500) cumulative new

direct jobs in year three of the rebate payment

period,

(4) three thousand five hundred (3,500) cumulative

new direct jobs in year four of the rebate

payment period, and

(5) three thousand five hundred (3,500) cumulative

new direct jobs in year five of the rebate

payment period.

b. For establishments qualifying for investment rebate

payments pursuant to division (2) of subparagraph a of

paragraph 1 of subsection E of this section, the

threshold numbers provided in this paragraph shall be

reduced proportionally to reflect the lesser capital

expenditure of such establishment. Such reduction

shall be achieved by multiplying the thresholds in

paragraph 2 of this subsection by a fractional

equivalent equal to the following: the capital

expenditure plan amount of the establishment

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1420

qualifying pursuant to division (2) of subparagraph a

of paragraph 1 of subsection E of this section,

divided by the capital expenditure plan amount of the

establishment qualifying pursuant to division (1) of

subparagraph a of paragraph 1 of subsection E of this

section.

3. New direct jobs in this state of a subsidiary of a primary

establishment, if such subsidiary is defined or classified in the

NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be

aggregated with the number of new direct jobs in the state of the

primary establishment for the purpose of determining if the

thresholds provided in paragraph 2 of this subsection are met.

B. The investment rebate program shall be administered by the

Oklahoma Department of Commerce and the Oklahoma Tax Commission.

C. By October 1 of each year, the Oklahoma Department of

Commerce shall submit electronically an annual report to the Speaker

of the House of Representatives, the President Pro Tempore of the

Senate, the Chair of the Appropriations and Budget Committee of the

House of Representatives, the Chair of the Appropriations Committee

of the Senate, and the Executive Director of the Legislative Office

of Fiscal Transparency detailing the program and investment rebate

payments.

D. The Oklahoma Department of Commerce and the Oklahoma Tax

Commission may promulgate rules to implement the provisions of the

Large-scale Economic Activity and Development Act of 2022 (LEAD

Act).

E. To be eligible for consideration for an investment rebate

payment awarded under the provisions of the LEAD Act, a primary

establishment shall:

1. a. (1) Submit an application and documentation to the

Oklahoma Department of Commerce, as required by

the Department, outlining a capital expenditure

plan in this state associated with qualified

capital expenditures totaling no less than Three

Billion Six Hundred Six Million Dollars

($3,606,000,000.00), or

(2) Submit an application and documentation to the

Oklahoma Department of Commerce, as required by

the Department, outlining a capital expenditure

plan in this state associated with qualified

capital expenditures totaling no less than Five

Hundred Million Dollars ($500,000,000.00),

provided a separate establishment has been

approved by the Oklahoma Department of Commerce

to participate in the investment rebate program

pursuant to division (1) of this subparagraph,

and such establishment participating pursuant to

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1421

division (1) of this subparagraph remains in

compliance with such approved application, and

b. Have made qualified capital expenditures of no less

than twenty percent (20%) of the capital expenditure

plan outlined in the application submitted by the

primary establishment and approved by the Oklahoma

Department of Commerce, pursuant to the provisions of

the LEAD Act.

New investment in this state of a subsidiary of a primary

establishment, if such subsidiary is defined or classified in the

NAICS Manual under Industry Group No. 5132, 5222, or 5413, shall be

aggregated with the investment in this state of the primary

establishment for the purpose of determining if the thresholds

provided in this paragraph are met;

2. Be qualified to receive payments pursuant to the provisions

of the Oklahoma Quality Jobs Program Act created pursuant to Section

3601 of Title 68 of the Oklahoma Statutes; and

3. Have filed all Oklahoma tax returns and tax documents

required by law.

F. 1. Notwithstanding any other provision of law, if a primary

establishment receives an investment rebate payment pursuant to the

provisions of the LEAD Act, neither the qualified establishment nor

its subsidiaries shall be eligible to receive the credits provided

for in Section 2357.4 of Title 68 of the Oklahoma Statutes, in

connection with the project or development for which the investment

rebate payment was based; provided, however, the limitation provided

in this paragraph, on claiming credits, shall not apply to the

amount of qualifying capital expenditure in excess of Four Billion

Five Hundred Million Dollars ($4,500,000,000.00) made by an

establishment on a project or development in this state.

2. Notwithstanding any other provision of law, no investment

expenditure shall be utilized for calculation purposes in a way that

results in the qualification of more than one establishment under

the provisions of the LEAD Act, for investment rebate payments based

on the same expenditure.

3. Notwithstanding any other provision of law, no investment

rebate payment amount pre-qualified or pre-encumbered by the

Oklahoma Department of Commerce for an establishment qualifying for

payment under the provisions of division (1) of subparagraph a of

paragraph 1 of subsection E of this section, shall be reallocated to

an establishment that at such time is participating under an

approved application pursuant to division (2) of subparagraph a of

paragraph 1 of subsection E of this section.

G. 1. Except as limited by paragraph 2 of this subsection, the

Oklahoma Department of Commerce shall approve or disapprove claims

for rebates and shall notify the Tax Commission subject to the

limitations set forth in Section 3645.5 of this title. Upon

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1422

notification of approval from the Department, the Commission shall

issue payment for all approved claims from funds held in the Large-

scale Economic Activity and Development Fund created pursuant to

Section 3645.6 of this title and subject to the limitations set

forth in Section 3645.5 of this title.

2. The Department shall disapprove all applications and claims,

as well as portions of applications and claims, for rebates that

would exceed the balance of available funds in the Large-scale

Economic Activity and Development Fund.

H. The total amount of applications approved and investment

rebate payments awarded under the provisions of the LEAD Act shall

not exceed the total amount of monies designated by law for deposit

to the Large-scale Economic Activity and Development Fund.
Okla. Stat. tit. 68, § 68-702 — OK Code / Title 68 / Section 68-702
Purpose of act - Collection, report and payment of tax
Status: in_force

It is hereby declared to be the purpose of this act to levy a

tax upon the use as defined in this act of all special fuels:

(1) delivered into the fuel supply tanks of motor vehicles in

Oklahoma or,

(2) imported into Oklahoma in the fuel supply tanks of motor

vehicles by persons using Oklahoma highways for hire, compensation

or other commercial purposes, not specifically exempted herein, to

the end that such highway users shall pay to the State of Oklahoma

an equal amount in taxes on special fuels so used by them in

Oklahoma as is paid by other commercial highway users who use

special fuel obtained in Oklahoma and on which the tax levied by

this act is collected by special fuel dealers and remitted to the

Tax Commission. Said tax is levied as a toll for the use of the

public highways of this state.

When special fuel is delivered into the supply tank or tanks of

a motor vehicle in Oklahoma by a special fuel dealer the tax shall

be collected by the special fuel dealer at the time of such sale and

delivery and shall be reported and remitted to the Tax Commission as

hereinafter provided. The tax shall be reported and paid by special

fuel dealers on all special fuel delivered by special fuel dealers

into the supply tanks of motor vehicles owned or operated by them.

In all other cases persons delivering special fuel into the supply

tank of any motor vehicle in Oklahoma and all persons who use any

special fuel to propel a motor vehicle upon the public highways of

this state on which fuel the tax levied by this act has not been

paid shall report such use and remit the tax on such special fuel to

the Tax Commission as a special fuel user as hereinafter provided.
Okla. Stat. tit. 68, § 68-306 — OK Code / Title 68 / Section 68-306
Sale, when tax not paid or stamps not affixed
Status: in_force

It shall be unlawful for any person to sell, or display for

sale, or have in his possession for consumption in this state,

cigarettes on which the tax levied by this article has not been

paid, and which are not contained in packages to which are securely

affixed the stamps evidencing payment of the tax. Any cigarettes so

held shall be subject to seizure and sale as provided by law for

sale of property under execution, and the proceeds derived from the

sale thereof shall be paid to the State Treasurer and placed in the

State General Revenue Fund.
Okla. Stat. tit. 68, § 68-2802 — OK Code / Title 68 / Section 68-2802
Definitions
Status: in_force

As used in Section 2801 et seq. of this title:

1. "Accepted standards for mass appraisal practice" means those

standards for the collection and analysis of information about

taxable properties within a taxing jurisdiction permitting the

accurate estimate of fair cash value for similar properties in the

jurisdiction either without direct observation of such similar

properties or without direct sales price information for such

similar properties using a reliable statistical or other method to

estimate the values of such properties;

2. "Additional homestead exemption" means the exemption

provided by Section 2890 of this title;

3. "Assessor" means the county assessor and, unless the context

clearly requires otherwise, deputy assessors and persons employed by

the county assessor in performance of duties imposed by law;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1125

4. "Assess and value" means to establish the fair cash value

and taxable fair cash value of taxable real and personal property

pursuant to requirements of law;

5. "Assessed valuation" or "assessed value" means the

percentage of the fair cash value of personal property, or the

percentage of the taxable fair cash value of real property, pursuant

to the provisions of Sections 8 and 8B of Article X of the Oklahoma

Constitution, either of individual items of personal property,

parcels of real property or the aggregate total of such individual

taxable items or parcels within a jurisdiction;

6. "Assessment percentage" means the percentage applied to

personal property and real property pursuant to Section 8 of Article

X of the Oklahoma Constitution;

7. "Assessment ratio" means the relationship between assessed

value and taxable fair cash value for a county or for use categories

within a county expressed as a percentage determined in the annual

equalization ratio study;

8. "Assessment roll" means a computerized or noncomputerized

record required by law to be kept by the county assessor and

containing information about property within a taxing jurisdiction;

9. "Assessment year" means the year beginning January 1 of each

calendar year and ending on December 31 preceding the following

January 1 assessment date;

10. "Circuit breaker" means the form of property tax relief

provided by Sections 2904 through 2911 of this title;

11. "Class of subjects" means a category of property

specifically designated pursuant to provisions of the Oklahoma

Constitution for purposes of ad valorem taxation;

12. "Code" means the Ad Valorem Tax Code, Section 2801 et seq.

of this title;

13. "Coefficient of dispersion" means a statistical measure of

assessment uniformity for a category of property or for all property

within a taxing jurisdiction;

14. "Confidence level" means a statistical procedure for

determining the degree of reliability for use in reporting the

assessment ratio for a taxing jurisdiction;

15. "Cost approach" means a method used to establish the fair

cash value of property involving an estimate of current construction

cost of improvements, subtracting accrued depreciation including any

loss in value that may be caused by physical deterioration,

functional obsolescence or economic obsolescence and adding the

value of the land.

a. Physical deterioration is a cause of depreciation that

is a loss in value due to ordinary wear and tear and

the forces of nature.

b. Functional or internal obsolescence is the loss in

value of a property resulting from changes in tastes,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1126

preferences, technical innovations or market

standards.

c. Economic or external obsolescence is a cause of

depreciation that is a loss in value as a result of

impairment in utility and desirability caused by

factors outside the boundaries of the property or loss

of value in a property (relative to the cost of

replacing it with a property of equal utility) that

stems from factors external to the property;

16. "County board of equalization" means the board which, upon

hearing competent evidence, has the authority to correct and adjust

the assessment rolls in its respective county to conform to fair

cash value and such other responsibilities as prescribed in Section

2801 et seq. of this title;

17. "Equalization" means the process for making adjustments to

taxable property values within a county by analyzing the

relationships between assessed values and fair cash values in one or

more use categories within the county or between counties by

analyzing the relationship between assessed value and fair cash

value in each county;

18. "Equalization ratio study" means the analysis of the

relationships between assessed values and fair cash values in the

manner provided by law;

19. "Fair cash value" or "market value" means the value or

price at which a willing buyer would purchase property and a willing

seller would sell property if both parties are knowledgeable about

the property and its uses and if neither party is under any undue

pressure to buy or sell and for real property shall mean the value

for the highest and best use for which such property was actually

used, or was previously classified for use, during the calendar year

next preceding the applicable January 1 assessment date;

20. "Homestead exemption" means the reduction in the taxable

value of a homestead as authorized by law;

21. "Income and expense approach" means a method to estimate

fair cash value of a property by determining the present value of

the projected income stream;

22. "List and assess" means the process by which taxable

property is discovered, its description recorded for purposes of ad

valorem taxation and its fair cash value and taxable fair cash value

are established;

23. "Mill" or "millage" means the rate of tax imposed upon

taxable value. One (1) mill equals One Dollar ($1.00) of tax for

each One Thousand Dollars ($1,000.00) of taxable value;

24. "Multiple regression analysis" means a statistical

technique for estimating unknown data on the basis of known and

available data;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1127

25. "Parcel" means a contiguous area of land described in a

single description by a deed or other instrument or as one of a

number of lots on a plat or plan, separately owned and capable of

being separately conveyed;

26. "Sales comparison approach" means the collection,

verification, and screening of sales data, stratification of sales

information for purposes of comparison and use of such information

to establish the fair cash value of taxable property;

27. "State Board of Equalization" means the Board responsible

for valuation of railroad, airline and public service corporation

property and the adjustment and equalization of all property values

both centrally and locally assessed;

28. "Taxable value" means the percentage of the fair cash value

of personal property or the taxable fair cash value of real

property, less applicable exemptions, upon which an ad valorem tax

rate is levied pursuant to the provisions of Section 8 and Section

8B of Article X of the Oklahoma Constitution;

29. "Taxable fair cash value" means the fair cash value of

locally assessed real property as capped pursuant to Section 8B of

Article X of the Oklahoma Constitution;

30. "Use category" means a subcategory of real property, that

is either agricultural use, residential use or commercial/industrial

use but does not and shall not constitute a class of subjects within

the meaning of the Oklahoma Constitution for purposes of ad valorem

taxation;

31. "Use value" means the basis for establishing fair cash

value of real property pursuant to the requirement of Section 8 of

Article X of the Oklahoma Constitution; and

32. "Visual inspection program" means the program required in

order to gather data about real property from physical examination

of the property and improvements in order to establish the fair cash

values of properties so inspected at least once each four (4) years

and the fair cash values of similar properties on an annual basis.
Okla. Stat. tit. 68, § 68-500.16 — OK Code / Title 68 / Section 68-500.16
Procedures for claiming refund - Investigations -
Status: in_force

Credit in lieu of refund.

A. To claim a refund under Sections 10 through 14 of this act,

a person shall present to the Commission a statement containing a

written verification that the claim is made under penalties of

perjury and lists the total amount of motor fuel purchased and used

for exempt purposes. The claim shall not be transferred or assigned

and shall be filed not more than three (3) years after the date the

motor fuel was purchased. The statement shall show that payment for

the purchase has been made and the amount of tax paid on the

purchase has been remitted.

B. The Commission may make any investigations it considers

necessary before refunding the motor fuel tax to a person and may

Oklahoma Statutes - Title 68. Revenue and Taxation Page 281

investigate a refund after the refund has been issued and within the

time frame for making adjustments to the tax under this act.

C. In any case where a refund would be payable to a supplier

under this act, the supplier may claim a credit in lieu of such

refund.
Okla. Stat. tit. 68, § 68-4203 — OK Code / Title 68 / Section 68-4203
Definitions
Status: in_force

For purposes of the Oklahoma Quality Investment Act:

1. “At-risk establishments” are those manufacturing

establishments, presently existing in Oklahoma which the Quality

Investment Committee, as described in paragraph 6 of this section,

finds would be lost within the state based on changes in global

economies, establishment structure, consolidation of establishments,

and which are structurally noncompetitive but which could regain a

competitive position with new investment if incentives are offered;

2. “Capital costs” means costs for land, building, improvements

to buildings, fixtures and for machinery and equipment as those

terms are described in Section 2902 of Title 68 of the Oklahoma

Statutes;

3. “Economic impact” means economic impact as described in

analyses that identify the value in terms of sales tax and income

tax revenues to the state and to the local community of the

establishment that the retention and expansion or modernization of

the manufacturing site provides. The Oklahoma Department of

Commerce may contract for the performance of an economic impact

analysis to aid it in determining whether to recommend entering into

a Quality Investment Contract with a particular establishment;

4. “Historical contributions trends” means historical

contributions of an establishment as described in analyses of direct

and indirect historical contributions to the state and local

economies that an establishment has had on jobs and tax base growth,

and on payroll and tax revenue inputs and growth. Analyses shall

include consideration of positive trends attributable to suppliers

of the establishment. The Oklahoma Department of Commerce may

contract for the performance of an historical contributions analysis

to aid the Quality Investment Committee in determining whether to

recommend entering into a Quality Investment Contract with a

particular establishment;

5. “Local community” means the town or city and the county of

the location of the establishment; provided, a city or town and a

county may jointly constitute the “local community”;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1484

6. “Quality Investment Committee” means the independent

committee referenced in paragraph 6 of Section 23 of Article X of

the Oklahoma Constitution that consists of the following members:

a. the Director of the Oklahoma Department of Commerce,

b. the Dean of Engineering of Oklahoma State University,

c. the Director of the Oklahoma Alliance for

Manufacturing Excellence,

d. the Dean of the Price Business College of the

University of Oklahoma,

e. the Executive Director for the Oklahoma Center for the

Advancement of Science and Technology,

f. one small business representative from the Oklahoma

Science and Technology Research and Development Board,

and

g. the State Director of Career Technology Education;

7. “Tax revenues projections” means a projection of anticipated

tax revenues based upon an analysis of historic taxes collected from

the establishment in the local community and in the state overall

over the previous ten (10) years in order to determine:

a. the average of the growth percentages to determine the

projected growth in such revenues to the community and

the state over the following ten (10) years if no

retooling occurs but retention is assumed to be a

constant and remains stagnant,

b. the modernization or retooling project’s estimated

impact on tax revenues and growth rates over the

following ten (10) years, and

c. the projections of loss in tax revenues should the

plant location close and operations, in whole or in

part, are removed from the state.

The Oklahoma Department of Commerce may contract with the

Oklahoma Tax Commission for performance of tax revenues projections

analyses to aid it in determining whether to enter into an agreement

upon recommendation of the Quality Investment Committee;

8. “Establishment” means a manufacturer that is a partnership,

limited partnership, corporation, limited liability company, limited

liability partnership, or sole proprietorship. The establishment

may enter into a Quality Investment Contract pertaining to only one

manufacturing site as that term is defined in Section 1352 of Title

68 of the Oklahoma Statutes. No combination of other locations of

the establishment, or any related entities of the establishment is

contemplated. An establishment may have multiple contracts due to

multiple sites or multiple expansions due to retooling and

modernization at one site;

9. “NAICS” Manual means any manual book or other publication

containing the North American Industry Classification System, United

States, 1997, or as updated or amended from time to time,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1485

promulgated by the Office of Management and Budget of the United

States of America; and

10. “Start date” means the date on which an establishment may

begin accruing benefits for investment of new capital costs in a

manufacturing site that is assigned in the agreement with the

Oklahoma Department of Commerce.
Okla. Stat. tit. 68, § 68-500.56 — OK Code / Title 68 / Section 68-500.56
Shipping papers to meet tamper-resistant standards
Status: in_force

Each terminal operator in this state and every supplier licensed

by this state for the collection of tax on motor fuel shall cause

terminal-issued shipping papers to meet such tamper-resistant

standards as the Commission may by regulation require including, but

not limited to messages which identify whether shipping papers have

been photocopied, numbering systems, nonreproducible coding and

other devices. However, the Commission may not make any such

regulations effective earlier than twenty-four (24) months after the

promulgation of a final regulation imposing the requirements.
Okla. Stat. tit. 68, § 68-2819.1 — OK Code / Title 68 / Section 68-2819.1
Notice of intent to decrease assessment ration – Public
Status: in_force

meetings.

A. No county assessor may decrease the assessment ratio used to

compute the taxable value of real or personal property unless the

assessor provides written notice of an intent to decrease the

assessment ratio at least ninety (90) days prior to the first date

as of which the assessor intends to cause such ratio to be

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1156

decreased. The written notice shall be mailed by certified mail

with return receipt requested to the county treasurer, the county

clerk, the county sheriff, to each of the county commissioners and

to the governing board of any local government jurisdiction that

levies ad valorem taxes upon any property located within the county.

Such notice shall be mailed not later than sixty (60) days prior to

the expiration of the ninety-day period prescribed by this

subsection. The notice shall clearly state the assessment ratio in

effect prior to the decrease, the category of property (whether real

or personal or both) to be affected by the proposed decrease in

assessment ratio and the date as of which such decrease is proposed

to take effect.

B. The county assessor shall also be required to publish a

notice of intent to decrease the assessment ratio which clearly

states the ratio in effect prior to the decrease, the category of

property (whether real or personal or both) to be affected by the

proposed decrease in assessment ratio and the date as of which such

decrease is proposed to take effect. The notice shall be placed at

least one time for three (3) consecutive weeks in a newspaper of

general circulation in the county in which the assessor holds

office. The last publication date shall be not later than thirty

(30) days prior to the date that any decrease in the assessment

ratio is implemented. At the beginning of the notice to be

published, there shall appear in a font which is conspicuously

larger than the other information which appears in the notice the

following wording: "NOTICE OF INTENT TO DECREASE ASSESSMENT RATIO

WITH RESPECT TO REAL OR PERSONAL PROPERTY OR BOTH IN [insert

applicable county name] FOR THE [insert applicable year] ASSESSMENT

YEAR".

C. Before the county assessor may implement a decrease in an

assessment ratio with respect to either real or personal property,

there shall be at least three public meetings held at a location

within the county prior to the date as of which the first decrease

in assessment ratio occurs. Notice of the meetings shall be posted

in the office of the county assessor, the office of the county

treasurer, the office of each county commissioner, the office of the

county clerk and such other places within the county as may be

feasible in order to provide adequate notice of the date, time and

location of each meeting. The last public meeting shall be held not

later than thirty (30) days prior to the date any decrease in the

applicable assessment ratio is implemented.

D. The county assessor or a designee from the office of the

county assessor shall attend each of the public meetings in order to

answer questions about the proposed decrease in the assessment ratio

and any possible effects on the budgets of any ad valorem taxing

jurisdiction.
Okla. Stat. tit. 68, § 68-2351 — OK Code / Title 68 / Section 68-2351
Short title and effective date
Status: in_force

This article may be cited as the "Oklahoma Income Tax Act" and

shall be applicable to all years commencing after December 31, 1970.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 735
Okla. Stat. tit. 68, § 68-2489 — OK Code / Title 68 / Section 68-2489
Renumbered as § 3009 of this title by Laws 1988, c. 162,
Status: in_force

§ 163, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 3, eff. Jan. 1,

1992.
Okla. Stat. tit. 68, § 68-3106 — OK Code / Title 68 / Section 68-3106
Notice of delinquent taxes and special assessments
Status: in_force

A. Except for periods governed by the provisions of subsection

C of Section 3148 of this title, the county treasurer, according to

the law, shall give notice of delinquent taxes and special

assessments by publication once a week for two (2) consecutive weeks

at any time after April 1, but prior to the end of September

following the year the taxes were first due and payable, in some

newspaper in the county to be designated by the county treasurer.

Such notice shall contain a notification that all lands on which the

taxes are delinquent and remain due and unpaid will be sold in

accordance with Section 3105 of this title, a list of the lands to

be sold, the name or names of the last record owner or owners as of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1328

the preceding December 31 or later as reflected by the records in

the office of the county assessor, which records shall be updated

based on real property conveyed after October 1 each year and the

amount of taxes due and delinquent. If the sale involves property

upon which is located a manufactured home the notice shall contain

the following language: "The sale hereby advertised involves a

manufactured home which may be subject to the right of a secured

party to repossess. A holder of a perfected security interest in

such manufactured home may be able to pay ad valorem taxes based

upon the value of the manufactured home apart from the value of real

property." In addition to said published notice, the county

treasurer shall give notice by mailing to the record owner of said

real property as of the preceding December 31 or later as reflected

by the records in the office of the county assessor, which records

shall be updated based on real property conveyed after October 1

each year, a notice stating the amount of delinquent taxes owed and

informing the owner that the subject real property will be sold as

provided for in Section 3105 of this title if the delinquent taxes

are not paid and showing the legal description of the property of

the owner being sold. Failure to receive said notice shall not

invalidate said sale. The county treasurer shall charge and collect

in cash, cashier's check or money order, in addition to the taxes,

interest and penalty, the publication fees as provided by the

provisions of Section 121 of Title 28 of the Oklahoma Statutes, and

Five Dollars ($5.00) plus postage for mailing the notice, which

shall be paid into the county treasury or whatever fund the

publication and mailing fee expenses came from, and the county shall

pay the cost of the publication of such notice. But in no case

shall the county be liable for more than the amount charged to the

delinquent lands for advertising and the cost of mailing.

B. If personal property taxes become delinquent on a

manufactured home which is located on property not owned by the

owner of the manufactured home and the county treasurer provides

notice pursuant to Sections 3102 and 3103 of this title, such notice

shall also be sent to the last-known address of the owner of the

real property on which the manufactured home is located.
Okla. Stat. tit. 68, § 68-1503.1 — OK Code / Title 68 / Section 68-1503.1
Exempted devices
Status: in_force

The following coin-operated vending devices shall be exempt from

the provisions of this article, Section 1501 et seq. of this title:

1. All coin-operated vending devices owned by and located in a

public or private school, a church, or a governmental entity;

2. All coin-operated vending devices which dispense only

newspapers or periodicals;

3. All coin-operated vending devices which dispense only

postage stamps; and

4. All coin-operated vending devices installed on federal

military bases.
Okla. Stat. tit. 68, § 68-24104 — OK Code / Title 68 / Section 68-24104
Renumbered as § 3024 of this title by Laws 1988, c. 162,
Status: in_force

§ 163, eff. January 1, 1992 and by Laws 1991, c. 249, § 3, eff.

January 1, 1992.
Okla. Stat. tit. 68, § 68-500.50 — OK Code / Title 68 / Section 68-500.50
Conditions for importers prior to bringing undyed and
Status: in_force

untaxed fuel into state - Penalties - Seizure.

A. In the event that an importer acquires motor fuel destined

for this state which has neither been dyed in accordance with the

Internal Revenue Code and the regulations issued thereunder, nor tax

paid to or accrued by the supplier at the time of removal from the

out-of-state terminal, any licensed importer and transporter

operating on behalf of the licensed importer shall meet all of the

following conditions prior to entering motor fuel onto the highways

of this state by loaded transport truck:

1. The importer or the transporter shall have obtained an

import verification number from the Commission not sooner than

twenty-four (24) hours prior to entering this state;

2. The import verification number shall have been set out

prominently and indelibly on the face of each copy of the terminal-

issued shipping paper carried on board the transport truck;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 308

3. The terminal origin and the name and address of the importer

shall also be set out prominently on the face of each copy of the

terminal-issued shipping paper;

4. The terminal-issued shipping paper data otherwise required

by this act shall be present; and

5. All tax imposed by this act with respect to previously

requested import verification number activity on the account of the

importer or the transporter shall have been timely precollected and

remitted.

B. Any person who knowingly violates or knowingly aids and

abets another to violate this provision shall be guilty of a

misdemeanor and shall, upon conviction, be fined not more than One

Thousand Dollars ($1,000.00), or be sentenced to a term of not more

than one (1) year in the county jail, or shall be punishable by both

such fine and imprisonment and shall be subject to the provisions of

Section 59 of this act.

C. The Commission, its appointee, or representative may seize,

confiscate and dispose of any motor fuel which should be accompanied

by a shipping paper meeting the requirement of this section which is

not accompanied by the required shipping paper.
Okla. Stat. tit. 68, § 68-2385.24 — OK Code / Title 68 / Section 68-2385.24
State, county and municipal retirement systems -
Status: in_force

Withholding.

Beginning July 1, 1989, all state and county retirement systems

whose benefits were exempt from state income taxation prior to

January 1, 1989, and all municipal retirement systems whose benefits

were subject to state income taxation prior to January 1, 1989,

shall begin to withhold monies, as required by Sections 2385.1 et

seq. of this title, for state income tax purposes from the benefits

paid to each member of the retirement systems, unless the member

requests the retirement system not to withhold monies for state

income tax purposes.
Okla. Stat. tit. 68, § 68-500.61 — OK Code / Title 68 / Section 68-500.61
Audits and examinations - Penalties
Status: in_force

A. The Commission or any authorized deputy, employee, or agent

is authorized to audit and examine the records, books, papers, and

equipment of terminal suppliers, importers, wholesalers, jobbers,

retail dealers, terminal operators, fuel vendors and all private and

common carriers of motor fuel to verify the completeness, truth and

accuracy of any statement or report and ascertain whether or not the

tax imposed by this act has been paid.

B. The Commission shall have the same general authority

provided under subsection A of this section with respect to narrow

transportation sampling audits. However, all fuel vendors and bulk

purchasers of fuel shall make available to the Commission necessary

records with respect to such transaction(s) which the Commission is

attempting to verify during normal business hours at the physical

location of the person in this state, or at the offices of the

Commission if the location at which the records are located is

outside of this state, within three (3) business days after request.

C. The Commission or any appointee, including federal

government employees and persons contracting with the state, may,

upon proof of credentials shown, in the aggregate referred to for

purposes of this section as fuel inspectors, inspect and each fuel

vendor, motor fuel transporter or bulk purchaser shall disclose,

immediately upon request, any shipping paper required by this act to

be maintained at the physical location where the request is made

which may include any place motor fuel is stored or held for sale or

transportation.

D. Any person who shall refuse to permit any inspection or

audit authorized by this act shall be subject to a civil penalty of

Five Thousand Dollars ($5,000.00) in addition to any penalty imposed

by any other provision of this act.

E. Any person who refuses, for the purpose of evading tax, to

allow an inspection shall, in addition to being liable for any other

penalties imposed by this act, be guilty of a misdemeanor and shall,

upon conviction, be fined not more than One Thousand Dollars

Oklahoma Statutes - Title 68. Revenue and Taxation Page 314

($1,000.00), or be sentenced to a term of not more than one (1) year

in the county jail, or shall be punishable by both such fine and

imprisonment.
Okla. Stat. tit. 68, § 68-4109 — OK Code / Title 68 / Section 68-4109
False or fraudulent applications and instruments – Felony
Status: in_force

– Punishment.

Any person making an application, claim for payment or any

report, return, statement or other instrument or providing any other

information pursuant to the provisions of this act who willfully

makes a false or fraudulent application, claim, report, return,

statement, invoice or other instrument or who willfully provides any

false or fraudulent information, or any person who willfully aids or

abets another in making such false or fraudulent application, claim,

report, return, statement, invoice or other instrument or who

willfully aids or abets another in providing any false or fraudulent

information, upon conviction, shall be guilty of a Class D1 felony

offense punishable by the imposition of a fine not less than One

Thousand Dollars ($1,000.00) and not more than Fifty Thousand

Dollars ($50,000.00), or imprisonment as provided for in subsections

B through F of Section 20N of Title 21 of the Oklahoma Statutes, or

by both such fine and imprisonment. Any person convicted of a

violation of this section shall be liable for the repayment of all

investment payments which were paid to the establishment. Interest

shall be due on such payments at the rate of ten percent (10%) per

annum.
Okla. Stat. tit. 68, § 68-2817.3 — OK Code / Title 68 / Section 68-2817.3
Exclusion of property used for desulphurization of
Status: in_force

gasoline or diesel fuel.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1153

A. As used in subsection E of Section 2817 of this title,

“facility, device or method for the desulphurization of gasoline or

diesel fuel” means any structure, building, installation,

excavation, machinery, equipment or device and any attachment or

addition to or reconstruction, replacement or improvement of that

property, that is used, constructed, acquired or installed on or

after January 1, 2003, wholly or partly to meet or exceed rules

adopted by the Oklahoma Environmental Quality Board, or by the

United States Environmental Protection Agency with respect to any

program which has been delegated to the Department of Environmental

Quality for the prevention, monitoring, control or reduction of the

amount of sulfur in gasoline or diesel fuel. This definition shall

not apply to a motor vehicle.

B. In applying for an exclusion of property under the

provisions of subsection E of Section 2817 of this title, a person

seeking the exclusion shall present in a request to the Executive

Director of the Department of Environmental Quality information

detailing:

1. The anticipated environmental benefits from the installation

of the facility, device or method for the desulphurization of

gasoline or diesel fuel;

2. The estimated cost of the facility, device or method; and

3. The purpose of the installation of such facility, device or

method and the proportion of the installation that is such a

facility, device or method.

C. Following submission of the information required by

subsection B of this section, the Executive Director of the

Department of Environmental Quality shall determine if the facility,

device or method is used wholly as a facility, device or method for

the desulphurization of gasoline or diesel fuel. As soon as

practicable, the Executive Director shall send notice by regular

mail to the Director of the Ad Valorem Division of the Oklahoma Tax

Commission that the person has applied for a determination under

this section. If the Executive Director determines that the

facility, device or method is used wholly for the desulphurization

of gasoline or diesel fuel, the Executive Director shall issue a

letter to the person stating that determination and the proportion

of the installation that is a facility, device or method for the

desulphurization of gasoline or diesel fuel.

D. The Department of Environmental Quality may charge a person

seeking a determination under the provisions of this section an

additional fee not to exceed its administrative costs for processing

the information, making the determination and issuing the letter

required by this section. The Environmental Quality Board may adopt

rules to implement this section.

E. A person seeking an exclusion under this section shall

provide to the county assessor or the Director of the Ad Valorem

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1154

Division of the Oklahoma Tax Commission a copy of the letter issued

by the Executive Director of the Department of Environmental Quality

under subsection C of this section. The county assessor or the

Director of the Ad Valorem Division of the Tax Commission shall

accept the copy of the letter from the Executive Director as

conclusive evidence that the facility, device or method is used

wholly for the desulphurization of gasoline or diesel fuel. The

county assessor or the Director of the Ad Valorem Division of the

Tax Commission shall further determine if the property for which the

exclusion is sought is qualified as provided in subsection E of

Section 2817 of this title.

F. The exclusion provided by this section, once allowed, need

not be applied for subsequent years, and the exclusion applies to

the property until it changes ownership or the qualification of the

property for the exclusion changes. However, the county assessor or

the Director of the Ad Valorem Division of the Tax Commission may

require a person allowed an exclusion in a prior year to file a new

application to confirm the current qualification for the exclusion

by delivering a written notice that a new application is required,

accompanied by an appropriate application form, to the person

previously allowed the exclusion.
Okla. Stat. tit. 68, § 68-1364.2 — OK Code / Title 68 / Section 68-1364.2
Special events - Permit - Fee - Sales tax collection by
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 14vendors - Report - Annual events - Definitions.

A. Promoters or organizers of special events shall submit an

application for a special event permit to the Oklahoma Tax

Commission at least twenty (20) days prior to the special event.

The application shall be accompanied by a fee of Fifty Dollars

($50.00). The application shall include the location and dates of

the special event, expected number of vendors, and any other

information that may be required by the Tax Commission. A separate

permit shall be required for each special event and must be

prominently displayed. Multiple events held at the same location

during the calendar year may be included in one application.

B. All monies received from such fees shall be paid to the

State Treasurer and placed to the credit of the General Revenue Fund

of the State Treasurer.

C. Promoters or organizers shall provide vendor letters or

forms to special event vendors for reporting sales tax collections

and any other information that may be required by the Tax

Commission.

D. Unless otherwise provided in this section, special event

vendors shall collect sales tax from purchasers of tangible personal

property and services taxable under Section 1350 et seq. of this

title and shall remit the tax, along with a sales tax report, to the

promoter or organizer.

E. Within fifteen (15) days following the conclusion of the

special event, the organizer or promoter shall forward all reports

Oklahoma Statutes - Title 68. Revenue and Taxation Page 611

and payments to the Tax Commission along with a completed sales tax

report. If not filed on or before the fifteenth day, the tax shall

be delinquent from such date. Reports timely mailed shall be

considered timely filed. If a report is not timely filed, interest

shall be charged from the date the report should have been filed

until the report is actually filed.

F. At least ten (10) days prior to the start of the special

event, the organizer or promoter shall submit a list of all vendors

registered to attend the event. Within fifteen (15) days following

the conclusion of the special event, the organizer or promoter shall

also submit a list of vendors who actually attended each event.

Each list shall include the vendor's name, address, telephone

number, email address and taxpayer identification number. If a

vendor holds an Oklahoma sales tax permit issued under Section 1364

of this title, the permit numbers shall also be included.

G. Promoters and organizers shall only be liable for failure to

report and remit all taxes that are remitted to them by special

event vendors.

H. Promoters or organizers of a special event that is held on

an annual basis during the same thirty-day period each year may

request that the Tax Commission limit their responsibilities to the

following:

1. Submitting of an application for a special event permit as

provided in subsection A of this section;

2. Providing report forms to special event vendors as provided

in subsection C of this section; and

3. Within fifteen (15) days following the conclusion of the

special event, submitting a list of special event vendors at each

event, including the vendor's name, address, and telephone number.

Such requests may be denied by the Tax Commission for reasons

including, but not limited to, failure by the promoter to comply

with the requirements of this section or failure by vendors of the

promoter's previous special events to comply with the provisions of

subsection I of this section.

I. Special event vendors of special events that are approved

under subsection H of this section shall remit the tax along with a

sales tax report directly to the Tax Commission within fifteen (15)

days following the conclusion of the special event. If not filed on

or before the fifteenth day, the tax shall be delinquent from such

date. Reports timely mailed shall be considered timely filed. If a

report is not timely filed, interest shall be charged from the date

the report should have been filed until the report is actually

filed.

J. As used in this section:

1. "Promoter" or "organizer" means any person who organizes or

promotes a special event which results in the rental, occupation, or

use of any structure, lot, tract of land, sample or display case,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 612

table, or any other similar items for the exhibition and sale of

tangible personal property or services taxable under Section 1350 et

seq. of this title by special event vendors;

2. "Special event" means an entertainment, amusement,

recreation, or marketing event that occurs at a single location on

an irregular basis and at which tangible personal property is sold.

"Special event" shall include, but not be limited to, gun shows,

knife shows, craft shows, antique shows, flea markets, carnivals,

bazaars, art shows, and other merchandise displays or exhibits.

Special event shall not include any county, district, or state fair

or public or private school or university-sponsored event. Special

event shall not include an event sponsored by a city or town that

includes less than ten special event vendors or any event sponsored

by a church organization exempt from federal income tax pursuant to

Section 501(c)(3) of the Internal Revenue Code. Special event shall

not include a registered farmers market which is a designated area

in which farmers, growers or producers from a defined region gather

on a regularly scheduled basis to sell at retail nonpotentially

hazardous farm food products and whole-shell eggs to the public; and

3. "Special event vendor" means a person making sales of

tangible personal property or services taxable under Section 1350 et

seq. of this title at a special event within this state and who is

not permitted under Section 1364 of this title.
Okla. Stat. tit. 68, § 68-3660 — OK Code / Title 68 / Section 68-3660
Establishments ceasing to qualify for incentive payment -
Status: in_force

Liability for payment of principal, interest or other costs.

A. An establishment making the second irrevocable election

pursuant to the provisions of Section 3658 of this title and which

ceases to qualify for an incentive payment pursuant to the

provisions of the Oklahoma Quality Jobs Program Act, other than a

payment in the amount of One Dollar ($1.00) as provided in paragraph

1 of subsection D of Section 3658 of this title, and the withholding

tax collections of which are not sufficient to make required

payments of principal or interest because of a reduction in gross

payroll at a facility constructed with or equipped with personal

property acquired through the use of proceeds from the issuance of

obligations by the Oklahoma Development Finance Authority pursuant

to the provisions of this act, shall be liable to the State of

Oklahoma and the Oklahoma Development Finance Authority for the

amount of any required principal or interest payment associated with

obligations issued as a result of a second irrevocable election the

proceeds of which have been paid to the establishment or are

available for use by the establishment that remains after using the

incentive payment plus the withholding taxes of the establishment.

B. An establishment incurring an obligation for the payment of

any principal, interest or other costs pursuant to subsection A of

this section shall be liable only for amounts accrued during such

period of time. The establishment shall not have any direct

liability for subsequent periods of time during which the sum of the

incentive payment and the withholding tax collected from the

establishment is sufficient to make required payments in

satisfaction of the obligations issued pursuant to subsection A of

Section 3654 of this title.
Okla. Stat. tit. 68, § 68-3607 — OK Code / Title 68 / Section 68-3607
Eligibility of establishments receiving incentive
Status: in_force

payments to receive certain tax credits and exemptions.

A. Notwithstanding any other provision of law, if a qualified

establishment receives an incentive payment pursuant to the

provisions of Section 3601 et seq. of this title, neither the

qualified establishment nor its contractors or subcontractors shall

be eligible to receive the credits or exemptions provided for in the

following provisions of law in connection with the activity for

which the incentive payment was received:

1. Paragraphs 16 and 17 of Section 1357 of this title;

2. Paragraph 7 of Section 1359 of this title;

3. Section 2357.4 of this title; except as provided in

subsection B of this section;

4. Section 2357.7 of this title;

5. Section 2-11-303 of Title 27A of the Oklahoma Statutes;

6. Section 2357.22 of this title;

7. Section 2357.31 of this title;

8. Section 54003 of this title;

9. Section 54006 of this title;

10. Section 625.1 of Title 36 of the Oklahoma Statutes;

11. Subsections C and D of Section 2357.59 of this title;

12. Section 2357.13 of this title; or

13. Section 4201 of this title.

B. Any establishment which has qualified to receive quarterly

incentive payments pursuant to subsection B of Section 3604 of this

title for a ten-year period with a project start date after January

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1394

1, 2010, shall be eligible to receive the credit provided for in

Section 2357.4 of this title if such establishment:

1. Qualifies for the credit allowed pursuant to paragraph 1 of

subsection B of Section 2357.4 of this title based on an investment

made after January 1, 2010;

2. Pays an average annualized wage which equals or exceeds the

average state wage as determined by the Department of Commerce based

on the most recent U.S. Department of Commerce data; and

3. Obtains a determination letter from the Oklahoma Department

of Commerce that the business activity of the entity will result in

a positive net benefit rate.

C. For purposes of the exception provided for in this section:

1. "Estimated direct state benefits" has the meaning set out in

paragraph 4 of subsection A of Section 3603 of this title;

2. "Estimated indirect state benefits" means the indirect new

tax revenues projected by the Oklahoma Department of Commerce to

accrue to the state, including, but not limited to, revenue

generated from ancillary support jobs directly related to the

primary business;

3. "Estimated direct state costs" has the meaning set out in

paragraph 5 of subsection A of Section 3603 of this title; and

4. "Estimated indirect state costs" means the costs projected

by the Oklahoma Department of Commerce to accrue to the state as a

result of new indirect jobs. Such costs shall include, but not be

limited to, costs enumerated in paragraph 3 of this subsection.

D. Any establishment which has qualified to receive quarterly

incentive payments pursuant to subsection B of Section 3604 of this

title for a ten-year period with a project start date after January

1, 2010, shall be eligible to receive the credit provided for in

Section 2357.4 of this title pursuant to the provisions of this

section if such establishment obtains a determination letter from

the Oklahoma Department of Commerce that the business activity of

the entity will result in a positive net benefit rate, to be

computed by the Oklahoma Department of Commerce using a methodology

which provides for the analysis of estimated direct state benefits,

estimated indirect state benefits, estimated direct state costs and

estimated indirect state costs. The Oklahoma Department of Commerce

shall use such information as it determines to be relevant for the

analysis required by this subsection including, but not limited to,

the type of business activity in which the entity is engaged or will

be engaged, amount of capital investment, type of assets acquired or

utilized by the business entity, economic impact of the business

activity within the relevant geographic region and such other

factors as the Department determines to be relevant. The Oklahoma

Department of Commerce may use information regarding the business

entity alone or in conjunction with relevant information regarding

other business activity in a geographically relevant area

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1395

surrounding the principal business location of the primary business

entity in order to perform the computation of the net benefit rate.

If the result of the analysis is a positive net benefit rate, the

establishment shall be allowed to qualify to receive quarterly

incentive payments pursuant to subsection B of Section 3604 of this

title for a ten-year period and shall be eligible to receive the

credit provided for in Section 2357.4 of this title. The Oklahoma

Department of Commerce shall transmit a determination letter to the

authorized representative of the establishment and shall also

transmit a copy of the determination letter to the Oklahoma Tax

Commission, regardless of whether the result is a positive or

negative net benefit rate.
Okla. Stat. tit. 68, § 68-4106 — OK Code / Title 68 / Section 68-4106
Claims for investment payments – Timing – Verification –
Status: in_force

Cessation of payments and recovery of payments when agreement terms

not met – Additional payments.

A. As soon as practicable after the end of a fiscal year for

which a qualified establishment has qualified to receive an

investment payment, the establishment shall file a claim for the

payment with the Oklahoma Tax Commission for ten percent (10%) of

the total amount of capital costs actually invested by the

establishment during such fiscal year.

B. If the first claim for investment payment is filed later

than two (2) years from the start date designated by the Department,

the agreement shall be deemed expired and void.

C. The Tax Commission shall verify for each fiscal year the

actual amount of capital costs and the actual tax benefit accrued or

to be accrued to the State of Oklahoma. If the Tax Commission is

not able to provide such verification utilizing all available

resources, the Tax Commission may request such additional

information from the establishment as may be necessary or may reject

the establishment’s claim based upon analysis of actual capital

costs incurred by the establishment.

D. If the qualified establishment does not meet the terms of

the agreement and all provisions of this act, investment payments

shall cease and shall not be resumed, and the agreement shall expire

and be void. The Oklahoma Department of Commerce may seek to

recover in a court of competent jurisdiction any payments made to a

qualified establishment if the establishment does not comply with

the requirements of subparagraph e of paragraph 2 of subsection F of

Section 4 of this act; provided, however, that no investment

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1480

payments shall be subject to recovery or recapture based upon a

failure to invest capital equal to the amount estimated by the

qualified establishment as stated in a quality investment agreement.

E. A qualified establishment that has qualified pursuant to

Section 4 of this act may receive payments only in accordance with

the provisions under which it initially applied and was approved.

F. An establishment that is receiving investment payments may

not apply for additional investment payments for any new capital

costs until expiration of its quality investment agreement.

Provided, a qualified establishment may apply for additional

investment payments pursuant to subsequent quality investment

agreements based upon additional capital costs at a different

manufacturing site.

G. As soon as practicable after verification of the eligibility

of the manufacturer as required by this section, the Tax Commission

shall issue a warrant to the establishment.
Okla. Stat. tit. 68, § 68-1354.36 — OK Code / Title 68 / Section 68-1354.36
One-subject requirement for sales tax levies submitted
Status: in_force

to county voters.

After January 1, 2016, every sales tax levy submitted to county

voters for approval shall embrace but one subject, which shall be

clearly expressed on the ballot. For purposes of this section, "one

subject" shall mean a ballot proposition with only one sales tax

levy for a specified purpose but may include multiple projects for

that purpose. Nothing in this section shall be interpreted as

prohibiting a one-subject proposition from residing upon the same

paper voting ballot as other one-subject propositions.
Okla. Stat. tit. 68, § 68-4207 — OK Code / Title 68 / Section 68-4207
Ineligibility for certain tax credits or exemptions
Status: in_force

Notwithstanding any other provision of law, if a qualified

establishment receives an incentive payment pursuant to the

provisions of this act, neither the qualified establishment nor its

contractors or subcontractors shall be eligible to receive the

credits or exemptions provided for in the following provisions of

law in connection with the activity for which the incentive payment

was received:

1. Section 625.1 of Title 36 of the Oklahoma Statutes (premium

tax credits);

2. Paragraph 7 of Section 1359 of Title 68 of the Oklahoma

Statutes (construction materials sales tax refunds);

3. Section 2357.4 of Title 68 of the Oklahoma Statutes (new

jobs/investment income tax credits);

4. Section 2357.7 of Title 68 of the Oklahoma Statutes (venture

capital investment credits);

5. Section 2-11-303 of Title 27A of the Oklahoma Statutes

(pollution control equipment investment income tax credits);

6. Section 2357.22 of Title 68 of the Oklahoma Statutes (income

tax credits for investment in clean-burning motor fuel vehicles);

7. Section 2357.31 of Title 68 of the Oklahoma Statutes (small

business income tax credits);

8. Section 54003 of Title 68 of the Oklahoma Statutes (research

and development or computer services sales tax refunds);

9. Subsections C and D of Section 2357.29 of Title 68 of the

Oklahoma Statutes (recycling income tax credits);

10. Section 2902 of Title 68 of the Oklahoma Statutes (state

reimbursement to communities for property tax exemptions to

manufacturers);

11. Section 3601 et seq. of Title 68 of the Oklahoma Statutes

(Oklahoma Quality Jobs Program Act);

12. Section 3701 et seq. of Title 68 of the Oklahoma Statutes

(Saving Quality Jobs Act);

13. Section 3801 et seq. of Title 68 of the Oklahoma Statutes

(Former Military Facilities Development Act);

14. Section 3901 et seq. of Title 68 of the Oklahoma Statutes

(Small Employer Quality Jobs Incentive Act);

15. Sections 3651 through 3659 of Title 68 of the Oklahoma

Statutes (Quality Jobs Incentive Leverage Act); and

16. Section 4101 et seq. of Title 68 of the Oklahoma Statutes

(Oklahoma Specialized Quality Investment Act).

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1490
Okla. Stat. tit. 68, § 68-1018 — OK Code / Title 68 / Section 68-1018
Tax on uranium
Status: in_force

The purpose of the following sections of this article is to

broaden the tax provided for in the preceding sections, so as to

subject to gross production tax the interest of all persons in ore

bearing uranium as the term uranium is hereinafter defined. In the

event the ore bears any other metal, mineral, substance or matter

subjected to the aforesaid gross production tax, the tax levied by

Section 1019 shall be in addition to said tax. Provided, however,

that any mineral, substance or matter subjected to the tax levied by

the preceding sections of this article shall not be subjected to the

tax levied by Section 1019.
Okla. Stat. tit. 68, § 68-1365 — OK Code / Title 68 / Section 68-1365
When tax due - Reports - Records
Status: in_force

When Tax Due – Reports – Records.

A. The tax levied hereunder shall be due and payable on the

first day of each month, except as herein provided, by any person

liable to remit or pay any tax due under Section 1350 et seq. of

this title. For the purpose of ascertaining the amount of the tax

Oklahoma Statutes - Title 68. Revenue and Taxation Page 613

payable, it shall be the duty of all tax remitters, on or before the

twentieth day of each month, to deliver to the Oklahoma Tax

Commission, upon forms prescribed and furnished by it, sales tax

reports signed under oath, showing the gross receipts or gross

proceeds arising from all sales taxable or nontaxable under Section

1350 et seq. of this title during the preceding calendar month.

Such reports shall show such further information as the Tax

Commission may require to enable it to compute correctly and collect

the tax herein levied. In addition to the information required on

reports, the Tax Commission may request and the taxpayer must

furnish any information deemed necessary for a correct computation

of the tax levied herein. Such tax remitter shall compute and remit

to the Tax Commission the required tax due for the preceding

calendar month, the remittance or remittances of the tax to

accompany the reports herein required. If not filed on or before

the twentieth day of such month, the tax shall be delinquent from

such date. Reports timely mailed shall be considered timely filed.

If a report is not timely filed, interest shall be charged from the

date the report should have been filed until the report is actually

filed.

B. Effective July 1, 2001, every person owing an average of One

Hundred Thousand Dollars ($100,000.00) or more per month in total

sales taxes in the previous fiscal year shall remit the tax due and

shall participate in the Tax Commission’s electronic funds transfer

and electronic data interchange program, according to the following

schedule:

1. For sales from the first day through the fifteenth day of

each month, the tax shall be due and payable on the twentieth day of

such month and remitted to the Tax Commission by electronic funds

transfer. A taxpayer will be considered to have complied with the

reporting requirements of this paragraph if, on or before the

twentieth day of such month, the taxpayer paid at least ninety

percent (90%) of the liability for that fifteen-day period or at

least fifty percent (50%) of the taxpayer’s liability in the

immediate preceding calendar year for the same month as the month in

which the fifteen-day period occurs; and

2. For sales from the sixteenth day through the end of each

month, the tax shall be due and payable on the twentieth day of the

following month and remitted to the Tax Commission by electronic

funds transfer.

Every person required to remit the tax due pursuant to this

subsection shall file its monthly sales tax report in accordance

with the Tax Commission’s electronic data interchange program on the

twentieth day of the month following the month the sales occurred.

Taxes not paid on or before the due dates specified in this

subsection shall be delinquent from such dates.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 614

C. Effective March 1, 2002, every person owing an average of

Twenty-five Thousand Dollars ($25,000.00) or more per month in total

sales taxes in the previous fiscal year shall remit the tax due and

shall participate in the Tax Commission’s electronic funds transfer

and electronic data interchange program, according to the following

schedule:

1. For sales from the first day through the fifteenth day of

each month, the tax shall be due and payable on the twentieth day of

such month and remitted to the Tax Commission by electronic funds

transfer. A taxpayer will be considered to have complied with the

reporting requirements of this paragraph if, on or before the

twentieth day of such month, the taxpayer paid at least ninety

percent (90%) of the liability for that fifteen-day period or at

least fifty percent (50%) of the taxpayer’s liability in the

immediate preceding calendar year for the same month as the month in

which the fifteen-day period occurs; and

2. For sales from the sixteenth day through the end of each

month, the tax shall be due and payable on the twentieth day of the

following month and remitted to the Tax Commission by electronic

funds transfer.

Every person required to remit the tax due pursuant to this

subsection shall file its monthly sales tax report in accordance

with the Tax Commission’s electronic data interchange program on the

twentieth day of the month following the month the sales occurred.

Provided, persons primarily engaged in selling lumber and other

building materials, including cement and concrete, except for home

centers classified under Industry No. 444110 of the North American

Industrial Classification System (NAICS) Manual, shall remit and

report as required in subsection A of this section, with the

exception of taxes due on sales made during the periods of June 1

through June 15, 2002, which shall be remitted and reported on June

20, 2002, and June 1 through June 15, 2003, which shall be remitted

and reported on June 20, 2003.

Taxes not paid on or before the due dates specified in this

subsection shall be delinquent from such dates.

D. Effective October 1, 2003, every person owing an average of

Two Thousand Five Hundred Dollars ($2,500.00) or more per month in

total sales taxes in the previous fiscal year shall remit the tax

due and shall participate in the Tax Commission’s electronic funds

transfer and electronic data interchange program, according to the

following schedule:

1. For sales from the first day through the fifteenth day of

each month, the tax shall be due and payable on the twentieth day of

such month and remitted to the Tax Commission by electronic funds

transfer. A taxpayer will be considered to have complied with the

reporting requirements of this paragraph if, on or before the

twentieth day of such month, the taxpayer paid at least ninety

Oklahoma Statutes - Title 68. Revenue and Taxation Page 615

percent (90%) of the liability for that fifteen-day period or at

least fifty percent (50%) of the taxpayer’s liability in the

immediate preceding calendar year for the same month as the month in

which the fifteen-day period occurs; and

2. For sales from the sixteenth day through the end of each

month, the tax shall be due and payable on the twentieth day of the

following month and remitted to the Tax Commission by electronic

funds transfer.

Every person required to remit the tax due pursuant to this

subsection shall file its monthly sales tax report in accordance

with the Tax Commission’s electronic data interchange program on the

twentieth day of the month following the month the sales occurred.

Provided, persons primarily engaged in selling lumber and other

building materials, including cement and concrete, except for home

centers classified under Industry No. 444110 of the North American

Industrial Classification System (NAICS) Manual, shall remit and

report as required in subsection A of this section.

Taxes not paid on or before the due dates specified in this

subsection shall be delinquent from such dates.

E. In lieu of monthly reports, tax remitters or taxpayers who

are classified as Group Three vendors in Section 1350 et seq. of

this title or tax remitters or taxpayers whose total amount of tax

liability for any one month does not exceed Fifty Dollars ($50.00)

may file semiannual reports and remit taxes due thereunder to the

Tax Commission on or before the twentieth day of January and July of

each year for the preceding six-month period. If not paid on or

before the twentieth day of such month, the tax shall be delinquent.

F. It shall be the duty of every tax remitter required to make

a sales tax report and pay any tax under Section 1350 et seq. of

this title to keep and preserve suitable records of the gross daily

sales together with invoices of purchases and sales, bills of

lading, bills of sale and other pertinent records and documents

which may be necessary to determine the amount of tax due hereunder

and such other records of goods, wares and merchandise, and other

subjects of taxation under Section 1350 et seq. of this title as

will substantiate and prove the accuracy of such returns. It shall

also be the duty of every person who makes sales for resale to keep

records of such sales which shall be subject to examination by the

Tax Commission or any authorized employee thereof while engaged in

checking or auditing the records of any person required to make a

report under the terms of Section 1350 et seq. of this title. All

such records shall remain in Oklahoma and be preserved for a period

of three (3) years, unless the Tax Commission, in writing, has

authorized their destruction or disposal at an earlier date, and

shall be open to examination at any time by the Tax Commission or by

any of its duly authorized agents. The burden of proving that a

Oklahoma Statutes - Title 68. Revenue and Taxation Page 616

sale was not a taxable sale shall be upon the person who made the

sale.

G. The purchaser must provide the vendor with the purchaser’s

sales tax permit number, the direct payment permit number or a copy

of the direct payment permit if the sale is made within Oklahoma.

In addition to furnishing the sales tax permit number to the vendor,

the purchaser must certify in writing to the vendor that the

purchaser is engaged in the business of reselling the articles

purchased. Failure to so certify, or to falsely certify with the

knowledge that the items purchased are not for resale, shall be

sufficient grounds upon which the Tax Commission may cause the

purchaser’s sales tax permit to be canceled. Certification may be

made on the bill, invoice or sales slip retained by the vendor or by

furnishing a certification letter to the seller which contains the

following:

1. The name and address of the purchaser;

2. The sales tax permit number of the permit issued to the

purchaser;

3. A statement that the purchaser is engaged in the business of

reselling the articles purchased, if applicable;

4. A statement that the articles purchased are purchased for

resale, if applicable; and

5. The signature of the purchaser or a person authorized to

legally bind the purchaser.

H. If a sales tax permit holder purchases goods, wares and

merchandise from a vendor on a regular basis, then the permit holder

may furnish the certification letter described in subsection G of

this section to the vendor and the vendor may subsequently make

sales of tangible personal property to the permit holder without

requiring a certification letter or certification statement for each

subsequent sale. The permit holder must notify the seller of all

purchases which are not for resale and remit the applicable amount

of tax thereon. If the permit holder fails to notify the vendor of

purchases not intended for resale, then sufficient grounds shall

exist for the Tax Commission to cancel the sales tax permit of the

permit holder who so failed to notify the vendor.

I. In lieu of filing reports as required in subsection A of

this section, tax remitters or taxpayers who agree to participate in

the Tax Commission’s electronic funds transfer and electronic data

interchange programs may file according to the following schedule:

1. For sales from the first day through the fifteenth day of

each month, the tax shall be due and payable on the twentieth day of

such month and remitted to the Tax Commission by electronic funds

transfer. A taxpayer will be considered to have complied with the

reporting requirements of this paragraph if, on or before the

twentieth day of such month, the taxpayer paid at least ninety

percent (90%) of the liability for that fifteen-day period or at

Oklahoma Statutes - Title 68. Revenue and Taxation Page 617

least fifty percent (50%) of the taxpayer’s liability in the

immediate preceding calendar year for the same month as the month in

which the fifteen-day period occurs; and

2. For sales from the sixteenth day through the end of each

month, the tax shall be due and payable on the twentieth day of the

following month and remitted to the Tax Commission by electronic

funds transfer.

Every person required to remit the tax due pursuant to this

subsection shall file its monthly sales tax report in accordance

with the Tax Commission’s electronic data interchange program on the

twentieth day of the month following the month the sales occurred.

Taxes not paid on or before the due dates specified in this

subsection shall be delinquent from such dates.
Okla. Stat. tit. 68, § 68-24403 — OK Code / Title 68 / Section 68-24403
Renumbered as § 3151 of this title by Laws 1988, c. 162,
Status: in_force

§ 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan. 1,

1992.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1542
Okla. Stat. tit. 68, § 68-2385.30 — OK Code / Title 68 / Section 68-2385.30
Withholding by pass-through entities – Returns –
Status: in_force

Quarterly estimated payments – Written statement of taxable income

upon which withholding was based and tax withheld.

A. A pass-through entity shall withhold income tax at the

highest Oklahoma marginal individual income tax rate pursuant to

Section 2355 of this title from a nonresident member's share of the

Oklahoma share of income of the entity distributed to each

nonresident member and pay the withheld amount on or before the due

date of the pass-through entity's income tax return, including

extensions.

The pass-through entity shall file a return with each payment to

the Oklahoma Tax Commission. The return, in a form prescribed by

the Tax Commission, shall show the amount of the Oklahoma taxable

income upon which withholding was based and the amount withheld.

B. A pass-through entity may make quarterly estimated payments

for the taxable year and a pass-through entity shall be required to

make quarterly estimated payments for the taxable year if the amount

that must be withheld from all nonresident members for the taxable

year can reasonably be expected to exceed Five Hundred Dollars

($500.00). The estimated tax payments shall be paid in equal

quarterly installments on or before the last day of the month

succeeding the calendar quarter. The total of quarterly estimated

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1089

payments required to be paid by a pass-through entity for the

taxable year shall be the lesser of:

1. Seventy percent (70%) of the withholding tax that must be

withheld from all its nonresident members for the taxable year; or

2. One hundred percent (100%) of the withholding tax that had

to be withheld from all of its nonresident members for the preceding

taxable year.

The provisions of this subsection shall not relieve a pass-

through entity from the requirement of remitting amounts to the Tax

Commission that were actually withheld from distributions.

C. The amount of income tax withheld shall be allowed as a

credit to the recipient of the income as income taxes paid.

D. A pass-through entity shall not be required to withhold

income tax from an entity exempt pursuant to subsection C of Section

2359 of this title or Section 501(c)(3) of the Internal Revenue

Code, 26 U.S.C., Section 501(c)(3).

E. Every pass-through entity required pursuant to this section

to withhold income tax shall furnish to its nonresident member and

to the Tax Commission annually, but not later than the due date of

the pass-through entity's income tax return for the taxable year

including extensions, a written statement of the amount of taxable

income upon which withholding was based and of the tax withheld on

behalf of the nonresident member on forms prescribed by the Tax

Commission. The written statement shall show the name of member,

the applicable Social Security number or federal identification

number, the amount of the nonresident member's share of Oklahoma

taxable income upon which withholding was based, the amounts

withheld, and any such information as may be required by the Tax

Commission.

F. If the Tax Commission, in any case, has justifiable reason

to believe that the collection of the amount required in subsection

A of this section is in jeopardy, the Tax Commission may require a

pass-through entity to file a return and pay the withheld amounts at

any time.

G. All amounts received by the Tax Commission pursuant to the

provisions of Sections 2385.29 through 2385.31 of this title shall

be deposited as provided by Section 2385.16 of this title.

H. Notwithstanding the provisions of subsection A of this

section, a pass-through entity is not required to withhold tax for a

nonresident member if:

1. The Tax Commission has determined, by rule, that the income

of the nonresident member is not subject to withholding;

2. The nonresident member files an affidavit with the Tax

Commission, in the form and manner prescribed by the Tax Commission,

whereby such nonresident member agrees to be subject to the personal

jurisdiction of the Tax Commission in the courts of this state for

the purpose of determining and collecting any Oklahoma taxes,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1090

including estimated tax payments, together with any related interest

and penalties. The Tax Commission may revoke an exemption granted

by this subsection at any time it determines that the nonresident

member is not abiding by the terms of the affidavit; or

3. The entity is a publicly traded partnership, as defined by

Section 7704(b) of the Internal Revenue Code, which is treated as a

partnership for the purposes of the Internal Revenue Code, and which

has agreed to file an annual information return reporting the name,

address, taxpayer identification number and other information

requested by the Tax Commission of each unitholder with an income in

the state in excess of Five Hundred Dollars ($500.00).
Okla. Stat. tit. 68, § 68-2601 — OK Code / Title 68 / Section 68-2601
Power to levy and assess tax - Tax in lieu of other
Status: in_force

taxes.

The power is hereby vested in the governing body of any city or

town in the State of Oklahoma to levy and assess, by ordinance, an

annual tax upon the gross receipts from residential and commercial

sales of power, light, heat, gas, electricity or water in said city

or town in an amount not exceeding two percent (2%) of the gross

receipts from residential and commercial sales, which tax shall be

in lieu of any other franchise, license, occupation or excise tax,

levied by such city or town.
Okla. Stat. tit. 68, § 68-333 — OK Code / Title 68 / Section 68-333
Combination sales
Status: in_force

In all advertisements, offers for sale or sales involving two

(2) or more items, at least one of which items or cigarettes and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 189

tobacco products, at a combined price, and in all advertisements,

offers for sale, or sales, involving the giving of any gift or

concession of any kind whatsoever (whether it be coupons or

otherwise), the retailer's or wholesaler's combined selling price

shall not be below the "cost to the retailer" or the "cost to the

wholesaler", respectively, of the total of all articles, products,

commodities, gifts, and concessions included in such transactions.
Okla. Stat. tit. 68, § 68-703 — OK Code / Title 68 / Section 68-703
Imposition of tax
Status: in_force

(a) There is hereby levied and imposed an excise tax of five and

one-half ($0.055) cents per gallon on the use, within the meanings

of the word "use" as defined in this act, of all special fuels

delivered in this state into the fuel supply tank or tanks of motor

vehicles. The delivery or placing of special fuel into the fuel

supply tank or tanks of motor vehicles for use in whole or in part

for power to propel such vehicles on the public highways shall

constitute and is hereby declared to be the taxable incidence of

this levy.

(b) An excise tax of five and one-half ($0.055) cents per gallon

is also levied, in consideration of the use of the highways of this

State, on the use of all special fuels imported into Oklahoma in the

fuel supply tank or tanks of motor vehicles and used to propel said

motor vehicles for commercial purposes, public or private, or for

transportation for hire or compensation, on the public highways of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 338

this state, which tax shall be measured and determined by the number

of gallons of such imported special fuels actually used in Oklahoma.
Okla. Stat. tit. 68, § 68-3642.4 — OK Code / Title 68 / Section 68-3642.4
Incentive rebate program — Administration —
Status: in_force

Eligibility.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1414

A. There is hereby created an incentive rebate program for

eligible live audience episodic series filmed or produced in

Oklahoma who meet the requirements of this act.

B. The incentive rebate program shall be administered by the

Oklahoma Department of Commerce and the Oklahoma Tax Commission.

C. The Oklahoma Department of Commerce shall collect separate

metrics specific to the Bringing Sitcoms Home from Hollywood Pilot

Program and incentive rebate payments for evaluation of this pilot

program.

D. The Oklahoma Department of Commerce and the Oklahoma Tax

Commission may promulgate rules to implement the provisions of this

act.

E. To be eligible for an incentive rebate payment, a production

company shall:

1. Submit an application and documentation to the Oklahoma

Department of Commerce as required by the Department;

2. Have filed any Oklahoma tax returns and tax documents

required by law;

3. Provide evidence that all Oklahoma crew and local vendors

have been paid and that there are no pending liens against the

production company in this state;

4. Provide evidence of financing for production prior to the

commencement of principal photography;

5. Provide evidence of a certificate of general liability

insurance with a minimum coverage of One Million Dollars

($1,000,000.00) and a workers' compensation policy in compliance

with law, which shall include coverage of employer's liability; and

6. Provide evidence, as required by the Department, that the

projects pursuant to this act are completed.

F. A production company shall not be eligible to receive both

an incentive rebate payment pursuant to the provisions of this act

and an exemption from sales tax pursuant to the provisions of

paragraph 23 of Section 1357 of Title 68 of the Oklahoma Statutes.

If a production company has received the exemption from sales tax

and submits a claim for rebate pursuant to the provisions of this

act, the company shall be required to fully repay the amount of the

exemption to the Tax Commission. A claim for a rebate shall include

documentation from the Tax Commission that repayment has been made

as required in this subsection or shall include an affidavit from

the production company that the company has not received an

exemption from sales tax pursuant to the provisions of paragraph 23

of Section 1357 of Title 68 of the Oklahoma Statutes.

G. The Department of Commerce Oklahoma Film and Music Office

shall approve or disapprove all claims for rebate and shall notify

the Oklahoma Tax Commission. The Oklahoma Tax Commission shall,

upon notification of approval from the Oklahoma Film and Music

Office, issue payment for all approved claims from funds in the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1415

Bringing Sitcoms Home from Hollywood Pilot Program Revolving Fund

created in Section 6 of this act. The amount of claims prequalified

and approved by the Office for any single fiscal year shall not

exceed Ten Million Dollars ($10,000,000.00). If the amount of

approved claims exceeds the amount specified in this subsection in a

fiscal year, payments shall be made in the order in which the claims

are approved by the Oklahoma Film and Music Office. If an approved

claim is not paid in whole or in part, the unpaid claim or unpaid

portion may be paid upon the availability of funds.
Okla. Stat. tit. 68, § 68-1357.22 — OK Code / Title 68 / Section 68-1357.22
Oklahoma Broadband Rebate Revolving Fund
Status: in_force

A. There is hereby created in the State Treasury a revolving

fund for the Oklahoma Tax Commission to be designated the “Oklahoma

Broadband Rebate Revolving Fund”. The fund shall be a continuing

fund, not subject to fiscal year limitations, and shall consist of

all monies received by the Tax Commission which are specifically

required by law to be deposited in the fund. All monies accruing to

the credit of the fund are hereby appropriated and may be budgeted

and expended by the Commission for the purpose of paying rebate

claims pursuant to Section 1357.21 of Title 68 of the Oklahoma

Statutes. Expenditures from the fund shall be made upon warrants

issued by the State Treasurer against claims filed as prescribed by

law with the Director of the Office of Management and Enterprise

Services for approval and payment.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 526

B. The liability of this state to make rebate payments pursuant

to the program created in Section 1357.21 of Title 68 of the

Oklahoma Statutes shall be limited to the balance of the Oklahoma

Broadband Rebate Revolving Fund.
Okla. Stat. tit. 68, § 68-54004 — OK Code / Title 68 / Section 68-54004
Purchaser primarily engaged in computer services and
Status: in_force

data processing or research and development - Refund of state and

local sales taxes.

A. In order to administer the exemption for sales to a

qualified computer services, data processing or research and

development facility as provided by Section 54003 of this title,

there shall be made a sales tax refund for state and local sales

taxes paid by the account created by this section to such qualified

facility.

B. The Oklahoma Tax Commission shall transfer each month from

sales tax collected the amount which the Commission estimates to be

necessary to make the sales tax refund provided by this section to

an account designated as the Commission determines.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1550

C. Any refund shall be paid from the account prescribed by this

section at the time the claim for refund is approved by the Oklahoma

Tax Commission. The amount of the refund shall not exceed the total

state and local sales taxes paid together with accrued interest upon

such total. The amount of interest paid to a qualified computer

services, data processing or research and development facility upon

the principal amount of any refund made to such qualified facility

for purposes of administering the exemption provided by Section

54003 of this title, shall be determined according to the provisions

of this subsection. For any month during which the Oklahoma Tax

Commission transfers a sum to the account prescribed by subsection B

of this section, the Commission shall determine an interest rate by

determining the rate of interest paid for a three-month Treasury

Bill of the United States government as of the first working day of

the month in which the transfer is made. The interest rate so

determined shall accrue upon the amount transferred to the account.

In each subsequent month, the Commission shall determine the

interest rate paid for a three-month Treasury Bill of the United

States government as of the first working day of the month and such

interest rate shall accrue upon any amount transferred during the

month and upon the amounts previously transferred to the account

together with interest previously accrued upon such amounts.

D. For purposes of this section, state and local sales taxes

paid by a contractor or subcontractor for qualified purchases as

defined in Section 54002 of this title, purchased by that contractor

or subcontractor pursuant to a contract with a qualified computer

services, data processing or research and development facility

shall, upon proper showing, be refunded to such qualified facility.

E. The qualified computer services, data processing or research

and development facility shall file with the Oklahoma Tax Commission

the following documentation for any refund claimed:

1. Invoices indicating the amount of state and local sales tax

billed;

2. Affidavit of each vendor that state and local sales tax

billed has not been audited, rebated, or refunded to such qualified

facility but rather the sales tax charged has been collected by the

vendor and remitted to the Oklahoma Tax Commission; and

3. All additional documentation required to be submitted

pursuant to rules promulgated by the Oklahoma Tax Commission.

F. In the event that state and local sales tax was paid by a

contractor or subcontractor, the qualified computer services, data

processing or research and development facility shall file with the

Oklahoma Tax Commission all documentation required in subsection E

of this section but in lieu of the affidavit of each vendor the

qualified facility shall file, for any refund claimed, an affidavit

from the contractor or subcontractor stating that the sales tax

refund of the qualified facility is based on state and local sales

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1551

tax paid by the contractor or subcontractor on qualified purchases

as defined in Section 54002 of this title, purchased and that the

amount of state and local sales tax claimed was paid to the vendor

and no credit, refund, or rebate has been claimed by the contractor

or subcontractor.

G. Only sales of qualified purchases as defined in Section

54002 of this title, made after July 1, 1992, and before July 1,

2022, shall be eligible for the refund established by this section.

H. The qualified computer services, data processing or research

and development facility shall file, within thirty-six (36) months

of the date of the first purchase which is exempt from taxation

pursuant to the provisions of Section 54003 of this title, with the

Oklahoma Tax Commission a certification issued by the Oklahoma

Employment Security Commission in order to qualify for the refund

authorized by this section.

I. Notwithstanding the provisions of any state tax law, the

amount refunded under this section shall be assessed if the number

of new full-time-equivalent employees drops below the number

prescribed in Section 54002 of this title, at any time within

thirty-six (36) months of the date certification is issued by the

Oklahoma Employment Security Commission.

J. All claims for refunds provided pursuant to this section

shall be submitted to the Oklahoma Tax Commission by July 1, 2022.
Okla. Stat. tit. 68, § 68-2357.324 — OK Code / Title 68 / Section 68-2357.324
Employee credit
Status: in_force

A. For taxable years beginning on or after January 1, 2026, and

ending before January 1, 2031, a qualified employee shall be allowed

a credit against the tax imposed pursuant to Section 2355 of Title

68 of the Oklahoma Statutes up to Five Thousand Dollars ($5,000.00)

per year for a period of time not to exceed five (5) years.

B. The credit authorized by this section shall not be used to

reduce the tax liability of the taxpayer to less than zero (0).

C. Any credit claimed, but not used, may be carried over in

order to each of the five (5) subsequent taxable years.
Okla. Stat. tit. 68, § 68-1408 — OK Code / Title 68 / Section 68-1408
Revoking permits
Status: in_force

Whenever any retailer or vendor not maintaining a place of

business in this state, or both within and without this state, and

authorized to collect the tax herein levied, fails to comply with

any of the provisions of this article or any order, rules or

regulations of the Commission, prescribed and adopted under this

article, the Tax Commission may, upon notice and hearing as

hereinafter provided, by order revoke the use tax permit, if any,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 673

issued to such retailer or vendor, and if any such retailer or

vendor is a corporation authorized to do business in this state may,

after notice and hearing as herein provided, cancel said

corporation's license to do business in this state and shall issue a

new license only when such corporation has complied with the

obligations under this article. No order authorized in this section

shall be made until the retailer or vendor is given an opportunity

to be heard and to show cause why such order should not be made and

he shall be given ten (10) days' notice by mail of the time, place

and purpose of such hearing.
Okla. Stat. tit. 68, § 68-228 — OK Code / Title 68 / Section 68-228
Hearings on claims for refunds
Status: in_force

(a) If, upon the hearing as required by Section 227 of this

title, the Tax Commission finds that such tax was erroneously paid

through mistake of fact, or computation or misinterpretation of law,

it shall enter its written order allowing said claim for refund,

which refund may be paid to the taxpayer as provided by law, or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 107

credited against any taxes due or to become due by the taxpayer as

the case may be; otherwise, the Tax Commission shall deny said

claim. The taxpayer shall have the right of appeal to the Supreme

Court from a decision of the Commission denying said claim for

refund as provided in Section 225 of this article.

(b) Any order entered by the Tax Commission, disallowing a claim

for refund, shall become final within thirty-one (31) days from the

date it is entered, unless an appeal is prosecuted therefrom, in

which event said order shall not become final until the appeal shall

have been determined. In the event the Tax Commission allows said

claim for refund, it shall pay the claimant the amount of refund, so

allowed out of funds in the official depository clearing account of

the Tax Commission, derived from collections in said fund from the

same source from which the overpayment occurred; and an

appropriation of so much of said fund as is necessary to pay said

claims for refund erroneously paid or collected is hereby made;

provided, that in the case of refunds due hereunder to taxpayers who

are required to remit taxes to the Tax Commission on a monthly or

quarterly basis, the Commission may, in lieu of a refund of the tax

erroneously paid, credit the account of the taxpayer for such

amount.
Okla. Stat. tit. 68, § 68-3002 — OK Code / Title 68 / Section 68-3002
Financial statement - Estimated needs - Publication -
Status: in_force

Filing.

A. Notwithstanding the provisions of the School District Budget

Act, each board of county commissioners and the board of education

of each school district, shall, prior to October 1 of each year,

make, in writing, a financial statement, showing the true fiscal

condition of their respective political subdivisions as of the close

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1293

of the previous fiscal year ended June 30th, and shall make a

written itemized statement of estimated needs and probable income

from all sources including ad valorem tax for the current fiscal

year. Such financial statement shall be supported by schedules or

exhibits showing, by classes, the amount of all receipts and

disbursements, and shall be sworn to as being true and correct. The

statement of estimated needs shall be itemized so as to show, by

classes: first, the several amounts necessary for the current

expenses of the political subdivision and each officer and

department thereof as submitted in compliance with the provisions of

Section 3004 of this title; second, the amount required by law to be

provided for sinking fund purposes; third, the probable income that

will be received from all sources, including interest income and ad

valorem taxes; and shall be detailed in form and amount so as to

disclose the several items for which the excise board is authorized

and required, by this article, to approve estimates and make

appropriations.

B. Each municipality that does not prepare an annual audit

pursuant to Section 17-105 of Title 11 of the Oklahoma Statutes

shall make a financial statement as required by this section. Every

municipality shall adopt a budget, which shall contain estimates of

expenditures and revenues, including probable income by source, for

the budget year; provided, that all municipalities may use estimated

fund balances if final certified fund balances are not available.

The budget shall be in a format similar to the estimate of needs or,

at the municipality’s discretion, to Sections 17-207 and 17-212

through 17-214 of Title 11 of the Oklahoma Statutes. This section

shall not apply to any municipality that has opted to prepare a

budget pursuant to the Municipal Budget Act.

C. Each budget and each financial statement and estimate of

needs for each county, city, incorporated town, or school district,

as prepared in accordance with this section, shall be published in

one issue in some legally qualified newspaper published in such

political subdivision. If there be no such newspaper published in

such political subdivision, such statement and estimate shall be so

published in some legally qualified newspaper of general circulation

therein; and such publication shall be made, in each instance, by

the board or authority making the estimate.

D. The financial statements and estimates of all counties shall

be filed with the county excise board on or before August 17 of each

year; and the financial statements and budgets of all incorporated

towns shall be filed with the county excise board on or before

August 22 of each year; and the financial statements and budgets of

all cities shall be filed with the county excise board on or before

August 27 of each year; and the financial statements and estimates

of all school districts shall be filed with the county excise board

on or before October 1 of each year. Said financial statements and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1294

estimates shall have attached thereto an affidavit showing the

publication thereof as required herein, or they may be filed and the

said affidavit attached thereto at any time within five (5) days

after the filing thereof.
Okla. Stat. tit. 68, § 68-1403 — OK Code / Title 68 / Section 68-1403
Purpose of article - Apportionment of revenues
Status: in_force

A. It is hereby declared to be the purpose of Section 1401 et

seq. of this title to provide for the support of the functions of

the state and local government of Oklahoma; and for this purpose and

to this end, it is hereby expressly provided that the revenues

derived hereunder, subject to the apportionment provided in

subsection B of this section and to the apportionment requirements

for the Oklahoma Tax Commission and Office of Management and

Enterprise Services Joint Computer Enhancement Fund provided by

Section 265 of this title, are hereby apportioned as follows:

1. The following amounts shall be paid by the Tax Commission to

the State Treasurer and placed to the credit of the General Revenue

Fund to be paid out pursuant to direct appropriation by the

Legislature:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 655

Fiscal Year Amount

FY 2004 85.35%

FY 2005 85.14%

FY 2006 85.54%

FY 2007 85.04%

FY 2008 through FY 2022 83.61%

FY 2023 through FY 2027 83.36%

FY 2028 and each fiscal year thereafter 83.61%;

2. The following amounts shall be paid to the State Treasurer

to be placed to the credit of the Education Reform Revolving Fund of

the State Department of Education:

a. for FY 2020, ten and forty-six one-hundredths percent

(10.46%),

b. for FY 2021:

(1) for the month beginning July 1, 2020, through the

month ending August 31, 2020, ten and forty-six

one-hundredths percent (10.46%), and

(2) for the month beginning September 1, 2020,

through the month ending June 30, 2021, eleven

and ninety-six one-hundredths percent (11.96%),

and

c. for FY 2022 and each fiscal year thereafter, ten and

forty-six one-hundredths percent (10.46%);

3. The following amounts shall be paid to the State Treasurer

to be placed to the credit of the Teachers' Retirement System

Dedicated Revenue Revolving Fund:

Fiscal Year Amount

FY 2003 and FY 2004 3.54%

FY 2005 3.75%

FY 2006 4.0%

FY 2007 4.5%

FY 2008 through FY 2020 5.0%

FY 2021:

a. for the month beginning July

1, 2020, through the month

ending August 31, 2020 5.0%

b. for the month beginning

September 1, 2020, through

the month ending June 30,

2021 3.5%

FY 2022 5.0%

FY 2023 through FY 2027 5.25%

FY 2028 and each fiscal year thereafter 5.0%;

4. a. except as otherwise provided in subparagraph b of this

paragraph, for the fiscal year beginning July 1, 2015,

and for each fiscal year thereafter, eighty-seven one-

Oklahoma Statutes - Title 68. Revenue and Taxation Page 656

hundredths percent (0.87%) shall be paid to the State

Treasurer to be further apportioned as follows:

(1) thirty-six percent (36%) shall be placed to the

credit of the Oklahoma Tourism Promotion

Revolving Fund, but in no event shall such

apportionment exceed the total amount apportioned

pursuant to this division for the fiscal year

ending on June 30, 2015, and

(2) sixty-four percent (64%) shall be placed to the

credit of the Oklahoma Tourism Capital

Improvement Revolving Fund, but in no event shall

such apportionment exceed the total amount

apportioned pursuant to this division for the

fiscal year ending on June 30, 2015, and

b. any amounts which exceed the limitations of

subparagraph a of this paragraph shall be placed to

the credit of the General Revenue Fund; and

5. For the fiscal year beginning July 1, 2015, and for each

fiscal year thereafter, six one-hundredths percent (0.06%) shall be

placed to the credit of the Oklahoma Historical Society Capital

Improvement and Operations Revolving Fund, but in no event shall

such apportionment exceed the total amount apportioned pursuant to

this paragraph for the fiscal year ending on June 30, 2015. Any

amounts which exceed the limitations of this paragraph shall be

placed to the credit of the General Revenue Fund.

B. Prior to the apportionments otherwise provided in this

section, there shall be apportioned to the Education Reform

Revolving Fund of the State Department of Education the following

amounts in the following state fiscal years:

FY 2019 $19,600,000.00; and

FY 2020 and each year thereafter $20,500,000.00.