Okla. Stat. tit. 68, § 68-360.10 — OK Code / Title 68 / Section 68-360.10
Authority of Attorney General to request monthly
Status: in_force

reports of sales.

A. The Attorney General may, when considered necessary for the

enforcement of any provision of the Prevention of Youth Access to

Tobacco Act or the Master Settlement Agreement Complementary Act,

require each wholesaler or distributor of cigarettes and roll-your-

own tobacco products intended for sale in this state to file with

the Attorney General a report each month of its sales, by brand, to

retailers and wholesalers located in this state.

B. The wholesaler or distributor shall file a report on or

before the twentieth day of each month containing the following

information for the sales during the preceding calendar month of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 220

cigarettes and roll-your-own tobacco that are subject to this

section to each retailer and wholesaler:

1. The name and address of the outlet location of each retailer

and wholesaler to which the wholesaler or distributor delivered

cigarettes, including the city and zip code;

2. The monthly sales, including the number of individual

cigarettes, by brand name, made to other wholesalers and retailers

in packages bearing the excise tax stamp of the State of Oklahoma;

3. The monthly sales, including the number of individual

cigarettes, by brand name, made to tribal retailers of compacting

Tribes, in packages bearing the joint "unity rate" tax stamp

purchased from the Oklahoma Tax Commission;

4. The monthly sales, including the number of individual

cigarettes, by brand name, made to wholesalers, retailers or

consumers located outside the State of Oklahoma in packages not

bearing the excise tax stamp of the State of Oklahoma;

5. The monthly sales, including the number of individual

cigarettes, by brand name, made to noncompacting Tribes located in

the State of Oklahoma that bear the black tax-free stamp for sales

to tribal members of a noncompacting Tribe;

6. The monthly sales of individual containers of roll-your-own

tobacco products, by brand name and by weight, upon which the state

excise or "unity" tax has been paid, the monthly sales of individual

containers of roll-your-own tobacco products, by brand name and by

weight, made to wholesalers, retailers or consumers located outside

the State of Oklahoma on which the state excise tax has not been

paid and the monthly sales of individual containers of roll-your-own

tobacco products, by brand name and by weight, made to noncompacting

Tribes located within the State of Oklahoma; and

7. All monthly net sales reports shall include the invoice

number and invoice date of cigarettes sold, distributed or shipped

into Oklahoma. The reports shall also include the beginning and

ending inventory for each type of stamp held during the reporting

period.

C. Except as provided by this subsection, the wholesaler or

distributor shall file the report required by this section with the

Attorney General and the Oklahoma Tax Commission electronically.

D. Notwithstanding any other provision of law, the Attorney

General, in the sole discretion of the Attorney General, may use the

information contained in the reports received under this section and

reports received from the Oklahoma Tax Commission to investigate and

enforce the provisions of the Prevention of Youth Access to Tobacco

Act and the Master Settlement Agreement Complementary Act and to

demonstrate compliance of the state with the terms of the Master

Settlement Agreement and a subsequent settlement agreement entered

into with the participating manufacturers to the Master Settlement

Agreement in April 2013 and to provide information to any data

Oklahoma Statutes - Title 68. Revenue and Taxation Page 221

clearinghouse or similar entity established as required by the terms

of the Master Settlement Agreement and any subsequent settlement

agreement. The Attorney General may use the information to enforce

statutes related to contraband tobacco sales, including the seizure

of contraband products. For the purpose of enabling the Attorney

General to determine compliance with the provisions of this act and

statutes related to contraband tobacco sales, the Attorney General

shall have the right to inspect all premises and records related to

the manufacture, production, storage, transportation, sale or

exchange of cigarettes and tobacco products located in the State of

Oklahoma, located out of state and licensed by the Oklahoma Tax

Commission or which are on the Attorney General's Directory of

Tobacco Product Manufacturers. The Attorney General may condition

the release of the reports received by the Attorney General to only

those third parties who have signed and pledged to abide by the

terms of any confidentiality agreement that the Attorney General

deems necessary to preserve the confidentiality of the records.

E. The report required by this section, if timely filed, shall

be considered as meeting the reporting requirements of Section 360.6

of Title 68 of the Oklahoma Statutes.
Okla. Stat. tit. 68, § 68-1806 — OK Code / Title 68 / Section 68-1806
Proceeds of tax, how applied
Status: in_force

All monies, funds and revenues arising, collected, received, by

the Oklahoma Tax Commission pursuant to the provisions of this act

shall be applied as follows:

(a) Five percent (5%) of all monies collected under the

provisions of this act shall be paid to the State Treasurer and

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

Treasury.

(b) (1) Except as provided in paragraph (2) of this

subsection, the remaining ninety-five percent (95%) of

all monies collected under this act shall be

apportioned and paid each month by the Oklahoma Tax

Commission to the school treasurers or school

districts of the respective counties in which the

remitting cooperative owns and operates property, as

defined in Section 1804 of this title, according to

the proportion which the number of miles of electrical

distribution lines of such cooperative in such school

district bears to the total number of miles of such

lines owned and operated by such cooperative within

the state.

(2) Beginning July 1, 1991, if the amendment to Section

12a of Article X of the Constitution of the State of

Oklahoma contained in Enrolled House Joint Resolution

No. 1005 of the 1st Extraordinary Session of the 42nd

Oklahoma Legislature is approved by the people, the

remaining ninety-five percent (95%) of all monies

collected under this act shall be remitted to the

State Treasurer to be deposited in the Common School

Fund.
Okla. Stat. tit. 68, § 68-2357.321 — OK Code / Title 68 / Section 68-2357.321
Definitions
Status: in_force

As used in Sections 1 through 4 of this act:

1. "Compensation" means payments in the form of contract labor

for which the payor is required to provide a Form 1099 to the person

paid wages subject to withholding tax paid to a part-time employee,

full-time employee, salary, or other remuneration. Compensation

shall not include employer-provided retirement, medical or health

care benefits, reimbursement for travel, meals, lodging, or any

other expense;

2. "Institution" means an institution within The Oklahoma State

System of Higher Education, any other public or private college, or

university that is accredited by a national accrediting body;

3. "Qualified employer" means a sole proprietor, general

partnership, limited partnership, limited liability company,

corporation, other legally recognized business entity, or public

entity whose principal business activity involves civil engineering

services as described by Industry No. 541330 of the North American

Industry Classification System (NAICS), latest revision;

4. "Qualified employee" means any person, regardless of the

date of hire, employed in this state, contracting in this state with

a qualified employer on or after January 1, 2026, who was not

employed as a civil engineer in this state immediately preceding

employment or contracting with a qualified employer, and who has

been either:

a. awarded an undergraduate or graduate degree from a

qualified program by an institution, or

b. licensed as a Professional Engineer by the State Board

of Licensure for Professional Engineers and Land

Surveyors pursuant to Section 475.15 of Title 59 of

the Oklahoma Statutes.

Provided, the definition shall not be interpreted to exclude any

person who was employed in the civil engineering sector, but not as

a full-time engineer, prior to being awarded an undergraduate or

graduate degree from a qualified program by an institution or any

person who has been awarded an undergraduate or graduate degree from

Oklahoma Statutes - Title 68. Revenue and Taxation Page 896

a qualified program by an institution and is employed by a

professional staffing company and assigned to work in the civil

engineering sector in this state.

Beginning on or after January 1, 2026, the definition shall also

not be interpreted to exclude any person who:

(1) previously qualified and established the credit

against the tax imposed pursuant to Section 2355

of Title 68 of the Oklahoma Statutes and becomes

employed by a different qualified employer, or

(2) establishes the credit against the tax imposed

pursuant to Section 2355 of Title 68 of the

Oklahoma Statutes for the first time and becomes

employed by a different qualified employer in

subsequent years, provided a person in either

case has not claimed the credit for the lifetime

maximum of five (5) years;

5. "Qualified program" means a program at an institution that

includes a graduate or undergraduate program that has been

accredited by the Engineering Accreditation Commission of the

Accreditation Board for Engineering and Technology (ABET) and that

awards an undergraduate or graduate degree. Both the undergraduate

and graduate programs of the same discipline of engineering at an

institution shall be part of the qualified program if either program

is ABET accredited; and

6. "Tuition" means the average annual amount paid by a

qualified employee for enrollment and instruction in a qualified

program. Tuition shall not include the cost of books, fees or room

and board.
Okla. Stat. tit. 68, § 68-1001.2 — OK Code / Title 68 / Section 68-1001.2
Definitions
Status: in_force

As used in this article:

(a) "Gas" means natural gas or casinghead gas. The terms gas,

natural gas or casinghead gas when used in this article are

interchangeable, and any provisions relating to any one of these

shall relate to all gas, natural gas or casinghead gas;

(b) "Lease" means a spaced unit, a separately metered formation

within the spaced unit, or each tract within a Corporation

Oklahoma Statutes - Title 68. Revenue and Taxation Page 364

Commission approved unitization, or a lease which, for tax reporting

purposes, has been assigned a production unit number;

(c) "Oil" means petroleum or other crude or mineral oil; and

(d) "Person" means any natural person, firm, partnership, joint

venture, association, limited liability company, corporation,

estate, trust, and any other group or combination acting as a unit.
Okla. Stat. tit. 68, § 68-24323.1 — OK Code / Title 68 / Section 68-24323.1
Renumbered as §3119 of this title by Laws 1988, c
Status: in_force

162, § 161, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 1, eff. Jan.

1, 1992.
Okla. Stat. tit. 68, § 68-3406 — OK Code / Title 68 / Section 68-3406
Filing fee
Status: in_force

A. The fee for filing and indexing each notice of lien or

certificate of notice affecting the lien, including a lien on real

estate; a lien on tangible and intangible personal property; a

certificate of discharge or subordination; and all other notices,

including a certificate of release or nonattachment, shall be the

uniform filing fee provided by paragraphs (1) and (2) of subsection

(a) of Section 1-9-525 of Title 12A of the Oklahoma Statutes if the

notice of lien is first filed on or after July 1, 2001.

B. For notices of lien first filed prior to July 1, 2001, the

filing fee paid at the time of filing shall be payment for the

subsequent filing of all other certificates or notices affecting

said tax lien.

C. The filing officer shall bill the District Director of the

Internal Revenue Service or other appropriate federal officials on a

monthly basis for fees for documents filed by the Internal Revenue

Service.
Okla. Stat. tit. 68, § 68-500.15 — OK Code / Title 68 / Section 68-500.15
Perfecting exemptions for suppliers, tank wagon
Status: in_force

importers and importers of dyed diesel fuel.

All exemptions under Section 10 of this act, not expressly

covered under Sections 11 through 14 of this act, shall be perfected

as follows:

1. A supplier or tank wagon importer shall take a deduction

against motor fuel shown on the monthly report for those gallons of

diesel fuel removed from a terminal or refinery destined for

delivery to a point in this state as shown on the shipping papers,

as to which dye was added in a manner which conforms to federal

requirements established by the Internal Revenue Code and

regulations issued thereunder; or

2. An importer shall take a deduction against tax owed under

Section 18 of this act for dyed diesel fuel if such diesel fuel

would have met the requirements of paragraph 1 of this section.
Okla. Stat. tit. 68, § 68-3805 — OK Code / Title 68 / Section 68-3805
Establishments receiving incentive payments not eligible to receive certain tax credits
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 37to receive certain tax credits and exemptions.

The prohibition set forth in Section 3607 of Title 68 of the

Oklahoma Statutes shall apply to an establishment which receives

incentive payments pursuant to the Former Military Facility

Development Act.
Okla. Stat. tit. 68, § 68-1105 — OK Code / Title 68 / Section 68-1105
Failure to make report
Status: in_force

If any person, firm, association or corporation shall fail to

make the report of the production, purchase, or production without

sale, as the case may be, of petroleum oil, natural gas and/or

casinghead gas, or the computation of the excise tax hereby levied,

within the time prescribed by law for such report, it shall be the

duty of the Tax Commission to examine the books, records and files

of such persons, firm, association or corporation to ascertain the

amount of oil produced and/or sold, and compute and assess the tax

and penalty accrued thereon, as provided herein. Any such person,

firm, association or corporation who shall fail to file any sworn

statement or report required by the provisions of this article in

the manner and in the time prescribed, or who shall fail to provide

any information regarding the production from any lease in this

state within thirty (30) days of the mailing by the Commission of a

demand for such information, shall be liable for the assessment by

the Commission and the payment thereto of the penalties as

prescribed in Section 1010 of this title.
Okla. Stat. tit. 68, § 68-216.2 — OK Code / Title 68 / Section 68-216.2
Tax amnesty program
Status: in_force

For the purpose of encouraging the voluntary disclosure and

payment of taxes owed to this state, the Oklahoma Tax Commission is

hereby authorized and directed to establish a tax amnesty program

during which penalties and one-half interest due on delinquent taxes

assessed by the Tax Commission and imposed pursuant to the

provisions of Title 68 of the Oklahoma Statutes and the Oklahoma

Alcoholic Beverage Control Act shall be waived, except as provided

herein. The amnesty program shall not include any penalties or

interest that may have been assessed pursuant to the Ad Valorem Tax

Code or the Motor Vehicle Excise Tax Code or penalties or interest

assessed by an agency other than the Tax Commission. A taxpayer

shall be entitled to a waiver of penalty and one-half interest due

on taxes which are delinquent prior to August 15, 2002, if the

taxpayer voluntarily files delinquent tax returns and pays the taxes

and remaining interest due during the amnesty period. The amnesty

period shall extend from August 15, 2002, through November 15, 2002.

The waiver of penalties and one-half interest shall apply to:

1. The under-reporting of tax liabilities;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 82

2. The nonpayment of taxes; and

3. The nonreporting of tax liabilities.

The Tax Commission shall promulgate rules detailing the terms

and other conditions of this program.

The Tax Commission is authorized to expend necessary available

funds to publicly advertise this program and shall be exempt from

the provisions of Section 85.7 of Title 74 for the purpose of

implementing this section.
Okla. Stat. tit. 68, § 68-2357.401 — OK Code / Title 68 / Section 68-2357.401
Electronic fund transfer tax credit
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 898

A. Except as otherwise provided by subsections B and C of this

section, for taxable years beginning January 1, 2009, and ending

before January 1, 2017, there shall be allowed a credit against the

tax imposed pursuant to Section 2355 of this title in the amount of

all electronic funds transfers fees paid by an individual or entity

pursuant to Section 2-503.1j of Title 63 of the Oklahoma Statutes.

B. For any fees paid by a person or entity for the taxable year

beginning January 1, 2009, the credit otherwise authorized by this

section shall not be claimed for an individual prior to January 1,

2011. Subject to the requirements of this subsection, an individual

taxpayer shall be able to claim the credit authorized by this

section for all fees paid during the tax year ending December 31,

2009, and the tax year ending December 31, 2010, on the income tax

return filed for the tax year ending December 31, 2010.

C. For any fees paid by an entity other than a natural person

for the taxable year beginning January 1, 2009, the credit otherwise

authorized by this section shall not be claimed on an income tax

return prior to January 1, 2011. Subject to the requirements of

this subsection, an entity other than a natural person shall be able

to claim the credit authorized by this section for all fees paid

during a tax year ending at any time during calendar year 2009 and

for all fees paid during calendar year 2010 on the income tax return

filed for the tax year ending not later than December 31, 2010.

D. The credit authorized by this section shall not be used to

reduce the income tax liability of the taxpayer to less than zero

(0).

E. To the extent not used in any taxable year, the credit

authorized by this section may be carried over, in order, to each of

the five (5) succeeding taxable years.
Okla. Stat. tit. 68, § 68-509.2 — OK Code / Title 68 / Section 68-509.2
Exempt diesel fuel - Fuel used for purposes other than to operate motor vehicles on
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 9to operate motor vehicles on public highways.

A. The tax levied by this act shall not apply to diesel fuel

used exclusively for purposes other than to operate motor vehicles

on the public highways of this state. Provided that distributors

shall execute on monthly reports, certification that the purchasers

represented to the seller that the diesel fuel was to be used

exclusively for purposes other than to operate motor vehicles on the

public highways.

B. Every person, firm, corporation, partnership or limited

liability company claiming an exemption under the provisions of this

section shall first obtain an annual fuel tax exemption permit from

Oklahoma Statutes - Title 68. Revenue and Taxation Page 321

the Tax Commission by filing a verified application on a form

furnished by the Tax Commission. Each fuel tax exemption permit

holder must furnish a copy of the permit to a supplier prior to

purchasing diesel fuel. Suppliers selling to permit holders must

maintain a record of each sale to a permit holder and shall report

the total gallons of tax-exempt diesel fuel sold during a calendar

month on a form prescribed by the Tax Commission. Said form will

include a listing of the total gallons sold to each permit holder,

by name and exemption number. The supplier shall furnish each

permit holder a copy of its tax-exempt sales for the calendar month.

The supplier and permit holder shall maintain these records for

three (3) years. Any supplier selling diesel fuel that is exempt

under this section may deduct the number of gallons of such diesel

fuel from the total gallonage required to be reported to the Tax

Commission only if prescribed forms listing the tax-exempt sales are

attached to the report required by the Tax Commission. A supplier

shall not deduct from the required report the sale of diesel fuel

made by any other distributor. All fuel tax exemption permits

expire on the 30th day of June of each year and no exemption shall

be allowed to the holder thereof after September 30 of that year.

Provided, the Tax Commission may exempt such purchases after

September 30 upon verifying that the fuel was actually used in

accordance with the exemption provisions of this section.

C. Any person who places diesel fuel that was purchased under

an exemption permit authorized by this section into the fuel tank of

a motor vehicle for use in operating the motor vehicle on the public

highways shall be liable for the taxes levied under Sections 502.1,

502.3, 502.5, 502.7 and 522.1 of this title. Further, the permit

issued shall be subject to cancellation and if so canceled shall not

be reissued for a period of at least one (1) year. Such person

shall also be guilty of a misdemeanor and shall, upon conviction, be

fined not more than One Thousand Dollars ($1,000.00), or shall be

sentenced to a term of not more than one (1) year in the county

jail.

The Tax Commission shall conduct field audits and investigate

the uses for which the holder of an off-road exemption permit has

made of diesel fuel acquired by him under his permit. Upon a

determination that the permit holder has improperly used the diesel

fuel purchased, the Tax Commission shall issue a proposed assessment

against the permit holder, in accordance with Section 221 of this

title, for the diesel fuel taxes levied under this article.

D. The tax levied by Sections 502.1 and 522.1 of this title

shall not apply to diesel fuel used exclusively in road machinery

and equipment built for and being used on location in the

construction, repair or maintenance of public highways, roads and

bridges by road contractors and by counties, cities and towns of

this state. However, this exemption shall not apply to automobiles

Oklahoma Statutes - Title 68. Revenue and Taxation Page 322

or truck-type vehicles such as dump trucks, flatbed trucks and

pickup trucks.

E. The tax levied by Sections 502.1 and 522.1 of this title

shall not apply to diesel fuel used exclusively in passenger motor

buses or coaches, having a seating capacity of ten or more persons,

when such fuel is purchased by and used exclusively in public

transit systems operated by any county, city or town of this state,

or by any public trust created under the laws of this state of which

a county, city or town of this state is the sole beneficiary

thereof. Provided this exemption shall be allowed only when

supported by a certificate executed by such city or trust on forms

prescribed and furnished by the Oklahoma Tax Commission.

F. The tax levied by Sections 502.1 and 522.1 of this title

shall not apply to diesel fuel purchased by any county, city or town

for use as fuel to propel motor vehicles on the public roads and

highways of this state, when said vehicles are being operated for

the sole benefit of said county, city or town; provided that if the

diesel fuel is placed directly into the fuel supply tank or tanks of

the motor vehicle by the supplier, certification must be made on the

invoice and all such sales must be reported by the supplier on forms

furnished by the Oklahoma Tax Commission.
Okla. Stat. tit. 68, § 68-2930 — OK Code / Title 68 / Section 68-2930
Property seized and sold by attachment, execution of chattel mortgage - Payment of
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 32chattel mortgage - Payment of taxes.

If the property of any taxpayer be so seized by attachment,

execution or chattel mortgage as to take all property liable to

execution, without leaving a sufficient amount of property exempt

from levy and sale to pay the taxes, then the tax on the property of

such taxpayer shall at once fall due and be paid from the proceeds

of the sale of the attached property in preference to all other

claims against it, and it is hereby made the duty of constables,

deputy sheriffs, sheriffs or other officers selling property under

attachment, to ascertain the amount of taxes due on any property so

sold and retain from the proceeds of such sale all taxes due, and to

pay the same to the county treasurer.
Okla. Stat. tit. 68, § 68-55002 — OK Code / Title 68 / Section 68-55002
Provision of electronic database containing local taxing jurisdiction information –
Status: in_force

A. This act may be cited as the "Facilitating Business Rapid Response to State Declared Disasters Actjurisdiction information – Liability of home service provider –

Presumption.

A. The Oklahoma Tax Commission may provide an electronic

database to a home service provider or, if the Tax Commission does

not provide such an electronic database to home service providers,

then the designated database provider may provide an electronic

database to a home service provider. Such database shall provide

the appropriate local taxing jurisdiction for each street address in

the state, including to the extent practicable, any multiple postal

street addresses applicable to one street location, and shall be in

the format required by Section 119 of the federal “Mobile

Telecommunications Sourcing Act”.

B. The Tax Commission or designated database provider shall

provide notice of the availability of the then current electronic

database, and any subsequent revisions thereof, by publication in

the manner normally employed for the publication of informational

tax, charge, or fee notices to taxpayers in the state.

C. A home service provider using the data contained in an

electronic database described in subsection A of this section shall

be held harmless from any tax, charge, or fee liability that

otherwise would be due solely as a result of any error or omission

in such database provided by the Tax Commission or designated

database provider. The home service provider shall reflect changes

made to such database during a calendar quarter not later than

thirty (30) days after the end of such calendar quarter.

D. If an electronic database is not provided under subsection A

of this section, a home service provider shall be held harmless from

any tax, charge, or fee liability in this state that otherwise would

be due solely as a result of an assignment of a street address to an

incorrect taxing jurisdiction if, subject to Section 2 of this act,

the home service provider employs an enhanced zip code to assign

each street address to a specific taxing jurisdiction for each level

of taxing jurisdiction and exercises due diligence at each level of

taxing jurisdiction to ensure that each such street address is

assigned to the correct taxing jurisdiction. If an enhanced zip

code overlaps boundaries of taxing jurisdictions of the same level,

the home service provider must designate one specific jurisdiction

within such enhanced zip code for use in taxing the activity for

such enhanced zip code for each level of taxing jurisdiction. Any

enhanced zip code assignment changed in accordance with Section 2 of

this act is deemed to be in compliance with this section.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1559

E. For purposes of this section, there is a rebuttable

presumption that a home service provider has exercised due diligence

if such home service provider demonstrates that it has:

1. Expended reasonable resources to implement and maintain an

appropriately detailed electronic database of street address

assignments to taxing jurisdictions;

2. Implemented and maintained reasonable internal controls to

promptly correct misassignments of street addresses to taxing

jurisdictions; and

3. Used all reasonably obtainable and usable data pertaining to

municipal annexation, incorporations, reorganizations and any other

changes in jurisdictional boundaries that materially affect the

accuracy of such database.

F. Subsection D of this section applies to a home service

provider that is in compliance with the requirements of that

subsection until the later of:

1. Eighteen (18) months after the nationwide standard numeric

code described in federal “Mobile Telecommunications Sourcing Act”

has been approved by the Federation of Tax Administrators and the

Multistate Tax Commission; or

2. Six (6) months after the Tax Commission or a designated

database provider in this state provides such database as prescribed

in subsection A of this section.
Okla. Stat. tit. 68, § 68-1354.21 — OK Code / Title 68 / Section 68-1354.21
Simplified Sales and Use Tax Administration Act -
Status: in_force

Effect of Agreement.

The Agreement authorized by this act is an accord among

individual cooperating sovereigns in furtherance of their

governmental functions. The Agreement provides a mechanism among

the member states to establish and maintain a cooperative,

simplified system for the application and administration of sales

and use taxes under the duly adopted law of each member state.
Okla. Stat. tit. 68, § 68-4002 — OK Code / Title 68 / Section 68-4002
Oklahoma Health Care Authority – Authority to assess
Status: in_force

Home-Based Support Quality Assurance Assessment.

A. As used in this section:

1. “Contracted community-based service provider” means any

entity contracted by the Department of Human Services, the Oklahoma

Health Care Authority, or any private person providing the support,

or promotion of support, for a service recipient to remain in such

person’s home or residence and shall include, but not be limited to,

entities and persons providing personal support, professional

support, case management, and transportation services, and services

through a Home and Community-Based Waiver or Advantage Waiver as

defined by Title XIX of the Social Security Act, Section 1915 (C);

and

2. "Gross receipts" means annual gross revenues received in

compensation for services rendered by a contracted community-based

service provider, but shall not include any amount received by a

contracted service provider as a charitable contribution or any

amount received by a provider as compensation for services rendered

that is not reimbursed;

B. 1. For the purpose of providing quality care enhancements,

the Oklahoma Health Care Authority is authorized to and shall

annually assess a Home-Based Support Quality Assurance Assessment

pursuant to this section on each contracted community-based service

provider in this state. Quality of care enhancements include, but

are not limited to, the purposes specified in Section 1 of this act.

2. The Home-Based Support Quality Assurance Assessment assessed

on a contracted community-based service provider shall be calculated

by the Oklahoma Health Care Authority by multiplying the total

annual Medicaid gross receipts for the provision of all services

rendered in this state by the contracted community-based service

provider by five and one-half percent (5.5%), regardless of whether

such Medicaid receipts are based on days or hours of service, the

cost of services rendered, or some other basis. The Home-Based

Support Quality Assurance Assessment shall not be increased unless

specifically authorized by the Legislature.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1475
Okla. Stat. tit. 68, § 68-2706 — OK Code / Title 68 / Section 68-2706
Provisions as cumulative
Status: in_force

The provisions of this act shall be cumulative to any existing

authority of incorporated cities and towns to raise revenue, and

shall not repeal any existing law on the subject excepting those

sections enumerated herein.
Okla. Stat. tit. 68, § 68-2842 — OK Code / Title 68 / Section 68-2842
Assessment roll - Form - Content - Adjustments - Annual
Status: in_force

report.

A. Each county assessor in the state shall annually prepare an

assessment roll, which shall be in such form as may be prescribed by

the Oklahoma Tax Commission and shall contain the following:

1. A list of all lands in the county in numerical order

beginning with the lowest numbered section, in the lowest numbered

township in the lowest numbered range in the county, and ending in

the highest numbered section, township and range, with the number of

acres in each tract, and the numbers of the school districts in

which such lands are located, and the name and address of the owner

in each instance excepting unplatted lands located inside a city or

town;

2. A list of town lots in each town or city in like numerical

order and the unplatted lands located inside each city and town, in

numerical order beginning with the lowest numbered section in the

lowest numbered township and range with the number of acres in each

tract, and the number of the school district in which such lots or

tracts are located, and the name and address of the owner in each

instance;

3. A list in alphabetical order of all persons and bodies

corporate in whose names any personal property has been assessed,

the address of each such taxpayer, the number of the school district

in which such property is taxable, with a sufficient number of

columns opposite each name to enter the value, and where practicable

the number of the several classes of property assessed to each

property owner;

4. The value fixed by the county assessor of all property; and

additional columns to show the equalized value as fixed by the State

Board of Equalization. In listing real estate the value of land and

improvements shall be shown separately in each instance; provided,

in those counties in this state which have approved an exemption of

household goods of the heads of families and livestock employed in

support of the family from ad valorem taxation pursuant to the

provisions of subsection (b) of Section 6 of Article X of the

Oklahoma Constitution, the county assessor may, in preparation of

the assessment roll, combine the value of land and improvements

thereon; and

5. Such other information as may be required by the Tax

Commission. Each property in which there is a homestead interest

shall be entered on a separate line, and the assessment roll shall

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1177

show the total assessed valuation of each homestead, the amount of

exemption allowed, and the assessed valuation less the exemption.

B. The assessment roll shall be available electronically to the

county board of equalization while the board is in session, in order

that the board may correct and adjust the taxable value of the

property of the county. If there should be any lawful adjustments

necessary, the board shall inform the county assessor in writing on

a form prescribed by the Oklahoma Tax Commission.

C. Prior to November 1 each year, the county assessor shall

submit on a form prepared by the Tax Commission a report to the Tax

Commission which states the net assessed valuation and millage levy

of each political subdivision or taxing authority of the state that

is authorized to levy a property tax regardless of whether such

property tax is actually levied.
Okla. Stat. tit. 68, § 68-2358.1A — OK Code / Title 68 / Section 68-2358.1A
Death of member of armed forces in combat zone -
Status: in_force

Exemptions - refunds.

A. Any payment made by the United States Department of Defense

as a result of the death of a member of the Armed Forces of the

United States who has been killed in action in a United States

Department of Defense designated combat zone shall be exempt from

Oklahoma income tax during the taxable year in which the individual

is declared deceased by the Armed Forces. Any income earned by the

spouse of a member of the Armed Forces of the United States who has

been killed in action in a United States Department of Defense

designated combat zone shall be exempt from Oklahoma income tax

during the taxable year in which the individual is declared deceased

by the Armed Forces.

B. In any case where income tax has been paid upon any income

exempt pursuant to subsection A of this section, the tax monies

shall be refunded to the person or personal representative of the

person. The refund shall be made by the Oklahoma Tax Commission out

of the Oklahoma Income Tax Adjustment Fund, and so much of such fund

as is necessary for such purpose is hereby appropriated. The

provisions of this section shall be liberally construed to

accomplish its purpose and the statute of limitations with respect

to refunds of income taxes shall not apply to taxpayers covered by

this section.
Okla. Stat. tit. 68, § 68-3651 — OK Code / Title 68 / Section 68-3651
Short title
Status: in_force

This act shall be known and may be cited as the “Oklahoma

Quality Jobs Incentive Leverage Act”.
Okla. Stat. tit. 68, § 68-500.4B — OK Code / Title 68 / Section 68-500.4B
Additional tax imposed on diesel fuel and gasoline -
Status: in_force

Apportionment of revenue.

A. For the purpose of providing revenue for the support of the

functions of state government, in addition to the tax imposed by

Section 500.4 of Title 68 of the Oklahoma Statutes, there is hereby

imposed a tax of:

1. Six cents ($0.06) per gallon on all diesel fuel used or

consumed in this state; and

2. Three cents ($0.03) per gallon on all gasoline used or

consumed in this state.

B. All remaining revenue from the tax imposed by subsection A

of this section and penalties and interest thereon collected by the

Oklahoma Tax Commission, after the requirements of Section 500.63 of

Title 68 of the Oklahoma Statutes have been fulfilled, shall be

deposited as follows:

1. Prior to July 1, 2019, the remaining revenue shall be

apportioned by the Oklahoma Tax Commission and transmitted to the

State Treasurer who shall deposit such revenue in the General

Revenue Fund; and

2. Beginning July 1, 2019, the remaining revenue shall be

apportioned by the Oklahoma Tax Commission and transmitted to the

State Treasurer who shall deposit such revenue in the Rebuilding

Oklahoma Access and Driver Safety Fund created in Section 1521 of

Title 69 of the Oklahoma Statutes.
Okla. Stat. tit. 68, § 68-2375 — OK Code / Title 68 / Section 68-2375
Payment of tax - Delinquency - Penalties and interest -
Status: in_force

Assessment or refund during IRS extension.

A. On the original due date of the return, not including any

extensions, the taxpayer shall remit therewith to the Tax Commission

the amount of tax due under the applicable provisions of Section

2351 et seq. of this title. Failure to pay such tax on or before

the date the return is due, not including any extensions, shall

cause the tax to become delinquent. If the return is filed

electronically, the amount of the tax due pursuant to the provisions

of this article shall be due on or before the twentieth day of April

following the close of the taxable year regardless of when the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1068

return is electronically filed. The tax shall be deemed delinquent

if unpaid after the twentieth day of April if the return is

electronically filed. Provided, if the Internal Revenue Code

provides for a later due date for returns of individuals, the Tax

Commission shall accept payments made with returns filed by

individuals by such date and such payments shall be considered as

timely paid.

B. If any tax due under Section 2351 et seq. of this title,

except a deficiency determined under Section 221 of this title, is

not paid on or before the date such tax becomes delinquent, a

penalty of five percent (5%) of the total amount of the tax due

shall be added thereto, collected and paid. However, the Tax

Commission shall not collect the penalty assessed if the taxpayer

remits the tax and interest within sixty (60) days of the mailing of

a proposed assessment or voluntarily pays the tax upon the filing of

an amended return.

C. If any part of deficiency, arbitrary or jeopardy assessment

made by the Tax Commission is based upon or occasioned by the

refusal of any taxpayer to file with the Tax Commission any return

as required by Section 2351 et seq. of this title, within ten (10)

days after a written demand for such report or return has been

served upon any taxpayer by the Tax Commission by registered letter

with a return receipt attached, the Tax Commission may assess and

collect, as a penalty, twenty-five percent (25%) of the amount of

the assessment. In the exercise of the authority granted by

subsection C of Section 223 and Section 224 of this title, the Tax

Commission shall assess the tax as an estimated tax on the basis of

its own determination of the Oklahoma taxable income of the

taxpayer, to be adjusted if and when Oklahoma taxable income is

ascertained under the provisions of Section 2351 et seq. of this

title.

D. If any part of any deficiency was due to negligence or

intentional disregard, without the intent to defraud, then ten

percent (10%) of the total amount of the deficiency, in addition to

such deficiency, including interest as authorized by law, shall be

added, collected and paid.

E. If any part of any deficiency was due to fraud with intent

to evade tax, then fifty percent (50%) of the total amount of the

deficiency, in addition to such deficiency, including interest as

herein provided, shall be added, collected and paid.

F. The provisions in this section for penalties shall supersede

all other provisions for penalties on income taxes. The provisions

in this section for penalties shall supersede the provisions in the

Uniform Tax Procedure Code, Section 201 et seq. of this title, only

to the extent of conflict between such provisions and the penalty

provisions in this section.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1069

G. All taxes, penalties and interest levied under Section 2351

et seq. of this title must be paid to the Tax Commission at Oklahoma

City, in the form or remittance required by and payable to it.

H. 1. The period of time prescribed in Section 223 of this

title, in which the procedures for the assessment of income tax may

be commenced by the Tax Commission, shall be tolled and extended

until the amount of taxable income for any year of a taxpayer under

the Internal Revenue Code has been finally determined under

applicable federal law and for the additional period of time

hereinafter provided in this subsection.

2. If, in such final determination, the amount of taxable

income for any year of a taxpayer under the Internal Revenue Code is

changed or corrected from the amounts included in the federal return

of the taxpayer for such year and such change or correction affects

the Oklahoma taxable income of the taxpayer for such year, the

taxpayer, within one (1) year after such final determination of the

corrected taxable income, shall file an amended return under Section

2351 et seq. of this title reporting the corrected Oklahoma taxable

income, and the Tax Commission shall make assessment or refund

within two (2) years from the date the return required by this

paragraph is filed and not thereafter, unless a waiver is agreed to

and signed by the Tax Commission and the taxpayer.

3. In the event of failure by a taxpayer to comply with the

provisions of paragraph 2 of this subsection, the statute of

limitations shall be tolled for a period of time equal to the time

between the date the amended return under this subsection is

required until such return is actually furnished.

4. In administering the provisions of this subsection, the Tax

Commission shall have the authority to audit each and every item of

income, deduction, credit or any other matter related to the return

where such items or matters relate to allocation or apportionment

between the State of Oklahoma and some other state or the federal

government even if such items or matters were not affected by

revisions made in such final determination. Where such items or

matters do not relate to allocation or apportionment between the

State of Oklahoma and some other state or the federal government,

the Tax Commission shall be bound by the revisions made in such

final determination.

5. The provisions of this subsection shall be effective on

September 1, 1993, and except in the case of tax years which are the

subject of closing, settlement or resolution agreements entered into

by taxpayers and the Tax Commission, keep open all tax years

beginning after June 30, 1988, and all tax years beginning on or

before June 30, 1988, for which extensions of the statute of

limitations have been executed by the taxpayer, but only to the

extent such extensions remain open on the date of enactment hereof.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1070
Okla. Stat. tit. 68, § 68-6512 — OK Code / Title 68 / Section 68-6512
Driving on Road Infrastructure with Vehicles of
Status: in_force

Electricity (DRIVE) Revolving Fund.

There is hereby created in the State Treasury a revolving fund

for the Oklahoma Department of Transportation to be designated the

"Driving on Road Infrastructure with Vehicles of Electricity (DRIVE)

Revolving Fund". The fund shall be a continuing fund, not subject

to fiscal year limitations, and shall consist of all monies received

by the Department of Transportation from sources provided by law.

All monies accruing to the credit of said fund are hereby

appropriated and may be budgeted and expended by the Department of

Transportation for the purpose of administering the provisions of

this act. Expenditures from said 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.
Okla. Stat. tit. 68, § 68-4204 — OK Code / Title 68 / Section 68-4204
Quality Investment Contracts – Application – Requirements
Status: in_force

– Qualifications.

A. An establishment which meets the qualifications specified in

the Oklahoma Quality Investment Act may apply to enter into a

Quality Investment Contract to receive annual incentive payments

over a five-year period from the Oklahoma Tax Commission pursuant to

the provisions of the Oklahoma Quality Investment Act in an amount

which shall not exceed ten percent (10%) of the amount of actual

capital costs invested pursuant to a Quality Investment Contract

developed and executed pursuant to this act. The Committee shall

review economic impacts, historical contributions trends and tax

revenue projections analyses conducted by or on behalf of the

Oklahoma Department of Commerce, and shall consider whether or not

the establishment is located in an economically distressed area of

the state, the number of jobs which are at risk, and the average

salary of the jobs which are at risk for the purposes of making

recommendations for offering a Quality Investment Contract and the

percentage of investment which shall be provided as incentive

payments. Provided, incentive payments shall in no event exceed ten

percent (10%) of the capital costs actually incurred for the

Oklahoma site that is the subject of the agreement. Provided, a

county, town or municipality in which an establishment eligible to

receive annual incentive payments pursuant to this section is

located may join in the Quality Investment Contract with the state

and the establishment and set out that it intends to annually

appropriate a portion of local sales tax revenue that shall be

included in the incentive payments.

Provided further, the Quality Investment Committee may not

recommend and the state shall not enter into contracts that would

result in payments from state revenues to all establishments in the

program in an amount in excess of Ten Million Dollars

($10,000,000.00) in any fiscal year. The maximum amount of

projected investment for purposes of a contract made pursuant to

this act shall not exceed Fifty Million Dollars ($50,000,000.00).

B. In order to receive incentive payments, an establishment

shall apply to and enter into a Quality Investment Contract with the

Oklahoma Department of Commerce on behalf of the state and the local

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1486

community when the town, city or county resolve to join with the

agreement. The application shall be on a form prescribed by the

Committee and shall contain such information as may be required by

the Committee and the Oklahoma Department of Commerce to determine

if the applicant is qualified.

C. In order to qualify to receive such payments, the

establishment applying shall be required to:

1. Be engaged in manufacturing in activities described under

Industry Group Nos. 31 through 33 of the NAICS Manual;

2. Incur capital costs for new retooling or modernization

projected to equal or exceed One Million Dollars ($1,000,000.00)

within twenty-four (24) months of the start date; and

3. Apply to and enter into a Quality Investment Contract

specifying:

a. the amount of capital investment the establishment

must make within twenty-four (24) months of the start

date in order to remain in the Oklahoma Quality

Investment Program,

b. the total minimum amount of Oklahoma taxable payroll

it will maintain in this state during the course of

the agreement,

c. the total amount in incentive payments it may receive,

d. if applicable, the amount of local revenues a county

or municipality intends to apportion to the

establishment annually, and

e. that it will offer “basic health insurance” as defined

in the Oklahoma Quality Jobs Program Act, within

twelve (12) months of entering into a Quality

Investment Contract.
Okla. Stat. tit. 68, § 68-1407.3 — OK Code / Title 68 / Section 68-1407.3
Oklahoma Tax Commission – Internet and other out-of-
Status: in_force

state retailers outreach program.

In an effort to improve compliance by Internet and other out-of-

state retailers maintaining a place of business in this state for

the collection of use tax on their sales to Oklahoma residents, the

Oklahoma Tax Commission shall implement an outreach program. The

program shall include contacting retailers for a review of their

Oklahoma Statutes - Title 68. Revenue and Taxation Page 670

business activities to determine if such activities may require the

registration and collection of Oklahoma use taxes and the providing

of information regarding the provisions of the Retail Protection Act

of 2016.
Okla. Stat. tit. 68, § 68-3152 — OK Code / Title 68 / Section 68-3152
Duties mandatory - Penalty for failure to perform
Status: in_force

The provisions of this article relating to the duties of various

officials, and the time within which such duties shall be performed,

are hereby declared to be mandatory, and the failure of any such

official, board or commission, to perform the duties prescribed

herein, within the time specified, shall subject them to removal

from office, for neglect of duty; and they shall receive no

remuneration, compensation or salary for their services, after the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1352

time herein fixed for the performance of such duties and until the

same shall have been completed or performed. Each of them shall

also be subject to a penalty of Five Dollars ($5.00) per day for

each day's delay for such neglect or failure, and it shall be the

duty of the district attorney to institute proper action to collect

any such penalty; provided, that the validity of any levy or

appropriation shall not be affected because of any insufficiency,

informality or delay in the performance of any duty imposed upon any

official, board or commission by this article.
Okla. Stat. tit. 68, § 68-55003 — OK Code / Title 68 / Section 68-55003
Judgment limiting or impairing federal act – Invalidity
Status: in_force

of act.

If a court of competent jurisdiction enters a final judgment on

the merits that:

1. Is based on federal or state law;

2. Is no longer subject to appeal; and

3. Substantially limits or impairs the essential elements of

the federal Mobile Telecommunications Sourcing Act, P.L. 106-252,

codified at 4 U.S.C., Sections 116 through 126 or Sections 2 and 3

of this act;

then the provisions of this act shall be invalid and shall have no

legal effect as of the date of entry of such judgment.
Okla. Stat. tit. 68, § 68-2357.28 — OK Code / Title 68 / Section 68-2357.28
Tax credit for investment in certain enterprises
Status: in_force

A. For tax years beginning after December 31, 1999, and ending

before January 1, 2006, there shall be allowed to an investor making

an eligible investment a credit against the tax imposed by Section

2355 of this title or Section 624 or 628 of Title 36 of the Oklahoma

Statutes. The credit may be used in the payment of estimated tax

payments for the tax imposed by Section 624 or 628 of Title 36 of

the Oklahoma Statutes. The credit shall be in the amount as set

forth in subsection F or subsection G of this section.

B. The amount of the credit shall be freely transferable to

subsequent transferees.

C. As used in this section:

1. “Capitalization commitment” means a commitment by a local

governmental entity or the beneficiary thereof or a private entity,

whether by contract, letter agreement, terms sheet, resolution,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 799

ordinance or indenture, to provide funds, personal property or real

property. “Capitalization commitment” shall also mean, in

circumstances limited to local governmental entities or the

beneficiaries thereof, a moral obligation to provide future funds,

personal property or real property. To provide funds, personal

property or real property shall include but not be limited to

providing funds, personal property or real property in the form of

security or collateral to a financial lending institution in support

of a revenue bond, financial obligation or other evidence of

indebtedness issued by a local governmental entity;

2. “Consideration” means, but is not limited to, funds,

personal property or real property and a capitalization commitment.

The source of the funds or other consideration for the investment by

one or more investors, whether borrowed or otherwise, is irrelevant

to the determination of investment. The fact that the source of

funds is from a financial lending institution is also irrelevant;

3. “Eligible investment” means an investment made during a

period not earlier than January 1, 1999, and not later than December

31, 2002, in an establishment that:

a. is headquartered in this state or is ultimately

controlled by an entity headquartered in this state,

and

b. has been certified by the Tax Commission as meeting

the following minimum qualifications:

(1) is included within the definition of “basic

industry” as set forth in division (7) of

subparagraph a of paragraph 1 of subsection A of

Section 3603 of this title and has been

preapproved by the Oklahoma Department of

Commerce to receive incentive payments pursuant

to the Oklahoma Quality Jobs Program Act. The

Department shall establish a process for

preapproval of applicants for the Oklahoma

Quality Jobs Program Act for purposes of this

division. The establishment shall agree to

submit such information as may be required under

this section and the Oklahoma Quality Jobs

Program Act to allow the Tax Commission to

determine the amount of the tax credit allowed

pursuant to the provisions of this section and

the amount of incentive payments allowed pursuant

to the Oklahoma Quality Jobs Program Act for

purposes of subsection K of this section,

(2) can demonstrate commitments from not fewer than

twenty entities doing business in this state,

with such entities having in the aggregate not

fewer than two thousand (2,000) employees in this

Oklahoma Statutes - Title 68. Revenue and Taxation Page 800

state, to utilize the services of the

establishment in providing nonstop air

transportation from this state to either the west

coast or the east coast of the continental United

States, or both. Such commitments, at a minimum,

may be in the form of letters of intent from

authorized officers of such entities which

demonstrate a best efforts intention to utilize

such air transportation, and

(3) has received, or its parent has received, in

calendar year 2000, a capitalization commitment

in the amount of Fifteen Million Dollars

($15,000,000.00) or more from a local

governmental entity, including, but not limited

to, proceeds from the issuance of revenue bonds,

financial obligations or other evidences of

indebtedness. For purposes of this section and

notwithstanding the provisions of Section 5063.4

of Title 74 of the Oklahoma Statutes or any other

laws to the contrary, credit enhancement by the

Oklahoma Development Finance Authority through

the Oklahoma Credit Enhancement Reserve Fund up

to a maximum of Ten Million Dollars

($10,000,000.00) is hereby authorized, subject to

the approval of the Executive and Legislative

Bond Oversight Commissions pursuant to Section

695.8 of Title 62 of the Oklahoma Statutes.

The tax credit provided for in this section shall not be allowed

or, if already claimed, shall be subject to recapture as to the

initial investor or investors, with respect to any amount of an

eligible investment made which is subsequently refunded or returned

to any such investor. Any such recapture shall only apply as to

that part of the tax credit as is associated with the investment

refunded or returned.

Nothing in this subsection is intended to preclude an

establishment from utilizing a wholly owned operating subsidiary to

perform its flight and related operations to meet the requirements

of this subsection;

4. “Financial lending institution” means a bank, credit union,

savings and loan association, commercial finance company,

governmental agency, including a local governmental entity, or other

entity principally engaged in investment, finance or the extension

of credit;

5. “Investment” means:

a. consideration in exchange for “equity and near-

equity”, which means common stock, preferred stock,

warrants or other rights to subscribe to stock or its

Oklahoma Statutes - Title 68. Revenue and Taxation Page 801

equivalent, or an interest in a partnership, or debt

that is convertible into or entitles the holder to

receive upon its exercise, common stock, preferred

stock, royalty interest, or an interest in a

partnership,

b. consideration in exchange for “subordinated debt”,

which means indebtedness that is subordinated to other

indebtedness of the issuer that has been issued or is

to be issued by a financial lending institution, or

c. in the event of a capitalization commitment in

accordance with the provisions of division (3) of

subparagraph b of paragraph 3 of this subsection,

where a local governmental entity is issuing revenue

bonds, financial obligations or other evidences of

indebtedness, the receipt of the proceeds of revenue

bonds, financial obligations or other evidences of

indebtedness issued by a local governmental entity by

a parent and the subsequent transfer of such proceeds

to a subsidiary.

Actions of the establishment to use such investment as security for

indebtedness, even as security for that of another party, or other

uses, in compliance with loan covenants as may be part of the

issuance of revenue bonds, financial obligations or other evidences

of indebtedness, shall not affect its determination as investment.

For purposes of this section, investment in an establishment which

has, prior to February 1, 2002, been certified as an eligible

establishment by the Oklahoma Tax Commission shall be treated as an

eligible investment in such establishment for the purposes of this

section with respect to investment made at any time prior to

December 31, 2002;

6. “Investor” means one or more persons or entities making an

investment and may include one or more persons or entities which

wholly or partially own the establishment;

7. “Local governmental entity” includes, but is not limited to,

a county, municipality or public authority or trust created pursuant

to the provisions of Title 60 of the Oklahoma Statutes of which the

state or a county or municipality or combination thereof, is a

beneficiary, or a state public authority or trust;

8. “Parent” means an entity owning fifty-one percent (51%) or

more of the establishment and providing fifty-one percent (51%) or

more of the investment in the establishment; and

9. “Subsequently refunded or returned”, when used in reference

to an eligible investment, means an actual redemption by the

establishment of the securities or other indicia of ownership in the

establishment received by the investor from the investor’s

investment. The failure to allow the tax credits or the recapture

of the tax credits shall not affect the validity of the tax credits

Oklahoma Statutes - Title 68. Revenue and Taxation Page 802

in the hands of a transferee of the initial investor or subsequent

transferees. Provided, an investor to whom an eligible investment,

or portion thereof, is subsequently refunded or returned shall

reimburse the Tax Commission the amount of any credits claimed by a

transferee with respect to any such amount.

D. The Oklahoma Tax Commission shall:

1. Certify, upon request of an authorized agent or

representative of an establishment described by paragraph 3 of

subsection C of this section, that the establishment for which the

certification is sought meets the qualifications prescribed by

subparagraphs a and b of paragraph 3 of subsection C of this

section. The certification shall be in writing and signed by an

authorized representative of the Tax Commission and, for purposes of

determining qualifications of an establishment in which an

investment may be eligible for the credit authorized by this

section, shall be binding upon the Tax Commission; and

2. Issue a certificate to an investor that provides adequate

documentation of qualification for the credit authorized by this

section even if the credit may not be claimed until after the date

upon which the certificate is requested. Upon issuance, the

certificate shall be evidence that an investor or a transferee of

the original tax credit claimant submitting the certificate, or a

certified copy thereof, with the relevant tax return or other form,

has the legal right to exercise the credit in order to reduce the

relevant tax liability for the period authorized by this section.

E. Except as otherwise provided by subsection G of this

section, the maximum amount of all eligible investments for which

tax credits may be claimed under this section shall be Thirty

Million Dollars ($30,000,000.00). If more than one establishment

has been certified by the Tax Commission pursuant to the provisions

of subsection D of this section, the investors in the first such

approved establishment shall be entitled to a credit based on their

investment of the lesser of their eligible investment or Thirty

Million Dollars ($30,000,000.00). The investors in the second such

approved establishment shall then be entitled to a credit based on

their investment of the lesser of their eligible investment or the

difference between the total eligible investments in previously

approved establishments and Thirty Million Dollars ($30,000,000.00).

This same procedure will apply for all subsequently approved

establishments. If the amount of eligible investments exceeds the

amount upon which the tax credit may be claimed as provided herein,

investors shall be allowed a share of the amount of the available

tax credit in order of the dates of receipt of certification

therefor by the Tax Commission pursuant to the provisions of

paragraph 1 of subsection D of this section.

F. Except as otherwise provided by subsection G of this

section, the amount of the tax credit allowed pursuant to the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 803

provisions of subsection A of this section shall be deemed fully

earned as of the date of the investment and shall be fully

redeemable as follows:

Period for Which

Tax Liability Determined Credit Allowed

Tax year subsequent to year

of eligible investment 10.6% of eligible

investment

Second tax year subsequent to

year of eligible investment 11.236% of eligible

investment

Third tax year subsequent to

year of eligible investment 11.910% of eligible

investment

Fourth tax year subsequent to

year of eligible investment 12.624% of eligible

investment

Fifth tax year subsequent to

year of eligible investment 13.381% of eligible

investment

G. An investor or investors in an establishment that has been

approved for eligible investment before February 1, 2002, pursuant

to this section may receive tax credits for additional eligible

investment in such establishment during the period February 1, 2002,

to December 31, 2002. The maximum amount of such additional tax

credits shall be Nine Million Dollars ($9,000,000.00) with One

Dollar ($1.00) of tax credit for each dollar of eligible investment.

The tax credits authorized by this subsection may not be used as to

any tax obligation that is due and payable before July 1, 2003. For

the fiscal year that begins July 1, 2003, and the fiscal years that

begin July 1, 2004, and July 1, 2005, the amount of tax credits

authorized by this subsection which may be used during each such

fiscal year shall not exceed Three Million Dollars ($3,000,000.00).

H. The amount of a tax credit allowed pursuant to the

provisions of this section not used in payment of taxes due in the

year in which such credit is allowed pursuant to subsection F or

subsection G of this section may be used as a credit against

subsequent tax liability of the investor or a subsequent transferee

for a period not to exceed three (3) years from the year in which

such credit is originally allowed.

I. The Tax Commission shall develop and issue appropriate forms

and instructions to enable investors to claim the tax credit

provided for in this section.

J. An establishment in which an eligible investment qualifies

for a credit authorized by this section shall maintain a record of

investment made in the establishment for the period beginning

January 1, 1999, and ending December 31, 2002. The establishment

Oklahoma Statutes - Title 68. Revenue and Taxation Page 804

shall notify the Tax Commission not later than January 31, 2003, of

the total investment amount for such period. Any such establishment

which refunds or returns any amount of an eligible investment to the

investor shall notify the Tax Commission in writing of the amount

and recipient of such refunds or returns. The Tax Commission shall

compute the maximum amount of credits available pursuant to this

section based upon notification of the investment amount transmitted

to the Tax Commission by the establishment.

K. An establishment in which eligible investments qualify for

the tax credit authorized by this section shall not receive

incentive payments pursuant to the Oklahoma Quality Jobs Program Act

until the total of such incentive payments the establishment would

otherwise receive exceeds the total amount of the credit authorized

by this section as computed by the Tax Commission pursuant to

subsection J of this section. The amount of incentive payments for

any year which would otherwise be paid to the establishment shall be

distributed as follows:

1. If the amount of such incentive payments equals or exceeds

the amount of the tax credit for the year, the amount of such

payments which is equal to the amount of the tax credit shall be

apportioned as if collected from the tax imposed by Section 2355 of

this title or Section 624 or 628 of Title 36 of the Oklahoma

Statutes according to which tax the credit was claimed against. The

amount of such payments which is in excess of the amount of the tax

credit shall be retained by the Tax Commission to be paid as

provided for in this paragraph for subsequent years for which the

tax credit is allowed to the establishment;

2. If the amount of such incentive payments and any amount

retained by the Tax Commission pursuant to the provisions of

paragraph 1 of this subsection is less than the amount of the tax

credit for the year, notwithstanding the provisions of Section 1727

of Title 69 of the Oklahoma Statutes, the Tax Commission shall

withhold a portion of the taxes levied and collected pursuant to the

provisions of paragraph 1 of subsection A of Section 500.4 of this

title which would otherwise be paid over to the Department of

Transportation by the Oklahoma Turnpike Authority pursuant to the

provisions of paragraph (2) of subsection (d) of Section 1730 of

Title 69 of the Oklahoma Statutes equal to the amount of the

deficit. The Tax Commission shall apportion all funds collected

pursuant to the provisions of this paragraph as if collected from

the tax imposed by Section 2355 of this title or Section 624 or 628

of Title 36 of the Oklahoma Statutes according to the tax against

which the credit was claimed; and

3. If any amount is withheld by or paid to the Tax Commission

pursuant to the provisions of paragraph 2 of this subsection, the

amount of incentive payments to be subsequently paid to the

establishment shall be apportioned by the Tax Commission to the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 805

Department of Transportation until such time as all amounts paid

pursuant to the provisions of paragraph 2 of this subsection are

repaid.

L. No establishment in which investments qualify for the credit

allowed by this section shall be entitled to payment of any

incentive payments accrued prior to the date authorized for the

initial eligible investments as provided by this subsection.

M. Notwithstanding the provisions of this section, an

establishment may, prior to the issuance of a tax credit with

respect to the establishment pursuant to the provisions of this

section, elect to receive incentive payments pursuant to the

provisions of the Oklahoma Quality Jobs Program Act in lieu of

allowing the tax credit provided for herein, in which case it shall

so notify the Tax Commission in writing and the provisions of this

section shall not be applicable.

N. Except as provided by subsection M of this section, no

establishment defined by this section which would otherwise qualify

for incentive payments pursuant to the provisions of the Oklahoma

Quality Jobs Program Act may receive such incentive payments prior

to January 1, 2001.

O. No establishment defined by this section which has made

application to the Oklahoma Department of Commerce or which has

executed any agreement with the Oklahoma Department of Commerce with

respect to the receipt of incentive payments pursuant to the

provisions of the Oklahoma Quality Jobs Program Act or which has

received any incentive payment pursuant to the Oklahoma Quality Jobs

Program Act prior to June 9, 1999, may be certified as an

establishment for purposes of determining eligibility for the credit

authorized by this section.
Okla. Stat. tit. 68, § 68-343 — OK Code / Title 68 / Section 68-343
Violations - Injunctions - Damages
Status: in_force

A. The Commission or any person injured by any violation, or

who would suffer injury from any threatened violation of Sections

326 through 345 of Title 68 of the Oklahoma Statutes, may maintain

an action in any court of equitable jurisdiction to prevent,

restrain or enjoin such violation or threatened violation. If in

such action a violation or threatened violation of Sections 326

through 345 of Title 68 of the Oklahoma Statutes shall be

established, the court shall enjoin and restrain, or otherwise

prohibit, such violation or threatened violation, and, in addition

thereto, the court shall assess in favor of the plaintiff and

against the defendant the costs of suit including reasonable

attorney's fees. In such action it shall not be necessary that

actual damages to the plaintiff be alleged or proved, but where

alleged and proved, the plaintiff in the action, in addition to such

injunctive relief and cost of suit, including reasonable attorney's

fees shall be entitled to recover from the defendant the actual

damages sustained by him.

B. In the event that no injunctive relief is sought or

required, any person injured by a violation of Sections 326 through

345 of Title 68 of the Oklahoma Statutes may maintain an action for

damages and costs of suit in any court of general jurisdiction.
Okla. Stat. tit. 68, § 68-2357.62 — OK Code / Title 68 / Section 68-2357.62
Credit for qualified investment in qualified small
Status: in_force

business capital companies.

A. Except as provided in Section 1 of this act, for taxable

years beginning after December 31, 1997, and before January 1, 2012,

there shall be allowed a credit against the tax imposed by Section

2355 or, effective January 1, 2001, Section 2370 of this title or,

effective July 1, 2001, against the tax imposed by Section 624 or

628 of Title 36 of the Oklahoma Statutes, for qualified investment

in qualified small business capital companies. No amount of a

qualified investment made in a qualified small business capital

company which has not been invested in one or more Oklahoma small

business ventures prior to the effective date of the moratorium

provided for in Section 1 of this act shall be eligible for any

credit otherwise authorized pursuant to this section. No qualified

investment made in a qualified small business capital company or

qualified investment made by a qualified small business capital

company in one or more Oklahoma small business ventures during the

period of the moratorium pursuant to Section 1 of this act shall be

eligible for any credit otherwise authorized pursuant to this

section.

B. The credit provided for in subsection A of this section

shall be twenty percent (20%) of the qualified investment in

qualified small business capital companies which is subsequently

invested in an Oklahoma small business venture by the qualified

venture capital company and may only be claimed for a taxable year

during which the qualified small business capital company makes the

qualified investment in an Oklahoma small business venture. The

credit shall be allowed for the amount of the qualified investment

in an Oklahoma small business venture if the funds are used in

pursuit of a legitimate business purpose of the Oklahoma small

business venture consistent with its organizational instrument,

bylaws or other agreement responsible for the governance of the

small business venture. The qualified small business capital

company shall issue such reports as the Oklahoma Tax Commission may

require attributing the source of funds of each investment it makes

in an Oklahoma business venture. If the tax credit exceeds the

amount of taxes due or if there are no state taxes due of the

taxpayer, the amount of the claim not used as an offset against the

taxes of a taxable year may be carried forward for a period not to

exceed three (3) taxable years.

C. No taxpayer may claim the credit provided for in this

section for qualified investments in qualified small business

capital companies made prior to January 1, 1998.

D. No taxpayer may claim the credit provided for in this

section if the capital provided by a qualified small business

capital company is used by an Oklahoma small business venture for

the acquisition of any other legal entity.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 836

E. No financial lending institution shall be eligible to claim

the credit provided for in this section except with respect to

qualified investments in a qualified small business capital company.

F. No taxpayer may claim the credit authorized by this section

for the same qualified investment for which any credit is claimed

pursuant to either Section 2357.73 or 2357.74 of this title.

G. If a pass-through entity is entitled to a credit under this

section, the pass-through entity shall allocate such credit to one

or more of the shareholders, partners or members of the pass-through

entity; provided, the total of all credits allocated shall not

exceed the amount of the credit to which the pass-through entity is

entitled. The credit may also be claimed for funds borrowed by the

pass-through entity to make a qualified investment if a shareholder,

partner or member to whom the credit is allocated has an unlimited

and continuing legal obligation to repay the borrowed funds but the

allocation may not exceed such shareholder’s, partner’s or member’s

pro-rata equity share of the pass-through entity even if the

taxpayer’s legal obligation to repay the borrowed funds is in excess

of such pro-rata share of such borrowed funds. For purposes of the

Small Business Capital Formation Incentive Act, “pass-through

entity” means a corporation that for the applicable tax years is

treated as an S corporation under the Internal Revenue Code, general

partnership, limited partnership, limited liability partnership,

trust, or limited liability company that for the applicable tax year

is not taxed as a corporation for federal income tax purposes.
Okla. Stat. tit. 68, § 68-24404 — OK Code / Title 68 / Section 68-24404
Renumbered as § 3152 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.
Okla. Stat. tit. 68, § 68-2358v1 — OK Code / Title 68 / Section 68-2358v1
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 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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 926

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)

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:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 927

(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

(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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 928

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

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 929

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

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 930

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

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 931

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

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 932

(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

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 933

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,

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:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 934

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.,

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 935

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”,

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.

12. For tax year 2025 and subsequent tax years, an employer

providing paid leave to an employee for the purpose of volunteering

as a poll worker with a county election board in this state shall

receive an exemption from taxable income in the amount of One

Hundred Dollars ($100.00) for each day of leave provided in the tax

year. The employer shall provide documentation from the applicable

county election board showing the employee volunteered, upon request

of the Oklahoma Tax Commission.

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 936

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

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:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 937

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:

(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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 938

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

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 939

(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

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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 940

(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:

(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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 941

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

(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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 942

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.

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 943

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

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 944

(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

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 945

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.

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 946

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

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 947

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

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 948

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.

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 949

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

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 950

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

(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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 951

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.

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 952

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

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.

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 953

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,

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,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 954

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,

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)

Oklahoma Statutes - Title 68. Revenue and Taxation Page 955

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,

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 956

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

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 957

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, § 68-450.6 — OK Code / Title 68 / Section 68-450.6
Exemptions from tax
Status: in_force

Nothing in this act requires any person, including but not

limited to pharmacists or doctors licensed by this state, lawfully

in possession of a controlled dangerous substance, to pay the tax

levied by Section 2 of this act.
Okla. Stat. tit. 68, § 68-3920 — OK Code / Title 68 / Section 68-3920
21st Century Quality Jobs Incentive Act
Status: in_force

The Oklahoma Department of Commerce shall prepare a report which

shall include, but not be limited to, documentation of the new

direct jobs created under this act and a fiscal analysis of the

costs and benefits of the act to the state. The report shall be

submitted to the President Pro Tempore of the Senate, the Speaker of

the House of Representatives and the Governor no later than March 1,

2011, and every three (3) years thereafter. The report may be used

for the purpose of determining whether to continue or sunset the

21st Century Quality Jobs Incentive Act.
Okla. Stat. tit. 68, § 68-500.53 — OK Code / Title 68 / Section 68-500.53
Failure to obtain required licenses - Penalties
Status: in_force

No person shall engage in any business activity in this state as

to which a license is required by this act unless the person shall

have first obtained the license. Any person who negligently

violates this section is subject to a civil penalty in the amount of

One Thousand Dollars ($1,000.00). Any person who knowingly violates

or knowingly aids and abets another to violate this section with the

intent to evade the tax levied by this act 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.
Okla. Stat. tit. 68, § 68-3016 — OK Code / Title 68 / Section 68-3016
Appropriation when estimate not submitted
Status: in_force

Should any municipality fail to make and submit an estimate as

herein provided, the county excise board shall have authority to

make an appropriation for current expense and sinking fund purposes

and make such levy therefor as it may find necessary to meet the

probable needs of such municipality, provided that no such estimate

shall be approved until the same shall have been by the county

excise board advertised in like manner to items that shall be added

to or increased in an estimate.
Okla. Stat. tit. 68, § 68-24315 — OK Code / Title 68 / Section 68-24315
Renumbered as § 3110 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.
Okla. Stat. tit. 68, § 68-2357.100 — OK Code / Title 68 / Section 68-2357.100
Credit for purchase and transportation of poultry
Status: in_force

litter – Calculation – Qualification – Carry-forward period.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 864

A. For taxable years beginning after December 31, 2004, and

ending on or before December 31, 2009, there shall be allowed a

credit against the tax imposed by Section 2355 of this title for the

purchase and transportation of poultry litter. Subject to the

limitations provided in subsection C of this section, the credit

shall be available to the purchaser of the poultry litter and shall

equal Five Dollars ($5.00) per ton purchased and transported.

B. Except as provided in subsection F of this section, for

taxable years beginning after December 31, 2009, and ending on or

before December 31, 2013, there shall be allowed a credit against

the tax imposed by Section 2355 of this title for the purchase and

transportation of poultry litter. Subject to the limitations

provided in subsection C of this section, the credit shall be

available to the purchaser of the poultry litter and shall equal Ten

Dollars ($10.00) per ton purchased and transported.

C. 1. The total of the credits authorized by this section

shall not exceed Three Hundred Seventy-five Thousand Dollars

($375,000.00) annually. The amount of the credit for each purchaser

shall be adjusted annually so that the total estimate of the credits

authorized by this section does not exceed Three Hundred Seventy-

five Thousand Dollars ($375,000.00). The formula to be used for the

percentage adjustment shall be Three Hundred Seventy-five Thousand

Dollars ($375,000.00) divided by the credits claimed in the

preceding year. In no event shall the credit be claimed more than

once by a taxpayer each taxable year.

2. In the event the total tax credits authorized by this

section exceed Three Hundred Seventy-five Thousand Dollars

($375,000.00) in any calendar year, the Oklahoma Tax Commission

shall permit any excess over Three Hundred Seventy-five Thousand

Dollars ($375,000.00) but shall factor such excess into the

percentage adjustment formula for subsequent years.

D. In order to qualify for the credit provided for in

subsections A and B of this section:

1. The poultry litter shall only be purchased from an Oklahoma-

based poultry operation registered with the State Board of

Agriculture and located within an environmentally sensitive and

nutrient-limited watershed area as defined in the most recent

Oklahoma Water Quality Standards;

2. The poultry litter shall be used or spread in a watershed

that is not environmentally sensitive and nutrient-limited as

defined in the most recent Oklahoma Water Quality Standards; and

3. The poultry litter shall be applied by a certified poultry

waste applicator as defined by Section 10-9.1 of Title 2 of the

Oklahoma Statutes and in accordance with the provisions of Sections

10-9.16 through 10-9.21 of Title 2 of the Oklahoma Statutes and any

rules promulgated by the Oklahoma Department of Agriculture, Food,

and Forestry.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 865

E. The credit allowed by this section shall be available to the

taxpayer in the year in which the poultry litter was purchased and

transported, provided the taxpayer is found by the Oklahoma

Department of Agriculture, Food, and Forestry to have applied the

poultry litter in a manner consistent with an Animal Waste

Management Plan, as defined in Section 10-9.1 of Title 2 of the

Oklahoma Statutes, specifically designed to restore and protect

beneficial uses from impairment from nutrients. If the credit

exceeds the amount of income taxes due or if there are no state

income taxes due on the income of the taxpayer, the amount of the

credit not used as an offset against the income taxes for a year may

be carried forward as a credit against subsequent income tax

liability for a period not to exceed five (5) years.

F. No credit otherwise authorized by the provisions of thisOklahoma Statutes - Title 68. Revenue and Taxation Page 20rients. If the credit

exceeds the amount of income taxes due or if there are no state

income taxes due on the income of the taxpayer, the amount of the

credit not used as an offset against the income taxes for a year may

be carried forward as a credit against subsequent income tax

liability for a period not to exceed five (5) years.

F. No credit otherwise authorized by the provisions of this

section may be claimed for any event, transaction, investment,

expenditure or other act occurring on or after July 1, 2010, for

which the credit would otherwise be allowable. The provisions of

this subsection shall cease to be operative on July 1, 2012.

Beginning July 1, 2012, the credit authorized by this section may be

claimed for any event, transaction, investment, expenditure or other

act occurring on or after July 1, 2012, according to the provisions

of this section.
Okla. Stat. tit. 68, § 68-3001 — OK Code / Title 68 / Section 68-3001
Appropriation - Defined
Status: in_force

The term "appropriation" as used in Sections 2482-24113 of this

Code is hereby declared to be synonymous with "estimate made and

approved," as defined in 62 O.S.1961, Section 473, and the

provisions, requirements, limitations and penalty of 62 O.S.1961,

Sections 471 through 480, are hereby specifically declared to extend

to and embrace "appropriations" as herein defined.
Okla. Stat. tit. 68, § 68-55004 — OK Code / Title 68 / Section 68-55004
When act applies relating to tax liabilities
Status: in_force

The provisions of this act relating to tax liabilities shall

apply only to charges on or revenues from customer bills issued on

or after August 1, 2002.
Okla. Stat. tit. 68, § 68-24101 — OK Code / Title 68 / Section 68-24101
Renumbered as § 3021 of this title by Laws 1988, c. 162, § 163, eff. Jan. 1, 1992 and by
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 40§ 163, eff. Jan. 1, 1992 and by Laws 1991, c. 249, § 3, eff. Jan. 1,

1992.
Okla. Stat. tit. 68, § 68-2368.16 — OK Code / Title 68 / Section 68-2368.16
Regional food bank - Donation from tax refund
Status: in_force

A. Each state individual income tax return form for tax years

which begin after December 31, 2007, and each state corporate tax

return form for tax years beginning after December 31, 2007, shall

contain a provision to allow a donation from a tax refund for the

benefit of any regional food bank in this state. For purposes of

this section, “regional food bank” means a nonprofit charitable

organization exempt from taxation pursuant to the provisions of the

Internal Revenue Code of 1986, as amended, 26 U.S.C., Section

501(c)(3), which as a part of a food bank network, maintains a food

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1047

distribution operation providing food to other nonprofit entities

that offer groceries or meals to people in need of food assistance.

The provision to allow donation shall read as follows:

Support of programs for regional food banks in this state.

Check if you wish to donate from your tax refund: ( ) $2, ( ) $5,

or ( ) $____.

B. Except as otherwise provided for in this section, all monies

generated pursuant to subsection A of this section shall be paid to

the State Treasurer by the Oklahoma Tax Commission and placed to the

credit of the Income Tax Checkoff Revolving Fund for Oklahoma

Regional Food Banks created in subsection C of this section.

C. There is hereby created in the State Treasury a revolving

fund for the Department of Human Services to be designated the

“Income Tax Checkoff Revolving Fund for Oklahoma Regional Food

Banks”. The fund shall be a continuing fund, not subject to fiscal

year limitations, and shall consist of all monies apportioned to the

fund pursuant to the provisions of this section. All monies

accruing to the credit of the fund are hereby appropriated and may

be budgeted and expended by the Department of Human Services for the

purpose of providing funding for all regional food banks in this

state. 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.

D. If a taxpayer makes a donation pursuant to subsection A of

this section in error, such taxpayer may file a claim for refund at

any time within three (3) years from the due date of the tax return.

Such claims shall be filed pursuant to the provisions of Section

2373 of this title. Prior to the apportionment set forth in this

section, an amount equal to the total amount of refunds made

pursuant to this subsection during any one (1) year shall be

deducted from the total donations received pursuant to this section

during the following year and such amount deducted shall be paid to

the State Treasurer and placed to the credit of the Income Tax

Withholding Refund Account.

E. Pursuant to Section 2368.18 of this title, the income tax

checkoff contained in this section is hereby reauthorized effective

January 1, 2026.
Okla. Stat. tit. 68, § 68-2357.7A — OK Code / Title 68 / Section 68-2357.7A
Commission to file annual report on qualified venture
Status: in_force

capital company investment credit.

On or before November 1 of each year subsequent to the effective

date of this act, the Oklahoma Tax Commission shall file a report

with the Speaker of the House of Representatives and the President

Pro Tempore of the Senate. The report shall state the amount of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 774

credits actually claimed and allowed pursuant to the provisions of

Section 2357.7 of Title 68 of the Oklahoma Statutes during the

previous calendar year, statistical information on the qualified

investments made by qualified venture capital companies during the

previous year, an estimate of the number of jobs created in this

state during the previous year pursuant to qualified investments

made by qualified venture capital companies, and such other

information as the Tax Commission may deem relevant.
Okla. Stat. tit. 68, § 68-1623 — OK Code / Title 68 / Section 68-1623
Conditions for storage, transportation, sale, and use
Status: in_force

A. Consumer Fireworks may be legally stored, transported, sold

and used in this state with the exceptions and conditions specified

under the provisions of Section 1621 et seq. of this title and

consistent with Section 22-110 of Title 11 of the Oklahoma Statutes.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 684

Novelties may be legally stored, transported, sold and used in this

state.

B. All fireworks storage and sales areas shall be conspicuously

posted with signs reading "FIREWORKS-NO SMOKING".

C. Fireworks offered for retail sale must be sold according to

the National Fire Protection Association (NFPA) 1124 Chapter 7, 2006

Edition. Any facility licensed to sell consumer fireworks prior to

November 15, 2009, shall be exempt from the NFPA regulations listed

in this subsection but shall remain under the regulation of the date

of licensure. Mail-order sales to consumers are prohibited through

any medium of either interstate or intrastate commerce. Sales of

fireworks may only be made at properly licensed retail locations

within the State of Oklahoma. A sales clerk must be on duty to

serve the consumer at the time of purchase.

D. An enclosed building used for sale of fireworks to the

public shall be built according to the International Building Code

(IBC) 2006 Edition and/or the codes and standards adopted by the

Oklahoma Uniform Building Code Commission.

E. The retail license holder shall be responsible for the safe

operation of retail sales to the public. The retail license holder

shall be at least sixteen (16) years of age.

F. Fireworks may be sold by licensed manufacturers,

distributors or wholesalers at wholesale or retail to residents and

nonresidents of the state from January 1 until December 31 of each

calendar year. Fireworks may only be sold by licensed retailers

from June 15 until July 6 or the first Sunday after July 4th,

whichever is later, and from December 15 until January 2 to

residents and nonresidents of the state each calendar year.

G. Nothing in Section 1621 et seq. of this title shall be

construed to require the State Fire Marshal to inspect or cause to

be inspected portable retail fireworks stands, tents or other

nonrigid shelters prior to opening; provided, the provisions of this

subsection shall not prohibit the local governing authority of the

location of the portable retail fireworks stand, tent or other

nonrigid shelter from inspecting such stands, tents or other

nonrigid shelters prior to opening.
Okla. Stat. tit. 68, § 68-2358.6A — OK Code / Title 68 / Section 68-2358.6A
Expensing for qualified property and qualified
Status: in_force

improvement property.

A. As used in this section:

1. "Internal Revenue Code" means Title 26 of the United States

Code also known as the federal Internal Revenue Code of 1986, as

amended;

2. "Tax Cuts and Jobs Act" means Public Law No. 115-97 (115th

Congress Public Law 97);

Oklahoma Statutes - Title 68. Revenue and Taxation Page 919

3. "Qualified property" shall have the same meaning as in

Internal Revenue Code Section 168(k) as the Code existed on January

1, 2021, and shall apply to property placed in service after

December 31, 2021;

4. "Qualified improvement property" shall have the same meaning

as in Internal Revenue Code Section 168(e)(6) as the Code existed on

January 1, 2021, and shall apply to property placed in service after

December 31, 2021; and

5. "Full expensing" or "one hundred percent (100%) bonus

depreciation" means a method for taxpayers to recover costs for

certain expenditures in research and experimentation and depreciable

business assets by immediately deducting the full cost of such

expenditures in the tax year in which the cost is incurred or the

property is placed in service.

B. Taxpayers shall have the option for immediate and full

expensing for qualified property and qualified improvement property

as follows:

1. For purposes of computing income tax for taxable years

beginning after December 31, 2021, the cost of expenditures for

business assets that are qualified property or qualified improvement

property covered under Section 168 of the Internal Revenue Code

shall be eligible for one hundred percent (100%) bonus depreciation

and may be deducted as an expense incurred by the taxpayer during

the taxable year during which the property is placed in service,

notwithstanding any changes to federal law related to amortization

of cost recovery beginning on or after January 1, 2023, and shall

permanently remain fully and immediately deductible as an expense in

the tax year in which the property is placed in service for purposes

of calculating the taxpayer's income;

2. If a taxpayer elects immediate and full expensing of

qualified property or qualified improvement property, any

depreciation calculated and claimed pursuant to this section shall

in no event be a duplication of any depreciation or bonus

depreciation allowed or permitted on the federal income tax return

of the taxpayer. For income tax returns filed on or after January

1, 2023, federal taxable income shall be increased by the amount of

depreciation received under the Internal Revenue Code for the

qualified property or qualified improvement property for which the

election has been made to immediately and fully expense the asset on

the Oklahoma income tax return for the year in which the property

was placed in service. A taxpayer filing a return for which federal

taxable income is not increased as provided for in this section

prior to October 1, 2023, shall file an amended return reflecting

such increase not later than June 30, 2024. The Tax Commission

shall not assess penalties or interest with respect to the failure

to reflect such increase if a correct amended return is filed as

required herein; and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 920

3. The taxpayer's decision to recover investment costs through

immediate expensing in the year the investment cost is incurred, or

amortized over an amortization schedule, is irrevocable unless

specifically allowed for by the Oklahoma Tax Commission.

C. 1. To conform to Section 179 of the Internal Revenue Code,

taxpayers shall be allowed to immediately deduct as an expense the

cost of certain depreciable business assets in the tax year in which

the property is placed in service.

2. For purposes of computing income tax for taxable years

beginning after December 31, 2021, taxpayers may elect to treat the

cost of any Section 179 of the Internal Revenue Code property as an

expense which is not chargeable to the capital account. Any cost so

treated shall be allowed as a deduction for the taxable year in

which the Section 179 Internal Revenue Code property is placed in

service.

D. The Oklahoma Tax Commission shall, within sixty (60) days of

the effective date of this act, promulgate rules for implementation

of this act which shall conform to the Internal Revenue Code of 1986

and must be consistent with the Internal Revenue Service's rules.

The provisions of this section shall supersede to the extent of any

inconsistency with any administrative rule.