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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1204 By: Maynard
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 217, which relates to interest and
penalties on delinquent taxes and interest on
refunds; modifying interest calculation on delinquent
taxes; modifying interest calculation on refunds; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 217, is
amended to read as follows:
Section 217. A. If any amount of tax imposed or levied by any
state tax law, or any part of such amount, is not paid before such
tax becomes delinquent, there shall be collected on the total
delinquent tax interest at the prime rate of one and one-quarter
percent (1 1/4%) per month from the date of the delinquency until
paid plus two (2) percentage points, as published in The Wall Street
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Journal on the first day of each calendar year that is not a
Saturday, Sunday, or legal holiday.
B. Interest upon any amount of state tax determined as a
deficiency, under the provisions of Section 221 of this title, shall
be assessed at the same time as the deficiency and shall be paid
upon notice and demand of the Oklahoma Tax Commission at the prime
rate of one and one-quarter percent (1 1/4%) per month from the date
prescribed in the state tax law levying such tax for the payment
thereof to the date the deficiency is assessed plus two (2)
percentage points, as published in The Wall Street Journal on the
first day of each calendar year that is not a Saturday, Sunday, or
legal holiday.
C. If any tax due under state sales, use, tourism, mixed
beverage gross receipts, or motor fuel tax laws, or any part
thereof, is not paid within fifteen (15) days after such tax becomes
delinquent a penalty of ten percent (10%) on the total amount of tax
due and delinquent 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.
D. If any tax due under any state tax law other than those
specified in subsection C of this section, or any part thereof, is
not paid within thirty (30) days after such tax becomes delinquent a
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penalty of ten percent (10%) on the total amount of tax due and
delinquent 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.
E. If any part of any deficiency, arbitrary or jeopardy
assessment made by the Tax Commission is based upon or occasioned by
the taxpayer's negligence or by the failure or refusal of any
taxpayer to file with the Tax Commission any report or return, as
required by this title, or by any state tax law, within ten (10)
days after a written demand for such report or return has been
served upon any taxpayer by the Tax Commission by letter, the Tax
Commission may assess and collect, as a penalty, twenty-five percent
(25%) of the amount of the assessment. For purposes of this
subsection, "negligence" shall mean the consistent understatement of
income, consistent understatement of receipts or a system of
recordkeeping by the taxpayer that consistently results in an
inaccurate reporting of tax liability.
F. If any part of any deficiency is 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.
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G. All penalties or interest imposed by this title, or any
state tax law, shall be recoverable by the Tax Commission as a part
of the tax with respect to which they are imposed, the penalties
bearing interest as provided in this section for the tax, and all
penalties and interest shall be apportioned as provided for the
apportionment of the tax on which such penalties or interest are
collected.
H. 1. Whenever an income a tax refund is not paid to the
taxpayer within ninety (90) days after the return is filed or due,
whichever is later, with all documents as required by the Tax
Commission, entitling the taxpayer to a refund, then the Tax
Commission shall pay interest on the refund, at the same prime rate
specified for interest on delinquent tax payments plus two (2)
percentage points, as published in The Wall Street Journal on the
first day of each calendar year that is not a Saturday, Sunday, or
legal holiday. The interest paid on the refund shall be calculated
starting from the date which the taxpayer submitted payment. The
payment of interest on refunds provided for by this section shall
apply to tax year 1987 and subsequent tax years. The Tax Commission
shall not be required to pay interest on an income tax refund which
is applied, in whole or in part, to a prior year tax liability
pursuant to Section 2385.17 of this title or upon an income tax
refund applied, in whole or in part, to satisfy a debt owed to the
Internal Revenue Service of the United States or to a state agency,
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including the Oklahoma Tax Commission, as provided by Section 205.2
of this title. The provisions of this subsection shall apply to
refunds submitted after the effective date of this act.
2. For tax returns filed after January 1, 2004, and before
January 2, 2010, whenever an income tax refund is not paid to the
taxpayer within the following number of days after the income tax
return is filed with all documents as required by the Tax Commission
or after the income tax return is due, whichever is later, entitling
the taxpayer to a refund, then the Tax Commission shall pay interest
on the refund at the same rate specified for interest on delinquent
tax payments:
a. for returns filed electronically, thirty (30) days,
and
b. for all other returns, one hundred fifty (150) days.
3. For tax returns filed after January 1, 2010, whenever an
income tax refund is not paid to the taxpayer within the following
number of days after the income tax return is filed or due,
whichever is later, with all documents as required by the Tax
Commission entitling the taxpayer to a refund, then the Tax
Commission shall pay interest on the refund at the same rate
specified for interest on delinquent tax payments:
a. for returns filed electronically, forty-five (45)
days, and
b. for all other returns, ninety (90) days.
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SECTION 2. This act shall become effective November 1, 2025.
60-1-10185 AO 01/14/25