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An Act
ENROLLED HOUSE
BILL NO. 1279 By: Caldwell (Chad) of the
House
and
Daniels of the Senate
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 221, as amended by Section 1,
Chapter 113, O.S.L. 2023 (68 O.S. Supp. 2024, Section
221), which relates to the Uniform Tax Procedure
Code; modifying provisions related to protest
process; modifying provisions related to taxpayer
protest; prescribing procedures for protest with
respect to denial of certain tax credit; providing
for oral hearing before the Oklahoma Tax Commission;
requiring written order; prescribing procedures for
appeal; and declaring an emergency.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 221, as
amended by Section 1, Chapter 113, O.S.L. 2023 (68 O.S. Supp. 2024,
Section 221), is amended to read as follows:
Section 221. A. If any taxpayer shall fail to make any report
or return as required by any state tax law, the Oklahoma Tax
Commission, from any information in its possession or obtainable by
it, may determine the correct amount of tax for the taxable period.
If a report or return has been filed, the Tax Commission shall
examine such report or return and make such audit or investigation
as it may deem necessary. If, in cases where no report or return
has been filed, the Tax Commission determines that there is a tax
due for the taxable period, or if, in cases where a report or return
has been filed, the Tax Commission shall determine that the tax
disclosed by such report or return is less than the tax disclosed by
ENR. H. B. NO. 1279 Page 2
its examination, it shall in writing propose the assessment of taxes
or additional taxes, as the case may be, and shall mail a copy of
the proposed assessment to the taxpayer at the taxpayer's last-known
address. Proposed assessments made in the name of the "Oklahoma Tax
Commission" by its authorized agents shall be considered as the
action of the Tax Commission.
B. Any assessment, correction or adjustment made as a result of
an office audit shall be presumed to be the result of an audit of
the report or return only, and such office audit shall not be deemed
a verification of any item in the report or return unless the item
shall have been made the subject of a hearing before the Tax
Commission, and the correctness and amount of such item determined
at such hearing; and such office audit shall not preclude the Tax
Commission from subsequently making further adjustment, correction
or assessment as a result of a field audit of the books and records
of the taxpayer, wherever located, or upon disclosures from any
source other than the return. In cases where no report or return
has been filed, the assessment of the tax on any information
available shall in no event preclude the assessment at any time on
subsequently disclosed information.
C. Within sixty (60) days after the date indicated on the
aforesaid proposed assessment, the taxpayer may file with the Tax
Commission a written protest under oath, signed by the taxpayer or
the taxpayer's duly authorized agent, on such a form as the Tax
Commission may prescribe, setting out therein:
1. A statement of the amount of deficiency as determined by the
Tax Commission, the nature of the tax and the amount thereof in
controversy;
2. A clear and concise assignment of each error alleged to have
been committed by the Tax Commission;
3. The argument and legal authority upon which each assignment
of error is made; provided, that the applicant shall not be bound or
restricted in such hearing, or on appeal, to the arguments and legal
authorities contained and cited in the application;
4. A statement of relief sought by the taxpayer; and
5. A verification by the taxpayer or the taxpayer's duly
authorized agent that the statements and facts contained therein are
true.
ENR. H. B. NO. 1279 Page 3
D. If in such written protest the taxpayer shall request an
oral hearing, the Tax Commission shall grant such hearing, and
shall, by written notice, advise the taxpayer of a date, which shall
not be less than ten (10) days from the date of mailing of such
written notice, when such taxpayer may appear before the Tax
Commission and present arguments and evidence, oral or written, in
support of the protest. Hearings shall be held as soon as
practicable. In the event an oral hearing is not requested, the Tax
Commission shall proceed without further notice to examine into the
merits of the protest and enter an order in accordance with its
findings. Upon request of any taxpayer and upon proper showing that
the principle of law involved in the assessment of any tax is
already pending before the courts for judicial determination, the
taxpayer, upon agreement to abide by the decision of the court, may
pay the tax so assessed under protest and such protest shall be
resolved in accordance with the agreement to abide.
E. If the taxpayer fails to file a written protest within the
sixty-day period herein provided for or within the period as
extended by the Tax Commission, or if the taxpayer fails to file the
notice required by Section 226 of this title within thirty (30) days
from the date indicated on the proposed assessment, then the
proposed assessment, without further action of the Tax Commission,
shall become final and absolute. A taxpayer who fails to file a
protest to an assessment of taxes within the time period prescribed
by this section may, within one (1) year of the date the assessment
becomes final, request the Tax Commission to adjust or abate the
assessment if the taxpayer can demonstrate, by a preponderance of
the evidence, that the assessment or some portion thereof is clearly
erroneous. If the Tax Commission determines that the proper showing
has been made, the assessment or portion thereof determined to be
clearly erroneous shall be deemed not to have become final and
absolute. No hearing to adjust or abate a clearly erroneous
assessment may be granted after the Tax Commission's denial of such
a request. An order of the Tax Commission denying a taxpayer's
request to adjust or abate an assessment alleged to be clearly
erroneous is not an appealable order under Section 225 of this
title. No proceeding instituted by the Tax Commission to collect a
tax liability may be stayed because of a request made by a taxpayer
to adjust or abate an assessment alleged to be clearly erroneous.
F. The Tax Commission may in its discretion extend the time for
filing a protest for any period of time not to exceed an additional
ninety (90) days. Any extension granted shall not extend the period
ENR. H. B. NO. 1279 Page 4
of time within which the notice required by Section 226 of this
title may be filed.
G. Within a reasonable time after the hearing herein provided
for, the Tax Commission shall make and enter an order in writing in
which it shall set forth the disposition made of the protest and a
copy of such order shall forthwith be mailed to the taxpayer. The
order shall contain findings of fact and conclusions of law. After
removing the identity of the taxpayer, the Tax Commission shall make
the order available for public inspection and shall publish those
orders the Tax Commission deems to be of precedential value. The
taxpayer may appeal the order within the time and in the manner
provided for by Section 225 of this title, appeal to the Supreme
Court, but in the event the taxpayer fails to so proceed, the order
shall, within thirty (30) days from the date a certified copy
thereof is mailed to the taxpayer, become final. The provisions of
Section 226 of this title shall not apply where a proposed
assessment or an assessment of taxes has been permitted to become
final.
H. In all instances where the proposed assessment or the
assessment of taxes or additional taxes has been permitted to become
final, a certified copy of the assessment may be filed in the office
of the county clerk of any county in this state, and upon being so
filed, the county clerk shall enter same upon the judgment docket in
the same manner as provided for in connection with judgments of
district courts. When an assessment is so filed and docketed, it
shall have the same force and be subject to the same law as a
judgment of the district court, and accordingly it shall constitute
a lien on any real estate of the taxpayer located in the county
wherein filed; and execution may issue and proceedings in aid of
execution may be had the same as on judgments of district courts.
Such lien is hereby released and extinguished upon the payment of
such assessment, or, except as otherwise provided herein, upon the
expiration of ten (10) years after the date upon which the
assessment was filed in the office of the county clerk; provided,
the Tax Commission may, prior to the release and extinguishment of
such lien, refile the assessment one time in the office of the
county clerk. An assessment so refiled shall continue the lien
until payment of the assessment, or upon the expiration of ten (10)
years after the date upon which the assessment was refiled in the
office of the county clerk. The remedies provided in this
subsection shall be in addition to other remedies provided by law.
All active liens evidenced by an assessment filed with a county
clerk's office prior to November 1, 1989, shall be released and
ENR. H. B. NO. 1279 Page 5
extinguished if the assessment is not refiled prior to November 1,
2001.
I. In order to make more definite the intention of the
Legislature in connection with the applicability or lack of
applicability of the refund provisions of the tax statutes to those
treating with proposed assessments and assessments that have become
final, the Legislature being cognizant of the fact that such intent
has been questioned, it is declared to be the intent of the
Legislature that the refund provisions shall be without application
to taxes where the amount thereof has been determined by an
assessment, other than an assessment designated as an "office
audit", that has become final.
J. Within fifteen (15) days after electronic notification of
the denial of a tax credit authorized by Section 28-101 of Title 70
of the Oklahoma Statutes, a taxpayer may file with the Tax
Commission a written protest under oath, signed by the taxpayer or
the taxpayer’s duly authorized agent, on such a form as the Tax
Commission may prescribe. If the taxpayer fails to file a written
protest within the fifteen-day period, then the denial shall become
final and absolute.
1. If in such timely written protest the taxpayer shall request
an oral hearing, the Tax Commission shall set a date for hearing
upon the protest. The Tax Commission shall, by written notice,
advise the taxpayer of the time and place of the hearing, which
shall not be less than ten (10) days from the date of mailing of
such written notice, when such taxpayer may appear before the Tax
Commission and present arguments and evidence, oral or written, in
support of the protest.
2. Within sixty (60) days after the written protest is filed,
the Tax Commission shall make and enter an order in writing in which
it shall set forth the disposition made of the protest and a copy of
such order shall forthwith be mailed to the taxpayer. The order
shall contain findings of fact and conclusions of law. The taxpayer
may appeal the order within the time and in the manner provided for
by Section 225 of this title, but in the event the taxpayer fails to
so proceed, the order shall, within thirty (30) days from the date a
certified copy thereof is mailed to the taxpayer, become final.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
ENR. H. B. NO. 1279 Page 6
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. H. B. NO. 1279 Page 7
Passed the House of Representatives the 10th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the 28th day of April, 2025.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________