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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1412 By: Pederson
AS INTRODUCED
An Act relating to income tax; amending 68 O.S. 2021,
Section 2373, as amended by Section 9, Chapter 113,
O.S.L. 2023, and 2385.16 (68 O.S. Supp. 2025, Section
2373), which relate to the deposit of payments and
payment of refunds; requiring the Oklahoma Tax
Commission to pay certain refunds by check; removing
authorization to implement card-based disbursement to
issue refunds; updating statutory language; updating
statutory references; and providing an effective
date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2373, as
amended by Section 9, Chapter 113, O.S.L. 2023 (68 O.S. Supp. 2025,
Section 2373), is amended to read as follows:
Section 2373. A. Any claim for refund filed pursuant to this
section must be made on a return, in the form prescribed by the
Oklahoma Tax Commission.
B. Any claim for refund of an overpayment of any tax imposed by
Section 2355 of this title must be made within three (3) years from
the due date of the return, including the period of any extension of
time for filing a return, or two (2) years from the payment of the
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tax liability, whichever of such periods expires later, or if no
return was filed by the taxpayer, within two (2) years from the time
the tax was paid.
C. Except as provided in subsection H of Section 2375 of this
title, no refund shall be allowed or made after the expiration of
the period of limitation prescribed in subsection B of this section
for the filing of a claim for refund, unless a claim for refund is
filed by the taxpayer within such period. If a claim for refund is
filed during the period prescribed in subsection B of this section,
the amount of the refund, if any, shall not exceed the amount of tax
paid within the period, immediately preceding the filing of the
claim, equal to three (3) years plus the period of any extension of
time for filing a return. If the claim was not filed within the
three (3) year three-year period prescribed in subsection B of this
section, the refund shall not exceed the portion of the tax paid
during the two (2) years immediately preceding the filing of the
claim.
D. If, upon any revision or adjustment, including overpayment
or illegal payment on account of income derived from tax-exempt
Indian land, any refund is found to be due any taxpayer, it shall be
paid out of the “Income Income Tax Withholding Refund Account”
Account, created by Section 2385.16 of this title, in the same
manner as refunds are paid pursuant to such section.
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E. The three-year limitation set forth in subsection C of this
section shall not apply to the amount of refunds payable upon claims
filed by members of federally recognized Indian tribes or the United
States on behalf of its Indian wards or former Indian wards, to
recover taxes illegally collected from tax-exempt lands. In the
case of any refund to a member of a federally recognized Indian
tribe or to the United States on behalf of its Indian wards or
former Indian wards, to recover taxes illegally collected on bonus
payments from oil and gas leases located on tax-exempt Indian lands
pursuant to this section, the Tax Commission shall pay interest on
all refunds issued after January 1, 1996, at the rate of six percent
(6%) per annum from the date of payment by the taxpayer to the date
of the refund.
F. In cases that the Tax Commission and the taxpayer have
signed a consent, as provided by law, extending the period during
which the tax may be assessed, the period during which the taxpayer
may file a claim for refund or during which an allowance for a
refund may be made shall be automatically extended to the final date
fixed by such consent plus thirty (30) days.
G. The Oklahoma Tax Commission may authorize the use of direct
deposit in lieu of refund checks for electronically filed income tax
returns. All refunds due to taxpayers electing not to use direct
deposit shall be paid by refund checks.
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SECTION 2. AMENDATORY 68 O.S. 2021, Section 2385.16, is
amended to read as follows:
Section 2385.16. A. All payments received by the Oklahoma Tax
Commission transmitted by employers for taxes withheld from
employees and all payments received by the Tax Commission from
taxpayers as herein provided shall be deposited with the State
Treasurer in the Tax Commission’s Official Depository Clearing
Account and be designated Income Tax Withholding Funds. These funds
shall be under the exclusive control of the Tax Commission. The Tax
Commission is empowered and directed each month to transfer the
amount thereof which the Tax Commission estimates to be necessary to
make tax refunds to a separate account designated as the Income Tax
Withholding Refund Account, and to make apportionments from such
funds remaining in the Official Depository Clearing Account, of the
amount it considers available for distribution as income taxes
collected. The Tax Commission shall maintain a balance in the
refund account sufficient to cover anticipated tax refunds.
All warrants drawn against such refund account as provided in
the preceding this subsection which are not presented for payment
within ninety (90) days of issuance thereof shall be void.
Persons entitled to refunds of monies represented by warrants
which are not presented for payment within ninety (90) days from the
date of issuance thereof may file claims for refund at any time
within three (3) years from the due date of the return. Such claims
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shall be filed and paid under the provisions of Section 2373 of this
Code title, and if allowed shall be paid under the provisions of
such section. An income tax refund warrant which was not presented
for payment within ninety (90) days from the date of issuance or
reissued for a like amount up to three (3) years from the date of
issuance of the original warrant shall be subject to reporting and
remittance to the Oklahoma State Treasurer pursuant to the Uniform
Unclaimed Property Act.
B. Neither the Tax Commission nor any member or employee
thereof shall be held personally liable for making any refund by
reason of a fraudulent withholding certificate being used as a basis
for such refund.
C. The Oklahoma Tax Commission may use a direct deposit system
and card-based disbursement system in lieu of checks or warrants for
the purposes of issuing refunds for overpayment of individual income
taxes. Notwithstanding the provisions of Section 205 of this title,
the Tax Commission may enter into a contract with, and release
taxpayer information to, entities deemed to be qualified by the Tax
Commission to implement the card-based disbursement system.
SECTION 3. This act shall become effective November 1, 2026.
60-2-2443 QD 1/1/2026 12:03:03 AM