Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1412 By: Pederson
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6 AS INTRODUCED
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7 An Act relating to income tax; amending 68 O.S. 2021,
7 Section 2373, as amended by Section 9, Chapter 113,
8 O.S.L. 2023, and 2385.16 (68 O.S. Supp. 2025, Section
8 2373), which relate to the deposit of payments and
9 payment of refunds; requiring the Oklahoma Tax
9 Commission to pay certain refunds by check; removing
10 authorization to implement card-based disbursement to
10 issue refunds; updating statutory language; updating
11 statutory references; and providing an effective
11 date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2373, as
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16 amended by Section 9, Chapter 113, O.S.L. 2023 (68 O.S. Supp. 2025,
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17 Section 2373), is amended to read as follows:
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18 Section 2373. A. Any claim for refund filed pursuant to this
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19 section must be made on a return, in the form prescribed by the
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20 Oklahoma Tax Commission.
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21 B. Any claim for refund of an overpayment of any tax imposed by
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22 Section 2355 of this title must be made within three (3) years from
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23 the due date of the return, including the period of any extension of
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24 time for filing a return, or two (2) years from the payment of the
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Req. No. 2443 Page 1
1 tax liability, whichever of such periods expires later, or if no
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2 return was filed by the taxpayer, within two (2) years from the time
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3 the tax was paid.
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4 C. Except as provided in subsection H of Section 2375 of this
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5 title, no refund shall be allowed or made after the expiration of
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6 the period of limitation prescribed in subsection B of this section
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7 for the filing of a claim for refund, unless a claim for refund is
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8 filed by the taxpayer within such period. If a claim for refund is
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9 filed during the period prescribed in subsection B of this section,
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10 the amount of the refund, if any, shall not exceed the amount of tax
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11 paid within the period, immediately preceding the filing of the
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12 claim, equal to three (3) years plus the period of any extension of
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13 time for filing a return. If the claim was not filed within the
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14 three (3) year three-year period prescribed in subsection B of this
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15 section, the refund shall not exceed the portion of the tax paid
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16 during the two (2) years immediately preceding the filing of the
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17 claim.
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18 D. If, upon any revision or adjustment, including overpayment
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19 or illegal payment on account of income derived from tax-exempt
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20 Indian land, any refund is found to be due any taxpayer, it shall be
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21 paid out of the "Income Income Tax Withholding Refund Account"
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22 Account, created by Section 2385.16 of this title, in the same
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23 manner as refunds are paid pursuant to such section.
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Req. No. 2443 Page 2
1 E. The three-year limitation set forth in subsection C of this
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2 section shall not apply to the amount of refunds payable upon claims
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3 filed by members of federally recognized Indian tribes or the United
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4 States on behalf of its Indian wards or former Indian wards, to
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5 recover taxes illegally collected from tax-exempt lands. In the
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6 case of any refund to a member of a federally recognized Indian
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7 tribe or to the United States on behalf of its Indian wards or
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8 former Indian wards, to recover taxes illegally collected on bonus
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9 payments from oil and gas leases located on tax-exempt Indian lands
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10 pursuant to this section, the Tax Commission shall pay interest on
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11 all refunds issued after January 1, 1996, at the rate of six percent
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12 (6%) per annum from the date of payment by the taxpayer to the date
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13 of the refund.
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14 F. In cases that the Tax Commission and the taxpayer have
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15 signed a consent, as provided by law, extending the period during
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16 which the tax may be assessed, the period during which the taxpayer
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17 may file a claim for refund or during which an allowance for a
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18 refund may be made shall be automatically extended to the final date
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19 fixed by such consent plus thirty (30) days.
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20 G. The Oklahoma Tax Commission may authorize the use of direct
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21 deposit in lieu of refund checks for electronically filed income tax
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22 returns. All refunds due to taxpayers electing not to use direct
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23 deposit shall be paid by refund checks.
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Req. No. 2443 Page 3
1 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2385.16, is
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2 amended to read as follows:
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3 Section 2385.16. A. All payments received by the Oklahoma Tax
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4 Commission transmitted by employers for taxes withheld from
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5 employees and all payments received by the Tax Commission from
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6 taxpayers as herein provided shall be deposited with the State
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7 Treasurer in the Tax Commission's Official Depository Clearing
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8 Account and be designated Income Tax Withholding Funds. These funds
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9 shall be under the exclusive control of the Tax Commission. The Tax
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10 Commission is empowered and directed each month to transfer the
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11 amount thereof which the Tax Commission estimates to be necessary to
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12 make tax refunds to a separate account designated as the Income Tax
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13 Withholding Refund Account, and to make apportionments from such
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14 funds remaining in the Official Depository Clearing Account, of the
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15 amount it considers available for distribution as income taxes
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16 collected. The Tax Commission shall maintain a balance in the
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17 refund account sufficient to cover anticipated tax refunds.
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18 All warrants drawn against such refund account as provided in
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19 the preceding this subsection which are not presented for payment
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20 within ninety (90) days of issuance thereof shall be void.
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21 Persons entitled to refunds of monies represented by warrants
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22 which are not presented for payment within ninety (90) days from the
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23 date of issuance thereof may file claims for refund at any time
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24 within three (3) years from the due date of the return. Such claims
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Req. No. 2443 Page 4
1 shall be filed and paid under the provisions of Section 2373 of this
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2 Code title, and if allowed shall be paid under the provisions of
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3 such section. An income tax refund warrant which was not presented
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4 for payment within ninety (90) days from the date of issuance or
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5 reissued for a like amount up to three (3) years from the date of
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6 issuance of the original warrant shall be subject to reporting and
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7 remittance to the Oklahoma State Treasurer pursuant to the Uniform
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8 Unclaimed Property Act.
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9 B. Neither the Tax Commission nor any member or employee
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10 thereof shall be held personally liable for making any refund by
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11 reason of a fraudulent withholding certificate being used as a basis
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12 for such refund.
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13 C. The Oklahoma Tax Commission may use a direct deposit system
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14 and card-based disbursement system in lieu of checks or warrants for
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15 the purposes of issuing refunds for overpayment of individual income
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16 taxes. Notwithstanding the provisions of Section 205 of this title,
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17 the Tax Commission may enter into a contract with, and release
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18 taxpayer information to, entities deemed to be qualified by the Tax
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19 Commission to implement the card-based disbursement system.
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20 SECTION 3. This act shall become effective November 1, 2026.
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22 60-2-2443 QD 1/1/2026 12:03:03 AM
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Req. No. 2443 Page 5Every fact on this page links to its source, starting with the official bill record.