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 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 583 By: Rader
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6 AS INTRODUCED
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7 An Act relating to sales tax; amending 68 O.S. 2021,
7 Section 1368.3, which relates to noncompliant
8 taxpayer; modifying definition; expanding certain
8 requirements to avoid closure of business and provide
9 defense to the closure of business; and providing an
9 effective date.
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12 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1368.3, is
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14 amended to read as follows:
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15 Section 1368.3. A. As used in this section, "noncompliant
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16 taxpayer" means any taxpayer operating under a sales tax permit who,
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17 within any consecutive twenty-four-month period, has failed to
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18 timely file two reports or timely remit tax due for any two (2)
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19 months, as required under the provisions of any tax law. Provided,
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20 a taxpayer shall not be deemed noncompliant for nonpayment of income
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21 taxes.
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22 B. In addition to all other remedies provided by law for the
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23 collection of unpaid taxes, the Oklahoma Tax Commission may close
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24 the business of a noncompliant taxpayer, subject to the
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Req. No. 732 Page 1
1 administrative and judicial appeal procedures provided in this
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2 section, if the noncompliant taxpayer, within any consecutive
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3 twenty-four-month period, fails to timely file three reports or
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4 timely remit tax due for any three (3) months, as required under the
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5 provisions of any tax law.
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6 C. 1. The Tax Commission shall give notice to a noncompliant
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7 taxpayer that the third delinquency in reporting or remitting tax in
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8 any consecutive twenty-four-month period will result in the closure
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9 of the business. The notice must be in writing and delivered to the
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10 noncompliant taxpayer by the United States Postal Service or by hand
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11 delivery.
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12 2. If the noncompliant taxpayer has a third delinquency in
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13 reporting or remitting tax in any consecutive twenty-four-month
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14 period after the issuance of the notice provided in paragraph 1 of
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15 this subsection, the Tax Commission shall notify the noncompliant
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16 taxpayer by certified mail or by hand delivery that the business
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17 will be closed within five (5) business days from the date of the
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18 delivery or attempted delivery of the notice unless the noncompliant
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19 taxpayer makes arrangements with the Tax Commission to satisfy the
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20 tax delinquency. When the fifth day falls on a Saturday, Sunday, or
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21 legal holiday, the performance of the act is considered timely if it
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22 is performed on the next succeeding business day that is not a
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23 Saturday, Sunday, or legal holiday.
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1 D. A noncompliant taxpayer may avoid closure of the business
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2 by:
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3 1. Filing all delinquent reports and remitting the delinquent
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4 tax including any interest and penalty; or
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5 2. a. Entering into a payment agreement approved by the Tax
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6 Commission to satisfy the tax delinquency, and
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7 b. Filing all required reports and remitting all taxes
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8 due for a consecutive twenty-four-month period.
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9 E. The decision to close the business of a noncompliant
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10 taxpayer will be final and absolute if the noncompliant taxpayer
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11 fails to request an administrative hearing as provided in subsection
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12 F of this section.
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13 F. 1. A noncompliant taxpayer may request an administrative
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14 hearing concerning the decision of the Tax Commission to close the
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15 business of a noncompliant taxpayer by filing with the Tax
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16 Commission a written protest, signed by the noncompliant taxpayer or
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17 the authorized agent of the noncompliant taxpayer, stating the
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18 reasons for opposing the closure of the business and requesting an
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19 administrative hearing. The protest shall be timely if filed within
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20 five (5) business days after the delivery or attempted delivery of
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21 the notice required by paragraph 2 of subsection C of this section.
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22 2. A noncompliant taxpayer may request that an administrative
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23 hearing be held in person, by telephone, upon written documents
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24 furnished by the noncompliant taxpayer, or upon written documents
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1 and any evidence produced by the noncompliant taxpayer at an
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2 administrative hearing. The Tax Commission shall have the
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3 discretion to determine whether an administrative hearing at which
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4 testimony is to be presented will be conducted in person or by
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5 telephone. A noncompliant taxpayer who requests an administrative
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6 hearing based upon written documents is not entitled to any other
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7 administrative hearing prior to the date a decision is rendered by
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8 the hearing officer.
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9 3. The administrative hearing will be conducted by a hearing
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10 officer appointed by the Tax Commission. The hearing officer will
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11 set the time and place for a hearing and will give the noncompliant
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12 taxpayer notice of the hearing. The noncompliant taxpayer may be
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13 represented by an authorized representative and may present evidence
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14 in support of the position of the noncompliant taxpayer.
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15 4. The administrative hearing will be held within fourteen (14)
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16 calendar days of receipt by the Tax Commission of the request for
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17 hearing, as required in paragraph 1 of this subsection. The Tax
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18 Commission shall give the noncompliant taxpayer at least five (5)
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19 days' notice of the hearing.
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20 G. The defense or defenses to the closure of a business under
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21 this section include written proof that the noncompliant taxpayer:
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22 1. Filed all delinquent returns and paid the delinquent tax due
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23 including interest and penalty; or
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1 2. a. Has entered into a written payment agreement, approved
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2 by the Tax Commission prior to the hearing, to satisfy
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3 the tax delinquency, and
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4 b. Has had no more than three (3) instances of untimely
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5 filed reports or late tax remittances during a
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6 consecutive twenty-four-month period.
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7 H. 1. The decision of the hearing officer must be rendered in
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8 writing with copies delivered to the noncompliant taxpayer by the
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9 United States Postal Service or by hand delivery.
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10 2. If the decision of the hearing officer is to affirm the
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11 closure of the business, the decision shall be submitted in writing
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12 and delivered by the United States Postal Service or by hand to the
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13 noncompliant taxpayer.
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14 3. The noncompliant taxpayer may seek judicial relief from the
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15 decision of a hearing officer as provided in Section 225 of Title 68
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16 of the Oklahoma Statutes for relief from a final order of the Tax
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17 Commission.
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18 I. The procedures established by this section are the sole
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19 methods for seeking relief from a written decision to close the
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20 business of a noncompliant taxpayer.
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21 J. After being given notice of an order of closure of a
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22 business pursuant to this section, it shall be unlawful for any
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23 person to continue to operate the business. If a person continues
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24 or threatens to continue the unlawful operation of the business
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Req. No. 732 Page 5
1 after having received proper notice of the closure, upon complaint
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2 of the Tax Commission, the person shall be enjoined from further
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3 operating or conducting the unlawful business. In all cases where
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4 injunction proceedings are brought under this subsection, the Tax
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5 Commission shall not be required to furnish bond. Where notice of
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6 closure has been given in accordance with the provisions of this
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7 section, no further notice shall be required before the issuance of
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8 a temporary restraining order.
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9 K. If a noncompliant taxpayer fails to timely seek
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10 administrative or judicial review of a business closure decision
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11 pursuant to this section, or if the business closure decision is
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12 affirmed after administrative or judicial review, the Tax Commission
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13 shall affix a written notice to all entrances of the business that:
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14 1. Identifies the business as being subject to a business
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15 closure order; and
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16 2. States that the business is prohibited from further
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17 operation.
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18 SECTION 2. This act shall become effective November 1, 2025.
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20 60-1-732 QD 1/19/2025 5:39:13 AM
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Req. No. 732 Page 6Every fact on this page links to its source, starting with the official bill record.