1| SENATE FLOOR VERSION |
| April 18, 2024 |
2| |
| |
3|COMMITTEE SUBSTITUTE |
|FOR ENGROSSED |
4|HOUSE BILL NO. 3388 By: McCall of the House |
| |
5| and |
| |
6| Treat of the Senate |
| |
7| |
| |
8| |
| |
9| An Act relating to income tax credit; amending 68 |
| O.S. 2021, Section 205.2, which relates to claims for |
10| deduction of refund; prohibiting claims for deduction |
| from certain tax credit; amending 68 O.S. 2021, |
11| Section 2358, as amended by Section 1, Chapter 377, |
| O.S.L. 2022 (68 O.S. Supp. 2023, Section 2358), which |
12| relates to adjustments to arrive at taxable income; |
| providing exemption for certain tax credits received; |
13| amending Section 2, Chapter 278, O.S.L. 2023 (70 O.S. |
| Supp. 2023, Section 28-101), which relates to |
14| parental choice tax credits; modifying definitions; |
| modifying income limitations; allowing certain credit |
15| to qualifying students; establishing credit amount |
| for private schools serving certain student |
16| populations; prohibiting the use of tax credit to |
| offset certain accrued liabilities; modifying annual |
17| credit limitations; prescribing enforcement of |
| certain annual liability; prescribing application |
18| period; requiring credits and payments to be |
| allocated prior to the school year; exempting certain |
19| eligible taxpayers from providing additional income |
| verification; providing deadline to receive priority |
20| consideration; providing for prorated credit; |
| requiring certain notification; allowing certain |
21| reallocation of credits; updating statutory |
| references; updating statutory language; and |
22| declaring an emergency. |
| |
23| |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 1
___________________________________________________________________________
1|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
| |
2| SECTION 1. AMENDATORY 68 O.S. 2021, Section 205.2, is |
| |
3|amended to read as follows: |
| |
4| Section 205.2. A. For purposes of this section, a "qualified |
| |
5|entity" shall mean a: |
| |
6| 1. State agency; |
| |
7| 2. Municipal court; |
| |
8| 3. District court; |
| |
9| 4. Public housing authority operating pursuant to Section 1062 |
| |
10|of Title 63 of the Oklahoma Statutes; |
| |
11| 5. District attorney seeking to collect unpaid court-ordered |
| |
12|monetary obligations; or |
| |
13| 6. The designee of an entity described in paragraphs 1 through |
| |
14|5 of this subsection. |
| |
15| B. A qualified entity seeking to collect a debt, unpaid |
| |
16|municipal or district court fines and costs or final judgment of at |
| |
17|least Fifty Dollars ($50.00) from an individual who has filed a |
| |
18|state income tax return may file a claim with the Oklahoma Tax |
| |
19|Commission requesting that the amount owed to the qualified entity |
| |
20|be deducted from any state income tax refund due to that individual. |
| |
21| The claim shall be filed electronically in a form prescribed by the |
| |
22|Tax Commission and shall contain information necessary to identify |
| |
23|the person owing the debt, including the full name and Social |
| |
24|Security number of the debtor. |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 2
___________________________________________________________________________
1| 1. Upon receiving a claim from a qualified entity, the Tax |
| |
2|Commission shall deduct the claim amount, plus collection expenses |
| |
3|as provided in this section, from the tax refund due to the debtor |
| |
4|and transfer the amount to the qualified entity. Provided, the Tax |
| |
5|Commission need not report available funds of less than Fifty |
| |
6|Dollars ($50.00). |
| |
7| 2. The qualified entity shall send notice to the debtor by |
| |
8|regular mail at the last-known address of the debtor as shown by the |
| |
9|records of the Tax Commission when seeking to collect a debt not |
| |
10|reduced to final judgment. The qualified entity shall send notice |
| |
11|to the judgment debtor or defendant by first-class mail at the |
| |
12|last-known address of the judgment debtor or defendant as shown by |
| |
13|the records of the Tax Commission when seeking to collect a final |
| |
14|judgment or unpaid court fines and costs. The Tax Commission shall |
| |
15|provide in an agreed electronic format to the Department of Human |
| |
16|Services the amount withheld by the Tax Commission, the home address |
| |
17|and the Social Security number of the taxpayer. The notice shall |
| |
18|state: |
| |
19| a. that a claim has been filed with the Tax Commission |
| |
20| for any portion of the tax refund due to the debtor or |
| |
21| defendant which would satisfy the debt, unpaid court |
| |
22| fines and costs, or final judgment in full or in part, |
| |
23| b. the basis for the claim, |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 3
___________________________________________________________________________
1| c. that the Tax Commission has deducted an amount from |
| |
2| the refund and remitted it to such qualified entity, |
| |
3| d. that the debtor or defendant has the right to contest |
| |
4| the claim by sending a written request to the |
| |
5| qualified entity for a hearing to protest the claim, |
| |
6| and if the debtor or defendant fails to apply for a |
| |
7| hearing within sixty (60) days after the date of the |
| |
8| mailing of the notice, the debtor or defendant shall |
| |
9| be deemed to have waived his or her opportunity to |
| |
10| contest the claim. Provided, if the claim was filed |
| |
11| by the Department of Human Services, the notice shall |
| |
12| state that the debtor must contest the claim by |
| |
13| sending a written request to the Department within |
| |
14| thirty (30) days after the date of the mailing of the |
| |
15| notice, and |
| |
16| e. that a collection expense of five percent (5%) of the |
| |
17| gross proceeds owed to the qualified entity has been |
| |
18| charged to the debtor or defendant and withheld from |
| |
19| the refund. |
| |
20| 3. If the qualified entity determines that a refund is due to |
| |
21|the taxpayer, the qualified entity shall reimburse the amount |
| |
22|claimed plus the five-percent collection expense to the taxpayer. |
| |
23|The qualified entity may request reimbursement of the two-percent |
| |
24|collection expense retained by the Tax Commission. Such request |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 4
___________________________________________________________________________
1|must be made within ninety (90) days of reimbursement to the |
| |
2|taxpayer. If timely requested, the Tax Commission shall make such |
| |
3|reimbursement to the qualified entity within ninety (90) days of the |
| |
4|request. |
| |
5| 4. In the case of a joint return, the notice shall state: |
| |
6| a. the name of any taxpayer named in the return against |
| |
7| whom no debt, no unpaid court fines and costs, or |
| |
8| final judgment is claimed, |
| |
9| b. the fact that a debt, unpaid court fines and costs, or |
| |
10| final judgment is not claimed against the taxpayer, |
| |
11| c. the fact that the taxpayer is entitled to receive a |
| |
12| refund if it is due regardless of the debt, court |
| |
13| fines and costs, or final judgment asserted against |
| |
14| the debtor or defendant, |
| |
15| d. that in order to obtain the refund due, the taxpayer |
| |
16| must apply, in writing, for a hearing with the |
| |
17| qualified entity named in the notice within sixty (60) |
| |
18| days after the date of the mailing of the notice. |
| |
19| Provided, if the claim was filed by the Department of |
| |
20| Human Services, the notice shall state that the |
| |
21| taxpayer must apply, in writing, for a hearing with |
| |
22| the Department within thirty (30) days after the date |
| |
23| of the mailing of the notice, and |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 5
___________________________________________________________________________
1| e. if the taxpayer against whom no debt, no unpaid court |
| |
2| fines and costs, or final judgment is claimed fails to |
| |
3| apply in writing for a hearing within sixty (60) days |
| |
4| after the mailing of the notice, the taxpayer shall |
| |
5| have waived his or her right to a refund. Provided, |
| |
6| if the claim was filed by the Department of Human |
| |
7| Services, the notice shall state that if the taxpayer |
| |
8| fails to apply in writing for a hearing with the |
| |
9| Department within thirty (30) days after the date of |
| |
10| the mailing of the notice, the taxpayer shall have |
| |
11| waived his or her right to a refund. |
| |
12| C. If the qualified entity asserting the claim receives a |
| |
13|written request for a hearing from the debtor or taxpayer against |
| |
14|whom no debt, no court fines and costs, or final judgment is |
| |
15|claimed, the qualified entity shall grant a hearing according to the |
| |
16|provisions of the Administrative Procedures Act. It shall be |
| |
17|determined at the hearing whether the claimed sum is correct or |
| |
18|whether an adjustment to the claim shall be made. Pending final |
| |
19|determination at the hearing of the validity of the debt, unpaid |
| |
20|court fines and costs, or final judgment asserted by the qualified |
| |
21|entity, no action shall be taken in furtherance of the collection of |
| |
22|the debt, unpaid court fines and costs, or final judgment. Appeals |
| |
23|from actions taken at the hearing shall be in accordance with the |
| |
24|provisions of the Administrative Procedures Act. |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 6
___________________________________________________________________________
1| D. Upon final determination at a hearing, as provided for in |
| |
2|subsection C of this section, of the amount of the debt, unpaid |
| |
3|court fines and costs, or final judgment, or upon failure of the |
| |
4|debtor or taxpayer against whom no debt, no unpaid court fines and |
| |
5|costs, or final judgment is claimed to request such a hearing, the |
| |
6|qualified entity shall apply the amount of the claim to the debt |
| |
7|owed. Any amounts held by the qualified entity in excess of the |
| |
8|final determination of the debt and collection expense shall be |
| |
9|refunded by the qualified entity to the taxpayer. However, if the |
| |
10|tax refund due is inadequate to pay the collection expense and debt, |
| |
11|unpaid court fines and costs, or final judgment, the balance due the |
| |
12|qualified entity shall be a continuing debt or final judgment until |
| |
13|paid in full. |
| |
14| E. Upon receipt of a claim as provided in subsection A of this |
| |
15|section, the Tax Commission shall: |
| |
16| 1. Deduct from the refund five percent (5%) of the gross |
| |
17|proceeds owed to the qualified entity, and distribute it by |
| |
18|retaining two percent (2%) and transferring three percent (3%) to |
| |
19|the qualified entity, as an expense of collection. The two percent |
| |
20|(2%) retained by the Tax Commission shall be deposited in the |
| |
21|Oklahoma Tax Commission Fund; |
| |
22| 2. Transfer the amount of the claimed debt, unpaid court fines |
| |
23|and costs, or final judgment or so much thereof as is available to |
| |
24|the qualified entity; |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 7
___________________________________________________________________________
1| 3. Notify the debtor in writing as to how the refund was |
| |
2|applied; and |
| |
3| 4. Refund to the debtor any balance remaining after deducting |
| |
4|the collection expense and debt, unpaid court fines and costs, or |
| |
5|final judgment. |
| |
6| F. The Tax Commission shall deduct from any state tax refund |
| |
7|due to a taxpayer the amount of delinquent state tax and penalty and |
| |
8|interest thereon, which such taxpayer owes pursuant to any state tax |
| |
9|law prior to payment of such refund. |
| |
10| G. The Tax Commission shall have first priority over all other |
| |
11|qualified entities when the Tax Commission is collecting a debt, |
| |
12|court fines and costs, or final judgment pursuant to the provisions |
| |
13|of this section. Subsequent to the Tax Commission priority, a claim |
| |
14|filed by the Department of Human Services for the collection of |
| |
15|child support and spousal support shall have priority over all other |
| |
16|claims filed pursuant to this section. Priority in multiple claims |
| |
17|by other qualified entities pursuant to the provisions of this |
| |
18|section shall be in the order in time in which the Tax Commission |
| |
19|receives the claim from the qualified entities required by the |
| |
20|provisions of subsection B of this section. |
| |
21| H. The Tax Commission shall prescribe or approve forms and |
| |
22|promulgate rules and regulations for implementing the provisions of |
| |
23|this section. |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 8
___________________________________________________________________________
1| I. The information obtained by a qualified entity from the Tax |
| |
2|Commission pursuant to the provisions of this section shall be used |
| |
3|only to aid in collection of the debt, unpaid court fines and costs, |
| |
4|or final judgment owed to the qualified entity. Disclosure of the |
| |
5|information for any other purpose shall constitute a misdemeanor. |
| |
6|Any employee of a qualified entity or person convicted of violating |
| |
7|this provision shall be subject to a fine not exceeding One Thousand |
| |
8|Dollars ($1,000.00) or imprisonment in the county jail for a term |
| |
9|not exceeding one (1) year, or both fine and imprisonment and, if |
| |
10|still employed by the qualified entity, shall be dismissed from |
| |
11|employment. |
| |
12| J. The Tax Commission may employ the procedures provided by |
| |
13|this section in order to collect a debt owed to the Internal Revenue |
| |
14|Service if the Internal Revenue Service requires such procedure as a |
| |
15|condition to providing information to the Commission concerning |
| |
16|federal income tax. |
| |
17| K. The provisions of this section shall not apply to claims |
| |
18|filed under the provisions of Section 2906 or Section 5011 of this |
| |
19|title or Section 28-101 of Title 70. |
| |
20| SECTION 2. AMENDATORY 68 O.S. 2021, Section 2358, as |
| |
21|amended by Section 1, Chapter 377, O.S.L. 2022 (68 O.S. Supp. 2023, |
| |
22|Section 2358), is amended to read as follows: |
| |
23| Section 2358. For all tax years beginning after December 31, |
| |
24|1981, taxable income and adjusted gross income shall be adjusted to |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 9
___________________________________________________________________________
1|arrive at Oklahoma taxable income and Oklahoma adjusted gross income |
| |
2|as required by this section. |
| |
3| A. The taxable income of any taxpayer shall be adjusted to |
| |
4|arrive at Oklahoma taxable income for corporations and Oklahoma |
| |
5|adjusted gross income for individuals, as follows: |
| |
6| 1. There shall be added interest income on obligations of any |
| |
7|state or political subdivision thereto which is not otherwise |
| |
8|exempted pursuant to other laws of this state, to the extent that |
| |
9|such interest is not included in taxable income and adjusted gross |
| |
10|income. |
| |
11| 2. There shall be deducted amounts included in such income that |
| |
12|the state is prohibited from taxing because of the provisions of the |
| |
13|Federal Constitution, the State Constitution, federal laws or laws |
| |
14|of Oklahoma. |
| |
15| 3. The amount of any federal net operating loss deduction shall |
| |
16|be adjusted as follows: |
| |
17| a. For carryovers and carrybacks to taxable years |
| |
18| beginning before January 1, 1981, the amount of any |
| |
19| net operating loss deduction allowed to a taxpayer for |
| |
20| federal income tax purposes shall be reduced to an |
| |
21| amount which is the same portion thereof as the loss |
| |
22| from sources within this state, as determined pursuant |
| |
23| to this section and Section 2362 of this title, for |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 10
___________________________________________________________________________
1| the taxable year in which such loss is sustained is of |
| |
2| the total loss for such year; |
| |
3| b. For carryovers and carrybacks to taxable years |
| |
4| beginning after December 31, 1980, the amount of any |
| |
5| net operating loss deduction allowed for the taxable |
| |
6| year shall be an amount equal to the aggregate of the |
| |
7| Oklahoma net operating loss carryovers and carrybacks |
| |
8| to such year. Oklahoma net operating losses shall be |
| |
9| separately determined by reference to Section 172 of |
| |
10| the Internal Revenue Code, 26 U.S.C., Section 172, as |
| |
11| modified by the Oklahoma Income Tax Act, Section 2351 |
| |
12| et seq. of this title, and shall be allowed without |
| |
13| regard to the existence of a federal net operating |
| |
14| loss. For tax years beginning after December 31, |
| |
15| 2000, and ending before January 1, 2008, the years to |
| |
16| which such losses may be carried shall be determined |
| |
17| solely by reference to Section 172 of the Internal |
| |
18| Revenue Code, 26 U.S.C., Section 172, with the |
| |
19| exception that the terms "net operating loss" and |
| |
20| "taxable income" shall be replaced with "Oklahoma net |
| |
21| operating loss" and "Oklahoma taxable income". For |
| |
22| tax years beginning after December 31, 2007, and |
| |
23| ending before January 1, 2009, years to which such |
| |
24| losses may be carried back shall be limited to two (2) |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 11
___________________________________________________________________________
1| years. For tax years beginning after December 31, |
| |
2| 2008, the years to which such losses may be carried |
| |
3| back shall be determined solely by reference to |
| |
4| Section 172 of the Internal Revenue Code, 26 U.S.C., |
| |
5| Section 172, with the exception that the terms "net |
| |
6| operating loss" and "taxable income" shall be replaced |
| |
7| with "Oklahoma net operating loss" and "Oklahoma |
| |
8| taxable income". |
| |
9| 4. Items of the following nature shall be allocated as |
| |
10|indicated. Allowable deductions attributable to items separately |
| |
11|allocable in subparagraphs a, b and c of this paragraph, whether or |
| |
12|not such items of income were actually received, shall be allocated |
| |
13|on the same basis as those items: |
| |
14| a. Income from real and tangible personal property, such |
| |
15| as rents, oil and mining production or royalties, and |
| |
16| gains or losses from sales of such property, shall be |
| |
17| allocated in accordance with the situs of such |
| |
18| property; |
| |
19| b. Income from intangible personal property, such as |
| |
20| interest, dividends, patent or copyright royalties, |
| |
21| and gains or losses from sales of such property, shall |
| |
22| be allocated in accordance with the domiciliary situs |
| |
23| of the taxpayer, except that: |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 12
___________________________________________________________________________
1| (1) where such property has acquired a nonunitary |
| |
2| business or commercial situs apart from the |
| |
3| domicile of the taxpayer such income shall be |
| |
4| allocated in accordance with such business or |
| |
5| commercial situs; interest income from |
| |
6| investments held to generate working capital for |
| |
7| a unitary business enterprise shall be included |
| |
8| in apportionable income; a resident trust or |
| |
9| resident estate shall be treated as having a |
| |
10| separate commercial or business situs insofar as |
| |
11| undistributed income is concerned, but shall not |
| |
12| be treated as having a separate commercial or |
| |
13| business situs insofar as distributed income is |
| |
14| concerned, |
| |
15| (2) for taxable years beginning after December 31, |
| |
16| 2003, capital or ordinary gains or losses from |
| |
17| the sale of an ownership interest in a publicly |
| |
18| traded partnership, as defined by Section 7704(b) |
| |
19| of the Internal Revenue Code, shall be allocated |
| |
20| to this state in the ratio of the original cost |
| |
21| of such partnership's tangible property in this |
| |
22| state to the original cost of such partnership's |
| |
23| tangible property everywhere, as determined at |
| |
24| the time of the sale; if more than fifty percent |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 13
___________________________________________________________________________
1| (50%) of the value of the partnership's assets |
| |
2| consists of intangible assets, capital or |
| |
3| ordinary gains or losses from the sale of an |
| |
4| ownership interest in the partnership shall be |
| |
5| allocated to this state in accordance with the |
| |
6| sales factor of the partnership for its first |
| |
7| full tax period immediately preceding its tax |
| |
8| period during which the ownership interest in the |
| |
9| partnership was sold; the provisions of this |
| |
10| division shall only apply if the capital or |
| |
11| ordinary gains or losses from the sale of an |
| |
12| ownership interest in a partnership do not |
| |
13| constitute qualifying gain receiving capital |
| |
14| treatment as defined in subparagraph a of |
| |
15| paragraph 2 of subsection F of this section, |
| |
16| (3) income from such property which is required to be |
| |
17| allocated pursuant to the provisions of paragraph |
| |
18| 5 of this subsection shall be allocated as herein |
| |
19| provided; |
| |
20| c. Net income or loss from a business activity which is |
| |
21| not a part of business carried on within or without |
| |
22| the state of a unitary character shall be separately |
| |
23| allocated to the state in which such activity is |
| |
24| conducted; |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 14
___________________________________________________________________________
1| d. In the case of a manufacturing or processing |
| |
2| enterprise the business of which in Oklahoma this |
| |
3| state consists solely of marketing its products by: |
| |
4| (1) sales having a situs without this state, shipped |
| |
5| directly to a point from without the state to a |
| |
6| purchaser within the state, commonly known as |
| |
7| interstate sales, |
| |
8| (2) sales of the product stored in public warehouses |
| |
9| within the state pursuant to "in transit" |
| |
10| tariffs, as prescribed and allowed by the |
| |
11| Interstate Commerce Commission, to a purchaser |
| |
12| within the state, |
| |
13| (3) sales of the product stored in public warehouses |
| |
14| within the state where the shipment to such |
| |
15| warehouses is not covered by "in transit" |
| |
16| tariffs, as prescribed and allowed by the |
| |
17| Interstate Commerce Commission, to a purchaser |
| |
18| within or without the state, |
| |
19| the Oklahoma net income shall, at the option of the |
| |
20| taxpayer, be that portion of the total net income of |
| |
21| the taxpayer for federal income tax purposes derived |
| |
22| from the manufacture and/or processing and sales |
| |
23| everywhere as determined by the ratio of the sales |
| |
24| defined in this section made to the purchaser within |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 15
___________________________________________________________________________
1| the state to the total sales everywhere. The term |
| |
2| "public warehouse" as used in this subparagraph means |
| |
3| a licensed public warehouse, the principal business of |
| |
4| which is warehousing merchandise for the public; |
| |
5| e. In the case of insurance companies, Oklahoma taxable |
| |
6| income shall be taxable income of the taxpayer for |
| |
7| federal tax purposes, as adjusted for the adjustments |
| |
8| provided pursuant to the provisions of paragraphs 1 |
| |
9| and 2 of this subsection, apportioned as follows: |
| |
10| (1) except as otherwise provided by division (2) of |
| |
11| this subparagraph, taxable income of an insurance |
| |
12| company for a taxable year shall be apportioned |
| |
13| to this state by multiplying such income by a |
| |
14| fraction, the numerator of which is the direct |
| |
15| premiums written for insurance on property or |
| |
16| risks in this state, and the denominator of which |
| |
17| is the direct premiums written for insurance on |
| |
18| property or risks everywhere. For purposes of |
| |
19| this subsection, the term "direct premiums |
| |
20| written" means the total amount of direct |
| |
21| premiums written, assessments and annuity |
| |
22| considerations as reported for the taxable year |
| |
23| on the annual statement filed by the company with |
| |
24| the Insurance Commissioner in the form approved |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 16
___________________________________________________________________________
1| by the National Association of Insurance |
| |
2| Commissioners, or such other form as may be |
| |
3| prescribed in lieu thereof, |
| |
4| (2) if the principal source of premiums written by an |
| |
5| insurance company consists of premiums for |
| |
6| reinsurance accepted by it, the taxable income of |
| |
7| such company shall be apportioned to this state |
| |
8| by multiplying such income by a fraction, the |
| |
9| numerator of which is the sum of (a) direct |
| |
10| premiums written for insurance on property or |
| |
11| risks in this state, plus (b) premiums written |
| |
12| for reinsurance accepted in respect of property |
| |
13| or risks in this state, and the denominator of |
| |
14| which is the sum of (c) direct premiums written |
| |
15| for insurance on property or risks everywhere, |
| |
16| plus (d) premiums written for reinsurance |
| |
17| accepted in respect of property or risks |
| |
18| everywhere. For purposes of this paragraph, |
| |
19| premiums written for reinsurance accepted in |
| |
20| respect of property or risks in this state, |
| |
21| whether or not otherwise determinable, may at the |
| |
22| election of the company be determined on the |
| |
23| basis of the proportion which premiums written |
| |
24| for insurance accepted from companies |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 17
___________________________________________________________________________
1| commercially domiciled in Oklahoma this state |
| |
2| bears to premiums written for reinsurance |
| |
3| accepted from all sources, or alternatively in |
| |
4| the proportion which the sum of the direct |
| |
5| premiums written for insurance on property or |
| |
6| risks in this state by each ceding company from |
| |
7| which reinsurance is accepted bears to the sum of |
| |
8| the total direct premiums written by each such |
| |
9| ceding company for the taxable year. |
| |
10| 5. The net income or loss remaining after the separate |
| |
11|allocation in paragraph 4 of this subsection, being that which is |
| |
12|derived from a unitary business enterprise, shall be apportioned to |
| |
13|this state on the basis of the arithmetical average of three factors |
| |
14|consisting of property, payroll and sales or gross revenue |
| |
15|enumerated as subparagraphs a, b and c of this paragraph. Net |
| |
16|income or loss as used in this paragraph includes that derived from |
| |
17|patent or copyright royalties, purchase discounts, and interest on |
| |
18|accounts receivable relating to or arising from a business activity, |
| |
19|the income from which is apportioned pursuant to this subsection, |
| |
20|including the sale or other disposition of such property and any |
| |
21|other property used in the unitary enterprise. Deductions used in |
| |
22|computing such net income or loss shall not include taxes based on |
| |
23|or measured by income. Provided, for corporations whose property |
| |
24|for purposes of the tax imposed by Section 2355 of this title has an |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 18
___________________________________________________________________________
1|initial investment cost equaling or exceeding Two Hundred Million |
| |
2|Dollars ($200,000,000.00) and such investment is made on or after |
| |
3|July 1, 1997, or for corporations which expand their property or |
| |
4|facilities in this state and such expansion has an investment cost |
| |
5|equaling or exceeding Two Hundred Million Dollars ($200,000,000.00) |
| |
6|over a period not to exceed three (3) years, and such expansion is |
| |
7|commenced on or after January 1, 2000, the three factors shall be |
| |
8|apportioned with property and payroll, each comprising twenty-five |
| |
9|percent (25%) of the apportionment factor and sales comprising fifty |
| |
10|percent (50%) of the apportionment factor. The apportionment |
| |
11|factors shall be computed as follows: |
| |
12| a. The property factor is a fraction, the numerator of |
| |
13| which is the average value of the taxpayer's real and |
| |
14| tangible personal property owned or rented and used in |
| |
15| this state during the tax period and the denominator |
| |
16| of which is the average value of all the taxpayer's |
| |
17| real and tangible personal property everywhere owned |
| |
18| or rented and used during the tax period. |
| |
19| (1) Property, the income from which is separately |
| |
20| allocated in paragraph 4 of this subsection, |
| |
21| shall not be included in determining this |
| |
22| fraction. The numerator of the fraction shall |
| |
23| include a portion of the investment in |
| |
24| transportation and other equipment having no |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 19
___________________________________________________________________________
1| fixed situs, such as rolling stock, buses, trucks |
| |
2| and trailers, including machinery and equipment |
| |
3| carried thereon, airplanes, salespersons' |
| |
4| automobiles and other similar equipment, in the |
| |
5| proportion that miles traveled in Oklahoma this |
| |
6| state by such equipment bears to total miles |
| |
7| traveled, |
| |
8| (2) Property owned by the taxpayer is valued at its |
| |
9| original cost. Property rented by the taxpayer |
| |
10| is valued at eight times the net annual rental |
| |
11| rate. Net annual rental rate is the annual |
| |
12| rental rate paid by the taxpayer, less any annual |
| |
13| rental rate received by the taxpayer from |
| |
14| subrentals, |
| |
15| (3) The average value of property shall be determined |
| |
16| by averaging the values at the beginning and |
| |
17| ending of the tax period but the Oklahoma Tax |
| |
18| Commission may require the averaging of monthly |
| |
19| values during the tax period if reasonably |
| |
20| required to reflect properly the average value of |
| |
21| the taxpayer's property; |
| |
22| b. The payroll factor is a fraction, the numerator of |
| |
23| which is the total compensation for services rendered |
| |
24| in the state during the tax period, and the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 20
___________________________________________________________________________
1| denominator of which is the total compensation for |
| |
2| services rendered everywhere during the tax period. |
| |
3| "Compensation", as used in this subsection, means |
| |
4| those paid-for services to the extent related to the |
| |
5| unitary business but does not include officers' |
| |
6| salaries, wages and other compensation. |
| |
7| (1) In the case of a transportation enterprise, the |
| |
8| numerator of the fraction shall include a portion |
| |
9| of such expenditure in connection with employees |
| |
10| operating equipment over a fixed route, such as |
| |
11| railroad employees, airline pilots, or bus |
| |
12| drivers, in this state only a part of the time, |
| |
13| in the proportion that mileage traveled in |
| |
14| Oklahoma this state bears to total mileage |
| |
15| traveled by such employees, |
| |
16| (2) In any case the numerator of the fraction shall |
| |
17| include a portion of such expenditures in |
| |
18| connection with itinerant employees, such as |
| |
19| traveling salespersons, in this state only a part |
| |
20| of the time, in the proportion that time spent in |
| |
21| Oklahoma this state bears to total time spent in |
| |
22| furtherance of the enterprise by such employees; |
| |
23| c. The sales factor is a fraction, the numerator of |
| |
24| which is the total sales or gross revenue of the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 21
___________________________________________________________________________
1| taxpayer in this state during the tax period, and the |
| |
2| denominator of which is the total sales or gross |
| |
3| revenue of the taxpayer everywhere during the tax |
| |
4| period. "Sales", as used in this subsection, does not |
| |
5| include sales or gross revenue which are separately |
| |
6| allocated in paragraph 4 of this subsection. |
| |
7| (1) Sales of tangible personal property have a situs |
| |
8| in this state if the property is delivered or |
| |
9| shipped to a purchaser other than the United |
| |
10| States government, within this state regardless |
| |
11| of the FOB point or other conditions of the sale; |
| |
12| or the property is shipped from an office, store, |
| |
13| warehouse, factory or other place of storage in |
| |
14| this state and (a) the purchaser is the United |
| |
15| States government or (b) the taxpayer is not |
| |
16| doing business in the state of the destination of |
| |
17| the shipment. |
| |
18| (2) In the case of a railroad or interurban railway |
| |
19| enterprise, the numerator of the fraction shall |
| |
20| not be less than the allocation of revenues to |
| |
21| this state as shown in its annual report to the |
| |
22| Corporation Commission. |
| |
23| (3) In the case of an airline, truck or bus |
| |
24| enterprise or freight car, tank car, refrigerator |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 22
___________________________________________________________________________
1| car or other railroad equipment enterprise, the |
| |
2| numerator of the fraction shall include a portion |
| |
3| of revenue from interstate transportation in the |
| |
4| proportion that interstate mileage traveled in |
| |
5| Oklahoma this state bears to total interstate |
| |
6| mileage traveled. |
| |
7| (4) In the case of an oil, gasoline or gas pipeline |
| |
8| enterprise, the numerator of the fraction shall |
| |
9| be either the total of traffic units of the |
| |
10| enterprise within Oklahoma this state or the |
| |
11| revenue allocated to Oklahoma this state based |
| |
12| upon miles moved, at the option of the taxpayer, |
| |
13| and the denominator of which shall be the total |
| |
14| of traffic units of the enterprise or the revenue |
| |
15| of the enterprise everywhere as appropriate to |
| |
16| the numerator. A "traffic unit" is hereby |
| |
17| defined as the transportation for a distance of |
| |
18| one (1) mile of one (1) barrel of oil, one (1) |
| |
19| gallon of gasoline or one thousand (1,000) cubic |
| |
20| feet of natural or casinghead gas, as the case |
| |
21| may be. |
| |
22| (5) In the case of a telephone or telegraph or other |
| |
23| communication enterprise, the numerator of the |
| |
24| fraction shall include that portion of the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 23
___________________________________________________________________________
1| interstate revenue as is allocated pursuant to |
| |
2| the accounting procedures prescribed by the |
| |
3| Federal Communications Commission; provided that |
| |
4| in respect to each corporation or business entity |
| |
5| required by the Federal Communications Commission |
| |
6| to keep its books and records in accordance with |
| |
7| a uniform system of accounts prescribed by such |
| |
8| Commission, the intrastate net income shall be |
| |
9| determined separately in the manner provided by |
| |
10| such uniform system of accounts and only the |
| |
11| interstate income shall be subject to allocation |
| |
12| pursuant to the provisions of this subsection. |
| |
13| Provided further, that the gross revenue factors |
| |
14| shall be those as are determined pursuant to the |
| |
15| accounting procedures prescribed by the Federal |
| |
16| Communications Commission. |
| |
17| In any case where the apportionment of the three factors |
| |
18|prescribed in this paragraph attributes to Oklahoma this state a |
| |
19|portion of net income of the enterprise out of all appropriate |
| |
20|proportion to the property owned and/or business transacted within |
| |
21|this state, because of the fact that one or more of the factors so |
| |
22|prescribed are not employed to any appreciable extent in furtherance |
| |
23|of the enterprise; or because one or more factors not so prescribed |
| |
24|are employed to a considerable extent in furtherance of the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 24
___________________________________________________________________________
1|enterprise; or because of other reasons, the Tax Commission is |
| |
2|empowered to permit, after a showing by taxpayer that an excessive |
| |
3|portion of net income has been attributed to Oklahoma this state, or |
| |
4|require, when in its judgment an insufficient portion of net income |
| |
5|has been attributed to Oklahoma this state, the elimination, |
| |
6|substitution, or use of additional factors, or reduction or increase |
| |
7|in the weight of such prescribed factors. Provided, however, that |
| |
8|any such variance from such prescribed factors which has the effect |
| |
9|of increasing the portion of net income attributable to Oklahoma |
| |
10|this state must not be inherently arbitrary, and application of the |
| |
11|recomputed final apportionment to the net income of the enterprise |
| |
12|must attribute to Oklahoma this state only a reasonable portion |
| |
13|thereof. |
| |
14| 6. For calendar years 1997 and 1998, the owner of a new or |
| |
15|expanded agricultural commodity processing facility in this state |
| |
16|may exclude from Oklahoma taxable income, or in the case of an |
| |
17|individual, the Oklahoma adjusted gross income, fifteen percent |
| |
18|(15%) of the investment by the owner in the new or expanded |
| |
19|agricultural commodity processing facility. For calendar year 1999, |
| |
20|and all subsequent years, the percentage, not to exceed fifteen |
| |
21|percent (15%), available to the owner of a new or expanded |
| |
22|agricultural commodity processing facility in this state claiming |
| |
23|the exemption shall be adjusted annually so that the total estimated |
| |
24|reduction in tax liability does not exceed One Million Dollars |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 25
___________________________________________________________________________
1|($1,000,000.00) annually. The Tax Commission shall promulgate rules |
| |
2|for determining the percentage of the investment which each eligible |
| |
3|taxpayer may exclude. The exclusion provided by this paragraph |
| |
4|shall be taken in the taxable year when the investment is made. In |
| |
5|the event the total reduction in tax liability authorized by this |
| |
6|paragraph exceeds One Million Dollars ($1,000,000.00) in any |
| |
7|calendar year, the Tax Commission shall permit any excess over One |
| |
8|Million Dollars ($1,000,000.00) and shall factor such excess into |
| |
9|the percentage for subsequent years. Any amount of the exemption |
| |
10|permitted to be excluded pursuant to the provisions of this |
| |
11|paragraph but not used in any year may be carried forward as an |
| |
12|exemption from income pursuant to the provisions of this paragraph |
| |
13|for a period not exceeding six (6) years following the year in which |
| |
14|the investment was originally made. |
| |
15| For purposes of this paragraph: |
| |
16| a. "Agricultural commodity processing facility" means |
| |
17| building buildings, structures, fixtures and |
| |
18| improvements used or operated primarily for the |
| |
19| processing or production of marketable products from |
| |
20| agricultural commodities. The term shall also mean a |
| |
21| dairy operation that requires a depreciable investment |
| |
22| of at least Two Hundred Fifty Thousand Dollars |
| |
23| ($250,000.00) and which produces milk from dairy cows. |
| |
24| The term does not include a facility that provides |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 26
___________________________________________________________________________
1| only, and nothing more than, storage, cleaning, drying |
| |
2| or transportation of agricultural commodities, and |
| |
3| b. "Facility" means each part of the facility which is |
| |
4| used in a process primarily for: |
| |
5| (1) the processing of agricultural commodities, |
| |
6| including receiving or storing agricultural |
| |
7| commodities, or the production of milk at a dairy |
| |
8| operation, |
| |
9| (2) transporting the agricultural commodities or |
| |
10| product before, during or after the processing, |
| |
11| or |
| |
12| (3) packaging or otherwise preparing the product for |
| |
13| sale or shipment. |
| |
14| 7. Despite any provision to the contrary in paragraph 3 of this |
| |
15|subsection, for taxable years beginning after December 31, 1999, in |
| |
16|the case of a taxpayer which has a farming loss, such farming loss |
| |
17|shall be considered a net operating loss carryback in accordance |
| |
18|with and to the extent of the Internal Revenue Code, 26 U.S.C., |
| |
19|Section 172(b)(G). However, the amount of the net operating loss |
| |
20|carryback shall not exceed the lesser of: |
| |
21| a. Sixty Thousand Dollars ($60,000.00), or |
| |
22| b. the loss properly shown on Schedule F of the Internal |
| |
23| Revenue Service Form 1040 reduced by one-half (1/2) of |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 27
___________________________________________________________________________
1| the income from all other sources other than reflected |
| |
2| on Schedule F. |
| |
3| 8. In taxable years beginning after December 31, 1995, all |
| |
4|qualified wages equal to the federal income tax credit set forth in |
| |
5|26 U.S.C.A., Section 45A, shall be deducted from taxable income. |
| |
6|The deduction allowed pursuant to this paragraph shall only be |
| |
7|permitted for the tax years in which the federal tax credit pursuant |
| |
8|to 26 U.S.C.A., Section 45A, is allowed. For purposes of this |
| |
9|paragraph, "qualified wages" means those wages used to calculate the |
| |
10|federal credit pursuant to 26 U.S.C.A., Section 45A. |
| |
11| 9. In taxable years beginning after December 31, 2005, an |
| |
12|employer that is eligible for and utilizes the Safety Pays OSHA |
| |
13|Consultation Service provided by the Oklahoma Department of Labor |
| |
14|shall receive an exemption from taxable income in the amount of One |
| |
15|Thousand Dollars ($1,000.00) for the tax year that the service is |
| |
16|utilized. |
| |
17| 10. For taxable years beginning on or after January 1, 2010, |
| |
18|there shall be added to Oklahoma taxable income an amount equal to |
| |
19|the amount of deferred income not included in such taxable income |
| |
20|pursuant to Section 108(i)(1) of the Internal Revenue Code of 1986 |
| |
21|as amended by Section 1231 of the American Recovery and Reinvestment |
| |
22|Act of 2009 (P.L. No. 111-5). There shall be subtracted from |
| |
23|Oklahoma taxable income an amount equal to the amount of deferred |
| |
24|income included in such taxable income pursuant to Section 108(i)(1) |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 28
___________________________________________________________________________
1|of the Internal Revenue Code by Section 1231 of the American |
| |
2|Recovery and Reinvestment Act of 2009 (P.L. No. 111-5). |
| |
3| 11. For taxable years beginning on or after January 1, 2019, |
| |
4|there shall be subtracted from Oklahoma taxable income or adjusted |
| |
5|gross income any item of income or gain, and there shall be added to |
| |
6|Oklahoma taxable income or adjusted gross income any item of loss or |
| |
7|deduction that in the absence of an election pursuant to the |
| |
8|provisions of the Pass-Through Entity Tax Equity Act of 2019 would |
| |
9|be allocated to a member or to an indirect member of an electing |
| |
10|pass-through entity pursuant to Section 2351 et seq. of this title, |
| |
11|if (i) the electing pass-through entity has accounted for such item |
| |
12|in computing its Oklahoma net entity income or loss pursuant to the |
| |
13|provisions of the Pass-Through Entity Tax Equity Act of 2019, and |
| |
14|(ii) the total amount of tax attributable to any resulting Oklahoma |
| |
15|net entity income has been paid. The Oklahoma Tax Commission shall |
| |
16|promulgate rules for the reporting of such exclusion to direct and |
| |
17|indirect members of the electing pass-through entity. As used in |
| |
18|this paragraph, "electing pass-through entity", "indirect member", |
| |
19|and "member" shall be defined in the same manner as prescribed by |
| |
20|Section 2355.1P-2 of this title. Notwithstanding the application of |
| |
21|this paragraph, the adjusted tax basis of any ownership interest in |
| |
22|a pass-through entity for purposes of Section 2351 et seq. of this |
| |
23|title shall be equal to its adjusted tax basis for federal income |
| |
24|tax purposes. |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 29
___________________________________________________________________________
1| B. 1. The taxable income of any corporation shall be further |
| |
2|adjusted to arrive at Oklahoma taxable income, except those |
| |
3|corporations electing treatment as provided in subchapter S of the |
| |
4|Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section |
| |
5|2365 of this title, deductions pursuant to the provisions of the |
| |
6|Accelerated Cost Recovery System as defined and allowed in the |
| |
7|Economic Recovery Tax Act of 1981, Public Law 97-34, 26 U.S.C., |
| |
8|Section 168, for depreciation of assets placed into service after |
| |
9|December 31, 1981, shall not be allowed in calculating Oklahoma |
| |
10|taxable income. Such corporations shall be allowed a deduction for |
| |
11|depreciation of assets placed into service after December 31, 1981, |
| |
12|in accordance with provisions of the Internal Revenue Code, 26 |
| |
13|U.S.C., Section 1 et seq., in effect immediately prior to the |
| |
14|enactment of the Accelerated Cost Recovery System. The Oklahoma tax |
| |
15|basis for all such assets placed into service after December 31, |
| |
16|1981, calculated in this section shall be retained and utilized for |
| |
17|all Oklahoma income tax purposes through the final disposition of |
| |
18|such assets. |
| |
19| Notwithstanding any other provisions of the Oklahoma Income Tax |
| |
20|Act, Section 2351 et seq. of this title, or of the Internal Revenue |
| |
21|Code to the contrary, this subsection shall control calculation of |
| |
22|depreciation of assets placed into service after December 31, 1981, |
| |
23|and before January 1, 1983. |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 30
___________________________________________________________________________
1| For assets placed in service and held by a corporation in which |
| |
2|accelerated cost recovery system the Accelerated Cost Recovery |
| |
3|System was previously disallowed, an adjustment to taxable income is |
| |
4|required in the first taxable year beginning after December 31, |
| |
5|1982, to reconcile the basis of such assets to the basis allowed in |
| |
6|the Internal Revenue Code. The purpose of this adjustment is to |
| |
7|equalize the basis and allowance for depreciation accounts between |
| |
8|that reported to the Internal Revenue Service and that reported to |
| |
9|Oklahoma this state. |
| |
10| 2. For tax years beginning on or after January 1, 2009, and |
| |
11|ending on or before December 31, 2009, there shall be added to |
| |
12|Oklahoma taxable income any amount in excess of One Hundred |
| |
13|Seventy-five Thousand Dollars ($175,000.00) which has been deducted |
| |
14|as a small business expense under Internal Revenue Code, Section 179 |
| |
15|as provided in the American Recovery and Reinvestment Act of 2009. |
| |
16| C. 1. For taxable years beginning after December 31, 1987, the |
| |
17|taxable income of any corporation shall be further adjusted to |
| |
18|arrive at Oklahoma taxable income for transfers of technology to |
| |
19|qualified small businesses located in Oklahoma this state. Such |
| |
20|transferor corporation shall be allowed an exemption from taxable |
| |
21|income of an amount equal to the amount of royalty payment received |
| |
22|as a result of such transfer; provided, however, such amount shall |
| |
23|not exceed ten percent (10%) of the amount of gross proceeds |
| |
24|received by such transferor corporation as a result of the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 31
___________________________________________________________________________
1|technology transfer. Such exemption shall be allowed for a period |
| |
2|not to exceed ten (10) years from the date of receipt of the first |
| |
3|royalty payment accruing from such transfer. No exemption may be |
| |
4|claimed for transfers of technology to qualified small businesses |
| |
5|made prior to January 1, 1988. |
| |
6| 2. For purposes of this subsection: |
| |
7| a. "Qualified small business" means an entity, whether |
| |
8| organized as a corporation, partnership, or |
| |
9| proprietorship, organized for profit with its |
| |
10| principal place of business located within this state |
| |
11| and which meets the following criteria: |
| |
12| (1) Capitalization of not more than Two Hundred Fifty |
| |
13| Thousand Dollars ($250,000.00), |
| |
14| (2) Having at least fifty percent (50%) of its |
| |
15| employees and assets located in Oklahoma this |
| |
16| state at the time of the transfer, and |
| |
17| (3) Not a subsidiary or affiliate of the transferor |
| |
18| corporation; |
| |
19| b. "Technology" means a proprietary process, formula, |
| |
20| pattern, device or compilation of scientific or |
| |
21| technical information which is not in the public |
| |
22| domain; |
| |
23| |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 32
___________________________________________________________________________
1| c. "Transferor corporation" means a corporation which is |
| |
2| the exclusive and undisputed owner of the technology |
| |
3| at the time the transfer is made; and |
| |
4| d. "Gross proceeds" means the total amount of |
| |
5| consideration for the transfer of technology, whether |
| |
6| the consideration is in money or otherwise. |
| |
7| D. 1. For taxable years beginning after December 31, 2005, the |
| |
8|taxable income of any corporation, estate or trust, shall be further |
| |
9|adjusted for qualifying gains receiving capital treatment. Such |
| |
10|corporations, estates or trusts shall be allowed a deduction from |
| |
11|Oklahoma taxable income for the amount of qualifying gains receiving |
| |
12|capital treatment earned by the corporation, estate or trust during |
| |
13|the taxable year and included in the federal taxable income of such |
| |
14|corporation, estate or trust. |
| |
15| 2. As used in this subsection: |
| |
16| a. "qualifying gains receiving capital treatment" means |
| |
17| the amount of net capital gains, as defined in Section |
| |
18| 1222(11) of the Internal Revenue Code, included in the |
| |
19| federal income tax return of the corporation, estate |
| |
20| or trust that result from: |
| |
21| (1) the sale of real property or tangible personal |
| |
22| property located within Oklahoma this state that |
| |
23| has been directly or indirectly owned by the |
| |
24| corporation, estate or trust for a holding period |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 33
___________________________________________________________________________
1| of at least five (5) years prior to the date of |
| |
2| the transaction from which such net capital gains |
| |
3| arise, |
| |
4| (2) the sale of stock or on the sale of an ownership |
| |
5| interest in an Oklahoma company, limited |
| |
6| liability company, or partnership where such |
| |
7| stock or ownership interest has been directly or |
| |
8| indirectly owned by the corporation, estate or |
| |
9| trust for a holding period of at least three (3) |
| |
10| years prior to the date of the transaction from |
| |
11| which the net capital gains arise, or |
| |
12| (3) the sale of real property, tangible personal |
| |
13| property or intangible personal property located |
| |
14| within Oklahoma this state as part of the sale of |
| |
15| all or substantially all of the assets of an |
| |
16| Oklahoma company, limited liability company, or |
| |
17| partnership where such property has been directly |
| |
18| or indirectly owned by such entity owned by the |
| |
19| owners of such entity, and used in or derived |
| |
20| from such entity for a period of at least three |
| |
21| (3) years prior to the date of the transaction |
| |
22| from which the net capital gains arise, |
| |
23| b. "holding period" means an uninterrupted period of |
| |
24| time. The holding period shall include any additional |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 34
___________________________________________________________________________
1| period when the property was held by another |
| |
2| individual or entity, if such additional period is |
| |
3| included in the taxpayer's holding period for the |
| |
4| asset pursuant to the Internal Revenue Code, |
| |
5| c. "Oklahoma company", "limited liability company", or |
| |
6| "partnership" means an entity whose primary |
| |
7| headquarters have been located in Oklahoma this state |
| |
8| for at least three (3) uninterrupted years prior to |
| |
9| the date of the transaction from which the net capital |
| |
10| gains arise, |
| |
11| d. "direct" means the taxpayer directly owns the asset, |
| |
12| and |
| |
13| e. "indirect" means the taxpayer owns an interest in a |
| |
14| pass-through entity (or chain of pass-through |
| |
15| entities) that sells the asset that gives rise to the |
| |
16| qualifying gains receiving capital treatment. |
| |
17| (1) With respect to sales of real property or |
| |
18| tangible personal property located within |
| |
19| Oklahoma this state, the deduction described in |
| |
20| this subsection shall not apply unless the |
| |
21| pass-through entity that makes the sale has held |
| |
22| the property for not less than five (5) |
| |
23| uninterrupted years prior to the date of the |
| |
24| transaction that created the capital gain, and |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 35
___________________________________________________________________________
1| each pass-through entity included in the chain of |
| |
2| ownership has been a member, partner, or |
| |
3| shareholder of the pass-through entity in the |
| |
4| tier immediately below it for an uninterrupted |
| |
5| period of not less than five (5) years. |
| |
6| (2) With respect to sales of stock or ownership |
| |
7| interest in or sales of all or substantially all |
| |
8| of the assets of an Oklahoma company, limited |
| |
9| liability company, or partnership, the deduction |
| |
10| described in this subsection shall not apply |
| |
11| unless the pass-through entity that makes the |
| |
12| sale has held the stock or ownership interest or |
| |
13| the assets for not less than three (3) |
| |
14| uninterrupted years prior to the date of the |
| |
15| transaction that created the capital gain, and |
| |
16| each pass-through entity included in the chain of |
| |
17| ownership has been a member, partner or |
| |
18| shareholder of the pass-through entity in the |
| |
19| tier immediately below it for an uninterrupted |
| |
20| period of not less than three (3) years. |
| |
21| E. The Oklahoma adjusted gross income of any individual |
| |
22|taxpayer shall be further adjusted as follows to arrive at Oklahoma |
| |
23|taxable income: |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 36
___________________________________________________________________________
1| 1. a. In the case of individuals, there shall be added or |
| |
2| deducted, as the case may be, the difference necessary |
| |
3| to allow personal exemptions of One Thousand Dollars |
| |
4| ($1,000.00) in lieu of the personal exemptions allowed |
| |
5| by the Internal Revenue Code. |
| |
6| b. There shall be allowed an additional exemption of One |
| |
7| Thousand Dollars ($1,000.00) for each taxpayer or |
| |
8| spouse who is blind at the close of the tax year. For |
| |
9| purposes of this subparagraph, an individual is blind |
| |
10| only if the central visual acuity of the individual |
| |
11| does not exceed 20/200 in the better eye with |
| |
12| correcting lenses, or if the visual acuity of the |
| |
13| individual is greater than 20/200, but is accompanied |
| |
14| by a limitation in the fields of vision such that the |
| |
15| widest diameter of the visual field subtends an angle |
| |
16| no greater than twenty (20) degrees. |
| |
17| c. There shall be allowed an additional exemption of One |
| |
18| Thousand Dollars ($1,000.00) for each taxpayer or |
| |
19| spouse who is sixty-five (65) years of age or older at |
| |
20| the close of the tax year based upon the filing status |
| |
21| and federal adjusted gross income of the taxpayer. |
| |
22| Taxpayers with the following filing status may claim |
| |
23| this exemption if the federal adjusted gross income |
| |
24| does not exceed: |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 37
___________________________________________________________________________
1| (1) Twenty-five Thousand Dollars ($25,000.00) if |
| |
2| married and filing jointly; |
| |
3| (2) Twelve Thousand Five Hundred Dollars ($12,500.00) |
| |
4| if married and filing separately; |
| |
5| (3) Fifteen Thousand Dollars ($15,000.00) if single; |
| |
6| and |
| |
7| (4) Nineteen Thousand Dollars ($19,000.00) if a |
| |
8| qualifying head of household. |
| |
9| Provided, for taxable years beginning after December |
| |
10| 31, 1999, amounts included in the calculation of |
| |
11| federal adjusted gross income pursuant to the |
| |
12| conversion of a traditional individual retirement |
| |
13| account to a Roth individual retirement account shall |
| |
14| be excluded from federal adjusted gross income for |
| |
15| purposes of the income thresholds provided in this |
| |
16| subparagraph. |
| |
17| 2. a. For taxable years beginning on or before December 31, |
| |
18| 2005, in the case of individuals who use the standard |
| |
19| deduction in determining taxable income, there shall |
| |
20| be added or deducted, as the case may be, the |
| |
21| difference necessary to allow a standard deduction in |
| |
22| lieu of the standard deduction allowed by the Internal |
| |
23| Revenue Code, in an amount equal to the larger of |
| |
24| fifteen percent (15%) of the Oklahoma adjusted gross |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 38
___________________________________________________________________________
1| income or One Thousand Dollars ($1,000.00), but not to |
| |
2| exceed Two Thousand Dollars ($2,000.00), except that |
| |
3| in the case of a married individual filing a separate |
| |
4| return such deduction shall be the larger of fifteen |
| |
5| percent (15%) of such Oklahoma adjusted gross income |
| |
6| or Five Hundred Dollars ($500.00), but not to exceed |
| |
7| the maximum amount of One Thousand Dollars |
| |
8| ($1,000.00). |
| |
9| b. For taxable years beginning on or after January 1, |
| |
10| 2006, and before January 1, 2007, in the case of |
| |
11| individuals who use the standard deduction in |
| |
12| determining taxable income, there shall be added or |
| |
13| deducted, as the case may be, the difference necessary |
| |
14| to allow a standard deduction in lieu of the standard |
| |
15| deduction allowed by the Internal Revenue Code, in an |
| |
16| amount equal to: |
| |
17| (1) Three Thousand Dollars ($3,000.00), if the |
| |
18| filing status is married filing joint, head of |
| |
19| household or qualifying widow; or |
| |
20| (2) Two Thousand Dollars ($2,000.00), if the filing |
| |
21| status is single or married filing separate. |
| |
22| c. For the taxable year beginning on January 1, 2007, |
| |
23| and ending December 31, 2007, in the case of |
| |
24| individuals who use the standard deduction in |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 39
___________________________________________________________________________
1| determining taxable income, there shall be added or |
| |
2| deducted, as the case may be, the difference necessary |
| |
3| to allow a standard deduction in lieu of the standard |
| |
4| deduction allowed by the Internal Revenue Code, in an |
| |
5| amount equal to: |
| |
6| (1) Five Thousand Five Hundred Dollars ($5,500.00), |
| |
7| if the filing status is married filing joint or |
| |
8| qualifying widow; or |
| |
9| (2) Four Thousand One Hundred Twenty-five Dollars |
| |
10| ($4,125.00) for a head of household; or |
| |
11| (3) Two Thousand Seven Hundred Fifty Dollars |
| |
12| ($2,750.00), if the filing status is single or |
| |
13| married filing separate. |
| |
14| d. For the taxable year beginning on January 1, 2008, |
| |
15| and ending December 31, 2008, in the case of |
| |
16| individuals who use the standard deduction in |
| |
17| determining taxable income, there shall be added or |
| |
18| deducted, as the case may be, the difference necessary |
| |
19| to allow a standard deduction in lieu of the standard |
| |
20| deduction allowed by the Internal Revenue Code, in an |
| |
21| amount equal to: |
| |
22| (1) Six Thousand Five Hundred Dollars ($6,500.00), |
| |
23| if the filing status is married filing joint or |
| |
24| qualifying widow, or |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 40
___________________________________________________________________________
1| (2) Four Thousand Eight Hundred Seventy-five Dollars |
| |
2| ($4,875.00) for a head of household, or |
| |
3| (3) Three Thousand Two Hundred Fifty Dollars |
| |
4| ($3,250.00), if the filing status is single or |
| |
5| married filing separate. |
| |
6| e. For the taxable year beginning on January 1, 2009, |
| |
7| and ending December 31, 2009, in the case of |
| |
8| individuals who use the standard deduction in |
| |
9| determining taxable income, there shall be added or |
| |
10| deducted, as the case may be, the difference necessary |
| |
11| to allow a standard deduction in lieu of the standard |
| |
12| deduction allowed by the Internal Revenue Code, in an |
| |
13| amount equal to: |
| |
14| (1) Eight Thousand Five Hundred Dollars ($8,500.00), |
| |
15| if the filing status is married filing joint or |
| |
16| qualifying widow, or |
| |
17| (2) Six Thousand Three Hundred Seventy-five Dollars |
| |
18| ($6,375.00) for a head of household, or |
| |
19| (3) Four Thousand Two Hundred Fifty Dollars |
| |
20| ($4,250.00), if the filing status is single or |
| |
21| married filing separate. |
| |
22| Oklahoma adjusted gross income shall be increased by |
| |
23| any amounts paid for motor vehicle excise taxes which |
| |
24| were deducted as allowed by the Internal Revenue Code. |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 41
___________________________________________________________________________
1| f. For taxable years beginning on or after January 1, |
| |
2| 2010, and ending on December 31, 2016, in the case of |
| |
3| individuals who use the standard deduction in |
| |
4| determining taxable income, there shall be added or |
| |
5| deducted, as the case may be, the difference necessary |
| |
6| to allow a standard deduction equal to the standard |
| |
7| deduction allowed by the Internal Revenue Code, based |
| |
8| upon the amount and filing status prescribed by such |
| |
9| Code for purposes of filing federal individual income |
| |
10| tax returns. |
| |
11| g. For taxable years beginning on or after January 1, |
| |
12| 2017, in the case of individuals who use the standard |
| |
13| deduction in determining taxable income, there shall |
| |
14| be added or deducted, as the case may be, the |
| |
15| difference necessary to allow a standard deduction in |
| |
16| lieu of the standard deduction allowed by the Internal |
| |
17| Revenue Code, as follows: |
| |
18| (1) Six Thousand Three Hundred Fifty Dollars |
| |
19| ($6,350.00) for single or married filing |
| |
20| separately, |
| |
21| (2) Twelve Thousand Seven Hundred Dollars |
| |
22| ($12,700.00) for married filing jointly or |
| |
23| qualifying widower with dependent child, and |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 42
___________________________________________________________________________
1| (3) Nine Thousand Three Hundred Fifty Dollars |
| |
2| ($9,350.00) for head of household. |
| |
3| 3. a. In the case of resident and part-year resident |
| |
4| individuals having adjusted gross income from sources |
| |
5| both within and without the state, the itemized or |
| |
6| standard deductions and personal exemptions shall be |
| |
7| reduced to an amount which is the same portion of the |
| |
8| total thereof as Oklahoma adjusted gross income is of |
| |
9| adjusted gross income. To the extent itemized |
| |
10| deductions include allowable moving expense, proration |
| |
11| of moving expense shall not be required or permitted |
| |
12| but allowable moving expense shall be fully deductible |
| |
13| for those taxpayers moving within or into Oklahoma |
| |
14| this state and no part of moving expense shall be |
| |
15| deductible for those taxpayers moving without or out |
| |
16| of Oklahoma this state. All other itemized or |
| |
17| standard deductions and personal exemptions shall be |
| |
18| subject to proration as provided by law. |
| |
19| b. For taxable years beginning on or after January 1, |
| |
20| 2018, the net amount of itemized deductions allowable |
| |
21| on an Oklahoma income tax return, subject to the |
| |
22| provisions of paragraph 24 of this subsection, shall |
| |
23| not exceed Seventeen Thousand Dollars ($17,000.00). |
| |
24| For purposes of this subparagraph, charitable |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 43
___________________________________________________________________________
1| contributions and medical expenses deductible for |
| |
2| federal income tax purposes shall be excluded from the |
| |
3| amount of Seventeen Thousand Dollars ($17,000.00) as |
| |
4| specified by this subparagraph. |
| |
5| 4. A resident individual with a physical disability |
| |
6|constituting a substantial handicap to employment may deduct from |
| |
7|Oklahoma adjusted gross income such expenditures to modify a motor |
| |
8|vehicle, home or workplace as are necessary to compensate for his or |
| |
9|her handicap. A veteran certified by the Department of Veterans |
| |
10|Affairs of the federal government as having a service-connected |
| |
11|disability shall be conclusively presumed to be an individual with a |
| |
12|physical disability constituting a substantial handicap to |
| |
13|employment. The Tax Commission shall promulgate rules containing a |
| |
14|list of combinations of common disabilities and modifications which |
| |
15|may be presumed to qualify for this deduction. The Tax Commission |
| |
16|shall prescribe necessary requirements for verification. |
| |
17| 5. a. Before July 1, 2010, the first One Thousand Five |
| |
18| Hundred Dollars ($1,500.00) received by any person |
| |
19| from the United States as salary or compensation in |
| |
20| any form, other than retirement benefits, as a member |
| |
21| of any component of the Armed Forces of the United |
| |
22| States shall be deducted from taxable income. |
| |
23| b. On or after July 1, 2010, one hundred percent (100%) |
| |
24| of the income received by any person from the United |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 44
___________________________________________________________________________
1| States as salary or compensation in any form, other |
| |
2| than retirement benefits, as a member of any component |
| |
3| of the Armed Forces of the United States shall be |
| |
4| deducted from taxable income. |
| |
5| c. Whenever the filing of a timely income tax return by a |
| |
6| member of the Armed Forces of the United States is |
| |
7| made impracticable or impossible of accomplishment by |
| |
8| reason of: |
| |
9| (1) absence from the United States, which term |
| |
10| includes only the states and the District of |
| |
11| Columbia; |
| |
12| (2) absence from the State of Oklahoma this state |
| |
13| while on active duty; or |
| |
14| (3) confinement in a hospital within the United |
| |
15| States for treatment of wounds, injuries or |
| |
16| disease, |
| |
17| the time for filing a return and paying an income tax |
| |
18| shall be and is hereby extended without incurring |
| |
19| liability for interest or penalties, to the fifteenth |
| |
20| day of the third month following the month in which: |
| |
21| (a) Such individual shall return to the United |
| |
22| States if the extension is granted pursuant |
| |
23| to subparagraph a of this paragraph, return |
| |
24| to the State of Oklahoma this state if the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 45
___________________________________________________________________________
1| extension is granted pursuant to |
| |
2| subparagraph b of this paragraph or be |
| |
3| discharged from such hospital if the |
| |
4| extension is granted pursuant to |
| |
5| subparagraph c of this paragraph; or |
| |
6| (b) An executor, administrator, or conservator |
| |
7| of the estate of the taxpayer is appointed, |
| |
8| whichever event occurs the earliest. |
| |
9| Provided, that the Tax Commission may, in its discretion, grant |
| |
10|any member of the Armed Forces of the United States an extension of |
| |
11|time for filing of income tax returns and payment of income tax |
| |
12|without incurring liabilities for interest or penalties. Such |
| |
13|extension may be granted only when in the judgment of the Tax |
| |
14|Commission a good cause exists therefor and may be for a period in |
| |
15|excess of six (6) months. A record of every such extension granted, |
| |
16|and the reason therefor, shall be kept. |
| |
17| 6. Before July 1, 2010, the salary or any other form of |
| |
18|compensation, received from the United States by a member of any |
| |
19|component of the Armed Forces of the United States, shall be |
| |
20|deducted from taxable income during the time in which the person is |
| |
21|detained by the enemy in a conflict, is a prisoner of war or is |
| |
22|missing in action and not deceased; provided, after July 1, 2010, |
| |
23|all such salary or compensation shall be subject to the deduction as |
| |
24|provided pursuant to paragraph 5 of this subsection. |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 46
___________________________________________________________________________
1| 7. a. An individual taxpayer, whether resident or |
| |
2| nonresident, may deduct an amount equal to the federal |
| |
3| income taxes paid by the taxpayer during the taxable |
| |
4| year. |
| |
5| b. Federal taxes as described in subparagraph a of this |
| |
6| paragraph shall be deductible by any individual |
| |
7| taxpayer, whether resident or nonresident, only to the |
| |
8| extent they relate to income subject to taxation |
| |
9| pursuant to the provisions of the Oklahoma Income Tax |
| |
10| Act. The maximum amount allowable in the preceding |
| |
11| paragraph shall be prorated on the ratio of the |
| |
12| Oklahoma adjusted gross income to federal adjusted |
| |
13| gross income. |
| |
14| c. For the purpose of this paragraph, "federal income |
| |
15| taxes paid" shall mean federal income taxes, surtaxes |
| |
16| imposed on incomes or excess profits taxes, as though |
| |
17| the taxpayer was on the accrual basis. In determining |
| |
18| the amount of deduction for federal income taxes for |
| |
19| tax year 2001, the amount of the deduction shall not |
| |
20| be adjusted by the amount of any accelerated ten |
| |
21| percent (10%) tax rate bracket credit or advanced |
| |
22| refund of the credit received during the tax year |
| |
23| provided pursuant to the federal Economic Growth and |
| |
24| Tax Relief Reconciliation Act of 2001, P.L. No. |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 47
___________________________________________________________________________
1| 107-16, and the advanced refund of such credit shall |
| |
2| not be subject to taxation. |
| |
3| d. The provisions of this paragraph shall apply to all |
| |
4| taxable years ending after December 31, 1978, and |
| |
5| beginning before January 1, 2006. |
| |
6| 8. Retirement benefits not to exceed Five Thousand Five Hundred |
| |
7|Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five |
| |
8|Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand |
| |
9|Dollars ($10,000.00) for the 2006 tax year and all subsequent tax |
| |
10|years, which are received by an individual from the civil service of |
| |
11|the United States, the Oklahoma Public Employees Retirement System, |
| |
12|the Teachers' Retirement System of Oklahoma, the Oklahoma Law |
| |
13|Enforcement Retirement System, the Oklahoma Firefighters Pension and |
| |
14|Retirement System, the Oklahoma Police Pension and Retirement |
| |
15|System, the employee retirement systems created by counties pursuant |
| |
16|to Section 951 et seq. of Title 19 of the Oklahoma Statutes, the |
| |
17|Uniform Retirement System for Justices and Judges, the Oklahoma |
| |
18|Wildlife Conservation Department Retirement Fund, the Oklahoma |
| |
19|Employment Security Commission Retirement Plan, or the employee |
| |
20|retirement systems created by municipalities pursuant to Section |
| |
21|48-101 et seq. of Title 11 of the Oklahoma Statutes shall be exempt |
| |
22|from taxable income. |
| |
23| 9. In taxable years beginning after December 3l, 1984, Social |
| |
24|Security benefits received by an individual shall be exempt from |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 48
___________________________________________________________________________
1|taxable income, to the extent such benefits are included in the |
| |
2|federal adjusted gross income pursuant to the provisions of Section |
| |
3|86 of the Internal Revenue Code, 26 U.S.C., Section 86. |
| |
4| 10. For taxable years beginning after December 31, 1994, |
| |
5|lump-sum distributions from employer plans of deferred compensation, |
| |
6|which are not qualified plans within the meaning of Section 401(a) |
| |
7|of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which |
| |
8|are deposited in and accounted for within a separate bank account or |
| |
9|brokerage account in a financial institution within this state, |
| |
10|shall be excluded from taxable income in the same manner as a |
| |
11|qualifying rollover contribution to an individual retirement account |
| |
12|within the meaning of Section 408 of the Internal Revenue Code, 26 |
| |
13|U.S.C., Section 408. Amounts withdrawn from such bank or brokerage |
| |
14|account, including any earnings thereon, shall be included in |
| |
15|taxable income when withdrawn in the same manner as withdrawals from |
| |
16|individual retirement accounts within the meaning of Section 408 of |
| |
17|the Internal Revenue Code. |
| |
18| 11. In taxable years beginning after December 31, 1995, |
| |
19|contributions made to and interest received from a medical savings |
| |
20|account established pursuant to Sections 2621 through 2623 of Title |
| |
21|63 of the Oklahoma Statutes shall be exempt from taxable income. |
| |
22| 12. For taxable years beginning after December 31, 1996, the |
| |
23|Oklahoma adjusted gross income of any individual taxpayer who is a |
| |
24|swine or poultry producer may be further adjusted for the deduction |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 49
___________________________________________________________________________
1|for depreciation allowed for new construction or expansion costs |
| |
2|which may be computed using the same depreciation method elected for |
| |
3|federal income tax purposes except that the useful life shall be |
| |
4|seven (7) years for purposes of this paragraph. If depreciation is |
| |
5|allowed as a deduction in determining the adjusted gross income of |
| |
6|an individual, any depreciation calculated and claimed pursuant to |
| |
7|this section shall in no event be a duplication of any depreciation |
| |
8|allowed or permitted on the federal income tax return of the |
| |
9|individual. |
| |
10| 13. a. In taxable years beginning after December 31, 2002, |
| |
11| nonrecurring adoption expenses paid by a resident |
| |
12| individual taxpayer in connection with: |
| |
13| (1) the adoption of a minor, or |
| |
14| (2) a proposed adoption of a minor which did not |
| |
15| result in a decreed adoption, |
| |
16| may be deducted from the Oklahoma adjusted gross |
| |
17| income. |
| |
18| b. The deductions for adoptions and proposed adoptions |
| |
19| authorized by this paragraph shall not exceed Twenty |
| |
20| Thousand Dollars ($20,000.00) per calendar year. |
| |
21| c. The Tax Commission shall promulgate rules to |
| |
22| implement the provisions of this paragraph which shall |
| |
23| contain a specific list of nonrecurring adoption |
| |
24| expenses which may be presumed to qualify for the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 50
___________________________________________________________________________
1| deduction. The Tax Commission shall prescribe |
| |
2| necessary requirements for verification. |
| |
3| d. "Nonrecurring adoption expenses" means adoption fees, |
| |
4| court costs, medical expenses, attorney fees and |
| |
5| expenses which are directly related to the legal |
| |
6| process of adoption of a child including, but not |
| |
7| limited to, costs relating to the adoption study, |
| |
8| health and psychological examinations, transportation |
| |
9| and reasonable costs of lodging and food for the child |
| |
10| or adoptive parents which are incurred to complete the |
| |
11| adoption process and are not reimbursed by other |
| |
12| sources. The term "nonrecurring adoption expenses" |
| |
13| nonrecurring adoption expenses shall not include |
| |
14| attorney fees incurred for the purpose of litigating a |
| |
15| contested adoption, from and after the point of the |
| |
16| initiation of the contest, costs associated with |
| |
17| physical remodeling, renovation and alteration of the |
| |
18| adoptive parents' home or property, except for a |
| |
19| special needs child as authorized by the court. |
| |
20| 14. a. In taxable years beginning before January 1, 2005, |
| |
21| retirement benefits not to exceed the amounts |
| |
22| specified in this paragraph, which are received by an |
| |
23| individual sixty-five (65) years of age or older and |
| |
24| whose Oklahoma adjusted gross income is Twenty-five |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 51
___________________________________________________________________________
1| Thousand Dollars ($25,000.00) or less if the filing |
| |
2| status is single, head of household, or married filing |
| |
3| separate, or Fifty Thousand Dollars ($50,000.00) or |
| |
4| less if the filing status is married filing joint or |
| |
5| qualifying widow, shall be exempt from taxable income. |
| |
6| In taxable years beginning after December 31, 2004, |
| |
7| retirement benefits not to exceed the amounts |
| |
8| specified in this paragraph, which are received by an |
| |
9| individual whose Oklahoma adjusted gross income is |
| |
10| less than the qualifying amount specified in this |
| |
11| paragraph, shall be exempt from taxable income. |
| |
12| b. For purposes of this paragraph, the qualifying amount |
| |
13| shall be as follows: |
| |
14| (1) in taxable years beginning after December 31, |
| |
15| 2004, and prior to January 1, 2007, the |
| |
16| qualifying amount shall be Thirty-seven Thousand |
| |
17| Five Hundred Dollars ($37,500.00) or less if the |
| |
18| filing status is single, head of household, or |
| |
19| married filing separate, or Seventy-five Thousand |
| |
20| Dollars ($75,000.00) or less if the filing status |
| |
21| is married filing jointly or qualifying widow, |
| |
22| (2) in the taxable year beginning January 1, 2007, |
| |
23| the qualifying amount shall be Fifty Thousand |
| |
24| Dollars ($50,000.00) or less if the filing status |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 52
___________________________________________________________________________
1| is single, head of household, or married filing |
| |
2| separate, or One Hundred Thousand Dollars |
| |
3| ($100,000.00) or less if the filing status is |
| |
4| married filing jointly or qualifying widow, |
| |
5| (3) in the taxable year beginning January 1, 2008, |
| |
6| the qualifying amount shall be Sixty-two Thousand |
| |
7| Five Hundred Dollars ($62,500.00) or less if the |
| |
8| filing status is single, head of household, or |
| |
9| married filing separate, or One Hundred |
| |
10| Twenty-five Thousand Dollars ($125,000.00) or |
| |
11| less if the filing status is married filing |
| |
12| jointly or qualifying widow, |
| |
13| (4) in the taxable year beginning January 1, 2009, |
| |
14| the qualifying amount shall be One Hundred |
| |
15| Thousand Dollars ($100,000.00) or less if the |
| |
16| filing status is single, head of household, or |
| |
17| married filing separate, or Two Hundred Thousand |
| |
18| Dollars ($200,000.00) or less if the filing |
| |
19| status is married filing jointly or qualifying |
| |
20| widow, and |
| |
21| (5) in the taxable year beginning January 1, 2010, |
| |
22| and subsequent taxable years, there shall be no |
| |
23| limitation upon the qualifying amount. |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 53
___________________________________________________________________________
1| c. For purposes of this paragraph, "retirement benefits" |
| |
2| means the total distributions or withdrawals from the |
| |
3| following: |
| |
4| (1) an employee pension benefit plan which satisfies |
| |
5| the requirements of Section 401 of the Internal |
| |
6| Revenue Code, 26 U.S.C., Section 401, |
| |
7| (2) an eligible deferred compensation plan that |
| |
8| satisfies the requirements of Section 457 of the |
| |
9| Internal Revenue Code, 26 U.S.C., Section 457, |
| |
10| (3) an individual retirement account, annuity or |
| |
11| trust or simplified employee pension that |
| |
12| satisfies the requirements of Section 408 of the |
| |
13| Internal Revenue Code, 26 U.S.C., Section 408, |
| |
14| (4) an employee annuity subject to the provisions of |
| |
15| Section 403(a) or (b) of the Internal Revenue |
| |
16| Code, 26 U.S.C., Section 403(a) or (b), |
| |
17| (5) United States Retirement Bonds which satisfy the |
| |
18| requirements of Section 86 of the Internal |
| |
19| Revenue Code, 26 U.S.C., Section 86, or |
| |
20| (6) lump-sum distributions from a retirement plan |
| |
21| which satisfies the requirements of Section |
| |
22| 402(e) of the Internal Revenue Code, 26 U.S.C., |
| |
23| Section 402(e). |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 54
___________________________________________________________________________
1| d. The amount of the exemption provided by this paragraph |
| |
2| shall be limited to Five Thousand Five Hundred Dollars |
| |
3| ($5,500.00) for the 2004 tax year, Seven Thousand Five |
| |
4| Hundred Dollars ($7,500.00) for the 2005 tax year and |
| |
5| Ten Thousand Dollars ($10,000.00) for the tax year |
| |
6| 2006 and for all subsequent tax years. Any individual |
| |
7| who claims the exemption provided for in paragraph 8 |
| |
8| of this subsection shall not be permitted to claim a |
| |
9| combined total exemption pursuant to this paragraph |
| |
10| and paragraph 8 of this subsection in an amount |
| |
11| exceeding Five Thousand Five Hundred Dollars |
| |
12| ($5,500.00) for the 2004 tax year, Seven Thousand Five |
| |
13| Hundred Dollars ($7,500.00) for the 2005 tax year and |
| |
14| Ten Thousand Dollars ($10,000.00) for the 2006 tax |
| |
15| year and all subsequent tax years. |
| |
16| 15. In taxable years beginning after December 31, 1999, for an |
| |
17|individual engaged in production agriculture who has filed a |
| |
18|Schedule F form with the taxpayer's federal income tax return for |
| |
19|such taxable year, there shall be excluded from taxable income any |
| |
20|amount which was included as federal taxable income or federal |
| |
21|adjusted gross income and which consists of the discharge of an |
| |
22|obligation by a creditor of the taxpayer incurred to finance the |
| |
23|production of agricultural products. |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 55
___________________________________________________________________________
1| 16. In taxable years beginning December 31, 2000, an amount |
| |
2|equal to one hundred percent (100%) of the amount of any scholarship |
| |
3|or stipend received from participation in the Oklahoma Police Corps |
| |
4|Program, as established in Section 2-140.3 of Title 47 of the |
| |
5|Oklahoma Statutes shall be exempt from taxable income. |
| |
6| 17. a. In taxable years beginning after December 31, 2001, |
| |
7| and before January 1, 2005, there shall be allowed a |
| |
8| deduction in the amount of contributions to accounts |
| |
9| established pursuant to the Oklahoma College Savings |
| |
10| Plan Act. The deduction shall equal the amount of |
| |
11| contributions to accounts, but in no event shall the |
| |
12| deduction for each contributor exceed Two Thousand |
| |
13| Five Hundred Dollars ($2,500.00) each taxable year for |
| |
14| each account. |
| |
15| b. In taxable years beginning after December 31, 2004, |
| |
16| each taxpayer shall be allowed a deduction for |
| |
17| contributions to accounts established pursuant to the |
| |
18| Oklahoma College Savings Plan Act. The maximum annual |
| |
19| deduction shall equal the amount of contributions to |
| |
20| all such accounts plus any contributions to such |
| |
21| accounts by the taxpayer for prior taxable years after |
| |
22| December 31, 2004, which were not deducted, but in no |
| |
23| event shall the deduction for each tax year exceed Ten |
| |
24| Thousand Dollars ($10,000.00) for each individual |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 56
___________________________________________________________________________
1| taxpayer or Twenty Thousand Dollars ($20,000.00) for |
| |
2| taxpayers filing a joint return. Any amount of a |
| |
3| contribution that is not deducted by the taxpayer in |
| |
4| the year for which the contribution is made may be |
| |
5| carried forward as a deduction from income for the |
| |
6| succeeding five (5) years. For taxable years |
| |
7| beginning after December 31, 2005, deductions may be |
| |
8| taken for contributions and rollovers made during a |
| |
9| taxable year and up to April 15 of the succeeding |
| |
10| year, or the due date of a taxpayer's state income tax |
| |
11| return, excluding extensions, whichever is later. |
| |
12| Provided, a deduction for the same contribution may |
| |
13| not be taken for two (2) different taxable years. |
| |
14| c. In taxable years beginning after December 31, 2006, |
| |
15| deductions for contributions made pursuant to |
| |
16| subparagraph b of this paragraph shall be limited as |
| |
17| follows: |
| |
18| (1) for a taxpayer who qualified for the five-year |
| |
19| carryforward election and who takes a rollover or |
| |
20| nonqualified withdrawal during that period, the |
| |
21| tax deduction otherwise available pursuant to |
| |
22| subparagraph b of this paragraph shall be reduced |
| |
23| by the amount which is equal to the rollover or |
| |
24| nonqualified withdrawal, and |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 57
___________________________________________________________________________
1| (2) for a taxpayer who elects to take a rollover or |
| |
2| nonqualified withdrawal within the same tax year |
| |
3| in which a contribution was made to the |
| |
4| taxpayer's account, the tax deduction otherwise |
| |
5| available pursuant to subparagraph b of this |
| |
6| paragraph shall be reduced by the amount of the |
| |
7| contribution which is equal to the rollover or |
| |
8| nonqualified withdrawal. |
| |
9| d. If a taxpayer elects to take a rollover on a |
| |
10| contribution for which a deduction has been taken |
| |
11| pursuant to subparagraph b of this paragraph within |
| |
12| one (1) year of the date of contribution, the amount |
| |
13| of such rollover shall be included in the adjusted |
| |
14| gross income of the taxpayer in the taxable year of |
| |
15| the rollover. |
| |
16| e. If a taxpayer makes a nonqualified withdrawal of |
| |
17| contributions for which a deduction was taken pursuant |
| |
18| to subparagraph b of this paragraph, such nonqualified |
| |
19| withdrawal and any earnings thereon shall be included |
| |
20| in the adjusted gross income of the taxpayer in the |
| |
21| taxable year of the nonqualified withdrawal. |
| |
22| f. As used in this paragraph: |
| |
23| |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 58
___________________________________________________________________________
1| (1) "non-qualified withdrawal" means a withdrawal |
| |
2| from an Oklahoma College Savings Plan account |
| |
3| other than one of the following: |
| |
4| (a) a qualified withdrawal, |
| |
5| (b) a withdrawal made as a result of the death |
| |
6| or disability of the designated beneficiary |
| |
7| of an account, |
| |
8| (c) a withdrawal that is made on the account of |
| |
9| a scholarship or the allowance or payment |
| |
10| described in Section 135(d)(1)(B) or (C) or |
| |
11| by the Internal Revenue Code, received by |
| |
12| the designated beneficiary to the extent the |
| |
13| amount of the refund does not exceed the |
| |
14| amount of the scholarship, allowance, or |
| |
15| payment, or |
| |
16| (d) a rollover or change of designated |
| |
17| beneficiary as permitted by subsection F of |
| |
18| Section 3970.7 of Title 70 of the Oklahoma |
| |
19| Statutes, and |
| |
20| (2) "rollover" means the transfer of funds from the |
| |
21| Oklahoma College Savings Plan to any other plan |
| |
22| under Section 529 of the Internal Revenue Code. |
| |
23| 18. For tax years 2006 through 2021, retirement benefits |
| |
24|received by an individual from any component of the Armed Forces of |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 59
___________________________________________________________________________
1|the United States in an amount not to exceed the greater of |
| |
2|seventy-five percent (75%) of such benefits or Ten Thousand Dollars |
| |
3|($10,000.00) shall be exempt from taxable income but in no case less |
| |
4|than the amount of the exemption provided by paragraph 14 of this |
| |
5|subsection. For tax year 2022 and subsequent tax years, retirement |
| |
6|benefits received by an individual from any component of the Armed |
| |
7|Forces of the United States shall be exempt from taxable income. |
| |
8| 19. For taxable years beginning after December 31, 2006, |
| |
9|retirement benefits received by federal civil service retirees, |
| |
10|including survivor annuities, paid in lieu of Social Security |
| |
11|benefits shall be exempt from taxable income to the extent such |
| |
12|benefits are included in the federal adjusted gross income pursuant |
| |
13|to the provisions of Section 86 of the Internal Revenue Code, 26 |
| |
14|U.S.C., Section 86, according to the following schedule: |
| |
15| a. in the taxable year beginning January 1, 2007, twenty |
| |
16| percent (20%) of such benefits shall be exempt, |
| |
17| b. in the taxable year beginning January 1, 2008, forty |
| |
18| percent (40%) of such benefits shall be exempt, |
| |
19| c. in the taxable year beginning January 1, 2009, sixty |
| |
20| percent (60%) of such benefits shall be exempt, |
| |
21| d. in the taxable year beginning January 1, 2010, eighty |
| |
22| percent (80%) of such benefits shall be exempt, and |
| |
23| |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 60
___________________________________________________________________________
1| e. in the taxable year beginning January 1, 2011, and |
| |
2| subsequent taxable years, one hundred percent (100%) |
| |
3| of such benefits shall be exempt. |
| |
4| 20. a. For taxable years beginning after December 31, 2007, a |
| |
5| resident individual may deduct up to Ten Thousand |
| |
6| Dollars ($10,000.00) from Oklahoma adjusted gross |
| |
7| income if the individual, or the dependent of the |
| |
8| individual, while living, donates one or more human |
| |
9| organs of the individual to another human being for |
| |
10| human organ transplantation. As used in this |
| |
11| paragraph, "human organ" means all or part of a liver, |
| |
12| pancreas, kidney, intestine, lung, or bone marrow. A |
| |
13| deduction that is claimed under this paragraph may be |
| |
14| claimed in the taxable year in which the human organ |
| |
15| transplantation occurs. |
| |
16| b. An individual may claim this deduction only once, and |
| |
17| the deduction may be claimed only for unreimbursed |
| |
18| expenses that are incurred by the individual and |
| |
19| related to the organ donation of the individual. |
| |
20| c. The Oklahoma Tax Commission shall promulgate rules to |
| |
21| implement the provisions of this paragraph which shall |
| |
22| contain a specific list of expenses which may be |
| |
23| presumed to qualify for the deduction. The Tax |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 61
___________________________________________________________________________
1| Commission shall prescribe necessary requirements for |
| |
2| verification. |
| |
3| 21. For taxable years beginning after December 31, 2009, there |
| |
4|shall be exempt from taxable income any amount received by the |
| |
5|beneficiary of the death benefit for an emergency medical technician |
| |
6|or a registered emergency medical responder provided by Section |
| |
7|1-2505.1 of Title 63 of the Oklahoma Statutes. |
| |
8| 22. For taxable years beginning after December 31, 2008, |
| |
9|taxable income shall be increased by any unemployment compensation |
| |
10|exempted under Section 85(c) of the Internal Revenue Code, 26 |
| |
11|U.S.C., Section 85(c)(2009). |
| |
12| 23. For taxable years beginning after December 31, 2008, there |
| |
13|shall be exempt from taxable income any payment in an amount less |
| |
14|than Six Hundred Dollars ($600.00) received by a person as an award |
| |
15|for participation in a competitive livestock show event. For |
| |
16|purposes of this paragraph, the payment shall be treated as a |
| |
17|scholarship amount paid by the entity sponsoring the event and the |
| |
18|sponsoring entity shall cause the payment to be categorized as a |
| |
19|scholarship in its books and records. |
| |
20| 24. For taxable years beginning on or after January 1, 2016, |
| |
21|taxable income shall be increased by any amount of state and local |
| |
22|sales or income taxes deducted under 26 U.S.C., Section 164 of the |
| |
23|Internal Revenue Code. If the amount of state and local taxes |
| |
24|deducted on the federal return is limited, taxable income on the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 62
___________________________________________________________________________
1|state return shall be increased only by the amount actually deducted |
| |
2|after any such limitations are applied. |
| |
3| 25. For taxable years beginning after December 31, 2020, each |
| |
4|taxpayer shall be allowed a deduction for contributions to accounts |
| |
5|established pursuant to the Achieving a Better Life Experience |
| |
6|(ABLE) Program as established in Section 4001.1 et seq. of Title 56 |
| |
7|of the Oklahoma Statutes. For any tax year, the deduction provided |
| |
8|for in this paragraph shall not exceed Ten Thousand Dollars |
| |
9|($10,000.00) for an individual taxpayer or Twenty Thousand Dollars |
| |
10|($20,000.00) for taxpayers filing a joint return. Any amount of |
| |
11|contribution not deducted by the taxpayer in the tax year for which |
| |
12|the contribution is made may be carried forward as a deduction from |
| |
13|income for up to five (5) tax years. Deductions may be taken for |
| |
14|contributions made during the tax year and through April 15 of the |
| |
15|succeeding tax year, or through the due date of a taxpayer's state |
| |
16|income tax return excluding extensions, whichever is later. |
| |
17|Provided, a deduction for the same contribution may not be taken in |
| |
18|more than one (1) tax year. |
| |
19| 26. For tax year 2024 and subsequent tax years, tax credits |
| |
20|received pursuant to the Oklahoma Parental Choice Tax Credit Act in |
| |
21|Section 28-101 of Title 70 of the Oklahoma Statutes shall be exempt |
| |
22|from taxable income. |
| |
23| F. 1. For taxable years beginning after December 31, 2004, a |
| |
24|deduction from the Oklahoma adjusted gross income of any individual |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 63
___________________________________________________________________________
1|taxpayer shall be allowed for qualifying gains receiving capital |
| |
2|treatment that are included in the federal adjusted gross income of |
| |
3|such individual taxpayer during the taxable year. |
| |
4| 2. As used in this subsection: |
| |
5| a. "qualifying gains receiving capital treatment" means |
| |
6| the amount of net capital gains, as defined in Section |
| |
7| 1222(11) of the Internal Revenue Code, included in an |
| |
8| individual taxpayer's federal income tax return that |
| |
9| result from: |
| |
10| (1) the sale of real property or tangible personal |
| |
11| property located within Oklahoma this state that |
| |
12| has been directly or indirectly owned by the |
| |
13| individual taxpayer for a holding period of at |
| |
14| least five (5) years prior to the date of the |
| |
15| transaction from which such net capital gains |
| |
16| arise, |
| |
17| (2) the sale of stock or the sale of a direct or |
| |
18| indirect ownership interest in an Oklahoma |
| |
19| company, limited liability company, or |
| |
20| partnership where such stock or ownership |
| |
21| interest has been directly or indirectly owned by |
| |
22| the individual taxpayer for a holding period of |
| |
23| at least two (2) years prior to the date of the |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 64
___________________________________________________________________________
1| transaction from which the net capital gains |
| |
2| arise, or |
| |
3| (3) the sale of real property, tangible personal |
| |
4| property or intangible personal property located |
| |
5| within Oklahoma this state as part of the sale of |
| |
6| all or substantially all of the assets of an |
| |
7| Oklahoma company, limited liability company, or |
| |
8| partnership or an Oklahoma proprietorship |
| |
9| business enterprise where such property has been |
| |
10| directly or indirectly owned by such entity or |
| |
11| business enterprise or owned by the owners of |
| |
12| such entity or business enterprise for a period |
| |
13| of at least two (2) years prior to the date of |
| |
14| the transaction from which the net capital gains |
| |
15| arise, |
| |
16| b. "holding period" means an uninterrupted period of |
| |
17| time. The holding period shall include any additional |
| |
18| period when the property was held by another |
| |
19| individual or entity, if such additional period is |
| |
20| included in the taxpayer's holding period for the |
| |
21| asset pursuant to the Internal Revenue Code, |
| |
22| c. "Oklahoma company," "limited liability company," or |
| |
23| "partnership" means an entity whose primary |
| |
24| headquarters have been located in Oklahoma this state |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 65
___________________________________________________________________________
1| for at least three (3) uninterrupted years prior to |
| |
2| the date of the transaction from which the net capital |
| |
3| gains arise, |
| |
4| d. "direct" means the individual taxpayer directly owns |
| |
5| the asset, |
| |
6| e. "indirect" means the individual taxpayer owns an |
| |
7| interest in a pass-through entity (or chain of |
| |
8| pass-through entities) that sells the asset that gives |
| |
9| rise to the qualifying gains receiving capital |
| |
10| treatment. |
| |
11| (1) With respect to sales of real property or |
| |
12| tangible personal property located within |
| |
13| Oklahoma this state, the deduction described in |
| |
14| this subsection shall not apply unless the |
| |
15| pass-through entity that makes the sale has held |
| |
16| the property for not less than five (5) |
| |
17| uninterrupted years prior to the date of the |
| |
18| transaction that created the capital gain, and |
| |
19| each pass-through entity included in the chain of |
| |
20| ownership has been a member, partner, or |
| |
21| shareholder of the pass-through entity in the |
| |
22| tier immediately below it for an uninterrupted |
| |
23| period of not less than five (5) years. |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 66
___________________________________________________________________________
1| (2) With respect to sales of stock or ownership |
| |
2| interest in or sales of all or substantially all |
| |
3| of the assets of an Oklahoma company, limited |
| |
4| liability company, partnership or Oklahoma |
| |
5| proprietorship business enterprise, the deduction |
| |
6| described in this subsection shall not apply |
| |
7| unless the pass-through entity that makes the |
| |
8| sale has held the stock or ownership interest for |
| |
9| not less than two (2) uninterrupted years prior |
| |
10| to the date of the transaction that created the |
| |
11| capital gain, and each pass-through entity |
| |
12| included in the chain of ownership has been a |
| |
13| member, partner or shareholder of the |
| |
14| pass-through entity in the tier immediately below |
| |
15| it for an uninterrupted period of not less than |
| |
16| two (2) years. For purposes of this division, |
| |
17| uninterrupted ownership prior to July 1, 2007, |
| |
18| shall be included in the determination of the |
| |
19| required holding period prescribed by this |
| |
20| division, and |
| |
21| f. "Oklahoma proprietorship business enterprise" means a |
| |
22| business enterprise whose income and expenses have |
| |
23| been reported on Schedule C or F of an individual |
| |
24| taxpayer's federal income tax return, or any similar |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 67
___________________________________________________________________________
1| successor schedule published by the Internal Revenue |
| |
2| Service and whose primary headquarters have been |
| |
3| located in Oklahoma this state for at least three (3) |
| |
4| uninterrupted years prior to the date of the |
| |
5| transaction from which the net capital gains arise. |
| |
6| G. 1. For purposes of computing its Oklahoma taxable income |
| |
7|under this section, the dividends-paid deduction otherwise allowed |
| |
8|by federal law in computing net income of a real estate investment |
| |
9|trust that is subject to federal income tax shall be added back in |
| |
10|computing the tax imposed by this state under this title if the real |
| |
11|estate investment trust is a captive real estate investment trust. |
| |
12| 2. For purposes of computing its Oklahoma taxable income under |
| |
13|this section, a taxpayer shall add back otherwise deductible rents |
| |
14|and interest expenses paid to a captive real estate investment trust |
| |
15|that is not subject to the provisions of paragraph 1 of this |
| |
16|subsection. As used in this subsection: |
| |
17| a. the term "real estate investment trust" or "REIT" |
| |
18| means the meaning ascribed to such term in Section 856 |
| |
19| of the Internal Revenue Code, |
| |
20| b. the term "captive real estate investment trust" means |
| |
21| a real estate investment trust, the shares or |
| |
22| beneficial interests of which are not regularly traded |
| |
23| on an established securities market and more than |
| |
24| fifty percent (50%) of the voting power or value of |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 68
___________________________________________________________________________
1| the beneficial interests or shares of which are owned |
| |
2| or controlled, directly or indirectly, or |
| |
3| constructively, by a single entity that is: |
| |
4| (1) treated as an association taxable as a |
| |
5| corporation under the Internal Revenue Code, and |
| |
6| (2) not exempt from federal income tax pursuant to |
| |
7| the provisions of Section 501(a) of the Internal |
| |
8| Revenue Code. |
| |
9| The term shall not include a real estate investment |
| |
10| trust that is intended to be regularly traded on an |
| |
11| established securities market, and that satisfies the |
| |
12| requirements of Section 856(a)(5) and (6) of the U.S. |
| |
13| Internal Revenue Code by reason of Section 856(h)(2) |
| |
14| of the Internal Revenue Code, |
| |
15| c. the term "association taxable as a corporation" shall |
| |
16| not include the following entities: |
| |
17| (1) any real estate investment trust as defined in |
| |
18| paragraph a of this subsection other than a |
| |
19| "captive real estate investment trust" captive |
| |
20| real estate investment trust, or |
| |
21| (2) any qualified real estate investment trust |
| |
22| subsidiary under Section 856(i) of the Internal |
| |
23| Revenue Code, other than a qualified REIT |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 69
___________________________________________________________________________
1| subsidiary of a "captive real estate investment |
| |
2| trust" captive real estate investment trust, or |
| |
3| (3) any Listed Australian Property Trust listed |
| |
4| Australian property trust (meaning an Australian |
| |
5| unit trust registered as a "Managed Investment |
| |
6| Scheme" "managed investment scheme" under the |
| |
7| Australian Corporations Act 2001 in which the |
| |
8| principal class of units is listed on a |
| |
9| recognized stock exchange in Australia and is |
| |
10| regularly traded on an established securities |
| |
11| market), or an entity organized as a trust, |
| |
12| provided that a Listed Australian Property Trust |
| |
13| listed Australian property trust owns or |
| |
14| controls, directly or indirectly, seventy-five |
| |
15| percent (75%) or more of the voting power or |
| |
16| value of the beneficial interests or shares of |
| |
17| such trust, or |
| |
18| (4) any Qualified Foreign Entity qualified foreign |
| |
19| entity, meaning a corporation, trust, association |
| |
20| or partnership organized outside the laws of the |
| |
21| United States and which satisfies the following |
| |
22| criteria: |
| |
23| (a) at least seventy-five percent (75%) of the |
| |
24| entity's total asset value at the close of |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 70
___________________________________________________________________________
1| its taxable year is represented by real |
| |
2| estate assets, as defined in Section |
| |
3| 856(c)(5)(B) of the Internal Revenue Code, |
| |
4| thereby including shares or certificates of |
| |
5| beneficial interest in any real estate |
| |
6| investment trust, cash and cash equivalents, |
| |
7| and U.S. Government securities, |
| |
8| (b) the entity receives a dividend-paid |
| |
9| deduction comparable to Section 561 of the |
| |
10| Internal Revenue Code, or is exempt from |
| |
11| entity level tax, |
| |
12| (c) the entity is required to distribute at |
| |
13| least eighty-five percent (85%) of its |
| |
14| taxable income, as computed in the |
| |
15| jurisdiction in which it is organized, to |
| |
16| the holders of its shares or certificates of |
| |
17| beneficial interest on an annual basis, |
| |
18| (d) not more than ten percent (10%) of the |
| |
19| voting power or value in such entity is held |
| |
20| directly or indirectly or constructively by |
| |
21| a single entity or individual, or the shares |
| |
22| or beneficial interests of such entity are |
| |
23| regularly traded on an established |
| |
24| securities market, and |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 71
___________________________________________________________________________
1| (e) the entity is organized in a country which |
| |
2| has a tax treaty with the United States. |
| |
3| 3. For purposes of this subsection, the constructive ownership |
| |
4|rules of Section 318(a) of the Internal Revenue Code, as modified by |
| |
5|Section 856(d)(5) of the Internal Revenue Code, shall apply in |
| |
6|determining the ownership of stock, assets, or net profits of any |
| |
7|person. |
| |
8| 4. A real estate investment trust that does not become |
| |
9|regularly traded on an established securities market within one (1) |
| |
10|year of the date on which it first becomes a real estate investment |
| |
11|trust shall be deemed not to have been regularly traded on an |
| |
12|established securities market, retroactive to the date it first |
| |
13|became a real estate investment trust, and shall file an amended |
| |
14|return reflecting such retroactive designation for any tax year or |
| |
15|part year occurring during its initial year of status as a real |
| |
16|estate investment trust. For purposes of this subsection, a real |
| |
17|estate investment trust becomes a real estate investment trust on |
| |
18|the first day it has both met the requirements of Section 856 of the |
| |
19|Internal Revenue Code and has elected to be treated as a real estate |
| |
20|investment trust pursuant to Section 856(c)(1) of the Internal |
| |
21|Revenue Code. |
| |
22| SECTION 3. AMENDATORY Section 2, Chapter 278, O.S.L. |
| |
23|2023 (70 O.S. Supp. 2023, Section 28-101), is amended to read as |
| |
24|follows: |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 72
___________________________________________________________________________
1| Section 28-101. A. As used in the Oklahoma Parental Choice Tax |
| |
2|Credit Act: |
| |
3| 1. "Commission" means the Oklahoma Tax Commission; |
| |
4| 2. "Curriculum" means a complete course of study for a |
| |
5|particular content area or grade level; |
| |
6| 3. "Department" means the State Department of Education; |
| |
7| 4. "Education service provider" means a person, business, |
| |
8|public school district, public charter school, magnet school, or |
| |
9|organization that provides educational goods and/or services to |
| |
10|eligible students in this state; |
| |
11| 5. "Eligible student" means a resident of this state who is |
| |
12|eligible to enroll in a public school in this state. Eligible |
| |
13|student shall include a student who is enrolled in and attends or is |
| |
14|expected to enroll in a private school in this state accredited by |
| |
15|the State Board of Education or another accrediting association or a |
| |
16|student who is educated pursuant to the other means of education |
| |
17|exception provided for in subsection A of Section 10-105 of Title 70 |
| |
18|of the Oklahoma Statutes this title; |
| |
19| 6. "Qualified expense" for the purpose of claiming the credit |
| |
20|authorized by subparagraph a of paragraph 1 of subsection C of this |
| |
21|section means tuition and fees at a private school in this state |
| |
22|accredited by the State Board of Education or another accrediting |
| |
23|association. Provided, the amount of tuition and fees considered a |
| |
24|qualified expense pursuant to this paragraph shall not include |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 73
___________________________________________________________________________
1|tuition and fees paid with any scholarship or tuition and fees |
| |
2|discounted or otherwise reduced by the school; |
| |
3| 7. "Qualified expense" for the purpose of claiming the credit |
| |
4|authorized by subparagraph b of paragraph 1 paragraph 3 of |
| |
5|subsection C of this section means the following expenditures: |
| |
6| a. tuition and fees for nonpublic online learning |
| |
7| programs, online or in person, |
| |
8| b. academic tutoring services provided by an individual |
| |
9| or a private academic tutoring facility, |
| |
10| c. textbooks, curriculum, or other instructional |
| |
11| materials including, but not limited to, supplemental |
| |
12| materials or associated online instruction required by |
| |
13| an education service provider, and |
| |
14| d. fees for nationally standardized assessments |
| |
15| including, but not limited to, assessments used to |
| |
16| determine college admission and advanced placement |
| |
17| examinations as well as tuition and fees for tutoring |
| |
18| or preparatory courses for the assessments; and |
| |
19| 8. "Taxpayer" means a biological or adoptive parent, |
| |
20|grandparent, aunt, uncle, legal guardian, custodian, or other person |
| |
21|with legal authority to act on behalf of an eligible student. |
| |
22| B. There is hereby created the Oklahoma Parental Choice Tax |
| |
23|Credit Program to provide an income tax credit to a taxpayer for |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 74
___________________________________________________________________________
1|qualified expenses to support the education of eligible students in |
| |
2|this state. |
| |
3| C. For the tax year 2024 and subsequent tax years, and fiscal |
| |
4|year 2026 and subsequent fiscal years, there shall be allowed |
| |
5|against the tax imposed by Section 2355 of Title 68 of the Oklahoma |
| |
6|Statutes a credit for any Oklahoma taxpayer who incurs a qualified |
| |
7|expense on behalf of an eligible student, to be administered subject |
| |
8|to the following amounts for each tax year: |
| |
9| 1. If the eligible student attends a private school in this |
| |
10|state accredited by the State Board of Education or another |
| |
11|accrediting association, the annual maximum credit amount for tax |
| |
12|year 2024, fiscal year 2026, and each subsequent fiscal year shall |
| |
13|be: |
| |
14| a. (1) Seven Thousand Five Hundred Dollars ($7,500.00) |
| |
15| or the amount of tuition and fees for the private |
| |
16| school, whichever is less, if the combined adjusted |
| |
17| gross income of the parents or legal guardians of the |
| |
18| eligible student is a member of a household in which |
| |
19| the total adjusted gross income during the second |
| |
20| preceding tax year does not exceed Seventy-five |
| |
21| Thousand Dollars ($75,000.00), |
| |
22| (2) b. Seven Thousand Dollars ($7,000.00) or the amount |
| |
23| of tuition and fees for the private school, whichever |
| |
24| is less, if the combined adjusted gross income of the |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 75
___________________________________________________________________________
1| parents or legal guardians of the eligible student is |
| |
2| a member of a household in which the total adjusted |
| |
3| gross income during the second preceding tax year is |
| |
4| more than Seventy-five Thousand Dollars ($75,000.00) |
| |
5| but does not exceed One Hundred Fifty Thousand Dollars |
| |
6| ($150,000.00), |
| |
7| (3) c. Six Thousand Five Hundred Dollars ($6,500.00) or |
| |
8| the amount of tuition and fees for the private school, |
| |
9| whichever is less, if the combined adjusted gross |
| |
10| income of the parents or legal guardians of the |
| |
11| eligible student is a member of a household in which |
| |
12| the total adjusted gross income during the second |
| |
13| preceding tax year is more than One Hundred Fifty |
| |
14| Thousand Dollars ($150,000.00) but does not exceed Two |
| |
15| Hundred Twenty-five Thousand Dollars ($225,000.00), |
| |
16| (4) d. Six Thousand Dollars ($6,000.00) or the amount |
| |
17| of tuition and fees for the private school, whichever |
| |
18| is less, if the combined adjusted gross income of the |
| |
19| parents or legal guardians of the eligible student is |
| |
20| a member of a household in which the total adjusted |
| |
21| gross income during the second preceding tax year is |
| |
22| more than Two Hundred Twenty-five Thousand Dollars |
| |
23| ($225,000.00) but does not exceed Two Hundred Fifty |
| |
24| Thousand Dollars ($250,000.00), or |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 76
___________________________________________________________________________
1| (5) e. Five Thousand Dollars ($5,000.00) or the amount |
| |
2| of tuition and fees for the private school, whichever |
| |
3| is less, if the combined adjusted gross income of the |
| |
4| parents or legal guardians of the eligible student is |
| |
5| a member of a household in which the total adjusted |
| |
6| gross income during the second preceding tax year is |
| |
7| more than Two Hundred Fifty Thousand Dollars |
| |
8| ($250,000.00), and; |
| |
9| 2. For tax year 2025, in addition to the amount of credits |
| |
10|authorized by paragraph 1 of this subsection, a credit in the amount |
| |
11|of fifty percent (50%) of the amounts set forth in paragraph 1 of |
| |
12|this subsection, or the amount of tuition and fees for the spring |
| |
13|semester of the 2024-2025 school year, whichever is less; |
| |
14| b. 3. For tax year 2024 and subsequent tax years, the maximum |
| |
15|credit amount shall be One Thousand Dollars ($1,000.00) in qualified |
| |
16|expenses per eligible student in each tax year if the eligible |
| |
17|student is educated pursuant to the other means of education |
| |
18|exception provided for in subsection A of Section 10-105 of Title 70 |
| |
19|of the Oklahoma Statutes this title. To claim the credit, the |
| |
20|taxpayer shall submit to the Commission receipts for qualified |
| |
21|expenses as defined by paragraph 7 of subsection A of this section; |
| |
22| 4. If the eligible student attends a private school in this |
| |
23|state, accredited by the State Board of Education or another |
| |
24|accrediting association, that exclusively serves students |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 77
___________________________________________________________________________
1|experiencing homelessness, the credit amount shall be Seven Thousand |
| |
2|Five Hundred Dollars ($7,500.00) or the amount of the cost to |
| |
3|educate the eligible student at the private school, whichever is |
| |
4|less; |
| |
5| 5. If the eligible student attends a private school in this |
| |
6|state, accredited by the State Board of Education or another |
| |
7|accrediting association, that primarily serves financially |
| |
8|disadvantaged students, the credit amount shall be the maximum |
| |
9|credit amount authorized by paragraph 1 of this subsection or the |
| |
10|amount of the cost to educate the eligible student at the private |
| |
11|school, whichever is less. The cost to educate the eligible student |
| |
12|shall be equal to the average cost to educate all students attending |
| |
13|the private school, which shall be calculated by dividing the |
| |
14|private school's total expenditures in the previous year by the |
| |
15|total enrollment in the previous school year. A private school |
| |
16|shall be deemed to be primarily serving financially disadvantaged |
| |
17|students if the private school's admissions are based on enrolling |
| |
18|students whose gross family income is two hundred fifty percent |
| |
19|(250%) of the federal poverty threshold or below; |
| |
20| 2. 6. The taxpayer shall retain all receipts of qualified |
| |
21|expenses as proof of the amounts paid each tax year the credit is |
| |
22|claimed and shall submit them to the Commission upon request; and |
| |
23| |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 78
___________________________________________________________________________
1| 3. 7. If the credit exceeds the tax imposed by Section 2355 of |
| |
2|Title 68 of the Oklahoma Statutes, the excess amount shall be |
| |
3|refunded to the taxpayer; and |
| |
4| 8. Credits claimed by a taxpayer pursuant to the provisions of |
| |
5|this section shall not be used to offset or pay the following: |
| |
6| a. delinquent tax liability, |
| |
7| b. accrued penalty or interest from the failure to file |
| |
8| a report or return, |
| |
9| c. accrued penalty or interest from the failure to pay a |
| |
10| state tax within the statutory period allowed for its |
| |
11| payment, |
| |
12| d. tax liability of the taxpayer from any prior tax |
| |
13| year, or |
| |
14| e. any debt, unpaid fine, final judgment, or claim filed |
| |
15| with the Commission by a qualified entity as defined |
| |
16| in Section 205.2 of Title 68 of the Oklahoma Statutes. |
| |
17| D. 1. a. For tax year 2024, the total amount of credits |
| |
18| authorized by subparagraph a of paragraph 1 of |
| |
19| subsection C of this section shall not exceed One |
| |
20| Hundred Fifty Million Dollars ($150,000,000.00). |
| |
21| b. For tax year 2025 the period of January 1, 2025, |
| |
22| through June 30, 2025, the total amount of credits |
| |
23| authorized by subparagraph a of paragraph 1 of |
| |
24| subsection C of this section shall not exceed Two |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 79
___________________________________________________________________________
1| Hundred Million Dollars ($200,000,000.00) One Hundred |
| |
2| Million Dollars ($100,000,000.00). |
| |
3| c. For tax year 2026, and subsequent tax years fiscal |
| |
4| year 2026 and subsequent fiscal years, the total |
| |
5| amount of credits authorized by subparagraph a of |
| |
6| paragraph 1 of subsection C of this section shall not |
| |
7| exceed Two Hundred Fifty Million Dollars |
| |
8| ($250,000,000.00). |
| |
9| 2. For tax year 2025, and subsequent tax years, the total |
| |
10|amount of credits authorized by subparagraph b of paragraph 1 |
| |
11|paragraph 3 of subsection C of this section shall not exceed Five |
| |
12|Million Dollars ($5,000,000.00). For tax year 2025 and subsequent |
| |
13|tax years, the Commission shall annually calculate and publish a |
| |
14|percentage by which the credits authorized by this section shall be |
| |
15|reduced so the total amount of credits claimed does not exceed Five |
| |
16|Million Dollars ($5,000,000.00) per year.~ The formula to be used |
| |
17|for the percentage adjustment shall be Five Million Dollars |
| |
18|($5,000,000.00) divided by the credits claimed in the second |
| |
19|preceding year. |
| |
20| E. The Commission shall prescribe applications for the purposes |
| |
21|of claiming the credits authorized by the Oklahoma Parental Choice |
| |
22|Tax Credit Act and a deadline by which applications shall be |
| |
23|submitted. A taxpayer claiming the credit authorized by |
| |
24|subparagraph a of paragraph 1 of subsection C of this section shall |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 80
___________________________________________________________________________
1|submit an application prescribed by the Commission to receive the |
| |
2|credit in two installments, each of which shall be half of the |
| |
3|expected amount of tuition and fees for the private school based on |
| |
4|the affidavit enrollment verification form submitted pursuant to |
| |
5|this subsection, but in no event shall an installment payment exceed |
| |
6|half the amount of the credit authorized by subparagraph a of |
| |
7|paragraph 1 of subsection C of this section. If an eligible |
| |
8|taxpayer provides documentation on the application that he or she is |
| |
9|a recipient of income-based government benefits including the |
| |
10|Supplemental Nutrition Assistance Program (SNAP), Temporary |
| |
11|Assistance for Needy Families (TANF), or SoonerCare, the eligible |
| |
12|taxpayer shall not be required to provide additional income |
| |
13|verification. A taxpayer claiming the credit authorized by |
| |
14|subparagraph a of paragraph 1 of subsection C of this section shall |
| |
15|submit to the Commission an affidavit enrollment verification form |
| |
16|from the private school in which the eligible student is enrolled or |
| |
17|is expected to enroll with the tuition and fees to be charged the |
| |
18|taxpayer for the applicable school year. In reviewing applications |
| |
19|submitted by eligible taxpayers to determine whether they qualify |
| |
20|for a credit authorized by subparagraph a of paragraph 1 of |
| |
21|subsection C of this section, the Commission shall give first |
| |
22|preference in making installments to taxpayers who qualify pursuant |
| |
23|to divisions (1) and (2) of subparagraph a subparagraphs a and b of |
| |
24|paragraph 1 of subsection C of this section. The Commission shall |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 81
___________________________________________________________________________
1|make the installments based on the expected amount of tuition and |
| |
2|fee amounts on the affidavit submitted pursuant to this subsection. |
| |
3|For credits issued in fiscal year 2026 and subsequent fiscal years, |
| |
4|the application period shall open on January 15 prior to the |
| |
5|beginning of each school year. For any eligible student who is a |
| |
6|member of a household in which the total federal adjusted gross |
| |
7|income does not exceed One Hundred Fifty Thousand Dollars |
| |
8|($150,000.00), applications shall be submitted to the Commission |
| |
9|within the first sixty (60) days of the opening of the application |
| |
10|period to receive priority consideration. For students enrolled in |
| |
11|the full school year, the credit shall be paid in two installments, |
| |
12|one per school semester, to be paid no later than August 30 and |
| |
13|January 15, each of which shall be half of the total expected amount |
| |
14|of tuition and fees on the enrollment verification form submitted |
| |
15|pursuant to this subsection. For students enrolled in less than the |
| |
16|full school year, the credit shall be prorated by semester and |
| |
17|issued no later than thirty (30) days after the application is |
| |
18|approved or during the first thirty (30) days of the semester in |
| |
19|which the student is enrolled, whichever is later. The prorated |
| |
20|installment payment shall not be less than fifty percent (50%) of |
| |
21|the total expected amount of tuition and fees for the private school |
| |
22|based on the enrollment verification form submitted pursuant to this |
| |
23|subsection, but in no event shall an installment payment exceed the |
| |
24|amount of credit authorized by this section. |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 82
___________________________________________________________________________
1| F. Taxpayers claiming the credit shall: |
| |
2| 1. Only claim the credit for qualified expenses as defined in |
| |
3|paragraphs 6 and 7 of subsection A of this section to provide an |
| |
4|education for an eligible student; |
| |
5| 2. Ensure no other person is claiming a credit for the eligible |
| |
6|student; |
| |
7| 3. Not claim the credit for an eligible student who enrolls as |
| |
8|a full-time student in a public school district, public charter |
| |
9|school, public virtual charter school, or magnet school; and |
| |
10| 4. Comply with rules and requirements established by the |
| |
11|Commission for administration of the Oklahoma Parental Choice Tax |
| |
12|Credit Program; and |
| |
13| 5. Notify the Commission not later than thirty (30) days after |
| |
14|the date on which the eligible student: |
| |
15| a. enrolls in a public school, including an |
| |
16| open-enrollment charter school, |
| |
17| b. enrolls in a nonaccredited private school, |
| |
18| c. graduates from high school, or |
| |
19| d. is no longer utilizing credits authorized by |
| |
20| paragraph 1 of subsection C of this section for any |
| |
21| reason. |
| |
22| G. Eligible students may accept a scholarship from the Lindsey |
| |
23|Nicole Henry Scholarships for Students with Disabilities Program |
| |
24|created by Section 13-101.2 of Title 70 of the Oklahoma Statutes |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 83
___________________________________________________________________________
1|this title while participating in the Oklahoma Parental Choice Tax |
| |
2|Credit Program. |
| |
3| H. 1. The Commission shall have the authority to conduct an |
| |
4|audit or contract for the auditing of receipts for qualified |
| |
5|expenses submitted pursuant to subparagraph b of paragraph 1 |
| |
6|paragraph 3 of subsection C of this section. |
| |
7| 2. The Commission shall be authorized to recapture the credits |
| |
8|otherwise authorized by the provisions of this act the Oklahoma |
| |
9|Parental Choice Tax Credit Act on a prorated basis if an audit |
| |
10|conducted pursuant to this subsection shows that the credit was |
| |
11|claimed for expenditures that were not qualified expenses or it |
| |
12|finds that the taxpayer has claimed an eligible student who no |
| |
13|longer attends a private school or has enrolled in a public school |
| |
14|in the state. |
| |
15| 3. The Commission shall be authorized to reallocate credits to |
| |
16|the next eligible taxpayer in line when a taxpayer, on behalf of an |
| |
17|eligible student in the program, chooses not to participate, is no |
| |
18|longer eligible to participate, or chooses to forgo participation in |
| |
19|the program for any reason. |
| |
20| 4. The Commission shall provide notification of approval status |
| |
21|to applicants within thirty (30) days of application submission. |
| |
22|Notice to applicants with an eligible student whose parents or legal |
| |
23|guardians have a combined adjusted gross income of more than One |
| |
24|Hundred Fifty Thousand Dollars ($150,000.00) shall be sent within |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 84
___________________________________________________________________________
1|thirty (30) days or no later than thirty (30) days from the last day |
| |
2|of the priority consideration period. |
| |
3| I. In the event of a failure of revenue pursuant to the |
| |
4|Oklahoma State Finance Act, the tax credits otherwise authorized in |
| |
5|subsection C of this section shall be reduced proportionately to the |
| |
6|reduction in the amount of money appropriated to the State Board of |
| |
7|Education for the financial support of public schools for the fiscal |
| |
8|year in which the failure of revenue occurs. |
| |
9| J. The Commission shall make available on its website to be |
| |
10|updated monthly: |
| |
11| 1. The total the amount of credits claimed each tax year |
| |
12|pursuant to subparagraphs a and b of paragraph 1 paragraphs 1 |
| |
13|through 4 of subsection C of this section; |
| |
14| 2. The amount of credits claimed and number of students awarded |
| |
15|each fiscal year pursuant to paragraph 1 of subsection C of this |
| |
16|section disaggregated by income categories; |
| |
17| 3. The total amount of credits claimed and number of students |
| |
18|awarded who attended a public school in the semester immediately |
| |
19|preceding the school year for which the application is made each |
| |
20|year; and |
| |
21| 4. The total number of applications denied and total amount of |
| |
22|credits the denied applications represent for each fiscal year. |
| |
23| |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 85
___________________________________________________________________________
1| K. Credits received pursuant to this act shall not constitute |
| |
2|taxable income to a taxpayer who received the credit on behalf of an |
| |
3|eligible student. |
| |
4| SECTION 4. It being immediately necessary for the preservation |
| |
5|of the public peace, health or safety, an emergency is hereby |
| |
6|declared to exist, by reason whereof this act shall take effect and |
| |
7|be in full force from and after its passage and approval. |
| |
8|COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS |
|April 18, 2024 - DO PASS |
9| |
| |
10| |
| |
11| |
| |
12| |
| |
13| |
| |
14| |
| |
15| |
| |
16| |
| |
17| |
| |
18| |
| |
19| |
| |
20| |
| |
21| |
| |
22| |
| |
23| |
| |
24| |
| |
arsid2099194 SENATE FLOOR VERSION - HB3388 SFLR Page 86
