New law will assure greater tax compliance for out-of-state companies doing business in Oklahoma

Posted by: Communications Manager on Friday, May 19, 2017 at 12:00:00 am

A measure to assist the Oklahoma Tax Commission’s (OTC) efforts to ensure all taxes owed by out-of-state companies are remitted has been signed into law.  Rep. Kyle Hilbert, R-Depew, and Sen. James Leewright, R- Bristow, are the principal authors of House Bill 1427, the Out-of-State Tax Collections Enforcement Act of 2017.

The legislation authorizes the creation of a dedicated division within the agency so the Commission will be able to use its trained personnel to focus solely on out-of-state vendors who may not be in compliance with Oklahoma tax code.

“I’m pleased that my colleagues in the legislature and the governor have realized the potential of this legislation,” Hilbert said.  “Many other states already do this, and it’s a way to ensure that companies that operate in Oklahoma will pay their fair share of state taxes. Very simply, this is money these out-of-state vendors owe our state.”

OTC Executive Director Tony Mastin expressed his thanks to Hilbert and Leewright, adding the Commission strongly supported the measure.

“I am very appreciative of the legislative support strengthening the Tax Commission’s ability to ensure out-of-state companies are complying with Oklahoma state and local tax laws,” Mastin said.

Leewright said when looking at tax policy in the state, he felt it was important to make sure those out-of-state companies doing business here in Oklahoma were correctly remitting what they owed.

“This legislation is about giving the Tax Commission the tools necessary to ensure these companies are in compliance,” Leewright said.  “It’s good management and assists our efforts to be the best stewards possible of public resources on behalf of our citizens.  We appreciate the support of our fellow members and the governor.”   

HB 1427 takes effect beginning November 1, 2017.

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