STATE OF OKLAHOMA

1st Session of the 54th Legislature (2013)

HOUSE BILL 1007	By:	Brown

AS INTRODUCED

An Act relating to revenue and taxation; enacting the Buy America First Act of 2013; amending 68 O.S. 2011, Section 1367.1, which relates to vendor discounts for sales tax; modifying provisions related to vendor discounts; removing maximum amount retained by vendors; requiring Oklahoma Department of Commerce to develop system for identification of certain inventory; providing certain exception; amending 68 O.S. 2011, Section 1353, as amended by Section 540, Chapter 304, O.S.L. 2012 (68 O.S. Supp. 2012. Section 2358), which relates to apportionment of sales tax revenues; providing for apportionment of certain incremental sales tax revenue to the Buy America First Revolving Fund; creating Buy America First Revolving Fund; providing for apportionment of monies to fund; providing for expenditures by the Oklahoma Department of Commerce; providing for development of program to assist certain small business entities; providing for codification; providing for noncodification; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law not to be codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the “Buy America First Act of 2013”.
SECTION 2.     AMENDATORY     68 O.S. 2011, Section 1367.1, is amended to read as follows:
Section 1367.1  A.  For the purpose of compensating the seller or vendor in keeping sales tax records, filing reports and remitting the tax when due, a seller or vendor shall be allowed a deduction of one percent (1%) of the tax due under the applicable provisions of this title.
Such deduction shall not be allowed with respect to a direct payment permit.
B.  Effective July 1, 2013, a vendor may retain three percent (3%) of the tax due under the applicable provisions of this title for goods that have been certified as having been made or manufactured in the United States of America.  The Oklahoma Tax Commission shall modify the sales tax report or sales tax reporting system in a manner that allows a vendor to separately identify goods for which the discount prescribed by this subsection is authorized from other goods not made or manufactured in the United States.   If a vendor sells goods that are not identified as having been made or manufactured in the United States, a vendor may retain one percent (1%) of the tax due under the applicable provisions of this title.  The Oklahoma Department of Commerce shall develop and implement a system for the identification of goods made or manufactured in the United States to allow a vendor to clearly identify such goods in the inventory of the vendor and at the time such goods are sold for purposes of computing the discount amount authorized by this subsection with respect to goods made or manufactured in the United States.  The provisions of this subsection shall not be applicable to the sale of food items or agricultural products.
C.  No deductions from tax shall be allowed if any such report or payment of tax is delinquent; provided, the deduction shall be allowed if the Oklahoma Tax Commission determines that the reason that such report or payment of tax was delinquent was due to the tornadoes occurring May 3, 1999, or May 8 or 9, 2003.
C.  Notwithstanding the formula provided by subsection A of this section, the deduction provided by this section shall be limited to a maximum of Two Thousand Five Hundred Dollars ($2,500.00) per month per sales tax permit.  No such sales tax permit holder may change sales tax permit status in order to avoid the provisions of this subsection.
D.  Notwithstanding any other provision of law, an amount equal to the excess of the amount calculated by the formula provided by subsection A of this section over the two-thousand-five-hundred-dollar limit provided by subsection C of this section shall be retained by the state as an administrative expense and deposited to the General Revenue Fund.
E. D.  Notwithstanding the provisions of subsections A, B, and C and D of this section, in the event that federal authority authorizes this state to require remote sellers to collect and remit sales and use taxes, the Oklahoma Tax Commission is authorized and directed to promulgate rules which provide for deductions in the amounts and subject to the limitations provided in the Streamlined Sales and Use Tax Agreement.  All sellers or vendors shall be eligible for such deductions beginning on the date this state acquires such collection authority pursuant to federal authorization.
F. E.  For purposes of this section, the term “remote seller” shall mean a seller that would not register to collect sales and use taxes in this state but for the ability of this state to require such remote seller to collect sales or use tax under federal authority.
SECTION 3.     AMENDATORY     68 O.S. 2011, Section 1353, as amended by Section 540, Chapter 304, O.S.L. 2012 (68 O.S. Supp. 2012, Section 1353), is amended to read as follows:
Section 1353.  A.  It is hereby declared to be the purpose of the Oklahoma Sales Tax Code to provide funds for the financing of the program provided for by the Oklahoma Social Security Act and to provide revenues for the support of the functions of the state government of Oklahoma, and for this purpose it is hereby expressly provided that, revenues derived pursuant to the provisions of the Oklahoma Sales Tax Code, subject to the apportionment requirements for the Oklahoma Tax Commission and Office of Management and Enterprise Services Joint Computer Enhancement Fund provided by Section 265 of this title, and except as otherwise provided by subsection C of this section, shall be apportioned as follows:
1.	a.	the following amounts shall be paid to the State Treasurer to be placed to the credit of the General Revenue Fund to be paid out pursuant to direct appropriation by the Legislature:
Fiscal Year	Amount
FY 2003 and FY 2004	86.04%
FY 2005	85.83%
FY 2006	85.54%
FY 2007	85.04%
FY 2008 and each fiscal year thereafter	83.61%
b.	in the event that additional monies are necessary pursuant to paragraph 6 of this subsection, such additional monies shall be deducted in the proportion determined by the State Board of Equalization pursuant to paragraph 3 of Section 2355.1B of this title from the monies apportioned to the General Revenue Fund;
2.  For FY 2003, FY 2004 and FY 2005, ten and forty-two one-hundredths percent (10.42%), shall be paid to the State Treasurer to be placed to the credit of the Education Reform Revolving Fund of the State Department of Education and for FY 2006 and each fiscal year thereafter, ten and forty-six one-hundredths percent (10.46%) shall be paid to the State Treasurer to be placed to the credit of the Education Reform Revolving Fund of the State Department of Education;
3.  The following amounts shall be paid to the State Treasurer to be placed to the credit of the Teachers' Retirement System Dedicated Revenue Revolving Fund:
Fiscal Year	Amount
FY 2003 and FY 2004	3.54%
FY 2005	3.75%
FY 2006	4.0%
FY 2007	4.5%
FY 2008 and each fiscal year thereafter	5.0%
4.  For the fiscal year beginning July 1, 2010, and for each fiscal year thereafter, eighty-seven one-hundredths percent (0.87%) shall be paid to the State Treasurer to be further apportioned as follows:
a.	thirty-six percent (36%) shall be placed to the credit of the Oklahoma Tourism Promotion Revolving Fund, and
b.	sixty-four percent (64%) shall be placed to the credit of the Oklahoma Tourism Capital Improvement Revolving Fund; and
5.  For the fiscal year beginning July 1, 2010, and for each fiscal year thereafter, six one-hundredths percent (0.06%) shall be placed to the credit of the Oklahoma Historical Society Capital Improvement and Operations Revolving Fund.
6.  During the first fiscal year after the State Board of Equalization has made a determination as provided in Section 2355.1B of this title, regarding a baseline amount of revenue apportioned pursuant to paragraph 3 of this subsection, and for each fiscal year thereafter, in no event shall monies apportioned pursuant to paragraph 3 of this subsection, paragraph 3 of Section 1403 of this title and subparagraph c of paragraph 1 of Section 2352 of this title be less than such baseline amount.
B.  Provided, for the fiscal year beginning July 1, 2007, and every fiscal year thereafter, an amount of revenue shall be apportioned to each municipality or county which levies a sales tax subject to the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title equal to the amount of sales tax revenue of such municipality or county exempted by the provisions of Section 1357.10 of this title and subsection F of Section 2701 of this title.  The Oklahoma Tax Commission shall promulgate and adopt rules necessary to implement the provisions of this subsection.
C.  Effective July 1, 2013, before any other apportionment of revenue is made pursuant to the provisions of this section, the amount of sales tax revenue attributable to the increase in sales tax collections resulting from the discount provisions of subsection B of Section 1367.1 of this title and as amended by Section 2 of this act shall be apportioned to the “Buy America First Revolving Fund” created by Section 4 of this act for use by the Oklahoma Department of Commerce.
SECTION 4.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 5501 of Title 74, unless there is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund for the Oklahoma Department of Commerce to be designated the “Buy America First Revolving Fund”.  The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Oklahoma Department of Commerce from increased sales tax revenues attributable to the provisions of Section 1367.1 of Title 68 of the Oklahoma Statutes.  All monies accruing to the credit of said fund are hereby appropriated and may be budgeted and expended by the Oklahoma Department of Commerce for the purpose of providing assistance to small business enterprises that produce goods which are eligible to be identified as "Made in America".  Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of State Finance for approval and payment.
SECTION 5.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 5502 of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  The Oklahoma Department of Commerce shall develop and implement a program to assist small start-up businesses the inventory of which consists either exclusively of goods made or manufactured in the United States of America or the inventory of which consists of not less than seventy-five percent (75%) of goods made or manufactured in the United States of America.
B.  The Department shall use monies available from the Buy America First Revolving Fund as provided in Section 4 of this act.
SECTION 6.  This act shall become effective July 1, 2013.
SECTION 7.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

54-1-5731	MAH	01/06/13