ENROLLED SENATE
BILL NO. 1321	By:	Gumm, Russell and Corn of the Senate
	
			and

		Terrill, Buck and Dorman of the House

An Act relating to sales tax; amending 68 O.S. 2001, Section 1361.1, as amended by Section 2, Chapter 272, O.S.L. 2006 (68 O.S. Supp. 2009, Section 1361.1), which relates to sales tax vendor liability; modifying penalty for vendor who fails to honor certain exemption; stating misdemeanor offense; requiring Oklahoma Tax Commission to refer certain vendors to District Attorney; providing for specified penalty; making certain written communications public; defining terms; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1.     AMENDATORY     68 O.S. 2001, Section 1361.1, as amended by Section 2, Chapter 272, O.S.L. 2006 (68 O.S. Supp. 2009, Section 1361.1), is amended to read as follows:

Section 1361.1  A.  If a vendor, in good faith, timely accepts from a consumer properly completed documentation certified by the Oklahoma Tax Commission that such consumer is exempt from the taxes levied by the Oklahoma Sales Tax Code, the vendor shall be relieved of any liability for any sales tax or the duty to collect any sales tax imposed by the provisions of Section 1361 of this title upon such vendor with respect to such sale.

B.  A vendor who has actual knowledge that a consumer is entitled to an exemption under paragraph 34 of Section 1357 of this title and who willfully or intentionally refuses to honor the exemption shall be punished by an administrative fine of Five Hundred Dollars ($500.00) per offense.  A second or subsequent violation of this subsection shall be unlawful and constitute a misdemeanor offense punishable by a fine of not more than Five Hundred Dollars ($500.00) per such offense, in addition to any administrative fine.  The Tax Commission shall refer any vendor who has more than once willfully or intentionally refused to honor the exemption, whether fined or not, to the district attorney where the vendor is located for prosecution.  For the purposes of this subsection, “vendor” means any individual most responsible for supervising, and the conduct of, any employee who intentionally refuses to honor the exemption including, but not limited to, a manager, owner, partner or corporate officer.

C.  Any written communication between the Commission and any holder of a sales tax permit that is an attempt by the Commission to enforce the provisions of this section shall be public and, notwithstanding any other provision of law, no presumption of confidentiality shall exist for such communications.  The Commission shall, upon request of any consumer entitled to an exemption under paragraph 34 of Section 1357 of this title, transmit to such consumer copies of such communication.

SECTION 2.  This act shall become effective July 1, 2010.

SECTION 3.  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.

Passed the Senate the 25th day of May, 2010.

	
Presiding Officer 	of the Senate

Passed the House of Representatives the 27th day of May, 2010.

	
Presiding Officer	of the House
	of Representatives