ENGROSSED SENATE
BILL NO. 481 	By:	Lamb, Rice, Johnson (Constance), Marlatt and Crutchfield of the Senate

			and

		Nelson and Sullivan of the House

[ revenue and taxation - modifying tax credit - effective date – 		emergency ]

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     47 O.S. 2001, Section 1132.3, as last amended by Section 1, Chapter 374, O.S.L. 2003 (47 O.S. Supp. 2008, Section 1132.3), is amended to read as follows:
Section 1132.3  A.  There shall be a credit allowed with respect to the fee for registration of a vehicle which is a replacement for a vehicle which was destroyed by a tornado on May 3, 1999, and which was registered pursuant to the provisions of Section 1132 of this title on such date.  The credit shall be a prorated amount based on the fee paid for the registration of the destroyed vehicle for the period of registration remaining as of May 3, 1999, and shall be applied to the registration fee for the replacement vehicle pursuant to the provisions of Section 1132 of this title.  In no event will the credit be refunded.
B.  There shall be a credit allowed with respect to the fee for registration of a vehicle which is a replacement for a vehicle which was destroyed by a tornado on October 9, 2001, and which was registered pursuant to the provisions of Section 1132 of this title on such date.  The credit shall be a prorated amount based on the fee paid for the registration of the destroyed vehicle for the period of registration remaining as of October 9, 2001, and shall be applied to the registration fee for the replacement vehicle pursuant to the provisions of Section 1132 of this title.  In no event will the credit be refunded.
C.  There shall be a credit allowed with respect to the fee for registration of a vehicle which is a replacement for a vehicle which was destroyed by a tornado on May 8 or 9, 2003, and which was registered pursuant to the provisions of Section 1132 of this title on such date.  The credit shall be a prorated amount based on the fee paid for the registration of the destroyed vehicle for the period of registration remaining as of May 8 or 9, 2003, and shall be applied to the registration fee for the replacement vehicle pursuant to the provisions of Section 1132 of this title.  In no event will the credit be refunded.
D.  There shall be a credit allowed with respect to the fee for registration of a vehicle which is a replacement for a vehicle which was destroyed by a tornado on February 10, 2009, and which was registered pursuant to the provisions of Section 1132 of this title on such date.  The credit shall be a prorated amount based on the fee paid for the registration of the destroyed vehicle for the period of registration remaining as of February 10, 2009, and shall be applied to the registration fee for the replacement vehicle pursuant to the provisions of Section 1132 of this title.  In no event will the credit be refunded.
SECTION 2.     AMENDATORY     68 O.S. 2001, Section 1362, as last amended by Section 69, Chapter 5, O.S.L. 2004 (68 O.S. Supp. 2008, Section 1362), is amended to read as follows:
Section 1362.  A.  Except as otherwise provided by Section 1361 of this title, the tax levied pursuant to the provisions of the Oklahoma Sales Tax Code, Section 1350 et seq. of this title, shall be remitted or paid to the Oklahoma Tax Commission by the vendor of tangible personal property, services, privileges, admissions, dues, fees, or any other item subject to the tax levied pursuant to the provisions of the Oklahoma Sales Tax Code.
B.  The amount of tax to be collected by the vendor or to be remitted by the holder of a direct payment permit on each sale shall be the applicable percentage of the gross receipts or gross proceeds thereof as provided by Section 1354 of this title.  The applicable percentage shall equal the combination of the state and any applicable municipal and county sales tax rates.  In computing the tax to be collected or remitted as the result of any transaction, the tax amount must be carried to the third decimal place when the tax amount is expressed in dollars.  The tax must be rounded to a whole cent using a method that rounds up to the next cent whenever the third decimal place is greater than four.  The vendor or direct payment permit holder may elect to compute the tax due on transactions on an item or invoice basis.
C.  For the convenience of the vendor or direct payment permit holder, the Tax Commission is hereby authorized to establish and revise, when necessary, bracket system guidelines to be followed in collecting the tax levied pursuant to the provisions of the Oklahoma Sales Tax Code, any municipal sales tax, or county sales tax.
The use of bracket system guidelines does not relieve the vendor or direct payment permit holder from the duty and liability to remit to the Tax Commission, an amount equal to the applicable percentage of the gross receipts or gross proceeds derived from all sales during the taxable period as provided by Section 1354 of this title.
D.  Except as otherwise provided by Section 1361 of this title, each person required pursuant to the provisions of the Oklahoma Sales Tax Code to make a sales tax report shall include in the gross proceeds derived from sales to consumers or users, the sales value of all tangible personal property which has been purchased for resale, manufacturing, or further processing, and withdrawn from stock in trade for use or consumption during the taxable period covered by such report, and shall pay the tax on the sales value of this tangible personal property withdrawn from stock in trade for consumption or use; provided, such tax shall not be due on such tangible personal property which has been donated for the purpose of assisting persons affected by the tornadoes occurring May 3, 1999, or May 8 or 9, 2003, or February 10, 2009.
E.  All persons, either within or without the state, selling merchandise or other tangible personal property in this state through peddlers, solicitors, or other salespersons who do not have established places of business in this state, shall remit or pay the tax levied pursuant to the provisions of the Oklahoma Sales Tax Code and shall be required to file reports and pay the taxes due on all sales made to consumers or users by themselves or by their peddlers, solicitors, or other salespersons.
F.  All persons defined as Group Five vendors remitting sales tax based upon use of motor fuel or diesel fuel as a sale shall include in a monthly sales tax report the number of gallons of fuel so used and the sales price of the motor fuel or diesel fuel.  The amount of tax to be remitted by the Group Five vendor shall be the applicable percentage as provided by Section 1354 of this title, of the sales price of the fuel used during the applicable reporting period.
SECTION 3.     AMENDATORY     68 O.S. 2001, Section 1367.1, as last amended by Section 73, Chapter 5, O.S.L. 2004 (68 O.S. Supp. 2008, 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 as follows:
1.  For sellers or vendors participating in the Oklahoma Tax Commission’s electronic funds transfer and electronic data interchange program, two and one-fourth percent (2 1/4%) of the tax due under the applicable provisions of this title; and
2.  For all other sellers or vendors, one and one-fourth percent (1 1/4%) of the tax due under the applicable provisions of this title.  The Tax Commission is authorized to allow a vendor to deduct two and one-fourth percent (2 1/4%) if the Tax Commission determines that the vendor is unable to participate in the Tax Commission’s electronic funds transfer and electronic data interchange program.
Such deduction shall not be allowed with respect to a direct payment permit.
B.  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, or February 10, 2009.
C.  Notwithstanding the formula provided by subsection A of this section, the deduction provided by this section shall be limited to a maximum of Three Thousand Three Hundred Dollars ($3,300.00) 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 Three-Thousand-Three-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.
SECTION 4.     AMENDATORY     68 O.S. 2001, Section 2103.1, as last amended by Section 4, Chapter 374, O.S.L. 2003 (68 O.S. Supp. 2008, Section 2103.1), is amended to read as follows:
Section 2103.1  There shall be a credit allowed with respect to the excise tax paid for a vehicle which is:
1.  A replacement for a vehicle which was destroyed by a tornado on May 3, 1999, and upon which excise tax had been paid pursuant to the provisions of Section 2103 of this title on or after May 3, 1998;
2.  A replacement for a vehicle which was destroyed by a tornado on October 9, 2001, and upon which excise tax had been paid pursuant to the provisions of Section 2103 of this title on or after October 9, 2000; or
3.  A replacement for a vehicle which was destroyed by a tornado on May 8 or 9, 2003, and upon which excise tax had been paid pursuant to the provisions of Section 2103 of this title on or after May 8 or 9, 2002; or
4.  A replacement for a vehicle which was destroyed by a tornado on February 10, 2009, and upon which excise tax had been paid pursuant to the provisions of Section 2103 of this title on or after February 10, 2008.
The credit shall be in the amount of the excise tax which was paid for the destroyed vehicle and shall be applied to the excise tax due on the replacement vehicle.  In no event shall the credit be refunded.
SECTION 5.     AMENDATORY     68 O.S. 2001, Section 2357.29, as last amended by Section 5, Chapter 374, O.S.L. 2003 (68 O.S. Supp. 2008, Section 2357.29), is amended to read as follows:
Section 2357.29  A.  For tax years beginning after December 31, 1999, there shall be allowed a credit against the tax imposed by Section 2355 of this title for owners of residential real property whose primary residence was damaged or destroyed in the May 3, 1999, tornado.  For tax years beginning after December 31, 2001, there shall be allowed a credit against the tax imposed by Section 2355 of this title for owners of residential real property whose primary residence was damaged or destroyed in the October 9, 2001, tornado.  For tax years beginning after December 31, 2003, there shall be allowed a credit against the tax imposed by Section 2355 of this title for owners of residential real property whose primary residence was damaged or destroyed in the May 8 or 9, 2003, tornado.  For tax years beginning after December 31, 2009, there shall be allowed a credit against the tax imposed by Section 2355 of this title for owners of residential real property whose primary residence was damaged or destroyed in the February 10, 2009, tornado.  The amount of the credit shall be the difference between the ad valorem property tax paid on such property and improvements in the year prior to the tornado damage or destruction and the amount of ad valorem property tax paid on the property and improvements the first year after the improvement is completely or fully repaired or rebuilt.  For purposes of this credit, the amount of ad valorem property tax paid the first year after the improvement is repaired or rebuilt shall be based on the same or similar square footage as the improvement which was damaged or destroyed.
B.  The credit shall be a refundable credit.  Eligible taxpayers shall be entitled to claim this credit for five (5) consecutive years.  After the first year the credit is claimed, the amount of the credit shall be eighty percent (80%) of the previous year’s credit.  If the taxpayer has no income tax liability, or if the credit exceeds the amount of the income tax liability of the taxpayer, then the credit, or balance thereof, shall be paid out in the same manner and out of the same fund as refunds of income taxes are paid and so much of the fund as is necessary for such purposes is hereby appropriated.
C.  In order to qualify for this credit:
1.  The property shall have been damaged or destroyed by a tornado or similar cyclonic winds on May 3, 1999, October 9, 2001, or May 8 or 9, 2003, or February 10, 2009;
2.  The property shall be within an area which has been declared a federal disaster area;
3.  The property shall be the primary residence of the owner both prior to and after the tornado;
4.  The owner shall have been granted a homestead exemption or be eligible to claim a homestead exemption both prior to and after the tornado;
5.  The primary residence shall be repaired or rebuilt on the same property as it existed prior to the tornado; and
6.  The primary residence shall be repaired or rebuilt and used as the primary residence no later than December 31, 2001, with respect to the May 3, 1999, tornado, no later than December 31, 2003, with respect to the October 9, 2001, tornado, or no later than December 31, 2005, with respect to the May 8 or 9, 2003, tornado or no later than December 31, 2011, with respect to the February 10, 2009, tornado.
D.  The credit shall not be allowed if the property is transferred or title is changed or conveyed as defined in Section 2802.1 of this title.  Any credit claimed and allowed prior to the transfer of the property or the change or conveyance of title shall not be affected.
E.  The Oklahoma Tax Commission shall promulgate any necessary rules and develop any necessary forms to implement the provisions of this section.
SECTION 6.     AMENDATORY     Section 1, Chapter 439, O.S.L. 2005, as amended by Section 16, Chapter 272, O.S.L. 2006 (68 O.S. Supp. 2008, Section 2357.46), is amended to read as follows:
Section 2357.46  A.  For tax years beginning after December 31, 2005, and ending before January 1, 2010, there shall be allowed a credit against the tax imposed by Section 2355 of Title 68 of Oklahoma Statutes this title for eligible expenditures incurred by a contractor in the construction of energy efficient residential property of two thousand (2,000) square feet or less.  For tax years beginning on or after January 1, 2010, there shall be allowed a credit against the tax imposed by Section 2355 of this title for eligible expenditures incurred by a contractor in the construction of energy efficient residential property which is of any size.  The amount of the credit shall be based upon the following:
1.  For any eligible energy efficient residential property constructed and certified as forty percent (40%) or more above the International Energy Conservation Code 2003 and any supplement in effect at the time of completion, the amount of the credit shall be equal to the eligible expenses, not to exceed Four Thousand Dollars ($4,000.00) for the taxpayer who is the contractor; and
2.  For any eligible energy efficient residential property constructed and certified as between twenty percent (20%) and thirty-nine percent (39%) above the International Energy Conservation Code 2003 and any supplement in effect at the time of completion, the credit shall be equal to the eligible expenditures, not to exceed Two Thousand Dollars ($2,000.00) for the taxpayer who is the contractor.
B.  As used in this section:
1.  “Eligible expenditure” means any:
a.	energy efficient heating or cooling system,
b.	insulation material or system which is specifically and primarily designed to reduce the heat gain or loss of a residential property when installed in or on such property,
c.	exterior windows, including skylights,
d.	exterior doors, and
e.	any metal roof installed on a residential property, but only if such roof has appropriate pigmented coatings which are specifically and primarily designed to reduce the heat gain of such dwelling unit and which meet Energy Star program requirements;
2.  “Contractor” means the taxpayer who constructed the residential property or manufactured home, or if more than one taxpayer qualifies as the contractor, the primary contractor; and
3.  “Eligible energy efficient residential property” means a newly constructed residential property or manufactured home property which is located in the State of Oklahoma and substantially complete after December 31, 2005, and which is two thousand (2,000) square feet or less for credits claimed for tax years ending before January 1, 2010, and which is of any size for credits claimed for tax years beginning on and after January 1, 2010:
a.	for the credit provided pursuant to paragraph 1 of subsection A of this section, which is certified by an accredited Residential Energy Services Network Provider using the Home Energy Rating System to have:
(1)	a level of annual heating and cooling energy consumption which is at least forty percent (40%) below the annual level of heating and cooling energy consumption of a comparable residential property constructed in accordance with the standards of Chapter 4 of the 2003 International Energy Conservation Code, as such code is in effect on the effective date of this act,
(2)	heating and cooling equipment efficiencies which correspond to the minimum allowed under the regulations established by the Department of Energy pursuant to the National Appliance Energy Conservation Act of 1987 and in effect at the time of construction of the property, and
(3)	building envelope component improvements which account for at least one-fifth of the reduced annual heating and cooling energy consumption levels,
b.	for the credit provided pursuant to paragraph 2 of subsection A of this section, which is certified by an accredited Residential Energy Services Network Provider using the Home Energy Rating System to have:
(1)	a level of annual heating and cooling energy consumption which is between twenty percent (20%) and thirty-nine percent (39%) below the annual level of heating and cooling energy consumption of a comparable residential property constructed in accordance with the standards of Chapter 4 of the 2003 International Energy Conservation Code, as such code is in effect on the effective date of this act,
(2)	heating and cooling equipment efficiencies which correspond to the minimum allowed under the regulations established by the Department of Energy pursuant to the National Appliance Energy Conservation Act of 1987 and in effect at the time of construction of the property, and
(3)	building envelope component improvements which account for at least one-third of the reduced annual heating and cooling energy consumption levels.
C.  The credit provided for in subsection A of this section may only be claimed once for the contractor of any eligible residential energy efficient property during the taxable year when the property is substantially complete.
D.  If the credit allowed pursuant to this section exceeds the amount of income taxes due or if there are no state income taxes due on the income of the taxpayer, the amount of credit allowed but not used in any taxable year may be carried forward as a credit against subsequent income tax liability for a period not exceeding four (4) years following the qualified expenditures.
E.  For credits earned on or after the effective date of this act, the credits authorized by this section shall be freely transferable to subsequent transferees.
F.  The Oklahoma Tax Commission shall promulgate rules necessary to implement this act.
SECTION 7.     AMENDATORY     68 O.S. 2001, Section 2888, as last amended by Section 6, Chapter 374, O.S.L. 2003 (68 O.S. Supp. 2008, Section 2888), is amended to read as follows:
Section 2888.  A.  1.  The term “homestead”, as used in the provisions of the Ad Valorem Tax Code governing homestead exemptions, shall mean and include the actual residence of a natural person who is a citizen of the State of Oklahoma, provided the record actual ownership of such residence be vested in such natural person residing and domiciled thereon.  Any single person of legal age, married couple and their minor child or children, or the minor child or children of a deceased person, whether residing together or separated, or surviving spouse shall be allowed under Section 2801 et seq. of this title only one homestead exemption in this state.  No person or the family of such person shall be required to be domiciled thereon if such person is in the armed service of the United States in time of war or during a state of national emergency as declared by the Congress or the President of the United States, and such person shall not be required to be domiciled thereon in order to assert or claim the exemption provided in Section 2889 of this title, and such exemption may be claimed by any agent of, or member of the family of, such person.  The surviving spouse and/or minor children of a deceased person shall be considered record owners of the homestead where the title of record in the office of the county clerk on January 1 is in the name of the deceased, but in all other cases the deed or other evidence of ownership must be of record in the office of the county clerk on January 1 in order for any person to be qualified as the record owner.  However, a natural person actually owning, residing and domiciled in the residence on January 1 shall be deemed to be the record owner of the residence on January 1, within the meaning of this section, if the deed or other evidence of ownership of such person, executed on or before January 1, be of record in the office of the county clerk on or before February 1 immediately following.  Despite any provision to the contrary in this section, if a parent or parents residing and domiciled in the residence own the residence jointly with one or more of their children, whether residing together or separated, and where the record joint ownership of the property is recorded in the office of the county clerk in accordance with the provisions of this section, the parent or parents residing and domiciled in the residence shall be entitled to the entire homestead exemption.  A rural homestead shall not include more than one hundred sixty (160) acres of land and the improvements thereon.  An urban homestead shall not include any land except the lot or lots, or the unplatted tract, upon which are located the dwelling, garage, barn and/or other outbuildings necessary or convenient for family use.
2.  Despite any provision to the contrary in this section, the person actually owning, residing and domiciled in the residence on May 15, 2000, shall be deemed to be the record owner of the residence on May 15, 2000, within the meaning of this section, if the deed or other evidence of ownership of such person, executed on or before May 15, 2000, be of record in the office of the county clerk on or before such date.  However, the provisions of this paragraph shall only apply to any person who is eligible to claim the income tax credit pursuant to Section 2357.29 of this title with respect to the May 3, 1999, tornado, or to any person whose primary residence was damaged or destroyed in the May 3, 1999, tornado and who purchased or built a new primary residence at a location within this state other than the location of the damaged or destroyed residence.
3.  Despite any provision to the contrary in this section, the person actually owning, residing and domiciled in the residence on May 15, 2004, shall be deemed to be the record owner of the residence on May 15, 2004, within the meaning of this section, if the deed or other evidence of ownership of such person, executed on or before May 15, 2004, be of record in the office of the county clerk on or before such date.  However, the provisions of this paragraph shall only apply to any person who is eligible to claim the income tax credit pursuant to Section 2357.29 of this title with respect to the May 8 or 9, 2003, tornado or to any person whose primary residence was damaged or destroyed in the May 8 or 9, 2003, tornado and who purchased or built a new primary residence at a location within this state other than the location of the damaged or destroyed residence.
4.  Despite any provision to the contrary in this section, the person actually owning, residing and domiciled in the residence on May 15, 2010, shall be deemed to be the record owner of the residence on May 15, 2010, within the meaning of this section, if the deed or other evidence of ownership of such person, executed on or before May 15, 2010, be of record in the office of the county clerk on or before such date.  However, the provisions of this paragraph shall only apply to any person who is eligible to claim the income tax credit pursuant to Section 2357.29 of this title with respect to the February 10, 2009, tornado or to any person whose primary residence was damaged or destroyed in the February 10, 2009, tornado and who purchased or built a new primary residence at a location within this state other than the location of the damaged or destroyed residence.
B.  The term “rural homestead” as used herein shall mean and include any homestead located outside a city or town or outside any platted subdivision or addition.
C.  The term “urban homestead” as used herein shall mean and include any homestead located within any city or town whether incorporated or unincorporated, or located within a platted subdivision or addition, whether such subdivision or addition be a part of a city or town.  In no case shall an urban homestead exceed in area one (1) acre.
SECTION 8.  Section 6 of this act shall become effective January 1, 2010.
SECTION 9.  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 12th day of March, 2009.

	
Presiding Officer 	of the Senate

Passed the House of Representatives the ____ day of __________, 2009.

	
Presiding Officer	of the House
	of Representatives