Okla. Stat. tit. 68, § 68-1209: Capital - Computation

(a) For the purpose of computing the amount of annual franchise

tax levied upon and payable by the corporations, associations and

organizations enumerated in Sections 1203 and 1204 of this title,

the word "capital" shall be construed to include the following:

Outstanding capital stock, surplus and undivided profits, which

shall include any amounts designated for the payment of dividends

until such amounts are definitely and irrevocably placed to the

credit of stockholders subject to withdrawal on demand, plus the

amount of bonds, notes, debentures or other evidences of

indebtedness maturing and payable more than three (3) years after

issuance. The term "capital" stock where herein used shall include

all written evidence of interest or ownership in the control or

management of a corporation or other organization. The term

"evidence of indebtedness" where herein used shall not include any

deposit made in any bank.

(b) Advances made by a parent to a subsidiary or by a subsidiary

to a parent corporation, organization or association shall be

eliminated by both the parent and subsidiary from the calculations

necessary to determine the amount of taxable capital employed in the

business of either or both the parent and subsidiary. Provided,

however, advances made for purely operating expenses may, upon

proper showing, satisfactory to the Tax Commission, be included in

such calculations.

(c) The amount of capital employed in this state is hereby

declared to be that portion of the capital of the corporation,

association or organization which equals the proportion which the

property owned, or property owned and business done, in Oklahoma

bears to the total property owned, or total property owned and total

business done, by the corporation, association or organization.

(d) In the determination of the amount of tax payable under this

article where intangibles are involved, such as notes, accounts

receivable, stocks, bonds, and other securities, including cash, and

the business of the corporation is managed, directed and controlled

from within the State of Oklahoma, the value of such intangibles

shall be apportioned wholly to Oklahoma, unless a commercial or

business situs for such intangibles has been established elsewhere.

(e) Management, direction and control of the corporation's

business shall be deemed to be within the State of Oklahoma where

(1) the corporation is incorporated under the laws of Oklahoma, or

(2) where any corporation organized under the laws of some other

state transacts in Oklahoma its principal business, or maintains in

this state its "business domicile" or "commercial domicile".

(f) The portion of capital of any corporation, association or

organization employed in this state, shall be segregated, and its

value stated, based upon the proportions herein prescribed, and

shall be reported to the Tax Commission; and the amount of said

capital so reported shall be prima facie the measure of the value of

the capital of such corporation, association or organization,

apportioned to this state, for the purposes of this article.

(g) The capital of a bank holding company or multi-bank holding

company shall not include the capital, as defined in this article,

of the owned bank or banks. Such banks, bank holding companies and

multi-bank holding companies each shall comply with the terms of

this article as separate corporations.