Okla. Stat. tit. 68, § 68-219.1: Abatement of tax liability and interest and penalties

accruing thereto - Settlement agreement - Considerations.

A. In accordance with the provisions of the amendment to

Section 5 of Article X of the Oklahoma Constitution as set forth in

Senate Joint Resolution No. 32 of the 2nd Session of the 48th

Oklahoma Legislature, the Oklahoma Tax Commission is hereby

authorized to abate all or any portion of tax liability and interest

and penalties accruing thereto, pursuant to a settlement agreement

entered into with a taxpayer, if the Tax Commission finds, by clear

and convincing evidence, that:

1. Collection of the tax liability and interest and penalties

accruing thereto would reasonably result in the taxpayer declaring

bankruptcy;

2. The tax is uncollectible due to insolvency of the taxpayer

resulting from factors beyond the control of the taxpayer or for

other similar cause beyond the control of the taxpayer;

3. The tax liability is attributable to actions of a person

other than the taxpayer and it would be inequitable to hold the

taxpayer liable for the tax liability; or

4. In cases of nonpayment of trust fund taxes, the taxes were

not collected by the taxpayer from its customer and the taxpayer had

a good faith belief that collection of the taxes was not required.

B. The Tax Commission may consider the following circumstances,

in addition to any other aggravating or mitigating circumstances, in

determining whether or not to enter into an agreement pursuant to

the provisions of this section:

1. Whether the taxpayer has made efforts in good faith to

comply with the tax laws of this state;

2. Whether the taxpayer has benefited from nonpayment of the

tax; and

3. Involvement of the taxpayer in economic activity from which

the tax liability originated.

C. All agreements entered into pursuant to the provisions of

this section shall provide for the collection of all or a portion of

the tax liability if at all possible, and in all cases collection of

the tax liability shall take precedence over collection of interest

and penalties.

D. Any abatement of tax liability authorized by this section

shall only be granted by a unanimous vote of the members of the Tax

Commission. The decision of the members of the Tax Commission in

denying the abatement of any tax liability pursuant to this section

shall be final and no right of appeal to any court may be taken from

such decision.

E. In any case where the amount of tax liability to be abated

pursuant to an agreement entered into pursuant to the provisions of

this section exceeds Twenty-five Thousand Dollars ($25,000.00), the

agreement shall not become effective until it shall have been

approved by one of the judges of the district court of Oklahoma

County, after a full hearing thereon. Such judge shall be assigned

to the matter by the chief judge on a rotating basis.

F. The provisions of this section shall not be construed to

grant any legal right to any taxpayer for the abatement of any tax

liability. A decision to grant abatement of tax liability pursuant

to the provisions of this section shall be a discretionary act

within the authority of the members of the Tax Commission.

G. No appointed or elected official shall be eligible to seek

relief pursuant to any of the provisions of this section.

H. The Tax Commission shall promulgate rules to implement the

provisions of this section.