{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2385.26","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2385.26","heading":"Royalty interest owner - Withholding and deducting -","body":"Exceptions.\n\nA. Each remitter, except as otherwise provided in subsection B\n\nof this section, shall deduct and withhold from each payment being\n\nmade to any royalty interest owner in respect to production of oil\n\nand gas in this state, but not including that to which the remitter\n\nis entitled, an amount equal to the highest Oklahoma marginal\n\nindividual income tax rate pursuant to Section 2355 of this title of\n\nthe gross amount which would have otherwise been payable to the\n\nperson entitled to the payment.\n\nB. The obligation to deduct and withhold from payments as\n\nprovided in subsection A of this section does not apply to those\n\npayments which are made to:\n\n1. Current or permanent residents of Oklahoma;\n\n2. The United States, this state or any state or federal agency\n\nor political subdivision;\n\n3. Any charitable institution;\n\n4. Any federally recognized Indian tribe; or\n\n5. A publicly-traded partnership as defined by Section 7704 (b)\n\nof the Internal Revenue Code, 26 U.S. Code 7704 (b), that is treated\n\nas a partnership for federal tax purposes under Section 7704 (c) of\n\nthe Internal Revenue Code, 26 U.S. Code 7704 (c), or its publicly-\n\ntraded partnership affiliates. As used in this paragraph,\n\n\"publicly-traded partnership affiliates\" shall include any limited\n\nliability company or limited partnership for which at least eighty\n\npercent (80%) of the limited liability member interests or limited\n\npartnership interests of which are owned directly or indirectly by\n\nthe publicly-traded partnership.\n\nThe obligation to deduct and withhold from payments as provided\n\nin subsection A of this section does not apply if the remitter and\n\nthe royalty interest owner are the same person.\n\nC. Any royalty interest owner from whom an amount is withheld\n\npursuant to the provisions of subsection A of this section, or if\n\nthe royalty interest owner is not liable to the State of Oklahoma\n\nfor income taxes, any person to whom a royalty interest owner\n\nsubsequently distributes royalty payments with respect to which an\n\namount is withheld pursuant to the provisions of subsection A of\n\nthis section, and who files an income tax return with this state is\n\nentitled to a credit against the tax as shown on the return for the\n\namount withheld by the remitter under subsection A of this section.\n\nIf the amount withheld is greater than the tax due on the return,\n\nthe person filing the return shall be entitled to a refund in the\n\namount of the overpayment.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9588ab92e8b3f8b36cb6aa972f969811fc83bc7e6de4c137369e25162e10f295","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2385.25","next":"us-ok/okla.-stat.-tit.-68-68-2385.27"},"notice":"GroundRules: Original legal text. Not legal advice."}