{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2702","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2702","heading":"Contractual agreements to collect taxes and enforce and","body":"assess penalties by Tax Commission - Tax Commission Compliance Fund.\n\nA. The governing body of any incorporated city or town and the\n\nOklahoma Tax Commission shall enter into contractual agreements\n\nwhereby the Tax Commission shall have authority to assess, to\n\ncollect and to enforce any taxes or, penalties or interest thereon,\n\nlevied by such incorporated city or town, and remit the same to such\n\nmunicipality. Said assessment, collection, and enforcement\n\nauthority shall apply to any taxes, penalty or interest liability\n\nexisting at the time of contracting. Upon contracting, the Tax\n\nCommission shall have all the powers of enforcement in regard to\n\nsuch taxes, penalties and interest as are granted to or vested in\n\nthe contracting municipality. Such agreement shall provide for the\n\nassessment, collection, enforcement, and prosecution of such\n\nmunicipal tax, penalties and interest, in the same manner as and in\n\naccordance with the administration, collection, enforcement, and\n\nprosecution by the Tax Commission of any similar state tax except as\n\nprovided by agreement. Such agreement shall authorize the Tax\n\nCommission to retain an amount not to exceed one-half of one percent\n\n(0.5%) as a retention fee of municipal tax collected for services\n\nrendered in connection with such collections; provided, if a\n\nmunicipality files an action resulting in collection of delinquent\n\nstate and municipal taxes, the Tax Commission shall remit one-half\n\n(1/2) of the retention fee applied to the amount of such taxes to\n\nthe municipality to be apportioned as are other sales tax revenue.\n\nAll funds retained by the Tax Commission for the collection services\n\nto municipalities shall be deposited in the Oklahoma Tax Commission\n\nRevolving Fund in the State Treasury. The municipality shall agree\n\nto refrain from any assessment, collection, or enforcement of the\n\nmunicipal tax except as specified in an agreement made pursuant to\n\nsubsections A, C, D and E of this section.\n\nB. The Tax Commission shall place all sales taxes, including\n\npenalties and interest, collected on behalf of a municipality\n\npursuant to the provisions of this section and all use taxes,\n\nincluding penalties and interest, collected on behalf of a\n\nmunicipality pursuant to the provisions of Section 1411 of this\n\ntitle in the Sales Tax Remitting Account as provided in Section 1373\n\nof this title.\n\nC. Notwithstanding the provisions of subsection E of this\n\nsection, the Tax Commission and the governing body of any\n\nincorporated city or town may enter into contractual agreements\n\nwhereby the municipality would be authorized to implement or augment\n\nthe enforcement, collection and prosecution of the municipal tax in\n\nthose contracting municipalities and to provide for the satisfaction\n\nof refunds or credits to taxpayers. Such agreements shall and are\n\nhereby authorized to provide that the municipality and the Tax\n\nCommission may exchange necessary information to effectively carry\n\nout the terms of such agreements. The municipality, its officers\n\nand employees shall preserve the confidentiality of such information\n\nin the same manner and be subject to the same penalties as provided\n\nby Section 205 of this title, provided that the municipal prosecutor\n\nand other municipal enforcement personnel may receive all\n\ninformation necessary to implement or augment the enforcement and\n\nprosecution of municipal sales tax ordinances.\n\nD. Provided further that, upon the request of any incorporated\n\ncity or town, the Tax Commission shall enter into contractual\n\nagreements with such municipality whereby the municipality would be\n\nauthorized to implement or augment the enforcement, either directly\n\nor through contract with private auditors or audit firms, of the\n\nmunicipal tax. Any person performing an audit shall first be\n\napproved by the Tax Commission and, once approved, shall be\n\nappointed as an agent of the Tax Commission for purposes of the\ntractual\n\nagreements with such municipality whereby the municipality would be\n\nauthorized to implement or augment the enforcement, either directly\n\nor through contract with private auditors or audit firms, of the\n\nmunicipal tax. Any person performing an audit shall first be\n\napproved by the Tax Commission and, once approved, shall be\n\nappointed as an agent of the Tax Commission for purposes of the\n\naudit. Contracts with a private auditor or audit firm shall not be\n\nsubject to the limitations of Section 262 of this title and shall\n\nand are hereby authorized to provide that the municipality, private\n\nauditors or audit firms and the Tax Commission may exchange\n\nnecessary information to effectively carry out the terms of such\n\nagreements. The municipality, its officers and employees and\n\nprivate auditors or audit firms may receive all information\n\nnecessary to perform audits and shall preserve the confidentiality\n\nof such information in the same manner and be subject to the same\n\npenalties as provided by Section 205 of this title. Municipalities\n\nconducting audits directly or by contracting for private auditors or\n\naudit firms pursuant to this subsection shall furnish to the Tax\n\nCommission the audit results and all relevant supporting\n\ndocumentation. Further, such municipalities shall provide for the\n\npayment of private auditors or audit firms by deduction from the tax\n\nassessment resulting from the audit conducted by said private\n\nauditors or audit firms unless a municipality contracts with the\n\nauditor or audit firm for another method of payment. Any municipal\n\nsales tax funds recovered as a result of the services provided under\n\nthis subsection will not be included in calculating the retention\n\nfee retained by the Tax Commission pursuant to subsection A of this\n\nsection. The contracts authorized by subsection A of this section\n\nshall provide that the Tax Commission shall not have any obligations\n\nthereunder to any municipality that does not participate in an audit\n\nconducted under this subsection.\n\nE. 1. Pursuant to the provisions of this subsection, upon the\n\nrequest of any municipality, the Tax Commission shall enter into a\n\ncontractual agreement with the municipality whereby the municipality\n\nwould be authorized to engage in compliance activities, either\n\ndirectly or through contract with private persons or entities, to\n\naugment the collection of the municipal tax by the Tax Commission.\n\nThe sole responsibility for the administration of any and all such\n\ncompliance activities shall remain with the Tax Commission to ensure\n\nthat sellers and purchasers shall only be required to register, file\n\nreturns, and remit state and local taxes to one single authority,\n\nand that no enforcement activities are duplicated.\n\n2. Any contractual agreement entered into pursuant to paragraph\n\n1 of this subsection and any person or entity who will be performing\n\ncompliance activities shall first be approved by the Tax Commission\n\nin its sole discretion. Once approved, the private person or entity\n\nshall be appointed as an agent of the Tax Commission for purposes of\n\nsuch compliance activities. Any agreements entered into pursuant to\n\nparagraph 1 of this subsection shall provide that the municipality,\n\nprivate persons or entities appointed as an agent and the Tax\n\nCommission may exchange necessary information to effectively carry\n\nout the terms of the agreements. The municipality, its officers and\n\nemployees and any private person or entity appointed as an agent of\n\nthe Tax Commission may receive all information necessary for\n\ncompliance activities and shall preserve the confidentiality of the\n\ninformation in the same manner and be subject to the same penalties\n\nas provided by Section 205 of this title. Municipalities conducting\n\ncompliance activities directly or by contracting with private\n\nent of\n\nthe Tax Commission may receive all information necessary for\n\ncompliance activities and shall preserve the confidentiality of the\n\ninformation in the same manner and be subject to the same penalties\n\nas provided by Section 205 of this title. Municipalities conducting\n\ncompliance activities directly or by contracting with private\n\npersons or entities pursuant to this subsection shall furnish to the\n\nTax Commission the compliance results and all relevant supporting\n\ndocumentation and the Tax Commission shall take such information and\n\nissue proposed assessments or conduct other such administrative\n\naction as is necessary.\n\n3. There is hereby created in the State Treasury a revolving\n\nfund for the Oklahoma Tax Commission to be known as the \"Tax\n\nCommission Compliance Fund\". The fund shall be a continuing fund,\n\nnot subject to fiscal year limitations, and notwithstanding any\n\nother provisions of law, shall consist of the first three-fourths of\n\none percent (3/4 of 1%) of enhanced collections of state sales and\n\nuse taxes collected pursuant to an agreement entered into pursuant\n\nto paragraph 1 of this subsection. All monies accruing to the\n\ncredit of the fund are hereby appropriated and may be budgeted and\n\nexpended by the Oklahoma Tax Commission for the purpose of\n\nreimbursing a municipality for enhanced collections of state sales\n\ntaxes pursuant to an agreement entered into pursuant to paragraph 1\n\nof this subsection. Expenditures from the fund shall be made upon\n\nwarrants issued by the State Treasurer against claims filed as\n\nprescribed by law with the Director of the Office of Management and\n\nEnterprise Services for approval and payment.\n\n4. The Director of the Office of Management and Enterprise\n\nServices shall form an Implementation Working Group composed of\n\nrepresentatives of municipalities and of the Tax Commission and\n\nshall adopt a plan to implement this subsection by September 30,\n\n2011. The plan shall ensure that the Tax Commission shall maintain\n\na central point of collection and centralized administration and\n\nenforcement and further shall be consistent with all applicable\n\nstate laws.\n\nF. Any sum or sums collected or required to be collected\n\npursuant to a municipal sales tax levy shall be deemed to be held in\n\ntrust for the municipality, and, as trustee, the collecting vendor\n\nshall have a fiduciary duty to the municipality in regards to such\n\nsums and shall be subject to the trust laws of this state.","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":"15ce7bbca916b0411a870b72c8e684ff79571ed9e233c4704a8790ce7ab6e012","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2701","next":"us-ok/okla.-stat.-tit.-68-68-2702.1"},"notice":"GroundRules: Original legal text. Not legal advice."}