Oklahoma Statutes Annotated 
Title 68. Revenue and Taxation (Refs & Annos)
Chapter 1. Tax Codes (Refs & Annos)
Article 2. Uniform Tax Procedure (Refs & Annos)
68 Okl.St.Ann. § 220
§ 220. Waiver or remission of interest or penalties
Currentness

A. The interest or penalty or any portion thereof ordinarily accruing by reason of a taxpayer’s failure to file a report or return or failure to file a report or return in the correct form as required by any state tax law or by this Code or to pay a state tax within the statutory period allowed for its payment may be waived or remitted by the Oklahoma Tax Commission or its designee provided the taxpayer’s failure to file a report or return or to pay the tax is satisfactorily explained to the Tax Commission or such designee, or provided such failure has resulted from a mistake by the taxpayer of either the law or the facts subjecting him to such tax, or inability to pay such interest or penalty resulting from insolvency.

B. The waiver or remission of all or any part of any such interest or penalties in excess of Ten Thousand Dollars ($10,000.00) shall not become effective unless approved by one of the judges of the district court of Oklahoma County after a full hearing thereon.

The application for the approval of such waiver or remission shall be filed in the office of the court clerk of the court at least twenty (20) days prior to the entry of the order of the judge finally approving or disapproving the waiver or remission. The order so entered shall be a final order of the district court of the county.

Credits

Laws 1965, c. 414, § 2, emerg. eff. July 7, 1965; Laws 1989, c. 249, § 10, eff. July 1, 1989; Laws 1993, c. 146, § 10; Laws 1997, c. 294, § 9, eff. July 1, 1997; Laws 2005, c. 362, § 3, eff. Nov. 1, 2005.

<A system of composite numbers initiated in 1963 under which each section number was preceded by an article number and a dash was abolished by Laws 1965, c. 215, § 2.>
 
NOTES OF DECISIONS
Construction and application

This section pertains only to waiver of unadjudicated claims or protests and does not reach controversies concerning such matters settled by court determination. Rogers v. Oklahoma Tax Commission, Okla., 466 P.2d 650 (1970). Taxation ​ 3560
 
Power of commission

Mere fact statute exists allowing remittitur of penalty and interest does not require tax commission to waive penalty and interest. Matter of Gross Production and Petroleum Excise Tax Protest of Arkla, Inc., Okla.App. Div. 3, 919 P.2d 1151 (1996); Exxon Corp. v. Oklahoma Tax Com’n, Okla.App. Div. 1, 873 P.2d 306 (1993), certiorari denied.

Waiver of interest and penalty is discretionary with Tax Commission. Matter of Gross Production and Petroleum Excise Tax Protest of Arkla, Inc., Okla.App. Div. 3, 919 P.2d 1151 (1996). Taxation ​ 3220
 
Denial of remission

Tax Commission did not abuse its discretion in denying gas purchaser’s request to waive penalties and interest on gross production taxes assessed on prepayments made under agreement with producer to settle its “take-or-pay” deficiency claim, though there did not appear to be any Tax Commission rules relating to such settlement payments, where taxability of settlement payments was addressed in Tax Commission orders, purchaser did not seek any guidance from Commission or receive any incorrect advice from Commission, and purchaser did not pay taxes first and request refund. Noram Energy Corp. v. Oklahoma Tax Com’n, Okla.App. Div. 3, 935 P.2d 389 (1995), certiorari dismissed. Mines And Minerals ​ 87

Tax Commission properly denied taxpayer’s request to waive penalties and interest assessed on taxpayer’s failure to pay gross production tax and petroleum excise tax, though taxpayer litigated its claim that it was not subject to taxes and no rules regarding tax were issued until after taxpayer initiated its suit, where taxes were due well before taxpayer initiated its suit and two orders of Tax Commission were available before taxpayer filed suit. Matter of Gross Production and Petroleum Excise Tax Protest of Arkla, Inc., Okla.App. Div. 3, 919 P.2d 1151 (1996). Mines And Minerals ​ 87

Mere fact that statute existed that allowed remittitur of penalty and interest did not require that tax commission apply statute to case of seller that failed to collect sales tax purportedly due to buyers’ erroneous representation that they were purchasing items for resale. Matter of Wal-Mart Stores, Inc., Okla.App. Div. 3, 817 P.2d 1281 (1991), certiorari denied. Taxation ​ 3707
 
Mistake of law

Oklahoma Tax Commission (OTC) did not abuse its discretion when it declined to waive penalties and interest on assessment of gross production and petroleum excise taxes on portion of gas purchaser’s unreported payment to gas producer in settlement of dispute under take-or-pay gas purchase contracts, despite contention of mistake of law, where taxes were paid only after Commission audit, and statutory provision and Commission’s tax forms clearly required reporting of take-or-pay payments. El Paso Natural Gas Co. v. Oklahoma Tax Com’n, Okla.App. Div. 4, 929 P.2d 1002 (1996), rehearing denied, certiorari denied. Mines And Minerals ​ 87

Where corporation’s failure to pay use tax on airplane resulted from mistake of law and where more than three-year delay between filing of the corporation’s protest and the denial of protest was unexplained, the corporation should not be required to pay penalty or interest on the use tax. In re Woods Corp., Okla., 531 P.2d 1381 (1975). Taxation ​ 3711
 
Court hearing

Tax Commission’s entry into restitution agreement with taxpayers in related criminal case could not have effectively waived or remitted interest and penalties due on unpaid sales taxes in absence of approval of district court judge, after application for approval was filed for at least 12 days, where interest and penalties due exceeded statutory limit of $1,500. Blair v. State ex rel. Oklahoma Tax Com’n, Okla.Civ.App. Div. 3, 935 P.2d 1197 (1997), corrected. Taxation ​ 3711

This section does not affect power of Supreme Court to order remittitur of interest and penalty in case involving state income taxes. Rogers v. Oklahoma Tax Commission, Okla., 466 P.2d 650 (1970). Taxation ​ 3563
 
Review

Oklahoma Tax Commission’s (OTC) decision, as to whether to waive penalties and interest on assessment of gross production and petroleum excise taxes on portion of gas purchaser’s unreported payment to gas producer in settlement of dispute under take-or-pay gas purchase contracts, would not be reversed on appeal barring showing of abuse of discretion. El Paso Natural Gas Co. v. Oklahoma Tax Com’n, Okla.App. Div. 4, 929 P.2d 1002 (1996), rehearing denied, certiorari denied. Mines And Minerals ​ 92.21

Reviewing court will not order remittitur of interest and penalty unless abuse of discretion is shown. Matter of Gross Production and Petroleum Excise Tax Protest of Arkla, Inc., Okla.App. Div. 3, 919 P.2d 1151 (1996). Taxation ​ 3220

Court of Appeals has power to order remittitur of interest and tax penalty, but it will not do so absent showing that Tax Commission abused its discretion in refusing to waive penalty and interest. Exxon Corp. v. Oklahoma Tax Com’n, Okla.App. Div. 1, 873 P.2d 306 (1993), certiorari denied. Taxation ​ 3220

68 Okl. St. Ann. § 220, OK ST T. 68 § 220
Current with laws from the Second Regular Session of the 55th Legislature, effective through July 1, 2016
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