Bill > HB1204

This bill amends Oklahoma tax law to change how interest is calculated on delinquent taxes and tax refunds. Instead of the previous fixed rate of 1.25% per month, the bill introduces a dynamic interest rate calculation based on the prime rate (the standard lending rate published by The Wall Street Journal) plus two percentage points, to be determined annually on the first business day of each calendar year. The bill modifies provisions for both tax deficiencies and refunds, standardizing the interest calculation method. For delinquent taxes, the new rate will apply from the date of delinquency until payment is made, and for tax refunds, interest will be calculated from the date the taxpayer submitted payment. The bill maintains existing penalty structures for late or fraudulent tax payments, such as 10% penalties for taxes not paid within specified timeframes and potential additional penalties for negligence or fraud. The changes will take effect on November 1, 2025, providing a clear transition period for taxpayers and the Oklahoma Tax Commission to adapt to the new interest calculation method.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1204&Session=2600