Okla. Admin. Code § 710:45-1-3

Current through Vol. 42, No. 4, November 1, 2024

Section 710:45-1-3 - Security required

(a)Bond required generally. As a condition for assignment of a gross production tax purchaser reporting number and/or as a condition for approval to remit gross production taxes, a tax remitter must post a bond in an amount equal to an estimated three months' tax liability. The Tax Commission, in its discretion, may authorize a reduced bond amount.

(b)Adjustment of bond in applicable cases. At the end of one year, the tax remitter may reduce its bond to an amount equal to one month's tax liability, based upon a monthly average of the prior year's tax liability, provided that a reduction in the bond amount will be permitted only if the tax remitter has had no tax deficiencies or delinquencies in the prior year. Upon approval by the Tax Commission, the bond amount may be adjusted annually thereafter, depending upon fluctuations in the yearly tax liability of the tax remitter.

(c)Adjustment of bond for estimated payment. A tax remitter who has paid the one-time estimated gross production tax payment required by 68 O.S. § 1010a, will be permitted, upon request, to reduce the amount of surety bond required by the amount of the estimated payment. However, the one-time payment of gross production tax may not be reduced or refunded until the taxpayer is no longer required to remit gross production taxes.

(d)When bond is not required. Taxpayers who have an estimated liability of One Thousand Dollars ($1,000.00) or less per year are not required to post a bond.

(e)Applicability. This Section does not apply to bond requirements for reclaimers and transporters which are governed by separate rules in this Chapter.

Okla. Admin. Code § 710:45-1-3

Added at 12 Ok Reg 2995, eff 6-12-95 (emergency); Added at 13 Ok Reg 3095, eff 7-11-96; Amended at 15 Ok Reg 2416, eff 6-11-98; Amended at 22 Ok Reg 1531, eff 6-11-05

Amended by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/11/2022