Oklahoma § 68-2370 - In lieu taxes for state, national banking associations

§ 68-2370. In lieu taxes for state, national banking associations

and credit unions.

A. For taxable years beginning after December 31, 2021, for the

privilege of doing business within this state, every state banking

association, national banking association and credit union organized

under the laws of this state, located or doing business within the

limits of the State of Oklahoma shall annually pay to this state a

privilege tax at the rate of four percent (4%) of the amount of the

taxable income as provided in this section.

B. 1. The privilege tax levied by this section shall be in

addition to the Business Activity Tax levied in Section 1218 of this

Oklahoma Statutes - Title 68. Revenue and Taxation

title and the franchise tax levied in Article 12 of this title and

in lieu of the tax levied by Section 2355 of this title and in lieu

of all taxes levied by the State of Oklahoma, or any subdivision

thereof, upon the shares of stock or personal property of any

banking association or credit union subject to taxation under this

section.

2. Nothing in this section shall be construed to exempt the

real property of any banking associations or credit unions from

taxation to the same extent, according to its value, as other real

property is taxed. Nothing herein shall be construed to exempt an

association from payment of any fee or tax authorized or levied

pursuant to the banking laws.

3. Personal property which is subject to a lease agreement

between a bank or credit union, as lessor, and a nonbanking business

entity or individual, as lessee, is not exempt from personal

property ad valorem taxation. Provided further, that it shall be

the duty of the lessee of such personal property to return sworn

lists or schedules of their taxable property within each county to

the county assessor of such county as provided in Sections 2433 and

2434 of this title.

C. Any tax levied under this section shall accrue on the last

day of the taxable year and be payable as provided in Section 2375

of this title. The accrual of such tax for the first taxable year

to which this act applies, shall apply notwithstanding the prior

accrual of a tax in the same taxable year based upon the net income

of the next preceding taxable year; provided, however, any

additional deduction enuring to the benefit of the taxpayer shall be

deducted in accordance with the optional transitional deduction

procedures in Section 2354 of this title.

D. The basis of the tax shall be United States taxable income

as defined in paragraph 10 of Section 2353 of this title and any

adjustments thereto under the provisions of Section 2358 of this

title with the following adjustments:

1. There shall be deducted all interest income on obligations

of the United States government and agencies thereof not otherwise

exempted and all interest income on obligations of the State of

Oklahoma or political subdivisions thereof, including public trust

authorities, not otherwise exempted under the laws of this state;

and

2. Expense deductions claimed in arriving at taxable income

under paragraph 10 of Section 2353 of this title shall be reduced by

an amount equal to fifty percent (50%) of excluded interest income

on obligations of the United States government or agencies thereof

and obligations of the State of Oklahoma or political subdivisions

thereof.

E. 1. Except as otherwise provided in paragraph 2 of this

subsection, before January 1, 2017, there shall be allowed a credit

Oklahoma Statutes - Title 68. Revenue and Taxation

against the tax levied in subsection A of this section in an amount

equal to the amount of taxable income received by a participating

financial institution as defined in Section 90.2 of Title 62 of the

Oklahoma Statutes pursuant to a loan made under the Rural Economic

Development Loan Act. Such credit shall be limited each year to

five percent (5%) of the amount of annual payroll certified by the

Oklahoma Rural Economic Development Loan Program Review Board

pursuant to the provisions of paragraph 3 of subsection B of Section

90.4 of Title 62 of the Oklahoma Statutes with respect to the loan

made by the participating financial institution and may be claimed

for any number of years necessary until the amount of total credits

claimed is equal to the total amount of taxable income received by

the participating financial institution pursuant to the loan. Any

credit allowed but not used in a taxable year may be carried forward

for a period not to exceed five (5) taxable years. In no event

shall a credit allowed pursuant to the provisions of this subsection

be transferable or refundable.

2. No credit otherwise authorized by the provisions of this

subsection may be claimed for any event, transaction, investment,

expenditure or other act occurring on or after July 1, 2010, for

which the credit would otherwise be allowable. The provisions of

this paragraph shall cease to be operative on July 1, 2012.

Beginning July 1, 2012, the credit authorized by this subsection may

be claimed for any event, transaction, investment, expenditure or

other act occurring on or after July 1, 2012, according to the

provisions of this subsection.

Added by Laws 1971, c. 137, § 20, emerg. eff. May 11, 1971. Amended

by Laws 1971, H.J.R. No. 1026, p. 1043, § 2A22, emerg. eff. June 22,

1971; Laws 1983, c. 167, § 2, emerg. eff. June 6, 1983; Laws 1983,

c. 300, § 1, emerg. eff. June 24, 1983; Laws 1986, c. 109, § 1,

emerg. eff. April 9, 1986; Laws 1989, 1st Ex. Sess., c. 2, § 100,

operative Jan. 1, 1990; Laws 1991, c. 128, § 13, emerg. eff. April

29, 1991; Laws 2002, c. 486, § 10, eff. Jan. 1, 2003; Laws 2010, c.

327, § 29, eff. July 1, 2010; Laws 2011, c. 1, § 32, emerg. eff.

March 18, 2011; Laws 2014, c. 41, § 1, eff. Nov. 1, 2014; Laws 2021,

c. 514, § 1, eff. Jan. 1, 2022.

NOTE: Laws 2010, S.J.R. No. 61, § 19 repealed by Laws 2011, c. 1, §

33, emerg. eff. March 18, 2011.