Oklahoma § 68-400.1 - Tobacco Products Tax Enforcement Unit

§ 68-400.1. Tobacco Products Tax Enforcement Unit

A. For the purpose of enforcing the tobacco tax laws of this

state, the Oklahoma Tax Commission is authorized, contingent upon

the availability of funds, to establish and maintain a unit to be

known as the "Tobacco Products Tax Enforcement Unit". The unit

shall enforce the tobacco tax laws of this state and ensure that all

taxes are paid on tobacco products by:

1. Confirming that all entities selling tobacco products in

this state are properly licensed as provided in Section 400 et seq.

of Title 68 of the Oklahoma Statutes;

Oklahoma Statutes - Title 68. Revenue and Taxation

2. Verifying that all retailers are only purchasing tobacco

products from wholesalers licensed by the Tax Commission;

3. Providing a dedicated telephone line and email address for

licensed wholesalers, licensed retailers and the general public to

report suspected violations of tobacco tax laws; provided, no

entity, individual or those who report violations on behalf of a

licensed wholesaler or retailer shall be required to disclose their

identity;

4. Auditing licensed wholesalers and retailers to ensure all

tobacco product taxes are paid;

5. Issuing fines for violations as provided in Section 400 et

seq. of Title 68 of the Oklahoma Statutes;

6. Conducting wholesale and retail tobacco inspections to find

and confiscate untaxed tobacco products;

7. Establishing data-sharing programs with tax departments in

surrounding states related to tobacco product taxes;

8. Creating an industry advisory committee including licensed

wholesalers and retailers who may represent the entity related to

tobacco products tax enforcement concerns and suggestions. The

industry advisory committee shall be composed of five (5) members as

follows:

a.

two members who are licensed wholesalers to be

appointed by the Governor,

b.

one member who is a licensed retailer to be appointed

by the President Pro Tempore of the Oklahoma Senate,

c.

one member who is a licensed retailer to be appointed

by the Speaker of the Oklahoma House of

Representatives, and

d.

one member who is a licensed wholesaler to be

appointed by the four members provided for in

subparagraphs a through c of this paragraph.

The committee shall meet quarterly. The Oklahoma Tax Commission

shall promulgate rules establishing minimum requirements as may be

deemed necessary to carry out the purposes of the committee; and

9. Working with law enforcement and conducting investigations

to stop illegal acquisition and shipment of tobacco products by

persons not licensed to sell tobacco products in this state.

B. The Tax Commission shall annually submit a report to the

Governor, President Pro Tempore of the Senate and Speaker of the

House of Representatives listing the number of wholesale and retail

tobacco inspections conducted, the amount of untaxed tobacco

products confiscated, the number of tobacco products tax audits

conducted, the amount of taxes assessed and the amount of taxes

collected as the result of audits and confiscations, the number of

suspected violations reported and the actions taken in response, and

the number of fines issued and the amount of fines collected.

Oklahoma Statutes - Title 68. Revenue and Taxation

Added by Laws 2021, c. 385, § 2, eff. July 1, 2021.

2023, c. 285, § 3, eff. July 1, 2023.

Amended by Laws