Bill Number: OK51RHB 2099                          Filed: 01-21-2007

             Author:

        

                                  STATE OF OKLAHOMA

  1                     1st Session of the 51st Legislature (2007)
 
  2                         HOUSE BILL 2099      By:      Armes
 
  3                                   AS INTRODUCED
 
  4                  An Act relating to revenue and taxation; amending 68
 
  5                  O.S. 2001, Sections 500.52 and 500.57, which relate
 
  6                  to dyed diesel; providing for a Dyed Diesel Flat Tax
 
  7                  Permit; specifying eligibility; setting fee amount;
 
  8                  providing for promulgation of rules; providing for
 
  9                  codification; and providing an effective date.
 
 10     BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
 
 11           SECTION 1.     AMENDATORY     68 O.S. 2001, Section 500.52, is
 
 12     amended to read as follows:
 
 13           Section 500.52  A.  No person shall operate or maintain a
 
 14     motor vehicle on any public highway in this state with motor fuel
 
 15     contained in the fuel supply tank for the motor vehicle that
 
 16     contains dye as provided under paragraph 16 of Section [10] 500.10
 
 17     of this [act] title.
 
 18           B.  This section does not apply to:
 
 19           1.  Persons operating motor vehicles that have received fuel
 
 20     into their fuel tanks outside of this state in a jurisdiction that
 
 21     permits introduction of dyed motor fuel of that color and type into
 
 22     the motor fuel tank of highway vehicles; [or]
 
 23           2.  Uses of dyed fuel on the highway which are lawful under
 
 24     the Internal Revenue Code and regulations thereunder and as set
 


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1 forth in Section [10] 500.10 of this [act] title unless 2 otherwise prohibited by this act; or 3 3. Persons that possess Dyed Diesel Flat Tax Permits as 4 provided in Section 3 of this act. 5 C. Any person who knowingly violates or knowingly aids and 6 abets another to violate the provisions of this section with the 7 intent to evade the tax levied by this act shall be guilty of a 8 misdemeanor and shall, upon conviction, be fined not more than One 9 Thousand Dollars ($1,000.00), or be sentenced to a term of not more 10 than one (1) year in the county jail, or shall be punishable by both 11 such fine and imprisonment. 12 SECTION 2. AMENDATORY 68 O.S. 2001, Section 500.57, is 13 amended to read as follows: 14 Section 500.57 A. No person shall sell or hold for sale dyed 15 diesel fuel for any use that the person knows or has reason to know 16 is [not a nontaxable] an untaxed use of the diesel fuel. 17 B. [No] Except as provided for in Section 3 of this act, no 18 person shall use or hold for use any dyed diesel fuel for a use 19 other than a nontaxable use and the person knew or had reason to 20 know that the diesel fuel was so dyed. 21 C. No person shall willfully, with intent to evade tax, alter 22 or attempt to alter the strength or composition of any dye or marker 23 in any dyed diesel fuel. 24 D. Any business entity, each officer, employee, or agent of 25 the entity who willfully participates in any act in violation of 26 this section shall be jointly and severally liable with the entity 27 for the penalty which shall be the same as imposed pursuant to 26 2

1 U.S.C., Section 6714. 2 SECTION 3. NEW LAW A new section of law to be codified 3 in the Oklahoma Statutes as Section 500.65 of Title 68, unless there 4 is created a duplication in numbering, reads as follows: 5 A. The Oklahoma Tax Commission shall create a Dyed Diesel 6 Flat Tax Permit that allows an individual to operate or maintain a 7 motor vehicle on any public highway in this state with motor fuel 8 contained in the fuel supply tank for the motor vehicle that 9 contains dyed diesel, as defined in Section 500.3 of Title 68 of the 10 Oklahoma Statutes. 11 B. In order to be eligible for a permit pursuant to this 12 section, the motor vehicle must be a farm vehicle as defined in 13 Section 1134 of Title 47 of the Oklahoma Statutes. 14 C. The permit fee shall be One Hundred Dollars ($100.00). 15 The permit shall be renewed annually. 16 D. It shall be the duty of the Oklahoma Tax Commission to 17 promulgate any additional rules and designate forms and procedures 18 for the implementation of this section. 19 SECTION 4. This act shall become effective November 1, 2007. 20 51-1-6459 CJB 01/14/07 21 Page 1 22 Req. No. 6459 3