MISSION STATEMENT
To serve the people of Oklahoma by promoting tax compliance through quality service and fair administration.
THE COMMISSION
The Tax Commission consists of three persons appointed by the Governor of the State of Oklahoma by and with
the consent of the State Senate of the State of Oklahoma. No more than two members of the Tax Commission shall
be, or shall have been , within the previous six months prior to appointment, members of the same political party. The
Commission members serve six-year overlapping terms.
The three member Commission is a full-time policy making and judicial body ultimately responsible for the
administration of the tax laws of the State. The Commission employs an Administrator who is responsible for the
administration of the day to day operations of the agency.
DUTIES / RESPONSIBILITIES
The Tax Commission as an agency administers the collection and distribution of some 60 different taxes,
licenses and fees. It is the Tax Commission's statutory duty to apportion such revenues to the various state funds
and to allocate directly to local units of government certain state-collected levies ear-marked to counties, school
districts and municipalities. Under contract with individual municipalities, the Tax Commission is responsible for the
administration, collection and distribution of local sales tax levied by the cities and towns of Oklahoma.
The organizational make-up of the Agency includes four separate tax administering divisions and five support
divisions. The revenue administering divisions of the Tax Commission are Ad Valorem, Income Tax, Business Tax and
Motor Vehicle. The support divisions include: Management Information Systems, Collections, Legal and Management
Services.
STATUTORY REFERENCES
Title 68, O.S. 1981, Section 101, et seq. of the Oklahoma Statutes
PERFORMANCE CRITERIA / SERVICES PROVIDED
FY-93 FY-94 FY-95 Criteria/Service: Actual Actual Budgeted BUSINESS TAX Wholesale Beer licenses renewed 59 49 55 Wholesale Beer licenses issued 8 7 5 Retail Beer licenses renewed 3,962 5,921 986 Retail Beer licenses issued 3,938 4,558 4,000 Mixed Beverage licenses issued 152 159 160 Cigarette Retail licenses renewed 3,544 5,224 870 Cigarette Retail licenses issued 2,552 3,159 3,000 Tobacco licenses renewed 80 7 7 Tobacco licenses issued 4 5 5 Wholesale Cigarette licenses renewed 276 259 260 Wholesale Cigarette licenses issued 123 84 80 Franchise license Accounts Paid 65,323 66,102 68,000 Sales Tax permits renewed 17,040 11,551 20,289 Sales Tax permits issued 21,494 14,269 16,000 Vending machine decal issued 110,776 106,413 110,000 Fireworks licenses issued 1,986 1,960 2,000 Fireworks permits issued 31 34 30 Use Tax permits issued 472 1,000 1,000 Rural Electric Co-op licenses 35 40 40 Gross Production licenses issued 1,398 1,282 1,300 Telephone surcharge companies 41 41 41 Vehicle rental companies issued 7 7 7 Used equi/salv dealers licenses 261 147 150 Volunteer Fire exemptions issued 921 937 950 Admission Tax 360 420 450 Manufacturers exempt certifications 1,567 1,058 1,200 Withholding registrations 11,161 12,382 12,000 Waste Tire registrations 85 72 70 Agricultural exemptions issued 65,569 78,000 78,000 Tourism Tax filers registered 857 982 1,000 Alcohol and Tobacco office audits 4,466 5,375 5,500 Alcohol and Tobacco field audits 197 218 200 Franchise audits 10,338 33,083 25,000 Franchise field audits 410 364 350 Motor fuel field audits 151 128 150 Gross Production office audits 12,760 13,519 14,000 Gross Production field audits 102 62 65 Sales Tax office audits 33,612 34,218 35,000 Veh rent/Doc stamps/Waste tire 2,424 2,545 2,500 Sales Tax field audits 1,391 1,388 1,400 Withholding Tax office audits 1,922 2,189 2,000 Withholding Tax field audits 522 494 500 Electric Co-op tax returns 420 480 480 Unclaimed property office audits 50 40 50 Unclaimed property field audits 24 21 21 MOTOR VEHICLE Registration mail out 3,320,362 3,080,222 3,100,000 Tag mail out 129,625 123,419 124,500 Boat & motor titles issued 68,040 71,159 71,000 Boat & motor licenses renewed 305,199 311,382 315,000 Boat & motor dealer licenses issued 44 44 35 Boat & motor dealer licenses renewed 207 228 235 Motor licenses agents office audits 7,080 7,200 7,200 Motor license agent field audits 290 300 300 Interstate truck companies audits 110 45 150 Motor fuel Importer licenses issued 2,461 1,973 1,475 Motor fuel Importer licenses renewed10,607 6,500 5,000 Motor fuel distributor license issued 29 46 55 Motor fuel distributor license canceled 31 61 45 Exemption permits issued 50,777 57,779 58,934 LPG permits issued 11,155 10,350 10,750 Motor fuel field audits 243 240 240 Special fuel licenses issued 8 9 11 Special fuel licenses canceled 10 14 16 COLLECTIONS Taxpayer contacts 344,308 322,251 344,313 Number of tax releases 19,639 16,381 19,639 Number of tax warrants filed 28,018 33,076 34,125 Number of pay plans established 6,513 8,547 6,513 INCOME TAX Total Income Tax returns 1,273,009 1,498,962 1,750,000 Refunds processed 677,580 854,745 900,000 Edit/audit 294,845 295,000 250,000 IRS Revenue Agent Reports 1,551 8,329 10,000 Corporation audits 603 673 750 Estimated tax principal & interest 78 20 1,500 Estimated tax reports 500,000 492,000 500,000 Oil royalty letters & assessments 914 1,259 2,000 Taxable cases closed 4,500 4,390 4,000 Quiet title cases proc from legal 1,270 1,600 1,200 Estates audits completed 9,877 9,795 9,000 Specific Property Releases 40,000 26,320 40,000 AD VALOREM Receipts From Income Tax 14,450,639 14,701,216 15,881,100 Reimbursmt Claims/Tax Exemption 13,234,068 13,670,708 14,000,000 Reimburst Claims/Dble Homestead 2,209,506 2,169,387 2,200,000
EXPENDITURES BY FUND
FY-93 FY-94 FY-95
Type of Fund: Actual Actual Budgeted
State Appropriated Funds
General Revenue $45,200,325 $41,865,559 $45,339,065
Special Cash Fund
Total Appropriated Fund Expe 45,200,325 41,865,559 45,339,065
State Continuing/Revolving Funds:
200 Oklahoma Tax Commission 8,253,371 9,294,254 10,868,450
205 Mass Appraisal Fund 0 3,304,652 1,485,000
215 OTC Reimbursement Fund 2,595,778 2,136,621 5,136,000
230 Waste Tire Recycling Ind 1,673,265 1,977,574 1,841,400
260 Unclaimed Property Fund 360,988 294,306 325,000
265 Unclaimed Property Clear 28,143 121,664 150,000
280 County Reimbursement Fun 2,209,506 0 647,543
285 Ad Valorem Reimbursement 19,230,889 13,890,042 14,000,000
Total Revolving Fund Expendi 34,351,940 31,019,112 34,453,393
Federal Funds:
Total Expenditures by Fund $79,552,265 $72,884,671 $79,792,458
EXPENDITURES BY OBJECT
FY-93 FY-94 FY-95
Object of Expenditure Actual Actual Budgeted
Salaries and Benefits $40,194,421 $38,818,020 $41,613,012
Professional Services 1,720,453 1,906,427 5,760,334
Travel 1,033,828 1,094,173 1,045,500
Lease-Purchase Expenditures 1,335,702 198,443 167,603
Equipment 513,653 771,472 1,107,126
Other Operating Expenses 11,640,548 11,711,094 11,549,328
Operating ExpensesSub-total $56,438,605 $54,499,629 $61,242,903
Non-Operating Expenses:
Reimbursement to Counties and 21,440,395 16,377,074 16,708,155
Waste Tire Payments 1,673,265 2,007,968 1,841,400
Total Expenditures by Object $79,552,265 $72,884,671 $79,792,458
EXPENDITURES BY BUDGET ACTIVITY / SUB-ACTIVITY
FY-93 FY-94 FY-95 Activity No. and Name Actual Actual Budgeted 01 Headquarters $1,067,408 $1,056,982 $1,064,654 03 Ad Valorem 22,537,570 18,300,361 18,607,880 04 Administration 987,691 1,190,781 1,246,961 05 Central Processing 5,020,587 4,930,673 5,133,162 07 Collections 4,554,483 4,417,662 8,842,195 09 Income Tax 4,637,064 4,333,382 4,501,659 10 Business Tax 13,936,889 13,661,135 14,429,783 11 Legal Division 2,651,631 2,229,592 2,367,222 13 Motor Vehicle 10,249,485 10,183,775 10,597,963 18 Management Services 3,755,723 3,716,369 4,060,039 88 MIS Data Processing 10,153,734 8,863,959 8,940,940 Total Expenditures by Activity $79,552,265 $72,884,671 $79,792,458
FULL-TIME-EQUIVALENT EMPLOYEES (FTE) and VEHICLES
FY-93 FY-94 FY-95 Activity No. and Name Actual Actual Budgeted 01 Headquarters 15.6 15.0 15.0 03 Ad Valorem 26.2 34.2 38.0 04 Administration 20.0 25.1 26.0 05 Central Processing 122.3 110.0 116.0 07 Collections 138.1 134.0 143.0 09 Income Tax 114.5 104.6 112.0 10 Business Tax 307.1 289.0 313.0 11 Legal Division 59.6 47.6 53.0 13 Motor Vehicle 221.8 208.5 220.0 18 Management Services 68.3 64.6 67.0 88 MIS Data Processing 150.5 143.1 152.0 Total FTE 1,244.0 1,175.7 1,255.0 Number of Vehicles 5.0 5.0 5.0
HISTORICAL PERSPECTIVE / REVIEW
The Tax Commission retained Ad Valorem reimbursement fund carryover totaling $1,001,229 and the Ad Valorem
division assumed an expanded role in it's operation on July 1, 1993 when the duties of the Ad Valorem Task Force
were transferred from the Office of Auditor and Inspector to the Tax Commission. The commission absorbed AVTF
personnel and the cost of operation through shifts in funding and assessments against the Ad Valorem Reimbursement
Fund which have increased consistently for the last three fiscal years. The Ad Valorem Division collects receipts into
the reimbursement fund to primarily provide "pass-through" funding to reimburse counties for the homestead
exemptions and ad valorem reimbursement and to supplement county operations and school districts when there is a
short-fall because of exemptions granted to certain classes of taxpayers. The fund also reimburses counties for the
loss of revenues due to ad valorem tax exemptions granted to new or expanding manufacturing or research and
development facilities.
The agency has implemented an automated revenue processing system to provide for faster processing of taxpayer reports and payments and more timely deposit of state revenues. The automated process performs the process of sorting, microfilming and entering data from individual tax return documents which reduces agency demand for personnel within this activity by approximately 30 to 40 FTE. Also the commission proposed legislation to require any person owing ten thousand dollars ($10,000) or more to remit through Electronic Fund Transfer (EFT). Legislation was intended to make tax receipts immediately available to the state and subsequently reduces the agency's demand for FTE within related operations, however, the proposal failed to pass the legislature and agency expects to file the proposal again during the 1995 legislative session. The commission has been successful in reducing staffing demands through utilization of technological advances since FY-91 and the effects are reflected in the FTE comparison with FY-92 which indicates agency totals have decreased.
Currently the Commission is implementing the requirements of legislation passed concerning the Charity Games Act and the Indian Cigarette Compacts. Efforts to improve taxpayer service continue to be implemented through new taxpayer education seminars and training of motor vehicle license agents, with increased emphasis being placed on compliance functions. Two (2) major programs were implemented during FY-95 they were the Income Tax Assessment System and a Business Receivable System. Both programs have served to enhance the operation of the commission through the use of improved technology.
The Tax Commission is currently planning to expand it's efforts to identify persons who are doing business within the state and are not complying with either state or federal tax reporting requirements. This "special enforcement" project will be coordinated through the agency's business tax division.