Okla. Admin. Code § 710:1-5-17

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

Section 710:1-5-17 - Petitions for declaratory rulings

(a)General provisions. The Commission or its duly authorized agent may issue declaratory rulings, as to the applicability of any rule or principle of law embodied in a precedential decision of the Commission, which is requested by or on behalf of a person directly affected thereby, subject to the terms and conditions set forth in this Section.

(b)Form of petition; where to file. A declaratory ruling petition must be made in writing and sent in duplicate to the Secretary-Member, Oklahoma Tax Commission, Oklahoma City, Oklahoma 73194.

(c)Contents of a petition for a declaratory ruling. A declaratory ruling petition must specifically state:

(1) That a "declaratory ruling is requested pursuant to 710:1-5-17 ";

(2) The petitioner's

(A) Name (the name of the person, partnership, corporation or entity to whom the facts presented in the petition apply);

(B) Address and phone number;

(C) Federal identification number, if applicable; and

(D) Appropriate OTC license, registration or identification number, where applicable.

(3) The type of tax, fee, bond, registration, license, or permit at issue;

(4) The issue(s) on which a declaratory ruling is requested, stated clearly and concisely;

(5) A complete, clear and concise statement of all relevant facts on which the declaratory ruling is requested;

(6) The petitioner's desired result and the legal basis for that result, including reference to the applicable statutes, rules, regulations, and case law;

(7) Whether the issue, as it regards the petitioner, is presently under investigation or audit by the Commission or any of its agents. The term investigation or audit includes, but is not limited to, an inquiry, audit, refund, assessment, suspension or revocation proceeding by the Commission; and

(8) Whether the petitioner is presently pursuing any protest, litigation or negotiation on the issue with the Commission or any of its Divisions, as well as the name of any other person, partnership, corporation or entity whom the petitioner or a duly authorized representative knows is involved with the identical issue pending before or with the Commission.

(d)Petition must bear authorized signature. A petition for a declaratory ruling must be signed by the petitioner or an authorized agent of the petitioner.

(e)Proposed draft may be offered. The petitioner may provide a draft ruling for the Commission's consideration.

(f)Commission may require additional information. The Commission or its authorized representative may request additional information from the petitioner as deemed necessary to issue a declaratory ruling. Failure to provide the requested information shall result in denial of the petition to issue the declaratory ruling.

(g)Effect of a declaratory ruling. A declaratory ruling shall have the following effect:

(1) The declaratory ruling shall apply only to the particular fact situation stated in the declaratory ruling petition;

(2) The declaratory ruling shall apply only to the petitioner;

(3) The declaratory ruling shall bind the Commission, its duly authorized agents and their successors only prospectively;

(4) The declaratory ruling shall bind the Commission, its duly authorized agents and their successors as to transactions of the petitioner that occur within three (3) years after the date of the issuance of the declaratory ruling; and

(5) The declaratory ruling may be revoked, altered, or amended by the Commission at any time.

(h)Exceptions to binding effect of declaratory ruling. The declaratory ruling shall cease to be binding if:

(1) A pertinent change is made in the applicable law by the Legislature;

(2) A pertinent change is made in the Commission's rules;

(3) A pertinent change in the interpretation of the law is made by a court of law or by an administrative tribunal; or

(4) The actual facts are determined to be materially different from the facts set out in the petitioner's declaratory ruling petition.

(i)Issuance of a declaratory ruling. The Commission will make a good faith effort to issue a declaratory ruling within ninety (90) days from date of receipt of a complete and proper petition unless, in the Commission's discretion, the issue is of such complexity or novelty that additional time is required.

(j)Contents of a declaratory ruling. A written response from the Commission or from any employee or agent of the Commission to an inquiry from a taxpayer may not be construed to be a declaratory ruling unless made in conformity with this Subsection. A declaratory ruling must contain:

(1) A statement that: "This is a declaratory ruling issued by the Oklahoma Tax Commission pursuant to 75 O.S. § 307;" and

(2) The signature of the Commission or any person duly authorized to issue declaratory rulings on its behalf.

(k)Denial of a petition for declaratory ruling. The Commission, in its discretion, may deny a petition for declaratory ruling for good cause. In this instance, the Commission, in a letter, will indicate the reason(s) for refusing to issue the declaratory ruling. Good cause includes, but is not limited to, the following:

(1) The petition does not substantially comply with the information required by this Section;

(2) The petition involves hypothetical situations or alternative plans;

(3) The petitioner requests the Commission to interpret or apply a statute, or requests a determination as to whether a statute is constitutional under the Oklahoma Constitution or the United States Constitution;

(4) The facts or issue(s) presented in the petition are unclear, overbroad, insufficient or otherwise inappropriate as a basis upon which to issue the declaratory ruling;

(5) The issue about which the declaratory ruling is requested is primarily one of fact;

(6) The issue is presently being considered in a rulemaking proceeding, protest proceeding or other agency or judicial proceeding that may definitively resolve the issue;

(7) The issue cannot be reasonably resolved prior to the issuance of rules;

(8) The petitioner is under investigation or audit relating to that issue, or the issue is the subject of investigation, audit, administrative proceeding or litigation;

(9) The issue relates to the application of the law to members of a business, trade, professional or industrial association or other similar group(s); or

(10) The petitioner is not identified or is anonymous.

(l)Withdrawal of a petition for declaratory ruling. The petitioner may withdraw the petition for a declaratory ruling, in writing, prior to the issuance of the declaratory ruling.

(m)Response when declaratory ruling inappropriate. When a declaratory ruling petition requests the Commission to interpret or apply a statute or case law to a specific set of facts, the Commission will issue a letter ruling, as described in OAC 710:1-3-73, instead of a declaratory ruling.

Okla. Admin. Code § 710:1-5-17

Amended at 10 Ok Reg 3819, eff 7-12-93; Amended at 12 Ok Reg 2923, eff 7-14-95; Amended at 16 Ok Reg 2628, eff 6-25-99; Amended at 22 Ok Reg 1513, eff 6-11-05

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015

Amended by Oklahoma Register, Volume 38, Issue 23, August 16, 2021, eff. 9/1/2021

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