§ 68-55002. Provision of electronic database containing local taxing jurisdiction information – Liability of home service provider – Presumption.

A.  The Oklahoma Tax Commission may provide an electronic database to a home service provider or, if the Tax Commission does not provide such an electronic database to home service providers, then the designated database provider may provide an electronic database to a home service provider.  Such database shall provide the appropriate local taxing jurisdiction for each street address in the state, including to the extent practicable, any multiple postal street addresses applicable to one street location, and shall be in the format required by Section 119 of the federal “Mobile Telecommunications Sourcing Act”.

B.  The Tax Commission or designated database provider shall provide notice of the availability of the then current electronic database, and any subsequent revisions thereof, by publication in the manner normally employed for the publication of informational tax, charge, or fee notices to taxpayers in the state.

C.  A home service provider using the data contained in an electronic database described in subsection A of this section shall be held harmless from any tax, charge, or fee liability that otherwise would be due solely as a result of any error or omission in such database provided by the Tax Commission or designated database provider.  The home service provider shall reflect changes made to such database during a calendar quarter not later than thirty (30) days after the end of such calendar quarter.

D.  If an electronic database is not provided under subsection A of this section, a home service provider shall be held harmless from any tax, charge, or fee liability in this state that otherwise would be due solely as a result of an assignment of a street address to an incorrect taxing jurisdiction if, subject to Section 2 of this act, the home service provider employs an enhanced zip code to assign each street address to a specific taxing jurisdiction for each level of taxing jurisdiction and exercises due diligence at each level of taxing jurisdiction to ensure that each such street address is assigned to the correct taxing jurisdiction.  If an enhanced zip code overlaps boundaries of taxing jurisdictions of the same level, the home service provider must designate one specific jurisdiction within such enhanced zip code for use in taxing the activity for such enhanced zip code for each level of taxing jurisdiction.  Any enhanced zip code assignment changed in accordance with Section 2 of this act is deemed to be in compliance with this section.

E.  For purposes of this section, there is a rebuttable presumption that a home service provider has exercised due diligence if such home service provider demonstrates that it has:

1.  Expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions;

2.  Implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to taxing jurisdictions; and

3.  Used all reasonably obtainable and usable data pertaining to municipal annexation, incorporations, reorganizations and any other changes in jurisdictional boundaries that materially affect the accuracy of such database.

F.  Subsection D of this section applies to a home service provider that is in compliance with the requirements of that subsection until the later of:

1.  Eighteen (18) months after the nationwide standard numeric code described in federal “Mobile Telecommunications Sourcing Act” has been approved by the Federation of Tax Administrators and the Multistate Tax Commission; or

2.  Six (6) months after the Tax Commission or a designated database provider in this state provides such database as prescribed in subsection A of this section.

Added by Laws 2001, c. 153, § 3.