Bill Summary: SB 1297

• Creates the State Office of Administrative Tax Hearings as an independent executive branch agency separate from the Oklahoma Tax Commission, effective January 1, 2013, with at least one full-time administrative law judge appointed by the Governor with Senate confirmation for 10-year terms.

• Establishes the Small Claims Division for tax disputes not exceeding $25,000 (exclusive of interest and penalties) with informal procedures and final, non-appealable judgments that cannot be used as precedent.

• Provides taxpayers the right to pre-payment administrative hearings before the State Office of Administrative Tax Hearings for disputes over tax assessments and denied refund claims, with 90-day filing deadline from notice of assessment or denial.

• Requires the Oklahoma Tax Commission to maintain an independent administrative appeals function offering taxpayers settlement review before finalizing audit determinations, with requirements for impartial review and consideration of facts and legal arguments.

• Allows appellate review of State Office of Administrative Tax Hearings decisions (except Small Claims Division) to the Oklahoma Supreme Court within 30 days, with specific provisions regarding payment requirements and judicial review procedures.