HB2369 Summary

• Establishes combined reporting requirements for taxpayers engaged in unitary businesses, requiring filing of combined reports that include income and apportionment factors of all unitary business members.

• Authorizes the Oklahoma Tax Commission to adopt rules regarding unitary business determinations and to require inclusion of additional persons in combined reports to prevent tax avoidance.

• Creates a "water's-edge election" option allowing unitary business members to exclude certain foreign income and entities from combined reporting for a binding 10-year period.

• Permits combined groups to designate one member to file a single return on behalf of all members, with that member acting as surety for the group's tax liability.

• Effective January 1, 2019, replaces previous consolidated return provisions with combined reporting methodology for tax years beginning after December 31, 2018.