Okla. Stat. tit. 62, § 62-206

Notice - Protest fund - Suits to recover - Exceptions - Bad faith

claims.

A. In all cases where it is alleged or claimed that fees or

taxes of the state are in whole or in part unconstitutional or

otherwise invalid, the aggrieved person shall pay the full amount

thereof to the proper collecting officer and at the same time give

notice in writing to said officer stating the grounds of his

complaint and that suit will be brought against him for the recovery

of all or a specified part of said fees or taxes. Full payment of

all fees or taxes owing shall be a precondition to the bringing of

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any suit for the recovery of such fees or taxes. The collecting

officer or agency shall deposit the funds collected under protest in

a specially designated account in the State Treasury known as the

"Protest Fund" of such agency and shall retain the same therein for

a period of sixty (60) days, and if within such time summons is not

served upon him in a suit for the recovery of said fees or taxes or

a specified part thereof he shall thereon transfer said fees or

taxes into the appropriate fund or funds in the State Treasury.

However, if a written protest is made and a suit is filed in a

timely manner, the fees or taxes paid under protest shall be

retained in the appropriate "Protest Fund" pending a final

determination of the suit. Provided, that nothing in this section

shall be construed to prohibit the Legislature from authorizing or

directing any otherwise lawful transfer of monies from any such

"Protest Fund".

B. Such suits shall be brought in state courts having

jurisdiction thereof and shall be given precedence therein. If upon

final determination of any such suit the court shall find that the

fees or taxes sued for, or any part thereof, were illegally

collected it shall render judgment in favor of the plaintiff

therefor, and shall order said collecting officer, or his successor,

to pay the judgment. Any such money judgment shall be paid first

from any remaining monies in the affected agency's "Protest Fund"

for the fiscal year in which the judgment is awarded. Provided,

however, if there are insufficient monies in such "Protest Fund" to

pay the entire judgment in the fiscal year in which the judgment is

awarded, the collecting officer immediately shall certify to the

Governor, the State Treasurer, the Speaker of the House of

Representatives and the President Pro Tempore of the Senate, the

amount of any deficiency remaining after the payment of available

monies from the "Protest Fund" of the affected agency. Any such

judgment which involves premium tax may be paid by the collecting

officer or agency directly from current premium tax collections.

The agency may request the appropriation of sufficient funds to such

"Protest Fund" to satisfy the judgment. Provided, however, that any

such total judgment over the amount of Five Hundred Thousand Dollars

($500,000.00) may be paid over a period of not to exceed three (3)

consecutive fiscal years from funds allocated or appropriated for

that purpose. Nothing in this section shall be interpreted as

allowing liens on public property. Provided that the provisions of

this section shall not apply to ad valorem taxes, taxes on

intangible personal property, taxes collected by the Oklahoma Tax

Commission, or to taxes collected by the Oklahoma Employment

Security Commission. In any such suit, subsequent to dismissal or

adjudication on the merits and upon the motion of the state, the

court shall determine whether or not a claim asserted in the suit

was filed in bad faith, was not well grounded in fact, or was

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unwarranted by existing law or a good faith argument for the

extension, modification, or reversal of existing law. Upon so

finding, the court shall enter a judgment ordering the plaintiff to
ion of the state, the

court shall determine whether or not a claim asserted in the suit

was filed in bad faith, was not well grounded in fact, or was

Oklahoma Statutes - Title 62. Public Finance Page 354

unwarranted by existing law or a good faith argument for the

extension, modification, or reversal of existing law. Upon so

finding, the court shall enter a judgment ordering the plaintiff to

reimburse the state for all costs of any nature, including but not

limited to attorneys fees, incurred with respect to defense of the

action.