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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 1121 By: Boatman
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2011, Sections 4301, as last amended by Section
1, Chapter 201, O.S.L. 2018, 4303, as last amended by
Section 2, Chapter 201, O.S.L. 2018, 4304, as last
amended by Section 3, Chapter 201, O.S.L. 2018 and
4305, as last amended by Section 4, Chapter 201,
O.S.L. 2018, (68 O.S. Supp. 2020, Sections 4301,
4303, 4304 and 4305), which rela te to the Oklahoma
Quality Events Incentive Act; modifying sunset date;
modifying definitions; modifying provisions related
to documentation reviewed by Oklahoma Tax Commission;
providing for economic impact study; prescribing
procedures; modifying time pe riods related to event
designation; modifying time period related to
submission of information to Oklahoma Tax Commission;
and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 4301, as
last amended by Section 1, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
2020, Section 4301), is amended to read as follows:
Section 4301. This act shall be known and may be cited as the
"Oklahoma Quality Events Incentiv e Act" and shall be in effect
through June 30, 2021 2026.
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SECTION 2. AMENDATORY 68 O.S. 2011, Section 4303, as
last amended by Section 2, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
2020, Section 4303), is amended to read as follows:
Section 4303. As used in the Oklahoma Quality Events Incentive
Act:
1. "Certified sponsor" means an entity or organization
authorized to promote and conduct a quality event, which is
incurring expenses for the promotion of such event to be conducted
within the corporate limits of an eligible municipality or an
unincorporated area within a county;
2. "Economic impact study " means a study which includes:
a. a description and, if applicable, history of the
quality event,
b. information regarding the site se lection process for
the quality event,
c. an estimate of the expenses anticipated to be incurred
in connection with hosting the quality event,
d. an estimate of the total gross sales made by vendors
during any period of time during which no quality
event activity occurs,
e. a detailed estimate of the anticipated increase in
sales tax revenue directly attributable to the quality
event,
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f. the general economic impact likely to occur as a
result of the preparation for, occurrence of and
activity occurring in c onnection with the dissolution
of, a quality event, and
g. any additional information the Oklahoma Tax Commission
may require;
3. "Eligible local support amounts " means:
a. any payment made by a local government entity or
transfer of monies from the gene ral fund or transfer
of tax revenues derived from a locally imposed tax to
a certified sponsor for the purpose of attracting,
promoting, advertising, organizing, conducting or
otherwise supporting a quality event, or
b. any direct payment made by a certifi ed sponsor to a
for-profit or nonprofit entity, other than the host
community, for the purpose of attracting, promoting,
advertising, organizing, conducting or otherwise
supporting a quality event;
3. 4. "Event history" means:
a. historical information on the event including past
locations of the event,
b. a description of previous attempts by the host
community to secure the event,
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c. information regarding attempts by other communities to
recruit the event, and
d. if applicable, the competitive bidding pr ocess for
securing the event by the host community;
4. 5. "Host community" means any county, incorporated city or
town, or any combination of counties, incorporated cities or towns
of the state which are authorized by their respective governing
bodies to host or assist in the presentation of a quality event;
5. 6. "Incremental sales tax revenue " means the amount of
additional state sales tax revenue collected as a result of the
quality event, as determined by an economic impact study verified by
the Oklahoma Tax Commission based on actual documentation ;
6. 7. "New event" means a quality event which did not occur
within a period of twenty -four (24) months prior to the month during
which a quality event is held;
7. 8. "Quality event" means:
a. a new event or a meeting of a nationally recognized
organization or its members,
b. a new or existing event that is a national,
international or world championship, or
c. a new or existing event that is managed or produced by
an Oklahoma-based national or internationa l
organization;
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8. 9. "Recurring event" means a quality event which occurred at
least once within the twenty -four (24) months prior to the month
during which a quality event is held;
9. 10. "State sales tax revenue " means the proceeds from the
state sales tax levy imposed pursuant to Section 1354 of this title
upon taxable transactions occurring as a result of the quality
event, as determined by an economic impact study verified by the
Oklahoma Tax Commission based on actual documentation ; and
10. 11. "Vendors" means those persons or business entities
making taxable sales of tangible personal property or services as a
result of the quality event, as determined by an economic impact
study verified by the Oklahoma Tax Commission based on actual
documentation and, unless the context otherwise requires, shall have
the same meaning as defined by Section 1352 of this title.
SECTION 3. AMENDATORY 68 O.S. 2011, Section 4304, as
last amended by Section 3, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
2020, Section 4304), is amended to read as follows:
Section 4304. A. Not later than six (6) months thirty (30)
days prior to the initial date of a quality event, a host community
may designate:
1. The dates during which a quality event will be hos ted; and
2. The type of expenses eligible for distribution of captured
revenues to the host community including, but not limited to,
advertising, facility rental, promotional materials and security.
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B. Any designation made by a host community for purpose s of the
Oklahoma Quality Events Incentive Act shall be made pursuant to an
ordinance or resolution duly adopted by the governing body of the
host community.
C. A host community may only designate one quality event during
the time frame in which a designa ted quality event will occur.
D. Within thirty (30) sixty (60) days of the date on which the
host community adopts an ordinance or resolution pursuant to
subsection A of this section, such host community shall submit to
the Oklahoma Tax Commission, on suc h forms as the Tax Commission may
prescribe, a copy of such ordinance or resolution , an economic
impact study and the event history. The Oklahoma Tax Commission
shall designate a single employee or division responsible for
processing information, making d eterminations and any other duties
related to the Oklahoma Quality Events Incentive Act.
E. Within sixty (60) days from the date of receipt of the
information from the host community as required by subsection D of
this section, the Tax Commission shall ap prove or disapprove, in
whole or in part, the submission and analysis of the required
information. The Oklahoma Department of Commerce and the Oklahoma
Tourism and Recreation Department shall provide such assistance and
information as requested by the Tax Commission.
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SECTION 4. AMENDATORY 68 O.S. 2011, Section 4305, as
last amended by Section 4, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
2020, Section 4305), is amended to read as follows:
Section 4305. A. The host community shall p rovide to the
Oklahoma Tax Commission detailed information disclosing the total
amount of eligible local support amounts for purposes of determining
the amount of incremental state sales tax revenue that may be paid
to a host community in which a quality e vent occurs.
B. The Tax Commission shall verify the amount of eligible local
support amounts prior to making any payment to a host community.
C. After the conclusion of an event, the host community shall
provide information related to the event, such as attendance
figures, financial information or other public information held by
the host community that the Tax Commission considers necessary to
evaluate the actual economic impact of the event.
D. The Tax Commission shall compare the total amount of
eligible local support amounts with the total amount of incremental
state sales tax revenues remitted by vendors, such revenues to be
established based on actual documentation through the economic
impact study.
E. If the Tax Commission determines through an an alysis of the
actual documentation economic impact study that the total amount of
incremental state sales tax revenues is zero, no payment shall be
made to a host community.
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F. If the Tax Commission determines through an analysis of the
actual documentation economic impact study that the total amount of
incremental state sales tax revenues is greater than zero, but less
than the total amount of eligible local support amounts, the Tax
Commission shall make payment, subject to the limitations of
subsection I of this section, to the host community of the quality
event in an amount equal to the incremental state sales tax
revenues.
G. If the Tax Commission determines through an analysis of the
actual documentation economic impact study that the total amount of
incremental state sales tax revenues is at least equal to the amount
of eligible local support amounts, the Tax Commission shall make
payment, subject to the limitations of subsection I of this section,
to the host community in which the quality event occ urs in an amount
equal to, but not greater than, the eligible local support amounts.
H. No payment shall be made to any host community from a source
other than the incremental state sales tax revenues, if any, derived
from state sales tax remittances of v endors as a result of the
quality event, as determined by an economic impact study verified by
the Oklahoma Tax Commission.
I. No payment shall be made to any host community in excess of
Two Hundred Fifty Thousand Dollars ($250,000.00) for a single
quality event regardless of the amount of eligible local support
paid by the host community.
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SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reaso n whereof this act shall take effect and
be in full force from and after its passage and approval.
58-1-6420 MAH 01/10/21