Oklahoma 2022 Regular Session

Oklahoma House Bill HB1121 Compare Versions

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	30	+	March 24, 2021
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3	34		BILL NO. 1121 By: Boatman of the House
4	35
5	36		and
6	37
7	38		Thompson of the Senate
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12	43		An Act relating to revenue and taxation; amending 68
13	44		O.S. 2011, Sections 4301, as last amended by Section
14	45		1, Chapter 201, O.S.L. 2018, 4303, as last amended by
15	46		Section 2, Chapter 201, O.S.L. 2018, 4304, as last
16	47		amended by Section 3, Chapter 201, O.S.L. 2018 and
17	48		4305, as last amended by Section 4, Chapter 201,
18	49		O.S.L. 2018 (68 O.S. Supp. 2020, Sections 4301, 4303,
19	50		4304 and 4305), which relate to the Oklahoma Quality
20	51		Events Incentive Act; modifying sunset date;
21	52		modifying definitions; modifying provisions related
22	53		to documentation reviewed by Oklahoma Tax Commission;
23	54		providing for economic impact study; prescribing
24	55		procedures; modifying time periods related to event
25	56		designation; modifying time period related to
26	57		submission of information to Oklahoma Tax Commission;
27	58		and declaring an emergency.
28	59
29	60
30		-	~~SUBJECT: Revenue and taxation~~
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31	62
32	63		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
33		-
34	64		SECTION 1. AMENDATORY 68 O.S. 2011, Section 4301 , as
35	65		last amended by Section 1, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
36	66		2020, Section 4301), is amended to read as follows:
37		-
38	67		Section 4301. This act shall be known and may be cited as the
39	68		"Oklahoma Quality Events Incentive Act" and shall be in effect
40	69		through June 30, 2021 2026.
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42	97		SECTION 2. AMENDATORY 68 O.S. 2011, Section 4303, as
43	98		last amended by Section 2, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
44	99		2020, Section 4303), is amended to read as follows:
45		-	ENR. H. B. NO. 1121 Page 2
46	100		Section 4303. As used in the Oklaho ma Quality Events Incentive
47	101		Act:
48		-
49	102		1. "Certified sponsor" means an entity or organization
50	103		authorized to promote and conduct a quality event, which is
51	104		incurring expenses for the promotion of such event to be conducted
52	105		within the corporate limits of an eligib le municipality or an
53	106		unincorporated area within a county;
54		-
55	107		2. "Economic impact study" means a study which includes:
56		-
57	108		a. a description and, if applicable, history of the
58	109		quality event,
59		-
60	110		b. information regarding the site selection process for
61	111		the quality event,
62		-
63	112		c. an estimate of the expenses anticipated to be incurred
64	113		in connection with hosting the quality event,
65		-
66	114		d. an estimate of the total gross sales made by vendors
67	115		during any period of time during which no quality
68	116		event activity occurs,
69		-
70	117		e. a detailed estimate of the anticipated increase in
71	118		sales tax revenue directly attributable to the quality
72	119		event, and
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74	147		f. the general economic impact likely to occur as a
75	148		result of the preparation for, occurrence of and
76	149		activity occurring in connection with the dissolution
77	150		of, a quality event;
78		-
79	151		3. "Eligible local support amounts" means:
80		-
81	152		a. any payment made by a local government entity or
82	153		transfer of monies from the general fund or transfer
83	154		of tax revenues derived from a lo cally imposed tax to
84	155		a certified sponsor for the purp ose of attracting,
85	156		promoting, advertising, organizing, conducting or
86	157		otherwise supporting a quality event, or
87		-
88	158		b. any direct payment made by a certified sponsor to a
89	159		for-profit or nonprofit entity, other than the host
90		-	community, for the purpose of ~~attracting~~, promoting, ~~ENR. H. B. NO. 1121 Page 3~~
	160	+	community, for the purpose of attractin g, promoting,
91	161		advertising, organizing, conducting or otherwise
92	162		supporting a quality event;
93		-
94	163		3. 4. "Event history" means:
95		-
96	164		a. historical information on the event including past
97	165		locations of the event,
98		-
99	166		b. a description of previous attempts by the host
100	167		community to secure the event,
101		-
102	168		c. information regarding attempts by other communities to
103	169		recruit the event, and
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105	197		d. if applicable, the competitive bidding process for
106	198		securing the event by the host community;
107		-
108	199		4. 5. "Host community" means any county, incorporated city or
109	200		town, or any combination of counties, incorporated cities or towns
110	201		of the state which are authorized by their respective governing
111	202		bodies to host or assist in the presentation of a quality event;
112		-
113	203		5. 6. "Incremental sales tax revenue" means the amo unt of
114	204		additional state sales tax revenue collected as a result of the
115	205		quality event, as determined by an economic impact study verified by
116	206		the Oklahoma Tax Commission based on actual documentation ;
117		-
118	207		6. 7. "New event" means a quality event which did not oc cur
119	208		within a period of twenty -four (24) months prior to the month during
120	209		which a quality event is held;
121		-
122	210		7. 8. "Quality event" means:
123		-
124	211		a. a new event or a meeting of a nationally recognized
125	212		organization or its members,
126		-
127	213		b. a new or existing event that is a n ational,
128	214		international or world championship, or
129		-
130	215		c. a new or existing event that is managed or produced by
131	216		an Oklahoma-based national or international
132	217		organization;
133		-	ENR. H. B. NO. 1121 Page 4
134	218		8. 9. "Recurring event" means a quali ty event which occurred at
135	219		least once within the twen ty-four (24) months prior to the month
136	220		during which a quality event is held;
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138	248		9. 10. "State sales tax revenue" means the proceeds from the
139	249		state sales tax levy imposed pursuant to Section 1354 of this ti tle
140	250		upon taxable transactions occurring as a result o f the quality
141	251		event, as determined by an economic impact study verified by the
142	252		Oklahoma Tax Commission based on actual documentation ; and
143		-
144	253		10. 11. "Vendors" means those persons or business entities
145	254		making taxable sales of tangible personal property or serv ices as a
146	255		result of the quality event, as determined by an economic impact
147	256		study verified by the Oklahoma Tax Commission based on actual
148	257		documentation and, unless the context otherwise requires, shall ha ve
149	258		the same meaning as defined by Section 1352 of thi s title.
150		-
151	259		SECTION 3. AMENDATORY 68 O.S. 2011, Section 4304, as
152	260		last amended by Section 3, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
153	261		2020, Section 4304), is amended to read as follo ws:
154		-
155	262		Section 4304. A. Not later than six (6) months thirty (30)
156	263		days prior to the initial date of a quality event, a host community
157	264		may designate:
158		-
159	265		1. The dates during which a quality event will be hosted; and
160		-
161	266		2. The type of expenses eligible for distrib ution of captured
162	267		revenues to the host community incl uding, but not limited to,
163	268		advertising, facility rental, promotional materials and security.
164		-
165	269		B. Any designation made by a host community for purposes of the
166	270		Oklahoma Quality Events Incentive Act shall b e made pursuant to an
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167	298		ordinance or resolution duly ad opted by the governing body of the
168	299		host community.
169		-
170	300		C. A host community may only designate one quality event during
171	301		the time frame in which a designated quality event will occur.
172		-
173	302		D. Within thirty (30) sixty (60) days of the date on which the
174	303		host community adopts an ordinance or resolution pursuant to
175	304		subsection A of this section, such host community shall submit to
176	305		the Oklahoma Tax Commission, on such forms as the Tax Commission may
177	306		prescribe, a copy of such ordinance or resolution, an economic
178		-	impact study and the event history. The Oklahoma Tax Commission ~~ENR. H. B. NO. 1121 Page 5~~
	307	+	impact study and the event history. The Oklahoma Tax Commission
179	308		shall designate a single employee or division responsible for
180	309		processing information, making determinations and any other duties
181	310		related to the Oklahoma Quality Events Incentive Act.
182		-
183	311		E. Within sixty (60) days from the date of receipt of the
184	312		information from the host community as required by subsection D of
185	313		this section, the Tax Commission shall approve or disapprove, in
186	314		whole or in part, the submissi on and analysis of the required
187	315		information. The Okl ahoma Department of Commerce and the Oklahoma
188	316		Tourism and Recreation Department shall provide such assistance and
189	317		information as requested by the Tax Commission.
190		-
191	318		SECTION 4. AMENDATORY 68 O.S. 2011, Section 4305, as
192	319		last amended by Section 4, Chapter 201, O.S.L. 2018 (68 O.S. Supp.
193	320		2020, Section 4305), is amended to read as follows:
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195	348		Section 4305. A. The host community shall provide to the
196	349		Oklahoma Tax Commission detailed informa tion disclosing the total
197	350		amount of eligible local su pport amounts for purposes of determining
198	351		the amount of incremental state sales tax revenue that may be paid
199	352		to a host community in which a quality event occurs.
200		-
201	353		B. The Tax Commission shall verify the a mount of eligible local
202	354		support amounts prior to maki ng any payment to a host community.
203		-
204	355		C. After the conclusion of an event, the host community shall
205	356		provide information related to the event, such as attendance
206	357		figures, financial information or other pub lic information held by
207	358		the host community that the T ax Commission considers necessary to
208	359		evaluate the actual economic impact of the event.
209		-
210	360		D. The Tax Commission shall compare the total amount of
211	361		eligible local support amounts with the total amount of inc remental
212	362		state sales tax revenues remitted by vendors , such revenues to be
213	363		established based on actual documentation through the economic
214	364		impact study.
215		-
216	365		E. If the Tax Commission determines through an analysis of the
217	366		actual documentation economic impact study that the total amount of
218	367		incremental state sales t ax revenues is zero, no payment shall be
219	368		made to a host community.
220		-
221	369		F. If the Tax Commission determines through an analysis of the
222	370		actual documentation economic impact study that the total amount of
223		-	incremental state sales tax revenues is greater than zero, but less ENR. H. B. NO. 1121 Page 6
	371	+	incremental state sales tax revenues is greater than zero , but less
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224	399		than the total amount of eligible local support amounts, the Tax
225	400		Commission shall make payment, subject to the limitations of
226	401		subsection I of this section, to the host community of the quality
227	402		event in an amount equal to the incremental state sa les tax
228	403		revenues.
229		-
230	404		G. If the Tax Commission determines through an analysis of the
231	405		actual documentation economic impact study that the total amount of
232	406		incremental state sales tax revenues is at least equa l to the amount
233	407		of eligible local support amounts, th e Tax Commission shall make
234	408		payment, subject to the limitations of subsection I of this section,
235	409		to the host community in which the quality event occurs in an amount
236	410		equal to, but not greater than, the e ligible local support amounts.
237		-
238	411		H. No payment shall b e made to any host community from a source
239	412		other than the incremental state sales tax revenues, if any, derived
240	413		from state sales tax remittances of vendors as a result of the
241	414		quality event, as determined by an economic impact study verified by
242	415		the Oklahoma Tax Commission.
243		-
244	416		I. No payment shall be made to any host community in excess of
245	417		Two Hundred Fifty Thousand Dollars ($250,000.00) for a single
246	418		quality event regardless of the amount of eligible local sup port
247	419		paid by the host community.
248		-
249	420		SECTION 5. It being immediately necessary for the preservation
250	421		of the public peace, health or safety, an emergency is hereby
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251	449		declared to exist, by reason whereof this act shall take effect and
252	450		be in full force from and after its passage and approval.
253		-	ENR. H. B. NO. 1121 Page 7
254		-	Passed the House of Representatives the 1st day of March, 2021.
255		-
256		-
257		-
258		-
259		-	Presiding Officer of the House
260		-	of Representatives
261		-
262		-
263		-	Passed the Senate the 12th day of April, 2021.
264		-
265		-
266		-
267		-
268		-	Presiding Officer of the Senate
269		-
270		-
271		-
272		-	OFFICE OF THE GOVERNOR
273		-	Received by the Office of the Governor this ____________________
274		-	day of ___________________, 20_______, at _______ o'clock _______ M.
275		-	By: _________________________________
276		-	Approved by the Governor of the St ate of Oklahoma this _________
277		-	day of ___________________, 20_______, at _______ o'clock _______ M.
278		-
279		-
280		-	_________________________________
281		-	Governor of the State of Oklahoma
282		-
283		-	OFFICE OF THE SECRETARY OF STATE
284		-	Received by the Office of the Secretary of State t his __________
285		-	day of ___________________, 20_______, at _______ o'clock _______ M.
286		-	By: _________________________________
287		-
	451	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
	452	+	March 24, 2021 - DO PASS