Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB409 Compare Versions

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Version 2 (New)

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3		-	SB409 HFLR Page 1
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	3	+	ENGR. S. B. NO. 409 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 58th Legislature (2021)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 409 By: Bergstrom of the Senate
37	30
38	31		and
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40	33		Fetgatter of the House
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45	38		An Act relating to the Oklahoma Research and
46	39		Development Incentives Act; amending 68 O.S. 2011 ,
47	40		Sections 54003 and 54004, which relate to the
48	41		exemption of sales and use taxes for qualified
49	42		purchases; modifying time period during which
50	43		specified exemption may be claimed; modifying time
51	44		period during which qual ified purchase may be
52	45		eligible for refund; updating statutory references;
53	46		and providing an effect ive date.
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59	52		BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
60	53		SECTION 1. AMENDATORY 68 O.S. 2011, Section 54003, is
61	54		amended to read as follows:
62	55		Section 54003. A. There are hereby specifically exempted from
63	56		the taxes levied by Section 1354 and Section 1402 of Title 68 of the
64	57		Oklahoma Statutes this title sales of qualified purchases made after
65	58		July 1, 1992, and before Jan uary 1, 2022, to a qualified purchaser
66	59		which is primarily engaged in computer services and data p rocessing
67	60		as defined under Industrial Group Numbers 7372, 7373, 7374 and 7375
	61	+	of the SIC Manual, latest revision, or a quali fied purchaser which
	62	+	is primarily engaged in research and development as de fined under
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69		-	SB409 HFLR Page 2
70		-	BOLD FACE denotes Committee Amendments. 1
	64	+	ENGR. S. B. NO. 409 Page 2 1
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95		-	of the SIC Manual, latest revision, or a qualified purchaser which
96		-	is primarily engaged in research and development as defined under
97	89		Industrial Group Numbers 8731, 8732, 8733 and 8734 of the SIC
98	90		Manual, latest revision.
99	91		B. A qualified purchaser which is primarily engaged in computer
100	92		services and data processing as defined under Indust rial Group
101	93		Number 7374 of the SIC Manual , latest revision, shall be required to
102	94		have a minimum of One Hundred Thousand Dollars ($100,000.00) in
103	95		qualified purchases in order to be eligible to receive the exemption
104	96		provided for in this section.
105	97		C. In order to be eligible to receive the exemption provided
106	98		for in this section, a new or expanding business shall not include
107	99		the existing employee positions of any business enterprise that is
108	100		directly or beneficially owned by a co rporation, trust, joint
109	101		venture, proprietorship, or partnership doing busin ess in this state
110	102		as of January 1, 1992.
111	103		D. Eligibility to receive the exemption provided for in this
112	104		subsection pursuant to the requirement to derive fifty percent (50%)
113	105		of revenues from out-of-state buyers or cons umers and pursuant to
114	106		the requirement that the business be primarily engaged in computer
115	107		services and data processing or in research and development shall be
116	108		established, subject to review by the Oklahoma Tax Commission, by
117	109		annually filing an affidavit wit h the Oklahoma Tax Commission
118	110		stating that the business so qualifies and such other information a s
	111	+	required by the Commission. For purposes of determining whether
	112	+	annual gross revenues are derived from sales to out -of-state buyers
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120		-	SB409 HFLR Page 3
121		-	BOLD FACE denotes Committee Amendments. 1
	114	+	ENGR. S. B. NO. 409 Page 3 1
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146		-	required by the Commission. For purposes of determining whether
147		-	annual gross revenues are derived from sales to out -of-state buyers
148	139		or consumers, all sales to the federal government shall be
149	140		considered to be sales to an out -of-state buyer or consumer.
150	141		SECTION 2. AMENDATORY 68 O.S. 2011, Section 54004, is
151	142		amended to read as follows:
152	143		Section 54004. A. In order to administer the exemp tion for
153	144		sales to a qualified computer s ervices, data processing or r esearch
154	145		and development faci lity as provided by Section 7 of this act
155	146		Section 54003 of this title , there shall be made a sales tax refund
156	147		for state and local sales taxes paid by the accou nt created by this
157	148		section to such quali fied facility.
158	149		B. The Oklahoma Tax Commission shall tran sfer each month from
159	150		sales tax collected the amount which the Commission estimates to be
160	151		necessary to make the sales tax refund provided by this section to
161	152		an account designated as the Commission det ermines.
162	153		C. Any refund shall be paid from the account pr escribed by this
163	154		section at the time the claim for refund is approved by the Oklahoma
164	155		Tax Commission. The amount of the refund shall not exceed the total
165	156		state and local sales taxes paid together wi th accrued interest upon
166	157		such total. The amount of inter est paid to a qualified computer
167	158		services, data processing or research and development facility upon
168	159		the principal amount of any refund made to such qualified facility
169	160		for purposes of administering t he exemption provided by Section 7 of
	161	+	this act Section 54003 of this title, shall be determined according
	162	+	to the provisions of this subsection. For any month during which
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171		-	SB409 HFLR Page 4
172		-	BOLD FACE denotes Committee Amendments. 1
	164	+	ENGR. S. B. NO. 409 Page 4 1
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197		-	this act Section 54003 of this title , shall be determined according
198		-	to the provisions of this subsection. For any month during which
199	189		the Oklahoma Tax Commission transfers a sum to the account
200	190		prescribed by subsection B of this section, the Commission shall
201	191		determine an interest rate by determining the rate of interest paid
202	192		for a three-month Treasury Bill of the United States government as
203	193		of the first working day of the month in which the transfer is made.
204	194		The interest rate so determined shall accrue upon the amount
205	195		transferred to the account. In each subsequent month, the
206	196		Commission shall determine the interest rate paid for a three -month
207	197		Treasury Bill of the United States gove rnment as of the first
208	198		working day of the month and such interest rate shall accrue upon
209	199		any amount transferred during the month and upon the amounts
210	200		previously transferred to the account together with interest
211	201		previously accrued upon such amounts.
212	202		D. For purposes of this section, state and loc al sales taxes
213	203		paid by a contractor or subcontractor for qualified purchases as
214	204		defined in Section 6 of this act Section 54002 of this title ,
215	205		purchased by that contractor or subcontractor pursuant to a contract
216	206		with a qualified computer services, d ata processing or research and
217	207		development facility shall, upon p roper showing, be refunded to such
218	208		qualified facility.
	209	+	E. The qualified computer services, data processing or research
	210	+	and development facility shall file wit h the Oklahoma Tax Commission
	211	+	the following documentation for any refund claimed:
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220		-	SB409 HFLR Page 5
221		-	BOLD FACE denotes Committee Amendments. 1
	213	+	ENGR. S. B. NO. 409 Page 5 1
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246		-	E. The qualified computer services, data processing or research
247		-	and development facility shall file with the Okl ahoma Tax Commission
248		-	the following documentation for any refund claimed:
249	238		1. Invoices indicating the amount of state and local sales tax
250	239		billed;
251	240		2. Affidavit of each vendor that state and local sales tax
252	241		billed has not been audited, rebated, or r efunded to such qualified
253	242		facility but rather the sales tax charged has been collected by the
254	243		vendor and remitted to the Oklahoma Tax Commission; and
255	244		3. All additional documentation required to be submitted
256	245		pursuant to rules promulgated by the Oklahoma Ta x Commission.
257	246		F. In the event that state and local sales tax was paid by a
258	247		contractor or subcont ractor, the qualified computer services, data
259	248		processing or research and development facility shall file with the
260	249		Oklahoma Tax Commission all documentation req uired in subsection E
261	250		of this section but in lieu of the affidavit of each vendor the
262	251		qualified facility shall file, for any refund claimed, an affidavit
263	252		from the contractor or subcontractor stating that the sales tax
264	253		refund of the qualified facility is ba sed on state and local sales
265	254		tax paid by the contractor or subcontractor on qualified purchases
266	255		as defined in Section 6 of this act Section 54002 of this title ,
267	256		purchased and that t he amount of state and local sales tax claimed
268	257		was paid to the vendor and n o credit, refund, or rebate has been
269	258		claimed by the contractor or subcontractor.
	259	+	G. Only sales of qualified purchases as defined in Section 6 of
	260	+	this act Section 54002 of this title , made after July 1, 1992 , and
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271		-	SB409 HFLR Page 6
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	262	+	ENGR. S. B. NO. 409 Page 6 1
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297		-	G. Only sales of qualified purchases as defined in Section 6 of
298		-	this act Section 54002 of this title , made after July 1, 1992 , and
299	287		before January 1, 2022 , shall be eligible for the refund established
300	288		by this section.
301	289		H. The qualified computer services, data processing o r research
302	290		and development facility shall file, within thirty -six (36) months
303	291		of the date of the first purchase which is exempt from taxatio n
304	292		pursuant to the provisions of Section 7 of this act Section 54003 of
305	293		this title, with the Oklahoma Tax Commission a certification issued
306	294		by the Employment Security Commission in order to qualify for the
307	295		refund authorized by this section.
308	296		I. Notwithstanding the provisions of any state tax law, the
309	297		amount refunded under this section shall be assessed if the number
310	298		of new full-time-equivalent employees drops below the number
311	299		prescribed in Section 6 of this act Section 54002 of this title, at
312	300		any time within thirty -six (36) months of the date certification i s
313	301		issued by the Oklahoma Employment Security Commission.
314	302		SECTION 3. This act shall become effective November 1, 2021.
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316		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
317		-	04/15/2021 - DO PASS.
	304	+	ENGR. S. B. NO. 409 Page 7 1
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	329	+	Passed the Senate the 2nd day of March, 2021.
	330	+
	331	+
	332	+
	333	+	Presiding Officer of the Senate
	334	+
	335	+
	336	+	Passed the House of Representatives the ____ day of __________,
	337	+	2021.
	338	+
	339	+
	340	+
	341	+	Presiding Officer of the House
	342	+	of Representatives
	343	+