An Act
ENROLLED SENATE
BILL NO. 739 By: Leewright and Hall of the
Senate
and
Bashore of the House
An Act relating to the sales tax credit; amending
Section 3, Chapter 196, O.S.L. 2017, as amended by
Section 1, Chapter 443, O.S.L. 20 19, Section 4,
Chapter 196, O.S.L. 2017, as amended by Section 2,
Chapter 443, O.S.L. 20 19, Section 5, Chapter 196,
O.S.L. 2017, as amended by Section 3, Chapter 443,
O.S.L. 2019, Section 6, Chapter 196, O.S.L. 2017, as
amended by Section 4, Chapter 443, O .S.L. 2019 and
Section 7, Chapter 196, O.S.L. 2017, as amended by
Section 5, Chapter 443, O.S.L. 2019 (68 O.S. Supp.
2020, Sections 2393, 2394, 2395, 2396 and 2397),
which relate to the Oklahoma Tourism Development Act ;
modifying definitions; transferring powers and duties
from the Executive Director of the Oklahoma Tourism
and Recreation Department to the Executive Director
of the Oklahoma Department of Commerce; requiring
certain company to hire consulting firm; providing
exception upon request of company; authorizing the
Executive Director of the Oklahoma Department of
Commerce to allow a company to hire the Depar tment to
produce report; requiring certain costs to be
established by promulgation of rule s; establishing
minimum fee; clarifying circumstances for payment of
fee; requiring deposit of fee revenue; eliminati ng
authorization to appeal certain decision; authorizing
the Oklahoma Department of Commerce to determine
revenue neutrality of certain projects; transferring
certain agreements executed by t he Oklahoma Tourism
and Recreation Department to the Oklahoma Department
of Commerce on certain date; requiring the transfer
ENR. S. B. NO. 739 Page 2
of certain administrative rul es; requiring the
Secretary of State to provide certain notice and make
modification to the Administra tive Code; providing
the Oklahoma Department of Commerce jurisdiction over
certain rules; authorizing the Oklahoma Department of
Commerce to promulgate certain rules; clarifying
statutory language; providing statu tory reference;
and providing an effective date.
SUBJECT: Sales tax credit
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 3, Chapter 196, O.S.L.
2017, as amended by Section 1, Chapter 443, O.S.L. 2019 (68 O.S.
Supp. 2020, Section 23 93), is amended to read as follows:
Section 2393. As used in the Oklahoma Tourism Development Act:
1. “Agreement” means an agreement entered into pursuant to
Section 2396 of this title, by and between the Executive Director of
the Oklahoma Tourism and Recreation Department Oklahoma Department
of Commerce and an approved company, with respect to a tourism
attraction project;
2. “Approved company” means any eligible company or companies
seeking to undertake a tourism attraction project and is approved b y
the Executive Director pursuant to Sections 2395 and 2396 of this
title;
3. “Approved costs” means:
a. obligations incurred for labor and to vendors,
contractors, subcontractors, builders and suppliers in
connection with the acquisition, construction,
equipping and installation of a tourism attraction
project,
ENR. S. B. NO. 739 Page 3
b. the costs of acquiring real property or rights in real
property in connection with a tourism attraction
project, and any costs incidental thereto,
c. the costs of contract bonds and of insur ance of all
kinds that may be required or necessary during the
course of the acquisition, construction, equipping and
installation of a tourism attraction project which are
not paid by the vendor, supplier or contractor, or
otherwise provided,
d. all costs of architectural and engineering services
including, but not limited to, estimates, plans and
specifications, preliminary investigations, and
supervision of construction and installation, as well
as for the performance of all the duties required by
or consequent to the acquisition, construction,
equipping and installation of a tourism attraction
project,
e. all costs required to be paid under the terms of any
contract for the acquisition, construction, equipping
and installation of a tourism attraction p roject,
f. all costs required for the installation of utilities
in connection with a tourism attraction project
including, but not limited to, water, sewer, sewage
treatment, gas, electricity and communications, and
including off-site construction of util ity extensions
paid for by the approved company, and
g. all other costs comparable with those described in
this paragraph;
4. “Director” means the Executive Director of the Oklahoma
Tourism and Recreation Department Oklahoma Department of Commerce or
the Executive Director’s designated representative;
5. “Eligible company” means any corporation, limite d liability
company, partnership, sole proprietorship, business trust or any
other entity, operating or intending to operate a tourism attraction
project, whether owned or leased, within this state that meets the
ENR. S. B. NO. 739 Page 4
standards promulgated by the Executive Dire ctor pursuant to Section
2394 of this title and, with respect to an Entertainment District,
shall also include any such entity that will acquire, constru ct,
develop, equip, install, expand or operate all or any portion of the
Entertainment District, whethe r owned or leased;
6. “Entertainment District ” means a mixed-use planned
development project, with approved costs of One Million Dollars
($1,000,000.00) or more in the aggregate, encompassing more than one
hundred thousand (100,000) square feet and includ ing an
entertainment or recreational component and at least three of the
following categories: (a) retail; (b) housing; (c) office; (d)
restaurants; (e) hotel, regardless of whether the hotel is a
destination hotel; (f) grocery; (g) brewery facilities for a small
brewer (as defined in the Oklahoma Alcoholic Beverage Control Act,
Section 1-103 of Title 37A of the Oklahoma Statutes); or (h)
structured parking. An Entertainment District may include a project
that is anticipated to be completed in multiple pha ses;
7. “Entertainment District Tenant Party ” means any corporation,
limited liability company, partnership, sole proprietorship,
business trust or an y other entity operating within a tourism
attraction project that is an Entertainment District pursuant t o a
lease or similar agreement with an approved company or otherwise;
8. “Final approval” means the action taken by the Executive
Director authorizing the eligible company to receive inducements
under Section 2397 of this title;
9. “Increased state sales tax liability” means that portion of
an entity’s reported state sales tax liability resulting from
taxable sales of goods and services to its custom ers at the tourism
attraction which exceeds the reported state sales tax liability for
sales to its custome rs at the tourism attraction for the same month
in the calendar year immediately preceding the certification as an
approved company or an Entertainme nt District Tenant Party, as
applicable;
10. “Inducements” means the sales tax credit or incentive
payment as prescribed in Section 2397 of this title;
ENR. S. B. NO. 739 Page 5
11. “Preliminary approval ” means the action taken by the
Executive Director conditioned upon final a pproval by the Executive
Director upon satisfaction by the eligible company of the
requirements of this act the Oklahoma Tourism Development Act ;
12. a. “Tourism attraction” means:
(1) a cultural or historical site,
(2) a recreational or entertainment f acility,
(3) an area of natural phenomena or scenic beauty,
(4) a theme park,
(5) an amusement or enter tainment park,
(6) an indoor or outdoor play o r music show,
(7) a botanical garden,
(8) a cultural or educational center,
(9) a destination hotel whose location and amenities,
including, but not limited to, upscale dining,
recreation and entertainment, make the hotel
itself a destination for tourists, o r
(10) an Entertainment District.
b. A tourism attraction shall not include:
(1) lodging facilities, unless:
(a) the facilities constitute a portion of a
tourism attraction project and represent
less than fifty percent (50%) of the total
approved costs of the tourism attraction
project, or
ENR. S. B. NO. 739 Page 6
(b) the lodging facilities are a part of a
destination hotel or an Entertainment
District,
(2) facilities that are primarily devoted to the
retail sale of goods, unless:
(a) the goods are created at the site of the
tourism attraction project, or
(b) if the sale of goods is incidental to the
tourism attraction project, or
(c) such facilities are a part of an
Entertainment District,
(3) facilities that are not open to the general
public, unless such facilities are a part of an
Entertainment District wherein a substantial
portion of the Entertainment District is open to
the general public, as determined by the
Executive Director,
(4) facilities that do not serve as a likely
destination where individuals who are not
residents of this state would remain overnight in
commercial lodging at or near the tourism
attraction project, unless such facilities are a
part of an Entertainment District,
(5) facilities owned by the State of Oklahoma or a
political subdivision of this state, or
(6) facilities established for the purpose of
conducting legalized gambling. However , a
facility regulated under the Oklahoma Horse
Racing Act, Sections 200 through 209 of Title 3A
of the Oklahoma Statutes, sh all be a tourism
attraction for purposes of this act the Oklahoma
Tourism Development Act for any approved project
as outlined in subparagraph a of this paragraph
or for an approved project re lating to pari-
ENR. S. B. NO. 739 Page 7
mutuel racing at the facility and not for
establishing a casino or for offering casino -
style gambling; and
13. “Tourism attraction project” or “project” means:
a. the acquisition, including the acquisition of real
estate by leasehold intere st with a minimum term of
ten (10) years, construction and equipping of a
tourism attraction, and
b. the construction and installation of improveme nts to
facilities necessary or desirable for the acquisition,
construction and installation of a tourism attr action,
including, but not limited to:
(1) surveys, and
(2) installation of utilities, which may incl ude:
(a) water, sewer, sewage treatment, gas,
electricity, communications and similar
facilities, and
(b) off-site construction of utility extensions
to the boundaries of the real estate on
which the facilities are located, all o f
which shall be used to im prove the economic
situation of the approved c ompany in a
manner that shall allow the a pproved company
to attract tourists.
SECTION 2. AMENDATORY Section 4, Chapter 196, O.S.L.
2017, as amended by Sectio n 2, Chapter 443, O.S.L. 20 19 (68 O.S.
Supp. 2020, Section 2394), is amended to read as follows:
Section 2394. A. The Executive Director of the Oklahoma
Tourism and Recreation Depa rtment, with approval of the Oklahoma
Tourism and Recreation Commission, Oklahoma Department of Com merce
shall establish standar ds for the making of applications for
inducements to eligi ble companies and their tourism attraction
ENR. S. B. NO. 739 Page 8
projects by the promulgatio n of rules in accordance with the
Administrative Procedures Act.
B. With respect to each eligible co mpany making an application
to the Executive Director for inducements, and with resp ect to the
tourism attraction described in the application, the Executi ve
Director shall make inquiries and request materials of the applicant
that shall include, but shall not be limited to:
1. Marketing plans for the project that target individuals who
are not residents of this state;
2. A description and location of the project, including a
description and boundary of the area encompassing the Entertainment
District, if applicable;
3. Capital and other anticipated expenditures for the project
that indicate that the total cost of the project shall exceed the
minimum amount set forth in subsection C of this section and the
anticipated sources of funding therefor, which fo r an Entertainment
District that is anticipated to be completed in multiple phase s may
include capital and other anticipated expenditures for all phases of
the project;
4. The anticipated employment and wages to be paid at the
project, which may include e mployment and wages to be p aid by the
eligible company and any tenants of the to urism attraction project;
5. Business plans which indicate the average num ber of days in
a year in which the project or any component thereof will b e in
operation and open to the public, if applicable; and
6. The anticipated revenues and expenses gener ated by the
project, which for an Entertainment District may include the
anticipated revenues and expenses generated by each of the different
phases or components of the Entertai nment District.
Based upon a review of these materials, if the Executive
Director determines that the eligible company and the tourism
attraction may reaso nably be expected to satisfy the criteria for
final approval in subsection C of this section, then th e Executive
Director may consider granting a preliminary approval of the
ENR. S. B. NO. 739 Page 9
eligible company and the tourism attraction project pursuant to
subsection B of Section 2395 of this title.
C. For Except as provided for in subsection D o f this section,
for a tourism attraction project, after granting a preliminary
approval, the Executive Director shall engage the services of
require the eligible c ompany to hire a competent consulting firm
which shall submit to the Executive Director a rep ort analyzing the
data made available by the eligible company and which shall collect
and analyze additional information necessary to determine that, in
the independent judgment of t he consultant, the tourism attraction
project will:
1. Attract at least t wenty-five percent (25%) of its visitors
from among persons who are not residents of th is state;
2. Have costs in excess of Five Hundred Thousand Dollars
($500,000.00);
3. Have a significant and positive economic impact on this
state considering, among o ther factors, the extent to which the
tourism attraction project will compete directly with existing
tourism attractions in this state, and the extent to which the
tourism attraction project will be revenue-neutral to the State of
Oklahoma, meaning the amo unt by which increased tax revenues from
the tourism attraction project will exceed the inducements allowed
pursuant to Section 2397 of this title;
4. Produce sufficient revenues an d public demand to be
operating and open to the public on a regular and pe rsistent basis;
and
5. Not adversely affect existing employment in this state.
D. At the request of the eligible company, the Executive
Director may allow the eligible company to hire the Oklahoma
Department of Commerce to prepare the report required in subsection
C of this section.
E. For a tourism attraction project that is an Entertainment
District and is anticipated to be completed in multiple phases, the
consulting firm’s required report may include the data and
ENR. S. B. NO. 739 Page 10
information for the entire Entertainm ent District including any and
all components or phases of the Entertainment District and a
separate report for each component or phase of the Entertainment
District shall not be req uired.
E. F. The eligible company shall pay for the cost of the
consultant’s required report and shall cooperate with the consultant
entity preparing the report and provide all of the data that the
consultant preparing entity deems necessary to make a determination
pursuant to this section. The cost for preparation of this rep ort
by the Oklahoma Departm ent of Commerce shall be set forth by
administrative rules promulgated by the Department, but in any event
shall be a nonrefundable fee of no less than Five Thousand Dollars
($5,000.00) per report. Payment for preparation of th is report by
the Oklahoma Department of Commerce shall be made by the eligible
company to the Department upon approval of the request, and funds
received shall be deposited into the Oklahoma Department of Commerce
Revolving Fund created in Section 5012 of Title 74 of the Oklahoma
Statutes.
SECTION 3. AMENDATORY Section 5, C hapter 196, O.S.L.
2017, as amended by Section 3, Chapter 443, O. S.L. 2019 (68 O.S.
Supp. 2020, Section 2395), is amended to read as follows:
Section 2395. A. The Executive Director of t he Oklahoma
Tourism and Recreation Department, with the approval of the Oklahoma
Tourism and Recreation Commission, Oklahoma Department of Commerce
shall establish standards for preliminary approval and final
approval of eligible companies and their projec ts by the
promulgation of rules in accordance with the Administrati ve
Procedures Act.
B. The Executive Director may give preliminary approval by
designating an eligible company as a preliminarily approved company
and preliminarily authorizing the undertak ing of the tourism
attraction project.
C. The Executive Director shall review the report of the
consultant prepared pursuant to subsection C of Section 23 94 of this
title and other information that has been made available to the
Executive Director in orde r to assist the Executive Director in
ENR. S. B. NO. 739 Page 11
determining whether the tou rism attraction project will further the
purposes of this act the Oklahoma Tourism Develop ment Act.
D. The criteria for final approval of eligible companies and
tourism attraction projects shall inclu de, but shall not be limite d
to, the criteria set fort h in subsection C of Section 2394 of this
title.
E. After a review of the relevant materia ls, the consultant’s
report, other information made available to the Executive Dire ctor,
and completion of othe r inquiries, the Executive Director may give
final approval to the eligible company’s application for a tourism
attraction project and may grant to the eligible company the status
of an approved company. The decision reached by the Executive
Director may be appealed by the eligible company to the Tourism an d
Recreation Commission. The decision of the Tourism and Recreation
Commission shall consti tute the final administrative decision of the
Oklahoma Tourism and Recreation Depar tment.
SECTION 4. AMENDATORY Section 6, Chapter 196, O .S.L.
2017, as amended by Section 4, Chapter 443, O.S.L. 2019 (68 O.S.
Supp. 2020, Section 23 96), is amended to read as follows:
Section 2396. A. Upon granting final approval, the Executive
Director of the Oklahoma Tourism and Re creation Department Oklahoma
Department of Commerce may enter into an agreement with an approved
company with respect to its tourism attraction project. The terms
and provisions of each agreement shall include, but shall not be
limited to:
1. The amount of approved costs, whic h shall be determined by
negotiations between the Executive Director and the approved
company;
2. A date certain by which the approved company shall have
completed the tourism attraction project or an indi vidual component
or phase of the project if the t ourism attraction project is an
Entertainment District. Within three (3) months of the completi on
date of the whole or an individual component or phase of the
project, the approved company shall document it s actual costs of the
project through a certifica tion of the costs by an independent
ENR. S. B. NO. 739 Page 12
certified public accountant acceptable to the Executive Dire ctor;
and
3. The following provisions:
a. the term of the agreement shall be ten (10) years from
the later of:
(1) the date of the final approval of the tourism
attraction project, or
(2) the completion date sp ecified in the agreement,
if the completion date is within three (3) years
of the date of the final approval of the tourism
attraction project. However, th e term of the
agreement may be extended for up to two (2)
additional years by the Executive Director , with
the advice and consent of the Oklahoma Tax
Commission, if the Executive Director determines
that the failure to complete the tourism
attraction project within three (3) years
resulted from:
(a) unanticipated and unavoidable delay in the
construction of the tourism attraction
project,
(b) an original completion date for the tourism
attraction project, as originally planned,
which will be more than three (3) years from
the date construction began, or
(c) a change in business structure resulting
from a merger or acquisition,
b. in any tax year during which an agreement is in
effect, if the amount of sales tax to be remitted by
the approved company or an En tertainment District
Tenant Party, if applicable, exceeds the sales tax
credit available to the appr oved company or
Entertainment District Tenant Party, if applicable,
then the approved company or Entertainment District
ENR. S. B. NO. 739 Page 13
Tenant Party, if applicable, shall p ay the excess to
this state as sales tax,
c. within forty-five (45) days after the end of each
calendar year the approved company shall supply th e
Executive Director with such reports and
certifications as the Executive Director may request
demonstrating to the satisfaction of the E xecutive
Director that the approved company is in compliance
with the provisions of the Oklahoma Tourism
Development Act, and
d. the approved company or an Entertainment District
Tenant Party, if applicable, shall not receive an
inducement with respect to any calendar year if:
(1) with respect to any tourism attraction project
that is not an Entertainment District in any
calendar year following the fourth year of the
agreement, the tourism attraction project fails
to attract at least fifteen percent (15%) o f its
visitors from among persons who are not residents
of this state, or
(2) in any calendar year following the first year of
the project or the tourism attraction project is
not operating and open to the public on a regular
and consistent basis, which fo r a tourism
attraction project that is an Entertainment
District shall mean that a substantial portion of
the Entertainment District is not operating and
open to the public on a regular and consistent
basis.
B. The agreement sha ll not be transferable or a ssignable by the
approved company without the written consent of the Exec utive
Director but, with respect to a tourism attraction project that is
an Entertainment District, the approved company can elect to pass -
through all or a portion of the sales tax cr edit to one or more
Entertainment District Tenant Parties in accordance w ith Section
2397 of this title.
ENR. S. B. NO. 739 Page 14
C. If the approved company utilizes or receives inducements
which are subsequently disallowed then the approved company wil l be
liable for the payment to the Tax Commission of an amount equal to
(i) all taxes resulting from the disallowance of the inducements
plus applicable penalties and interest, whether owed by the approved
company or an Entertainment District Tenant Party to which the
credits have been passed-through in accordance with Section 2397 of
this title, and/or (ii) all incentive payments previously receiv ed
by the approved company, plus applicable penalties and interest.
Only the approved company originally allow ed a sales tax credit
shall be held liable to make such payments and not any Entertainment
District Tenant Party to whom the credit has been pass ed-through in
accordance with Section 2397 of this title.
D. The Executive Director shall provide a copy of ea ch
agreement entered into w ith an approved company to the Tax
Commission.
E. For a tourism attracti on project that is an Entertainment
District and anticipated to have multiple components or phases, the
Executive Director may enter into more than one agre ement with
different approved companies for the different components or phases
of the Entertainment District and such agreements may be entered
into at different times as though the different components or phases
of the Entertainment District are their own separate project. In
such case, the Executive Director shall not be required to obtain a
separate consultant’s report (referred to in subsectio n C of Section
2394 of this title) for each individual component or phase of the
Entertainment District, but on ly one consultant’s report for the
entire Entertainment District.
SECTION 5. AMENDATORY Section 7, Chapter 196, O.S.L.
2017, as amended by Section 5, Chapter 443, O.S.L. 2019 (68 O.S.
Supp. 2020, Section 2397), is amended to read as follows:
Section 2397. A. Upon receiving notification from the
Executive Director of the Oklahoma Tourism and Recreation Department
Oklahoma Department of Commerce that an approved company h as entered
into a tourism project agreement and is entitled t o the inducements
provided by the Oklahoma Tourism Development Act, the Oklahoma Tax
Commission shall provide the approved company with forms and
ENR. S. B. NO. 739 Page 15
instructions as necessary to claim or receive or pass-through those
inducements.
B. An approved company whose agreement provides that it shall
expend approved costs of more than Five Hundred Thousand Dollars
($500,000.00) for a tourism attraction project but less than One
Million Dollars ($1,000,000.00) shall be entitled to a sales tax
credit if the company certi fies to the Tax Commission that it has
expended at least the minimum amount in approved costs, and the
Executive Director certifies that the appr oved company is in
compliance with this act the Oklahoma Tourism Development Act . The
Tax Commission shall then issue a tax credit memorand um to the
approved company granting a sales tax credit in the amount of up to
ten percent (10%) of the approved cos ts, but limited to the percent
of the approved costs that will result in the project bei ng revenue-
neutral to the State of Oklahoma as determ ined by the Tax Commission
Oklahoma Department of Commerce . Subsequent requests for credit for
additional certified approved costs in excess of the minimum amount
for each project as listed in this subs ection but less than One
Million Dollars ($1,000,000. 00) shall result in a sales tax credit
in the amount of up to ten percent (10%) of the approved costs, but
limited to the percent of the approved costs that will result in the
project being revenue -neutral to the State of Oklahoma as determined
by the Tax Commission Oklahoma Department of Commerce. Sales tax
credits allowed purs uant to the provisions of this act the Oklahoma
Tourism Development Act shall not be transferable or assignable;
provided that, with respect to a tourism attraction project that is
an Entertainment District, the approved company can elect to pass-
through all or a portion of the sales tax cred it to one or more
Entertainment District Tenant Parties. The approved company and the
Entertainment District Tenant Party shall jointly file a copy of the
written credit pass-through agreement with the Oklahoma Tax
Commission within thirty (30) days of th e effective date of the
agreement. Such filing of the agreement with the Oklahoma Tax
Commission shall perfect such agreement. The written agreement
shall contain the name, address and taxpayer identification number
of the parties to the agreement, the a mount of credit being passed-
through, the month and year the credit was originally allowed to the
approved company, the month an d tax year or years for which the
credit may be claimed, and a representation by the approved company
that the approved company has neither claimed for its own behalf nor
conveyed such credits to any other Entertainment District Tenant
ENR. S. B. NO. 739 Page 16
Party. The Tax Comm ission shall develop a standard form for use by
an approved company and an Entertainment District Tenant Party
demonstrating eligibility for the Entertainment District Tenant
Party to utilize the sales tax credit. The Tax Commission shall
develop a system to record and track the pass-through of the sales
tax credit and certify the ownership of the sales tax credit and may
promulgate rules to permit verification of the validity and
timeliness of a sales tax credit claimed upon a sales tax return
pursuant to this subsection but shall not promulgate any rules which
unduly restrict or hinder the pass-through of such sales tax credit
to an Entertainment District Tenant Party.
An approved company whose agreement provides that it shall
expend approved costs in exc ess of One Million Dollars
($1,000,000.00) shall be entitled to a sales tax credit if the
company certifies to the Tax Commissio n that it has expended at
least One Million Dollars ($1,000,000.00) in approved costs and the
Executive Director certifies that the approved company is in
compliance with this act the Oklahoma Tourism Development Act . The
Tax Commission shall then issue a ta x credit memorandum to the
approved company granting a sales tax credit in the amount of up to
twenty-five percent (25%) of the approved cos ts, but limited to the
percent of the approved costs that will result in the projec t being
revenue-neutral to the State of Oklahoma as determined by the Tax
Commission Oklahoma Department of Commerce. The credit on all
subsequent additional certified appr oved costs shall be in the
amount of up to twenty-five percent (25%) of the costs, but limited
to the percent of the approved costs that will result in the project
being revenue-neutral to the State of Oklahoma as determined by the
Tax Commission Oklahoma Department of Commerce. For a tourism
attraction project that is an Entertainment District, an approved
company may elect to receive an incentive payment based on sales tax
collections of Entertainment District Te nant Parties rather than a
sales tax credit. The incentive payment shall be in the amount of
up to twenty-five percent (25%) of the approved costs but limite d to
the percent of the approved costs that will result in the project
being revenue-neutral to the State of Oklahoma as determined by the
Tax Commission Oklahoma Department of Commerce; provided that, (A)
in no event shall the incentive payments exceed th e increased state
sales tax liability of the approved company and the Entertainment
District Tenant Parties that is actually recei ved by the Tax
Commission, and (B) the approved company shall be entitled to
ENR. S. B. NO. 739 Page 17
receive only ten percent (10%) of the incentive p ayment amount
during each calendar year. The Tax Commission shall issue an
incentive payment memorandum to the approved company g ranting a
right to receive an incentive payment from the Tax Commission in the
amount of up to twenty-five percent (25%) of th e approved costs but
limited to the percent of the approved costs that will result in the
project being revenue -neutral to the State of Oklahoma as determined
by the Tax Commission Oklahoma Department of Commerce . As soon as
practicable after the end of e ach calendar year during the term of
the agreement, the approved company shall file a claim for the
incentive payment with the Tax Commissio n, and the Tax Commission
shall be responsible for ensuring that the amount of the incentive
payment claimed does no t exceed the increased state sales tax
liability of the approved company and the Entertainment District
Tenant Parties that has been actuall y received by the Tax
Commission, which may include accessing the Oklahoma sales ta x
returns of the Entertainment Di strict Tenant Parties as permitted by
this section.
The cumulative inducements provided pursuant to this act the
Oklahoma Tourism Developme nt Act shall not exceed Fifteen Million
Dollars ($15,000,000 .00) per year.
The Tax Commission shall require proof of expenditures prior to
issuing a tax credit memorandum or incentive payment memorandum to
the approved company which may be satisfied by a report from an
independent certified public accountant. Addi tional credit
memoranda or incentive memoranda may be is sued as the approved
company certifies additional expenditures of approved costs.
No tax credit memorandum or incentive payment memorandum shall
be issued for any approved costs expended after the exp iration of
three (3) years from the date the agreement w as signed by the
Executive Director and the approved company. However, the Executive
Director, with the advice and consent of the Tax Com mission, may
authorize inducements for approved costs expended up to five (5)
years from the date the agreement was si gned if the Executive
Director determines that the failure to complete the tourism
attraction project within three (3) years resulted from :
1. Unanticipated and unavoidable delay in the construction of
the tourism attraction;
ENR. S. B. NO. 739 Page 18
2. An original completion da te for the tourism attraction, as
originally planned, which will be more than three (3) years from the
date construction began; or
3. A change in business ownership or business structure
resulting from a merger or acquisition.
C. A sales tax credit allow ed pursuant to the provisions of
this section may be used to offset a portion of the reported state
sales tax liability of the approve d company or an Entertainment
District Tenant Party, if applicable , for all sales tax reporting
periods following the issu ance of the credit memorandum subject to
the following limitations:
1. Only increased state sales tax liability may be offset by
the issued credit;
2. An approved company whose agreement provides th at it shall
expend approved costs in excess of One Milli on Dollars
($1,000,000.00) or an Entertainment District Party, if applicable,
shall be entitled to use only ten percent (10%) of the amount of
each issued credit to offset increased state sales tax li ability
during each calendar year, plus the amount of an y unused credit
carried forward from a prior calendar year, and an approved company
whose agreement provides that it shall expend ap proved costs of more
than the minimum amount for each project as lis ted in this
subsection but less than One Million Dollars ($1,000,000.00) shall
be entitled to use only twenty percent (20%) of the amount of each
issued credit to offset increased state sa les tax liability during
each calendar year, plus the amount of any unused credit carried
forward from a prior calendar year ; and
3. All issued credit memoranda or incentive payment memorandum
shall expire at the end of the month following the expiration of the
agreement as provided in Section 2396 of this title.
The approved company or an Entertainment District Tenant Party,
if applicable, shall have no obligation to refund or otherwise
return any amount of this inducement to the person from whom the
sales tax was collected.
ENR. S. B. NO. 739 Page 19
D. The Tax Commission shall promulgate rules a s are necessary
for the proper administration of the Okl ahoma Tourism Development
Act. The Tax Commission may also develop forms and instructions as
necessary for an approved company o r Entertainment District Tenant
Party, if applicable, to claim or recei ve or pass-through the
inducements provided by this act the Oklahoma Tourism Development
Act.
E. The Tax Commission shall have the authority to obtain any
information necessary from o r regarding the approved company or an
Entertainment District Tenant Party, if applicable, and the
Executive Director to verify that approved companies or an
Entertainment District Tenant Party, if applicable, have received
the proper amounts of inducement s as authorized by this act the
Oklahoma Tourism Development Act . The Oklahoma Tax Commission shall
demand the repayment of an y inducements taken or received in excess
of the inducements allowed by this act .
F. No sales tax credit or incentive payment r ight authorized by
this section shall be granted on or after January 1, 2026.
Notwithstanding the foregoing, an approved compan y that has entered
into a tourism attraction project agreement with the Oklahoma
Tourism and Recreation Department Oklahoma Department of Commerce
pursuant to Section 2396 of this title prior to January 1, 2026,
shall continue to be entitled to claim or re ceive any inducements
authorized by this section as contemplated by the tourism project
agreement.
G. All currently approved tourism project agreements executed
by the Oklahoma Tourism and Recreation Department are hereby
transferred to the Oklahoma Depar tment of Commerce upon the
effective date of this act.
H. On the effective date of this act, all administrative rules
promulgated by the Oklahoma Tourism and Recreation Department
regarding the Oklahoma Tourism Development Act shall be transferred
to and become a part of the administrative rules of the Oklahoma
Department of Commerc e. The Office of Administrative Rules in the
Office of the Secretary of State shall provide adequate notice in
the Oklahoma Register of the transferred rules and shall place t he
transferred rules under the Administrative Code section of the
Oklahoma Department of Commerce. On the effective date of this act,
ENR. S. B. NO. 739 Page 20
any amendment, repeal or addition to the transferred rules shall be
under the jurisdiction of the Oklahoma Department of Commerce, who
shall have the authority to enact rules in or der to carry out the
provisions of the Oklahoma Tourism Development Act.
SECTION 6. This act shall become effective November 1, 2021.
ENR. S. B. NO. 739 Page 21
Passed the Senate the 9th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the 14th day of April, 2021.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _________
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __