Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB317 Compare Versions

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 317 By: Pemberton of the Senate
7	37
8	38		and
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10	40		Sneed and Deck of the House
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15	45		An Act relating to development incentives; amendin g
16	46		62 O.S. 2021, Section 860, which relates to the Local
17	47		Development Act; requiring the governing body to
18	48		submit an annual report for certain districts ;
19	49		providing date for submission; prescribing
20	50		information to be inc luded in report; and providing
21	51		an effective date.
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27		-	SUBJECT: Development incentives rep orting
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29	57		BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
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31	58		SECTION 1. AMENDATORY 62 O.S. 2021, Section 860, is
32	59		amended to read as follows:
33		-
34	60		Section 860. A. A project plan may contain a provision that
35	61		certain local taxes may be subject to incentives or may be exempted
36	62		in reinvestment areas, historic preservation are as or enterprise
37	63		areas.
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39	64		B. The governing body may grant incentiv es or exemptions from
40	65		local taxation only on the n ew investment made. No ad valorem tax
41	66		incentives or exemptions may be granted on th e value of property
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	68	+	SB317 HFLR Page 2
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42	94		which has been assessed or which is s ubject to assessment prior to
43	95		the adoption of the project plan. No ad valorem tax incentives or
44	96		exemptions authorized in this section may be granted for r etail
45	97		establishments. If a retail establish ment is located in pro perty
46	98		which otherwise qualifies for an incentive or exemption pursuant to
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48		-	ENR. S. B. NO. 317 Page 2
49	99		this section, the incentiv e or exemption shall not be allowed for
50	100		that portion of the property used for such retail establishment. As
51	101		used in this subsection, “retail establishment ” shall not include an
52	102		establishment that provides lodging including but not limited to a
53	103		hotel, apartment hotel, public rooming house , or motel. No ad
54	104		valorem tax incentives or exemptions a uthorized in this section may
55	105		be granted if the property is locate d in an increment district or as
56	106		long as the property is subject to the ad valorem tax exemption for
57	107		new or expanding manufacturing facilities as auth orized by Section
58	108		6B of Article X of the Oklahoma Constitution. In the event of
59	109		disposition by lease or s ublease to a lessee not entitled to an ad
60	110		valorem tax exemption, the improvements placed thereon shal l not be
61	111		entitled to an ad valorem tax exemption provided for in Section 850
62	112		et seq. of this title. Except as otherwise provided by this
63	113		subsection, the incentives, or exemptions, which may be full or
64	114		partial, may be granted f or a period not to exceed five (5) years.
65	115		With respect to an establis hment, the business of which is described
66	116		by U.S. Industry Number 518210 of the North Americ an Industry
67	117		Classification System (NAICS) Manual, 2017 re vision, such incentives
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	119	+	SB317 HFLR Page 3
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68	145		or exemptions may be granted for a period n ot to exceed twenty-five
69	146		(25) years.
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71	147		C. No incentives or exemptions may be granted t o any business
72	148		or firm that is relocating from within the state and is subject to
73	149		or in the process of recruitment by two or more governmental
74	150		entities within the state u nless the governmental entity in which
75	151		the business or firm does not locate adopts a r esolution giving
76	152		their approval to the granting of incentives or exemptions to the
77	153		business or firm loc ating in the competing governmental en tity. No
78	154		incentives or exemptions may be granted to an out -of-state business
79	155		or firm that is subject to or in the process of recruitment by two
80	156		or more governmental entities within the state except as otherwise
81	157		provided for in this subsection. The prohib ition against incentives
82	158		or exemptions to a business or firm relocating within the state may
83	159		be waived upon applica tion by the governing body to, and approval
84	160		of, the Director of the Oklahoma Department of Commerce. I n order
85	161		for the Director to approve th e waiver, the Director must f ind that
86	162		the incentives or exemptions are necessary and sufficient to attract
87	163		the business or firm and that the benefits generated by the business
88	164		location outweigh the costs of the busines s location.
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91		-	ENR. S. B. NO. 317 Page 3
92	165		D. A project plan may con tain a provision that ad val orem taxes
93	166		may be exempted in a commercial historic preservation area that is
94	167		adjacent to and serves designated historical residential areas for
95	168		neighborhood commercial preservation purposes in order for the
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96	196		neighborhood to reta in its basic character and s cale. No ad valorem
97	197		tax exemption may be g ranted on the value of property which has be en
98	198		assessed or which is subject to assessment p rior to the adoption of
99	199		the project plan. No ad valorem tax exemption shall be granted
100	200		pursuant to the provisions of this subsection for single -family
101	201		residences. The governing body may grant the exemption o nly on the
102	202		increase in value of the property. The exemptions may be granted
103	203		for a specific period of t ime as determined by a written agreeme nt
104	204		between the property owne rs of the area and the governing body and
105	205		may be renewed. Uses of the property eligibl e for this exemption
106	206		may include but not be lim ited to commercial, office, or multifamily
107	207		residential use.
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109	208		E. For increment districts in operation for nine (9) months or
110	209		more, on or before the ninetieth day following the end of each
111	210		fiscal year, the governin g body of a city, town, or county shall
112	211		submit a report to the Oklahoma Department of Commerce. The
113	212		Department shall provide a copy of the report to any member of the
114	213		public upon request. The disclosure report shall include the
115	214		following information:
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117	215		1. The amount and source of revenue captured a nd apportioned
118	216		pursuant to the project plan ;
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120	217		2. The amount and purpose of expenditures;
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122	218		3. The amount of principal and interest due on outstanding
123	219		bonded indebtedness;
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125	247		4. The tax increment base and current cap tured appraised value
126	248		or the other local tax or fee collections retained by the area;
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128	249		5. The captured appraised value or the other local tax or fee
129	250		collections shared by the city, town, or county and other taxing
130	251		entities, the total amount of tax increme nts received, and any
131	252		additional information necessary to demonstrate compliance with the
132	253		plan adopted by the city, town, or county;
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136	254		6. The name of the person who is currently in charge of the
137	255		implementation of the plan; and
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139	256		7. The names of the persons w ho have disclosed an interest as
140	257		required pursuant to Section 857 of this title and the interest
141	258		disclosed.
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143	259		F. For those incentive districts in operation for nine (9)
144	260		months or more, on or before the ninetieth day following the end of
145	261		each fiscal year, th e governing body of a city, town, or county
146	262		shall submit a report to the Oklahoma Department of Commer ce. The
147	263		Department shall provide a copy of the report to any member of the
148	264		public upon request. The disclosure report shall include the
149	265		following information:
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151	266		1. The parties receiving incent ives or exemptions;
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153	267		2. A general description of the property a nd the improvements
154	268		to be made;
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156	296		3. The portion and fair market value of the property to be
157	297		exempted or that portion of the local taxes to be subjec t to
158	298		incentives or to be exempted;
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160	299		4. The duration of the incentives or exemptions;
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162	300		5. Any additional information necessary to demonstrate
163	301		compliance with the tax incentives or exemptions;
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165	302		6. The name of the person who is currently in charge of the
166	303		implementation of the plan; and
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168	304		7. The names of the persons who have disclosed an interest as
169	305		required pursuant to Section 857 of this title and the interest
170	306		disclosed.
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172	307		SECTION 2. This act shall become effective November 1, 2023.
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175		-	ENR. S. B. NO. 317 Page 5
176		-	Passed the Senate the 7th day of March, 2023.
177		-
178		-
179		-
180		-	Presiding Officer of the Senate
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183		-	Passed the House of Representatives the 24th day of April, 2023.
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185		-
186		-
187		-	Presiding Officer of the House
188		-	of Representatives
189		-
190		-	OFFICE OF THE GOVERNOR
191		-	Received by the Office of the Governor this _______ _____________
192		-	day of ________________ ___, 20_______, at _______ o'clock _______ M.
193		-	By: _______________________________ __
194		-	Approved by the Governor of the State of Oklahoma this _____ ____
195		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
196		-
197		-	_________________________________
198		-	Governor of the State of Oklahoma
199		-
200		-
201		-	OFFICE OF THE SECRETARY OF STATE
202		-	Received by the Office of the Secretary of State this _______ ___
203		-	day of __________________, 20 _______, at _______ o'clock _______ M.
204		-	By: _______________________________ __
	309	+	COMMITTEE REPORT BY: COMMITTEE ON RURAL DEVELOPMENT, dated
	310	+	04/11/2023 - DO PASS, As Coauthored.