An Act
ENROLLED SENATE
BILL NO. 317 By: Pemberton of the Senate
and
Sneed and Deck of the House
An Act relating to development incentives; amending
62 O.S. 2021, Section 860, which relates to the Local
Development Act; requiring the governing body to
submit an annual report for certain districts ;
providing date for submission; prescribing
information to be inc luded in report; and providing
an effective date.
SUBJECT: Development incentives rep orting
BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 860, is
amended to read as follows:
Section 860. A. A project plan may contain a provision that
certain local taxes may be subject to incentives or may be exempted
in reinvestment areas, historic preservation are as or enterprise
areas.
B. The governing body may grant incentiv es or exemptions from
local taxation only on the n ew investment made. No ad valorem tax
incentives or exemptions may be granted on th e value of property
which has been assessed or which is s ubject to assessment prior to
the adoption of the project plan. No ad valorem tax incentives or
exemptions authorized in this section may be granted for r etail
establishments. If a retail establish ment is located in property
which otherwise qualifies for an incentive or exemption pursuant to
ENR. S. B. NO. 317 Page 2
this section, the incentiv e or exemption shall not be allowed for
that portion of the property used for such retail establishment. As
used in this subsection, “retail establishment” shall not include an
establishment that provides lodging including but not limited to a
hotel, apartment hotel, public rooming house , or motel. No ad
valorem tax incentives or exemptions a uthorized in this section may
be granted if the property is located in an increment district or as
long as the property is subject to the ad valorem tax exemption for
new or expanding manufacturing facilities as auth orized by Section
6B of Article X of the Oklahoma Constitution. In the event of
disposition by lease or sublease to a lessee not entitled to an ad
valorem tax exemption, the improvements placed thereon shal l not be
entitled to an ad valorem tax exemption provided for in Section 850
et seq. of this title. Except as otherwise provided by this
subsection, the incentives, or exemptions, which may be full or
partial, may be granted f or a period not to exceed five (5) years.
With respect to an establis hment, the business of which is described
by U.S. Industry Number 518210 of the North Americ an Industry
Classification System (NAICS) Manual, 2017 re vision, such incentives
or exemptions may be granted for a period n ot to exceed twenty-five
(25) years.
C. No incentives or exemptions may be granted t o any business
or firm that is relocating from within the state and is subject to
or in the process of recruitment by two or more governmental
entities within the state u nless the governmental entity in which
the business or firm does not locate adopts a r esolution giving
their approval to the granting of incentives or exemptions to the
business or firm loc ating in the competing governmental en tity. No
incentives or exemptions may be granted to an out -of-state business
or firm that is subject to or in the process of recruitment by two
or more governmental entities within the state except as otherwise
provided for in this subsection. The prohib ition against incentives
or exemptions to a business or firm relocating within the state may
be waived upon applica tion by the governing body to, and approval
of, the Director of the Oklahoma Department of Commerce. I n order
for the Director to approve th e waiver, the Director must f ind that
the incentives or exemptions are necessary and sufficient to attract
the business or firm and that the benefits generated by the business
location outweigh the costs of the busines s location.
ENR. S. B. NO. 317 Page 3
D. A project plan may con tain a provision that ad val orem taxes
may be exempted in a commercial historic preservation area that is
adjacent to and serves designated historical residential areas for
neighborhood commercial preservation purposes in order for the
neighborhood to reta in its basic character and s cale. No ad valorem
tax exemption may be g ranted on the value of property which has be en
assessed or which is subject to assessment p rior to the adoption of
the project plan. No ad valorem tax exemption shall be granted
pursuant to the provisions of this subsection for single -family
residences. The governing body may grant the exemption o nly on the
increase in value of the property. The exemptions may be granted
for a specific period of t ime as determined by a written agreeme nt
between the property owne rs of the area and the governing body and
may be renewed. Uses of the property eligibl e for this exemption
may include but not be lim ited to commercial, office, or multifamily
residential use.
E. For increment districts in operation for nine (9) months or
more, on or before the ninetieth day following the end of each
fiscal year, the governin g body of a city, town , or county shall
submit a report to the Oklahoma Department of Commerce. The
Department shall provide a copy of the report to any member of the
public upon request. The disclosure report shall include the
following information:
1. The amount and source of revenue captured a nd apportioned
pursuant to the project plan ;
2. The amount and purpose of expenditures;
3. The amount of principal and interest due on outstanding
bonded indebtedness;
4. The tax increment base and current cap tured appraised value
or the other local tax or fee collections retained by the area;
5. The captured appraised value or the other local tax or fee
collections shared by the city, town, or county and other taxing
entities, the total amount of tax increme nts received, and any
additional information necessary to demonstrate compliance with the
plan adopted by the city, town, or county;
ENR. S. B. NO. 317 Page 4
6. The name of the person who is currently in charge of the
implementation of the plan; and
7. The names of the persons w ho have disclosed an in terest as
required pursuant to Section 857 of this title and the interest
disclosed.
F. For those incentive districts in operation for nine (9)
months or more, on or before the ninetieth day following the end of
each fiscal year, th e governing body of a c ity, town, or county
shall submit a report to the Oklahoma Department of Commer ce. The
Department shall provide a copy of the report to any member of the
public upon request. The disclosure report shall include the
following information:
1. The parties receiving incent ives or exemptions;
2. A general description of the property a nd the improvements
to be made;
3. The portion and fair market value of the property to be
exempted or that portion of the local taxes to be subjec t to
incentives or to be exempted;
4. The duration of the incentives or exemptions;
5. Any additional information necessary to demonstrate
compliance with the tax incentives or exemptions;
6. The name of the person who is currently in charge of the
implementation of the plan; and
7. The names of the persons who have disclosed an interest as
required pursuant to Section 857 of this title and the interest
disclosed.
SECTION 2. This act shall become effective November 1, 2023.
ENR. S. B. NO. 317 Page 5
Passed the Senate the 7th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the 24th day of April, 2023.
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: _______________________________ __