OK
Oklahoma Senate Bill SB337

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB337 Compare Versions

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3-ENGR. H. A. to ENGR. S. B. NO. 337 Page 1 1
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28-ENGROSSED HOUSE AMENDME NT
29- TO
30-ENGROSSED SENATE BILL NO . 337 By: Bergstrom of the Senate
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+1st Session of the 59th Legislature (2023)
34+
35+COMMITTEE SUBSTITUTE
36+FOR ENGROSSED
37+SENATE BILL NO. 337 By: Bergstrom of the Senate
3138
3239 and
3340
3441 Kendrix of the House
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38-
45+COMMITTEE SUBSTITUTE
3946
4047 An Act relating to small business incubato rs;
4148 amending 74 O.S. 2021, Section s 5078 and 5079, which
4249 relate to state income tax exemption and annual
4350 reports; requiring certain period of occupancy for
4451 tenant to receive certain subsequent exemption;
4552 requiring tenant to s ubmit certain information to
4653 receive certain exemption; requiring the Oklahoma
4754 Department of Commerce to prescribe certain form;
4855 requiring certain information to be included in
4956 annual report provided by the Department; and
5057 providing an effective date.
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61+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
62+SECTION 1. AMENDATORY 74 O.S. 2021, Section 5078, is
63+amended to read as follows:
64+Section 5078. A. For a period of up to ten (10) years from the
65+date of tenant’s occupancy in an incubator, income earne d by the
66+tenant as a result of activi ties conducted as an occupant in an
67+incubator, including incom e distributed to partners, shareholders of
68+a corporation for which a Subchapter S election is in effect , and to
5469
55-
56-AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
57-and insert:
58-
59-
60-"An Act relating to small business incubators;
61-amending 74 O.S. 2021, Section s 5078 and 5079, which
62-relate to state income tax exemption and annual
63-reports; requiring certain period of occupancy for
64-tenant to receive certain subsequent exemption;
65-requiring tenant to s ubmit certain informati on to
66-receive certain exemption; requiring the Oklahoma
67-Department of Commerce to prescribe certain form;
68-requiring certain information to be included in
69-annual report provided by the Department; and
70-providing an effective date.
71-
72-
73-
74-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
75-
76-ENGR. H. A. to ENGR. S. B. NO. 337 Page 2 1
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101-SECTION 1. AMENDATORY 74 O.S. 2021, Section 5078, is
102-amended to read as follows:
103-Section 5078. A. For a period of up to ten (10) years from the
104-date of tenant’s occupancy in an incubator, income ear ned by the
105-tenant as a result of activi ties conducted as an occupant in an
106-incubator, including incom e distributed to partners, shareholders of
107-a corporation for which a Subchapter S election is in effect , and to
10896 the members of a lim ited liability company, s hall be exempt from
10997 state income tax. The If the tenant remains an occupant of an
11098 incubator for at least one (1) year, the exemption provided by th is
11199 section shall remain in effect for such the activities by such the
112100 tenant after the date the tenant is no longer an occupant in an
113101 incubator, but not to exceed a total duration o f ten (10) years for
114102 any tenant.
115103 B. For tax years ending before January 1, 2020, in order to
116104 qualify for the income tax exemption for the sixth through tenth
117105 year as authorized by this section, the tenant must make a t least
118106 seventy-five percent (75%) of i ts gross sales constituting the
119107 principal business activity of the business to buyers located
120108 outside the state or t o buyers whose principal business activity is
121109 conducted outside the state or to the federal governmen t or to
122110 buyers located within the state if the product or service is re sold
123111 to an out-of-state customer or buyer f or ultimate use. Provided, if
124112 a tenant does not achieve the qualifying percentage for any one of
113+the above tax years, the tenant shall not be disqualified for
114+subsequent tax years in which the qualifying percenta ge is achieved.
115+C. For tax year 2024 and subsequent tax years, following the
116+first tax year a tenant is provided the exemption pursuant to
117+subsection A of this section, in order to continue to qualify for
118+the exemption, the tenant shall submit information on a form
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126-ENGR. H. A. to ENGR. S. B. NO. 337 Page 3 1
120+SB337 HFLR Page 3
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151-the above tax years, the tenant shall not be disqualified for
152-subsequent tax years in which the qualifying percenta ge is achieved.
153-C. For tax year 2024 and subsequent tax years, following the
154-first tax year a tenant is provided the exemption pursuant to
155-subsection A of this section, in order to continue to qualify for
156-the exemption, the tenant shall submit information on a form
157146 prescribed by the Oklahoma Department of Commerce which shall
158147 include but not be limited to the following:
159148 1. Employment levels, including full-time-equivalent levels and
160149 the ratio of part-time employees to full-time employees;
161150 2. Interns employed;
162151 3. Payments to subcontractors and th eir purpose;
163152 4. Estimated gross annual revenues;
164153 5. Estimated annual costs for property and services;
165154 6. A statement of any additional financial assistance,
166155 incentives, credits, or exemptions provided by this s tate or any
167156 political subdivision of this s tate; and
168157 7. A statement of any taxable income exempted pur suant to this
169158 subsection in the previous tax year.
170159 The Oklahoma Tax Commission sha ll promulgate rules to implement
171160 the provisions of this section.
172161 SECTION 2. AMENDATORY 7 4 O.S. 2021, Section 5079, is
173162 amended to read as follows:
163+Section 5079. On or before December 31 of each year, the
164+Director of the Oklahoma D epartment of Commerce shall provide a
165+report to both the Speaker of the House of Representatives and the
166+President Pro Tempore of the Senate whic h shall include, but not be
167+limited to:
168+1. The number of applications for incubators submitted;
169+2. The number of applications for incubators approve d;
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171+SB337 HFLR Page 4
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200-Section 5079. On or before December 31 of each year, the
201-Director of the Oklahoma D epartment of Commerce shall provide a
202-report to both the Speaker of the House of Representatives and the
203-President Pro Tempore of the Senate whic h shall include, but not be
204-limited to:
205-1. The number of applications for incubators submitted;
206-2. The number of applications for incubators approve d;
207197 3. The number of incubators created under this act;
208198 4. The number of tenants occupying each incubator ;
209199 5. The number of jobs provided by each incubator and tenants of
210200 each incubator; and
211201 6. The number of firms still operating in the state after
212202 ending their tenancy in incubators a nd the number of jobs they have
213203 provided; and
214204 7. Beginning calendar year 2025, t he total taxable income
215205 exempted pursuant to subsection A of Section 5078 of this title for
216206 the previous tax year.
217-SECTION 3. This act shall become effective November 1, 2023."
207+SECTION 3. This act shall become effective November 1, 2023.
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244-Passed the House of Representatives the 17th day of April, 2023.
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248-
249-
250-Presiding Officer of the House of
251- Representatives
252-
253-
254-Passed the Senate the ____ day of _______ ___, 2023.
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260-Presiding Officer of the Senate
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288-ENGROSSED SENATE
289-BILL NO. 337 By: Bergstrom of the Senate
290-
291- and
292-
293- Kendrix of the House
294-
295-
296-
297-
298-An Act relating to small business incubato rs;
299-amending 74 O.S. 2021, Section s 5078 and 5079, which
300-relate to state income tax exemption and annual
301-reports; requiring certain period of occupancy for
302-tenant to receive certain subsequent exemption;
303-requiring tenant to submit certain information to
304-receive certain exemption; requiring the Oklahoma
305-Department of Commerce to prescribe certain form;
306-requiring certain information to be included in
307-annual report provided by the Department; and
308-providing an effective date.
309-
310-
311-
312-
313-
314-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
315-SECTION 4. AMENDATORY 74 O.S. 2021, Section 5078, is
316-amended to read as follows:
317-Section 5078. A. For a period of up to ten (10) years from the
318-date of tenant’s occupancy in an incubator, income earne d by the
319-tenant as a result of activi ties conducted as an occupant in an
320-incubator, including incom e distributed to partners, shareholders of
321-a corporation for which a Subchapter S election is in effect , and to
322-the members of a limited liability company, s hall be exempt from
323-state income tax. The If the tenant remains an occupant of an
324-incubator for at least five (5) years, the exemption provided by
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351-this section shall remain in effect for such the activities by such
352-the tenant after the date the tena nt is no longer an occupant in an
353-incubator, but not to exceed a total duration o f ten (10) years for
354-any tenant.
355-B. For tax years ending before January 1, 2020, in order to
356-qualify for the income tax exemption for the sixth through tenth
357-year as authorized by this section, the tenant must make a t least
358-seventy-five percent (75%) of i ts gross sales constituting the
359-principal business activity of the business to buyers located
360-outside the state or t o buyers whose principal business activity is
361-conducted outside the state or to the federal governmen t or to
362-buyers located within the state if the product or service is re sold
363-to an out-of-state customer or buyer for ultimate use. Provided, if
364-a tenant does not achieve the qualifying percentage for any one of
365-the above tax years, the tenant shall not be disqualified for
366-subsequent tax years in which the qualifying percenta ge is achieved.
367-C. For tax year 2024 and subsequent tax years, f ollowing the
368-first tax year a tenant is provided the exemption pursuant to
369-subsection A of this section, in or der to continue to qualify for
370-the exemption, the tenant shall submit information on a form
371-prescribed by the Oklahoma Department of Commerce which shall
372-include but not be limited to the following:
373-1. Employment levels, including full-time-equivalent levels and
374-the ratio of part-time employees to full-time employees;
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401-2. Interns employed;
402-3. Payments to subcontractors and their purpose;
403-4. Estimated gross annual revenues;
404-5. Estimated annual costs for property and services;
405-6. A statement of any additional financial assistance,
406-incentives, credits, or exemptions provided by this s tate or any
407-political subdivision of this state; and
408-7. A statement of any taxable income exempted pur suant to this
409-subsection in the previous tax year.
410-The Oklahoma Tax Commission sha ll promulgate rules to implement
411-the provisions of this section.
412-SECTION 5. AMENDATORY 74 O.S. 2021, Section 5079, is
413-amended to read as follows:
414-Section 5079. On or before December 31 of each year, the
415-Director of the Oklahoma D epartment of Commerce shall provide a
416-report to both the Speaker of the House of Representatives and the
417-President Pro Tempore of the Senate whic h shall include, but not be
418-limited to:
419-1. The number of application s for incubators submitted;
420-2. The number of applications for incubators approve d;
421-3. The number of incubators created under this act;
422-4. The number of tenants occupying each incubator ;
423-5. The number of jobs provided by each incubator and tenants of
424-each incubator; and
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451-6. The number of firms still operating in the state after
452-ending their tenancy in incubators a nd the number of jobs they have
453-provided; and
454-7. Beginning calendar year 2025, t he total taxable income
455-exempted pursuant to subsection A of S ection 5078 of this title for
456-the previous tax year.
457-SECTION 6. This act shall become effective November 1, 2023.
458-Passed the Senate the 21st day of March, 2023.
459-
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462- Presiding Officer of the Senate
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465-Passed the House of Representatives the ____ day of __________,
466-2023.
467-
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470- Presiding Officer of the House
471- of Representatives
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209+COMMITTEE REPORT BY: COMMITTEE ON BUSINESS AND COMMERCE, dated
210+04/05/2023 - DO PASS, As Amended.