Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB249 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	~~SB249 HFLR Page 1~~
3		-	~~BOLD FACE denotes Committee Amendments.~~ 1
	2	+
	3	+	ENGR. S. B. NO. 249 Page 1 1
4	4		2
5	5		3
6	6		4
7	7		5
8	8		6
9	9		7
10	10		8
11	11		9
12	12		10
13	13		11
14	14		12
15	15		13
16	16		14
17	17		15
18	18		16
19	19		17
20	20		18
21	21		19
22	22		20
23	23		21
24	24		22
25	25		23
26	26		24
27		-
28		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
29		-
30		-	STATE OF OKLAHOMA
31		-
32		-	1st Session of the 60th Legislature (2025)
33	27
34	28		ENGROSSED SENATE
35	29		BILL NO. 249 By: Thompson of the Senate
36	30
37	31		and
38	32
39	33		Townley of the House
40	34
41	35
42	36
43	37
44	38		An Act relating to the Oklahoma Tourism Development
45	39		Act; amending 68 O.S. 2021, Section 2397, as amended
46	40		by Section 2, Chapter 30, 1st Extraordinary Session,
47	41		O.S.L. 2023 (68 O.S. Supp. 2024, Section 2397), which
48	42		relates to inducement claims; extending sunset; and
49	43		providing an effective date .
50	44
51	45
52	46
53	47
54	48		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	49		SECTION 1. AMENDATORY 68 O.S. 2021, Sectio n 2397, as
56	50		amended by Section 2, Chapter 30, 1st Extraordinary Session, O.S.L.
57	51		2023 (68 O.S. Supp. 2024, Section 2397), is amended to read as
58	52		follows:
59	53		Section 2397. A. Upon receiving notification from the
60	54		Executive Director of the Oklahoma Department of Commerce that an
61	55		approved company has entered into a tourism project agreement and is
62	56		entitled to the inducements provided by the Oklahoma Tourism
63	57		Development Act, the Oklahoma Tax Commission shall provide the
64		-	SB249 HFLR Page 2
65		-	BOLD FACE denotes Committee Amendments. 1
	58	+	approved company with forms and instructions a s necessary to claim
	59	+	or receive or pass-through those inducements.
	60	+	B. An approved company whose agreement provides that it shall
	61	+	expend approved costs of more than Five Hundred Thousand Dollars
	62	+
	63	+	ENGR. S. B. NO. 249 Page 2 1
66	64		2
67	65		3
68	66		4
69	67		5
70	68		6
71	69		7
72	70		8
73	71		9
74	72		10
75	73		11
76	74		12
77	75		13
78	76		14
79	77		15
80	78		16
81	79		17
82	80		18
83	81		19
84	82		20
85	83		21
86	84		22
87	85		23
88	86		24
89	87
90		-	approved company with forms and instructions a s necessary to claim
91		-	or receive or pass-through those inducements.
92		-	B. An approved company whose agreement provides that it shall
93		-	expend approved costs of more than Five Hundred Thousand Dollars
94	88		($500,000.00) for a tourism attraction project but less than One
95	89		Million Dollars ($1,000,000.00) shall be entitled to a sales tax
96	90		credit if the company certifies to the Tax Commission that i t has
97	91		expended at least the minimum amount in approved costs, and the
98	92		Executive Director certifies that the approved company is in
99	93		compliance with the Oklahoma Tourism Development Act. The Tax
100	94		Commission shall then issue a tax credit memorandum to the approved
101	95		company granting a sales tax credit in the amount of up to ten
102	96		percent (10%) of the approved costs, but limited to the pe rcent of
103	97		the approved costs that will result in the project being revenue -
104	98		neutral to this state as determined by the Oklahoma Dep artment of
105	99		Commerce. Subsequent requests for credit for additional certified
106	100		approved costs in excess of the minimum amount fo r each project as
107	101		listed in this subsection but less than One Million Dollars
108	102		($1,000,000.00) shall result in a sales tax credit in the amount of
109	103		up to ten percent (10%) of the approved costs, but limited to the
110	104		percent of the approved costs that will resu lt in the project being
111	105		revenue-neutral to this state as determined by the Oklahoma
112	106		Department of Commerce. Sales tax credits al lowed pursuant to the
113	107		provisions of the Oklahoma Tourism Development Act shall not be
114		-	SB249 HFLR Page 3
115		-	BOLD FACE denotes Committee Amendments. 1
	108	+	transferable or assignable; provided that , with respect to a tourism
	109	+	attraction project that is an Entertainment District, the approved
	110	+	company can elect to pass -through all or a portion of the sales tax
	111	+	credit to one or more Entertainment District Tenant Parties. The
	112	+
	113	+	ENGR. S. B. NO. 249 Page 3 1
116	114		2
117	115		3
118	116		4
119	117		5
120	118		6
121	119		7
122	120		8
123	121		9
124	122		10
125	123		11
126	124		12
127	125		13
128	126		14
129	127		15
130	128		16
131	129		17
132	130		18
133	131		19
134	132		20
135	133		21
136	134		22
137	135		23
138	136		24
139	137
140		-	transferable or assignable; provided that , with respect to a tourism
141		-	attraction project that is an Entertainment District, the approved
142		-	company can elect to pass -through all or a portion of th e sales tax
143		-	credit to one or more Entertainment District Tenant Parties. The
144	138		approved company and the En tertainment District Tenant Party shall
145	139		jointly file a copy of the written credit pass -through agreement
146	140		with the Oklahoma Tax Co mmission within thirty (30) days of the
147	141		effective date of the agreement. Such filing of the agreement with
148	142		the Oklahoma Tax Commission shall perfect such agreement. The
149	143		written agreement shall contain the name, address and taxpayer
150	144		identification number of the parties to the agreement, the amount of
151	145		credit being passed-through, the month and year the credit was
152	146		originally allowed to the approved company, the month and tax year
153	147		or years for which the credit may be claimed, and a representation
154	148		by the approved company that the approved company has neither
155	149		claimed for its own behalf nor conveyed such credits to any other
156	150		Entertainment District Tenant Party. The Tax Commission shall
157	151		develop a standard form for use by an approved company and an
158	152		Entertainment District Tenant Party demonstrating eligibility for
159	153		the Entertainment District Tenant Party to utilize the sales tax
160	154		credit. The Tax Commission shall develop a system to record and
161	155		track the pass-through of the sales tax credit and certify the
162	156		ownership of the sales tax credit and may promulgate rules to permit
163	157		verification of the validity and timeliness of a sales tax credit
164		-	SB249 HFLR Page 4
165		-	BOLD FACE denotes Committee Amendments. 1
	158	+	claimed upon a sales tax return pursuant to this subsection but
	159	+	shall not promulgate any rules which unduly restrict or hinder the
	160	+	pass-through of such sales tax credit to an Entertainment District
	161	+	Tenant Party.
	162	+
	163	+	ENGR. S. B. NO. 249 Page 4 1
166	164		2
167	165		3
168	166		4
169	167		5
170	168		6
171	169		7
172	170		8
173	171		9
174	172		10
175	173		11
176	174		12
177	175		13
178	176		14
179	177		15
180	178		16
181	179		17
182	180		18
183	181		19
184	182		20
185	183		21
186	184		22
187	185		23
188	186		24
189	187
190		-	claimed upon a sales tax return pursuant to this subsection but
191		-	shall not promulgate any rules which unduly restrict or hinder the
192		-	pass-through of such sales tax credit to an Entertainment District
193		-	Tenant Party.
194	188		An approved company whose agreement provides tha t it shall
195	189		expend approved costs in excess of One Million Dollars
196	190		($1,000,000.00) shall be entitled to a sales tax credit if the
197	191		company certifies to the Tax Commission that it has expended at
198	192		least One Million Dollars ($1,000,000.00) in approved costs and the
199	193		Executive Director certifies that the approved company is in
200	194		compliance with the Oklahoma Tourism Development Act. The Tax
201	195		Commission shall then issue a tax credit memorandum to the approved
202	196		company granting a sales tax credit in the amount of up to twenty-
203	197		five percent (25%) of the approved costs, but limited to the percent
204	198		of the approved costs that will result in the project being revenue-
205	199		neutral to this state as determined by the Oklahoma Department of
206	200		Commerce. The credit on all subsequent additi onal certified
207	201		approved costs shall be in the amount of up to twenty -five percent
208	202		(25%) of the costs, but limited to the percent of the approved costs
209	203		that will result in the project being revenue -neutral to this state
210	204		as determined by the Oklahoma Departm ent of Commerce. For a tourism
211	205		attraction project that is an Entertainment District, an approved
212	206		company may elect to receive an incentive payment based on sales tax
213	207		collections of Entertainment District Tenant Parties rather than a
214		-	SB249 HFLR Page 5
215		-	BOLD FACE denotes Committee Amendments. 1
	208	+	sales tax credit. The incentive payment shall be in the amount of
	209	+	up to twenty-five percent (25%) of the approved costs but limited to
	210	+	the percent of the approved costs that will result in the project
	211	+	being revenue-neutral to this state as determined by the Oklahoma
	212	+
	213	+	ENGR. S. B. NO. 249 Page 5 1
216	214		2
217	215		3
218	216		4
219	217		5
220	218		6
221	219		7
222	220		8
223	221		9
224	222		10
225	223		11
226	224		12
227	225		13
228	226		14
229	227		15
230	228		16
231	229		17
232	230		18
233	231		19
234	232		20
235	233		21
236	234		22
237	235		23
238	236		24
239	237
240		-	sales tax credit. The incentive payment shall be in the amount of
241		-	up to twenty-five percent (25%) of the approved costs but limited to
242		-	the percent of the approved costs tha t will result in the project
243		-	being revenue-neutral to this state as determined by the Oklahoma
244	238		Department of Commerce; provided that, (A) in no event shall the
245	239		incentive payments exceed the increased state sales tax liability of
246	240		the approved company and the Entertainment District Tenant Parties
247	241		that is actually received by the Tax Commission, and (B) the
248	242		approved company shall be entitled to receive only ten percent (10%)
249	243		of the incentive payment amount during each calendar year. The Tax
250	244		Commission shall issue an incentive payment memorandum to the
251	245		approved company granting a right to receive an incentive pay ment
252	246		from the Tax Commission in the amount of up to twenty -five percent
253	247		(25%) of the approved costs but limited to the percent of the
254	248		approved costs that will result in the project being revenue -neutral
255	249		to this state as determined by the Oklahoma Departmen t of Commerce.
256	250		As soon as practicable after the end of each calendar year during
257	251		the term of the agreement, the approved company shall file a claim
258	252		for the incentive payment with the Tax Commission, and the Tax
259	253		Commission shall be responsible for ensuring that the amount of the
260	254		incentive payment claimed does not exceed the increased state sales
261	255		tax liability of the approved company and the Entertainment District
262	256		Tenant Parties that has been actually received by the Tax
263	257		Commission, which may include accessi ng the Oklahoma sales tax
264		-	SB249 HFLR Page 6
265		-	BOLD FACE denotes Committee Amendments. 1
	258	+	returns of the Entertainment District Tenant Parties as permitted by
	259	+	this section.
	260	+
	261	+	ENGR. S. B. NO. 249 Page 6 1
266	262		2
267	263		3
268	264		4
269	265		5
270	266		6
271	267		7
272	268		8
273	269		9
274	270		10
275	271		11
276	272		12
277	273		13
278	274		14
279	275		15
280	276		16
281	277		17
282	278		18
283	279		19
284	280		20
285	281		21
286	282		22
287	283		23
288	284		24
289	285
290		-	returns of the Entertainment District Tenant Parties as permitted by
291		-	this section.
292	286		The cumulative inducements provided pursuant to the Oklahoma
293	287		Tourism Development Act shall not exceed Thirty Million Dollars
294	288		($30,000,000.00) per year.
295	289		The Tax Commission shall require proof of expenditures prior to
296	290		issuing a tax credit memorandum or incentive payment memoran dum to
297	291		the approved company which may be satisfied by a report from an
298	292		independent certified public accountant. Additional cre dit
299	293		memoranda or incentive memoranda may be issued as the approved
300	294		company certifies additional expenditures of approved costs.
301	295		No tax credit memorandum or incentive payment memorandum shall
302	296		be issued for any approved costs expended after the expiration of
303	297		three (3) years from the date the agreement was signed by the
304	298		Executive Director and the approved company. However, the Executi ve
305	299		Director, with the advice and consent of the Tax Commission, may
306	300		authorize inducements for approved costs expended up to fiv e (5)
307	301		years from the date the agreement was signed if the Executive
308	302		Director determines that the failure to complete the tourism
309	303		attraction project within three (3) years resulted from:
310	304		1. Unanticipated and unavoidable delay in the construction of
311	305		the tourism attraction;
312		-	SB249 HFLR Page 7
313		-	BOLD FACE denotes Committee Amendments. 1
	306	+	2. An original completion date for the tourism attraction, as
	307	+	originally planned, which will be more than three (3) years from the
	308	+	date construction began; or
	309	+
	310	+	ENGR. S. B. NO. 249 Page 7 1
314	311		2
315	312		3
316	313		4
317	314		5
318	315		6
319	316		7
320	317		8
321	318		9
322	319		10
323	320		11
324	321		12
325	322		13
326	323		14
327	324		15
328	325		16
329	326		17
330	327		18
331	328		19
332	329		20
333	330		21
334	331		22
335	332		23
336	333		24
337	334
338		-	2. An original completion date for the tourism attraction, as
339		-	originally planned, which will be more than three (3) years from the
340		-	date construction began; or
341	335		3. A change in business ownership or business structure
342	336		resulting from a merge r or acquisition.
343	337		C. A sales tax credit allowed pursuant to the provisions of
344	338		this section may be used to offset a portion of the reported state
345	339		sales tax liability of the approved company or an Entertainment
346	340		District Tenant Party, if applicable, for all sales tax reporting
347	341		periods following the issuance of the credit memorandum subject to
348	342		the following limitations:
349	343		1. Only increased state sales tax liability may be offset by
350	344		the issued credit;
351	345		2. An approved company whose agreement provides that it shal l
352	346		expend approved costs in excess of One Million Dollars
353	347		($1,000,000.00) or an Entertainment District Party, if applicable,
354	348		shall be entitled to use only ten percent (10%) of the amount of
355	349		each issued credit to offset increased state sales tax liability
356	350		during each calendar year, plus the amount of any unused credit
357	351		carried forward from a prior calendar year, and an approved company
358	352		whose agreement provides that it shall expend approved costs of more
359	353		than the minimum amount for each project as listed in thi s
360	354		subsection but less than One Million Dollars ($1,000,000.00) shall
361	355		be entitled to use only twenty percent (20%) of the amount of each
362		-	SB249 HFLR Page 8
363		-	BOLD FACE denotes Committee Amendments. 1
	356	+	issued credit to offset increased state sales tax liability during
	357	+	each calendar year, plus the amount of any unused cre dit carried
	358	+	forward from a prior calendar year; and
	359	+
	360	+	ENGR. S. B. NO. 249 Page 8 1
364	361		2
365	362		3
366	363		4
367	364		5
368	365		6
369	366		7
370	367		8
371	368		9
372	369		10
373	370		11
374	371		12
375	372		13
376	373		14
377	374		15
378	375		16
379	376		17
380	377		18
381	378		19
382	379		20
383	380		21
384	381		22
385	382		23
386	383		24
387	384
388		-	issued credit to offset increased state sales tax liability during
389		-	each calendar year, plus the amount of any unused credit carried
390		-	forward from a prior calendar year; and
391	385		3. All issued credit memoranda or incentive payment memoranda
392	386		shall expire at the end of the month following the expiration of the
393	387		agreement as provided in Section 2396 of this title.
394	388		The approved company or an Entertainment District Tenant Party,
395	389		if applicable, shall have no obligation to refund or otherwise
396	390		return any amount of this inducement to the person from whom the
397	391		sales tax was collected.
398	392		D. The Tax Commission shall promulgate rules as are neces sary
399	393		for the proper administration of the Oklahoma Tourism Development
400	394		Act. The Tax Commission may also develop forms and instru ctions as
401	395		necessary for an approved company or Entertainment District Tenant
402	396		Party, if applicable, to claim or receive or pass -through the
403	397		inducements provided by the Oklahoma Tourism Development Act.
404	398		E. The Tax Commission shall have the authority to obtain any
405	399		information necessary from or regarding the approved company or an
406	400		Entertainment District Tenant Party, if applicable, a nd the
407	401		Executive Director to verify that approved companies or an
408	402		Entertainment District Tenant Party, if applicable, have receiv ed
409	403		the proper amounts of inducements as authorized by the Oklahoma
410	404		Tourism Development Act. The Oklahoma Tax Commission shall demand
411		-	SB249 HFLR Page 9
412		-	BOLD FACE denotes Committee Amendments. 1
	405	+	the repayment of any inducements taken or received in excess of the
	406	+	inducements allowed by the Oklahoma Tourism Development Act.
	407	+	F. No sales tax credit or incentive payment right authorized by
	408	+	this section shall be granted on or after January 1, 2026 2032.
	409	+
	410	+	ENGR. S. B. NO. 249 Page 9 1
413	411		2
414	412		3
415	413		4
416	414		5
417	415		6
418	416		7
419	417		8
420	418		9
421	419		10
422	420		11
423	421		12
424	422		13
425	423		14
426	424		15
427	425		16
428	426		17
429	427		18
430	428		19
431	429		20
432	430		21
433	431		22
434	432		23
435	433		24
436	434
437		-	the repayment of any inducements taken or received in excess of the
438		-	inducements allowed by the Oklahoma Tourism Development Act.
439		-	F. No sales tax credit or incentive payment right authorized by
440		-	this section shall be granted on or after January 1, 2026 2032.
441	435		Notwithstanding the foregoing, an approved company that has entered
442	436		into a tourism attraction project agreement with th e Oklahoma
443	437		Department of Commerce pursuant to Section 2396 of this title prior
444	438		to January 1, 2026 2032, shall continue to be en titled to claim or
445	439		receive any inducements authorized by this section as contemplated
446	440		by the tourism project agreement.
447	441		G. All currently approved tourism project agreements executed
448	442		by the Oklahoma Tourism and Recreation Department are hereby
449	443		transferred to the Oklahoma Department of Commerce upon November 1,
450	444		2021.
451	445		H. On November 1, 2021, all administrative rules promulgated by
452	446		the Oklahoma Tourism and Recreation Department regarding the
453	447		Oklahoma Tourism Development Act shall be transferred to and become
454	448		a part of the administrative rules of the Oklahoma Department of
455	449		Commerce. The Office of Administrative Rules in the Office of the
456	450		Secretary of State shall provide adequate notice in the Oklahoma
457	451		Register of the transferred rules and shall place the trans ferred
458	452		rules under the Administrative Code section of the Oklahoma
459	453		Department of Commerce. On November 1, 2021, any amendment, r epeal,
460	454		or addition to the transferred rules shall be under the jurisdiction
461		-	SB249 HFLR Page 10
462		-	BOLD FACE denotes Committee Amendments. 1
	455	+	of the Oklahoma Department of Commerce, who shall h ave the authority
	456	+	to enact rules in order to carry out the provisions of the Oklahoma
	457	+	Tourism Development Act.
	458	+	SECTION 2. This act shall become effective November 1, 2025.
	459	+
	460	+	ENGR. S. B. NO. 249 Page 10 1
463	461		2
464	462		3
465	463		4
466	464		5
467	465		6
468	466		7
469	467		8
470	468		9
471	469		10
472	470		11
473	471		12
474	472		13
475	473		14
476	474		15
477	475		16
478	476		17
479	477		18
480	478		19
481	479		20
482	480		21
483	481		22
484	482		23
485	483		24
486	484
487		-	of the Oklahoma Department of Commerce, who shall h ave the authority
488		-	to enact rules in order to carry out the provisions of the Oklahoma
489		-	Tourism Development Act.
490		-	SECTION 2. This act shall become effective November 1, 2025.
	485	+	Passed the Senate the 26th day of March, 2025.
491	486
492		-	COMMITTEE REPORT BY: COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
493		-	WORKFORCE AND TOURISM, dated 04/16/2025 – DO PASS.
	487	+
	488	+
	489	+	Presiding Officer of the Senate
	490	+
	491	+
	492	+	Passed the House of Representatives the ____ day of __________,
	493	+	2025.
	494	+
	495	+
	496	+
	497	+	Presiding Officer of the House
	498	+	of Representatives
	499	+