SB 249 — Oklahoma Tourism Development Act; increasing cumulative inducement per year. Effective date.

ENGROSSEDAn Act ENROLLED SENATE BILL NO.

Thompson of the Senate and Townley of the House 5 An Act relating to the Oklahoma Tourism Development Act;

BESUBJECT: IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

Tourism development BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

2023 (68 O.S.

An approved company whose agreement provides that it shall expend approved costs of more than Five Hundred Thousand Dollars ENGR.($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 certifies to the Tax Commission that it has expended at least the minimum amount in approved costs, and the Executive Director certifies that the approved company is in compliance with the Oklahoma Tourism Development Act.

S.

B.

NO.

249 Page 1 ($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 certifies to the Tax Commission that it has expended at least the minimum amount in approved costs, and the Executive Director certifies that the approved company is in compliance with the Oklahoma Tourism Development Act.

The ENGR.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 the effective date of the agreement.

S.

B.

NO.

249 Page 2 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 the effective date of the agreement.

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 shallENR. not promulgate any rules which unduly restrict or hinder the pass-through of such sales tax credit to an Entertainment District Tenant Party.

ENGR.

249 Page 32 Anshall approvednot companypromulgate whoseany agreementrules provideswhich thatunduly itrestrict shallor expendhinder approvedthe costspass-through in excess of Onesuch Million Dollars ($1,000,000.00) shall be entitled to a sales tax credit if the company certifies to thean TaxEntertainment CommissionDistrict thatTenant itParty. 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 the Oklahoma Tourism Development Act.

An approved company whose agreement provides that it shall expend approved costs in excess of One Million Dollars ($1,000,000.00) shall be entitled to a sales tax credit if the company certifies to the Tax Commission 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 the Oklahoma Tourism Development Act.

The incentive payment shall be in the amount of up to twenty-five percent (25%) of the approved costs but limited to the percent of the approved costs that will result in the project being revenue-neutral to this state as determined by the Oklahoma ENGR.Department of Commerce;

S.

B.

NO.

249 Page 4 Department of Commerce;

As soon as practicable after the end of each calendar year during the term of the agreement, the approved company shall file a claim forENR. the incentive payment with the Tax Commission, and the Tax Commission shall be responsible for ensuring that the amount of the incentive payment claimed does not exceed the increased state sales tax liability of the approved company and the Entertainment District Tenant Parties that has been actually received by the Tax Commission, which may include accessing the Oklahoma sales tax returns of the Entertainment District Tenant Parties as permitted by this section.

ENGR.

249 Page 53 Thefor cumulativethe inducementsincentive providedpayment pursuantwith to the OklahomaTax TourismCommission, Developmentand Actthe Tax Commission shall be responsible for ensuring that the amount of the incentive payment claimed does not exceed Thirtythe Millionincreased Dollarsstate ($30,000,000.00)sales pertax year.liability of the approved company and the Entertainment District Tenant Parties that has been actually received by the Tax Commission, which may include accessing the Oklahoma sales tax returns of the Entertainment District Tenant Parties as permitted by this section.

The cumulative inducements provided pursuant to the Oklahoma Tourism Development Act shall not exceed Thirty Million Dollars ($30,000,000.00) per year.

or ENGR.3.

A change in business ownership or business structure resulting from a merger or acquisition.

C.

A sales tax credit allowed pursuant to the provisions of this section may be used to offset a portion of the reported state ENR.

249 Page 64 3.sales tax liability of the approved company or an Entertainment District Tenant Party, if applicable, for all sales tax reporting periods following the issuance of the credit memorandum subject to the following limitations:

A change in business ownership or business structure resulting from a merger or acquisition.

C.

A sales tax credit allowed pursuant to the provisions of this section may be used to offset a portion of the reported state sales tax liability of the approved company or an Entertainment District Tenant Party, if applicable, for all sales tax reporting periods following the issuance of the credit memorandum subject to the following limitations:

and ENGR.3.

S.

B.

NO.