2018 Oklahoma Statutes
Title 68. Revenue and Taxation
§68-2397. Inducement claim forms - Sales tax credits.

A. Upon receiving notification from the Executive Director of the Oklahoma Tourism and Recreation Department that an approved company has entered into a tourism project agreement and is entitled to the inducements provided by the Oklahoma Tourism Development Act, the Oklahoma Tax Commission shall provide the approved company with forms and instructions as necessary to claim those inducements.

B. An approved company whose agreement provides that it shall expend approved costs of more than Five Hundred Thousand Dollars ($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 this act. The Tax Commission shall then issue a tax credit memorandum to the approved company granting a sales tax credit in the amount of up to ten percent (10%) of the approved costs, but limited to the percent of the approved costs that will result in the project being revenue-neutral to the State of Oklahoma as determined by the Tax Commission. Subsequent requests for credit for additional certified approved costs in excess of the minimum amount for each project as listed in this subsection but less than One Million Dollars ($1,000,000.00) shall result in a sales tax credit in the amount of up to ten percent (10%) of the approved costs, but limited to the percent of the approved costs that will result in the project being revenue-neutral to the State of Oklahoma as determined by the Tax Commission. Sales tax credits allowed pursuant to the provisions of this act shall not be transferable or assignable.

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 this act. The Tax Commission shall then issue a tax credit memorandum to the approved company granting a sales tax credit 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 the State of Oklahoma as determined by the Tax Commission. The credit on all subsequent additional certified approved costs shall be in the amount of up to twenty-five percent (25%) of the costs, but limited to the percent of the approved costs that will result in the project being revenue-neutral to the State of Oklahoma as determined by the Tax Commission. The cumulative credits provided pursuant to this act shall not exceed Fifteen Million Dollars ($15,000,000.00) per year.

The Tax Commission shall require proof of expenditures prior to issuing a tax credit memorandum to the approved company which may be satisfied by a report from an independent certified public accountant. Additional credit memoranda may be issued as the approved company certifies additional expenditures of approved costs.

No tax credit memorandum shall be issued for any approved costs expended after the expiration of two (2) years from the date the agreement was signed by the Executive Director and the approved company. However, the Executive Director, with the advice and consent of the Tax Commission, may authorize tax credits for approved costs expended up to four (4) years from the date the agreement was signed if the Executive Director determines that the failure to complete the tourism attraction project within two (2) years resulted from:

1. Unanticipated and unavoidable delay in the construction of the tourism attraction;

2. An original completion date for the tourism attraction, as originally planned, which will be more than two (2) years from the date construction began; or

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 sales tax liability of the approved company for all sales tax reporting periods following the issuance of the credit memorandum subject to the following limitations:

1. Only increased state sales tax liability may be offset by the issued credit;

2. 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 use only ten percent (10%) of the amount of each issued credit to offset increased state sales tax liability during each calendar year, plus the amount of any unused credit carried forward from a prior calendar year, and an approved company whose agreement provides that it shall expend approved costs of more than the minimum amount for each project as listed in this subsection but less than One Million Dollars ($1,000,000.00) shall be entitled to use only twenty percent (20%) of the amount of each issued credit to offset increased state sales tax liability during each calendar year, plus the amount of any unused credit carried forward from a prior calendar year; and

3. All issued credit memoranda shall expire at the end of the month following the expiration of the agreement as provided in Section 6 of this act.

The approved company shall have no obligation to refund or otherwise return any amount of this credit to the person from whom the sales tax was collected.

D. The Tax Commission shall promulgate rules as are necessary for the proper administration of the Oklahoma Tourism Development Act. The Tax Commission may also develop forms and instructions as necessary for an approved company to claim the sales tax credit provided by this act.

E. The Tax Commission shall have the authority to obtain any information necessary from the approved company and the Executive Director to verify that approved companies have received the proper amounts of tax credits as authorized by this act. The Oklahoma Tax Commission shall demand the repayment of any credits taken in excess of the credit allowed by this act.

F. No sales tax credit authorized by this section shall be granted on or after January 1, 2021. Notwithstanding the foregoing, an approved company that has entered into a tourism attraction project agreement with the Oklahoma Tourism and Recreation Department pursuant to Section 6 of this act prior to January 1, 2021, shall continue to be entitled to claim any sales tax credit authorized by this section as contemplated by the tourism project agreement.

Added by Laws 2017, c. 196, § 7, eff. Nov. 1, 2017.