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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1826 By: Reinhardt
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6 AS INTRODUCED
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7 An Act relating to development incentives; amending
7 62 O.S. 2021, Sections 842, as last amended by
8 Section 1, Chapter 203, O.S.L. 2025, and 843 (62 O.S.
8 Supp. 2025, Section 842), which relate to the
9 Oklahoma Local Development and Enterprise Zone
9 Incentive Leverage Act; eliminating sunset date
10 provisions; updating statutory reference; updating
10 statutory language; and providing an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 62 O.S. 2021, Section 842, as last
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15 amended by Section 1, Chapter 203, O.S.L. 2025 (62 O.S. Supp. 2025,
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16 Section 842), is amended to read as follows:
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17 Section 842. A. An enterprise which locates its facility
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18 within an enterprise zone or which expands its existing facility
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19 after the designation of an enterprise zone as authorized by law and
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20 which is located in an incentive district as authorized pursuant to
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21 the provisions of the Local Development Act shall be eligible for
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22 the state local enterprise matching payment authorized pursuant to
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23 subsection A of Section 844 of this title.
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1 B. 1. A local governmental entity which approves a project
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2 plan pursuant to the provisions of the Local Development Act within
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3 an enterprise zone or in support of a major tourism destination
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4 project which the local governmental entity determines is likely to
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5 significantly benefit contiguous or nearby enterprise zone census
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6 tracts shall be eligible for the state local government matching
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7 payment authorized pursuant to subsection D of Section 844 of this
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8 title; provided, no state local government matching payment shall be
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9 made for project costs in relation to:
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10 a. any gambling establishment, or
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11 b. any development within a project plan that provides
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12 for more than fifty percent (50%) of the net leasable
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13 space of such development to be used for retail
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14 purposes except for such portions of a development
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15 which includes grocery or specialty food store
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16 enterprises defined under NAICS Manual Industry Group
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17 No. 4451 or 4452 that provide healthy nutrition
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18 options including fresh fruits, vegetables, whole
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19 grains, seeds, nuts and healthy protein and that
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20 improve access within one-half (1/2) mile of any low
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21 income and low access geographies identified by the
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22 United States Department of Agriculture.
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1 State local government matching payments shall not be used to
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2 supplant local revenue currently being expended within the increment
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3 district boundaries.
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4 2. In order to be eligible for state local government matching
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5 payments for approving a project within an enterprise zone, a local
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6 governmental entity shall provide to the Oklahoma Department of
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7 Commerce as part of the application provided for in subsection J of
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8 this section:
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9 a. an estimate of incremental revenues likely to be
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10 derived from the project, and
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11 b. certification that all projects described within the
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12 related project plan will generate, in the aggregate,
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13 a minimum of either One Million Dollars
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14 ($1,000,000.00) in payroll, exclusive of payroll for
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15 construction, or Five Million Dollars ($5,000,000.00)
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16 in investment.
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17 3. In order to be eligible for state local government matching
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18 payments in support of a major tourism destination project, a local
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19 governmental entity shall provide to the Oklahoma Department of
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20 Commerce as part of the application provided for in subsection K J
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21 of this section:
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22 a. an estimate of incremental revenues new to the state
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23 likely to be derived from the project,
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1 b. certification that the major tourism destination
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2 project meets the applicable criteria described in
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3 paragraph 12 of Section 841 of this title, and
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4 c. an agreement to provide payment to the Oklahoma
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5 Department of Commerce to defray the costs of the
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6 study required by paragraph 4 of this subsection.
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7 4. To determine if a project qualifies as a major tourism
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8 destination project pursuant to subparagraph b of paragraph 12 of
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9 Section 841 of this title and to assist in other required
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10 determinations, the Oklahoma Department of Commerce shall cause a
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11 market and feasibility study to be conducted by an independent
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12 consultant with experience in the conduct of such studies. Upon
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13 review of the feasibility report, the Oklahoma Department of
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14 Commerce shall make its finding as to the reasonable probability
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15 that the proposed project is a major tourism destination project as
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16 provided in subparagraph b of paragraph 12 of Section 841 of this
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17 title.
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18 C. For purposes of the Oklahoma Local Development and
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19 Enterprise Zone Incentive Leverage Act, an enterprise engaged in a
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20 retail activity, where otherwise prohibited by the Oklahoma
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21 Enterprise Zone Act for purposes of the benefits and incentives
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22 extended pursuant to the Oklahoma Enterprise Zone Act, shall be
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23 considered an eligible enterprise for purposes of the state local
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1 enterprise matching payment authorized by the Oklahoma Local
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2 Development and Enterprise Zone Incentive Leverage Act.
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3 D. The maximum amount of state local enterprise matching
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4 payments for an enterprise per fiscal year shall not exceed Two
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5 Hundred Thousand Dollars ($200,000.00).
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6 E. Except as provided in subsection H of this section, for
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7 purposes of the Oklahoma Local Development and Enterprise Zone
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8 Incentive Leverage Act, the maximum amount of aggregate investment
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9 in all qualifying facilities located in any single county which can
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10 qualify for a state local enterprise matching payment pursuant to
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11 subsection A of Section 844 of this title shall be computed for each
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12 county of the state by multiplying Two Hundred Dollars ($200.00)
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13 times the population of the county according to the most recent
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14 estimate provided by the United States Bureau of the Census prior to
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15 the date an application is made.
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16 F. The computation required by subsection E of this section
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17 shall be the maximum amount of aggregated investment qualifying for
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18 the purposes of all enterprises for the duration of the Oklahoma
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19 Local Development and Enterprise Zone Incentive Leverage Act.
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20 G. The aggregate investment limit for all facilities located
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21 within a county which may qualify for the state local enterprise
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22 matching payments pursuant to subsection A of Section 844 of this
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23 title shall:
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1 1. Not be less than Twenty Million Dollars ($20,000,000.00) for
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2 counties with a population less than one hundred thousand (100,000)
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3 persons; and
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4 2. Not be greater than Forty Million Dollars ($40,000,000.00)
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5 for all other counties of the state.
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6 H. The aggregate limit for all state local government matching
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7 payments made to any public entity on behalf of any local
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8 governmental entity within a single county pursuant to subsection D
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9 of Section 844 of this title for the duration of the Oklahoma Local
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10 Development and Enterprise Zone Incentive Leverage Act shall be an
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11 amount equal to the net benefit rate multiplied by the taxable gross
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12 sales derived from the project over the period of apportionment of
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13 local sales taxes, as certified by the Secretary of Commerce.
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14 I. The payments authorized by Section 844 of this title shall
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15 be available for business and governmental entities qualifying
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16 pursuant to the Local Development Act for investments made within an
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17 incentive district or for improvements made within an increment
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18 district prior to December 31, 2007, or for which an incentive
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19 district or an increment district has been created prior to December
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20 31, 2028, if the investments or improvements are begun not later
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21 than December 31, 2029.
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22 J. An enterprise or entity receiving payments authorized
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23 pursuant to the provisions of Section 844 of this title shall
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1 annually report to the Oklahoma Department of Commerce the
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2 following:
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3 1. All employment resulting from the project or facility
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4 location or expansion, including payroll amounts;
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5 2. Capital investment amounts resulting from the project or
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6 facility location or expansion; and
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7 3. Changes in the assessed value of property resulting from the
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8 project or facility location or expansion.
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9 The enterprise or entity shall also provide consent for the
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10 Department to furnish the reported information to the Incentive
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11 Evaluation Commission only for evaluation purposes by the Commission
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12 or a designee. The information furnished to the Commission shall be
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13 disaggregated and on a per project basis. The Department shall make
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14 available on the Department website the information reported
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15 pursuant to this subsection.
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16 K. J. The Oklahoma Department of Commerce shall promulgate
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17 rules for administration of the Oklahoma Local Development and
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18 Enterprise Zone Incentive Leverage Act. Such rules shall:
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19 1. Include a procedure for an enterprise or local governmental
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20 entity to make application for state local enterprise and state
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21 local government matching payments pursuant to this section;
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22 2. Reflect the intent that the Oklahoma Local Development and
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23 Enterprise Zone Incentive Leverage Act be fiscally neutral to the
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24 state; and
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1 3. Establish reporting requirements, including the requirements
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2 provided in subsection J I of this section, for successful
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3 applicants which allow data collection and analysis by the
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4 Department on employment, capital investment, changes in assessed
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5 value of a project and other impacts resulting from payments and
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6 reporting of such data by the Department to the Oklahoma Tax
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7 Commission for the purposes of subsection B of Section 847 of this
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8 title.
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9 SECTION 2. AMENDATORY 62 O.S. 2021, Section 843, is
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10 amended to read as follows:
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11 Section 843. A. In order to receive the state local enterprise
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12 matching payment pursuant to the provisions of subsection A of
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13 Section 844 of this title, the enterprise shall obtain a
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14 certification, provided by the governing body of the local
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15 governmental entity creating the incentive district, acknowledged by
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16 the chief elected official of the local governing body that the
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17 enterprise has qualified pursuant to the Local Development Act for
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18 sales tax exemption. The certification document shall include:
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19 1. The beginning date of the exemption;
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20 2. The ending date of the exemption;
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21 3. The total amount of projected investment to construct or
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22 expand the facility during the period for which the incentives
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23 available pursuant to the Local Development Act will be in force and
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1 effect together with a certification by the Oklahoma Department of
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2 Commerce that the facility is located in an enterprise zone; and
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3 4. The legal name and business entity classification of the
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4 entity to which exemption is afforded or to which sales tax payment
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5 is made by the local governmental entity or entities pursuant to the
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6 provisions of the Local Development Act.
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7 B. The local governing body shall provide a copy of the
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8 certification document to the Oklahoma Tax Commission.
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9 C. After the enterprise provides a certification from the local
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10 governing body, the Tax Commission shall make payment to the
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11 enterprise identified in the certification document equal to the
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12 amount of the sales tax from which the enterprise is certified as
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13 exempt as identified in the certification in the manner prescribed
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14 by subsection A of Section 844 of this title.
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15 D. The state local enterprise matching payment shall be made
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16 only for sales tax foregone by local governmental entities or
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17 rebated to the business enterprise by local entities for purchases
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18 made by the business enterprise and not on the basis of any sales
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19 tax collected by the business enterprise from consumers or users on
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20 taxable sales made by the enterprise.
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21 E. In order to receive the state local governmental matching
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22 payment pursuant to the provisions of subsection D of Section 844 of
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23 this title, the local governmental entity shall provide to the Tax
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24 Commission a certification, acknowledged by its mayor or
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1 chairperson, that such local governmental entity has created an
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2 increment district pursuant to the Local Development Act which
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3 qualifies for a state local government matching payment. The
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4 certification document shall include:
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5 1. The beginning date of the increment district;
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6 2. The ending date of the increment district;
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7 3. A description of the project costs authorized by the project
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8 plan for which the state local government matching payments will be
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9 used and the estimated date for substantial completion of the
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10 project being assisted as described in the application;
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11 4. A certification by the Oklahoma Department of Commerce that
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12 the project plan is located in an enterprise zone or supports a
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13 qualifying major tourism destination project, and that the
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14 qualifying investment and development has been or will be
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15 substantially completed no later than December 31, 2034;
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16 5. The amount of the local sales taxes which have been
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17 apportioned during the previous six-month period by the local
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18 governmental entity for the payment of project costs pursuant to the
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19 provisions of the Local Development Act; and
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20 6. The name of the public entity identified in the project plan
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21 pursuant to Section 858 of this title as the entity authorized to
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22 carry out activities pursuant to the project plan.
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23 After the local governmental entity provides such certification,
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24 the Tax Commission shall make payment to the designated public
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1 entity in an amount equal to the lesser of the certified amount of
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2 the local sales taxes apportioned during the previous six (6) months
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3 or the estimated net direct state benefits as prescribed by
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4 subsection D of Section 844 of this title.
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5 SECTION 3. This act shall become effective November 1, 2026.
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7 60-2-3324 QD 1/14/2026 10:50:35 PM
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Req. No. 3324 Page 11Every fact on this page links to its source, starting with the official bill record.