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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 249 By: Thompson
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6 AS INTRODUCED
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7 An Act relating to the Oklahoma Tourism Development
7 Act; amending 68 O.S. 2021, Section 2397, as amended
8 by Section 2, Chapter 30, 1st Extraordinary Session,
8 O.S.L. 2023 (68 O.S. Supp. 2024, Section 2397), which
9 relates to inducement claims; increasing cumulative
9 inducement per year; extending sunset; and providing
10 an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2397, as
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16 amended by Section 2, Chapter 30, 1st Extraordinary Session, O.S.L.
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17 2023 (68 O.S. Supp. 2024, Section 2397), is amended to read as
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18 follows:
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19 Section 2397. A. Upon receiving notification from the
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20 Executive Director of the Oklahoma Department of Commerce that an
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21 approved company has entered into a tourism project agreement and is
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22 entitled to the inducements provided by the Oklahoma Tourism
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23 Development Act, the Oklahoma Tax Commission shall provide the
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Req. No. 521 Page 1
1 approved company with forms and instructions as necessary to claim
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2 or receive or pass-through those inducements.
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3 B. An approved company whose agreement provides that it shall
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4 expend approved costs of more than Five Hundred Thousand Dollars
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5 ($500,000.00) for a tourism attraction project but less than One
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6 Million Dollars ($1,000,000.00) shall be entitled to a sales tax
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7 credit if the company certifies to the Tax Commission that it has
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8 expended at least the minimum amount in approved costs, and the
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9 Executive Director certifies that the approved company is in
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10 compliance with the Oklahoma Tourism Development Act. The Tax
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11 Commission shall then issue a tax credit memorandum to the approved
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12 company granting a sales tax credit in the amount of up to ten
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13 percent (10%) of the approved costs, but limited to the percent of
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14 the approved costs that will result in the project being revenue-
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15 neutral to this state as determined by the Oklahoma Department of
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16 Commerce. Subsequent requests for credit for additional certified
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17 approved costs in excess of the minimum amount for each project as
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18 listed in this subsection but less than One Million Dollars
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19 ($1,000,000.00) shall result in a sales tax credit in the amount of
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20 up to ten percent (10%) of the approved costs, but limited to the
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21 percent of the approved costs that will result in the project being
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22 revenue-neutral to this state as determined by the Oklahoma
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23 Department of Commerce. Sales tax credits allowed pursuant to the
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24 provisions of the Oklahoma Tourism Development Act shall not be
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Req. No. 521 Page 2
1 transferable or assignable; provided that, with respect to a tourism
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2 attraction project that is an Entertainment District, the approved
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3 company can elect to pass-through all or a portion of the sales tax
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4 credit to one or more Entertainment District Tenant Parties. The
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5 approved company and the Entertainment District Tenant Party shall
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6 jointly file a copy of the written credit pass-through agreement
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7 with the Oklahoma Tax Commission within thirty (30) days of the
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8 effective date of the agreement. Such filing of the agreement with
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9 the Oklahoma Tax Commission shall perfect such agreement. The
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10 written agreement shall contain the name, address and taxpayer
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11 identification number of the parties to the agreement, the amount of
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12 credit being passed-through, the month and year the credit was
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13 originally allowed to the approved company, the month and tax year
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14 or years for which the credit may be claimed, and a representation
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15 by the approved company that the approved company has neither
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16 claimed for its own behalf nor conveyed such credits to any other
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17 Entertainment District Tenant Party. The Tax Commission shall
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18 develop a standard form for use by an approved company and an
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19 Entertainment District Tenant Party demonstrating eligibility for
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20 the Entertainment District Tenant Party to utilize the sales tax
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21 credit. The Tax Commission shall develop a system to record and
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22 track the pass-through of the sales tax credit and certify the
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23 ownership of the sales tax credit and may promulgate rules to permit
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24 verification of the validity and timeliness of a sales tax credit
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Req. No. 521 Page 3
1 claimed upon a sales tax return pursuant to this subsection but
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2 shall not promulgate any rules which unduly restrict or hinder the
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3 pass-through of such sales tax credit to an Entertainment District
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4 Tenant Party.
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5 An approved company whose agreement provides that it shall
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6 expend approved costs in excess of One Million Dollars
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7 ($1,000,000.00) shall be entitled to a sales tax credit if the
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8 company certifies to the Tax Commission that it has expended at
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9 least One Million Dollars ($1,000,000.00) in approved costs and the
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10 Executive Director certifies that the approved company is in
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11 compliance with the Oklahoma Tourism Development Act. The Tax
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12 Commission shall then issue a tax credit memorandum to the approved
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13 company granting a sales tax credit in the amount of up to twenty-
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14 five percent (25%) of the approved costs, but limited to the percent
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15 of the approved costs that will result in the project being revenue-
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16 neutral to this state as determined by the Oklahoma Department of
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17 Commerce. The credit on all subsequent additional certified
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18 approved costs shall be in the amount of up to twenty-five percent
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19 (25%) of the costs, but limited to the percent of the approved costs
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20 that will result in the project being revenue-neutral to this state
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21 as determined by the Oklahoma Department of Commerce. For a tourism
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22 attraction project that is an Entertainment District, an approved
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23 company may elect to receive an incentive payment based on sales tax
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24 collections of Entertainment District Tenant Parties rather than a
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1 sales tax credit. The incentive payment shall be in the amount of
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2 up to twenty-five percent (25%) of the approved costs but limited to
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3 the percent of the approved costs that will result in the project
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4 being revenue-neutral to this state as determined by the Oklahoma
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5 Department of Commerce; provided that, (A) in no event shall the
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6 incentive payments exceed the increased state sales tax liability of
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7 the approved company and the Entertainment District Tenant Parties
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8 that is actually received by the Tax Commission, and (B) the
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9 approved company shall be entitled to receive only ten percent (10%)
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10 of the incentive payment amount during each calendar year. The Tax
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11 Commission shall issue an incentive payment memorandum to the
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12 approved company granting a right to receive an incentive payment
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13 from the Tax Commission in the amount of up to twenty-five percent
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14 (25%) of the approved costs but limited to the percent of the
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15 approved costs that will result in the project being revenue-neutral
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16 to this state as determined by the Oklahoma Department of Commerce.
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17 As soon as practicable after the end of each calendar year during
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18 the term of the agreement, the approved company shall file a claim
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19 for the incentive payment with the Tax Commission, and the Tax
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20 Commission shall be responsible for ensuring that the amount of the
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21 incentive payment claimed does not exceed the increased state sales
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22 tax liability of the approved company and the Entertainment District
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23 Tenant Parties that has been actually received by the Tax
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24 Commission, which may include accessing the Oklahoma sales tax
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1 returns of the Entertainment District Tenant Parties as permitted by
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2 this section.
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3 The cumulative inducements provided pursuant to the Oklahoma
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4 Tourism Development Act shall not exceed Thirty Fifty Million
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5 Dollars ($30,000,000.00) ($50,000,000.00) per year.
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6 The Tax Commission shall require proof of expenditures prior to
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7 issuing a tax credit memorandum or incentive payment memorandum to
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8 the approved company which may be satisfied by a report from an
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9 independent certified public accountant. Additional credit
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10 memoranda or incentive memoranda may be issued as the approved
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11 company certifies additional expenditures of approved costs.
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12 No tax credit memorandum or incentive payment memorandum shall
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13 be issued for any approved costs expended after the expiration of
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14 three (3) years from the date the agreement was signed by the
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15 Executive Director and the approved company. However, the Executive
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16 Director, with the advice and consent of the Tax Commission, may
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17 authorize inducements for approved costs expended up to five (5)
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18 years from the date the agreement was signed if the Executive
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19 Director determines that the failure to complete the tourism
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20 attraction project within three (3) years resulted from:
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21 1. Unanticipated and unavoidable delay in the construction of
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22 the tourism attraction;
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1 2. An original completion date for the tourism attraction, as
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2 originally planned, which will be more than three (3) years from the
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3 date construction began; or
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4 3. A change in business ownership or business structure
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5 resulting from a merger or acquisition.
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6 C. A sales tax credit allowed pursuant to the provisions of
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7 this section may be used to offset a portion of the reported state
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8 sales tax liability of the approved company or an Entertainment
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9 District Tenant Party, if applicable, for all sales tax reporting
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10 periods following the issuance of the credit memorandum subject to
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11 the following limitations:
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12 1. Only increased state sales tax liability may be offset by
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13 the issued credit;
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14 2. An approved company whose agreement provides that it shall
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15 expend approved costs in excess of One Million Dollars
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16 ($1,000,000.00) or an Entertainment District Party, if applicable,
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17 shall be entitled to use only ten percent (10%) of the amount of
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18 each issued credit to offset increased state sales tax liability
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19 during each calendar year, plus the amount of any unused credit
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20 carried forward from a prior calendar year, and an approved company
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21 whose agreement provides that it shall expend approved costs of more
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22 than the minimum amount for each project as listed in this
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23 subsection but less than One Million Dollars ($1,000,000.00) shall
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24 be entitled to use only twenty percent (20%) of the amount of each
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1 issued credit to offset increased state sales tax liability during
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2 each calendar year, plus the amount of any unused credit carried
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3 forward from a prior calendar year; and
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4 3. All issued credit memoranda or incentive payment memoranda
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5 shall expire at the end of the month following the expiration of the
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6 agreement as provided in Section 2396 of this title.
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7 The approved company or an Entertainment District Tenant Party,
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8 if applicable, shall have no obligation to refund or otherwise
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9 return any amount of this inducement to the person from whom the
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10 sales tax was collected.
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11 D. The Tax Commission shall promulgate rules as are necessary
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12 for the proper administration of the Oklahoma Tourism Development
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13 Act. The Tax Commission may also develop forms and instructions as
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14 necessary for an approved company or Entertainment District Tenant
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15 Party, if applicable, to claim or receive or pass-through the
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16 inducements provided by the Oklahoma Tourism Development Act.
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17 E. The Tax Commission shall have the authority to obtain any
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18 information necessary from or regarding the approved company or an
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19 Entertainment District Tenant Party, if applicable, and the
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20 Executive Director to verify that approved companies or an
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21 Entertainment District Tenant Party, if applicable, have received
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22 the proper amounts of inducements as authorized by the Oklahoma
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23 Tourism Development Act. The Oklahoma Tax Commission shall demand
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1 the repayment of any inducements taken or received in excess of the
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2 inducements allowed by the Oklahoma Tourism Development Act.
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3 F. No sales tax credit or incentive payment right authorized by
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4 this section shall be granted on or after January 1, 2026 2032.
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5 Notwithstanding the foregoing, an approved company that has entered
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6 into a tourism attraction project agreement with the Oklahoma
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7 Department of Commerce pursuant to Section 2396 of this title prior
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8 to January 1, 2026 2032, shall continue to be entitled to claim or
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9 receive any inducements authorized by this section as contemplated
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10 by the tourism project agreement.
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11 G. All currently approved tourism project agreements executed
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12 by the Oklahoma Tourism and Recreation Department are hereby
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13 transferred to the Oklahoma Department of Commerce upon November 1,
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14 2021.
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15 H. On November 1, 2021, all administrative rules promulgated by
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16 the Oklahoma Tourism and Recreation Department regarding the
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17 Oklahoma Tourism Development Act shall be transferred to and become
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18 a part of the administrative rules of the Oklahoma Department of
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19 Commerce. The Office of Administrative Rules in the Office of the
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20 Secretary of State shall provide adequate notice in the Oklahoma
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21 Register of the transferred rules and shall place the transferred
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22 rules under the Administrative Code section of the Oklahoma
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23 Department of Commerce. On November 1, 2021, any amendment, repeal,
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24 or addition to the transferred rules shall be under the jurisdiction
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1 of the Oklahoma Department of Commerce, who shall have the authority
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2 to enact rules in order to carry out the provisions of the Oklahoma
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3 Tourism Development Act.
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4 SECTION 2. This act shall become effective November 1, 2025.
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6 60-1-521 MR 12/30/2024 5:47:33 PM
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Req. No. 521 Page 10Every fact on this page links to its source, starting with the official bill record.