Oklahoma § 68-1370.8 - Creation of hospital authorities - Sales tax levy Dissolution

§ 68-1370.8. Creation of hospital authorities - Sales tax levy Dissolution

A. In accordance with the provisions of Section 1 of this act,

any combination of cities, towns and counties, by resolution of

their governing boards, may jointly create a hospital authority

pursuant to the provisions of Section 176 of Title 60 of the

Oklahoma Statutes for the purpose of planning, financing and

constructing hospitals or related medical facilities located within

Oklahoma Statutes - Title 68. Revenue and Taxation

the boundaries of such cities, towns or counties. An authority

created pursuant to the provisions of this subsection shall have the

powers granted pursuant to the provisions of Section 176 of Title 60

of the Oklahoma Statutes in addition to the powers granted pursuant

to the provisions of this section. The combination of cities, towns

and counties creating the authority shall be designated the

beneficiary of the authority. The boundaries of the authority shall

be coterminous with the boundaries of the cities, towns or counties

creating the authority.

B. Any hospital authority created pursuant to the provisions of

subsection A of this section may levy a sales tax of not to exceed

two percent (2%) upon the gross proceeds or gross receipts derived

from all sales or services in the cities, towns and counties

comprising the authority upon which a consumer's sales tax is levied

by this state. Before a sales tax may be levied by the authority,

the imposition of the tax shall first be approved by a majority of

the registered voters within the boundaries of each of the cities,

towns and counties comprising the authority voting thereon at a

special election jointly called by the governing boards of the

cities, towns and counties comprising the authority. Provided, if a

majority of the registered voters of an authority voting fail to

approve such a tax, the governing boards of such cities, towns and

counties shall not jointly call another special election for such

purpose for at least six (6) months. Any sales tax approved by the

registered voters of an authority shall be applicable only when the

point of sale is within the boundaries or limits of the authority.

C. All items that are exempt from the state sales tax shall be

exempt from any sales tax levied pursuant to the provisions of this

section.

D. Any sales tax which may be levied pursuant to the provisions

of this section shall be designated for the purposes of planning,

financing and constructing hospitals or related medical facilities

within the boundaries of the authority. The authority shall

identify the purpose of the sales tax when it is presented to the

voters pursuant to the provisions of this section. The proceeds of

any sales tax levied by an authority shall be used only for the

purposes for which the sales tax was designated.

E. The authority shall identify the duration of the tax when it

is presented to the voters pursuant to the provisions of this

section.

F. An authority created pursuant to the provisions of

subsection A of this section may utilize the provisions of the Local

Development Act as it relates to the financing of such hospitals or

related medical facilities.

G. An authority created pursuant to the provisions of

subsection A of this section shall be dissolved:

Oklahoma Statutes - Title 68. Revenue and Taxation

1. At such time as the planning, financing and constructing of

the hospitals or related medical facilities within the boundaries of

the authority is completed; and

2. At such time as the revenue collected from any taxes levied

by the authority is sufficient for payment of any and all expenses

incurred by the authority in the planning, financing and

constructing of a hospital or related medical facility.

H. If the proceeds of any tax levied by an authority pursuant

to this section are pledged for the purpose of retiring indebtedness

incurred for the specific purpose for which the tax is imposed, the

tax shall not be repealed until such time as the indebtedness is

retired. Notwithstanding any other provisions of law, any county or

hospital authority that has approved a sales tax for the support and

operation of a county hospital may continue to collect such tax if

such hospital is subsequently sold. Such collection shall only

continue if the county or hospital authority remains indebted for

the support and operation of such hospital and only until the debt

is repaid or for the stated term of the tax, whichever period is

shorter. In no event shall the life of the tax be extended beyond

the duration approved by the voters of the authority.

I. If the revenue collected from any taxes levied by the

authority exceeds the amount necessary for payment of any and all

expenses incurred by the authority in the planning, financing and

constructing of hospitals or related medical facilities, the excess

funds shall be apportioned to the general funds of the cities, towns

and counties comprising the authority in proportion to the

population of each city, town and county.

J. If the construction, support, or operation of a hospital is

funded through the levy of a sales tax by a county or hospital

authority pursuant to this section and such hospital is subsequently

sold, the county or hospital authority levying the tax may dissolve

the governing board of such hospital at the time of the sale. When

the sale of the hospital and dissolution of any governing board is

final, the county or hospital authority is thereby relieved of any

liability for the operation of such hospital.

Added by Laws 1996, c. 86, § 1, eff. Nov. 1, 1996. Amended by Laws

2004, c. 103, § 2, emerg. eff. April 14, 2004; Laws 2015, c. 254, §

9, eff. Nov. 1, 2015.