Oklahoma § 68-2396 - Approved projects - Agreement terms and provisions

§ 68-2396. Approved projects - Agreement terms and provisions

A. Upon granting final approval, the Executive Director of the

Oklahoma Department of Commerce may enter into an agreement with an

approved company with respect to its tourism attraction project.

The terms and provisions of each agreement shall include, but shall

not be limited to:

1. The amount of approved costs, which shall be determined by

negotiations between the Executive Director and the approved

company;

2. A date certain by which the approved company shall have

completed the tourism attraction project or an individual component

or phase of the project if the tourism attraction project is an

Entertainment District. Within three (3) months of the completion

date of the whole or an individual component or phase of the

project, the approved company shall document its actual costs of the

project through a certification of the costs by an independent

certified public accountant acceptable to the Executive Director;

and

3. The following provisions:

a.

the term of the agreement may be up to ten (10) years

from the later of:

(1) the date of the final approval of the tourism

attraction project, or

(2) the completion date specified in the agreement,

if the completion date is within three (3) years

of the date of the final approval of the tourism

attraction project. However, the term of the

agreement may be extended for up to two (2)

additional years by the Executive Director, with

the advice and consent of the Oklahoma Tax

Commission, if the Executive Director determines

that the failure to complete the tourism

Oklahoma Statutes - Title 68. Revenue and Taxation

b.

c.

d.

attraction project within three (3) years

resulted from:

(a) unanticipated and unavoidable delay in the

construction of the tourism attraction

project,

(b) an original completion date for the tourism

attraction project, as originally planned,

which will be more than three (3) years from

the date construction began, or

(c) a change in business structure resulting

from a merger or acquisition,

in any tax year during which an agreement is in

effect, if the amount of sales tax to be remitted by

the approved company or an Entertainment District

Tenant Party, if applicable, exceeds the sales tax

credit available to the approved company or

Entertainment District Tenant Party, if applicable,

then the approved company or Entertainment District

Tenant Party, if applicable, shall pay the excess to

this state as sales tax,

within forty-five (45) days after the end of each

calendar year the approved company shall supply the

Executive Director with such reports and

certifications as the Executive Director may request

demonstrating to the satisfaction of the Executive

Director that the approved company is in compliance

with the provisions of the Oklahoma Tourism

Development Act, and

the approved company or an Entertainment District

Tenant Party, if applicable, shall not receive an

inducement with respect to any calendar year if:

(1) with respect to any tourism attraction project

that is not an Entertainment District in any

calendar year following the fourth year of the

agreement, the tourism attraction project fails

to attract at least fifteen percent (15%) of its

visitors from among persons who are not residents

of this state, or

(2) in any calendar year following the first year of

the project or the tourism attraction project is

not operating and open to the public on a regular

and consistent basis, which for a tourism

attraction project that is an Entertainment

District shall mean that a substantial portion of

the Entertainment District is not operating and

open to the public on a regular and consistent

basis.

Oklahoma Statutes - Title 68. Revenue and Taxation

B. The agreement shall not be transferable or assignable by the

approved company without the written consent of the Executive

Director but, with respect to a tourism attraction project that is

an Entertainment District, the approved company can elect to passthrough all or a portion of the sales tax credit to one or more

Entertainment District Tenant Parties in accordance with Section

2397 of this title.

C. If the approved company utilizes or receives inducements

which are subsequently disallowed then the approved company will be

liable for the payment to the Tax Commission of an amount equal to

(i) all taxes resulting from the disallowance of the inducements

plus applicable penalties and interest, whether owed by the approved

company or an Entertainment District Tenant Party to which the

credits have been passed-through in accordance with Section 2397 of

this title, and/or (ii) all incentive payments previously received

by the approved company, plus applicable penalties and interest.

Only the approved company originally allowed a sales tax credit

shall be held liable to make such payments and not any Entertainment

District Tenant Party to whom the credit has been passed-through in

accordance with Section 2397 of this title.

D. The Executive Director shall provide a copy of each

agreement entered into with an approved company to the Tax

Commission.

E. For a tourism attraction project that is an Entertainment

District and anticipated to have multiple components or phases, the

Executive Director may enter into more than one agreement with

different approved companies for the different components or phases

of the Entertainment District and such agreements may be entered

into at different times as though the different components or phases

of the Entertainment District are their own separate project. In

such case, the Executive Director shall not be required to obtain a

separate report (referred to in subsection C of Section 2394 of this

title) for each individual component or phase of the Entertainment

District, but only one report for the entire Entertainment District.

Added by Laws 2017, c. 196, § 6, eff. Nov. 1, 2017. Amended by Laws

2019, c. 443, § 4, eff. Nov. 1, 2019; Laws 2021, c. 140, § 4, eff.

Nov. 1, 2021; Laws 2023, 1st Ex. Sess., c. 30, § 1, eff. Nov. 1,

2023.