Okla. Stat. tit. 62, § 62-891.12

agreements - Withholding taxes.

A. As used in this section:

1. “Estimated direct state benefits” means the tax revenues

projected by the Oklahoma Department of Commerce to accrue to the

state as a result of new direct jobs;

2. “Estimated indirect state benefits” means the indirect new

tax revenues projected by the Oklahoma Department of Commerce to

accrue to the state, including, but not limited to, revenue

generated from ancillary support jobs directly related to the

primary business;

3. “Estimated direct state costs” means the costs projected by

the Department to accrue to the state as a result of new direct

jobs. Such costs shall include, but not be limited to:

a. the costs of education of new state resident children,

b. the costs of public health, public safety and

transportation services to be provided to new state

residents,

c. the costs of other state services to be provided to

new state residents, and

d. the costs of other state services; and

4. “Estimated indirect state costs” means the costs projected

by the Department to accrue to the state as a result of new indirect

jobs. Such costs shall include, but not be limited to, costs

enumerated in subparagraphs a, b, c and d of paragraph 3 of this

subsection.

B. A for-profit business entity that would otherwise qualify to

receive or benefit from proceeds from the issuance of obligations by

the Authority from the Economic Development Pool shall be required

to obtain a determination letter from the Oklahoma Department of

Commerce that the business activity of the entity will result in a

positive net benefit rate, to be computed by the Department of

Commerce using a methodology which provides for the analysis of

estimated direct state benefits, estimated indirect state benefits,

estimated direct state costs and estimated indirect state costs.

The Oklahoma Department of Commerce shall use such information as it

determines to be relevant for the analysis required by this

subsection including, but not limited to, the type of business

activity in which the entity is engaged or will be engaged, amount

of capital investment, type of assets acquired or utilized by the

business entity, economic effect of the business activity within the

relevant geographic region and such other factors as the Department

determines to be relevant. The Oklahoma Department of Commerce may

use information regarding the business entity alone or in

conjunction with relevant information regarding other business

Oklahoma Statutes - Title 62. Public Finance Page 591

activity in a geographically relevant area surrounding the principal

business location of the primary business entity in order to perform

the computation of the net benefit rate. If the result of the

analysis is a positive net benefit rate, the business entity shall

be allowed to capture withholding taxes associated with new jobs or

with existing jobs as otherwise provided by this act. The Oklahoma

Department of Commerce shall transmit a determination letter to the

authorized representative of the business entity and shall also

transmit a copy of the determination letter to the Oklahoma Tax

Commission and to the Oklahoma Development Finance Authority,

regardless of whether the result is a positive or negative net

benefit rate. The Oklahoma Development Finance Authority shall not

allow a business entity to use captured withholding tax revenues for

purposes of any pooled financing otherwise authorized by this act

unless the Oklahoma Department of Commerce has previously

transmitted a determination letter that reveals a positive net

benefit rate for the business entity.

C. Any for-profit business entity that receives proceeds from

the issuance of any obligations by the Authority from the Economic

Development Pool may be required by the applicable local government

entity to enter into such agreements as may be required between the
t of Commerce has previously

transmitted a determination letter that reveals a positive net

benefit rate for the business entity.

C. Any for-profit business entity that receives proceeds from

the issuance of any obligations by the Authority from the Economic

Development Pool may be required by the applicable local government

entity to enter into such agreements as may be required between the

entity, the local government entity, the Authority and the Oklahoma

Tax Commission to provide for the segregation of withholding taxes

attributable to new direct jobs created or existing payroll retained

by the for-profit business entity in connection with the asset or

assets acquired, constructed or improved with such proceeds.

D. The amount of withholding taxes subject to the provisions of

this section shall, together with other revenue sources or

commitments and undertakings by the for-profit business entity or

third parties, be sufficient to make payment of any required

principal, interest, adequate reserves or other authorized costs for

the borrowing by the Authority.

E. The Authority shall have such power of approval regarding

the amount and duration of withholding tax segregation pursuant to

the provisions of this section in order to ensure payment of its

obligations and to promote the marketability of such obligations.

F. The Authority shall obtain information from the for-profit

business entity as may be required in order to determine the

necessary amount of segregated withholding taxes attributable to new

direct jobs or existing payroll.

G. The Oklahoma Tax Commission shall determine with respect to

the withholding taxes attributable to the income of employees

engaged in new direct jobs or existing jobs for a for-profit

business entity participating in a pooled financing pursuant to the

Oklahoma Community Economic Development Pooled Finance Act the

amount of such withholding taxes required to be deposited to the

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credit of the Community Economic Development Pooled Finance

Revolving Fund.

H. The Oklahoma Tax Commission shall make a deposit in the

Community Economic Development Pooled Finance Revolving Fund in

accordance with any applicable agreement entered into by a for-

profit business entity participating in a pooled financing pursuant

to the Oklahoma Community Economic Development Pooled Finance Act.

I. No for-profit business entity that benefits from proceeds of

obligations issued by the Authority from the Economic Development

Pool may receive or continue to receive incentive payments pursuant

to the Oklahoma Quality Jobs Program Act or claim any investment tax

credits otherwise authorized pursuant to Section 2357.4 of Title 68

of the Oklahoma Statutes during the period of time that any

withholding taxes attributable to the payroll of such entity are

being paid to the Community Economic Development Pooled Finance

Revolving Fund or in any manner used for the payment of principal,

interest or other costs associated with any obligations issued by

the Authority pursuant to the provisions of this act.