Okla. Stat. tit. 62, § 62-891.18

letter – Positive net benefit rate – 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 and capital spending associated

with one or more for-profit business entities, federal government

defense entities and infrastructure development by one or more local

government entities;

2. "Estimated indirect state benefits" means the indirect new

tax revenues projected by the Department to accrue to the state

including, but not limit to, revenue generated from ancillary

support jobs directly related to the new direct jobs, capital

spending and infrastructure spending;

3. "Estimated direct state costs" means the costs projected by

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

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

a. the costs of education for 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

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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 on new indirect

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

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

subsection.

B. An eligible local government entity in partnership with one

or more for-profit business entities and/or federal government

defense entities that would otherwise qualify to receive or benefit

from proceeds from the issuance of obligations by the Authority from

the Public-Private Partner Development Pool shall be required to

obtain a determination letter from the Department that the

infrastructure development will result in a positive net benefit

rate, to be computed by the Department 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 Department 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 infrastructure development, the business activities in which the

participating for-profit business entities are engaged or will be

engaged, the amount of capital investment, type of assets acquired

or utilized by the participating business entities, economic effect

of the business activity within the relevant geographic region and

any other factors as the Department deems relevant. The Department

may use information regarding the infrastructure development alone

or in conjunction with relevant information regarding other business

activity in a geographically relevant area surrounding the

infrastructure development or the location of the participating for-

profit business entities in order to perform the computation of the

net benefit rate. If the result of the analysis is a positive net

benefit rate, the applying local government entity shall be allowed

to capture withholding taxes associated with new jobs or with

existing jobs associated with the participating for-profit business

entities as otherwise provided by this act. The Department shall

transmit a determination letter to the authorized representative of

the local government entity and shall also transmit a copy of the

determination letter to the Oklahoma Tax Commission and to the

Oklahoma Development Finance Authority notwithstanding the positive

or negative result of the net benefit rate. The Authority shall not

allow a local government entity to use captured withholding tax

revenues for purposes of any pooled financing otherwise authorized
the local government entity and shall also transmit a copy of the

determination letter to the Oklahoma Tax Commission and to the

Oklahoma Development Finance Authority notwithstanding the positive

or negative result of the net benefit rate. The Authority shall not

allow a local government entity to use captured withholding tax

revenues for purposes of any pooled financing otherwise authorized

by this act unless the Department has previously transmitted a

determination letter that reveals a positive net benefit rate for

the Public-Private Partner Development Pool project.

C. Any for-profit business entity that participates in the

Public-Private Partner Development Pool may be required by the

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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.

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

borrowing by the Authority.

E. The Authority shall have the 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

participating for-profit business entities 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 one or more for-

profit business entities 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 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 with one or

more eligible local government entities in conjunction with

participating for-profit business entities participating in a pooled

financing pursuant to the Oklahoma Community Economic Development

Pooled Finance Act.

I. No for-profit business entity that participates from

proceeds of obligations issued by the Authority from the Public-

Private Partner Development Pool may receive or continue to receive

incentive payments pursuant to the Economic Development Pool, 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 the act.