Okla. Stat. tit. 68, § 68-2397

A. Upon receiving notification from the Executive Director of

the Oklahoma Department of Commerce that an approved company has

entered into a tourism project agreement and is entitled to the

inducements provided by the Oklahoma Tourism Development Act, the

Oklahoma Tax Commission shall provide the approved company with

forms and instructions as necessary to claim or receive or pass-

through those inducements.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1102

B. An approved company whose agreement provides that it shall

expend approved costs of more than Five Hundred Thousand Dollars

($500,000.00) for a tourism attraction project but less than One

Million Dollars ($1,000,000.00) shall be entitled to a sales tax

credit if the company certifies to the Tax Commission that it has

expended at least the minimum amount in approved costs, and the

Executive Director certifies that the approved company is in

compliance with the Oklahoma Tourism Development Act. The Tax

Commission shall then issue a tax credit memorandum to the approved

company granting a sales tax credit in the amount of up to ten

percent (10%) of the approved costs, but limited to the percent of

the approved costs that will result in the project being revenue-

neutral to this state as determined by the Oklahoma Department of

Commerce. Subsequent requests for credit for additional certified

approved costs in excess of the minimum amount for each project as

listed in this subsection but less than One Million Dollars

($1,000,000.00) shall result in a sales tax credit in the amount of

up to ten percent (10%) of the approved costs, but limited to the

percent of the approved costs that will result in the project being

revenue-neutral to this state as determined by the Oklahoma

Department of Commerce. Sales tax credits allowed pursuant to the

provisions of the Oklahoma Tourism Development Act shall not be

transferable or assignable; provided that, with respect to a tourism

attraction project that is an Entertainment District, the approved

company can elect to pass-through all or a portion of the sales tax

credit to one or more Entertainment District Tenant Parties. The

approved company and the Entertainment District Tenant Party shall

jointly file a copy of the written credit pass-through agreement

with the Oklahoma Tax Commission within thirty (30) days of the

effective date of the agreement. Such filing of the agreement with

the Oklahoma Tax Commission shall perfect such agreement. The

written agreement shall contain the name, address and taxpayer

identification number of the parties to the agreement, the amount of

credit being passed-through, the month and year the credit was

originally allowed to the approved company, the month and tax year

or years for which the credit may be claimed, and a representation

by the approved company that the approved company has neither

claimed for its own behalf nor conveyed such credits to any other

Entertainment District Tenant Party. The Tax Commission shall

develop a standard form for use by an approved company and an

Entertainment District Tenant Party demonstrating eligibility for

the Entertainment District Tenant Party to utilize the sales tax

credit. The Tax Commission shall develop a system to record and

track the pass-through of the sales tax credit and certify the

ownership of the sales tax credit and may promulgate rules to permit

verification of the validity and timeliness of a sales tax credit

claimed upon a sales tax return pursuant to this subsection but

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1103

shall not promulgate any rules which unduly restrict or hinder the

pass-through of such sales tax credit to an Entertainment District

Tenant Party.

An approved company whose agreement provides that it shall

expend approved costs in excess of One Million Dollars

($1,000,000.00) shall be entitled to a sales tax credit if the
ion but

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1103

shall not promulgate any rules which unduly restrict or hinder the

pass-through of such sales tax credit to an Entertainment District

Tenant Party.

An approved company whose agreement provides that it shall

expend approved costs in excess of One Million Dollars

($1,000,000.00) shall be entitled to a sales tax credit if the

company certifies to the Tax Commission that it has expended at

least One Million Dollars ($1,000,000.00) in approved costs and the

Executive Director certifies that the approved company is in

compliance with the Oklahoma Tourism Development Act. The Tax

Commission shall then issue a tax credit memorandum to the approved

company granting a sales tax credit in the amount of up to twenty-

five percent (25%) of the approved costs, but limited to the percent

of the approved costs that will result in the project being revenue-

neutral to this state as determined by the Oklahoma Department of

Commerce. The credit on all subsequent additional certified

approved costs shall be in the amount of up to twenty-five percent

(25%) of the costs, but limited to the percent of the approved costs

that will result in the project being revenue-neutral to this state

as determined by the Oklahoma Department of Commerce. For a tourism

attraction project that is an Entertainment District, an approved

company may elect to receive an incentive payment based on sales tax

collections of Entertainment District Tenant Parties rather than a

sales tax credit. The incentive payment shall be in the amount of

up to twenty-five percent (25%) of the approved costs but limited to

the percent of the approved costs that will result in the project

being revenue-neutral to this state as determined by the Oklahoma

Department of Commerce; provided that, (A) in no event shall the

incentive payments exceed the increased state sales tax liability of

the approved company and the Entertainment District Tenant Parties

that is actually received by the Tax Commission, and (B) the

approved company shall be entitled to receive only ten percent (10%)

of the incentive payment amount during each calendar year. The Tax

Commission shall issue an incentive payment memorandum to the

approved company granting a right to receive an incentive payment

from the Tax Commission in the amount of up to twenty-five percent

(25%) of the approved costs but limited to the percent of the

approved costs that will result in the project being revenue-neutral

to this state as determined by the Oklahoma Department of Commerce.

As soon as practicable after the end of each calendar year during

the term of the agreement, the approved company shall file a claim

for the incentive payment with the Tax Commission, and the Tax

Commission shall be responsible for ensuring that the amount of the

incentive payment claimed does not exceed the increased state sales

tax liability of the approved company and the Entertainment District

Tenant Parties that has been actually received by the Tax

Commission, which may include accessing the Oklahoma sales tax

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1104

returns of the Entertainment District Tenant Parties as permitted by

this section.

The cumulative inducements provided pursuant to the Oklahoma

Tourism Development Act shall not exceed Thirty Million Dollars

($30,000,000.00) per year.

The Tax Commission shall require proof of expenditures prior to

issuing a tax credit memorandum or incentive payment memorandum to

the approved company which may be satisfied by a report from an

independent certified public accountant. Additional credit

memoranda or incentive memoranda may be issued as the approved

company certifies additional expenditures of approved costs.

No tax credit memorandum or incentive payment memorandum shall

be issued for any approved costs expended after the expiration of
ment memorandum to

the approved company which may be satisfied by a report from an

independent certified public accountant. Additional credit

memoranda or incentive memoranda may be issued as the approved

company certifies additional expenditures of approved costs.

No tax credit memorandum or incentive payment memorandum shall

be issued for any approved costs expended after the expiration of

three (3) years from the date the agreement was signed by the

Executive Director and the approved company. However, the Executive

Director, with the advice and consent of the Tax Commission, may

authorize inducements for approved costs expended up to five (5)

years from the date the agreement was signed if the Executive

Director determines that the failure to complete the tourism

attraction project within three (3) years resulted from:

1. Unanticipated and unavoidable delay in the construction of

the tourism attraction;

2. An original completion date for the tourism attraction, as

originally planned, which will be more than three (3) years from the

date construction began; or

3. A change in business ownership or business structure

resulting from a merger or acquisition.

C. A sales tax credit allowed pursuant to the provisions of

this section may be used to offset a portion of the reported state

sales tax liability of the approved company or an Entertainment

District Tenant Party, if applicable, for all sales tax reporting

periods following the issuance of the credit memorandum subject to

the following limitations:

1. Only increased state sales tax liability may be offset by

the issued credit;

2. An approved company whose agreement provides that it shall

expend approved costs in excess of One Million Dollars

($1,000,000.00) or an Entertainment District Party, if applicable,

shall be entitled to use only ten percent (10%) of the amount of

each issued credit to offset increased state sales tax liability

during each calendar year, plus the amount of any unused credit

carried forward from a prior calendar year, and an approved company

whose agreement provides that it shall expend approved costs of more

than the minimum amount for each project as listed in this

subsection but less than One Million Dollars ($1,000,000.00) shall

be entitled to use only twenty percent (20%) of the amount of each

issued credit to offset increased state sales tax liability during

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1105

each calendar year, plus the amount of any unused credit carried

forward from a prior calendar year; and

3. All issued credit memoranda or incentive payment memoranda

shall expire at the end of the month following the expiration of the

agreement as provided in Section 2396 of this title.

The approved company or an Entertainment District Tenant Party,

if applicable, shall have no obligation to refund or otherwise

return any amount of this inducement to the person from whom the

sales tax was collected.

D. The Tax Commission shall promulgate rules as are necessary

for the proper administration of the Oklahoma Tourism Development

Act. The Tax Commission may also develop forms and instructions as

necessary for an approved company or Entertainment District Tenant

Party, if applicable, to claim or receive or pass-through the

inducements provided by the Oklahoma Tourism Development Act.

E. The Tax Commission shall have the authority to obtain any

information necessary from or regarding the approved company or an

Entertainment District Tenant Party, if applicable, and the

Executive Director to verify that approved companies or an

Entertainment District Tenant Party, if applicable, have received

the proper amounts of inducements as authorized by the Oklahoma

Tourism Development Act. The Oklahoma Tax Commission shall demand

the repayment of any inducements taken or received in excess of the

inducements allowed by the Oklahoma Tourism Development Act.
e, and the

Executive Director to verify that approved companies or an

Entertainment District Tenant Party, if applicable, have received

the proper amounts of inducements as authorized by the Oklahoma

Tourism Development Act. The Oklahoma Tax Commission shall demand

the repayment of any inducements taken or received in excess of the

inducements allowed by the Oklahoma Tourism Development Act.

F. No sales tax credit or incentive payment right authorized by

this section shall be granted on or after January 1, 2032.

Notwithstanding the foregoing, an approved company that has entered

into a tourism attraction project agreement with the Oklahoma

Department of Commerce pursuant to Section 2396 of this title prior

to January 1, 2032, shall continue to be entitled to claim or

receive any inducements authorized by this section as contemplated

by the tourism project agreement.

G. All currently approved tourism project agreements executed

by the Oklahoma Tourism and Recreation Department are hereby

transferred to the Oklahoma Department of Commerce upon November 1,

2021.

H. On November 1, 2021, all administrative rules promulgated by

the Oklahoma Tourism and Recreation Department regarding the

Oklahoma Tourism Development Act shall be transferred to and become

a part of the administrative rules of the Oklahoma Department of

Commerce. The Office of Administrative Rules in the Office of the

Secretary of State shall provide adequate notice in the Oklahoma

Register of the transferred rules and shall place the transferred

rules under the Administrative Code section of the Oklahoma

Department of Commerce. On November 1, 2021, any amendment, repeal,

or addition to the transferred rules shall be under the jurisdiction

of the Oklahoma Department of Commerce, who shall have the authority

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1106

to enact rules in order to carry out the provisions of the Oklahoma

Tourism Development Act.