Okla. Stat. tit. 68, § 68-2902.3

certain ad valorem taxes paid – Application – Agreement – Aircraft

Manufacturer Payment Fund – False or fraudulent application, claim,

etc. - Penalties.

A. As used in this section:

1. “Qualified aircraft manufacturer” means a corporation:

a. primarily engaged in the manufacture or repair of

aircraft components and replacement parts,

b. which is headquartered in this state and the primary

facilities of which are located in this state,

c. which, as of July 1, 2005, has wages in this state

totaling at least Eighty Million Dollars

($80,000,000.00) for the preceding twelve-month period,

and

d. which experienced a decline in annualized wages as a

result of the terrorist attacks on the United States on

September 11, 2001, and as a result of such decline,

had an application for a tax exemption pursuant to the

provisions of Section 2902 of Title 68 of the Oklahoma

Statutes denied or rejected by the Oklahoma Tax

Commission or a county assessor for one (1) or more

years beginning after such terrorist attacks and prior

to July 1, 2005; and

2. “Tax Commission” or “Commission” means the Oklahoma Tax

Commission.

B. A qualified aircraft manufacturer shall be eligible to enter

into an agreement with the Tax Commission for a period not to exceed

five (5) years. The agreement shall provide for the following:

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1. For each year of the term of the agreement, the qualified

aircraft manufacturer shall agree to:

a. maintain Oklahoma wages during the period of the

agreement in an amount not less than one hundred

percent (100%) of the manufacturer’s wages for the

twelve (12) months preceding July 1, 2005,

b. maintain or increase its investment, based on original

cost, in real and personal property in this state in an

amount not less than one hundred percent (100%) of the

manufacturer’s level of investment, based on original

cost, as of July 1, 2005, and

c. meet all other qualifications specified in this section

and provide documentation of such to the Tax

Commission; and

2. The Tax Commission shall agree to make payments to the

qualified aircraft manufacturer in the amount of ad valorem taxes

actually paid by the manufacturer in any year following the

terrorist attacks of September 11, 2001, but which would have been

exempt from ad valorem taxes pursuant to the provisions of Section

2902 of Title 68 of the Oklahoma Statutes if the manufacturer had

not experienced a decline in annualized wages as a result of such

terrorist attacks. Payments to a manufacturer shall not exceed the

amount of such taxes actually paid by the manufacturer prior to the

date of the payment, nor shall payments to a single manufacturer

exceed a total of Two Million Five Hundred Thousand Dollars

($2,500,000.00) over the five-year period of the agreement or a

total of Five Hundred Thousand Dollars ($500,000.00) in any single

fiscal year. If such amount is insufficient to reimburse the

manufacturer for ad valorem taxes actually paid by the manufacturer

in any year following the terrorist attacks of September 11, 2001,

but which would have been exempt from ad valorem taxes pursuant to

the provisions of Section 2902 of Title 68 of the Oklahoma Statutes

if the manufacturer had not experienced a decline in annualized

wages as a result of such terrorist attacks, any amount not

reimbursed shall carry forward and may be paid in a subsequent

fiscal year subject to the limitations of this section; provided, in

no event shall payments be made after the expiration of the

agreement.

C. A qualified aircraft manufacturer shall make an initial

application to the Tax Commission to enter into an agreement

pursuant to the provisions of this section not later than September

1, 2005, and upon approval, shall submit a claim for payment

annually thereafter for the remainder of the five-year period of the

agreement on a date specified by the Tax Commission. Such
of the

agreement.

C. A qualified aircraft manufacturer shall make an initial

application to the Tax Commission to enter into an agreement

pursuant to the provisions of this section not later than September

1, 2005, and upon approval, shall submit a claim for payment

annually thereafter for the remainder of the five-year period of the

agreement on a date specified by the Tax Commission. Such

application and claim shall be on a form prescribed by the Tax

Commission and shall contain such information as may be necessary

for the Tax Commission to determine if the qualifications and other

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requirements of this section have been met. The determination shall

be made upon application of the manufacturer and annually thereafter

as a condition of receiving a payment pursuant to the provisions of

this section. Prior to approving a claim for payment, the Tax

Commission shall verify the information contained in the claim and

shall verify that all requirements of this section have been met as

a condition of making the payment.

D. If the qualified aircraft manufacturer does not meet the

terms of the agreement and all provisions of this section, payments

shall cease and shall not be resumed, and the agreement shall expire

and be void.

E. A qualified aircraft manufacturer that has qualified

pursuant to this section may receive payments only in accordance

with the provisions under which it initially applied and was

approved.

F. As soon as practicable after verification of the eligibility

of the qualified aircraft manufacturer as required by this section,

the Tax Commission shall issue a warrant to the manufacturer.

G. There is hereby created within the State Treasury a special

fund for the Tax Commission to be designated the “Aircraft

Manufacturer Payment Fund”. The Tax Commission is hereby authorized

and directed to withhold a portion of the taxes levied and collected

pursuant to Sections 1354 and 2355 of Title 68 of the Oklahoma

Statutes which would otherwise be apportioned to the General Revenue

Fund for deposit into the fund. The amount deposited shall equal

the sum of an amount required for making payments, as determined

pursuant to the provisions of this section. All of the amounts

deposited in such fund shall be used and expended by the Tax

Commission solely for the purposes and in the amounts authorized by

this section. The liability of the State of Oklahoma to make the

investment payments under this section shall be limited to the

balance contained in the fund created by this subsection.

H. The Tax Commission may promulgate rules necessary to

implement its duties and responsibilities under the provisions of

this section.

I. Any person making an application, claim for payment or any

report, return, statement or other instrument or providing any other

information pursuant to the provisions of this section who willfully

makes a false or fraudulent application, claim, report, return,

statement, invoice or other instrument or who willfully provides any

false or fraudulent information, or any person who willfully aids or

abets another in making such false or fraudulent application, claim,

report, return, statement, invoice or other instrument or who

willfully aids or abets another in providing any false or fraudulent

information, upon conviction, shall be guilty of a felony punishable

by the imposition of a fine not less than One Thousand Dollars

($1,000.00) and not more than Fifty Thousand Dollars ($50,000.00) or

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imprisonment in the State Penitentiary for not less than two (2)

years and not more than five (5) years, or by both such fine and

imprisonment. Any person convicted of a violation of this section

shall be liable for the repayment of all investment payments which

were paid to the manufacturer. Interest shall be due on such
00.00) or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1247

imprisonment in the State Penitentiary for not less than two (2)

years and not more than five (5) years, or by both such fine and

imprisonment. Any person convicted of a violation of this section

shall be liable for the repayment of all investment payments which

were paid to the manufacturer. Interest shall be due on such

payments at the rate of ten percent (10%) per annum.