Okla. Stat. tit. 68, § 68-3802

Cost/benefit analysis.

A. Except as otherwise provided by this section, an

establishment which meets the qualifications specified in the

Oklahoma Quality Jobs Program Act, Sections 3601 through 3609 of

Title 68 of the Oklahoma Statutes, except that the establishment:

1. Has an annual gross payroll for new direct jobs, as defined

in the Oklahoma Quality Jobs Program Act, projected by the

Department of Commerce to equal at least One Million Five Hundred

Thousand Dollars ($1,500,000.00) but less than Two Million Five

Hundred Thousand Dollars ($2,500,000.00) within three (3) years of

the anticipated date of receipt of first incentive payment; and

2. Locates its principal business activity at a former military

facility,

may qualify for payments from the Former Military Facility Projects

Fund created in Section 3 of this act pursuant to approval by the

Oklahoma Department of Commerce. Such establishments shall be

deemed "former military facility projects".

B. Unless otherwise indicated in the Former Military Facility

Development Act, the definitions contained in Section 3603 of Title

68 of the Oklahoma Statutes shall apply to the Former Military

Facility Development Act.

C. As used in this section, "former military facility" shall

mean any tract or parcel of real property used primarily for a

military purpose during a state of war, armed conflict or during

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1441

peace time, title to which was vested in the United States

Government, any branch of the Armed Forces of the United States of

America or was subsequently conveyed by such entities to the State

of Oklahoma, any political subdivision of the State of Oklahoma, or

any public trust having the State of Oklahoma or any political

subdivision of the State of Oklahoma as its beneficiary, whether

singly or in combination with other government entities prior to the

date on which the establishment acquired its interest.

D. The Department shall determine if the applicant is qualified

to receive incentive payments.

E. If the applicant is determined to be qualified by the

Department of Commerce, the Department shall conduct a cost/benefit

analysis to determine the estimated net direct state benefits and

the net benefit rate applicable for a ten-year period and to

estimate the amount of gross payroll for a ten-year period. In

conducting such cost/benefit analysis, the Department shall consider

quantitative factors, such as the anticipated level of new tax

revenues to the state along with the added cost to the state of

providing services, and such other criteria as deemed appropriate by

the Department. In no event shall former military facility project

payments, cumulatively, exceed the estimated net direct state

benefits. Notwithstanding any other provision of law, when the

maximum of Two Million Five Hundred Thousand Dollars ($2,500,000.00)

of projected former military facility projects payments provided by

Sections 1 through 8 of this act have been obligated to specific

establishments for a given fiscal year, then no additional

application for such payments may be considered by the Department of

Commerce for that fiscal year and in any event no payments in excess

of said Two Million Five Hundred Thousand Dollars ($2,500,000.00)

shall be paid by the Tax Commission within any fiscal year.

F. An establishment which meets the qualifications specified in

Sections 1 through 8 of this act may receive quarterly incentive

payments for a ten-year period from the Oklahoma Tax Commission

pursuant to the provisions of the Former Military Facility

Development Act in an amount which shall be equal to the net benefit

rate multiplied by the actual gross payroll of new direct jobs for a

calendar quarter as verified by the Oklahoma Employment Security

Commission except as provided and limited by this section and in

Sections 3 and 4 of this act.
riod from the Oklahoma Tax Commission

pursuant to the provisions of the Former Military Facility

Development Act in an amount which shall be equal to the net benefit

rate multiplied by the actual gross payroll of new direct jobs for a

calendar quarter as verified by the Oklahoma Employment Security

Commission except as provided and limited by this section and in

Sections 3 and 4 of this act.

G. Upon approval of such an application, the Department shall

notify the Oklahoma Tax Commission and shall provide it with a copy

of the application and the results of the cost/benefit analysis.

The Tax Commission may require the qualified establishment to submit

such additional information as may be necessary to administer the

provisions of the Former Military Facility Development Act. The

approved establishment shall report to the Tax Commission

periodically to show its continued eligibility for incentive

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1442

payments, as provided in Section 4 of this act. The establishment

may be audited by the Tax Commission to verify such eligibility.

Once the establishment is approved, an agreement shall be deemed to

exist between the establishment and the State of Oklahoma, requiring

the continued payment to be made as long as the establishment

retains its eligibility as defined in and established pursuant to

this section and Sections 3 and 4 of this act and within the

applicable limitations contained in the Oklahoma Quality Jobs

Program Act, which existed at the time of such approval.

H. No incentive payments which would otherwise be authorized by

this section shall be made to an establishment occupying any lands

title to which has been held or title to which is held, at the time

of application for such payments, by any public trust created

pursuant to the provisions of Section 176 et seq. of Title 60 of the

Oklahoma Statutes if such trust is specifically excluded from the

definition of "state agency" or "agency of the state" by the

provisions of Section 33 of Title 25 of the Oklahoma Statutes or any

other provision of law.