Current through Vol. 42, No. 1, September 16, 2024
(a)
General provisions.
Manufacturing facilities initially applying for exemption pursuant to Section
2902
of Title 68 on or after November 1, 2017 are eligible to delay the five-year
period of exemption from ad valorem taxes to begin January 1 of the calendar
year following the expiration of the ad valorem exemption or abatement provided
through a tax incentive district established pursuant to the Local Development
Act.
(b)
Definitions.
The following words and terms, when used in this Section shall have the
following meanings unless the context clearly indicates otherwise:
(1)
"Act" means the Local
Development Act at 62 O.S. §§
850 et
seq.
(2)
"Exemption"
means the exemption authorized by Section 6B of Article X of the Oklahoma
Constitution and Section
2902
of Title 68 of the Oklahoma Statutes.
(3)
"Manufacturing facilities"
means manufacturing facilities as defined in 68 O.S. §
2902(B)(1).
(4)
"Tax Commission" means the
Oklahoma Tax Commission.
(5)
"Commerce Department" means the Oklahoma Department of
Commerce.
(c)
Conditions of exemption delay. In order to delay the exemption the
following must occur:
(1) Creation pursuant
to the Local Development Act of a tax incentive district and the governing body
established by the Act must notify the Tax Commission and the Oklahoma
Department of Commerce of the tax incentive district's creation by the time the
manufacturing facility initially applies for exemption.
(2) A manufacturing facility must:
(A) Submit a completed OTC Form 900XM with
the county for each of the five exemption years beginning with the initial year
immediately following the initial qualifying use of the property in the
manufacturing process adhering to current statutory filing requirements and
deadlines.
(B) Indicate its intent
to delay application of the five year exemption on the initial application for
exemption by completing the applicable section of OTC Form 900XM.
(C) Meet all exemption criteria required by
statute and outlined in (4) and (5) of subsection (b) of Section
710:10-7-2.2
and the following subparagraphs:
(i) Create
at least 100 new jobs at the state index wage provided in Section
3604(F)(2)
of Title 68; and
(ii) Invest at
least 10 times the investment cost in new depreciable property required in
Section
2902(B)(1)
of Title 68.
(3) Preparation of a fiscal and economic
impact of the project by the Commerce Department, in conjunction with the Tax
Commission.
(4) In the event it is
determined that the project has no adverse fiscal impact with a positive
economic impact, referral to the Incentive Approval Committee created in
Section
3603(b)
of Title 68 for review of the project.
(5) Approval of the project by the Incentive
Approval Committee for delay of exemption.
(6) Preparation of a contract between the
Commerce Department and the manufacturing facility awarded the delay of
exemption to be forwarded to the Ad Valorem Division of the Tax Commission for
monitoring of the contract's terms and conditions.
(d)
Ineligibility of exemption
delay. The delay of the exemption shall not be available for the
following
(1) Any job creation or investment
of new depreciable property that occurred prior to November 1, 2017, or the
date of the creation of the tax incentive district, whichever is
later.
(2) Electric power
generation facilities.
