1|ENGROSSED SENATE |
|BILL NO. 317 By: Pemberton of the Senate |
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| Sneed of the House |
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6| An Act relating to development incentives; amending |
| 62 O.S. 2021, Section 860, which relates to the Local |
7| Development Act; requiring the governing body to |
| submit an annual report for certain districts; |
8| providing date for submission; prescribing |
| information to be included in report; and providing |
9| an effective date. |
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12|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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13| SECTION 1. AMENDATORY 62 O.S. 2021, Section 860, is |
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14|amended to read as follows: |
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15| Section 860. A. A project plan may contain a provision that |
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16|certain local taxes may be subject to incentives or may be exempted |
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17|in reinvestment areas, historic preservation areas or enterprise |
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18|areas. |
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19| B. The governing body may grant incentives or exemptions from |
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20|local taxation only on the new investment made. No ad valorem tax |
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21|incentives or exemptions may be granted on the value of property |
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22|which has been assessed or which is subject to assessment prior to |
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23|the adoption of the project plan. No ad valorem tax incentives or |
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24|exemptions authorized in this section may be granted for retail |
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1|establishments. If a retail establishment is located in property |
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2|which otherwise qualifies for an incentive or exemption pursuant to |
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3|this section, the incentive or exemption shall not be allowed for |
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4|that portion of the property used for such retail establishment. As |
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5|used in this subsection, "retail establishment" shall not include an |
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6|establishment that provides lodging including but not limited to a |
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7|hotel, apartment hotel, public rooming house, or motel. No ad |
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8|valorem tax incentives or exemptions authorized in this section may |
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9|be granted if the property is located in an increment district or as |
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10|long as the property is subject to the ad valorem tax exemption for |
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11|new or expanding manufacturing facilities as authorized by Section |
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12|6B of Article X of the Oklahoma Constitution. In the event of |
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13|disposition by lease or sublease to a lessee not entitled to an ad |
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14|valorem tax exemption, the improvements placed thereon shall not be |
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15|entitled to an ad valorem tax exemption provided for in Section 850 |
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16|et seq. of this title. Except as otherwise provided by this |
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17|subsection, the incentives, or exemptions, which may be full or |
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18|partial, may be granted for a period not to exceed five (5) years. |
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19|With respect to an establishment, the business of which is described |
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20|by U.S. Industry Number 518210 of the North American Industry |
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21|Classification System (NAICS) Manual, 2017 revision, such incentives |
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22|or exemptions may be granted for a period not to exceed twenty-five |
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23|(25) years. |
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1| C. No incentives or exemptions may be granted to any business |
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2|or firm that is relocating from within the state and is subject to |
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3|or in the process of recruitment by two or more governmental |
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4|entities within the state unless the governmental entity in which |
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5|the business or firm does not locate adopts a resolution giving |
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6|their approval to the granting of incentives or exemptions to the |
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7|business or firm locating in the competing governmental entity. No |
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8|incentives or exemptions may be granted to an out-of-state business |
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9|or firm that is subject to or in the process of recruitment by two |
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10|or more governmental entities within the state except as otherwise |
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11|provided for in this subsection. The prohibition against incentives |
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12|or exemptions to a business or firm relocating within the state may |
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13|be waived upon application by the governing body to, and approval |
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14|of, the Director of the Oklahoma Department of Commerce. In order |
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15|for the Director to approve the waiver, the Director must find that |
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16|the incentives or exemptions are necessary and sufficient to attract |
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17|the business or firm and that the benefits generated by the business |
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18|location outweigh the costs of the business location. |
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19| D. A project plan may contain a provision that ad valorem taxes |
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20|may be exempted in a commercial historic preservation area that is |
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21|adjacent to and serves designated historical residential areas for |
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22|neighborhood commercial preservation purposes in order for the |
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23|neighborhood to retain its basic character and scale. No ad valorem |
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24|tax exemption may be granted on the value of property which has been |
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1|assessed or which is subject to assessment prior to the adoption of |
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2|the project plan. No ad valorem tax exemption shall be granted |
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3|pursuant to the provisions of this subsection for single-family |
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4|residences. The governing body may grant the exemption only on the |
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5|increase in value of the property. The exemptions may be granted |
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6|for a specific period of time as determined by a written agreement |
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7|between the property owners of the area and the governing body and |
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8|may be renewed. Uses of the property eligible for this exemption |
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9|may include but not be limited to commercial, office, or multifamily |
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10|residential use. |
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11| E. For increment districts in operation for nine (9) months or |
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12|more, on or before the ninetieth day following the end of each |
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13|fiscal year, the governing body of a city, town, or county shall |
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14|submit a report to the Oklahoma Department of Commerce. The |
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15|Department shall provide a copy of the report to any member of the |
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16|public upon request. The disclosure report shall include the |
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17|following information: |
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18| 1. The amount and source of revenue captured and apportioned |
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19|pursuant to the project plan; |
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20| 2. The amount and purpose of expenditures; |
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21| 3. The amount of principal and interest due on outstanding |
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22|bonded indebtedness; |
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23| 4. The tax increment base and current captured appraised value |
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24|or the other local tax or fee collections retained by the area; |
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1| 5. The captured appraised value or the other local tax or fee |
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2|collections shared by the city, town, or county and other taxing |
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3|entities, the total amount of tax increments received, and any |
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4|additional information necessary to demonstrate compliance with the |
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5|plan adopted by the city, town, or county; |
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6| 6. The name of the person who is currently in charge of the |
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7|implementation of the plan; and |
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8| 7. The names of the persons who have disclosed an interest as |
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9|required pursuant to Section 857 of this title and the interest |
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10|disclosed. |
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11| F. For those incentive districts in operation for nine (9) |
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12|months or more, on or before the ninetieth day following the end of |
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13|each fiscal year, the governing body of a city, town, or county |
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14|shall submit a report to the Oklahoma Department of Commerce. The |
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15|Department shall provide a copy of the report to any member of the |
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16|public upon request. The disclosure report shall include the |
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17|following information: |
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18| 1. The parties receiving incentives or exemptions; |
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19| 2. A general description of the property and the improvements |
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20|to be made; |
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21| 3. The portion and fair market value of the property to be |
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22|exempted or that portion of the local taxes to be subject to |
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23|incentives or to be exempted; |
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24| 4. The duration of the incentives or exemptions; |
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1| 5. Any additional information necessary to demonstrate |
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2|compliance with the tax incentives or exemptions; |
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3| 6. The name of the person who is currently in charge of the |
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4|implementation of the plan; and |
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5| 7. The names of the persons who have disclosed an interest as |
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6|required pursuant to Section 857 of this title and the interest |
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7|disclosed. |
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8| SECTION 2. This act shall become effective November 1, 2023. |
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9| Passed the Senate the 7th day of March, 2023. |
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| Presiding Officer of the Senate |
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13| Passed the House of Representatives the ____ day of __________, |
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14|2023. |
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| Presiding Officer of the House |
17| of Representatives |
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