§ 68-3951 — Quarterly rebate payments — Qualifications — Yearly limit

Oklahoma § 68-3951

• Jurisdiction: Oklahoma
• Title 68: Revenue And Taxation

Text

— Applications. A. An establishment which meets the qualifications specified in the Oklahoma Five Major Sports Leagues Rebate Program Act may receive quarterly rebate payments from the Oklahoma Tax Commission pursuant to the provisions of the Oklahoma Quality Jobs Program Act; provided, such an establishment defined or classified in the NAICS Manual under U.S. Industry No. 711211 (2007 version) and which is a professional sports team from one of the five major sports leagues (National Football League, or NFL; National Basketball Association, or NBA; National Hockey League, or NHL; Major League Baseball, or MLB; and Major League Soccer, or MLS) may receive quarterly rebate payments for the period of time that the establishment is located and performs in this state. The amount of payment shall be equal to the net benefit rate multiplied by the actual gross payroll of sports-league jobs for a calendar quarter as verified by the Oklahoma Employment Security Commission. 1. Any establishment or entity with a NAICS code classified as 711211 and which is a professional sports team from one of the five major sports leagues (NFL, NBA, NHL, MLB, and MLS) that entered into a contract for the Quality Jobs Incentive Program with the Oklahoma Department of Commerce shall only be eligible to qualify for this program once the Quality Jobs contract expires or is terminated. 2. Based upon the effective date upon which the first rebate payment is to be received, an establishment or entity may receive quarterly rebate payments. However, the total yearly (or four consecutive) rebate payments shall not exceed Ten Million Dollars ($10,000,000.00) in any single year. 3. As used in this act, “sports-league jobs” means: a. full-time-equivalent employment in this state in an establishment which has qualified to receive a payment pursuant to the provisions of the Oklahoma Five Major Sports Leagues Rebate Program Act, and b. shall include full-time-equivalent employment in this state of employees who are employed by an employment agency or similar entity other than the establishment which has qualified to receive a payment and who are leased or otherwise provided under contract to the qualified establishment if the job otherwise qualifies as a sports-league job. Sports-league jobs shall not include compensation paid to an employee or independent contractor for an athletic contest conducted in the state if the compensation is paid by an entity that does not have its principal place of business in the state or that does not own real or personal property having a market value of at least One Million Dollars ($1,000,000.00) located in the state, and the employees or independent contractors of such entity are compensated to compete against the employees or independent contractors of an establishment that qualifies for rebate payments pursuant to this act and which is organized under Oklahoma law or that is lawfully registered to do business in the state and which does have its principal place of business located in the state and owns real or personal property having a market value of at least One Million Dollars ($1,000,000.00) located in the state. B. In order to receive rebate payments, an establishment shall apply to the Oklahoma Department of Commerce. The application shall be on a form prescribed by the Department and shall contain such information as may be required by the Department to determine if the applicant is qualified. C. Except as otherwise provided by this section, in order to qualify to receive payments, the establishment applying shall be required to: 1. Have an annual gross payroll for sports-league jobs projected by the Department to equal or exceed Ten Million Dollars ($10,000,000.00) within one (1) year of the first complete calendar quarter following the start date; and 2. Have a number of full-time-equivalent employees subject to the tax imposed by Section 2355 of Title 68 of the Oklahoma Statutes and working an annual average of thirty (30) or more hours per week in sports-league jobs located in this state equal to or in excess of eighty percent (80%) of the total number of sports-league jobs. D. Upon approval of an application, the Department shall notify the Tax Commission and shall provide it with a copy of the contract and the results of the cost-benefit analysis. The Tax Commission may require the qualified establishment to submit additional information as may be necessary to administer the provisions of the Oklahoma Five Major Sports Leagues Rebate Program Act. The approved establishment shall file quarterly claims with the Tax Commission and shall continue to file such quarterly claims during the period in which the establishment or entity from one of the five major sports leagues is located and performs in this state to show its continued eligibility for rebate payments, or until it is no longer qualified to receive rebate payments. The establishment or entity may be audited by the Tax Commission to verify eligibility. Once the establishment or entity is approved, an agreement shall be deemed to exist between the establishment and this state, requiring the continued rebate payment to be made as long as the establishment or entity retains its eligibility as defined in and established pursuant to this section and within the limitations contained in the Oklahoma Five Major Sports Leagues Rebate Program Act, which existed at the time of approval. An establishment or entity described in this subsection shall be required to repay all rebate payments received under the Oklahoma Five Major Sports Leagues Rebate Program Act if the establishment or entity is determined by the Tax Commission to no longer have business operations in the state within three (3) years from the beginning of the calendar quarter for which the first rebate payment claim is filed. E. For any contract executed by an establishment or entity pursuant to this act, five percent (5%) of the quarterly rebate payment amount shall be transferred by the Tax Commission to the Oklahoma Quick Action Closing Fund.

Legislative History

Added by Laws 2024, c. 298, § 2, eff. Nov. 1, 2024.