2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-3913. Definitions.

As used in the 21st Century Quality Jobs Incentive Act:
1. "Basic industry" means:
a.
a basic industry as defined under the Oklahoma Quality Jobs Program Act in divisions (1) through (9) of subparagraph a of paragraph 1 of subsection A of Section 3603 of Title 68 of the Oklahoma Statutes, excluding those activities described in division (10) of subparagraph a of paragraph 1 of subsection A of Section 3603 of Title 68 of the Oklahoma Statutes. For the purposes of this act, if a determination is required by subdivision (b) of division (7) or by division (9) of subparagraph a of paragraph 1 of subsection A of Section 3603 of Title 68 of the Oklahoma Statutes, such determination shall be:
(1)
made by the Oklahoma Department of Commerce and not by the Incentive Approval Committee, and
(2)
based on a requirement that those industries that are required to have at least seventy-five percent (75%) of total sales to out-of-state customers or buyers for purposes of the Quality Jobs Program Act shall only be required to have fifty percent (50%) of total sales, as determined by the Department of Commerce, to out-of-state customers or buyers, to in-state customers or buyers if the product or service is resold by the purchaser to an out-of-state customer or buyer for ultimate use, or to the federal government, for the purposes of this act,
b.
(1)
those specialty hospitals (except psychiatric and substance abuse hospitals) defined or classified in the NAICS Manual under U.S. Industry Group No. 62231, and
(2)
those performing arts companies defined or classified in the NAICS Manual under U.S. Industry Group No.7111, and
c.
an establishment classified in this subparagraph which has or will have within one (1) year sales of at least fifty percent (50%) of its total sales, as determined by the Department of Commerce, to out-of-state customers or buyers, to in-state customers or buyers if the product or service is resold by the purchaser to an out-of-state customer or buyer for ultimate use, or to the federal government:
(1)
those electric utility activities defined or classified in the NAICS Manual under U.S. Industry Group No. 2211 which meet the requirements of subdivisions a, b and d of division 2 of subparagraph a of paragraph 1 of Section 3603 of Title 68 of the Oklahoma Statutes,
(2)
those heavy and civil engineering construction activities defined or classified in the NAICS Manual under U.S. Industry Group No. 237,
(3)
those motion picture and video industries defined or classified in the NAICS Manual under U.S. Industry Group No. 5121,
(4)
those sound recording industries defined or classified in the NAICS Manual under U.S. Industry Group No. 5122,
(5)
those securities, commodity contracts and other financial investment activities defined or classified in the NAICS Manual under U.S. Industry Group No. 523,
(6)
those insurance carriers and related activities defined or classified in the NAICS Manual under U.S. Industry Group No. 524,
(7)
those funds, trusts and other financial vehicles defined or classified in the NAICS Manual under U.S. Industry Group No. 525,
(8)
those professional, scientific and technical services defined or classified in the NAICS Manual under U.S. Industry Group Nos. 5411, 5412, 5413, 5414, 5418 and 5419, and
(9)
those electronic and precision equipment repair and maintenance activities defined or classified in the NAICS Manual under U.S. Industry Group No. 8112;
2. "Establishment" means any business, no matter what legal form, including, but not limited to, a sole proprietorship, partnership, corporation, or limited liability corporation;
3. "Estimated direct state benefits" means the tax revenues projected by the Oklahoma Department of Commerce to accrue to the state as a result of new direct jobs;
4. “Estimated indirect state benefits” means the indirect new tax revenues projected by the Oklahoma Department of Commerce to accrue to the state, including, but not limited to, revenue generated from ancillary support jobs directly related to the establishment;
5. "Estimated direct state costs" means the costs projected by the Department to accrue to the state as a result of new direct jobs. Such costs shall include, but not be limited to:
a.
the costs of education of new state resident children,
b.
the costs of public health, public safety and transportation services to be provided to new state residents,
c.
the costs of other state services to be provided to new state residents, and
d.
the costs of other state services;
6. “Estimated indirect state costs” means the costs projected by the Department to accrue to the state as a result of new indirect jobs. Such costs shall include, but not be limited to, costs enumerated in subparagraphs a, b, c and d of paragraph 5 of this subsection;
7. "Estimated net direct state benefits" means the estimated direct state benefits less the estimated direct state costs;
8. “Estimated net direct and indirect state benefits” means the estimated direct and indirect state benefits less the estimated direct and indirect state costs;
9. "Full-time employment" means employment of persons residing in this state and working for thirty (30) hours per week or more in this state, which has a minimum six-month duration during any twelve-month period;
10. "Gross taxable payroll" means wages, as defined in Section 2385.1 of Title 68 of the Oklahoma Statutes, for new direct jobs;
11. "Initial net benefit rate" means the estimated net direct state benefits computed as a percentage of gross payroll; provided:
a.
the initial net benefit rate may be variable and shall not exceed seven percent (7%), and
b.
in no event shall incentive payments, cumulatively, exceed the estimated net direct state benefits; and
12. "Fulfillment net benefit rate" means the estimated net direct and indirect state benefits computed as a percentage of gross payroll after the completion of the first twelve (12) quarters or until the establishment reaches ten new direct jobs, whichever occurs first, provided:
a.
the fulfillment net benefit rate may be variable and shall not exceed ten percent (10%), and
b.
in no event shall incentive payments, cumulatively, exceed the estimated net direct and indirect state benefits; and
13. "New direct job" means full-time employment which did not exist in this state prior to the date of approval, by the Oklahoma Department of Commerce, of an application made pursuant to this act. A job shall be deemed to exist in this state prior to approval of an application if the activities and functions for which the particular job exists have been ongoing at anytime within six (6) months prior to such approval.
Added by Laws 2009, c. 285, § 3, eff. Nov. 1, 2009.