2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-1357.21. Broadband exemption – Administered as rebate - Qualifications.

A. The exemption authorized by the provisions of paragraph 43 of Section 1357 of this title shall be administered as a rebate.
B. No claim for a rebate shall be approved unless the equipment was purchased in order to establish or expand broadband services in underserved or unserved areas. As used in this subsection and for purposes of the exemption authorized by paragraph 43 of Section 1357 of this title, “broadband”, “underserved” and “unserved” shall mean those services and areas as defined in Section 139.102 of Title 17 of the Oklahoma Statutes.
C. No claim for rebate shall be approved unless the claimant establishes that as a result of the equipment purchase there has been net growth in the number of potential customers served in underserved or unserved areas.
D. In order to qualify for rebate payments during the fiscal year beginning July 1, 2022, equipment or other items qualifying for the exemption authorized by paragraph 43 of Section 1357 of this title must be purchased and placed in service between January 1, 2022, and December 31, 2023. Claims for rebates of sales tax or use tax paid for such equipment purchased in calendar year 2022 shall be filed with the Oklahoma Tax Commission not later than September 1, 2023, and claims for rebates for sales or use tax paid for such equipment purchased in calendar year 2023 shall be filed with the Oklahoma Tax Commission not later than September 1, 2024. All claims shall be processed by the Tax Commission not later than March 1, 2025.
E. Qualifying purchases do not include supporting or ancillary functions, such as office operations, field operations, marketing, transportation, warehousing, data storage, or similar operations that do not directly result in the distribution of broadband Internet service. Property directly used or consumed in or during the provision, creation, or production of a data processing service or information service, or property the provider grants, sells, or leases to the customer for use within the home or establishment receiving broadband is not eligible for a rebate under this section.
F. The total amount of rebates that may be paid shall not exceed Forty-two Million Dollars ($42,000,000.00) with Thirty-one Million Five Hundred Thousand Dollars ($31,500,000.00) of the total reserved for eligible projects serving counties having a population density of fewer than one hundred persons per square mile and Ten Million Five Hundred Thousand Dollars ($10,500,000.00) of the total reserved for eligible projects serving counties having a population density of one hundred or more persons per square mile.
G. The amount of rebate paid to each claimant shall be computed by dividing the applicable total rebate pool amount by the dollar amount of claims timely received by the Tax Commission with respect to each fiscal year, and paying in full the amount of the claims submitted if the amount of claims are equal to, or less than, the total rebate pool, or a pro rata share if the total amount of claims submitted exceed the rebate pool.
H. For the fiscal year beginning July 1, 2023, and all subsequent fiscal years, the total amount of rebate that may be paid shall not exceed Forty-two Million Dollars ($42,000,000.00).
I. Claims for rebate shall be on such forms as the Oklahoma Tax Commission may prescribe for such purpose and shall contain any required information or supporting documentation the Commission requires to verify eligibility for the rebate payment.
J. The Oklahoma Department of Commerce and the Oklahoma Broadband Office shall use information provided by the Oklahoma Tax Commission to prepare a report to identify the qualifying rural broadband projects completed with the equipment purchased together with the location of the equipment and the geographic areas served as a result of the equipment purchases, including the total number of potential new customers receiving qualifying broadband services resulting from the project. The report shall not identify any entity by name that purchased equipment.
K. The report shall be filed not later than April 1, 2025, with respect to rebates paid for equipment purchases made during calendar years 2022 and 2023. The Oklahoma Tax Commission shall make information available as required by subsection J of this section as claims are completed to assist with the timely preparation of the report.
L. The report shall be filed with the Governor, the Speaker of the House of Representatives and the President Pro Tempore of the Senate and posted on the Oklahoma Broadband Office website.
Added by Laws 2021, c. 512, § 2, eff. July 1, 2021. Amended by Laws 2023, 1st Ex. Sess., c. 44, § 2, emerg. eff. June 2, 2023.