{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-860","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-860","heading":"Incentives or exemptions from local taxation","body":"A. A project plan may contain a provision that certain local\n\ntaxes may be subject to incentives or may be exempted in\n\nreinvestment areas, historic preservation areas or enterprise areas.\n\nB. The governing body may grant incentives or exemptions from\n\nlocal taxation only on the new investment made. No ad valorem tax\n\nincentives or exemptions may be granted on the value of property\n\nwhich has been assessed or which is subject to assessment prior to\n\nthe adoption of the project plan. No ad valorem tax incentives or\n\nexemptions authorized in this section may be granted for retail\n\nestablishments. If a retail establishment is located in property\n\nwhich otherwise qualifies for an incentive or exemption pursuant to\n\nthis section, the incentive or exemption shall not be allowed for\n\nthat portion of the property used for such retail establishment. As\n\nused in this subsection, “retail establishment” shall not include an\n\nestablishment that provides lodging including but not limited to a\n\nhotel, apartment hotel, public rooming house, or motel. No ad\n\nvalorem tax incentives or exemptions authorized in this section may\n\nbe granted if the property is located in an increment district or as\n\nlong as the property is subject to the ad valorem tax exemption for\n\nnew or expanding manufacturing facilities as authorized by Section\n\n6B of Article X of the Oklahoma Constitution. In the event of\n\ndisposition by lease or sublease to a lessee not entitled to an ad\n\nvalorem tax exemption, the improvements placed thereon shall not be\n\nentitled to an ad valorem tax exemption provided for in Section 850\n\net seq. of this title. Except as otherwise provided by this\n\nsubsection, the incentives, or exemptions, which may be full or\n\npartial, may be granted for a period not to exceed five (5) years.\n\nWith respect to an establishment, the business of which is described\n\nby U.S. Industry Number 518210 of the North American Industry\n\nClassification System (NAICS) Manual, 2017 revision, such incentives\n\nor exemptions may be granted for a period not to exceed twenty-five\n\n(25) years.\n\nC. No incentives or exemptions may be granted to any business\n\nor firm that is relocating from within the state and is subject to\n\nor in the process of recruitment by two or more governmental\n\nentities within the state unless the governmental entity in which\n\nthe business or firm does not locate adopts a resolution giving\n\ntheir approval to the granting of incentives or exemptions to the\n\nbusiness or firm locating in the competing governmental entity. No\n\nincentives or exemptions may be granted to an out-of-state business\n\nor firm that is subject to or in the process of recruitment by two\n\nor more governmental entities within the state except as otherwise\n\nprovided for in this subsection. The prohibition against incentives\n\nor exemptions to a business or firm relocating within the state may\n\nbe waived upon application by the governing body to, and approval\n\nof, the Director of the Oklahoma Department of Commerce. In order\n\nfor the Director to approve the waiver, the Director must find that\n\nthe incentives or exemptions are necessary and sufficient to attract\n\nthe business or firm and that the benefits generated by the business\n\nlocation outweigh the costs of the business location.\n\nD. A project plan may contain a provision that ad valorem taxes\n\nmay be exempted in a commercial historic preservation area that is\n\nadjacent to and serves designated historical residential areas for\n\nneighborhood commercial preservation purposes in order for the\n\nneighborhood to retain its basic character and scale. No ad valorem\n\ntax exemption may be granted on the value of property which has been\n\nassessed or which is subject to assessment prior to the adoption of\n\nthe project plan. No ad valorem tax exemption shall be granted\n\npursuant to the provisions of this subsection for single-family\nneighborhood commercial preservation purposes in order for the\n\nneighborhood to retain its basic character and scale. No ad valorem\n\ntax exemption may be granted on the value of property which has been\n\nassessed or which is subject to assessment prior to the adoption of\n\nthe project plan. No ad valorem tax exemption shall be granted\n\npursuant to the provisions of this subsection for single-family\n\nresidences. The governing body may grant the exemption only on the\n\nincrease in value of the property. The exemptions may be granted\n\nfor a specific period of time as determined by a written agreement\n\nbetween the property owners of the area and the governing body and\n\nmay be renewed. Uses of the property eligible for this exemption\n\nmay include but not be limited to commercial, office, or multifamily\n\nresidential use.\n\nE. For increment districts in operation for nine (9) months or\n\nmore, on or before the ninetieth day following the end of each\n\nfiscal year, the governing body of a city, town, or county shall\n\nsubmit a report to the Oklahoma Department of Commerce. The\n\nDepartment shall provide a copy of the report to any member of the\n\npublic upon request. The disclosure report shall include the\n\nfollowing information:\n\n1. The amount and source of revenue captured and apportioned\n\npursuant to the project plan;\n\n2. The amount and purpose of expenditures;\n\n3. The amount of principal and interest due on outstanding\n\nbonded indebtedness;\n\n4. The tax increment base and current captured appraised value\n\nor the other local tax or fee collections retained by the area;\n\n5. The captured appraised value or the other local tax or fee\n\ncollections shared by the city, town, or county and other taxing\n\nentities, the total amount of tax increments received, and any\n\nadditional information necessary to demonstrate compliance with the\n\nplan adopted by the city, town, or county;\n\n6. The name of the person who is currently in charge of the\n\nimplementation of the plan; and\n\n7. The names of the persons who have disclosed an interest as\n\nrequired pursuant to Section 857 of this title and the interest\n\ndisclosed.\n\nF. For those incentive districts in operation for nine (9)\n\nmonths or more, on or before the ninetieth day following the end of\n\neach fiscal year, the governing body of a city, town, or county\n\nshall submit a report to the Oklahoma Department of Commerce. The\n\nDepartment shall provide a copy of the report to any member of the\n\npublic upon request. The disclosure report shall include the\n\nfollowing information:\n\n1. The parties receiving incentives or exemptions;\n\n2. A general description of the property and the improvements\n\nto be made;\n\n3. The portion and fair market value of the property to be\n\nexempted or that portion of the local taxes to be subject to\n\nincentives or to be exempted;\n\n4. The duration of the incentives or exemptions;\n\n5. Any additional information necessary to demonstrate\n\ncompliance with the tax incentives or exemptions;\n\n6. The name of the person who is currently in charge of the\n\nimplementation of the plan; and\n\n7. The names of the persons who have disclosed an interest as\n\nrequired pursuant to Section 857 of this title and the interest\n\ndisclosed.","path":["OK Code","Title 62"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os62.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"60bfed8553fe7b8ef889d07b4d242ca291259728609eb26bf1a3a0784745fad5","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-859","next":"us-ok/okla.-stat.-tit.-62-62-861"},"notice":"GroundRules: Original legal text. Not legal advice."}