{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-891.12","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-891.12","heading":"For-profit businesses determination letter and","body":"agreements - Withholding taxes.\n\nA. As used in this section:\n\n1. “Estimated direct state benefits” means the tax revenues\n\nprojected by the Oklahoma Department of Commerce to accrue to the\n\nstate as a result of new direct jobs;\n\n2. “Estimated indirect state benefits” means the indirect new\n\ntax revenues projected by the Oklahoma Department of Commerce to\n\naccrue to the state, including, but not limited to, revenue\n\ngenerated from ancillary support jobs directly related to the\n\nprimary business;\n\n3. “Estimated direct state costs” means the costs projected by\n\nthe Department to accrue to the state as a result of new direct\n\njobs. Such costs shall include, but not be limited to:\n\na. the costs of education of new state resident children,\n\nb. the costs of public health, public safety and\n\ntransportation services to be provided to new state\n\nresidents,\n\nc. the costs of other state services to be provided to\n\nnew state residents, and\n\nd. the costs of other state services; and\n\n4. “Estimated indirect state costs” means the costs projected\n\nby the Department to accrue to the state as a result of new indirect\n\njobs. Such costs shall include, but not be limited to, costs\n\nenumerated in subparagraphs a, b, c and d of paragraph 3 of this\n\nsubsection.\n\nB. A for-profit business entity that would otherwise qualify to\n\nreceive or benefit from proceeds from the issuance of obligations by\n\nthe Authority from the Economic Development Pool shall be required\n\nto obtain a determination letter from the Oklahoma Department of\n\nCommerce that the business activity of the entity will result in a\n\npositive net benefit rate, to be computed by the Department of\n\nCommerce using a methodology which provides for the analysis of\n\nestimated direct state benefits, estimated indirect state benefits,\n\nestimated direct state costs and estimated indirect state costs.\n\nThe Oklahoma Department of Commerce shall use such information as it\n\ndetermines to be relevant for the analysis required by this\n\nsubsection including, but not limited to, the type of business\n\nactivity in which the entity is engaged or will be engaged, amount\n\nof capital investment, type of assets acquired or utilized by the\n\nbusiness entity, economic effect of the business activity within the\n\nrelevant geographic region and such other factors as the Department\n\ndetermines to be relevant. The Oklahoma Department of Commerce may\n\nuse information regarding the business entity alone or in\n\nconjunction with relevant information regarding other business\n\nactivity in a geographically relevant area surrounding the principal\n\nbusiness location of the primary business entity in order to perform\n\nthe computation of the net benefit rate. If the result of the\n\nanalysis is a positive net benefit rate, the business entity shall\n\nbe allowed to capture withholding taxes associated with new jobs or\n\nwith existing jobs as otherwise provided by this act. The Oklahoma\n\nDepartment of Commerce shall transmit a determination letter to the\n\nauthorized representative of the business entity and shall also\n\ntransmit a copy of the determination letter to the Oklahoma Tax\n\nCommission and to the Oklahoma Development Finance Authority,\n\nregardless of whether the result is a positive or negative net\n\nbenefit rate. The Oklahoma Development Finance Authority shall not\n\nallow a business entity to use captured withholding tax revenues for\n\npurposes of any pooled financing otherwise authorized by this act\n\nunless the Oklahoma Department of Commerce has previously\n\ntransmitted a determination letter that reveals a positive net\n\nbenefit rate for the business entity.\n\nC. Any for-profit business entity that receives proceeds from\n\nthe issuance of any obligations by the Authority from the Economic\n\nDevelopment Pool may be required by the applicable local government\n\nentity to enter into such agreements as may be required between the\nt of Commerce has previously\n\ntransmitted a determination letter that reveals a positive net\n\nbenefit rate for the business entity.\n\nC. Any for-profit business entity that receives proceeds from\n\nthe issuance of any obligations by the Authority from the Economic\n\nDevelopment Pool may be required by the applicable local government\n\nentity to enter into such agreements as may be required between the\n\nentity, the local government entity, the Authority and the Oklahoma\n\nTax Commission to provide for the segregation of withholding taxes\n\nattributable to new direct jobs created or existing payroll retained\n\nby the for-profit business entity in connection with the asset or\n\nassets acquired, constructed or improved with such proceeds.\n\nD. The amount of withholding taxes subject to the provisions of\n\nthis section shall, together with other revenue sources or\n\ncommitments and undertakings by the for-profit business entity or\n\nthird parties, be sufficient to make payment of any required\n\nprincipal, interest, adequate reserves or other authorized costs for\n\nthe borrowing by the Authority.\n\nE. The Authority shall have such power of approval regarding\n\nthe amount and duration of withholding tax segregation pursuant to\n\nthe provisions of this section in order to ensure payment of its\n\nobligations and to promote the marketability of such obligations.\n\nF. The Authority shall obtain information from the for-profit\n\nbusiness entity as may be required in order to determine the\n\nnecessary amount of segregated withholding taxes attributable to new\n\ndirect jobs or existing payroll.\n\nG. The Oklahoma Tax Commission shall determine with respect to\n\nthe withholding taxes attributable to the income of employees\n\nengaged in new direct jobs or existing jobs for a for-profit\n\nbusiness entity participating in a pooled financing pursuant to the\n\nOklahoma Community Economic Development Pooled Finance Act the\n\namount of such withholding taxes required to be deposited to the\n\ncredit of the Community Economic Development Pooled Finance\n\nRevolving Fund.\n\nH. The Oklahoma Tax Commission shall make a deposit in the\n\nCommunity Economic Development Pooled Finance Revolving Fund in\n\naccordance with any applicable agreement entered into by a for-\n\nprofit business entity participating in a pooled financing pursuant\n\nto the Oklahoma Community Economic Development Pooled Finance Act.\n\nI. No for-profit business entity that benefits from proceeds of\n\nobligations issued by the Authority from the Economic Development\n\nPool may receive or continue to receive incentive payments pursuant\n\nto the Oklahoma Quality Jobs Program Act or claim any investment tax\n\ncredits otherwise authorized pursuant to Section 2357.4 of Title 68\n\nof the Oklahoma Statutes during the period of time that any\n\nwithholding taxes attributable to the payroll of such entity are\n\nbeing paid to the Community Economic Development Pooled Finance\n\nRevolving Fund or in any manner used for the payment of principal,\n\ninterest or other costs associated with any obligations issued by\n\nthe Authority pursuant to the provisions of this act.","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":"f0c304a11ee20628c469e6505be37258e55a43b26eac592c0cd7bab44f572b69","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-891.11","next":"us-ok/okla.-stat.-tit.-62-62-891.13"},"notice":"GroundRules: Original legal text. Not legal advice."}