{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-891.18","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-891.18","heading":"Local government entity to obtain a determination","body":"letter – Positive net benefit rate – 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 and capital spending associated\n\nwith one or more for-profit business entities, federal government\n\ndefense entities and infrastructure development by one or more local\n\ngovernment entities;\n\n2. \"Estimated indirect state benefits\" means the indirect new\n\ntax revenues projected by the Department to accrue to the state\n\nincluding, but not limit to, revenue generated from ancillary\n\nsupport jobs directly related to the new direct jobs, capital\n\nspending and infrastructure spending;\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. The costs shall include, but not be limited to:\n\na. the costs of education for new state resident\n\nchildren,\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 on new indirect\n\njobs. The 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. An eligible local government entity in partnership with one\n\nor more for-profit business entities and/or federal government\n\ndefense entities that would otherwise qualify to receive or benefit\n\nfrom proceeds from the issuance of obligations by the Authority from\n\nthe Public-Private Partner Development Pool shall be required to\n\nobtain a determination letter from the Department that the\n\ninfrastructure development will result in a positive net benefit\n\nrate, to be computed by the Department using a methodology which\n\nprovides for the analysis of estimated direct state benefits,\n\nestimated indirect state benefits, estimated direct state costs and\n\nestimated indirect state costs. The Department shall use such\n\ninformation as it determines to be relevant for the analysis\n\nrequired by this subsection including, but not limited to, the type\n\nof infrastructure development, the business activities in which the\n\nparticipating for-profit business entities are engaged or will be\n\nengaged, the amount of capital investment, type of assets acquired\n\nor utilized by the participating business entities, economic effect\n\nof the business activity within the relevant geographic region and\n\nany other factors as the Department deems relevant. The Department\n\nmay use information regarding the infrastructure development alone\n\nor in conjunction with relevant information regarding other business\n\nactivity in a geographically relevant area surrounding the\n\ninfrastructure development or the location of the participating for-\n\nprofit business entities in order to perform the computation of the\n\nnet benefit rate. If the result of the analysis is a positive net\n\nbenefit rate, the applying local government entity shall be allowed\n\nto capture withholding taxes associated with new jobs or with\n\nexisting jobs associated with the participating for-profit business\n\nentities as otherwise provided by this act. The Department shall\n\ntransmit a determination letter to the authorized representative of\n\nthe local government entity and shall also transmit a copy of the\n\ndetermination letter to the Oklahoma Tax Commission and to the\n\nOklahoma Development Finance Authority notwithstanding the positive\n\nor negative result of the net benefit rate. The Authority shall not\n\nallow a local government entity to use captured withholding tax\n\nrevenues for purposes of any pooled financing otherwise authorized\nthe local government entity and shall also transmit a copy of the\n\ndetermination letter to the Oklahoma Tax Commission and to the\n\nOklahoma Development Finance Authority notwithstanding the positive\n\nor negative result of the net benefit rate. The Authority shall not\n\nallow a local government entity to use captured withholding tax\n\nrevenues for purposes of any pooled financing otherwise authorized\n\nby this act unless the Department has previously transmitted a\n\ndetermination letter that reveals a positive net benefit rate for\n\nthe Public-Private Partner Development Pool project.\n\nC. Any for-profit business entity that participates in the\n\nPublic-Private Partner Development Pool may be required by the\n\napplicable local government entity to enter into such agreements as\n\nmay be required between the entity, the local government entity, the\n\nAuthority and the Oklahoma Tax Commission to provide for the\n\nsegregation of withholding taxes.\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\nborrowing by the Authority.\n\nE. The Authority shall have the power of approval regarding the\n\namount and duration of withholding tax segregation pursuant to the\n\nprovisions 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\n\nparticipating for-profit business entities as may be required in\n\norder to determine the necessary amount of segregated withholding\n\ntaxes attributable to new direct 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 one or more for-\n\nprofit business entities participating in a pooled financing\n\npursuant to the Oklahoma Community Economic Development Pooled\n\nFinance Act the amount of such withholding taxes required to be\n\ndeposited to the credit of the Community Economic Development Pooled\n\nFinance Revolving 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 with one or\n\nmore eligible local government entities in conjunction with\n\nparticipating for-profit business entities participating in a pooled\n\nfinancing pursuant to the Oklahoma Community Economic Development\n\nPooled Finance Act.\n\nI. No for-profit business entity that participates from\n\nproceeds of obligations issued by the Authority from the Public-\n\nPrivate Partner Development Pool may receive or continue to receive\n\nincentive payments pursuant to the Economic Development Pool, the\n\nOklahoma 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 the 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":"e867187eff98f45dafac3c3054c6c1f8d541f1e85fe017ba6df52a5fb9c39f1f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-891.17","next":"us-ok/okla.-stat.-tit.-62-62-891.19"},"notice":"GroundRules: Original legal text. Not legal advice."}