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| Tourism Development Act Information |
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The Oklahoma Tourism Development Act (Senate Bill 3, Section 2357.34 of Title 68) provides incentives for qualified new or expanding tourism facilities and attractions.
The program applies to:
- recreational or entertainment facilities,
- areas of natural phenomenon or scenic beauty,
- theme parks,
- amusement or entertainment parks,
- indoor or outdoor play or music shows,
- botanical gardens, or
- cultural or educational centers.
- lodging facilities, unless the facilities constitute a portion of a tourism attraction project and represent less than fifty percent (50%) of the total approved costs of the tourism attraction project,
- facilities that are primarily devoted to the retail sale of goods, unless the goods are created at the site of the tourism attraction project or if the sale of goods is incidental to the tourism project,
- facilities that are not open to the general public,
- facilities that do not serve as a likely destination where individuals who are not residents of this state would remain overnight in commercial lodging at or near the tourism attraction project,
- facilities owned by the State of Oklahoma or a political subdivision of this state, or
- facilities established for the purpose of conducting legalized gambling. However, a facility regulated under Section 200 et seq. Of Title 3A of the Oklahoma Statutes shall be a tourism attraction for purposes of this act for any approved project as outlined above or for an approved project relating to pari-mutuel racing at the facility and not for establishing a casino or for offering casino-style gambling.
- Must attract at least Fifteen percent (15%) of its visitors from among persons that are not residents of this state
- Must have cost in excess of Five Hundred Thousand Dollars ($500,000)
- Must have a significant and positive economic impact on this state considering, among other factors, the extent to which the tourism attraction project will compete directly with existing tourism attractions in this state, and the amount by which increased tax revenues from the tourism project will exceed the income tax credit allowed by this program
- Must produce sufficient revenues and public demand to be operating and open to the public on a regular and persistent basis
- Must not adversely affect existing employment in this state
An approved company whose agreement provides that it shall expend approved costs in excess of One Million Dollars ($1,000,000.00) shall be entitled to an income tax or sales tax credit if the company certifies to the Oklahoma Tax Commission that it has expended at least One Million Dollars ($1,000,000.00) in approved costs and the Director certifies that the approved company is in compliance with the Oklahoma Tourism Development Act. The Tax Commission shall then issue a tax credit memorandum to the approved company granting an income tax credit or sales tax credit in the amount of twenty-five percent (25%) of the approved costs. The credit on all subsequent additional certified approved costs shall in the amount of twenty-five percent (25%) of the costs.
An income tax credit allowed shall be applied to the amount of income taxes due from the approved company. If the amount of an income tax credit allowed pursuant to the provisions of this section exceeds the amount of income taxes due for the year in which the credit is granted, the amount of the credit not used may be carried forward for a period not to exceed ten (10) years.
A sales tax credit allowed may be used to offset a portion of the reported state sales tax liability of the approved company for all sales tax reporting periods following the issuance of the credit memorandum subject to the following limitations: only increased state sales tax liability as defined in this act may be offset by the issued credit, an approved company whose agreement provides that it shall expend approved costs of more than Five Hundred Thousand Dollars $500,000.00) but less than One Million Dollars ($1,000,000.00) shall be entitled to use only twenty percent (20%) of the amount of each issued credit to offset increased state sales tax liability during each calendar year, plus the amount of any unused credit carried forward from a prior calendar year, and an approved company whose agreement provides that it shall expend approved costs in excess of One Million Dollars ($1,000,000.00) shall be entitled to use only ten percent (10%) of the amount of each issued credit to offset increased state sales tax liability during each calendar year, plus the amount of any unused credit carried forward from a prior calendar year.
Click here to view a printable application (requires Adobe Acrobat Reader
).To request additional information about this program, contact Doug Hawthorne at the Oklahoma Tourism and Recreation Department at 405-230-8482.
