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The Legislature enacted a
host of reforms designed to spur economic development by
helping new and existing businesses:
- SB 574, the Small
Employer Quality Jobs Incentives Act, extends the state's
landmark job creation act to smaller employers. The new
program offers cash incentives to certain businesses with
fewer than 90 employees if they create quality jobs.
Under existing law, only large employers qualify for
incentive payments.
- SB 237 allows businesses
the option of filing their franchise tax returns at the
same time corporate income tax returns are due,
simplifying the tax filing process.
- SB 344 changes the
income tax formula to lessen the tax burden for new
corporations which invest at least $200 million. The tax
will be based more on sales and less on property and
payroll.
- SB 344 expands the
five-year ad valorem exemption to benefit more
manufacturing facilities. Under old law, facilities had
to create at least 15 new jobs to qualify. Now, the
exemption will also apply to new corporations who invest
at least $200 million and maintain employment of at least
500 FTE.
- HB 1253 creates the
Small Business Capital Formation Incentive Act. Effective
1998, it provides an income tax credit of 20% of amounts
invested in certain small business capital companies or
ventures. Qualified companies must have capitalization of
at least $1 million.
- HB 1807 exempts sales
taxes on machinery and supplies used in coal mining
(effective July 1, 1998).
HJR 1024 creates a 30-member
Citizens' Task Force on Taxation to review the state's tax
system. The Governor, Pro Tempore and Speaker each appoint
ten members. The Task Force will submit a report by December
1, 1998.
The Legislature passed a
number of laws to benefit non-profit organizations and
charities:
- SB 344 exempts from
sales taxes certain non-profit organizations supported or
sponsored by churches.
- SB 459 amends the 1992
Oklahoma Charity Games Act to reform bingo tax
procedures. It lowers the tax rate on bingo faces from
1.5¢ to 1.0¢ (effective July 1, 1998); gives
organizations more time to remit taxes; requires
licensing of paid employees; prohibits licensure of
persons convicted of certain crimes; allows tax-exempt
educational organizations to conduct games; and allows
organizations to conduct two sessions per day.
- HB 1807 exempts
admission tickets to accredited museums from sales taxes,
if the savings are used by the museum for debt
service.
- HB 1807 exempts from
sales taxes certain biomedical research foundations and
community blood banks (effective July 1,
1998).
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