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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 2218 By: Deck
AS INTRODUCED
An Act relating to revenue and taxation; enacting the
Local Music Incentive Act of 2025; defining terms;
providing for incentive payment to certain eligible
entities; prescribing amount of incentive payment;
providing for computation of incentive payment
amounts; prescribing application procedures;
requiring Oklahoma Tax Commission to evaluate
applications; creating the Local Music Incentive
Revolving Fund; providing sources of revenue; stating
purpose of fund; prescribing procedures for
expenditures; providing for codification; providing
an effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4601 of Title 68, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Local Music
Incentive Act of 2025".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4602 of Title 68, unless there
is created a duplication in numbering, reads as follows:
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As used in this act:
1. "Eligible performance" means an event involving singing or
the playing of one or more musical instruments or a combination of
vocal performance and musical instrumental performance by a local
performer at an eligible venue;
2. "Eligible venue" means either an indoor or outdoor location
that is capable of hosting a musical performance, whether one person
or more, for vocal or instrumental works or both, and which either
sells or is capable of selling tangible personal property subject to
state or local sales tax, or sells or is capable of selling items
which would be or are subject to the mixed beverage gross receipts
tax. For purposes of this paragraph, an eligible venue may be owned
by a federally recognized Native American tribe if the tribe has
entered into a compact with the State of Oklahoma in order to remit
revenue derived from the operations of a tribal gaming facility
authorized pursuant to the Indian Gaming Regulatory Act, 25 U.S.C.,
Section 2701 et seq. or to remit some part of revenue derived from a
tax, levied by the tribal entity, with respect to sales of tangible
personal property at the venue or mixed beverage gross receipts tax
or its equivalent or both such tax types;
3. "Eligible venue entity" means the person or lawfully
recognized entity that owns or operates or owns and operates an
eligible venue and which is either a vendor for purposes of state
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sales tax collections or a remitter of mixed beverage gross receipts
tax or both such tax types;
4. "Local performer" means a resident of the State of Oklahoma
with respect to an individual, residents of the State of Oklahoma
with respect to two or more persons appearing at an eligible venue,
or a lawfully recognized business entity having Oklahoma residents
as the owner or owners of a majority of the voting equity interest
of the business entity;
5. "Medium size eligible venue" means a location that can
safely accommodate more than three hundred (300) persons but not
more than six hundred (600) persons;
6. "Minimum performance time" means the period of time
allocated to a local performer at the eligible venue for performance
of vocal music, instrumental music or both which shall be at least
thirty (30) minutes in duration. An eligible venue entity shall
make payment to the local performer either prior to the performance,
but not later than the day of the performance and the payment shall
be at least One Hundred Dollars ($100.00) for a solo artist
performing no longer than one (1) hour or One Hundred Dollars
($100.00) per hour for either a solo artist or a group or band if
the performance is longer than one (1) hour in duration;
7. "Mixed beverage gross receipts tax" means the levy imposed
pursuant to Section 5-105 of Title 37A of the Oklahoma Statutes or
with respect to an eligible tribal entity, a sales or equivalent tax
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imposed by the tribe at a facility at which gaming authorized
pursuant to the Indian Gaming Regulatory Act is authorized to be
conducted;
8. "Resident" means a person who occupies a dwelling located
within the state for at least six (6) months during a calendar year.
For purposes of this act, absence from the state resulting from
contractual obligations to perform at venues outside the state shall
not be disregarded in computation of the period of residency;
9. "Sales tax" means the levy imposed pursuant to Section 1354
of Title 68 of the Oklahoma Statutes or with respect to an eligible
tribal entity, a sales or equivalent tax imposed by the tribe at a
facility at which gaming authorized pursuant to the Indian Gaming
Regulatory Act is authorized to be conducted; and
10. "Smaller eligible venue" means a location that can safely
accommodate no more than three hundred (300) persons.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4603 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. An eligible venue entity may receive a rebate of either
sales tax or mixed beverage gross receipts tax or both such taxes
based upon such revenues collected by or remitted by the entity at
which the eligible performance occurs as further provided by this
section.
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B. A rebate of sales tax revenue shall be applicable to state
sales tax collected by the eligible venue entity from sales of
tangible personal property occurring during the period of time
beginning twelve (12) hours prior to the scheduled start time for a
performance by a local performer at the eligible venue and ending
twelve (12) hours after the scheduled start time for a performance
by a local performer at the eligible venue.
C. A rebate of mixed beverage gross receipts tax shall be
applicable to the mixed beverage gross receipts tax paid or remitted
by the eligible venue entity from sales of beverages subject to such
levy occurring during the period of time beginning twelve (12) hours
prior to the scheduled start time for a performance by a local
performer at the eligible venue and ending twelve (12) hours after
the scheduled start time for a performance by a local performer at
the eligible venue.
D. An eligible venue entity may apply for a rebate of either
sales tax or mixed beverage gross receipts tax or both such taxes
according to the provisions of this act no more often than quarterly
during each calendar year. The application shall be submitted to
the Oklahoma Tax Commission no later than the following dates:
1. April 20 for the First Quarter;
2. July 20 for the Second Quarter;
3. October 20 for the Third Quarter; and
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4. January 20 of the succeeding calendar year for the Fourth
Quarter.
E. The amount of the rebate incentive payment shall be:
1. Twenty-five percent (25%) of the applicable taxes as
prescribed by this act if the venue has a maximum capacity of three
hundred (300) persons; or
2. Fifty percent (50%) of the applicable taxes as prescribed by
this act if the venue has a maximum capacity greater than three
hundred (300) persons, but not greater than six hundred (600)
persons.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4604 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. An eligible venue entity may make application for a rebate
of either sales tax revenue or mixed beverage gross receipts tax
revenue or both on a form to be prescribed by the Oklahoma Tax
Commission for such purpose.
B. A copy of the applicable sales tax return or mixed beverage
gross receipts tax returns shall be attached or transmitted to the
Tax Commission with the application as the Tax Commission may
prescribe.
C. The amount of sales tax or mixed beverage gross receipts tax
to be paid in the form of an incentive shall not exceed the amounts
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as described pursuant to subsection B or subsection C of Section 3
of this act with respect to each tax type.
D. It shall be the duty of the eligible venue entity making
application for an incentive payment to be able to document the
amount of the applicable tax collected, with respect to sales tax,
or the amount of the applicable tax remitted or paid by the entity,
with respect to the mixed beverage gross receipts tax, based upon
the time periods as prescribed by subsection B or subsection C of
Section 3 of this act.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4605 of Title 68, unless there
is created a duplication in numbering, reads as follows:
The Tax Commission shall evaluate the application and may
request such information from the applicant as may be required to
document eligibility for the rebate. The Oklahoma Film and Music
Office shall provide such assistance to the Tax Commission as may be
required in order to implement the provisions of this act.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 4606 of Title 68, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Oklahoma Tax Commission to be designated the "Local Music
Incentive Revolving Fund". The fund shall be a continuing fund, not
subject to fiscal year limitations, and shall consist of all monies
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received by the Oklahoma Tax Commission from such sources as may be
provided by law. All monies accruing to the credit of said fund are
hereby appropriated and may be budgeted and expended by the Oklahoma
Tax Commission for the purpose of making rebate payments to an
eligible venue entity as provided by this act. Expenditures from
said fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterprise Services for approval and
payment.
SECTION 7. This act shall become effective July 1, 2025.
SECTION 8. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-1-12230 MAH 01/16/25