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SENATE FLOOR VERSION - SB1998 SFLR Page 1
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SENATE FLOOR VERSION
February 18, 2026
AS AMENDED
SENATE BILL NO. 1998 By: Coleman
[ incentives - eligible expenses - limit - effective
date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 4303, is
amended to read as follows:
Section 4303. As used in the Oklahoma Quality Events Incentive
Act:
1. “Certified sponsor” means an entity or organization
authorized to promote and conduct a quality event, which is
incurring expenses for the promotion of such event to be conducted
within the corporate limits of an eligible municipality or an
unincorporated area within a county;
2. “Economic impact study” means a study which includes:
a. a description and, if applicable, history of the
quality event,
b. information regarding the site selection process for
the quality event,
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c. an estimate of the expenses anticipated to be incurred
in connection with hosting the quality event,
d. an estimate of the total gross sales made by vendors
during any period of time during which no quality
event activity occurs,
e. a detailed estimate of the anticipated increase in
sales tax revenue directly attributable to the quality
event, and
f. the general economic impact likely to occur as a
result of the preparation for, occurrence of, and any
activity occurring in connection with the dissolution
of, a quality event;
3. “Eligible local support amounts” means:
a. any payment made by a local government entity or
transfer of monies from the general fund or transfer
of tax revenues derived from a locally imposed tax to
a certified sponsor for the purpose of attracting,
promoting, advertising, organizing, conducting, or
otherwise supporting a quality event, or
b. any direct payment made by a certified sponsor to a
for-profit or nonprofit entity, other than the host
community, for the purpose of attracting, promoting,
advertising, organizing, conducting, or otherwise
supporting a quality event;
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4. “Event history” means:
a. historical information on the event including past
locations of the event,
b. a description of previous attempts by the host
community to secure the event,
c. information regarding attempts by other communities to
recruit the event, and
d. if applicable, the competitive bidding process for
securing the event by the host community;
5. “Host community” means any county, incorporated city or
town, or any combination of counties, incorporated cities or towns
of the state which are authorized by their respective governing
bodies to host or assist in the presentation of a quality event;
6. “Incremental sales tax revenue” means the amount of
additional state sales tax revenue collected as a result of the
quality event, as determined by an economic impact study verified by
the Oklahoma Tax Commission;
7. “New event” means a quality event which did not occur within
a period of twenty-four (24) months prior to the month during which
a quality event is held;
7. “Projected incremental sales tax revenue” means the amount
of additional state sales tax revenue that is projected to occur as
a result of the quality event, as determined by an economic impact
study verified by the Oklahoma Tax Commission;
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8. “Quality event” means:
a. a new event or a meeting of a nationally recognized
organization or its members,
b. a new or existing event that is a national,
international, or world championship, or
c. a new or existing event that is managed or produced by
an Oklahoma-based national or international
organization, or
d. any new or existing event designated by an
incorporated city or town as a quality event
regardless of whether it meets the conditions
prescribed by subparagraphs a, b, or c of this
paragraph. Provided, such city or town may only
designate one quality event each year and such city or
town or a certified sponsor shall invest a minimum of
Five Thousand Dollars ($5,000.00) in promoting,
marketing, or signage associated with the event in
order for the event to qualify under this
subparagraph;
9. “Recurring event” means a quality event which occurred at
least once within the twenty-four (24) months prior to the month
during which a quality event is held;
10. “State sales tax revenue” means the proceeds from the state
sales tax levy imposed pursuant to Section 1354 of this title upon
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taxable transactions occurring as a result of the quality event, as
determined by an economic impact study verified by the Oklahoma Tax
Commission; and
11. “Vendors” means those persons or business entities making
taxable sales of tangible personal property or services as a result
of the quality event, as determined by an economic impact study
verified by the Oklahoma Tax Commission and, unless the context
otherwise requires, shall have the same meaning as defined by
Section 1352 of this title.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 4304, is
amended to read as follows:
Section 4304. A. Not later than thirty (30) days prior to the
initial date of a quality event, a host community may designate:
1. The dates during which a quality event will be hosted; and
2. The type of expenses eligible for distribution of captured
revenues to the host community including, but not limited to,
advertising, facility rental, promotional materials and security,
equipment rental or purchase of equipment that will be owned by the
host community, professional services, musical talent and
production, and safety and security equipment and services including
services provided by local fire and police departments.
B. Any designation made by a host community for purposes of the
Oklahoma Quality Events Incentive Act shall be made pursuant to an
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ordinance or resolution duly adopted by the governing body of the
host community.
C. A host community may only designate one quality event during
the time frame in which a designated quality event will occur.
D. Within sixty (60) days of the date on which the host
community adopts an ordinance or resolution pursuant to subsection A
of this section, such host community shall submit to the Oklahoma
Tax Commission, on such forms as the Tax Commission may prescribe, a
copy of such ordinance or resolution, an economic impact study, and
the event history. The Oklahoma Tax Commission shall designate a
single employee or division responsible for processing information,
making determinations, and any other duties related to the Oklahoma
Quality Events Incentive Act.
E. Within sixty (60) days from the date of receipt of the
information from the host community as required by subsection D of
this section, the Tax Commission shall approve or disapprove, in
whole or in part, the submission and analysis of the required
information. The Oklahoma Department of Commerce and the Oklahoma
Tourism and Recreation Department shall provide such assistance and
information as requested by the Tax Commission.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 4305, is
amended to read as follows:
Section 4305. A. The host community shall provide to the
Oklahoma Tax Commission detailed information disclosing the total
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amount of eligible local support amounts for purposes of determining
the amount of incremental state sales tax revenue that may be paid
to a host community in which a quality event occurs.
B. The Tax Commission shall verify the amount of eligible local
support amounts prior to making any payment to a host community.
C. After the conclusion of an event, the host community shall
provide information related to the event, such as attendance
figures, financial information, or other public information held by
the host community that the Tax Commission considers necessary to
evaluate the actual economic impact of the event.
D. The Tax Commission shall compare the total amount of
eligible local support amounts with the total amount of projected
incremental state sales tax revenues remitted by vendors, such
revenues to be established through the economic impact study.
E. If the Tax Commission determines through an analysis of the
economic impact study that the total amount of incremental state
sales tax revenues is zero, no payment shall be made to a host
community.
F. If the Tax Commission determines through an analysis of the
economic impact study that the total amount of projected incremental
state sales tax revenues is greater than zero, but less than the
total amount of eligible local support amounts, the Tax Commission
shall make payment, subject to the limitations of subsection I H of
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this section, to the host community of the quality event in an
amount equal to the projected incremental state sales tax revenues.
G. F. If the Tax Commission determines through an analysis of
the economic impact study that the total amount of projected
incremental state sales tax revenues is at least equal to the amount
of eligible local support amounts, the Tax Commission shall make
payment, subject to the limitations of subsection I H of this
section, to the host community in which the quality event occurs in
an amount equal to, but not greater than, the eligible local support
amounts.
H. G. No payment shall be made to any host community from a
source other than the projected incremental state sales tax
revenues, if any, derived from state sales tax remittances of
vendors as a result of the quality event, as determined by an
economic impact study verified by the Oklahoma Tax Commission.
I. No H. Regardless of the amount of eligible local support
paid by the host community or certified sponsor, no payment shall be
made to any host community in excess of:
1. Two Hundred Fifty Thousand Dollars ($250,000.00) for a
single quality event regardless of the amount of eligible local
support paid by the host community defined pursuant to subparagraphs
a through c of paragraph 8 of Section 4303 of this title; or
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2. One Hundred Thousand Dollars ($100,000.00) for a single
quality event defined pursuant to subparagraph d of paragraph 8 of
Section 4303 of this title.
SECTION 4. AMENDATORY 68 O.S. 2021, Section 4308, is
amended to read as follows:
Section 4308. After the conclusion of a quality event for which
the Oklahoma Tax Commission has given approval pursuant to
subsection E of Section 4 of this act 4304 of this title, and within
the time limit prescribed by Section 5 of this act, the Tax
Commission shall utilize the amount of projected incremental sales
tax revenues derived from the levy of the state sales tax imposed
pursuant to Section 1354 of Title 68 of the Oklahoma Statutes this
title necessary to make payment to a host community based upon
eligible local support payments according to the requirements of
Section 5 of this act 4305 of this title.
SECTION 5. This act shall become effective November 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
February 18, 2026 - DO PASS