Newspaper article THE JOURNAL RECORD

Senate OKs Computer Sales, Use Tax Credit / Which Creates Jobs

Newspaper article THE JOURNAL RECORD

Senate OKs Computer Sales, Use Tax Credit / Which Creates Jobs

Article excerpt

Journal Record Staff Reporter A bill allowing a sales and use tax credit for the purchase of $2 million worth of computer, data processing and similar equipment which creates a minimum of 100 new jobs in the state was passed by the Oklahoma Senate Wednesday by a vote of 38 to 4.

Senate Bill 421, by Sen. Ben Brown, D-Oklahoma City, next will be considered in the Oklahoma House of Representatives.

Originally, the bill allowed for a sales tax and use tax credit for material purchased to build a facility for a primary employer - a firm which derived 60 percent or more of its annual gross revenue from out of state.

Dean Schirf, director of government operations for the Oklahoma City Chamber of Commerce, said the original version of the bill was too broad and there were fears it might impact the state tax base.

In conference committee, Senate Bill 421 was revised to provide a sales tax and use tax credit for the purchase of computers, data processing equipment, telegraph or telecommunications service and equipment which costs $2 million.

However, the new or expanding firm which purchases the equipment must hire at least 100 new full-time employees in order to qualify for the credit.

The credit will be available for a 36-month period beginning June 1, if the House passes it and Gov. Henry Bellmon signs it.

"This just sets a window of opportunity when these firms can apply for the credit," Brown said.

Several questions were asked on the Senate floor if there was a specific company waiting for the bill to become law before setting up shop in Oklahoma.

Specific references were made to the Kimberly-Clark bill, which provided sales tax credit for the purchase of material for a manufacturing facility which costs $5 million or more. …

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