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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2389 By: Boles
COMMITTEE SUBSTITUTE
An Act relating to revenue and taxation; stating
legislative intent; amending 68 O.S. 2011, Section
1004, as last amended by Section 61, Chapter 161,
O.S.L. 2020 (68 O.S. Supp. 2020, Section 1004), which
relates to apportionment of gross production tax
revenues; providing for apportionment of certain
gross production tax revenues to municipal general
fund; providing for apportionment to County Bridge
and Road Improvement Fund; specifying period of time
for certain production for purposes of apportionment;
providing for noncodification; 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 not to be
codified in the Oklahoma Statutes reads as follows:
The purpose of this enactment is to modify the apportionment of
gross production tax relating to roads and bridges by modifying the
county apportionment and reapportioning a share of funds to
municipal governments. The equipment that is used in the generation
of products subject to the gross production tax utilizes both county
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and municipal infrastructure. Accordingly, it is the desire of the
Legislature for the reapportioned funds directed towards municipal
governments to be utilized for roads and bridges within the
incorporated boundaries of cities and towns.
SECTION 2. AMENDATORY 68 O.S. 2011, Section 1004, as
last amended by Section 61, Chapter 161, O.S.L. 2020 (68 O.S. Supp.
2020, Section 1004), is amended to read as follows:
Section 1004. A. As used in this section:
1. "Moving five-year average amount for gas" means, for
purposes of the apportionments prescribed by this section, the
amount of gross production tax on natural gas collected for each of
the five (5) complete fiscal years, as computed by the State Board
of Equalization pursuant to Sectio n 34.103 of Title 62 of the
Oklahoma Statutes; and
2. "Moving five-year average amount for oil" means, for
purposes of the apportionments prescribed by this section, the
amount of gross production tax on oil collected for each of the five
(5) complete fiscal years, as computed by the State Board of
Equalization pursuant to Section 34.103 of Title 62 of the Oklahoma
Statutes.
B. Beginning July 1, 2017, the gross production tax provided
for in Section 1001 of this title is hereby levied and shall be
collected and apportioned as follows:
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1. For all monies collected from the tax levied on asphalt or
ores bearing uranium, lead, zinc, jack, gold, silver or copper:
a. eighty-five and seventy-two one-hundredths percent
(85.72%) shall be paid to the State Treasure r of the
state to be placed in the General Revenue Fund of the
state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
b. seven and fourteen one -hundredths percent (7.14%) of
the sum collected from natural gas and/or casinghead
gas or asphalt or ores bearing uranium, lead, zinc,
jack, gold, silver or copper shall be paid to the
various county treasurers to be credited to the County
Highway Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the
preceding year, and
c. seven and fourteen one -hundredths percent (7.14%)
shall be allocated to each coun ty as provided for in
subparagraph b of this paragraph and shall be
apportioned, on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction to the school
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districts of the county where such p upils attend
school regardless of residence of such pupil, provided
the school district makes an ad valorem tax levy of
fifteen (15) mills for the current year and maintains
twelve (12) years of instruction;
2. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of seven percent (7%) pursuant
to the provisions of subsection B of Section 1001 of this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five -year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apportioned from the
gross production tax levy imposed pursuant to Section
1001 of this title on natural gas and/or casing head
gas to the Revenue Stabilization Fund created by
Section 34.102 of Title 62 of the Oklahoma Statutes,
the amount of revenue, if any, which exceeds the
moving five-year average amount for gas as defined
pursuant to paragraph 1 of subsection A of this
section,
b. until the apportionment to the General Revenue Fund
equals the moving five -year average amount for gas as
prescribed by paragraph 1 of subsection A of this
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section, eighty-five and seventy-two one-hundredths
percent (85.72%) shall be paid to the State Treasurer
of the state to be placed in the General Revenue Fund
of the state and used for the general expense of state
government, to be paid out pursuant to direct
appropriation by the Legislature,
c. before any other apportionment of revenue has b een
made pursuant to this paragraph, seven and fourteen
one-hundredths percent (7.14%) of the sum collected
from natural gas and/or casinghead gas shall be paid
to the various county treasurers to be credited to the
County Highway Fund or shall be paid to the municipal
general fund of the various cities or towns as
follows: Each county shall receive a proportionate
share of the funds available based upon the proportion
of the total value of production from such county in
the corresponding month of the prec eding year. For
all wells spudded on or after September 1, 2021, if
the production was derived from a well located inside
the corporate limits of a city or town, this
apportionment shall be divided with the County Highway
Fund receiving two-thirds (2/3) of this apportionment
and the general fund of the city or town receiving
one-third (1/3) of the apportionment , and
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d. before any other apportionment of revenue has been
made pursuant to this paragraph, seven and fourteen
one-hundredths percent (7.14%) shall be allocated to
each county as provided for in subparagraph c of this
paragraph follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the correspondi ng month of the
preceding year and shall be apportioned, on an average
daily attendance per capita distribution basis, as
certified by the State Superintendent of Public
Instruction to the school districts of the county
where such pupils attend school rega rdless of
residence of such pupil, provided the school district
makes an ad valorem tax levy of fifteen (15) mills for
the current year and maintains twelve (12) years of
instruction;
3. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of four percent (4%) pursuant to
the provisions of subsection B of Section 1001 of this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the movin g five-year average amount
for gas as defined by paragraph 1 of subsection A of
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this section, there shall be apportioned from the
gross production tax levy imposed pursuant to Section
1001 of this title on natural gas and/or casinghead
gas to the Revenue S tabilization Fund created pursuant
to Section 34.102 of Title 62 of the Oklahoma
Statutes, the amount of revenue, if any, which exceeds
the moving five-year average amount for gas as defined
pursuant to paragraph 1 of subsection A of this
section,
b. until the apportionment to the General Revenue Fund
equals the moving five -year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, seventy-five percent (75%) shall be paid to
the State Treasurer of the state to be placed in the
General Revenue Fund of the state and used for the
general expense of state government, to be paid out
pursuant to direct appropriation by the Legislature,
c. before any other apportionment of revenue has been
made pursuant to this paragraph, twelve and o ne-half
percent (12.5%) of the sum collected from natural gas
and/or casinghead gas shall be paid to the various
county treasurers to be credited to the County Highway
Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
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the proportion of the total value of production from
such county in the corresponding month of the
preceding year, and
d. before any other apportionment of revenue has been
made pursuant to this paragraph, twelve and one -half
percent (12.5%) shall be allocated to each county as
provided for in subparagraph c of this paragraph and
shall be apportioned, on an average daily attendance
per capita distribution basis, as certified by the
State Superintendent of Public Instruction to the
school districts of the county where such pupils
attend school regardless of residence of such pupil,
provided the school district makes an ad valorem tax
levy of fifteen (15) mills for the current year and
maintains twelve (12) years of instruction;
4. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of one percent (1%) pursuant to
the provisions of subsection B of Section 1001 of this title:
a. fifty percent (50%) of the sum collected from natural
gas and/or casinghead ga s shall be paid to the various
county treasurers to be credited to the County Highway
Fund as follows: Each county shall receive a
proportionate share of the funds available based upon
the proportion of the total value of production from
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such county in the corresponding month of the
preceding year, and
b. fifty percent (50%) shall be allocated to each county
as provided for in subparagraph a of this paragraph
and shall be apportioned, on an average daily
attendance per capita distribution basis, as certifi ed
by the State Superintendent of Public Instruction to
the school districts of the county where such pupils
attend school regardless of residence of such pupil,
provided the school district makes an ad valorem tax
levy of fifteen (15) mills for the curren t year and
maintains twelve (12) years of instruction;
5. For all monies collected from the tax levied on natural gas
and/or casinghead gas at a tax rate of two percent (2%) pursuant to
the provisions of paragraph 3 of subsection B of Section 1001 of
this title:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five -year average amount
for gas as defined by paragraph 1 of subsection A of
this section, there shall be apport ioned from the
gross production tax levy imposed pursuant to Section
1001 of this title on gas to the Revenue Stabilization
Fund created by Section 34.102 of Title 62 of the
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Oklahoma Statutes, the amount of revenue, if any,
which exceeds the moving five -year average amount for
natural gas and/or casinghead gas as defined pursuant
to paragraph 1 of subsection A of this section,
b. until the apportionment to the General Revenue Fund
equals the moving five -year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, fifty percent (50%) shall be paid to the
State Treasurer to be placed in the General Revenue
Fund of the state and used for the general expense of
state government, to be paid out pursuant to direct
appropriation by the Legislature,
c. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -five percent
(25%) of the sum collected from natural gas and/or
casinghead gas shall be paid to the various county
treasurers to be credited to the C ounty Highway Fund
as follows: Each county shall receive a proportionate
share of the funds available based upon the proportion
of the total value of production from such county in
the corresponding month of the preceding year, and
d. before any other app ortionment of revenue has been
made pursuant to this paragraph, twenty -five percent
(25%) shall be allocated to each county as provided
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for in subparagraph c of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend
school regardless of residence of such pupil, provided
the school district makes an ad valorem tax levy of
fifteen (15) mills for the current year and maintains
twelve (12) years of instruction;
6. For all monies collected from the tax levied on oil at a tax
rate of seven percent (7%) pursuant to the provisions of subsection
B of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this
title on oil to the Revenue Stabilization Fund created
by Section 34.102 of Title 62 of the Oklahoma
Statutes, after the applicable maximum amount
prescribed by subsec tion C of this section has been
deposited to the funds therein specified, the amount
of revenue, if any, which would otherwise be
apportioned to the General Revenue Fund and which
exceeds the moving five -year average amount for oil as
defined pursuant to p aragraph 2 of subsection A of
this section,
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b. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -five and
seventy-two one-hundredths percent (25.72%) shall be
paid to the State Treasurer to be placed in the Common
Education Technology Revolving Fund created in Section
34.90 of Title 62 of the Oklahoma Statutes,
c. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -five and
seventy-two one-hundredths percent (25.72%) shall be
paid to the State Treasurer to be placed in the Higher
Education Capital Revolving Fund created in Section
34.91 of Title 62 of the Oklahoma Statutes,
d. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -five and
seventy-two one-hundredths percent (25.72%) shall be
paid to the State Treasurer to be placed in the
Oklahoma Student Aid Revolving Fund created in Section
34.92 of Title 62 of the Oklahoma Statutes,
e. before any other apportionment of revenue has been
made pursuant to this paragraph, three and seven
hundred forty-five one-thousandths percent (3.745%)
shall be paid to the municipal general fund of the
various cities or towns or shall be distributed to the
various counties of the state for deposit into the
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County Bridge and Road Improvement Fund of each county
based on a formula developed by the Department of
Transportation and approved by the Department of
Transportation County Advisory Board created pursuant
to Section 302.1 of Title 69 of the Oklahoma Statute s
to be used for the purposes set forth in the County
Bridge and Road Improvement Act. The formula shall be
similar to the formula currently used for the
distribution of monies in the County Bridge Program
funds, but shall also take into consideration the
effect of the terrain and traffic volume as related to
county road improvement and maintenance costs . For
all wells spudded on or after September 1, 2021, if
the production was derived from a well located inside
the corporate limits of a city or town, th is
apportionment shall be divided with the County Bridge
and Road Improvement Fund receiving two -thirds (2/3)
of this apportionment and the general fund of the city
or town receiving one -third (1/3) of the
apportionment. If the production was not derived from
a well located inside the corporate limits of a city
or town on or after September 1, 2021, this
apportionment shall go fully to the County Bridge and
Road Improvement Fund ,
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f. before any other apportionment of revenue has been
made pursuant to this p aragraph, four and twenty -eight
one-hundredths percent (4.28%) shall be paid to the
State Treasurer to be apportioned to:
(1) the following sources and in the following
amounts through the fiscal year ending June 30,
2022:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving
Fund created pursuant to Section 2254.1 of
Title 74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Comm ission
Infrastructure Revolving Fund created
pursuant to Section 3 -2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
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year beginning July 1, 2022, and for each fiscal
year thereafter,
g. before any other apportionment of revenue has been
made pursuant to this paragraph, seven and fourteen
one-hundredths percent (7.14%) of the sum collected
from oil shall be paid to the various county
treasurers, to be credited to the County Highway Fund
or shall be paid to the municipal ge neral fund of the
various cities or towns as follows: Each county shall
receive a proportionate share of the funds available
based upon the proportion of the total value of
production from such county in the corresponding month
of the preceding year . For all wells spudded on or
after September 1, 2021, if the production was derived
from a well located inside the corporate limits of a
city or town, this apportionment shall be divided with
the County Highway Fund receiving two -thirds (2/3) of
this apportionment and the general fund of the city or
town receiving one-third (1/3) of the apportionment ,
h. before any other apportionment of revenue has been
made pursuant to this paragraph, seven and fourteen
one-hundredths percent (7.14%) shall be allocated to
each county as provided in subparagraph g of this
paragraph follows: Each county shall receive a
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proportionate share of the funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the
preceding year and shall be apportioned, on an average
daily attendance per capita distribution basis, as
certified by the State Superintendent of Public
Instruction, to the school districts of the county
where such pupils attend school regardless of
residence of such pupil, provided the school district
makes an ad valorem tax levy of fifteen (15) mills for
the current year and maintains twelve (12) years of
instruction, and
i. before any other apportionment of revenue has been
made pursuant to this paragraph, five hundred thirty-
five one-thousandths percent (0.535%) of the levy
shall be transmitted by the Oklahoma Tax Commission to
the Statewide Circuit Engineering District Revolving
Fund as created in Section 687.2 of Title 69 of the
Oklahoma Statutes;
7. For all monies collected from the tax levied on oil at a tax
rate of four percent (4%) pursuant to the provisions of subsection B
of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of t his
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title on oil to the Revenue Stabilization Fund created
by Section 34.102 of Title 62 of the Oklahoma
Statutes, after the applicable maximum amount
prescribed by subsection C of this section has been
deposited to the funds therein specified, the amount
of revenue, if any, which would otherwise be
apportioned to the General Revenue Fund and which
exceeds the moving five -year average amount for oil as
defined pursuant to paragraph 2 of subsection A of
this section,
b. before any other apportionment of reve nue has been
made pursuant to this paragraph, twenty -two and one-
half percent (22.5%) shall be paid to the State
Treasurer to be placed in the Common Education
Technology Revolving Fund created in Section 34.90 of
Title 62 of the Oklahoma Statutes,
c. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -two and one-
half percent (22.5%) shall be paid to the State
Treasurer to be placed in the Higher Education Capital
Revolving Fund created in Section 34.91 of Title 62 of
the Oklahoma Statutes,
d. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -two and one-
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half percent (22.5%) shall be paid to the State
Treasurer to be placed in the Oklahoma Student Aid
Revolving Fund created in S ection 34.92 of Title 62 of
the Oklahoma Statutes,
e. before any other apportionment of revenue has been
made pursuant to this paragraph, three and twenty -
eight one-hundredths percent (3.28%) shall be
distributed to the various counties of the state for
deposit into the County Bridge and Road Improvement
Fund of each county based on a formula developed by
the Department of Transportation and approved by the
Department of Transportation County Advisory Board
created pursuant to Section 302.1 of Title 69 of t he
Oklahoma Statutes to be used for the purposes set
forth in the County Bridge and Road Improvement Act.
The formula shall be similar to the formula currently
used for the distribution of monies in the County
Bridge Program funds, but shall also take int o
consideration the effect of the terrain and traffic
volume as related to county road improvement and
maintenance costs,
f. before any other apportionment of revenue has been
made pursuant to this paragraph, three and seventy -
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five one-hundredths percent ( 3.75%) shall be paid to
the State Treasurer to be apportioned to:
(1) the following sources and in the following
amounts through the fiscal year ending June 30,
2022:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving
Fund created pursuant to Section 2254.1 of
Title 74 of the Oklahoma Statutes,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3-2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2022, and for each fiscal
year thereafter,
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g. before any other apportionment of revenue has been
made pursuant to this paragraph, twelve and one-half
percent (12.5%) of the sum collected from oil shall be
paid to the various county treasurers, to be credited
to the County Highway Fund as follows: Each county
shall receive a proportionate share of the funds
available based upon the proport ion of the total value
of production from such county in the corresponding
month of the preceding year,
h. before any other apportionment of revenue has been
made pursuant to this paragraph, twelve and one -half
percent (12.5%) shall be allocated to each co unty as
provided in subparagraph g of this paragraph and shall
be apportioned on an average daily attendance per
capita distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pup ils attend
school regardless of residence of such pupil, provided
the school district makes an ad valorem tax levy of
fifteen (15) mills for the current year and maintains
twelve (12) years of instruction, and
i. before any other apportionment of revenue h as been
made pursuant to this paragraph, forty -seven one-
hundredths percent (0.47%) of the levy shall be
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transmitted by the Tax Commission to the Statewide
Circuit Engineering District Revolving Fund as created
in Section 687.2 of Title 69 of the Oklahoma Statutes;
8. For all monies collected from the tax levied on oil at a tax
rate of one percent (1%) pursuant to the provisions of subsection B
of Section 1001 of this title:
a. fifty percent (50%) of the sum collected shall be paid
to the various county tr easurers, to be credited to
the County Highway Fund as follows: Each county shall
receive a proportionate share of the funds available
based upon the proportion of the total value of
production from such county in the corresponding month
of the preceding year, and
b. fifty percent (50%) shall be allocated to each county
as provided for in subparagraph a of this paragraph
and shall be apportioned on an average daily
attendance per capita distribution basis, as certified
by the State Superintendent of Public Instruction, to
the school districts of the county where such pupils
attend school regardless of residence of such pupil,
provided the school district makes an ad valorem tax
levy of fifteen (15) mills for the current year and
maintains twelve (12) years of instruction;
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9. For all monies collected from the tax levied on oil at a tax
rate of two percent (2%) pursuant to the provisions of paragraph 3
of subsection B of Section 1001 of this title:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this
title on oil to the Revenue Stabilization Fund created
by Section 34.102 of Title 62 of the Oklahoma
Statutes, the amount of revenue, if any, which exceeds
the moving five-year average amount for oil as defined
pursuant to paragraph 2 of subsection A of this
section,
b. until the apportionment to the General Revenue Fund
equals the moving five -year average amount for oil as
prescribed by paragraph 2 of subsection A of this
section, fifty percent (50%) shall be pa id to the
State Treasurer to be placed in the General Revenue
Fund of the state and used for the general expense of
state government, to be paid out pursuant to direct
appropriation by the Legislature,
c. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -five percent
(25%) of the sum collected from oil shall be paid to
the various county treasurers, to be credited to the
County Highway Fund as follows: Each county shall
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receive a proportionate share of the funds ava ilable
based upon the proportion of the total value of
production from such county in the corresponding month
of the preceding year, and
d. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -five percent
(25%) shall be allocated to each county as provided in
subparagraph c of this paragraph and shall be
apportioned on an average daily attendance per capita
distribution basis, as certified by the State
Superintendent of Public Instruction, to the school
districts of the county where such pupils attend
school regardless of residence of such pupil, provided
the school district makes an ad valorem tax levy of
fifteen (15) mills for the current year and maintains
twelve (12) years of instruction;
10. On or after June 28, 2 018, the gross production tax levied
on natural gas or casinghead gas at the rate of five percent (5%)
provided for in paragraph 3 of subsection B of Section 1001 of this
title shall be apportioned as follows:
a. after the total revenue apportioned to the General
Revenue Fund as prescribed by subparagraph b of this
paragraph equals the moving five -year average amount
for gas as defined by paragraph 1 of subsection A of
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this section, there shall be apportioned from the
gross production tax levy imposed pursu ant to Section
1001 of this title on natural gas and/or casinghead
gas to the Revenue Stabilization Fund created pursuant
to Section 34.102 of Title 62 of the Oklahoma
Statutes, the amount of revenue, if any, which exceeds
the moving five-year average amount for gas as defined
pursuant to paragraph 1 of subsection A of this
section,
b. until the apportionment to the General Revenue Fund
equals the moving five -year average amount for gas as
prescribed by paragraph 1 of subsection A of this
section, eighty percent (80%) shall be paid to the
State Treasurer of the state to be placed in the
General Revenue Fund of the state and used for the
general expense of state government, to be paid out
pursuant to direct appropriation by the Legislature,
c. before any other apportionment of revenue has been
made pursuant to this paragraph, ten percent (10%) of
the sum collected from natural gas and/or casinghead
gas shall be paid to the various county treasurers to
be credited to the County Highway Fund or shall be
paid to the municipal general fund of the various
cities or towns as follows: Each county shall receive
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a proportionate share of the funds available based
upon the proportion of the total value of production
from such county in the corresponding month of the
preceding year. For all wells spudded on or after
September 1, 2021, if the production was derived from
a well located inside the corporate limits of a city
or town, this apportionment shall be divided with the
County Highway Fund receiving two -thirds (2/3) of this
apportionment and the general fund of the city or town
receiving one-third (1/3) of the apportionment , and
d. before any other apportionment of revenue has been
made pursuant to this paragraph, ten percent (10%)
shall be allocated to each county as provided for in
subparagraph c of this paragraph follows: Each county
shall receive a proportionate share of the funds
available based upon the proportion of the total value
of production from such county in the corresponding
month of the preceding year and shall be apportioned,
on an average daily attendance per capita distribution
basis, as certified by the State Superintendent of
Public Instruction to the school districts of the
county where such pupils attend school regardless of
residence of such pupi l, provided the school district
makes an ad valorem tax levy of fifteen (15) mills for
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the current year and maintains twelve (12) years of
instruction; and
11. On or after June 28, 2018, the gross production tax on oil
levied at the rate of five percent ( 5%) provided for in paragraph 3
of subsection B of Section 1001 of this title shall be apportioned
as follows:
a. there shall be apportioned from the gross production
tax levy imposed pursuant to Section 1001 of this
title on oil to the Revenue Stabilizati on Fund created
by Section 34.102 of Title 62 of the Oklahoma
Statutes, after the applicable maximum amount
prescribed by subsection C of this section has been
deposited to the funds therein specified, the amount
of revenue, if any, which would otherwise b e
apportioned to the General Revenue Fund and which
exceeds the moving five -year average amount for oil as
defined pursuant to paragraph 2 of subsection A of
this section,
b. before any other apportionment of revenue has been
made pursuant to this paragrap h, twenty-three and
seventy-five one-hundredths percent (23.75%) shall be
paid to the State Treasurer to be placed in the Common
Education Technology Revolving Fund created in Section
34.90 of Title 62 of the Oklahoma Statutes,
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c. before any other apportio nment of revenue has been
made pursuant to this paragraph, twenty -three and
seventy-five one-hundredths percent (23.75%) shall be
paid to the State Treasurer to be placed in the Higher
Education Capital Revolving Fund created in Section
34.91 of Title 62 of the Oklahoma Statutes,
d. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty -three and
seventy-five one-hundredths percent (23.75%) shall be
paid to the State Treasurer to be placed in the
Oklahoma Student Aid Revo lving Fund created in Section
34.92 of Title 62 of the Oklahoma Statutes,
e. before any other apportionment of revenue has been
made pursuant to this paragraph, three and twenty -
eight one-hundredths percent (3.28%) shall be paid to
the municipal general fu nd of the various cities or
towns or shall be distributed to the various counties
of the state for deposit into the County Bridge and
Road Improvement Fund of each county based on a
formula developed by the Department of Transportation
and approved by the Department of Transportation
County Advisory Board created pursuant to Section
302.1 of Title 69 of the Oklahoma Statutes to be used
for the purposes set forth in the County Bridge and
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Road Improvement Act. The formula shall be similar to
the formula currently used for the distribution of
monies in the County Bridge Program funds, but shall
also take into consideration the effect of the terrain
and traffic volume as related to county road
improvement and maintenance costs . For all wells
spudded on or after September 1, 2021, if the
production was derived from a well located inside the
corporate limits of a city or town, this apportionment
shall be divided with the County Bridge and Road
Improvement Fund receiving two -thirds (2/3) of this
apportionment and the general fund of the city or town
receiving one-third (1/3) of the apportionment. If
the production was not derived from a well located
inside the corporate limits of a city or town on or
after September 1, 2021, this apportionment shall go
fully to the County Bridge and Road Improvement Fund ,
f. before any other apportionment of revenue has been
made pursuant to this paragraph, five percent (5%)
shall be paid to the State Treasurer to be apportioned
to:
(1) the following sources and in the following
amounts through the fiscal year ending June 30,
2022:
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(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving
Fund created pursuant to Section 2254.1 of
Title 74 of the Oklahoma Statute s,
(b) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Conservation Commission
Infrastructure Revolving Fund created
pursuant to Section 3 -2-110 of Title 27A of
the Oklahoma Statutes, and
(c) thirty-three and one-third percent (33 1/3%)
to the Community Water Infrastructure
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of the
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2022, and for each fiscal
year thereafter,
g. before any other apportionment of revenue has been
made pursuant to this paragraph, ten percent (10%) of
the sum collected from oil shall be paid to the
various county treasurers, to be credited to the
County Highway Fund or shall be paid to the municipal
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general fund of the various cities or towns as
follows: Each county shall receive a proportionate
share of the funds available based upon the proportion
of the total value of production from such county i n
the corresponding month of the preceding year . For
all wells spudded on or after September 1, 2021, if
the production was derived from a well located inside
the corporate limits of a city or town, this
apportionment shall be divided with the County High way
Fund receiving two-thirds (2/3) of this apportionment
and the general fund of the city or town receiving
one-third (1/3) of the apportionment ,
h. before any other apportionment of revenue has been
made pursuant to this paragraph, ten percent (10%)
shall be allocated to each county as provided in
subparagraph g of this paragraph follows: Each county
shall receive a proportionate share of the funds
available based upon the proportion of the total value
of production from such county in the corresponding
month of the preceding year and shall be apportioned
on an average daily attendance per capita distribution
basis, as certified by the State Superintendent of
Public Instruction, to the school districts of the
county where such pupils attend school regardl ess of
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residence of such pupil, provided the school district
makes an ad valorem tax levy of fifteen (15) mills for
the current year and maintains twelve (12) years of
instruction, and
i. before any other apportionment of revenue has been
made pursuant to this paragraph, forty -seven one-
hundredths percent (0.47%) of the levy shall be
transmitted by the Tax Commission to the Statewide
Circuit Engineering District Revolving Fund as created
in Section 687.2 of Title 69 of the Oklahoma Statutes.
C. Provided, notwithstanding any other provision of this
section, the total amounts deposited to the Common Education
Technology Revolving Fund, the Higher Education Capital Revolving
Fund, the Oklahoma Student Aid Revolving Fund, the Rural Economic
Action Plan Water Pr ojects Fund, the Oklahoma Tourism and Recreation
Department Capital Expenditure Revolving Fund, the Oklahoma
Conservation Commission Infrastructure Revolving Fund and the
Community Water Infrastructure Development Revolving Fund pursuant
to paragraphs 6, 7 and 11 of subsection B of this section shall not
exceed One Hundred Fifty Million Dollars ($150,000,000.00) in any
fiscal year. Except as otherwise provided in this subsection, all
sums in excess of One Hundred Fifty Million Dollars
($150,000,000.00) in any fiscal year which would otherwise be
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deposited in such funds shall be apportioned by the Oklahoma Tax
Commission to the General Revenue Fund of the state.
SECTION 3. This act shall become effective July 1, 2021.
SECTION 4. 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.
58-1-7503 JBH 02/11/21