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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2247 By: Burns
AS INTRODUCED
An Act relating to revenue and taxation; enacting the
County Option Severed Net Mineral Acreage Tax Act of
2023; stating source of authority pursuant to Section
20 of Article X of the Oklahoma Constitution;
authorizing counties to submit question for
imposition of tax levy on net mineral acrea ge;
defining terms; prescribing procedures for submission
of question to county voters; providing for rate of
tax; prescribing due date for payment; providing for
apportionment of revenues; providing mineral
interests owned by governmental entities exempt from
taxation; providing for codification; and providing
an effective date.
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 1370.101 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 "County Option
Severed Net Mineral Acreage Tax Act of 2023 ".
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1370.102 of Title 68, unless
there is created a duplication in num bering, reads as follows:
Pursuant to the authority of Section 20 of Article X of the
Oklahoma Constitution, the Legislature au thorizes the submission of
a question to the voters of any county f or the imposition of a tax
upon net mineral acreage. Such tax shall not be considered an ad
valorem tax, but an excise tax upon the number of severed net
mineral acres owned by a person or lega l entity in the county which
approves the imposition of the levy acco rding to the requirements of
this act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1370.103 of Title 68, unless
there is created a dupl ication in numbering, reads as follows:
As used in this act:
1. "Minerals" means oil, gas, hydrocarbons, helium, or other
element, substance or material the ownership of which has been
severed from ownersh ip of surface rights with respect to any parcel
or trace of real property;
2. "Net mineral acreage" means the number of acres owned by an
owner multiplied by the percentage ownership if less than one
hundred percent (100%) with respect to each tract or parcel for
which an owner has any mineral ownership;
3. "Person" means:
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a. an individual,
b. a partnership,
c. limited partnership,
d. limited liability partnership,
e. limited liability company,
f. trust, or
g. other lawfully recognized business or legal enti ty;
4. "Severed net mineral acres " means an interest in real
property in which the owner of the mineral estate or some fractional
part of such mineral estate is not the owner of the surface estate
with respect to the same parcel or tract; and
5. "Taxpayer" means a person subject to the levy of a tax
imposed pursuant to the provisions of this act.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1370.104 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. A board of county commissioners may submit a question to the
voters of the county in order to authorize the imposition of a
severed net mineral acres tax according to the requirements of this
act.
B. The resolution to submit the question to the voters shall
require a majority vote of the board of county commissioners.
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C. The resolution shall pres cribe a date for the election which
shall not be fewer than ninety (9 0) days from the date the
resolution is approved.
SECTION 5. NEW LAW A new sec tion of law to be codified
in the Oklahoma Statutes as Section 1370.105 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. Upon approval of the quest ion to impose a tax on severed net
mineral acres, the county assessor and the country treasurer shall
prepare an abstract of the mineral ownership records of the county
and to the extent possible such abstract shall include the number of
acres owned by each mineral owner and the percen tage of ownership
owned by each owner for all parcels of real property within the
county with respect to which the mineral owner is not also the
surface estate owner of the parcel or tract .
B. The abstract shall separately identify mineral interests
which are owned by a person or entity who is not the owner of the
surface estate with resp ect to the parcel and the tax authorized by
the provisions of this act sh all only be applicable to net mineral
acres owned by a person or entity that does not own the sur face
estate with respect to the parcel of real property described.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1370.106 of Title 68, unless
there is created a duplication in numbering, reads as follows:
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A. The rate of tax authorized pursuant to the provisions of
this act shall be Ten Dollars ($10.00) per net mineral acre.
B. The tax shall be due and pay able at the same time and in the
same manner as ad valorem taxes imposed upon taxable real property
within the county.
C. The county treasurer shall send billing statem ents to the
mineral owners subject to a tax imposed pursuant to the provisions
of this act stating the total number of net mineral acres subject to
the tax, the rate of tax and the to tal tax liability amount.
SECTION 7. NEW LAW A n ew section of law to be codified
in the Oklahoma Statutes as Section 1370.107 of Title 68, unless
there is created a duplication in numbering, reads as follows:
The revenue derived from any tax authorized pursuant to the
provisions of this act shall be app ortioned to a dedicated fund,
which shall be created b y operation of law if the voters of a county
approve the tax on net mineral acreage as authorized by this act.
All monies apportioned to such fund shall be used exclusively by the
county commissioners for the purpose described in the ballot title
in which the proposal for im position of the tax is contai ned and the
monies derived from such tax levy shall not be used for any other
purpose.
SECTION 8. NEW LAW A new section of la w to be codified
in the Oklahoma Statutes as Section 1370.109 of Title 68, unless
there is created a duplication in numbering, reads as follows:
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No tax otherwise imposed pursuant to the provisions of this act
shall be levied upon severed mineral interests ow ned by any federal,
state or local government entity.
SECTION 9. This act shall become effective November 1, 2023.
59-1-7018 MAH 01/08/23