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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 588 By: Montgomery
AS INTRODUCED
An Act relating to tax rebates; creating the Carbon
Sequestration Gross Production Rebate Program;
providing short title; providing rebate for certain
entities; stating amount of rebate; requiring the
Oklahoma Tax Commission to administer the program;
stating eligibility f or rebate; requiring pay ment of
rebate upon submission of certain documentation;
requiring the Commission to approve or disapprove all
claims; authorizing the promulgation of rules;
creating agency special account; amending 68 O.S.
2021, Section 1004, as a mended by Section 1, Cha pter
111, O.S.L. 2022 (68 O.S. Supp. 2022, Section 1004),
which relates to apportionment of gross production
tax revenues; providing for certain transfer of
funds; providing for codification; and provi ding an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF O KLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1031 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created the "Carbon Sequestration Gross
Production Rebate Program ".
B. Any entity that receives a federal tax credit for carbon
oxide sequestration pursuant to 26 U.S.C. , Section 45Q for tax year
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2024 and subsequent tax years shall be eligible for a rebate payment
from the collections of gross production taxes levied pursuant to
subsection B of Section 1001 of Title 68 of the Oklahoma Statutes.
Rebate payments provid ed pursuant to this subsection sha ll be equal
to the amount of federal tax credit received for each tax year.
C. The rebate program created pursuant to this section shall be
administered by the Oklahoma Tax Commission.
D. To be eligible for a rebate payment as pr ovided in this
section, an entity shall submit a claim for rebate on a form
prescribed by the Tax Commission no later th an two years after
receipt of the federal tax credi t.
E. The Commission shall approve or disapprove all claims for
rebate payment. Upo n approval of a claim, th e Commission shall
issue a rebate payment from funds, as they become available, i n the
special account created pursuant to Section 2 of this act.
F. The Commission may promulgate rules necessary to effectuate
the provisions of thi s act.
SECTION 2. NEW LAW A ne w section of law to be codified
in the Oklahoma Statutes as Sectio n 1032 of Title 68, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury an agency special
account for the Oklahoma Tax Commission for the transfer of gross
production tax collections necessary to provide for rebate payments
made pursuant to the Carbon Sequestration Gross Production Rebate
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Program created pursuant to Section 1 of this act. The Commission
shall transfer, each month, from the collection of gross produc tion
taxes, an amount the Commission estimates is necessary to provide
for the rebate payments made pursuant to the Carbon Sequestration
Gross Production Rebate Pro gram.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 1004, as
amended by Section 1, Chapter 111, O.S.L. 2022 (68 O.S. Supp. 2022,
Section 1004), is amended to read as follows:
Section 1004. A. As used in this section:
1. "Moving five-year average amount f or gas" means, for
purposes of the apportionments prescribed by this section, the
amount of gross production tax on natural gas collec ted 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 th e
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 y ears, as computed by the State Board of
Equalization pursuant t o Section 34.103 of Title 62 of the Oklahoma
Statutes.
B. Before any other apporti onment of revenue has been made
pursuant to this subsection, beginning on the effecti ve date of this
act, the Oklahoma Tax Commissi on shall transfer, each month, an
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amount which the Commission estimate s to be necessary to pay the
rebates claimed pursuant to the Carbon Sequestration Gross
Production Rebate Program created in Section 1 of this act to the
special account created pursuant to Section 2 of this act.
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:
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 Treasurer of the
state to be placed in the G eneral 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 ca singhead
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 ava ilable 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
c. seven and fourteen one-hundredths percent (7.14%)
shall be allocated to each county as provided for in
subparagraph b of this paragraph and shall be
apportioned, on an average daily attendance p er 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 l evy 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 subsectio n 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 casinghead
gas to the Revenue Stabiliz ation Fund created by
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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 apportionm ent to the General Rev enue Fund
equals the moving five-year average amount for gas as
prescribed by paragraph 1 of subsection A of this
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 Gen eral Revenue Fund
of the state and used for the general expe nse 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 para graph, seven and fourte en
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 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
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d. before any other apportionment of revenue has been
made pursuant to this paragraph, seve n and fourteen
one-hundredths percent (7.14%) 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 Superinten dent 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 twelv e (12) years of
instruction;
3. For all monies collected from the tax levied on nat ural 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 app ortioned 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 le vy imposed pursuant to Sec tion
1001 of this title on natural gas and/or casinghead
gas to the Revenue Stabilization Fund created pursuant
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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 Legislat ure,
c. before any other apportionment of revenue has been
made pursuant to this paragr aph, twelve and one-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 th e County Highway
Fund as follows: Each county shall receive a
proportionate share of th e funds available based upon
the proportion of the total value of production from
such county in the corresponding month of the
preceding year, and
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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 cert ified by the
State Superintendent of Public Instruction to t he
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 cur rent 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 Se ction 1001 of this title:
a. fifty percent (50%) 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 base d upon
the proportion of the total value of production from
such county in the corresponding month of the
preceding year, and
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b. fifty percent (50%) shall be allocated to each county
as provided for in subparagraph a of this paragraph
and shall be apportio ned, 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) mil ls for the current 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%) purs uant to
the provisions of paragraph 3 of subsection B of Sec tion 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 fi ve-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 gas to the Revenue Stabilization
Fund created by Secti on 34.102 of Title 62 of the
Oklahoma Statutes, the amount of revenue, if any,
which exceeds the moving five-year average amount for
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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 collec ted 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 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
for in subparagraph c of this paragraph and shall be
apportioned on an average daily attendance per cap ita
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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 o f
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 th e 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 crea ted
by Section 34.102 of Title 62 of th e 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 revenue has been
made pursuant to this paragraph, twenty -five and
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seventy-two one-hundredths percent (25.72%) shall be
paid to the State Treasurer to be place d 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 rev enue has been
made pursuant to this parag raph, 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 apportionm ent of revenue has been
made pursuant to this paragraph, tw enty-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 crea ted in Section
34.92 of Title 62 of the Ok lahoma Statutes,
e. before any other apportionment of reve nue has been
made pursuant to this paragraph, three and seven
hundred forty-five one-thousandths percent (3.745%)
shall be distributed to the various count ies of the
state for deposit into the Count y 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
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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 Bridg e 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 cou nty road improvement
and maintenance costs,
f. before any other apportionment of revenue has been
made pursuant to this paragraph, 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,
2027:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Exp enditure Revolving
Fund created pursuant to Sectio n 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 Revolvin g Fund created
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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 Re sources Board Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2027, 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 coun ty
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 produc tion from such county in
the corresponding month of the prece ding year,
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 i n subparagraph g of this
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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 d istrict
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 r evenue 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 Engineer ing District Revolving
Fund as created in Section 68 7.2 of Title 69 of the
Oklahoma Statutes;
7. For all monies collected from the tax le vied on oil at a tax
rate of four percent (4%) pursuant to the provisions of subsection B
of Section 1001 of this tit le:
a. there shall be apportioned from the gross prod uction
tax levy imposed pursuant to Section 1001 of this
title on oil to the Revenue S tabilization Fund created
by Section 34.102 of Title 62 of the Oklahoma
Statutes, after the applicable maximum amoun t
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prescribed by subsection C of this section has been
deposited to the funds th erein specified, the amount
of revenue, if any, which would o therwise 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 revenue has been
made pursuant to thi s paragraph, twenty-two and one-
half percent (22.5%) shall be paid to the State
Treasurer to be placed in the Commo n Education
Technology Revolving Fund created in Sectio n 34.90 of
Title 62 of the Oklahoma Statutes,
c. before any other apportionment of rev enue 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-
half percent (22.5%) shall be paid to the State
Treasurer to be placed in the Oklahoma Student Aid
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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 a nd 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 approv ed by the
Department of Transportation County Advisory Boa rd
created pursuant to Se ction 302.1 of Title 69 of the
Oklahoma Statutes to be used f or the purposes set
forth in the County Bridge and Road Improvement Act.
The formula shall be similar to the fo rmula 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,
f. before any other apportionment of revenue has been
made pursuant to this parag raph, three and seventy-
five one-hundredths percent (3.75%) shall be paid to
the State Treasurer to be apportioned to:
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(1) the following sources and in the following
amounts through the fiscal yea r ending June 30,
2027:
(a) thirty-three and one-third percent (33 1/3%)
to the Oklahoma Tourism and Recreation
Department Capital Expenditure Rev olving
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 Commiss ion
Infrastructure Revol ving 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 Infrastr ucture
Development Revolving Fund created pursuant
to Section 1085.7A of Title 82 of t he
Oklahoma Statutes, and
(2) the Oklahoma Water Resources Boar d Rural Economic
Action Plan Water Projects Fund for the fiscal
year beginning July 1, 2027, and for each fiscal
year thereafter,
g. before any other apportionment o f revenue has been
made pursuant to this paragraph, twelve and on e-half
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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 proport ionate 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,
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 county 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 Instruc tion, to the school
districts of the county where such pupils att end
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 instr uction, 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
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Circuit Engineering District Revolving Fun d as created
in Section 687.2 of Title 69 of the Oklahoma Statute s;
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%) o f the sum collected shall be paid
to the various county treasurer s, 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, a nd
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 Instru ction, 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) m ills for the current year and
maintains twelve (12) years of inst ruction;
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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 excee ds
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 sub section A of this
section, fifty percent (50%) shall be paid to t he
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 Legislatu re,
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 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 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 count y 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, 2018, th e 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 ap portioned from the
gross production tax levy imposed pursuant 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 revenu e, 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 appor tionment 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 as follows:
Each county shall receive a proportionate share of the
funds available based upon the proportion of the total
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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, ten percent (10%)
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 Pu blic 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
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 t his 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 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
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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 paragr aph 2 of subsection A of
this section,
b. before any other apportionment of revenue has been
made pursuant to this paragraph, twenty-three and
seventy-five one-hundredths percent (23.75%) sha ll 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 -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 revenu e 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 Revolving Fund created in Section
34.92 of Title 62 of the Oklahoma Stat utes,
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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 Improve ment
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 purpo ses 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,
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 e nding June 30,
2027:
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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 Sta tutes,
(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 Pr ojects Fund for the fiscal
year beginning July 1, 2027, 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 as follows : Each county shall
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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,
h. before any other appor tionment 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 and shall be
apportioned on an average daily a ttendance per capita
distribution basis, as cert ified 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 v alorem tax levy of
fifteen (15) mills for the cu rrent 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 sh all be
transmitted by the Tax Commission to the S tatewide
Circuit Engineering Distri ct 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 de posited to the Common Education
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Technology Revolving Fund, the Higher Education Capit al Revolving
Fund, the Oklahoma Student Aid Revolving Fund, the Rural Economic
Action Plan Water Projects Fund, the Oklahoma Tourism and Recreation
Department Capital Expe nditure 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 Fif ty Million Dollars ($150,000,000.00) in any
fiscal year. Except as otherwise provide d 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
deposited in such funds shall b e apportioned by the Oklahoma Tax
Commission to the General Revenue Fund of the state .
SECTION 4. This act shall become effectiv e November 1, 2023.
59-1-655 QD 1/17/2023 6:24:38 PM