Oklahoma Senate Bill SB960

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23

Caption

County severance tax; authorizing county election for tax on aggregates; providing maximum tax; providing for apportionment; providing credit. Effective date.

Impact

The implementation of SB960 could significantly enhance local funding mechanisms for infrastructure projects within counties. Revenues generated from the severance tax would be divided equally between the county general fund—specifically for the construction and improvement of roads and bridges—and the general revenue fund for municipalities within the county, thus potentially allowing for better local infrastructure development. The bill establishes a clear process for tax refunds regarding exempt materials, ensuring fairness in tax collection.

Summary

Senate Bill 960 authorizes counties in Oklahoma to levy a severance tax on certain materials that are surface mined, such as aggregates, but exempts coal and specific other materials. The bill stipulates that any tax imposed must first be approved by a majority of registered voters in the county through a special election. Counties can call for this election either through a decision by the board of county commissioners or by an initiative petition signed by at least five percent of registered voters. Notably, the severance tax is capped at ten cents per ton on the extracted materials, and counties must identify the intended purpose of the tax to voters.

Contention

While the bill aims to provide counties with more control over local taxation on natural resources, it may lead to debates regarding local autonomy versus state oversight. Critics may argue that placing voting power on tax approvals with the general populace could complicate the tax process or lead to challenges obtaining adequate funding for essential projects. As this bill could set a precedent for further tax control, it has the potential to alter relationships between state and local governments regarding tax powers and responsibilities.