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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 60th Legislature (2025)
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32	32	HOUSE BILL 1146 By: Humphrey
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38	38	AS INTRODUCED
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40	40	An Act relating to revenue and taxation ; authorizing
41	41	county to call an election for taxing certain
42	42	materials upon severance; providing exceptions;
43	43	stating persons who may call election; requiring
44	44	voter approval of tax; requiring county to identify
45	45	purpose of tax; providing for subsequent election
46	46	within certain time period if question fails;
47	47	providing effective date of approved levy or ch ange
48	48	in tax rate; providing maximum tax rate that may be
49	49	approved; providing a pportionment of tax to specific
50	50	funds; requiring certain notice by Oklahoma Tax
51	51	Commission; authorizing certain contract for
52	52	specified purposes; providing certain contractual
53	53	powers of Tax Commission; providing certain terms of
54	54	contract; providing procedures for initiative
55	55	petition for severance tax; providing certain tax
56	56	credit; prohibiting certain penalty by county for
57	57	specified privilege; providing for codification; and
58	58	providing an effective date.
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64	64	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
65	65	SECTION 1. NEW LAW A new section of law to be codified
66	66	in the Oklahoma Statutes as Section 1001.5 of Title 68, unless there
67	67	is created a duplica tion in numbering, reads as follows:
68	68	A. Any county of this state is hereby authorized to levy a tax
69	69	upon the severance of all materials which are surface mined, not
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96	96	including coal, for purposes of producing aggregate within the
97	97	territorial limits of the c ounty by any lawfully recognized for -
98	98	profit business entity in an amount speci fied in the special
99	99	election called as provided herein.
100	100	B. No severance tax shall be applicable to:
101	101	1. Materials extracted by an individual person or persons from
102	102	real property owned by such person or persons and not sold for
103	103	profit; or
104	104	2. Limestone extracted for agricultural purposes.
105	105	C. Sales of sand for use in hydraulic fracturing operations and
106	106	sales of materials to be used by individuals for the production of
107	107	goods within this state shall be exempt from any severance tax
108	108	levied pursuant to this sec tion. In order to administer the
109	109	exemptions for sales provided in this subsection, there shall be
110	110	made a severance tax refund for severance taxes paid. Refunds shall
111	111	be made in a manner prescribed by the county which levies the tax.
112	112	D. Before a severance tax may be levied by the county, the
113	113	imposition of the tax shall first be approved by a majority of the
114	114	registered voters of the county voting thereon at a special election
115	115	called by the board of county commissioners or by an initiative
116	116	petition signed by not less than five percent (5%) of the registered
117	117	voters of the county who were registered at the time of the last
118	118	general election. The question submitted shall be limited to the
119	119	purposes described by subsection F of this section and shall be
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146	146	stated on the initiative petition. The county shall identify the
147	147	purpose of the severance tax when it is presented to the voters
148	148	pursuant to the provisions of this section. However, if a majority
149	149	of the registered voters of a county voting fail to approve such a
150	150	tax, the board of county commissioners shall not call another
151	151	special election for such purpose for one (1) year.
152	152	E. Any tax levied or any change in the rate of a tax levied
153	153	pursuant to the provisions of this section shall become effective on
154	154	the first day of the calendar quarter following approval by the
155	155	voters of the county unless another effective date, which shall also
156	156	be on the first day of a calendar quarter, is specified i n the
157	157	ordinance or resolution levying the tax or changing the rate of the
158	158	tax. The county may approve a severance tax up to ten cents ($0.10)
159	159	per ton on the production of all materials which are surface mined,
160	160	not including coal.
161	161	F. The revenues collecte d by the county from the severance tax
162	162	which may be levied shall be apportioned as follows:
163	163	1. Fifty percent (50%) shall be deposited in the county general
164	164	fund and shall be designated for construction and improvement of
165	165	county and municipal roads and bri dges; and
166	166	2. Fifty percent (50%) shall be apportioned to the general
167	167	revenue fund of municipalities within the county on a proportional
168	168	basis of their population according to the most recent Federal
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195	195	Decennial Census. Revenues apportioned to the general r evenue fund
196	196	of a municipality shall be designated for infrastructure projects.
197	197	G. The life of a tax levied pursuant to the provisions of this
198	198	section may be limited or unlimited in duration. The county shall
199	199	identify the duration of the tax when it is pr esented to the voters
200	200	pursuant to the provisions of this section.
201	201	H. The Oklahoma Tax Commission shall give notice to all
202	202	relevant taxpayers of a rate change at least sixty (60) days prior
203	203	to the effective date of the rate change. Failure to give notice as
204	204	required by this section shall delay the effective date of the rate
205	205	change to the first day of the next calendar quarter. The board of
206	206	county commissioners of a county levying a tax pursuant to the
207	207	provisions of this section and the Tax Commission are authorized to
208	208	enter into a contract whereby the Tax Commission shall have
209	209	authority to assess, collect, and enforce the tax and any penalties
210	210	or interest thereon levied by the county and to remit the same to
211	211	the county. Such authority shall apply to any t ax levied pursuant
212	212	to this section and penalty or interest liability existing at the
213	213	time of contracting. Upon contracting, the Tax Commission shall
214	214	have the power of enforcement of the tax, penalties, or interest
215	215	that is vested in the county. The contra ct shall provide for the
216	216	assessment, collection, and enforcement of the tax, p enalties, or
217	217	interest in the same manner as the administration, collection, or
218	218	enforcement of the state gross production tax by the Tax Commission.
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245	245	For providing such assistance , the Tax Commission shall charge the
246	246	county a fee of one-half of one percent (1/2 of 1%) of the gross
247	247	collection proceeds.
248	248	I. Initiative petitions calling for a special election
249	249	concerning county severance tax proposals shall be in accordance
250	250	with Sections 2, 3, 6, 18, and 24 of Title 34 of the Oklahoma
251	251	Statutes. Petitions shall be submitted to the office of the county
252	252	clerk for approval as to form prior to circulation. Following
253	253	approval, the petitioner shall have ninety (90) days to secure the
254	254	required signatures. After securing the requisite number of
255	255	signatures, the petitioner shall submit the petition and signatures
256	256	to the county clerk. Following the verification of signatures, the
257	257	county clerk shall present the petition to the board of county
258	258	commissioners. The special election shall be held within sixty (60)
259	259	days of the board of county commissioners receiving the petition
260	260	from the county clerk.
261	261	SECTION 2. NEW LAW A new section of law to be codified
262	262	in the Oklahoma Statute s as Section 1001.6 of Title 68, unless there
263	263	is created a duplication in numbering, reads as follows:
264	264	A. All materials sold where an appropriate county sales tax was
265	265	charged, collected, and remitted to the county where the materials
266	266	were severed shall re ceive a credit against the severance tax in the
267	267	same amount of the sales tax p ortion that was remitted to the county
268	268	of origin.
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295	295	B. No county that receives revenue from a severance tax levy on
296	296	materials as authorized by this act shall impose any fee, charg e,
297	297	assessment, or other cost for the privilege of engaging in the
298	298	mining or extraction of materials.
299	299	SECTION 3. This act shall become effective November 1, 2025.
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301	301	60-1-10095 AO 12/31/24

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1146 Compare Versions