Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB577 Compare Versions

Version 1 (Old)

Version 2 (New)

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	3	+	ENGR. S. B. NO. 577 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 60th Legislature (2025)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 577 By: Rader of the Senate
37	30
38	31		and
39	32
40	33		Pae of the House
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45	38		An Act relating to ad valorem tax; amending 68 O.S.
46	39		2021, Section 2902, as last amended by Section 1,
47	40		Chapter 390, O.S.L. 2022 (68 O.S. Supp. 2024, Section
48	41		2902), which relates to the exemption from ad valorem
49	42		tax for manufacturing facilities; requiring
50	43		facilities to provide certain information; requiring
51	44		the Oklahoma Tax Commission to provide certain data
52	45		to the Incentive Evaluation Commission; amending 68
53	46		O.S. 2021, Section 205, as last amended by Section 1,
54	47		Chapter 208, O.S.L. 2024 (68 O.S. Supp. 2024, S ection
55	48		205), which relates to the confidential nature of
56	49		records and files of the Oklahoma Tax Commission;
57	50		excepting and requiring the disclosure of
58	51		information; updating statutory language; updating
59	52		statutory reference; and providing an effective date .
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65	58		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
66	59		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2902, as
67	60		last amended by Section 1, Chapter 390, O.S.L. 2022 (68 O.S. Supp.
68	61		2024, Section 2902), is amended to read as follows:
69	62		Section 2902. A. Except as otherwise provided by subsection H
70	63		of Section 3658 of this title pursuant to which the exemption
	64	+	authorized by this section may not be claimed , a qualifying
	65	+	manufacturing concern, as defined by Section 6B of Article X of the
	66	+	Oklahoma Constitution, and as further defined herein, shall be
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72		-	SB577 HFLR Page 2
73		-	BOLD FACE denotes Committee Amendments. 1
	68	+	ENGR. S. B. NO. 577 Page 2 1
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98		-	authorized by this section may not be claimed, a qualifying
99		-	manufacturing concern, as defined by Section 6B of Article X of the
100		-	Oklahoma Constitution, and as further defined herein, shall be
101	93		exempt from the levy of any ad valorem taxes upon new, expanded or
102	94		acquired manufacturing facilities including facilities engaged in
103	95		research and development, for a period of five (5) years. The
104	96		provisions of Section 6B of Article X of the Oklahoma Constitution
105	97		requiring an existing facility to have been unoccupied for a period
106	98		of twelve (12) months prior to acqu isition shall be construed as a
107	99		qualification for a facility to initially receive a n exemption, and
108	100		shall not be deemed to be a qualification for that facility to
109	101		continue to receive an exemption in each of the four (4) years
110	102		following the initial year for which the exemption was granted.
111	103		Such facilities are hereby classified for the purposes of taxation
112	104		as provided in Section 22 of Article X of the Oklahoma Constitution.
113	105		B. For purposes of this section, the following definitions
114	106		shall apply:
115	107		1. “Manufacturing facilities” means facilities engaged in the
116	108		mechanical or chemical transform ation of materials or substances
117	109		into new products and except as provided by paragraph 6 of
118	110		subsection C of this section shall include:
119	111		a. establishments which have received a manufacturer
120	112		exemption permit pursuant to the provisions of Section
121	113		1359.2 of this title,
	114	+	b. facilities including repair and replacement parts,
	115	+	primarily engaged in aircraft repair, building and
	116	+	rebuilding whether or not on a factory basis,
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123		-	SB577 HFLR Page 3
124		-	BOLD FACE denotes Committee Amendments. 1
	118	+	ENGR. S. B. NO. 577 Page 3 1
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149		-	b. facilities including repair and replacement parts,
150		-	primarily engaged in aircraft repair, building and
151		-	rebuilding whether or not on a factory basis,
152	143		c. establishments primarily engaged in computer services
153	144		and data processing as defined under I ndustrial Group
154	145		Numbers 5112 and 5415, and U.S. Industry Number 334611
155	146		and 519130 of the NAICS Manual, latest revision, and
156	147		which derive at least fifty percent (50%) of thei r
157	148		annual gross revenues from the sale of a product or
158	149		service to an out-of-state buyer or consumer, and as
159	150		defined under Industrial Group Number 5182 of the
160	151		NAICS Manual, latest revision, which derive at least
161	152		eighty percent (80%) of their annual gross rev enues
162	153		from the sale of a product or service to an out -of-
163	154		state buyer or consumer. Eligibility as a
164	155		manufacturing facility pursuant to this subparagraph
165	156		shall be established, subject to review by the
166	157		Oklahoma Tax Commission, by annually filing an
167	158		affidavit with the Tax Commission stating that the
168	159		facility so qualifies and such other information as
169	160		required by the Tax Commission. For purposes of
170	161		determining whether annual gross revenues are derived
171	162		from sales to out-of-state buyers, all sales to the
	163	+	federal government shall be considered to be an out -
	164	+	of-state buyer,
	165	+	d. facilities that the investment cost of the
	166	+	construction, acquisition or expansion is Five Hundred
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173		-	SB577 HFLR Page 4
174		-	BOLD FACE denotes Committee Amendments. 1
	168	+	ENGR. S. B. NO. 577 Page 4 1
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199		-	federal government shall be considered to be an out -
200		-	of-state buyer,
201		-	d. facilities that the investment cost of the
202		-	construction, acquisition or expansion is Fi ve Hundred
203	193		Thousand Dollars ($500,000.00) or more with respect to
204	194		assets placed into service during calen dar year 2022.
205	195		For subsequent calendar years, the investment required
206	196		shall be increased annually by a percentage equal to
207	197		the previous year’s increase in the Consumer Price
208	198		Index-All Urban Consumers ( “CPI-U”) and such adjusted
209	199		amount shall be the require d investment cost in order
210	200		to qualify for the exemption authorized by this
211	201		section. The Oklahoma Department of Commerce shall
212	202		determine the amount of the increase, if any, on
213	203		January 1 of each year. The Oklahoma Tax Commission
214	204		shall publish on its websit e at least annually the
215	205		adjusted dollar amount in order to qualify for the
216	206		exemption authorized by this section and shall include
217	207		the adjusted dollar amount in any of its relevant
218	208		forms or publications with respect to the exemption.
219	209		Provided, “investment cost” shall not include the cost
220	210		of direct replacement, refurbishment, repair or
221	211		maintenance of existing machinery or equipment, except
222	212		that “investment cost” investment cost shall include
	213	+	capital expenditures for direct replacement,
	214	+	refurbishment, repair or maintenance of existing
	215	+	machinery or equipment that qualifies for depreciation
	216	+	and/or amortization pursuant to the Internal Revenue
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224		-	SB577 HFLR Page 5
225		-	BOLD FACE denotes Committee Amendments. 1
	218	+	ENGR. S. B. NO. 577 Page 5 1
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250		-	capital expenditures for direct replacement,
251		-	refurbishment, repair or maintenance of existing
252		-	machinery or equipment that qualifies for depreciation
253		-	and/or amortization pursuant to the Internal Revenue
254	243		Code of 1986, as amended, and such expenditures shall
255	244		be eligible as a part of an “expansion” expansion that
256	245		otherwise qualifies under this section,
257	246		e. establishments primarily engaged in distribution as
258	247		defined under Industry Numbers 49311, 49312, 49313 and
259	248		49319 and Industry Sector Number 42 of the NAICS
260	249		Manual, latest revision, and which meet the following
261	250		qualifications:
262	251		(1) construction with an initial capital investment
263	252		of at least Five Million Dollars ($5,000,000.00),
264	253		(2) employment of at least one hundred (100) full -
265	254		time-equivalent employees, as certified by the
266	255		Oklahoma Employment Security Commission,
267	256		(3) payment of wages or salaries to its employees at
268	257		a wage which equals or exceeds the average wa ge
269	258		requirements in the Oklahoma Quality Jobs Program
270	259		Act for the year in which the real property was
271	260		placed into service, and
272	261		(4) commencement of construction on or after No vember
273	262		1, 2007, with construction to be completed within
	263	+	three (3) years from the date of the commencement
	264	+	of construction,
	265	+	f. facilities engaged in the manufacturing, compounding,
	266	+	processing or fabrication of materials into articles
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275		-	SB577 HFLR Page 6
276		-	BOLD FACE denotes Committee Amendments. 1
	268	+	ENGR. S. B. NO. 577 Page 6 1
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301		-	three (3) years from the date of the commencement
302		-	of construction,
303		-	f. facilities engaged in th e manufacturing, compounding,
304		-	processing or fabrication of materials into articles
305	293		of tangible personal p roperty according to the special
306	294		order of a customer (custom order manufacturing) b y
307	295		manufacturers classified as operating in North
308	296		American Industry Classification System (NAICS)
309	297		Sectors 32 and 33, but does not include such custom
310	298		order manufacturing by m anufacturers classified in
311	299		other NAICS code sectors, and
312	300		g. with respect to any entity making an application for
313	301		the exemption authorized by this section on or after
314	302		January 1, 2023, the establishment making application
315	303		for exempt treatment of real or pers onal property
316	304		acquired or improved beginning January 1, 2022, and
317	305		for any calendar year thereafter, the entity shall be
318	306		required to pay new direct jobs, as defined by Section
319	307		3603 of this title for purposes of the Oklahoma
320	308		Quality Jobs Program Act, an aver age annualized wage
321	309		which equals or exceeds the average wage requirement
322	310		in the Oklahoma Quality Jobs Program Act for the year
323	311		in which the real or personal property was placed into
324	312		service. The Oklahoma Tax Commission may request
	313	+	verification from the Ok lahoma Department of Commerce
	314	+	that an establishment seeking an exemption for real o r
	315	+	personal property pays an average annualized wage that
	316	+	equals or exceeds the average wage requirement in
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326		-	SB577 HFLR Page 7
327		-	BOLD FACE denotes Committee Amendments. 1
	318	+	ENGR. S. B. NO. 577 Page 7 1
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352		-	verification from the Oklahoma Department of Commerce
353		-	that an establishment seeking an exemption for real or
354		-	personal property pays an average annualized wage that
355		-	equals or exceeds the average wage requirement in
356	343		effect for the year in which the real or personal
357	344		property was placed into service. For purposes of
358	345		this subparagraph, it shall not be necessary for the
359	346		establishment to qualify for incentive payments
360	347		pursuant to the Oklahoma Quality Jobs Program Act, but
361	348		the establishment shall be subject to the wage
362	349		requirements of the Oklahoma Quality Jobs Program Act
363	350		with respect to new direct jobs in order to qua lify
364	351		for the exempt treatment authorized by this section.
365	352		Eligibility as a manufacturing facility pursuant to this
366	353		subparagraph shall be established, subject to review by th e Tax
367	354		Commission, by annually filing an affidavit with the Tax Commission
368	355		stating that the facility so qualifies and containing such other
369	356		information as required by the Tax Commission.
370	357		Provided, eating and drinking places, as well as other retail
371	358		establishments, shall not qualify as manufacturing facilities for
372	359		purposes of this section, nor shall centrally assessed properties.
373	360		Eligibility as a manufacturing facility pursuant to this
374	361		subparagraph shall be established, subject to review by the Tax
375	362		Commission, by annually filing an application with the Tax
	363	+	Commission stating that the facility so qualifies and containing
	364	+	such other information as required by the Tax Commission;
	365	+	2. “Facility” and “facilities”, except as otherwise provided by
	366	+	this section, means and includes the land, buildings, structures and
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377		-	SB577 HFLR Page 8
378		-	BOLD FACE denotes Committee Amendments. 1
	368	+	ENGR. S. B. NO. 577 Page 8 1
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403		-	Commission stating that the facility so qualifies and containing
404		-	such other information as required by the Tax Commission;
405		-	2. “Facility” and “facilities”, except as otherwise provided by
406		-	this section, means and includes the land, buildings, structures and
407	393		improvements used directly and ex clusively in the manufacturing
408	394		process. Effective January 1, 2022, and for each calendar year
409	395		thereafter, for establishments which have received a manufacturer
410	396		exemption permit pursuant to the provisions of Section 1359.2 of
411	397		this title, or facilities engaged in manufacturing activities
412	398		defined or classified in the NAICS Manual under Industry Nos. 311111
413	399		through 339999, inclusive, but for no other establishments, facility
414	400		and facilities means and includes the land, buildings, structures,
415	401		improvements, machinery, fixtures, equipment and other personal
416	402		property used directly and exclusively in the manufacturing process;
417	403		and
418	404		3. “Research and development ” means activities directl y related
419	405		to and conducted for the purpose of discovering, enhancing,
420	406		increasing or improving future or existing products or processes or
421	407		productivity.
422	408		C. The following provisions shall apply:
423	409		1. A manufacturing concern shall be entitled to the exemption
424	410		herein provided for each new manufacturing facility constructed,
425	411		each existing manufacturing facility acquired and the expansion of
426	412		existing manufacturing facilities on the same site, as such terms
	413	+	are defined by Section 6B of Article X of the Oklahoma Co nstitution
	414	+	and by this section;
	415	+	2. No manufacturing concern shall receive more than one five -
	416	+	year exemption for any one manufacturing facility unless the
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428		-	SB577 HFLR Page 9
429		-	BOLD FACE denotes Committee Amendments. 1
	418	+	ENGR. S. B. NO. 577 Page 9 1
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454		-	are defined by Section 6B of Article X of the Oklahoma Co nstitution
455		-	and by this section;
456		-	2. No manufacturing concern shall receive more than one five -
457		-	year exemption for any one manufacturing facility unless the
458	443		expansion which qualifies the manufacturing facility for an
459	444		additional five-year exemption meets the requirements of paragraph 4
460	445		of this subsection and the employment level established for any
461	446		previous exemption is maintained;
462	447		3. Any exemption as to the expansion of an existing
463	448		manufacturing facility shall be limited to the increase in ad
464	449		valorem taxes directly attributable to the expansion;
465	450		4. All initial applications for any exemption for a new,
466	451		acquired or expanded manufacturing facility shall be granted only
467	452		if:
468	453		a. there is a net increase in annualized base payroll
469	454		over the initial payroll of at leas t Two Hundred Fifty
470	455		Thousand Dollars ($250,000.00) if the facility is
471	456		located in a county with a population of fewer than
472	457		seventy-five thousand (75,000), according to the most
473	458		recent Federal Decennial Census, while maintaining or
474	459		increasing base payroll in subsequent years, or at
475	460		least One Million Dollars ($1,000,000.00) if the
476	461		facility is located in a county with a population of
477	462		seventy-five thousand (75,000) or more, according to
	463	+	the most recent Federal Decennial Census, while
	464	+	maintaining or increasing ba se payroll in subsequent
	465	+	years; provided, the payroll requirement of this
	466	+	subparagraph shall be waived for claims for exemptions
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479		-	SB577 HFLR Page 10
480		-	BOLD FACE denotes Committee Amendments. 1
	468	+	ENGR. S. B. NO. 577 Page 10 1
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505		-	the most recent Federal Decennial Census, while
506		-	maintaining or increasing base payroll in subsequent
507		-	years; provided, the payroll requirement of this
508		-	subparagraph shall be waived for claims for exemptions
509	493		including claims previously denied or on appeal on
510	494		March 3, 2010, for all initial applications for
511	495		exemption filed on or after January 1, 2004, and on or
512	496		before March 31, 2009, and all subsequent annual
513	497		exemption applications filed related to the initial
514	498		application for exemption, for an applicant, if the
515	499		facility has been located in Oklahoma for at least
516	500		fifteen (15) years engage d in marine engine
517	501		manufacturing as defined under U.S. Industry Number
518	502		333618 of the NAICS Manual, latest revision, and has
519	503		maintained an average employment of five hundred (500)
520	504		or more full-time-equivalent employees over a ten -year
521	505		period. Any applicant that qualifies for the payroll
522	506		requirement waiver as outlined in the previous
523	507		sentence and subsequently closes its Oklahoma
524	508		manufacturing plant prior to January 1, 2012, may be
525	509		disqualified for exemption and subject to recapture.
526	510		For an applicant engaged in paperboard manufacturing
527	511		as defined under U.S. Industry Number 322130 of the
528	512		NAICS Manual, latest revision, union master payouts
	513	+	paid by the buyer of the facility to specified
	514	+	individuals employed by the facility at the time of
	515	+	purchase, as specified u nder the purchase agreement,
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531		-	BOLD FACE denotes Committee Amendments. 1
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556		-	paid by the buyer of the facility to specified
557		-	individuals employed by the facility at the time of
558		-	purchase, as specified u nder the purchase agreement,
559	542		shall be excluded from payroll for purposes of this
560	543		section.
561	544		In order to provide certainty with respect to
562	545		investments in manufacturing facilities pertaining to
563	546		all initial applications for exemption filed on or
564	547		after January 1, 2016, the following definitions shall
565	548		apply:
566	549		(1) “base payroll” shall mean total payroll adjusted
567	550		for any nonrecurring bonuses, exercise of stock
568	551		option or stock rights and other nonrecurring,
569	552		extraordinary items included in total payroll,
570	553		and
571	554		(2) “initial payroll” shall mean base payroll for the
572	555		year immediately preceding the initial
573	556		construction, acquisition or expansion.
574	557		The Tax Commission shall verify payroll
575	558		information through the Oklahoma Employment
576	559		Security Commission by using reports from the
577	560		Oklahoma Employment Security Commission for the
578	561		calendar year immediately preceding th e year for
579	562		which initial application is made for base -line
	563	+	payroll, which must be maintained or increased
	564	+	for each subsequent year; provided, a
	565	+	manufacturing facility shall have the option of
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581		-	SB577 HFLR Page 12
582		-	BOLD FACE denotes Committee Amendments. 1
	567	+	ENGR. S. B. NO. 577 Page 12 1
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606	591
607		-	payroll, which must be maintained or increased
608		-	for each subsequent year; provided, a
609		-	manufacturing facility shall have the option of
610	592		excluding from its payroll, for purposes of this
611	593		section:
612	594		i. payments to sole proprietors, members
613	595		of a partnership, members of a limited
614	596		liability company who own at least ten
615	597		percent (10%) of the capital of the
616	598		limited liability compan y or
617	599		stockholder-employees of a corporation
618	600		who own at least ten percent (10%) of
619	601		the stock in the corporation, and
620	602		ii. any nonrecurring bonuses, exercise of
621	603		stock option or stock rights or other
622	604		nonrecurring, extraordinary items
623	605		included in total payroll numbers as
624	606		reported by the Oklahoma Employment
625	607		Security Commission. A manufacturing
626	608		facility electing either option shall
627	609		indicate such election upon its
628	610		application for an exemption under this
629	611		section. Any manufacturing facility
630	612		electing either option s hall submit
	613	+	such information as the Tax Commission
	614	+	may require in order to verify p ayroll
	615	+	information. Payroll information
631	616
632		-	SB577 HFLR Page 13
633		-	BOLD FACE denotes Committee Amendments. 1
	617	+	ENGR. S. B. NO. 577 Page 13 1
634	618		2
635	619		3
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657	641
658		-	such information as the Tax Commission
659		-	may require in order to verify payroll
660		-	information. Payroll information
661	642		submitted pursuant to the provisions of
662	643		this paragraph shall be submitted to
663	644		the Tax Commission and shall be subject
664	645		to the provisions of Section 205 of
665	646		this title, and
666	647		b. the facility offers, or will offer within one hundred
667	648		eighty (180) days of the date of employment, a basic
668	649		health benefits plan to the full -time-equivalent
669	650		employees of the facility, which is determined by the
670	651		Oklahoma Department of Commerce to consist of the
671	652		elements specified in subparagraph b of paragraph 1 of
672	653		subsection A of Section 3603 of this title or elements
673	654		substantially equivalent thereto.
674	655		For purposes of this section, calculation of the amount of
675	656		increased base payroll shall be measured from the start of initial
676	657		construction or expansion to the completion of such construction or
677	658		expansion or for three (3) years from the start of initial
678	659		construction or expansion, whichever occurs first. The amount of
679	660		increased base payroll shall include payroll for full -time-
680	661		equivalent employees in this state who are employed by an entity
681	662		other than the facility which has previously or is currently
	663	+	qualified to receive an exemption pursuant to the provisions of this
	664	+	section and who are leased or otherwise provided to the facility, if
	665	+	such employment did not exist in this state prior to the start of
682	666
683		-	SB577 HFLR Page 14
684		-	BOLD FACE denotes Committee Amendments. 1
	667	+	ENGR. S. B. NO. 577 Page 14 1
685	668		2
686	669		3
687	670		4
688	671		5
689	672		6
690	673		7
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708	691
709		-	qualified to receive an exemption pursuant to the provisions of this
710		-	section and who are leased or otherwise provided to the facility, if
711		-	such employment did not exist in this state prior to the start of
712	692		initial construction or expansion of the facility. The
713	693		manufacturing concern shall submit an affidavit to the Tax
714	694		Commission, signed by an officer, stating that the construction,
715	695		acquisition or expansion of the facility will result in a net
716	696		increase in the annualized base payroll as required by this
717	697		paragraph and that full -time-equivalent employees of the facility
718	698		are or will be offered a basic health benefits plan as required by
719	699		this paragraph. If, after the completion of such construction or
720	700		expansion or after three (3) years from the start of initial
721	701		construction or expansion, whichever occurs first, the construction,
722	702		acquisition or expansion has not resulted in a net increase in the
723	703		amount of annualized base payroll, if required, or any other
724	704		qualification specified in this paragraph has not been met, the
725	705		manufacturing concern shall pay an amount equal to the amount of any
726	706		exemption granted including penalties and interest thereon, to the
727	707		Tax Commission for deposit to the Ad Valorem Reimbursement Fund;
728	708		5. Except as otherwise provided by this paragraph, any new,
729	709		acquired or expanded computer data processing, data preparation or
730	710		information processing services provider classified in U.S. Industry
731	711		Number 518210 of the North American Industrial Classification System
732	712		(NAICS) Manual, 2017 revision, may apply for exemptions under this
	713	+	section for each year in which new, acquired, or ex panded capital
	714	+	improvements to the facility are made for assets placed in service
	715	+	not later than December 31, 2021, if:
733	716
734		-	SB577 HFLR Page 15
735		-	BOLD FACE denotes Committee Amendments. 1
	717	+	ENGR. S. B. NO. 577 Page 15 1
736	718		2
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759	741
760		-	section for each year in which new, acquired, or ex panded capital
761		-	improvements to the facility are made for assets placed in service
762		-	not later than December 31, 2021, if:
763	742		a. there is a net increase in annualized payroll of the
764	743		applicant at any facility or facilities of the
765	744		applicant in this state of at lea st Two Hundred Fifty
766	745		Thousand Dollars ($250,000.00), which is attributable
767	746		to the capital improvements, or a net increase of
768	747		Seven Million Dollars ($7,000,000.00) or more in
769	748		capital improvements, while maintaining or increasing
770	749		payroll at the facility or f acilities in this state
771	750		which are included in the application, and
772	751		b. the facility offers, or will offer within one hundred
773	752		eighty (180) days of the date of employment of new
774	753		employees attributable to the capital improvements, a
775	754		basic health benefits plan to the full-time-equivalent
776	755		employees of the facility, which is determined by the
777	756		Oklahoma Department of Commerce to consist of the
778	757		elements specified in subparagraph b of paragraph 1 of
779	758		subsection A of Section 3603 of this title or elements
780	759		substantially equivalent thereto.
781	760		An establishment described by this paragraph, the primary
782	761		business activity of which is described by Industry No. 518210 of
783	762		the North American Industry Classification System (NAICS) Manual,
	763	+	2017 revision, that has applied for and been g ranted an exemption
	764	+	for personal property at any time within five (5) years prior t o
	765	+	November 1, 2021, may apply for exemptions for items of eligible
784	766
785		-	SB577 HFLR Page 16
786		-	BOLD FACE denotes Committee Amendments. 1
	767	+	ENGR. S. B. NO. 577 Page 16 1
787	768		2
788	769		3
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810	791
811		-	2017 revision, that has applied for and been granted an exemption
812		-	for personal property at any time within five (5) years prior to
813		-	November 1, 2021, may apply for exemptions for items of eligible
814	792		personal property to be located within improvements to real property
815	793		and such real property and improvemen ts having been exempt from ad
816	794		valorem taxation prior to November 1, 2021, pursuant to the
817	795		provisions of this section if such personal property is placed in
818	796		service not later than December 31, 2036. No additional personal
819	797		property of such establishment pla ced in service after such date
820	798		shall qualify for the exempt treatment otherwise aut horized pursuant
821	799		to this paragraph;
822	800		6. Effective January 1, 2017, an entity engaged in electric
823	801		power generation by means of wind, as described by the North
824	802		American Industry Classification System, No. 221119, shall not be
825	803		defined as a qualifying manufacturing concern for purposes of the
826	804		exemption otherwise authorized pursuant to Section 6B of Article X
827	805		of the Oklahoma Constitution or qualify as a “manufacturing
828	806		facility” manufacturing facility as defined in this section. No
829	807		initial application for exempt ion shall be filed by or accepted from
830	808		an entity engaged in electric power generation by means of wind on
831	809		or after January 1, 2018;
832	810		7. An entity or applicant engaged in an industry as defined
833	811		under U.S. Industry Number 324110 of the NAICS Manual, latest
834	812		revision, which has applied for or been granted an exemption for a
	813	+	time period which began on or after calendar year 2012 and before
	814	+	calendar year 2016 but which did not meet the payroll requirements
	815	+	of subparagraph a of paragraph 4 of this subsection becau se of
835	816
836		-	SB577 HFLR Page 17
837		-	BOLD FACE denotes Committee Amendments. 1
	817	+	ENGR. S. B. NO. 577 Page 17 1
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860	840		24
861	841
862		-	time period which began on or after calendar year 2012 and before
863		-	calendar year 2016 but which did not meet the payroll requirements
864		-	of subparagraph a of paragraph 4 of this subsection because of
865	842		nonrecurring bonuses, exercise of stock option or stock rights or
866	843		other nonrecurring, extraordinary items included in total payroll in
867	844		the previous year, shall be allo wed an exemption, beginning with
868	845		calendar year 2016, for the number of years including the calendar
869	846		year for which the exemption was denied, remaining in the entity ’s
870	847		five-year exemption period, provided such entity attains or
871	848		increases payroll at or above the initial or base payroll
872	849		established for the exemption;
873	850		8. A facility engaged in manufacturing defined under U.S.
874	851		Industry Number 327310 of the NAICS Manual shall have the payroll
875	852		requirements of paragraph 4 of this subsection waived for tax year
876	853		2021, which is based in part on the 2020 calendar year payroll
877	854		reported to the Oklahoma Employment Security Commission, and may
878	855		continue to receive the exemption for the five -year period provided
879	856		in this section only if all other requirements of this section a re
880	857		met; and
881	858		9. A facility engaged in manufacturing which otherwise
882	859		qualifies for the exemption or exemptions pursuant to the provisions
883	860		of this section shall have the payroll requirements of paragraph 4
884	861		of this subsection waived for tax year 2021, which i s based in part
885	862		on the 2020 calendar year payroll reported to the Oklahoma
	863	+	Employment Security Commission, and for tax year 2022, which is
	864	+	based in part on the 2021 calendar year payroll reported to the
	865	+	Oklahoma Employment Security Commission, and may cont inue to receive
886	866
887		-	SB577 HFLR Page 18
888		-	BOLD FACE denotes Committee Amendments. 1
	867	+	ENGR. S. B. NO. 577 Page 18 1
889	868		2
890	869		3
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907	886		20
908	887		21
909	888		22
910	889		23
911	890		24
912	891
913		-	Employment Security Commission, and for tax year 2022, which is
914		-	based in part on the 2021 calendar year payroll reported to the
915		-	Oklahoma Employment Security Commission, and may continue to receive
916	892		the exemption for the five -year period provided in this section onl y
917	893		if all other requirements of this section are met.
918	894		D. 1. Except as provided in paragraph 2 of this subsection,
919	895		the five-year period of exemption from ad valorem taxes fo r any
920	896		qualifying manufacturing facility property shall begin on January 1
921	897		following the initial qualifying use of the property in the
922	898		manufacturing process.
923	899		2. The five-year period of exemption from ad valorem taxes for
924	900		any qualifying manufacturing facili ty, as specified in subparagraphs
925	901		a and b of this paragraph, which is located withi n a tax incentive
926	902		district created pursuant to the Local Development Act by a county
927	903		having a population of at least five hundred thousand (500,000),
928	904		according to the most r ecent Federal Decennial Census, shall begin
929	905		on January 1 following the expiration or termination of the ad
930	906		valorem exemption, abatement, or other incentive provided through
931	907		the tax incentive district. Facilities qualifying pursuant to this
932	908		subsection shall include:
933	909		a. a manufacturing facility as defined in subparagraph c
934	910		of paragraph 1 of subsection B of this section, and
935	911		b. an establishment primarily engaged in distribution as
936	912		defined under Industry Number 49311 of the North
	913	+	American Industry Classificati on System for which the
	914	+	initial capital investment was at least One Hundred
	915	+	Eighty Million Dollars ($180,000,000.00); provided,
937	916
938		-	SB577 HFLR Page 19
939		-	BOLD FACE denotes Committee Amendments. 1
	917	+	ENGR. S. B. NO. 577 Page 19 1
940	918		2
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959	937		21
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962	940		24
963	941
964		-	American Industry Classificati on System for which the
965		-	initial capital investment was at least One Hundred
966		-	Eighty Million Dollars ($180,000,000.00); provided,
967	942		that the qualifying job creation and depreciable
968	943		property investment occurred prior to calendar year
969	944		2017 but not earlier than c alendar year 2013.
970	945		E. Any person, firm or corporation claiming the exemption
971	946		herein provided for shall file each year for which exemption is
972	947		claimed, an application therefor with the county assessor of the
973	948		county in which the new, expanded or acquired fac ility is located.
974	949		The application shall be on a form or forms prescribed by the Tax
975	950		Commission, and shall be filed on or before March 15, except as
976	951		provided in Section 2902.1 of this title, of each year in which the
977	952		facility desires to take the exemption or within thirty (30) days
978	953		from and after receipt by such person, firm or corporati on of notice
979	954		of valuation increase, whichever is later. In a case where
980	955		completion of the facility or facilities will occur after January 1
981	956		of a given year, a facility may apply to claim the ad valorem tax
982	957		exemption for that year. If such facility is found to be qualified
983	958		for exemption, the ad valorem tax exemption provided for herein
984	959		shall be granted for that entire year and shall apply to the ad
985	960		valorem valuation as of Ja nuary 1 of that given year. For
986	961		applicants who qualify under the provisions of sub paragraph b of
987	962		paragraph 1 of subsection B of this section, the application shall
	963	+	include a copy of the affidavit and any other information required
	964	+	to be filed with the Tax Commission.
988	965
989		-	SB577 HFLR Page 20
990		-	BOLD FACE denotes Committee Amendments. 1
	966	+	ENGR. S. B. NO. 577 Page 20 1
991	967		2
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1011	987		22
1012	988		23
1013	989		24
1014	990
1015		-	include a copy of the affidavit and any other information required
1016		-	to be filed with the Tax Commission.
1017	991		F. The application shall be examined by the county assessor and
1018	992		approved or rejected in the same manner as provided by law for
1019	993		approval or rejection of claims for homestead exemptions. The
1020	994		taxpayer shall have the same right of review by and appeal from the
1021	995		county board of equalization, in the same manner and subject to the
1022	996		same requirements as provided by law for review and appeals
1023	997		concerning homestead exemption claims. Approved applications shall
1024	998		be filed by the county assessor with the Tax Commission no later
1025	999		than June 15, except as provided in Section 2902.1 of this title, of
1026	1000		the year in which the facility desires to take the exemption.
1027	1001		Incomplete applications and applications filed after June 15 will be
1028	1002		declared null and void by the Tax Commission. In the event that a
1029	1003		taxpayer qualified to receive an exemption pursuan t to the
1030	1004		provisions of this section shall make payment of ad valorem taxes in
1031	1005		excess of the amount due, the county treasurer shall have the
1032	1006		authority to credit the taxpayer ’s real or personal property tax
1033	1007		overpayment against current taxes due. The county treasurer may
1034	1008		establish a schedule of up to five (5) years of credit to resolve
1035	1009		the overpayment.
1036	1010		G. Nothing herein shall in any manner affect, alter or impair
1037	1011		any law relating to the assessment of property, and all property,
1038	1012		real or personal, which may be entitled to exemption hereunder shall
	1013	+	be valued and assessed as is other like property and as provided by
	1014	+	law. The valuation and assessment of property for which an
1039	1015
1040		-	SB577 HFLR Page 21
1041		-	BOLD FACE denotes Committee Amendments. 1
	1016	+	ENGR. S. B. NO. 577 Page 21 1
1042	1017		2
1043	1018		3
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1063	1038		23
1064	1039		24
1065	1040
1066		-	be valued and assessed as is other like property and as provided by
1067		-	law. The valuation and assessment of property for which an
1068	1041		exemption is granted hereunder shall be performed by the Tax
1069	1042		Commission using one or more of the cost, income and expense and
1070	1043		sales comparison approaches to estimate fair cash value in
1071	1044		accordance with the Uniform Standards of Professional Appraisal
1072	1045		Practice.
1073	1046		H. For each year that a new, expanded , or acquired
1074	1047		manufacturing facility receives an exemption pursuant to Section 6B
1075	1048		of Article X of the Oklahoma Constitution , the entity shall provide
1076	1049		to the Tax Commission a report detailing the number of new jobs
1077	1050		created and the payroll data for new jobs created since the
1078	1051		exemption was provided. The Tax Commission shall provide the data
1079	1052		collected pursuant to this subsection to the Incentive Evaluation
1080	1053		Commission for only evaluation purposes by the Commission or a
1081	1054		designee.
1082	1055		I. The Tax Commission shall have the authority and duty to
1083	1056		prescribe forms and to promulgate rules as may be necessary to carry
1084	1057		out and administer the terms and provisions of this section.
1085	1058		SECTION 2. AMENDATORY 68 O.S. 2021, S ection 205, as last
1086	1059		amended by Section 1, Chapter 208, O.S.L. 2024 (68 O.S. Supp. 2024,
1087	1060		Section 205), is amended to read as follows:
1088	1061		Section 205. A. The records and files of the Oklahoma Tax
1089	1062		Commission concerning the administration of the Uniform Tax
	1063	+	Procedure Code or of any state tax law shall be considered
	1064	+	confidential and privileged , except as otherwise provided for by
1090	1065
1091		-	SB577 HFLR Page 22
1092		-	BOLD FACE denotes Committee Amendments. 1
	1066	+	ENGR. S. B. NO. 577 Page 22 1
1093	1067		2
1094	1068		3
1095	1069		4
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1116	1090
1117		-	Procedure Code or of any state tax law shall be considered
1118		-	confidential and privileged, except as otherwise provided for by
1119	1091		law, and neither the Tax Commission nor any employee engaged in the
1120	1092		administration of the Tax Commission or charged with the custody of
1121	1093		any such records or files nor any person who may have secured
1122	1094		information from the Tax Commission shall disclose any information
1123	1095		obtained from the records or files or from any examination or
1124	1096		inspection of the premises or property of any person.
1125	1097		B. Except as provided in paragraph 26 of subsection C of this
1126	1098		section, neither the Tax Commi ssion nor any employee engaged in the
1127	1099		administration of the Tax Commission or charged with the custody of
1128	1100		any such records or files shall be required by any court of this
1129	1101		state to produce any of the records or files for the inspection of
1130	1102		any person or for use in any action or proceeding, except when the
1131	1103		records or files or the facts shown thereby are directly involved in
1132	1104		an action or proceeding pursuant to the provisions of t he Uniform
1133	1105		Tax Procedure Code or of the state tax law, or when the
1134	1106		determination of the action or proceeding will affect the validity
1135	1107		or the amount of the claim of the state pursuant to any state tax
1136	1108		law, or when the information contained in the records or files
1137	1109		constitutes evidence of violation of the provisions of the Uniform
1138	1110		Tax Procedure Code or of any state tax law.
1139	1111		C. The provisions of this section shall not prevent the Tax
1140	1112		Commission, or with respect to the Oklahoma Department of Commerce
	1113	+	in administration of the Oklahoma Rural Jobs Act as provided by
	1114	+	paragraph 22 of this subsecti on, from disclosing the following
1141	1115
1142		-	SB577 HFLR Page 23
1143		-	BOLD FACE denotes Committee Amendments. 1
	1116	+	ENGR. S. B. NO. 577 Page 23 1
1144	1117		2
1145	1118		3
1146	1119		4
1147	1120		5
1148	1121		6
1149	1122		7
1150	1123		8
1151	1124		9
1152	1125		10
1153	1126		11
1154	1127		12
1155	1128		13
1156	1129		14
1157	1130		15
1158	1131		16
1159	1132		17
1160	1133		18
1161	1134		19
1162	1135		20
1163	1136		21
1164	1137		22
1165	1138		23
1166	1139		24
1167	1140
1168		-	in administration of the Oklahoma Rural Jobs Act as provided by
1169		-	paragraph 22 of this subsection, from disclosing the following
1170	1141		information and no liability whatsoever, civil or criminal, shall
1171	1142		attach to any member of the Tax Commission, or the Oklahoma
1172	1143		Department of Commerce as applicable, or any employee thereof for
1173	1144		any error or omission in the disclosure of such information:
1174	1145		1. The delivery to a taxpayer or a duly authorized
1175	1146		representative of the taxpayer of a copy of any report or any other
1176	1147		paper filed by the tax payer pursuant to the provisions of the
1177	1148		Uniform Tax Procedure Code or of any state tax law;
1178	1149		2. The exchange of information that is not protected by the
1179	1150		federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
1180	1151		pursuant to reciprocal agreements en tered into by the Tax Commission
1181	1152		and other state agencies or agencies of the federal government;
1182	1153		3. The publication of statistics so classified as to prevent
1183	1154		the identification of a particular report and the items thereof;
1184	1155		4. The examination of records a nd files by the State Auditor
1185	1156		and Inspector or the duly authorized agents of the St ate Auditor and
1186	1157		Inspector;
1187	1158		5. The disclosing of information or evidence to the Oklahoma
1188	1159		State Bureau of Investigation, Attorney General, Oklahoma State
1189	1160		Bureau of Narcotics and Dangerous Drugs Control, any district
1190	1161		attorney or agent of any federal law enforcement agency when the
1191	1162		information or evidence is to be used by such officials to
	1163	+	investigate or prosecute violations of the criminal provisions of
	1164	+	the Uniform Tax Procedur e Code or of any state tax law or of any
1192	1165
1193		-	SB577 HFLR Page 24
1194		-	BOLD FACE denotes Committee Amendments. 1
	1166	+	ENGR. S. B. NO. 577 Page 24 1
1195	1167		2
1196	1168		3
1197	1169		4
1198	1170		5
1199	1171		6
1200	1172		7
1201	1173		8
1202	1174		9
1203	1175		10
1204	1176		11
1205	1177		12
1206	1178		13
1207	1179		14
1208	1180		15
1209	1181		16
1210	1182		17
1211	1183		18
1212	1184		19
1213	1185		20
1214	1186		21
1215	1187		22
1216	1188		23
1217	1189		24
1218	1190
1219		-	investigate or prosecute violations of the criminal provisions of
1220		-	the Uniform Tax Procedure Code or of any state tax law or of any
1221	1191		federal crime committed against this state . Any information
1222	1192		disclosed to the Oklahoma State Bureau of Investigation, Attorney
1223	1193		General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
1224	1194		Control, any district at torney or agent of any federal law
1225	1195		enforcement agency shall be kept confidential by such person and not
1226	1196		be disclosed except when presented to a court in a prosecution for
1227	1197		violation of the tax laws of this state or except as specifically
1228	1198		authorized by law, and a violation by the Oklahoma State Bureau of
1229	1199		Investigation, Attorney General, Ok lahoma State Bureau of Narcotics
1230	1200		and Dangerous Drugs Control, district attorney or agent of any
1231	1201		federal law enforcement agency by otherwise releasing the
1232	1202		information shall be a felony;
1233	1203		6. The use by any division of the Tax Commission of any
1234	1204		information or evidence in the possession of or contained in any
1235	1205		report or return filed with any other division of the Tax
1236	1206		Commission;
1237	1207		7. The furnishing, at the discretion of the Tax Com mission, of
1238	1208		any information disclosed by its records or files to any official
1239	1209		person or body of this state, any other state, the United States or
1240	1210		foreign country who is concerned with the administration or
1241	1211		assessment of any similar tax in this state, any o ther state or the
1242	1212		United States. The provisions of this paragraph shall include the
	1213	+	furnishing of information by the Tax Commission to a county assessor
	1214	+	to determine the amount of gross household income pursuant to the
1243	1215
1244		-	SB577 HFLR Page 25
1245		-	BOLD FACE denotes Committee Amendments. 1
	1216	+	ENGR. S. B. NO. 577 Page 25 1
1246	1217		2
1247	1218		3
1248	1219		4
1249	1220		5
1250	1221		6
1251	1222		7
1252	1223		8
1253	1224		9
1254	1225		10
1255	1226		11
1256	1227		12
1257	1228		13
1258	1229		14
1259	1230		15
1260	1231		16
1261	1232		17
1262	1233		18
1263	1234		19
1264	1235		20
1265	1236		21
1266	1237		22
1267	1238		23
1268	1239		24
1269	1240
1270		-	furnishing of information by the Tax Commission to a county assess or
1271		-	to determine the amount of gross household income pursuant to the
1272	1241		provisions of Section 8C of Article X of the Oklahoma Constitution
1273	1242		or Section 2890 of this title. The Tax Commission s hall promulgate
1274	1243		rules to give guidance to the county assessors regarding the type of
1275	1244		information which may be used by the county assessors in determining
1276	1245		the amount of gross household income pursuant to Section 8C of
1277	1246		Article X of the Oklahoma Constitution or Section 2890 of this
1278	1247		title. The provisions of this paragraph shall also include the
1279	1248		furnishing of information to the State Treasurer for the purpose of
1280	1249		administration of the Uniform Unclaimed Property Act;
1281	1250		8. The furnishing of information to other sta te agencies for
1282	1251		the limited purpose of aiding in the collection of debts owed by
1283	1252		individuals to such requesting agencies;
1284	1253		9. The furnishing of information requested by any member of the
1285	1254		general public and stated in the sworn lists or schedules of taxable
1286	1255		property of public service corporations organized, existing, or
1287	1256		doing business in this state which are submitted to and certified by
1288	1257		the State Board of Equalization pursuant to the provisions of
1289	1258		Section 2858 of this title and Section 21 of Article X of the
1290	1259		Oklahoma Constitution, provided such information would be a public
1291	1260		record if filed pursuant to Sections 2838 and 2839 of this title on
1292	1261		behalf of a corporation other than a public service corporation;
	1262	+	10. The furnishing of information requested by any member of
	1263	+	the general public and stated in the findings of the Tax Commission
	1264	+	as to the adjustment and equalization of the valuation of real and
1293	1265
1294		-	SB577 HFLR Page 26
1295		-	BOLD FACE denotes Committee Amendments. 1
	1266	+	ENGR. S. B. NO. 577 Page 26 1
1296	1267		2
1297	1268		3
1298	1269		4
1299	1270		5
1300	1271		6
1301	1272		7
1302	1273		8
1303	1274		9
1304	1275		10
1305	1276		11
1306	1277		12
1307	1278		13
1308	1279		14
1309	1280		15
1310	1281		16
1311	1282		17
1312	1283		18
1313	1284		19
1314	1285		20
1315	1286		21
1316	1287		22
1317	1288		23
1318	1289		24
1319	1290
1320		-	10. The furnishing of information requested by any member of
1321		-	the general public and stated in the findings of the Tax Comm ission
1322		-	as to the adjustment and equalization of the valuation of real and
1323	1291		personal property of the counti es of the state, which are submitted
1324	1292		to and certified by the State Board of Equaliz ation pursuant to the
1325	1293		provisions of Section 2865 of this title and Section 21 of Article X
1326	1294		of the Oklahoma Constitution;
1327	1295		11. The furnishing of information as to the issuanc e or
1328	1296		revocation of any tax permit, license or exemption by the Tax
1329	1297		Commission as provided for by law. Such information shall be
1330	1298		limited to the name of the person issued the permit, license or
1331	1299		exemption, the name of the business entity authorized to engage in
1332	1300		business pursuant to the permit, license or exemption, the address
1333	1301		of the business entity and the grounds for revocation;
1334	1302		12. The posting of notice of revocation of any tax permit or
1335	1303		license upon the premises of the place of business of any business
1336	1304		entity which has had any tax permit or license revoked by the Tax
1337	1305		Commission as provided for by law. Such notice shall be limited to
1338	1306		the name of the person issued the permit or license, the name of the
1339	1307		business entity authorized to engage in business pursu ant to the
1340	1308		permit or license, the address of the business entity and the
1341	1309		grounds for revocation;
1342	1310		13. The furnishing of information upon written request by any
1343	1311		member of the general public as to the outstanding and unpaid amount
	1312	+	due and owing by any taxpay er of this state for any delinquent tax,
	1313	+	together with penalty and interest, for which a tax warrant or a
	1314	+	certificate of indebtedness has been filed pursuant to law;
1344	1315
1345		-	SB577 HFLR Page 27
1346		-	BOLD FACE denotes Committee Amendments. 1
	1316	+	ENGR. S. B. NO. 577 Page 27 1
1347	1317		2
1348	1318		3
1349	1319		4
1350	1320		5
1351	1321		6
1352	1322		7
1353	1323		8
1354	1324		9
1355	1325		10
1356	1326		11
1357	1327		12
1358	1328		13
1359	1329		14
1360	1330		15
1361	1331		16
1362	1332		17
1363	1333		18
1364	1334		19
1365	1335		20
1366	1336		21
1367	1337		22
1368	1338		23
1369	1339		24
1370	1340
1371		-	due and owing by any taxpay er of this state for any delinquent tax,
1372		-	together with penalty and interest, for which a tax warrant or a
1373		-	certificate of indebtedness has been filed pu rsuant to law;
1374	1341		14. After the filing of a tax warrant pursuant to law, the
1375	1342		furnishing of information upon written request by any member of the
1376	1343		general public as to any agreement entered in to by the Tax
1377	1344		Commission concerning a compromise of tax liability for an amount
1378	1345		less than the amount of tax liability stated on such warrant;
1379	1346		15. The disclosure of informat ion necessary to complete the
1380	1347		performance of any contract authorized by this title to any person
1381	1348		with whom the Tax Commission has contracted;
1382	1349		16. The disclosure of information to any person for a purpose
1383	1350		as authorized by the taxpayer pursuant to a waiver of
1384	1351		confidentiality. The waiver shall be in writing and shall be made
1385	1352		upon such form as the Tax Commission may prescribe;
1386	1353		17. The disclosure of information required in order to comply
1387	1354		with the provisions of Section 2369 of this title;
1388	1355		18. The disclosure to an employer, as defined in Sections
1389	1356		2385.1 and 2385.3 of this title, of information required in order to
1390	1357		collect the tax imposed by Section 2385.2 of this title;
1391	1358		19. The disclosure to a plaintiff of a corporation ’s last-known
1392	1359		address shown on the recor ds of the Franchise Tax Division of the
1393	1360		Tax Commission in order for such plaintiff to comply with the
1394	1361		requirements of Section 2004 of Title 12 of the Oklahoma Statutes;
	1362	+	20. The disclosure of information directly involved in the
	1363	+	resolution of the protest b y a taxpayer to an assessment of tax or
	1364	+	additional tax or the resolution of a claim for refund filed by a
1395	1365
1396		-	SB577 HFLR Page 28
1397		-	BOLD FACE denotes Committee Amendments. 1
	1366	+	ENGR. S. B. NO. 577 Page 28 1
1398	1367		2
1399	1368		3
1400	1369		4
1401	1370		5
1402	1371		6
1403	1372		7
1404	1373		8
1405	1374		9
1406	1375		10
1407	1376		11
1408	1377		12
1409	1378		13
1410	1379		14
1411	1380		15
1412	1381		16
1413	1382		17
1414	1383		18
1415	1384		19
1416	1385		20
1417	1386		21
1418	1387		22
1419	1388		23
1420	1389		24
1421	1390
1422		-	20. The disclosure of information directly involved in the
1423		-	resolution of the protest b y a taxpayer to an assessment of tax or
1424		-	additional tax or the resolution of a claim for refund filed by a
1425	1391		taxpayer, including the disclosure of the pendency of an
1426	1392		administrative proceeding involving such protest or claim, to a
1427	1393		person called by the Tax Comm ission as an expert witness or as a
1428	1394		witness whose area of knowledge or expertise sp ecifically addresses
1429	1395		the issue addressed in the protest or claim for refund. Such
1430	1396		disclosure to a witness shall be limited to information pertaining
1431	1397		to the specific knowled ge of that witness as to the transaction or
1432	1398		relationship between taxpayer and witness;
1433	1399		21. The disclosure of information necessary to implement an
1434	1400		agreement authorized by Section 2702 of this title when such
1435	1401		information is directly involved in the resolut ion of issues arising
1436	1402		out of the enforcement of a municipal sales tax ordinance. S uch
1437	1403		disclosure shall be to the governing body or to the municipal
1438	1404		attorney, if so designated by the governing body;
1439	1405		22. The furnishing of information regarding incentive pa yments
1440	1406		made pursuant to the provisions of Sections 3601 through 3609 of
1441	1407		this title, incentive payments made pursuant to the provisions of
1442	1408		Sections 3501 through 3508 of this title, or tax credits claimed
1443	1409		pursuant to the provisions of Sections 1 through 8 of this act
1444	1410		Sections 3930 through 3937 of this title ;
	1411	+	23. The furnishing to a prospe ctive purchaser of any business,
	1412	+	or his or her authorized representative, of information relating to
	1413	+	any liabilities, delinquencies, assessments or warrants of the
	1414	+	prospective seller of the business which have not been filed of
1445	1415
1446		-	SB577 HFLR Page 29
1447		-	BOLD FACE denotes Committee Amendments. 1
	1416	+	ENGR. S. B. NO. 577 Page 29 1
1448	1417		2
1449	1418		3
1450	1419		4
1451	1420		5
1452	1421		6
1453	1422		7
1454	1423		8
1455	1424		9
1456	1425		10
1457	1426		11
1458	1427		12
1459	1428		13
1460	1429		14
1461	1430		15
1462	1431		16
1463	1432		17
1464	1433		18
1465	1434		19
1466	1435		20
1467	1436		21
1468	1437		22
1469	1438		23
1470	1439		24
1471	1440
1472		-	23. The furnishing to a prospective purchaser of any business,
1473		-	or his or her authorized representa tive, of information relating to
1474		-	any liabilities, delinquencies, assessments or warrants of the
1475		-	prospective seller of the business which have not been filed of
1476	1441		record, established or become final and which relate solely to the
1477	1442		seller’s business. Any disclosure under this paragraph shall only
1478	1443		be allowed upon the presentment by the prospective buyer, or the
1479	1444		buyer’s authorized representative, of the purchase contract and a
1480	1445		written authorization between the parties;
1481	1446		24. The furnishing of information as to the amount of state
1482	1447		revenue affected by the issuance or granting of any tax permit,
1483	1448		license, exemption, dedu ction, credit or other tax preference by the
1484	1449		Tax Commission as provided for by law. Such information shall be
1485	1450		limited to the type of permit, license, exemption, deduction, credit
1486	1451		or other tax preference issued or granted, the date and duration of
1487	1452		such permit, license, exemption, deduction, credit or other tax
1488	1453		preference and the amount o f such revenue. The provisions of this
1489	1454		paragraph shall not authorize the disclosure of the name of the
1490	1455		person issued such permit, license, exemption, deduction, credit or
1491	1456		other tax preference, or the name of the business entity authorized
1492	1457		to engage in business pursuant to the permit, license, exemption,
1493	1458		deduction, credit or other tax preference;
1494	1459		25. The examination of records and files of a person or entity
1495	1460		by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
	1461	+	Control, district attorney or the Att orney General pursuant to a
	1462	+	court order by a magistrate in whose territorial jurisdiction the
	1463	+	person or entity resides, or where the Tax Commission records and
	1464	+	files are physically located. Such an order may only be issued upon
1496	1465
1497		-	SB577 HFLR Page 30
1498		-	BOLD FACE denotes Committee Amendments. 1
	1466	+	ENGR. S. B. NO. 577 Page 30 1
1499	1467		2
1500	1468		3
1501	1469		4
1502	1470		5
1503	1471		6
1504	1472		7
1505	1473		8
1506	1474		9
1507	1475		10
1508	1476		11
1509	1477		12
1510	1478		13
1511	1479		14
1512	1480		15
1513	1481		16
1514	1482		17
1515	1483		18
1516	1484		19
1517	1485		20
1518	1486		21
1519	1487		22
1520	1488		23
1521	1489		24
1522	1490
1523		-	Control, district attorney or the Attorney General pursuant to a
1524		-	court order by a magistrate in whose ter ritorial jurisdiction the
1525		-	person or entity resides, or where the Tax Commission records and
1526		-	files are physically located. Such an order may only be issued upon
1527	1491		a sworn application by an agent of the Oklahoma State Bureau of
1528	1492		Narcotics and Dangerous Drugs Control or the Attorney General,
1529	1493		certifying that the person or entity whose records and files are to
1530	1494		be examined is the target of an ongoing investigation of a felony
1531	1495		violation of the Unifo rm Controlled Dangerous Substances Act and
1532	1496		that information resulting from such an examination would likely be
1533	1497		relevant to that investigation. Any records or information ob tained
1534	1498		pursuant to such an order may only be used by the Oklahoma State
1535	1499		Bureau of Narcotics and Dangerous Drugs Control, district attorney
1536	1500		or the Attorney General in the investigation and prosecution of a
1537	1501		felony violation of the Uniform Controlled Dangerou s Substances Act
1538	1502		or money laundering pursuant to Section 2001 of Title 21 of the
1539	1503		Oklahoma Statutes. Any such order issued pursuant to this
1540	1504		paragraph, along with the underlying application, shall be sealed
1541	1505		and not disclosed to the person or entity whose re cords were
1542	1506		examined, for a period of ninety (90) days. The issuing magistrate
1543	1507		may grant extensions of such period upon a showing of good cause in
1544	1508		furtherance of the investigation. Upon the expiration of ninety
1545	1509		(90) days and any extensions granted by the magistrate, a copy of
1546	1510		the application and order shall be served upon the person or entity
	1511	+	whose records were examined, along with a copy of the records or
	1512	+	information actually provided by the Tax Commission;
	1513	+	26. The disclosure of information, as prescribe d by this
	1514	+	paragraph, which is related to the proposed or actual usage of tax
1547	1515
1548		-	SB577 HFLR Page 31
1549		-	BOLD FACE denotes Committee Amendments. 1
	1516	+	ENGR. S. B. NO. 577 Page 31 1
1550	1517		2
1551	1518		3
1552	1519		4
1553	1520		5
1554	1521		6
1555	1522		7
1556	1523		8
1557	1524		9
1558	1525		10
1559	1526		11
1560	1527		12
1561	1528		13
1562	1529		14
1563	1530		15
1564	1531		16
1565	1532		17
1566	1533		18
1567	1534		19
1568	1535		20
1569	1536		21
1570	1537		22
1571	1538		23
1572	1539		24
1573	1540
1574		-	whose records were examined, along with a copy of the records or
1575		-	information actually provided by the Tax Commission;
1576		-	26. The disclosure of information, as prescribe d by this
1577		-	paragraph, which is related to the proposed or actual usage of tax
1578	1541		credits pursuant to Section 2357.7 of this title, the Small Business
1579	1542		Capital Formation Incentive Act or the Rural Venture Capital
1580	1543		Formation Incentive Act. Unless the context clea rly requires
1581	1544		otherwise, the terms used in this paragraph shall have the same
1582	1545		meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this
1583	1546		title. The disclosure of information authorized by this paragraph
1584	1547		shall include:
1585	1548		a. the legal name of any qualifi ed venture capital
1586	1549		company, qualified small business capital company or
1587	1550		qualified rural small business capital company,
1588	1551		b. the identity or legal name of any person or entity
1589	1552		that is a shareholder or partner of a qualified
1590	1553		venture capital company, qualified small business
1591	1554		capital company or qualified rural small business
1592	1555		capital company,
1593	1556		c. the identity or legal name of any Oklahoma business
1594	1557		venture, Oklahoma small business venture or Oklahoma
1595	1558		rural small business venture in which a qualified
1596	1559		investment has been made by a capital company, or
	1560	+	d. the amount of funds invested in a qualified venture
	1561	+	capital company, the amount of qualified investments
	1562	+	in a qualified small business capital company or
	1563	+	qualified rural small business capital company and the
	1564	+	amount of investments made by a qualified venture
1597	1565
1598		-	SB577 HFLR Page 32
1599		-	BOLD FACE denotes Committee Amendments. 1
	1566	+	ENGR. S. B. NO. 577 Page 32 1
1600	1567		2
1601	1568		3
1602	1569		4
1603	1570		5
1604	1571		6
1605	1572		7
1606	1573		8
1607	1574		9
1608	1575		10
1609	1576		11
1610	1577		12
1611	1578		13
1612	1579		14
1613	1580		15
1614	1581		16
1615	1582		17
1616	1583		18
1617	1584		19
1618	1585		20
1619	1586		21
1620	1587		22
1621	1588		23
1622	1589		24
1623	1590
1624		-	d. the amount of funds invested in a qualified venture
1625		-	capital company, the amount of qualified investments
1626		-	in a qualified small business capital company or
1627		-	qualified rural small business capital company and the
1628		-	amount of investments made by a qualified venture
1629	1591		capital company, qualified small business capital
1630	1592		company, or qualified rural small business capital
1631	1593		company;
1632	1594		27. The disclosure of specific information as required by
1633	1595		Section 46 of Title 62 of the Oklahoma Statute s;
1634	1596		28. The disclosure of specific information as required by
1635	1597		Section 205.5 of this title;
1636	1598		29. The disclosure of specific information as required by
1637	1599		Section 205.6 of this title;
1638	1600		30. The disclosure of information to the State Treasurer
1639	1601		necessary to implement Section 2368.27 of this title;
1640	1602		31. The disclosure of specific information to t he Oklahoma
1641	1603		Health Care Authority for purposes of determining eligibility for
1642	1604		current or potential recipients of assistance from the Oklahoma
1643	1605		Medicaid Program;
1644	1606		32. The disclosure of information to the Oklahoma Department of
1645	1607		Veterans Affairs including but not limited to the name and basis for
1646	1608		eligibility of each individual who qualifies for the sales tax
	1609	+	exemption authorized in paragraph 34 of Section 1357 of this title;
	1610	+	or
	1611	+	33. The disclosure of information to the Oklahoma Medical
	1612	+	Marijuana Authority for t he purposes of compliance with the Oklahoma
	1613	+	Medical Marijuana and Patient Protection Act or Section 420 et seq.
	1614	+	of Title 63 of the Oklahoma Statutes ; or
1647	1615
1648		-	SB577 HFLR Page 33
1649		-	BOLD FACE denotes Committee Amendments. 1
	1616	+	ENGR. S. B. NO. 577 Page 33 1
1650	1617		2
1651	1618		3
1652	1619		4
1653	1620		5
1654	1621		6
1655	1622		7
1656	1623		8
1657	1624		9
1658	1625		10
1659	1626		11
1660	1627		12
1661	1628		13
1662	1629		14
1663	1630		15
1664	1631		16
1665	1632		17
1666	1633		18
1667	1634		19
1668	1635		20
1669	1636		21
1670	1637		22
1671	1638		23
1672	1639		24
1673	1640
1674		-	exemption authorized in paragraph 34 of Section 1357 of this title;
1675		-	or
1676		-	33. The disclosure of information to the Oklahoma Medical
1677		-	Marijuana Authority for the purposes of compliance with the Oklahoma
1678		-	Medical Marijuana and Pa tient Protection Act or Section 420 et seq.
1679		-	of Title 63 of the Oklahoma Statutes ; or
1680	1641		34. The disclosure of information required in order to comply
1681	1642		with the provisions of subsection H of Section 2902 of this title .
1682	1643		D. The Tax Commission shall cause to be prepared and made
1683	1644		available for public inspection in the office of the Tax Commission
1684	1645		in such manner as it may determine an annual list containing the
1685	1646		name and post office address of each person, whether individual,
1686	1647		corporate or otherwise, making and filing an income tax return with
1687	1648		the Tax Commission.
1688	1649		It is specifically provided that no liability whatsoever, civil
1689	1650		or criminal, shall attach to any member of the Tax Commission or any
1690	1651		employee thereof for any error or omission of any name or address in
1691	1652		the preparation and publication of the list.
1692	1653		E. The Tax Commission shall prepare or cause to be prepared a
1693	1654		report on all provisions of state tax law that reduce state revenue
1694	1655		through exclusions, deductions, credits, exemptions, deferrals or
1695	1656		other preferential tax treatments. The report shall be prepared not
1696	1657		later than October 1 of each even -numbered year and shal l be
1697	1658		submitted to the Governor, the President Pro Tempore of the Senate
	1659	+	and the Speaker of the House of Representatives. The Tax Commission
	1660	+	may prepare and submit supplements to the report at other times of
	1661	+	the year if additional or updated information re levant to the report
	1662	+	becomes available. The report shall include, for the previous
	1663	+	fiscal year, the Tax Commission ’s best estimate of the amount of
	1664	+	state revenue that would have been collected but for the existence
1698	1665
1699		-	SB577 HFLR Page 34
1700		-	BOLD FACE denotes Committee Amendments. 1
	1666	+	ENGR. S. B. NO. 577 Page 34 1
1701	1667		2
1702	1668		3
1703	1669		4
1704	1670		5
1705	1671		6
1706	1672		7
1707	1673		8
1708	1674		9
1709	1675		10
1710	1676		11
1711	1677		12
1712	1678		13
1713	1679		14
1714	1680		15
1715	1681		16
1716	1682		17
1717	1683		18
1718	1684		19
1719	1685		20
1720	1686		21
1721	1687		22
1722	1688		23
1723	1689		24
1724	1690
1725		-	and the Speaker of the House of Representatives. The Tax Commission
1726		-	may prepare and submit supplements to the report at other times of
1727		-	the year if additional or updated information relevant to the report
1728		-	becomes available. The report shall include, for the previous
1729		-	fiscal year, the Tax Commission ’s best estimate of the amount of
1730		-	state revenue that would have been collected but for the existence
1731	1691		of each such exclusion, deduction, credi t, exemption, deferral or
1732	1692		other preferential tax treatment allowed by law. The Tax Commission
1733	1693		may request the assistance of other state agencies as may be needed
1734	1694		to prepare the report. The Tax Commission is authorized to require
1735	1695		any recipient of a tax in centive or tax expenditure to report to the
1736	1696		Tax Commission such information as requ ested so that the Tax
1737	1697		Commission may fulfill its obligations as required by this
1738	1698		subsection. The Tax Commission may require this information to be
1739	1699		submitted in an electroni c format. The Tax Commission may disallow
1740	1700		any claim of a person for a tax incentive due to its failure to file
1741	1701		a report as required under the authority of this subsection.
1742	1702		F. It is further provided that the provisions of this section
1743	1703		shall be strictly in terpreted and shall not be construed as
1744	1704		permitting the disclosure of any other info rmation contained in the
1745	1705		records and files of the Tax Commission relating to income tax or to
1746	1706		any other taxes.
1747	1707		G. Unless otherwise provided for in this section, any violati on
1748	1708		of the provisions of this section shall constitute a misdemeanor and
	1709	+	shall be punishable by the imposition of a fine not exceeding One
	1710	+	Thousand Dollars ($1,000.00) or by imprisonment in the county jail
	1711	+	for a term not exceeding one (1) year, or by both s uch fine and
	1712	+	imprisonment, and the offender shall be removed or dismissed from
	1713	+	office.
1749	1714
1750		-	SB577 HFLR Page 35
1751		-	BOLD FACE denotes Committee Amendments. 1
	1715	+	ENGR. S. B. NO. 577 Page 35 1
1752	1716		2
1753	1717		3
1754	1718		4
1755	1719		5
1756	1720		6
1757	1721		7
1758	1722		8
1759	1723		9
1760	1724		10
1761	1725		11
1762	1726		12
1763	1727		13
1764	1728		14
1765	1729		15
1766	1730		16
1767	1731		17
1768	1732		18
1769	1733		19
1770	1734		20
1771	1735		21
1772	1736		22
1773	1737		23
1774	1738		24
1775	1739
1776		-	shall be punishable by the imposition of a fine not exceeding One
1777		-	Thousand Dollars ($1,000.00) or by imprisonment in the county jail
1778		-	for a term not exceeding one (1) year, or by both such fine and
1779		-	imprisonment, and the offender shall be removed or dismissed from
1780		-	office.
1781	1740		H. Offenses described in Section 2376 of this title shall be
1782	1741		reported to the appropriate district attorney of this state by the
1783	1742		Tax Commission as soon as the offenses a re discovered by the Tax
1784	1743		Commission or its agents or employees. The Tax Commission shall
1785	1744		make available to the appropriate district attorney or to the
1786	1745		authorized agent of the district attorney its records and files
1787	1746		pertinent to prosecutions, and such reco rds and files shall be fully
1788	1747		admissible as evidence for the purpose of such prosecu tions.
1789	1748		SECTION 3. This act shall become effective November 1, 2025.
	1749	+	Passed the Senate the 11th day of March, 2025.
1790	1750
1791		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
1792		-	04/17/2025 – DO PASS.
	1751	+
	1752	+
	1753	+	Presiding Officer of the Senate
	1754	+
	1755	+
	1756	+	Passed the House of Representatives the ____ day of __________,
	1757	+	2025.
	1758	+
	1759	+
	1760	+
	1761	+	Presiding Officer of the House
	1762	+	of Representatives
	1763	+