The bill amends Section 1001 of the Oklahoma Statutes regarding the gross production tax on certain interests, specifically oil, gas, asphalt, and mineral ores. It modifies the tax rate for oil and gas production from seven percent (7%) to five percent (5%) and updates statutory references and language. The bill also clarifies that the tax on oil and gas production applies to wells spudded before and after July 18, 2018, with a five percent (5%) tax rate for the first thirty-six months of production. Additionally, it introduces provisions for exemptions related to secondary and tertiary recovery projects and the use of recycled water in well completion.

The bill establishes a refund mechanism for operators of exempted production, detailing the process for claiming refunds and setting limits on the total amount of refunds available per fiscal year. It also grants the Oklahoma Tax Commission the authority to require information from operators to ensure accurate tax computation and compliance. The act is set to become effective on November 1, 2025.

Statutes affected:
Introduced: 68-1001