Senate Bill No. 577 amends Oklahoma's laws regarding ad valorem tax exemptions for manufacturing facilities, establishing new requirements for qualifying entities. The bill mandates that these manufacturing concerns provide specific information to the Oklahoma Tax Commission, which must then share relevant data with the Incentive Evaluation Commission. It clarifies eligibility criteria, including investment thresholds and employment requirements, and specifies that capital expenditures for the replacement, refurbishment, repair, or maintenance of existing machinery or equipment can be included in investment costs for exemption purposes. Additionally, the bill updates confidentiality provisions, allowing for the disclosure of certain information while emphasizing the need for facilities to maintain or increase base payroll and offer basic health benefits to employees.

The bill also introduces new reporting requirements for entities receiving tax exemptions, requiring annual reports on job creation and payroll data to be submitted to the Tax Commission for evaluation by the Incentive Evaluation Commission. It clarifies that personal property within improvements exempt from ad valorem taxation prior to November 1, 2021, will continue to qualify for exemption until December 31, 2036, and specifies that entities engaged in electric power generation by wind are not eligible for tax exemptions. Furthermore, the bill allows certain manufacturing facilities to waive payroll requirements for the tax years 2021 and 2022, provided they meet other criteria. The Tax Commission is tasked with preparing an annual report on the impact of tax law provisions that reduce state revenue, and the bill is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-2902, 68-205
Floor (Senate): 68-2902, 68-205