The bill amends Section 2902 of Title 68 of the Oklahoma Statutes, focusing on the exemption from ad valorem tax for manufacturing facilities. It introduces new payroll thresholds based on county population, updates definitions related to manufacturing facilities, and prescribes a new method for calculating payroll. Key changes include the requirement for facilities to provide health benefits to employees, the inclusion of capital expenditures in the investment cost calculation, and the stipulation that facilities must demonstrate a net increase in annualized base payroll or specific capital expenditures to qualify for the exemption. Additionally, facilities engaged in computer services and data processing must meet certain revenue thresholds to be eligible.

The legislation also outlines the process for claiming exemptions, including application deadlines and the roles of county assessors and the Oklahoma Tax Commission in reviewing applications. It establishes that the five-year exemption period for qualifying facilities will commence on January 1 following the initial use of the property in manufacturing. Notably, facilities involved in wind power generation will not qualify for these manufacturing exemptions, and there are provisions for waiving payroll requirements for certain tax years. An emergency clause is included, allowing the bill to take effect immediately upon passage and approval.

Statutes affected:
Introduced: 68-2902