The bill amends Section 2902 of Title 68 of the Oklahoma Statutes, focusing on ad valorem tax exemptions for manufacturing facilities. It introduces an exception to payroll requirements for certain qualifying manufacturing concerns, allowing them to be exempt from ad valorem taxes on new, expanded, or acquired facilities for five years. The bill clarifies that the twelve-month unoccupancy requirement for existing facilities applies only for initial exemption eligibility, not for continued exemptions. It also updates definitions related to manufacturing facilities, includes capital expenditures for machinery maintenance as part of investment costs, and mandates that facilities provide a basic health benefits plan to employees. The Oklahoma Department of Commerce will adjust the required investment amount annually based on the Consumer Price Index, and a verification process for payroll information will be established through the Oklahoma Employment Security Commission.

Additionally, the bill specifies that entities engaged in electric power generation by wind are ineligible for exemptions after January 1, 2018, while allowing certain manufacturing entities facing payroll issues due to nonrecurring bonuses to receive exemptions starting from calendar year 2016. It waives payroll requirements for specific manufacturing facilities for tax years 2021 and 2022, provided they meet other criteria. The bill also allows facilities under Industrial Group Number 3364 of the NAICS Manual to waive payroll requirements for applications filed between January 1, 2020, and March 16, 2021. A structured process for filing exemption applications with the county assessor is established, and the Tax Commission is authorized to create necessary forms and rules for implementation. An emergency clause is included for immediate effect upon passage and approval.

Statutes affected:
Introduced: 68-2902
Floor (House): 68-2902
Floor (Senate): 68-2902
Engrossed: 68-2902
Amended And Engrossed: 68-2902
Enrolled (final version): 68-2902