The bill amends Section 2902 of Title 68 of the Oklahoma Statutes, focusing on ad valorem tax exemptions for manufacturing facilities. It introduces exceptions to payroll requirements for certain manufacturing concerns, allowing them to be exempt from taxes on new, expanded, or acquired facilities for five years, particularly benefiting those engaged in marine engine manufacturing with a stable employment history. The bill also expands the definition of qualifying investment costs to include capital expenditures for the replacement, refurbishment, repair, or maintenance of existing machinery, which were previously excluded. Additionally, it mandates that establishments applying for exemptions must meet specific average annualized wage requirements, with the Oklahoma Department of Commerce responsible for verifying compliance.

Moreover, the bill specifies that entities engaged in electric power generation by wind will no longer qualify for manufacturing tax exemptions effective January 1, 2017, and no applications from such entities will be accepted after January 1, 2018. It also waives payroll requirements for certain manufacturing facilities for tax years 2021 and 2022, allowing continued exemptions if other criteria are met. The bill clarifies definitions related to manufacturing facilities and outlines the application process for claiming exemptions, including the requirement for annual applications to be filed with the county assessor. Overall, the bill aims to streamline the exemption process while ensuring compliance with updated payroll and investment requirements.

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