Bill No. 688 amends Section 2902 of Title 68 of the Oklahoma Statutes, focusing on ad valorem tax exemptions for manufacturing facilities. The bill introduces an exception to payroll requirements for certain applications, allowing qualifying manufacturing concerns, particularly those engaged in marine engine manufacturing with at least 15 years of operation and significant employment levels, to be exempt from ad valorem taxes on new, expanded, or acquired facilities for five years. It also updates statutory language to define manufacturing facilities and their eligibility for tax exemptions, clarifying that investment costs can include capital expenditures for the maintenance and refurbishment of existing machinery, provided they meet specific criteria.

Additionally, the bill establishes that personal property placed in service by qualifying establishments before November 1, 2021, will be exempt from taxation until December 31, 2036, while personal property placed in service after this date will not qualify for the exemption. It specifies that entities engaged in electric power generation by wind are not classified as qualifying manufacturing concerns for tax exemptions, with no applications accepted from these entities after January 1, 2018. The bill also allows facilities under specific NAICS classifications to waive payroll requirements for tax years 2021 and 2022 based on prior year payrolls and establishes a process for filing exemption applications with the county assessor. An emergency clause is included, making the act effective immediately upon passage and approval.

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