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 qualification, not for continued exemption in subsequent years. It also updates definitions related to manufacturing facilities and outlines specific eligibility criteria, including investment thresholds and payroll requirements. Notably, capital expenditures for direct replacement, refurbishment, repair, or maintenance of existing machinery are now included as part of the investment cost.

Additionally, the bill specifies that the average annualized wage for new direct jobs must meet the average wage requirement of the Oklahoma Quality Jobs Program Act, with waivers for certain long-standing applicants. It mandates the Oklahoma Tax Commission to publish adjusted investment amounts annually for transparency. The bill also clarifies that no initial applications for exemptions will be accepted from entities engaged in electric power generation by wind after January 1, 2018, and allows certain entities that previously applied for exemptions but did not meet payroll requirements due to nonrecurring bonuses to receive exemptions starting in 2016. Furthermore, it waives payroll requirements for specific manufacturing facilities for tax years 2021 and 2022, and introduces provisions for facilities under Industrial Group Number 3364 to waive payroll requirements for initial exemption applications filed between January 1, 2020, and March 16, 2021. An emergency clause is included, allowing the act to take effect immediately upon passage.

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