Senate Bill No. 1125 authorizes counties and municipalities in Oklahoma to levy an excise tax on the sale of medical marijuana, contingent upon approval from a majority of registered voters in the respective jurisdiction. The bill outlines the procedures for initiating such a tax, including the requirement for a special election called by the city council or board of county commissioners, or through an initiative petition signed by at least five percent of registered voters. If voters reject the tax, no new election can be called for six months. The tax becomes effective on the first day of the calendar quarter following voter approval unless a different date is specified.

Additionally, the bill establishes that any excise tax levied must be designated for lawful purposes that protect and promote the welfare of citizens, and municipalities cannot redirect these funds without voter consent. It also creates county excise tax revolving funds to manage the generated revenue, which must be used for specified purposes. The provisions of the bill will automatically extend to recreational marijuana if it is legalized in Oklahoma. The act is set to take effect on November 1, 2025.