The bill amends Section 2902 of Title 68 of the Oklahoma Statutes, focusing on the ad valorem tax exemption for manufacturing facilities. It introduces a prohibition on entities employing certain individuals, specifically those classified as H-1B nonimmigrants, from qualifying for this tax exemption. The legislation clarifies the criteria for manufacturing facilities to qualify for the exemption, emphasizing that a significant portion of revenue must come from out-of-state sales and establishing investment thresholds for new or expanded facilities. Additionally, it mandates that facilities maintain or increase their base payroll and provide a basic health benefits plan to employees to retain the exemption.

Furthermore, the bill specifies that personal property placed in service by qualifying establishments before November 1, 2021, will be exempt from taxation until December 31, 2036, while any property placed in service after this date will not qualify. It also states that entities engaged in electric power generation by wind will not be considered qualifying manufacturing concerns for tax exemptions starting January 1, 2017, and outlines provisions for facilities that did not meet payroll requirements due to nonrecurring bonuses. The bill includes an application process for claiming exemptions and emphasizes that the valuation and assessment of exempt properties will be conducted by the Tax Commission. The act is set to take effect on November 1, 2026.

Statutes affected:
Introduced: 68-2902