The bill amends Section 2902 of the Oklahoma Statutes to clarify the criteria for qualifying manufacturing concerns eligible for a five-year exemption from ad valorem taxes on new, expanded, or acquired manufacturing facilities. It specifies that facilities involved in mechanical or chemical transformation of materials can qualify for the exemption without a manufacturer exemption permit, provided they meet certain criteria. Additionally, the investment cost required for qualification will be adjusted annually based on the Consumer Price Index. The bill also outlines requirements for maintaining eligibility, such as a net increase in annualized base payroll and the provision of basic health benefits for employees, while detailing conditions for multiple exemptions and limitations on expansions.

Moreover, the bill allows establishments engaged in activities classified under Industry No. 518210 of the NAICS Manual to apply for exemptions on eligible personal property within real property improvements exempt from ad valorem taxation prior to November 1, 2021. It establishes a deadline for placing personal property in service by December 31, 2036, and specifies that entities engaged in electric power generation by wind will not qualify for tax exemptions. The bill includes provisions for waiving payroll requirements for certain tax years and allows exemptions for facilities that did not meet payroll requirements due to nonrecurring bonuses. It emphasizes that the provisions are intended to clarify existing law and will take effect on November 1, 2026.

Statutes affected:
Introduced: 68-2902