Bill > SB311

This bill modifies Oklahoma's gross production tax (GPT) rates for oil and gas production, reducing the standard tax rate from 7% to 5% for both oil and gas. The bill specifically changes the tax rate for wells drilled on or after July 18, 2018, which will now be taxed at 5% for the first 36 months of production. Additionally, the bill includes provisions for potential future changes if State Question No. 795 is approved, which would modify the tax rate to 2% for the first 36 months and then increase to 7% thereafter. The legislation also maintains existing exemptions and refund mechanisms for secondary and tertiary recovery projects and wells completed using recycled water, with total annual refund limits of $15 million for secondary/tertiary recovery projects and $10 million for recycled water well completions. The bill preserves the tax's status as being in lieu of other state and local property taxes for mineral rights and production equipment, and it includes provisions for the Oklahoma Tax Commission to verify and enforce tax compliance. The effective date of the bill is set for November 1, 2025, providing clarity and advance notice to the energy production industry about the new tax rates.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb311&Session=2500