Bill > HB1146

This bill authorizes Oklahoma counties to levy a severance tax on surface-mined materials (excluding coal) through a special election process, with specific provisions and restrictions. Counties can call an election to impose a tax up to ten cents per ton on materials like aggregate, requiring voter approval by majority vote. The bill provides several important exemptions, including materials extracted by property owners for non-profit purposes, limestone for agricultural use, and materials used in hydraulic fracturing or for producing goods within the state. If approved, the tax revenue would be split equally between the county general fund (designated for road and bridge construction) and municipal general revenue funds (for infrastructure projects), with distribution based on population. The tax can have a limited or unlimited duration, and the Oklahoma Tax Commission must provide 60-day notice of any rate changes. The bill also allows counties to contract with the Tax Commission to assess and collect the tax, with the commission receiving a 0.5% fee. Initiative petitions for such a tax must follow specific procedural requirements, including securing signatures from at least 5% of registered voters, and if a tax proposal fails, the county cannot call another election for one year. The bill is set to become effective on November 1, 2025, and includes provisions preventing additional fees or assessments on mining activities beyond the severance tax.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1146&Session=2600