Bill > HB1220

This bill addresses the taxation of specific utility-related bond revenue streams, primarily focusing on preventing municipalities from imposing local taxes or franchise fees on securitization revenue generated from two 2021 utility consumer protection acts. Specifically, the bill prohibits cities and towns from charging franchise fees or local taxes on revenue streams used to repay bonds issued by the Oklahoma Development Finance Authority for unregulated and regulated utility protection purposes. The legislation stems from the Legislature's finding that certain utilities used private financing methods to avoid immediately burdening consumers with extraordinary energy purchase costs, and that such actions were in the state's best interest. The bill creates new legal provisions that explicitly bar municipalities from imposing sales, use, or franchise taxes on these specific revenue streams, both for existing bonds issued in February 2021 and for similar future bond obligations. The bill includes an emergency clause, meaning it will take effect immediately upon passage and approval, underscoring the Legislature's view that this is a matter of urgent statewide concern rather than a local municipal issue.

Agriculture and Natural Resources, Budget and Finance, Government Affairs

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1220&Session=2600