Bill > SB1123

This bill amends Oklahoma's tax collection laws to create a mechanism for penalizing municipalities deemed to be obstructing federal immigration law enforcement. Under the new provisions, the Attorney General can investigate whether a city is acting as a "sanctuary city" by impeding immigration law enforcement or aiding individuals violating immigration laws. If the Attorney General makes such a determination, the Oklahoma Tax Commission will be required to place all sales and lodging taxes collected for that municipality into a special agency account instead of remitting them directly to the city. These funds will remain in the special account until the Attorney General notifies the Tax Commission that the municipality has ceased the actions that prompted the initial investigation. The bill defines a "sanctuary city" as any city with an ordinance or directive that limits cooperation with federal immigration enforcement or aids individuals in violating immigration law. The bill will become effective on November 1, 2025, and provides a new framework for potential financial consequences for municipalities that the state determines are not fully cooperating with federal immigration enforcement efforts.