Bill > HB3559

This bill authorizes counties in Oklahoma to levy a tax on the severance, or extraction, of materials like rock, gravel, granite, sand, and limestone when they are mined for aggregate production by for-profit businesses, but it exempts individuals extracting these materials from their own private property for personal use and limestone used for agricultural purposes. Before this severance tax can be imposed, it must be approved by a majority of voters in a special election, or through an initiative petition signed by at least five percent of registered voters, with the tax's purpose and duration clearly stated to the voters; if the tax fails to pass, another election cannot be held for six months. Any tax levied or rate change will take effect at the start of a calendar quarter, and the county can set the tax rate up to fifteen cents per ton. The proceeds from this tax will generally go into the county's general fund to be used for roads and bridges, excluding employee compensation, and the Oklahoma Tax Commission will be responsible for collecting the tax, charging the county a fee of one-half of one percent of the collected revenue for this service, and must notify taxpayers of rate changes at least sixty days in advance. Additionally, if mining or extraction occurs within a municipality, fifty percent of the revenue generated from that area will be shared with the municipality, and counties are prohibited from imposing any other fees or charges related to aggregate mining. The bill also provides a credit against the severance tax for any sales tax already paid to the county on the materials, and it specifies procedures for initiative petitions and the timing of special elections, with the entire act set to become effective on November 1, 2026.

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb3559&Session=2600