SB 577: Ad valorem tax; requiring submission of certain information for eligibility of certain exemption; requiring the Oklahoma Tax Commission to share information with the Incentive Evaluation Commission. Effective date. - Oklahoma

Floor (House) → Floor (Senate) · 6 edits

MODERATE

This bill version transitioned from the House to the Senate floor, where significant substantive changes were made to the definition of 'manufacturing facilities' eligible for tax exemptions. The Senate version expanded eligibility to include computer services, data processing, and distribution establishments, while also updating investment cost thresholds and inflation adjustments.

Scope change

The bill's scope was significantly expanded from primarily manufacturing facilities to include computer services, data processing, and distribution establishments as qualifying facilities for tax exemptions.

DEFINITION

Expanded the definition of 'manufacturing facilities' to include establishments engaged in computer services, data processing, and distribution in addition to traditional manufacturing.

Clarified that 'investment cost' includes capital expenditures for direct replacement, refurbishment, repair, or maintenance of existing machinery that qualifies for depreciation.

ELIGIBILITY

Added new eligibility criteria for facilities engaged in computer and data processing services, requiring at least 80% of annual gross revenues from out-of-state sales.

REQUIREMENT

Added specific investment cost thresholds of $500,000 for assets placed into service in 2022, with annual inflation adjustments based on CPI-U for subsequent years.

Added requirement for facilities to annually file affidavits with the Oklahoma Tax Commission to establish eligibility.

Added requirement for the Oklahoma Department of Commerce to determine annual inflation adjustments and publish adjusted dollar amounts on their website.

Enrolled (final version) → Floor (House) · 3 edits

MINOR

The bill text was reformatted from Senate-enrolled version to House-floor version, with minor formatting adjustments and page number updates. The substantive policy content regarding tax exemptions for manufacturing facilities, investment thresholds, and reporting requirements remains unchanged.

TECHNICAL

Document header changed from Senate-enrolled format to House-floor format with updated page numbering and formatting

Line breaks and spacing were adjusted throughout the document for floor version formatting

Page headers and footers were updated to reflect House floor version with committee amendment notation

Engrossed → Enrolled (final version) · 3 edits · May 7, 2025

MINOR

The bill was finalized and approved for enactment. The substantive policy content remains largely the same, with minor formatting adjustments and a new subject line added to clarify the bill's purpose regarding ad valorem tax exemption reports.

Scope change

No substantive change to the bill's scope or applicability; the text represents the final enrolled version ready for signing into law.

TECHNICAL

Header changed from 'ENGROSSED SENATE' to 'ENROLLED SENATE' indicating the bill has passed both chambers and is in its final form.

New subject line 'Ad valorem tax exemption reports' added to clarify the bill's focus.

Minor formatting and spacing adjustments throughout the document to prepare it for final enactment.

Introduced → Engrossed · 4 edits · Mar 11, 2025

MODERATE

SB 577 was amended from its introduced version to the engrossed version, primarily adding new eligibility criteria for manufacturing facilities and clarifying investment cost definitions. The engrossed version expands the scope of qualifying facilities to include distribution establishments meeting specific capital investment and employment thresholds, and clarifies that certain capital expenditures for existing machinery qualify as expansion investments.

Scope change

The bill's scope expanded to include distribution establishments as qualifying manufacturing facilities, in addition to the previously listed categories of aircraft repair, computer services, and general manufacturing.

ELIGIBILITY

Added a new paragraph (e) defining distribution establishments as qualifying manufacturing facilities if they meet specific capital investment and employment requirements.

DEFINITION

Modified the definition of investment cost to clarify that capital expenditures for direct replacement, refurbishment, repair, or maintenance of existing machinery qualify as expansion if they meet depreciation requirements.

TECHNICAL

Removed introductory text and formatting elements from the introduced version, including page headers and introductory act language.

Added engrossed version formatting including sponsor information, page numbers, and proper bill header structure.

Ad valorem tax; requiring submission of certain information for eligibility of certain exemption; requiring the Oklahoma Tax Commission to share information with the Incentive Evaluation Commission. Effective date.

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