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) · 5 edits

MODERATE

The bill was transitioned from the House of Representatives version to the Senate floor version, with substantive changes to the definition of 'manufacturing facilities' eligible for tax exemptions. The Senate version adds new categories of businesses that qualify for the exemption, including computer services and data processing establishments, and expands the definition to include certain distribution establishments. It also clarifies investment cost thresholds and adjusts the criteria for what counts as 'manufacturing facilities' compared to the House version.

Scope change

The bill's scope was expanded to include additional business types beyond traditional manufacturing, specifically computer services/data processing and distribution establishments, broadening who can claim the tax exemption.

ELIGIBILITY

Added computer services and data processing establishments as eligible for the manufacturing tax exemption if they derive at least 80% of annual gross revenues from out-of-state sales.

Added distribution establishments (Industry Numbers 49311, 49312, 49313) as eligible for the manufacturing tax exemption.

DEFINITION

Modified the definition of 'manufacturing facilities' to include repair and replacement parts facilities engaged in aircraft repair and rebuilding, whether on a factory basis or not.

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

REQUIREMENT

Added requirement for facilities to file annual affidavits with the Oklahoma Tax Commission to establish eligibility for the tax exemption.

Enrolled (final version) → Floor (House) · 4 edits

MODERATE

The bill was reformatted from Senate to House floor version with minor structural changes. The substantive policy content regarding tax exemptions for manufacturing facilities remains unchanged, though some text formatting and page numbering were adjusted during the legislative process.

Scope change

No substantive change to the bill's scope or applicability; this is a procedural version change from Senate to House floor

TECHNICAL

Header information was updated to reflect House floor version instead of Senate enrolled version

Page numbering and formatting were adjusted to match House floor version standards

Added page markers and committee amendment notation for House floor version

Line breaks and text spacing were reorganized for House floor formatting requirements

Introduced → Engrossed · 3 edits · Mar 11, 2025

MINOR

This bill was amended to expand the definition of eligible manufacturing facilities to include distribution establishments meeting specific investment and employment thresholds, and to clarify what counts as qualifying investment costs for tax exemption purposes. The changes matter because they broaden the scope of businesses that can receive ad valorem tax exemptions and provide clearer guidance on what expenditures qualify for the exemption program.

Scope change

Expanded from only manufacturing facilities to also include distribution establishments meeting specific criteria

ELIGIBILITY

Added new eligibility category for distribution establishments requiring at least $5 million in initial capital investment and 100 full-time-equivalent employees

DEFINITION

Clarified that investment cost now includes capital expenditures for replacement, refurbishment, repair, or maintenance of existing machinery that qualifies for depreciation/amortization under federal tax law

TECHNICAL

Removed duplicate text and formatting inconsistencies from the original introduced version

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

MINOR

The bill transitioned from an Engrossed version to an Enrolled (final) version, which means it is ready to be signed into law. The substantive policy content of the bill remained largely unchanged, with only minor formatting and structural adjustments between versions. The bill provides tax exemptions for manufacturing facilities in Oklahoma under specific conditions.

TECHNICAL

The document header changed from 'ENGROSSED SENATE' to 'ENROLLED SENATE', indicating the bill has passed both legislative chambers and is in its final form ready for the governor's signature.

Minor formatting adjustments were made throughout the document, including reorganization of line breaks and page numbering, but no substantive policy language was altered.

A new subject line 'Ad valorem tax exemption reports' was added in the enrolled version, clarifying the bill's purpose for administrative tracking.

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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