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OklahomaSB 1390Oklahoma 2026 Regular SessionSenate

Gross production tax; modifying apportionment of collections for certain fiscal years; modifying apportionment limit. Effective date.

Sponsored By: Darcy Jech (Republican)

Signed by Governor

Senate Committee

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Five-year averages and start date

The State Board of Equalization calculates moving five‑year averages for oil and gas tax receipts. These averages are used in other sections to trigger where extra money goes. The law takes effect November 1, 2026.

Where asphalt and ore taxes go

For taxes on asphalt and ores with uranium, lead, zinc, jack, gold, silver, or copper, 85.72% goes to the state General Revenue Fund. 7.14% goes to county highway funds by each county’s share of last year’s production. 7.14% goes to counties for per‑pupil school payments if a district levies 15 mills and offers 12 years of instruction.

Where natural gas tax money goes

The law sets fixed splits for natural gas and casinghead gas taxes. For gas taxed at 7%, 85.72% goes to the General Revenue Fund (GRF), 7.14% to county highway funds by last year’s county production share, and 7.14% to counties for per‑pupil school payments if a district levies 15 mills and offers 12 years of instruction. For gas taxed at 4%, the split is 75% GRF, 12.5% county highways, and 12.5% schools. For 2% gas, it is 50% GRF, 25% county highways, and 25% schools. For 1% gas, 50% goes to county highways and 50% to schools. From June 28, 2018 through June 30, 2025, the 5% gas rate is split 80% GRF, 10% county highways, and 10% schools. Starting July 1, 2025, the 5% gas rate is split 40% GRF, 10% county highways, 10% schools, and 40% to the Preserving and Advancing County Transportation Fund, capped at $75 million per year with any excess going to GRF. For the 7%, 4%, and 2% rates, once GRF reaches the moving five‑year average for gas, extra money goes to the Revenue Stabilization Fund.

Where oil tax money goes

The law splits oil tax money across education, infrastructure, and local funds. For 7% oil, after handling any required moving‑average and rainy‑day steps, 25.72% goes to each of three education funds, 3.745% to County Bridge and Road Improvement, 4.28% to three capital funds through FY 2032 then to the REAP Water Projects Fund starting FY 2033, 7.14% to county highways, 7.14% to schools (per‑pupil, with 15‑mill levy and 12 years of instruction), and 0.535% to the Statewide Circuit Engineering District Fund. For 4% oil, the shares are 22.5% to each education fund, 3.28% to County Bridge and Road Improvement, 3.75% to the same capital funds through FY 2032 then to REAP starting FY 2033, 12.5% to county highways, 12.5% to schools, and 0.47% to the engineering district fund. For 1% oil, 50% goes to county highways and 50% to schools. Beginning June 28, 2018, the 5% oil rate first funds the rainy‑day sequence and then sends 23.75% to each education fund, 3.28% to County Bridge and Road Improvement, 5% to the three capital funds through FY 2032 then to REAP from FY 2033, 10% to county highways, 10% to schools, and 0.47% to the engineering district fund. When oil revenue rises above the moving five‑year average, until GRF meets that average, 50% of the excess goes to GRF, 25% to county highways, and 25% to schools. There is a $150 million yearly cap on combined deposits to the listed education and infrastructure revolving funds; any excess goes to GRF.

Sponsors & Cosponsors

Sponsor

  • Darcy Jech

    Republican • Senate

Cosponsors

  • Carl Newton

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 217 • No: 23

House vote • 5/6/2026

THIRD READING

Yes: 75 • No: 16

House vote • 4/21/2026

DO PASS

Yes: 25 • No: 0

House vote • 4/21/2026

DO PASS

Yes: 25 • No: 0

House vote • 4/6/2026

DO PASS

Yes: 9 • No: 0

House vote • 4/6/2026

DO PASS

Yes: 9 • No: 0

Senate vote • 3/23/2026

THIRD READING

Yes: 38 • No: 7

Senate vote • 3/4/2026

Committee vote: Appropriations

Yes: 24 • No: 0

Senate vote • 2/23/2026

Committee vote: Revenue & Taxation

Yes: 12 • No: 0

Actions Timeline

  1. Approved by Governor 05/12/2026

    5/13/2026Senate

  2. Sent to Governor

    5/6/2026Senate

  3. Signed, returned to Senate

    5/6/2026House

  4. Enrolled, to House

    5/6/2026Senate

  5. Referred for enrollment

    5/6/2026Senate

  6. Signed, returned to Senate

    5/6/2026House

  7. Third Reading, Measure passed: Ayes: 75 Nays: 16

    5/6/2026House

  8. General Order

    5/6/2026House

  9. CR; Do Pass Appropriations and Budget Committee

    4/23/2026House

  10. Recommendation to the full committee; Do Pass Appropriations and Budget Transportation Subcommittee

    4/16/2026House

  11. Referred to Appropriations and Budget Transportation Subcommittee

    3/31/2026House

  12. Second Reading referred to Appropriations and Budget

    3/30/2026House

  13. First Reading

    3/24/2026House

  14. Engrossed to House

    3/24/2026Senate

  15. Referred for engrossment

    3/23/2026Senate

  16. Measure passed: Ayes: 38 Nays: 7

    3/23/2026Senate

  17. Title restored

    3/23/2026Senate

  18. General Order, Amended

    3/23/2026Senate

  19. Placed on General Order

    3/9/2026Senate

  20. Emergency removed

    3/4/2026Senate

  21. Title stricken

    3/4/2026Senate

  22. Reported Do Pass, amended by committee substitute Appropriations committee; CR filed

    3/4/2026Senate

  23. Referred to Appropriations

    2/23/2026Senate

  24. Reported Do Pass Revenue and Taxation committee; CR filed

    2/23/2026Senate

  25. Coauthored by Representative Newton (principal House author)

    2/11/2026Senate

Bill Text

  • Enrolled (final version)

    5/6/2026

    PDF

  • Floor (House)

    4/23/2026

    PDF

  • House Committee Report

    4/23/2026

    PDF

  • House Committee Report

    4/16/2026

    PDF

  • Engrossed

    3/24/2026

    PDF

  • Floor (Senate)

    3/5/2026

    PDF

  • Committee Substitute

    3/4/2026

    PDF

  • Senate Committee Report 2

    3/4/2026

    PDF

  • Senate Committee Report 1

    2/23/2026

    PDF

  • Introduced

    12/30/2025

    PDF

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