OklahomaSB 227Oklahoma 2026 Regular SessionSenate

Gross production tax; property exempt from ad valorem tax as used in the production of material subject to gross production tax; expanding exempt property. Effective date.

Sponsored By: Julie Daniels (Republican)

Signed by Governor

Senate Committee

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Wider property tax break for oil producers

Beginning January 1, 2027, more oil and gas equipment used at producing leases is exempt from local property tax. The law names tanks, meters, and flowlines or gathering lines from the wellhead to the first sales meter or to the unit boundary, whichever is shorter. It also exempts disposal systems serving one or more wells, including the wellbore and non‑recoverable down‑hole casing used for commercial disposal of produced waste. Property stays exempt while it is essential to producing oil or gas in commercial quantities; owners must tell the county assessor when it becomes taxable. A “producing lease” means a well, lease, or unit with production in any of the prior three years that was subject to the gross production tax and was not abandoned or required to be plugged by January 1. “Payment of gross production tax” means tax paid on production in any of the three years before January 1 of the assessment year. The Oklahoma Tax Commission must issue rules to apply these exemptions.

Sponsors & Cosponsors

Sponsor

Julie Daniels
Republican • Senate

Cosponsors

Nick Archer
Republican • House
Steve Bashore
Republican • House
Anthony Moore
Republican • House
Lonnie Paxton
Republican • Senate
Brenda Stanley
Republican • Senate
Tammy West
Republican • House

Roll Call Votes

All Roll Calls

Yes: 139 • No: 25

House vote • 4/8/2026

THIRD READING

Yes: 76 • No: 14

House vote • 4/2/2026

DO PASS

Yes: 10 • No: 1

Senate vote • 3/17/2026

THIRD READING

Yes: 37 • No: 9

Senate vote • 3/4/2026

Committee vote: Rules

Yes: 16 • No: 1

Actions Timeline

Approved by Governor 04/13/2026
4/13/2026Senate
Sent to Governor
4/8/2026Senate
Signed, returned to Senate
4/8/2026House
Enrolled, to House
4/8/2026Senate
Referred for enrollment
4/8/2026Senate
Signed, returned to Senate
4/8/2026House
Third Reading, Measure passed: Ayes: 76 Nays: 14
4/8/2026House
Coauthored by Representative(s) Archer, West (Tammy), Bashore
4/8/2026House
General Order
4/8/2026House
Coauthored by Senator(s) Stanley
4/6/2026House
CR; Do Pass Rules Committee
4/6/2026House
Second Reading referred to Rules
3/30/2026House
First Reading
3/23/2026House
Engrossed to House
3/23/2026Senate
Referred for engrossment
3/17/2026Senate
Measure passed: Ayes: 37 Nays: 9
3/17/2026Senate
General Order, Considered
3/17/2026Senate
Coauthored by Representative Moore (principal House author)
3/12/2026Senate
Placed on General Order
3/9/2026Senate
Reported Do Pass, amended by committee substitute Rules committee; CR filed
3/4/2026Senate
Referred to Rules
3/2/2026Senate
Withdrawn from Appropriations committee
3/2/2026Senate
Withdrawn from Revenue and Taxation committee
3/2/2026Senate
Coauthored by Senator Paxton
2/26/2026Senate
Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee
2/4/2025Senate

Bill Text

Enrolled (final version)
4/8/2026
PDF
Floor (House)
4/8/2026
PDF
House Committee Report
4/6/2026
PDF
Engrossed
3/23/2026
PDF
Floor (Senate)
3/5/2026
PDF
Committee Substitute
3/4/2026
PDF
Senate Committee Report
3/4/2026
PDF
Introduced
12/30/2024
PDF

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