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Oklahoma Legislature· SB 1125Coauthored by Representative Eaves (principal House author)

An act relating to excise tax, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                            STATE OF OKLAHOMA

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2                  1st Session of the 60th Legislature (2025)

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3 SENATE BILL 1125           By: Deevers
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5                            AS INTRODUCED

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6   An Act relating to excise tax; authorizing counties

6   and municipalities to levy excise tax upon the sale

7   of medical marijuana; prescribing procedures for

7   approval of excise tax; requiring a majority of

8   voters to approve levy; prohibiting election for

8   certain period if voters fail to approve levy;

9   prescribing date of effectiveness upon approval;

9   requiring initiative petitions to be in accordance

10  with certain laws; prescribing deadlines for

10  obtaining signatures and holding elections; requiring

11  state purpose for levy of tax; requiring

11  identification of the duration of the tax to voters;

12  prohibiting municipalities from redirecting funds to

12  another purpose without voter approval; creating

13  county excise tax revolving funds upon levy of

13  certain tax; providing sources of funds; providing

14  purpose for expenditures; providing for codification;

14  and providing an effective date.

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17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18  SECTION 1.      NEW LAW  A new section of law to be codified

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19 in the Oklahoma Statutes as Section 2702.2 of Title 68, unless there
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20 is created a duplication in numbering, reads as follows:
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21  A. Any municipality of this state may levy an excise tax upon

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22 the sale of medical marijuana on the gross proceeds or gross
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23 receipts derived from all sales within the municipality. Before the
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24 excise tax may be levied by the municipality, the imposition of the
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    Req. No. 1548                                              Page 1
1 tax shall first be approved by a majority of the registered voters
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2 of the municipality voting thereon at a special election called by
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3 the city council or by initiative petition signed by not less than
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4 five percent (5%) of the registered voters of the municipality who
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5 were registered at the time of the last general election. However,
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6 if a majority of the registered voters of a municipality voting fail
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7 to approve such a tax, the city council shall not call another
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8 special election for such purpose for six (6) months. Any excise
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9 tax approved by the registered voters of a municipality shall be
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10 applicable only when the point of sale is within the territorial
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11 limits of such municipality. Any excise tax levied or any change in
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12 the rate of an excise tax levied pursuant to the provisions of this
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13 section shall become effective on the first day of the calendar
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14 quarter following approval by the voters of the municipality unless
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15 another effective date, which shall also be on the first day of a
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16 calendar quarter, is specified in the ordinance or resolution
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17 levying the excise tax or changing the rate of excise tax.
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18  B. Initiative petitions calling for a special election

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19 concerning municipality excise tax proposals shall be in accordance
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20 with Sections 2, 3, 6, 18, and 24 of Title 34 of the Oklahoma
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21 Statutes. Petitions shall be submitted to the office of the city
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22 clerk for approval as to form prior to circulation. Following
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23 approval, the petitioner shall have ninety (90) days to secure the
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24 required signatures. After securing the requisite number of
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    Req. No. 1548                                              Page 2
1 signatures, the petitioner shall submit the petition and signatures
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2 to the city clerk. Following the verification of signatures, the
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3 city clerk shall present the petition to the city council. The
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4 special election shall be held within sixty (60) days of receipt of
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5 the petition. The ballot title presented to the voters at the
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6 special election shall be identical to the ballot as presented in
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7 the initiative petition.
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8   C. Any excise tax which may be levied by a municipality shall

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9 be designated for any lawful purpose deemed necessary to protect and
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10 promote the life, liberty, and property of the citizens within the
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11 jurisdiction.
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12  D. The duration of the tax could be limited or unlimited. The

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13 municipality shall identify the duration of the tax when it is
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14 presented to the voters pursuant to the provisions of subsections A
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15 and B of this section.
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16  E. Any municipality that levies a dedicated tax pursuant to a

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17 vote of the people for a stated purpose shall not redirect all or a
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18 portion of the dedicated tax revenue to another purpose without a
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19 vote of the people authorizing such action.
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20  F. If recreational marijuana is legalized under Oklahoma state

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21 law, the provisions of this section shall automatically extend to
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22 recreational marijuana at the same rates and conditions applicable
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23 to medical marijuana.
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    Req. No. 1548                               Page 3
1  SECTION 2.     NEW LAW  A new section of law to be codified

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2 in the Oklahoma Statutes as Section 2710 of Title 68, unless there
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3 is created a duplication in numbering, reads as follows:
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4  A. Any county of this state may levy an excise tax upon the

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5 sale of medical marijuana on the gross proceeds or gross receipts
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6 derived from all sales within the county. Before the excise tax may
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7 be levied by the county, the imposition of the tax shall first be
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8 approved by a majority of the registered voters of the county voting
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9 thereon at a special election called by the board of county
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10 commissioners or by initiative petition signed by not less than five
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11 percent (5%) of the registered voters of the county who were
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12 registered at the time of the last general election. However, if a
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13 majority of the registered voters of a county voting fails to
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14 approve such a tax, the board of county commissioners shall not call
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15 another special election for such purpose for six (6) months. Any
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16 excise tax approved by the registered voters of a county shall be
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17 applicable only when the point of sale is within the territorial
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18 limits of such county. Any excise tax levied or any change in the
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19 rate of an excise tax levied pursuant to the provisions of this
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20 section shall become effective on the first day of the calendar
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21 quarter following approval by the voters of the county unless
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22 another effective date, which shall also be on the first day of a
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23 calendar quarter, is specified in the ordinance or resolution
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24 levying the excise tax or changing the rate of excise tax.
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   Req. No. 1548                                               Page 4
1   B. Initiative petitions calling for a special election

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2 concerning county excise tax proposals shall be in accordance with
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3 Sections 2, 3, 6, 18, and 24 of Title 34 of the Oklahoma Statutes.
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4 Petitions shall be submitted to the office of the county clerk for
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5 approval as to form prior to circulation. Following approval, the
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6 petitioner shall have ninety (90) days to secure the required
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7 signatures. After securing the requisite number of signatures, the
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8 petitioner shall submit the petition and signatures to the county
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9 clerk. Following the verification of signatures, the county clerk
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10 shall present the petition to the board of county commissioners.
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11 The special election shall be held within sixty (60) days of
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12 receiving the petition. The ballot title presented to the voters at
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13 the special election shall be identical to the ballot as presented
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14 in the initiative petition.
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15  C. Any excise tax which may be levied by a county shall be

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16 designated for a particular purpose.
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17  D. The duration of the tax could be limited or unlimited. The

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18 county shall identify the duration of the tax when it is presented
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19 to the voters pursuant to the provisions of subsections A and B of
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20 this section.
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21  E. There are hereby created one or more county excise tax

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22 revolving funds in each county which levies an excise tax under this
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23 section. Each revolving fund shall be designated for a particular
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24 purpose and shall consist of all monies generated by the excise tax
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    Req. No. 1548                                           Page 5
1 which are designated for such purpose. Monies in the funds shall
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2 only be expended for the purposes specifically designated as
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3 required by this section. A county excise tax revolving fund shall
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4 be a continuing fund not subject to fiscal year limitations.
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5   F. If recreational marijuana is legalized under Oklahoma state

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6 law, the provisions of this section shall automatically extend to
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7 recreational marijuana at the same rates and conditions applicable
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8 to medical marijuana.
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9   SECTION 3. This act shall become effective November 1, 2025.

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    Req. No. 1548                              Page 6
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