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Oklahoma Legislature· SB 1390Approved by Governor 05/12/2026

An act relating to gross production tax, the official text

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1                   STATE OF OKLAHOMA

1

2                  2nd Session of the 60th Legislature (2026)

2

3 SENATE BILL 1390              By: Jech
3

4

4

5

5

6

6

7

7

8                   AS INTRODUCED

8

9   An Act relating to gross production tax; amending 68

9   O.S. 2021, Section 1004, as last amended by Section

10  2, Chapter 490, O.S.L. 2025 (68 O.S. Supp. 2025,

10  Section 1004), which relates to apportionments;

11  modifying apportionments for certain fiscal years;

11  modifying annual limitation on apportionment amounts

12  for certain fiscal years; updating statutory

12  language; updating statutory reference; providing an

13  effective date; and declaring an emergency.

13

14

14

15

15

16

16

17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
17

18  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 1004, as

18

19 last amended by Section 2, Chapter 490, O.S.L. 2025 (68 O.S. Supp.
19

20 2025, Section 1004), is amended to read as follows:
20

21  Section 1004. A. As used in this section:

21

22  1. "Moving five-year average amount for gas" means, for

22

23 purposes of the apportionments prescribed by this section, the
23

24 amount of gross production tax on natural gas collected for each of
24

    Req. No. 3058                                              Page 1
1 the five (5) complete fiscal years, as computed by the State Board
1

2 of Equalization pursuant to Section 34.103 of Title 62 of the
2

3 Oklahoma Statutes; and
3

4   2. "Moving five-year average amount for oil" means, for

4

5 purposes of the apportionments prescribed by this section, the
5

6 amount of gross production tax on oil collected for each of the five
6

7 (5) complete fiscal years, as computed by the State Board of
7

8 Equalization pursuant to Section 34.103 of Title 62 of the Oklahoma
8

9 Statutes.
9

10  B. Beginning July 1, 2017, the gross production tax provided

10

11 for in Section 1001 of this title is hereby levied and shall be
11

12 collected and apportioned as follows:
12

13  1. For all monies collected from the tax levied on asphalt or

13

14 ores bearing uranium, lead, zinc, jack, gold, silver or copper:
14

15  a. eighty-five and seventy-two one-hundredths percent

15

16                 (85.72%) shall be paid to the State Treasurer of the

16

17                 state to be placed in the General Revenue Fund of the

17

18                 state and used for the general expense of state

18

19                 government, to be paid out pursuant to direct

19

20                 appropriation by the Legislature,

20

21  b. seven and fourteen one-hundredths percent (7.14%) of

21

22                 the sum collected from natural gas and/or casinghead

22

23                 gas or asphalt or ores bearing uranium, lead, zinc,

23

24                 jack, gold, silver or copper shall be paid to the

24

    Req. No. 3058                                                 Page 2
1                  various county treasurers to be credited to the County

1

2                  Highway Fund county highway fund as follows: Each

2

3                  county shall receive a proportionate share of the

3

4                  funds available based upon the proportion of the total

4

5                  value of production from such county in the

5

6                  corresponding month of the preceding year, and

6

7          c. seven and fourteen one-hundredths percent (7.14%)

7

8                  shall be allocated to each county as provided for in

8

9                  subparagraph b of this paragraph and shall be

9

10                 apportioned, on an average daily attendance per capita

10

11                 distribution basis, as certified by the State

11

12                 Superintendent of Public Instruction to the school

12

13                 districts of the county where such pupils attend

13

14                 school regardless of residence of such pupil, provided

14

15                 the school district makes an ad valorem tax levy of

15

16                 fifteen (15) mills for the current year and maintains

16

17                 twelve (12) years of instruction;

17

18  2. For all monies collected from the tax levied on natural gas

18

19 and/or and casinghead gas at a tax rate of seven percent (7%)
19

20 pursuant to the provisions of subsection B of Section 1001 of this
20

21 title:
21

22         a. after the total revenue apportioned to the General

22

23                 Revenue Fund as prescribed by subparagraph b of this

23

24                 paragraph equals the moving five-year average amount

24

    Req. No. 3058                                                 Page 3
1                  for gas as defined by paragraph 1 of subsection A of

1

2                  this section, there shall be apportioned from the

2

3                  gross production tax levy imposed pursuant to Section

3

4                  1001 of this title on natural gas and/or and

4

5                  casinghead gas to the Revenue Stabilization Fund

5

6                  created by Section 34.102 of Title 62 of the Oklahoma

6

7                  Statutes, the amount of revenue, if any, which exceeds

7

8                  the moving five-year average amount for gas as defined

8

9                  pursuant to paragraph 1 of subsection A of this

9

10                 section,

10

11  b. until the apportionment to the General Revenue Fund

11

12                 equals the moving five-year average amount for gas as

12

13                 prescribed by paragraph 1 of subsection A of this

13

14                 section, eighty-five and seventy-two one-hundredths

14

15                 percent (85.72%) shall be paid to the State Treasurer

15

16                 of the state to be placed in the General Revenue Fund

16

17                 of the state and used for the general expense of state

17

18                 government, to be paid out pursuant to direct

18

19                 appropriation by the Legislature,

19

20  c. before any other apportionment of revenue has been

20

21                 made pursuant to this paragraph, seven and fourteen

21

22                 one-hundredths percent (7.14%) of the sum collected

22

23                 from natural gas and/or and casinghead gas shall be

23

24                 paid to the various county treasurers to be credited

24

    Req. No. 3058                                                 Page 4
1                  to the County Highway Fund county highway fund as

1

2                  follows: Each county shall receive a proportionate

2

3                  share of the funds available based upon the proportion

3

4                  of the total value of production from such county in

4

5                  the corresponding month of the preceding year, and

5

6          d. before any other apportionment of revenue has been

6

7                  made pursuant to this paragraph, seven and fourteen

7

8                  one-hundredths percent (7.14%) shall be allocated to

8

9                  each county as provided for in subparagraph c of this

9

10                 paragraph and shall be apportioned, on an average

10

11                 daily attendance per capita distribution basis, as

11

12                 certified by the State Superintendent of Public

12

13                 Instruction to the school districts of the county

13

14                 where such pupils attend school regardless of

14

15                 residence of such pupil, provided the school district

15

16                 makes an ad valorem tax levy of fifteen (15) mills for

16

17                 the current year and maintains twelve (12) years of

17

18                 instruction;

18

19  3. For all monies collected from the tax levied on natural gas

19

20 and/or and casinghead gas at a tax rate of four percent (4%)
20

21 pursuant to the provisions of subsection B of Section 1001 of this
21

22 title:
22

23         a. after the total revenue apportioned to the General

23

24                 Revenue Fund as prescribed by subparagraph b of this

24

    Req. No. 3058                                                 Page 5
1                  paragraph equals the moving five-year average amount

1

2                  for gas as defined by paragraph 1 of subsection A of

2

3                  this section, there shall be apportioned from the

3

4                  gross production tax levy imposed pursuant to Section

4

5                  1001 of this title on natural gas and/or and

5

6                  casinghead gas to the Revenue Stabilization Fund

6

7                  created pursuant to Section 34.102 of Title 62 of the

7

8                  Oklahoma Statutes, the amount of revenue, if any,

8

9                  which exceeds the moving five-year average amount for

9

10                 gas as defined pursuant to paragraph 1 of subsection A

10

11                 of this section,

11

12  b. until the apportionment to the General Revenue Fund

12

13                 equals the moving five-year average amount for gas as

13

14                 prescribed by paragraph 1 of subsection A of this

14

15                 section, seventy-five percent (75%) shall be paid to

15

16                 the State Treasurer of the state to be placed in the

16

17                 General Revenue Fund of the state and used for the

17

18                 general expense of state government, to be paid out

18

19                 pursuant to direct appropriation by the Legislature,

19

20  c. before any other apportionment of revenue has been

20

21                 made pursuant to this paragraph, twelve and one-half

21

22                 percent (12.5%) of the sum collected from natural gas

22

23                 and/or and casinghead gas shall be paid to the various

23

24                 county treasurers to be credited to the County Highway

24

    Req. No. 3058                                                Page 6
1                  Fund county highway fund as follows: Each county

1

2                  shall receive a proportionate share of the funds

2

3                  available based upon the proportion of the total value

3

4                  of production from such county in the corresponding

4

5                  month of the preceding year, and

5

6   d. before any other apportionment of revenue has been

6

7                  made pursuant to this paragraph, twelve and one-half

7

8                  percent (12.5%) shall be allocated to each county as

8

9                  provided for in subparagraph c of this paragraph and

9

10                 shall be apportioned, on an average daily attendance

10

11                 per capita distribution basis, as certified by the

11

12                 State Superintendent of Public Instruction to the

12

13                 school districts of the county where such pupils

13

14                 attend school regardless of residence of such pupil,

14

15                 provided the school district makes an ad valorem tax

15

16                 levy of fifteen (15) mills for the current year and

16

17                 maintains twelve (12) years of instruction;

17

18  4. For all monies collected from the tax levied on natural gas

18

19 and/or and casinghead gas at a tax rate of one percent (1%) pursuant
19

20 to the provisions of subsection B of Section 1001 of this title:
20

21  a. fifty percent (50%) of the sum collected from natural

21

22                 gas and/or and casinghead gas shall be paid to the

22

23                 various county treasurers to be credited to the County

23

24                 Highway Fund county highway fund as follows: Each

24

    Req. No. 3058                                               Page 7
1                  county shall receive a proportionate share of the

1

2                  funds available based upon the proportion of the total

2

3                  value of production from such county in the

3

4                  corresponding month of the preceding year, and

4

5   b. fifty percent (50%) shall be allocated to each county

5

6                  as provided for in subparagraph a of this paragraph

6

7                  and shall be apportioned, on an average daily

7

8                  attendance per capita distribution basis, as certified

8

9                  by the State Superintendent of Public Instruction to

9

10                 the school districts of the county where such pupils

10

11                 attend school regardless of residence of such pupil,

11

12                 provided the school district makes an ad valorem tax

12

13                 levy of fifteen (15) mills for the current year and

13

14                 maintains twelve (12) years of instruction;

14

15  5. For all monies collected from the tax levied on natural gas

15

16 and/or and casinghead gas at a tax rate of two percent (2%) pursuant
16

17 to the provisions of paragraph 3 of subsection B of Section 1001 of
17

18 this title:
18

19  a. after the total revenue apportioned to the General

19

20                 Revenue Fund as prescribed by subparagraph b of this

20

21                 paragraph equals the moving five-year average amount

21

22                 for gas as defined by paragraph 1 of subsection A of

22

23                 this section, there shall be apportioned from the

23

24                 gross production tax levy imposed pursuant to Section

24

    Req. No. 3058                                                 Page 8
1                  1001 of this title on gas to the Revenue Stabilization

1

2                  Fund created by Section 34.102 of Title 62 of the

2

3                  Oklahoma Statutes, the amount of revenue, if any,

3

4                  which exceeds the moving five-year average amount for

4

5                  natural gas and/or and casinghead gas as defined

5

6                  pursuant to paragraph 1 of subsection A of this

6

7                  section,

7

8   b. until the apportionment to the General Revenue Fund

8

9                  equals the moving five-year average amount for gas as

9

10                 prescribed by paragraph 1 of subsection A of this

10

11                 section, fifty percent (50%) shall be paid to the

11

12                 State Treasurer to be placed in the General Revenue

12

13                 Fund of the state and used for the general expense of

13

14                 state government, to be paid out pursuant to direct

14

15                 appropriation by the Legislature,

15

16  c. before any other apportionment of revenue has been

16

17                 made pursuant to this paragraph, twenty-five percent

17

18                 (25%) of the sum collected from natural gas and/or and

18

19                 casinghead gas shall be paid to the various county

19

20                 treasurers to be credited to the County Highway Fund

20

21                 county highway fund as follows: Each county shall

21

22                 receive a proportionate share of the funds available

22

23                 based upon the proportion of the total value of

23

24

24

    Req. No. 3058                                     Page 9
1                  production from such county in the corresponding month

1

2                  of the preceding year, and

2

3   d. before any other apportionment of revenue has been

3

4                  made pursuant to this paragraph, twenty-five percent

4

5                  (25%) shall be allocated to each county as provided

5

6                  for in subparagraph c of this paragraph and shall be

6

7                  apportioned on an average daily attendance per capita

7

8                  distribution basis, as certified by the State

8

9                  Superintendent of Public Instruction, to the school

9

10                 districts of the county where such pupils attend

10

11                 school regardless of residence of such pupil, provided

11

12                 the school district makes an ad valorem tax levy of

12

13                 fifteen (15) mills for the current year and maintains

13

14                 twelve (12) years of instruction;

14

15  6. For all monies collected from the tax levied on oil at a tax

15

16 rate of seven percent (7%) pursuant to the provisions of subsection
16

17 B of Section 1001 of this title:
17

18  a. there shall be apportioned from the gross production

18

19                 tax levy imposed pursuant to Section 1001 of this

19

20                 title on oil to the Revenue Stabilization Fund created

20

21                 by Section 34.102 of Title 62 of the Oklahoma

21

22                 Statutes, after the applicable maximum amount

22

23                 prescribed by subsection C of this section has been

23

24                 deposited to the funds therein specified, the amount

24

    Req. No. 3058                                     Page 10
1                  of revenue, if any, which would otherwise be

1

2                  apportioned to the General Revenue Fund and which

2

3                  exceeds the moving five-year average amount for oil as

3

4                  defined pursuant to paragraph 2 of subsection A of

4

5                  this section,

5

6   b. before any other apportionment of revenue has been

6

7                  made pursuant to this paragraph, twenty-five and

7

8                  seventy-two one-hundredths percent (25.72%) shall be

8

9                  paid to the State Treasurer to be placed in the Common

9

10                 Education Technology Revolving Fund created in Section

10

11                 34.90 of Title 62 of the Oklahoma Statutes,

11

12  c. before any other apportionment of revenue has been

12

13                 made pursuant to this paragraph, twenty-five and

13

14                 seventy-two one-hundredths percent (25.72%) shall be

14

15                 paid to the State Treasurer to be placed in the Higher

15

16                 Education Capital Revolving Fund created in Section

16

17                 34.91 of Title 62 of the Oklahoma Statutes,

17

18  d. before any other apportionment of revenue has been

18

19                 made pursuant to this paragraph, twenty-five and

19

20                 seventy-two one-hundredths percent (25.72%) shall be

20

21                 paid to the State Treasurer to be placed in the

21

22                 Oklahoma Student Aid Revolving Fund created in Section

22

23                 34.92 of Title 62 of the Oklahoma Statutes,

23

24

24

    Req. No. 3058                                                Page 11
1   e. before any other apportionment of revenue has been

1

2                  made pursuant to this paragraph, three and seven

2

3                  hundred forty-five one-thousandths percent (3.745%)

3

4                  shall be distributed to the various counties of the

4

5                  state for deposit into the County Bridge and Road

5

6                  Improvement Fund of each county based on a formula

6

7                  developed by the Department of Transportation and

7

8                  approved by the Department of Transportation County

8

9                  Advisory Board created pursuant to Section 302.1 of

9

10                 Title 69 of the Oklahoma Statutes to be used for the

10

11                 purposes set forth in the County Bridge and Road

11

12                 Improvement Act. The formula shall be similar to the

12

13                 formula currently used for the distribution of monies

13

14                 in the County Bridge Program funds, but shall also

14

15                 take into consideration the effect of the terrain and

15

16                 traffic volume as related to county road improvement

16

17                 and maintenance costs,

17

18  f. before any other apportionment of revenue has been

18

19                 made pursuant to this paragraph, four and twenty-eight

19

20                 one-hundredths percent (4.28%) shall be paid to the

20

21                 State Treasurer to be apportioned to:

21

22                 (1) the following sources and in the following

22

23                 amounts through the fiscal year ending June 30,

23

24                 2027 June 30, 2032:

24

    Req. No. 3058                                         Page 12
1                  (a) thirty-three and one-third percent (33 1/3%)

1

2                  to the Oklahoma Tourism and Recreation

2

3                  Department Capital Expenditure Revolving

3

4                  Fund created pursuant to Section 2254.1 of

4

5                  Title 74 of the Oklahoma Statutes,

5

6                  (b) thirty-three and one-third percent (33 1/3%)

6

7                  to the Oklahoma Conservation Commission

7

8                  Infrastructure Revolving Fund created

8

9                  pursuant to Section 3-2-110 of Title 27A of

9

10                 the Oklahoma Statutes, and

10

11                 (c) thirty-three and one-third percent (33 1/3%)

11

12                 to the Community Water Infrastructure

12

13                 Development Revolving Fund created pursuant

13

14                 to Section 1085.7A of Title 82 of the

14

15                 Oklahoma Statutes, and

15

16                 (2) the Oklahoma Water Resources Board Rural Economic

16

17                 Action Plan Water Projects Fund for the fiscal

17

18                 year beginning July 1, 2027 July 1, 2032, and for

18

19                 each fiscal year thereafter,

19

20  g. before any other apportionment of revenue has been

20

21                 made pursuant to this paragraph, seven and fourteen

21

22                 one-hundredths percent (7.14%) of the sum collected

22

23                 from oil shall be paid to the various county

23

24                 treasurers, to be credited to the County Highway Fund

24

    Req. No. 3058                                                Page 13
1                  county highway fund as follows: Each county shall

1

2                  receive a proportionate share of the funds available

2

3                  based upon the proportion of the total value of

3

4                  production from such county in the corresponding month

4

5                  of the preceding year,

5

6   h. before any other apportionment of revenue has been

6

7                  made pursuant to this paragraph, seven and fourteen

7

8                  one-hundredths percent (7.14%) shall be allocated to

8

9                  each county as provided in subparagraph g of this

9

10                 paragraph and shall be apportioned, on an average

10

11                 daily attendance per capita distribution basis, as

11

12                 certified by the State Superintendent of Public

12

13                 Instruction, to the school districts of the county

13

14                 where such pupils attend school regardless of

14

15                 residence of such pupil, provided the school district

15

16                 makes an ad valorem tax levy of fifteen (15) mills for

16

17                 the current year and maintains twelve (12) years of

17

18                 instruction, and

18

19  i. before any other apportionment of revenue has been

19

20                 made pursuant to this paragraph, five hundred thirty-

20

21                 five one-thousandths percent (0.535%) of the levy

21

22                 shall be transmitted by the Oklahoma Tax Commission to

22

23                 the Statewide Circuit Engineering District Revolving

23

24

24

    Req. No. 3058                          Page 14
1                  Fund as created in Section 687.2 of Title 69 of the

1

2                  Oklahoma Statutes;

2

3   7. For all monies collected from the tax levied on oil at a tax

3

4 rate of four percent (4%) pursuant to the provisions of subsection B
4

5 of Section 1001 of this title:
5

6   a. there shall be apportioned from the gross production

6

7                  tax levy imposed pursuant to Section 1001 of this

7

8                  title on oil to the Revenue Stabilization Fund created

8

9                  by Section 34.102 of Title 62 of the Oklahoma

9

10                 Statutes, after the applicable maximum amount

10

11                 prescribed by subsection C of this section has been

11

12                 deposited to the funds therein specified, the amount

12

13                 of revenue, if any, which would otherwise be

13

14                 apportioned to the General Revenue Fund and which

14

15                 exceeds the moving five-year average amount for oil as

15

16                 defined pursuant to paragraph 2 of subsection A of

16

17                 this section,

17

18  b. before any other apportionment of revenue has been

18

19                 made pursuant to this paragraph, twenty-two and one-

19

20                 half percent (22.5%) shall be paid to the State

20

21                 Treasurer to be placed in the Common Education

21

22                 Technology Revolving Fund created in Section 34.90 of

22

23                 Title 62 of the Oklahoma Statutes,

23

24

24

    Req. No. 3058                                                Page 15
1   c. before any other apportionment of revenue has been

1

2                  made pursuant to this paragraph, twenty-two and one-

2

3                  half percent (22.5%) shall be paid to the State

3

4                  Treasurer to be placed in the Higher Education Capital

4

5                  Revolving Fund created in Section 34.91 of Title 62 of

5

6                  the Oklahoma Statutes,

6

7   d. before any other apportionment of revenue has been

7

8                  made pursuant to this paragraph, twenty-two and one-

8

9                  half percent (22.5%) shall be paid to the State

9

10                 Treasurer to be placed in the Oklahoma Student Aid

10

11                 Revolving Fund created in Section 34.92 of Title 62 of

11

12                 the Oklahoma Statutes,

12

13  e. before any other apportionment of revenue has been

13

14                 made pursuant to this paragraph, three and twenty-

14

15                 eight one-hundredths percent (3.28%) shall be

15

16                 distributed to the various counties of the state for

16

17                 deposit into the County Bridge and Road Improvement

17

18                 Fund of each county based on a formula developed by

18

19                 the Department of Transportation and approved by the

19

20                 Department of Transportation County Advisory Board

20

21                 created pursuant to Section 302.1 of Title 69 of the

21

22                 Oklahoma Statutes to be used for the purposes set

22

23                 forth in the County Bridge and Road Improvement Act.

23

24                 The formula shall be similar to the formula currently

24

    Req. No. 3058                          Page 16
1                  used for the distribution of monies in the County

1

2                  Bridge Program funds, but shall also take into

2

3                  consideration the effect of the terrain and traffic

3

4                  volume as related to county road improvement and

4

5                  maintenance costs,

5

6   f. before any other apportionment of revenue has been

6

7                  made pursuant to this paragraph, three and seventy-

7

8                  five one-hundredths percent (3.75%) shall be paid to

8

9                  the State Treasurer to be apportioned to:

9

10                 (1) the following sources and in the following

10

11                 amounts through the fiscal year ending June 30,

11

12                 2027 June 30, 2032:

12

13                 (a) thirty-three and one-third percent (33 1/3%)

13

14                 to the Oklahoma Tourism and Recreation

14

15                 Department Capital Expenditure Revolving

15

16                 Fund created pursuant to Section 2254.1 of

16

17                 Title 74 of the Oklahoma Statutes,

17

18                 (b) thirty-three and one-third percent (33 1/3%)

18

19                 to the Oklahoma Conservation Commission

19

20                 Infrastructure Revolving Fund created

20

21                 pursuant to Section 3-2-110 of Title 27A of

21

22                 the Oklahoma Statutes, and

22

23                 (c) thirty-three and one-third percent (33 1/3%)

23

24                 to the Community Water Infrastructure

24

    Req. No. 3058                                             Page 17
1                  Development Revolving Fund created pursuant

1

2                  to Section 1085.7A of Title 82 of the

2

3                  Oklahoma Statutes, and

3

4                  (2) the Oklahoma Water Resources Board Rural Economic

4

5                  Action Plan Water Projects Fund for the fiscal

5

6                  year beginning July 1, 2027 July 1, 2032, and for

6

7                  each fiscal year thereafter,

7

8   g. before any other apportionment of revenue has been

8

9                  made pursuant to this paragraph, twelve and one-half

9

10                 percent (12.5%) of the sum collected from oil shall be

10

11                 paid to the various county treasurers, to be credited

11

12                 to the County Highway Fund county highway fund as

12

13                 follows: Each county shall receive a proportionate

13

14                 share of the funds available based upon the proportion

14

15                 of the total value of production from such county in

15

16                 the corresponding month of the preceding year,

16

17  h. before any other apportionment of revenue has been

17

18                 made pursuant to this paragraph, twelve and one-half

18

19                 percent (12.5%) shall be allocated to each county as

19

20                 provided in subparagraph g of this paragraph and shall

20

21                 be apportioned on an average daily attendance per

21

22                 capita distribution basis, as certified by the State

22

23                 Superintendent of Public Instruction, to the school

23

24                 districts of the county where such pupils attend

24

    Req. No. 3058                                Page 18
1                  school regardless of residence of such pupil, provided

1

2                  the school district makes an ad valorem tax levy of

2

3                  fifteen (15) mills for the current year and maintains

3

4                  twelve (12) years of instruction, and

4

5   i. before any other apportionment of revenue has been

5

6                  made pursuant to this paragraph, forty-seven one-

6

7                  hundredths percent (0.47%) of the levy shall be

7

8                  transmitted by the Tax Commission to the Statewide

8

9                  Circuit Engineering District Revolving Fund as created

9

10                 in Section 687.2 of Title 69 of the Oklahoma Statutes;

10

11  8. For all monies collected from the tax levied on oil at a tax

11

12 rate of one percent (1%) pursuant to the provisions of subsection B
12

13 of Section 1001 of this title:
13

14  a. fifty percent (50%) of the sum collected shall be paid

14

15                 to the various county treasurers, to be credited to

15

16                 the County Highway Fund county highway fund as

16

17                 follows: Each county shall receive a proportionate

17

18                 share of the funds available based upon the proportion

18

19                 of the total value of production from such county in

19

20                 the corresponding month of the preceding year, and

20

21  b. fifty percent (50%) shall be allocated to each county

21

22                 as provided for in subparagraph a of this paragraph

22

23                 and shall be apportioned on an average daily

23

24                 attendance per capita distribution basis, as certified

24

    Req. No. 3058                                                Page 19
1                  by the State Superintendent of Public Instruction, to

1

2                  the school districts of the county where such pupils

2

3                  attend school regardless of residence of such pupil,

3

4                  provided the school district makes an ad valorem tax

4

5                  levy of fifteen (15) mills for the current year and

5

6                  maintains twelve (12) years of instruction;

6

7   9. For all monies collected from the tax levied on oil at a tax

7

8 rate of two percent (2%) pursuant to the provisions of paragraph 3
8

9 of subsection B of Section 1001 of this title:
9

10  a. there shall be apportioned from the gross production

10

11                 tax levy imposed pursuant to Section 1001 of this

11

12                 title on oil to the Revenue Stabilization Fund created

12

13                 by Section 34.102 of Title 62 of the Oklahoma

13

14                 Statutes, the amount of revenue, if any, which exceeds

14

15                 the moving five-year average amount for oil as defined

15

16                 pursuant to paragraph 2 of subsection A of this

16

17                 section,

17

18  b. until the apportionment to the General Revenue Fund

18

19                 equals the moving five-year average amount for oil as

19

20                 prescribed by paragraph 2 of subsection A of this

20

21                 section, fifty percent (50%) shall be paid to the

21

22                 State Treasurer to be placed in the General Revenue

22

23                 Fund of the state and used for the general expense of

23

24

24

    Req. No. 3058                                               Page 20
1                  state government, to be paid out pursuant to direct

1

2                  appropriation by the Legislature,

2

3   c. before any other apportionment of revenue has been

3

4                  made pursuant to this paragraph, twenty-five percent

4

5                  (25%) of the sum collected from oil shall be paid to

5

6                  the various county treasurers, to be credited to the

6

7                  County Highway Fund county highway fund as follows:

7

8                  Each county shall receive a proportionate share of the

8

9                  funds available based upon the proportion of the total

9

10                 value of production from such county in the

10

11                 corresponding month of the preceding year, and

11

12  d. before any other apportionment of revenue has been

12

13                 made pursuant to this paragraph, twenty-five percent

13

14                 (25%) shall be allocated to each county as provided in

14

15                 subparagraph c of this paragraph and shall be

15

16                 apportioned on an average daily attendance per capita

16

17                 distribution basis, as certified by the State

17

18                 Superintendent of Public Instruction, to the school

18

19                 districts of the county where such pupils attend

19

20                 school regardless of residence of such pupil, provided

20

21                 the school district makes an ad valorem tax levy of

21

22                 fifteen (15) mills for the current year and maintains

22

23                 twelve (12) years of instruction;

23

24

24

    Req. No. 3058                                               Page 21
1   10. On or after June 28, 2018 and before July 1, 2025, the

1

2 gross production tax levied on natural gas or casinghead gas at the
2

3 rate of five percent (5%) provided for in paragraph 3 of subsection
3

4 B of Section 1001 of this title shall be apportioned as follows:
4

5   a. after the total revenue apportioned to the General

5

6                  Revenue Fund as prescribed by subparagraph b of this

6

7                  paragraph equals the moving five-year average amount

7

8                  for gas as defined by paragraph 1 of subsection A of

8

9                  this section, there shall be apportioned from the

9

10                 gross production tax levy imposed pursuant to Section

10

11                 1001 of this title on natural gas and/or and

11

12                 casinghead gas to the Revenue Stabilization Fund

12

13                 created pursuant to Section 34.102 of Title 62 of the

13

14                 Oklahoma Statutes, the amount of revenue, if any,

14

15                 which exceeds the moving five-year average amount for

15

16                 gas as defined pursuant to paragraph 1 of subsection A

16

17                 of this section,

17

18  b. until the apportionment to the General Revenue Fund

18

19                 equals the moving five-year average amount for gas as

19

20                 prescribed by paragraph 1 of subsection A of this

20

21                 section, eighty percent (80%) shall be paid to the

21

22                 State Treasurer of the state to be placed in the

22

23                 General Revenue Fund of the state and used for the

23

24

24

    Req. No. 3058                    Page 22
1                  general expense of state government, to be paid out

1

2                  pursuant to direct appropriation by the Legislature,

2

3   c. before any other apportionment of revenue has been

3

4                  made pursuant to this paragraph, ten percent (10%) of

4

5                  the sum collected from natural gas and/or and

5

6                  casinghead gas shall be paid to the various county

6

7                  treasurers to be credited to the County Highway Fund

7

8                  county highway fund as follows: Each county shall

8

9                  receive a proportionate share of the funds available

9

10                 based upon the proportion of the total value of

10

11                 production from such county in the corresponding month

11

12                 of the preceding year,

12

13  d. before any other apportionment of revenue has been

13

14                 made pursuant to this paragraph, ten percent (10%)

14

15                 shall be allocated to each county as provided for in

15

16                 subparagraph c of this paragraph and shall be

16

17                 apportioned, on an average daily attendance per capita

17

18                 distribution basis, as certified by the State

18

19                 Superintendent of Public Instruction to the school

19

20                 districts of the county where such pupils attend

20

21                 school regardless of residence of such pupil, provided

21

22                 the school district makes an ad valorem tax levy of

22

23                 fifteen (15) mills for the current year and maintains

23

24                 twelve (12) years of instruction;

24

    Req. No. 3058                                     Page 23
1   11. Beginning July 1, 2025, the gross production tax levied on

1

2 natural gas or casinghead gas at the rate of five percent (5%)
2

3 provided for in paragraph 3 of subsection B of Section 1001 of this
3

4 title shall be apportioned as follows:
4

5   a. after the total revenue apportioned to the General

5

6                  Revenue Fund as prescribed by subparagraph b of this

6

7                  paragraph equals the moving five-year average amount

7

8                  for gas as defined by paragraph 1 of subsection A of

8

9                  this section, there shall be apportioned from the

9

10                 gross production tax levy imposed pursuant to Section

10

11                 1001 of this title on natural gas and/or and

11

12                 casinghead gas to the Revenue Stabilization Fund

12

13                 created pursuant to Section 34.102 of Title 62 of the

13

14                 Oklahoma Statutes, the amount of revenue, if any,

14

15                 which exceeds the moving five-year average amount for

15

16                 gas as defined pursuant to paragraph 1 of subsection A

16

17                 of this section,

17

18  b. until the apportionment to the General Revenue Fund

18

19                 equals the moving five-year average amount for gas as

19

20                 prescribed by paragraph 1 of subsection A of this

20

21                 section, forty percent (40%) shall be paid to the

21

22                 State Treasurer of the state to be placed in the

22

23                 General Revenue Fund of the state and used for the

23

24

24

    Req. No. 3058                         Page 24
1                  general expense of state government, to be paid out

1

2                  pursuant to direct appropriation by the Legislature,

2

3   c. before any other apportionment of revenue has been

3

4                  made pursuant to this paragraph, ten percent (10%) of

4

5                  the sum collected from natural gas and/or and

5

6                  casinghead gas shall be paid to the various county

6

7                  treasurers to be credited to the County Highway Fund

7

8                  county highway fund as follows: Each county shall

8

9                  receive a proportionate share of the funds available

9

10                 based upon the proportion of the total value of

10

11                 production from such county in the corresponding month

11

12                 of the preceding year,

12

13  d. before any other apportionment of revenue has been

13

14                 made pursuant to this paragraph, ten percent (10%)

14

15                 shall be allocated to each county as provided for in

15

16                 subparagraph c of this paragraph and shall be

16

17                 apportioned, on an average daily attendance per capita

17

18                 distribution basis, as certified by the State

18

19                 Superintendent of Public Instruction to the school

19

20                 districts of the county where such pupils attend

20

21                 school regardless of residence of such pupil, provided

21

22                 the school district makes an ad valorem tax levy of

22

23                 fifteen (15) mills for the current year and maintains

23

24                 twelve (12) years of instruction, and

24

    Req. No. 3058                                         Page 25
1   e. before any other apportionment of revenue has been

1

2                  made pursuant to this paragraph, forty percent (40%)

2

3                  shall be remitted to the State Treasurer to be

3

4                  credited to the Preserving and Advancing County

4

5                  Transportation Fund created in Section 1 of this act

5

6                  508 of Title 69 of the Oklahoma Statutes, but in no

6

7                  event shall the total amount apportioned in any fiscal

7

8                  year pursuant to this subparagraph exceed Seventy-five

8

9                  Million Dollars ($75,000,000.00). Any amounts in

9

10                 excess of Seventy-five Million Dollars

10

11                 ($75,000,000.00) shall be placed in the General

11

12                 Revenue Fund of the state and used for the general

12

13                 expense of state government, to be paid out pursuant

13

14                 to direct appropriation by the Legislature; and

14

15  12. On or after June 28, 2018, the gross production tax on oil

15

16 levied at the rate of five percent (5%) provided for in paragraph 3
16

17 of subsection B of Section 1001 of this title shall be apportioned
17

18 as follows:
18

19  a. there shall be apportioned from the gross production

19

20                 tax levy imposed pursuant to Section 1001 of this

20

21                 title on oil to the Revenue Stabilization Fund created

21

22                 by Section 34.102 of Title 62 of the Oklahoma

22

23                 Statutes, after the applicable maximum amount

23

24                 prescribed by subsection C of this section has been

24

    Req. No. 3058                                          Page 26
1                  deposited to the funds therein specified, the amount

1

2                  of revenue, if any, which would otherwise be

2

3                  apportioned to the General Revenue Fund and which

3

4                  exceeds the moving five-year average amount for oil as

4

5                  defined pursuant to paragraph 2 of subsection A of

5

6                  this section,

6

7   b. before any other apportionment of revenue has been

7

8                  made pursuant to this paragraph, twenty-three and

8

9                  seventy-five one-hundredths percent (23.75%) shall be

9

10                 paid to the State Treasurer to be placed in the Common

10

11                 Education Technology Revolving Fund created in Section

11

12                 34.90 of Title 62 of the Oklahoma Statutes,

12

13  c. before any other apportionment of revenue has been

13

14                 made pursuant to this paragraph, twenty-three and

14

15                 seventy-five one-hundredths percent (23.75%) shall be

15

16                 paid to the State Treasurer to be placed in the Higher

16

17                 Education Capital Revolving Fund created in Section

17

18                 34.91 of Title 62 of the Oklahoma Statutes,

18

19  d. before any other apportionment of revenue has been

19

20                 made pursuant to this paragraph, twenty-three and

20

21                 seventy-five one-hundredths percent (23.75%) shall be

21

22                 paid to the State Treasurer to be placed in the

22

23                 Oklahoma Student Aid Revolving Fund created in Section

23

24                 34.92 of Title 62 of the Oklahoma Statutes,

24

    Req. No. 3058                                                Page 27
1   e. before any other apportionment of revenue has been

1

2                  made pursuant to this paragraph, three and twenty-

2

3                  eight one-hundredths percent (3.28%) shall be

3

4                  distributed to the various counties of the state for

4

5                  deposit into the County Bridge and Road Improvement

5

6                  Fund of each county based on a formula developed by

6

7                  the Department of Transportation and approved by the

7

8                  Department of Transportation County Advisory Board

8

9                  created pursuant to Section 302.1 of Title 69 of the

9

10                 Oklahoma Statutes to be used for the purposes set

10

11                 forth in the County Bridge and Road Improvement Act.

11

12                 The formula shall be similar to the formula currently

12

13                 used for the distribution of monies in the County

13

14                 Bridge Program funds, but shall also take into

14

15                 consideration the effect of the terrain and traffic

15

16                 volume as related to county road improvement and

16

17                 maintenance costs,

17

18  f. before any other apportionment of revenue has been

18

19                 made pursuant to this paragraph, five percent (5%)

19

20                 shall be paid to the State Treasurer to be apportioned

20

21                 to:

21

22                 (1) the following sources and in the following

22

23                      amounts through the fiscal year ending June 30,

23

24                      2027 June 30, 2032:

24

    Req. No. 3058                            Page 28
1                  (a) thirty-three and one-third percent (33 1/3%)

1

2                  to the Oklahoma Tourism and Recreation

2

3                  Department Capital Expenditure Revolving

3

4                  Fund created pursuant to Section 2254.1 of

4

5                  Title 74 of the Oklahoma Statutes,

5

6                  (b) thirty-three and one-third percent (33 1/3%)

6

7                  to the Oklahoma Conservation Commission

7

8                  Infrastructure Revolving Fund created

8

9                  pursuant to Section 3-2-110 of Title 27A of

9

10                 the Oklahoma Statutes, and

10

11                 (c) thirty-three and one-third percent (33 1/3%)

11

12                 to the Community Water Infrastructure

12

13                 Development Revolving Fund created pursuant

13

14                 to Section 1085.7A of Title 82 of the

14

15                 Oklahoma Statutes, and

15

16                 (2) the Oklahoma Water Resources Board Rural Economic

16

17                 Action Plan Water Projects Fund for the fiscal

17

18                 year beginning July 1, 2027 July 1, 2032, and for

18

19                 each fiscal year thereafter,

19

20  g. before any other apportionment of revenue has been

20

21                 made pursuant to this paragraph, ten percent (10%) of

21

22                 the sum collected from oil shall be paid to the

22

23                 various county treasurers, to be credited to the

23

24                 County Highway Fund county highway fund as follows:

24

    Req. No. 3058                                      Page 29
1                  Each county shall receive a proportionate share of the

1

2                  funds available based upon the proportion of the total

2

3                  value of production from such county in the

3

4                  corresponding month of the preceding year,

4

5            h. before any other apportionment of revenue has been

5

6                  made pursuant to this paragraph, ten percent (10%)

6

7                  shall be allocated to each county as provided in

7

8                  subparagraph g of this paragraph and shall be

8

9                  apportioned on an average daily attendance per capita

9

10                 distribution basis, as certified by the State

10

11                 Superintendent of Public Instruction, to the school

11

12                 districts of the county where such pupils attend

12

13                 school regardless of residence of such pupil, provided

13

14                 the school district makes an ad valorem tax levy of

14

15                 fifteen (15) mills for the current year and maintains

15

16                 twelve (12) years of instruction, and

16

17           i. before any other apportionment of revenue has been

17

18                 made pursuant to this paragraph, forty-seven one-

18

19                 hundredths percent (0.47%) of the levy shall be

19

20                 transmitted by the Tax Commission to the Statewide

20

21                 Circuit Engineering District Revolving Fund as created

21

22                 in Section 687.2 of Title 69 of the Oklahoma Statutes.

22

23  C. Provided, notwithstanding any other provision of this

23

24 section:
24

    Req. No. 3058                                               Page 30
1   1. For fiscal years 2007 through 2026, the total amounts

1

2 deposited to the Common Education Technology Revolving Fund, the
2

3 Higher Education Capital Revolving Fund, the Oklahoma Student Aid
3

4 Revolving Fund, the Rural Economic Action Plan Water Projects Fund,
4

5 the Oklahoma Tourism and Recreation Department Capital Expenditure
5

6 Revolving Fund, the Oklahoma Conservation Commission Infrastructure
6

7 Revolving Fund and the Community Water Infrastructure Development
7

8 Revolving Fund pursuant to paragraphs 6, 7 and 11 12 of subsection B
8

9 of this section shall not exceed One Hundred Fifty Million Dollars
9

10 ($150,000,000.00) in any fiscal year; and
10

11  2. For fiscal year 2027 and subsequent fiscal years, the total

11

12 amounts deposited to the Common Education Technology Revolving Fund,
12

13 the Higher Education Capital Revolving Fund, and the Oklahoma
13

14 Student Aid Revolving Fund pursuant to paragraphs 6, 7 and 12 of
14

15 subsection B of this section shall not exceed One Hundred Fifty
15

16 Million Dollars ($150,000,000.00) in any fiscal year.
16

17  Except as otherwise provided in this subsection, all sums in

17

18 excess of One Hundred Fifty Million Dollars ($150,000,000.00) in any
18

19 fiscal year which would otherwise be deposited in such funds shall
19

20 be apportioned by the Oklahoma Tax Commission to the General Revenue
20

21 Fund of the state.
21

22  SECTION 2. This act shall become effective July 1, 2026.

22

23  SECTION 3. It being immediately necessary for the preservation

23

24 of the public peace, health or safety, an emergency is hereby
24

    Req. No. 3058                                         Page 31
1 declared to exist, by reason whereof this act shall take effect and
1

2 be in full force from and after its passage and approval.
2

3

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    Req. No. 3058                                            Page 32
Every fact on this page links to its source, starting with the official bill record.