HB 1876 Summary

• Authorizes counties to impose a severance tax (up to 7%) on extraction of rock, gravel, sand, gypsum, and other aggregate materials within county boundaries

• Requires voter approval through special election or initiative petition (signed by at least 5% of registered voters) before tax can be levied; prohibits another election for 6 months if voters reject the tax

• Requires county to designate specific or general purpose for tax revenue, which must be deposited in highway fund and used for infrastructure including roads, bridges, water systems, wastewater systems, and emergency equipment

• Exempts materials sold within county of origin where sales tax was charged; subjects materials sold to tax-exempt entities (where no sales tax collected) to severance tax

• Allows Oklahoma Tax Commission to assess and collect tax on behalf of county for 1% fee; requires 60-day notice of rate changes; becomes effective November 1, 2013