HB 1712 Summary

• Amends 68 O.S. 2011, Section 2902 to modify payroll qualification requirements for manufacturing facility tax exemptions by defining "Base Payroll" and "Initial Payroll" with specific adjustments for non-recurring bonuses and extraordinary items.

• Establishes that Base Payroll equals total payroll adjusted for non-recurring bonuses, stock options, and other extraordinary items, and Initial Payroll equals Base Payroll for the year immediately preceding initial construction, acquisition, or expansion.

• Applies new payroll definitions retroactively to all initial exemption applications filed on or after January 1, 2012, including previously denied claims.

• Allows manufacturing facilities to exclude from payroll calculations payments to sole proprietors, partners, LLC members owning at least 10% capital, and stockholder-employees owning at least 10% stock, as well as non-recurring bonuses and extraordinary items.

• Takes effect January 1, 2016.