SB387 Summary

• Modifies the ad valorem tax exemption for qualifying manufacturing facilities in Oklahoma by defining "base payroll" as total payroll adjusted for nonrecurring bonuses and extraordinary items, and "initial payroll" as base payroll for the year immediately preceding initial construction, acquisition, or expansion.

• Expands the option for manufacturing facilities to exclude certain payroll items from their payroll calculations, including payments to owners with at least 10% ownership interest and nonrecurring bonuses or stock option exercises.

• Allows manufacturing facilities applying for exemptions on or after January 1, 2016, to use the new payroll definitions and exclusions to calculate whether they meet the minimum payroll increase requirements ($250,000 or $1,000,000 depending on county population).

• Provides a one-time remedy for certain petrochemical refineries (NAICS 324110) that were denied exemptions between 2009 and 2015 due to nonrecurring bonus payments, allowing them to reapply for remaining years in their five-year exemption period beginning January 1, 2016.

• Act becomes effective January 1, 2016.