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Bill

SB 227

Gross production tax; property exempt from ad valorem tax as used in the production of material subject to gross production tax; expanding exempt property. Effective date.

2026 Regular Session Introduced by Julie Daniels and 1 co-sponsor

Oklahoma bill expands property tax exemptions for production equipment, reducing taxes on gross production industries and cutting state/local government revenue.

Approved by Governor 04/13/2026
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WeVote Research Nonpartisan
Bill Summary · SB 227

Legislative bill overview

SB 227 expands Oklahoma's exemption from ad valorem (property) taxes for equipment and property used in producing goods subject to the state's gross production tax. The bill broadens which types of property qualify for this exemption, reducing the tax burden on extractive and production industries. It has passed the Oklahoma Senate with strong bipartisan support (37-9).

Why is this important

Ad valorem tax exemptions directly reduce operational costs for industries like oil, gas, and mining by allowing them to avoid property taxes on production equipment. This affects state and local government revenues—counties and municipalities depend on property tax collections for schools, infrastructure, and services. The expansion increases foregone tax revenue while potentially making Oklahoma more competitive for industrial investment.

Potential points of contention

  • Revenue impact: Broader exemptions mean less property tax revenue for counties, schools, and local services that depend on these funds
  • Scope creep: Expanding exemption categories risks continuously broadening eligibility, creating precedent for further tax relief requests from other industries
  • Fairness questions: Non-exempt businesses and residential property owners effectively shoulder a larger tax burden when commercial/industrial property avoids taxation

Compiled from official sources — confirm details with the bill’s official record.

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