Senate approves amendment to let legislature set ad valorem reimbursement for manufacturers

The Oklahoma Senate advanced House Joint Resolution 10-87, sending to voters a proposed constitutional amendment that would let the Legislature set the levels and methods for reimbursing local governments for the five-year ad valorem property-tax exemption granted to qualifying manufacturing facilities.

President Pro Tem Paxton explained the measure as a response to rising costs borne by counties and school districts when new manufacturing facilities receive the constitutional five-year exemption. "This simply puts a little bit of that control back in us as a legislature," Paxton said, describing the change as a tool to determine percentage reimbursements on a case-by-case basis.

Senators debated the fiscal and administrative implications briefly on the floor; no roll-call opposition blocked advancement. HJR 10-87 passed third reading with 38 ayes and 7 nays, and the chamber also approved the resolution's special-election provision by the same tally, sending the proposed amendment toward the ballot process outlined in the resolution.

Supporters said the change gives the Legislature flexibility to manage large reimbursement obligations that can strain state and local budgets when qualifying manufacturing concerns locate in the state; supporters cited recent legislation involving a smelter in eastern Oklahoma as a fiscal example. Opponents did not mount extended floor debate prior to the votes recorded in this session.

With passage on the floor and approval of the special-election provision, HJR 10-87 is positioned to be placed before voters according to the timetable set in the resolution.