STATE OF OKLAHOMA

2nd Session of the 53rd Legislature (2012)

HOUSE JOINT
RESOLUTION 1087	By:	Dank

AS INTRODUCED

A Joint Resolution directing the Secretary of State to refer to the people for their approval or rejection a proposed amendment to Section 6B of Article X of the Constitution of the State of Oklahoma; modifying provisions related to reimbursement of revenues to certain local taxing jurisdictions; specifying reimbursement exclusive of certain revenues related to value of land or improvements during period of exempt treatment; providing ballot title; and directing filing.

BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES AND THE SENATE OF THE 2ND SESSION OF THE 53RD OKLAHOMA LEGISLATURE:
SECTION 1.  The Secretary of State shall refer to the people for their approval or rejection, as and in the manner provided by law, the following proposed amendment to Section 6B of Article X of the Constitution of the State of Oklahoma to read as follows:
Section 6B.  A.  For the purpose of inducing any manufacturing concern to locate or expand manufacturing facilities within any county of this state, a qualifying manufacturing concern shall be exempt from the levy of any ad valorem taxes upon new, expanded or acquired manufacturing facilities for a period of five (5) years.
B.  For purposes of this section, a "qualifying manufacturing concern" means a concern that:
1.  Is not engaged in business in this state or does not have property subject to ad valorem tax in this state and constructs a manufacturing facility in this state or acquires an existing facility that has been unoccupied for a period of twelve (12) months prior to acquisition; or
2.  Is engaged in business in this state or has property subject to ad valorem tax in this state and constructs a manufacturing facility in this state at a different location from present facilities and continues to operate all of its facilities or acquires an existing facility that has been unoccupied for a period of twelve (12) months prior to acquisition and continues to operate all of its facilities.
C.  The exemption allowed by this section shall apply to expansions of existing facilities.  Provided, however that any exemption shall be limited to the increase in ad valorem taxes directly attributable to the expansion.
D.  The Legislature shall define the term "manufacturing facility" for purposes of the ad valorem tax exemption provided by this section in order to promote full employment of labor resources within the state; provided, however, that a manufacturing facility that qualifies for the ad valorem tax exemption provided by this section, pursuant to the definition of "manufacturing facility" then applicable, shall be eligible for the exemption without regard to subsequent changes in the definition of the term "manufacturing facility".
E.  The Legislature shall enact laws to carry out the provisions of this section and to provide for the reimbursement to common schools, county governments, cities and towns, emergency medical services districts, vocational-technical schools, junior colleges, county health departments and libraries for the amount of revenues lost to such received by such entities as a result of the exemption provided by this section based upon the net assessed value of the land, and any improvements located upon the land, for the last assessment year prior to the year during which the property becomes exempt from ad valorem taxation pursuant to the provisions of this section.  Reimbursement to the local taxing jurisdictions as described by this subsection shall not include revenue derived from the increased value of the land or from the increased value attributable to improvements during the period of time the exemption for the qualifying manufacturing concern is in effect, but shall be limited to the revenue derived from the net assessed value of the land and improvements, if applicable, for the last assessment year prior to the year during which the property becomes exempt from ad valorem taxation pursuant to the provisions of this section.
F.  The assessed valuation of property exempt from taxation by virtue of this section shall be added to the assessed valuation of taxable property in computing the limit on indebtedness of political subdivisions contained in Section 26 of this article.
G.  Pursuant to an affirmative vote of a majority of the eligible voters of the county at an election for such purpose which may be called by the county commissioners of each county, after the expiration of the period prescribed by this section for the exemption, a county may retain not to exceed twenty-five percent (25%) of the increased ad valorem taxes derived from the levy imposed by the county upon the taxable value of property previously exempt pursuant to this section.  The revenue retained by the county pursuant to this subsection may be used by the county as an economic development incentive to attract additional investment which will result in additional employment in the county.  Only ad valorem tax revenue derived from ten (10) mills of the total ad valorem tax levy imposed by the county may be used for this purpose.  The ad valorem tax revenue derived from the levy imposed by any other taxing jurisdiction shall be apportioned as otherwise required by law.  The provisions of this subsection shall be applicable to qualified manufacturing concerns exempt prior to the adoption of the amendment contained in this subsection and which become taxable, either by expiration of the exemption period or for other reasons, on or after the date as of which the provisions of this subsection become law and to qualified manufacturing concerns which are exempt for the first time on or after the date of the adoption of the amendment contained in this subsection and which subsequently become taxable.
SECTION 2.  The Ballot Title for the proposed Constitutional amendment as set forth in SECTION 1 of this resolution shall be in the following form:
BALLOT TITLE
Legislative Referendum No. ____	State Question No. ____
THE GIST OF THE PROPOSITION IS AS FOLLOWS:
This measure amends the Oklahoma Constitution. It amends Section 6B of Article 10.  This section provides a property tax exemption for certain property owned by a qualifying manufacturing concern.  The Legislature provides money to local governments because of this exemption.   The money takes the place of the local taxes that the local governments do not receive because of the exemption.   This measure would change the amount of money the local governments receive.  The local governments would receive the amount of money they received during the last tax year before the land and any improvements became exempt.  The local governments would not receive money based on the increased value of the land or any improvements after a qualifying manufacturing concern begins its operations.
SHALL THE PROPOSAL BE APPROVED?
FOR THE PROPOSAL — YES	_____________
AGAINST THE PROPOSAL — NO 	_____________
SECTION 3.  The Chief Clerk of the House of Representatives, immediately after the passage of this resolution, shall prepare and file one copy thereof, including the Ballot Title set forth in SECTION 2 hereof, with the Secretary of State and one copy with the Attorney General.

53-2-7836	MAH	01/12/12