OklahomaGross production tax revenue goes to county transportation and state funds
Starting November 1, 2026, the law directs some gross production tax revenue to a county transportation fund and caps yearly deposits to seven state funds.
What it does
Forty percent of revenue from the five-percent natural gas tax goes to a county transportation fund, up to $75 million a year. Any excess goes to the state's General Revenue Fund.
Deposits to seven state funds for education, water, tourism, and conservation projects are capped at $150 million a year. Excess amounts go to the state's General Revenue Fund.
Argument forCounties may receive transportation funding from a share of natural gas tax revenue, up to $75 million in a fiscal year.
Argument againstCounty transportation projects may receive less when deposits reach the yearly caps, with excess revenue redirected to the state's General Revenue Fund.
More detail
The law sends 40% of revenue from the five-percent natural gas tax to a county transportation fund. This applies to the five-percent gross production tax on natural gas or casinghead gas. The fund may receive no more than $75 million in a fiscal year. Any excess goes to the state's General Revenue Fund for general expenses, subject to legislative appropriation. The text describes this distribution as beginning July 1, 2025. This act takes effect November 1, 2026.
The law caps yearly deposits to seven named state funds at $150 million total and directs excess amounts to the state's General Revenue Fund. The funds support education technology, higher education, student aid, water projects, tourism and recreation, conservation infrastructure, and community water infrastructure. The cap applies to deposits under specified oil and gas tax apportionment paragraphs. The General Revenue Fund pays general state expenses through direct legislative appropriation. This act takes effect November 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 13Approved by Governor Kevin Stitt 05/12/2026Became Law
- May 6Sent to GovernorTo Governor
- Vote recorded Third Reading. Result: pass.Lower
- May 6Signed, returned to Senate
- May 6Enrolled, to House
- May 6Referred for enrollment
- May 6Signed, returned to Senate
- May 6Third Reading, Measure passed: Ayes: 75 Nays: 16Major
- May 6General Order
- Apr 23CR; Do Pass Appropriations and Budget CommitteeMinor
- Apr 21
- Vote recorded Appropriations And Budget Committee: Do Pass. Result: pass.Lower
- Apr 16Recommendation to the full committee; Do Pass Appropriations and Budget Transportation SubcommitteeMinor
- Apr 6
- Vote recorded Appropriations And Budget Transportation Subcommittee: Do Pass. Result: pass.Lower
- Mar 31Referred to Appropriations and Budget Transportation SubcommitteeMinor
- Mar 30Second Reading referred to Appropriations and BudgetMinor
- Mar 24First ReadingMinor
- Mar 24Engrossed to HousePassed House
- Mar 23Referred for engrossment
- Vote recorded Third Reading. Result: pass.Upper
- Mar 23Measure passed: Ayes: 38 Nays: 7Passed Senate
- Mar 23Title restored
- Mar 23General Order, Amended
- Mar 9Placed on General Order
- Mar 4Emergency removed
- Vote recorded Appropriations. Result: pass.Upper
- Mar 4Title stricken
- Mar 4Reported Do Pass, amended by committee substitute Appropriations committee; CR filedMinor
- Feb 23Referred to AppropriationsMinor
- Vote recorded Do Pass. Result: pass.Upper
- Feb 23Reported Do Pass Revenue and Taxation committee; CR filedMinor
- Feb 11Coauthored by Representative Newton (principal House author)
- Feb 3Second Reading referred to Revenue and Taxation Committee then to Appropriations CommitteeMinor
- Feb 2Authored by Senator Jech
- Feb 2First ReadingIntroduced
Taxes & BudgetTransportation