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Next Election: August 25, 2026

State Question 844

BALLOT TITLE

Legislative Referendum 378
Tax Revenue Reimbursement

This measure amends article 10, section 6B of the Oklahoma Constitution. Section 6B incentivizes manufacturers to locate, expand, or acquire manufacturing facilities in Oklahoma through an ad valorem taxation exemption for five (5) years. Currently, the State must reimburse common schools, county governments, cities and towns, emergency medical services districts, vocational technical schools, junior colleges, county health departments and libraries for revenues lost as a result of each exemption provided. This measure authorizes the Legislature to enact laws establishing the levels and methodologies of reimbursement for the previously mentioned local governmental entities resulting from the fanufacturing exemption. The laws are meant to ensure that no individual county receives reimbursement in an amount detrimental to other Oklahoma counties. The levels and methodologies will replace the current statutory political subdivisions, the measure requires such amount be equal to the amount of reimbursement applicable to such property under laws enacted by the Legislature. This measure will have a fiscal impact on the state the will depend on the application of levels and methodologies adopted by the Legisalture. 

Shall The Proposal Be Approved?

  • FOR THE PROPOSAL – YES
  • AGAINST THE PROPOSAL – NO

Legislative Referendum 378 | Tax Revenue Reimbursement

SUMMARY

This measure would change a part of the Oklahoma Constitution that was approved by voters in 1985. Currently, the manufacturing ad valorem rebate program exempts qualifying manufacturers from paying property taxes (called ad valorem taxes) for five years. The state is currently required to fully reimburse schools, county goverments, libraries, county health departments, and other local entities for the ad valorem tax revenue these entities would have received.

If approved, this measure would remove the voter-approved requirement that the state reimburse the full amount and instead allows the legislature to determine the amount and methodology of the reimbursements. This proposed constitutional amendment was placed on the ballot by the Oklahoma Legislature and must be approved by voters before it can take effect. 

FOR MORE INFORMATION

BOTH SIDES

PROPONENTS SAY:

  • YES
  • The legislature appropriates state funds and should have the flexibility to adjust reimbursement levels as economic conditions change rather than being bound by a fixed constitutional requirement.
  • Requiring the legislature to establish a reimbursement method increases transparency and helps distribute reimbursements more fairly among counties.
  • The ad valorem manufacturing incentive program is a successful economic development driver that brings industry and jobs to Oklahoma. They argue this measure helps preserve the program, while giving the legislature flexibility to balance reimbursement funding with other state budget priorities.

OPPONENTS SAY:

  • NO
  • Oklahoma voters approved the Ad Valorem Manufacturing Incentive Program along with the understanding that schools and other local entities would be fully reimbursed for lost revenue. They say this measure would allow the legislature to change that voter-approved guarantee.
  • Future legislatures could decide to reduce or eliminate reimbursement payments, shifting the financial burden from the state to school districts and local entities that rely on those funds.
  • If the ad valorem incentive program has become too costly, the legislature should change the parameters of the program itself rather than reduce reimbursements to schools and other local entities. The ballot language doesn’t provide a way for schools to challenge a lesser reimbursement than what voters approved.