Oklahoma voters to decide state question on reimbursement methodology for local revenue lost to manufacturing tax exempt
Oklahoma voters will decide on a constitutional amendment at the Aug. 25, 2026, primary runoff election. The amendment would require the state legislature to establish a set methodology for determining reimbursement amounts for local governments and districts for revenues lost due to a statewide manufacturing tax exemption.
As of 2026, new or expanded manufacturing plants in Oklahoma are eligible for a five-year property tax exemption. The exemption was originally created when State Question 588 was approved by voters in 1985. The Oklahoma constitution currently requires the state to reimburse cities and other local governments for revenue lost due to the property tax exemption.
The constitutional amendment would add that the state legislature must set levels and methodologies for such reimbursements. The amendment states that the aim of the requirement would be to “[ensure] that no individual county shall receive reimbursement in amounts that result in a detriment to the other counties of the state.”
On March 3, 2026, state Rep. Kyle Hilbert (R-29) introduced the amendment to the state House as House Joint Resolution 1087 (HB 1087). On March 25, 2026, the state House approved HB 1087 in a vote of 76-16. Sixty-nine Republicans and seven Democrats voted yes. Four Republicans and 12 Democrats voted no. On April 9, 2026, the state Senate approved HB 1087 in a vote of 38-7. Thirty-eight Republicans voted yes, and seven Democrats voted no.
https://news.ballotpedia.org/2026/04/10/oklahoma-voters-to-decide-state-question-on-reimbursement-methodology-for-local-revenue-lost-to-manufacturing-tax-exemption-on-august-25-primary-runoff-ballot/