Excise tax; extending sunset of apportionments of excise tax collections on oil and gas. Effective date. Emergency.
SB 1280 extends the sunset date for Oklahoma's excise tax on oil and gas production from 2026 to 2031. It maintains the current tax rate of 0.095% on oil and gas production until July 1, 2031, after which the rate drops to 0.085%. The bill affects oil and gas producers, purchasers, and royalty owners by specifying how the tax is collected and reported alongside existing gross production taxes. Revenue from the tax continues to be distributed to the General Revenue Fund, the Corporation Commission Plugging Fund, and the Interstate Oil Compact Fund, as outlined in existing law.
Bill status
signed
all 5 stages cleared
Introduction
Feb 2026
Committee Review
Apr 2026
Senate Passage
Mar 2026
House Passage
Apr 2026
Signed into Law
May 2026
Introduced Feb 2, 2026
Signed May 5, 2026
Maddy AI version diff · 4 comparisons
What changed between versions
Floor (House)
→
Floor (Senate)
·
4 edits
MODERATE
The bill was transitioned from the House version to the Senate floor version, which includes a critical update to the tax sunset date. The tax rates on oil and gas were extended from expiring on June 30, 2026, to June 30, 2031, and the rate reduction scheduled for July 1, 2026, was pushed to July 1, 2031. Additionally, the text was reorganized to include a new Section 1103.1 that details how the collected tax revenue must be apportioned to the state's General Revenue Fund.
Scope change
The bill's scope remains focused on excise taxes for oil and gas, but the applicability period was significantly extended by five years.
TIMELINE
The expiration date for the additional oil and gas excise tax was changed from June 30, 2026, to June 30, 2031.
The date when the excise tax rate decreases from 0.095% to 0.085% was moved from July 1, 2026, to July 1, 2031.
FISCAL
A new provision was added specifying that tax revenues must be deposited with the State Treasurer and apportioned to the General Revenue Fund.
TECHNICAL
The bill text was restructured and renumbered to reflect Senate floor formatting and committee amendments.
Floor votes · Senate Mar 10, 2026 · House Apr 29, 2026
How they voted
39–9
Passed · 2 other
Total votes 50
Mar 10, 2026
D
Democratic9
100% Yea
R
Republican41
73% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
20
Key actions
6
Committee
4
May 5, 2026
Signed into law
Approved by Governor 05/01/2026
upper
Apr 29, 2026
Committee
Referred for enrollment
upper
Apr 29, 2026
Lower · Passed
Third Reading, Measure and Emergency passed: Ayes: 77 Nays: 7
lower
Apr 8, 2026
Lower · Passed
CR; Do Pass Administrative Rules Committee
lower
Mar 11, 2026
Introduced
First Reading
lower
Mar 11, 2026
Upper · Passed
Engrossed to House
upper
Mar 10, 2026
Committee
Referred for engrossment
upper
Mar 10, 2026
Upper · Passed
Measure and Emergency passed: Ayes: 37 Nays: 9
upper
Feb 9, 2026
Upper · Passed
Reported Do Pass Revenue and Taxation committee; CR filed
upper
Feb 2, 2026
Introduced
First Reading
upper
2 primary · 0 co-sponsors
Sponsors
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