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SENATE FLOOR VERSION - SB1125 SFLR Page 1
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SENATE FLOOR VERSION
March 3, 2025
SENATE BILL NO. 1125 By: Deevers
An Act relating to excise tax; authorizing counties
and municipalities to levy excise tax upon the sale
of medical marijuana; prescribing procedures for
approval of excise tax; requiring a majority of
voters to approve levy; prohibiting election for
certain period if voters fail to approve levy;
prescribing date of effectiveness upon approval;
requiring initiative petitions to be in accordance
with certain laws; prescribing deadlines for
obtaining signatures and holding elections; requiring
state purpose for levy of tax; requiring
identification of the duration of the tax to voters;
prohibiting municipalities from redirecting funds to
another purpose without voter approval; creating
county excise tax revolving funds upon levy of
certain tax; providing sources of funds; providing
purpose for expenditures; providing for codification;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2702.2 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. Any municipality of this state may levy an excise tax upon
the sale of medical marijuana on the gross proceeds or gross
receipts derived from all sales within the municipality. Before the
excise tax may be levied by the municipality, the imposition of the
SENATE FLOOR VERSION - SB1125 SFLR Page 2
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tax shall first be approved by a majority of the registered voters
of the municipality voting thereon at a special election called by
the city council or by initiative petition signed by not less than
five percent (5%) of the registered voters of the municipality who
were registered at the time of the last general election. However,
if a majority of the registered voters of a municipality voting fail
to approve such a tax, the city council shall not call another
special election for such purpose for six (6) months. Any excise
tax approved by the registered voters of a municipality shall be
applicable only when the point of sale is within the territorial
limits of such municipality. Any excise tax levied or any change in
the rate of an excise tax levied pursuant to the provisions of this
section shall become effective on the first day of the calendar
quarter following approval by the voters of the municipality unless
another effective date, which shall also be on the first day of a
calendar quarter, is specified in the ordinance or resolution
levying the excise tax or changing the rate of excise tax.
B. Initiative petitions calling for a special election
concerning municipality excise tax proposals shall be in accordance
with Sections 2, 3, 6, 18, and 24 of Title 34 of the Oklahoma
Statutes. Petitions shall be submitted to the office of the city
clerk for approval as to form prior to circulation. Following
approval, the petitioner shall have ninety (90) days to secure the
required signatures. After securing the requisite number of
SENATE FLOOR VERSION - SB1125 SFLR Page 3
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signatures, the petitioner shall submit the petition and signatures
to the city clerk. Following the verification of signatures, the
city clerk shall present the petition to the city council. The
special election shall be held within sixty (60) days of receipt of
the petition. The ballot title presented to the voters at the
special election shall be identical to the ballot as presented in
the initiative petition.
C. Any excise tax which may be levied by a municipality shall
be designated for any lawful purpose deemed necessary to protect and
promote the life, liberty, and property of the citizens within the
jurisdiction.
D. The duration of the tax could be limited or unlimited. The
municipality shall identify the duration of the tax when it is
presented to the voters pursuant to the provisions of subsections A
and B of this section.
E. Any municipality that levies a dedicated tax pursuant to a
vote of the people for a stated purpose shall not redirect all or a
portion of the dedicated tax revenue to another purpose without a
vote of the people authorizing such action.
F. If recreational marijuana is legalized under Oklahoma state
law, the provisions of this section shall automatically extend to
recreational marijuana at the same rates and conditions applicable
to medical marijuana.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2710 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. Any county of this state may levy an excise tax upon the
sale of medical marijuana on the gross proceeds or gross receipts
derived from all sales within the county. Before the excise tax may
be levied by the county, the imposition of the tax shall first be
approved by a majority of the registered voters of the county voting
thereon at a special election called by the board of county
commissioners or by initiative petition signed by not less than five
percent (5%) of the registered voters of the county who were
registered at the time of the last general election. However, if a
majority of the registered voters of a county voting fails to
approve such a tax, the board of county commissioners shall not call
another special election for such purpose for six (6) months. Any
excise tax approved by the registered voters of a county shall be
applicable only when the point of sale is within the territorial
limits of such county. Any excise tax levied or any change in the
rate of an excise tax levied pursuant to the provisions of this
section shall become effective on the first day of the calendar
quarter following approval by the voters of the county unless
another effective date, which shall also be on the first day of a
calendar quarter, is specified in the ordinance or resolution
levying the excise tax or changing the rate of excise tax.
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B. Initiative petitions calling for a special election
concerning county excise tax proposals shall be in accordance with
Sections 2, 3, 6, 18, and 24 of Title 34 of the Oklahoma Statutes.
Petitions shall be submitted to the office of the county clerk for
approval as to form prior to circulation. Following approval, the
petitioner shall have ninety (90) days to secure the required
signatures. After securing the requisite number of signatures, the
petitioner shall submit the petition and signatures to the county
clerk. Following the verification of signatures, the county clerk
shall present the petition to the board of county commissioners.
The special election shall be held within sixty (60) days of
receiving the petition. The ballot title presented to the voters at
the special election shall be identical to the ballot as presented
in the initiative petition.
C. Any excise tax which may be levied by a county shall be
designated for a particular purpose.
D. The duration of the tax could be limited or unlimited. The
county shall identify the duration of the tax when it is presented
to the voters pursuant to the provisions of subsections A and B of
this section.
E. There are hereby created one or more county excise tax
revolving funds in each county which levies an excise tax under this
section. Each revolving fund shall be designated for a particular
purpose and shall consist of all monies generated by the excise tax
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which are designated for such purpose. Monies in the funds shall
only be expended for the purposes specifically designated as
required by this section. A county excise tax revolving fund shall
be a continuing fund not subject to fiscal year limitations.
F. If recreational marijuana is legalized under Oklahoma state
law, the provisions of this section shall automatically extend to
recreational marijuana at the same rates and conditions applicable
to medical marijuana.
SECTION 3. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
March 3, 2025 - DO PASS