Oklahoma Administrative Code
Title 710 - Oklahoma Tax Commission
Chapter 45 - Gross Production
Subchapter 9 - Exemptions and Exclusions
Part 25 - PRODUCTION COMPLETED WITH THE USE OF RECYCLED WATER
Section 710:45-9-123 - Refund procedure

(a) Issuance of refund. Upon certification by the Tax Commission, a refund of the gross production taxes paid in the previous fiscal year for production completed using recycled water shall be issued to the well operator or a designee after the eighteen (18) month refund claim period has concluded.

(b) Limitation of refund. Beginning with fiscal year 2023, and each subsequent year, the Tax Commission is authorized to issue up to Ten Million Dollars ($10,000,000) in refunds for each eligible fiscal year. If the total number of claims for any fiscal year exceed the refund cap, all approved refunds will be issued at the refund payout rate.

(c) Refund payout rate. The formula to be used for the percentage adjustment shall be Ten Million Dollars ($10,000,000) divided by the amount of approved refund claims. For example, if the total amount of refund claims for calendar year 2022 was Twenty Million Dollars ($20,000,000), the amount of each refund would be reduced by 50%.

(d) Assignment of a designee. If the refund is to be issued to a party other than the recognized operator, a notarized affidavit signed by the operator must be submitted to the Tax Commission authorizing the designee to receive the refund.