Oklahoma Bill would Allow Counties to Impose up to 15% Tax on Cannabis Retail Sales
- An Oklahoma bill proposes allowing counties to impose up to a 15% “public service impact tax” on cannabis retail sales, pending approval by a majority in a special election.
- The special election can be initiated by county commissioners or a petition signed by at least 5% of registered voters, with a six-month waiting period if the tax is rejected.
- Revenue from the tax must be designated for specific uses like supporting local first responders or improving deteriorated properties, and the tax duration may be limited or unlimited.
- The Oklahoma Tax Commission would handle tax collection and enforcement for a 0.5% fee, notify taxpayers 60 days before rate changes, and the bill is set to take effect Nov. 1, 2026, pending legislative approval.
An Oklahoma bill would allow counties to impose an up to 15% “public service impact tax” on cannabis retail sales. Before the tax could be levied, it must first be approved by a majority of county voters in a special election.
Under the proposal, the special election could be initiated by either the county commissioners or by a petition signed by at least 5% of registered voters. Were voters to reject the tax, another election to impose the tax would not be able to be held for six months.
The bill requires that the revenue must be designated for specific purposes, such as supporting local first responders, or improving run down properties. The tax duration could be limited or unlimited.
The Oklahoma Tax Commission would be required to notify taxpayers of any rate changes at least 60 days in advance, and counties could contract with the state Tax Commission to collect and enforce the tax, with the Tax Commission charging a 0.5% fee for this service.
The bill also outlines procedures for initiative petitions related to the taxes, requiring them to comply with existing statutes and setting timelines for signature gathering and election scheduling.
If approved the bill, which is sponsored by Republican Reps. Ryan Eaves, Grant Green, and Tom Woods, would take effect Nov. 1, 2026. The legislation is currently in the chamber’s Government Oversight Committee. The House County and Municipal Government approved the bill last week.