House Bill 1066 was passed by the 66th Legislative Assembly during the 2019 Legislative Session. A copy of the final bill can be found here.
"Operation Prairie Dog", as it has been dubbed, makes numerous changes to the oil and gas gross production tax distribution formula as well as provides for a new source of infrastructure funding for cities, counties, and townships in non-oil-producing counties and airports throughout the state.
Oil and Gas Gross Production Tax Distribution Changes:
While the changes to the gross production tax distribution are significant, the effects of said changes result in very little change for most political subdivisions receiving oil and gas distributions. The major changes are due to the allocations made to hub city school districts and to the townships in oil-producing counties. To see how the oil and gas tax revenue will be distributed under these changes, along with how they have been distributed in the past, click here.
New Infrastructure Funds:
HB 1066 allocates up to $250,000,000 of oil and gas tax revenue per biennium to infrastructure funds as follows:
- Municipal Infrastructure Fund - $115,000,000
- County and Township Infrastructure Fund - $115,000,000
- Airport Infrastructure Fund - $20,000,000
For information regarding timing, project eligibility, and reporting requirements for the municipal and county/township funds, please click on the specific fund above. For further information regarding the Airport Infrastructure Fund, please contact the Aeronautics Commission.
Status of Funding (through September 2020):