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Oklahoma House approves measure to treat timber production as farming for tax purposes, 89-6
Summary
House Bill 1378, introduced by Rep. Dempsey, adds production of timber, seedling production and forestry management to the legal definition of farming used for tax purposes; the House passed the bill 89-6 after questions about scope and past history.
The Oklahoma House of Representatives on Feb. 24 passed House Bill 1378, an act "relating to revenue and taxation," by a vote of 89-6. The measure expands the statutory definition of farming to include "production of timber, seedling, and forestry management," according to the bill sponsor.
Representative Dempsey, who presented the bill, told the chamber the change is intended to keep timber-related purchases and sales in state. "Farming or farm shall include production of timber, seedling, and forestry management," Dempsey said on the House floor. "If we can do it all in state, we should be better." He moved adoption and opened the bill to questions.
Lawmakers questioned the bill’s scope and potential fiscal effects during a series of floor exchanges. Representative Trey Caldwell asked whether most timber in Oklahoma is located in southeast counties; Dempsey replied that it is. Representative Rick West asked whether loggers and truckers who haul timber would be eligible for the tax treatment; Dempsey said his earlier equipment exemption covered those items and that, in his view, loggers and truckers already receive the relevant tax treatment. Representative Provenzano raised whether the bill would apply to seedling production and nurseries; Dempsey said "seedling and stuff is just for people to grow trees" but also stated in response that "nursery is not a farm." Representative Provenzano also told members the title listed no fiscal impact.
Representative Grego asked why the measure has repeatedly returned to the House; Dempsey said this was his third time carrying the measure in the House and that it historically has been "hung up over in the Senate." Representative Fugate and others voiced support for treating tree farming as farming in statute.
The roll call ended with the presiding officer declaring: "Having received a majority of all of those elected in the constitution of the house, I declare the bill to have passed," and a recorded tally of 89 ayes and 6 nays.
Clarifying details made on the floor included that the bill explicitly references production of timber, seedling production and forestry management; that nursery operations were described by the sponsor as not qualifying as "farm" for this measure; and that eligibility for the tax treatment would be handled similarly to existing agricultural permits (members referenced an "ad card" system used for farm exemptions). The sponsor also described longstanding efforts to keep equipment purchases and related business in-state as part of the bill’s intent.
The House record shows questions and answers occurred on the floor during the bill’s presentation; the final vote was recorded in the House minutes as 89-6.
