Okla. Stat. tit. 68, § 68-118

statement of recommendation as to proposed or actual tax law changes

- Annual forecast of gross production tax revenues.

A. Upon receipt of a written request from a member or employee

of the Legislature, the Oklahoma Tax Commission shall provide:

1. A written estimate of the revenue gain or loss to the state

as a result of an actual or proposed change to any state tax law

within the implementation, enforcement and collection duties and

responsibilities of the Tax Commission; provided, upon request of a

legislative member or staff, Service Oklahoma shall be responsible

for furnishing written estimates of revenue gains or losses

attributable to current or proposed amendments to any state law

under its statutorily assigned functions and responsibilities;

2. A written statement of the Tax Commission's recommendation

to the State Board of Equalization as to the change in the amount

certified as available for appropriation by the Legislature as a

result of an actual or proposed change to a state tax law; and

3. A written statement outlining all analysis and methodology

provided by or made available by the Tax Commission to the State

Board of Equalization for the purpose of influencing or serving as

the basis for an official action of the State Board of Equalization.

The Tax Commission shall provide such estimate and statement

within two (2) weeks of the date the request was received unless the

member or employee of the Legislature specifies an earlier date.

B. On or after December 31, 2009, and subject to the

availability of funds, the Tax Commission shall develop the

estimates and statements required by subsection A of this section

utilizing a dynamic revenue estimating model. Such model shall take

into consideration changes in economic activity as a result of the

proposed legislation and consequent revenue gains or losses due to

factors such as taxpayer behavior, employment and business

investment. The Tax Commission may, subject to the laws of this

Oklahoma Statutes - Title 68. Revenue and Taxation Page 54

state relating to confidentiality of information, contract with

institutions of higher education in this state or other entities to

perform its duties as set forth in this subsection. The Tax

Commission is authorized to promulgate rules to carry out the

implementation of this section.

C. For the purpose of providing an annual forecast of gross

production tax revenues from the production of natural and

casinghead gas to the Office of Management and Enterprise Services,

the Tax Commission shall subscribe to appropriate reference

materials which provide economic outlook of future gas prices that

have most closely followed the historical trend of Oklahoma gas

prices. To determine the average differential between the published

forecasted prices and Oklahoma gas prices, the Tax Commission shall

compare prices in at least twenty-four (24) of the immediate thirty-

six (36) previous months of production. The Tax Commission shall

utilize the procedures provided herein to forecast the collection of

gross production tax revenues from the production of natural and

casinghead gas for the fiscal year beginning July 1, 2005, and each

fiscal year thereafter.