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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 1990 By: Caldwell (Trey)
AS INTRODUCED
An Act relating to public finance; amending 62 O.S.
2011, Section 193, as amended by Section 457, Chapter
304, O.S.L. 2012 (62 O .S. Supp. 2020, Section 193),
which relates to the Ad Valorem Reimbursement Fund;
providing for reimbursement attributable to certain
veteran homestead exemptions; providing an effective
date; and declaring an emergency .
BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2011, Section 193, as
amended by Section 457, Chapter 304, O.S.L. 2012 (62 O.S. Supp.
2020, Section 193), is amended to read as follows:
Section 193. A. There is hereb y created in the State Treasury
a revolving fund for the Oklahoma Tax Commission to be designated
the "Ad Valorem Reimbursement Fund". The fund shall be a continuing
fund, not subject to fiscal year limitations. Monies apportioned to
this fund shall be e xpended:
1. To reimburse counties of this state for loss of revenue due
to exemptions of ad valorem taxes for new or expanded manufacturing
or research and development facilities;
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2. To reimburse counties of this state for loss of revenue for
school district and county purposes due to exemptions granted
pursuant to the provisions of Section 2890 of Title 68 of the
Oklahoma Statutes; and
3. To reimburse counties of this state for loss of revenue due
to decreased valuation and assessment for buffer strips pursuant to
Section 2817.2 of Title 68 of the Oklahoma Statutes ; and
4. To reimburse counties of this state for loss of revenue due
to the exemptions authorized by Sections 8E and 8F of Article X of
the Oklahoma Constitution .
Provided that it shall be the duty of the Tax Commission to
assess the valuation of all property for new or expanded
manufacturing or research and development facilities which are
exempt from ad valorem taxes.
Monies apportioned to this fund also may be transferred to other
state funds or otherwise expended as directed by the Legislature by
law.
B. The county commissioners of each county seeking
reimbursement for lost revenue from the Ad Valorem Reimbursement
Fund shall make claims for reimbursement on forms prescribed by the
Tax Commission prior to April 30 of each year. Claims for
reimbursement for loss of revenue due to exemptions of ad valorem
taxes for new or expanded manufacturing or research and development
facilities shall be made separately from claims for reimbursement
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for loss of revenue for school district and county purposes due to
exemptions granted pursuant to the provisions of Section 2890 of
Title 68 of the Oklahoma Statutes and separately from claims for
reimbursement for loss of revenue for decreased valuation and
assessment of buffer strips and from claims for loss of revenue due
to the provisions of Sections 8E and 8F of Article X of the Oklahoma
Constitution. Provided, the assessed valuation of a school district
as stated in the claim for reimbursement shall be th e same as
reported to the State Department of Education on the Estimate of
Need and shall include the total valuation of property exempt from
taxation pursuant to Section 2902 of Title 68 of the Oklahoma
Statutes. The claims shall be either approved or di sapproved in
whole or in part by the Tax Commission by June 15 of each year. A
claim for reimbursement for loss of revenue due to an exemption of
ad valorem taxes for a new or expanded manufacturing or research and
development facility shall be disapprove d if a county or school
district has received any payment in lieu of ad valorem taxes from
such facility, to the extent of the amount of such reimbursement.
If the Tax Commission determines that an exemption has been
erroneously or unlawfully granted, it shall notify the appropriate
county assessor who shall immediately value and assess the property
and place it on the rolls for ad valorem taxation. Disbursements
from the fund shall be made on warrants issued by the State
Treasurer against claims filed by the Tax Commission with the Office
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of Management and Enterprise Services for payment. Such
disbursements shall be exempt from all agency expenditure ceilings.
The county treasurer shall apportion or disburse such funds for
expenditures in the same manne r as other ad valorem tax collections.
C. In the event monies apportioned to the Ad Valorem
Reimbursement Fund are insufficient to pay all claims for
reimbursement made pursuant to subsection B of this section, claims
for reimbursement for loss of revenue due to exemptions of ad
valorem taxes for new or expanded manufacturing or research and
development facilities shall be paid first, and any remaining funds
shall be distributed proportionally among the counties making claims
for reimbursement for loss of revenue for school district and county
purposes due to exemptions granted pursuant to the provisions of
Section 2890 of Title 68 of the Oklahoma Statutes, according to the
amount of the claim made by each county. If any funds remain after
paying all claims for reimbursement for loss of revenue due to
exemptions of ad valorem taxation for new or expanded manufacturing
or research and development facilities and for reimbursement for
loss of revenue for school district and county purposes due to
exemptions granted pursuant to the provisions of Section 2890 of
Title 68 of the Oklahoma Statutes, the remaining funds shall be
distributed proportionally among the counties making claims for
reimbursement for loss of revenue for decreased valuation and
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assessment for buffer strips pursuant to Section 2817.2 of Title 68
of the Oklahoma Statutes.
SECTION 2. This act shall become effective July 1, 20 21.
SECTION 3. It being immediately necessary for the preservation
of the public peace, h ealth or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-1-6390 MAH 01/20/21