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SENATE FLOOR VERSION
April 7, 2021
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 1990 By: Caldwell (Trey), Mize, Pae
and Fugate of the House
and
Montgomery of the Senate
[ public finance - Ad Valorem Reimbursement Fund -
veteran homestead exemptions - effective date ]
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, Ch apter 304, O.S.L. 2012 (62 O.S. Supp.
2020, Section 193), is amended to read as follows:
Section 193. A. There is hereby 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 continu ing
fund, not subject to fiscal year limitations. Monies apportioned to
this fund shall be expended:
1. To reimburse counties of this state for loss of revenue due
to exemptions of ad valorem taxes f or new or expanded manufact uring
or research and develo pment facilities;
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2. Beginning calendar year 2022 and all subsequent years, to
reimburse qualified counties of this state for loss of revenue due
to exemptions granted to veterans and their surviving spouses
pursuant to the provisions of Sections 8D, 8E and 8F of Article X of
the Oklahoma Constitution. A county is qualified for reimbursement
if the number of exemptio ns granted to veterans and surviving
spouses for the most recently co ncluded calendar year exceeds eight-
tenths of one percent (0.8%) of the total county population
according to the latest Federal Decennial Census or most recent
annual population estimate, whichever is most recent . The
reimbursement provided in this paragraph shall amount to twen ty-five
percent (25%) of the loss of revenue claimed by the qualifi ed
county;
3. 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. 4. To reimburse counties o f 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 .
Provided that it shall be the duty of the Tax Commissio n to
assess the valuation of all property f or new or expanded
manufacturing or research and development facilities which are
exempt from ad valorem taxes.
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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
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 based upon the type of exemptions
authorized pursuant to subsection A of this section. Provided, the
assessed valuation of a sch ool district as stated in the claim for
reimbursement shall be the 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 disapproved in whole or in part by the Tax C ommission by
June 15 of each year. A claim for reimbursement for l oss of revenue
due to an exemption of ad valorem taxes for a new or expanded
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manufacturing or research and development facility shall be
disapproved if a county or school district has recei ved 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 assess or who shall immedia tely 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 of Man agement and Enterpri se Services for
payment. Such disbursements sh all be exempt from all agency
expenditure ceilings. The county treasurer shall ap portion or
disburse such funds for expenditures in the same manner 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 subsectio n 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 faciliti es shall be paid first, and any remaining funds
shall be distributed proportionall y among the counties making claims
for reimbursement for loss of revenue for school district and county
purposes due to exempti ons granted pursuant to the provisions of
Section 2890 of Title 68 of the Oklahoma Statutes Sections 8D, 8E
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and 8F of Article X of the Oklahoma Constitution, if applicable,
according to the amount of the claim made by each county. If a ny
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 rev enue for school district an d county
purposes due to exemptions granted pursuant to the provisi ons of
Section 2890 of Title 68 of the Oklahoma Statutes Sections 8D, 8E
and 8F of Article X of the Oklahoma Constitution, the remaining
funds shall be distributed proportionally among the counties making
claims for reimbursement for the exemptions granted pursuant to the
provisions of Section 2890 of Title 68 of the Oklahoma Statut es and
for the loss of revenue for decreased valuation and assessment for
buffer strips pursuant to Section 281 7.2 of Title 68 of t he Oklahoma
Statutes.
SECTION 2. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 7, 2021 - DO PASS AS AMENDED