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ENGROSSED SENATE AMENDMENT
TO
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 ]
AMENDMENT NO. 1. Page 1, strike the stricken title, enacting clause
and entire bill and insert
“An Act relating to the Ad Valorem Reimbursement
Fund; amending 62 O.S. 2011, Section 193, as amended
by Section 457, Chapter 304, O.S.L. 2012 (62 O.S.
Supp. 2020, Section 19 3), which relates to the
distribution of funds; adding category of exemption
for which reimbursement may be claimed and creating
qualification; providing rate for certain
reimbursement; clarifying language; modifying
priority for payment of claims; and pro viding an
effective date.
BE IT ENACTED BY THE PEOPLE 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:
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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 continuing
fund, not subject to fiscal year limi tations. 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 for new or expanded manufacturing
or research and development facilities;
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 exemptions granted to veterans and surviving
spouses for the most recently concluded 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 twenty -five
percent (25%) of the loss of revenue claimed by the qualified
county;
3. To reimburse counties of this state for loss of revenue for
school district and county purposes due to exemptions granted
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pursuant to the provisions of Section 2890 of Title 68 of the
Oklahoma Statutes; and
3. 4. To reimburse counties of this state for loss of r evenue
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 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
for loss of revenue for school district and county purposes due to
exemptions granted pursuant to th e 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
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authorized pursuant to subsection A of this section. Provided, the
assessed valuation of a school 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 e xempt 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 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
disapproved 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 v alorem
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 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 manner as other ad
valorem tax collections.
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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 Sections 8D, 8E
and 8F of Article X of the Oklahoma Constitution, if applicable ,
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 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 Statutes and
for the loss of revenue for decreased valuation and assessment for
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buffer strips pursuant to Section 2817.2 of Title 68 of the Oklahoma
Statutes.
SECTION 2. This act shall beco me effective November 1, 2021. ”
Passed the Senate the 14th day of April, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives
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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 ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
SECTION 3. 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 hereby created in the State Treas ury
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 expended:
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;
2. To reimburse counties of this state for loss of revenue for
school district and county purposes due to exemptions granted
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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 d irected 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 di strict and county purposes due to
exemptions granted pursuant to the provisions of Section 2890 of
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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 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 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 disapproved 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
of Management and Enterprise Services for payment. Such
disbursements shall be exempt from all agency expenditure ceilings.
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The county treasurer shall apportion or disburse such funds for
expenditures in the same manner as other ad valorem tax co llections.
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 provis ions 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
assessment for buffer strips pursuant to S ection 2817.2 of Title 68
of the Oklahoma Statutes.
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Passed the House of Representatives the 2nd day of March, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2021.
Presiding Officer of th e Senate