An Act
ENROLLED HOUSE
BILL NO. 1990 By: Caldwell (Trey), Mize, Pae
and Fugate of the House
and
Montgomery of the Senate
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 193), 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 providing an
effective date.
SUBJECT: Ad Valorem Reimbursement Fund
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:
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 Reimbur sement 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 ex panded 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 ENR. H. B. NO. 1990 Page 2
if the number of exemptions granted to veterans and surviving
spouses for the most recently concluded calendar year exceed s 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
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 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 o f 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 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 school district as stated in the claim for
reimbursement shall be the same as reported to the State Departmen t
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 ENR. H. B. NO. 1990 Page 3
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 rece ived 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 asses sor 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 Ma nagement 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.
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 th e 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
buffer strips pursuant to Section 2 817.2 of Title 68 of the Oklahoma
Statutes.
SECTION 2. This act shall become effective November 1, 2021. ENR. H. B. NO. 1990 Page 4
Passed the House of Representatives the 18th day of May, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the 14th day of April, 2021.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: __________________ _______________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________