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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 243 By: Montgomery
AS INTRODUCED
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; clarifying language; modifying
priority for payment of claims; and provi ding 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:
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 y ear limitations. Monies apportioned to
this fund shall be expended:
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1. To reimburse counties of this state for loss of revenue due
to exemptions of ad valorem taxes f or 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 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 most recent Federal Decenni al Census;
3. To reimburse counties of this state for loss of revenue for
school district and county purposes due to ex emptions granted
pursuant to the provisions of Sec tion 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 T itle 68 of the Oklahoma Statutes.
Provided that it shall be the duty of the Tax Commission 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 oth er
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 reimbu rsement
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 val uation 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 state d in the claim for
reimbursement shall be the same as reported to t he 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 i n 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
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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 unlawfull y 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 c laims 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 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 l oss of revenue due to exemptions of a d
valorem taxes for new or expanded manufacturing o r research and
development facilities 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 dist rict and county
purposes due to exemptions 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 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 d evelopment facilities and for
reimbursement for loss of rev enue 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
and 8F of Article X of the Oklahoma Constitution, the remaining
funds shall be distributed propor tionally 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 2817.2 of Title 68 of the Oklahoma
Statutes.
SECTION 2. This act shall become effective November 1, 2021.
58-1-556 QD 1/4/2021 2:12:56 PM