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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2742 By: Duel
COMMITTEE SUBSTITUTE
An Act relating to revenue and taxation; amending 68
O.S. 2021, Sections 3105 and 3106, which relate to
sale procedures for property based on delinquent ad
valorem taxes; providing for effect of notice;
authorizing service of notice by county sheriff;
providing for right of recovery of expenses related
to sale process by certain prospective purchasers;
and providing an effective da te.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3105, is
amended to read as follows:
Section 3105. A. The county treasurer shall in all cases,
except those provided for in subsection B of this sectio n and except
for periods governed by the provisions of subse ction C of Section
3148 of this title, where taxes are a lien upon real property and
have been unpaid for a period of three (3) years or more as of the
date such taxes first became due and payable , advertise and sell
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such real estate for such taxes and all other delinquent taxes,
special assessments and costs at the tax resale provided for in
Section 3125 of this title, which shall be held on the second Monday
of June each year in each county. The county treasurer shall not be
bound before so doing to proc eed to collect by sale all pe rsonal
taxes on personal property which are by law made a lien on realty,
but shall include such personal tax with that due on the realty, and
shall sell the realty fo r all of the taxes and special assessments.
B. In counties with a population in excess o f one hundred
thousand (100,000) persons according to the most recent Federal
Decennial Census, the county treasurer shall not conduct a tax sale
of such real estate w here taxes are a lien upon real property if the
following conditions are met:
1. The real property contains a single -family residential
dwelling;
2. The individual residing on the property is sixty-five (65)
years of age or older or has been classified a s totally disabled, as
defined in subsection C of this secti on, and such individual owes
the taxes due on the real property;
3. The real property is n ot currently being used as rental
property;
4. The individual living on the property has an annual incom e
that does not exceed the HHS Poverty Guidelines as establi shed each
year by the United States Department of Health and Human Services
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that are published in the Federal Register and in effect at the time
that the proposed tax sale is to take place; and
5. The fair market value of the real property as reflected on
the tax rolls in the office of the county assessor does not exceed
One Hundred Twenty-five Thousand Dollars ($125,000.00).
C. As used in this section, a person who is "totally disabled"
means a person who is unable to engage in any substantial gainful
activity by reason of a medical ly determined physical or mental
impairment which can be expec ted to last for a continuous period of
twelve (12) months or more. Proof of disability may be establishe d
by certification by an agency of state government, an insu rance
company, or as may be r equired by the county treasurer. Eligibility
to receive disability benefits pursuant to a total disability under
the Federal Social Security Act shall constitute proo f of disability
for purposes of this section.
D. It shall be the duty of the individual owning property
subject to the provisions of subsection B of t his section to make
application to the county treasurer for an exemption from a tax sale
prior to the property being sold. It shall also be the duty of the
individual to provide evidence to the county treasurer that the
individual meets the financial requ irements outlined in paragraph 4
of subsection B of this section and all other requirements of this
section to qualify for the exemption. Any individual claiming th e
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exemption provided in this section shall establish eligibility for
the exemption each yea r the exemption is claimed.
E. Taxes, interest and penalties will continue to accrue while
the exemption is claimed. The exemption from sale of property
described in this section shall no long er be applicable and the
county treasurer shall proceed with t he sale of such real estate if
any of the conditions prescribed in this section are no longer met.
F. Every notice of tax resale shall contain language approved
by the Office of the State Audit or and Inspector informing the
taxpayer of the provisions of t his section.
G. In any proceeding pursuant to the provisions of this
section, the county treasurer may r equest the county sheriff to
serve notice upon the owner of the property described in a notice of
sale and the sheriff shall undertake to personally serve any
individual property owner.
H. The publication of notice pursuant to the provisions of this
section, the mailing of the notice of sale to the last -known or best
known address of the prop erty owner, and attempted service by the
county sheriff pursua nt to subsection G of this section shall be
sufficient notice to the owner for purposes of this section.
I. If a sale conducted pursuant to the requirements of this
section is judicially declared to be void, any purchaser of the
property at sale shall have a right of action against the property
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owner for recovery of the purchaser 's costs, fees, and expenses
incurred in preparing for and bidding on the property at the sale.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 3106, is
amended to read as follows:
Section 3106. A. Except for periods governed by the provisions
of subsection C of S ection 3148 of this title, the county treasurer,
according to the law, shall give noti ce of delinquent taxes and
special assessments by publication once a week for two (2)
consecutive weeks at any time after April 1, but prior to the end of
September following the year the taxes were first due and payable,
in some newspaper in the county to be designated by the county
treasurer. Such notice shall con tain a notification that all lands
on which the taxes are delinquent and remain due and unpaid will be
sold in accordance with Section 3105 of this title, a list of the
lands to be sold, the nam e or names of the last record owner or
owners as of the preced ing December 31 or later as reflected by the
records in the office of the county assessor, which records sha ll be
updated based on real property conveyed after October 1 each year
and the amount of taxes due and delinquent. If th e sale involves
property upon which is located a ma nufactured home the notice shall
contain the following language: "The sale hereby advertised
involves a manufactured home which may be subject to the right of a
secured party to repossess. A holder of a perfected security
interest in such manufactured ho me may be able to pay ad valorem
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taxes based upon the value of the manufactured hom e apart from the
value of real property." In addition to said published notice, the
county treasurer shall give notice by mailing to the record own er of
said real property as of the preceding December 31 or later as
reflected by the records in the office of the county assessor, which
records shall be updated based on real property conveyed after
October 1 each year, a notice stating the amount of del inquent taxes
owed and informing the owner that the subject real property will be
sold as provided for in Se ction 3105 of this title if the delinquent
taxes are not paid and showing the legal de scription of the property
of the owner being sold. Failure to receive said notice shal l not
invalidate said sale. The county treasurer shall charge and collect
in cash, cashier's check or money order, in addition to the taxes,
interest and penalty, the p ublication fees as provided by the
provisions of Section 121 o f Title 28 of the Oklahom a Statutes, and
Five Dollars ($5.00) plus postage for mailing the notice, which
shall be paid into the county treasury or whatever fund the
publication and mailing fee e xpenses came from, and the county sh all
pay the cost of the pu blication of such notice. But in no case
shall the county be liable for more than the amount charged to the
delinquent lands for advertising and the cost of mailing.
B. If personal property ta xes become delinquent on a
manufactured home which is located on property not owned by the
owner of the manufactured home and the county treasurer provides
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notice pursuant to Sections 3102 and 3103 of this title, such notice
shall also be sent to the last -known address of the owner of the
real property on which the m anufactured home is locat ed.
C. In any proceeding pursuant to the provisions of this
section, the county treasurer may request the county sheriff to
serve notice upon the owner of the property described in a notice of
sale and the sheriff shall undertake to personally serve any
individual property owner.
D. The publication of notice pursuant to the provisions of this
section, the mailing of the notice of sale to the last -known or best
known address of the property owner, and attempted service by the
county sheriff pursuant to sub section C of this section shall be
sufficient notice to the owner for purposes of this section.
E. If a sale conducted pursuant to the requirements of this
section is judicially declared to be void , any purchaser of the
property at sale shall have a right of action against the property
owner for recovery of the purchaser 's costs, fees, and expenses
incurred in preparing for and bidding on the property at the sale.
SECTION 3. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON COUNTY AND MUNICIPAL GOVERNMENT,
dated 02/22/2023 - DO PASS, As Amended.