Req. No. 551 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 583 By: Montgomery
AS INTRODUCED
An Act relating to ad valorem exemption; amending 62
O.S. 2021, Section 193, which relates to the Ad
Valorem Reimbursement Fund; requiring the Oklahoma
Tax Commission to submit certain report; stating
deadline for submission of report; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 202 1, 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 e xpended:
1. To reimburse counties of this state for loss of revenue due
to exemptions of ad valorem taxes for new or exp anded manufacturing
or research and develo pment facilities;
2. Beginning calendar year 2022 and all subsequent years, to
reimburse qualified counties of this state for loss of revenue due
Req. No. 551 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
to exemptions granted to vete rans and their surviving spouses
pursuant to the provisions of Sections 8D, 8E a nd 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 rec ently 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 thi s paragraph shall amount to twenty -five
percent (25%) of the loss of revenue cla imed 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 prov isions of Section 2890 of Title 68 of the
Oklahoma Statutes; and
4. To reimburse counties of this state for loss of revenue due
to decreased valuation and assessment fo r buffer strips pursuant to
Section 2817.2 of Title 68 of the Oklahoma Statutes.
Provided that it shall be the duty of the Ta x Commission to
assess the valuation of al l property for new or expanded
manufacturing or research and development facilities whic h are
exempt from ad valorem taxes.
Req. No. 551 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Monies apportioned to this fund also may be transfer red 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 reven ue from the Ad Valorem Reimbursement
Fund shall make claims for reimbursement on forms pre scribed by the
Tax Commission prior to April 30 of each year. Claims for
reimbursement for loss of revenue based upon the type of exemptions
authorized pursuant to s ubsection A of this section . Provided, the
assessed valuation of a school district as sta ted in the claim for
reimbursement shall be the same as reported to the State De partment
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 Statut es. The claims shall be either
approved or disapproved in whole or in part by t he Tax Commission by
June 15 of each year . A claim for reimbursement for loss of reve nue
due to an exemption of ad valorem taxes for a new or expanded
manufacturing or researc h and development facility shall be
disapproved if a county or school district h as 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 gran ted, it shall
notify the appropriate count y assessor who shall immediately value
and assess the property and place it on the rol ls for ad valorem
Req. No. 551 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
taxation. Disbursements from the fund shall be made on warrants
issued by the State Treasurer against claims filed by the Tax
Commission with the Offic e of Management and Enterprise Services for
payment. Such disbursements shall be exem pt from all agency
expenditure ceilings . The county treasurer shall apportion or
disburse such funds for expenditures in the sa me manner as other ad
valorem tax collecti ons.
C. In the event monies apportioned to the Ad Valorem
Reimbursement Fund are ins ufficient 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 b e paid first, and any remaining funds
shall be distributed proportionally among the countie s making claims
for reimbursement for loss of revenue for school district and co unty
purposes due to exemptions granted pursuant to the provisions o f
Sections 8D, 8E and 8F of Article X of the Oklahoma Constitution, if
applicable, according to the amount o f the claim made by each
county. If any funds remain after paying all claims fo r
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 grante d
pursuant to the provisions of Sections 8D, 8E and 8F of Article X of
Req. No. 551 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the Oklahoma Constitution, the remaining funds shall be distributed
proportionally among the counties mak ing claims for reimbursement
for the exemptions granted pursuant to the provisio ns 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 2817.2 of Title 68 of the Oklahoma Statutes.
D. Beginning in 2023, by April 15 of each year and by the end
of each calendar year, the Tax Comm ission shall submit reports
on the Ad Valorem Reimbursement Fund to the Chair of the
Appropriations Committee of the Senate and the Chair of the
Appropriations and Bud get Committee of the House of Representatives
which shall include, but not be limited to, the following:
1. Total reimbursement payments for the year;
2. Total claims remaining unpaid for each ad valorem exemption
and, for the latest claim paid for each exemption, the date the
claim was made; and
3. An estimate of how many unpaid claims will be paid in the
next year for each ad valorem exemption .
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or s afety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
59-1-551 QD 1/17/2023 6:22:27 PM