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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1825 By: Conley
COMMITTEE SUBSTITUTE
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 29 40, which relates to property
acquired for certain public purposes; requiring
county treasurer to provide certain information
related to ad valorem tax liability upon request of
seller or agent of seller; providing for
applicability of requirements based on designated
date; and prescribing time limit for res ponse by
county treasurer.
BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2940, is
amended to read as follows:
Section 2940. A. Whenever the United States, the state, or a
city, town, county, school district, or any other political
subdivision, including, but not limited to, a turnpike authority,
municipal trust, water or conservation district, flood control
district, levee or waterway improvement district, urban renewal
authority, public housing authority, or any other authority
authorized by law, state or fed eral, acquires title to any real
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property for a governm ental purpose between January 1 and October 1
of the tax year, such property shall be relieved of ad valorem tax
for the remaining months of the year beginning with the first of the
month next succeeding the date its acquisition for public purposes
becomes a matter of public record, if the deed thereto was recor ded
prior to October 1; provided, however, that all taxes assessed
against such property prior to its acquisition shall be paid in full
and there be paid a sum equal to one -twelfth (1/12) times the n umber
of months that the property remained in private own ership of an
amount estimated by the county treasurer of the county wherein the
real property lies to be substantially equal to the amount of ta x
which would have been or will become due and payable for the year
had the real property not been acquired for public purposes. In
estimating the amount of taxes which would have been or will become
due and payable for the tax year had the real property not been
acquired for public purposes the county treasu rer shall use as a
basis the current assessment and the t ax rate for the preceding
year, unless the tax for the current year shall be by then
determined and set, in which event he shall use as basis th e new
assessment and rate. The public agency acquiring the property shall
deduct the amount of such taxes from the purchase price payable to
the private owner and remit the same to the county treasurer in
satisfaction of such taxes. The county treasurer of any county is
hereby authorized upon order of the bo ard of tax roll corrections to
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cancel of record all taxes assessed against such property for the
year of its acquisition when the deed thereto was recorded prior to
October 1 and the aforesaid estimate d amount of the tax for the
months that the property wa s in private ownership is paid, which
order shall be issued upon application of the acquiring authority.
B. If real property is sold to an entity that is ex empt from
payment of ad valorem tax pur suant to federal law, Section 6 of
Article X of the Oklahoma Constitution or otherwise, notwithstanding
the terms of sale or the provisions of any escrow agreement between
the seller and the buyer, if the seller of the property, or the
seller's agent, makes a request of the county treasurer of the
applicable county to provide an ad valorem tax bill for the property
based on the tax liability as determined for the property as of the
sale date, the county treasurer shall provide such statement to the
seller not later than ten (10) business days from the date of any
written request to do so. The provision s of this subsection shall
be applicable to the sale of any real property occurring on or after
January 1, 2023.
59-1-7955 JM 03/03/23