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ENGROSSED HOUSE
BILL NO. 1825 By: Conley of the House
and
Jett of the Senate
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
response 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, schoo l 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 au thority, or any other authority
authorized by law, state or fed eral, acquires title to any real
property for a governmental 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
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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 number
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 pa yable 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 treasurer 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 t hen
determined and set, in which event he shall use as basis th e new
assessment and rate. The public agency acq uiring 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 board of tax roll corrections to
cancel of record all taxes assessed against such property for the
year of its acquisition when the deed the reto was recorded prior to
October 1 and the aforesaid estimate d amount of the tax for the
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months that the prope rty was 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 exempt 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.
Passed the House of Representatives the 21st day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ____ day of __________, 2023.
Presiding Officer of the Senate