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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 1087 By: Hines
AS INTRODUCED
An Act relating to ad valorem tax; defining term;
providing credit against ad valorem tax for certain
expenses or reduction in fair cash value resulting
from a lack of enforcement of laws and maintenance of
certain nuisance; prescribing amount of credit;
requiring county treasurer to withhold certain
distribution of funds; prohibiting credit for certain
act or omission; requiring local gove rnment to bear
the burden of proof in challenge to claim;
prohibiting requireme nt to submit claim to receive
just compensation; authorizing the owner to claim
subsequent credit under certain circumstance;
limiting credit claimed in certain period; providin g
for carry-forward of credit; requiring the Oklahoma
Tax Commission to administer certain provisions;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2952 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. As used in this section, “owner” means the holder of the
subject real property.
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B. There shall be allowed a credit against the ad valorem tax
liability of an owner, pursuant to Section 2915 of Title 68 of the
Oklahoma Statutes, if the government of a county, city, or
municipality follows a policy, pattern, or practice of declin ing to
enforce existing laws, ordinances, or other regulations against
illegal camping, obstruction of public thoroughfares, loitering,
panhandling, public urination or defecation, or public consumption
of alcoholic beverages or illegal substances, or if t he local
government maintains a public nuisance involving camping, loitering,
and pollution, and:
1. The fair cash value of the real property of the owner is
reduced by this policy, pattern, practice, or public nuisance; or
2. The owner incurs expenses t o mitigate the effects on the
private real property of this policy, pattern, pr actice, or public
nuisance.
C. The amount of credit allowed pursuant to subsection B of
this section shall be, at the election of the owner, equal to
either:
1. The reduction in fair cash value of the real property
resulting from the policy, pattern, practice, or public nuisance of
the local government; or
2. The expenses incurred by the owner that were reasonably
necessary to mitigate the effects on the real property of the
policy, pattern, practice, or public nuisance.
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D. With respect to any county, c ity, or municipality for which
a credit is claimed pursuant to this section, the county treasurer
shall withhold from the distribution of monies pursuant to Section
2923 of Title 68 of the Oklahoma Statutes to the affected county,
city, or municipality the respective aggregate amount of credit
claimed pursuant to this section.
E. The credit provided for in this section shall not be allowed
for expenses or reductions in fair cash value resulting from:
1. Decisions by local authorities to exercise prosecuto rial
discretion not to prosecute alleged offenders, if the decisions are
made on a case-by-case basis and the justification for each decision
is published on a monthly basis by the local authority;
2. An act of executive clemency;
3. Acts or omissions mandated by federal law; and
4. An act or omission taken pursuant to Section 683.9 of Title
63 of the Oklahoma Statutes.
F. For any challenge to a credit claimed pursuant to thi s
section, the county, city, or municipality shall bear the burden of
demonstrating that the actions taken are lawful or that the amount
of the credit claimed is unreasonable.
G. The owner shall not be required to submit any claim as a
prerequisite to demanding or receiving just compensation in the form
of a credit pursuant to this section.
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H. If the policy, pattern, or practice remains in place after
the owner claims a credit pursuant to this section, the owner shall
be entitled to a subsequent tax credi t in a following year pursuant
to the provisions of this section, unless the re levant government
entity and the owner reach a settlement or the government entity
ceases the policy, pattern, or practice, or abates the public
nuisance.
I. An owner may claim the credit provided pursuant to this
section no more than once per year.
J. If the amount of the credit allowed pursuant to this section
exceeds the tax liability of the owner, the amount of the credit not
used as an offset against the tax liability for that year may be
carried forward as a credit for ten (10) subsequent years.
K. The Oklahoma Tax Commission shall administer the provisions
of this section, including the furnishing of forms for submission of
a claim.
SECTION 2. This act shall become effective November 1, 2025.
60-1-976 QD 1/16/2025 3:25:23 PM