Bill Text For HB1825 - House Floor Version

 1|              HOUSE OF REPRESENTATIVES - FLOOR VERSION                 |
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 2|                          STATE OF OKLAHOMA                            |
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 3|             1st Session of the 59th Legislature (2023)                |
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 4|COMMITTEE SUBSTITUTE                                                   |
  |FOR                                                                    |
 5|HOUSE BILL NO. 1825                  By: Conley of the House           |
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 6|                                         and                           |
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 7|                                         Jett of the Senate            |
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10|                        COMMITTEE SUBSTITUTE                           |
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11|       An Act relating to revenue and taxation; amending 68            |
  |       O.S. 2021, Section 2940, which relates to property              |
12|       acquired for certain public purposes; requiring                 |
  |       county treasurer to provide certain information                 |
13|       related to ad valorem tax liability upon request of             |
  |       seller or agent of seller; providing for                        |
14|       applicability of requirements based on designated               |
  |       date; and prescribing time limit for response by                |
15|       county treasurer.                                               |
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18|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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19|    SECTION 1.     AMENDATORY     68 O.S. 2021, Section 2940, is       |
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20|amended to read as follows:                                            |
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21|    Section 2940.  A.  Whenever the United States, the state, or a     |
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22|city, town, county, school district, or any other political            |
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23|subdivision, including, but not limited to, a turnpike authority,      |
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24|municipal trust, water or conservation district, flood control         |
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arsid2233784 HB1825 HFLR                                           Page 1
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 1|district, levee or waterway improvement district, urban renewal        |
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 2|authority, public housing authority, or any other authority            |
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 3|authorized by law, state or federal, acquires title to any real        |
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 4|property for a governmental purpose between January 1 and October 1    |
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 5|of the tax year, such property shall be relieved of ad valorem tax     |
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 6|for the remaining months of the year beginning with the first of the   |
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 7|month next succeeding the date its acquisition for public purposes     |
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 8|becomes a matter of public record, if the deed thereto was recorded    |
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 9|prior to October 1; provided, however, that all taxes assessed         |
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10|against such property prior to its acquisition shall be paid in full   |
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11|and there be paid a sum equal to one-twelfth (1/12) times the number   |
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12|of months that the property remained in private ownership of an        |
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13|amount estimated by the county treasurer of the county wherein the     |
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14|real property lies to be substantially equal to the amount of tax      |
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15|which would have been or will become due and payable for the year      |
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16|had the real property not been acquired for public purposes.  In       |
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17|estimating the amount of taxes which would have been or will become    |
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18|due and payable for the tax year had the real property not been        |
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19|acquired for public purposes the county treasurer shall use as a       |
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20|basis the current assessment and the tax rate for the preceding        |
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21|year, unless the tax for the current year shall be by then             |
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22|determined and set, in which event he shall use as basis the new       |
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23|assessment and rate.  The public agency acquiring the property shall   |
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24|deduct the amount of such taxes from the purchase price payable to     |
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arsid2233784 HB1825 HFLR                                           Page 2
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 1|the private owner and remit the same to the county treasurer in        |
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 2|satisfaction of such taxes.  The county treasurer of any county is     |
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 3|hereby authorized upon order of the board of tax roll corrections to   |
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 4|cancel of record all taxes assessed against such property for the      |
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 5|year of its acquisition when the deed thereto was recorded prior to    |
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 6|October 1 and the aforesaid estimated amount of the tax for the        |
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 7|months that the property was in private ownership is paid, which       |
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 8|order shall be issued upon application of the acquiring authority.     |
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 9|    B.  If real property is sold to an entity that is exempt from      |
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10|payment of ad valorem tax pursuant to federal law, Section 6 of        |
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11|Article X of the Oklahoma Constitution or otherwise, notwithstanding   |
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12|the terms of sale or the provisions of any escrow agreement between    |
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13|the seller and the buyer, if the seller of the property, or the        |
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14|seller's agent, makes a request of the county treasurer of the         |
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15|applicable county to provide an ad valorem tax bill for the property   |
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16|based on the tax liability as determined for the property as of the    |
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17|sale date, the county treasurer shall provide such statement to the    |
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18|seller not later than ten (10) business days from the date of any      |
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19|written request to do so.  The provisions of this subsection shall     |
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20|be applicable to the sale of any real property occurring on or after   |
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21|January 1, 2023.                                                       |
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23|COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated     |
  |03/06/2023 - DO PASS, As Amended and Coauthored.                       |
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arsid2233784 HB1825 HFLR                                           Page 3
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