1| HOUSE OF REPRESENTATIVES - FLOOR VERSION | | | 2| STATE OF OKLAHOMA | | | 3| 1st Session of the 59th Legislature (2023) | | | 4|COMMITTEE SUBSTITUTE | |FOR | 5|HOUSE BILL NO. 2003 By: Boatman of the House | | | 6| and | | | 7| Seifried of the Senate | | | 8| | | | 9| | | | 10| COMMITTEE SUBSTITUTE | | | 11| An Act relating to revenue and taxation; amending 68 | | O.S. 2021, Section 2913, which relates to ad valorem | 12| tax payments; creating additional payment method; | | permitting county treasurer to offer prepayment | 13| option; limiting eligibility for prepayment option; | | requiring certain notification to county treasurer; | 14| creating installment payments schedule; requiring | | certain notice; requiring certain notice from county | 15| assessor; requiring certain notice from county | | treasurer; requiring prepayments be deposited in | 16| certain account; providing for distribution of | | prepayments; providing for refund of overpayments; | 17| requiring certain notification; limiting effect of | | prepayment option on current law; providing for | 18| codification; and providing an effective date. | | | 19| | | | 20| | | | 21|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 22| SECTION 1. AMENDATORY 68 O.S. 2021, Section 2913, is | | | 23|amended to read as follows: | | | 24| | | | arsid14509124 HB2003 HFLR Page 1 ___________________________________________________________________________
1| Section 2913. A. All taxes levied upon an ad valorem basis for | | | 2|each fiscal year shall become due and payable on the first day of | | | 3|November. Except for mortgage servicers and taxes prepaid using the | | | 4|prepayment option provided for in Section 2 of this act, the | | | 5|exclusive method for payment shall be as follows: | | | 6| 1. Unless one-half (1/2) or more of the taxes so levied has | | | 7|been paid before the first day of January, the entire tax levy for | | | 8|such fiscal year shall become delinquent on that date. | | | 9| 2. If the first half or more of the taxes levied upon an ad | | | 10|valorem basis for any such fiscal year has been paid before the | | | 11|first day of January, the remainder shall be paid before the first | | | 12|day of April thereafter and if not paid shall become delinquent on | | | 13|that date. | | | 14| In no event may payment be made in more than two installments | | | 15|subject to the provisions of the payment schedule specified in this | | | 16|subsection. | | | 17| B. Mortgage servicers, as defined in 24 C.F.R., part 3500.17, | | | 18|shall pay all accounts which they are servicing in one annual | | | 19|payment before the first day of January or the entire tax levy for | | | 20|such fiscal year shall become delinquent on that date. | | | 21| C. If the total tax owed isTwenty-fiveFifty Dollars($25.00)| | | 22|($50.00) or less, then the total amount must be paid before January | | | 23|1. If the total tax is not paid before January 1, the unpaid | | | 24|balance owing shall become delinquent on the first day of January | | | arsid14509124 HB2003 HFLR Page 2 ___________________________________________________________________________
1|and shall be subject to delinquent charges as provided for in this | | | 2|section. | | | 3| D. All delinquent taxes shall bear interest at the rate of one | | | 4|and one-half percent (1 1/2%) per month or major fraction thereof | | | 5|until paid. In no event shall such interest exceed a sum equal to | | | 6|the unpaid principal amount of tax, and when such interest has | | | 7|accumulated to a sum equivalent to one hundred percent (100%) of the | | | 8|unpaid tax the further accumulation of interest shall cease. | | | 9| E. In addition to any other penalties prescribed by law, | | | 10|delinquent taxes shall be subject to a late payment penalty of five | | | 11|percent (5%) per month or a major fraction thereof until paid. The | | | 12|penalty assessed herein shall only apply to delinquent taxes that | | | 13|are due on property located in a dependent school district in a | | | 14|county with a population of less than seventy-five thousand (75,000) | | | 15|according to the most recent Federal Decennial Census and held by a | | | 16|nonindividual taxpayer when the tax has been paid delinquent for two | | | 17|(2) or more separate and consecutive years and the fair cash value | | | 18|of the property exceeds Five Hundred Thousand Dollars ($500,000.00). | | | 19| F. The county treasurer shall stamp the date of receipt on each | | | 20|letter received containing funds for payment of taxes and no | | | 21|interest shall be added or charged after the receipt of such letter | | | 22|or the amount due. It shall be the duty of every person subject to | | | 23|taxation according to the law to attend the county treasurer's | | | 24|office and pay his or her taxes. If any person neglects to pay his | | | arsid14509124 HB2003 HFLR Page 3 ___________________________________________________________________________
1|or her taxes until after they have become delinquent, the county | | | 2|treasurer is directed and required to collect the delinquent tax as | | | 3|provided for by law. The first installment of taxes payable | | | 4|pursuant to the provisions of this section shall not become | | | 5|delinquent until thirty (30) days after the tax rolls have become | | | 6|completed and filed by the county assessor with the county | | | 7|treasurer. | | | 8| G. The county treasurer may waive penalties or interest in any | | | 9|case where it is shown to the county treasurer that such penalties | | | 10|or interest were incurred through no fault of the taxpayer. Each | | | 11|waiver of penalties or interest shall be audited by the Office of | | | 12|the State Auditor and Inspector each year during the annual audit of | | | 13|the county offices. | | | 14| SECTION 2. NEW LAW A new section of law to be codified | | | 15|in the Oklahoma Statutes as Section 2913.1 of Title 68, unless there | | | 16|is created a duplication in numbering, reads as follows: | | | 17| A. The county treasurer may allow taxpayers owning taxable | | | 18|property within the county the option to prepay taxes levied upon an | | | 19|ad valorem basis using the prepayment option provided for by this | | | 20|section. The prepayment option shall allow taxpayers to make | | | 21|installment payments to pay toward taxes levied upon an ad valorem | | | 22|basis for the following calendar year. A prepayment option is not | | | 23|allowed for: | | | 24| 1. Accounts with delinquent taxes; | | | arsid14509124 HB2003 HFLR Page 4 ___________________________________________________________________________
1| 2. Accounts with an ongoing valuation protest from the previous | | | 2|tax year; | | | 3| 3. Taxes paid through an escrow account; or | | | 4| 4. Public service corporations. | | | 5| B. A taxpayer electing the prepayment option or electing to opt | | | 6|out of using the prepayment option must notify the county treasurer | | | 7|in writing no later than January 15th of the calendar year for which | | | 8|the prepayments may be made and no earlier than December 1st of the | | | 9|preceding year. If the county treasurer does not receive written | | | 10|notification, the taxpayer must pay the taxes in the manner as | | | 11|prescribed in subsection A of Section 2913 of Title 68 of the | | | 12|Oklahoma Statutes. | | | 13| C. The prepayment option shall consist of twelve installment | | | 14|payments. Each installment payment shall be based on an estimated | | | 15|property tax obligation which shall be computed by the taxpayer | | | 16|using the total property tax amount from the previous calendar year, | | | 17|adjusted for any anticipated changes in property value. The | | | 18|installment payments shall be divided equally, rounded to the | | | 19|nearest whole dollar, of the estimated property tax obligation and | | | 20|must be paid to the county treasurer on or before the following | | | 21|dates: | | | 22| 1. The fifteenth day of January; | | | 23| 2. The fifteenth day of February; | | | 24| 3. The fifteenth day of March; | | | arsid14509124 HB2003 HFLR Page 5 ___________________________________________________________________________
1| 4. The fifteenth day of April; | | | 2| 5. The fifteenth day of May; | | | 3| 6. The fifteenth day of June; | | | 4| 7. The fifteenth day of July; | | | 5| 8. The fifteenth day of August; | | | 6| 9. The fifteenth day of September; | | | 7| 10. The fifteenth day of October; | | | 8| 11. The fifteenth day of November; | | | 9| 12. The thirty-first day of December. | | | 10| D. Before the first day of November, a sum of all installment | | | 11|payment amounts made in that calendar year by each taxpayer shall be | | | 12|calculated by the county treasurer. This sum shall be reported on | | | 13|the taxpayer statement prescribed by subsection B of Section 2915 of | | | 14|Title 68 of the Oklahoma Statutes. | | | 15| If a taxpayer electing the prepayment option does not timely | | | 16|make each installment payment, the county treasurer may refuse to | | | 17|accept all other installment payments. If the county treasurer | | | 18|refuses to accept other installment payments, the remaining balance | | | 19|is due in accordance with Section 2913 of Title 68 of the Oklahoma | | | 20|Statutes. | | | 21| E. The taxes paid under the prepayment option shall be | | | 22|considered a credit against the total tax amount due for the current | | | 23|calendar year. The taxes paid under prepayment options must be | | | 24|deposited by the county treasurer in a dedicated Trust and Agency | | | arsid14509124 HB2003 HFLR Page 6 ___________________________________________________________________________
1|Fund to be known as the "Property Tax Prepayment Fund". The fund | | | 2|shall receive interest and the interest shall be retained by the | | | 3|county treasurer and placed into a separate existing cash fund known | | | 4|as the "County Treasurer's Mortgage Certification Fee Account" to | | | 5|offset the administrative expenses of the prepayment option. Once | | | 6|the final installment payment is made, and no later than the last | | | 7|day of December, the installment payments must be credited to the | | | 8|accounts of the property taxing entities in the county in the same | | | 9|proportion that millage was imposed by such entities in the previous | | | 10|tax year with the necessary adjustments made to reflect current tax | | | 11|year millage impositions when property taxes for the current year | | | 12|are paid. | | | 13| F. If the amount of taxes paid using the prepayment option | | | 14|results in an overpayment of property tax, the overpayment must be | | | 15|refunded to the taxpayer within sixty (60) days after the date of | | | 16|the final installment payment. | | | 17| G. The prepayment of estimated property tax as provided in this | | | 18|section and the credit allowed arising from these prepayments in no | | | 19|way alters the due date, penalty schedule, or enforced collection of | | | 20|property taxes as provided by law. | | | 21| SECTION 3. This act shall become effective September 1, 2023. | | | 22| | | | 23|COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated | |03/02/2023 - DO PASS, As Amended and Coauthored. | 24| | | | arsid14509124 HB2003 HFLR Page 7