1| STATE OF OKLAHOMA | | | 2| 1st Session of the 59th Legislature (2023) | | | 3|HOUSE BILL 2003 By: Boatman | | | 4| | | | 5| | | | 6| AS INTRODUCED | | | 7| An Act relating to revenue and taxation; amending 68 | | O.S. 2021, Section 2913, which relates to ad valorem | 8| tax payments; creating additional payment method; | | permitting county treasurer to offer prepayment | 9| option; limiting eligibility for prepayment option; | | requiring certain notification to county treasurer; | 10| creating installment payments schedule; requiring | | certain notice; requiring certain notice from county | 11| assessor; requiring certain notice from county | | treasurer; requiring prepayments be deposited in | 12| certain account; providing for distribution of | | prepayments; providing for refund of overpayments; | 13| requiring certain notification; limiting effect of | | prepayment option on current law; providing for | 14| codification; and providing an effective date. | | | 15| | | | 16| | | | 17|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 18| SECTION 1. AMENDATORY 68 O.S. 2021, Section 2913, is | | | 19|amended to read as follows: | | | 20| Section 2913. A. All taxes levied upon an ad valorem basis for | | | 21|each fiscal year shall become due and payable on the first day of | | | 22|November. Except for mortgage servicers and taxes prepaid using the | | | 23|prepayment option provided for in Section 2 of this act, the | | | 24|exclusive method for payment shall be as follows: | | | Req. No. 5171 Page 1 ___________________________________________________________________________
1| 1. Unless one-half (1/2) or more of the taxes so levied has | | | 2|been paid before the first day of January, the entire tax levy for | | | 3|such fiscal year shall become delinquent on that date. | | | 4| 2. If the first half or more of the taxes levied upon an ad | | | 5|valorem basis for any such fiscal year has been paid before the | | | 6|first day of January, the remainder shall be paid before the first | | | 7|day of April thereafter and if not paid shall become delinquent on | | | 8|that date. | | | 9| In no event may payment be made in more than two installments | | | 10|subject to the provisions of the payment schedule specified in this | | | 11|subsection. | | | 12| B. Mortgage servicers, as defined in 24 C.F.R., part 3500.17, | | | 13|shall pay all accounts which they are servicing in one annual | | | 14|payment before the first day of January or the entire tax levy for | | | 15|such fiscal year shall become delinquent on that date. | | | 16| C. If the total tax owed is Twenty-five Dollars ($25.00) or | | | 17|less, then the total amount must be paid before January 1. If the | | | 18|total tax is not paid before January 1, the unpaid balance owing | | | 19|shall become delinquent on the first day of January and shall be | | | 20|subject to delinquent charges as provided for in this section. | | | 21| D. All delinquent taxes shall bear interest at the rate of one | | | 22|and one-half percent (1 1/2%) per month or major fraction thereof | | | 23|until paid. In no event shall such interest exceed a sum equal to | | | 24|the unpaid principal amount of tax, and when such interest has | | | Req. No. 5171 Page 2 ___________________________________________________________________________
1|accumulated to a sum equivalent to one hundred percent (100%) of the | | | 2|unpaid tax the further accumulation of interest shall cease. | | | 3| E. In addition to any other penalties prescribed by law, | | | 4|delinquent taxes shall be subject to a late payment penalty of five | | | 5|percent (5%) per month or a major fraction thereof until paid. The | | | 6|penalty assessed herein shall only apply to delinquent taxes that | | | 7|are due on property located in a dependent school district in a | | | 8|county with a population of less than seventy-five thousand (75,000) | | | 9|according to the most recent Federal Decennial Census and held by a | | | 10|nonindividual taxpayer when the tax has been paid delinquent for two | | | 11|(2) or more separate and consecutive years and the fair cash value | | | 12|of the property exceeds Five Hundred Thousand Dollars ($500,000.00). | | | 13| F. The county treasurer shall stamp the date of receipt on each | | | 14|letter received containing funds for payment of taxes and no | | | 15|interest shall be added or charged after the receipt of such letter | | | 16|or the amount due. It shall be the duty of every person subject to | | | 17|taxation according to the law to attend the county treasurer's | | | 18|office and pay his or her taxes. If any person neglects to pay his | | | 19|or her taxes until after they have become delinquent, the county | | | 20|treasurer is directed and required to collect the delinquent tax as | | | 21|provided for by law. The first installment of taxes payable | | | 22|pursuant to the provisions of this section shall not become | | | 23|delinquent until thirty (30) days after the tax rolls have become | | | 24| | | | Req. No. 5171 Page 3 ___________________________________________________________________________
1|completed and filed by the county assessor with the county | | | 2|treasurer. | | | 3| G. The county treasurer may waive penalties or interest in any | | | 4|case where it is shown to the county treasurer that such penalties | | | 5|or interest were incurred through no fault of the taxpayer. Each | | | 6|waiver of penalties or interest shall be audited by the Office of | | | 7|the State Auditor and Inspector each year during the annual audit of | | | 8|the county offices. | | | 9| SECTION 2. NEW LAW A new section of law to be codified | | | 10|in the Oklahoma Statutes as Section 2913.1 of Title 68, unless there | | | 11|is created a duplication in numbering, reads as follows: | | | 12| A. The county treasurer may allow taxpayers owning taxable | | | 13|property within the county the option to prepay taxes levied upon an | | | 14|ad valorem basis using the prepayment option provided for by this | | | 15|section. The prepayment option shall allow taxpayers to make | | | 16|installment payments to pay toward taxes levied upon an ad valorem | | | 17|basis for the following fiscal year. A prepayment option is not | | | 18|allowed for: | | | 19| 1. Accounts with delinquent taxes; | | | 20| 2. Accounts with an ongoing valuation protest from the previous | | | 21|tax year; | | | 22| 3. Taxes paid through an escrow account; or | | | 23| 4. Public service corporations. | | | 24| | | | Req. No. 5171 Page 4 ___________________________________________________________________________
1| B. A taxpayer electing the prepayment option or electing to opt | | | 2|out of using the prepayment option must notify the county treasurer | | | 3|in writing no later than January 15th of the fiscal year for which | | | 4|the prepayments may be made and no earlier than December 1st of the | | | 5|preceding year. If the county treasurer does not receive written | | | 6|notification, the taxpayer must pay the taxes in the same manner as | | | 7|the previous year. | | | 8| C. The prepayment option shall consist of six installment | | | 9|payments. Each installment payment shall be based on an estimated | | | 10|property tax obligation which shall be computed using the total | | | 11|property tax amount from the previous fiscal year, after applying | | | 12|all applicable credits and adjustments reflecting changes in value | | | 13|as determined by the county assessor. The installment payments | | | 14|shall be divided equally, rounded to the nearest whole dollar, of | | | 15|the estimated property tax obligation and must be paid to the county | | | 16|treasurer on or before the following dates: | | | 17| 1. The fifteenth day of January; | | | 18| 2. The fifteenth day of February; | | | 19| 3. The fifteenth day of March; | | | 20| 4. The fifteenth day of April; | | | 21| 5. The fifteenth day of May; | | | 22| 6. The fifteenth day of June; | | | 23| 7. The fifteenth day of July; | | | 24| 8. The fifteenth day of August; | | | Req. No. 5171 Page 5 ___________________________________________________________________________
1| 9. The fifteenth day of September; | | | 2| 10. The fifteenth day of October; | | | 3| 11. The fifteenth day of November; | | | 4| 12. The thirty-first day of December. | | | 5| After the tenth installment payment is received in October and | | | 6|before the first day of November, a notice of the final tax due | | | 7|based on the official tax notice, the tax notice, and a statement | | | 8|explaining any adjustments to the final installment payment amount | | | 9|must be prepared and mailed to the taxpayer. | | | 10| D. The county treasurer must notify the county assessor of each | | | 11|taxpayer electing the prepayment option each year. If the county | | | 12|assessor determines the property has changed in value or that there | | | 13|will be any other significant change in tax amount due, the county | | | 14|assessor must notify and provide the county treasurer with an | | | 15|estimated change in amount due. Upon being notified of an estimated | | | 16|change in amount from the county assessor, the county treasurer must | | | 17|notify the taxpayer in writing of the estimated change in amount and | | | 18|of the adjusted estimated property tax obligation including the | | | 19|adjusted installment payment amounts. | | | 20| E. If a taxpayer electing the prepayment option does not timely | | | 21|make each installment payment, the county treasurer may refuse to | | | 22|accept all other installment payments. If the county treasurer | | | 23|refuses to accept other installment payments, the remaining balance | | | 24| | | | Req. No. 5171 Page 6 ___________________________________________________________________________
1|is due in accordance with Section 2913 of Title 68 of the Oklahoma | | | 2|Statutes. | | | 3| F. The taxes paid under the prepayment option shall be | | | 4|considered a credit against the total tax amount due for the current | | | 5|fiscal year. The taxes paid under prepayment options must be | | | 6|deposited by the county treasurer in an interest bearing account. | | | 7|The interest shall be retained by the county treasurer to offset the | | | 8|administrative expenses of the prepayment option. Once the final | | | 9|installment payment is made, and no later than the last day of | | | 10|December, the installment payments must be credited to the accounts | | | 11|of the property taxing entities in the county in the same proportion | | | 12|that millage was imposed by such entities in the previous tax year | | | 13|with the necessary adjustments made to reflect current tax year | | | 14|millage impositions when property taxes for the current year are | | | 15|paid. | | | 16| G. If the amount of taxes paid using the prepayment option | | | 17|results in an overpayment of property tax, the overpayment must be | | | 18|refunded to the taxpayer within sixty (60) days after the date of | | | 19|the final installment payment. | | | 20| H. For every property of which the owner has elected the | | | 21|prepayment option, each tax notice for the property must contain a | | | 22|calculation of the estimated property tax obligation for the | | | 23|following year, the installment payment amounts based on the | | | 24| | | | Req. No. 5171 Page 7 ___________________________________________________________________________
1|calculation, the following year's payment schedule, and return | | | 2|envelopes for those installment payments. | | | 3| I. The prepayment of estimated property tax as provided in this | | | 4|section and the credit allowed arising from these prepayments in no | | | 5|way alters the due date, penalty schedule, or enforced collection of | | | 6|property taxes as provided by law. | | | 7| SECTION 3. This act shall become effective September 1, 2023. | | | 8| | | | 9| 59-1-5171 MAH 01/16/23 | | | 10| | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Req. No. 5171 Page 8