1|ENGROSSED SENATE | |BILL NO. 583 By: Montgomery of the Senate | 2| | | and | 3| | | Hilbert of the House | 4| | | | 5| | | | 6| An Act relating to ad valorem exemption; amending 62 | | O.S. 2021, Section 193, which relates to the Ad | 7| Valorem Reimbursement Fund; requiring the Oklahoma | | Tax Commission to submit certain report; stating | 8| deadline for submission of report; and declaring an | | emergency. | 9| | | | 10| | | | 11|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 12| SECTION 1. AMENDATORY 62 O.S. 2021, Section 193, is | | | 13|amended to read as follows: | | | 14| Section 193. A. There is hereby created in the State Treasury | | | 15|a revolving fund for the Oklahoma Tax Commission to be designated | | | 16|the "Ad Valorem Reimbursement Fund". The fund shall be a continuing | | | 17|fund, not subject to fiscal year limitations. Monies apportioned to | | | 18|this fund shall be expended: | | | 19| 1. To reimburse counties of this state for loss of revenue due | | | 20|to exemptions of ad valorem taxes for new or expanded manufacturing | | | 21|or research and development facilities; | | | 22| 2. Beginning calendar year 2022 and all subsequent years, to | | | 23|reimburse qualified counties of this state for loss of revenue due | | | 24|to exemptions granted to veterans and their surviving spouses | | | Page 1 ___________________________________________________________________________
1|pursuant to the provisions of Sections 8D, 8E and 8F of Article X of | | | 2|the Oklahoma Constitution. A county is qualified for reimbursement | | | 3|if the number of exemptions granted to veterans and surviving | | | 4|spouses for the most recently concluded calendar year exceeds | | | 5|eight-tenths of one percent (0.8%) of the total county population | | | 6|according to the latest Federal Decennial Census or most recent | | | 7|annual population estimate, whichever is most recent. The | | | 8|reimbursement provided in this paragraph shall amount to twenty-five | | | 9|percent (25%) of the loss of revenue claimed by the qualified | | | 10|county; | | | 11| 3. To reimburse counties of this state for loss of revenue for | | | 12|school district and county purposes due to exemptions granted | | | 13|pursuant to the provisions of Section 2890 of Title 68 of the | | | 14|Oklahoma Statutes; and | | | 15| 4. To reimburse counties of this state for loss of revenue due | | | 16|to decreased valuation and assessment for buffer strips pursuant to | | | 17|Section 2817.2 of Title 68 of the Oklahoma Statutes. | | | 18| Provided that it shall be the duty of the Tax Commission to | | | 19|assess the valuation of all property for new or expanded | | | 20|manufacturing or research and development facilities which are | | | 21|exempt from ad valorem taxes. | | | 22| Monies apportioned to this fund also may be transferred to other | | | 23|state funds or otherwise expended as directed by the Legislature by | | | 24|law. | | | Page 2 ___________________________________________________________________________
1| B. The county commissioners of each county seeking | | | 2|reimbursement for lost revenue from the Ad Valorem Reimbursement | | | 3|Fund shall make claims for reimbursement on forms prescribed by the | | | 4|Tax Commission prior to April 30 of each year. Claims for | | | 5|reimbursement for loss of revenue based upon the type of exemptions | | | 6|authorized pursuant to subsection A of this section. Provided, the | | | 7|assessed valuation of a school district as stated in the claim for | | | 8|reimbursement shall be the same as reported to the State Department | | | 9|of Education on the Estimate of Need and shall include the total | | | 10|valuation of property exempt from taxation pursuant to Section 2902 | | | 11|of Title 68 of the Oklahoma Statutes. The claims shall be either | | | 12|approved or disapproved in whole or in part by the Tax Commission by | | | 13|June 15 of each year. A claim for reimbursement for loss of revenue | | | 14|due to an exemption of ad valorem taxes for a new or expanded | | | 15|manufacturing or research and development facility shall be | | | 16|disapproved if a county or school district has received any payment | | | 17|in lieu of ad valorem taxes from such facility, to the extent of the | | | 18|amount of such reimbursement. If the Tax Commission determines that | | | 19|an exemption has been erroneously or unlawfully granted, it shall | | | 20|notify the appropriate county assessor who shall immediately value | | | 21|and assess the property and place it on the rolls for ad valorem | | | 22|taxation. Disbursements from the fund shall be made on warrants | | | 23|issued by the State Treasurer against claims filed by the Tax | | | 24|Commission with the Office of Management and Enterprise Services for | | | Page 3 ___________________________________________________________________________
1|payment. Such disbursements shall be exempt from all agency | | | 2|expenditure ceilings. The county treasurer shall apportion or | | | 3|disburse such funds for expenditures in the same manner as other ad | | | 4|valorem tax collections. | | | 5| C. In the event monies apportioned to the Ad Valorem | | | 6|Reimbursement Fund are insufficient to pay all claims for | | | 7|reimbursement made pursuant to subsection B of this section, claims | | | 8|for reimbursement for loss of revenue due to exemptions of ad | | | 9|valorem taxes for new or expanded manufacturing or research and | | | 10|development facilities shall be paid first, and any remaining funds | | | 11|shall be distributed proportionally among the counties making claims | | | 12|for reimbursement for loss of revenue for school district and county | | | 13|purposes due to exemptions granted pursuant to the provisions of | | | 14|Sections 8D, 8E and 8F of Article X of the Oklahoma Constitution, if | | | 15|applicable, according to the amount of the claim made by each | | | 16|county. If any funds remain after paying all claims for | | | 17|reimbursement for loss of revenue due to exemptions of ad valorem | | | 18|taxation for new or expanded manufacturing or research and | | | 19|development facilities and for reimbursement for loss of revenue for | | | 20|school district and county purposes due to exemptions granted | | | 21|pursuant to the provisions of Sections 8D, 8E and 8F of Article X of | | | 22|the Oklahoma Constitution, the remaining funds shall be distributed | | | 23|proportionally among the counties making claims for reimbursement | | | 24|for the exemptions granted pursuant to the provisions of Section | | | Page 4 ___________________________________________________________________________
1|2890 of Title 68 of the Oklahoma Statutes and for the loss of | | | 2|revenue for decreased valuation and assessment for buffer strips | | | 3|pursuant to Section 2817.2 of Title 68 of the Oklahoma Statutes. | | | 4| D. Beginning in 2023, by April 15 of each year and by the end | | | 5|of each calendar year, the Tax Commission shall submit reports on | | | 6|the Ad Valorem Reimbursement Fund to the Chair of the Appropriations | | | 7|Committee of the Senate and the Chair of the Appropriations and | | | 8|Budget Committee of the House of Representatives which shall | | | 9|include, but not be limited to, the following: | | | 10| 1. Total reimbursement payments for the year; | | | 11| 2. Total claims remaining unpaid for each ad valorem exemption | | | 12|and, for the latest claim paid for each exemption, the date the | | | 13|claim was made; and | | | 14| 3. An estimate of how many unpaid claims will be paid in the | | | 15|next year for each ad valorem exemption. | | | 16| SECTION 2. It being immediately necessary for the preservation | | | 17|of the public peace, health or safety, an emergency is hereby | | | 18|declared to exist, by reason whereof this act shall take effect and | | | 19|be in full force from and after its passage and approval. | | | 20| Passed the Senate the 2nd day of March, 2023. | | | 21| | | | 22| | | Presiding Officer of the Senate | 23| | | | 24| | | | Page 5 ___________________________________________________________________________
1| Passed the House of Representatives the ____ day of __________, | | | 2|2023. | | | 3| | | | 4| | | Presiding Officer of the House | 5| of Representatives | | | 6| | | | 7| | | | 8| | | | 9| | | | 10| | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Page 6