HB 3972

                                An Act
ENROLLED HOUSE
BILL NO. 3972  By: Caldwell (Trey) of the
                                         House
                                                and
                                         Kern of the Senate
       An Act relating to public finance; amending 62 O.S.
       2021, Section 193, which relates to the Ad Valorem
       Reimbursement Fund; authorizing reimbursement to
       school districts of revenue losses related to certain
       property purchases by the state; limiting
       reimbursement; modifying reimbursement priority under
       certain circumstances; and declaring an emergency.
SUBJECT: Public finance
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
    SECTION 1.     AMENDATORY     62 O.S. 2021, Section 193, is
amended to read as follows:
    Section 193. A. There is hereby created in the State Treasury
a revolving fund for the Oklahoma Tax Commission to be designated
the "Ad Valorem Reimbursement Fund". The fund shall be a continuing
fund, not subject to fiscal year limitations. Monies apportioned to
this fund shall be expended:
    1. To reimburse counties of this state for loss of revenue due
to exemptions of ad valorem taxes for new or expanded manufacturing
or research and development facilities;
    2. Beginning calendar year 2022 and all subsequent years, to
reimburse qualified counties of this state for loss of revenue due
to exemptions granted to veterans and their surviving spouses
pursuant to the provisions of Sections 8D, 8E and 8F of Article X of
the Oklahoma Constitution. A county is qualified for reimbursement
if the number of exemptions granted to veterans and surviving
spouses for the most recently concluded calendar year exceeds eight-
tenths of one percent (0.8%) of the total county population
according to the latest Federal Decennial Census or most recent
annual population estimate, whichever is most recent. The
reimbursement provided in this paragraph shall amount to twenty-five
percent (25%) of the loss of revenue claimed by the qualified
county;
    3. To reimburse counties of this state for loss of revenue for
school district and county purposes due to exemptions granted
pursuant to the provisions of Section 2890 of Title 68 of the
Oklahoma Statutes; and
    4. To reimburse counties of this state for loss of revenue due
to decreased valuation and assessment for buffer strips pursuant to
Section 2817.2 of Title 68 of the Oklahoma Statutes; and
    5. To reimburse counties of this state for loss of revenue for
school district purposes due to a purchase by the state of property
located in the county for an amount greater than Three Hundred
Million Dollars ($300,000,000.00); provided, such purchase occurred
on or after January 1, 2025; further provided, such reimbursement be
limited to the first two (2) tax years following such purchase.
    Provided that it shall be the duty of the Tax Commission to
assess the valuation of all property for new or expanded
manufacturing or research and development facilities which are
exempt from ad valorem taxes.
    Monies apportioned to this fund also may be transferred to other
state funds or otherwise expended as directed by the Legislature by
law.
    B. The county commissioners of each county seeking
reimbursement for lost revenue from the Ad Valorem Reimbursement
Fund shall make claims for reimbursement on forms prescribed by the
Tax Commission prior to April 30 of each year. Claims for
reimbursement for loss of revenue based upon the type of exemptions
authorized pursuant to subsection A of this section. Provided, the
assessed valuation of a school district as stated in the claim for
reimbursement shall be the same as reported to the State Department
of Education on the Estimate of Need and shall include the total
valuation of property exempt from taxation pursuant to Section 2902
of Title 68 of the Oklahoma Statutes. The claims shall be either
approved or disapproved in whole or in part by the Tax Commission by
ENR. H. B. NO. 3972  Page 2
June 15 of each year. A claim for reimbursement for loss of revenue
due to an exemption of ad valorem taxes for a new or expanded
manufacturing or research and development facility shall be
disapproved if a county or school district has received any payment
in lieu of ad valorem taxes from such facility, to the extent of the
amount of such reimbursement. If the Tax Commission determines that
an exemption has been erroneously or unlawfully granted, it shall
notify the appropriate county assessor who shall immediately value
and assess the property and place it on the rolls for ad valorem
taxation. Disbursements from the fund shall be made on warrants
issued by the State Treasurer against claims filed by the Tax
Commission with the Office of Management and Enterprise Services for
payment. Such disbursements shall be exempt from all agency
expenditure ceilings. The county treasurer shall apportion or
disburse such funds for expenditures in the same manner as other ad
valorem tax collections.
    C. In the event monies apportioned to the Ad Valorem
Reimbursement Fund are insufficient to pay all claims for
reimbursement made pursuant to subsection B of this section, claims
for reimbursement for loss of revenue due to exemptions of ad
valorem taxes for new or expanded manufacturing or research and
development facilities, and claims for reimbursement for loss of
revenue due to purchases of property by the state shall be paid
first, and any remaining funds shall be distributed proportionally
among the counties making claims for reimbursement for loss of
revenue for school district and county purposes due to exemptions
granted pursuant to the provisions of Sections 8D, 8E and 8F of
Article X of the Oklahoma Constitution, if applicable, according to
the amount of the claim made by each county. If any funds remain
after paying all claims for reimbursement for loss of revenue due to
exemptions of ad valorem taxation for new or expanded manufacturing
or research and development facilities and for reimbursement for
loss of revenue for school district and county purposes due to
exemptions granted pursuant to the provisions of Sections 8D, 8E and
8F of Article X of the Oklahoma Constitution, the remaining funds
shall be distributed proportionally among the counties making claims
for reimbursement for the exemptions granted pursuant to the
provisions of Section 2890 of Title 68 of the Oklahoma Statutes and
for the loss of revenue for decreased valuation and assessment for
buffer strips pursuant to Section 2817.2 of Title 68 of the Oklahoma
Statutes.
    SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. H. B. NO. 3972  Page 4
   Passed the House of Representatives the 6th day of May, 2026.
                                    Presiding Officer of the House
                                                of Representatives
   Passed the Senate the 27th day of April, 2026.
                                   Presiding Officer of the Senate
                       OFFICE OF THE GOVERNOR
   Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
   Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
                                   _________________________________
                                   Governor of the State of Oklahoma
                  OFFICE OF THE SECRETARY OF STATE
   Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
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