Constitutional amendment; providing credit for owners of property that qualify for certain limitation on the growth of fair cash value.

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ENGROSSED SENATE
BILL NO. 1114 By: Woods of the Senate

and

Kannady of the House

An Act relating to ad valorem tax; directing the
Secretary of State to refer to the people for their
approval or rejection a proposed amendment to Section
8C of Article X of the Oklahoma Constitution;
providing credit for owners of property that qualify
for certain limitation on the growth of fair cash
value; stipulating credit amount; prescribing
procedures to claim credit; requiring assessor to
deduct credit amount from certain ad valorem tax
liability; prohibiting refundability of credit;
updating references; providing ballot title; and
directing filing.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. The Secretary of State shall refer to the people for
their approval or rejection, as and in the manner provided by law,
the following proposed amendment to Section 8C of Article X of the
Oklahoma Constitution to read as follows:
Section 8C. A. Despite any provision to the contrary,
beginning January 1, 2005, the fair cash value, as determined by
law, on each homestead of an individual head of household whose
gross household income from all sources for the preceding calendar
year did not exceed an amount as provided in subsection B of this

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section, and which individual head of household is sixty-five (65)
years of age or older, shall not exceed the fair cash value placed
upon the property during the first year in which the individual head
of household was sixty-five (65) years of age or older and had gross
household income from all sources which did not exceed an amount as
provided in subsection B of this section. Subject to the
limitations of this section, the fair cash value shall not exceed
such amount as long as the individual head of household who is
sixty-five (65) years of age or older owns and occupies the property
and as long as the gross household income from all sources does not
exceed an amount as provided in subsection B of this section. If
any improvements are made to the property, the fair cash value of
the improvements shall be assessed in accordance with law by the
county assessor and added to the assessed value of the property.
Once the fair cash value of the improvements has been added to the
fair cash value of the property, the total fair cash value shall not
exceed the revised valuation of the property so long as the
individual head of household who is sixty-five (65) years of age or
older owns and occupies the property and so long as the gross
household income from all sources does not exceed an amount as
provided in subsection B of this section. For any individual head
of household who is sixty-five (65) years of age or older prior to
January 1, 1997, and has gross household income from all sources of
Twenty-five Thousand Dollars ($25,000.00) or less in calendar year

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1996, the fair cash value of the real property shall be the fair
cash value placed upon the property on January 1, 1997. If the
individual head of household ceases to own and occupy the property
or if the gross household income from all sources exceeds an amount
as provided in subsection B of this section, the fair cash value of
the property shall be determined as if the provisions of Section 8
of Article X this article of the Oklahoma Constitution of the State
of Oklahoma or any other provisions relating to a limitation on the
fair cash value of locally assessed real property had been in effect
during the time the property was valued pursuant to the provisions
of this section.
B. The income threshold for the gross household income from all
sources for an individual head of household under subsection A of
this section shall not exceed the amount determined by the United
States Department of Housing and Urban Development to be the
estimated median income for the preceding year for the county or
metropolitan statistical area which includes such county. The
Oklahoma Tax Commission shall provide such information to each
county assessor each year as soon as such information becomes
available.
C. For tax years 2026 and subsequent tax years, there shall be
allowed a credit against the ad valorem tax levied pursuant to this
article of the Oklahoma Constitution for owners of a homestead that
qualify for the limitation on the increase of fair cash value

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pursuant to subsection A of this section in an amount equal to the
difference between the ad valorem tax liability of the property
owner for the homestead property of the prior tax year and the ad
valorem tax liability for the homestead property in the tax year in
which the property owner first qualified for the limitation on the
increase of fair cash value pursuant to subsection A of this
section. Provided, if the ad valorem tax liability of the property
owner for the homestead property in the tax year in which the
property owner first qualified for the limitation on the increase of
fair cash value pursuant to subsection A of this section exceeds the
ad valorem tax liability of the property for the homestead property
in the prior tax year, there shall be no credit allowed.
D. The credit authorized pursuant to subsection C of this
section shall be claimed on a form prescribed by the county assessor
for the county in which the homestead is located no later than
October 1 of each tax year. The county assessor shall deduct
qualifying claims for credit from the tax liability of the property
owner.
E. The credit claimed pursuant to subsection C of this section
shall not be used to reduce the ad valorem tax liability of the
property owner to less than zero (0).
SECTION 2. The Ballot Title for the proposed Constitutional
amendment as set forth in SECTION 1 of this act shall be in the
following form:

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BALLOT TITLE
Legislative Referendum No. ____ State Question No. ____
THE GIST OF THE PROPOSITION IS AS FOLLOWS:
This measure amends Section 8C of Article 10 of the Oklahoma
Constitution. The measure provides a property tax credit on the
homestead of an individual head of household who is at least
sixty-five years of age and qualifies for the limitation on the
growth of fair cash value. The property tax credit would be
equal to the difference between the property owner’s current
property tax liability for the homestead and the property tax
liability of the homestead the year in which the homestead first
qualified for the limitation on fair cash value. This ensures
that the property tax liability does not increase on the
homestead so long as the homestead qualifies.
SHALL THE PROPOSAL BE APPROVED?
FOR THE PROPOSAL — YES _____________
AGAINST THE PROPOSAL — NO _____________
SECTION 3. The President Pro Tempore of the Senate shall,
immediately after the passage of this act, prepare and file one copy
thereof, including the Ballot Title set forth in SECTION 2 hereof,
with the Secretary of State and one copy with the Attorney General.

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Passed the Senate the 25th day of March, 2025.

Presiding Officer of the Senate

Passed the House of Representatives the ____ day of __________,
2025.

Presiding Officer of the House
of Representatives