Taxation; creating the Joint Interim Committee on the Elimination of Ad Valorem Taxes; prescribing duties and powers; requiring submission of report. Effective date.

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SENATE FLOOR VERSION
February 17, 2025
AS AMENDED

SENATE BILL NO. 1121 By: Deevers, Jett, and Hamilton

[ taxation - committee - information and assistance -
report - noncodification - effective date -
conditional effective date ]

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
A. Upon the effective date of this act, there is hereby created
the Joint Interim Committee on the Elimination of Ad Valorem Taxes.
The committee shall be composed of ten (10) members as follows:
1. Five members of the Senate designated by the President Pro
Tempore of the Senate; and
2. Five members of the House of Representatives designated by
the Speaker of the House of Representatives.
The President Pro Tempore of the Senate and the Speaker of the
House of Representatives shall each designate a co-chair from the
members of the committee.
B. The committee shall convene upon the joint call of the
chairs.

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C. The committee shall conduct a comprehensive study of
alternative methods of taxation to replace local tax revenue from
the elimination of ad valorem tax pursuant to the passage of the
state question proposed by Enrolled Senate Joint Resolution No. 12
of the 1st Session of the 60th Oklahoma Legislature.
D. For each alternative method of taxation considered, the
committee shall:
1. Consider whether political subdivisions that currently
impose ad valorem taxes would have the authority to impose the
proposed alternative tax;
2. Determine the average tax rate for the proposed alternative
tax imposed by each type of political subdivision that would be
necessary to generate the same amount of tax revenue as the amount
of tax revenue lost as a result of the elimination of ad valorem
taxes;
3. Determine, if appropriate, the effect that broadening the
application of the proposed alternative tax at the local level would
have on the tax rates identified pursuant to paragraph 2 of this
subsection;
4. Identify whether tax revenue generated by the alternative
method of taxation would require redistribution to offset
disparities in available local tax revenue as a result of the
elimination of ad valorem taxes and, if so, evaluate the different
mechanisms of redistribution available; and

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5. Identify and examine any other issue required to be
addressed to implement the elimination of ad valorem taxes.
E. Upon a request of the committee, a state agency or political
subdivision of this state shall provide information for and
assistance in conducting the study under this section.
F. Not later than July 1, 2028, the committee shall prepare and
electronically submit to the Legislature a written report containing
the results of the study and any recommendations for legislative or
other action.
G. The committee created pursuant to this act shall be
abolished January 1, 2030.
SECTION 2. This act shall become effective November 1, 2025.
SECTION 3. The provisions of this act shall not become
effective as law unless Enrolled Senate Joint Resolution No. 12 of
the 1st Session of the 60th Oklahoma Legislature becomes effective
as law.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
February 17, 2025 - DO PASS AS AMENDED