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SENATE FLOOR VERSION
February 23, 2026
AS AMENDED
SENATE BILL NO. 1842 By: Dossett
[ ad valorem tax - payment date - prepayment -
notification - notice - refund of overpayments -
codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2913, is
amended to read as follows:
Section 2913. A. All taxes levied upon an ad valorem basis for
each fiscal year shall become due and payable on the first day of
November. Except for mortgage servicers and taxes prepaid using the
prepayment option provided for in Section 2 of this act, the
exclusive method for payment shall be as follows:
1. Unless one-half (1/2) or more of the taxes so levied has
been paid before the first day of January, the entire tax levy for
such fiscal year shall become delinquent on that date.
2. If the first half or more of the taxes levied upon an ad
valorem basis for any such fiscal year has been paid before the
first day of January, the remainder shall be paid before the first
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day of April thereafter and if not paid shall become delinquent on
that date.
In no event may payment be made in more than two installments
subject to the provisions of the payment schedule specified in this
subsection.
B. Mortgage servicers, as defined in 24 C.F.R., part 3500.17,
shall pay all accounts which they are servicing in one annual
payment before the first day of January or the entire tax levy for
such fiscal year shall become delinquent on that date.
C. If the total tax owed is Twenty-five Dollars ($25.00) or
less, then the total amount must be paid before January 1. If the
total tax is not paid before January 1, the unpaid balance owing
shall become delinquent on the first day of January and shall be
subject to delinquent charges as provided for in this section.
D. All delinquent taxes shall bear interest at the rate of one
and one-half percent (1 1/2%) per month or major fraction thereof
until paid. In no event shall such interest exceed a sum equal to
the unpaid principal amount of tax, and when such interest has
accumulated to a sum equivalent to one hundred percent (100%) of the
unpaid tax the further accumulation of interest shall cease.
E. In addition to any other penalties prescribed by law,
delinquent taxes shall be subject to a late payment penalty of five
percent (5%) per month or a major fraction thereof until paid. The
penalty assessed herein shall only apply to delinquent taxes that
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are due on property located in a dependent school district in a
county with a population of less than seventy-five thousand (75,000)
according to the most recent Federal Decennial Census and held by a
nonindividual taxpayer when the tax has been paid delinquent for two
(2) or more separate and consecutive years and the fair cash value
of the property exceeds Five Hundred Thousand Dollars ($500,000.00).
F. The county treasurer shall stamp the date of receipt on each
letter received containing funds for payment of taxes and no
interest shall be added or charged after the receipt of such letter
or the amount due. It shall be the duty of every person subject to
taxation according to the law to attend the county treasurer’s
office and pay his or her taxes. If any person neglects to pay his
or her taxes until after they have become delinquent, the county
treasurer is directed and required to collect the delinquent tax as
provided for by law. The first installment of taxes payable
pursuant to the provisions of this section shall not become
delinquent until thirty (30) days after the tax rolls have become
completed and filed by the county assessor with the county
treasurer.
G. The county treasurer may waive penalties or interest in any
case where it is shown to the county treasurer that such penalties
or interest were incurred through no fault of the taxpayer. Each
waiver of penalties or interest shall be audited by the Office of
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the State Auditor and Inspector each year during the annual audit of
the county offices.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2913.1 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. The county treasurer may allow taxpayers owning taxable
property within the county the option to prepay taxes levied upon an
ad valorem basis using the prepayment option provided for by this
section. The prepayment option shall allow taxpayers to make
installment payments to pay toward taxes levied upon an ad valorem
basis for the following calendar year. A prepayment option is not
allowed for:
1. Accounts with delinquent taxes;
2. Accounts with an ongoing valuation protest from the previous
tax year;
3. Taxes paid through an escrow account; or
4. Public service corporations.
B. A taxpayer electing the prepayment option, or a taxpayer
electing to opt out of using the prepayment option after electing
the prepayment option, shall notify the county treasurer in writing
no later than January 15 of the calendar year for which the
prepayments may be made and no earlier than December 1 of the
preceding year. If the county treasurer does not receive written
notification, the taxpayer must pay the taxes in the manner as
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prescribed in subsection A of Section 2913 of Title 68 of the
Oklahoma Statutes.
C. The prepayment option shall consist of twelve installment
payments. Each installment payment shall be based on an estimated
property tax obligation which shall be computed by the taxpayer
using the total property tax amount from the previous calendar year,
adjusted for any anticipated changes in property value. The
installment payments shall be divided equally, rounded to the
nearest whole dollar, from the estimated property tax obligation and
shall be paid to the county treasurer on or before the fifteenth day
of each month, except for December, in which case such shall be paid
on or before the thirty-first day of the month.
D. Before the first day of November, a sum of all installment
payment amounts made in that calendar year by each taxpayer shall be
calculated by the county treasurer. This sum shall be reported on
the taxpayer statement prescribed by subsection B of Section 2915 of
Title 68 of the Oklahoma Statutes.
If a taxpayer electing the prepayment option does not timely
make each installment payment, the county treasurer may refuse to
accept all other installment payments. If the county treasurer
refuses to accept other installment payments, the remaining balance
is due in accordance with Section 2913 of Title 68 of the Oklahoma
Statutes.
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E. The taxes paid under the prepayment option shall be
considered a credit against the total tax amount due for the current
calendar year. The taxes paid under the prepayment option must be
deposited by the county treasurer in a dedicated trust and agency
fund to be known as the “Property Tax Prepayment Fund”. The fund
shall receive interest and the interest shall be retained by the
county treasurer and placed into a separate existing cash fund known
as the “County Treasurer’s Mortgage Certification Fee Account” to
offset the administrative expenses of the prepayment option. Once
the final installment payment is made, and no later than the last
day of December, the installment payments must be credited to the
accounts of the property taxing entities in the county in the same
proportion that millage was imposed by such entities in the previous
tax year with the necessary adjustments made to reflect current tax
year millage impositions when property taxes for the current year
are paid.
F. If the amount of taxes paid using the prepayment option
results in an overpayment of property tax, the overpayment shall be
refunded to the taxpayer within sixty (60) days after the date of
the final installment payment. A taxpayer may request a refund
equal to the sum of all installment payments for the current
calendar year. The refund shall be paid to the taxpayer within ten
(10) business days.
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G. The prepayment of estimated property tax as provided in this
section and the credit allowed from these prepayments in no way
alters the due date, penalty schedule, or enforced collection of
property taxes as provided by law.
SECTION 3. This act shall become effective November 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
February 23, 2026 - DO PASS AS AMENDED