Ad valorem tax collections; creating the Centrally Assessed Ad Valorem Volatility Reimbursement Fund; prescribing qualifications and reimbursement amount. Effective date. Emergency.

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SENATE FLOOR VERSION
March 5, 2025

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 678 By: Pederson of the Senate

and

Boles of the House

[ ad valorem tax collections - Reimbursement Fund -
expenditures - qualifications - procedures -
reduction - appropriation - codification - effective
date -
emergency ]

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 193a of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the Oklahoma Tax Commission to be designated the “Centrally
Assessed Ad Valorem Volatility Reimbursement Fund”. The fund shall
be a continuing fund, not subject to fiscal year limitations, and
shall consist of all monies appropriated to the Tax Commission that
are designated for deposit in the fund. Monies appropriated to this
fund shall be expended to reimburse counties for school district and

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county purposes for loss of revenue due to decreased valuation and
assessment of centrally assessed property.
B. To qualify for reimbursement pursuant to subsection A of
this section, the county shall have at least a fifty-percent
reduction in net assessed value from centrally assessed properties
from the previous year with a school district that would realize at
least a ten-percent reduction in ad valorem tax revenues from the
previous year.
C. Counties qualifying for reimbursement provided by this
section shall receive an amount equal to twenty-five percent (25%)
of the reduction of collections for the first two (2) years after
the reduction in valuation; provided, that the reimbursement in the
second year shall be twenty-five percent (25%) of the reduction of
ad valorem collections in the second year compared to the immediate
year before the reduction in valuation that triggered the
qualification for reimbursement.
D. Reimbursement funds shall first be used to supplement the
reduction in funds to school districts due to a decrease in
valuation of centrally assessed properties. Any funds remaining
after supplementing the reduction in funds for school districts
shall be used to supplement the reduction in funds for counties.
E. The county commissioners of each county seeking
reimbursement for lost revenue from the Centrally Assessed Ad
Valorem Volatility Reimbursement Fund shall make claims for

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reimbursement on forms prescribed by the Tax Commission no later
than December 1 following the reduction in valuation that triggered
the qualification for reimbursement.
F. Total claims approved for reimbursement shall not exceed the
balance of the fund. If total claims exceed the balance of the
fund, each claim shall be reduced by a percentage which establishes
the proportionate share of total claims for the tax year so that the
total claims authorized by this section do not exceed the balance of
the fund.
SECTION 2. There is hereby appropriated to the Oklahoma Tax
Commission for deposit in the Centrally Assessed Ad Valorem
Volatility Reimbursement Fund, from any monies not otherwise
appropriated from the General Revenue Fund of the State Treasury for
the fiscal year ending June 30, 2024, the sum of Two Million Dollars
($2,000,000.00).
SECTION 3. This act shall become effective July 1, 2025.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
March 5, 2025 - DO PASS AS AMENDED