Bill Text For HB1062 - Senate Floor Version

 1|                        SENATE FLOOR VERSION                           |
  |                           March 23, 2021                              |
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 3|COMMITTEE SUBSTITUTE                                                   |
  |FOR ENGROSSED                                                          |
 4|HOUSE BILL NO. 1062                  By: Boles, Davis, Lowe (Dick)     |
  |                                         and Bell of the House         |
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  |                                         Garvin of the Senate          |
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 9|       An Act relating to revenue and taxation; amending 68            |
  |       O.S. 2011, Section 2888, as last amended by Section             |
10|       6, Chapter 329, O.S.L. 2014 (68 O.S. Supp. 2020,                |
  |       Section 2888), which relates to homestead exemption             |
11|       for purposes of ad valorem taxation; providing for              |
  |       treatment of certain improvements located on real               |
12|       property with title held by certain government                  |
  |       entity; providing for homestead exemption as                    |
13|       authorized by Sections 8E and 8F of Article X of the            |
  |       Oklahoma Constitution; prohibiting denial of                    |
14|       homestead exemption on certain basis; and providing             |
  |       an effective date.                                              |
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17|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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18|    SECTION 1.     AMENDATORY     68 O.S. 2011, Section 2888, as       |
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19|last amended by Section 6, Chapter 329, O.S.L. 2014 (68 O.S. Supp.     |
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20|2020, Section 2888), is amended to read as follows:                    |
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21|    Section 2888.  A.  1.  The term "homestead", as used in the        |
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22|provisions of the Ad Valorem Tax Code governing homestead              |
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23|exemptions, shall mean and include the actual residence of a natural   |
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24|person who is a citizen of the State of Oklahoma this state,           |
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arsid10242323 SENATE FLOOR VERSION - HB1062 SFLR                   Page 1
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 1|provided the record actual ownership of such residence be vested in    |
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 2|such natural person residing and domiciled thereon.  Any single        |
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 3|person of legal age, married couple and their minor child or           |
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 4|children, or the minor child or children of a deceased person,         |
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 5|whether residing together or separated, or surviving spouse shall be   |
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 6|allowed under Section 2801 et seq. of this title only one homestead    |
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 7|exemption in this state.  No person or the family of such person       |
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 8|shall be required to be domiciled thereon if such person is in the     |
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 9|armed service of the United States in time of war or during a state    |
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10|of national emergency as declared by the Congress or the President     |
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11|of the United States, and such person shall not be required to be      |
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12|domiciled thereon in order to assert or claim the exemption provided   |
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13|in Section 2889 of this title, and such exemption may be claimed by    |
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14|any agent of, or member of the family of, such person.  The            |
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15|surviving spouse and/or minor children of a deceased person shall be   |
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16|considered record owners of the homestead where the title of record    |
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17|in the office of the county clerk on January 1 is in the name of the   |
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18|deceased, but in all other cases the deed or other evidence of         |
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19|ownership must be of record in the office of the county clerk on       |
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20|January 1 in order for any person to be qualified as the record        |
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21|owner.  However, a natural person actually owning, residing and        |
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22|domiciled in the residence on January 1 shall be deemed to be the      |
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23|record owner of the residence on January 1, within the meaning of      |
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24|this section, if the deed or other evidence of ownership of such       |
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arsid10242323 SENATE FLOOR VERSION - HB1062 SFLR                   Page 2
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 1|person, executed on or before January 1, be of record in the office    |
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 2|of the county clerk on or before February 1 immediately following.     |
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 3|Despite any provision to the contrary in this section, if a parent     |
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 4|or parents residing and domiciled in the residence own the residence   |
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 5|jointly with one or more of their children, whether residing           |
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 6|together or separated, and where the record joint ownership of the     |
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 7|property is recorded in the office of the county clerk in accordance   |
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 8|with the provisions of this section, the parent or parents residing    |
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 9|and domiciled in the residence shall be entitled to the entire         |
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10|homestead exemption.  A rural homestead shall not include more than    |
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11|one hundred sixty (160) acres of land and the improvements thereon.    |
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12|An urban homestead shall not include any land except the lot or        |
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13|lots, or the unplatted tract, upon which are located the dwelling,     |
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14|garage, barn and/or other outbuildings necessary or convenient for     |
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15|family use.                                                            |
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16|    2.  Despite any provision to the contrary in this section, the     |
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17|person actually owning, residing and domiciled in the residence as     |
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18|of the date of a tornado shall be deemed to be the record owner of     |
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19|the residence on such date, within the meaning of this section, if     |
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20|the deed or other evidence of ownership of such person, executed on    |
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21|or before such date, be of record in the office of the county clerk    |
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22|on or before such date.  However, the provisions of this paragraph     |
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23|shall only apply to any person who is eligible to claim the income     |
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24|tax credit pursuant to Section 2357.29A of this title with respect     |
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 1|to a tornado or to any person whose primary residence was damaged or   |
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 2|destroyed in a tornado and who purchased or built a new primary        |
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 3|residence at a location within this state other than the location of   |
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 4|the damaged or destroyed residence.  For the purposes of this          |
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 5|section, "tornado" means a tornado which occurred in calendar year     |
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 6|2013 or any subsequent tornado for which a Presidential Major          |
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 7|Disaster Declaration was issued.                                       |
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 8|    B.  The term "rural homestead" as used herein shall mean and       |
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 9|include any homestead located outside a city or town or outside any    |
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10|platted subdivision or addition.                                       |
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11|    C.  The term "urban homestead" as used herein shall mean and       |
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12|include any homestead located within any city or town whether          |
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13|incorporated or unincorporated, or located within a platted            |
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14|subdivision or addition, whether such subdivision or addition be a     |
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15|part of a city or town.  In no case shall an urban homestead exceed    |
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16|in area one (1) acre.                                                  |
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17|    D.  For purposes of the provisions of Section 8E and Section 8F    |
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18|of Article X of the Oklahoma Constitution, if a disabled veteran,      |
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19|the surviving spouse of a disabled veteran or the surviving spouse     |
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20|of a person who died while in the line of duty occupies improvements   |
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21|which are affixed to the real property and record title to such real   |
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22|property is held by a city or town or an entity formed pursuant to     |
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23|the charter provisions or ordinances of a city or town or formed       |
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24|under other provisions of law for the benefit of such city or town,    |
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arsid10242323 SENATE FLOOR VERSION - HB1062 SFLR                   Page 4
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 1|the improvements shall be considered to be the homestead of such       |
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 2|disabled veteran or the surviving spouse of such disabled veteran      |
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 3|for all purposes related to the homestead exemption authorized by      |
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 4|the provisions of the Ad Valorem Tax Code and the homestead            |
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 5|exemption shall not be denied on the basis that title to such          |
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 6|affixed improvements is held by a disabled veteran or surviving        |
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 7|spouse or an entity formed by them than the city or town which holds   |
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 8|title to the real property consisting of the land to which such        |
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 9|improvements are affixed.                                              |
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10|    SECTION 2.  This act shall become effective January 1, 2022.       |
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11|COMMITTEE REPORT BY: COMMITTEE ON FINANCE                              |
  |March 23, 2021 - DO PASS AS AMENDED                                    |
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