Bill Text For HB1990 - Committee Substitute

 1|                          STATE OF OKLAHOMA                            |
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 2|             1st Session of the 58th Legislature (2021)                |
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 3|COMMITTEE SUBSTITUTE                                                   |
  |FOR ENGROSSED                                                          |
 4|HOUSE BILL 1990                      By: Caldwell (Trey), Mize, Pae    |
  |                                         and Fugate of the House       |
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  |                                         Montgomery of the Senate      |
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 9|                        COMMITTEE SUBSTITUTE                           |
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10|       [ public finance - Ad Valorem Reimbursement Fund -              |
  |       veteran homestead exemptions -effective date ]                  |
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13|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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14|    SECTION 1.     AMENDATORY     62 O.S. 2011, Section 193, as        |
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15|amended by Section 457, Chapter 304, O.S.L. 2012 (62 O.S. Supp.        |
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16|2020, Section 193), is amended to read as follows:                     |
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17|    Section 193.  A.  There is hereby created in the State Treasury    |
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18|a revolving fund for the Oklahoma Tax Commission to be designated      |
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19|the "Ad Valorem Reimbursement Fund".  The fund shall be a continuing   |
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20|fund, not subject to fiscal year limitations.  Monies apportioned to   |
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21|this fund shall be expended:                                           |
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22|    1.  To reimburse counties of this state for loss of revenue due    |
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23|to exemptions of ad valorem taxes for new or expanded manufacturing    |
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24|or research and development facilities;                                |
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   Req. No. 2010                                                   Page 1
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 1|    2.  Beginning calendar year 2022 and all subsequent years, to      |
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 2|reimburse qualified counties of this state for loss of revenue due     |
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 3|to exemptions granted to veterans and their surviving spouses          |
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 4|pursuant to the provisions of Sections 8D, 8E and 8F of Article X of   |
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 5|the Oklahoma Constitution.  A county is qualified for reimbursement    |
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 6|if the number of exemptions granted to veterans and surviving          |
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 7|spouses for the most recently concluded calendar year exceeds          |
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 8|eight-tenths of one percent (0.8%) of the total county population      |
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 9|according to the latest Federal Decennial Census or most recent        |
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10|annual population estimate, whichever is most recent.  The             |
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11|reimbursement provided in this paragraph shall amount to twenty-five   |
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12|percent (25%) of the loss of revenue claimed by the qualified          |
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13|county;                                                                |
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14|    3.  To reimburse counties of this state for loss of revenue for    |
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15|school district and county purposes due to exemptions granted          |
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16|pursuant to the provisions of Section 2890 of Title 68 of the          |
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17|Oklahoma Statutes; and                                                 |
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18|    3. 4.  To reimburse counties of this state for loss of revenue     |
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19|due to decreased valuation and assessment for buffer strips pursuant   |
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20|to Section 2817.2 of Title 68 of the Oklahoma Statutes.                |
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21|    Provided that it shall be the duty of the Tax Commission to        |
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22|assess the valuation of all property for new or expanded               |
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23|manufacturing or research and development facilities which are         |
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24|exempt from ad valorem taxes.                                          |
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   Req. No. 2010                                                   Page 2
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 1|    Monies apportioned to this fund also may be transferred to other   |
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 2|state funds or otherwise expended as directed by the Legislature by    |
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 3|law.                                                                   |
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 4|    B.  The county commissioners of each county seeking                |
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 5|reimbursement for lost revenue from the Ad Valorem Reimbursement       |
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 6|Fund shall make claims for reimbursement on forms prescribed by the    |
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 7|Tax Commission prior to April 30 of each year.  Claims for             |
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 8|reimbursement for loss of revenue due to exemptions of ad valorem      |
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 9|taxes for new or expanded manufacturing or research and development    |
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10|facilities shall be made separately from claims for reimbursement      |
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11|for loss of revenue for school district and county purposes due to     |
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12|exemptions granted pursuant to the provisions of Section 2890 of       |
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13|Title 68 of the Oklahoma Statutes and separately from claims for       |
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14|reimbursement for loss of revenue for decreased valuation and          |
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15|assessment of buffer strips based upon the type of exemptions          |
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16|authorized pursuant to subsection A of this section.  Provided, the    |
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17|assessed valuation of a school district as stated in the claim for     |
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18|reimbursement shall be the same as reported to the State Department    |
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19|of Education on the Estimate of Need and shall include the total       |
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20|valuation of property exempt from taxation pursuant to Section 2902    |
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21|of Title 68 of the Oklahoma Statutes.  The claims shall be either      |
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22|approved or disapproved in whole or in part by the Tax Commission by   |
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23|June 15 of each year.  A claim for reimbursement for loss of revenue   |
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24|due to an exemption of ad valorem taxes for a new or expanded          |
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   Req. No. 2010                                                   Page 3
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 1|manufacturing or research and development facility shall be            |
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 2|disapproved if a county or school district has received any payment    |
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 3|in lieu of ad valorem taxes from such facility, to the extent of the   |
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 4|amount of such reimbursement.  If the Tax Commission determines that   |
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 5|an exemption has been erroneously or unlawfully granted, it shall      |
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 6|notify the appropriate county assessor who shall immediately value     |
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 7|and assess the property and place it on the rolls for ad valorem       |
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 8|taxation.  Disbursements from the fund shall be made on warrants       |
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 9|issued by the State Treasurer against claims filed by the Tax          |
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10|Commission with the Office of Management and Enterprise Services for   |
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11|payment.  Such disbursements shall be exempt from all agency           |
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12|expenditure ceilings.  The county treasurer shall apportion or         |
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13|disburse such funds for expenditures in the same manner as other ad    |
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14|valorem tax collections.                                               |
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15|    C.  In the event monies apportioned to the Ad Valorem              |
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16|Reimbursement Fund are insufficient to pay all claims for              |
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17|reimbursement made pursuant to subsection B of this section, claims    |
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18|for reimbursement for loss of revenue due to exemptions of ad          |
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19|valorem taxes for new or expanded manufacturing or research and        |
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20|development facilities shall be paid first, and any remaining funds    |
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21|shall be distributed proportionally among the counties making claims   |
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22|for reimbursement for loss of revenue for school district and county   |
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23|purposes due to exemptions granted pursuant to the provisions of       |
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24|Section 2890 of Title 68 of the Oklahoma Statutes Sections 8D, 8E      |
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   Req. No. 2010                                                   Page 4
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 1|and 8F of Article X of the Oklahoma Constitution, if applicable,       |
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 2|according to the amount of the claim made by each county.  If any      |
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 3|funds remain after paying all claims for reimbursement for loss of     |
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 4|revenue due to exemptions of ad valorem taxation for new or expanded   |
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 5|manufacturing or research and development facilities and for           |
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 6|reimbursement for loss of revenue for school district and county       |
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 7|purposes due to exemptions granted pursuant to the provisions of       |
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 8|Section 2890 of Title 68 of the Oklahoma Statutes Sections 8D, 8E      |
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 9|and 8F of Article X of the Oklahoma Constitution, the remaining        |
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10|funds shall be distributed proportionally among the counties making    |
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11|claims for reimbursement for the exemptions granted pursuant to the    |
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12|provisions of Section 2890 of Title 68 of the Oklahoma Statutes and    |
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13|for the loss of revenue for decreased valuation and assessment for     |
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14|buffer strips pursuant to Section 2817.2 of Title 68 of the Oklahoma   |
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15|Statutes.                                                              |
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16|    SECTION 2.  This act shall become effective November 1, 2021.      |
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18|    58-1-2010      QD        3/30/2021 3:42:53 PM                      |
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   Req. No. 2010                                                   Page 5
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