An act relating to revenue and taxation, the official text

1                   STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 4103               By: Ford

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5

6                               AS INTRODUCED

7   An Act relating to revenue and taxation; amending 68

    O.S. 2021, Section 2889, which relates to homestead

8   exemption from ad valorem taxation; increasing dollar

    amount of the exemption; providing additional

9   increase to adjust for inflation every five years;

    amending 68 O.S. 2021, Section 2890, as amended by

10  Section 1, Chapter 5, 1st Extraordinary Session,

    O.S.L. 2023 (68 O.S. Supp. 2025, Section 2890), which

11  relates to additional homestead exemption; increasing

    dollar amount of the exemption; providing additional

12  increase to adjust for inflation every five years;

    and providing an effective date.

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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

17  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 2889, is

18 amended to read as follows:

19  Section 2889. Homesteads, as defined in Section 2888 of this

20 title, are hereby classified for the purpose of taxation as provided

21 in Section 22 of Article X of the Oklahoma Constitution. All

22 homesteads in this state shall be assessed for taxation the same as

23 other real property therein, except that each homestead, as defined

24 by Section 2801 et seq. of this title, shall be exempted from all

    Req. No. 14111                                               Page 1
1 forms of ad valorem taxation to the extent of One Thousand Dollars

2 ($1,000.00) Two Thousand Three Hundred Fifteen Dollars ($2,315.00)

3 of the assessed valuation. On January 1, 2032, and on January 1 of

4 each fifth year thereafter, the dollar amount specified in this

5 section shall be increased by a percentage equal to the percentage

6 change in the Consumer Price Index for the most recent five-year

7 period for which final data is available immediately preceding the

8 adjustment date.

9   SECTION 2.      AMENDATORY  68 O.S. 2021, Section 2890, as

10 amended by Section 1, Chapter 5, 1st Extraordinary Session, O.S.L.

11 2023 (68 O.S. Supp. 2025, Section 2890), is amended to read as

12 follows:

13  Section 2890. A. In addition to the amount of the homestead

14 exemption authorized and allowed in Section 2889 of this title, an

15 additional exemption is hereby granted, to the extent of One

16 Thousand Dollars ($1,000.00) Two Thousand Three Hundred Fifteen

17 Dollars ($2,315.00) of the assessed valuation on each homestead of

18 heads of households whose gross household income from all sources

19 for the preceding calendar year did not exceed Thirty Thousand

20 Dollars ($30,000.00). On January 1, 2032, and on January 1 of each

21 fifth year thereafter, the dollar amount of the exemption specified

22 in this section shall be increased by a percentage equal to the

23 percentage change in the Consumer Price Index for the most recent

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    Req. No. 14111                                                  Page 2
1 five-year period for which final data is available immediately

2 preceding the adjustment date.

3   B. The term "gross household income" as used in this section

4 means the gross amount of income of every type, regardless of the

5 source, received by all persons occupying the same household,

6 whether such income was taxable or nontaxable for federal or state

7 income tax purposes, including pensions, annuities, federal Social

8 Security, unemployment payments, public assistance payments,

9 alimony, support money, workers' compensation, loss-of-time

10 insurance payments, capital gains and any other type of income

11 received, and excluding gifts. The term "gross household income"

12 shall not include any veterans' disability compensation payments or

13 the amount of any federal stimulus or relief payments related to the

14 COVID-19 virus. The term "head of household" as used in this

15 section means a person who as owner or joint owner maintains a home

16 and furnishes support for the home, furnishings, and other material

17 necessities.

18  C. The application for the additional homestead exemption shall

19 be made each year on or before March 15 or within thirty (30) days

20 from and after receipt by the taxpayer of notice of valuation

21 increase, whichever is later, and upon the form prescribed by the

22 Oklahoma Tax Commission, which shall require the taxpayer to certify

23 as to the amount of gross income. Upon request of the county

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    Req. No. 14111                                                 Page 3
1 assessor, the Oklahoma Tax Commission shall assist in verifying the

2 correctness of the amount of the gross income.

3   D. For persons sixty-five (65) years of age or older as of

4 March 15 and who have previously qualified for the additional

5 homestead exemption, no annual application shall be required in

6 order to receive the exemption provided by this section; however,

7 any person whose gross household income in any calendar year exceeds

8 the amount specified in this section in order to qualify for the

9 additional homestead exemption shall notify the county assessor and

10 the additional exemption shall not be allowed for the applicable

11 year. Any executor or administrator of an estate within which is

12 included a homestead property exempt pursuant to the provisions of

13 this section shall notify the county assessor of the change in

14 status of the homestead property if such property is not the

15 homestead of a person who would be eligible for the exemption

16 provided by this section.

17  SECTION 3. This act shall become effective January 1, 2027.

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19  60-2-14111      AO        12/02/25

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    Req. No. 14111                                                 Page 4