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Oklahoma Legislature· SB 1087Second Reading referred to Revenue and Taxation

An act relating to ad valorem tax, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                            STATE OF OKLAHOMA

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2                 1st Session of the 60th Legislature (2025)

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3 SENATE BILL 1087           By: Hines
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6                            AS INTRODUCED

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7   An Act relating to ad valorem tax; defining term;

7   providing credit against ad valorem tax for certain

8   expenses or reduction in fair cash value resulting

8   from a lack of enforcement of laws and maintenance of

9   certain nuisance; prescribing amount of credit;

9   requiring county treasurer to withhold certain

10  distribution of funds; prohibiting credit for certain

10  act or omission; requiring local government to bear

11  the burden of proof in challenge to claim;

11  prohibiting requirement to submit claim to receive

12  just compensation; authorizing the owner to claim

12  subsequent credit under certain circumstance;

13  limiting credit claimed in certain period; providing

13  for carry-forward of credit; requiring the Oklahoma

14  Tax Commission to administer certain provisions;

14  providing for codification; and providing an

15  effective date.

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18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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19  SECTION 1.      NEW LAW  A new section of law to be codified

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20 in the Oklahoma Statutes as Section 2952 of Title 68, unless there
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21 is created a duplication in numbering, reads as follows:
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22  A. As used in this section, "owner" means the holder of the

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23 subject real property.
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    Req. No. 976                                              Page 1
1   B. There shall be allowed a credit against the ad valorem tax

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2 liability of an owner, pursuant to Section 2915 of Title 68 of the
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3 Oklahoma Statutes, if the government of a county, city, or
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4 municipality follows a policy, pattern, or practice of declining to
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5 enforce existing laws, ordinances, or other regulations against
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6 illegal camping, obstruction of public thoroughfares, loitering,
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7 panhandling, public urination or defecation, or public consumption
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8 of alcoholic beverages or illegal substances, or if the local
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9 government maintains a public nuisance involving camping, loitering,
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10 and pollution, and:
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11  1. The fair cash value of the real property of the owner is

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12 reduced by this policy, pattern, practice, or public nuisance; or
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13  2. The owner incurs expenses to mitigate the effects on the

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14 private real property of this policy, pattern, practice, or public
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15 nuisance.
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16  C. The amount of credit allowed pursuant to subsection B of

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17 this section shall be, at the election of the owner, equal to
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18 either:
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19  1. The reduction in fair cash value of the real property

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20 resulting from the policy, pattern, practice, or public nuisance of
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21 the local government; or
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22  2. The expenses incurred by the owner that were reasonably

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23 necessary to mitigate the effects on the real property of the
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24 policy, pattern, practice, or public nuisance.
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    Req. No. 976                                              Page 2
1   D. With respect to any county, city, or municipality for which

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2 a credit is claimed pursuant to this section, the county treasurer
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3 shall withhold from the distribution of monies pursuant to Section
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4 2923 of Title 68 of the Oklahoma Statutes to the affected county,
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5 city, or municipality the respective aggregate amount of credit
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6 claimed pursuant to this section.
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7   E. The credit provided for in this section shall not be allowed

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8 for expenses or reductions in fair cash value resulting from:
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9   1. Decisions by local authorities to exercise prosecutorial

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10 discretion not to prosecute alleged offenders, if the decisions are
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11 made on a case-by-case basis and the justification for each decision
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12 is published on a monthly basis by the local authority;
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13  2. An act of executive clemency;

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14  3. Acts or omissions mandated by federal law; and

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15  4. An act or omission taken pursuant to Section 683.9 of Title

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16 63 of the Oklahoma Statutes.
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17  F. For any challenge to a credit claimed pursuant to this

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18 section, the county, city, or municipality shall bear the burden of
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19 demonstrating that the actions taken are lawful or that the amount
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20 of the credit claimed is unreasonable.
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21  G. The owner shall not be required to submit any claim as a

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22 prerequisite to demanding or receiving just compensation in the form
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23 of a credit pursuant to this section.
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    Req. No. 976                                            Page 3
1   H. If the policy, pattern, or practice remains in place after

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2 the owner claims a credit pursuant to this section, the owner shall
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3 be entitled to a subsequent tax credit in a following year pursuant
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4 to the provisions of this section, unless the relevant government
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5 entity and the owner reach a settlement or the government entity
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6 ceases the policy, pattern, or practice, or abates the public
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7 nuisance.
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8   I. An owner may claim the credit provided pursuant to this

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9 section no more than once per year.
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10  J. If the amount of the credit allowed pursuant to this section

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11 exceeds the tax liability of the owner, the amount of the credit not
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12 used as an offset against the tax liability for that year may be
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13 carried forward as a credit for ten (10) subsequent years.
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14  K. The Oklahoma Tax Commission shall administer the provisions

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15 of this section, including the furnishing of forms for submission of
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16 a claim.
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17  SECTION 2. This act shall become effective November 1, 2025.

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19  60-1-976      QD  1/16/2025 3:25:23 PM

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    Req. No. 976                                               Page 4
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