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Oklahoma Legislature· SB 1211Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee

An act relating to ad valorem tax, the official text

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1                   STATE OF OKLAHOMA

1

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

2

3 SENATE BILL 1211                By: Sacchieri
3

4

4

5

5

6                   AS INTRODUCED

6

7   An Act relating to ad valorem tax; amending 68 O.S.

7   2021, Section 2902, as last amended by Section 1,

8   Chapter 411, O.S.L. 2025 (68 O.S. Supp. 2025, Section

8   2902), which relates to the exemption from ad valorem

9   tax for manufacturing facilities; prohibiting

9   entities that employ certain individuals from

10  receiving exemption; updating statutory language; and

10  providing an effective date.

11

11

12

12

13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
13

14  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 2902, as

14

15 last amended by Section 1, Chapter 411, O.S.L. 2025 (68 O.S. Supp.
15

16 2025, Section 2902), is amended to read as follows:
16

17  Section 2902. A. Except as otherwise provided by subsection H

17

18 of Section 3658 of this title pursuant to which the exemption
18

19 authorized by this section may not be claimed, a qualifying
19

20 manufacturing concern, as defined by Section 6B of Article X of the
20

21 Oklahoma Constitution, and as further defined herein, shall be
21

22 exempt from the levy of any ad valorem taxes upon new, expanded or
22

23 acquired manufacturing facilities including facilities engaged in
23

24 research and development, for a period of five (5) years. The
24

    Req. No. 2489                                               Page 1
1 provisions of Section 6B of Article X of the Oklahoma Constitution
1

2 requiring an existing facility to have been unoccupied for a period
2

3 of twelve (12) months prior to acquisition shall be construed as a
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4 qualification for a facility to initially receive an exemption, and
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5 shall not be deemed to be a qualification for that facility to
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6 continue to receive an exemption in each of the four (4) years
6

7 following the initial year for which the exemption was granted.
7

8 Such facilities are hereby classified for the purposes of taxation
8

9 as provided in Section 22 of Article X of the Oklahoma Constitution.
9

10  B. For purposes of this section, the following definitions

10

11 shall apply:
11

12  1. "Manufacturing facilities" means facilities engaged in the

12

13 mechanical or chemical transformation of materials or substances
13

14 into new products and except as provided by paragraph 6 of
14

15 subsection C of this section shall include:
15

16  a. establishments which have received a manufacturer

16

17                 exemption permit pursuant to the provisions of Section

17

18                 1359.2 of this title,

18

19  b. facilities including repair and replacement parts,

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20                 primarily engaged in aircraft repair, building and

20

21                 rebuilding whether or not on a factory basis,

21

22  c. establishments primarily engaged in computer services

22

23                 and data processing as defined under Industrial Group

23

24                 Numbers 5112 and 5415, and U.S. Industry Number

24

    Req. No. 2489                                                 Page 2
1                  Numbers 334611 and 519130 of the NAICS North American

1

2                  Industry Classification System (NAICS) Manual, latest

2

3                  revision, and which derive at least fifty percent

3

4                  (50%) of their annual gross revenues from the sale of

4

5                  a product or service to an out-of-state buyer or

5

6                  consumer, and as defined under Industrial Group Number

6

7                  5182 of the NAICS Manual, latest revision, which

7

8                  derive at least eighty percent (80%) of their annual

8

9                  gross revenues from the sale of a product or service

9

10                 to an out-of-state buyer or consumer. Eligibility as

10

11                 a manufacturing facility pursuant to this subparagraph

11

12                 shall be established, subject to review by the

12

13                 Oklahoma Tax Commission, by annually filing an

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14                 affidavit with the Tax Commission stating that the

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15                 facility so qualifies and such other information as

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16                 required by the Tax Commission. For purposes of

16

17                 determining whether annual gross revenues are derived

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18                 from sales to out-of-state buyers, all sales to the

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19                 federal government shall be considered to be to an

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20                 out-of-state buyer,

20

21  d. facilities that the investment cost of the

21

22                 construction, acquisition or expansion is Five Hundred

22

23                 Thousand Dollars ($500,000.00) or more with respect to

23

24                 assets placed into service during calendar year 2022.

24

    Req. No. 2489                                  Page 3
1                  For subsequent calendar years, the investment required

1

2                  shall be increased annually by a percentage equal to

2

3                  the previous year's increase in the Consumer Price

3

4                  Index-All Index for All Urban Consumers ("CPI-U") and

4

5                  such adjusted amount shall be the required investment

5

6                  cost in order to qualify for the exemption authorized

6

7                  by this section. The Oklahoma Department of Commerce

7

8                  shall determine the amount of the increase, if any, on

8

9                  January 1 of each year. The Oklahoma Tax Commission

9

10                 shall publish on its website at least annually the

10

11                 adjusted dollar amount in order to qualify for the

11

12                 exemption authorized by this section and shall include

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13                 the adjusted dollar amount in any of its relevant

13

14                 forms or publications with respect to the exemption.

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15                 Provided, "investment cost" shall not include the cost

15

16                 of direct replacement, refurbishment, repair or

16

17                 maintenance of existing machinery or equipment, except

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18                 that investment cost shall include capital

18

19                 expenditures for direct replacement, refurbishment,

19

20                 repair or maintenance of existing machinery or

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21                 equipment that qualifies for depreciation and/or

21

22                 amortization pursuant to the Internal Revenue Code of

22

23                 1986, as amended, and such expenditures shall be

23

24

24

    Req. No. 2489                                              Page 4
1                  eligible as a part of an expansion that otherwise

1

2                  qualifies under this section,

2

3   e. establishments primarily engaged in distribution as

3

4                  defined under Industry Numbers 49311, 49312, 49313 and

4

5                  49319 and Industry Sector Number 42 of the NAICS

5

6                  Manual, latest revision, and which meet the following

6

7                  qualifications:

7

8                  (1) construction with an initial capital investment

8

9                  of at least Five Million Dollars ($5,000,000.00),

9

10                 (2) employment of at least one hundred (100) full-

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11                 time-equivalent employees, as certified by the

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12                 Oklahoma Employment Security Commission,

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13                 (3) payment of wages or salaries to its employees at

13

14                 a wage which equals or exceeds the average wage

14

15                 requirements in the Oklahoma Quality Jobs Program

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16                 Act for the year in which the real property was

16

17                 placed into service, and

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18                 (4) commencement of construction on or after November

18

19                 1, 2007, with construction to be completed within

19

20                 three (3) years from the date of the commencement

20

21                 of construction,

21

22  f. facilities engaged in the manufacturing, compounding,

22

23                 processing or fabrication of materials into articles

23

24                 of tangible personal property according to the special

24

    Req. No. 2489                                            Page 5
1                  order of a customer (custom order manufacturing) by

1

2                  manufacturers classified as operating in North

2

3                  American Industry Classification System (NAICS) NAICS

3

4                  Sectors 32 and 33, but does not include such custom

4

5                  order manufacturing by manufacturers classified in

5

6                  other NAICS code sectors, and

6

7   g. with respect to any entity making an application for

7

8                  the exemption authorized by this section on or after

8

9                  January 1, 2023, the establishment making application

9

10                 for exempt treatment of real or personal property

10

11                 acquired or improved beginning January 1, 2022, and

11

12                 for any calendar year thereafter, the entity shall be

12

13                 required to pay new direct jobs, as defined by Section

13

14                 3603 of this title for purposes of the Oklahoma

14

15                 Quality Jobs Program Act, an average annualized wage

15

16                 which equals or exceeds the average wage requirement

16

17                 in the Oklahoma Quality Jobs Program Act for the year

17

18                 in which the real or personal property was placed into

18

19                 service. The Oklahoma Tax Commission may request

19

20                 verification from the Oklahoma Department of Commerce

20

21                 that an establishment seeking an exemption for real or

21

22                 personal property pays an average annualized wage that

22

23                 equals or exceeds the average wage requirement in

23

24                 effect for the year in which the real or personal

24

    Req. No. 2489                                 Page 6
1                  property was placed into service. For purposes of

1

2                  this subparagraph, it shall not be necessary for the

2

3                  establishment to qualify for incentive payments

3

4                  pursuant to the Oklahoma Quality Jobs Program Act, but

4

5                  the establishment shall be subject to the wage

5

6                  requirements of the Oklahoma Quality Jobs Program Act

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7                  with respect to new direct jobs in order to qualify

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8                  for the exempt treatment authorized by this section.

8

9   Eligibility as a manufacturing facility pursuant to this

9

10 subparagraph shall be established, subject to review by the Tax
10

11 Commission, by annually filing an affidavit with the Tax Commission
11

12 stating that the facility so qualifies and containing such other
12

13 information as required by the Tax Commission.
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14  Provided, eating and drinking places, as well as other retail

14

15 establishments, shall not qualify as manufacturing facilities for
15

16 purposes of this section, nor shall centrally assessed properties.
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17  Eligibility as a manufacturing facility pursuant to this

17

18 subparagraph shall be established, subject to review by the Tax
18

19 Commission, by annually filing an application with the Tax
19

20 Commission stating that the facility so qualifies and containing
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21 such other information as required by the Tax Commission;
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22  2. "Facility" and "facilities", except as otherwise provided by

22

23 this section, means and includes the land, buildings, structures and
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24 improvements used directly and exclusively in the manufacturing
24

    Req. No. 2489                                              Page 7
1 process. Effective January 1, 2022, and for each calendar year
1

2 thereafter, for establishments which have received a manufacturer
2

3 exemption permit pursuant to the provisions of Section 1359.2 of
3

4 this title, or facilities engaged in manufacturing activities
4

5 defined or classified in the NAICS Manual under Industry Nos.
5

6 Numbers 311111 through 339999, inclusive, but for no other
6

7 establishments, facility and facilities means and includes the land,
7

8 buildings, structures, improvements, machinery, fixtures, equipment
8

9 and other personal property used directly and exclusively in the
9

10 manufacturing process; and
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11  3. "Research and development" means activities directly related

11

12 to and conducted for the purpose of discovering, enhancing,
12

13 increasing or improving future or existing products or processes or
13

14 productivity.
14

15  C. The following provisions shall apply:

15

16  1. A manufacturing concern shall be entitled to the exemption

16

17 herein provided for each new manufacturing facility constructed,
17

18 each existing manufacturing facility acquired and the expansion of
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19 existing manufacturing facilities on the same site, as such terms
19

20 are defined by Section 6B of Article X of the Oklahoma Constitution
20

21 and by this section;
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22  2. No manufacturing concern shall receive more than one five-

22

23 year exemption for any one manufacturing facility unless the
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24 expansion which qualifies the manufacturing facility for an
24

    Req. No. 2489                                               Page 8
1 additional five-year exemption meets the requirements of paragraph 4
1

2 of this subsection and the employment level established for any
2

3 previous exemption is maintained;
3

4      3. Any exemption as to the expansion of an existing

4

5 manufacturing facility shall be limited to the increase in ad
5

6 valorem taxes directly attributable to the expansion;
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7      4. All initial applications for any exemption for a new,

7

8 acquired or expanded manufacturing facility shall be granted only
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9 if:
9

10     a. there is a net increase in annualized base payroll

10

11                 over the initial payroll of at least Two Hundred Fifty

11

12                 Thousand Dollars ($250,000.00) if the facility is

12

13                 located in a county with a population of fewer than

13

14                 seventy-five thousand (75,000), according to the most

14

15                 recent Federal Decennial Census, while maintaining or

15

16                 increasing base payroll in subsequent years, or at

16

17                 least One Million Dollars ($1,000,000.00) if the

17

18                 facility is located in a county with a population of

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19                 seventy-five thousand (75,000) or more, according to

19

20                 the most recent Federal Decennial Census, while

20

21                 maintaining or increasing base payroll in subsequent

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22                 years; provided, the payroll requirement of this

22

23                 subparagraph shall be waived for claims for exemptions

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24                 including claims previously denied or on appeal on

24

    Req. No. 2489                                           Page 9
1                  March 3, 2010, for all initial applications for

1

2                  exemption filed on or after January 1, 2004, and on or

2

3                  before March 31, 2009, and all subsequent annual

3

4                  exemption applications filed related to the initial

4

5                  application for exemption, for an applicant, if the

5

6                  facility has been located in Oklahoma for at least

6

7                  fifteen (15) years engaged in marine engine

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8                  manufacturing as defined under U.S. Industry Number

8

9                  333618 of the NAICS Manual, latest revision, and has

9

10                 maintained an average employment of five hundred (500)

10

11                 or more full-time-equivalent employees over a ten-year

11

12                 period. Any applicant that qualifies for the payroll

12

13                 requirement waiver as outlined in the previous

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14                 sentence and subsequently closes its Oklahoma

14

15                 manufacturing plant prior to January 1, 2012, may be

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16                 disqualified for exemption and subject to recapture.

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17                 For an applicant engaged in paperboard manufacturing

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18                 as defined under U.S. Industry Number 322130 of the

18

19                 NAICS Manual, latest revision, union master payouts

19

20                 paid by the buyer of the facility to specified

20

21                 individuals employed by the facility at the time of

21

22                 purchase, as specified under the purchase agreement,

22

23                 shall be excluded from payroll for purposes of this

23

24                 section.

24

    Req. No. 2489                                               Page 10
1                  In order to provide certainty with respect to

1

2                  investments in manufacturing facilities pertaining to

2

3                  all initial applications for exemption filed on or

3

4                  after January 1, 2016, the following definitions shall

4

5                  apply:

5

6                  (1) "base payroll" shall mean total payroll adjusted

6

7                  for any nonrecurring bonuses, exercise of stock

7

8                  option or stock rights and other nonrecurring,

8

9                  extraordinary items included in total payroll,

9

10                 and

10

11                 (2) "initial payroll" shall mean base payroll for the

11

12                 year immediately preceding the initial

12

13                 construction, acquisition or expansion.

13

14                 The Tax Commission shall verify payroll

14

15                 information through the Oklahoma Employment

15

16                 Security Commission by using reports from the

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17                 Oklahoma Employment Security Commission for the

17

18                 calendar year immediately preceding the year for

18

19                 which initial application is made for base-line

19

20                 baseline payroll, which must be maintained or

20

21                 increased for each subsequent year; provided, a

21

22                 manufacturing facility shall have the option of

22

23                 excluding from its payroll, for purposes of this

23

24                 section:

24

    Req. No. 2489                                           Page 11
 1                     i. payments to sole proprietors, members
 1                              of a partnership, members of a limited
 2                              liability company who own at least ten
 2                              percent (10%) of the capital of the
 3                              limited liability company or
 3                              stockholder-employees of a corporation
 4                              who own at least ten percent (10%) of
 4                              the stock in the corporation, and
 5
 5                    ii. any nonrecurring bonuses, exercise of
 6                              stock option or stock rights or other
 6                              nonrecurring, extraordinary items
 7                              included in total payroll numbers as
 7                              reported by the Oklahoma Employment
 8                              Security Commission. A manufacturing
 8                              facility electing either option shall
 9                              indicate such election upon its
 9                              application for an exemption under this
10                              section. Any manufacturing facility
10                              electing either option shall submit
11                              such information as the Tax Commission
11                              may require in order to verify payroll
12                              information. Payroll information
12                              submitted pursuant to the provisions of
13                              this paragraph shall be submitted to
13
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       Req. No. 2489
1                  the Tax Commission and shall be subject

1

2                  to the provisions of Section 205 of

2

3                  this title, and

3

4   b. the facility offers, or will offer within one hundred

4

5                  eighty (180) days of the date of employment, a basic

5

6                  health benefits plan to the full-time-equivalent

6

7                  employees of the facility, which is determined by the

7

8                  Oklahoma Department of Commerce to consist of the

8

9                  elements specified in subparagraph b of paragraph 1 of

9

10                 subsection A of Section 3603 of this title or elements

10

11                 substantially equivalent thereto.

11

12  For purposes of this section, calculation of the amount of

12

13 increased base payroll shall be measured from the start of initial
13

14 construction or expansion to the completion of such construction or
14

15 expansion or for three (3) years from the start of initial
15

16 construction or expansion, whichever occurs first. The amount of
16

17 increased base payroll shall include payroll for full-time-
17

18 equivalent employees in this state who are employed by an entity
18

19 other than the facility which has previously or is currently
19

20 qualified to receive an exemption pursuant to the provisions of this
20

21 section and who are leased or otherwise provided to the facility, if
21

22 such employment did not exist in this state prior to the start of
22

23 initial construction or expansion of the facility. The
23

24 manufacturing concern shall submit an affidavit to the Tax
24

    Req. No. 2489                                              Page 13
1 Commission, signed by an officer, stating that the construction,
1

2 acquisition or expansion of the facility will result in a net
2

3 increase in the annualized base payroll as required by this
3

4 paragraph and that full-time-equivalent employees of the facility
4

5 are or will be offered a basic health benefits plan as required by
5

6 this paragraph. If, after the completion of such construction or
6

7 expansion or after three (3) years from the start of initial
7

8 construction or expansion, whichever occurs first, the construction,
8

9 acquisition or expansion has not resulted in a net increase in the
9

10 amount of annualized base payroll, if required, or any other
10

11 qualification specified in this paragraph has not been met, the
11

12 manufacturing concern shall pay an amount equal to the amount of any
12

13 exemption granted including penalties and interest thereon, to the
13

14 Tax Commission for deposit to the Ad Valorem Reimbursement Fund;
14

15  5. Except as otherwise provided by this paragraph, any new,

15

16 acquired or expanded computer data processing, data preparation or
16

17 information processing services provider classified in U.S. Industry
17

18 Number 518210 of the North American Industrial Classification System
18

19 (NAICS) NAICS Manual, 2017 revision, may apply for exemptions under
19

20 this section for each year in which new, acquired, or expanded
20

21 capital improvements to the facility are made for assets placed in
21

22 service not later than December 31, 2021, if:
22

23  a. there is a net increase in annualized payroll of the

23

24                 applicant at any facility or facilities of the

24

    Req. No. 2489                                 Page 14
1                  applicant in this state of at least Two Hundred Fifty

1

2                  Thousand Dollars ($250,000.00), which is attributable

2

3                  to the capital improvements, or a net increase of

3

4                  Seven Million Dollars ($7,000,000.00) or more in

4

5                  capital improvements, while maintaining or increasing

5

6                  payroll at the facility or facilities in this state

6

7                  which are included in the application, and

7

8   b. the facility offers, or will offer within one hundred

8

9                  eighty (180) days of the date of employment of new

9

10                 employees attributable to the capital improvements, a

10

11                 basic health benefits plan to the full-time-equivalent

11

12                 employees of the facility, which is determined by the

12

13                 Oklahoma Department of Commerce to consist of the

13

14                 elements specified in subparagraph b of paragraph 1 of

14

15                 subsection A of Section 3603 of this title or elements

15

16                 substantially equivalent thereto.

16

17  An establishment described by this paragraph, the primary

17

18 business activity of which is described by Industry No. Number
18

19 518210 of the North American Industry Classification System (NAICS)
19

20 NAICS Manual, 2017 revision, that has applied for and been granted
20

21 an exemption for personal property at any time within five (5) years
21

22 prior to November 1, 2021, may apply for exemptions for items of
22

23 eligible personal property to be located within improvements to real
23

24 property and such real property and improvements having been exempt
24

    Req. No. 2489                                              Page 15
1 from ad valorem taxation prior to November 1, 2021, pursuant to the
1

2 provisions of this section if such personal property is placed in
2

3 service not later than December 31, 2036. No additional personal
3

4 property of such establishment placed in service after such date
4

5 shall qualify for the exempt treatment otherwise authorized pursuant
5

6 to this paragraph;
6

7   6. Effective January 1, 2017, an entity engaged in electric

7

8 power generation by means of wind, as described by the North
8

9 American Industry Classification System, No. 221119, shall not be
9

10 defined as a qualifying manufacturing concern for purposes of the
10

11 exemption otherwise authorized pursuant to Section 6B of Article X
11

12 of the Oklahoma Constitution or qualify as a manufacturing facility
12

13 as defined in this section. No initial application for exemption
13

14 shall be filed by or accepted from an entity engaged in electric
14

15 power generation by means of wind on or after January 1, 2018;
15

16  7. An entity or applicant engaged in an industry as defined

16

17 under U.S. Industry Number 324110 of the NAICS Manual, latest
17

18 revision, which has applied for or been granted an exemption for a
18

19 time period which began on or after calendar year 2012 and before
19

20 calendar year 2016 but which did not meet the payroll requirements
20

21 of subparagraph a of paragraph 4 of this subsection because of
21

22 nonrecurring bonuses, exercise of stock option or stock rights or
22

23 other nonrecurring, extraordinary items included in total payroll in
23

24 the previous year, shall be allowed an exemption, beginning with
24

    Req. No. 2489     Page 16
1 calendar year 2016, for the number of years including the calendar
1

2 year for which the exemption was denied, remaining in the entity's
2

3 five-year exemption period, provided such entity attains or
3

4 increases payroll at or above the initial or base payroll
4

5 established for the exemption;
5

6   8. A facility engaged in manufacturing defined under U.S.

6

7 Industry Number 327310 of the NAICS Manual shall have the payroll
7

8 requirements of paragraph 4 of this subsection waived for tax year
8

9 2021, which is based in part on the 2020 calendar year payroll
9

10 reported to the Oklahoma Employment Security Commission, and may
10

11 continue to receive the exemption for the five-year period provided
11

12 in this section only if all other requirements of this section are
12

13 met; and
13

14  9. A facility engaged in manufacturing which otherwise

14

15 qualifies for the exemption or exemptions pursuant to the provisions
15

16 of this section shall have the payroll requirements of paragraph 4
16

17 of this subsection waived for tax year 2021, which is based in part
17

18 on the 2020 calendar year payroll reported to the Oklahoma
18

19 Employment Security Commission, and for tax year 2022, which is
19

20 based in part on the 2021 calendar year payroll reported to the
20

21 Oklahoma Employment Security Commission, and may continue to receive
21

22 the exemption for the five-year period provided in this section only
22

23 if all other requirements of this section are met. Provided, a
23

24 facility engaged in manufacturing as defined under Industrial Group
24

    Req. No. 2489                                              Page 17
1 Number 3364 of the NAICS Manual, latest revision, which otherwise
1

2 qualifies or qualified to receive the exemption for the five-year
2

3 period provided in this section, including claims previously denied,
3

4 shall have the payroll requirements of paragraph 4 of this
4

5 subsection waived for the five-year exemption period of those
5

6 initial exemption applications filed after January 1, 2020, and
6

7 before March 16, 2021; and
7

8   10. Effective January 1, 2027, an entity that provides

8

9 employment to an individual that meets the definition of an H-1B
9

10 nonimmigrant, as provided in 8 U.S.C., Section 1182(n)(4)(C), shall
10

11 not be defined as a qualifying manufacturing concern for purposes of
11

12 the exemption otherwise authorized pursuant to Section 6B of Article
12

13 X of the Oklahoma Constitution or qualify as a manufacturing
13

14 facility as defined in this section.
14

15  D. 1. Except as provided in paragraph 2 of this subsection,

15

16 the five-year period of exemption from ad valorem taxes for any
16

17 qualifying manufacturing facility property shall begin on January 1
17

18 following the initial qualifying use of the property in the
18

19 manufacturing process.
19

20  2. The five-year period of exemption from ad valorem taxes for

20

21 any qualifying manufacturing facility, as specified in subparagraphs
21

22 a and b of this paragraph, which is located within a tax incentive
22

23 district created pursuant to the Local Development Act by a county
23

24 having a population of at least five hundred thousand (500,000),
24

    Req. No. 2489                                             Page 18
1 according to the most recent Federal Decennial Census, shall begin
1

2 on January 1 following the expiration or termination of the ad
2

3 valorem exemption, abatement, or other incentive provided through
3

4 the tax incentive district. Facilities qualifying pursuant to this
4

5 subsection shall include:
5

6   a. a manufacturing facility as defined in subparagraph c

6

7                  of paragraph 1 of subsection B of this section, and

7

8   b. an establishment primarily engaged in distribution as

8

9                  defined under Industry Number 49311 of the North

9

10                 American Industry Classification System for which the

10

11                 initial capital investment was at least One Hundred

11

12                 Eighty Million Dollars ($180,000,000.00); provided,

12

13                 that the qualifying job creation and depreciable

13

14                 property investment occurred prior to calendar year

14

15                 2017 but not earlier than calendar year 2013.

15

16  E. Any person, firm or corporation claiming the exemption

16

17 herein provided for shall file each year for which exemption is
17

18 claimed, an application therefor with the county assessor of the
18

19 county in which the new, expanded or acquired facility is located.
19

20 The application shall be on a form or forms prescribed by the Tax
20

21 Commission, and shall be filed on or before March 15, except as
21

22 provided in Section 2902.1 of this title, of each year in which the
22

23 facility desires to take the exemption or within thirty (30) days
23

24 from and after receipt by such person, firm or corporation of notice
24

    Req. No. 2489            Page 19
1 of valuation increase, whichever is later. In a case where
1

2 completion of the facility or facilities will occur after January 1
2

3 of a given year, a facility may apply to claim the ad valorem tax
3

4 exemption for that year. If such facility is found to be qualified
4

5 for exemption, the ad valorem tax exemption provided for herein
5

6 shall be granted for that entire year and shall apply to the ad
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7 valorem valuation as of January 1 of that given year. For
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8 applicants who qualify under the provisions of subparagraph b of
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9 paragraph 1 of subsection B of this section, the application shall
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10 include a copy of the affidavit and any other information required
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11 to be filed with the Tax Commission.
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12  F. The application shall be examined by the county assessor and

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13 approved or rejected in the same manner as provided by law for
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14 approval or rejection of claims for homestead exemptions. The
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15 taxpayer shall have the same right of review by and appeal from the
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16 county board of equalization, in the same manner and subject to the
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17 same requirements as provided by law for review and appeals
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18 concerning homestead exemption claims. Approved applications shall
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19 be filed by the county assessor with the Tax Commission no later
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20 than June 15, except as provided in Section 2902.1 of this title, of
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21 the year in which the facility desires to take the exemption.
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22 Incomplete applications and applications filed after June 15 will be
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23 declared null and void by the Tax Commission. In the event that a
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24 taxpayer qualified to receive an exemption pursuant to the
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    Req. No. 2489                                              Page 20
1 provisions of this section shall make payment of ad valorem taxes in
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2 excess of the amount due, the county treasurer shall have the
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3 authority to credit the taxpayer's real or personal property tax
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4 overpayment against current taxes due. The county treasurer may
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5 establish a schedule of up to five (5) years of credit to resolve
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6 the overpayment.
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7   G. Nothing herein shall in any manner affect, alter or impair

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8 any law relating to the assessment of property, and all property,
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9 real or personal, which may be entitled to exemption hereunder shall
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10 be valued and assessed as is other like property and as provided by
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11 law. The valuation and assessment of property for which an
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12 exemption is granted hereunder shall be performed by the Tax
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13 Commission using one or more of the cost, income and expense and
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14 sales comparison approaches to estimate fair cash value in
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15 accordance with the Uniform Standards of Professional Appraisal
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16 Practice.
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17  H. The Tax Commission shall have the authority and duty to

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18 prescribe forms and to promulgate rules as may be necessary to carry
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19 out and administer the terms and provisions of this section.
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20  SECTION 2. This act shall become effective November 1, 2026.

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21

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22  60-2-2489       QD  12/2/2025 10:47:04 PM

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    Req. No. 2489                                              Page 21
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