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An act relating to ad valorem tax, the official text

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1                    STATE OF OKLAHOMA

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

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3 SENATE BILL 1842              By: Dossett
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6                               AS INTRODUCED

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

7   2021, Section 2913, which relates to collection and

8   payment; providing exception to payment date for

8   certain prepayment option; permitting county

9   treasurer to offer prepayment option; limiting

9   eligibility for prepayment option; requiring certain

10  notification to county treasurer; prescribing

10  installment payments schedule; requiring certain

11  notice; requiring certain notice from county

11  assessor; requiring certain notice from county

12  treasurer; requiring prepayments be deposited in

12  certain account; providing for distribution of

13  prepayments; providing for refund of overpayments;

13  limiting effect of prepayment option on current law;

14  providing for codification; and providing an

14  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. 2021, Section 2913, is

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19 amended to read as follows:
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20  Section 2913. A. All taxes levied upon an ad valorem basis for

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21 each fiscal year shall become due and payable on the first day of
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22 November. Except for mortgage servicers and taxes prepaid using the
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23 prepayment option provided for in Section 2 of this act, the
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24 exclusive method for payment shall be as follows:
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    Req. No. 3287                                              Page 1
1   1. Unless one-half (1/2) or more of the taxes so levied has

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2 been paid before the first day of January, the entire tax levy for
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3 such fiscal year shall become delinquent on that date.
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4   2. If the first half or more of the taxes levied upon an ad

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5 valorem basis for any such fiscal year has been paid before the
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6 first day of January, the remainder shall be paid before the first
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7 day of April thereafter and if not paid shall become delinquent on
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8 that date.
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9   In no event may payment be made in more than two installments

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10 subject to the provisions of the payment schedule specified in this
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11 subsection.
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12  B. Mortgage servicers, as defined in 24 C.F.R., part 3500.17,

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13 shall pay all accounts which they are servicing in one annual
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14 payment before the first day of January or the entire tax levy for
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15 such fiscal year shall become delinquent on that date.
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16  C. If the total tax owed is Twenty-five Dollars ($25.00) or

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17 less, then the total amount must be paid before January 1. If the
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18 total tax is not paid before January 1, the unpaid balance owing
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19 shall become delinquent on the first day of January and shall be
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20 subject to delinquent charges as provided for in this section.
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21  D. All delinquent taxes shall bear interest at the rate of one

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22 and one-half percent (1 1/2%) per month or major fraction thereof
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23 until paid. In no event shall such interest exceed a sum equal to
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24 the unpaid principal amount of tax, and when such interest has
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    Req. No. 3287                                          Page 2
1 accumulated to a sum equivalent to one hundred percent (100%) of the
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2 unpaid tax the further accumulation of interest shall cease.
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3   E. In addition to any other penalties prescribed by law,

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4 delinquent taxes shall be subject to a late payment penalty of five
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5 percent (5%) per month or a major fraction thereof until paid. The
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6 penalty assessed herein shall only apply to delinquent taxes that
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7 are due on property located in a dependent school district in a
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8 county with a population of less than seventy-five thousand (75,000)
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9 according to the most recent Federal Decennial Census and held by a
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10 nonindividual taxpayer when the tax has been paid delinquent for two
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11 (2) or more separate and consecutive years and the fair cash value
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12 of the property exceeds Five Hundred Thousand Dollars ($500,000.00).
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13  F. The county treasurer shall stamp the date of receipt on each

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14 letter received containing funds for payment of taxes and no
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15 interest shall be added or charged after the receipt of such letter
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16 or the amount due. It shall be the duty of every person subject to
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17 taxation according to the law to attend the county treasurer's
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18 office and pay his or her taxes. If any person neglects to pay his
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19 or her taxes until after they have become delinquent, the county
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20 treasurer is directed and required to collect the delinquent tax as
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21 provided for by law. The first installment of taxes payable
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22 pursuant to the provisions of this section shall not become
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23 delinquent until thirty (30) days after the tax rolls have become
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    Req. No. 3287                                               Page 3
1 completed and filed by the county assessor with the county
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2 treasurer.
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3   G. The county treasurer may waive penalties or interest in any

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4 case where it is shown to the county treasurer that such penalties
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5 or interest were incurred through no fault of the taxpayer. Each
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6 waiver of penalties or interest shall be audited by the Office of
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7 the State Auditor and Inspector each year during the annual audit of
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8 the county offices.
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9   SECTION 2.     NEW LAW  A new section of law to be codified

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10 in the Oklahoma Statutes as Section 2913.1 of Title 68, unless there
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11 is created a duplication in numbering, reads as follows:
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12  A. The county treasurer may allow taxpayers owning taxable

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13 property within the county the option to prepay taxes levied upon an
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14 ad valorem basis using the prepayment option provided for by this
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15 section. The prepayment option shall allow taxpayers to make
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16 installment payments to pay toward taxes levied upon an ad valorem
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17 basis for the following calendar year. A prepayment option is not
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18 allowed for:
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19  1. Accounts with delinquent taxes;

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20  2. Accounts with an ongoing valuation protest from the previous

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21 tax year;
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22  3. Taxes paid through an escrow account; or

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23  4. Public service corporations.

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    Req. No. 3287                                             Page 4
1   B. A taxpayer electing the prepayment option, or a taxpayer

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2 electing to opt out of using the prepayment option after electing
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3 the prepayment option, shall notify the county treasurer in writing
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4 no later than January 15 of the calendar year for which the
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5 prepayments may be made and no earlier than December 1 of the
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6 preceding year. If the county treasurer does not receive written
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7 notification, the taxpayer must pay the taxes in the manner as
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8 prescribed in subsection A of Section 2913 of Title 68 of the
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9 Oklahoma Statutes.
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10  C. The prepayment option shall consist of twelve installment

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11 payments. Each installment payment shall be based on an estimated
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12 property tax obligation which shall be computed by the taxpayer
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13 using the total property tax amount from the previous calendar year,
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14 adjusted for any anticipated changes in property value. The
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15 installment payments shall be divided equally, rounded to the
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16 nearest whole dollar, from the estimated property tax obligation and
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17 shall be paid to the county treasurer on or before the fifteenth day
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18 of each month, except for December, in which case such shall be paid
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19 on or before the thirty-first day of the month.
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20  D. Before the first day of November, a sum of all installment

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21 payment amounts made in that calendar year by each taxpayer shall be
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22 calculated by the county treasurer. This sum shall be reported on
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23 the taxpayer statement prescribed by subsection B of Section 2915 of
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24 Title 68 of the Oklahoma Statutes.
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    Req. No. 3287                                              Page 5
1   If a taxpayer electing the prepayment option does not timely

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2 make each installment payment, the county treasurer may refuse to
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3 accept all other installment payments. If the county treasurer
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4 refuses to accept other installment payments, the remaining balance
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5 is due in accordance with Section 2913 of Title 68 of the Oklahoma
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6 Statutes.
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7   E. The taxes paid under the prepayment option shall be

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8 considered a credit against the total tax amount due for the current
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9 calendar year. The taxes paid under the prepayment option must be
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10 deposited by the county treasurer in a dedicated trust and agency
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11 fund to be known as the "Property Tax Prepayment Fund". The fund
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12 shall receive interest and the interest shall be retained by the
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13 county treasurer and placed into a separate existing cash fund known
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14 as the "County Treasurer's Mortgage Certification Fee Account" to
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15 offset the administrative expenses of the prepayment option. Once
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16 the final installment payment is made, and no later than the last
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17 day of December, the installment payments must be credited to the
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18 accounts of the property taxing entities in the county in the same
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19 proportion that millage was imposed by such entities in the previous
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20 tax year with the necessary adjustments made to reflect current tax
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21 year millage impositions when property taxes for the current year
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22 are paid.
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23  F. If the amount of taxes paid using the prepayment option

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24 results in an overpayment of property tax, the overpayment shall be
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    Req. No. 3287                                           Page 6
1 refunded to the taxpayer within sixty (60) days after the date of
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2 the final installment payment. A taxpayer may request a refund
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3 equal to the sum of all installment payments for the current
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4 calendar year. The refund shall be paid to the taxpayer within ten
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5 (10) business days.
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6   G. The prepayment of estimated property tax as provided in this

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7 section and the credit allowed from these prepayments in no way
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8 alters the due date, penalty schedule, or enforced collection of
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9 property taxes as provided by law.
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10  SECTION 3. This act shall become effective November 1, 2026.

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12  60-2-3287      QD  1/14/2026 11:39:31 PM

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    Req. No. 3287                             Page 7
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