SB 1842 — Ad valorem tax; authorizing county treasurer to offer prepayment option. Effective date.

STATESENATE OFFLOOR OKLAHOMAVERSION 2February 2nd23, Session2026 ofAS theAMENDED 60th Legislature (2026) 3 SENATE BILL 1842NO. By:

Dossett1842 4By: 5 AS INTRODUCED 7 An Act relating to ad valorem tax;

amendingDossett 685 O.S.[ ad valorem tax - payment date - prepayment - notification - notice - refund of overpayments - codification - effective date ] 9 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

2021, Section 2913, which relates to collection and payment;

providing exception to payment date for certain prepayment option;

permitting county treasurer to offer prepayment option;

limiting eligibility for prepayment option;

requiring certain notification to county treasurer;

prescribing installment payments schedule;

requiring certain notice;

requiring certain notice from county assessor;

requiring certain notice from county treasurer;

requiring prepayments be deposited in certain account;

providing for distribution of prepayments;

providing for refund of overpayments;

limiting effect of prepayment option on current law;

providing for codification;

and providing an effective date.

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

Req.1.

No.Unless one-half (1/2) or more of the taxes so levied has been paid before the first day of January, the entire tax levy for such fiscal year shall become delinquent on that date.

3287 Page 1 1.

Unless one-half (1/2) or more of the taxes so levied has 2 been paid before the first day of January, the entire tax levy for 3 such fiscal year shall become delinquent on that date.

If the first half or more of the taxes levied upon an ad 5 valorem basis for any such fiscal year has been paid before the 6 first day of January, the remainder shall be paid before the first 7SENATE FLOOR VERSION - SB1842 SFLR Page 1 (Bold face denotes Committee Amendments) day of April thereafter and if not paid shall become delinquent on that date.

9 In no event may payment be made in more than two installments subject to the provisions of the payment schedule specified in this subsection.

In no event shall such interest exceed a sum equal to the unpaid principal amount of tax, and when such interest has Req.accumulated to a sum equivalent to one hundred percent (100%) of the unpaid tax the further accumulation of interest shall cease.

No.E.

3287In Pageaddition 2to accumulatedany toother apenalties sumprescribed equivalentby law, delinquent taxes shall be subject to onea hundredlate percentpayment (100%)penalty of thefive 2percent unpaid(5%) taxper themonth furtheror accumulationa ofmajor interestfraction shallthereof cease.until paid.

3The E.penalty assessed herein shall only apply to delinquent taxes that SENATE FLOOR VERSION - SB1842 SFLR Page 2 (Bold face denotes Committee Amendments) are due on property located in a dependent school district in a county with a population of less than seventy-five thousand (75,000) according to the most recent Federal Decennial Census and held by a nonindividual taxpayer when the tax has been paid delinquent for two (2) or more separate and consecutive years and the fair cash value of the property exceeds Five Hundred Thousand Dollars ($500,000.00).

In addition to any other penalties prescribed by law, delinquent taxes shall be subject to a late payment penalty of five 5 percent (5%) per month or a major fraction thereof until paid.

The 6 penalty assessed herein shall only apply to delinquent taxes that 7 are due on property located in a dependent school district in a county with a population of less than seventy-five thousand (75,000) 9 according to the most recent Federal Decennial Census and held by a nonindividual taxpayer when the tax has been paid delinquent for two (2) or more separate and consecutive years and the fair cash value of the property exceeds Five Hundred Thousand Dollars ($500,000.00).

The first installment of taxes payable pursuant to the provisions of this section shall not become delinquent until thirty (30) days after the tax rolls have become Req.completed and filed by the county assessor with the county treasurer.

No.G.

3287The Pagecounty 3treasurer completedmay andwaive filedpenalties byor theinterest countyin assessorany withcase where it is shown to the county 2treasurer treasurer.that such penalties or interest were incurred through no fault of the taxpayer.

Each waiver of penalties or interest shall be audited by the Office of SENATE FLOOR VERSION - SB1842 SFLR Page 3 G.(Bold face denotes Committee Amendments) the State Auditor and Inspector each year during the annual audit of the county offices.

TheSECTION county2. treasurer may waive penalties or interest in any case where it is shown to the county treasurer that such penalties 5 or interest were incurred through no fault of the taxpayer.

Each 6 waiver of penalties or interest shall be audited by the Office of 7 the State Auditor and Inspector each year during the annual audit of the county offices.

9 SECTION 2.

Req.B.

No.A taxpayer electing the prepayment option, or a taxpayer electing to opt out of using the prepayment option after electing the prepayment option, shall notify the county treasurer in writing no later than January 15 of the calendar year for which the prepayments may be made and no earlier than December 1 of the preceding year.