Current through Vol. 42, No. 1, September 16, 2024
(a) The procedures and requirements set out
in this Section shall be used to implement the limitation of the valuation on
homestead property of qualified owners for ad valorem purposes and the
additional homestead exemption:
(b)
For purposes of qualifying for the senior valuation limitation and/or the
additional homestead exemption "gross household income" means the
gross amount of income of every type, regardless of the source, received by all
persons occupying the same household, whether such income was taxable or
nontaxable for federal or state income tax purposes, including pensions,
annuities, federal Social Security, unemployment payments, public assistance
payments, alimony, support money, workers' compensation, loss-of-time insurance
payments, capital gains and any other type of income received, and excluding
gifts. The term "gross household income" shall not include any veterans'
disability compensation payments, or the amount of any federal stimulus or
relief payments related to the COVID-19 virus.
(c)
"Senior valuation
limitation" means the implementation of Oklahoma Constitution, Article
10, Section 8C, which directed county assessors to limit the fair cash value of
the homestead property of any qualified person who has made proper application.
The applicant's property must be a valid homestead property, with proper
evidence of a homestead or an application made in 1997 or subsequent years. As
with any homestead, the general statutes for homestead qualification apply to
the limitation. Only one homestead, and by extension, only one limitation is
permitted in any one year. The limitation applies only to the occupied
homestead property and may not be applied to non-homestead property.
[See: 68 O.S. §§ 2888, 2889, 2890, 2893].
(1)
Relationship to exemptions and
other programs. The senior valuation limitation is available to
qualified owners in addition to participation in the circuit breaker and
additional homestead exemption. Availability of the senior valuation limitation
is not dependent upon the county's compliance status with the
State Board of Equalization.
(2)
Qualified owner. The taxpayer must be at least 65 the year before
the senior valuation limitation is approved, and the applicant's total
household annual income for the previous year must not exceed the amount as
provided in the Oklahoma Constitution, Article 10, Section 8C. The income
threshold for the gross household income from all sources for an individual
head of household under this Section shall not exceed the amount determined by
the United States Department of Housing and Urban Development to be the
estimated median income for the preceding year for the county or metropolitan
statistical area which includes such county. The Tax Commission shall provide
this information to each county assessor each year, as soon as it is
available.
(3)
Application;
qualification; duties of assessor; right of appeal. In order to be
eligible for the senior valuation limitation, the individual must apply at the
county assessor's office by completing form OTC 994, Application for Property
Valuation Limitation and Additional Homestead Exemption. The application must
be made between January 1 and March 15. The limitation will be in effect for
the tax year in which the application is made and approved, based on the
current year valuation.
(A) For the limitation
to be valid, form OTC 994, Application for Property Valuation Limitation and
Additional Homestead Exemption, must be completed in its entirety as to income,
age, ownership, and other information.
(B) The county assessor has the right and
duty to review the information provided, ask any necessary questions, request
documentation of age, income, or other information.
(C) The county assessor shall deny any
application that is inaccurate, incomplete, inadequately documented, or
otherwise invalid pursuant to this Section.
(D) The county assessor may request
assistance from the Oklahoma Tax Commission in determination of income
qualifications under 68 O.S. § 2890.
(E) The taxpayer may appeal any denial of a
senior valuation limitation application by the county assessor to the county
board of equalization in the same manner as an appeal of the denial of a
homestead exemption.
(4)
Review of valuation for error. The county assessor should review
the valuation of the property for clerical errors, incorrect physical
characteristics, or other material error affecting valuation in order to
protect the taxpayer. This review shall not include a revaluation of the
property solely because it may be below fair cash value.
(5)
Physical improvements to
property. If a physical improvement is made to the property, such as a
room addition, additional square footage, garage, out buildings, enclosed
garage, or similar improvement, the improvement shall be valued in the same
manner as these improvements are presently valued. This additional valuation
shall be added to the limited value of the property before the construction
occurred. If improvements are added to the property, the fair cash value shall
be increased by the amount attributable to the addition. The new total value is
then limited again, so long as the owner and property remain qualified.
Physical additions or changes that are considered normal maintenance, such as
normal repairs, minor re-modeling, roof repair or insulation, minor energy
efficiency improvements, or retro fit improvements such as wheelchair ramps to
provide access to the property, are not generally considered physical
improvements affecting the valuation limitation.
(6)
Duration of, and conditions which
terminate the limitation. The senior valuation limitation is valid on
the property as long as the taxpayer owns and occupies the property and title
to the property is not transferred, changed, or otherwise modified. If the
taxpayer fails to own and occupy the property or if title to the property is
transferred, changed, or conveyed to another person, the senior valuation
limitation shall expire. It is then the responsibility of the county assessor
to value the property at fair cash value consistent with constitutional
provisions, statutes and applicable rules. If the person's gross household
income from all sources exceeds the amount provided in the Oklahoma
Constitution, Article 10, Section 8C, the senior valuation limitation shall
expire and the value of the property shall be subject to the three percent
limitation increase for that year.
(7)
Instances in which tax amount may
increase, despite limitation. The senior valuation limitation applies to
the valuation, however; tax increases may occur under the specific situations
outlined as follows:
(A) If an additional
millage such as a bond issue or other levy is added;
(B) If judgment is rendered against the
county and a judicial order directs an additional levy; or,
(C) If the county voters adopt a measure
increasing the assessment percentage within the county under the authority of
Section 8, Article 10, of the Oklahoma Constitution.
(8)
Additional homestead exemption.
"Additional homestead exemption" means an exemption in addition to the
amount of the homestead exemption authorized and allowed in Section
2889 of Title 68, to the extent of
One Thousand Dollars ($1,000.00) of the assessed valuation on each homestead of
heads of households whose gross household income from all sources for the
preceding calendar year did not exceed Thirty Thousand Dollars $30,000.
(A) To qualify for the additional homestead
exemption, the individual must apply at the county assessor's office by
completing form OTC 994, Application for Property Valuation Limitation and
Additional Homestead Exemption.
(B)
The application must be made on or before March 15 or within thirty (30) days
of taxpayer's receipt of a County Assessor Notice of Increase in Valuation of
Real Property form (OTC 926) is later. [68 O.S. § 2890(C)].
Added at 14 Ok Reg 2670,
eff 6-26-97; Amended at 15 Ok Reg 3451, eff 7-11-98; Amended at 18 Ok Reg 2796,
eff 6-25-01; Amended at 22 Ok Reg 353, eff 1-1-05 (emergency); Amended at 22 Ok
Reg 1518, eff 6-11-05
