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Bill

SB 678

Ad valorem tax collections; creating the Centrally Assessed Ad Valorem Volatility Reimbursement Fund; prescribing qualifications and reimbursement amount. Effective date. Emergency.

2025 Regular Session Introduced by Brad Boles and 1 co-sponsor

Oklahoma creates reimbursement fund to stabilize school and local government revenues from unpredictable fluctuations in centrally-assessed utility and railroad property tax valuations.

Placed on General Order
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Bill Summary · SB 678

Legislative bill overview

SB 678 creates the Centrally Assessed Ad Valorem Volatility Reimbursement Fund in Oklahoma to compensate school districts and other taxing entities for revenue fluctuations caused by volatility in centrally assessed property valuations (primarily utilities and railroads). The bill establishes eligibility criteria and a reimbursement mechanism to stabilize tax revenue streams affected by unpredictable shifts in assessed values of these major commercial properties.

Why is this important

Centrally assessed properties—like electric utilities, natural gas companies, and railroads—represent significant property tax bases for Oklahoma localities, but their assessed values can swing dramatically year-to-year based on equipment valuations, market conditions, and regulatory decisions. This volatility creates budgeting uncertainty for schools and municipalities that depend on stable tax revenues for long-term planning. The fund aims to provide a financial cushion that protects essential services from sudden revenue drops.

Potential points of contention

  • Cost and funding source: The bill requires appropriations to reimburse entities, raising questions about where state funds will come from and whether this represents a net transfer from the state general fund to offset local losses
  • Qualifying criteria complexity: The bill establishes specific qualifications for reimbursement that may create disputes over which entities qualify, how volatility is calculated, and what constitutes a "sufficient" revenue decline
  • Fairness between entities: Some school districts and taxing jurisdictions may experience greater centrally-assessed property concentrations than others, potentially creating inequities in who benefits most from the reimbursement fund

Compiled from official sources — confirm details with the bill’s official record.

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