Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 10 - AD Valorem › Subchapter 1 - General Provisions › Section 710:10-1-4 - Limitation of the fair cash value on homestead property of qualified owners; and additional homestead exemption

Current through Vol. 41, No. 20, July 1, 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 Twenty-Five
				Thousand Dollars)($25,000.00).
(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) whichever is
				later. [68 O.S. § 2890(C)].