Closing in on State Budget

By the time you read this article, we could have a state budget. House and Senate leaders are still negotiating, but we are very close to a final product. Budget bills, including the main appropriations bill, should begin to be heard in the Joint Committee on Appropriations & Budget the week starting May 16. Once bills go through the committee, they will be heard, questioned, debated and get a final vote on the floor of each legislative chamber before being sent to the governor.

In my next column I'll be able to give many more details of the state budget.

On another topic, we had a number of bills this year that sought to address ad valorem tax protests by energy companies that disagree with county tax valuations on property. These protests sometimes drag out for years and tie up funds intended for counties and schools. Lawmakers studied this issue last interim, which formed the basis for much of the legislation written this year. Much of the legislation stalled in the process, but three bills are still active.

House Bill 3901 would require the Court of Tax Review to hear complaints challenging a county board of equalization's valuation of property that exceeds $3 million. The Court would be required to schedule a conference within 20 days of the answer filed by the county assessor. These cases must go before a judicial administrative district that does not contain within its borders any of the property protested. Any challenges of property less than $3 million shall go to district court.

This bill has been granted a conference committee hearing, which means if final language can be agreed upon by committee members and passed in both legislative chambers, it can be sent to the governor for his consideration of signing it into law. This could speed the process on larger protests.

House Bill 4413 would allow county assessors to be assisted by appraisers and to consult with the Oklahoma Tax Commission in valuing property, but appraisers may not participate in any valuation negotiations or protests. Contracts with and communication between such appraisers and assessors are subject to the Open Records Act. Any assessor appointed or assigned must be state-certified and have successfully completed the advanced accreditation program.

This bill has already gone through the conference committee process, and the final language was approved by the House. Once the Senate approves, this bill can be sent to the governor.

House Bill 2627 requires the county assessor to notify the treasurer or chief financial officer of every school district, technology school district, and any other affected district within five days of a tax protest. The assessor also must notify affected districts of updates in the process including completion of the protest and total amount that will be apportioned. This bill too has been granted a conference committee hearing.