Oklahoma State Senate
Communications Division
State Capitol
Oklahoma City, OK 73105
405-521-5774

For Immediate Release: February 14, 2006

Sen. Rabon Says Bill Will Ensure Ad Valorem Reimbursement Obligations are
Met on Double Homestead Exemption

A bill to pay millions to Oklahoma counties owed them because of Ad Valorem reimbursement obligations has won approval by the Senate Finance Committee. Sen. Jeff Rabon is author of Senate Bill 1774. He has long advocated ensuring the reimbursement fund has adequate resources and said he was gratified by Tuesday’s committee vote. The fund was created to reimburse counties for lost property tax revenue due to Ad Valorem breaks and double homestead exemptions.

“We owe this money because of the various Ad Valorem tax breaks the legislature initiated back in the 1980’s in an effort to boost the economy after the oil bust. Other exemptions were added through the years,” explained Rabon, D-Hugo.

“The problem came when the revenue earmarked for the fund didn’t increase at the same rate as the claims for reimbursement. The original one percent of state income taxes that was earmarked to repay counties for the lost Ad Valorem taxes was inadequate to cover all the state owed them.”

Under SB 1774, the amount of income tax earmarked for the Ad Valorem reimbursement fund would increase from 1 percent to 2.3 percent, allowing the fund to fully reimburse all claims.

“This would more than double the amount of money going into the reimbursement fund. It’s going to make a huge difference to counties across the state in their ability to fund critical services on behalf of the public,” Rabon said.

The measure now moves to the full Senate for further consideration.

For more information contact:
Senator Rabon's Office - (405) 521-5614