{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-861","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-861","heading":"Tax increment financing - Apportionment - Adjustment","body":"A. A project plan may contain a provision that the increments\n\nfrom certain local taxes or fees may be used to finance project\n\ncosts in areas qualified under the Local Development Act. The\n\nincrement from local taxes or fees levied from and after the\n\neffective date of the approval of such plan shall be apportioned in\n\nthe following manner for a period not to exceed twenty-five (25)\n\nfiscal years thereafter or the period required for payment of\n\nproject costs, whichever is less; provided, however, that for any\n\nincrement district established after November 1, 1992, such time\n\nperiod shall be tolled for a period of time equal to the pendency of\n\nany litigation directly or indirectly challenging the increment\n\ndistrict or apportionment or disbursement:\n\n1. That portion of the ad valorem taxes which are produced by\n\nthe levy at the rate fixed each year by or for each such ad valorem\n\ntaxing entity upon the base assessed value of the increment district\n\ndetermined pursuant to Section 862 of this title and as to an area\n\nlater added to the increment district, the effective date of the\n\naddition to the increment district, shall be paid to each taxing\n\nentity and all or any portion of local sales taxes, other local\n\ntaxes or local fees collected each year which are not subject to\n\napportionment shall be paid or retained as otherwise provided by\n\nlaw; and\n\n2. All or any portion of:\n\na. ad valorem taxes, in excess of such amount specified\n\nin paragraph 1 of this subsection,\n\nb. the increment of local sales taxes, other local taxes\n\nor local fees, or a combination thereof, paid to or\n\nfor the benefit of the city, town, or county approving\n\nthe plan, and\n\nc. with its consent, evidenced by agreement in writing,\n\nthe increment of local sales tax, other local taxes or\n\nlocal fees, or combination thereof, payable to any\n\nother local public taxing entity,\n\nshall be apportioned to, and when collected, shall be paid into an\n\napportionment fund established for the project pursuant to the\n\nproject plan. Such revenues shall be used for the payment of the\n\nproject costs and for the payment of the principal of, the interest\n\non, and any premiums due in connection with the bonds of, loans,\n\nnotes, or advances of money to, or indebtedness incurred to finance\n\nproject costs, whether funded, refunded, assumed, or otherwise, for\n\nfinancing, in whole or in part, eligible project costs. For the\n\npurposes of this section, “local sales tax” means amounts payable to\n\nor for the benefit of a local governmental entity calculated as a\n\npercentage of gross sales whether imposed by ordinance, resolution,\n\ncovenant, or agreement. Nothing shall prohibit the increments from\n\nbeing used to directly pay eligible project costs. When all\n\neligible project costs and such bonds, loans, advances of money or\n\nindebtedness, if any, including interest thereon and any premiums\n\ndue in connection with them, have been paid and the governing body\n\nadopts an ordinance or resolution dissolving the tax apportionment\n\nfinancing, all ad valorem taxes upon the taxable property within the\n\nboundary of such district shall be paid into the funds of the\n\nrespective taxing entities.\n\nB. If a project plan contains a provision for apportionment as\n\nprovided in subsection A of this section, and notwithstanding any\n\nother provision of law to the contrary, the governing body shall\n\ndirect in the resolution or ordinance approving the plan which\n\nportion of the increments, including whether any or all, to be paid\n\ninto the apportionment fund shall constitute a part of the general\n\nfund to be appropriated annually by the governing body, and which\n\nportion, including whether any or all, shall constitute funds of a\n\npublic entity authorized to issue tax apportionment bonds or notes\n\nor to incur project costs.\n\nC. To the extent that collections exceed project costs and the\n\nprovisions for payment of principal and interest along with\nfund shall constitute a part of the general\n\nfund to be appropriated annually by the governing body, and which\n\nportion, including whether any or all, shall constitute funds of a\n\npublic entity authorized to issue tax apportionment bonds or notes\n\nor to incur project costs.\n\nC. To the extent that collections exceed project costs and the\n\nprovisions for payment of principal and interest along with\n\nsufficient reserves on any bonds issued pursuant to the provisions\n\nof Section 863 of this title, the excess shall be paid into the\n\nfunds of the respective taxing entities unless the taxing entity\n\nagrees to some other use of such collections.\n\nD. Except as provided in subsection E of this section, for any\n\nyear in which taxes or fees are apportioned in the manner specified\n\nin paragraph 2 of subsection A of this section, any increase in\n\nassessed valuation of taxable real property or taxable personal\n\nproperty within the boundaries of such district in excess of the\n\nbase assessed value shall not be considered by any taxing entity in\n\ncomputing any debt limitation or for any other purpose except for\n\nthe levy of taxes and in determining the amount to be apportioned.\n\nE. In the event there is a change in the assessment ratio for\n\nad valorem tax property valuations of property within the boundaries\n\nof an increment district, the portions of valuations for assessment\n\npursuant to paragraphs 1 and 2 of subsection A of this section shall\n\nbe proportionately adjusted in accordance with such reassessment.\n\nF. Nothing in this section shall be construed as relieving\n\nproperty in such project area from being assessed as provided in the\n\nAd Valorem Tax Code of the Oklahoma Statutes, or as relieving owners\n\nof such property from paying a uniform rate of taxes, as required by\n\nSection 5 of Article X of the Oklahoma Constitution.\n\nG. Subject to constitutional exemptions, if property in an\n\nincrement district is owned by a public entity and is leased to or\n\noperated for a private use, including, without limitation, use by a\n\nnot-for-profit corporation or trust, the portion of the property so\n\nleased or operated shall be assessed by the county assessor as if\n\nsuch portion of the property were taxable, and, during the term of\n\nthe increment district, the public entity owning such property shall\n\npay or require the user thereof to pay ad valorem taxes or an in\n\nlieu ad valorem tax payment in an amount not less than the amount\n\nthat would have resulted if taxes had otherwise been levied on such\n\nportion of the property. If property subject to ad valorem tax in\n\nan increment district is acquired by a private not-for-profit\n\ncorporation or public or private trust, it shall continue to be\n\nassessed and subject to ad valorem taxes or an in lieu ad valorem\n\npayment by the user thereof until termination of the increment\n\ndistrict unless and only to the extent of the portion of the\n\nproperty and the use thereof that is:\n\n1. Acquired to implement the project plan;\n\n2. Converted to a new tax-exempt use by a tax-exempt user; or\n\n3. Entitled to claim a constitutional exemption notwithstanding\n\nstatutory provisions.\n\nDuring the period of an increment district, such nonexempt uses and\n\ninterests are severable for purposes of ad valorem and in lieu of ad\n\nvalorem assessment and payments, notwithstanding any statutory\n\nprovisions to the contrary.","path":["OK Code","Title 62"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os62.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9aa364ea60d31bb66aa743c42b3e65d26ce06f6cff1ef379b0d463e061a579eb","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-860","next":"us-ok/okla.-stat.-tit.-62-62-862"},"notice":"GroundRules: Original legal text. Not legal advice."}