The Homestead Exemption in Oklahoma

Each homestead is exempt from ad valorem taxation to the extent of $1,000 of assessed valuation (68 O.S. § 2889). To qualify, the applicant must be a natural person who is the record owner on January 1 and actually residing there, with the deed or other evidence of ownership executed by January 1 and recorded with the county clerk by February 1. Only one homestead exemption is allowed per person, married couple and minor children. An urban homestead is limited to one acre. Homesteads are exempt from all general fund levies, including additional school millage, but not from levies for bonded debt incurred before the exemption law took effect.

File form OTC 921, Application for Homestead Exemption, with the county assessor in the county where the home is located; the applicant does not have to appear in person. Once granted, the exemption continues each year without reapplying as long as the taxpayer owns and occupies the home, the ownership record is filed with the county clerk, and there are no delinquent personal property taxes on the county lien docket (delinquencies can cancel the exemption). A new owner must file a new application, and an owner must notify the assessor in writing of any change in use.

March 15 of the tax year, or within 30 days after receiving a notice of valuation increase, whichever is later. Applications may be filed at any time, but one filed after the deadline takes effect the following tax year. The senior valuation limitation application (OTC 994) must be made between January 1 and March 15.

The fair cash value of homestead property (and agricultural land) cannot increase by more than 3% in any taxable year; other locally assessed real property is limited to 5%. The limit does not apply in a year the title is transferred or improvements are made, and it does not accumulate. Qualifying seniors can also have the homestead value frozen under the senior valuation limitation.