Senior Property Valuation Freeze
State Question 677 directs that Homestead Property shall be frozen by the County Assessor if the following conditions exist:
The homestead property owner is age 65 or older.
The gross household income from all sources, except gifts, does not exceed the median income determined by HUD annually.
Property must be a valid homestead property with proper evidence of a homestead of an application. (As with any homestead, the general statutes for homestead qualification apply to the freeze).
The statutes specify that only one homestead and, by extension, only one freeze is permitted.
The freeze applies only to the homestead property used as a domicile and may not be applied to non-homestead property.
(Reference 68 O.S. Ann Sections 2888, 2889, 2890, 2893, and applicable Attorney General Opinions.)
The Application Process
The property owner must apply for the freeze at the county assessor's office by completing Form OTC 994, Application for property Valuation Freeze and Additional Homestead Exemption. The form must be completed in its entirety regarding:
Income- Gross household income from all sources, except gifts, for all persons residing in the home.
Age- The year after the property owner turns 65 is the first year of eligibility.
Ownership- Proof of ownership shall be required.
Other Information- As may be required by the assessor to document claim for the freeze.
The freeze will take effect for the taxable year in which the application is made and approved and the application must be made between January 1 and March 15.
If the application is denied, the property owner has the right to appeal to the County Board of Equalization.
Special Notice
The senior freeze locks in valuation, but does not freeze all taxes. The tax amount could increase under these three specific situations:
The Senior Valuation Freeze may be obtained in addition to participation in the Property Tax Refund and the Additional Homestead Exemption programs.
If previously qualified for the limitation on the fair cash value of homestead property, no annual application is required. (68 O.S 1997 Supp., Section 2890.1-B)
However, if income exceeds $25,000 in any year, the person shall notify the county assessor that the limitation shall not be allowed for the applicable year. (68 O.S. 1997 Supp., Section 2890.1-B1) [H.B. 2071 effective May 29, 1997]
Circumstances for Removal of Freeze
The freeze is valid on the property as long as the property is not changed, transferred, or otherwise modified.
If title is transferred, changed or conveyed to another person, the senior valuation freeze shall expire. The assessor is then required to assess the property at its fair market value.
Improvements to the property, such as a room addition, will lift the valuation freeze. The additional value will be added to the value of the property which had been frozen. The new total value is frozen again as long as freeze requirements are met.
Physical additions or changes considered to be maintenance such as normal repairs or minor remodeling, minor efficiency improvements, or retrofit improvements such as wheelchair ramps are not considered physical improvements affecting the senior valuation freeze.
If gross household income from all sources, except gifts, exceeds $25,000, the freeze shall expire. The value of the property is then subject to the 5 percent cap increase for that year.
Oklahoma Tax Commission
Ad Valorem Division