Committee advances bill to require in‑lieu payments when Commissioners of the Land Office owns 10% or more of a county
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Summary
The Revenue and Taxation Committee voted to pass Senate Bill 237, a measure from Sen. David Murdoch that would require the Commissioners of the Land Office (CLO) to make in‑lieu ad valorem payments to a county when the CLO controls 10% or more of that county’s land.
The Revenue and Taxation Committee voted to pass Senate Bill 237, a measure from Sen. David Murdoch to require in‑lieu ad valorem payments from the Commissioners of the Land Office when the CLO’s holdings equal 10% or more of a county’s land. The committee recorded an 11‑0 roll call in favor of the bill.
Senator David Murdoch, the bill’s author, told the committee the measure targets counties where the CLO’s landholdings significantly reduce taxable acreage. “Senate Bill 237 is a bill to address the amount of land that CLO owns in Rural Oklahoma,” Murdoch said, and he cited a LOFT report showing the CLO owned “236,000 acres” in Cimarron County and that the report estimated the ownership had cost local schools an identified sum in the report.
The bill would require the CLO to make an annual in‑lieu payment to any county where CLO land comprises at least 10% of the county’s area. Murdoch noted most schools receive about 80% of ad valorem tax revenue, and he said the measure is intended to help those school districts and other county services that receive property‑tax revenue.
Committee members asked operational questions about scope and appeals. Senator Mann asked how many counties would be affected; Murdoch responded it would affect one county (Cimarron), with the next county measuring 9.7% (Kay County). Senator Kirk asked whether the CLO could pass the expense to leaseholders; Murdoch said the CLO could “tack this onto the minimum bid when they start their auctions.” Senator Hamilton asked whether the CLO is authorized to make such payments; Murdoch said he believed an in‑lieu payment would be permissible.
The committee voted by roll call. The clerk recorded the following votes: Senator Gillespie (aye); Senator Gallaher (aye); Senator Hall (aye); Senator Hamilton (aye); Senator Howard (aye); Senator Jett (aye); Senator Kurt (aye); Senator Mann (aye); Senator Saccheri (aye); Vice Chair Devers (aye); Chairman Rader (aye). The committee chair declared Senate Bill 237 passed as amended.
The bill will move to subsequent Senate consideration with the committee recommendation to pass.
