Okla. Stat. tit. 62, § 62-861

A. A project plan may contain a provision that the increments

from certain local taxes or fees may be used to finance project

costs in areas qualified under the Local Development Act. The

increment from local taxes or fees levied from and after the

effective date of the approval of such plan shall be apportioned in

the following manner for a period not to exceed twenty-five (25)

fiscal years thereafter or the period required for payment of

project costs, whichever is less; provided, however, that for any

increment district established after November 1, 1992, such time

period shall be tolled for a period of time equal to the pendency of

any litigation directly or indirectly challenging the increment

district or apportionment or disbursement:

1. That portion of the ad valorem taxes which are produced by

the levy at the rate fixed each year by or for each such ad valorem

taxing entity upon the base assessed value of the increment district

determined pursuant to Section 862 of this title and as to an area

later added to the increment district, the effective date of the

addition to the increment district, shall be paid to each taxing

entity and all or any portion of local sales taxes, other local

taxes or local fees collected each year which are not subject to

apportionment shall be paid or retained as otherwise provided by

law; and

2. All or any portion of:

a. ad valorem taxes, in excess of such amount specified

in paragraph 1 of this subsection,

b. the increment of local sales taxes, other local taxes

or local fees, or a combination thereof, paid to or

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for the benefit of the city, town, or county approving

the plan, and

c. with its consent, evidenced by agreement in writing,

the increment of local sales tax, other local taxes or

local fees, or combination thereof, payable to any

other local public taxing entity,

shall be apportioned to, and when collected, shall be paid into an

apportionment fund established for the project pursuant to the

project plan. Such revenues shall be used for the payment of the

project costs and for the payment of the principal of, the interest

on, and any premiums due in connection with the bonds of, loans,

notes, or advances of money to, or indebtedness incurred to finance

project costs, whether funded, refunded, assumed, or otherwise, for

financing, in whole or in part, eligible project costs. For the

purposes of this section, “local sales tax” means amounts payable to

or for the benefit of a local governmental entity calculated as a

percentage of gross sales whether imposed by ordinance, resolution,

covenant, or agreement. Nothing shall prohibit the increments from

being used to directly pay eligible project costs. When all

eligible project costs and such bonds, loans, advances of money or

indebtedness, if any, including interest thereon and any premiums

due in connection with them, have been paid and the governing body

adopts an ordinance or resolution dissolving the tax apportionment

financing, all ad valorem taxes upon the taxable property within the

boundary of such district shall be paid into the funds of the

respective taxing entities.

B. If a project plan contains a provision for apportionment as

provided in subsection A of this section, and notwithstanding any

other provision of law to the contrary, the governing body shall

direct in the resolution or ordinance approving the plan which

portion of the increments, including whether any or all, to be paid

into the apportionment fund shall constitute a part of the general

fund to be appropriated annually by the governing body, and which

portion, including whether any or all, shall constitute funds of a

public entity authorized to issue tax apportionment bonds or notes

or to incur project costs.

C. To the extent that collections exceed project costs and the

provisions for payment of principal and interest along with
fund shall constitute a part of the general

fund to be appropriated annually by the governing body, and which

portion, including whether any or all, shall constitute funds of a

public entity authorized to issue tax apportionment bonds or notes

or to incur project costs.

C. To the extent that collections exceed project costs and the

provisions for payment of principal and interest along with

sufficient reserves on any bonds issued pursuant to the provisions

of Section 863 of this title, the excess shall be paid into the

funds of the respective taxing entities unless the taxing entity

agrees to some other use of such collections.

D. Except as provided in subsection E of this section, for any

year in which taxes or fees are apportioned in the manner specified

in paragraph 2 of subsection A of this section, any increase in

assessed valuation of taxable real property or taxable personal

property within the boundaries of such district in excess of the

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base assessed value shall not be considered by any taxing entity in

computing any debt limitation or for any other purpose except for

the levy of taxes and in determining the amount to be apportioned.

E. In the event there is a change in the assessment ratio for

ad valorem tax property valuations of property within the boundaries

of an increment district, the portions of valuations for assessment

pursuant to paragraphs 1 and 2 of subsection A of this section shall

be proportionately adjusted in accordance with such reassessment.

F. Nothing in this section shall be construed as relieving

property in such project area from being assessed as provided in the

Ad Valorem Tax Code of the Oklahoma Statutes, or as relieving owners

of such property from paying a uniform rate of taxes, as required by

Section 5 of Article X of the Oklahoma Constitution.

G. Subject to constitutional exemptions, if property in an

increment district is owned by a public entity and is leased to or

operated for a private use, including, without limitation, use by a

not-for-profit corporation or trust, the portion of the property so

leased or operated shall be assessed by the county assessor as if

such portion of the property were taxable, and, during the term of

the increment district, the public entity owning such property shall

pay or require the user thereof to pay ad valorem taxes or an in

lieu ad valorem tax payment in an amount not less than the amount

that would have resulted if taxes had otherwise been levied on such

portion of the property. If property subject to ad valorem tax in

an increment district is acquired by a private not-for-profit

corporation or public or private trust, it shall continue to be

assessed and subject to ad valorem taxes or an in lieu ad valorem

payment by the user thereof until termination of the increment

district unless and only to the extent of the portion of the

property and the use thereof that is:

1. Acquired to implement the project plan;

2. Converted to a new tax-exempt use by a tax-exempt user; or

3. Entitled to claim a constitutional exemption notwithstanding

statutory provisions.

During the period of an increment district, such nonexempt uses and

interests are severable for purposes of ad valorem and in lieu of ad

valorem assessment and payments, notwithstanding any statutory

provisions to the contrary.