A. For tax years beginning after December 31, 2011, there shall be allowed a credit against the tax imposed by Section 2355 of this title for owners of residential real property whose primary residence was damaged or destroyed in a natural disaster occurring after December 31, 2011, for which a Presidential Major Disaster Declaration was issued or with respect to calendar year 2012 or calendar year 2013 for which a Presidential Major Disaster Declaration was not issued. The amount of the credit shall be the difference between the ad valorem property tax paid on such property and improvements in the year prior to the damage or destruction and the amount of ad valorem property tax paid on the property and improvements the first year after the improvement is complete. For purposes of this credit, the amount of ad valorem property tax paid the first year after the improvement is complete shall be based on the same or similar square footage as the property which was damaged or destroyed. For purposes of this section, a "natural disaster" shall mean a weather or fire event for which a Presidential Major Disaster Declaration was issued; provided, however, that with respect to damage or destruction caused by a tornado occurring in calendar year 2012 or in calendar year 2013 for which a Presidential Major Disaster Declaration was not issued, "natural disaster" shall include such a tornadic occurrence.

B. The credit shall be a refundable credit. Eligible taxpayers shall be entitled to claim this credit for five (5) consecutive years. After the first year the credit is claimed, the amount of the credit shall be eighty percent (80%) of the previous year's credit. If the taxpayer has no income tax liability, or if the credit exceeds the amount of the income tax liability of the taxpayer, then the credit, or balance thereof, shall be paid out in the same manner and out of the same fund as refunds of income taxes are paid and so much of the fund as is necessary for such purposes is hereby appropriated.

C. In order to qualify for this credit:

1. The property shall have been damaged or destroyed by a natural disaster after December 31, 2011;

2. The property shall be within an area which has been declared a federal disaster area;

3. The property shall be the primary residence of the owner both prior to and after the natural disaster;

4. The owner shall have been granted a homestead exemption or be eligible to claim a homestead exemption both prior to and after the natural disaster;

5. The primary residence shall be repaired or rebuilt on the same property as it existed prior to the natural disaster; and

6. The primary residence shall be repaired or rebuilt and used as the primary residence no later than December 31, 2015, with respect to the calendar year 2012 or 2013 natural disaster and no later than thirty-six (36) months after the date of any natural disaster occurring on or after January 1, 2014.

D. The credit shall not be allowed if the property is transferred or title is changed or conveyed as defined in Section 2802.1 of this title. Any credit claimed and allowed prior to the transfer of the property or the change or conveyance of title shall not be affected.

E. The Oklahoma Tax Commission shall promulgate any necessary rules and develop any necessary forms to implement the provisions of this section.

Added by Laws 2013, c. 370, § 5, emerg. eff. May 29, 2013. Amended by Laws 2014, c. 215, § 5, emerg. eff. May 2, 2014; Laws 2014, c. 329, § 5, emerg. eff. May 23, 2014.