Okla. Admin. Code § 710:1-3-80

Current through Vol. 42, No. 4, November 1, 2024

Section 710:1-3-80 - Procedures for partial release of tax warrant or lien

(a) Partial release of a tax warrant or lien may be issued under the following circumstances:

(1) Where there is a short sale and the lien of an outstanding tax warrant is unenforceable or uncollectible due to the existence of a prior lien(s) held on the parcel of realty, and the amount of the outstanding prior lien(s) exceeds the amount such property would bring at a sale of the property for fair market value;

(2) Where the lien of an outstanding tax warrant is unenforceable or uncollectible due to the existence of a prior outstanding mortgage lien(s) held by the requesting party on the parcel of realty, and the amount of the outstanding mortgage lien(s) exceeds the amount such property would bring at a foreclosure sale;

(3) Where a mortgage lien(s) has been foreclosed in an action in a District Court but where there has been a failure to name the State of Oklahoma ex rel, Oklahoma Tax Commission as a party defendant in the foreclosure action and there exists no likelihood of collection or enforceability of a tax warrant against a particular parcel of realty;

(4) Where the holder of a mortgage lien(s) has taken a deed in lieu of foreclosure and there exists no likelihood of collection or enforceability of a tax warrant against a particular parcel of realty;

(5) Where the applicant is not the taxpayer named in the tax warrant and acquired a parcel of realty encumbered by an Oklahoma Tax Commission tax lien, whether it be at a County Tax Resale or any other situation where title was passed from the taxpayer named in the tax warrant to the applicant without properly extinguishing the tax warrant;

(6) Where there exists no likelihood of collection or enforceability of a tax warrant against a particular parcel of realty because the applicant does not have enough equity in the property to satisfy the tax warrant in full;

(7) Where the applicant seeks a subordination of an outstanding tax warrant to facilitate the refinancing of a prior mortgage; or

(8) Where the denial of the partial release would result in an undue expense or hardship on the requesting party.

(b) For purposes of this Section, under the situations described in (a) of this Section, "adequate consideration" for a partial release is defined as follows:

(1) In a situation described in (a)(1), (a)(2) or (a)(3) of this Section, payment of ten percent (10%) of the tax warrant inclusive of interest and penalty, provided such an amount is not less than Five Hundred Dollars ($500.00).

(2) In a situation described in (a)(4) of this Section, payment of the principal tax liability on the tax warrant, provided such an amount is not less than Five Hundred Dollars ($500.00).

(3) In a situation described in (a)(5) or (a)(6) of this Section, payment of all the net proceeds from the sale.

(4) In a situation described in (a)(7) of this Section, payment of all the equity extracted. If there is no equity being withdrawn, a payment equal to ten percent (10%) of the tax warrant amount inclusive of both interest and penalty is to be made, provided such amount is not less than Five Hundred Dollars ($500.00).

(5) Pursuant to 68 O.S. Section 214, a tax warrant may be released without the payment of any consideration only when the Tax Commission determines that the warrant, certificate or judgment is clouding the title of such property by reason of error in the description of properties or similarity of names.

(6) In any case where the Commission shall determine that the amount prescribed by (1) through (5) of this subsection shall be excessive or inadequate, or in a situation described in (a)(8) of this Section, then adequate consideration shall be such amount as the Commission shall prescribe.

Okla. Admin. Code § 710:1-3-80

Amended at 10 Ok Reg 3819, eff 7-12-93

Amended by Oklahoma Register, Volume 36, Issue 22, August 1, 2019, eff. 8/11/2019

Amended by Oklahoma Register, Volume 41, Issue 22, August 1, 2024, eff. 8/11/2024