Senate Bill No. 1121 establishes the Joint Interim Committee on the Elimination of Ad Valorem Taxes, which will consist of ten members—five from the Senate and five from the House of Representatives. The committee is tasked with conducting a comprehensive study to explore alternative taxation methods that could replace local tax revenue lost due to the elimination of ad valorem taxes. The committee will evaluate various aspects of potential alternative taxes, including the authority of political subdivisions to impose them, necessary tax rates to maintain revenue levels, and the need for redistribution mechanisms to address disparities in local tax revenue.

The bill mandates that the committee submit a written report with findings and recommendations to the Legislature by July 1, 2028, and it will be dissolved on January 1, 2030. The act is set to take effect on November 1, 2025, contingent upon the passage of the relevant legislation from the 1st Session of the 60th Oklahoma Legislature.