The bill amends Section 2889 of Title 68 of the Oklahoma Statutes, which pertains to the classification of homesteads for ad valorem taxation. It modifies the exemption amount for homesteads, establishing that each homestead will be exempt from all forms of ad valorem taxation up to $1,000 of the assessed valuation for tax years 1988 through 2026. For the tax year 2027 and subsequent years, the exemption amount increases to $5,000.

Additionally, the bill clarifies that these exemptions are provided pursuant to Section 1 of Article XII-A of the Oklahoma Constitution. The effective date for this act is set for November 1, 2026.