Help Center: UNDERSTANDING TAX WARRANTS AND PARTIAL RELEASES

A tax warrant is a legal document filed by the Oklahoma Tax Commission when state taxes remain unpaid after the taxes become delinquent. Think of it as similar to a court judgment—it gives the state legal authority to collect the tax debt.

When the Tax Commission issues a tax warrant, it creates a lien (a legal claim) against your property. This lien is filed with the county clerk and becomes a public record.

There are several reasons why a tax warrant might be attached to your property:

1. You owe the taxes

•  You have unpaid state taxes (income tax, sales tax, etc.)

•  The tax became delinquent and the Tax Commission filed a warrant

•  The warrant was recorded against your property as a lien

2. You bought property with an existing lien

•  The previous owner was delinquent on their taxes owed

•  The warrant wasn't paid off when the property was acquired

•  The lien "followed" the property to you as the new owner

3. There's an error

•  Wrong property description in the warrant

•  Your name is similar to the actual taxpayer's name

•  Clerical error in filing the lien

When there's a tax lien on your property:

•  You cannot sell or refinance the property without addressing the lien

•  The lien must be paid off (or released) at closing

•  It appears on title searches and credit reports

•  The state has priority over most other debts (with some exceptions)

A partial release means the Oklahoma Tax Commission agrees to remove the tax lien from your specific property without requiring full payment of the entire tax debt.  This process releases the lien from the specific property only. It does not invalidate the tax warrant against the Taxpayer as an individual. Tax warrants are not fully released unless paid in full. See 68 O.S. §§ 214, 215

A partial release is not the same as forgiving the debt. Instead, it means:

•  The lien is removed from your property only

•  You (or someone) pays a portion of what's owed

•  The remaining debt may still exist against other assets

The Tax Commission may grant a partial release in situations including but not limited to:

•  Standard Real Estate Transaction - When there are tax liens preventing your property sale from closing.

•  Foreclosures - When a mortgage lender forecloses and the Tax Commission wasn't notified of the proceeding.

•  County Tax Resale or acquired another method - When you bought property that already had a tax lien and you're not the person who owes the taxes.

•  Insufficient equity - When there's not enough equity in the property to cover the full tax debt.

•  Refinancing - When you need to refinance and want the lien moved to a lower priority.

•  Clouded title - When the SSNs or names differ from the actual property owner due to a filing error.

There is not an application fee. However, it is expected that an offer will be made in exchange for the lien to be released from the property depending on your property situation. The Tax Commissioners have discretion to adjust these amounts based on individual circumstances.

The amount depends on your situation, but typically:

•  Standard amount: 10% of the total tax warrant (including interest, penalties, and fees) or $500, whichever is more

•  Sale situations: All net proceeds from the sale or 10% of the total tax warrant (whichever is more)

•  Refinancing: The amount of equity you're taking out, or 10% of the total tax warrant if no equity is withdrawn

•  Error situations: No consideration if the warrant is on your property due to a filing error or name similarity

1. Gather documentation showing why you qualify for a partial release.
2. Submit an application with supporting documents. Click HERE to download the partial release application.

The amount shown on a tax warrant reflects the balance that was owed on the date the warrant was issued. After that date, the total amount due can change.

Under Oklahoma law, interest and penalties continue to accrue on unpaid taxes until the tax liability is fully paid. See 68 O.S. §§ 217 and 221. Because of this, the current balance owed may be higher than the amount listed on the original tax warrant.

For the most accurate and up-to-date payoff amount, taxpayers are encouraged to contact the Oklahoma Tax Commission (OTC), as additional interest and penalties may have accrued after the warrant was issued.

IMPORTANT THINGS TO REMEMBER

✓ A partial release only removes the lien from specific property—it doesn't eliminate the underlying tax debt in most cases

✓ Each situation is evaluated individually—the Tax Commissioners have discretion to adjust what is considered “adequate consideration” for lien release

✓ You should address tax warrants promptly, as interest and penalties continue to accrue

Contact the Oklahoma Tax Commission:

•  Send an email to partialrelease@tax.ok.gov  

•  Phone: (405) 522-9460