Oklahoma 2022 Regular Session

Oklahoma House Bill HB2775 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
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3	34		BILL NO. 2775 By: Pfeiffer of the House
4	35
5	36		and
6	37
7		-	Montgomery and Pederson of
8		-	the Senate
9		-
10		-
	38	+	Montgomery of the Senate
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15	43		An Act relating to revenue and taxation; amending 68
16	44		O.S. 2011, Sections 2802, as amended by Sect ion 1,
17	45		Chapter 266, O.S.L. 2018 and 2875, as amended by
18	46		Section 1, Chapter 142, O.S.L. 2015 (68 O.S. Supp.
19	47		2020, Sections 2802 and 2875), which relate to the Ad
20	48		Valorem Tax Code; modifying definition; modifying
21	49		provisions related to valuation of personal property;
22	50		modifying duties of the Ad Valorem Division of th e
23	51		Oklahoma Tax Commission; and providing an effective
24	52		date.
25	53
26	54
27		-	~~SUBJECT: Revenue and taxation~~
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28	56
29	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
30		-
31	58		SECTION 1. AMENDATORY 68 O.S. 2011, Section 2802, as
32	59		amended by Section 1, Chapter 266, O.S.L. 2018 (68 O.S. Sup p. 2020,
33	60		Section 2802), is amended to read as follows:
34		-
35	61		Section 2802. As used in Section 2801 et seq. of this title:
36		-
37	62		1. "Accepted standards for mass appraisal practice" means those
38	63		standards for the collect ion and analysis of information about
39	64		taxable properties within a taxing jurisdiction permitting the
40	65		accurate estimate of fair cash value for similar properties in the
41	66		jurisdiction either without direct observation of such similar
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42	94		properties or without dir ect sales price information for such
43	95		similar properties using a reliable statistical or other method to
44	96		estimate the values of such properties;
45		-	ENR. H. B. NO. 2775 Page 2
46	97		2. "Additional homestead exemption" means the exemption
47	98		provided by Section 2890 of this title;
48		-
49	99		3. "Assessor" means the county assessor and, unless the context
50	100		clearly requires otherwise, deputy assessors and persons employed by
51	101		the county assessor in performance of duties imposed by law;
52		-
53	102		4. "Assess and value" means to establish the fair cash value
54	103		and taxable fair cash value of taxable real and personal proper ty
55	104		pursuant to requirements of law;
56		-
57	105		5. "Assessed valuation" or "assessed value" means the
58	106		percentage of the fair cash value of personal property, or the
59	107		percentage of the taxable fair cash value of real pro perty, pursuant
60	108		to the provisions of Sections 8 a nd 8B of Article X of the Oklahoma
61	109		Constitution, either of individual items of personal property,
62	110		parcels of real property or the aggregate total of such individual
63	111		taxable items or parcels within a jurisdic tion;
64		-
65	112		6. "Assessment percentage" means the perce ntage applied to
66	113		personal property and real property pursuant to Section 8 of Article
67	114		X of the Oklahoma Constitution;
68		-
69	115		7. "Assessment ratio" means the relationship between assessed
70	116		value and taxable fair cas h value for a county or for use categories
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71	144		within a county expressed as a percentage determined in the annual
72	145		equalization ratio study;
73		-
74	146		8. "Assessment roll" means a computerized or noncomputerized
75	147		record required by law to be kept by the county assessor a nd
76	148		containing information about property within a taxing jurisdiction;
77		-
78	149		9. "Assessment year" means the year beginning January 1 of each
79	150		calendar year and ending on December 31 preceding the following
80	151		January 1 assessment date;
81		-
82	152		10. "Circuit breaker" means the form of property tax relief
83	153		provided by Sections 2904 through 2911 of this title;
84		-
85	154		11. "Class of subjects" means a category of property
86	155		specifically designated pursuant to provisions of the Oklahoma
87	156		Constitution for purposes of ad valorem taxation;
88		-
89	157		12. "Code" means the Ad Valorem Tax Code, Section 2 801 et seq.
90		-	of this title; ENR. H. B. NO. 2775 Page 3
91		-
	158	+	of this title;
92	159		13. "Coefficient of dispersion" means a statistical measure of
93	160		assessment uniformity for a category of property or for all property
94	161		within a taxing jurisdiction;
95		-
96	162		14. "Confidence level" means a statistical procedure for
97	163		determining the degree of reliability for use in reporting the
98	164		assessment ratio for a taxing jurisdiction;
99		-
100	165		15. "Cost approach" means a method used to establish the fair
101	166		cash value of property involving an estimate of current construction
102	167		cost of improvements, sub tracting accrued depreciation and adding
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103	195		the value of land including any loss in value that may be caused by
104	196		physical deterioration, functional obsolescence or economic
105	197		obsolescence and adding the value of t he land.
106		-
107	198		a. Physical deterioration is a cause of depreciation that
108	199		is a loss in value due to ordinary wear and tear and
109	200		the forces of nature.
110		-
111	201		b. Functional or internal obsolescence is the loss in
112	202		value of a property resulting from changes in tastes,
113	203		preferences, technical innovations or market
114	204		standards.
115		-
116	205		c. Economic or external obsolescence is a cause of
117	206		depreciation that is a loss in value as a result of
118	207		impairment in utility and desirability caused by
119	208		factors outside the boundaries of the property or loss
120	209		of value in a property (relative to the cost of
121	210		replacing it with a property of equal utility) that
122	211		stems from factors external to the property ;
123		-
124	212		16. "County board of equalization" means the board which, upon
125	213		hearing competent evidence, has the authority to correct and adjust
126	214		the assessment rolls in its respective county to conform to fair
127	215		cash value and such other responsibilities as prescribed in Section
128	216		2801 et seq. of this title;
129		-
130	217		17. "Equalization" means the process for making adjustments to
131	218		taxable property values within a county by analyzing the
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132	246		relationships between assessed values and fair cash values in one or
133	247		more use categories within the county or between counties by
134	248		analyzing the relationship between assessed value and fair cash
135		-	value in each county; ENR. H. B. NO. 2775 Page 4
136		-
	249	+	value in each county;
137	250		18. "Equalization ratio study" means the analysis of the
138	251		relationships between assessed values and fair cash values in the
139	252		manner provided by law;
140		-
141	253		19. "Fair cash value" or "market value" means the value or
142	254		price at which a willing buyer would pur chase property and a willing
143	255		seller would sell pr operty if both parties are knowledgeable about
144	256		the property and its uses and if neither party is under any undue
145	257		pressure to buy or sell and for real property shall mean the value
146	258		for the highest and best us e for which such property was actually
147	259		used, or was previously classified for use, during the calendar year
148	260		next preceding the applicable January 1 assessment date;
149		-
150	261		20. "Homestead exemption" means the reduction in the taxable
151	262		value of a homestead as autho rized by law;
152		-
153	263		21. "Income and expense approach" means a method to estimate
154	264		fair cash value of a property by determining the present value of
155	265		the projected income stream;
156		-
157	266		22. "List and assess" means the process by which taxable
158	267		property is discovered, its description recorded for purposes of ad
159	268		valorem taxation and its fair cash value and taxable fair cash value
160	269		are established;
161	270
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162	297		23. "Mill" or "millage" means the rate of tax imposed upon
163	298		taxable value. One (1) mill equals One Dollar ($1.00) of tax for
164	299		each One Thousand Dollars ($1,000.00) of taxable val ue;
165		-
166	300		24. "Multiple regression analysis" means a statistical
167	301		technique for estimating unknown data on the basis of known and
168	302		available data;
169		-
170	303		25. "Parcel" means a contiguous area of land described in a
171	304		single description by a deed or other instrument or as one of a
172	305		number of lots on a plat or plan, separately owned and capable of
173	306		being separately conveyed;
174		-
175	307		26. "Sales comparison approach" means the collection,
176	308		verification, and screening of sales data, stratif ication of sales
177	309		information for purposes of comp arison and use of such information
178	310		to establish the fair cash value of taxable property;
179		-	ENR. H. B. NO. 2775 Page 5
180	311		27. "State Board of Equalization" means the Board responsible
181	312		for valuation of railroad, airline and public service c orporation
182	313		property and the adjustment and equali zation of all property values
183	314		both centrally and locally assessed;
184		-
185	315		28. "Taxable value" means the percentage of the fair cash value
186	316		of personal property or the taxable fair cash value of real
187	317		property, less applicable exemptions, upon which an ad valorem t ax
188	318		rate is levied pursuant to the provisions of Section 8 and Section
189	319		8B of Article X of the Oklahoma Constitution;
190	320
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191	347		29. "Taxable fair cash value" means the fair cash value of
192	348		locally assessed real property as capped pursuant to Section 8B of
193	349		Article X of the Oklahoma Constitution;
194		-
195	350		30. "Use category" means a subcategory of real property, that
196	351		is either agricultural use, residential use or commercial/industrial
197	352		use but does not and shall not constitute a clas s of subjects within
198	353		the meaning of the Oklahoma Constitution for purposes of ad valorem
199	354		taxation;
200		-
201	355		31. "Use value" means the basis for establishing fair cash
202	356		value of real property pursuant to the requirement of Section 8 of
203	357		Article X of the Oklahoma Cons titution; and
204		-
205	358		32. "Visual inspection program" me ans the program required in
206	359		order to gather data about real property from physical examination
207	360		of the property and improvements in order to establish the fair cash
208	361		values of properties so inspected at least once each four (4) years
209	362		and the fair cash values of similar properties on an annual basis.
210		-
211	363		SECTION 2. AMENDATORY 68 O.S. 2011, Section 2875, as
212	364		amended by Section 1, Chapter 142, O.S.L. 2015 (68 O.S. Supp. 2020 ,
213	365		Section 2875), is amended to read as follows:
214		-
215	366		Section 2875. A. T here is hereby created within the Oklahoma
216	367		Tax Commission the Ad Valorem Division. The Ad Valorem Division
217	368		shall have the authority and it shall be its duty to:
218		-
219	369		1. Confer with and assist county assessors a nd county boards of
220	370		equalization in the performan ce of their duties, to the end that all
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221	398		assessments of property be made relative, just and uniform and that
222	399		real property and tangible personal property may be assessed at its
223	400		fair cash value estimated at th e price it would bring at a fair
224		-	voluntary sale; ENR. H. B. NO. 2775 Page 6
225		-
	401	+	voluntary sale;
226	402		2. Prescribe forms with numbers ascribed thereto for the county
227	403		assessors' use in assessment procedure, including property
228	404		classification and appraisal forms;
229		-
230	405		3. Provide technical assistance to county asse ssors and county
231	406		boards of equalization in the se rvices of appraisal engineers;
232		-
233	407		4. Provide from year to year schedules of values of personal
234	408		property in accordance with Uniform Standards of Professional
235	409		Appraisal Practice (USPAP) and International Associa tion of
236	410		Assessing Officers (IAAO) requirements to aid county assessors in
237	411		the assessment of personal property;
238		-
239	412		5. Conduct training schools, institutes, conferences and
240	413		meetings for the purpose of improving the qualifications of county
241	414		assessors and their deputies as required by law;
242		-
243	415		6. Prepare and furn ish from time to time to county assessors an
244	416		assessors' manual. Such manual shall include, but not be limited
245	417		to, valuation methodologies for property in a county for which no
246	418		comparable property exists in order for a county assessor to
247	419		establish a value for ad valorem tax purposes. The manual shall
248	420		include information concerning valuation of hazardous waste disposal
249	421		facilities and such other types of facilities as may be requested by
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250	449		the county assessor fo r which the assessor does not have adequate
251	450		data to value such property;
252		-
253	451		7. Render such other assistance as may be conducive to the
254	452		proper assessment of property for ad valorem taxation;
255		-
256	453		8. Recommend rules to the Tax Commission establishing uniform
257	454		procedures and standards for the appraisal of real pro perty by
258	455		county assessors;
259		-
260	456		9. Develop assessment manuals for the valuation of manufactured
261	457		homes and periodic updates for such manuals for use by county
262	458		assessors; and
263		-
264	459		10. Promptly notify county assessors, county treasurers and
265	460		members of county excise a nd equalization boards of any changes to
266	461		the laws relating to ad valorem taxation.
267		-
268	462		B. The county assessors shall not use any form not prescribed
269		-	or approved by the A d Valorem Division. ENR. H. B. NO. 2775 Page 7
270		-
	463	+	or approved by the Ad Valorem Division.
271	464		C. Each county asses sor shall comply with the rules and guides
272	465		adopted by the Oklahoma Tax Commission.
273		-
274	466		D. The Ad Valorem Division, upon request of any county
275	467		assessor, shall furnish to the county assessor any information shown
276	468		by its files and records as to any real and pers onal property,
277	469		subject to taxation, including inc ome and expense data as shown by
278	470		income tax returns, to the end that no property shall escape
279	471		taxation, and this information is to be furnished notwithstanding
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280	499		any statute that such files and records shall b e confidential and
281	500		privileged.
282		-
283	501		E. The Ad Valorem Division shall be authorized to obtain
284	502		information relating to the ownership, location, taxable status or
285	503		valuation for purposes of ad valorem taxation of real or personal
286	504		property from any state agency, bo ard, commission, department,
287	505		authority or other d ivision of state government if necessary to
288	506		respond to a request by a county assessor as provided by subsection
289	507		D of this section. Such information shall be confidential and
290	508		privileged and shall only be rel eased to a county assessor in order
291	509		to locate, discover and correctly value taxable property as required
292	510		by law.
293		-
294	511		SECTION 3. This act shall become effective November 1, 2021 .
295		-	ENR. H. B. NO. 2775 Page 8
296		-	Passed the House of Representatives the 3rd day of March, 2021.
297		-
298		-
299		-
300		-
301		-	Presiding Officer of the House
302		-	of Representatives
303		-
304		-
305		-	Passed the Senate the 20th day of April, 2021.
306		-
307		-
308		-
309		-
310		-	Presiding Officer of the Senate
311		-
312		-
313		-
314		-	OFFICE OF THE GOVERNOR
315		-	Received by the Office of the Governor t his ____________________
316		-	day of ___________________, 20_______, at _______ o'clock _______ M.
317		-	By: _________________________________
318		-	Approved by the Governor of the State of Oklahoma this _________
319		-	day of ___________________, 20_______, at _______ o'clock _ ______ M.
320		-
321		-
322		-	_________________________________
323		-	Governor of the State of Oklahoma
324		-
325		-	OFFICE OF THE SECRETARY OF STATE
326		-	Received by the Office of the Secretary of State this __________
327		-	day of ___________________, 20_______, at _______ o'clock _______ M.
328		-	By: _________________________________
329		-
	512	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	513	+	April 6, 2021 - DO PASS