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ENGROSSED HOUSE
BILL NO. 3901 By: Pfeiffer of the House
and
Montgomery of the Senate
[ revenue and taxation - Court of Tax Review -
expanding jurisdiction of court in certain cases -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2 021, Section 3024, is
amended to read as follows:
Section 3024. A. There is hereby re -created a Court of Tax
Review. For each case brought before the Court of Tax Review, the
Chief Justice of the Oklahoma Supreme Court shall assign the case to
a judicial administrative district in which no property that is the
subject of the case is located . The presiding judge of the j udicial
administrative district to which the case is assigned sha ll appoint
a panel of three judges of the district court, who shall determine
in what county the case will be heard. A majority of the three-
judge panel shall be required to render a decisio n in each case.
The Oklahoma Supreme Court shall establish court rules for the Court
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of Tax Review and the Clerk of the Oklahoma Supreme Court shall
serve as Clerk of the Court of Tax Review.
B. The Court of Tax Review is hereby vested with jurisdiction
over and shall hear:
1. Complaints challenging an order of the county board of
equalization sustaining a valuation of real or personal property
with an assessed fair cash value in excess of Three Million Dollars
($3,000,000.00) as authorized by Section 2880.1 of this title, for
which a scheduling conference shall be required within twenty (20)
days of the answer filed by the county assessor;
2. Complaints regarding valuation of public service corporation
property by the State Board of Equalization as auth orized by Section
2881 of this title, for which a scheduling conference shall be
required within twenty (20) days of the answer filed by the State
Board of Equalization;
2. 3. Complaints regarding actions of the State Board of
Equalization regarding eithe r intracounty or interc ounty property
value equalization as authorized by Section 2882 of this title; and
3. 4. Appeals as authorized by Section 2830 of this title
concerning Category 2 or Category 3 noncompliance as determined by
the Oklahoma Tax Commiss ion. The Court of Tax Review shall
determine if a county deemed to be in Category 3 noncompliance is
required to reimburse the Oklahoma Tax Commission from the county
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assessor's budget for all costs incurred as a result of the
assumption of the valuation function by the Commiss ion.
C. The Court of Tax R eview shall prescribe procedures for the
purpose of hearing properly filed protests against alleged illegal
levies, as shown on the annual budgets filed with the State Auditor
and Inspector. The Court shal l reconvene as often as deemed
necessary by the Court until final determination has been made as to
all protested levies. The judges shall be paid their traveling and
living expenses while acting as members of the Court, out of the
funds now provided by l aw for payment of distr ict judges' expenses
when holding court outside the counties of their residence.
Decisions of the Court of Tax Review concerning alleged illegal
levies shall be subject to the provisions of Sections 3025, 3026,
3027, 3028 and 3029 o f this title.
D. The Court of Tax Review as it ex isted prior to July 1, 1997,
shall cease to exist and all duties and responsibilities of such
court, except as provided in this section, shall be transferred to
the Court of Tax Review as re -created in this section.
E. All cases which have not been submit ted for determination in
the Court of Tax Review as it existed prior to July 1, 1997, shall
be transferred to the Court of Tax Review as it exists after July 1,
1997, for disposition. All cases which have been submitted by the
parties for determination in the Court of Tax Review prior to July
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1, 1997, shall remain with the panel to which they have been
assigned for final determination.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 28 80.1, is
amended to read as follows:
Section 2880.1 A. Both the taxpayer and the county assessor
shall have the right of appeal from any order of the county board of
equalization sustaining a valuation of real or personal property at
an assessed fair cas h value in excess of Three Million Dollars
($3,000,000.00) to the district court of the same county Court of
Tax Review, and right of appeal of either may be either upon
questions of law or fact including value, or upon both questions of
law and fact. Appeals from any other order of the county board of
equalization shall be filed in the district court of the same
county. The county assessor is the proper party defendant in any
appeal to the district court or Court of Tax Review brought by the
taxpayer. The taxpayer is the proper p arty defendant in any appea l
to the district court or Court of Tax Review brought by the county
assessor. In either case, the county board of equalization shall
not be considered a party in any litigation from an appeal brought
pursuant to this section. In case of appeal the trial in the
district court or Court of Tax Review shall be de novo. Provided,
the county assessor shall not be permitted to appeal an order of the
county board of equalization upon a question of the
constitutionality of a law upon which t he board based its order, b ut
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the county assessor is hereby authorized in such instance to request
a declaratory judgment to be rendered by the district court or Court
of Tax Review in cases involving real or personal prope rty with an
assessed fair cash value in excess of Three Million D ollars
($3,000,000.00).
B. Notice of appeal shall be filed with the county clerk as
secretary of the county board of equalizat ion, which appeal shall be
filed in the district court or Court of Tax Review, as the case may
be, within thirty (30) calendar da ys of the date the board of
equalization order was mailed, or in the event that the order was
delivered, from the date of de livery. It shall be the du ty of the
county clerk to preserve all c omplaints and to make a record of all
orders of the board and bot h the complaint and orders shall be a
part of the record in any case appealed to the district court or
Court of Tax Review from the county board of equali zation.
C. Either the taxpayer or th e county assessor may appeal from
the district court or Court of Tax Review to the Supreme Court, as
provided for in the Code of Civil Procedure, but no matter shall be
reviewed on such appeal wh ich was not presented to th e district
court or Court of Tax Review.
D. In such appeals to the district court or Court of Tax Review
and to the Supreme Court and in requests for declaratory judgment it
shall be the duty of the district attorney to appear for and
represent the county asse ssor. The General Counsel or an attorney
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for the Tax Commission may appear in such appeals or requests for
declaratory judgment on behalf of the county assessor, either upon
request of the district attorney for assistance, or upo n request of
the county assessor. It shall be the mand atory duty of the board of
county commissioners and the county ex cise board to provide the
necessary funds to enable the county assessor to pay the costs
necessary to be incurred in perfecting appeals and requests for
declaratory judgment made by the count y assessor to the courts.
E. In all appeals taken by the county assessor the presumption
shall exist in favor of the correctness of the county assessor 's
valuation and the procedure followed by the co unty assessor.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 2877, is
amended to read as follows:
Section 2877. A. Upon receipt of an appeal from action by the
county assessor on the form prescribed by the Oklahoma Tax
Commission, the secretary of the county board of equalization shal l
fix a date of hearing, at which time said board shall be authorized
and empowered to take evidence pertinent to said appeal; and for
that purpose, is authorized to compel the attendance of witnesses
and the production of books, records, and papers by sub poena, and to
confirm, correct, or adjust the valuation of real or personal
property or to cancel an assessment of personal property added by
the assessor not listed by the taxpayer if the personal property is
not subject to taxation or if the taxpayer is not responsible for
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payment of ad valorem taxes upon such property. The secretary of
the board shall fix the dates of the hearings provided for in this
section in such a manner as to ensure that the board is able to hear
all complaints within the time pro vided for by law. In any county
with a population less th an three hundred thousand ( 300,000)
according to the latest Federal Decennial Census, the county board
of equalization shall provide at least three dates on which a
taxpayer may personally appear an d make a presentation of evidence.
At least ten (10) days shall intervene between ea ch such date. No
final determination regarding valuation protests shall be made by a
county board of equalization until the taxpayer shall have failed to
appear for all three such dates. The county board of equalization
shall be required to follow the pr ocedures prescribed by the Ad
Valorem Tax Code or administrative rules and regulations promulgated
pursuant to such Code governing the valuation of real and personal
property. The county board of equalization shall not modify a
valuation of real or person al property as established by the county
assessor unless such modification is explained in writing upon a
form prescribed by the Oklahoma Tax Commission. The affidavits
prescribed in paragraph 2 of subsection E of this section w ill be
maintained by the co unty board of equalization as part of the
hearing record. Each decision of the county board of equalization
shall be explained in writing upon a form prescribed by the Ok lahoma
Tax Commission. The county board of equalization s hall make a
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record of each proceeding involving an appeal from action by the
county assessor either in transcribed or tape recorded form.
B. In all cases where the county assessor has, without givi ng
the notice required by law, increased the valuation of property as
listed by the taxpayer, and the taxpayer has knowledge of such
adjustment or addition, the taxpayer may at any time prior to the
adjournment of the board, file an appeal in the form and manner
provided for in Section 2876 of this title. Therea fter, the board
shall fix a date of hearing, notify the taxpayer, and conduct the
hearing as required by this section.
C. The taxpayer or agent may appear at the scheduled hearing
either in person, by telephone or other electronic means, or by
affidavit.
D. If the taxpayer or agen t fails to appear before the county
board of equalization at the scheduled hearing, unless advance
notification is given for the reason of absence, the county shall be
authorized to assess against the taxpayer the costs incurred by the
county in preparatio n for the scheduled hearing. If such costs are
assessed, payment of the costs shall be a prerequisite to the filing
of an appeal to the district court or Court of Tax Review. A
taxpayer that gives advance notification of their abs ence shall be
given the opportunity to reschedule the hearing date.
E. 1. In order to increase taxpayer transparency, a member of
the board of equalization shall not directly or indirectly
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communicate with the county assessor or any deputy assessor or
designated agent on any matte r relating to any pending appeal before
the board of equalization prior to the actual hearing.
2. Prior to the presentation of any evidence at a county board
of equalization hearing, each member of the board hearing the
protest must sign an affidavit stat ing the member is not in
violation of paragraph 1 of this subsection.
3. Prior to the presentation of any evidence at a county board
of equalization hearing, all parti es to the proceeding must sign an
affidavit stating that the evidence being presented is true to the
best of their belief and knowledge.
4. The provisions of paragraph 1 of this subsection shall not
apply to a routine communication between the county asse ssor and the
board of equalization that relates to the admini stration of an
appraisal roll, including a communication made in connection with
the certification, correction, or collection of an account that is
not the subject of a pending appeal.
5. The affidavit required in paragraph 2 of this subsection
shall be in the following form: "My name is [insert name]. I have
not communicated with another person in violation of subsection E of
Section 2877 of Title 68 of the Oklahoma Statutes. "
6. The affidavit required in paragraph 3 of this subsection
shall be in the following form: "My name is [insert name]. The
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information I will present today is true and correct to the best of
my belief and knowledge. "
SECTION 4. AMENDATORY 68 O.S . 2021, Section 2945, is
amended to read as follows:
Section 2945. A. If any person sh all knowingly and willfully
make or give under oath or affirmation a false and fraudulent list
of taxable personal property, or a false and fraudulent list of any
taxable personal property under the control of the person or
required to be listed by the per son, or shall knowingly and
willfully make false answer to any question which may be put under
oath by any person, board or commission authorized to examine
persons under oath in relation to the value or amount of any taxable
personal property, the person shall be deemed guilty of the felony
of perjury, and upon conviction shall be punished as is provided by
law for the punishment of the felony of perjury.
B. If any taxpayer, or any official, employee, or agent of the
taxpayer, shall fail or refuse, upon p roper request, to permit the
inspection of any property or the examination of any books, records
and papers by any person authorized by the Ad Valorem Tax Code to do
so, or shall fail or refuse to comply with any subpoena duces t ecum
legally issued under a uthority of this Code, the taxpayer shall be
stopped from questioning or contesting the amount or validity of any
assessment placed upon the property of the taxpayer to the board of
equalization. Nothing in this section shall im pair or impede the
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right of the taxpayer to appeal any order of the board of
equalization to the district court or Court of Tax Review as
provided for in Section 2880.1 of this title.
SECTION 5. This act shall become effective January 1, 2023.
Passed the House of Representatives the 22nd day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate