Oklahoma 2022 Regular Session

Oklahoma House Bill HB3901 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 3901 By: Pfeiffer and Boles of the
4		-	House
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	28	+	STATE OF OKLAHOMA
	29	+
	30	+	2nd Session of the 58th Legislature (2022)
	31	+
	32	+	CONFERENCE COMMITTEE
	33	+	SUBSTITUTE
	34	+	FOR ENGROSSED
	35	+	HOUSE BILL NO. 3901 By: Pfeiffer of the House
5	36
6	37		and
7	38
8	39		Montgomery of the Senate
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	46	+	CONFERENCE COMMITTEE SUBSTITUTE
	47	+
15	48		An Act relating to revenu e and taxation; amending 68
16	49		O.S. 2021, Section 3024, which relates to the Court
17	50		of Tax Review; modifying procedure of court;
18	51		expanding jurisdiction of court; amending 68 O.S.
19		-	2021, Sections 2880.1, 2877 and 2945, ~~which relate to~~
20		-	ad valorem tax protests; replacing ~~district court~~
21		-	with Court of Tax Review; and ~~providing an effective~~
22		-	date.
	52	+	2021, Sections 2880.1, 2835, 2871, 2877 and 2945,
	53	+	which relate to ad valorem tax protests; replacing
	54	+	district court with Court of Tax Review; and
	55	+	providing an effective date.
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26	59
27		-	SUBJECT: Revenue and taxation
28		-
29	60		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
30		-
31	61		SECTION 1. AMENDATORY 68 O.S. 2021, Section 3024, is
32	62		amended to read as follow s:
33		-
34	63		Section 3024. A. There is hereby re -created a Court of Tax
35	64		Review. For each case brought before the Court of Tax Review, t he
36	65		Chief Justice of the Oklahoma Supreme Court shall assign the case to
37	66		a judicial administrative district in which no property that is the
38	67		subject of the case is located . The presiding judge of the judicial
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39	94		administrative district to which the case is as signed shall appoint
40	95		a panel of three (3) judges of the district court or of any judicial
41	96		administrative district who are active or retired judges qualified
42	97		to preside over such cases , who shall determine in what county the
43	98		case will be heard. A majority of the three-judge panel shall be
44	99		required to render a decision in each case. A decision in each case
45	100		shall be made within twelv e (12) months of the case being assigned
46		-	to the three-judge panel. The Oklahoma Supreme ~~C ourt~~ shall ~~ENR. H. B. NO. 3901 Page 2~~
	101	+	to the three-judge panel. The Oklahoma Supreme Court shall
47	102		establish court rules for t he Court of Tax Review and the Clerk of
48	103		the Oklahoma Supreme Court shall serve as Clerk of the Court of Tax
49	104		Review.
50		-
51	105		B. The Court of Tax Review is hereby vested with jurisdiction
52	106		over and shall hear:
53		-
54	107		1. Complaints challenging an order of the county board of
55	108		equalization sustaining a valuation of real or personal property
56	109		with a fair cash value as determined by the county assessor in
57	110		excess of Three Million Dollars ($3,000,000.00) as authorized by
58	111		Section 2880.1 of this title , for which a scheduling confere nce
59	112		shall be required within twenty (20) days of the answer filed by the
60	113		county assessor;
61		-
62	114		2. Complaints regarding valuation of public service corporation
63	115		property by the State Board of Equalization as authorized by Section
64	116		2881 of this title, for which a scheduling conference shall be
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65	143		required within twenty (20) days of the answer filed by the State
66	144		Board of Equalization;
67		-
68	145		2. 3. Complaints regarding actions of the State Board of
69	146		Equalization regarding either intracounty or intercounty property
70	147		value equalization as authorized by Section 2882 of this title; and
71		-
72	148		3. 4. Appeals as authorized by Section 2830 of this title
73	149		concerning Category 2 or Category 3 nonc ompliance as determined by
74	150		the Oklahoma Tax Commission. The Court of Tax Review shall
75	151		determine if a county deemed to be in Category 3 noncompliance is
76	152		required to reimburse the Oklahoma Tax Commission from the county
77	153		assessor's budget for all costs incur red as a result of the
78	154		assumption of the valuation function by the Commission.
79		-
80	155		C. The Court of Tax R eview shall prescribe procedures for the
81	156		purpose of hearing properly filed protests against alleged illegal
82	157		levies, as shown on the annual budgets filed wi th the State Auditor
83	158		and Inspector. The Court shall reconvene as often as deemed
84	159		necessary by the Court until final determination has been made as to
85	160		all protested levies. The judges shall be paid their traveling and
86	161		living expenses while acting as membe rs of the Court, out of the
87	162		funds now provided by law for payment of district judges ' expenses
88	163		when holding court outside the counties of their residence.
89	164		Decisions of the Court of Tax Review concerning alleged illegal
90	165		levies shall be subject to the provi sions of Sections 3025, 3026,
91		-	3027, 3028 and 3029 of this title. ENR. H. B. NO. 3901 Page 3
	166	+	3027, 3028 and 3029 of this title.
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93	193		D. The Court of Tax Review as it ex isted prior to July 1, 1997,
94	194		shall cease to exist and all duties and responsibilities of such
95	195		court, except as provided in this section, shall be transferr ed to
96	196		the Court of Tax Review as re -created in this section.
97		-
98	197		E. All cases which have not been submit ted for determination in
99	198		the Court of Tax Review as it existed prior to July 1, 1997, shall
100	199		be transferred to the Court of Tax R eview as it exists after Ju ly 1,
101	200		1997, for disposition. All cases which have been submitted by the
102	201		parties for determination in the Court of Tax Review prior to July
103	202		1, 1997, shall remain with the panel to which they have been
104	203		assigned for final determina tion.
105		-
106	204		SECTION 2. AMENDATORY 68 O.S. 2021, Section 2880.1, is
107	205		amended to read as follows:
108		-
109	206		Section 2880.1 A. Both the taxpayer and the county assessor
110	207		shall have the right of appeal from any order of the county board of
111	208		equalization sustaining a valuation o f real or personal property at
112		-	a fair cash value as determined by the ~~county~~ assessor in excess of
	209	+	a fair cash value as determined by the cou ny assessor in excess of
113	210		Three Million Dollars ($3,000,000.00) to the district court of the
114	211		same county Court of Tax Review, and right of appeal of either m ay
115	212		be either upon questions of law or fact including value, or upon
116	213		both questions of law and fact. Appeals from any other orde r of the
117	214		county board of equalization shall be filed in the district court of
118	215		the same county. The county assessor is the prope r party defendant
119	216		in any appeal to the district court or Court of Tax Review brought
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120	243		by the taxpayer. The taxpayer is the prope r party defendant in any
121	244		appeal to the district court or Court of Tax Review brought by the
122	245		county assessor. In either case, th e county board of equalization
123	246		shall not be considere d a party in any litigation from an appeal
124	247		brought pursuant to this section . In case of appeal the trial in
125	248		the district court or Court of Tax Review shall be de novo.
126	249		Provided, the county assessor sha ll not be permitted to appeal an
127	250		order of the county board of equalization upon a question of the
128	251		constitutionality of a law upo n which the board based its order, but
129	252		the county assessor is hereby authorized in such instance to request
130	253		a declaratory judgme nt to be rendered by the district court or Court
131	254		of Tax Review in cases involving real or personal property with a
132	255		fair cash value as determined by the county assessor in excess of
133	256		Three Million Dollars ($3,000,000.00) .
134		-
135	257		B. Notice of appeal shall be filed with the county clerk as
136		-	secretary of the county board of equalization, which ~~appeal~~ shall be ~~ENR. H. B. NO. 3901 Page 4~~
	258	+	secretary of the county board of equalization, which ap peal shall be
137	259		filed in the district court or Court of Tax Review, as the case may
138	260		be, within thirty (30) calendar days of the date the board of
139	261		equalization order was mailed, o r in the event that the order was
140	262		delivered, from the date of delivery. It shal l be the duty of the
141	263		county clerk to preserve al l complaints and to make a record of all
142	264		orders of the board and both the complaint and orders shall be a
143	265		part of the record in any case appealed to the district court or
144	266		Court of Tax Review from the county board of equalization.
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146	293		C. Either the taxpayer or the county assessor may appeal from
147	294		the district court or Court of Tax Review to the Supreme Court, as
148	295		provided for in the Code of Civil Procedure, but no matter shall be
149	296		reviewed on such appeal which was no t presented to the district
150	297		court or Court of Tax Review.
151		-
152	298		D. In such appeals to the district court or Court of Tax Review
153	299		and to the Supreme Court and in requests for declarat ory judgment it
154	300		shall be the duty of the district attorney to appear for and
155	301		represent the county assessor. The General Counsel or an attorney
156	302		for the Tax Commission may appear in such appeals or requests for
157	303		declaratory judgment on behalf of the county a ssessor, either upon
158	304		request of the district attorney for assistance, or upon re quest of
159	305		the county assessor. It shall be the m andatory duty of the board of
160	306		county commissioners and the county excise board to provide the
161	307		necessary funds to enable the coun ty assessor to pay the costs
162	308		necessary to be incurred in perfecting appeals and requests for
163	309		declaratory judgment made by the co unty assessor to the courts.
164		-
165	310		E. In all appeals taken by the county assessor the presumption
166	311		shall exist in favor of the correct ness of the county assessor 's
167	312		valuation and the procedure followed by the county assessor.
168		-
169	313		SECTION 3. AMENDATORY 68 O.S. 2021, Section 2877, is
170	314		amended to read as follows:
171		-
172	315		Section 2877. A. Upon receipt of an appeal from action b y the
173	316		county assessor on the form prescribed by the Oklahoma Tax
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174	343		Commission, the secretary of the county board of equalization s hall
175	344		fix a date of hearing, at which time said board shall be authorized
176	345		and empowered to take evidence pertinent to said appeal ; and for
177	346		that purpose, is authorized to compel the attendance of witnesses
178	347		and the production of books, records, and papers by subpoena, and to
179	348		confirm, correct, or adjust the valuation of real or personal
180	349		property or to cancel an assessment of personal p roperty added by
181		-	the assessor not listed by the taxpayer if the personal ~~property~~ is ~~ENR. H. B. NO. 3901 Page 5~~
	350	+	the assessor not listed by the taxpayer if the personal propert y is
182	351		not subject to taxation or if the taxpayer is not responsible for
183	352		payment of ad valorem taxes upon such property. The secretary of
184	353		the board shall fix the dates of the he arings provided for in this
185	354		section in such a manner as to ensure that the board is able to hear
186	355		all complaints within the time provided for by law. In any county
187	356		with a population less than three hundred thousand (300,000)
188	357		according to the latest Federal Decennial Census, the county board
189	358		of equalization shall provide at least three dates on which a
190	359		taxpayer may personally appear and make a presentation of evidence.
191	360		At least ten (10) days shall intervene between each such date. No
192	361		final determination re garding valuation protests shall be made by a
193	362		county board of equalization until the taxpayer shall have failed to
194	363		appear for all three such dates. The county board of equalization
195	364		shall be required to follow the procedures prescribed by the Ad
196	365		Valorem Tax Code or administrative rules and regulations promulgated
197	366		pursuant to such Code governing the valuation of real and personal
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198	393		property. The county board of equalization shall not modify a
199	394		valuation of real or personal property as established by the county
200	395		assessor unless such modification is explained in writing upon a
201	396		form prescribed by the Oklahoma Tax Commission. The affidavit s
202	397		prescribed in paragraph 2 of subsection E of this section will be
203	398		maintained by the county board of equalization as part of th e
204	399		hearing record. Each decision of the county board of equalization
205	400		shall be explained in writing upon a form prescribed by the Oklahoma
206	401		Tax Commission. The county board of equalization shall make a
207	402		record of each proceeding involving an appeal from acti on by the
208	403		county assessor either in transcribed or tape recorded form.
209		-
210	404		B. In all cases where the county assessor has, without g iving
211	405		the notice required by law, increased the valuation of property as
212	406		listed by the taxpayer, and the taxpayer has knowledge of such
213	407		adjustment or addition, the taxpayer may at any time prior to the
214	408		adjournment of the board, file an appeal in the form a nd manner
215	409		provided for in Section 2876 of this title. Thereafter, the board
216	410		shall fix a date of hearing, notify the taxpayer, a nd conduct the
217	411		hearing as required by this section.
218		-
219	412		C. The taxpayer or agent ma y appear at the scheduled hearing
220	413		either in person, by telephone or other electronic means, or by
221	414		affidavit.
222		-
223	415		D. If the taxpayer or agent fails to appear before the county
224	416		board of equalization at the scheduled hearing, unless advance
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225	443		notification is given for the reason of absence, the county shall be
226		-	authorized to assess against the taxpayer the costs incurred by the ~~ENR. H. B. NO. 3901 Page 6~~
	444	+	authorized to assess against the taxpayer the costs incurred by the
227	445		county in preparation for the scheduled hearing. If such co sts are
228	446		assessed, payment of the costs shall be a prerequisite to the filing
229	447		of an appeal to the district court or Court of Tax Review. A
230	448		taxpayer that gives advance notification of their absence shall be
231	449		given the opportunity to reschedule the hearing da te.
232		-
233	450		E. 1. In order to increase taxpayer transparency, a member of
234	451		the board of equalization shall not directly or indirectly
235	452		communicate with the county assessor or any deputy assessor or
236	453		designated agent on any matter relating to any pending appeal befo re
237	454		the board of equalization prior to the actual hearing.
238		-
239	455		2. Prior to the prese ntation of any evidence at a county board
240	456		of equalization hearing, each member of the board hearing the
241	457		protest must sign an affidavit stating the member is not in
242	458		violation of paragraph 1 of this subsection.
243		-
244	459		3. Prior to the presentation of any evidence a t a county board
245	460		of equalization hearing, all pa rties to the proceeding must sign an
246	461		affidavit stating that the evidence being presented is true to the
247	462		best of their belief and knowledge.
248		-
249	463		4. The provisions of paragraph 1 of this subsection shall not
250	464		apply to a routine communication between the county a ssessor and the
251	465		board of equalization that relates to the administration of an
252	466		appraisal roll, including a communication made in connection with
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253	493		the certification, correction, or collection of an account that is
254	494		not the subject of a pending appeal.
255		-
256	495		5. The affidavit required in paragraph 2 of this subsection
257	496		shall be in the following form: "My name is [insert name]. I have
258	497		not communicated with another person in violation of subsection E of
259	498		Section 2877 of Title 68 of the Oklahoma Statutes. "
260		-
261	499		6. The affidavit required in paragraph 3 of this subsection
262	500		shall be in the following form: "My name is [insert name]. The
263	501		information I will present today is true and correct to the best of
264	502		my belief and knowledge. "
265		-
266	503		SECTION 4. AMENDATORY 68 O.S. 2021, Section 2945, is
267	504		amended to read as follows:
268		-
269	505		Section 2945. A. If any person shall knowingly and willfully
270	506		make or give under oath or affirmation a false and fraudulent list
271		-	of taxable personal ~~property~~, or a false and fraudulent list of any ~~ENR. H. B. NO. 3901 Page 7~~
	507	+	of taxable personal pr operty, or a false and fraudulent list of any
272	508		taxable personal property under the control of the person or
273	509		required to be listed by the person, or shall knowingly and
274	510		willfully make false answer to any question which may be put under
275	511		oath by any person, bo ard or commission authorized to examine
276	512		persons under oath in relation to the value or amount of any taxable
277	513		personal property, the person shall be deemed guilty of the felony
278	514		of perjury, and upon conviction shall be punished as is provided by
279	515		law for the punishment of the felony of perjury.
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280	541
281	542		B. If any taxpayer, or any official, employee, or agent of the
282	543		taxpayer, shall fail or refuse, upon proper request, to permit the
283	544		inspection of any property or the examination of any books, records
284	545		and papers by any pe rson authorized by the Ad Valorem Tax Code to do
285	546		so, or shall fail or refuse to comply with any subpoena duces tecum
286	547		legally issued under authority of this Code, the taxpayer s hall be
287	548		stopped from questioning or contesting the amount or validity of any
288	549		assessment placed upon the property of the taxpayer to the board of
289	550		equalization. Nothing in this section shall impair or impede the
290	551		right of the taxpayer to appeal any order of the board of
291	552		equalization to the district court or Court of Tax Review as
292	553		provided for in Section 2880.1 of this title.
	554	+	SECTION 5. This act shall become effective J anuary 1, 2023.
293	555
294		-	SECTION 5. This act shall become effective J anuary 1, 2023.
295		-	ENR. H. B. NO. 3901 Page 8
	556	+	58-2-11559 AQH 05/16/22
296	557
297		-	Passed the House of Representatives the 18th day of May, 2022.
298		-
299		-
300		-
301		-
302		-	Presiding Officer of the House
303		-	of Representatives
304		-
305		-
306		-	Passed the Senate the 19th day of May, 2022.
307		-
308		-
309		-
310		-
311		-	Presiding Officer of the Senate
312		-
313		-
314		-
315		-	OFFICE OF THE GOVERNOR
316		-	Received by the Office of the Governor this ____________________
317		-	day of ___________________, 20_______, at _______ o'clock _______ M.
318		-	By: _________________________________
319		-	Approved by the Governor of the State of Oklahoma this _____ ____
320		-	day of ___________________, 20_______, at _______ o'clock _______ M.
321		-
322		-
323		-	_________________________________
324		-	Governor of the State of Oklahoma
325		-
326		-	OFFICE OF THE SECRETARY OF STATE
327		-	Received by the Office of the Secretary of State this __________
328		-	day of ___________________, 20_______, at _______ o'clock _______ M.
329		-	By: _________________________________