An Act
ENROLLED HOUSE
BILL NO. 3901 By: Pfeiffer and Boles of the
House
and
Montgomery of the Senate
An Act relating to revenu e and taxation; amending 68
O.S. 2021, Section 3024, which relates to the Court
of Tax Review; modifying procedure of court ;
expanding jurisdiction of court; amending 68 O.S.
2021, Sections 2880.1, 2877 and 2945, which relate to
ad valorem tax protests; replacing district court
with Court of Tax Review; and providing an effective
date.
SUBJECT: Revenue and taxation
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 3024, is
amended to read as follow s:
Section 3024. A. There is hereby re -created a Court of Tax
Review. For each case bro ught 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 judicial
administrative district to which the case is assigned shall appoint
a panel of three (3) judges of the district court or of any judicial
administrative district who are active or retired judges qualified
to preside over such cases , who shall determine in what count y the
case will be heard. A majority of the three -judge panel shall be
required to render a decision in each case. A decision in each case
shall be made within twelv e (12) months of the case being assigned
to the three-judge panel. The Oklahoma Supreme C ourt shall ENR. H. B. NO. 3901 Page 2
establish court rules for the Court 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 a fair cash value as determined by the county assessor 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 authorized 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 either intrac ounty or intercounty 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 nonc ompliance as determined by
the Oklahoma Tax Commission. T he 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
assessor's budget for all costs incur red as a result of the
assumption of the valuation functio n by the Commission.
C. The Court of Tax Review shall prescribe procedures for the
purpose of hearing properly filed protests against alleged illegal
levies, as shown on the annual budgets filed wi th the State Auditor
and Inspector. The Court shall reco nvene 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 membe rs of the Court, out of the
funds now provided by law for payment of district 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 provi sions of Sections 3025, 3026,
3027, 3028 and 3029 of this title. ENR. H. B. NO. 3901 Page 3
D. The Court of Tax Review as it existed 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 transferr ed to
the Court of Tax Review as re -created in this sect ion.
E. All cases which have not been submitted for determination in
the Court of Tax Review as it existed prior to July 1, 1997, shall
be transferred to the Court of Tax R eview as it exists after Ju ly 1,
1997, for disposition. All cases which have been submitted by the
parties for determination in the Court of Tax Review prior to July
1, 1997, shall remain with the panel to which they have been
assigned for final determina tion.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2880. 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 o f real or personal property at
a fair cash value as determined by the county assessor 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 m ay
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 prope r party defendant
in any appeal to the district court or Court of Tax Review brought
by the taxpayer. The taxpayer is the proper party defendant in any
appeal to the district court or Court of Tax Review brought by the
county assessor. In either case, th e county board of equalization
shall not be considere d a party in any litigatio n 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 sha ll not be permitted to appeal an
order of the county board of equalization upon a question of the
constitutionality of a law upon which the board based its order, but
the county assessor is hereby authorized in such instance to request
a declaratory judgme nt to be rendered by the district court or Court
of Tax Review in cases involving real or personal property with a
fair cash value as determined by the county assessor in excess of
Three Million Dollars ($3,000,000.00) .
B. Notice of appeal shall be filed with the county clerk as
secretary of the county board of equalization, which appeal shall be ENR. H. B. NO. 3901 Page 4
filed in the district court or Court of Tax Review, as the case may
be, within thirty (30) calendar days of the date the board of
equalization order was mailed, o r in the event that the order was
delivered, from the date of delivery. It sh all be the duty of the
county clerk to preserve all complaints and to make a record of all
orders of the board and both 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 equalization.
C. Either the taxpayer or the 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 which was not presented to the 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 declarat ory judgment it
shall be the duty of the district attorney to appear for and
represent the county assessor. The General Counsel or an attorney
for the Tax Commission may appear in such appeals or requests for
declaratory judgment on behalf of the county a ssessor, either upon
request of the district attorney for assistance, or upo n request of
the county assessor. It shall be the mandatory duty of the board of
county commissioners and the county excise board to provide the
necessary funds to enable the coun ty assessor to pay the costs
necessary to be incurred in perfecting appeals and requests for
declaratory judgment made by the county assessor to the courts.
E. In all appeals taken by the county assessor the presumption
shall exist in favor of the correct ness of the county assessor 's
valuation and the procedure followed by the c ounty 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 b y the
county assessor on the form prescribed by the Oklahoma Tax
Commission, the secretary of the county board of equalization shall
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 witness es
and the production of books, records, and papers by subpoena, and to
confirm, correct, or adjust the valuation of real or personal
property or to cancel an assessment of personal p roperty added by
the assessor not listed by the taxpayer if the personal property is ENR. H. B. NO. 3901 Page 5
not subject to taxation or if the taxpayer is not responsible for
payment of ad valorem taxes upon such property. The secretary of
the board shall fix the dates of the he arings provided for in this
section in such a manner as to ensure that th e board is able to hear
all complaints within the time provided for by law. In any county
with a population less than three hundred thousand (300,000)
according to the latest Federal Decennial Census, the county board
of equalization shall provide at leas t three dates on which a
taxpayer may personally appear and make a presentation of evidence.
At least ten (10) days shall intervene between each such date. No
final determination re garding valuation protests shall be made by a
county board of equalizatio n until the taxpayer shall have failed to
appear for all three such dates. The county board of equalization
shall be required to follow the procedures 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 personal 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 will be
maintained by the county board of equalization as part of th e
hearing record. Each decision of the county board of equalization
shall be explained in writing upon a form prescribed by the Oklahoma
Tax Commission. The county board of equalization shall make a
record of each proceeding involving an appeal from acti on by the
county assessor either in transcribed or tape recorded form.
B. In all cases where the county assessor has, without giving
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 th e
adjournment of the board, file an appeal in the form and manner
provided for in Section 2876 of this title. Thereafter, the board
shall fix a date of hearing, notify the taxpayer, a nd 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 agent 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 ENR. H. B. NO. 3901 Page 6
county in preparation for the scheduled hearing. If such co sts 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 absence shall be
given the opportunity to reschedule the hearing da te.
E. 1. In order to increase taxpayer transparency, a member of
the board of equalization shall not directly or indirectly
communicate with the county assessor or any deputy assessor or
designated agent on any matter relating to any pending appeal befo re
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 stating the member is not in
violation of paragraph 1 of this subsection.
3. Prior to the presentation of a ny evidence at a county board
of equalization hearing, all parties 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 s hall not
apply to a routine communication between the county assessor and the
board of equalization that relates to the administration of an
appraisal roll, including a communication made in connection with
the certification, correction, or collection of a n 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
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 shall 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 ENR. H. B. NO. 3901 Page 7
taxable personal property under the control of the person or
required to be listed by the person, 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 provid ed 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 proper 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 tecum
legally issued under authority of this Code, the taxpayer s hall 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 impair or impede the
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 J anuary 1, 2023.
ENR. H. B. NO. 3901 Page 8
Passed the House of Representatives the 18th day of May, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the 19th day of May, 2022.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________