Oklahoma Senate Bill SB1266

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22

Caption

Ad valorem tax; exempting certain personal property from listing and assessment. Effective date.

Impact

This legislation is expected to impact property taxation practices in Oklahoma positively, particularly for individuals and small businesses with lower-value personal property. By exempting smaller items from taxation, the bill could lower the administrative costs associated with property assessment for both taxpayers and county assessors. It may also encourage the recording of property ownership among smaller property owners who may have avoided listing due to the complexities or costs previously involved.

Summary

Senate Bill 1266 aims to amend Oklahoma's ad valorem tax law by providing specific exemptions related to the listing and assessment of personal property. The bill allows certain personal properties with an acquisition cost of less than $10,000 or a market value below $5,000 to be exempt from the requirement of listing for tax purposes. This change is significant as it aims to reduce the compliance burden on small property owners and potentially increase taxable income for state revenues by streamlining the assessment process.

Contention

Opponents of SB1266 could argue that the exemptions might lead to significant revenue losses for local governments that depend on property taxes as a significant funding source. Some stakeholders fear that the bill may promote inequities in tax assessment practices, as larger corporations may still be required to adhere to stringent listing requirements, while smaller entities could benefit from loopholes that reduce their tax burden substantially. As such, discussions around the bill may focus on balancing relief for property owners with the need for equitable taxation and revenue provision.