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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2339 By: Boatman
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 2887 , which relates to exempt
property; modifying certain fair cash value amount
with respect to parsonages; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2887, is
amended to read as follows:
Section 2887. The following property shall be exempt from ad
valorem taxation:
1. All property of the United States, and such property as may
be exempt by reason of treaty stipulations existing at statehood
between the Indians and the Unite d States government, or by reason
of federal laws in effec t at statehood, during the time such
treaties or federal laws are in force and effect. In instances
where a federal agency has obtained title to property through
foreclosure, voluntary or involunta ry liquidation or bankruptcy,
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which was previously subject to ad valorem taxation, th e property
may continue to be assessed for ad valorem taxes if such federal
agency has agreed to pay such taxes;
2. All property of this state, and of the counties, schoo l
districts, and municipalities of this state, including p roperty
acquired for the use of such entities pursuant to the terms of a
lease-purchase agreement which provides for the passage of title or
the release of security interest, if applicable, upon pay ment of all
rental payments and an additional nominal amou nt;
3. All property of any college or school, provided such
property is devoted exclusively and directly to the appropriate
objects of such college or school within this state and all property
used exclusively for nonprofit schools and colleges;
4. The books, papers, furniture and scientific or other
apparatus pertaining to any institution, college or society referred
to in paragraph 3 of this section, and devoted exclusively and
directly for the purpose above contemplated, and the like property
of students in any such institution or college, while such property
is used for the purpose of their education;
5. All fraternal orphan homes and other orphan homes;
6. All property used for free public li braries, free museums,
public cemeteries, or free public s chools;
7. All property used exclusively and directly for fraternal or
religious purposes within this state. For purposes of this
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paragraph, an exemption based on religious purposes includes real
property owned by a church which allows its premises to be used by
an entity if such entity is not required to make rental payments to
the church, is not required to execute a formal lease agreement with
respect to its occupancy of the church premises and conducts
instruction of children from any or all grades fo r ages preschool
through twelfth grade, including religious instruction consistent
with the doctrines of the church the premises of which are being
used for that purpose. For purposes of this parag raph, a
requirement by a church to be reimbursed by the en tity for utility
expenses, janitorial services or similar expenses shall not be a
basis upon which to remove or deny the exempt status of church
property. Exempt status of church property shall not be removed nor
shall church property be allocated between taxable and exempt status
based on the use of church premises by an entity as described by
this paragraph.
For purposes of administering the exemption authorized by this
section and in order to det ermine whether a single family
residential property is use d exclusively and directly for fraternal
or religious purposes, the fair cash value of a single family
residential property, for which an exemption is claimed as
authorized by this subsection, in ex cess of Two Hundred Fifty
Thousand Dollars ($250,000.00) Three Hundred Thousand Dollars
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($300,000.00) for the applicable assessment year shall not be exempt
from taxation;
8. All property of any charitable institution organized or
chartered under the laws of this state as a nonprofit or charitable
institution, provided the net income from such property is used
exclusively within this state for charitable purposes and no part of
such income inures to the benefit of any private stockholder,
including property which is not le ased or rented to any person other
than a governmental body, a chari table institution or a member of
the general public who is authorized to be a tenant in property
owned by a charitable institution under Section 501(c)(3) of the
Internal Revenue Code and which includes but is not li mited to an
institution that either:
a. additionally satisfies the income standards set forth
in Internal Revenue Service Revenue Procedure 96 -32,
which may be audited by the county assessor of the
applicable county, in addition to other requirements
of this subparagraph, as a condition of obtai ning and
maintaining the exemption, if:
(1) the property provides residential rental
accommodations regardless of whether services or
meals are provided, and
(2) the property:
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(a) is occupied as of the applicable Jan uary 1
assessment date if the structure is a
single-family dwelling, or
(b) has an average seventy -five percent (75%)
occupancy rate, based upon the total number
of units suitable for occupancy, during the
calendar year precedin g the applicable
January 1 assessment date if the property
contains multiple structures suitable for
multi-family housing. The owner of any
property subject to the occupancy
requirements prescribed herein shall submit
a report to the county assessor of th e
county in which the proper ty is located no
later than December 15 each year regarding
the occupancy rate for the preceding eleven
(11) months. If the report indicates that
the average occupancy rate was less than
seventy-five percent (75%), the county
assessor shall determine the taxable value
of the property for the su cceeding
assessment year and the property shall not
be exempt for any subsequent assessment year
unless the average occupancy rate is at
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least seventy-five percent (75%) during the
succeeding eleven-month period. Except as
provided in Section 178.6 of Tit le 60 of the
Oklahoma Statutes, no asset consisting of a
single-family or multi-family dwelling unit
owned by an entity the property of which
would otherwise be exempt pursuant to
subparagraph a of this paragraph sha ll be
exempt from ad valorem taxation if any such
dwelling unit was improved with or acquired
with any portion of proceeds from the sale
of obligations issued by any entity
organized pursuant to Section 176 of Title
60 of the Oklahoma Statutes if the inter est
income derived from such obligations is
exempt from federal income tax, or
b. (1) for a facility constructed prior to January 1,
2006, is a continuum of care retirement community
providing housing for the aged, licensed unde r
Oklahoma law, owned by a n onprofit entity
recognized by the Intern al Revenue Service as a
Section 501(c)(3) tax -exempt entity and located
in a county with a population of more than five
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hundred thousand (500,000) according to the
latest Federal Decennial Census, and
(2) (a) for a facility in which construction was
completed on or after January 1, 2006, is:
i. a continuum of care retirement
community providing housing for the
aged, licensed under Oklahoma law,
ii. owned by a nonprofit entity recognized
by the Internal Revenue Service as a
Section 501(c)(3) tax-exempt entity,
and
iii. located in any county of the state
regardless of population, or
(b) for a facility other than a facility
described by division (1) of subparagraph b
of this paragraph and which is partially or
fully constructed prior to January 1, 2006,
is:
i. owned and occupied on or after January
1, 2006, by an entity that operates a
continuum of care retirement community
providing housing for the aged,
licensed under Oklahoma law,
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ii. owned by a nonprofit entity recogni zed
by the Internal Revenue Service as a
Section 501(c)(3) tax -exempt entity,
and
iii. is located in any county of the state
regardless of population;
9. All property used exclusively and directly for charitable
purposes within this state, provided the ch arity using said property
does not pay any rent or remuneration to the owner thereof unless
the owner is a charitable institution described in Section 501(c)(3)
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3), or a
veterans' organization describ ed in Section 501(c)(19) of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(19);
10. All property of any hospital established, organized and
operated by any person, partnership, association, organization,
trust, or corporation, as a nonprofit and cha ritable hospital,
provided the property and net income from such hospital are used
directly, solely, and exclusively within this state for charitable
purposes and that no part of such income shall inure to the benefit
of any individual, person, partner, sh areholder, or stockholder, and
provided further that such hospital facilities shall be open to the
public without discrimination as to race, color or creed and
regardless of ability to pay, and that such hospital is licensed and
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otherwise complies with the laws of this state relating to the
licensing and regulation of hospitals;
11. All libraries and office equipment of ministers of the
Gospel actively engaged in ministerial work in the State of
Oklahoma, where said libraries an d office equipment are being used
by said ministers in their ministe rial work, shall be deemed to be
used exclusively for religious purposes and are declared to be
within the meaning of the term "religious purposes" as used in
Article X, Section 6 of the C onstitution of the State of Oklahoma;
12. Household goods, tools, i mplements and livestock of every
person maintaining a home, not exceeding One Hundred Dollars
($100.00) in value or One Thousand Dollars ($1,000.00) in value if
Article X, Section 6 of the Oklahoma Constitution provi des for an
exemption in such amount; and in addition thereto, there shall be
exempt from taxation on personal property the further sum of Two
Hundred Dollars ($200.00) to all enlisted and commissioned
personnel, whether on activ e duty or honorably discharg ed, who
served in the Armed Forces of th e United States during:
a. the Spanish-American War,
b. the period beginning on April 6, 1917, and ending on
July 2, 1921,
c. the period beginning on December 6, 1941, and ending
on such date as the state of national emergency as
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declared by the President of the United States shall
cease to exist, or
d. any other or future period during which a state of
national emergency shall have been or shall be
declared to exist by the Congress or the President of
the United States.
All surviving spouses made so by the death of such enlisted or
commissioned personnel, who are bona fide residents of this state,
shall be entitled to the above additional exemption provided in this
paragraph;
13. Family portraits;
14. All food and fuel provided in kind for the use of the
family not to exceed provisions for one (1) year 's time, and all
grain and forage necessary to maintain for one (1) year the
livestock used to provide food for the family. No person from whom
pay is received or expe cted for board shall be considered a mem ber
of the family within the intent and meaning of this paragraph;
15. All growing crops; and
16. All game animals, fowl and reptile, which are not being
grown for food or sale and which are kept exclusively for
propagation or exhibition, in private grou nds or public parks in
this state.
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SECTION 2. This act shall become effective November 1, 2023.
59-1-6049 MAH 01/02/23