Oklahoma 2024 2024 Regular Session

Oklahoma House Bill HB2339 Enrolled / Bill

Filed 05/12/2023

                    An Act 
ENROLLED HOUSE 
BILL NO. 2339 	By: Archer of the House 
 
   and 
 
  Hall of the Senate 
 
 
 
 
 
 
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 effect ive date. 
 
 
 
SUBJECT: Revenue and taxation 
 
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 e xisting at statehood 
between the Indians and the United States government, o r 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 t o property through 
foreclosure, voluntary or involuntary liquidation or bank ruptcy, 
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, school 
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 provi des for the passage of title or  ENR. H. B. NO. 2339 	Page 2 
the release of security interest, if applicable, upon payment 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 r eferred 
to in paragraph 3 of this s ection, 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 libraries, 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 
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 e xecute a formal lease agreement wit h 
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 be ing 
used for that purpose.  For purposes of this paragraph, 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 ex emption authorized by this 
section and in order to determine 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 exempt ion is claimed as 
authorized by this subsection, in excess of Two Hundred Fifty  ENR. H. B. NO. 2339 	Page 3 
Thousand Dollars ($250,000.00) Five Hundred Thousand Dollars 
($500,000.00) for the applicable assessment year shall not be exempt 
from taxation; 
 
8.  All property of any charita ble 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 leased 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 tenan t in property 
owned by a charitable institution under Section 501(c)(3) of the 
Internal Revenue Code an d which includes but is not li mited to an 
institution that either: 
 
a. additionally satisfies the income standards set forth 
in Internal Revenue Service R evenue Procedure 96-32, 
which may be audited by the county assessor of the 
applicable county, in addit ion to other requirements 
of this subparagraph, as a condition of obtai ning and 
maintaining the exemption, if: 
 
(1) the property provides residential renta l 
accommodations regardless of whet her services or 
meals are provided, and 
 
(2) the property: 
 
(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 num ber 
of units suitable for occupancy, during the 
calendar year preceding 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 assesso r of the 
county in which the proper ty is located no 
later than December 15 each year regarding  ENR. H. B. NO. 2339 	Page 4 
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 c ounty 
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 as sessment year 
unless the average oc cupancy rate is at 
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 J anuary 1, 
2006, is a continuum of c are retirement community 
providing housing for the aged, licen sed under 
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 fiv e 
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 rec ognized 
by the Internal Revenue Service as a  ENR. H. B. NO. 2339 	Page 5 
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 la w, 
 
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 stat e 
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 insti tution 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 est ablished, 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 discrimin ation as to race, color or creed an d 
regardless of ability to pay, and that such hospital is licensed and  ENR. H. B. NO. 2339 	Page 6 
otherwise complies with the laws of this state relating to the 
licensing and regulation of hospitals; 
 
11.  All libraries and office equipment of minis ters of the 
Gospel actively engaged in ministerial work in the State of 
Oklahoma, where said libraries and 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 de clared to be 
within the meaning of the term "religious purposes" as used in 
Article X, Section 6 of the Constitution of the State of Oklahoma; 
 
12. Household goods, tools, i mplements and livestock of every 
person maintaining a home, not exceeding One Hundr ed Dollars 
($100.00) in value or On e 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 active 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 Apr il 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 
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 t his 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  ENR. H. B. NO. 2339 	Page 7 
grain and forage necessary to maintain for one (1) ye ar 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. 
 
SECTION 2.  This act shall becom e effective November 1, 2023. 
  ENR. H. B. NO. 2339 	Page 8 
Passed the House of Representatives the 11th day of May, 2023. 
 
 
 
  
 	Presiding Officer of the House 
 	of Representatives 
 
 
Passed the Senate the 26th day of April, 2023. 
 
 
 
  
 	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: _________________________________