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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL 3961 By: Echols of the House
and
Hall of the Senate
COMMITTEE SUBSTITUTE
An Act relating to ad valorem tax; amending 68 O.S.
2021, Sections 2808 and 2847, which relate to
definitions and annual assessments of centrally
assessed property; defining term; requiring the State
Board of Equalization to assess broadband service
providers at certain ratio for certain period; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2808, is
amended to read as follows:
Section 2808. A. As used in the Ad Valorem Tax Code:
1. “Broadband service providers ” means a subclass of public
service corporations consisting of any public service corporation
offering broadband-based services including Internet access, Voice
over Internet Protocol, or Internet Protocol television to end user
consumers;
2. “Public service corporation ” means all transportation
companies, transmission companies, all gas, elec tric, light, heat,
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and power companies, and all waterworks and water power companies,
and all persons authorized to exercise the right of emin ent domain
or to use or occupy any right -of-way, street, alley, or public
highway, along, over , or under the same in a manner not permitted to
the general public;
2. 3. “Transportation company ” means any company, corporation,
trustee, receiver, or any other person owning, leasing , or operating
for hire, a street railway, canal, steamboat line, and also any
sleeping car company, parlor car company , and express company, and
any other company, trustee, or person in any way engaged in such
business as a common carrier. As used in the Ad Valorem Tax Code,
the term “transportation company ” transportation company shall not
include any railroad or any air carrier. However, all railroad and
air carrier property shall continue to be valued and assessed by the
State Board of Equalization for purposes of ad valorem taxation;
3. 4. “Transmission company ” means any company, corpo ration,
trustee, receiver, or other person owning, leasing , or operating for
hire any telegraph or telephone line or radio broadcasting system ;
4. 5. “Person” means individuals, partnerships, associations,
and corporations in the singular as well as plural number;
5. 6. “Video services provider ” means a subclass of public
service corporations consisting of any public service corporation
offering video programming services;
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6. 7. “Video programming” shall have the same meaning as set
forth in 47 U.S.C., S ection 522(20); and
7. 8. “Fixed wireless broadband Internet service provider ”
means an entity that solely offers access to the Internet thro ugh a
stationary fixed point -to-point connection often requiring direct
line of sight between the provider ’s wireless transmitter and its
end-user consumer’s receiver.
B. As used in the Ad Valorem Tax Code, “transmission company ”
transmission company and “public service corporation ” public service
corporation shall not be construed to include cable television
companies or fixed wireless broadband Internet service providers.
C. Any real or personal property used by any company,
corporation, trustee, receiv er, or other person owning, leasing, or
operating for hire any pipeline or oil or gas gathering system which
was assessed by the State Board of Equalization after January 1,
1997, shall continue to be assessed by the State Board of
Equalization through ad valorem tax year 1998.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2847, is
amended to read as follows:
Section 2847. A. The property of all railroads, air carriers ,
and public service corporations shall be assessed annually by the
State Board of Equalization at its fair cash value estimated at the
price it would bring at a fair voluntary sale.
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B. Taxable values of real and personal property of all
railroads, air carriers , and public service corporations shall be
established in accordance with the requirements of Section 8 of
Article X of the Oklahoma Constitution. The State Board of
Equalization shall determine the taxable value of all taxable
property that the Board is required by law to assess and value, and
shall determine such taxable value in accordance with the
requirements of Section 8 of Article X of the Oklahoma Constitution.
C. The State Board of Equalization shall assess the property of
that subclass of public service corporations known as video services
providers, as defined in Section 2808 of this title, as provided:
1. Every video services provider shall file with the State
Board of Equalization a certification regarding total gross receipts
for the immediate preceding calendar year by April 15 and shall
specify the total gross receipts derived from video programming
services;
2. The State Board of Equalization shall determine the
percentage of gross receipts the video services provider has derived
from video programming in the immediately preceding calendar y ear;
and
3. The percentage determined pursuant to paragraph 2 of this
subsection shall be applied to the taxable fair cash value allocated
to Oklahoma, and the resulting fair cash value attributable to video
programming services shall be assessed using the st atewide average
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of the assessment ratios applied to the assets of cable television
companies in that tax year. Unless the taxpayer or the State Board
of Equalization demonstrates otherwise, the statewide average
assessment ratio applied to the persona l property of a cable
television company shall be assumed to be twelve percent (12%).
D. The State Board of Equalizat ion shall assess the property
used to provide broadband service placed in service after the
effective date of this act of that subclass of pub lic service
corporations known as broadband service providers, as defined in
Section 2808 of this title, at a ratio of fifteen percent (15%) for
the year 2025 and subsequent years .
E. The percentage of fair cash value for real and personal
property of railroads, air carriers , and public service corporations
required by the Oklahoma Constitution to be taxable shall be the
percentage at which it was assessed on January 1, 1996, in
accordance with the provisions of paragraph 3 of subsection A of
Section 8 of Article X of the Oklahoma Constitution, and, subject to
the requirements of federal law, shall be uniformly applied to
calculate the taxable values of public service corporation p roperty
within the state for the applicable assessment year.
SECTION 3. This act shall become effective November 1, 2024.
59-2-3687 QD 4/8/2024 4:44:59 PM