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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1210 By: Stanley
AS INTRODUCED
An Act relating to inspection of real property;
amending 68 O.S. 2021, Section s 2802 and 2821, which
relate to physical inspection of c ertain real
property; modifying definitions; allowing county
assessors to use certain technology to in spect
properties; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OK LAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 28 02, is
amended to read as follows:
Section 2802. As used in Section 2801 et seq. of this title:
1. “Accepted standards for mass appraisal practice ” means those
standards for the collection and analysis of information about
taxable properties within a taxing jurisdiction permitting the
accurate estimate of fair cash value for similar properties in the
jurisdiction either without direct observation of such similar
properties or without direct sales price information for such
similar properties using a reliable statistical or other method to
estimate the values of such properties;
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2. “Additional homestead exemption” means the exemption
provided by Section 2890 of this title;
3. “Assessor” means the county assessor and, unless the context
clearly requires otherwise, deputy assessors and persons employed by
the county assessor in performance of duties imposed by law;
4. “Assess and value” means to establish the fair cash value
and taxable fair cash value of taxable real and persona l property
pursuant to requirements of law;
5. “Assessed valuation” or “assessed value” means the
percentage of the fair ca sh value of personal property, or the
percentage of the taxable fair cash value of real property, pursuant
to the provisions of Sect ions 8 and 8B of Article X of the Oklahoma
Constitution, either of individual items of personal property,
parcels of real property or the aggregate total of such individual
taxable items or parcels within a jurisdiction;
6. “Assessment percentage ” means the percentage applied to
personal property and real property pursuant to Sectio n 8 of Article
X of the Oklahoma Constitution ;
7. “Assessment ratio” means the relationship between assessed
value and taxable fair cash value for a county or for use categorie s
within a county expressed as a percentage determined in the annual
equalization ratio study;
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8. “Assessment roll” means a computerized or noncomputerized
record required by law to be kept by the county a ssessor and
containing information about property within a taxing jurisdiction;
9. “Assessment year” means the year beginning Ja nuary 1 of each
calendar year and ending on D ecember 31 preceding the following
January 1 assessment date;
10. “Circuit breaker” means the form of property tax relief
provided by Sections 2904 through 2911 of this title;
11. “Class of subjects” means a category of property
specifically designated pursuant to provisions of the Oklahoma
Constitution for purposes of ad valorem taxa tion;
12. “Code” means the Ad Valorem Tax Code, S ection 2801 et seq.
of this title;
13. “Coefficient of dispersion ” means a statistical measure of
assessment uniformity for a category of property or for all property
within a taxing jurisdiction;
14. “Confidence level” means a statistical procedure for
determining the degree of reliability for use in reporting the
assessment ratio for a taxing jurisdiction;
15. “Cost approach” means a method used to establish the fair
cash value of property involving an estimate of current construction
cost of improvements, subtracting accrued depreciation including any
loss in value that may be c aused by physical deterioration,
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functional obsolescence or economic obsolescence and adding the
value of the land.
a. Physical deterioration is a cause of depreciation that
is a loss in value due to ordinary wear and tear and
the forces of nature.
b. Functional or internal obsolescence is the loss in
value of a property resulting from changes in tastes,
preferences, technical inn ovations or market
standards.
c. Economic or external obsolescence is a cause of
depreciation that is a loss in value as a result of
impairment in utility and desirability ca used by
factors outside the boundaries of the property or loss
of value in a property (relative to the cost of
replacing it with a p roperty of equal utility) that
stems from factors external to the property;
16. “County board of equalization ” means the board which, upon
hearing competent evidence, has the authority to correct and adjus t
the assessment rolls in its respective county to conform to fair
cash value and such other responsibilities as prescribed in Se ction
2801 et seq. of this title;
17. “Equalization” means the process for making adjustments to
taxable property values within a county by analyzing the
relationships between assessed values and fair cash values in one or
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more use categories within the county or between counties by
analyzing the relationship between assessed value and fair cash
value in each county;
18. “Equalization ratio study” means the analysis of the
relationships between assessed values and fair cash values in the
manner provided by law;
19. “Fair cash value” or “market value” means the value or
price at which a willing buyer would purchase property and a willing
seller would sell property if both partie s are knowledgeable about
the property and its uses and if neither party is under any undue
pressure to buy or sell and for real property shall mean the value
for the highest and best use for which such pro perty was actually
used, or was previously classif ied for use, during the calendar year
next preceding the applicable January 1 a ssessment date;
20. “Fixed-wing aircraft” means a manned flying machine,
commonly known as an airplane, that generates lift th rough the
forward motion of the aircraft and wings that do not revolve around
a mast, but are fixe d in relation to the fuselage of the aircraft .
Fixed-wing aircraft must also comply with Federal Aviation
Administration regulations . For the purposes of th is section,
fixed-wing aircraft shall not include unmanned aircraft, commonly
referred to as drones, as defined in Section 322 of Title 3 of the
Oklahoma Statutes;
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21. “Homestead exemption” means the reduction in the taxable
value of a homestead as authorized by law;
21. 22. “Income and expense approach ” means a method to
estimate fair cash value of a property by determining the present
value of the projected income stream;
22. 23. “Inspection” means the inspection of real or personal
property by using on-ground site inspections and, thereafter where
applicable, by using publicly and commercially available aerial
image overlays for purposes of valuation, data collection, or any
other purposes related to the duties of county assessors;
24. “List and assess” means the process by which taxable
property is discovered, its description recorded for purposes of ad
valorem taxation and its fair cash value and taxable fair cash value
are established;
23. 25. “Mill” or “millage” means the rate of tax imposed upon
taxable value. One (1) mill equals One Dollar ($1 .00) of tax for
each One Thousand Dollars ($1,000.00) of taxable value;
24. 26. “Multiple regression analysis ” means a statistical
technique for estimating unknown data on the basis of known and
available data;
25. 27. “Parcel” means a contiguous area of land described in a
single description by a deed or other instrument or as one of a
number of lots on a plat or plan, separately own ed and capable of
being separately conveyed;
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26. 28. “Sales comparison approach” means the collection,
verification, and screening of sales data, stratification of sales
information for purposes of com parison and use of such information
to establish the fair cash value of taxable property;
27. 29. “State Board of Equalization ” means the Board
responsible for valuation of rai lroad, airline and public service
corporation property and the adjustment and equalization of all
property values both centrally and locally assessed;
28. 30. “Taxable value” means the percentage of the fa ir cash
value of personal property or the taxable fair cash value of real
property, less applicable exemptions, upon which an ad valorem tax
rate is levied pursuant to the provisions of Section 8 and Section
8B of Article X of the Oklahoma Constitution;
29. 31. “Taxable fair cash value ” means the fair cash value of
locally assessed real property as capped pursuant to Section 8B of
Article X of the Oklahoma Constitution;
30. 32. “Use category” means a subcategory of real property,
that is either agricultur al use, residential use or
commercial/industrial u se but does not and shall not constitute a
class of subjects within the meaning of the Oklahoma Constitution
for purposes of ad valorem taxation;
31. 33. “Use value” means the basis for establishing fair cash
value of real property pursuant to the require ment of Section 8 of
Article X of the Oklahoma Constitution; and
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32. 34. “Visual inspection program ” means the program required
in order to gather data about real property from physical
examination of the property and improvements in order to establish
the fair cash values of properties so inspected at least once each
four (4) years and the fair cash values of similar properties on an
annual basis.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821 , is
amended to read as follows:
Section 2821. A. Each county assessor shall cause real
property to be physically inspected as part of the visual inspection
cycle and shall require such examination as will provide adequate
data from which to make accurate valuations. After an initial
physical inspection of property, changes to property may be
discovered with the use of digital aerial images taken by fixed -wing
aircraft complying with Federal Aviation Administration regulations;
the provisions in this section shall not be construed to authorize
the use of digital aerial images taken by unmanned aircraft,
commonly referred to as drones, as defined in Section 322 of Title 3
of the Oklahoma Statutes.
B. The information gathered from the physical inspection shall
be relevant to the type of prope rty involved, its use category, the
valuation methodology to be used for the pr operty, whether the
methodology consists of the cost approach, an income and expense
approach or sales comparison approach, and shall be complete enough
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in order to establish th e fair cash value of the property in
accordance with accepted standards for mass appraisal practice.
C. Information gathered during the physical inspection sha ll be
recorded using a standard method as pres cribed by the Oklahoma Tax
Commission in computeri zed or noncomputerized form. The information
may include property ownership, l ocation, size, use, use category, a
physical description of the land and improvements or such other
information as may be required.
D. In order to conduct the visual inspection s of real property
during the four-year cycle, each county assessor shall acquire and
maintain cadastral maps and a parcel identifica tion system. The
standards for the cadastral maps and the parcel identif ication
system shall be uniform for each county of the state and shall be in
such form as developed by the Ad Valor em Task Force Division of the
Oklahoma Tax Commission .
E. The county assessor shall maintain a comprehensive sales
file for each parcel of real property within the county containing
relevant property characteristics, sales price information,
adjustments to sales pr ice for purposes of cash equivalency,
transaction terms and such other information as may be requi red in
order to establish t he fair cash value of taxable real property.
Each county assessor shall ensure that the office is equipped
with adequate drafting facil ities, tools, equipment and supplies in
order to produce or update maps, sketches or drawings necessary to
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support the proper administration of the ad valorem tax and such
other tools or equipment as may be required to perform duties
imposed by law for the discovery and valuation of taxable property.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or s afety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect an d
be in full force from and after its p assage and approval.
59-2-2354 MSBB 11/30/2023 11:44:38 AM