Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1210 Compare Versions

Version 1 (Old)

Version 2 (New)

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4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 59th Legislature (2024)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 1210 By: Stanley of the Senate
7	37
8	38		and
9	39
10		-	Kannady and Swope of the
11		-	House
	40	+	Kannady of the House
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16	45		An Act relating to inspection of real property;
17	46		amending 68 O.S. 2021, Sections 2802 and 2821, which
18	47		relate to physical inspection of certain real
19	48		property; modifying definitions; allowing county
20	49		assessors to use certain technology to inspect
21	50		properties; and declaring an emergency .
22	51
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26		-	SUBJECT: Inspection of real property
27		-
28	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
29		-
30	56		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is
31	57		amended to read as follows:
32		-
33	58		Section 2802. As used in Section 2801 et seq. of this title:
34		-
35	59		1. “Accepted standards for mass appraisal practice ” means those
36	60		standards for the collection and analysis of information about
37	61		taxable properties within a taxing juri sdiction permitting the
38	62		accurate estimate of fair cash value for similar properties in the
39	63		jurisdiction either without direct observation of such simil ar
40	64		properties or without direct sales price information for such
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	66	+	SB1210 HFLR Page 2
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41	92		similar properties using a reliable stat istical or other method to
42	93		estimate the values of such properties;
43		-
44	94		2. “Additional homestead exemption ” means the exemption
45	95		provided by Section 2890 of this title;
46		-
47		-
48		-	ENR. S. B. NO. 1210 Page 2
49	96		3. “Assessor” means the county assessor and, unless the context
50	97		clearly requires otherwise, deputy assessors and persons employed by
51	98		the county assessor in performance of duties imposed by law;
52		-
53	99		4. “Assess and value” means to establish the fa ir cash value
54	100		and taxable fair cash value of taxable real and personal property
55	101		pursuant to requirements of law;
56		-
57	102		5. “Assessed valuation” or “assessed value” means the
58	103		percentage of the fair cash value of personal property, or the
59	104		percentage of the taxable fair cash value of real property, pursuant
60	105		to the provisions of Sections 8 and 8B of Article X of the Ok lahoma
61	106		Constitution, either of individual items of personal property,
62	107		parcels of real property or the aggregate total o f such individual
63	108		taxable items or parcels within a jurisdiction;
64		-
65	109		6. “Assessment percentage ” means the percentage applied to
66	110		personal property and real property pursuant to Section 8 of Article
67	111		X of the Oklahoma Constitution;
68		-
69	112		7. “Assessment ratio” means the relationship between assesse d
70	113		value and taxable fair cash value for a county or for use categories
71	114		within a county expressed as a per centage determined in the annual
72	115		equalization ratio study;
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74	143		8. “Assessment roll” means a computerized or noncomputerize d
75	144		record required by law to be k ept by the county assessor and
76	145		containing information about property within a taxing jurisdiction;
77		-
78	146		9. “Assessment year” means the year beginning January 1 of each
79	147		calendar year and ending on December 31 preceding the following
80	148		January 1 assessment date;
81		-
82	149		10. “Circuit breaker” means the form of property tax relief
83	150		provided by Sections 2904 through 2911 of thi s title;
84		-
85	151		11. “Class of subjects” means a category of property
86	152		specifically designated pursuant to provisions of the Ok lahoma
87	153		Constitution for purposes of ad valorem taxation;
88		-
89	154		12. “Code” means the Ad Valorem Tax Code, Section 2801 et seq.
90	155		of this title;
91		-
92		-	ENR. S. B. NO. 1210 Page 3
93		-
94	156		13. “Coefficient of dispersion ” means a statistical measure of
95	157		assessment uniformity for a category of property or for all property
96	158		within a taxing jurisdiction;
97		-
98	159		14. “Confidence level” means a statistical procedure for
99	160		determining the degree of reliabilit y for use in reporting the
100	161		assessment ratio for a taxing jurisdiction;
101		-
102	162		15. “Cost approach” means a method used to esta blish the fair
103	163		cash value of property involving an estimate of current construction
104	164		cost of improvements, subtracting accrued depreciatio n including any
105	165		loss in value that may be caused by physical deterioration,
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106	193		functional obsolescence or economic obsolescence and adding the
107	194		value of the land.
108		-
109	195		a. Physical deterioration is a cause of depreciation that
110	196		is a loss in value due to ordinary wear and tear and
111	197		the forces of nature.
112		-
113	198		b. Functional or internal obsolescence is the loss in
114	199		value of a property resulting from changes in tastes,
115	200		preferences, technical innovations or market
116	201		standards.
117		-
118	202		c. Economic or external obsolescence is a cause of
119	203		depreciation that is a loss in value as a result of
120	204		impairment in utility and desirability caused by
121	205		factors outside the boundaries of the property or loss
122	206		of value in a property (relative to the cost of
123	207		replacing it with a property of equal utility) that
124	208		stems from factors external to the property;
125		-
126	209		16. “County board of equalization ” means the board which, upon
127	210		hearing competent evidence, has the authority t o correct and adjust
128	211		the assessment rolls in its respective county to conform to fair
129	212		cash value and such other responsibilities as prescribed in Section
130	213		2801 et seq. of this title;
131		-
132	214		17. “Equalization” means the process for making adjustments to
133	215		taxable property values within a county by analyzing the
134	216		relationships between assessed values and fair cash values in one or
135	217
136		-	ENR. S. B. NO. 1210 Page 4
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137	244		more use categories within the county or between counties by
138	245		analyzing the relationship between assessed val ue and fair cash
139	246		value in each county;
140		-
141	247		18. “Equalization ratio study ” means the analysis of the
142	248		relationships between assessed values an d fair cash values in the
143	249		manner provided by law;
144		-
145	250		19. “Fair cash value” or “market value” means the value or
146	251		price at which a willing buyer would purc hase property and a willing
147	252		seller would sell property if both parties are knowledgeable about
148	253		the property and its uses and if neither party is under any undue
149	254		pressure to buy or sell and for real property shall mean the va lue
150	255		for the highest and best use for which such property was actually
151	256		used, or was previously classified for use, during the calendar yea r
152	257		next preceding the applicable January 1 assessment date;
153		-
154	258		20. “Fixed-wing aircraft” means a manned flying machine,
155	259		commonly known as an airplane, tha t generates lift through the
156	260		forward motion of the aircraft and wings that do not revolve around
157	261		a mast, but are fixed in relation to the fuselage of the aircraft.
158	262		Fixed-wing aircraft must also comply with Federal Aviation
159	263		Administration regulations. For the purposes of this section,
160	264		fixed-wing aircraft shall not include unmanned aircraft, commonly
161	265		referred to as drones, as defined in Section 322 of Title 3 of the
162	266		Oklahoma Statutes;
163	267
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164	294		21. “Homestead exemption” means the reduction in the taxable
165	295		value of a homestead as authorized by law;
166		-
167	296		21. 22. “Income and expense approach ” means a method to
168	297		estimate fair cash value of a property by determining the present
169	298		value of the projected income stream;
170		-
171	299		22. 23. “Inspection” means the inspection of real or personal
172	300		property by using on -ground site inspections and, thereafter where
173	301		applicable, by using publicly and comm ercially available aerial
174	302		image overlays for purposes of valuation, data collection, or any
175	303		other purposes related to the duties of county assessors;
176		-
177	304		24. “List and assess” means the process by which taxable
178	305		property is discovered, its description recorded for purposes of ad
179		-
180		-	ENR. S. B. NO. 1210 Page 5
181	306		valorem taxation and its fair cash value and taxable fair cash value
182	307		are established;
183		-
184	308		23. 25. “Mill” or “millage” means the rate of tax imposed upon
185	309		taxable value. One (1) mill equals One Dollar ($1.00) of tax for
186	310		each One Thousand Do llars ($1,000.00) of taxable value;
187		-
188	311		24. 26. “Multiple regression analysis ” means a statistical
189	312		technique for estimating unknown data on the basis of k nown and
190	313		available data;
191		-
192	314		25. 27. “Parcel” means a contiguous area of land described in a
193	315		single description by a deed or other instrument or as one of a
194	316		number of lots on a plat or plan, separately owned and capable of
195	317		being separately conveyed;
196	318
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197	345		26. 28. “Sales comparison approach ” means the collection,
198	346		verification, and screening of sales data, stratificati on of sales
199	347		information for purposes of comparison and use of such information
200	348		to establish the fair cash value of taxable property;
201		-
202	349		27. 29. “State Board of Equalization” means the Board
203	350		responsible for valuation of railroad, airline and public service
204	351		corporation property and the adjustment and equalization of all
205	352		property values both centrally and locally assessed;
206		-
207	353		28. 30. “Taxable value” means the percentage of the fair cash
208	354		value of personal property or the taxable fair cash value of real
209	355		property, less applicable exemptions, upon which an ad valorem tax
210	356		rate is levied pursuant to the provisions of Section 8 and Section
211	357		8B of Article X of the Oklaho ma Constitution;
212		-
213	358		29. 31. “Taxable fair cash value ” means the fair cash value of
214	359		locally assessed real pr operty as capped pursuant to Section 8B of
215	360		Article X of the Oklahoma Constitution;
216		-
217	361		30. 32. “Use category” means a subcategory of real property,
218	362		that is either agricultural use, residential use or
219	363		commercial/industrial use but does not and shall not consti tute a
220	364		class of subjects within the meaning of the Oklahoma Constitution
221	365		for purposes of ad valorem taxation;
222		-
223		-
224		-	ENR. S. B. NO. 1210 Page 6
225	366		31. 33. “Use value” means the basis for establishing fair cash
226	367		value of real property pursuant to the requirement of Section 8 of
227	368		Article X of the Oklahoma Constitution; and
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228	395
229	396		32. 34. “Visual inspection program ” means the program required
230	397		in order to gather data ab out real property from physical
231	398		examination of the property and improvements in order to establish
232	399		the fair cash values of properties so inspected at least once each
233	400		four (4) years and the fair cash values of similar properties on an
234	401		annual basis.
235		-
236	402		SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821, is
237	403		amended to read as follows:
238		-
239	404		Section 2821. A. Each county assessor shall cause real
240	405		property to be physically inspected as part of the visual inspection
241	406		cycle and shall require such exam ination as will provide adequate
242	407		data from which to make accurate valuations. After an initial
243	408		physical inspection of property, changes to property may be
244	409		discovered with the use of digital aerial images taken by fixed -wing
245	410		aircraft complying with Federal Aviation Administration regulat ions;
246	411		the provisions in this section shall not be construed to authorize
247	412		the use of digital aerial images taken by unmanned aircraft,
248	413		commonly referred to as drones, as defined in Section 322 of Title 3
249	414		of the Oklahoma Statu tes.
250		-
251	415		B. The information gathere d from the physical inspection shall
252	416		be relevant to the type of property involved, its use category, the
253	417		valuation methodology to be used for the property, whether the
254	418		methodology consists of the cost approach, an income and expense
255	419		approach or sales compa rison approach, and shall be complete enough
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256	447		in order to establish the fair cash value of the property in
257	448		accordance with accepted standards for mass appraisal practice.
258		-
259	449		C. Information gathered during the physical inspectio n shall be
260	450		recorded using a stan dard method as prescribed by the Oklahoma Tax
261	451		Commission in computerized or noncomputerized form. The in formation
262	452		may include property ownership, location, size, use, use category, a
263	453		physical description of the land and improvements or such other
264	454		information as may be required.
265		-
266		-
267		-	ENR. S. B. NO. 1210 Page 7
268	455		D. In order to conduct the visual inspections of real property
269	456		during the four-year cycle, each county assessor shall acquire and
270	457		maintain cadastral maps and a parcel identification system. The
271	458		standards for the cadastral maps and the parcel identification
272	459		system shall be uniform for each county of the state and shall be in
273	460		such form as developed by the Ad Valorem Task Force Division of the
274	461		Oklahoma Tax Commission .
275		-
276	462		E. The county assessor shall maintain a comprehensive sales
277	463		file for each parcel of real property within the county containing
278	464		relevant property characteristics, sales pri ce information,
279	465		adjustments to sales price for purposes of cash equivalency,
280	466		transaction terms and such other informati on as may be required in
281	467		order to establish the fair cash value of taxable real property.
282		-
283	468		Each county assessor shall ensure that the offi ce is equipped
284	469		with adequate drafting facilities, tools, equipment and supplies in
285	470		order to produce or update maps, sketches or drawings necessary to
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286	498		support the proper administration of the ad valorem tax and such
287	499		other tools or equipment as may be requir ed to perform duties
288	500		imposed by law for the discovery and valuation of taxable property.
289		-
290	501		SECTION 3. It being immediately necessary f or the preservation
291	502		of the public peace, health or safety, an emergency is hereby
292	503		declared to exist, by r eason whereof this act shall take effect and
293	504		be in full force from and after its passage and approval.
294	505
295		-
296		-	ENR. S. B. NO. 1210 Page 8
297		-	Passed the Senate the 5th day of March, 2024.
298		-
299		-
300		-
301		-	Presiding Officer of the Senate
302		-
303		-
304		-	Passed the House of Representatives the 16th day of April, 2024.
305		-
306		-
307		-
308		-	Presiding Officer of the House
309		-	of Representatives
310		-
311		-	OFFICE OF THE GOVERNOR
312		-	Received by the Office of the Governor this _______ _____________
313		-	day of ___________________, 20_______, at _______ o'clock _______ M.
314		-	By: _________________________________
315		-	Approved by the Governor of the State of Oklahoma this _______ __
316		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
317		-
318		-	_______________________________ __
319		-	Governor of the State of Oklahoma
320		-
321		-
322		-	OFFICE OF THE SECRETARY OF STATE
323		-	Received by the Office of the Secretary of State this _______ ___
324		-	day of _________________ _, 20 _______, at _______ o'clock _______ M.
325		-	By: _________________________________
	506	+	COMMITTEE REPORT BY: COMMITTEE ON PUBLIC SAFETY , dated 04/02/2024 -
	507	+	DO PASS.