Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB684 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. A. to ENGR. S. B. N O. 684 Page 1 1
	3	+	SB684 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE AMENDME NT
29		-	TO
30		-	ENGROSSED SENATE BILL NO . 684 By: Stanley of the Senate
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
	36	+	BILL NO. 684 By: Stanley of the Senate
31	37
32	38		and
33	39
34	40		Kannady of the House
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40	45		[ inspection of real propert y - technology -
41	46		effective date ]
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46		-	AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
47		-	and insert:
	51	+	BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
	52	+	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2821, is
	53	+	amended to read as follows:
	54	+	Section 2821. A. Each county assessor shall cause real
	55	+	property to be physically inspected as part of the visual inspection
	56	+	cycle and shall require such examination as will provide adequate
	57	+	data from which to make accurate valuations. After the initial
	58	+	physical inspection o f property, changes to property may be
	59	+	discovered with the use of digital aerial images taken by fi xed-wing
	60	+	aircraft complying with Federal Aviation Administration regulations.
	61	+	B. The information gathered from the physical inspection shall
	62	+	be relevant to the type of property involved, its use category, the
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49		-
50		-	"[ inspection of real propert y - technology -
51		-	emergency ]
52		-
53		-
54		-	BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
55		-	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is
56		-	amended to read as follows:
57		-	Section 2802. As used in Section 2801 et seq. of this title:
58		-	1. "Accepted standards for mass appraisal practice" means those
59		-	standards for the collection and analysis of information about
60		-	taxable properties within a taxing jurisdiction permitti ng the
61		-	accurate estimate of fair cash value for similar properties in the
62		-	jurisdiction either without dir ect observation of such similar
63		-	properties or without direct sales price information for such
64		-
65		-	ENGR. H. A. to ENGR. S. B. N O. 684 Page 2 1
	64	+	SB684 HFLR Page 2
	65	+	BOLD FACE denotes Committee Amendments. 1
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90		-	similar properties using a reliable statistical or other method to
91		-	estimate the values of such properties;
92		-	2. "Additional homestead exemption" means the exemptio n
93		-	provided by Section 2890 of this title;
94		-	3. "Assessor" means the county assessor and, unless the context
95		-	clearly requires otherwise, deputy assessors and persons employed by
96		-	the county assessor in performance of duties imposed by law;
97		-	4. "Assess and value" means to establish the fair cash value
98		-	and taxable fair cash value of taxable real a nd personal property
99		-	pursuant to requirements of law;
100		-	5. "Assessed valuation" or "assess ed value" means the
101		-	percentage of the fair cash value of personal property, or the
102		-	percentage of the taxable fair cash value of real property, pursuant
103		-	to the provisions of Sections 8 and 8B of Article X of the Oklahoma
104		-	Constitution, either of individual i tems of personal property,
105		-	parcels of real property or the aggregate total of s uch individual
106		-	taxable items or parcels within a jurisdiction;
107		-	6. "Assessment percentag e" means the percentage applied to
108		-	personal property and real p roperty pursuant to Sectio n 8 of Article
109		-	X of the Oklahoma Constitution;
110		-	7. "Assessment ratio" means the relationship between assessed
111		-	value and taxable fair cash value for a county or for use categories
112		-	within a county expressed as a percentage determine d in the annual
113		-	equalization ratio study;
	90	+	valuation methodology to be used for the property, whether the
	91	+	methodology consists of the cost approach, an income and expense
	92	+	approach or sales comparison approach, and shall be complete enough
	93	+	in order to establish the fair cash value of the property in
	94	+	accordance with accepted standards for mass appraisal practice.
	95	+	C. Information gathered during the physical inspection shall be
	96	+	recorded using a standard method as prescribed by the Oklahoma Tax
	97	+	Commission in computerized or noncomputerized form. The information
	98	+	may include property ownership, location, size, use, use category, a
	99	+	physical description of the land and improvements or such other
	100	+	information as may be required.
	101	+	D. In order to conduct the visual in spections of real property
	102	+	during the four-year cycle, each county assessor shall acquire and
	103	+	maintain cadastral maps and a parcel identific ation system. The
	104	+	standards for the cadastral maps and the parcel identification
	105	+	system shall be uniform for each c ounty of the state and shall be in
	106	+	such form as developed by the Ad Valorem Task Force.
	107	+	E. The county assessor shall maintain a comprehensi ve sales
	108	+	file for each parcel of real property within the county containing
	109	+	relevant property characteristics, sales price information,
	110	+	adjustments to sales price for purposes of cash equivalency,
	111	+	transaction terms and such other information as may be requ ired in
	112	+	order to establish the fair cash value of taxable real property.
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115		-	ENGR. H. A. to ENGR. S. B. N O. 684 Page 3 1
	114	+	SB684 HFLR Page 3
	115	+	BOLD FACE denotes Committee Amendments. 1
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140		-	8. "Assessment roll" means a computerized or noncomputerized
141		-	record required by law to be kept by the county assessor and
142		-	containing information about property within a taxing jurisdiction;
143		-	9. "Assessment year" m eans the year beginning Ja nuary 1 of each
144		-	calendar year and ending on December 31 preceding the following
145		-	January 1 assessment date;
146		-	10. "Circuit breaker" means the form of property tax relief
147		-	provided by Sections 2904 through 2911 of this title;
148		-	11. "Class of subjects" means a c ategory of property
149		-	specifically designated pursuant to provisions of the Oklah oma
150		-	Constitution for purposes of ad valorem taxation;
151		-	12. "Code" means the Ad Valorem T ax Code, Section 2801 et seq.
152		-	of this title;
153		-	13. "Coefficient of dispersion" means a sta tistical measure of
154		-	assessment uniformity for a category of property or for all property
155		-	within a taxing jurisdiction;
156		-	14. "Confidence level" means a statistical proc edure for
157		-	determining the degree of reliability for use in repo rting the
158		-	assessment ratio for a taxing jurisdiction;
159		-	15. "Cost approach" means a method used to establi sh the fair
160		-	cash value of property involving an estimate of current construction
161		-	cost of improvements, subtracting accrued depreciation including any
162		-	loss in value that may be c aused by physical deterioration,
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189		-	functional obsolescence or economic obsolescen ce and adding the
190		-	value of the land.
191		-	a. Physical deterioration is a cause of depreciatio n that
192		-	is a loss in value due to ordinary wear and tear and
193		-	the forces of nature.
194		-	b. Functional or internal obsolescence is the loss in
195		-	value of a property resulting fr om changes in tastes,
196		-	preferences, technical innovations or market
197		-	standards.
198		-	c. Economic or external obsolescence is a cause of
199		-	depreciation that is a loss in value as a result of
200		-	impairment in utility and desirability caused by
201		-	factors outside the bounda ries of the property or loss
202		-	of value in a property (relative to the cost of
203		-	replacing it with a property of equal utility) that
204		-	stems from factors ext ernal to the property;
205		-	16. "County board of equalization" means the board which, upon
206		-	hearing competent evidence, has the authority to correct and adjust
207		-	the assessment rolls in its respective county to conform to fair
208		-	cash value and such other responsibi lities as prescribed in Se ction
209		-	2801 et seq. of this title;
210		-	17. "Equalization" means the process for mak ing adjustments to
211		-	taxable property values within a county by analyzing the
212		-	relationships between assessed values and fair cash values in one or
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239		-	more use categories within the c ounty or between counties by
240		-	analyzing the relationship between assessed value and fair cash
241		-	value in each county;
242		-	18. "Equalization ratio study" means the analysis o f the
243		-	relationships between assessed values and fair cash value s in the
244		-	manner provided by law;
245		-	19. "Fair cash value" or "market value" means the value or
246		-	price at which a willing buyer would purchase property and a willing
247		-	seller would sell property if b oth parties are knowledgeable about
248		-	the property and its uses a nd if neither party is und er any undue
249		-	pressure to buy or sell and for real property shall mean the value
250		-	for the highest and best use for which such property was actually
251		-	used, or was previous ly classified for use, during the calendar year
252		-	next preceding the applicable January 1 a ssessment date;
253		-	20. "Homestead exemption" means the reduction in the taxable
254		-	value of a homestead as authorized by law;
255		-	21. "Income and expense approach" means a met hod to estimate
256		-	fair cash value of a property by determining th e present value of
257		-	the projected income stream;
258		-	22. "Inspection" means the inspection of real or persona l
259		-	property by using on-ground site inspections or by using publicly
260		-	and commercially ava ilable aerial image overlays for purposes of
261		-	valuation, data collection, or any other pur poses related to the
262		-	duties of county assessors ;
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289		-	23. "List and assess" means the process by which taxable
290		-	property is discovered, its description recorded for purpos es of ad
291		-	valorem taxation and its fair cash value and taxable fair cash value
292		-	are established;
293		-	23. 24. "Mill" or "millage" means the rate of tax imposed upon
294		-	taxable value. One (1) mill equals One Dollar ($1.00) of tax for
295		-	each One Thousand Dollars ($1,00 0.00) of taxable value;
296		-	24. 25. "Multiple regression analysis" means a statistical
297		-	technique for estimating unknown data on the basis of known and
298		-	available data;
299		-	25. 26. "Parcel" means a contiguous area of land described in a
300		-	single description by a deed or other instrument or as one of a
301		-	number of lots on a plat or plan, separately owned and capable of
302		-	being separately conveyed;
303		-	26. 27. "Sales comparison approach" mean s the collection,
304		-	verification, and screening of sales data, stratification of sales
305		-	information for purposes of comparison and use of such information
306		-	to establish the fair cash value of taxable property;
307		-	27. 28. "State Board of Equalization" means the Bo ard
308		-	responsible for valuation of railroad, airline and public service
309		-	corporation property and the adjustment and equalization of all
310		-	property values both centrally and loc ally assessed;
311		-	28. 29. "Taxable value" means the percentage of the fair cash
312		-	value of personal property or the taxable fair cash value of real
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339		-	property, less applicable exe mptions, upon which an ad valorem tax
340		-	rate is levied pursuant to the provisions of Section 8 and Section
341		-	8B of Article X of the Oklahoma Constitution;
342		-	29. 30. "Taxable fair cash value" means the fair cash value of
343		-	locally assessed real property as capped p ursuant to Section 8B of
344		-	Article X of the Oklahoma Constitution;
345		-	30. 31. "Use category" means a subcategory of real property,
346		-	that is either agricultural use, residenti al use or
347		-	commercial/industrial use but does not and shall not constitute a
348		-	class of subjects within the meaning of the Oklahoma Constitution
349		-	for purposes of ad valorem taxation;
350		-	31. 32. "Use value" means the basis for establishing fair cash
351		-	value of real property pursuant to the requirement of Section 8 of
352		-	Article X of the Oklahoma Constitut ion; and
353		-	32. 33. "Visual inspection program" means the program required
354		-	in order to gather data about real property from physical
355		-	examination of the property and improv ements in order to establish
356		-	the fair cash values of properties so inspected at least on ce each
357		-	four (4) years and the fair cash values of similar properties on an
358		-	annual basis.
359		-	SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821, is
360		-	amended to read as follows:
361		-	Section 2821. A. Each county assessor shall cause real
362		-	property to be physically inspected as part of the visual inspection
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389		-	cycle and shall require such examination as will provide adequate
390		-	data from which to make accurate valu ations. After an initial
391		-	physical inspection o f property, changes to property may be
392		-	discovered with the use of digital aerial images taken by fi xed-wing
393		-	aircraft complying with Federal Aviation Administration regulations.
394		-	B. The information gathered from the physical inspection shall
395		-	be relevant to the type of property involved, its use category, the
396		-	valuation methodology to be used for the property, whether the
397		-	methodology consists of the cost approach, an income and expense
398		-	approach or sales comparison approach, and shall be complete enough
399		-	in order to establish the fair cash value of the property in
400		-	accordance with accepted standards for mass appraisal practice.
401		-	C. Information gathered during the physical inspection shall be
402		-	recorded using a standard method as prescribed by the Oklahoma Tax
403		-	Commission in computerized or noncomputerized form. The information
404		-	may include property ownership, location, size, use, use category, a
405		-	physical description of the land and improvements or such other
406		-	information as may be required.
407		-	D. In order to conduct the visual in spections of real property
408		-	during the four-year cycle, each county assessor shall acquire and
409		-	maintain cadastral maps and a parcel identification system. The
410		-	standards for the cadastral maps and the parcel identification
411		-	system shall be uniform for each c ounty of the state and shall be in
412		-	such form as developed by the Ad Valorem Task Force.
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439		-	E. The county assessor shall maintain a comprehensive sales
440		-	file for each parcel of real property within the county containing
441		-	relevant property characteristics, sales price information,
442		-	adjustments to sales price for purposes of cash equivalency,
443		-	transaction terms and such oth er information as may be required in
444		-	order to establish the fair cash value of taxable real property.
445	140		Each county assessor shall ensure that the office is equipped
446	141		with adequate drafting facilities, tools, equipment and supplies in
447	142		order to produce or update maps, sketches or drawings necessary to
448	143		support the proper administration of the ad valorem tax and such
449	144		other tools or equipment as may be re quired to perform duties
450	145		imposed by law for the discovery an d valuation of taxable property.
451		-	SECTION 3. It being immediately necessary for the preservation
452		-	of the public peace, health or safety, an emergency is hereby
453		-	declared to exist, by reason whereof this act shall t ake effect and
454		-	be in full force from and after its passage an d approval."
	146	+	SECTION 2. This act shall beco me effective November 1, 2023.
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482		-	Passed the House of Representatives the 24th day of April, 2023.
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487		-
488		-	Presiding Officer of the House of
489		-	Representatives
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492		-	Passed the Senate the ____ day of _______ ___, 2023.
493		-
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498		-	Presiding Officer of the Senate
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526		-	ENGROSSED SENATE
527		-	BILL NO. 684 By: Stanley of the Senate
528		-
529		-	and
530		-
531		-	Kannady of the House
532		-
533		-
534		-
535		-
536		-	[ inspection of real propert y - technology -
537		-	effective date ]
538		-
539		-
540		-
541		-
542		-	BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
543		-	SECTION 4. AMENDATORY 68 O.S. 2021, Section 2821, is
544		-	amended to read as follows:
545		-	Section 2821. A. Each county assessor shall cause real
546		-	property to be physically inspected as part of the visual inspection
547		-	cycle and shall require such examination as will provide adequate
548		-	data from which to make accurate valuations. After the initial
549		-	physical inspection o f property, changes to property may be
550		-	discovered with the use of digital aerial images taken by fi xed-wing
551		-	aircraft complying with Federal Aviation Administration regulations.
552		-	B. The information gathered from the physical inspection shall
553		-	be relevant to the type of property involved, its use category, the
554		-	valuation methodology to be used for the property, whether the
555		-	methodology consists of the cost approach, an income and expense
556		-	approach or sales comparison approach, and shall be complete enough
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583		-	in order to establish the fair cash value of the property in
584		-	accordance with accepted standards for mass appraisal practice.
585		-	C. Information gathered during the physical inspection shall be
586		-	recorded using a standard method as prescribed by the Oklahoma Tax
587		-	Commission in computerized or noncomputerized form. The information
588		-	may include property ownership, location, size, use, use category, a
589		-	physical description of the land and improvements or such other
590		-	information as may be required.
591		-	D. In order to conduct the visual in spections of real property
592		-	during the four-year cycle, each county assessor shall acquire and
593		-	maintain cadastral maps and a parcel identific ation system. The
594		-	standards for the cadastral maps and the parcel identification
595		-	system shall be uniform for each c ounty of the state and shall be in
596		-	such form as developed by the Ad Valorem Task Force.
597		-	E. The county assessor shall maintain a comprehensi ve sales
598		-	file for each parcel of real property within the county containing
599		-	relevant property characteristics, sales price information,
600		-	adjustments to sales price for purposes of cash equivalency,
601		-	transaction terms and such other information as may be requ ired in
602		-	order to establish the fair cash value of taxable real property.
603		-	Each county assessor shall ensure that the office is equipped
604		-	with adequate drafting facilities, tools, equipment and supplies in
605		-	order to produce or update maps, sketches or drawings necessary to
606		-	support the proper administration of the ad valorem tax and such
607		-
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633		-	other tools or equipment as may be re quired to perform duties
634		-	imposed by law for the discovery and valuation of taxable property.
635		-	SECTION 5. This act shall beco me effective November 1, 2023.
636		-	Passed the Senate the 22nd day of March, 2023.
637		-
638		-
639		-
640		-	Presiding Officer of the Senate
641		-
642		-
643		-	Passed the House of Representatives the ____ day of __________,
644		-	2023.
645		-
646		-
647		-
648		-	Presiding Officer of the House
649		-	of Representatives
650		-
651		-
	148	+	COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT, dated
	149	+	04/04/2023 - DO PASS, As Amended.