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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 684 By: Stanley of the Senate
and
Kannady of the House
[ inspection of real propert y - technology -
effective date ]
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
"[ inspection of real propert y - technology -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, 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 permitti ng the
accurate estimate of fair cash value for similar properties in the
jurisdiction either without dir ect observation of such similar
properties or without direct sales price information for such
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similar properties using a reliable statistical or other method to
estimate the values of such properties;
2. "Additional homestead exemption" means the exemptio n
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 a nd personal property
pursuant to requirements of law;
5. "Assessed valuation" or "assess ed value" means the
percentage of the fair cash value of personal property, or the
percentage of the taxable fair cash value of real property, pursuant
to the provisions of Sections 8 and 8B of Article X of the Oklahoma
Constitution, either of individual i tems of personal property,
parcels of real property or the aggregate total of s uch individual
taxable items or parcels within a jurisdiction;
6. "Assessment percentag e" means the percentage applied to
personal property and real p roperty 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 categories
within a county expressed as a percentage determine d 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 assessor and
containing information about property within a taxing jurisdiction;
9. "Assessment year" m eans the year beginning Ja nuary 1 of each
calendar year and ending on December 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 c ategory of property
specifically designated pursuant to provisions of the Oklah oma
Constitution for purposes of ad valorem taxation;
12. "Code" means the Ad Valorem T ax Code, Section 2801 et seq.
of this title;
13. "Coefficient of dispersion" means a sta tistical measure of
assessment uniformity for a category of property or for all property
within a taxing jurisdiction;
14. "Confidence level" means a statistical proc edure for
determining the degree of reliability for use in repo rting the
assessment ratio for a taxing jurisdiction;
15. "Cost approach" means a method used to establi sh 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 obsolescen ce and adding the
value of the land.
a. Physical deterioration is a cause of depreciatio n 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 fr om changes in tastes,
preferences, technical innovations 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 caused by
factors outside the bounda ries of the property or loss
of value in a property (relative to the cost of
replacing it with a property of equal utility) that
stems from factors ext ernal to the property;
16. "County board of equalization" means the board which, upon
hearing competent evidence, has the authority to correct and adjust
the assessment rolls in its respective county to conform to fair
cash value and such other responsibi lities as prescribed in Se ction
2801 et seq. of this title;
17. "Equalization" means the process for mak ing 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 c ounty or between counties by
analyzing the relationship between assessed value and fair cash
value in each county;
18. "Equalization ratio study" means the analysis o f the
relationships between assessed values and fair cash value s 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 b oth parties are knowledgeable about
the property and its uses a nd if neither party is und er any undue
pressure to buy or sell and for real property shall mean the value
for the highest and best use for which such property was actually
used, or was previous ly classified for use, during the calendar year
next preceding the applicable January 1 a ssessment date;
20. "Homestead exemption" means the reduction in the taxable
value of a homestead as authorized by law;
21. "Income and expense approach" means a met hod to estimate
fair cash value of a property by determining th e present value of
the projected income stream;
22. "Inspection" means the inspection of real or persona l
property by using on-ground site inspections or by using publicly
and commercially ava ilable aerial image overlays for purposes of
valuation, data collection, or any other pur poses related to the
duties of county assessors ;
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23. "List and assess" means the process by which taxable
property is discovered, its description recorded for purpos es of ad
valorem taxation and its fair cash value and taxable fair cash value
are established;
23. 24. "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 ($1,00 0.00) of taxable value;
24. 25. "Multiple regression analysis" means a statistical
technique for estimating unknown data on the basis of known and
available data;
25. 26. "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 owned and capable of
being separately conveyed;
26. 27. "Sales comparison approach" mean s the collection,
verification, and screening of sales data, stratification of sales
information for purposes of comparison and use of such information
to establish the fair cash value of taxable property;
27. 28. "State Board of Equalization" means the Bo ard
responsible for valuation of railroad, airline and public service
corporation property and the adjustment and equalization of all
property values both centrally and loc ally assessed;
28. 29. "Taxable value" means the percentage of the fair cash
value of personal property or the taxable fair cash value of real
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property, less applicable exe mptions, 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. 30. "Taxable fair cash value" means the fair cash value of
locally assessed real property as capped p ursuant to Section 8B of
Article X of the Oklahoma Constitution;
30. 31. "Use category" means a subcategory of real property,
that is either agricultural use, residenti al use or
commercial/industrial use 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. 32. "Use value" means the basis for establishing fair cash
value of real property pursuant to the requirement of Section 8 of
Article X of the Oklahoma Constitut ion; and
32. 33. "Visual inspection program" means the program required
in order to gather data about real property from physical
examination of the property and improv ements in order to establish
the fair cash values of properties so inspected at least on ce 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
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cycle and shall require such examination as will provide adequate
data from which to make accurate valu ations. After an initial
physical inspection o f property, changes to property may be
discovered with the use of digital aerial images taken by fi xed-wing
aircraft complying with Federal Aviation Administration regulations.
B. The information gathered from the physical inspection shall
be relevant to the type of property involved, its use category, the
valuation methodology to be used for the property, whether the
methodology consists of the cost approach, an income and expense
approach or sales comparison approach, and shall be complete enough
in order to establish the fair cash value of the property in
accordance with accepted standards for mass appraisal practice.
C. Information gathered during the physical inspection shall be
recorded using a standard method as prescribed by the Oklahoma Tax
Commission in computerized or noncomputerized form. The information
may include property ownership, location, 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 in spections of real property
during the four-year cycle, each county assessor shall acquire and
maintain cadastral maps and a parcel identification system. The
standards for the cadastral maps and the parcel identification
system shall be uniform for each c ounty of the state and shall be in
such form as developed by the Ad Valorem Task Force.
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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 price for purposes of cash equivalency,
transaction terms and such oth er information as may be required in
order to establish the fair cash value of taxable real property.
Each county assessor shall ensure that the office is equipped
with adequate drafting facilities, tools, equipment and supplies in
order to produce or upda te maps, sketches or drawings necessary to
support the proper administration of the ad valorem tax and such
other tools or equipment as may be re quired to perform duties
imposed by law for the discovery an d valuation of taxable property.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall t ake effect and
be in full force from and after its passage an d approval."
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Passed the House of Representatives the 24th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 684 By: Stanley of the Senate
and
Kannady of the House
[ inspection of real propert y - technology -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
SECTION 4. 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 the initial
physical inspection o f property, changes to property may be
discovered with the use of digital aerial images taken by fi xed-wing
aircraft complying with Federal Aviation Administration regulations.
B. The information gathered from the physical inspection shall
be relevant to the type of property involved, its use category, the
valuation methodology to be used for the property, 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 the fair cash value of the property in
accordance with accepted standards for mass appraisal practice.
C. Information gathered during the physical inspection shall be
recorded using a standard method as prescribed by the Oklahoma Tax
Commission in computerized or noncomputerized form. The information
may include property ownership, location, 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 in spections of real property
during the four-year cycle, each county assessor shall acquire and
maintain cadastral maps and a parcel identific ation system. The
standards for the cadastral maps and the parcel identification
system shall be uniform for each c ounty of the state and shall be in
such form as developed by the Ad Valorem Task Force.
E. The county assessor shall maintain a comprehensi ve sales
file for each parcel of real property within the county containing
relevant property characteristics, sales price information,
adjustments to sales price for purposes of cash equivalency,
transaction terms and such other information as may be requ ired in
order to establish the fair cash value of taxable real property.
Each county assessor shall ensure that the office is equipped
with adequate drafting facilities, tools, equipment and supplies in
order to produce or update maps, sketches or drawings necessary to
support the proper administration of the ad valorem tax and such
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other tools or equipment as may be re quired to perform duties
imposed by law for the discovery and valuation of taxable property.
SECTION 5. This act shall beco me effective November 1, 2023.
Passed the Senate the 22nd day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives