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Oklahoma House Bill HB1890

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1890 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 1st Session of the 60th Legislature (2025)
3131
3232 HOUSE BILL 1890 By: May
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3838 AS INTRODUCED
3939
4040 An Act relating to revenue and taxation; amending 68
4141 O.S. 2021, Sections 2802, 2821, 2823, 2906, and 2907,
4242 which relate to ad valorem tax co de, definitions,
4343 inspections, and exemptions; modifying definition to
4444 exclude requirement for physical examination of
4545 property; modifying recording process to exclude
4646 physical inspection; modifying income cap; and
4747 providing an effective date .
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5454 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5555 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is
5656 amended to read as follows:
5757 Section 2802. Definitions.
5858 As used in Section 2801 et seq. of this title:
5959 1. "Accepted standards for mass appraisal practice " means those
6060 standards for the collection and analysis of information about
6161 taxable properties within a taxing jurisdiction permitting the
6262 accurate estimate of fair cash value for similar properties in the
6363 jurisdiction either without direct observation of such similar
6464 properties or without direct sale s price information for such
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9191 similar properties using a reliable statistical or other method to
9292 estimate the values of such properties;
9393 2. "Additional homestead exemption " means the exemption
9494 provided by Section 2890 of this title;
9595 3. "Assessor" means the county assessor and, unless the context
9696 clearly requires otherwise, deputy assessors and persons employed by
9797 the county assessor in performance of duties imposed by law;
9898 4. "Assess and value" means to establish the fair cash value
9999 and taxable fair cash value of taxable real and personal property
100100 pursuant to requirements of law;
101101 5. "Assessed valuation" or "assessed value" means the
102102 percentage of the fair cash value of personal property, or the
103103 percentage of the taxable fair cash value of real property, pursuant
104104 to the provisions of Sections 8 and 8B of Article X of the Oklahoma
105105 Constitution, either of individual items of personal property,
106106 parcels of real property or the aggrega te total of such individual
107107 taxable items or parcels within a jurisdiction;
108108 6. "Assessment percentage " means the percentage applied to
109109 personal property and real property pursuant to Section 8 of Article
110110 X of the Oklahoma Constitution;
111111 7. "Assessment ratio" means the relationship between assessed
112112 value and taxable fair cash value for a county or for use categories
113113 within a county expressed as a percentage determined in the annual
114114 equalization ratio study;
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141141 8. "Assessment roll" means a computerized or nonc omputerized
142142 record required by law to be kept by the county assessor and
143143 containing information about property within a taxing jurisdiction;
144144 9. "Assessment year" means the year beginning January 1 of each
145145 calendar year and ending on December 31 preceding the following
146146 January 1 assessment date;
147147 10. "Circuit breaker" means the form of property tax relief
148148 provided by Sections 2904 through 2911 of this title;
149149 11. "Class of subjects" means a category of property
150150 specifically designated pursuant to provisions of the Oklahoma
151151 Constitution for purposes of ad valorem taxation;
152152 12. "Code" means the Ad Valorem Tax Code, Section 2801 et seq.
153153 of this title;
154154 13. "Coefficient of dispersion " means a statistical measure of
155155 assessment uniformity for a category of proper ty or for all property
156156 within a taxing jurisdiction;
157157 14. "Confidence level" means a statistical procedure for
158158 determining the degree of reliability for use in reporting the
159159 assessment ratio for a taxing jurisdiction;
160160 15. "Cost approach" means a method used to establish the fair
161161 cash value of property involving an estimate of curre nt construction
162162 cost of improvements, subtracting accrued depreciation including any
163163 loss in value that may be caused by physical deterioration,
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190190 functional obsolescence or econom ic obsolescence and adding the
191191 value of the land.
192192 a. Physical deterioration is a cause of depreciation that
193193 is a loss in value due to ordinary wear and tear and
194194 the forces of nature.
195195 b. Functional or internal obsolescence is the loss in
196196 value of a property resulting from changes in tastes,
197197 preferences, technical innovations or marke t
198198 standards.
199199 c. Economic or external obsolescence is a cause of
200200 depreciation that is a loss in value as a result of
201201 impairment in utility and desirability caused by
202202 factors outside the boundaries of the property or loss
203203 of value in a property (relative to the cost of
204204 replacing it with a property of equal utility) that
205205 stems from factors external to the property;
206206 16. "County board of equalization " means the board which, upon
207207 hearing competent evidence, has the authority to correct and adjust
208208 the assessment rolls in its respective county to conform to fair
209209 cash value and such other responsibilities as prescribed in Section
210210 2801 et seq. of this title;
211211 17. "Equalization" means the process for making adjustments to
212212 taxable property values within a county by analyzing the
213213 relationships between assessed values and fair cash values in one or
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240240 more use categories within the county or between counties by
241241 analyzing the relationship between as sessed value and fair cash
242242 value in each county;
243243 18. "Equalization ratio stud y" means the analysis of the
244244 relationships between assessed values and fair cash values in the
245245 manner provided by law;
246246 19. "Fair cash value" or "market value" means the value or
247247 price at which a willing buyer would purchase property and a willing
248248 seller would sell property if both parties are knowledgeable about
249249 the property and its uses and if neither party is under any undue
250250 pressure to buy or sell and for real property shall m ean the value
251251 for the highest and best use for which such property was actuall y
252252 used, or was previously classified for use, during the calendar year
253253 next preceding the applicable January 1 assessment date;
254254 20. "Homestead exemption" means the reduction in the taxable
255255 value of a homestead as authorized by law;
256256 21. "Income and expense approach " means a method to estimate
257257 fair cash value of a property by determining the present value of
258258 the projected income stream;
259259 22. "List and assess" means the process by which taxable
260260 property is discovered, its description recorded for purposes of ad
261261 valorem taxation and its fair cash value and taxable fair cash value
262262 are established;
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289289 23. "Mill" or "millage" means the rate of tax imposed upon
290290 taxable value. One (1) mill equals One Dollar ($1.00) of tax for
291291 each One Thousand Dollars ($1,000.00) of taxable value;
292292 24. "Multiple regression analysis " means a statistical
293293 technique for estimating unknown data on the basis of known and
294294 available data;
295295 25. "Parcel" means a contiguous area of land described in a
296296 single description by a deed or other instr ument or as one of a
297297 number of lots on a plat or plan, separately owned and capable of
298298 being separately conveyed;
299299 26. "Sales comparison approach " means the collection,
300300 verification, and screening of sales data, stratification of sales
301301 information for purposes of comparison and use of such information
302302 to establish the fair cash value of taxable property;
303303 27. "State Board of Equalization " means the Board responsible
304304 for valuation of railroad, airline and public service corporation
305305 property and the adjustmen t and equalization of all property values
306306 both centrally and locally assessed;
307307 28. "Taxable value" means the percentage of the fair cash value
308308 of personal property or the taxabl e fair cash value of real
309309 property, less applicable exemptions, upon which an ad valorem tax
310310 rate is levied pursuant to the provisions of Section 8 and Section
311311 8B of Article X of the Oklahoma Constitution;
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338338 29. "Taxable fair cash value " means the fair cash value of
339339 locally assessed real property as capped pursuant to Section 8B of
340340 Article X of the Oklahoma Constitution;
341341 30. "Use category" means a subcategory of real property, that
342342 is either agricultural use, residential use or commercial/industrial
343343 use but does not and shall not constitute a class of subjects within
344344 the meaning of the Oklahoma Constitution for purposes of ad valorem
345345 taxation;
346346 31. "Use value" means the basis for establishing fair cash
347347 value of real property pursuant to the requirement of Se ction 8 of
348348 Article X of the Oklahoma Constitution; and
349349 32. "Visual inspection program" means the program required in
350350 order to gather data about real property from physical examination
351351 of the property and improvements in order to establish the fair cash
352352 values of properties so inspected at least once each four (4) years
353353 and the fair cash values of similar properties on an annual basis.
354354 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821, is
355355 amended to read as follows:
356356 Section 2821. Physical inspection of real property - Type of
357357 information to be gathered - Recording - Cadastral maps and parcel
358358 identification system to be required and maintained - Comprehensive
359359 sales file - Office equipment.
360360 A. Each county assessor shall cause real pr operty to be
361361 physically inspected as part of the visual inspection cycle and
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388388 shall require such examination as will provide adequate data from
389389 which to make accurate valuations.
390390 B. The information gathered from the physical inspection shall
391391 be relevant to the type of property involved, its use category, the
392392 valuation methodology to be used for the property, whether the
393393 methodology consists of the cost approach, an income and expense
394394 approach or sales comparison approach, and shall be complete enough
395395 in order to establish the fair cash value of the property in
396396 accordance with accepted standards for mass appraisal practice.
397397 C. Information gathered during the physical inspection shall be
398398 recorded using a standard method as prescribed by the Oklahoma Tax
399399 Commission in computerized or noncomputerized form. The information
400400 may include property ownership, location, size, use, use category, a
401401 physical description of the land and improvements or such other
402402 information as may be required.
403403 D. In order to conduct the visual inspections of real property
404404 during the four-year cycle, each county assessor shall acquire and
405405 maintain cadastral maps and a parcel identification system. The
406406 standards for the cadastral maps and the parcel identification
407407 system shall be uniform for each county of the state and shall be in
408408 such form as developed by the Ad Valorem Task Force.
409409 E. The county assessor shall maintain a comprehensive sales
410410 file for each parcel of real property within the county containing
411411 relevant property characterist ics, sales price information,
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438438 adjustments to sales price for purposes of cash equivalency,
439439 transaction terms and such other information as may be required in
440440 order to establish the fair cash value of taxable real property.
441441 Each county assessor shall ensure that the office is equipped
442442 with adequate drafting facilities, tools, equipme nt and supplies in
443443 order to produce or update maps, sketches or drawings necessary to
444444 support the proper administration of the ad valorem tax and such
445445 other tools or equipment as may be required to perform duties
446446 imposed by law for the discovery and valuation of taxable property.
447447 SECTION 3. AMENDATORY 68 O.S. 2021, Section 2823, is
448448 amended to read as follows:
449449 Section 2823. Cost of comprehensive visual in spection program.
450450 A. For each fiscal year, the cost of the comprehensive prog ram
451451 of visual inspections for real property and the cost of physical
452452 inspections of personal property shall be paid by appropriate
453453 warrants from those who receive the revenues of the mill rates
454454 levied on the property of the county as prescribed by this section.
455455 School districts are hereby authorized to pay such costs from
456456 revenues accruing to their building funds. The county assessor
457457 shall prepare a budget for the comprehensive program of visual
458458 inspections for real property and the cost of physical inspe ctions
459459 of personal property and file such budget with the county excise
460460 board or county budget board.
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487487 B. The county excise board or county budget board shall
488488 apportion such cost among the various recipients of revenues from
489489 the mill rates levied, including the county, all cities and towns,
490490 all school districts, all sinking funds of such recipients, and all
491491 jurisdictions specified in subsection D of this section, in the
492492 ratio which each recipient's total tax collection authorized from
493493 its mill rates levied for the preceding year bears to the total tax
494494 collection authorized of all recipients from all their mill rates
495495 levied for the preceding year. The cost shall include only those
496496 expenses directly attributable to the visual inspection program and
497497 those expenses directly attributable to physical onsite inspections
498498 of personal property and shall not include any expenses of the
499499 office of the county assessor which, in the judgment of t he county
500500 excise board or county budget board, are expenses of county
501501 assessor's office which would exist in the absence of such program
502502 or in the absence of physical onsite inspection of personal
503503 property. Expenses that are attributable both to the visua l
504504 inspection program and physical inspection of personal property, and
505505 which would exist in the absence of such program or inspection,
506506 including but not limited to salaries, employee benefits, office
507507 supplies and equipment, may be prorated; provided, no po rtion of the
508508 salary of the county assessor shall be included in such costs.
509509 C. Upon receipt of the billing statement provided for in
510510 subsections D and E of this section by each such recipient, the mill
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537537 rates to be established by the board for each such re cipient for the
538538 current year shall include and be based upon such amounts and shall
539539 constitute an appropriation of such amounts to the county assessor
540540 for expenditure for the expenses of administering the visual
541541 inspection program each year. In the case o f a sinking fund of a
542542 recipient, if, after approving its budget, the governing body of a
543543 recipient notifies the board in writing that there are no funds
544544 appropriated to pay the amount of the billing statement for such
545545 sinking fund, such notice shall consti tute conclusive evidence of a
546546 financial obligation of the recipient as it relates to such sinking
547547 fund. The board may seek a judgment for the amount of such
548548 obligation and court costs in the district court of the county in
549549 which the board is located.
550550 D. The county assessor shall render a statement to each of the
551551 jurisdictions within the county which receive revenue from an ad
552552 valorem mill rate. Such statement shall include the following
553553 information:
554554 1. The current fiscal year in which the charge has bee n
555555 incorporated in the jurisdiction 's budget;
556556 2. All jurisdictions receiving statements from the county
557557 assessor, the mill rate for each in the previous year, and the
558558 proportion of each to the combined mill rates of all jurisdictions
559559 within the county for the previous year. The proportions specified
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586586 in this paragraph should equal a total of one hundred percent
587587 (100%);
588588 3. The charge for the entity receiving the statement as well as
589589 the charge for each jurisdiction of the county based upon the
590590 proportions specified in paragraph 2 of this subsection. The total
591591 of all current year charges for all county jurisdictions should
592592 equal the total visual inspection program budget for the current
593593 fiscal year;
594594 4. The amount of the total budget for the office of the co unty
595595 assessor and the percentage that visual inspection program expenses
596596 are of such total budget; and
597597 5. A copy of the County Budget Visual Inspection Account and a
598598 brief description of the areas to be visually inspected for the
599599 current fiscal year, cons istent with the plan on file with the
600600 Oklahoma Tax Commission pursuant to Section 2820 of this title.
601601 E. In any county wherein any jurisdiction 's budget and mill
602602 rates are not subject to review and approval by the county excise
603603 board, the county assessor shall nevertheless include any such
604604 jurisdiction in the calculations required under subsection A of this
605605 section. The county assessor shall also render a billing statement
606606 to any such jurisdiction showing the charge for the current fiscal
607607 year due from the jurisdiction. Such billing statement shall also
608608 show all the information specified in subsection D of this section.
609609 Such billing statement shall clearly indicate that the charge
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636636 payable by the jurisdiction is due and payable by December 31 of the
637637 current fiscal year.
638638 SECTION 4. AMENDATORY 68 O.S. 2021, Section 2906, is
639639 amended to read as follows:
640640 Section 2906. Any person sixty-five (65) years of age or older
641641 or any totally disabled person, who is the head of a household, a
642642 resident of and domiciled in this state during the entire preceding
643643 calendar year, and whose gross household income for such year does
644644 not exceed Twelve Thousand Dollars ($12,000.00) Thirty Thousand
645645 Dollars ($30,000.00) may file a claim for property tax relie f on the
646646 amount of property taxes paid on the household occupied by such
647647 person during the preceding calendar year. Each head of household
648648 shall be allowed to file only one claim per year.
649649 SECTION 5. AMENDATORY 68 O.S. 2021, Sect ion 2907, is
650650 amended to read as follows:
651651 Section 2907. A. The amount of any claim filed pursuant to
652652 Section 108 of this act shall be for the amount of the property
653653 taxes paid by the claimant for the preceding calendar year which
654654 exceeds one percent (1%) of the household income, but no claim for
655655 property tax relief shall exceed Two Hundred Dollars ($200.00) One
656656 Thousand Dollars ($1,000.00) .
657657 B. The right to file a claim and to receive property tax relief
658658 under the provisions of this act shall be personal t o the claimant
659659 and shall not survive his death, except that a surviving spouse of
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686686 the claimant may receive benefits hereunder upon the timely filing
687687 of a claim.
688688 SECTION 6. This act shall become effective November 1, 2025.
689689
690690 60-1-12150 AO 01/02/25