| 94 | 144 | | jurisdiction either without direct observation of such similar |
|---|
| 95 | 145 | | properties or without direct sales price information for such |
|---|
| 96 | 146 | | similar properties using a reliable statistical or other method to |
|---|
| 97 | 147 | | estimate the values of such properties; |
|---|
| 98 | 148 | | 2. “Additional homestead exemption” means the exemption |
|---|
| 99 | 149 | | provided by Section 2890 of this title; |
|---|
| 100 | 150 | | 3. “Assessor” means the county assessor and, unless the context |
|---|
| 101 | 151 | | clearly requires otherwise, deputy assessors and persons employed by |
|---|
| 102 | 152 | | the county assessor in performance of duties imposed by law; |
|---|
| 103 | 153 | | 4. “Assess and value” means to est ablish the fair cash value |
|---|
| 104 | 154 | | and taxable fair cash value of taxable real and personal property |
|---|
| 105 | 155 | | pursuant to requirements of law; |
|---|
| 106 | 156 | | 5. “Assessed valuation” or “assessed value” means the |
|---|
| 107 | 157 | | percentage of the fair cash value of personal property, or the |
|---|
| 108 | 158 | | percentage of the taxable fair cash value of real property, pursuant |
|---|
| 109 | 159 | | to the provisions of Sections 8 and 8B of Article X of the Oklahoma |
|---|
| 110 | 160 | | Constitution, either of individual items of personal property, |
|---|
| 111 | 161 | | parcels of real property or the aggrega te total of such individual |
|---|
| 112 | 162 | | taxable items or parcels within a jurisdiction; |
|---|
| 113 | 163 | | 6. “Assessment percentage” means the percentage applied to |
|---|
| 114 | 164 | | personal property and real property pursuant to Section 8 of Article |
|---|
| 115 | 165 | | X of the Oklahoma Constitution; |
|---|
| 144 | 218 | | within a county expressed as a percentage determined in the annual |
|---|
| 145 | 219 | | equalization ratio study; |
|---|
| 146 | 220 | | 8. “Assessment roll” means a computerized or nonc omputerized |
|---|
| 147 | 221 | | record required by law to be kept by the county assessor and |
|---|
| 148 | 222 | | containing information about property within a taxing jurisdiction; |
|---|
| 149 | 223 | | 9. “Assessment year” means the year beginning January 1 of each |
|---|
| 150 | 224 | | calendar year and ending on December 31 preceding the following |
|---|
| 151 | 225 | | January 1 assessment date; |
|---|
| 152 | 226 | | 10. “Circuit breaker” means the form of property tax relief |
|---|
| 153 | 227 | | provided by Sections 2904 through 2911 of this title; |
|---|
| 154 | 228 | | 11. “Class of subjects” means a category of property |
|---|
| 155 | 229 | | specifically designated pursuant to provisions of the Oklahoma |
|---|
| 156 | 230 | | Constitution for purposes of ad valorem taxation; |
|---|
| 157 | 231 | | 12. “Code” means the Ad Valorem Tax Code, Section 2801 et seq. |
|---|
| 158 | 232 | | of this title; |
|---|
| 159 | 233 | | 13. “Coefficient of dispersion” means a statistical measure of |
|---|
| 160 | 234 | | assessment uniformity for a category of property or for all property |
|---|
| 161 | 235 | | within a taxing jurisdiction; |
|---|
| 162 | 236 | | 14. “Confidence level” means a statistical procedure for |
|---|
| 163 | 237 | | determining the degree of reliability for use in reporting the |
|---|
| 164 | 238 | | assessment ratio for a taxing jurisdiction; |
|---|
| 194 | 292 | | loss in value that may be caused by physical deterioration, |
|---|
| 195 | 293 | | functional obsolescence or economic obsolescence and adding th e |
|---|
| 196 | 294 | | value of the land. |
|---|
| 197 | 295 | | a. Physical deterioration is a cause of depreciation that |
|---|
| 198 | 296 | | is a loss in value due to ordinary wear and tear and |
|---|
| 199 | 297 | | the forces of nature. |
|---|
| 200 | 298 | | b. Functional or internal obsolescence is the loss in |
|---|
| 201 | 299 | | value of a property resulting from changes in ta stes, |
|---|
| 202 | 300 | | preferences, technical innovations or market |
|---|
| 203 | 301 | | standards. |
|---|
| 204 | 302 | | c. Economic or external obsolescence is a cause of |
|---|
| 205 | 303 | | depreciation that is a loss in value as a result of |
|---|
| 206 | 304 | | impairment in utility and desirability caused by |
|---|
| 207 | 305 | | factors outside the boundaries of the prop erty or loss |
|---|
| 208 | 306 | | of value in a property (relative to the cost of |
|---|
| 209 | 307 | | replacing it with a property of equal utility) that |
|---|
| 210 | 308 | | stems from factors external to the property; |
|---|
| 211 | 309 | | 16. “County board of equalization” means the board which, upon |
|---|
| 212 | 310 | | hearing competent evidence, has th e authority to correct and adjust |
|---|
| 213 | 311 | | the assessment rolls in its respective county to conform to fair |
|---|
| 244 | 366 | | relationships between assessed values and fair cash values in one or |
|---|
| 245 | 367 | | more use categories within the county or between counties by |
|---|
| 246 | 368 | | analyzing the relationship between as sessed value and fair cash |
|---|
| 247 | 369 | | value in each county; |
|---|
| 248 | 370 | | 18. “Equalization ratio study” means the analysis of the |
|---|
| 249 | 371 | | relationships between assessed values and fair cash values in the |
|---|
| 250 | 372 | | manner provided by law; |
|---|
| 251 | 373 | | 19. “Fair cash value” or “market value” means the value or |
|---|
| 252 | 374 | | price at which a willing buy er would purchase property and a willing |
|---|
| 253 | 375 | | seller would sell property if both parties are knowledgeable about |
|---|
| 254 | 376 | | the property and its uses and if neither party is under any undue |
|---|
| 255 | 377 | | pressure to buy or sell and for real property shall m ean the value |
|---|
| 256 | 378 | | for the highest and best use for which such property was actually |
|---|
| 257 | 379 | | used, or was previously classified for use, during the calendar year |
|---|
| 258 | 380 | | next preceding the applicable January 1 assessment date; |
|---|
| 259 | 381 | | 20. “Homestead exemption” means the reduction in the taxable |
|---|
| 260 | 382 | | value of a homestead as authorized by law; |
|---|
| 261 | 383 | | 21. “Income and expense approach” means a method to estimate |
|---|
| 262 | 384 | | fair cash value of a property by determining the present value of |
|---|
| 263 | 385 | | the projected income stream; |
|---|
| 294 | 440 | | 23. “Mill” or “millage” means the rate of tax imposed upon |
|---|
| 295 | 441 | | taxable value. One (1) mill equals One Dollar ($1.00) of tax for |
|---|
| 296 | 442 | | each One Thousand Dollars ($1,000.00) of taxable value; |
|---|
| 297 | 443 | | 24. “Multiple regression analysis” means a statistical |
|---|
| 298 | 444 | | technique for estimating unknown data on the basis of known and |
|---|
| 299 | 445 | | available data; |
|---|
| 300 | 446 | | 25. “Parcel” means a cont iguous area of land described in a |
|---|
| 301 | 447 | | single description by a deed or other instrument or as one of a |
|---|
| 302 | 448 | | number of lots on a plat or plan, separately owned and capable of |
|---|
| 303 | 449 | | being separately conveyed; |
|---|
| 304 | 450 | | 26. “Residential rental housing” means any single tax parcel |
|---|
| 305 | | - | development or redevelopment that contains a building or buildings |
|---|
| 306 | | - | with at least sixty (60) individual rental units that are |
|---|
| 307 | | - | constructed and used for multifamily housing or c ontains at least |
|---|
| 308 | | - | sixty (60) housing structures that are constructed for rental |
|---|
| 309 | | - | purposes. For the purposes of this paragraph, “multifamily housing” |
|---|
| 310 | | - | shall mean residential buildings or complexes that contain multiple |
|---|
| 311 | | - | separate units or dwellings intended for occupancy by multiple |
|---|
| 312 | | - | families or households; |
|---|
| 451 | + | that contains a building or bui ldings that are constructed and used |
|---|
| 452 | + | for multifamily housing or contains two or more single family homes |
|---|
| 453 | + | that are constructed for rental purposes. For the purposes of this |
|---|
| 454 | + | paragraph, “multifamily housing” shall mean residentia l buildings or |
|---|
| 455 | + | complexes that contain multiple separate units or dwellings intended |
|---|
| 456 | + | for occupancy by multiple families or households; |
|---|
| 343 | 511 | | 27. 28. “State Board of Equalization” means the Board |
|---|
| 344 | 512 | | responsible for valuation of railroad, airline and public service |
|---|
| 345 | 513 | | corporation property and the adjustment and equalization of all |
|---|
| 346 | 514 | | property values both centrally and locally assessed; |
|---|
| 347 | 515 | | 28. 29. “Taxable value” means the percentage of the fair cash |
|---|
| 348 | 516 | | value of personal property or the taxable fair cash value of real |
|---|
| 349 | 517 | | property, less applicable exemptions, upon which an a d valorem tax |
|---|
| 350 | 518 | | rate is levied pursuant to the provisions of Section 8 and Section |
|---|
| 351 | 519 | | 8B of Article X of the Oklahoma Constitution; |
|---|
| 352 | 520 | | 29. 30. “Taxable fair cash value” means the fair cash value of |
|---|
| 353 | 521 | | locally assessed real property as ca pped pursuant to Section 8B o f |
|---|
| 354 | 522 | | Article X of the Oklahoma Constitution; |
|---|
| 355 | 523 | | 30. 31. “Use category” means a subcategory of real property , |
|---|
| 356 | 524 | | that is either agricultural use, residential use or |
|---|
| 357 | 525 | | commercial/industrial use but does not and shall not constitute a |
|---|
| 358 | 526 | | class of subjects within the meani ng of the Oklahoma Constitution |
|---|
| 359 | 527 | | for purposes of ad valorem taxation; |
|---|
| 360 | 528 | | 31. 32. “Use value” means the basis for establishing fair cash |
|---|
| 361 | 529 | | value of real property pursuant to the requirement of Section 8 of |
|---|
| 362 | 530 | | Article X of the Oklahoma C onstitution; and |
|---|
| 363 | 531 | | 32. 33. “Visual inspection program” means the program required |
|---|
| 364 | 532 | | in order to gather data about real property from physical |
|---|
| 393 | 585 | | four (4) years and the fair cash values of similar properties on an |
|---|
| 394 | 586 | | annual basis. |
|---|
| 395 | 587 | | SECTION 2. AMENDATORY 68 O.S. 2021, Section 2803, is |
|---|
| 396 | 588 | | amended to read as follows: |
|---|
| 397 | 589 | | Section 2803. A. The Legislature, pursuant to au thority of |
|---|
| 398 | 590 | | Article X, Section 22 of Article X of the Oklahoma Constitution, |
|---|
| 399 | 591 | | hereby classifies the following types of property for purposes of ad |
|---|
| 400 | 592 | | valorem taxation: |
|---|
| 401 | 593 | | 1. Real property, except as provided by paragraph 6 of this |
|---|
| 402 | 594 | | subsection; |
|---|
| 403 | 595 | | 2. Personal property, except as provided in para graph 3 of this |
|---|
| 404 | 596 | | subsection; |
|---|
| 405 | 597 | | 3. Personal property which is household goods of the head of |
|---|
| 406 | 598 | | families and livestock employed in support of the family in those |
|---|
| 407 | 599 | | counties which have exempted such property pursuant to subsection |
|---|
| 408 | 600 | | (b) B of Section 6 of Article X of the Oklahoma Constitution; |
|---|
| 409 | 601 | | 4. Public service corporation property; and |
|---|
| 410 | 602 | | 5. Railroad and air carrier property ; and |
|---|
| 411 | 603 | | 6. Real property containing improvements constructed for the |
|---|
| 412 | 604 | | purposes of providing residential rental housing . |
|---|
| 413 | 605 | | B. Valuation of each class of subjects shall be made by a |
|---|
| 414 | 606 | | method appropriate for each class or any subclass thereof, as |
|---|
| 443 | 659 | | C. Classification as provided by this section shall require |
|---|
| 444 | 660 | | uniform treatment of each item within a class or any subclass as |
|---|
| 445 | 661 | | provided in Article X, Section 5 of Article X of the Oklahoma |
|---|
| 446 | 662 | | Constitution. |
|---|
| 447 | 663 | | SECTION 3. AMENDATORY 68 O.S. 2021, Section 2817, as |
|---|
| 448 | 664 | | amended by Section 1, Chapter 374, O.S.L. 2022 (68 O.S. Supp. 2024, |
|---|
| 449 | 665 | | Section 2817), is amended to read as follows: |
|---|
| 450 | 666 | | Section 2817. A. All taxable personal property, except |
|---|
| 451 | 667 | | intangible personal property, personal property exempt from ad |
|---|
| 452 | 668 | | valorem taxation, or household personal property, shall be l isted |
|---|
| 453 | 669 | | and assessed each year at its fair cash value, estimated at the |
|---|
| 454 | 670 | | price it would bring at a fair voluntary sale, as of January 1. |
|---|
| 455 | 671 | | The fair cash value of household personal property shall be |
|---|
| 456 | 672 | | valued at ten percent (10%) of the appraised value of the |
|---|
| 457 | 673 | | improvement to the residential re al property within which such |
|---|
| 458 | 674 | | personal property is located as of January 1 each year. The |
|---|
| 459 | 675 | | assessment of household personal property as provided by this |
|---|
| 460 | 676 | | section may be altered by the taxpayer listing such property at its |
|---|
| 461 | 677 | | actual fair cash value. For purpos es of establishing the value of |
|---|
| 462 | 678 | | household personal property, pursuant to the requirement of Section |
|---|
| 463 | 679 | | 8 of Article X of the Oklahoma Constitution, the percentage of value |
|---|
| 464 | 680 | | prescribed by this section for the household personal property shall |
|---|
| 493 | 733 | | Stocks of goods, wares, and merchandise shall be assessed at the |
|---|
| 494 | 734 | | value of the average amount on hand during the preceding year, or |
|---|
| 495 | 735 | | the average amount on hand during the part of the preceding year the |
|---|
| 496 | 736 | | stock of goods, wares, or merchandise was at its January 1 location. |
|---|
| 497 | 737 | | Provided, persons primarily engaged in selling lumber and other |
|---|
| 498 | 738 | | building materials including cement and concrete, except for home |
|---|
| 499 | 739 | | centers classified under Industry No. 444110 of the North American |
|---|
| 500 | 740 | | Industrial Classification Systems (NAICS) Manual, shall be assessed |
|---|
| 501 | 741 | | at the average value of the inventory on hand as of January 1 of |
|---|
| 502 | 742 | | each year and the value of the inventory on hand as of December 31 |
|---|
| 503 | 743 | | of the same year. |
|---|
| 504 | 744 | | B. All taxable real property shall be assessed annually as of |
|---|
| 505 | 745 | | January 1, at its fair cash value, estimated at the price it would |
|---|
| 506 | 746 | | bring at a fair voluntary sale for: |
|---|
| 507 | 747 | | 1. The highest and best use for which the property was actually |
|---|
| 508 | 748 | | used during the preceding calendar year; or |
|---|
| 509 | 749 | | 2. The highest and best use for which the property was last |
|---|
| 510 | 750 | | classified for use if not actually used during the preceding |
|---|
| 511 | 751 | | calendar year. |
|---|
| 512 | 752 | | When improvements upon residential real property are divided by |
|---|
| 513 | 753 | | a taxing jurisdiction line, those im provements shall be valued an d |
|---|
| 542 | 806 | | The Ad Valorem Division of the Oklahoma Tax Commission shall be |
|---|
| 543 | 807 | | responsible for the promulgation of rules which shall be followed by |
|---|
| 544 | 808 | | each county assessor of the state, for the purposes of providing for |
|---|
| 545 | 809 | | the equitable use valuation of locally assessed real property in |
|---|
| 546 | 810 | | this state. Agricultural land and nonresidential improvements |
|---|
| 547 | 811 | | necessary or convenient for agricultural purposes shall be assessed |
|---|
| 548 | 812 | | for ad valorem taxation based upon the highest and best use for |
|---|
| 549 | 813 | | which the property was actually used, or was previously classified |
|---|
| 550 | 814 | | for use, during the calendar year next preceding January 1 on which |
|---|
| 551 | 815 | | the assessment is made. |
|---|
| 552 | 816 | | C. The use value of agricultural land shal l be based on the |
|---|
| 553 | 817 | | income capitalization approach using cash rent. The rental income |
|---|
| 554 | 818 | | shall be calculated using the direct capitalization method based |
|---|
| 555 | 819 | | upon factors including, but not limited to: |
|---|
| 556 | 820 | | 1. Soil types, as depicted on so il maps published by the |
|---|
| 557 | 821 | | Natural Resources Conservation Service of the United States |
|---|
| 558 | 822 | | Department of Agriculture; |
|---|
| 559 | 823 | | 2. Soil productivity indices approved by the Ad Valorem |
|---|
| 560 | 824 | | Division of the Tax Commission; |
|---|
| 561 | 825 | | 3. The specific agricultural purpose of the soil based on use |
|---|
| 562 | 826 | | categories approved b y the Ad Valorem Division of the Tax |
|---|
| 563 | 827 | | Commission; and |
|---|
| 592 | 880 | | average first mortgage interest rate charged by t he Federal Land |
|---|
| 593 | 881 | | Bank for the immediately preceding five (5) years, weighted with the |
|---|
| 594 | 882 | | prevailing rate or rates for additional loans or equity, and the |
|---|
| 595 | 883 | | effective tax rate. |
|---|
| 596 | 884 | | The final use value will be calculated using the soil |
|---|
| 597 | 885 | | productivity indices and the agricultural use classification as |
|---|
| 598 | 886 | | defined by rules promulgated by the State Board of Equalization. |
|---|
| 599 | 887 | | This subsection shall not be construed in a manner which is |
|---|
| 600 | 888 | | inconsistent with the duties, powers, and authority of the Board as |
|---|
| 601 | 889 | | to valuation of the counties a s fixed and defined by Sectio n 21 of |
|---|
| 602 | 890 | | Article X of the Oklahoma Constitution. |
|---|
| 603 | 891 | | However, in calculating the use value of buffer strips as |
|---|
| 604 | 892 | | defined in Section 2817.2 of this title, exclusive consideration |
|---|
| 605 | 893 | | shall be based only on income from production agriculture from such |
|---|
| 606 | 894 | | buffer strips, not including federal or state subsidies, when valued |
|---|
| 607 | 895 | | as required by subsection C of Section 2817.2 of this title. |
|---|
| 608 | 896 | | D. The use value of nonresidential improvements on agricultural |
|---|
| 609 | 897 | | land shall be based on the cost approach to value estimation using |
|---|
| 610 | 898 | | currently updated cost manuals published by the Marshall and Swift |
|---|
| 611 | 899 | | Company or similar cost manuals approved by the Ad Valorem Division |
|---|
| 612 | 900 | | of the Tax Commission. The use value estimates for the |
|---|
| 613 | 901 | | nonresidential improvements shall take obsolescence and depreciation |
|---|
| 642 | 954 | | not be construed in a manner which is inconsistent with the duties, |
|---|
| 643 | 955 | | powers, and authority of the Boar d as to equalization of valua tion |
|---|
| 644 | 956 | | of the counties as determined and defined by Section 21 of Article X |
|---|
| 645 | 957 | | of the Oklahoma Constitution. |
|---|
| 646 | 958 | | The use value of facilities used for poultry production shall be |
|---|
| 647 | 959 | | determined according to the following procedures: |
|---|
| 648 | 960 | | 1. The Ad Valorem Division of the Ta x Commission is hereby |
|---|
| 649 | 961 | | directed to develop a standard system of valuation of both real and |
|---|
| 650 | 962 | | personal property of such facilities, which shall be used by all |
|---|
| 651 | 963 | | county assessors in this state, under which valuation based on the |
|---|
| 652 | 964 | | following shall be presumed to be the fair cash value of the |
|---|
| 653 | 965 | | property: |
|---|
| 654 | 966 | | a. for real property, a ten -year depreciation schedule, |
|---|
| 655 | 967 | | at the end of which the residual value is twenty |
|---|
| 656 | 968 | | percent (20%) of the value of the facility during its |
|---|
| 657 | 969 | | first year of operation, and |
|---|
| 658 | 970 | | b. for personal property, a fi ve-year depreciation |
|---|
| 659 | 971 | | schedule, at the end of which the residual value is |
|---|
| 660 | 972 | | zero; |
|---|
| 661 | 973 | | 2. Such facilities shall be valued only in comparison to other |
|---|
| 662 | 974 | | facilities used exclusively for poultry production. Such a facility |
|---|
| 691 | 1027 | | 3. During the first year such a facility is placed on the tax |
|---|
| 692 | 1028 | | rolls, its fair cash value shall be presumed to be the lesser of the |
|---|
| 693 | 1029 | | actual purchase price or the actual documented cost of construction; |
|---|
| 694 | 1030 | | and |
|---|
| 695 | 1031 | | 4. For the purpose of determining the valuation of |
|---|
| 696 | 1032 | | nonresidential improvements used for poultry production, the |
|---|
| 697 | 1033 | | provisions of this subsection shall be applicable and such |
|---|
| 698 | 1034 | | improvements shall not be considered to be commercial proper ty. |
|---|
| 699 | 1035 | | E. The value of investme nt in property used exclusively by an |
|---|
| 700 | 1036 | | oil refinery that is used wholly as a facility, device, or method |
|---|
| 701 | 1037 | | for the desulphurization of gasoline or diesel fuel as defined in |
|---|
| 702 | 1038 | | Section 2817.3 of this title shall not be included in the |
|---|
| 703 | 1039 | | capitalization used in the d etermination of fair market value of |
|---|
| 704 | 1040 | | such oil refinery if such property would qualify as exempt property |
|---|
| 705 | 1041 | | pursuant to Section 2902 of this title, whether or not an |
|---|
| 706 | 1042 | | application for such exemption is made by an otherwise qualifyin g |
|---|
| 707 | 1043 | | manufacturing concern ownin g the property described by Section |
|---|
| 708 | 1044 | | 2817.3 of this title. |
|---|
| 709 | 1045 | | F. The use value of a lot in any platted addition or a |
|---|
| 710 | 1046 | | subdivision in a city, town, or county zoned for residential, |
|---|
| 711 | 1047 | | commercial, industrial, or other use shall be deemed to be the fair |
|---|
| 712 | 1048 | | cash value of the underlying tract of land platted, divided by the |
|---|
| 741 | 1101 | | the lot with building or buildings locate d thereon shall have been |
|---|
| 742 | 1102 | | occupied other than as a sales office by the owner thereof, or shall |
|---|
| 743 | 1103 | | have been leased, whichever event shall first occur. One who |
|---|
| 744 | 1104 | | purchases a lot for the purposes of constructing and selling a |
|---|
| 745 | 1105 | | building on such lot shall not be deemed to be a bona fide purcha ser |
|---|
| 746 | 1106 | | for purposes of this section. However, if the lot is held for a |
|---|
| 747 | 1107 | | period longer than two (2) years before construction, then the |
|---|
| 748 | 1108 | | assessor may consider the lot to have been conveyed to a bona fide |
|---|
| 749 | 1109 | | purchaser. The cost of any land or improvements to any r eal |
|---|
| 750 | 1110 | | property required to be dedicated to public use including, but not |
|---|
| 751 | 1111 | | limited to, streets, curbs, gutters, sidewalks, storm or sanitary |
|---|
| 752 | 1112 | | sewers, utilities, detention or retention ponds, easements, parks, |
|---|
| 753 | 1113 | | or reserves shall not be utilized by the county asse ssor in the |
|---|
| 754 | 1114 | | valuation of any real property for assessment purposes. |
|---|
| 755 | 1115 | | G. The transfer of real property without a change in its use |
|---|
| 756 | 1116 | | classification shall not require a reassessment thereof based |
|---|
| 757 | 1117 | | exclusively upon the sale value of the property. However, if th e |
|---|
| 758 | 1118 | | county assessor determines: |
|---|
| 759 | 1119 | | 1. That by reason of the transfer of a property there is a |
|---|
| 760 | 1120 | | change in the actual use or classification of the property; or |
|---|
| 761 | 1121 | | 2. That by reason of the amount of the sales consideration it |
|---|
| 762 | 1122 | | is obvious that the use classification p rior to the transfer of the |
|---|
| 791 | 1175 | | then the assessor shall, in either event, reassess the property for |
|---|
| 792 | 1176 | | the new use classifi cation for which the property is being used, or, |
|---|
| 793 | 1177 | | the highest and best use classification for which the property may, |
|---|
| 794 | 1178 | | by reason of the transfer, be classified for use. |
|---|
| 795 | 1179 | | H. When the term “fair cash value” or the language “fair cash |
|---|
| 796 | 1180 | | value, estimated at the price it would bring at a fair voluntary |
|---|
| 797 | 1181 | | sale” is used in the Ad Valorem Tax Code, in connection with and in |
|---|
| 798 | 1182 | | relation to the assessment of real property, it is defined to mean |
|---|
| 799 | 1183 | | and shall be given the meaning ascribed and assigned to it in this |
|---|
| 800 | 1184 | | section and when the term or language is use d in the Code in |
|---|
| 801 | 1185 | | connection with the assessment of personal property , it shall be |
|---|
| 802 | 1186 | | given its ordinary or literal meaning. |
|---|
| 803 | 1187 | | I. Where any real property is zoned for a use by a proper |
|---|
| 804 | 1188 | | zoning authority, and the use of the property has not been changed, |
|---|
| 805 | 1189 | | the use and not zoning shall determine assessment. Any reassessment |
|---|
| 806 | 1190 | | required shall be effective January 1 following the change in use. |
|---|
| 807 | 1191 | | Taxable real property need not be listed annually with the county |
|---|
| 808 | 1192 | | assessor. |
|---|
| 809 | 1193 | | J. If any real proper ty shall become taxable after January 1 of |
|---|
| 810 | 1194 | | any year, the county assessor shall assess the same and place it |
|---|
| 811 | 1195 | | upon the tax rolls for the next ensuing year. When any building is |
|---|
| 812 | 1196 | | constructed upon land after January 1 of any year, the value of the |
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| 841 | 1249 | | fair cash value thereof for the next ensuing year. However, after |
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| 842 | 1250 | | the building has been completed it shall be deemed to have a value |
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| 843 | 1251 | | for assessment purposes of the f air cash value of the materials used |
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| 844 | 1252 | | in such building only, until the building and the land on which the |
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| 845 | 1253 | | building is located shall have been conveyed to a bona fide |
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| 846 | 1254 | | purchaser or shall have been occupied or used for any purpose other |
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| 847 | 1255 | | than as a sales office by the owner thereof, or shall have been |
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| 848 | 1256 | | leased, whichever event shall first occur. The county assessor |
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| 849 | 1257 | | shall continue to assess the building based upon the fair market |
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| 850 | 1258 | | value of the materials used therein until the building an d land upon |
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| 851 | 1259 | | which the building is located shall have been conveyed to a bona |
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| 852 | 1260 | | fide purchaser or is occupied or used for any purpose other than as |
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| 853 | 1261 | | a sales office by the owner thereof, or is leased, whichever event |
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| 854 | 1262 | | shall first occur. In the event a building or buildings described |
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| 855 | 1263 | | by this subsection are intended to serve primarily as residential |
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| 856 | 1264 | | rental housing, after the building or buildings have been completed |
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| 857 | 1265 | | they shall be deemed to have an initial value for assessment |
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| 858 | 1266 | | purposes not to exceed the fair cash v alue of the land and the |
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| 859 | 1267 | | actual documented cost of any improvements made to the building or |
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| 860 | 1268 | | buildings. The county assessor shall continue to assess such |
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| 861 | 1269 | | building or buildings at a value not to exceed the fair cash value |
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| 862 | 1270 | | of the land and actual documented cost of any improvements made |
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| 891 | 1323 | | building or buildings and the land on which the building or |
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| 892 | 1324 | | buildings are located shall have been conveyed to a bona fide |
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| 893 | 1325 | | purchaser, whichever event shall first occur. |
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| 894 | 1326 | | K. In the event improvements on land or personal property |
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| 895 | 1327 | | located therein or thereon are destroyed or partially destroyed, or |
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| 896 | 1328 | | the land itself is impaired or partially impaired by fire, |
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| 897 | 1329 | | lightning, storm, winds , floodwaters, overflow of streams, or other |
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| 898 | 1330 | | cause (all such destruction or impairments being referred to herein |
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| 899 | 1331 | | as “damage”) during any year, the county assessor shall determine |
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| 900 | 1332 | | the amount of damage and shall reassess the prop erty for that year |
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| 901 | 1333 | | at the fair cash value of the property, taking into account the |
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| 902 | 1334 | | actual loss of functional use of the property occasioned by such |
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| 903 | 1335 | | damage. The assessor shall make the appropriate value adjustments |
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| 904 | 1336 | | to the property for that tax year up to the time at which the |
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| 905 | 1337 | | assessor publishes the “Assessor’s assessor’s Report to the Excise |
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| 906 | 1338 | | Board” Board as required by subsection D of Section 2867 of this |
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| 907 | 1339 | | title. After such time, adjustments can be made only by the county |
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| 908 | 1340 | | board of tax roll corrections and o nly after the assessor has |
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| 909 | 1341 | | certified the tax roll for that year. The board secretary shall |
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| 910 | 1342 | | notify property owners in advance of the time and place at which the |
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| 911 | 1343 | | value adjustment to their property will be heard by the board. The |
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| 940 | 1396 | | L. All taxable personal property used in the exploration of |
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| 941 | 1397 | | oil, natural gas, or other minerals including drilling equipment and |
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| 942 | 1398 | | rigs, shall be assessed annu ally at the value set forth i n the first |
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| 943 | 1399 | | Hadco International monthly bulletin published for the tax year, |
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| 944 | 1400 | | using the appropriate depth rating assigned to the drawworks by its |
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| 945 | 1401 | | manufacturer and the actual condition of the rig. |
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| 946 | 1402 | | M. The value of taxable tangible personal property used in |
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| 947 | 1403 | | commercial disposal systems of waste materials from the production |
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| 948 | 1404 | | of oil and gas shall not include any contract rights or leases for |
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| 949 | 1405 | | the use of such systems nor any value associated with the wellbore |
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| 950 | 1406 | | or non-recoverable down-hole material including casing. |
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| 951 | 1407 | | SECTION 4. This act shall become effective November 1, 2025. |
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