Oklahoma Senate Bill SB1122

Oklahoma 2025 Regular Session

• Introduced: 2/3/25
• Refer: 2/4/25
• Report Pass: 2/27/25
• Refer: 2/27/25

Caption

Ad valorem tax; requiring the State Board of Equalization to assess certain broadband property. Effective date.

Impact

If enacted, SB1122 would change the valuation criteria for broadband service providers by establishing a consistent method for assessing their property specifically based on the broadband service they provide. The State Board of Equalization will be directed to apply a fifteen percent assessment ratio for tax years 2026 through 2036 for properties in areas where the broadband service is either insufficient or limited. This amendment is aimed at promoting the expansion of broadband services, especially in underserved communities by providing a more favorable tax structure.

Summary

Senate Bill 1122 seeks to amend existing provisions under the Ad Valorem Tax Code in Oklahoma, specifically addressing the assessment of properties utilized for broadband service. The bill defines the property of broadband service providers and stipulates that such properties, constructed or installed after the bill's effective date, must be assessed at a specific ratio. This addresses a growing need for appropriate taxation of new broadband infrastructure being put in place to enhance internet access across the state.

Contention

The bill has the potential to create points of contention among stakeholders in the broadband industry. Proponents argue that this legislation provides needed incentives for broadband service providers to expand their services into under-connected areas. However, critics may view the preferential tax treatment as a domestic subsidy that could unfairly benefit certain providers over others, leading to questions about equity in service provision across different areas. There may be discussions on the valuation and how the proposed assessment ratios will impact overall tax revenues in Oklahoma.