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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 315 By: Stanley
AS INTRODUCED
An Act relating to the inspection of real property;
amending 68 O.S. 2021, Sections 2802, 2821, and 2823,
which relate to the visual inspection of real
property; modifying definition; modifying certain
requirements for physical inspection of certain real
property; updating statutory language; updating
statutory reference; and providing an effective date .
BE IT ENACTED BY THE P EOPLE OF THE STATE OF 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 permitting the
accurate estimate of fair cash value for similar properties in the
jurisdiction either without direct observation of suc h similar
properties or without direct sales price information for such
similar properties using a reliable statistical or other method to
estimate the values of such properties;
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2. “Additional homestead exemption ” means the exemption
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 and personal property
pursuant to requirements of law;
5. “Assessed valuation” or “assessed 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 items of personal property,
parcels of real property or the aggregate total of such individual
taxable items or parcels within a jurisdiction;
6. “Assessment percentage ” means the percentage applied to
personal property and real property pursuant to Section 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 determined 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 wi thin a taxing jurisdiction;
9. “Assessment year” means the year beginning January 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 category of property
specifically designated pursuant to provisions of the Oklahoma
Constitution for purposes of ad valorem taxation;
12. “Code” means the Ad Valorem Tax Code, Sec tion 2801 et seq.
of this title;
13. “Coefficient of dispersion ” means a statistical measure of
assessment uniformity for a category of property or for all property
within a taxing jurisdiction;
14. “Confidence level” means a statistical procedure for
determining the degree of reliability for use in reporting the
assessment ratio for a taxing jurisdiction;
15. “Cost approach” means a method used to establish 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 caused by physical deterioration,
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functional obsolescence , or economic obsolescence , and adding the
value of the land.
a. Physical deterioration is a cause of depreciation 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 from 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 boundaries of the propert y or loss
of value in a property (relative to the cost of
replacing it with a property of equal utility) that
stems from factors external to the property;
16. “County board of equalization ” means the board which, upon
hearing competent evidence, has the a uthority to correct and adjust
the assessment rolls in its respective county t o conform to fair
cash value and such other responsibilities as prescribed in Section
2801 et seq. of this title;
17. “Equalization” means the process for making 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 county or between counties by
analyzing the relationship between assessed value and fair cash
value in each county;
18. “Equalization ratio study ” means the analysis of the
relationships between assessed values and fair cash values 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 both parties are knowledgeable about
the property and its uses and if neither party is under 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 previously classi fied for use, during the calendar year
next preceding the applicable January 1 assessment 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 method to estimate
fair cash value of a property by determining the present value of
the projected income stream;
22. “List and assess” means the process by which taxable
property is discovered, its description recorded for purposes of ad
valorem taxation, and its fair cash value and taxable fair cash
value are established;
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23. “Mill” or “millage” means the rate of tax imposed upon
taxable value. One (1) mill equals One Dollar ($1.00) of t ax for
each One Thousand Dollars ($1,000.00) of taxable value;
24. “Multiple regression analysis ” means a statistical
technique for estimating unknown data on the basis of known and
available data;
25. “Parcel” means a contiguous area of land described i n 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. “Sales comparison approach ” means the collection,
verification, and screening of sales dat a, stratification of sales
information for purposes of comparison , and use of such information
to establish the fair cash value of taxable property;
27. “State Board of Equalization ” means the Board responsible
for valuation of railroad, airline , and public service corporation
property and the adjustment and equalization of all pro perty values
both centrally and locally assessed;
28. “Taxable value” means the percentage of the fair cash value
of personal property or the taxable fair cash value of real
property, less applicable exemptions, 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;
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29. “Taxable fair cash value ” means the fair cash value of
locally assessed real property as capped pursuant to Section 8B of
Article X of the Oklahoma Cons titution;
30. “Use category” means a subcategory of real property, that
is either agricultural use, residential use , or
commercial/industrial use but does not and shall not cons titute a
class of subjects within the meaning of the Oklahoma Constitution
for purposes of ad valorem taxation;
31. “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 Constitution; and
32. “Visual inspection program ” means the program required in
order to gather data about real property from physical examination
of the property and improvements in order to establish the fair cash
values of properties so inspec ted at least once 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 shal l cause real
property to be physically inspected as part of the visual inspect ion
cycle and shall require such examination as will provide adequate
data from which to make accurate valuations.
B. The information gathered from the physical inspection shall
be relevant to the type of property involved, its use category, the
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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 complet e 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 Okl ahoma 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 inspections 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 county of the state and shall be in
such form as developed by the Ad Valorem Task Force Division.
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 pr ice for purposes of cash equivalency,
transaction terms, and such other information as may be required in
order to establish the fair cash value of taxable real property.
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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
other tools or equipment as may be required to perform duties
imposed by law for the discovery and valuation of taxable property.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 2823, is
amended to read as follows:
Section 2823. A. For each fiscal year, the cost of the
comprehensive program of visual inspections for real property and
the cost of physical inspections of personal property shall be paid
by appropriate warrants from those who receive the revenues of the
mill rates levied on the property of the county as prescribed by
this section. School distric ts are hereby authorized to pay such
costs from revenues accruing to their building funds. The county
assessor shall prepare a budget for the comprehensive program of
visual inspections for real property and the cost of physical
inspections of personal property and file such budget with the
county excise board or county budget board.
B. The county excise board or county budget board shall
apportion such cost among the various re cipients of revenues from
the mill rates levied, including the county, all cit ies and towns,
all school districts, all sinking funds of such recipients, and all
jurisdictions specified in subsection D of this section, in the
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ratio which each recipient ’s total tax collection authorized from
its mill rates levied for the preceding year bears to the total tax
collection authorized of all recipients from all their mill rates
levied for the preceding year. The cost shall include only those
expenses directly att ributable to the visual inspection program and
those expenses directly attribu table to physical inspections of
personal property and shall not include any expenses of the office
of the county assessor which, in the judgment of the county excise
board or county budget board, are expenses of county assessor ’s
office which would exist in the absence of such program or in the
absence of physical on-site inspection of personal property.
Expenses that are attributable both to the visual inspection program
and physical on-site inspection of personal property, and which
would exist in the a bsence of such program or inspection, including ,
but not limited to, salaries, employee benefits, office supplies ,
and equipment, may be prorated; provided, no portion of the sal ary
of the county assessor shall be included in such costs.
C. Upon receipt of the billing statement provided for in
subsections D and E of this section by each such recipient, the mill
rates to be established by the board for each such recipient for the
current year shall include and be based upon such amounts and shall
constitute an appropriation of such amounts to the county assessor
for expenditure for the expenses of administering the visual
inspection program each year. In the case of a sinking fund of a
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recipient, if, after approving its budget, the governing body of a
recipient notifies the board in writing that there are no funds
appropriated to pay the amount of the billing statement for such
sinking fund, such notice shall constitute conclusive evidence of a
financial obligation of the recipient as it relates to such sink ing
fund. The board may seek a judgment for the amount of such
obligation and court costs in the district court of the county in
which the board is located.
D. The county asses sor shall render a statement to each of the
jurisdictions within the county which receive revenue from an ad
valorem mill rate. Such statement shall include the following
information:
1. The current fiscal year in which the charge has been
incorporated in the jurisdiction’s budget;
2. All jurisdictions receiving statements from t he county
assessor, the mill rate for each in the previous year, and the
proportion of each to the combined mill rates of all jurisdictions
within the county for the previous yea r. The proportions specified
in this paragraph should equal a total of one hundred percent
(100%);
3. The charge for the entity receiving the statement as well as
the charge for each jurisdiction of the county based upon the
proportions specified in para graph 2 of this subsection. The total
of all current year charges for all cou nty jurisdictions should
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equal the total visual inspection program budget for the current
fiscal year;
4. The amount of the total budget for the office of the county
assessor and the percentage that visual inspection program expenses
are of such total budget; and
5. A copy of the County Budget Visual Inspection Account county
budget visual inspection account and a brief description of the
areas to be visually inspected for the c urrent fiscal year,
consistent with the plan on file with the Oklahoma Tax Com mission
pursuant to Section 2820 of this title.
E. In any county wherein any jurisdiction ’s budget and mill
rates are not subject to review and approval by the county excise
board, the county assessor shall nevertheless include any such
jurisdiction in the calculations required under subsection A of this
section. The county assessor shall also render a billing statement
to any such jurisdiction showing the charge for the current fiscal
year due from the jurisdiction. Such billing statement shall also
show all the information specified in subsection D of this section.
Such billing statement shall clearly indicate that the charge
payable by the jurisdiction is due and payable by December 31 of the
current fiscal year.
SECTION 4. This act shall become effective November 1, 2025.
60-1-356 MSBB 12/31/2024 9:28:29 AM