OK
Oklahoma Senate Bill SB315

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB315 Compare Versions

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5353 STATE OF OKLAHOMA
5454
5555 1st Session of the 60th Legislature (2025)
5656
5757 SENATE BILL 315 By: Stanley
5858
5959
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6363 AS INTRODUCED
6464
6565 An Act relating to the inspection of real property;
6666 amending 68 O.S. 2021, Sections 2802, 2821, and 2823,
6767 which relate to the visual inspection of real
6868 property; modifying definition; modifying certain
6969 requirements for physical inspection of certain real
7070 property; updating statutory language; updating
7171 statutory reference; and providing an effective date .
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7777 BE IT ENACTED BY THE P EOPLE OF THE STATE OF OKLAHOMA:
7878 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is
7979 amended to read as follows:
8080 Section 2802. As used in Section 2801 et seq. of this title:
8181 1. “Accepted standards for mass appraisal practice ” means those
8282 standards for the collection and analysis of information about
8383 taxable properties within a taxing jurisdiction permitting the
8484 accurate estimate of fair cash value for similar properties in the
8585 jurisdiction either without direct observation of suc h similar
8686 properties or without direct sales price information for such
8787 similar properties using a reliable statistical or other method to
8888 estimate the values of such properties;
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140140 2. “Additional homestead exemption ” means the exemption
141141 provided by Section 2890 of this title;
142142 3. “Assessor” means the county assessor and, unless the context
143143 clearly requires otherwise, deputy assessors and persons employed by
144144 the county assessor in performance of duties imposed by law;
145145 4. “Assess and value” means to establish the fair cash value
146146 and taxable fair cash value of taxable real and personal property
147147 pursuant to requirements of law;
148148 5. “Assessed valuation” or “assessed value” means the
149149 percentage of the fair cash value of personal property, or the
150150 percentage of the taxable fair cash value of real property, pursuant
151151 to the provisions of Sections 8 and 8B of Article X of the Oklahoma
152152 Constitution, either of individual items of personal property,
153153 parcels of real property or the aggregate total of such individual
154154 taxable items or parcels within a jurisdiction;
155155 6. “Assessment percentage ” means the percentage applied to
156156 personal property and real property pursuant to Section 8 of Article
157157 X of the Oklahoma Constitution;
158158 7. “Assessment ratio” means the relationship between assessed
159159 value and taxable fair cash value for a county or for use categories
160160 within a county expressed as a percentage determined in the annual
161161 equalization ratio study;
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213213 8. “Assessment roll” means a computerized or noncomputerized
214214 record required by law to be kept by the county assessor and
215215 containing information about property wi thin a taxing jurisdiction;
216216 9. “Assessment year” means the year beginning January 1 of each
217217 calendar year and ending on December 31 preceding the following
218218 January 1 assessment date;
219219 10. “Circuit breaker” means the form of property tax relief
220220 provided by Sections 2904 through 2911 of this title;
221221 11. “Class of subjects” means a category of property
222222 specifically designated pursuant to provisions of the Oklahoma
223223 Constitution for purposes of ad valorem taxation;
224224 12. “Code” means the Ad Valorem Tax Code, Sec tion 2801 et seq.
225225 of this title;
226226 13. “Coefficient of dispersion ” means a statistical measure of
227227 assessment uniformity for a category of property or for all property
228228 within a taxing jurisdiction;
229229 14. “Confidence level” means a statistical procedure for
230230 determining the degree of reliability for use in reporting the
231231 assessment ratio for a taxing jurisdiction;
232232 15. “Cost approach” means a method used to establish the fair
233233 cash value of property involving an estimate of current construction
234234 cost of improvements, subtracting accrued depreciation including any
235235 loss in value that may be caused by physical deterioration,
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287287 functional obsolescence , or economic obsolescence , and adding the
288288 value of the land.
289289 a. Physical deterioration is a cause of depreciation that
290290 is a loss in value due to ordinary wear and tear and
291291 the forces of nature.
292292 b. Functional or internal obsolescence is the loss in
293293 value of a property resulting from changes in tastes ,
294294 preferences, technical innovations , or market
295295 standards.
296296 c. Economic or external obsolescence is a cause of
297297 depreciation that is a loss in value as a result of
298298 impairment in utility and desirability caused by
299299 factors outside the boundaries of the propert y or loss
300300 of value in a property (relative to the cost of
301301 replacing it with a property of equal utility) that
302302 stems from factors external to the property;
303303 16. “County board of equalization ” means the board which, upon
304304 hearing competent evidence, has the a uthority to correct and adjust
305305 the assessment rolls in its respective county t o conform to fair
306306 cash value and such other responsibilities as prescribed in Section
307307 2801 et seq. of this title;
308308 17. “Equalization” means the process for making adjustments to
309309 taxable property values within a county by analyzing the
310310 relationships between assessed values and fair cash values in one or
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362362 more use categories within the county or between counties by
363363 analyzing the relationship between assessed value and fair cash
364364 value in each county;
365365 18. “Equalization ratio study ” means the analysis of the
366366 relationships between assessed values and fair cash values in the
367367 manner provided by law;
368368 19. “Fair cash value” or “market value” means the value or
369369 price at which a willing buyer would purchase property and a willing
370370 seller would sell property if both parties are knowledgeable about
371371 the property and its uses and if neither party is under any undue
372372 pressure to buy or sell and for real property shall mean the value
373373 for the highest and best use for which such property was actually
374374 used, or was previously classi fied for use, during the calendar year
375375 next preceding the applicable January 1 assessment date;
376376 20. “Homestead exemption” means the reduction in the taxable
377377 value of a homestead as authorized by law;
378378 21. “Income and expense approach ” means a method to estimate
379379 fair cash value of a property by determining the present value of
380380 the projected income stream;
381381 22. “List and assess” means the process by which taxable
382382 property is discovered, its description recorded for purposes of ad
383383 valorem taxation, and its fair cash value and taxable fair cash
384384 value are established;
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436436 23. “Mill” or “millage” means the rate of tax imposed upon
437437 taxable value. One (1) mill equals One Dollar ($1.00) of t ax for
438438 each One Thousand Dollars ($1,000.00) of taxable value;
439439 24. “Multiple regression analysis ” means a statistical
440440 technique for estimating unknown data on the basis of known and
441441 available data;
442442 25. “Parcel” means a contiguous area of land described i n a
443443 single description by a deed or other instrument or as one of a
444444 number of lots on a plat or plan, separately owned and capable of
445445 being separately conveyed;
446446 26. “Sales comparison approach ” means the collection,
447447 verification, and screening of sales dat a, stratification of sales
448448 information for purposes of comparison , and use of such information
449449 to establish the fair cash value of taxable property;
450450 27. “State Board of Equalization ” means the Board responsible
451451 for valuation of railroad, airline , and public service corporation
452452 property and the adjustment and equalization of all pro perty values
453453 both centrally and locally assessed;
454454 28. “Taxable value” means the percentage of the fair cash value
455455 of personal property or the taxable fair cash value of real
456456 property, less applicable exemptions, upon which an ad valorem tax
457457 rate is levied pursuant to the provisions of Section 8 and Section
458458 8B of Article X of the Oklahoma Constitution;
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510510 29. “Taxable fair cash value ” means the fair cash value of
511511 locally assessed real property as capped pursuant to Section 8B of
512512 Article X of the Oklahoma Cons titution;
513513 30. “Use category” means a subcategory of real property, that
514514 is either agricultural use, residential use , or
515515 commercial/industrial use but does not and shall not cons titute a
516516 class of subjects within the meaning of the Oklahoma Constitution
517517 for purposes of ad valorem taxation;
518518 31. “Use value” means the basis for establishing fair cash
519519 value of real property pursuant to the requirement of Section 8 of
520520 Article X of the Oklahoma Constitution; and
521521 32. “Visual inspection program ” means the program required in
522522 order to gather data about real property from physical examination
523523 of the property and improvements in order to establish the fair cash
524524 values of properties so inspec ted at least once each four (4) years
525525 and the fair cash values of similar properties on an annual basis.
526526 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821, is
527527 amended to read as follows:
528528 Section 2821. A. Each county assessor shal l cause real
529529 property to be physically inspected as part of the visual inspect ion
530530 cycle and shall require such examination as will provide adequate
531531 data from which to make accurate valuations.
532532 B. The information gathered from the physical inspection shall
533533 be relevant to the type of property involved, its use category, the
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585585 valuation methodology to be used for the property, whether the
586586 methodology consists of the cost approach, an income and expense
587587 approach or sales comparison approach, and shall be complet e enough
588588 in order to establish the fair cash value of the property in
589589 accordance with accepted standards for mass appraisal practice.
590590 C. Information gathered during the physical inspection shall be
591591 recorded using a standard method as prescribed by the Okl ahoma Tax
592592 Commission in computerized or noncomputerized form. The information
593593 may include property ownership, location, size, use, use category, a
594594 physical description of the land and improvements , or such other
595595 information as may be required.
596596 D. In order to conduct the visual inspections of real property
597597 during the four-year cycle, each county assessor shall acquire and
598598 maintain cadastral maps and a parcel identification system. The
599599 standards for the cadastral maps and the parcel identification
600600 system shall be uniform for each county of the state and shall be in
601601 such form as developed by the Ad Valorem Task Force Division.
602602 E. The county assessor shall maintain a comprehensive sales
603603 file for each parcel of real property within the county containing
604604 relevant property characteristics, sales price information,
605605 adjustments to sales pr ice for purposes of cash equivalency,
606606 transaction terms, and such other information as may be required in
607607 order to establish the fair cash value of taxable real property.
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659659 Each county assessor shall ensure that the office is equipped
660660 with adequate drafting facilities, tools, equipment , and supplies in
661661 order to produce or update maps, sketches , or drawings necessary to
662662 support the proper administration of the ad valorem tax and such
663663 other tools or equipment as may be required to perform duties
664664 imposed by law for the discovery and valuation of taxable property.
665665 SECTION 3. AMENDATORY 68 O.S. 2021, Section 2823, is
666666 amended to read as follows:
667667 Section 2823. A. For each fiscal year, the cost of the
668668 comprehensive program of visual inspections for real property and
669669 the cost of physical inspections of personal property shall be paid
670670 by appropriate warrants from those who receive the revenues of the
671671 mill rates levied on the property of the county as prescribed by
672672 this section. School distric ts are hereby authorized to pay such
673673 costs from revenues accruing to their building funds. The county
674674 assessor shall prepare a budget for the comprehensive program of
675675 visual inspections for real property and the cost of physical
676676 inspections of personal property and file such budget with the
677677 county excise board or county budget board.
678678 B. The county excise board or county budget board shall
679679 apportion such cost among the various re cipients of revenues from
680680 the mill rates levied, including the county, all cit ies and towns,
681681 all school districts, all sinking funds of such recipients, and all
682682 jurisdictions specified in subsection D of this section, in the
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734734 ratio which each recipient ’s total tax collection authorized from
735735 its mill rates levied for the preceding year bears to the total tax
736736 collection authorized of all recipients from all their mill rates
737737 levied for the preceding year. The cost shall include only those
738738 expenses directly att ributable to the visual inspection program and
739739 those expenses directly attribu table to physical inspections of
740740 personal property and shall not include any expenses of the office
741741 of the county assessor which, in the judgment of the county excise
742742 board or county budget board, are expenses of county assessor ’s
743743 office which would exist in the absence of such program or in the
744744 absence of physical on-site inspection of personal property.
745745 Expenses that are attributable both to the visual inspection program
746746 and physical on-site inspection of personal property, and which
747747 would exist in the a bsence of such program or inspection, including ,
748748 but not limited to, salaries, employee benefits, office supplies ,
749749 and equipment, may be prorated; provided, no portion of the sal ary
750750 of the county assessor shall be included in such costs.
751751 C. Upon receipt of the billing statement provided for in
752752 subsections D and E of this section by each such recipient, the mill
753753 rates to be established by the board for each such recipient for the
754754 current year shall include and be based upon such amounts and shall
755755 constitute an appropriation of such amounts to the county assessor
756756 for expenditure for the expenses of administering the visual
757757 inspection program each year. In the case of a sinking fund of a
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809809 recipient, if, after approving its budget, the governing body of a
810810 recipient notifies the board in writing that there are no funds
811811 appropriated to pay the amount of the billing statement for such
812812 sinking fund, such notice shall constitute conclusive evidence of a
813813 financial obligation of the recipient as it relates to such sink ing
814814 fund. The board may seek a judgment for the amount of such
815815 obligation and court costs in the district court of the county in
816816 which the board is located.
817817 D. The county asses sor shall render a statement to each of the
818818 jurisdictions within the county which receive revenue from an ad
819819 valorem mill rate. Such statement shall include the following
820820 information:
821821 1. The current fiscal year in which the charge has been
822822 incorporated in the jurisdiction’s budget;
823823 2. All jurisdictions receiving statements from t he county
824824 assessor, the mill rate for each in the previous year, and the
825825 proportion of each to the combined mill rates of all jurisdictions
826826 within the county for the previous yea r. The proportions specified
827827 in this paragraph should equal a total of one hundred percent
828828 (100%);
829829 3. The charge for the entity receiving the statement as well as
830830 the charge for each jurisdiction of the county based upon the
831831 proportions specified in para graph 2 of this subsection. The total
832832 of all current year charges for all cou nty jurisdictions should
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884884 equal the total visual inspection program budget for the current
885885 fiscal year;
886886 4. The amount of the total budget for the office of the county
887887 assessor and the percentage that visual inspection program expenses
888888 are of such total budget; and
889889 5. A copy of the County Budget Visual Inspection Account county
890890 budget visual inspection account and a brief description of the
891891 areas to be visually inspected for the c urrent fiscal year,
892892 consistent with the plan on file with the Oklahoma Tax Com mission
893893 pursuant to Section 2820 of this title.
894894 E. In any county wherein any jurisdiction ’s budget and mill
895895 rates are not subject to review and approval by the county excise
896896 board, the county assessor shall nevertheless include any such
897897 jurisdiction in the calculations required under subsection A of this
898898 section. The county assessor shall also render a billing statement
899899 to any such jurisdiction showing the charge for the current fiscal
900900 year due from the jurisdiction. Such billing statement shall also
901901 show all the information specified in subsection D of this section.
902902 Such billing statement shall clearly indicate that the charge
903903 payable by the jurisdiction is due and payable by December 31 of the
904904 current fiscal year.
905905 SECTION 4. This act shall become effective November 1, 2025.
906906
907907 60-1-356 MSBB 12/31/2024 9:28:29 AM