Senate Bill No. 1098 amends the Ad Valorem Tax Code in Oklahoma by introducing a new definition for "Residential rental housing," which includes properties designed for multifamily housing or multiple single-family homes intended for rental. The bill expands the classification of properties subject to ad valorem taxation to include real property improvements specifically constructed for residential rental housing. Additionally, it clarifies that the valuation of each property class must be uniform and appropriate for each subclass, as determined by the Ad Valorem Division of the Oklahoma Tax Commission, enhancing the clarity and effectiveness of property tax assessments.

The bill also establishes new assessment guidelines for residential rental housing, indicating that these properties will be valued based on the fair cash value of the land and documented improvement costs until one year after they are first reflected on tax rolls or sold to a bona fide purchaser. It further allows county assessors to adjust property values based on damage from various causes and outlines procedures for notifying property owners about value adjustments. Other amendments include provisions regarding the treatment of lots held for more than two years before construction and the exclusion of costs for land or improvements dedicated to public use from property valuation. The bill is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-2817
Floor (Senate): 68-2817