Senate Bill No. 1098 amends the Ad Valorem Tax Code in Oklahoma, focusing on the classification and valuation of property for ad valorem taxation. The bill introduces a new definition for "Residential rental housing," which encompasses single tax parcels with multifamily housing or multiple single-family homes intended for rental. It establishes a new classification for real property with improvements aimed at providing residential rental housing and updates the legal language regarding property classification for taxation to ensure uniform treatment. Additionally, the bill clarifies valuation procedures for different property classes, emphasizing the need for appropriate assessment methods as determined by the Ad Valorem Division of the Oklahoma Tax Commission, while deleting outdated references to specific articles of the Oklahoma Constitution.

The bill also includes amendments that clarify the assessment process for real and personal property. It specifies that county assessors will not factor in the cost of land or public use improvements in property valuations. Furthermore, it states that the transfer of real property without a change in use classification will not trigger reassessment based solely on sale value, unless there is a change in actual use or discrepancies in classification indicated by sales consideration. The bill defines "fair cash value" in relation to property assessment and establishes that property use, rather than zoning, will dictate its assessment. It includes provisions for residential rental housing, allowing for a one-year assessment cap based on fair cash value and documented improvement costs, and addresses reassessment in cases of property damage. The bill is set to take effect on November 1, 2025, and includes minor terminology changes.

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