House Bill No. 2140, introduced by Kannady, aims to establish a new method for determining the fair cash value of certain commercial structures in Oklahoma. Specifically, the bill addresses commercial buildings that are constructed without final interior elements, such as finished ceilings, floors, and walls. For the assessment year 2026 and subsequent years, if the property owner or contractor intends to sell or lease the building in a manner that allows the tenant or new owner to complete the interior, the county assessor is required to establish the fair cash value based on a prescribed method.

The bill stipulates that the fair cash value of these commercial properties cannot exceed the direct cost of the materials used for construction before any interior installations. This provision aims to ensure that the valuation reflects the actual construction costs rather than inflated market values. The act is set to take effect on January 1, 2026, and will be codified as Section 2802.1A of Title 68 in the Oklahoma Statutes.

Statutes affected:
House Committee Substitute: 68-2817
Floor (House): 68-2817
Engrossed: 68-2817