This bill establishes a new depreciation schedule specifically for farm equipment and farm tractors for the purpose of ad valorem taxation in Oklahoma. It defines "farm equipment" and "farm tractor" and mandates that the fair cash value of these assets will depreciate by 25% each year, starting from the first tax year they are subject to taxation. The bill outlines a specific calculation method for determining the depreciated value over a four-year period, where the value will be 75% of the original cost in the first year, 50% in the second year, 25% in the third year, and 0% in the fourth year and beyond.

Additionally, the bill provides a presumption that the calculated depreciated value will be considered the fair cash value for taxation purposes unless otherwise specified by the Oklahoma Constitution or statutes. The Oklahoma Tax Commission is tasked with creating necessary rules and forms to implement this new law, which is set to take effect on January 1, 2027.