This bill introduces a new in lieu tax for farm tractors and other heavy equipment used in agricultural production, establishing a flat rate of $15 per year instead of the traditional ad valorem tax. The tax will be paid to the county treasurer in the same manner as ad valorem personal property taxes, and the revenue generated will be apportioned similarly to how ad valorem taxes would be distributed. Additionally, the bill amends Section 2805 of Title 68 of the Oklahoma Statutes to include this new in lieu tax among other fees and taxes that are exempt from ad valorem taxation.

Furthermore, the bill repeals Section 2809 of Title 68, which previously related to farm tractor taxation, thereby streamlining the tax structure for agricultural equipment. The effective date for this legislation is set for November 1, 2026. The amendments and new provisions aim to simplify the tax obligations for farmers while ensuring that local governments continue to receive necessary funding through the apportionment of the in lieu tax.

Statutes affected:
Introduced: 68-2809