Bill No. 2018, introduced by Senator Thompson and Representative Kannady, amends the Oklahoma Ad Valorem Tax Code to update definitions and valuation methods for taxable property. A key change is the introduction of a new definition for "residential rental housing," which applies to properties with at least twenty rental units. The bill clarifies terms related to property assessment, such as "cost approach" and "use value," while also deleting outdated terminology to enhance clarity and accuracy in property valuation practices. It emphasizes the need for fair cash value estimations based on actual market conditions and specifies that taxable personal property must be assessed annually at its fair cash value as of January 1.

Additionally, the bill establishes a new valuation method for residential rental housing assessments, which will rely exclusively on the cost approach for the first two tax years following construction completion or until the property is sold to an unrelated third-party bona fide purchaser. It also clarifies that the property's use, rather than zoning, will determine its assessment if the use has not changed. The bill is set to take effect on November 1, 2026, following its passage in the Senate on March 26, 2026.

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