The bill amends Sections 2802 and 2817 of the Oklahoma Ad Valorem Tax Code to modernize definitions and assessment methods for taxable property. A significant change is the introduction of a new definition for "Residential rental housing," which now includes developments with at least sixty rental units intended for multifamily occupancy. The bill emphasizes fair cash value assessments based on the highest and best use of the property and updates the assessment language for personal property, clarifying the responsibilities of the Ad Valorem Division of the Oklahoma Tax Commission in ensuring equitable valuation practices.

Additionally, the bill modifies assessment procedures for agricultural land and nonresidential improvements, specifying that the use value of agricultural land will be determined using an income capitalization approach based on cash rent. It introduces a new valuation method for residential rental housing, which will be based exclusively on the cost approach, and clarifies various assessment protocols, including reassessment when property use changes and the treatment of newly constructed or damaged properties. The bill also states that taxable real property does not need to be listed annually with the county assessor and outlines the assessment process for personal property used in oil and gas exploration. The act is set to take effect on November 1, 2026.

Statutes affected:
Introduced: 68-2817