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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 1122 By: Hall
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6 AS INTRODUCED
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7 An Act relating to ad valorem tax; amending 68 O.S.
7 2021, Sections 2808 and 2847, which relate to
8 definitions and assessments of railroad, air carrier,
8 and public service corporation property; defining
9 term; requiring the State Board of Equalization to
9 assess certain property used to provide wired
10 broadband service; prescribing requirements for
10 assessment; prescribing assessment ratio; authorizing
11 the Oklahoma Tax Commission to promulgate rules;
11 updating statutory language; and providing an
12 effective date.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2808, is
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17 amended to read as follows:
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18 Section 2808. A. As used in the Ad Valorem Tax Code:
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19 1. "Public service corporation" means all transportation
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20 companies, transmission companies, all gas, electric, light, heat,
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21 and power companies, and all waterworks and water power companies,
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22 and all persons authorized to exercise the right of eminent domain
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23 or to use or occupy any right-of-way, street, alley, or public
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1 highway, along, over, or under the same in a manner not permitted to
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2 the general public;
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3 2. "Transportation company" means any company, corporation,
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4 trustee, receiver, or any other person owning, leasing, or operating
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5 for hire, a street railway, canal, steamboat line, and also any
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6 sleeping car company, parlor car company, and express company, and
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7 any other company, trustee, or person in any way engaged in such
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8 business as a common carrier. As used in the Ad Valorem Tax Code,
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9 the term "transportation company" transportation company shall not
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10 include any railroad or any air carrier. However, all railroad and
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11 air carrier property shall continue to be valued and assessed by the
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12 State Board of Equalization for purposes of ad valorem taxation;
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13 3. "Transmission company" means any company, corporation,
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14 trustee, receiver, or other person owning, leasing, or operating for
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15 hire any telegraph or telephone line or radio broadcasting system;
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16 4. "Person" means individuals, partnerships, associations, and
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17 corporations in the singular as well as plural number;
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18 5. "Video services provider" means a subclass of public service
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19 corporations consisting of any public service corporation offering
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20 video programming services;
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21 6. "Video programming" shall have the same meaning as set forth
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22 in 47 U.S.C., Section 522(20); and
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23 7. "Fixed wireless broadband Internet service provider" means
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24 an entity that solely offers access to the Internet through a
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1 stationary fixed point-to-point connection often requiring direct
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2 line of sight between the provider's wireless transmitter and its
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3 end-user consumer's receiver; and
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4 8. "Broadband service providers" means a subclass of public
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5 service corporations consisting of any public service corporation
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6 offering broadband-based services including Internet access, Voice
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7 over Internet Protocol, or Internet Protocol television to end-user
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8 consumers. For the purposes of this paragraph, "broadband" means
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9 wired internet at speeds in excess of one hundred megabits per
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10 second (100 Mbps) for download and twenty megabits per second (20
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11 Mbps) for upload.
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12 B. As used in the Ad Valorem Tax Code, "transmission company"
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13 transmission company and "public service corporation" public service
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14 corporation shall not be construed to include cable television
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15 companies or fixed wireless broadband Internet service providers.
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16 C. Any real or personal property used by any company,
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17 corporation, trustee, receiver, or other person owning, leasing, or
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18 operating for hire any pipeline or oil or gas gathering system which
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19 was assessed by the State Board of Equalization after January 1,
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20 1997, shall continue to be assessed by the State Board of
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21 Equalization through ad valorem tax year 1998.
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22 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2847, is
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23 amended to read as follows:
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1 Section 2847. A. The property of all railroads, air carriers,
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2 and public service corporations shall be assessed annually by the
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3 State Board of Equalization at its fair cash value estimated at the
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4 price it would bring at a fair voluntary sale.
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5 B. Taxable values of real and personal property of all
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6 railroads, air carriers, and public service corporations shall be
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7 established in accordance with the requirements of Section 8 of
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8 Article X of the Oklahoma Constitution. The State Board of
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9 Equalization shall determine the taxable value of all taxable
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10 property that the Board is required by law to assess and value, and
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11 shall determine such taxable value in accordance with the
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12 requirements of Section 8 of Article X of the Oklahoma Constitution.
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13 C. The State Board of Equalization shall assess the property of
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14 that subclass of public service corporations known as video services
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15 providers, as defined in Section 2808 of this title, as provided:
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16 1. Every video services provider shall file with the State
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17 Board of Equalization a certification regarding total gross receipts
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18 for the immediate preceding calendar year by April 15 and shall
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19 specify the total gross receipts derived from video programming
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20 services;
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21 2. The State Board of Equalization shall determine the
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22 percentage of gross receipts the video services provider has derived
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23 from video programming in the immediately preceding calendar year;
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24 and
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1 3. The percentage determined pursuant to paragraph 2 of this
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2 subsection shall be applied to the taxable fair cash value allocated
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3 to Oklahoma this state, and the resulting fair cash value
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4 attributable to video programming services shall be assessed using
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5 the statewide average of the assessment ratios applied to the assets
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6 of cable television companies in that tax year. Unless the taxpayer
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7 or the State Board of Equalization demonstrates otherwise, the
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8 statewide average assessment ratio applied to the personal property
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9 of a cable television company shall be assumed to be twelve percent
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10 (12%).
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11 D. The percentage of fair cash value for real and personal
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12 property of railroads, air carriers, and public service corporations
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13 required by the Oklahoma Constitution to be taxable shall be the
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14 percentage at which it was assessed on January 1, 1996, in
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15 accordance with the provisions of paragraph 3 of subsection A of
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16 Section 8 of Article X of the Oklahoma Constitution, and, subject to
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17 the requirements of federal law, shall be uniformly applied to
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18 calculate the taxable values of public service corporation property
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19 within the state for the applicable assessment year.
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20 E. The State Board of Equalization shall assess the property
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21 used to provide wired broadband service that is constructed or
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22 installed and placed in service after the effective date of this
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23 act, in an area where the coverage for wired internet at speeds in
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24 excess of one hundred megabits per second (100 Mbps) for download
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1 and twenty megabits per second (20 Mbps) for upload is equal to or
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2 less than ten percent (10%) according to the most recent FCC
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3 National Broadband Map published by the Federal Communications
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4 Commission at the time the property is constructed or installed and
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5 placed in service, of that subclass of public service corporations
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6 known as broadband service providers, as defined in Section 2808 of
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7 this title, at a ratio of fifteen percent (15%) for tax years 2026
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8 through 2036. Provided, the property assessed pursuant to this
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9 subsection shall only include property exclusively used to provide
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10 broadband internet service to areas meeting the coverage
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11 requirements as provided in this subsection including fiber, cable,
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12 transmission lines, fiber support infrastructure, cable support
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13 infrastructure, transmission line support infrastructure, network
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14 infrastructure, and facilities used to contain network
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15 infrastructure. The valuation of all assets shall be calculated on
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16 a net book basis to each assessment rate as provided in this
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17 subsection and subsection D of this section. The Oklahoma Tax
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18 Commission may promulgate rules to effectuate the provisions of this
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19 subsection.
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20 SECTION 3. This act shall become effective January 1, 2026.
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22 60-1-1206 QD 1/16/2025 3:54:55 PM
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Req. No. 1206 Page 6Every fact on this page links to its source, starting with the official bill record.