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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1997 By: Murdock
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5 AS INTRODUCED
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6 An Act relating to ad valorem tax; amending 68 O.S.
6 2021, Section 2887, as amended by Section 1, Chapter
7 260, O.S.L. 2023 (68 O.S. Supp. 2025, Section 2887),
7 which relates to exemptions; providing exemption for
8 certain personal property of certain business entity;
8 prescribing procedure for determining total fair cash
9 value for entity; exempting entity from certain
9 filing requirement upon certain determination by
10 assessor; updating statutory language; updating
10 statutory references; and providing an effective
11 date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 2887, as
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15 amended by Section 1, Chapter 260, O.S.L. 2023 (68 O.S. Supp. 2025,
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16 Section 2887), is amended to read as follows:
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17 Section 2887. The following property shall be exempt from ad
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18 valorem taxation:
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19 1. All property of the United States, and such property as may
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20 be exempt by reason of treaty stipulations existing at statehood
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21 between the Indians and the United States government, or by reason
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22 of federal laws in effect at statehood, during the time such
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23 treaties or federal laws are in force and effect. In instances
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24 where a federal agency has obtained title to property through
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1 foreclosure, voluntary or involuntary liquidation or bankruptcy,
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2 which was previously subject to ad valorem taxation, the property
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3 may continue to be assessed for ad valorem taxes if such federal
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4 agency has agreed to pay such taxes;
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5 2. All property of this state, and of the counties, school
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6 districts, and municipalities of this state, including property
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7 acquired for the use of such entities pursuant to the terms of a
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8 lease-purchase agreement which provides for the passage of title or
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9 the release of security interest, if applicable, upon payment of all
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10 rental payments and an additional nominal amount;
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11 3. All property of any college or school, provided such
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12 property is devoted exclusively and directly to the appropriate
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13 objects of such college or school within this state and all property
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14 used exclusively for nonprofit schools and colleges;
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15 4. The books, papers, furniture and scientific or other
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16 apparatus pertaining to any institution, college or society referred
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17 to in paragraph 3 of this section, and devoted exclusively and
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18 directly for the purpose above contemplated, and the like property
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19 of students in any such institution or college, while such property
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20 is used for the purpose of their education;
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21 5. All fraternal orphan homes and other orphan homes;
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22 6. All property used for free public libraries, free museums,
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23 public cemeteries, or free public schools;
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1 7. All property used exclusively and directly for fraternal or
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2 religious purposes within this state. For purposes of this
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3 paragraph, an exemption based on religious purposes includes real
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4 property owned by a church which allows its premises to be used by
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5 an entity if such entity is not required to make rental payments to
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6 the church, is not required to execute a formal lease agreement with
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7 respect to its occupancy of the church premises and conducts
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8 instruction of children from any or all grades for ages preschool
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9 through twelfth grade, including religious instruction consistent
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10 with the doctrines of the church the premises of which are being
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11 used for that purpose. For purposes of this paragraph, a
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12 requirement by a church to be reimbursed by the entity for utility
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13 expenses, janitorial services or similar expenses shall not be a
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14 basis upon which to remove or deny the exempt status of church
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15 property. Exempt status of church property shall not be removed nor
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16 shall church property be allocated between taxable and exempt status
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17 based on the use of church premises by an entity as described by
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18 this paragraph.
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19 For purposes of administering the exemption authorized by this
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20 section and in order to determine whether a single family
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21 residential property is used exclusively and directly for fraternal
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22 or religious purposes, the fair cash value of a single family
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23 residential property, for which an exemption is claimed as
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24 authorized by this subsection section, in excess of Five Hundred
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1 Thousand Dollars ($500,000.00) for the applicable assessment year
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2 shall not be exempt from taxation;
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3 8. All property of any charitable institution organized or
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4 chartered under the laws of this state as a nonprofit or charitable
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5 institution, provided the net income from such property is used
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6 exclusively within this state for charitable purposes and no part of
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7 such income inures to the benefit of any private stockholder,
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8 including property which is not leased or rented to any person other
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9 than a governmental body, a charitable institution or a member of
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10 the general public who is authorized to be a tenant in property
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11 owned by a charitable institution under Section 501(c)(3) of the
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12 Internal Revenue Code of 1986, as amended, and which includes, but
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13 is not limited to, an institution that either:
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14 a. additionally satisfies the income standards set forth
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15 in Internal Revenue Service Revenue Procedure 96-32,
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16 which may be audited by the county assessor of the
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17 applicable county, in addition to other requirements
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18 of this subparagraph, as a condition of obtaining and
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19 maintaining the exemption, if:
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20 (1) the property provides residential rental
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21 accommodations regardless of whether services or
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22 meals are provided, and
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23 (2) the property:
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1 (a) is occupied as of the applicable January 1
1 assessment date if the structure is a
2 single-family dwelling, or
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3 (b) has an average seventy-five percent (75%)
3 occupancy rate, based upon the total number
4 of units suitable for occupancy, during the
4 calendar year preceding the applicable
5 January 1 assessment date if the property
5 contains multiple structures suitable for
6 multi-family multifamily housing. The owner
6 of any property subject to the occupancy
7 requirements prescribed herein shall submit
7 a report to the county assessor of the
8 county in which the property is located no
8 later than December 15 each year regarding
9 the occupancy rate for the preceding eleven
9 (11) months. If the report indicates that
10 the average occupancy rate was less than
10 seventy-five percent (75%), the county
11 assessor shall determine the taxable value
11 of the property for the succeeding
12 assessment year and the property shall not
12 be exempt for any subsequent assessment year
13 unless the average occupancy rate is at
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Req. No. 3095
1 least seventy-five percent (75%) during the
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2 succeeding eleven-month period. Except as
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3 provided in Section 178.6 of Title 60 of the
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4 Oklahoma Statutes, no asset consisting of a
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5 single-family or multi-family multifamily
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6 dwelling unit owned by an entity the
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7 property of which would otherwise be exempt
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8 pursuant to this subparagraph a of this
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9 paragraph shall be exempt from ad valorem
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10 taxation if any such dwelling unit was
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11 improved with or acquired with any portion
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12 of proceeds from the sale of obligations
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13 issued by any entity organized pursuant to
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14 Section 176 of Title 60 of the Oklahoma
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15 Statutes if the interest income derived from
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16 such obligations is exempt from federal
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17 income tax, or
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18 b. (1) for a facility constructed prior to January 1,
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19 2006, is a continuum of care retirement community
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20 providing housing for the aged, licensed under
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21 Oklahoma law, owned by a nonprofit entity
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22 recognized by the Internal Revenue Service as a
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23 Section 501(c)(3) tax-exempt entity and located
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24 in a county with a population of more than five
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1 hundred thousand (500,000) according to the
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2 latest Federal Decennial Census, and
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3 (2) (a) for a facility in which construction was
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4 completed on or after January 1, 2006, is:
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5 i. a continuum of care retirement
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6 community providing housing for the
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7 aged, licensed under Oklahoma law,
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8 ii. owned by a nonprofit entity recognized
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9 by the Internal Revenue Service as a
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10 Section 501(c)(3) tax-exempt entity,
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11 and
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12 iii. located in any county of the state
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13 regardless of population, or
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14 (b) for a facility other than a facility
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15 described by division (1) of this
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16 subparagraph b of this paragraph and which
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17 is partially or fully constructed prior to
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18 January 1, 2006, is:
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19 i. owned and occupied on or after January
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20 1, 2006, by an entity that operates a
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21 continuum of care retirement community
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22 providing housing for the aged,
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23 licensed under Oklahoma law,
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1 ii. owned by a nonprofit entity recognized
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2 by the Internal Revenue Service as a
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3 Section 501(c)(3) tax-exempt entity,
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4 and
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5 iii. is located in any county of the state
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6 regardless of population;
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7 9. All property used exclusively and directly for charitable
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8 purposes within this state, provided the charity using said such
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9 property does not pay any rent or remuneration to the owner thereof
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10 unless the owner is a charitable institution described in Section
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11 501(c)(3) of the Internal Revenue Code, 26 U.S.C., Section
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12 501(c)(3), or a veterans' organization described in Section
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13 501(c)(19) of the Internal Revenue Code, 26 U.S.C., Section
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14 501(c)(19);
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15 10. All property of any hospital established, organized and
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16 operated by any person, partnership, association, organization,
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17 trust, or corporation, as a nonprofit and charitable hospital,
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18 provided the property and net income from such hospital are used
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19 directly, solely, and exclusively within this state for charitable
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20 purposes and that no part of such income shall inure to the benefit
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21 of any individual, person, partner, shareholder, or stockholder, and
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22 provided further that such hospital facilities shall be open to the
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23 public without discrimination as to race, color or creed and
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24 regardless of ability to pay, and that such hospital is licensed and
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1 otherwise complies with the laws of this state relating to the
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2 licensing and regulation of hospitals;
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3 11. All libraries and office equipment of ministers of the
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4 Gospel actively engaged in ministerial work in the State of Oklahoma
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5 this state, where said such libraries and office equipment are being
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6 used by said such ministers in their ministerial work, shall be
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7 deemed to be used exclusively for religious purposes and are
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8 declared to be within the meaning of the term "religious purposes"
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9 as used in Article X, Section 6 of Article X of the Oklahoma
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10 Constitution of the State of Oklahoma;
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11 12. Household goods, tools, implements and livestock of every
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12 person maintaining a home, not exceeding One Hundred Dollars
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13 ($100.00) in value or One Thousand Dollars ($1,000.00) in value if
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14 Article X, Section 6 of Article X of the Oklahoma Constitution
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15 provides for an exemption in such amount; and in addition thereto,
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16 there shall be exempt from taxation on personal property the further
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17 sum of Two Hundred Dollars ($200.00) to all enlisted and
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18 commissioned personnel, whether on active duty or honorably
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19 discharged, who served in the Armed Forces of the United States
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20 during:
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21 a. the Spanish-American War,
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22 b. the period beginning on April 6, 1917, and ending on
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23 July 2, 1921,
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1 c. the period beginning on December 6, 1941, and ending
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2 on such date as the state of national emergency as
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3 declared by the President of the United States shall
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4 cease to exist December 31, 1946, or
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5 d. any other or future period during which a state of
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6 national emergency shall have been or shall be
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7 declared to exist by the Congress or the President of
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8 the United States.
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9 All surviving spouses made so by the death of such enlisted or
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10 commissioned personnel, who are bona fide residents of this state,
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11 shall be entitled to the above additional exemption provided in this
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12 paragraph;
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13 13. Family portraits;
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14 14. All food and fuel provided in kind for the use of the
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15 family not to exceed provisions for one (1) year's time, and all
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16 grain and forage necessary to maintain for one (1) year the
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17 livestock used to provide food for the family. No person from whom
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18 pay is received or expected for board shall be considered a member
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19 of the family within the intent and meaning of this paragraph;
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20 15. All growing crops; and
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21 16. All game animals, fowl and reptile, which are not being
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22 grown for food or sale and which are kept exclusively for
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23 propagation or exhibition, in private grounds or public parks in
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24 this state; and
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1 17. Tangible personal property owned by a business entity and
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2 used in the operation of a business if the total fair cash value of
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3 all such property owned by the business entity within this state
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4 does not exceed Twenty-five Thousand Dollars ($25,000.00) in the
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5 applicable tax year. For the purposes of this paragraph:
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6 a. the total fair cash value shall be determined before
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7 the application of any depreciation schedules and
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8 shall include all taxable tangible personal property
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9 otherwise subject to ad valorem taxation,
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10 b. a business entity claiming the exemption provided by
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11 this paragraph shall not be required to file a
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12 tangible personal property rendition form if the
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13 county assessor determines the exemption applies based
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14 upon information reasonably available to the assessor,
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15 and
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16 c. the exemption provided by this paragraph shall apply
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17 per business entity, regardless of the number of
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18 locations operated by the business entity within the
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19 state.
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20 SECTION 2. This act shall become effective January 1, 2027.
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22 60-2-3095 QD 1/15/2026 9:40:59 AM
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Req. No. 3095 Page 11Every fact on this page links to its source, starting with the official bill record.