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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 2143 By: Alvord
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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 2802 and 2821, which relate to
8 definitions and physical inspection of real property;
8 modifying definition; defining term; authorizing the
9 use digital visual technology for inspection of real
9 property; updating statutory language; and providing
10 an effective 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 2802, is
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15 amended to read as follows:
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16 Section 2802. As used in Section 2801 et seq. of this title:
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17 1. "Accepted standards for mass appraisal practice" means those
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18 the standards on mass appraisal of real property, as maintained by
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19 the International Association of Assessing Officers, for the
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20 collection and analysis of information about taxable properties
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21 within a taxing jurisdiction permitting the accurate estimate of
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22 fair cash value for similar properties in the jurisdiction either
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23 without direct observation of such similar properties or without
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24 direct sales price information for such similar properties using a
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Req. No. 3008 Page 1
1 reliable statistical or other method to estimate the values of such
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2 properties;
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3 2. "Additional homestead exemption" means the exemption
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4 provided by Section 2890 of this title;
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5 3. "Assessor" means the county assessor and, unless the context
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6 clearly requires otherwise, deputy assessors and persons employed by
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7 the county assessor in performance of duties imposed by law;
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8 4. "Assess and value" means to establish the fair cash value
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9 and taxable fair cash value of taxable real and personal property
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10 pursuant to requirements of law;
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11 5. "Assessed valuation" or "assessed value" means the
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12 percentage of the fair cash value of personal property, or the
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13 percentage of the taxable fair cash value of real property, pursuant
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14 to the provisions of Sections 8 and 8B of Article X of the Oklahoma
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15 Constitution, either of individual items of personal property,
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16 parcels of real property or the aggregate total of such individual
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17 taxable items or parcels within a jurisdiction;
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18 6. "Assessment percentage" means the percentage applied to
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19 personal property and real property pursuant to Section 8 of Article
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20 X of the Oklahoma Constitution;
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21 7. "Assessment ratio" means the relationship between assessed
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22 value and taxable fair cash value for a county or for use categories
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23 within a county expressed as a percentage determined in the annual
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24 equalization ratio study;
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1 8. "Assessment roll" means a computerized or noncomputerized
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2 record required by law to be kept by the county assessor and
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3 containing information about property within a taxing jurisdiction;
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4 9. "Assessment year" means the year beginning January 1 of each
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5 calendar year and ending on December 31 preceding the following
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6 January 1 assessment date;
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7 10. "Circuit breaker" means the form of property tax relief
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8 provided by Sections 2904 through 2911 of this title;
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9 11. "Class of subjects" means a category of property
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10 specifically designated pursuant to provisions of the Oklahoma
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11 Constitution for purposes of ad valorem taxation;
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12 12. "Code" means the Ad Valorem Tax Code, Section 2801 et seq.
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13 of this title;
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14 13. "Coefficient of dispersion" means a statistical measure of
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15 assessment uniformity for a category of property or for all property
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16 within a taxing jurisdiction;
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17 14. "Confidence level" means a statistical procedure for
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18 determining the degree of reliability for use in reporting the
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19 assessment ratio for a taxing jurisdiction;
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20 15. "Cost approach" means a method used to establish the fair
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21 cash value of property involving an estimate of current construction
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22 cost of improvements, not to include developer costs at the time of
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23 construction, subtracting accrued depreciation including any loss in
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24 value that may be caused by physical deterioration, functional
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1 obsolescence or economic obsolescence and adding the value of the
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2 land.
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3 a. Physical deterioration is a cause of depreciation that
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4 is a loss in value due to ordinary wear and tear and
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5 the forces of nature.
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6 b. Functional or internal obsolescence is the loss in
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7 value of a property resulting from changes in tastes,
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8 preferences, technical innovations or market
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9 standards.
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10 c. Economic or external obsolescence is a cause of
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11 depreciation that is a loss in value as a result of
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12 impairment in utility and desirability caused by
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13 factors outside the boundaries of the property or loss
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14 of value in a property (relative, relative to the cost
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15 of replacing it with a property of equal utility),
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16 utility that stems from factors external to the
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17 property;
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18 16. "County board of equalization" means the board which, upon
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19 hearing competent evidence, has the authority to correct and adjust
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20 the assessment rolls in its respective county to conform to fair
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21 cash value and such other responsibilities as prescribed in Section
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22 2801 et seq. of this title;
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23 17. "Equalization" means the process for making adjustments to
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24 taxable property values within a county by analyzing the
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1 relationships between assessed values and fair cash values in one or
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2 more use categories within the county or between counties by
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3 analyzing the relationship between assessed value and fair cash
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4 value in each county;
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5 18. "Equalization ratio study" means the analysis of the
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6 relationships between assessed values and fair cash values in the
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7 manner provided by law;
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8 19. "Fair cash value" or "market value" means the value or
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9 price at which a willing buyer would purchase property and a willing
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10 seller would sell property if both parties are knowledgeable about
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11 the property and its uses and if neither party is under any undue
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12 pressure to buy or sell and for real property shall mean the value
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13 for the highest and best use for which such property was actually
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14 used, or was previously classified for use, during the calendar year
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15 next preceding the applicable January 1 assessment date;
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16 20. "Fixed-wing aircraft" means a manned flying machine,
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17 commonly known as an airplane, that generates lift through the
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18 forward motion of the aircraft and wings that do not revolve around
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19 a mast, but are fixed in relation to the fuselage of the aircraft.
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20 Fixed-wing aircraft shall also comply with Federal Aviation
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21 Administration regulations. For the purposes of this paragraph,
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22 fixed-wing aircraft shall not include unmanned aircraft as defined
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23 in Section 322 of Title 3 of the Oklahoma Statutes;
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1 21. "Homestead exemption" means the reduction in the taxable
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2 value of a homestead as authorized by law;
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3 21. 22. "Income and expense approach" means a method to
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4 estimate fair cash value of a property by determining the present
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5 value of the projected income stream;
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6 22. 23. "List and assess" means the process by which taxable
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7 property is discovered, its description recorded for purposes of ad
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8 valorem taxation and its fair cash value and taxable fair cash value
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9 are established;
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10 23. 24. "Mill" or "millage" means the rate of tax imposed upon
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11 taxable value. One (1) mill equals One Dollar ($1.00) of tax for
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12 each One Thousand Dollars ($1,000.00) of taxable value;
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13 24. 25. "Multiple regression analysis" means a statistical
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14 technique for estimating unknown data on the basis of known and
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15 available data;
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16 25. 26. "Parcel" means a contiguous area of land described in a
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17 single description by a deed or other instrument or as one of a
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18 number of lots on a plat or plan, separately owned and capable of
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19 being separately conveyed;
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20 26. 27. "Sales comparison approach" means the collection,
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21 verification, and screening of sales data, stratification of sales
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22 information for purposes of comparison and use of such information
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23 to establish the fair cash value of taxable property;
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1 27. 28. "State Board of Equalization" means the Board
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2 responsible for valuation of railroad, airline and public service
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3 corporation property and the adjustment and equalization of all
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4 property values both centrally and locally assessed;
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5 28. 29. "Taxable value" means the percentage of the fair cash
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6 value of personal property or the taxable fair cash value of real
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7 property, less applicable exemptions, upon which an ad valorem tax
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8 rate is levied pursuant to the provisions of Section 8 and Section
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9 8B of Article X of the Oklahoma Constitution;
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10 29. 30. "Taxable fair cash value" means the fair cash value of
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11 locally assessed real property as capped pursuant to Section 8B of
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12 Article X of the Oklahoma Constitution;
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13 30. 31. "Use category" means a subcategory of real property,
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14 that is either agricultural use, residential use or
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15 commercial/industrial use but does not and shall not constitute a
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16 class of subjects within the meaning of the Oklahoma Constitution
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17 for purposes of ad valorem taxation;
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18 31. 32. "Use value" means the basis for establishing fair cash
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19 value of real property pursuant to the requirement requirements of
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20 Section 8 of Article X of the Oklahoma Constitution; and
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21 32. 33. "Visual inspection program" means the program required
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22 in order to gather data about real property from physical
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23 examination of the property and improvements in order to establish
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24 the fair cash values of properties so inspected at least once each
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1 four (4) years and the fair cash values of similar properties on an
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2 annual basis.
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3 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821, is
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4 amended to read as follows:
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5 Section 2821. A. Each county assessor shall cause real
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6 property to be physically inspected as part of the visual inspection
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7 cycle and shall require such examination as will provide adequate
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8 data from which to make accurate valuations. Changes to property
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9 may be discovered with the use of digital visual technology on
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10 aerial images taken by fixed-wing aircraft complying with Federal
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11 Aviation Administration regulations or satellite.
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12 B. The information gathered from the physical inspection shall
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13 be relevant to the type of property involved, its use category, the
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14 valuation methodology to be used for the property, whether the
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15 methodology consists of the cost approach, an income and expense
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16 approach or sales comparison approach, and shall be complete enough
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17 in order to establish the fair cash value of the property in
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18 accordance with accepted standards for mass appraisal practice.
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19 C. Information gathered during the physical inspection shall be
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20 recorded using a standard method as prescribed by the Oklahoma Tax
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21 Commission in computerized or noncomputerized form. The information
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22 may include property ownership, location, size, use, use category, a
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23 physical description of the land and improvements or such other
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24 information as may be required.
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1 D. In order to conduct the visual inspections of real property
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2 during the four-year cycle, each county assessor shall acquire and
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3 maintain cadastral maps and a parcel identification system. The
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4 standards for the cadastral maps and the parcel identification
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5 system shall be uniform for each county of the state and shall be in
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6 such form as developed by the Ad Valorem Task Force Division of the
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7 Oklahoma Tax Commission.
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8 E. The county assessor shall maintain a comprehensive sales
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9 file for each parcel of real property within the county containing
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10 relevant property characteristics, sales price information,
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11 adjustments to sales price for purposes of cash equivalency,
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12 transaction terms and such other information as may be required in
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13 order to establish the fair cash value of taxable real property.
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14 Each county assessor shall ensure that the office is equipped with
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15 adequate drafting facilities, tools, equipment and supplies in order
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16 to produce or update maps, sketches or drawings necessary to support
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17 the proper administration of the ad valorem tax and such other tools
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18 or equipment as may be required to perform duties imposed by law for
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19 the discovery and valuation of taxable property.
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20 SECTION 3. This act shall become effective November 1, 2026.
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22 60-2-3008 QD 1/15/2026 1:34:12 PM
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Req. No. 3008 Page 9Every fact on this page links to its source, starting with the official bill record.