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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 315 By: Stanley
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6 AS INTRODUCED
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7 An Act relating to the inspection of real property;
7 amending 68 O.S. 2021, Sections 2802, 2821, and 2823,
8 which relate to the visual inspection of real
8 property; modifying definition; modifying certain
9 requirements for physical inspection of certain real
9 property; updating statutory language; updating
10 statutory reference; and providing 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 standards for the collection and analysis of information about
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19 taxable properties within a taxing jurisdiction permitting the
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20 accurate estimate of fair cash value for similar properties in the
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21 jurisdiction either without direct observation of such similar
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22 properties or without direct sales price information for such
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23 similar properties using a reliable statistical or other method to
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24 estimate the values of such properties;
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1 2. "Additional homestead exemption" means the exemption
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2 provided by Section 2890 of this title;
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3 3. "Assessor" means the county assessor and, unless the context
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4 clearly requires otherwise, deputy assessors and persons employed by
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5 the county assessor in performance of duties imposed by law;
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6 4. "Assess and value" means to establish the fair cash value
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7 and taxable fair cash value of taxable real and personal property
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8 pursuant to requirements of law;
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9 5. "Assessed valuation" or "assessed value" means the
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10 percentage of the fair cash value of personal property, or the
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11 percentage of the taxable fair cash value of real property, pursuant
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12 to the provisions of Sections 8 and 8B of Article X of the Oklahoma
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13 Constitution, either of individual items of personal property,
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14 parcels of real property or the aggregate total of such individual
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15 taxable items or parcels within a jurisdiction;
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16 6. "Assessment percentage" means the percentage applied to
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17 personal property and real property pursuant to Section 8 of Article
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18 X of the Oklahoma Constitution;
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19 7. "Assessment ratio" means the relationship between assessed
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20 value and taxable fair cash value for a county or for use categories
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21 within a county expressed as a percentage determined in the annual
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22 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, subtracting accrued depreciation including any
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23 loss in value that may be caused by physical deterioration,
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1 functional obsolescence, or economic obsolescence, and adding the
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2 value of the 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 to the cost of
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15 replacing it with a property of equal utility) that
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16 stems from factors external to the property;
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17 16. "County board of equalization" means the board which, upon
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18 hearing competent evidence, has the authority to correct and adjust
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19 the assessment rolls in its respective county to conform to fair
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20 cash value and such other responsibilities as prescribed in Section
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21 2801 et seq. of this title;
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22 17. "Equalization" means the process for making adjustments to
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23 taxable property values within a county by analyzing the
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24 relationships between assessed values and fair cash values in one or
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1 more use categories within the county or between counties by
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2 analyzing the relationship between assessed value and fair cash
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3 value in each county;
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4 18. "Equalization ratio study" means the analysis of the
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5 relationships between assessed values and fair cash values in the
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6 manner provided by law;
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7 19. "Fair cash value" or "market value" means the value or
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8 price at which a willing buyer would purchase property and a willing
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9 seller would sell property if both parties are knowledgeable about
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10 the property and its uses and if neither party is under any undue
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11 pressure to buy or sell and for real property shall mean the value
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12 for the highest and best use for which such property was actually
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13 used, or was previously classified for use, during the calendar year
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14 next preceding the applicable January 1 assessment date;
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15 20. "Homestead exemption" means the reduction in the taxable
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16 value of a homestead as authorized by law;
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17 21. "Income and expense approach" means a method to estimate
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18 fair cash value of a property by determining the present value of
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19 the projected income stream;
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20 22. "List and assess" means the process by which taxable
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21 property is discovered, its description recorded for purposes of ad
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22 valorem taxation, and its fair cash value and taxable fair cash
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23 value are established;
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1 23. "Mill" or "millage" means the rate of tax imposed upon
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2 taxable value. One (1) mill equals One Dollar ($1.00) of tax for
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3 each One Thousand Dollars ($1,000.00) of taxable value;
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4 24. "Multiple regression analysis" means a statistical
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5 technique for estimating unknown data on the basis of known and
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6 available data;
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7 25. "Parcel" means a contiguous area of land described in a
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8 single description by a deed or other instrument or as one of a
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9 number of lots on a plat or plan, separately owned and capable of
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10 being separately conveyed;
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11 26. "Sales comparison approach" means the collection,
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12 verification, and screening of sales data, stratification of sales
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13 information for purposes of comparison, and use of such information
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14 to establish the fair cash value of taxable property;
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15 27. "State Board of Equalization" means the Board responsible
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16 for valuation of railroad, airline, and public service corporation
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17 property and the adjustment and equalization of all property values
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18 both centrally and locally assessed;
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19 28. "Taxable value" means the percentage of the fair cash value
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20 of personal property or the taxable fair cash value of real
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21 property, less applicable exemptions, upon which an ad valorem tax
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22 rate is levied pursuant to the provisions of Section 8 and Section
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23 8B of Article X of the Oklahoma Constitution;
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1 29. "Taxable fair cash value" means the fair cash value of
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2 locally assessed real property as capped pursuant to Section 8B of
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3 Article X of the Oklahoma Constitution;
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4 30. "Use category" means a subcategory of real property, that
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5 is either agricultural use, residential use, or
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6 commercial/industrial use but does not and shall not constitute a
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7 class of subjects within the meaning of the Oklahoma Constitution
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8 for purposes of ad valorem taxation;
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9 31. "Use value" means the basis for establishing fair cash
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10 value of real property pursuant to the requirement of Section 8 of
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11 Article X of the Oklahoma Constitution; and
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12 32. "Visual inspection program" means the program required in
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13 order to gather data about real property from physical examination
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14 of the property and improvements in order to establish the fair cash
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15 values of properties so inspected at least once each four (4) years
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16 and the fair cash values of similar properties on an annual basis.
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17 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821, is
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18 amended to read as follows:
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19 Section 2821. A. Each county assessor shall cause real
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20 property to be physically inspected as part of the visual inspection
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21 cycle and shall require such examination as will provide adequate
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22 data from which to make accurate valuations.
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23 B. The information gathered from the physical inspection shall
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24 be relevant to the type of property involved, its use category, the
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1 valuation methodology to be used for the property, whether the
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2 methodology consists of the cost approach, an income and expense
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3 approach or sales comparison approach, and shall be complete enough
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4 in order to establish the fair cash value of the property in
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5 accordance with accepted standards for mass appraisal practice.
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6 C. Information gathered during the physical inspection shall be
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7 recorded using a standard method as prescribed by the Oklahoma Tax
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8 Commission in computerized or noncomputerized form. The information
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9 may include property ownership, location, size, use, use category, a
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10 physical description of the land and improvements, or such other
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11 information as may be required.
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12 D. In order to conduct the visual inspections of real property
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13 during the four-year cycle, each county assessor shall acquire and
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14 maintain cadastral maps and a parcel identification system. The
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15 standards for the cadastral maps and the parcel identification
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16 system shall be uniform for each county of the state and shall be in
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17 such form as developed by the Ad Valorem Task Force Division.
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18 E. The county assessor shall maintain a comprehensive sales
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19 file for each parcel of real property within the county containing
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20 relevant property characteristics, sales price information,
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21 adjustments to sales price for purposes of cash equivalency,
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22 transaction terms, and such other information as may be required in
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23 order to establish the fair cash value of taxable real property.
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1 Each county assessor shall ensure that the office is equipped
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2 with adequate drafting facilities, tools, equipment, and supplies in
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3 order to produce or update maps, sketches, or drawings necessary to
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4 support the proper administration of the ad valorem tax and such
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5 other tools or equipment as may be required to perform duties
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6 imposed by law for the discovery and valuation of taxable property.
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7 SECTION 3. AMENDATORY 68 O.S. 2021, Section 2823, is
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8 amended to read as follows:
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9 Section 2823. A. For each fiscal year, the cost of the
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10 comprehensive program of visual inspections for real property and
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11 the cost of physical inspections of personal property shall be paid
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12 by appropriate warrants from those who receive the revenues of the
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13 mill rates levied on the property of the county as prescribed by
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14 this section. School districts are hereby authorized to pay such
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15 costs from revenues accruing to their building funds. The county
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16 assessor shall prepare a budget for the comprehensive program of
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17 visual inspections for real property and the cost of physical
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18 inspections of personal property and file such budget with the
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19 county excise board or county budget board.
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20 B. The county excise board or county budget board shall
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21 apportion such cost among the various recipients of revenues from
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22 the mill rates levied, including the county, all cities and towns,
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23 all school districts, all sinking funds of such recipients, and all
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24 jurisdictions specified in subsection D of this section, in the
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1 ratio which each recipient's total tax collection authorized from
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2 its mill rates levied for the preceding year bears to the total tax
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3 collection authorized of all recipients from all their mill rates
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4 levied for the preceding year. The cost shall include only those
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5 expenses directly attributable to the visual inspection program and
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6 those expenses directly attributable to physical inspections of
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7 personal property and shall not include any expenses of the office
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8 of the county assessor which, in the judgment of the county excise
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9 board or county budget board, are expenses of county assessor's
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10 office which would exist in the absence of such program or in the
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11 absence of physical on-site inspection of personal property.
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12 Expenses that are attributable both to the visual inspection program
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13 and physical on-site inspection of personal property, and which
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14 would exist in the absence of such program or inspection, including,
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15 but not limited to, salaries, employee benefits, office supplies,
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16 and equipment, may be prorated; provided, no portion of the salary
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17 of the county assessor shall be included in such costs.
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18 C. Upon receipt of the billing statement provided for in
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19 subsections D and E of this section by each such recipient, the mill
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20 rates to be established by the board for each such recipient for the
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21 current year shall include and be based upon such amounts and shall
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22 constitute an appropriation of such amounts to the county assessor
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23 for expenditure for the expenses of administering the visual
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24 inspection program each year. In the case of a sinking fund of a
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1 recipient, if, after approving its budget, the governing body of a
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2 recipient notifies the board in writing that there are no funds
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3 appropriated to pay the amount of the billing statement for such
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4 sinking fund, such notice shall constitute conclusive evidence of a
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5 financial obligation of the recipient as it relates to such sinking
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6 fund. The board may seek a judgment for the amount of such
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7 obligation and court costs in the district court of the county in
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8 which the board is located.
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9 D. The county assessor shall render a statement to each of the
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10 jurisdictions within the county which receive revenue from an ad
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11 valorem mill rate. Such statement shall include the following
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12 information:
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13 1. The current fiscal year in which the charge has been
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14 incorporated in the jurisdiction's budget;
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15 2. All jurisdictions receiving statements from the county
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16 assessor, the mill rate for each in the previous year, and the
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17 proportion of each to the combined mill rates of all jurisdictions
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18 within the county for the previous year. The proportions specified
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19 in this paragraph should equal a total of one hundred percent
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20 (100%);
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21 3. The charge for the entity receiving the statement as well as
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22 the charge for each jurisdiction of the county based upon the
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23 proportions specified in paragraph 2 of this subsection. The total
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24 of all current year charges for all county jurisdictions should
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1 equal the total visual inspection program budget for the current
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2 fiscal year;
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3 4. The amount of the total budget for the office of the county
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4 assessor and the percentage that visual inspection program expenses
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5 are of such total budget; and
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6 5. A copy of the County Budget Visual Inspection Account county
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7 budget visual inspection account and a brief description of the
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8 areas to be visually inspected for the current fiscal year,
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9 consistent with the plan on file with the Oklahoma Tax Commission
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10 pursuant to Section 2820 of this title.
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11 E. In any county wherein any jurisdiction's budget and mill
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12 rates are not subject to review and approval by the county excise
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13 board, the county assessor shall nevertheless include any such
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14 jurisdiction in the calculations required under subsection A of this
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15 section. The county assessor shall also render a billing statement
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16 to any such jurisdiction showing the charge for the current fiscal
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17 year due from the jurisdiction. Such billing statement shall also
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18 show all the information specified in subsection D of this section.
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19 Such billing statement shall clearly indicate that the charge
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20 payable by the jurisdiction is due and payable by December 31 of the
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21 current fiscal year.
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22 SECTION 4. This act shall become effective November 1, 2025.
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24 60-1-356 MSBB 12/31/2024 9:28:29 AM
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Req. No. 356 Page 12Every fact on this page links to its source, starting with the official bill record.