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Oklahoma Legislature· SB 679Second Reading referred to Revenue and Taxation

An act relating to ad valorem taxation, the official text

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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 679               By: Deevers
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6                               AS INTRODUCED

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7   An Act relating to ad valorem taxation; creating the

7   Property Tax Transparency Act; providing short title;

8   stating purpose; defining terms; prescribing annual

8   assessment statement; prescribing information

9   included on property tax bill; requiring certain

9   entities to provide certain report; requiring the

10  mailing of bill; authorizing property owners to

10  access certain information; authorizing protest of

11  valuation; requiring assessors to maintain online

11  platform; requiring annual audit; requiring the State

12  Auditor and Inspector to enforce the provisions of

12  act; providing fine for certain violation; allocating

13  fine collections; providing for misdemeanor for

13  certain violation; requiring State Auditor and

14  Inspector to prepare annual report; providing for

14  noncodification; providing for codification;

15  providing an effective date; and declaring an

15  emergency.

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18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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19  SECTION 1.         NEW LAW  A new section of law not to be

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20 codified in the Oklahoma Statutes reads as follows:
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21  This act shall be known and may be cited as the "Property Tax

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22 Transparency Act".
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23  SECTION 2.         NEW LAW  A new section of law not to be

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24 codified in the Oklahoma Statutes reads as follows:
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    Req. No. 1354                                              Page 1
1      The purpose of this act is to ensure full transparency in

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2 property tax assessments and billing by mandating detailed reporting
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3 of:
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4      1. Fair cash value with the methodology used for determination;

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5      2. Assessment ratios;

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6      3. Exemptions;

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7      4. Property taxes; and

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8      5. A breakdown of how property tax revenues are allocated and

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9 spent.
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10     The act further requires that a copy of the property tax bill is

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11 sent directly to property owners, even if the property is in escrow
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12 and the bank is responsible for payment.
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13     SECTION 3.  NEW LAW      A new section of law to be codified

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14 in the Oklahoma Statutes as Section 2802.3 of Title 68, unless there
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15 is created a duplication in numbering, reads as follows:
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16     A. As used in this act:

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17     1. "Fair cash value" means the estimated market value of a

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18 property as determined by the county tax assessor using standardized
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19 methodologies pursuant to Section 2817 of Title 68 of the Oklahoma
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20 Statutes;
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21     2. "Assessment ratio" means the percentage of the fair cash

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22 value that is subject to taxation, as established by state law or
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23 local regulations pursuant to Section 8 of Article X of the Oklahoma
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24 Constitution;
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    Req. No. 1354                                            Page 2
1   3. "Exemptions" means reductions in taxable value granted based

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2 on eligibility criteria including, but not limited to, age, income,
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3 and property use;
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4   4. "Property tax bill" means a document detailing the property

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5 taxes owed, including how the total was calculated, and sent to the
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6 property owner; and
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7   5. "Escrow" means a financial arrangement where a third party

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8 holds funds on behalf of property owners to pay property taxes and
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9 other obligations.
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10  B. County tax assessors shall include in the annual assessment

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11 statement:
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12  1. The fair cash value of the property; and

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13  2. A detailed explanation of the methodology used to determine

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14 the fair cash value, including:
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15  a. comparable sales data, including addresses and sale

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16                 prices of similar properties,

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17  b. adjustments made for property-specific factors such as

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18                 size, age, condition, and location, and

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19  c. any other considerations affecting valuation, such as

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20                 zoning changes, recent improvements, or market trends.

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21  C. The assessment ratio applied to calculate the taxable value

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22 of the property shall be clearly stated, along with a citation to
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23 the legal authority setting the ratio.
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    Req. No. 1354                                           Page 3
1   D. A detailed list of all exemptions or abatements applied must

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2 be provided, including:
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3   a. the type of exemption,

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4   b. the dollar value of each exemption, and

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5   c. the basis or criteria for eligibility.

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6   E. The total property taxes owed shall be calculated and

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7 presented, with a clear breakdown showing:
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8   1. The taxable value of the property after applying the

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9 assessment ratio and exemptions;
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10  2. The tax rates for each taxing entity including, but not

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11 limited to, schools, municipalities, special districts; and
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12  3. The dollar amount allocated to each taxing entity.

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13  F. Each property tax bill shall include a breakdown of how the

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14 tax contributions of the owner are spent, expressed as a percentage
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15 of the total taxes collected. The breakdown shall include
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16 categories such as:
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17  1. Public education;

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18  2. Public safety, including, but not limited to, police

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19 departments, fire departments, and emergency services;
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20  3. Infrastructure and transportation;

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21  4. Administrative and operational costs;

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22  5. Debt servicing; and

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23  6. Any other significant expenditure categories specific to the

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24 taxing entities.
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    Req. No. 1354                                               Page 4
1   G. Taxing entities receiving property tax revenues shall

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2 provide detailed annual expenditure reports to the county tax
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3 assessor, ensuring accurate and up-to-date allocation data for
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4 inclusion in property tax bills.
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5   H. A copy of the property tax bill shall be sent directly to

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6 the mailing address of the property owner, regardless of whether the
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7 property is in escrow or the bank is responsible for payment with
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8 designation if the property tax is paid via escrow or not. If a
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9 property tax bill is sent to an escrow holder, it shall include a
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10 statement that a copy of the bill has also been sent to the property
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11 owner.
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12  I. Property owners shall have the right to access and review

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13 all records and data used in determining the fair cash value of
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14 their property.
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15  J. Property owners may formally contest the fair cash value of

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16 their property by requesting a review, during which the county tax
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17 assessor must provide justification and supporting documentation for
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18 the valuation.
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19  K. County tax assessors shall maintain an online platform where

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20 property owners can access their assessment, fair cash value
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21 determination, assessment ratio, exemptions, and tax liability. The
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22 platform shall include a searchable database allowing property
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23 owners to locate detailed information about their property and
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24 download relevant reports.
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    Req. No. 1354                   Page 5
1   L. Independent third-party audits shall be conducted annually

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2 to verify the accuracy and fairness of property tax assessments and
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3 billing processes. Audit findings must be published on the online
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4 platform of the county within thirty (30) days of completion.
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5   M. The enforcement of this act shall be the responsibility of

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6 the State Auditor and Inspector, in collaboration with the relevant
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7 county authorities. The State Auditor and Inspector shall oversee
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8 compliance with the reporting and transparency requirements. County
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9 governments shall assist by identifying and reporting violations at
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10 the local level.
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11  N. Failure to provide a copy of the property tax bill to

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12 property owners shall result in a fine not to exceed One Thousand
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13 Dollars ($1,000.00) per violation. Fines shall be collected by the
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14 State Treasurer and shall be allocated as follows:
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15  1. Fifty percent (50%) to the State Auditor and Inspector;

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16  2. Twenty-five percent (25%) to the county fund of the county

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17 where the violation occurred; and
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18  3. Twenty-five percent (25%) to the municipality where the

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19 violation occurred. If the violation did not occur in a
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20 municipality, then the portion provided by this paragraph shall be
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21 allocated to the county fund of the county where the violation
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22 occurred.
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23  O. Knowingly providing inaccurate information in property

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24 assessments, tax bills, or expenditure breakdowns shall be treated
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    Req. No. 1354                                           Page 6
1 as a misdemeanor punishable under applicable state laws. Fines for
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2 false or misleading reporting shall be collected by the State
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3 Treasurer and distributed using the same allocation percentages
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4 provided in subsection N of this section.
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5   P. The State Auditor and Inspector shall prepare an annual

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6 report detailing:
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7   1. The number and nature of violations;

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8   2. Total fines collected and their allocation; and

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9   3. Recommendations for improving enforcement and compliance

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10 with this act.
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11  SECTION 4. This act shall become effective July 1, 2025.

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12  SECTION 5. It being immediately necessary for the preservation

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13 of the public peace, health or safety, an emergency is hereby
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14 declared to exist, by reason whereof this act shall take effect and
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15 be in full force from and after its passage and approval.
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    Req. No. 1354                                             Page 7
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