1|ENGROSSED HOUSE AMENDMENT | | TO | 2|ENGROSSED SENATE BILL NO. 684 By: Stanley of the Senate | | | 3| and | | | 4| Kannady of the House | | | 5| | | | 6| | | | 7| [ inspection of real property - technology - | | effective date ] | 8| | | | 9| | | | 10|AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill | | and insert: | 11| | | | 12| "[ inspection of real property - technology - | | | 13| emergency ] | | | 14| | | | 15|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:| | | 16|SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is | | | 17|amended to read as follows: | | | 18| Section 2802. As used in Section 2801 et seq. of this title: | | | 19| 1. "Accepted standards for mass appraisal practice" means those | | | 20|standards for the collection and analysis of information about | | | 21|taxable properties within a taxing jurisdiction permitting the | | | 22|accurate estimate of fair cash value for similar properties in the | | | 23|jurisdiction either without direct observation of such similar | | | 24|properties or without direct sales price information for such | | | Page 1 ___________________________________________________________________________
1|similar properties using a reliable statistical or other method to |
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2|estimate the values of such 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, 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 |
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4| that is a loss in value due to ordinary wear and tear |
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5| and 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. "Inspection" means the inspection of real or personal |
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21|property by using on-ground site inspections or by using publicly |
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22|and commercially available aerial image overlays for purposes of |
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23|valuation, data collection, or any other purposes related to the |
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24|duties of county assessors; |
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1| 23. "List and assess" means the process by which taxable | | | 2|property is discovered, its description recorded for purposes of ad | | | 3|valorem taxation and its fair cash value and taxable fair cash value | | | 4|are established; | | | 5|23.24. "Mill" or "millage" means the rate of tax imposed upon | | | 6|taxable value. One (1) mill equals One Dollar ($1.00) of tax for | | | 7|each One Thousand Dollars ($1,000.00) of taxable value; | | | 8|24.25. "Multiple regression analysis" means a statistical | | | 9|technique for estimating unknown data on the basis of known and | | | 10|available data; | | | 11|25.26. "Parcel" means a contiguous area of land described in a | | | 12|single description by a deed or other instrument or as one of a | | | 13|number of lots on a plat or plan, separately owned and capable of | | | 14|being separately conveyed; | | | 15|26.27. "Sales comparison approach" means the collection, | | | 16|verification, and screening of sales data, stratification of sales | | | 17|information for purposes of comparison and use of such information | | | 18|to establish the fair cash value of taxable property; | | | 19|27.28. "State Board of Equalization" means the Board | | | 20|responsible for valuation of railroad, airline and public service | | | 21|corporation property and the adjustment and equalization of all | | | 22|property values both centrally and locally assessed; | | | 23|28.29. "Taxable value" means the percentage of the fair cash | | | 24|value of personal property or the taxable fair cash value of real | | | Page 6 ___________________________________________________________________________
1|property, less applicable exemptions, upon which an ad valorem tax | | | 2|rate is levied pursuant to the provisions of Section 8 and Section | | | 3|8B of Article X of the Oklahoma Constitution; | | | 4|29.30. "Taxable fair cash value" means the fair cash value of | | | 5|locally assessed real property as capped pursuant to Section 8B of | | | 6|Article X of the Oklahoma Constitution; | | | 7|30.31. "Use category" means a subcategory of real property, | | | 8|that is either agricultural use, residential use or | | | 9|commercial/industrial use but does not and shall not constitute a | | | 10|class of subjects within the meaning of the Oklahoma Constitution | | | 11|for purposes of ad valorem taxation; | | | 12|31.32. "Use value" means the basis for establishing fair cash | | | 13|value of real property pursuant to the requirement of Section 8 of | | | 14|Article X of the Oklahoma Constitution; and | | | 15|32.33. "Visual inspection program" means the program required | | | 16|in order to gather data about real property fromphysical| | | 17|examination of the property and improvements in order to establish | | | 18|the fair cash values of properties so inspected at least once each | | | 19|four (4) years and the fair cash values of similar properties on an | | | 20|annual basis. | | | 21| SECTION 2. AMENDATORY 68 O.S. 2021, Section 2821, is | | | 22|amended to read as follows: | | | 23| Section 2821. A. Each county assessor shall cause real | | | 24|property to bephysicallyinspected as part of the visual inspection | | | Page 7 ___________________________________________________________________________
1|cycle and shall require such examination as will provide adequate | | | 2|data from which to make accurate valuations. After an initial | | | 3|physical inspection of property, changes to property may be | | | 4|discovered with the use of digital aerial images taken by fixed-wing | | | 5|aircraft complying with Federal Aviation Administration regulations. | | | 6| B. The information gathered from thephysicalinspection shall | | | 7|be relevant to the type of property involved, its use category, the | | | 8|valuation methodology to be used for the property, whether the | | | 9|methodology consists of the cost approach, an income and expense | | | 10|approach or sales comparison approach, and shall be complete enough | | | 11|in order to establish the fair cash value of the property in | | | 12|accordance with accepted standards for mass appraisal practice. | | | 13| C. Information gathered during thephysicalinspection shall be | | | 14|recorded using a standard method as prescribed by the Oklahoma Tax | | | 15|Commission in computerized or noncomputerized form. The information | | | 16|may include property ownership, location, size, use, use category, a | | | 17|physical description of the land and improvements or such other | | | 18|information as may be required. | | | 19| D. In order to conduct the visual inspections of real property | | | 20|during the four-year cycle, each county assessor shall acquire and | | | 21|maintain cadastral maps and a parcel identification system. The | | | 22|standards for the cadastral maps and the parcel identification | | | 23|system shall be uniform for each county of the state and shall be in | | | 24|such form as developed by the Ad Valorem Task Force. | | | Page 8 ___________________________________________________________________________
1| E. The county assessor shall maintain a comprehensive sales |
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2|file for each parcel of real property within the county containing |
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3|relevant property characteristics, sales price information, |
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4|adjustments to sales price for purposes of cash equivalency, |
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5|transaction terms and such other information as may be required in |
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6|order to establish the fair cash value of taxable real property. |
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7| Each county assessor shall ensure that the office is equipped |
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8|with adequate drafting facilities, tools, equipment and supplies in |
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9|order to produce or update maps, sketches or drawings necessary to |
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10|support the proper administration of the ad valorem tax and such |
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11|other tools or equipment as may be required to perform duties |
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12|imposed by law for the discovery and valuation of taxable property. |
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13| SECTION 3. It being immediately necessary for the preservation |
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14|of the public peace, health or safety, an emergency is hereby |
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15|declared to exist, by reason whereof this act shall take effect and |
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16|be in full force from and after its passage and approval." |
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| Passed the House of Representatives the 24th day of April, 2023. |
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| Presiding Officer of the House of |
21| Representatives |
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| Passed the Senate the ____ day of __________, 2023. |
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