Read the full stored bill text
HB3178 HFLR Page 1
BOLD FACE denotes Committee Amendments.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3178 By: Archer and Grego of the
House
and
Howard of the Senate
AS INTRODUCED
An Act relating to revenue and taxation; creating
depreciation schedule for farm equipment and farm
tractors for purposes of ad valorem taxation;
defining terms; requiring the fair cash value to
depreciate by certain percentage each year;
prescribing amount of depreciation; providing
presumption of fair cash value; requiring the
Oklahoma Tax Commission to promulgate rules and forms
as may be necessary; providing for codification; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2817.4 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. As used in this act:
HB3178 HFLR Page 2
BOLD FACE denotes Committee Amendments.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1. "Farm equipment" means any farm tractor, utility task
vehicle (UTV), or vehicle that does not meet the definition in
Section 2809 of this title so long as it is used in agricultural
production on a farm or ranch that is owned, leased, or operated by
the owner of such equipment. This definition shall also include any
other personal property as defined by Section 2807 of this title so
long as it is used in agricultural production on a farm or ranch
that is owned, leased, or operated by the owner of such equipment;
and
2. "Farm tractor" means farm tractors as defined by Section
2809 of this title.
B. For purposes of determining the fair cash value of farm
equipment and farm tractors for ad valorem taxation, the county
assessor shall apply the following depreciation schedule:
1. The fair cash value of farm equipment and farm tractors
shall be determined as of January 1 of each year by applying a
deprecation factor of twenty-five percent (25%) per tax year to the
original cost of the farm equipment or farm tractor, beginning with
the first tax year in which the farm equipment and farm tractor is
subject to ad valorem taxation;
2. The depreciated fair cash value of farm equipment and farm
tractors shall be calculated by multiplying the original cost of the
farm equipment or farm tractor by the cumulative depreciation factor
of the applicable year of the schedule, as follows:
HB3178 HFLR Page 3
BOLD FACE denotes Committee Amendments.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. for the first tax year, seventy-five percent (75%) of
the original cost,
b. for the second tax year, fifty percent (50%) of the
original cost,
c. for the third tax year, twenty-five percent (25%) of
the original cost, and
d. for the fourth tax year and all subsequent tax years,
zero percent (0%) of the original cost;
3. The amount determined pursuant to this subsection shall be
presumed to be the fair cash value of farm equipment and farm
tractors for purposes of ad valorem taxation unless expressly
authorized by the Oklahoma Constitution or Oklahoma Statutes.
C. The Oklahoma Tax Commission shall promulgate rules and forms
as may be necessary to implement and administer the provisions of
this act.
SECTION 2. This act shall become effective January 1, 2027.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
03/04/2026 - DO PASS, As Coauthored.