Revenue and taxation; in lieu taxation; farm tractors; machinery; equipment; apportionment; repealer; effective date.

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STATE OF OKLAHOMA

2nd Session of the 60th Legislature (2026)

HOUSE BILL 3433 By: Wilk

AS INTRODUCED

An Act relating to revenue and taxation; providing
for in lieu tax treatment of farm tractors and other
personal property used in agricultural production;
providing for apportionment; amending 68 O.S. 2021,
Section 2805, which relates to in lieu taxation;
modifying provisions; repealing 68 O.S. 2021, Section
2809, which relates to farm tractor taxation;
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 2809.1A of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. In lieu of the ad valorem tax that would otherwise be
imposed on farm tractors and other heavy equipment used in
agricultural production, there is hereby levied an lieu tax of
Fifteen Dollars ($15.00) per year.
B. The in lieu tax required by this section shall be paid to
the county treasurer at the same time and in the same manner as ad
valorem personal property tax is paid.

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C. The revenue from the in lieu tax shall be apportioned in the
same way that the ad valorem tax that would otherwise be levied upon
the property would be apportioned.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2805, is
amended to read as follows:
Section 2805. The following fees or taxes levied by the
provisions of the Oklahoma Statutes shall be in lieu of ad valorem
tax, whether in lieu of real property tax, personal property tax, or
both as provided by law:
1. The registration fees and taxes imposed upon aircraft by
Section 251 et seq. of Title 3 of the Oklahoma Statutes;
2. Registration fees for motor vehicles as provided in Section
1103 of Title 47 of the Oklahoma Statutes, except as otherwise
specifically provided;
3. The fee imposed upon transfers of used vehicles in lieu of
the ad valorem tax upon inventories of used motor vehicles by
Section 1137.1 of Title 47 of the Oklahoma Statutes;
4. The registration and license fees imposed upon vessels and
motors pursuant to the Oklahoma Vessel and Motor Registration Act,
Section 4001 et seq. of Title 63 of the Oklahoma Statutes;
5. The taxes levied upon the gross production of substances
pursuant to Section 1001 of this title;
6. The taxes levied upon the gross production of substances
pursuant to Section 1020 of this title;

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7. The tax imposed upon gross receipts pursuant to Section 1803
of this title;
8. The tax imposed upon certain textile products pursuant to
Section 2001 of this title;
9. The tax imposed upon certain freight cars pursuant to
Section 2202 of this title;
10. The tax imposed on certain parts of the inventories, both
new and used items, owned and/or possessed for sale by retailers of
farm tractors and other equipment pursuant to Sections 1 5401
through 4 5404 of this act title;
11. The tax imposed upon inventories of new vehicles and
certain vessels pursuant to Section 5301 of this title; and
12. The in lieu tax on farm tractors and other machinery and
equipment used in agricultural production as required by Section 1
of this act; and
13. Such other fees or taxes as may be expressly provided by
law to be in lieu of ad valorem taxation.
SECTION 3. REPEALER 68 O.S. 2021, Section 2809, is
hereby repealed.
SECTION 4. This act shall become effective November 1, 2026.

60-2-15901 MAH 01/13/26