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An Act
ENROLLED SENATE
BILL NO. 1122 By: Rader of the Senate
and
Caldwell (Trey) of the
House
An Act relating to ad valorem tax; amending 68 O.S.
2021, Sections 2808 and 2847, which relate to
definitions and assessments of railroad, air carrier,
and public service corporation property; defining
term; requiring the State Board of Equalization to
assess certain property at a certain ratio; updating
statutory language; and providing an effective date.
SUBJECT: Ad valorem tax
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2808, is
amended to read as follows:
Section 2808. A. As used in the Ad Valorem Tax Code:
1. “Public service corporation” means all transportation
companies, transmission companies, all gas, electric, light, heat,
and power companies, and all waterworks and water power companies,
and all persons authorized to exercise the right of eminent domain
or to use or occupy any right-of-way, street, alley, or public
highway, along, over, or under the same in a manner not permitted to
the general public;
2. “Transportation company” means any company, corporation,
trustee, receiver, or any other person owning, leasing, or operating
for hire, a street railway, canal, steamboat line, and also any
sleeping car company, parlor car company, and express company, and
any other company, trustee, or person in any way engaged in such
ENR. S. B. NO. 1122 Page 2
business as a common carrier. As used in the Ad Valorem Tax Code,
the term “transportation company” transportation company shall not
include any railroad or any air carrier. However, all railroad and
air carrier property shall continue to be valued and assessed by the
State Board of Equalization for purposes of ad valorem taxation;
3. “Transmission company” means any company, corporation,
trustee, receiver, or other person owning, leasing, or operating for
hire any telegraph or telephone line or radio broadcasting system;
4. “Person” means individuals, partnerships, associations, and
corporations in the singular as well as plural number;
5. “Video services provider” means a subclass of public service
corporations consisting of any public service corporation offering
video programming services;
6. “Video programming” shall have the same meaning as set forth
in 47 U.S.C., Section 522(20); and
7. “Fixed wireless broadband Internet service provider” means
an entity that solely offers access to the Internet through a
stationary fixed point-to-point connection often requiring direct
line of sight between the provider’s wireless transmitter and its
end-user consumer’s receiver; and
8. “Broadband service providers” means a subclass of public
service corporations consisting of any company, corporation,
trustee, receiver, or other person offering broadband-based services
including fixed or mobile Internet access, Voice over Internet
Protocol, or Internet protocol television, to end-user consumers.
B. As used in the Ad Valorem Tax Code, “transmission company”
transmission company and “public service corporation” public service
corporation shall not be construed to include cable television
companies or fixed wireless broadband Internet service providers.
C. Any real or personal property used by any company,
corporation, trustee, receiver, or other person owning, leasing, or
operating for hire any pipeline or oil or gas gathering system which
was assessed by the State Board of Equalization after January 1,
ENR. S. B. NO. 1122 Page 3
1997, shall continue to be assessed by the State Board of
Equalization through ad valorem tax year 1998.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2847, is
amended to read as follows:
Section 2847. A. The property of all railroads, air carriers,
and public service corporations shall be assessed annually by the
State Board of Equalization at its fair cash value estimated at the
price it would bring at a fair voluntary sale.
B. Taxable values of real and personal property of all
railroads, air carriers, and public service corporations shall be
established in accordance with the requirements of Section 8 of
Article X of the Oklahoma Constitution. The State Board of
Equalization shall determine the taxable value of all taxable
property that the Board is required by law to assess and value, and
shall determine such taxable value in accordance with the
requirements of Section 8 of Article X of the Oklahoma Constitution.
C. The State Board of Equalization shall assess the property of
that subclass of public service corporations known as video services
providers, as defined in Section 2808 of this title, as provided:
1. Every video services provider shall file with the State
Board of Equalization a certification regarding total gross receipts
for the immediate preceding calendar year by April 15 and shall
specify the total gross receipts derived from video programming
services;
2. The State Board of Equalization shall determine the
percentage of gross receipts the video services provider has derived
from video programming in the immediately preceding calendar year;
and
3. The percentage determined pursuant to paragraph 2 of this
subsection shall be applied to the taxable fair cash value allocated
to Oklahoma this state, and the resulting fair cash value
attributable to video programming services shall be assessed using
the statewide average of the assessment ratios applied to the assets
of cable television companies in that tax year. Unless the taxpayer
or the State Board of Equalization demonstrates otherwise, the
ENR. S. B. NO. 1122 Page 4
statewide average assessment ratio applied to the personal property
of a cable television company shall be assumed to be twelve percent
(12%).
D. The Except as provided for in subsection E of this section,
the percentage of fair cash value for real and personal property of
railroads, air carriers, and public service corporations required by
the Oklahoma Constitution to be taxable shall be the percentage at
which it was assessed on January 1, 1996, in accordance with the
provisions of paragraph 3 of subsection A of Section 8 of Article X
of the Oklahoma Constitution, and, subject to the requirements of
federal law, shall be uniformly applied to calculate the taxable
values of public service corporation property within the state for
the applicable assessment year.
E. The State Board of Equalization shall assess the property of
that subclass of public service corporations known as broadband
service providers, as defined in Section 2808 of this title, at
fifteen (15%) of its fair cash value.
SECTION 3. This act shall become effective January 1, 2027.
ENR. S. B. NO. 1122 Page 5
Passed the Senate the 5th day of March, 2026.
Presiding Officer of the Senate
Passed the House of Representatives the 21st day of April, 2026.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________