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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1855 By: Sacchieri
AS INTRODUCED
An Act relating to county assessors; amending 68 O.S.
2021, Sections 2802, 2820, 2821, 2822, and 2829,
which relate to the Ad Valorem Tax Code; modifying
definition; modifying length of cycle for visual
inspection program; prescribing period of initial
modified cycle; making language gender neutral;
updating statutory language; updating statutory
references; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is
amended to read as follows:
Section 2802. As used in Section 2801 et seq. of this title:
1. “Accepted standards for mass appraisal practice” means those
standards for the collection and analysis of information about
taxable properties within a taxing jurisdiction permitting the
accurate estimate of fair cash value for similar properties in the
jurisdiction either without direct observation of such similar
properties or without direct sales price information for such
similar properties using a reliable statistical or other method to
estimate the values of such properties;
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2. “Additional homestead exemption” means the exemption
provided by Section 2890 of this title;
3. “Assessor” means the county assessor and, unless the context
clearly requires otherwise, deputy assessors and persons employed by
the county assessor in performance of duties imposed by law;
4. “Assess and value” means to establish the fair cash value
and taxable fair cash value of taxable real and personal property
pursuant to requirements of law;
5. “Assessed valuation” or “assessed value” means the
percentage of the fair cash value of personal property, or the
percentage of the taxable fair cash value of real property, pursuant
to the provisions of Sections 8 and 8B of Article X of the Oklahoma
Constitution, either of individual items of personal property,
parcels of real property or the aggregate total of such individual
taxable items or parcels within a jurisdiction;
6. “Assessment percentage” means the percentage applied to
personal property and real property pursuant to Section 8 of Article
X of the Oklahoma Constitution;
7. “Assessment ratio” means the relationship between assessed
value and taxable fair cash value for a county or for use categories
within a county expressed as a percentage determined in the annual
equalization ratio study;
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8. “Assessment roll” means a computerized or noncomputerized
record required by law to be kept by the county assessor and
containing information about property within a taxing jurisdiction;
9. “Assessment year” means the year beginning January 1 of each
calendar year and ending on December 31 preceding the following
January 1 assessment date;
10. “Circuit breaker” means the form of property tax relief
provided by Sections 2904 through 2911 of this title;
11. “Class of subjects” means a category of property
specifically designated pursuant to provisions of the Oklahoma
Constitution for purposes of ad valorem taxation;
12. “Code” means the Ad Valorem Tax Code, Section 2801 et seq.
of this title;
13. “Coefficient of dispersion” means a statistical measure of
assessment uniformity for a category of property or for all property
within a taxing jurisdiction;
14. “Confidence level” means a statistical procedure for
determining the degree of reliability for use in reporting the
assessment ratio for a taxing jurisdiction;
15. “Cost approach” means a method used to establish the fair
cash value of property involving an estimate of current construction
cost of improvements, subtracting accrued depreciation including any
loss in value that may be caused by physical deterioration,
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functional obsolescence or economic obsolescence and adding the
value of the land.
a. Physical deterioration is a cause of depreciation that
is a loss in value due to ordinary wear and tear and
the forces of nature.
b. Functional or internal obsolescence is the loss in
value of a property resulting from changes in tastes,
preferences, technical innovations or market
standards.
c. Economic or external obsolescence is a cause of
depreciation that is a loss in value as a result of
impairment in utility and desirability caused by
factors outside the boundaries of the property or loss
of value in a property (relative, relative to the cost
of replacing it with a property of equal utility),
utility that stems from factors external to the
property;
16. “County board of equalization” means the board which, upon
hearing competent evidence, has the authority to correct and adjust
the assessment rolls in its respective county to conform to fair
cash value and such other responsibilities as prescribed in Section
2801 et seq. of this title;
17. “Equalization” means the process for making adjustments to
taxable property values within a county by analyzing the
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relationships between assessed values and fair cash values in one or
more use categories within the county or between counties by
analyzing the relationship between assessed value and fair cash
value in each county;
18. “Equalization ratio study” means the analysis of the
relationships between assessed values and fair cash values in the
manner provided by law;
19. “Fair cash value” or “market value” means the value or
price at which a willing buyer would purchase property and a willing
seller would sell property if both parties are knowledgeable about
the property and its uses and if neither party is under any undue
pressure to buy or sell and for real property shall mean the value
for the highest and best use for which such property was actually
used, or was previously classified for use, during the calendar year
next preceding the applicable January 1 assessment date;
20. “Homestead exemption” means the reduction in the taxable
value of a homestead as authorized by law;
21. “Income and expense approach” means a method to estimate
fair cash value of a property by determining the present value of
the projected income stream;
22. “List and assess” means the process by which taxable
property is discovered, its description recorded for purposes of ad
valorem taxation and its fair cash value and taxable fair cash value
are established;
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23. “Mill” or “millage” means the rate of tax imposed upon
taxable value. One (1) mill equals One Dollar ($1.00) of tax for
each One Thousand Dollars ($1,000.00) of taxable value;
24. “Multiple regression analysis” means a statistical
technique for estimating unknown data on the basis of known and
available data;
25. “Parcel” means a contiguous area of land described in a
single description by a deed or other instrument or as one of a
number of lots on a plat or plan, separately owned and capable of
being separately conveyed;
26. “Sales comparison approach” means the collection,
verification, and screening of sales data, stratification of sales
information for purposes of comparison and use of such information
to establish the fair cash value of taxable property;
27. “State Board of Equalization” means the Board responsible
for valuation of railroad, airline and public service corporation
property and the adjustment and equalization of all property values
both centrally and locally assessed;
28. “Taxable value” means the percentage of the fair cash value
of personal property or the taxable fair cash value of real
property, less applicable exemptions, upon which an ad valorem tax
rate is levied pursuant to the provisions of Section 8 and Section
8B of Article X of the Oklahoma Constitution;
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29. “Taxable fair cash value” means the fair cash value of
locally assessed real property as capped pursuant to Section 8B of
Article X of the Oklahoma Constitution;
30. “Use category” means a subcategory of real property, that
is either agricultural use, residential use or commercial/industrial
use but does not and shall not constitute a class of subjects within
the meaning of the Oklahoma Constitution for purposes of ad valorem
taxation;
31. “Use value” means the basis for establishing fair cash
value of real property pursuant to the requirement of Section 8 of
Article X of the Oklahoma Constitution; and
32. “Visual inspection program” means the program required in
order to gather data about real property from physical examination
of the property and improvements in order to establish the fair cash
values of properties so inspected at least once each four (4) five
(5) years and the fair cash values of similar properties on an
annual basis.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2820, is
amended to read as follows:
Section 2820. A. Each county assessor shall conduct a
comprehensive program for the individual visual inspection of all
taxable property within his or her respective county. Each assessor
shall thereafter maintain an active and systematic program of visual
inspection on a continuous basis and shall establish an inspection
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schedule which will result in the individual visual inspection of
all taxable property within the county at least once each four (4)
five (5) years.
B. The first cycle of visual inspections for property shall
begin upon January 1, 1991 January 1, 2027, as prescribed by Section
2481.1 of Title 68 of the Oklahoma Statutes, and shall end upon
December 31, 1994 December 31, 2031. Thereafter, each succeeding
four-year five-year cycle for visual inspections shall begin upon
January 1 of the year following the fourth fifth year of the
preceding cycle and shall end upon December 31 of the applicable
four-year five-year cycle. The county assessor shall utilize the
standard parcel identification system required by law to assign each
parcel of real property a unique identification code or number. The
code or number shall be used to ensure that the inspection sequence
for real property results in a visual inspection of each parcel at
least once each four (4) five (5) years. Each successor of the
county assessor shall use the same cycle as used by the assessor’s
predecessor in office for visual inspections of property.
C. Prior to the beginning of the first visual inspection cycle
and each subsequent visual inspection cycle, the county assessor
shall develop a plan that details the number of real property
parcels to be inspected in each year of the cycle by use category,
geographic area or other basis, the resources and budget proposed to
complete the inspections and the valuation methodology to be used in
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determining the fair cash value of the real property and
improvements thereon. The plan shall be adequate to ensure the
visual inspection of all parcels of real property within the county
at least once each four (4) five (5) years. The plan shall also be
adequate to ensure that the information collected from the visual
inspection of real property each year is sufficient to establish a
representative sample from each use category in order to conduct the
proper valuation of all taxable property within each use category by
means of an accepted standard for mass appraisal practice. The
county assessor shall submit the proposed plan to the Oklahoma Tax
Commission by the first working day in October preceding the
beginning of the four-year five-year cycle. The Oklahoma Tax
Commission shall either approve the plan if the plan and resources
are adequate to complete the cycle and if the plan will result in a
representative sample from each use category in order to value all
taxable property each year or shall correct and modify the plan in
order to establish a program for visual inspection that will be
completed by the end of the cycle and that will provide a
representative sample from each use category in order to value all
taxable property each year. An approved plan shall be made for each
county as of the beginning date of each cycle and a copy of such
plan shall be filed with the Oklahoma Tax Commission.
D. Each year the county assessor shall submit a progress report
to the Oklahoma Tax Commission indicating the number of real
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property parcels inspected by use category, geographic area or other
basis, the resources and budget expended in the last completed
fiscal year and the valuation methodology used to determine fair
cash values of the real property and improvements. The Oklahoma Tax
Commission shall correct and modify any visual inspection plan
during the four-year five-year cycle if progress reports indicate
that inspection of real property parcels will not be completed or
will be performed in violation of legal requirements for such
inspections. The county assessor shall be required to complete the
four-year five-year cycle in accordance with such plan as corrected
and modified.
E. Each county assessor shall prepare and submit to the
Oklahoma Tax Commission a detailed report of the progress made in
the visual inspection program in his or her county to the date of
the report and it shall be made a matter of public record. Such
report shall be submitted upon forms supplied by the Oklahoma Tax
Commission and shall consist of such information as the Oklahoma Tax
Commission requires. The progress report shall be submitted not
later than October 15 each year or the first working day thereafter.
Based in part on all such county progress reports, the Oklahoma Tax
Commission shall prepare its own report from all sources and
transmit a copy of its own report to the Legislature and the State
Board of Equalization.
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SECTION 3. AMENDATORY 68 O.S. 2021, Section 2821, is
amended to read as follows:
Section 2821. A. Each county assessor shall cause real
property to be physically inspected as part of the visual inspection
cycle and shall require such examination as will provide adequate
data from which to make accurate valuations.
B. The information gathered from the physical inspection shall
be relevant to the type of property involved, its use category, the
valuation methodology to be used for the property, whether the
methodology consists of the cost approach, an income and expense
approach or sales comparison approach, and shall be complete enough
in order to establish the fair cash value of the property in
accordance with accepted standards for mass appraisal practice.
C. Information gathered during the physical inspection shall be
recorded using a standard method as prescribed by the Oklahoma Tax
Commission in computerized or noncomputerized form. The information
may include property ownership, location, size, use, use category, a
physical description of the land and improvements or such other
information as may be required.
D. In order to conduct the visual inspections of real property
during the four-year five-year cycle, each county assessor shall
acquire and maintain cadastral maps and a parcel identification
system. The standards for the cadastral maps and the parcel
identification system shall be uniform for each county of the state
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and shall be in such form as developed by the Ad Valorem Task Force
Division of the Oklahoma Tax Commission.
E. The county assessor shall maintain a comprehensive sales
file for each parcel of real property within the county containing
relevant property characteristics, sales price information,
adjustments to sales price for purposes of cash equivalency,
transaction terms and such other information as may be required in
order to establish the fair cash value of taxable real property.
Each county assessor shall ensure that the office is equipped with
adequate drafting facilities, tools, equipment and supplies in order
to produce or update maps, sketches or drawings necessary to support
the proper administration of the ad valorem tax and such other tools
or equipment as may be required to perform duties imposed by law for
the discovery and valuation of taxable property.
SECTION 4. AMENDATORY 68 O.S. 2021, Section 2822, is
amended to read as follows:
Section 2822. A. Each county assessor in budgets submitted to
the county excise board or county budget board shall make adequate
provision to effect countywide visual inspections of real property
during the four-year five-year cycle.
B. Each jurisdiction within a county which receives revenue
from an ad valorem mill rate shall receive a copy of the budget for
the countywide visual inspection program for that county. The
county excise board or county budget board shall notify all such
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jurisdictions of any meetings at which discussion or action on the
budget for the comprehensive program of visual inspections is or may
be on the agenda. Such jurisdictions shall have the opportunity to
appear before the county excise board or the county budget board,
prior to approval of such budgets, to provide testimony, comments,
information, and documentation concerning the budgets submitted by
the county assessor pursuant to subsection A of this section.
C. The several county excise and budget boards, in passing upon
budgets submitted by the several assessors, shall authorize and levy
amounts which will suffice to carry out the countywide visual
inspection program as approved by the Oklahoma Tax Commission under
Section 2820 of this title. Such amounts shall be separate from
other funds allocated to the office of county assessor and shall be
used exclusively to carry out the countywide visual inspection
program. The allocation of such amounts shall not serve to decrease
other funds allocated to the office of county assessor by the county
excise board or the county budget board. Any disputes as to the
amount authorized to carry out the countywide visual inspection
program shall be resolved by the county excise board; provided, the
Oklahoma Tax Commission shall take such action as may be necessary
to ensure that such amounts are used exclusively to carry out the
countywide visual inspection program and that the allocation of such
amounts does not serve to decrease other funds allocated to the
office of county assessor.
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SECTION 5. AMENDATORY 68 O.S. 2021, Section 2829, is
amended to read as follows:
Section 2829. A. Each county assessor, in order to comply with
the provisions of Section 17 2817 of this act title requiring the
annual valuation of all taxable real and personal property within
the county, shall establish the fair cash value of such taxable
property using an accepted mass appraisal methodology.
B. For purposes of this section “accepted mass appraisal
methodology” shall mean the process for making estimates of fair
cash value for a property about which no direct or timely
information is available concerning economic value by using known
information about the property characteristics, location, use, size,
sales price and other information of similar properties. Such mass
appraisal methodology may include multiple regression analysis or
other statistical techniques for mass appraisal. If information of
similar properties is not available in the taxing jurisdiction, the
county assessor may use other applicable regional or national
information to annually determine the fair cash value of a property
estimated at the price it would bring at a fair voluntary sale as
provided in Section 17 2817 of this act title.
C. Each county assessor shall utilize the information gathered
from the visual inspection of real property conducted during each
year of the four-year five-year cycle for such inspections and shall
conduct such statistical calculations using the data so acquired
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together with sales price or other information available as may be
required to make accurate estimates of fair cash values for all
taxable real or personal property within the county each year. The
results of such calculations shall be recorded on the assessment
roll of the county on an annual basis in order to reflect any
increase or decrease in the fair cash value of any property in any
year.
D. The statistical analysis required by this section shall be
performed within each county using such computer facilities as may
be available, but shall be conducted in accordance with procedures
established for the uniform mass appraisal program established by
the Oklahoma Tax Commission.
SECTION 6. This act shall become effective January 1, 2027.
60-2-2476 QD 1/15/2026 12:35:39 AM