{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2817","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2817","heading":"Valuation and assessment of property - Fair cash value -","body":"Use value\n\nA. All taxable personal property, except intangible personal\n\nproperty, personal property exempt from ad valorem taxation, or\n\nhousehold personal property, shall be listed and assessed each year\n\nat its fair cash value, estimated at the price it would bring at a\n\nfair voluntary sale, as of January 1.\n\nThe fair cash value of household personal property shall be\n\nvalued at ten percent (10%) of the appraised value of the\n\nimprovement to the residential real property within which such\n\npersonal property is located as of January 1 each year. The\n\nassessment of household personal property as provided by this\n\nsection may be altered by the taxpayer listing such property at its\n\nactual fair cash value. For purposes of establishing the value of\n\nhousehold personal property, pursuant to the requirement of Section\n\n8 of Article X of the Oklahoma Constitution, the percentage of value\n\nprescribed by this section for the household personal property shall\n\nbe presumed to constitute the fair cash value of the personal\n\nproperty.\n\nStocks of goods, wares, and merchandise shall be assessed at the\n\nvalue of the average amount on hand during the preceding year, or\n\nthe average amount on hand during the part of the preceding year the\n\nstock of goods, wares, or merchandise was at its January 1 location.\n\nProvided, persons primarily engaged in selling lumber and other\n\nbuilding materials including cement and concrete, except for home\n\ncenters classified under Industry No. 444110 of the North American\n\nIndustrial Classification Systems (NAICS) Manual, shall be assessed\n\nat the average value of the inventory on hand as of January 1 of\n\neach year and the value of the inventory on hand as of December 31\n\nof the same year.\n\nB. All taxable real property shall be assessed annually as of\n\nJanuary 1, at its fair cash value, estimated at the price it would\n\nbring at a fair voluntary sale for:\n\n1. The highest and best use for which the property was actually\n\nused during the preceding calendar year; or\n\n2. The highest and best use for which the property was last\n\nclassified for use if not actually used during the preceding\n\ncalendar year.\n\nWhen improvements upon residential real property are divided by\n\na taxing jurisdiction line, those improvements shall be valued and\n\nassessed in the taxing jurisdiction in which the physical majority\n\nof those improvements are located.\n\nThe Ad Valorem Division of the Oklahoma Tax Commission shall be\n\nresponsible for the promulgation of rules which shall be followed by\n\neach county assessor of the state, for the purposes of providing for\n\nthe equitable use valuation of locally assessed real property in\n\nthis state. Agricultural land and nonresidential improvements\n\nnecessary or convenient for agricultural purposes shall be assessed\n\nfor ad valorem taxation based upon the highest and best use for\n\nwhich the property was actually used, or was previously classified\n\nfor use, during the calendar year next preceding January 1 on which\n\nthe assessment is made.\n\nC. The use value of agricultural land shall be based on the\n\nincome capitalization approach using cash rent. The rental income\n\nshall be calculated using the direct capitalization method based\n\nupon factors including, but not limited to:\n\n1. Soil types, as depicted on soil maps published by the\n\nNatural Resources Conservation Service of the United States\n\nDepartment of Agriculture;\n\n2. Soil productivity indices approved by the Ad Valorem\n\nDivision of the Tax Commission;\n\n3. The specific agricultural purpose of the soil based on use\n\ncategories approved by the Ad Valorem Division of the Tax\n\nCommission; and\n\n4. A capitalization rate to be determined annually by the Ad\n\nValorem Division of the Tax Commission based on the sum of the\n\naverage first mortgage interest rate charged by the Federal Land\ny indices approved by the Ad Valorem\n\nDivision of the Tax Commission;\n\n3. The specific agricultural purpose of the soil based on use\n\ncategories approved by the Ad Valorem Division of the Tax\n\nCommission; and\n\n4. A capitalization rate to be determined annually by the Ad\n\nValorem Division of the Tax Commission based on the sum of the\n\naverage first mortgage interest rate charged by the Federal Land\n\nBank for the immediately preceding five (5) years, weighted with the\n\nprevailing rate or rates for additional loans or equity, and the\n\neffective tax rate.\n\nThe final use value will be calculated using the soil\n\nproductivity indices and the agricultural use classification as\n\ndefined by rules promulgated by the State Board of Equalization.\n\nThis subsection shall not be construed in a manner which is\n\ninconsistent with the duties, powers, and authority of the Board as\n\nto valuation of the counties as fixed and defined by Section 21 of\n\nArticle X of the Oklahoma Constitution.\n\nHowever, in calculating the use value of buffer strips as\n\ndefined in Section 2817.2 of this title, exclusive consideration\n\nshall be based only on income from production agriculture from such\n\nbuffer strips, not including federal or state subsidies, when valued\n\nas required by subsection C of Section 2817.2 of this title.\n\nD. The use value of nonresidential improvements on agricultural\n\nland shall be based on the cost approach to value estimation using\n\ncurrently updated cost manuals published by the Marshall and Swift\n\nCompany or similar cost manuals approved by the Ad Valorem Division\n\nof the Tax Commission. The use value estimates for the\n\nnonresidential improvements shall take obsolescence and depreciation\n\ninto consideration in addition to necessary adjustments for local\n\nvariations in the cost of labor and materials. This section shall\n\nnot be construed in a manner which is inconsistent with the duties,\n\npowers, and authority of the Board as to equalization of valuation\n\nof the counties as determined and defined by Section 21 of Article X\n\nof the Oklahoma Constitution.\n\nThe use value of facilities used for poultry production shall be\n\ndetermined according to the following procedures:\n\n1. The Ad Valorem Division of the Tax Commission is hereby\n\ndirected to develop a standard system of valuation of both real and\n\npersonal property of such facilities, which shall be used by all\n\ncounty assessors in this state, under which valuation based on the\n\nfollowing shall be presumed to be the fair cash value of the\n\nproperty:\n\na. for real property, a ten-year depreciation schedule,\n\nat the end of which the residual value is twenty\n\npercent (20%) of the value of the facility during its\n\nfirst year of operation, and\n\nb. for personal property, a five-year depreciation\n\nschedule, at the end of which the residual value is\n\nzero;\n\n2. Such facilities shall be valued only in comparison to other\n\nfacilities used exclusively for poultry production. Such a facility\n\nwhich is no longer used for poultry production shall be deemed to\n\nhave no productive use;\n\n3. During the first year such a facility is placed on the tax\n\nrolls, its fair cash value shall be presumed to be the lesser of the\n\nactual purchase price or the actual documented cost of construction;\n\nand\n\n4. For the purpose of determining the valuation of\n\nnonresidential improvements used for poultry production, the\n\nprovisions of this subsection shall be applicable and such\n\nimprovements shall not be considered to be commercial property.\n\nE. The value of investment in property used exclusively by an\n\noil refinery that is used wholly as a facility, device, or method\n\nfor the desulphurization of gasoline or diesel fuel as defined in\n\nSection 2817.3 of this title shall not be included in the\n\ncapitalization used in the determination of fair market value of\n\nsuch oil refinery if such property would qualify as exempt property\nproperty.\n\nE. The value of investment in property used exclusively by an\n\noil refinery that is used wholly as a facility, device, or method\n\nfor the desulphurization of gasoline or diesel fuel as defined in\n\nSection 2817.3 of this title shall not be included in the\n\ncapitalization used in the determination of fair market value of\n\nsuch oil refinery if such property would qualify as exempt property\n\npursuant to Section 2902 of this title, whether or not an\n\napplication for such exemption is made by an otherwise qualifying\n\nmanufacturing concern owning the property described by Section\n\n2817.3 of this title.\n\nF. The use value of a lot in any platted addition or a\n\nsubdivision in a city, town, or county zoned for residential,\n\ncommercial, industrial, or other use shall be deemed to be the fair\n\ncash value of the underlying tract of land platted, divided by the\n\nnumber of lots contained in the platted addition or subdivision\n\nuntil the lot shall have been conveyed to a bona fide purchaser or\n\nthe lot with building or buildings located thereon shall have been\n\noccupied other than as a sales office by the owner thereof, or shall\n\nhave been leased, whichever event shall first occur. One who\n\npurchases a lot for the purposes of constructing and selling a\n\nbuilding on such lot shall not be deemed to be a bona fide purchaser\n\nfor purposes of this section. However, if the lot is held for a\n\nperiod longer than two (2) years before construction, then the\n\nassessor may consider the lot to have been conveyed to a bona fide\n\npurchaser. The cost of any land or improvements to any real\n\nproperty required to be dedicated to public use including, but not\n\nlimited to, streets, curbs, gutters, sidewalks, storm or sanitary\n\nsewers, utilities, detention or retention ponds, easements, parks,\n\nor reserves shall not be utilized by the county assessor in the\n\nvaluation of any real property for assessment purposes.\n\nG. The transfer of real property without a change in its use\n\nclassification shall not require a reassessment thereof based\n\nexclusively upon the sale value of the property. However, if the\n\ncounty assessor determines:\n\n1. That by reason of the transfer of a property there is a\n\nchange in the actual use or classification of the property; or\n\n2. That by reason of the amount of the sales consideration it\n\nis obvious that the use classification prior to the transfer of the\n\nproperty is not commensurate with and would not justify the amount\n\nof the sales consideration of the property;\n\nthen the assessor shall, in either event, reassess the property for\n\nthe new use classification for which the property is being used, or,\n\nthe highest and best use classification for which the property may,\n\nby reason of the transfer, be classified for use.\n\nH. When the term \"fair cash value\" or the language \"fair cash\n\nvalue, estimated at the price it would bring at a fair voluntary\n\nsale\" is used in the Ad Valorem Tax Code, in connection with and in\n\nrelation to the assessment of real property, it is defined to mean\n\nand shall be given the meaning ascribed and assigned to it in this\n\nsection and when the term or language is used in the Code in\n\nconnection with the assessment of personal property it shall be\n\ngiven its ordinary or literal meaning.\n\nI. Where any real property is zoned for a use by a proper\n\nzoning authority, and the use of the property has not been changed,\n\nthe use and not zoning shall determine assessment. Any reassessment\n\nrequired shall be effective January 1 following the change in use.\n\nTaxable real property need not be listed annually with the county\n\nassessor.\n\nJ. If any real property shall become taxable after January 1 of\n\nany year, the county assessor shall assess the same and place it\n\nupon the tax rolls for the next ensuing year. When any building is\n\nconstructed upon land after January 1 of any year, the value of the\nll be effective January 1 following the change in use.\n\nTaxable real property need not be listed annually with the county\n\nassessor.\n\nJ. If any real property shall become taxable after January 1 of\n\nany year, the county assessor shall assess the same and place it\n\nupon the tax rolls for the next ensuing year. When any building is\n\nconstructed upon land after January 1 of any year, the value of the\n\nbuilding shall be added by the county assessor to the assessed\n\nvaluation of the land upon which the building is constructed at the\n\nfair cash value thereof for the next ensuing year. However, after\n\nthe building has been completed it shall be deemed to have a value\n\nfor assessment purposes of the fair cash value of the materials used\n\nin such building only, until the building and the land on which the\n\nbuilding is located shall have been conveyed to a bona fide\n\npurchaser or shall have been occupied or used for any purpose other\n\nthan as a sales office by the owner thereof, or shall have been\n\nleased, whichever event shall first occur. The county assessor\n\nshall continue to assess the building based upon the fair market\n\nvalue of the materials used therein until the building and land upon\n\nwhich the building is located shall have been conveyed to a bona\n\nfide purchaser or is occupied or used for any purpose other than as\n\na sales office by the owner thereof, or is leased, whichever event\n\nshall first occur.\n\nK. In the event improvements on land or personal property\n\nlocated therein or thereon are destroyed or partially destroyed, or\n\nthe land itself is impaired or partially impaired by fire,\n\nlightning, storm, winds, floodwaters, overflow of streams, or other\n\ncause (all such destruction or impairments being referred to herein\n\nas \"damage\") during any year, the county assessor shall determine\n\nthe amount of damage and shall reassess the property for that year\n\nat the fair cash value of the property, taking into account the\n\nactual loss of functional use of the property occasioned by such\n\ndamage. The assessor shall make the appropriate value adjustments\n\nto the property for that tax year up to the time at which the\n\nassessor publishes the \"Assessor's Report to the Excise Board\" as\n\nrequired by subsection D of Section 2867 of this title. After such\n\ntime, adjustments can be made only by the county board of tax roll\n\ncorrections and only after the assessor has certified the tax roll\n\nfor that year. The board secretary shall notify property owners in\n\nadvance of the time and place at which the value adjustment to their\n\nproperty will be heard by the board. The board of tax roll\n\ncorrections is authorized only to approve or reject the value\n\nadjustment submitted by the county assessor.\n\nL. All taxable personal property used in the exploration of\n\noil, natural gas, or other minerals including drilling equipment and\n\nrigs, shall be assessed annually at the value set forth in the first\n\nHadco International monthly bulletin published for the tax year,\n\nusing the appropriate depth rating assigned to the drawworks by its\n\nmanufacturer and the actual condition of the rig.\n\nM. The value of taxable tangible personal property used in\n\ncommercial disposal systems of waste materials from the production\n\nof oil and gas shall not include any contract rights or leases for\n\nthe use of such systems nor any value associated with the wellbore\n\nor non-recoverable down-hole material including casing.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"f8732cb75c362d24784f58e3c0777ab3678d124e5643d4e056fb8233acf32745","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2816","next":"us-ok/okla.-stat.-tit.-68-68-2817.1"},"notice":"GroundRules: Original legal text. Not legal advice."}