§68-2817v2.

§68-2817v2.
   
   A. All taxable personal property, except intangible personal property,
   personal property exempt from ad valorem taxation, or household
   personal property, shall be listed and assessed each year at its fair
   cash value, estimated at the price it would bring at a fair voluntary
   sale, as of January 1.
   
   The fair cash value of household personal property shall be valued at
   ten percent (10%) of the appraised value of the improvement to the
   residential real property within which such personal property is
   located as of January 1 each year. The assessment of household
   personal property as provided by this section may be altered by the
   taxpayer listing such property at its actual fair cash value. For
   purposes of establishing the value of household personal property,
   pursuant to the requirement of Section 8 of Article X of the Oklahoma
   Constitution, the percentage of value prescribed by this section for
   the household personal property shall be presumed to constitute the
   fair cash value of the personal property.
   
   All unmanufactured farm products shall be assessed and valued as of
   the preceding May 31. Every person, firm, company, association, or
   corporation, in making the assessment, shall assess all unmanufactured
   farm products owned by the person, firm, company, association or
   corporation on the preceding May 31, at its fair cash value on that
   date instead of January 1.
   
   Stocks of goods, wares and merchandise shall be assessed at the value
   of the average amount on hand during the preceding year, or the
   average amount on hand during the part of the preceding year the stock
   of goods, wares or merchandise was at its January 1 location.
   
   B. All taxable real property shall be assessed annually as of January
   1, at its fair cash value, estimated at the price it would bring at a
   fair voluntary sale for:
   
   1. The highest and best use for which the property was actually used
   during the preceding calendar year; or
   
   2. The highest and best use for which the property was last classified
   for use if not actually used during the preceding calendar year.
   
   The Ad Valorem Division of the Oklahoma Tax Commission shall be
   responsible for the promulgation of rules which shall be followed by
   each county assessor of the state, for the purposes of providing for
   the equitable use valuation of locally assessed real property in this
   state. Agricultural land and nonresidential improvements necessary or
   convenient for agricultural purposes shall be assessed for ad valorem
   taxation based upon the highest and best use for which the property
   was actually used, or was previously classified for use, during the
   calendar year next preceding January 1 on which the assessment is
   made.
   
   C. The use value of agricultural land shall be based on the income
   capitalization approach using cash rent. The rental income shall be
   calculated using the direct capitalization method based upon factors
   including, but not limited to:
   
   1. Soil types, as depicted on soil maps published by the Soil
   Conservation Service of the United States Department of Agriculture;
   
   2. Soil productivity indices approved by the Ad Valorem Division of
   the Tax Commission;
   
   3. The specific agricultural purpose of the soil based on use
   categories approved by the Ad Valorem Division of the Tax Commission;
   and
   
   4. A capitalization rate to be determined annually by the Ad Valorem
   Division of the Tax Commission based on the sum of the average first
   mortgage interest rate charged by the Federal Land Bank for the
   immediately preceding five (5) years, weighted with the prevailing
   rate or rates for additional loans or equity, and the effective tax
   rate.
   
   The final use value will be calculated using the soil productivity
   indices and the agricultural use classification as defined by rules
   promulgated by the State Board of Equalization. This subsection shall
   not be construed in a manner which is inconsistent with the duties,
   powers and authority of the Board as to valuation of the counties as
   fixed and defined by Section 21 of Article X of the Oklahoma
   Constitution.
   
   D. The use value of nonresidential improvements on agricultural land
   shall be based on the cost approach to value estimation using
   currently updated cost manuals published by the Marshall and Swift
   Company or similar cost manuals approved by the Ad Valorem Division of
   the Tax Commission. The use value estimates for the nonresidential
   improvements shall take obsolescence and depreciation into
   consideration in addition to necessary adjustments for local
   variations in the cost of labor and materials. This section shall not
   be construed in a manner which is inconsistent with the duties, powers
   and authority of the Board as to equalization of valuation of the
   counties as determined and defined by Section 21 of Article X of the
   Oklahoma Constitution.
   
   The use value of facilities used for poultry production shall be
   determined according to the following procedures:
   
   1. The Ad Valorem Division of the Tax Commission is hereby directed to
   develop a standard system of valuation of both real and personal
   property of such facilities, which shall be used by all county
   assessors in this state, under which valuation based on the following
   shall be presumed to be the fair cash value of the property:
   
   a. for real property, a ten-year depreciation schedule, at the end of
   which the residual value is twenty percent (20%) of the value of the
   facility during its first year of operation, and
   
   b. for personal property, a five-year depreciation schedule, at the
   end of which the residual value is zero;
   
   2. Such facilities shall be valued only in comparison to other
   facilities used exclusively for poultry production. Such a facility
   which is no longer used for poultry production shall be deemed to have
   no productive use;
   
   3. During the first year such a facility is placed on the tax rolls,
   its fair cash value shall be presumed to be the lesser of the actual
   purchase price or the actual documented cost of construction; and
   
   4. For the purpose of determining the valuation of nonresidential
   improvements used for poultry production, the provisions of this
   subsection shall be applicable and such improvements shall not be
   considered to be commercial property.
   
   E. The transfer of real property without a change in its use
   classification shall not require a reassessment thereof based
   exclusively upon the sale value of the property. However, if the
   county assessor determines:
   
   1. That by reason of the transfer of a property there is a change in
   the actual use or classification of the property; or
   
   2. That by reason of the amount of the sales consideration it is
   obvious that the use classification prior to the transfer of the
   property is not commensurate with and would not justify the amount of
   the sales consideration of the property;
   
   then the assessor shall, in either event, reassess the property for
   the new use classification for which the property is being used, or,
   the highest and best use classification for which the property may, by
   reason of the transfer, be classified for use.
   
   F. When the term "fair cash value" or the language "fair cash value,
   estimated at the price it would bring at a fair voluntary sale" is
   used in the Ad Valorem Tax Code, in connection with and in relation to
   the assessment of real property, it is defined to mean and shall be
   given the meaning ascribed and assigned to it in this section and when
   the term or language is used in the Code in connection with the
   assessment of personal property it shall be given its ordinary or
   literal meaning.
   
   G. Where any real property is zoned for a use by a proper zoning
   authority, and is not being used for any higher or better use
   classification, the purpose for which the property is zoned shall be
   considered the highest and best use classification of the property for
   determining its value for assessment purposes; however, the zoning
   classification for assessment purposes shall only apply in the event
   that the rezoning occurs by reason of the application of the landowner
   or the agent of the landowner. Any reassessment required shall be
   effective January 1 following the change in use or classification and
   upon a transfer of ownership of the rezoned property. Taxable real
   property need not be listed annually with the county assessor.
   
   H. If any real property shall become taxable after January 1 of any
   year, the county assessor shall assess the same and place it upon the
   tax rolls for the next ensuing year. When any improvements or
   buildings having value are placed upon real estate after January 1 of
   any year, the value of the improvements shall be added by the county
   assessor to the assessed valuation for the next ensuing year; however,
   in case the improvements or buildings are new construction for single
   family residential purposes only, the improvements or buildings shall
   be deemed completed and to have a value for assessment purposes when
   the improvements or buildings shall have been conveyed to a bona fide
   purchaser or when they have been occupied, whichever shall first occur
   before January 1 of the initial assessment year. In the event that the
   single family residential improvements were not conveyed to a bona
   fide purchaser, occupied or completed within the year prior to January
   1 of the initial assessment year, the county assessor shall assess the
   improvements based on the fair market value of the materials used
   therein. The county assessor shall continue to assess the improvements
   or buildings based upon the fair market value of the materials used
   therein until the single family residential improvements are conveyed
   to a bona fide purchaser or occupied. In case the improvements, other
   than buildings, are made in anticipation of residential or commercial
   development and the property is not conveyed or leased within the year
   prior to January 1 of the year that the improvements would initially
   be assessed, fair cash value of the property shall be deemed to be the
   lesser of the fair cash value of the property with the improvements or
   the fair cash value of the property immediately prior to the
   improvements being made. The county assessor shall continue to assess
   the property based upon such fair cash value until the property is
   leased or conveyed.
   
   I. In case improvements on land or personal property located therein
   or thereon are destroyed by fire, lightning, storm, winds,
   floodwaters, overflow of streams or other cause, or the value of land
   is impaired, damaged or destroyed by fire, lightning, storm, winds,
   floodwaters, overflow of streams or other cause, after January 1 and
   before the adjournment of the county board of equalization during any
   year, the county board of equalization, in cooperation with the county
   assessor, shall determine the amount of damage, and shall make an
   order directing the assessment of the property for that year at the
   fair cash value of the property, as defined herein, taking into
   account the damage occasioned by fire, lightning, storm, winds,
   floodwaters, overflow of streams or other causes.