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68-2817.


68-2817.
   
   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 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 the use of the property has not been changed, the use
   and not zoning shall determine assessment. Any reassessment required
   shall be effective January 1 following the change in use. 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 building is constructed
   upon land after January 1 of any year, the value of the building shall
   be added by the county assessor to the assessed valuation of the land
   upon which the building is constructed at the fair cash value thereof
   for the next ensuing year. However, the building shall be deemed to
   have a value for assessment purposes of the fair cash value of the
   materials used in such building only, until the building and the land
   on which the building is located shall have been conveyed to a bona
   fide purchaser or shall have been occupied or used for any purpose
   other than as a sales office by the owner thereof, or shall have been
   leased, whichever event shall first occur. The county assessor shall
   continue to assess the building based upon the fair market value of
   the materials used therein until the building and land upon which the
   building is located shall have been conveyed to a bona fide purchaser
   or is occupied or used for any purpose other than as a sales office by
   the owner thereof, or is leased, whichever event shall first occur.
   However, the fair cash value of a lot in any platted addition or a
   subdivision in a city, town or county zoned for residential,
   commercial, industrial or other use shall be deemed to be the total
   purchase price paid by the developer of the addition or subdivision
   for the land comprising the platted addition or subdivision divided by
   the number of lots contained in the addition or subdivision until the
   lot with building or buildings located thereon shall have been
   conveyed to a bona fide purchaser or shall have been occupied other
   than as a sales office by the owner thereof, or shall have been
   leased, whichever event shall first occur. The cost of any land or
   improvements to any real property required to be dedicated to public
   use, including, but not limited to, streets, curbs, gutters,
   sidewalks, storm or sanitary sewers, utilities, detention or retention
   ponds, easements, parks or reserves shall not be utilized by the
   county assessor in the valuation of any real property for assessment
   purposes.
   
   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 cause.
   

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