Bill > SB1098

This bill amends Oklahoma's Ad Valorem Tax Code by introducing a new definition for "residential rental housing" and modifying how such properties are assessed for tax purposes. Specifically, the bill defines residential rental housing as any single tax parcel containing multifamily housing buildings or two or more single-family homes constructed for rental purposes. The legislation creates a new property classification for residential rental housing and establishes a unique assessment procedure for such properties. Under the new provisions, when residential rental housing is first completed, it will be initially assessed at no more than the fair cash value of the land plus the actual documented cost of improvements. This initial assessment will remain in place for one year or until the property is sold to a bona fide purchaser, whichever occurs first. The bill aims to provide a more flexible and potentially more favorable initial tax assessment method for residential rental housing developments, potentially encouraging new housing construction by reducing the immediate tax burden on such properties. The changes will take effect on November 1, 2025, giving local tax authorities time to prepare for the new assessment approach.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1098&Session=2600