Bill > HB3178

This bill establishes a new depreciation schedule for farm equipment and farm tractors to determine their fair cash value for ad valorem taxation, which is a tax based on the assessed value of property. "Farm equipment" is broadly defined to include tractors, utility task vehicles (UTVs), and other personal property used in agricultural production on a farm or ranch, while "farm tractor" refers to tractors as defined in existing law. Under this new schedule, the fair cash value of this equipment will decrease by 25% each year from its original cost. Specifically, in the first year, it will be valued at 75% of the original cost, 50% in the second year, 25% in the third year, and will have zero value for tax purposes from the fourth year onward. This calculated depreciated value is presumed to be the fair cash value unless otherwise allowed by law. The Oklahoma Tax Commission is tasked with creating the necessary rules and forms to implement this new system, which will take effect on January 1, 2027.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb3178&Session=2600