SB694 Summary

• Establishes a new valuation method procedure (Section 2902.5) requiring the Oklahoma Tax Commission, county assessor, and qualifying manufacturing concerns to mutually agree on a valuation method for exempt property, including depreciation schedules, effective January 1, 2016.

• If parties cannot reach mutual agreement on valuation methods by the exemption start date, the Tax Commission has authority to select a binding valuation method consistent with the Ad Valorem Tax Code.

• Creates an evidentiary presumption that the agreed-upon or Tax Commission-selected valuation method produces the correct fair cash value, which can only be overcome by clear and convincing evidence in county board of equalization or district court proceedings.

• Applies the valuation method agreement to fair cash value determinations after the exemption period expires, allowing taxpayers to protest significant increases using the presumption standard in appeals.

• Effective date is January 1, 2016, and applies to all qualifying manufacturing concerns becoming eligible for exemptions on or after that date.