OK HB3178

Creates a mandatory depreciation schedule for farm equipment and farm tractors for ad valorem (property tax) purposes, requiring county assessors to apply 25% annual depreciation starting from the first tax year

Farm equipment depreciates to 75% of original cost in year one, 50% in year two, 25% in year three, and 0% in year four and beyond, effectively eliminating property tax on farm equipment after three years

Defines "farm equipment" broadly to include farm tractors, utility task vehicles (UTVs), and other personal property used in agricultural production on farms or ranches owned, leased, or operated by the equipment owner

Requires the Oklahoma Tax Commission to promulgate rules and forms to implement the new depreciation schedule

Effective date is January 1, 2027; passed the Committee on Appropriations and Budget on March 4, 2026