Oklahoma § 18-955 - Limitations on ownership - Exceptions

§ 18-955. Limitations on ownership - Exceptions

A. No person, corporation, association or any other entity

shall engage in farming or ranching, or own or lease any interest in

land to be used in the business of farming or ranching, except the

following:

1. Natural persons and the estates of such persons;

2. Trustees of trusts; provided that:

Oklahoma Statutes - Title 18. Corporations

a.

each beneficiary shall be a person or entity

enumerated in paragraphs 1 through 5 of this

subsection, and

b.

there shall not be more than ten beneficiaries unless

the beneficiaries in excess of ten are related as

lineal descendants or are or have been related by

marriage or adoption to lineal descendants, and

c.

at least sixty-five percent (65%) of the trust's

annual gross receipts shall be derived from farming or

ranching, or from allowing others to extract minerals

underlying lands held by the trust. If the trust

cannot comply with the annual gross receipts test, the

trust may furnish records of its gross receipts for

each of the previous five (5) years, or for each year

that it has been in existence if less than five (5)

years, and the average of such annual gross receipts

may be used for purposes of complying with this

section;

3. Corporations, as provided for in Sections 951 through 954 of

this title, or as otherwise permitted by law;

4. Partnerships and limited partnerships; provided that:

a.

each partner shall be a person or entity enumerated in

paragraphs 1 through 5 of this subsection, and

b.

there shall not be more than ten partners unless said

partners in excess of ten are related as lineal

descendants or are or have been related by marriage or

adoption to lineal descendants, and

c.

at least sixty-five percent (65%) of the partnership's

annual gross receipts shall be derived from farming or

ranching, or from allowing others to extract minerals

underlying lands held by the partnership. If the

partnership cannot comply with the annual gross

receipts test, the partnership may furnish records of

its gross receipts for each of the previous five (5)

years, or for each year that it has been in existence

if less than five (5) years, and the average of such

annual gross receipts may be used for purposes of

complying with this section;

5. Limited liability companies formed pursuant to the Oklahoma

Limited Liability Company Act; provided that:

a.

each member shall be a person or entity enumerated in

paragraphs 1 through 5 of this subsection, and

b.

there shall not be more than thirty members unless

said members in excess of thirty are related as lineal

descendants or are or have been related by marriage or

adoption to lineal descendants, and

Oklahoma Statutes - Title 18. Corporations

c.

at least sixty-five percent (65%) of the limited

liability company's annual gross receipts shall be

derived from farming or ranching, or from allowing

others to extract minerals underlying lands held by

the limited liability company. If the limited

liability company cannot comply with the annual gross

receipts test, the limited liability company may

furnish records of its gross receipts for each of the

previous five (5) years, or for each year that it has

been in existence if less than five (5) years, and the

average of such annual gross receipts may be used for

purposes of complying with this section.

B. Any farming or ranching corporation, trust, partnership,

limited partnership, limited liability company or other entity which

violates any provisions of this section shall be fined an amount not

to exceed Five Hundred Dollars ($500.00). Any other person or

entity who knowingly violates this section shall be deemed guilty of

a misdemeanor.

C. The provisions of this act shall not apply to interests in

land acquired prior to June 1, 1978.

Added by Laws 1978, c. 169, § 1, emerg. eff. April 10, 1978.

Amended by Laws 1993, c. 366, § 1, eff. Sept. 1, 1993; Laws 1994, c.

2, § 6, emerg. eff. March 2, 1994; Laws 2001, c. 208, § 6, emerg.

eff. May 14, 2001.

NOTE: Laws 1993, c. 37, § 1 repealed by Laws 1994, c. 2, § 34,

emerg. eff. March 2, 1994.