Oklahoma § 68-1001.1 - Property exempt from ad valorem taxation - Rules and

§ 68-1001.1. Property exempt from ad valorem taxation - Rules and

regulations for determination.

The Oklahoma Tax Commission shall adopt rules and regulations

which establish guidelines for the determination of property exempt

from ad valorem taxation pursuant to the provisions of subsections G

and H of Section 1001 of this title. Said guidelines shall include,

but are not limited to, the following:

1. "Producing leases" means wells or leases or production units

which have had production during any of the previous three (3)

calendar years which is subject to the gross production tax levied

by Section 1001 of this title and which have not been abandoned or

required to be plugged as required by law on or before January 1 of

the year for which the assessment or valuation is made;

2. "Payment of gross production tax" means payment of the tax

levied by Section 1001 of this title on production during any of the

three (3) calendar years immediately prior to January 1 of the year

for which the assessment or valuation is made; and

3. Property exempt from ad valorem tax pursuant to the

provisions of subsections G and H of Section 1001 of this title

shall include, but is not limited to, lease production tanks, lease

production meters, and disposal systems, including all materials and

equipment of disposal systems and the lines transporting the waste

materials, serving one or more wells, which are not for commercial

purposes. Provided, the exemption shall include the wellbore and

non-recoverable down-hole material, including casing, actually used

in the commercial disposal of waste materials produced with such oil

or gas. Such exempt property shall remain exempt as long as the

property is essential to the production of oil and gas in commercial

quantities. The county assessor shall be notified when such

property becomes nonexempt.

Added by Laws 1985, c. 345, § 16, emerg. eff. July 30, 1985.

Amended by Laws 1991, c. 342, § 11, emerg. eff. June 15, 1991.

Renumbered from § 1101.1 of this title by Laws 1991, c. 342, § 27,

emerg. eff. June 15, 1991. Amended by Laws 1994, c. 311, § 2, eff.

July 1, 1994; Laws 1998, c. 106, § 1, eff. Nov. 1, 1998; Laws 2013,

c. 401, § 2, eff. Nov. 1, 2013; Laws 2019, c. 168, § 1, eff. Nov. 1,

2019.