Oklahoma § 68-2802.1 - Implementation of Oklahoma Constitution Article X,

§ 68-2802.1. Implementation of Oklahoma Constitution Article X,

Section 8B - Definitions - Promulgation of rules.

A. For purposes of implementing Section 8B of Article X of the

Oklahoma Constitution:

1. "Any person" means any person or entity, whether real or

artificial, other than the present owner;

2. "Any year when title to the property is transferred,

changed, or conveyed to another person or when improvements have

Oklahoma Statutes - Title 68. Revenue and Taxation

been made to the property" means the year next preceding the January

1 assessment date;

3. "Improvement" means a valuable addition made to property

amounting to more than normal repairs, replacement, maintenance or

upkeep, but for purposes of Section 8B of Article X of the Oklahoma

Constitution shall not mean any expenditure, whether or not pursuant

to a policy of insurance, for the purpose of repairing damage to a

residential or business structure caused by rain, strong winds,

tornadic winds, hail, fire or any other natural disaster or other

event causing damage and any such improvements made shall be

disregarded for purposes of determining the maximum amount of fair

cash value subject to ad valorem taxation pursuant to Section 8B of

Article X of the Oklahoma Constitution unless the improvements

increase the square footage in which case only additional square

footage may be considered an "improvement". If improvements

constitute an increase in square footage, the county assessor shall

determine the fair cash value of the additional square footage and

shall separately determine the maximum fair cash value subject to ad

valorem taxation for the square footage which is not part of the

additional square footage amount and only in the amount authorized

by Section 8B of Article X of the Oklahoma Constitution. Except

with respect to the additional square footage, such improvements

shall not allow any county assessor to increase the fair cash value

of the applicable property by more than the percentage allowed by

Section 8B of Article X of the Oklahoma Constitution for property

upon which no improvements have been made; and

4. "Transfers, change or conveyance of title" means all types

of transfers, changes or conveyances of any interest, whether legal

or equitable. However, "transfers, change or conveyance of title"

shall not include the following:

a.

deeds recorded prior to January 1, 1996,

b.

deeds which secure a debt or other obligation,

c.

deeds which, without additional consideration,

confirm, correct, modify or supplement a deed

previously recorded,

d.

deeds between husband and wife, or parent and child,

or any persons related within the second degree of

consanguinity, without actual consideration therefor,

or deeds between any person and an express revocable

trust created by such person or such person's spouse,

e.

deeds of release of property which is security for a

debt or other obligation,

f.

deeds of partition, unless, for consideration, some of

the parties take shares greater in value than their

undivided interests,

g.

deeds made pursuant to mergers of partnerships,

limited liability companies or corporations, or deeds

Oklahoma Statutes - Title 68. Revenue and Taxation

pursuant to which property is transferred from a

person to a partnership, limited liability company or

corporation of which the transferor or the

transferor's spouse, parent, child, or other person

related within the second degree of consanguinity to

the transferor, or trust for primary benefit of such

persons, are the only owners of the partnership,

limited liability company or corporation,

h.

deeds made by a subsidiary corporation to its parent

corporation for no consideration other than the

cancellation or surrender of the subsidiary's stock,

or

i.

any deed executed pursuant to a foreclosure proceeding

in which the grantee is the holder of a mortgage on

the property being foreclosed, or any deed executed

pursuant to a power of sale in which the grantee is

the party exercising such power of sale or any deed

executed in favor of the holder of a mortgage on the

property in consideration for the release of the

borrower from liability on the indebtedness secured by

such mortgage except as to cash consideration paid.

B. This section shall be applied effective from the date of the

passage of Section 8B of Article X of the Oklahoma Constitution.

C. The Oklahoma Tax Commission shall promulgate rules necessary

to implement Section 8B of Article X of the Oklahoma Constitution

and this section.

Added by Laws 1997, c. 304, § 3, emerg. eff. May 29, 1997. Amended

by Laws 2002, c. 476, § 3, emerg. eff. June 6, 2002; Laws 2014, c.

388, § 1, emerg. eff. June 3, 2014.