OklahomaAssessors must use cost-based tax values for covered rental developments
For assessments beginning January 1, 2027, county assessors must value covered rental developments using construction costs minus lost value, plus land value, for a limited period.
What it does
Starting in 2027, covered rental housing must receive cost-based tax values for its first two tax years after construction, ending sooner upon sale to an unrelated genuine buyer. Coverage requires at least 20 rental units or homes on one tax parcel and excludes developments allocated or receiving federal low-income housing tax credits.
Argument forRequiring one method could make early property tax assessments more consistent for owners of covered rental developments.
Argument againstUsing only construction costs and lost value could overlook a rental property's earning power when assessors set its early tax values.
More detail
County assessors must estimate current construction costs, subtract losses in value, and add land value to set the property's value for tax purposes. Coverage includes developments or redevelopments on one property tax parcel with at least 20 rental units built and used for multifamily housing or at least 20 housing structures built for rental. The property must be placed on the tax rolls. Developments allocated or receiving federal low-income housing tax credits are excluded. The rule ends sooner if the property is sold to an unrelated buyer making a genuine purchase. The law takes effect November 1, 2026. The valuation rule applies to annual assessments on or after January 1, 2027, for the first two tax years after construction is completed.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 12Approved by Governor Kevin Stitt 05/11/2026Became Law
- May 6Sent to GovernorTo Governor
- May 6Signed, returned to Senate
- May 6Enrolled, to House
- May 5Referred for enrollment
- Vote recorded Third Reading. Result: pass.Lower
- May 5Signed, returned to Senate
- May 5Third Reading, Measure passed: Ayes: 82 Nays: 5Major
- May 5General Order
- Apr 23Coauthored by Representative(s) Schreiber
- Apr 23CR; Do Pass Appropriations and Budget CommitteeMinor
- Apr 21
- Vote recorded Appropriations And Budget Committee: Do Pass. Result: pass.Lower
- Apr 13Recommendation to the full committee; Do Pass Appropriations and Budget Finance SubcommitteeMinor
- Apr 8
- Vote recorded Appropriations And Budget Finance Subcommittee: Do Pass. Result: pass.Lower
- Apr 2Referred to Appropriations and Budget Finance SubcommitteeMinor
- Mar 31Second Reading referred to Appropriations and BudgetMinor
- Mar 30First ReadingMinor
- Mar 30Engrossed to HousePassed House
- Mar 26Referred for engrossment
- Vote recorded Third Reading. Result: pass.Upper
- Mar 26Measure passed: Ayes: 31 Nays: 11Passed Senate
- Mar 26Title restored
- Mar 26General Order, Amended
- Feb 26Placed on General Order
- Feb 25Coauthored by Representative Kannady (principal House author)
- Feb 24Title stricken
- Vote recorded Do Pass Amended Cs. Result: pass.Upper
- Feb 24Reported Do Pass, amended by committee substitute Economic Development, Workforce and Tourism committee; CR filedMinor
- Feb 3Referred to Economic Development, Workforce and TourismMinor
- Feb 3Withdrawn from Revenue and Taxation committee
- Feb 3Second Reading referred to Revenue and TaxationMinor
- Feb 2Authored by Senator Thompson
- Feb 2First ReadingIntroduced
HousingTaxes & Budget