HB 4305: Revenue and taxation; real property; terms; method; fair cash value; credits; rates; audit; effective date. - Oklahoma

Floor (House) → Floor (Senate) · 5 edits

MODERATE

The bill was converted from the House version to the Senate floor version, which includes substantive amendments to the definitions of property types and valuation methods. The Senate version adds specific criteria for organizations to qualify for tax exemptions, clarifies the valuation process for properties under construction or in a lease-up phase, and mandates that organizations submit annual audits to the county assessor by May 1.

Scope change

The bill's scope was narrowed and clarified to apply only to real property owned by specific types of organizations that meet strict federal and state funding and usage requirements, such as those financed with low-income housing tax credits.

ELIGIBILITY

Added specific criteria requiring organizations to own property financed with federal low-income housing tax credits and subject to land use or regulatory agreements.

DEFINITION

Added precise definitions for 'Active construction' and 'Lease-up' to clarify which properties are subject to special valuation rules.

Modified the definition of 'Organization' to explicitly exclude properties that receive exempt treatment under other sections of the tax code.

REQUIREMENT

Added a requirement for qualifying organizations to deliver an annual financial audit to the county assessor by May 1.

Added a requirement for the county assessor to establish a formal process for determining market-derived capitalization rates based on project and investor data.

House Committee Substitute → Floor (House) · 3 edits

MINOR

The document was converted from a House Committee Substitute draft to the official House Floor version, primarily updating the header to reflect the 'Floor Version' and adding a note that bold text denotes amendments. The substantive legal text regarding tax credits, property definitions, and valuation methods remains unchanged.

Scope change

The scope and applicability of the bill remain unchanged; no new provisions were added or existing ones removed.

TECHNICAL

Updated the document header to indicate this is the 'Floor Version' of the bill rather than just the 'Committee Substitute'.

Added a note stating that 'BOLD FACE denotes Committee Amendments' to help readers identify changes made during the committee process.

Removed the original committee markup symbols (e.g., 1[...]1) and page headers that were used to track edits in the draft version.

Proposed Committee Substitute (full committee) 1 → House Committee Substitute · 4 edits

MODERATE

The bill was amended to replace the original committee substitute with a new version, primarily updating the document's internal tracking numbers and page references while retaining the core legislative text. The substantive policy content, including definitions, eligibility criteria for property valuation, and effective dates, remains unchanged from the previous version.

Scope change

No change in the scope or applicability of the bill; the amendment is technical in nature, focusing on document metadata.

TECHNICAL

Updated the internal document tracking numbers and page headers from 'Req. No. 16865' to 'Req. No. 17029' to reflect the new bill number.

Changed the document title from 'PROPOSED COMMITTEE SUBSTITUTE' to 'COMMITTEE SUBSTITUTE' to indicate the bill has passed the committee stage.

Adjusted the legislative session header to explicitly state '2nd Session of the 60th Legislature (2026)'.

Removed the original signature line and adoption date fields for the committee amendment.

Engrossed → Proposed Committee Substitute (full committee) 1 · 5 edits

MODERATE

The bill was amended to replace the entire text with a new version that clarifies the valuation method for specific real property, such as affordable housing. The changes ensure that county assessors use a 'restricted rent income approach' to determine fair cash value, explicitly prohibiting the inclusion of federal or state tax credits in the valuation. This update standardizes the process for calculating property taxes on properties with restricted rents and mandates a formal method for determining market-derived capitalization rates.

Scope change

The bill's scope remains focused on real property owned by organizations renting to low- or moderate-income individuals, but the amendment clarifies the specific valuation rules and the timeline for applying them.

DEFINITION

The definition of 'Audit' was updated to specify that it must be provided by a third-party certified public accountant or certified financial statements, ensuring a standardized professional review.

REQUIREMENT

The requirement for county assessors to determine a formal process for calculating market-derived capitalization rates was added to ensure consistent valuation across comparable properties.

The deadline for organizations to deliver annual audits to the county assessor was set to no later than May 1 of each year, with provisions for extensions.

ENFORCEMENT

The amendment explicitly prohibits county assessors from considering the value of federal or state low-income housing tax credits when determining fair cash value, preventing double-counting of tax benefits.

TIMELINE

The effective date of the act was set to January 1, 2027, providing a clear start date for the new valuation rules.

Introduced → Engrossed · 4 edits · Mar 24, 2026

MODERATE

The bill was updated from its 'Introduced' draft to its 'Engrossed' version, incorporating amendments from the Senate. The most significant substantive change is the addition of a new requirement for the property owner to provide an annual financial audit to the county assessor to verify net operating income. Additionally, the definition of 'Organization' was expanded to include properties financed through the federal low-income housing tax credit, and the definition of 'Lease-up' was added to clarify properties under 90% occupancy.

Scope change

The bill's scope was expanded to explicitly include properties financed via federal low-income housing tax credits and to cover properties currently in a 'lease-up' phase (under 90% occupancy) as part of the valuation method.

REQUIREMENT

Added a mandatory requirement for property owners to deliver an annual financial audit to the county assessor to support valuation calculations.

DEFINITION

Expanded the definition of 'Organization' to include properties financed in whole or in part through federal low-income housing tax credits.

Added a new definition for 'Lease-up' to specifically cover properties with less than 90% occupancy that are actively leasing units.

TECHNICAL

Updated the bill header and formatting to reflect its status as an 'Engrossed' bill, indicating it has passed both the House and Senate.

Revenue and taxation; real property; terms; method; fair cash value; credits; rates; audit; effective date.

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