State Tax Laws > Property Taxes > Summary > Oklahoma

For the complete text of Oklahoma statutes please refer to office of the Attorney General of Oklahoma. For additional property tax information please refer to the Oklahoma Tax Commission.

Property Classification:

Property is divided into the following five classes for Oklahoma property tax assessment purposes (Sec. 2803, Tit. 68, O.S. ):

(1) real property;

(2) tax-exempt household goods of heads of families and livestock employed in support of families;

(3) personal property other than tax-exempt household goods of heads of families and livestock employed in support of families;

(4) public service corporation property; and

(5) railroad and air carrier property.

Real property - includes both land and all associated rights and privileges that add value to the land . Generally, the term encompasses mines, minerals, quarries, and trees, as well as most buildings, structures, and improvements. Certain improvements (such as improvements on leased land that do not become a part of the realty, improvements on federal or state land, and improvements on land belonging to public service corporations) are treated for tax purposes as personal property. (Sec. 2806, Tit. 68, O.S. ).

Oklahoma property tax law makes no express provision for forests or open-space lands.

Valuation and Assessment:

All taxable real property is assessed annually at a specified percentage of its fair cash value as of January 1. (Sec. 2817, Tit. 68, O.S.)

Fair cash value - means the value or price at which a willing buyer would purchase property and a willing seller would sell property if both parties are knowledgeable about the property and its uses and if neither party is under any undue pressure to buy or sell and for real property shall mean the value for the highest and best use for which such property was actually used, or was previously classified for use, during the calendar year next preceding the applicable January 1 assessment date.

Managed Timberland

For purposes of the assessment of Oklahoma real property tax, managed timberland used for the cultivation of timber should be classified at its fair cash value for that use.

The guidelines relevant to agricultural land specify that unimproved land such as timberland can be classified as being used for (1) timber, (2) crops, or (3) native or (4) improved pasture. If the property falls into none of these categories it should be classified as waste because the primary emphasis in valuation is on the fair cash value based on the use being made of the land.

Severance or Yield Tax:

The state of Oklahoma does not have a severance or yield tax on timber or timber products.