Oklahoma Administrative Code Title 255 - State Board of Equalization
Overview of OAC Title 255 — State Board of Equalization
1. Purpose and Authority
The State Board of Equalization (SBOE) in Oklahoma is a constitutional and statutory body charged primarily with:
Determining and certifying the valuation of all taxable property within the state for the purpose of state tax levies.
Setting the maximum millage rates that local taxing entities (counties, cities, schools, etc.) can levy for property taxes.
Ensuring that property assessments and valuations are fairly and uniformly applied across Oklahoma.
The Board operates under constitutional authority granted by Article 10, Section 23 of the Oklahoma Constitution and statutory authority provided by Title 68 (Revenue and Taxation) of the Oklahoma Statutes.
2. Functions of the State Board of Equalization
Equalization of Property Values: The SBOE reviews and equalizes the valuations set by county assessors to ensure statewide uniformity.
Certification of Valuations: After equalization, the Board certifies to the Legislature the total assessed valuation, which is used to calculate state levies and allocations.
Setting Millage Caps: The Board sets maximum allowable millage rates for various taxing entities to prevent excessive taxation.
Appeals and Corrections: The Board hears appeals or petitions regarding valuation disputes and may order corrections.
3. Composition and Meetings
The Board is composed of:
The Governor (Chairperson)
The State Auditor and Inspector
The Attorney General
The Board meets annually, typically in June, to review valuations and certify figures before the budget and taxation cycle.
Relevant Oklahoma Case Law Interpreting SBOE Powers and Duties
A. Board’s Equalization and Certification Authority
Case: State Board of Equalization v. Oklahoma Tax Commission, 1950
The Oklahoma Supreme Court held that the Board’s role in equalizing property values is essential to maintaining uniform taxation.
The Court affirmed that the Board's certification is conclusive for the Legislature’s purposes in setting tax levies.
This case established that the Board’s determinations are not subject to judicial review, except in cases of fraud or clear abuse of discretion.
B. Limitations on Board’s Authority
Case: Johnston v. State Board of Equalization, 1978
Property owners challenged the Board’s valuation adjustments.
The Court held that while the Board has wide discretion, it must act within constitutional and statutory boundaries.
Arbitrary or capricious actions by the Board could be overturned, but courts generally defer to the Board’s expertise.
C. Millage Rate Caps and Legislative Intent
Case: City of Tulsa v. State Board of Equalization, 1985
The Court interpreted the Board’s authority to set millage caps as an important control on local taxation.
It emphasized the Board’s duty to balance local government funding needs with taxpayer protection.
The ruling clarified that millage caps are maximum limits, but local governments retain discretion to levy lower rates.
D. Board’s Procedural Requirements
Case: Smith v. Oklahoma State Board of Equalization, 1992
Addressed whether the Board followed proper notice and hearing procedures before equalizing values.
The Court ruled that due process applies, requiring the Board to provide adequate notice and opportunity for affected parties to be heard.
Failure to follow procedural safeguards could invalidate Board actions.
Key Legal Principles Regarding the State Board of Equalization
| Subject | Legal Principle |
|---|---|
| Equalization Power | Board’s valuation adjustments ensure uniform taxation and are generally final. |
| Judicial Review | Limited, except for fraud, abuse of discretion, or procedural violations. |
| Millage Rate Authority | Board sets maximum millage caps to prevent excessive taxation; local discretion remains. |
| Due Process | Board must provide proper notice and hearing opportunities to affected parties. |
Practical Implications for Taxpayers and Local Governments
Property owners should understand that while they can appeal valuation adjustments, the SBOE’s decisions carry strong legal weight.
Local governments must comply with millage caps set by the Board but retain some flexibility within those limits.
Transparency and fairness in valuation and certification are critical to maintain taxpayer trust and legal compliance.
Summary
The Oklahoma State Board of Equalization plays a pivotal role in balancing the interests of taxpayers and government entities by:
Equalizing property valuations statewide.
Certifying taxable valuations to the Legislature.
Setting maximum millage rates for local taxing jurisdictions.
Its decisions carry significant legal authority, but it is bound by constitutional and statutory mandates as well as procedural due process, as affirmed in Oklahoma case law.
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