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§ 955. Limitations on ownership--Exceptions

Oklahoma Statutes AnnotatedTitle 18. Corporations

Oklahoma Statutes Annotated
Title 18. Corporations (Refs & Annos)
Chapter 21. Farming or Ranching Business Corporations (Refs & Annos)
18 Okl.St.Ann. § 955
§ 955. Limitations on ownership--Exceptions
Currentness
A. No person, corporation, association or any other entity shall engage in farming or ranching, or own or lease any interest in land to be used in the business of farming or ranching, except the following:
1. Natural persons and the estates of such persons;
2. Trustees of trusts; provided that:
a. each beneficiary shall be a person or entity enumerated in paragraphs 1 through 5 of this subsection, and
b. there shall not be more than ten beneficiaries unless the beneficiaries in excess of ten are related as lineal descendants or are or have been related by marriage or adoption to lineal descendants, and
c. at least sixty-five percent (65%) of the trust's annual gross receipts shall be derived from farming or ranching, or from allowing others to extract minerals underlying lands held by the trust. If the trust cannot comply with the annual gross receipts test, the trust may furnish records of its gross receipts for each of the previous five (5) years, or for each year that it has been in existence if less than five (5) years, and the average of such annual gross receipts may be used for purposes of complying with this section;
3. Corporations, as provided for in Sections 951 through 954 of this title, or as otherwise permitted by law;
4. Partnerships and limited partnerships; provided that:
a. each partner shall be a person or entity enumerated in paragraphs 1 through 5 of this subsection, and
b. there shall not be more than ten partners unless said partners in excess of ten are related as lineal descendants or are or have been related by marriage or adoption to lineal descendants, and
c. at least sixty-five percent (65%) of the partnership's annual gross receipts shall be derived from farming or ranching, or from allowing others to extract minerals underlying lands held by the partnership. If the partnership cannot comply with the annual gross receipts test, the partnership may furnish records of its gross receipts for each of the previous five (5) years, or for each year that it has been in existence if less than five (5) years, and the average of such annual gross receipts may be used for purposes of complying with this section;
5. Limited liability companies formed pursuant to the Oklahoma Limited Liability Company Act;1 provided that:
a. each member shall be a person or entity enumerated in paragraphs 1 through 5 of this subsection, and
b. there shall not be more than thirty members unless said members in excess of thirty are related as lineal descendants or are or have been related by marriage or adoption to lineal descendants, and
c. at least sixty-five percent (65%) of the limited liability company's annual gross receipts shall be derived from farming or ranching, or from allowing others to extract minerals underlying lands held by the limited liability company. If the limited liability company cannot comply with the annual gross receipts test, the limited liability company may furnish records of its gross receipts for each of the previous five (5) years, or for each year that it has been in existence if less than five (5) years, and the average of such annual gross receipts may be used for purposes of complying with this section.
B. Any farming or ranching corporation, trust, partnership, limited partnership, limited liability company or other entity which violates any provisions of this section shall be fined an amount not to exceed Five Hundred Dollars ($500.00). Any other person or entity who knowingly violates this section shall be deemed guilty of a misdemeanor.
C. The provisions of this act2 shall not apply to interests in land acquired prior to June 1, 1978.

Credits

Laws 1978, c. 169, § 1, emerg. eff. April 10, 1978; Laws 1993, c. 366, § 1, eff. Sept. 1, 1993; Laws 1994, c. 2, § 6, emerg. eff. March 2, 1994; Laws 2001, c. 208, § 6, emerg. eff. May 14, 2001.

Footnotes

1
Title 18, § 2000 et seq.
2
Title 18, § 951 et seq.
18 Okl. St. Ann. § 955, OK ST T. 18 § 955
Current with legislation of the First Regular Session of the 59th Legislature (2023) and the First Extraordinary Session of the 59th Legislature (2023). Some sections may be more current, see credits for details.
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