§18-955. Limitations on ownership - Exceptions.
682 words·~3 min read·
/ok/title-18-corporations/18-955·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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
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
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; 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 act shall not apply to interests in land acquired prior to June 1, 1978. Added by Laws 1978, c. 169, § 1, emerg. eff. April 10, 1978. Amended by 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. NOTE: Laws 1993, c. 37, § 1 repealed by Laws 1994, c. 2, § 34, emerg. eff. March 2, 1994.