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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1387 By: Jech
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6 AS INTRODUCED
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7 An Act relating to motor vehicles; amending 68 O.S.
7 2021, Sections 1355 and 1404, as amended by Sections
8 1 and 2, Chapter 370, O.S.L. 2023 (68 O.S. Supp.
8 2025, Sections 1355 and 1404), which relate to sales
9 and use tax exemption; expanding exemption for
9 vehicles to include vehicles sold within a certain
10 period for purposes of calculating tax on vehicle
10 purchase; updating statutory language; and providing
11 an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, as
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16 amended by Section 1, Chapter 370, O.S.L. 2023 (68 O.S. Supp. 2025,
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17 Section 1355), is amended to read as follows:
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18 Section 1355. There are hereby specifically exempted from the
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19 tax levied pursuant to the provisions of Section 1350 et seq. of
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20 this title:
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21 1. Sale of gasoline, motor fuel, methanol, "M-85" which is a
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22 mixture of methanol and gasoline containing at least eighty-five
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23 percent (85%) methanol, compressed natural gas, liquefied natural
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24 gas, or liquefied petroleum gas on which the Motor Fuel Tax motor
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1 fuel tax, Gasoline Excise Tax gasoline excise tax, Special Fuels Tax
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2 special fuels tax, or the fee in lieu of Special Fuels Tax special
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3 fuels tax levied in Section 500.1 et seq., Section 601 et seq. or
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4 Section 701 et seq. of this title has been, or will be paid;
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5 2. For the sale of motor vehicles or any optional equipment or
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6 accessories attached to motor vehicles on which the Oklahoma Motor
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7 Vehicle Excise Tax motor vehicle excise tax levied in Section 2101
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8 et seq. of this title has been, or will be paid, all but a portion
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9 of the levy provided under Section 1354 of this title, equal to one
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10 and twenty-five-hundredths twenty-five one-hundredths percent
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11 (1.25%) of the gross receipts of such sales. For the purposes of
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12 this paragraph, if the sale of a motor vehicle includes a trade-in,
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13 gross receipts shall be calculated based only on the difference
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14 between the value of the trade-in vehicle and the actual sales price
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15 of the vehicle being purchased. For the purposes of this paragraph,
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16 if an individual liable for tax pursuant to this paragraph has sold
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17 a vehicle within six (6) months prior to or after the date of the
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18 transfer of title on the vehicle being purchased, gross receipts
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19 shall be calculated based only on the difference between the value
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20 of the vehicle sold and the actual sales price of the vehicle being
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21 purchased. If an individual sells a vehicle within six (6) months
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22 after the date of the transfer of title on a vehicle purchased and
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23 has paid the tax pursuant to this paragraph on the entire purchase
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24 price of the vehicle, the individual shall be entitled to a refund
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Req. No. 2431 Page 2
1 of the portion of tax paid, equal to one and twenty-five one-
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2 hundredths percent (1.25%) of the value of the vehicle sold, not to
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3 exceed the total tax paid on the vehicle purchased by such
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4 individual. Provided, the sale of motor vehicles shall not be
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5 subject to any sales and use taxes levied by cities, counties, or
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6 other jurisdictions of the state;
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7 3. Sale of crude petroleum or natural or casinghead gas, and
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8 other products subject to gross production tax pursuant to the
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9 provisions of Section 1001 et seq. and Section 1101 et seq. of this
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10 title. This exemption shall not apply when such products are sold
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11 to a consumer or user for consumption or use, except when used for
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12 injection into the earth for the purpose of promoting or
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13 facilitating the production of oil or gas. This paragraph shall not
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14 operate to increase or repeal the gross production tax levied by the
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15 laws of this state;
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16 4. Sale of aircraft on which the tax levied pursuant to the
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17 provisions of Sections 6001 through 6007 of this title has been, or
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18 will be paid or which are specifically exempt from such tax pursuant
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19 to the provisions of Section 6003 of this title;
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20 5. Sales from coin-operated devices on which the fee imposed by
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21 Sections 1501 through 1512 of this title has been paid;
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22 6. Leases of twelve (12) months or more of motor vehicles in
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23 which the owners of the vehicles have paid the vehicle excise tax
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24 levied by Section 2103 of this title;
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1 7. Sales of charity game equipment on which a tax is levied
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2 pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
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3 Title 3A of the Oklahoma Statutes, or which is sold to an
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4 organization that is:
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5 a. a veterans' organization exempt from taxation pursuant
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6 to the provisions of paragraph (4), (7), (8), (10), or
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7 (19) of subsection (c) of Section 501 of the United
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8 States Internal Revenue Code of 1986, as amended, 26
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9 U.S.C., Section 501(c) et seq.,
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10 b. a group home for mentally disabled individuals exempt
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11 from taxation pursuant to the provisions of paragraph
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12 (3) of subsection (c) of Section 501 of the United
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13 States Internal Revenue Code of 1986, as amended, 26
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14 U.S.C., Section 501(c) et seq., or
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15 c. a charitable health care organization which is exempt
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16 from taxation pursuant to the provisions of paragraph
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17 (3) of subsection (c) of Section 501 of the United
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18 States Internal Revenue Code of 1986, as amended, 26
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19 U.S.C., Section 501(c) et seq.;
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20 8. Sales of cigarettes or tobacco products to:
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21 a. a federally recognized Indian tribe or nation which
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22 has entered into a compact with the State of Oklahoma
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23 pursuant to the provisions of subsection C of Section
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24 346 of this title or to a licensee of such a tribe or
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1 nation, upon which the payment in lieu of taxes
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2 required by the compact has been paid, or
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3 b. a federally recognized Indian tribe or nation or to a
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4 licensee of such a tribe or nation upon which the tax
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5 levied pursuant to the provisions of Section 349.1 or
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6 Section 426 of this title has been paid;
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7 9. Leases of aircraft upon which the owners have paid the
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8 aircraft excise tax levied by Section 6001 et seq. of this title or
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9 which are specifically exempt from such tax pursuant to the
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10 provisions of Section 6003 of this title;
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11 10. The sale of low-speed or medium-speed electrical vehicles
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12 on which the Oklahoma Motor Vehicle Excise Tax motor vehicle excise
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13 tax levied in Section 2101 et seq. of this title has been or will be
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14 paid;
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15 11. Effective January 1, 2005, sales of cigarettes on which the
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16 tax levied in Section 301 et seq. of this title or tobacco products
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17 on which the tax levied in Section 401 et seq. of this title has
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18 been paid; and
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19 12. Sales of electricity at charging stations as defined by
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20 Section 6502 of this title when the electricity is sold by a
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21 charging station owner or operator for purposes of charging an
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22 electric vehicle as defined by Section 6502 of this title and the
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23 tax imposed pursuant to Section 6504 of this title is collected and
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24 remitted to the Oklahoma Tax Commission.
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1 SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, as
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2 amended by Section 2, Chapter 370, O.S.L. 2023 (68 O.S. Supp. 2025,
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3 Section 1404), is amended to read as follows:
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4 Section 1404. The provisions of Section 1401 et seq. of this
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5 title shall not apply:
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6 1. In respect to the use of any article of tangible personal
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7 property brought into the State of Oklahoma this state by a
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8 nonresident individual, visiting in this state, for his or her
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9 personal use or enjoyment, while within the state;
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10 2. In respect to the use of tangible personal property
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11 purchased for resale before being used;
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12 3. In respect to the use of any article of tangible personal
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13 property on which a tax, equal to or in excess of that levied by
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14 Section 1401 et seq. of this title, has been paid by the person
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15 using such tangible personal property in this state, whether such
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16 tax was levied under the laws of this state or some other state of
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17 the United States. If any article of tangible personal property has
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18 already been subjected to a tax, by this or any other state, in
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19 respect to its sale or use, in an amount less than the tax imposed
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20 by Section 1401 et seq. of this title, the provisions of Section
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21 1401 et seq. of this title shall apply to it by a rate measured by
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22 the difference only between the rate herein provided and the rate by
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23 which the previous tax upon the sale or use was computed. Provided,
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1 that no credit shall be given for taxes paid in another state, if
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2 that state does not grant like credit for taxes paid in this state;
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3 4. In respect to the use of tangible personal property now
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4 specifically exempted from taxation under the Oklahoma Sales Tax
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5 Code. Provided, for the sale of motor vehicles or any optional
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6 equipment or accessories attached to motor vehicles on which the
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7 Oklahoma Motor Vehicle Excise Tax motor vehicle excise tax levied
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8 pursuant to Sections Section 2101 through 2108 et seq. of this title
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9 has been, or will be paid, the exceptions shall apply to all but a
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10 portion of the levy provided under Section 1402 of this title, equal
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11 to one and twenty-five-hundredths twenty-five one-hundredths percent
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12 (1.25%) of the purchase price. For the purposes of this paragraph,
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13 if the sale of a motor vehicle includes a trade-in, the purchase
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14 price shall be calculated based only on the difference between the
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15 value of the trade-in vehicle and the actual purchase price of the
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16 vehicle being purchased. For the purposes of this paragraph, if an
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17 individual liable for tax pursuant to this paragraph has sold a
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18 vehicle within six (6) months prior to or after the date of the
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19 transfer of title on the vehicle being purchased, gross receipts
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20 shall be calculated based only on the difference between the value
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21 of the vehicle sold and the actual sales price of the vehicle being
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22 purchased. If an individual sells a vehicle within six (6) months
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23 after the date of the transfer of title on a vehicle purchased and
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24 has paid the tax pursuant to this paragraph on the entire purchase
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Req. No. 2431 Page 7
1 price of the vehicle, the individual shall be entitled to a refund
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2 of the portion of tax paid, equal to one and twenty-five one-
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3 hundredths percent (1.25%) of the value of the vehicle sold, not to
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4 exceed the total tax paid on the vehicle purchased by such
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5 individual. Provided further, the sale of motor vehicles shall not
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6 be subject to any sales and use taxes levied by cities, counties, or
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7 other jurisdictions of the state;
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8 5. In respect to the use of any article or tangible personal
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9 property brought into the state by an individual with intent to
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10 become a resident of this state where such personal property is for
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11 such individual's personal use or enjoyment;
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12 6. In respect to the use of any article of tangible personal
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13 property used or to be used by commercial airlines or railroads;
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14 7. In respect to livestock purchased outside this state and
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15 brought into this state for feeding or breeding purposes, and which
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16 is later resold; and
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17 8. Effective January 1, 1991, in respect to the use of rail
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18 transportation cars to haul coal to coal-fired plants located in
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19 this state which generate electric power.
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20 SECTION 3. This act shall become effective November 1, 2026.
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22 60-2-2431 QD 12/30/2025 10:01:18 PM
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Req. No. 2431 Page 8Every fact on this page links to its source, starting with the official bill record.