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Oklahoma Legislature· SB 1401Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee

An act relating to taxation, the official text

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1                   STATE OF OKLAHOMA

1

2                  2nd Session of the 60th Legislature (2026)

2

3 SENATE BILL 1401               By: Rader
3

4

4

5

5

6                   AS INTRODUCED

6

7   An Act relating to taxation; amending 36 O.S. 2021,

7   Sections 624, as last amended by Section 1, Chapter

8   427, O.S.L. 2025, 625.1, and 2204 (36 O.S. Supp.

8   2025, Section 624), which relate to taxes on premiums

9   and considerations; modifying rate for certain fiscal

9   years; limiting certain credit to certain fiscal

10  years; updating statutory language; updating

10  statutory references; providing an effective date;

11  and declaring an emergency.

11

12

12

13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
13

14  SECTION 1.      AMENDATORY  36 O.S. 2021, Section 624, as last

14

15 amended by Section 1, Chapter 427, O.S.L. 2025 (36 O.S. Supp. 2025,
15

16 Section 624), is amended to read as follows:
16

17  Section 624. A. Every insurance company, copartnership,

17

18 insurance association, interinsurance exchange, person, insurer,
18

19 nonprofit hospital service and medical indemnity corporation, or
19

20 health maintenance organization doing business in this state in the
20

21 execution or exchange of contracts of insurance, indemnity or health
21

22 maintenance services, or as an insurance company of any nature or
22

23 character whatsoever, hereinafter referred to in this article as an
23

24 insurance company or company, shall annually, on or before the first
24

    Req. No. 2461                                              Page 1
1 day of March, report under oath of the president or secretary or
1

2 other chief officer of such company to the Insurance Commissioner
2

3 the total amount of direct written premiums, membership,
3

4 application, policy and/or registration fees charged during the
4

5 preceding calendar year, or since the last return of such direct
5

6 written premiums, membership, application, policy and/or
6

7 registration fees was made by such company, from insurance of every
7

8 kind upon persons or on the lives of persons resident in this state,
8

9 or upon real and personal property located within this state, and/or
9

10 upon any other risks insured within this state; provided, that with
10

11 respect to the tax payable annually, considerations received for
11

12 annuity contracts and payments received by a health maintenance
12

13 organization from the Secretary of Health and Human Services
13

14 pursuant to a contract issued under the provisions of 42 U.S.C.,
14

15 Section 1395mm(g) shall no longer be deemed to be premiums for
15

16 insurance and shall no longer be subject to the tax imposed by this
16

17 section. Every such company shall, at the same time, pay to the
17

18 Insurance Commissioner:
18

19  1. An annual license fee as prescribed by Section 321 of this

19

20 title; and
20

21  2. An annual tax on all of the direct written premiums after

21

22 all returned premiums are deducted, and on all membership,
22

23 application, policy and/or registration fees, installment and/or
23

24 finance fees or charges collected thereby, for the privileges of
24

    Req. No. 2461                                              Page 2
1 having written, continued and/or serviced insurance on lives,
1

2 property and/or other risks in this state and of having made and
2

3 serviced investments therein during the then expiring license year
3

4 except premiums or fees paid by any county, city, town or school
4

5 district funds or by their duly constituted authorities performing a
5

6 public service organized pursuant to Sections 1001 through 1008 of
6

7 Title 74 of the Oklahoma Statutes, or Sections 176 through 180.4 of
7

8 Title 60 of the Oklahoma Statutes. Provided, no deduction shall be
8

9 made from premiums for dividends paid to policyholders. Except as
9

10 set forth in this paragraph, the rate of taxation for all entities
10

11 subject to the tax shall be two and twenty-five one-hundredths
11

12 percent (2.25%), until June 30, 2026, and one and ninety-six one-
12

13 hundredths percent (1.96%), beginning July 1, 2026. If any
13

14 insurance company or other entity liable for the taxes levied
14

15 pursuant to the provisions of this section fails to remit such taxes
15

16 in a timely manner, it shall remain liable therefor together with
16

17 interest thereon at an annual rate equal to the average United
17

18 States Treasury Bill rate of the preceding calendar year as
18

19 certified by the State Treasurer on the first regular business day
19

20 in January of each year, plus four percentage points.
20

21  a. The rate of taxation for all life insurance policies

21

22                 insuring the life of an employee or director for the

22

23                 benefit of the employer or a trust sponsored by the

23

24                 employer, which is purchased by the employer or trust

24

    Req. No. 2461                                               Page 3
1                  sponsored by the employer for the benefit of its

1

2                  employees, shall be computed for each policy at the

2

3                  rate of:

3

4                  (1) until June 30, 2026, two and twenty-five one-

4

5                  hundredths percent (2.25%) of policy year premium

5

6                  up to One Hundred Thousand Dollars ($100,000.00),

6

7                  and

7

8                  (2) beginning July 1, 2026, one and ninety-six one-

8

9                  hundredths percent (1.96%) of policy year premium

9

10                 up to One Hundred Thousand Dollars ($100,000.00),

10

11                 and

11

12                 (3) one-tenth of one percent (1/10 of 1%) of policy

12

13                 year premium exceeding One Hundred Thousand

13

14                 Dollars ($100,000.00).

14

15  b. Premiums on which taxes are paid under division (2)

15

16                 (3) of subparagraph a of this paragraph are not

16

17                 subject to Section 628 of this title. The

17

18                 Commissioner shall promulgate rules regarding the sale

18

19                 of life insurance policies subject to division (2) (3)

19

20                 of subparagraph a of this paragraph.

20

21  c. Proceeds from the premium tax collected under this

21

22                 paragraph from contracted entities under the Ensuring

22

23                 Access to Medicaid Act shall be deposited in the

23

24                 Medicaid Health Improvement Revolving Fund created in

24

    Req. No. 2461                                             Page 4
1                 Section 1010.8A of Title 56 of the Oklahoma Statutes.

1

2                 Notwithstanding any other provision of law to the

2

3                 contrary, the premium taxes to be deposited in the

3

4                 Medicaid Health Improvement Revolving Fund for the

4

5                 calendar year ending December 31, 2024, and for each

5

6                 calendar year thereafter, shall not be subject to the

6

7                 apportionments provided in Section 312.1 of this

7

8                 title.

8

9  B. For all insurance companies or other entities taxed pursuant

9

10 to this section, the annual license fee and tax and all required
10

11 membership, application, policy, registration, and agent appointment
11

12 fees shall be in lieu of all other state taxes or fees, except those
12

13 taxes and fees provided for in the Oklahoma Insurance Code, and the
13

14 taxes and fees of any subdivision or municipality of the state,
14

15 except ad valorem taxes and the tax required to be paid pursuant to
15

16 Section 50001 of Title 68 of the Oklahoma Statutes. Provided, such
16

17 license fee, tax and membership, application, policy, registration,
17

18 and appointment fees shall be in lieu of any and all ad valorem
18

19 taxes levied on intangible personal property. Any company, except
19

20 health maintenance organizations, failing to make such returns and
20

21 payments promptly and correctly shall forfeit and pay to the
21

22 Insurance Commissioner, in addition to the amount of the taxes and
22

23 fees and interest, the sum of Five Hundred Dollars ($500.00) or an
23

24 amount equal to one percent (1%) of the unpaid amount, whichever is
24

   Req. No. 2461          Page 5
1 greater; and the company so failing or neglecting for sixty (60)
1

2 days shall thereafter be debarred from transacting any business of
2

3 insurance in this state until the taxes, fees and penalties are
3

4 fully paid, and the Insurance Commissioner shall revoke the license
4

5 or certificate of authority granted to the agent or agents of that
5

6 company to transact business in this state. Provided, that when any
6

7 such insurance company, copartnership, insurance association,
7

8 interinsurance exchange, person, insurer, or nonprofit hospital
8

9 service and indemnity corporation applies for the first time for a
9

10 license to do business in this state, it shall, at the time of
10

11 making such application, pay a license fee as prescribed by Section
11

12 1435.23 of this title, and, on or before the first day of March,
12

13 following, pay the premium tax, membership, application, policy,
13

14 registration, and agent appointment fees, as hereinbefore provided.
14

15 Such license fee, tax and membership, application, policy,
15

16 registration, and appointment fees shall be in lieu of all other
16

17 state taxes or fees, except those taxes and fees provided for in the
17

18 Oklahoma Insurance Code, and the taxes and fees of any subdivision
18

19 or municipality of the state, except ad valorem taxes and the tax
19

20 required to be paid pursuant to Section 50001 of Title 68 of the
20

21 Oklahoma Statutes.
21

22  C. Any health maintenance organization failing to file premium

22

23 tax returns and payments promptly and correctly shall forfeit and
23

24 pay to the Insurance Commissioner, in addition to the amount of the
24

    Req. No. 2461                                              Page 6
1 taxes, the sum of Five Hundred Dollars ($500.00) or an amount equal
1

2 to one percent (1%) of the unpaid amount, whichever is greater. Any
2

3 health maintenance organization failing or neglecting to pay the tax
3

4 and penalty shall be debarred from operating in this state and the
4

5 Insurance Commissioner shall revoke the license of the health
5

6 maintenance organization, until such taxes and penalties are fully
6

7 paid.
7

8   SECTION 2.     AMENDATORY  36 O.S. 2021, Section 625.1, is

8

9 amended to read as follows:
9

10  Section 625.1. A. A Until June 30, 2026, a foreign or alien

10

11 insurer which is subject to the tax imposed by Section 624 of this
11

12 title shall be entitled to a credit against said such tax actually
12

13 paid to and placed in the General Revenue Fund of the state, not
13

14 including any of said such tax monies placed in pension funds and
14

15 not including any of said such tax monies placed in escrow, if,
15

16 during the year for which the tax is being assessed, the insurer or
16

17 its affiliate maintained a regional home office in this state in a
17

18 building owned or leased by the insurer. To receive a credit
18

19 against the tax imposed for the year in which the regional home
19

20 office was established, said the office must have been maintained
20

21 continuously from on or before August 1 of that year through the
21

22 last day of the calendar year. For succeeding years, an insurer or
22

23 its affiliate shall have maintained the regional home office
23

24 continuously from the first day of the calendar year for which the
24

    Req. No. 2461              Page 7
1 tax is imposed through the last day of that calendar year. The Home
1

2 Office Credit shall be calculated as follows:
2

3   1. Until June 30, 2010, the credit shall be equal to the

3

4 following percentages of the amount due after the credits authorized
4

5 by Sections 624.1 and 625 of this title have been deducted:
5

6   a. fifteen percent (15%), if there are more than two

6

7                  hundred full-time, year-round Oklahoma employees, but

7

8                  less than three hundred full-time, year-round Oklahoma

8

9                  employees,

9

10  b. twenty-five percent (25%), if there are more than

10

11                 three hundred full-time, year-round Oklahoma

11

12                 employees, but less than four hundred full-time, year-

12

13                 round Oklahoma employees,

13

14  c. thirty-five percent (35%), if there are more than four

14

15                 hundred full-time, year-round Oklahoma employees, but

15

16                 less than five hundred full-time, year-round Oklahoma

16

17                 employees, or

17

18  d. fifty percent (50%), if there are five hundred or more

18

19                 full-time, year-round Oklahoma employees; and

19

20  2. Beginning July 1, 2010, through June 30, 2026, in the

20

21 calculation of the credit, the amount to be apportioned to the
21

22 Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma
22

23 Police Pension and Retirement System and the Oklahoma Law
23

24 Enforcement Retirement Fund shall be applied prior to the
24

    Req. No. 2461                                                 Page 8
1 calculation of the credit. The amount of the credit shall be
1

2 derived from amounts remaining after the apportionment to the
2

3 Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma
3

4 Police Pension and Retirement System and the Oklahoma Law
4

5 Enforcement Retirement Fund. The credit shall be calculated by
5

6 first applying a "Home Office Credit Allotment Rate" of forty-seven
6

7 percent (47%) to the gross premium tax owed by the insurer and then
7

8 determining the allowable credit by applying the following
8

9 percentages of the amount due after the credits authorized by
9

10 Sections 624.1 and 625 of this title have been deducted:
10

11  a. fifteen percent (15%), if there are more than two

11

12                 hundred full-time, year-round Oklahoma employees, but

12

13                 less than three hundred full-time, year-round Oklahoma

13

14                 employees,

14

15  b. twenty-five percent (25%), if there are more than

15

16                 three hundred full-time, year-round Oklahoma

16

17                 employees, but less than four hundred full-time, year-

17

18                 round Oklahoma employees,

18

19  c. thirty-five percent (35%), if there are more than four

19

20                 hundred full-time, year-round Oklahoma employees, but

20

21                 less than five hundred full-time, year-round Oklahoma

21

22                 employees, or

22

23  d. fifty percent (50%), if there are five hundred or more

23

24                 full-time, year-round Oklahoma employees.

24

    Req. No. 2461                                                Page 9
1  B. A Until June 30, 2026, a domestic insurer with four hundred

1

2 or more full-time, year-round Oklahoma employees which is subject to
2

3 the tax imposed by Section 624 of this title shall be entitled to a
3

4 credit against said such tax actually paid to and placed in the
4

5 General Revenue Fund of the state, not including any of said such
5

6 tax monies placed in pension funds and not including any of said
6

7 such tax monies placed in escrow, if, during the year previous to
7

8 the year for which the tax is being assessed, the insurer or its
8

9 affiliate maintained a regional home office in this state in a
9

10 building owned or leased by the insurer and during the year for
10

11 which the tax is being assessed, the insurer establishes its home
11

12 office in this state in a building owned or leased by the insurer.
12

13 To receive a credit against the tax imposed for the year in which
13

14 the home office was established, said the office must have been
14

15 maintained continuously from on or before August 1 of that year
15

16 through the last day of the calendar year. For succeeding years, an
16

17 insurer shall have maintained the home office continuously from the
17

18 first day of the calendar year for which the tax is imposed through
18

19 the last day of that calendar year. Insurers who take action before
19

20 August 1, 2000, to establish their home office in this state shall
20

21 be entitled to a credit against the tax imposed on or after January
21

22 1, 2001, which shall be in addition to the credit the insurer is
22

23 entitled to for that year. The Home Office Credit shall be
23

24 calculated as follows:
24

   Req. No. 2461           Page 10
1   1. Until June 30, 2010, the credit shall be equal to the

1

2 following percentages of the amount due after the credits authorized
2

3 by Sections 624.1 and 625 of this title have been deducted:
3

4   a. thirty-five percent (35%), if there are more than four

4

5                  hundred full-time, year-round Oklahoma employees, but

5

6                  less than five hundred full-time, year-round Oklahoma

6

7                  employees, or

7

8   b. fifty percent (50%), if there are five hundred or more

8

9                  full-time, year-round Oklahoma employees; and

9

10  2. Beginning July 1, 2010, through June 30, 2026, in the

10

11 calculation of the credit, the amount to be apportioned to the
11

12 Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma
12

13 Police Pension and Retirement System and the Oklahoma Law
13

14 Enforcement Retirement Fund shall be applied prior to the
14

15 calculation of the credit. The amount of the credit shall be
15

16 derived from amounts remaining after the apportionment to the
16

17 Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma
17

18 Police Pension and Retirement System and the Oklahoma Law
18

19 Enforcement Retirement Fund. The credit shall be calculated by
19

20 first applying a "Home Office Credit Allotment Rate" of forty-seven
20

21 percent (47%) to the gross premium tax owed by the insurer and then
21

22 determining the allowable credit by applying the following
22

23 percentages of the amount due after the credits authorized by
23

24 Sections 624.1 and 625 of this title have been deducted:
24

    Req. No. 2461                                             Page 11
1   a. thirty-five percent (35%), if there are more than four

1

2                  hundred full-time, year-round Oklahoma employees, but

2

3                  less than five hundred full-time, year-round Oklahoma

3

4                  employees, or

4

5   b. fifty percent (50%), if there are five hundred or more

5

6                  full-time, year-round Oklahoma employees.

6

7   C. A Until June 30, 2026, a domestic insurer which is subject

7

8 to the tax imposed by Section 624 of this title shall be entitled to
8

9 a credit against said such tax actually paid to and placed in the
9

10 General Revenue Fund of the state, not including any of said such
10

11 tax monies placed in pension funds and not including any of said
11

12 such tax monies placed in escrow, if, during the year for which the
12

13 tax is being assessed, the insurer maintained a regional home office
13

14 in at least five or more counties in this state in buildings owned
14

15 or leased by the insurer. To receive a credit against the tax
15

16 imposed for the year in which the regional home offices were
16

17 established, said the offices must have been maintained continuously
17

18 from on or before August 1 of that year through the last day of the
18

19 calendar year. For succeeding years, an insurer shall have
19

20 maintained the regional home offices continuously from the first day
20

21 of the calendar year for which the tax is imposed through the last
21

22 day of that calendar year. The Home Office Credit shall be
22

23 calculated as follows:
23

24

24

    Req. No. 2461                                             Page 12
1   1. Until June 30, 2010, the credit shall be equal to the

1

2 percentage of the amount due after the credits authorized by
2

3 Sections 624.1 and 625 of this title have been deducted as
3

4 established in subsection A of this section; and
4

5   2. Beginning July 1, 2010, through June 30, 2026, in the

5

6 calculation of the credit, the amount to be apportioned to the
6

7 Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma
7

8 Police Pension and Retirement System and the Oklahoma Law
8

9 Enforcement Retirement Fund shall be applied prior to the
9

10 calculation of the credit. The amount of the credit shall be
10

11 derived from amounts remaining after the apportionment to the
11

12 Oklahoma Firefighters Pension and Retirement Fund, the Oklahoma
12

13 Police Pension and Retirement System and the Oklahoma Law
13

14 Enforcement Retirement Fund. The credit shall be calculated by
14

15 first applying a "Home Office Credit Allotment Rate" of forty-seven
15

16 percent (47%) to the gross premium tax owed by the insurer and then
16

17 determining the allowable credit by applying the percentage of the
17

18 amount due after the credits authorized by Sections 624.1 and 625 of
18

19 this title have been deducted as established in subsection A of this
19

20 section.
20

21  D. Proof that an insurer qualifies for the credit authorized by

21

22 this section shall be on forms prescribed by the Insurance
22

23 Commissioner and shall be submitted to the Commissioner annually
23

24

24

    Req. No. 2461                                              Page 13
1 with the report which is filed pursuant to Section 624 of the
1

2 Oklahoma Insurance Code.
2

3   E. The credit provided for in subsections A, B and C of this

3

4 section shall be based on the total number of Oklahoma employees in
4

5 the regional or home office when a group of insurers which are under
5

6 common management and control maintain a regional home office or
6

7 home office in this state in a building owned or leased by the group
7

8 of insurers. The credit provided for in subsections A, B and C of
8

9 this section may be allocated among the insurance company and the
9

10 insurance company affiliates at the discretion of the insurance
10

11 company on a per-insurance-company basis.
11

12  F. As used in this section:

12

13  1. "Regional home office" means an office transacting

13

14 insurance, as defined in Section 105 of this title, and performing
14

15 insurance company operations, which is defined as one or more or any
15

16 combination of the following functions and services performed in
16

17 connection with the development, sale, and administration of
17

18 products giving rise to receipts subject to a premium tax on
18

19 domestic and foreign insurance companies, or domestic or foreign
19

20 health care insurance corporations: actuarial, medical, legal,
20

21 investments, accounting, auditing, underwriting, policy issuance,
21

22 information, policyholder services, premium collection, claims,
22

23 advertising and publications, public relations, human resources,
23

24 marketing, sales office staff, training of sales and service
24

    Req. No. 2461                                          Page 14
1 personnel, and clerical, managerial, and other support for any such
1

2 functions or services;
2

3   2. "Common management and control" means the possession, direct

3

4 or indirect, of the power to direct or cause the direction of the
4

5 management and policies of an insurer, whether through the ownership
5

6 of voting securities, by contract, or otherwise, unless the power is
6

7 executed by a person acting in an official capacity, performing
7

8 duties imposed and exercising authority granted because of the
8

9 person's position as an officer or employee of the insurer. Control
9

10 shall be presumed to exist if any person, directly or indirectly,
10

11 owns, controls, holds with the power to vote, or holds proxies
11

12 representing twenty-five percent (25%) or more of the voting
12

13 securities of the insurer;
13

14  3. "Oklahoma employees" means persons who are employed in

14

15 Oklahoma after January 1, 2000, and who are common law employees of
15

16 an insurance company or its affiliate. Oklahoma employees do not
16

17 include independent contractors or any persons to the extent that
17

18 the compensation of that person is based on commissions;
18

19  4. "Insurance company" means any entity subject to a premium

19

20 tax on domestic and foreign insurance companies, or domestic or
20

21 foreign health care insurance corporations, including the attorney-
21

22 in-fact authorized by and acting for the subscribers of a reciprocal
22

23 insurer or inter-insurance interinsurance exchange under powers of
23

24

24

    Req. No. 2461                                            Page 15
1 attorney. A reciprocal insurer and its attorney-in-fact shall be a
1

2 single entity; and
2

3   5. "Home office" means the executive offices of an insurance

3

4 company which is domiciled in this state.
4

5   G. Each insurer or insurance group requesting a credit under

5

6 this section shall certify by affidavit, approved as to form by the
6

7 Commissioner, that the insurer has met all of the qualifications
7

8 required by this section and is authorized to a credit against the
8

9 premium tax which actually shall be paid to, and placed in the
9

10 General Revenue Fund of, the state, exclusive of any amounts of the
10

11 tax which shall be credited to pension funds pursuant to law and
11

12 exclusive of any amounts which shall be placed into escrow. The
12

13 Commissioner may do an examination for the sole purpose of
13

14 certifying that all requirements of this section are being met by
14

15 the insurer requesting to obtain any credits against premium tax.
15

16  H. For the fiscal year beginning July 1, 2006, and for each

16

17 fiscal year thereafter years 2007 through 2026, and notwithstanding
17

18 any other provisions of Title 36 of the Oklahoma Statutes this title
18

19 or any other provision of law governing the order in which the
19

20 credit authorized by this section is to be deducted from the
20

21 liability of the company claiming such credit to the contrary, the
21

22 credit authorized by this section shall be deducted from the
22

23 insurance premium tax liability of the company claiming such credit
23

24

24

    Req. No. 2461                                              Page 16
1 prior to the deduction of any other credits that may be claimed
1

2 against such liability.
2

3   SECTION 3.     AMENDATORY  36 O.S. 2021, Section 2204, is

3

4 amended to read as follows:
4

5   Section 2204. A. A medical professional liability trust shall

5

6 file the following items with the Commissioner:
6

7   1. Within forty-five (45) days after the end of each of the

7

8 first three quarterly periods of each fiscal year, a statement of
8

9 the assets and liabilities of the trust as of the end of the
9

10 quarterly period, a statement of the revenue and expenditures of the
10

11 trust, and a statement of the changes in corpus of the trust for the
11

12 period, in each case accompanied by a certificate to the effect that
12

13 the statements were prepared from the official books and records of
13

14 the trust;
14

15  2. Within ninety (90) days after the end of each fiscal year, a

15

16 statement of the assets and liabilities of the trust as of the end
16

17 of that year, a statement of the revenue and expenditures of the
17

18 trust, and a statement of the changes in corpus of the trust for
18

19 that year, in each case accompanied by a certificate signed by a
19

20 firm of independent certified public accountants indicating that the
20

21 firm has conducted an audit of those statements in accordance with
21

22 generally accepted auditing standards and indicating the results of
22

23 the audit;
23

24

24

    Req. No. 2461                                  Page 17
1   3. The independently audited annual financial statement of the

1

2 trust by June 1 of each year;
2

3   4. The closed claim reports as are required pursuant to

3

4 Sections 6810 through 6816 of Title 36 of the Oklahoma Statutes this
4

5 title;
5

6   5. Rates and forms within thirty (30) days after issuance of

6

7 the first policy and within thirty (30) days after any changes to
7

8 the previously filed rates and forms; and
8

9   6. Any amendment to the trust instrument within thirty (30)

9

10 days of making the amendment.
10

11  B. A trust shall, annually, on or before the first day of

11

12 March, report under oath to the Insurance Commissioner, the total
12

13 amount of direct written consideration received from the membership
13

14 during the preceding calendar year, or since the last return of such
14

15 considerations was made by such trust.
15

16  1. A trust shall pay to the Insurance Department, on or before

16

17 March 1, an annual tax on all direct written considerations, after
17

18 all returned considerations are deducted for the privileges of
18

19 having written, continued and/or serviced contracts of indemnity
19

20 except considerations paid by any governmental agency or
20

21 instrumentality. The rate of taxation shall be two and twenty-five
21

22 one-hundredths percent (2.25%), until June 30, 2026, and one and
22

23 ninety-six one-hundredths percent (1.96%), beginning July 1, 2026.
23

24 If any trust fails to remit such taxes in a timely manner, it shall
24

    Req. No. 2461                                            Page 18
1 remain liable therefor together with interest thereon at an annual
1

2 rate equal to the average United States Treasury Bill rate of the
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3 preceding calendar year as certified by the State Treasurer on the
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4 first regular business day in January of each year, plus four (4)
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5 percentage points.
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6   2. For any trust taxed pursuant to this section, the annual tax

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7 shall be in lieu of all other state taxes or fees, except the taxes
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8 and fees of any subdivision or municipality of the state and except
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9 ad valorem taxes. Any trust failing to make such returns and
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10 payments promptly and correctly shall forfeit and pay to the
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11 Commissioner, in addition to the amount of said such taxes and fees
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12 and interest, the sum of Five Hundred Dollars ($500.00) or an amount
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13 equal to one percent (1%) of the unpaid amount, whichever is
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14 greater; and the trust so failing or neglecting for sixty (60) days
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15 shall thereafter be debarred from transacting any business in this
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16 state until said such taxes, fees and penalties are fully paid.
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17  3. All taxes, fees and penalties collected under this section

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18 shall be reported and disbursed by the Commissioner and appropriated
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19 pursuant to the provisions of Section 312.1 of Title 36 of the
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20 Oklahoma Statutes this title.
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21  SECTION 4. This act shall become effective July 1, 2026.

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22  SECTION 5. It being immediately necessary for the preservation

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23 of the public peace, health or safety, an emergency is hereby
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    Req. No. 2461                 Page 19
1 declared to exist, by reason whereof this act shall take effect and
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2 be in full force from and after its passage and approval.
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    Req. No. 2461                                            Page 20
Every fact on this page links to its source, starting with the official bill record.