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Oklahoma Legislature· SB 1492Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee

An act relating to motor vehicles, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                   STATE OF OKLAHOMA

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

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3 SENATE BILL 1492                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; modifying exemption for sale

9   of motor vehicles; updating statutory language; and

10  providing an effective date.

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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 1355, as

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15 amended by Section 1, Chapter 370, O.S.L. 2023 (68 O.S. Supp. 2025,
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16 Section 1355), is amended to read as follows:
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17  Section 1355. There are hereby specifically exempted from the

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18 tax levied pursuant to the provisions of Section 1350 et seq. of
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19 this title:
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20  1. Sale of gasoline, motor fuel, methanol, "M-85" which is a

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21 mixture of methanol and gasoline containing at least eighty-five
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22 percent (85%) methanol, compressed natural gas, liquefied natural
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23 gas, or liquefied petroleum gas on which the Motor Fuel Tax motor
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24 fuel tax, Gasoline Excise Tax gasoline excise tax, Special Fuels Tax
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    Req. No. 2430                                              Page 1
1 special fuels tax, or the fee in lieu of Special Fuels Tax special
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2 fuels tax levied in Section 500.1 et seq., Section 601 et seq. or
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3 Section 701 et seq. of this title has been, or will be paid;
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4   2. For the sale Sale of motor vehicles or any optional

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5 equipment or accessories attached to motor vehicles on which the
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6 Oklahoma Motor Vehicle Excise Tax motor vehicle excise tax levied in
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7 Section 2101 et seq. of this title has been, or will be paid, all
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8 but a portion of the levy provided under Section 1354 of this title,
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9 equal to one and twenty-five-hundredths percent (1.25%) of the gross
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10 receipts of such sales. For the purposes of this paragraph, if the
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11 sale of a motor vehicle includes a trade-in, gross receipts shall be
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12 calculated based only on the difference between the value of the
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13 trade-in vehicle and the actual sales price of the vehicle being
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14 purchased. Provided, the sale of motor vehicles shall not be
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15 subject to any sales and use taxes levied by cities, counties, or
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16 other jurisdictions of the state;
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17  3. Sale of crude petroleum or natural or casinghead gas, and

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18 other products subject to gross production tax pursuant to the
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19 provisions of Section 1001 et seq. and Section 1101 et seq. of this
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20 title. This exemption shall not apply when such products are sold
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21 to a consumer or user for consumption or use, except when used for
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22 injection into the earth for the purpose of promoting or
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23 facilitating the production of oil or gas. This paragraph shall not
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    Req. No. 2430                                            Page 2
1 operate to increase or repeal the gross production tax levied by the
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2 laws of this state;
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3   4. Sale of aircraft on which the tax levied pursuant to the

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4 provisions of Sections 6001 through 6007 of this title has been, or
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5 will be paid, or which are specifically exempt from such tax
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6 pursuant to the provisions of Section 6003 of this title;
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7   5. Sales from coin-operated devices on which the fee imposed by

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8 Sections 1501 through 1512 of this title has been paid;
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9   6. Leases of twelve (12) months or more of motor vehicles in

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10 which the owners of the vehicles have paid the motor vehicle excise
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11 tax levied by Section 2103 of this title;
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12  7. Sales of charity game equipment on which a tax is levied

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13 pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
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14 Title 3A of the Oklahoma Statutes, or which is sold to an
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15 organization that is:
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16  a. a veterans' organization exempt from taxation pursuant

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17                 to the provisions of paragraph (4), (7), (8), (10), or

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18                 (19) of subsection (c) of Section 501 of the United

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19                 States Internal Revenue Code of 1986, as amended, 26

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20                 U.S.C., Section 501(c) et seq.,

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21  b. a group home for mentally disabled individuals exempt

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22                 from taxation pursuant to the provisions of paragraph

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23                 (3) of subsection (c) of Section 501 of the United

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    Req. No. 2430                                             Page 3
1                  States Internal Revenue Code of 1986, as amended, 26

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2                  U.S.C., Section 501(c) et seq., or

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3   c. a charitable health care organization which is exempt

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4                  from taxation pursuant to the provisions of paragraph

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5                  (3) of subsection (c) of Section 501 of the United

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6                  States Internal Revenue Code of 1986, as amended, 26

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7                  U.S.C., Section 501(c) et seq.;

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8   8. Sales of cigarettes or tobacco products to:

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9   a. a federally recognized Indian tribe or nation which

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10                 has entered into a compact with the State of Oklahoma

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11                 pursuant to the provisions of subsection C of Section

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12                 346 of this title or to a licensee of such a tribe or

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13                 nation, upon which the payment in lieu of taxes

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14                 required by the compact has been paid, or

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15  b. a federally recognized Indian tribe or nation or to a

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16                 licensee of such a tribe or nation upon which the tax

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17                 levied pursuant to the provisions of Section 349.1 or

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18                 Section 426 of this title has been paid;

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19  9. Leases of aircraft upon which the owners have paid the

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20 aircraft excise tax levied by Section 6001 et seq. of this title or
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21 which are specifically exempt from such tax pursuant to the
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22 provisions of Section 6003 of this title;
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23  10. The sale of low-speed or medium-speed electrical vehicles

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24 on which the Oklahoma Motor Vehicle Excise Tax motor vehicle excise
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    Req. No. 2430                                               Page 4
1 tax levied in Section 2101 et seq. of this title has been or will be
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2 paid;
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3   11. Effective January 1, 2005, sales of cigarettes on which the

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4 tax levied in Section 301 et seq. of this title or tobacco products
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5 on which the tax levied in Section 401 et seq. of this title has
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6 been paid; and
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7   12. Sales of electricity at charging stations as defined by

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8 Section 6502 of this title when the electricity is sold by a
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9 charging station owner or operator for purposes of charging an
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10 electric vehicle as defined by Section 6502 of this title and the
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11 tax imposed pursuant to Section 6504 of this title is collected and
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12 remitted to the Oklahoma Tax Commission.
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13  SECTION 2.     AMENDATORY  68 O.S. 2021, Section 1404, as

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14 amended by Section 2, Chapter 370, O.S.L. 2023 (68 O.S. Supp. 2025,
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15 Section 1404), is amended to read as follows:
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16  Section 1404. The provisions of Section 1401 et seq. of this

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17 title shall not apply:
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18  1. In respect to the use of any article of tangible personal

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19 property brought into the State of Oklahoma this state by a
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20 nonresident individual, visiting in this state, for his or her
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21 personal use or enjoyment, while within the state;
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22  2. In respect to the use of tangible personal property

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23 purchased for resale before being used;
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    Req. No. 2430                                           Page 5
1   3. In respect to the use of any article of tangible personal

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2 property on which a tax, equal to or in excess of that levied by
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3 Section 1401 et seq. of this title, has been paid by the person
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4 using such tangible personal property in this state, whether such
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5 tax was levied under the laws of this state or some other state of
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6 the United States. If any article of tangible personal property has
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7 already been subjected to a tax, by this or any other state, in
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8 respect to its sale or use, in an amount less than the tax imposed
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9 by Section 1401 et seq. of this title, the provisions of Section
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10 1401 et seq. of this title shall apply to it by a rate measured by
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11 the difference only between the rate herein provided and the rate by
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12 which the previous tax upon the sale or use was computed. Provided,
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13 that no credit shall be given for taxes paid in another state, if
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14 that state does not grant like credit for taxes paid in this state;
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15  4. In respect to the use of tangible personal property now

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16 specifically exempted from taxation under the Oklahoma Sales Tax
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17 Code. Provided, for the sale of motor vehicles or any optional
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18 equipment or accessories attached to motor vehicles on which the
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19 Oklahoma Motor Vehicle Excise Tax levied pursuant to Sections 2101
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20 through 2108 of this title has been, or will be paid, the exceptions
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21 shall apply to all but a portion of the levy provided under Section
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22 1402 of this title, equal to one and twenty-five-hundredths percent
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23 (1.25%) of the purchase price. For the purposes of this paragraph,
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24 if the sale of a motor vehicle includes a trade-in, the purchase
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    Req. No. 2430  Page 6
1 price shall be calculated based only on the difference between the
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2 value of the trade-in vehicle and the actual purchase price of the
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3 vehicle being purchased. Provided further, the sale of motor
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4 vehicles shall not be subject to any sales and use taxes levied by
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5 cities, counties, or other jurisdictions of the state;
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6   5. In respect to the use of any article or tangible personal

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7 property brought into the state by an individual with intent to
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8 become a resident of this state where such personal property is for
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9 such individual's personal use or enjoyment;
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10  6. In respect to the use of any article of tangible personal

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11 property used or to be used by commercial airlines or railroads;
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12  7. In respect to livestock purchased outside this state and

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13 brought into this state for feeding or breeding purposes, and which
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14 is later resold; and
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15  8. Effective January 1, 1991, in respect to the use of rail

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16 transportation cars to haul coal to coal-fired plants located in
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17 this state which generate electric power.
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18  SECTION 3. This act shall become effective November 1, 2026.

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20  60-2-2430      QD    1/9/2026 11:02:00 AM

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    Req. No. 2430                                         Page 7
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