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 1802 By: Rosino
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6 AS INTRODUCED
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7 An Act relating to catastrophe savings accounts;
7 defining terms; authorizing the establishment of a
8 catastrophe savings account; limiting accounts that
8 may be opened; prescribing deposit amounts in order
9 to claim deduction; authorizing income tax deduction
9 for certain deposits; exempting certain interest and
10 returns from taxable income; providing exemption for
10 certain distributions; authorizing the Oklahoma Tax
11 Commission to promulgate rules; providing for
11 codification; and providing 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. NEW LAW A new section of law to be codified
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16 in the Oklahoma Statutes as Section 2358.8 of Title 68, unless there
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17 is created a duplication in numbering, reads as follows:
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18 A. As used in this section:
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19 1. "Catastrophe savings account" means a regular savings
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20 account or money market account established by a taxpayer who is a
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21 resident of this state, the exclusive purpose of which is to pay for
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22 qualified catastrophe expenses;
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Req. No. 2477 Page 1
1 2. "Catastrophic event" means a windstorm, a tornado, an
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2 earthquake, an ice storm, a flood, a hailstorm, and any other
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3 weather event that causes damage to homes;
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4 3. "Qualified catastrophe expenses" means a qualified
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5 deductible paid for damage resulting from a catastrophic event and
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6 expenses incurred, that are not covered by an insurance policy, in
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7 repairing damage or replacing a structure damaged by a catastrophic
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8 event for the primary residence of the taxpayer; and
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9 4. "Qualified deductible" means the amount of money the insured
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10 shall pay before the insurance provider starts paying for the
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11 covered damaged expenses for the insured's primary residence caused
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12 by a catastrophic event. If the policy provides for more than one
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13 deductible, the deductible with the highest amount shall be the
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14 qualified deductible.
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15 B. A taxpayer may establish one catastrophe savings account
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16 pursuant to this section which shall be labeled as a catastrophe
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17 savings account and shall specify that the purpose of the account is
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18 to cover qualified catastrophe expenses. No more than one
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19 catastrophe savings account shall be established pursuant to this
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20 section for a primary residence.
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21 C. In order to claim the deduction allowed by this section:
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22 1. For a taxpayer with a qualified deductible of One Thousand
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23 Dollars ($1,000.00) or less, the total amount that may be
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Req. No. 2477 Page 2
1 contributed to a catastrophe savings account shall be Two Thousand
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2 Dollars ($2,000.00) or less;
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3 2. For a taxpayer with a qualified deductible greater than One
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4 Thousand Dollars ($1,000.00), the total amount that may be
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5 contributed to a catastrophe savings account shall be the lesser of
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6 twice the amount of the qualified deductible or Twenty-five Thousand
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7 Dollars ($25,000.00); and
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8 3. For a taxpayer with a self-insured primary residence or a
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9 taxpayer who chooses not to obtain insurance on his or her primary
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10 residence, the total amount that may be contributed to a catastrophe
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11 savings account shall be Two Hundred Fifty Thousand Dollars
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12 ($250,000.00) or less. Provided, the amount contributed shall not
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13 exceed the market value of the primary residence, as reported by the
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14 applicable county assessor.
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15 D. 1. For tax year 2027 and subsequent tax years, an
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16 individual taxpayer shall be allowed a deduction from Oklahoma
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17 adjusted gross income for amounts contributed to a catastrophe
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18 savings account in compliance with this section.
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19 2. For tax year 2027 and subsequent tax years, interest or
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20 returns earned by a catastrophe savings account in compliance with
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21 this section shall be exempt from taxable income.
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22 3. For tax year 2027 and subsequent tax years, any distribution
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23 from a catastrophe savings account in compliance with this section
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24 that is used to cover qualified catastrophe expenses shall be exempt
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Req. No. 2477 Page 3
1 from taxable income. Provided, if the aggregate distributions from
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2 such account during the tax year exceed the qualified catastrophe
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3 expenses of the taxpayer during the tax year, such excess
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4 distributions shall be considered taxable income.
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5 E. The Oklahoma Tax Commission may promulgate any rules
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6 necessary to effectuate the provisions of this section.
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7 SECTION 2. This act shall become effective January 1, 2027.
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9 60-2-2477 QD 1/14/2026 8:57:37 PM
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Req. No. 2477 Page 4Every fact on this page links to its source, starting with the official bill record.