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 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 736 By: Deevers
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6 AS INTRODUCED
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7 An Act relating to revenue and taxation; creating the
7 Health Care Sharing Ministry Tax Parity Act;
8 providing short title; defining terms; providing for
8 income tax deduction; providing procedure for
9 claiming deduction; requiring Oklahoma Tax Commission
9 to create forms and guidelines; providing funds to be
10 nontaxable; providing Oklahoma Tax Commission with
10 administrative oversight; providing penalties for
11 fraudulent claims; providing for severability;
11 providing for noncodification; providing for
12 codification; and providing an effective date.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. NEW LAW A new section of law not to be
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17 codified in the Oklahoma Statutes reads as follows:
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18 This act shall be known and may be cited as the "Health Care
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19 Sharing Ministry Tax Parity Act".
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20 SECTION 2. NEW LAW A new section of law not to be
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21 codified in the Oklahoma Statutes reads as follows:
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22 The Legislature finds and declares that:
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23 1. Health care sharing ministries (HCSMs) play a significant
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24 role in addressing medical needs for individuals and families,
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Req. No. 1321 Page 1
1 providing financial and emotional support outside of traditional
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2 health insurance;
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3 2. HCSMs enable their members to share health care costs in a
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4 voluntary and community-focused manner consistent with their ethical
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5 and religious beliefs;
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6 3. Despite their critical function, HCSM contributions and
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7 payments are not currently afforded the same tax treatment as
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8 traditional health insurance premiums under state law; and
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9 4. To ensure fairness and eliminate financial discrimination,
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10 this act allows HCSM members to deduct qualifying expenses and
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11 contributions on their state income tax returns, achieving tax
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12 parity with health insurance plans.
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13 SECTION 3. NEW LAW A new section of law to be codified
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14 in the Oklahoma Statutes as Section 2358.111 of Title 68, unless
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15 there is created a duplication in numbering, reads as follows:
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16 A. As used in this act:
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17 1. "Health care sharing ministry" (HCSM) means a not-for-profit
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18 organization that is tax-exempt under Section 501(c)(3) of the
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19 Internal Revenue Code of 1986, as amended, and:
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20 a. limits its members to those who share a common set of
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21 ethical or religious beliefs,
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22 b. facilitates sharing of medical expenses between
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23 members in accordance with its published guidelines,
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1 c. requires regular contributions from members with no
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2 assumption of risk or promise to pay for medical
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3 expenses,
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4 d. provides a quarterly report to members detailing the
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5 amount of needs shared and contributions received,
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6 e. conducts annual independent audits that are publicly
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7 available, and
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8 f. provides a disclaimer stating that it is not an
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9 insurance company and participation is voluntary;
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10 2. "Qualified health care sharing expenses" means contributions
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11 made by a qualified individual to a recognized HCSM for the purpose
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12 of sharing medical expenses or covering administrative fees; and
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13 3. "Qualified individual" means any resident of Oklahoma who
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14 has been an active member of an HCSM for at least one (1) month
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15 during the applicable tax year.
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16 B. 1. For tax years beginning on or after January 1, 2026, a
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17 qualified individual is entitled to deduct the total amount of
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18 qualified health care sharing expenses paid during the taxable year
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19 from his or her adjusted gross income (AGI) on their Oklahoma state
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20 income tax return.
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21 2. The deduction allowed under this section shall be applicable
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22 to:
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23 a. self-employed individuals, in the same manner as
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24 deductions for health insurance premiums,
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1 b. employer contributions toward HCSM membership for
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2 employees, which shall be treated as nontaxable fringe
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3 benefits, and
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4 c. individuals purchasing HCSM membership for themselves
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5 or their dependents.
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6 C. 1. To claim the deduction, a qualified individual must:
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7 a. submit documentation of membership and contributions
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8 to an HCSM, including any records issued by the
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9 ministry, and
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10 b. file any additional forms or information required by
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11 the Oklahoma Tax Commission to verify eligibility.
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12 2. The Oklahoma Tax Commission shall develop forms, guidelines,
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13 and procedures for the implementation of this section.
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14 D. Funds received by a qualified individual from HCSM members
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15 to assist with medical expenses shall not be considered taxable
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16 income under Oklahoma state law.
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17 E. The Oklahoma Tax Commission shall be responsible for
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18 administering the provisions of this act. The Tax Commission shall
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19 issue an annual report to the Legislature detailing the number of
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20 deductions claimed, the total fiscal impact, and any other relevant
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21 data.
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22 F. Any individual who knowingly submits false documentation to
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23 claim the deductions or exemptions under this act shall be subject
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24 to:
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1 1. Repayment of any income tax amount attributable to
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2 improperly claimed deductions;
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3 2. A civil penalty of Five Hundred Dollars ($500.00) per
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4 offense; and
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5 3. Ineligibility to claim deductions under this act for a
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6 period of three (3) years.
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7 G. If any provision of this act is found unconstitutional or
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8 invalid by a court of competent jurisdiction, the remaining
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9 provisions shall remain in full force and effect.
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10 SECTION 4. This act shall become effective November 1, 2025.
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12 60-1-1321 CAD 1/19/2025 5:42:16 AM
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Req. No. 1321 Page 5Every fact on this page links to its source, starting with the official bill record.