HB 3751 expands Oklahoma's homestead property tax exemption to include mobile homes and site-built homes (whether on owned or rented/leased land) when occupied as a primary residence. It clarifies that owners must actually reside there to qualify, with special provisions for tornado victims (2013+ disasters with federal disaster declarations). The bill defines rural homesteads as up to 160 acres and urban homesteads as no more than 1 acre. It takes effect January 1, 2027.
HB 4318 allows Oklahoma businesses collecting sales and use tax to deduct a small amount for record-keeping and filing costs. Specifically, it authorizes a 1% deduction on the tax owed (capped at $1,000 per month per business account), but excludes deductions for direct payment permits or late filings (unless due to a declared natural disaster). The bill applies directly to businesses that collect and remit sales/use tax in Oklahoma, covering both the tax calculation process and monthly reporting requirements. It becomes effective November 1, 2026.
HB 1171 modifies Oklahoma's sales tax exemption rules for nonprofits by requiring organizations to have annual gross revenue under $500,000 to qualify for exemption on tangible personal property and services. It specifically excludes alcohol and tobacco sales from the exemption, meaning nonprofits selling these items cannot claim tax-free status. This change directly affects small nonprofits that previously qualified for full exemption but now must meet the revenue threshold to maintain tax-free status on other sales. The bill also updates existing exemption categories but does not alter the core tax treatment for qualifying nonprofits beyond the revenue limit and alcohol/tobacco exception.
HB 1572 modifies Oklahoma's sales tax apportionment to increase funding for tourism. It removes a $5 million annual cap on the Oklahoma Tourism Promotion Revolving Fund, raises the percentage of sales tax revenue allocated to tourism from 0.87% to 1.0% for fiscal years 2026 and beyond, and changes the distribution to 36% for Promotion, 64% for Capital Improvement, and $6.6 million for Route 66. The bill also eliminates restrictions prohibiting tourism funds from covering salaries. These changes directly affect the Oklahoma Tourism Promotion, Capital Improvement, and Route 66 Commission funds, increasing their available resources for operations and projects.
HB 2646 eliminates a limitation on taxpayers deducting wagering income when calculating Oklahoma taxable income, directly affecting individuals and businesses claiming such deductions. The bill amends Oklahoma Statute 68 O.S. § 2358 to allow full itemization of wagering income without prior restrictions. It also updates statutory references and adjusts tax year calculations for net operating losses. The bill was referred to the Governor but received a pocket veto on June 15, 2025, meaning it did not become law.
HB 1378 would have expanded Oklahoma's sales tax exemptions for agriculture by adding timber to the definition of "agricultural products." This change would have exempted sales of timber (including timber products used in farming) from sales tax, directly affecting Oklahoma agricultural businesses, farmers, and timber producers. The bill amended existing tax code provisions that already exempted farm products, livestock, feed, fertilizer, machinery, and other agricultural supplies. However, the bill was vetoed by the Governor on June 10, 2025, and did not become law.
HB 2753 expands Oklahoma's Rural Jobs Act by adding a new $200 million annual pool of state tax credits for rural investments, effective July 1, 2025, beyond the existing $15 million annual cap. The bill requires that at least 10% of each investment must come from local sources like employees or affiliates, and sets a 90-day deadline for rural funds to secure capital after certification. It also establishes a 15-business-day timeline for the Department to determine if a business qualifies for investment, with automatic eligibility if no decision is made by day 20. This expansion aims to increase funding for rural economic development projects by making more tax credits available to eligible businesses and rural investment funds.
HB 2610 increases Oklahoma's tax credit for nonrecurring adoption expenses from 10% to 15% of eligible costs, raising the maximum annual credit to $3,000 for single filers or married individuals filing separately, and $6,000 for married couples filing jointly. The credit applies to Oklahoma resident taxpayers who pay for adoption-related expenses such as fees, court costs, medical expenses, and travel, but excludes attorney fees in contested adoptions and home renovations. The Oklahoma Tax Commission will establish rules for verifying qualifying expenses. This change takes effect January 1, 2026.
HB 2758 creates the "Preserving and Advancing County Transportation Fund" (PACT Fund) to allocate oil and gas tax revenues directly to Oklahoma counties for road and bridge maintenance. The fund prioritizes counties with the lowest current road maintenance funding, directing two-thirds of its money to help all counties reach a $4,000 per road mile target for highway upkeep. The remaining one-third is split equally between funding road miles based on statewide totals and allocating funds for county bridges using the most recent ODOT bridge inventory data. This bill directly affects all Oklahoma counties by providing a dedicated, ongoing source of funding for their local road and bridge systems.
SB 324 creates the Oklahoma Research and Development Rebate Fund to provide businesses with a 5% reimbursement for qualified research expenses incurred within the state. Eligible businesses must submit applications demonstrating research activities occurred in Oklahoma and have filed all required state tax returns. The program, administered by the Oklahoma Department of Commerce, reimburses up to $20 million annually, with payments prorated if demand exceeds available funds. This directly affects businesses conducting research in Oklahoma that claim expenses on federal Form 6765.
