SB 240 modifies Oklahoma's school funding formula by increasing the percentage of state education funds retained for midyear adjustments from 1.5% to 4%. It updates how State Aid is calculated using actual tax collections, adjusted assessed valuation, and weighted average daily membership (ADM) from the previous year. The bill affects all Oklahoma public school districts by changing their allocation method and removing outdated provisions related to tax calculations and reporting requirements. These changes aim to improve the accuracy of funding distributions while streamlining administrative processes.
SB 1124 requires Oklahoma school districts (excluding technology centers) to set property tax levies high enough to fully redeem bonds and pay interest within the originally proposed timeframe. If a bond is redeemed early at a discount (below par), the district must reduce its tax levy to zero for one full tax year and cannot issue new bonds for the same purpose for one year. The State Auditor enforces these rules, and non-compliant districts must transfer 10% of state aid to an education fund, or face limits on future bond issuance. The bill takes effect November 1, 2025.
SB 474 requires businesses that buy goods to resell (like wholesalers) to obtain a free permit from the Oklahoma Tax Commission to claim sales tax exemption on those purchases. Vendors must honor valid permits, and claiming exemption without one is a misdemeanor punishable by up to $1,000. Permits expire June 30 annually and can be verified electronically by sellers through a system developed by the Tax Commission. This replaces the previous system where businesses could self-claim the exemption without verification. The bill takes effect June 1, 2026.
SB 38 modifies Oklahoma's sales tax revenue allocation to provide a fixed annual amount for the Oklahoma Historical Society. It specifies that starting in fiscal year 2026, 0.06% of sales tax revenue will be directed to the Historical Society's Capital Improvement and Operations Revolving Fund, capped at $1,880,553.25 annually. This change directly affects the Historical Society's funding, replacing the previous cap based on 2015 apportionment amounts. The bill does not alter other tax revenue allocations for education, tourism, or general funds.
SB 736 creates the "Health Care Sharing Ministry Tax Parity Act," allowing Oklahoma residents who are active members of qualifying health care sharing ministries (HCSMs) to deduct their contributions from their state income tax starting in 2026. It directly affects Oklahoma residents who have been active HCSM members for at least one month during the tax year, treating their contributions like health insurance premiums for tax purposes. The bill requires the Oklahoma Tax Commission to develop forms for claiming the deduction, prohibits taxing reimbursements from HCSMs, and mandates annual reporting on the program's impact.
SB 47 modifies Oklahoma's annual license fee for coin-operated music and amusement devices, reducing the fee from $75 to $37.50 per machine. It directly affects businesses operating these devices, such as arcades or music machines, by lowering their annual licensing cost. The bill also updates fee structures for other coin-operated devices (like vending machines), clarifies billing for bulk vending devices, and makes statutory language gender-neutral. It specifies that these fees replace applicable sales taxes, and includes provisions for seasonal events like fairs. The changes take effect January 1, 2026.
SB 689 modifies Oklahoma's property tax exemption for qualifying manufacturing facilities by adjusting the minimum investment threshold for eligibility to $500,000 (adjusted annually for inflation via the Consumer Price Index) and adding a new wage requirement. Facilities seeking exemption must now pay new employees an average annual wage meeting Oklahoma Quality Jobs Program standards for the year the property was placed in service. This bill directly affects manufacturing facilities, including those in aircraft repair, computer services, distribution centers, and custom order manufacturing, by changing how they qualify for a five-year property tax exemption. It updates definitions, clarifies payroll requirements, and requires annual publication of the adjusted investment threshold by the Oklahoma Tax Commission.
