HB 4346 Oklahoma House · 2026 Regular Session

Revenue and taxation; sales tax; agriculture exemption; proof of eligibility; effective date.

HB 4346 modifies Oklahoma's sales tax exemption for agricultural purchases by requiring specific proof of eligibility. It establishes an agricultural exemption permit obtained through county assessors (verifying farming property and no tax delinquencies) or alternative documents like IRS Schedule F forms or Farm Service Agency paperwork. The bill also allows vendors to honor out-of-state permits from Texas, Arkansas, Kansas, New Mexico, or Missouri for qualifying agricultural purchases. Additionally, it requires permit holders to notify vendors of non-exempt purchases to maintain their exemption, with a $500 penalty for misuse on non-qualifying items.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

House Passage

Mar 2026

Senate Passage

Governor

Introduced Feb 2, 2026 Last action Apr 27, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Floor (House) → Floor (Senate) · 4 edits

MODERATE

The bill was amended to transition from a House draft to a Senate floor version, incorporating specific committee amendments. The most significant substantive change is the addition of new provisions for out-of-state custom farmers and permit holders, clarifying how they must prove eligibility and ensuring Oklahoma recognizes valid out-of-state permits. These additions aim to streamline tax exemptions for agricultural operations that cross state lines or operate remotely.

Scope change

The bill's scope was expanded to explicitly address scenarios involving out-of-state residents engaged in custom farming within Oklahoma and to formalize the recognition of valid out-of-state agricultural exemption permits.

ELIGIBILITY

New requirements were added for out-of-state custom farmers to provide proof of residency, contact details, and a sworn certification that purchased goods will be used in agricultural production.

A new provision allows permit holders who purchase goods regularly to provide initial proof of eligibility once, rather than for every single transaction, provided they notify vendors of any non-exempt purchases.

ENFORCEMENT

New rules were established requiring out-of-state permit holders to provide export documentation if goods are shipped out of state, and penalties for failing to notify vendors of non-exempt sales.

DEFINITION

A new clause was added stating that Oklahoma will recognize and honor valid out-of-state agricultural exemption permits or equivalent authorizations.

Floor votes · House Mar 25, 2026

How they voted

82–14

Passed · 4 other

Total votes 100

Mar 25, 2026

D Democratic18

18 Yea

100% Yea

R Republican82

64 Yea 14 Nay 4

78% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 22, 2026

Upper · Passed

Reported Do Pass as amended Appropriations committee; CR filed

upper

Apr 13, 2026

Committee

Referred to Appropriations

upper

Apr 13, 2026

Upper · Passed

Reported Do Pass as amended Revenue and Taxation committee; CR filed

upper

Mar 26, 2026

Introduced

First Reading

upper

Mar 26, 2026

Lower · Passed

Engrossed, signed, to Senate

lower

Mar 25, 2026

Committee

Referred for engrossment

lower

Mar 25, 2026

Lower · Passed

Third Reading, Measure passed: Ayes: 81 Nays: 14

lower

Mar 25, 2026

Lower · Passed

Amended

lower

Mar 9, 2026

Lower · Passed

CR; Do Pass, as amended, Appropriations and Budget Committee

lower

Feb 9, 2026

Committee

Referred to Appropriations and Budget

lower

Feb 2, 2026

Introduced

First Reading

lower

2 primary · 0 co-sponsors