Insurance premium tax; modifying rate for certain fiscal years; limiting home office credit to certain fiscal years. Effective date. Emergency.

SB 1401 modifies Oklahoma's insurance premium tax rates, reducing the rate from 2.25% to 1.96% effective July 1, 2026, for most insurers. It excludes annuity contract payments and Medicaid-related fees from taxable premiums, clarifying these are no longer subject to the tax. The bill also specifies that life insurance policies covering employees (up to $100,000) will be taxed at the reduced rate starting July 2026, with a small additional tax on amounts exceeding that threshold. Proceeds from these taxes for Medicaid-related policies must be deposited into the Medicaid Health Improvement Revolving Fund, bypassing standard state fund apportionment rules.