HB 1280 (2025) requires Oklahoma school districts to spend at least 50% of their annual budget on classroom instruction starting in 2025-2026. If a district falls below this threshold, it must increase instructional spending by 2% annually until reaching 50%, or face a written warning and, after four years of non-compliance, a permanent 2% annual teacher pay raise for each year missed. The bill defines "annual budget" to exclude bond sales, fundraisers, and non-educational grants, and "instructional expenditures" per federal standards. The bill failed to pass (36-57) on March 27, 2025, so it is not law.
This Oklahoma bill creates a tax credit program to encourage converting old, vacant buildings into housing. Property owners can claim up to 50% of qualified costs (like environmental cleanup, code upgrades, or system repairs) for adaptive reuse projects on structures at least 30 years old that have been vacant or underutilized (with rent below 50% of market rate). The program has a $5 million annual cap on approved credits, with unused funds carried forward to future years. Credits cannot reduce tax liability below zero but may be carried forward for up to 10 years. The Oklahoma Department of Commerce and Tax Commission will administer the program and prioritize projects based on local housing needs.
HB 2033 creates a revolving fund called the "Community Health Center Access to Care Revolving Fund" within Oklahoma's State Department of Health. The fund, not limited by fiscal years, will use appropriated monies to increase access to care at federally authorized community health centers (as defined under 42 U.S.C. §330). The Department of Health can spend these funds to support such centers, with expenditures requiring State Treasurer warrants based on approved claims. The bill takes effect July 1, 2025, and was declared an emergency to allow immediate implementation.
SB 231 expands Oklahoma's August sales tax holiday to include additional school-related items. It adds school art supplies, school instructional materials (like reference books), and school computer supplies to the list of exempt items, alongside existing clothing, footwear, and sports equipment. The exemption applies to purchases under $100 during the three-day holiday period (first Friday in August to Sunday following). This directly affects students, parents, and schools purchasing these specific educational items during the tax-free window. The bill does not change the existing tax holiday dates or price threshold.
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 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.
