Budget & Taxes

vetoed · Oklahoma · House May 14, 2026

HB 4432: Revenue and taxation; adjustments; eliminating limitation on itemization of wagering losses for certain tax years; effective date.

HB 4432 amends Oklahoma's tax code to eliminate a limitation on itemizing wagering income for tax purposes and updates statutory references throughout the Oklahoma Revenue and Taxation Act. It specifically adjusts how businesses calculate Oklahoma taxable income, particularly regarding federal net operating loss deductions and the allocation of income from property or business activities. The bill clarifies that Oklahoma net operating losses must be separately determined using federal rules but without requiring a federal loss, and it updates rules for allocating income from intangible property and certain business activities. This is a procedural update to the tax code, not a new tax or policy change, and it affects businesses and individuals filing Oklahoma income taxes. The bill was introduced in 2026 but has not advanced beyond committee referral.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates limitation on itemizing wagering income deductions, reducing state tax revenue through business tax breaks.90% confidence

Sub-Topics Business Taxes Revenue

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1851: Sales tax; providing exemption for public trusts with a municipality beneficiary. Effective date.

SB 1851 amends Oklahoma's sales tax law to add a new exemption for sales to "public trusts in which a municipality is the beneficiary." This means purchases made by these public trusts (funds managed for municipal purposes) are exempt from state sales tax. The bill specifically updates Section 1356 of Title 68, Oklahoma Statutes, to include this exemption category. It directly affects municipalities and public trusts they oversee, removing sales tax liability on qualifying purchases.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates sales tax exemption for municipal public trusts, reducing state tax revenue, weakening state budget.90% confidence

Sub-Topics Sales Tax

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1994: Sales tax; providing sales tax exemption for certain organizations that rescue and shelter animals. Effective date.

SB 1994 would amend Oklahoma's sales tax code to exempt qualifying animal rescue and shelter organizations from paying sales tax on purchases of tangible personal property or services. This exemption directly affects nonprofit groups focused on rescuing, sheltering, and caring for animals, such as local humane societies or animal welfare centers. The bill adds a new provision to the existing tax exemption list, specifying that these organizations qualify for the same tax relief previously available to other nonprofits under Section 1356. The change would take effect upon enactment, allowing these groups to reduce operational costs by avoiding sales tax on necessary supplies and services.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates sales tax exemption for animal shelters, reducing state tax revenue and weakening budget collection per tax code amendment.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Oklahoma · Senate Feb 3, 2026

SJR 29: Constitutional amendment; prohibiting extension of credit or funding without a clearly defined public purpose.

SJR 29 proposes a constitutional amendment that would prohibit Oklahoma state and local governments from lending credit, guaranteeing debt, or providing financial subsidies to private individuals, corporations, or associations - unless the expenditure serves a "clearly defined public purpose approved by law." This would directly affect state agencies and local governments when considering financial support for private entities. The amendment, if approved by voters, would require such support to have explicit public purposes defined in law, preventing broad or undefined financial commitments. It is a procedural resolution awaiting voter approval.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts state/local government funding of private entities without clear public purpose, limiting fiscal spending discretion per constitutional amendment.95% confidence

Sub-Topics Government Spending

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in committee · Oklahoma · Senate Feb 3, 2026

SB 1804: Sales tax holiday; holiday exemption for firearms and ammunition. Emergency.

SB 1804 exempts the sale of firearms and ammunition from Oklahoma's sales tax on July 3, 2026. This directly affects consumers purchasing guns, rifles, pistols, or shotguns on that specific date. The bill defines "firearm" broadly to include common weapons and creates a temporary tax holiday for these items. The exemption applies only to purchases made on July 3, 2026, as specified in the legislation.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates temporary sales tax exemption for firearms/ammo, reducing state revenue on July 3, 2026, weakening tax collection for that category.85% confidence

Sub-Topics Procurement Sales Tax

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signed · Oklahoma · Senate May 29, 2025

SB 287: Income tax; modifying tax years for aerospace tax credit. Effective date.

SB 287 extends Oklahoma's aerospace tax credit program, allowing employers in the aerospace sector to claim credits for tuition reimbursement and compensation paid to qualified employees through 2031. The credit for tuition is 50% of the cost (capped at the average public tuition in Oklahoma) for the first four years of employment, while the credit for compensation is 10% for employees with Oklahoma degrees or 5% for out-of-state graduates, applicable for the first five years of employment. This bill affects aerospace businesses and certain educational institutions, specifically targeting employees with ABET-accredited aerospace engineering degrees or licensed engineers.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill extends tax credit for aerospace sector, reducing state revenue through targeted tax break, weakening budget revenue stream.95% confidence

Sub-Topics Income Tax Tax Credits

signed · Oklahoma · House May 29, 2025

HB 2797: Health Care Authority; prohibiting use of certain methodology; audits; fraud reporting; requiring joint collaboration between Department of Mental Health and Substance Abuse Services and Department of Human Services; duties; emergency.

HB 2797 prohibits Oklahoma's Health Care Authority (OHCA) from using statistical methods like extrapolation to audit Medicaid home and community-based service claims, which could require providers to repay overpayments. It invalidates all past audits using these methods (January 2020-November 2025) and voids related repayment demands. The bill requires OHCA and the Department of Human Services to jointly develop new audit standards and provide training for providers by November 2027. It also mandates compliance with existing fraud reporting rules and updates audit responsibilities for Medicaid waiver programs.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill voids Medicaid repayment demands, reducing state revenue collection and directly impacting budget management.85% confidence ✓ HealthcareSupports HealthcareProhibits audits requiring Medicaid providers to repay claims, invalidating past repayment demands and protecting provider funding, which supports healthcare access and provider stability.85% confidence

Sub-Topics Audits & Accountability Medicaid Mental Health Substance Abuse

passed · Oklahoma · Senate Mar 31, 2026

SB 1395: Income tax credit; limiting new jobs tax credit to certain tax years for manufacturers; modifying carryforward. Effective date.

SB 1395 modifies Oklahoma's new jobs tax credit program for manufacturers. The bill restricts the credit to specific tax years and changes how unused credits can be carried forward to future years. Manufacturers must now submit an application and receive approval before claiming the credit. These changes update the program's eligibility and administrative requirements.

Topics ✗ Budget & TaxesOpposes Budget & TaxesRestricts manufacturer tax credit eligibility and carryforward rules, limiting tax benefits for businesses rather than expanding them.90% confidence

Sub-Topics Income Tax Tax Credits

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signed · Oklahoma · Senate Apr 13, 2026

SB 227: Gross production tax; property exempt from ad valorem tax as used in the production of material subject to gross production tax; expanding exempt property. Effective date.

Oklahoma Senate Bill 227 modifies tax exemptions for oil and gas producers by limiting eligibility for gross production tax refunds to specific years (2005-2013 and 2022-2024). It caps annual refunds at $12.5 million for 2015-2016 and $10 million for 2022-2024, requiring producers to qualify as "economically at-risk" leases based on production volume and profitability thresholds. Producers must submit documentation to the Oklahoma Tax Commission to claim refunds for prior-year production, with claims due by the bill’s effective date for 2024. The bill directly affects oil/gas operators seeking refunds on past production under these revised rules.

Topics ✗ Budget & TaxesOpposes Budget & TaxesLimits tax refunds for oil/gas producers by capping annual refunds and adding eligibility requirements, restricting tax exemptions.90% confidence

Sub-Topics Business Taxes

signed · Oklahoma · Senate May 15, 2025

SB 1112: Lodging tax; excluding discounted or comped rooms or lodging from gross receipts upon which a lodging tax is levied. Effective date.

This Oklahoma bill changes how lodging tax is calculated by excluding free rooms (comped) and discounted rooms where hotels receive no payment from taxable income. It applies to all counties and cities collecting lodging tax under existing law. Hotels will no longer owe tax on rooms provided at no cost to customers or employees, or discounted rooms without third-party reimbursement. The change takes effect January 1, 2026.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExcludes comped/discounted rooms from taxable income, reducing state lodging tax revenue and weakening tax base for budget purposes.90% confidence