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OklahomaSB 1400Oklahoma 2026 Regular SessionSenateWALLET

Sales tax exemption; combining certain exemptions for aircraft maintenance, manufacturing, and parts. Effective date.

Sponsored By: Dave Rader (Republican)

Signed by Governor

Senate Committee

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Bill Overview

Analyzed Economic Effects

28 provisions identified: 27 benefits, 0 costs, 1 mixed.

Big sales-tax break for disabled veterans

If you are an Oklahoma resident and a veteran certified as 100% permanently service‑connected disabled and registered with the state, up to $25,000 of your yearly purchases are exempt from sales tax. An unremarried surviving spouse can get up to $1,000 in exempt purchases each year. The Tax Commission may require a sworn statement and can recover excess with penalty and interest.

Sales-tax break for modular homes

If you buy a modular dwelling that is built in a factory and permanently attached to land, 45% of its price is exempt from sales tax. The unit is also not subject to motor vehicle excise tax.

Major tax relief for aircraft facilities

Large aircraft maintenance or manufacturing facilities that meet construction and hiring tests can buy many items tax‑free. Qualified projects also get refunds of state and local sales tax paid on materials used to build or expand the facility, with interest tied to the three‑month U.S. Treasury Bill rate. Refund claims must be filed within 36 months of purchase, and an employment certification must be filed within 60 months of the first purchase. Only purchases after January 18, 1991, qualify for refunds.

Most changes start January 1, 2027

The law takes effect on January 1, 2027, unless a part names a different date. That is when these sales‑tax exemptions and refund rules begin to apply.

Bullion and coins are tax-free

Sales of investment bullion and legal‑tender coins are not taxed. The item must be sold for its precious‑metal value. Jewelry and artistic metal items are still taxable.

Charter and tour bus trips tax-free

Intrastate charter and tour bus transportation is not taxed if the vehicle can lawfully carry more than 18 people and is used for hire. Regularly scheduled public bus services are not covered.

Co-ops: no tax on build materials

Rural electric cooperatives do not pay sales tax on materials used to construct or expand their facilities. Contractors and subcontractors with existing contracts for the project are treated the same for this exemption.

Tax break for electronics refurbishers

Repair businesses do not pay sales tax on parts, goods, or services used to repair, refit, or refurbish devices bought from the original manufacturer, when the devices will be sold to retail customers.

Tax breaks for tech and web portals

Computer‑services firms in listed industry groups can buy machinery and equipment tax‑free if enough sales are to out‑of‑state buyers and they file a yearly affidavit. Web search portals (NAICS 519130) in Oklahoma do not pay tax on goods and equipment if at least 80% of revenue is from out‑of‑state buyers or consumers.

Wholesale and resale purchases tax-free

If you buy items to resell and you hold a valid sales‑tax permit, you do not pay state sales tax on those purchases. This does not cover goods you buy for your own use or peddlers without a place of business and a permit. Special rules apply to certain fuel vendors and rail shipments out of state.

Rail purchases and leases tax relief

Leases of rail cars used to haul coal to Oklahoma coal‑fired power plants are tax‑exempt starting January 1, 1991. Sales of railroad track spikes made and sold for use in Oklahoma track work are exempt. From July 1, 2019 to July 1, 2024, manufacturers’ sales or leases of rolling stock to common carriers for public service, including certain maintenance and retrofits, were exempt.

E-delivered software is tax-free

Prewritten software that you receive electronically is not taxed. Delivery must be by a method other than a physical storage device.

Estate sale buys can be tax-free

Items sold at an estate sale on the decedent’s former home are tax‑free if the sale is within six months of death and lasts no more than three days. The seller cannot be required to hold a transient merchant license or sales‑tax permit. Only estate property qualifies.

Gun safes and locks tax-free

Starting January 1, 2027, sales of firearm safety devices are not taxed. Covered items include safes, lock boxes, trigger or barrel locks, and certain built‑in locking devices that meet the law’s definition.

No state tax on home energy

The state sales tax does not apply to gas and electricity sold only for home use. Delivery and transmission for home energy are also exempt from state tax. City or county sales taxes can still apply.

No tax on chiropractor-sold supplements

Vitamins, minerals, and dietary supplements you buy at a licensed chiropractor’s office are not taxed when sold to that chiropractor’s patient at the office. Prescription drugs and medicines follow normal rules and are not part of this exemption.

No tax on prescriptions and prosthetics

Medicines you buy with a valid prescription are not taxed. Insulin and medical oxygen are also exempt. Prosthetic devices for your own use are exempt, but eyeglasses, contact lenses, and hearing aids are not.

SNAP groceries stay tax-free

Food you buy with SNAP benefits is not charged state sales tax. The exemption covers only the part paid with SNAP. If federal law ever ends this rule, the state exemption stops.

Farm inputs for raising animals tax-free

If you regularly raise worms, fish, insects, or other animals for sale, you do not pay sales tax on eggs, feed, supplies, machinery, and equipment for that business. You must sign a written certification on the invoice. The seller must certify to the Tax Commission that the price was reduced to pass along the exemption. Breaking these rules is a misdemeanor.

Heavy equipment rental recovery fee exempt

Recovery fees charged on heavy‑equipment rentals are exempt from sales tax. The text provided is partial, so specific limits or conditions are not listed here.

No tax on returnable drum transfers

Transfers of returnable oil and chemical drums are exempt when the recipient is not in the business of selling or transferring such drums.

Restaurants: no tax on takeout supplies

Restaurants and other meal vendors do not pay state sales tax on one‑way items like utensils, napkins, paper cups, and disposable hot containers they buy for food service.

Tax relief for meal and health nonprofits

501(c)(3) groups that deliver meals to elderly or homebound people, or that get Older Americans Act funding for senior nutrition, can buy food and supplies tax‑free. 501(c)(3) food‑bank groups that collect and distribute food and basics to the needy are also exempt, but not for profit‑making sales. Independent nonprofit biomedical research foundations that provide educational programs, and independent nonprofit community blood banks headquartered in Oklahoma, are exempt on covered purchases.

Electricity tax breaks for oil operations

Electricity and related delivery are tax‑exempt for reservoir dewatering projects that started on or after July 1, 2003, have an initial water‑to‑oil ratio of at least 5:1, and are classified as dewatering units. State sales tax is also exempt on electricity used by a Commission‑designated operator for enhanced recovery when recovered oil after the work is no more than 1% by volume. Local city or county taxes still apply to the enhanced recovery exemption.

Film and TV production purchases exempt

Tangible goods and services used in eligible motion picture or TV productions are not taxed on or after July 1, 1996. Production companies must file the paperwork the Tax Commission requires.

Fuel and supplies for vessels tax-free

Diesel fuel bought for use by commercial vessels, barges, and other commercial watercraft is not taxed. Materials and supplies loaded on ships, motor vessels, or barges used in interstate or international commerce are also exempt when used in operation or become component parts.

Many ads and event programs tax-free

Sales of programs and ads for sporting or entertainment events are not taxed for sales on or after January 1, 2001. Many other ads delivered by internet, electronic displays, radio, TV, cable, satellite, and the servicing of ad devices are also tax‑exempt. Event ads are excluded from the separate other‑advertising exemption paragraph.

Wireless promo phones purchases tax-free

Vendors do not pay sales tax when they buy wireless equipment they later give away or discount for customers as part of a service promotion. This rule took effect May 6, 1992.

Sponsors & Cosponsors

Sponsor

  • Dave Rader

    Republican • Senate

Cosponsors

  • Daniel Pae

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 224 • No: 30

House vote • 5/6/2026

THIRD READING

Yes: 74 • No: 14

House vote • 4/21/2026

DO PASS

Yes: 24 • No: 1

House vote • 4/21/2026

DO PASS

Yes: 24 • No: 1

House vote • 4/8/2026

DO PASS

Yes: 9 • No: 0

House vote • 4/8/2026

DO PASS

Yes: 9 • No: 0

Senate vote • 3/25/2026

THIRD READING

Yes: 34 • No: 12

Senate vote • 3/25/2026

SENATE

Yes: 41 • No: 1

Senate vote • 2/9/2026

Committee vote: Revenue & Taxation

Yes: 9 • No: 1

Actions Timeline

  1. Approved by Governor 05/12/2026

    5/13/2026Senate

  2. Sent to Governor

    5/6/2026Senate

  3. Signed, returned to Senate

    5/6/2026House

  4. Enrolled, to House

    5/6/2026Senate

  5. Referred for enrollment

    5/6/2026Senate

  6. Signed, returned to Senate

    5/6/2026House

  7. Third Reading, Measure passed: Ayes: 74 Nays: 14

    5/6/2026House

  8. General Order

    5/6/2026House

  9. CR; Do Pass Appropriations and Budget Committee

    4/23/2026House

  10. Recommendation to the full committee; Do Pass Appropriations and Budget Finance Subcommittee

    4/13/2026House

  11. Referred to Appropriations and Budget Finance Subcommittee

    3/31/2026House

  12. Second Reading referred to Appropriations and Budget

    3/30/2026House

  13. First Reading

    3/26/2026House

  14. Engrossed to House

    3/26/2026Senate

  15. Referred for engrossment

    3/25/2026Senate

  16. Measure passed: Ayes: 34 Nays: 12

    3/25/2026Senate

  17. Ayes: 41 Nays: 1

    3/25/2026Senate

  18. Advanced to Third Reading

    3/25/2026Senate

  19. General Order, Considered

    3/25/2026Senate

  20. Placed on General Order

    2/12/2026Senate

  21. Withdrawn from Appropriations committee

    2/10/2026Senate

  22. Referred to Appropriations

    2/9/2026Senate

  23. Reported Do Pass Revenue and Taxation committee; CR filed

    2/9/2026Senate

  24. Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee

    2/3/2026Senate

  25. Coauthored by Representative Pae (principal House author)

    2/2/2026Senate

Bill Text

  • Enrolled (final version)

    5/6/2026

    PDF

  • Floor (House)

    4/23/2026

    PDF

  • House Committee Report

    4/23/2026

    PDF

  • House Committee Report

    4/8/2026

    PDF

  • Engrossed

    3/26/2026

    PDF

  • Floor (Senate)

    2/11/2026

    PDF

  • Senate Committee Report

    2/9/2026

    PDF

  • Introduced

    12/30/2025

    PDF

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