All Roll Calls
Yes: 170 • No: 37
OklahomaSB 44Oklahoma 2026 Regular SessionSenateWALLET
Sales tax; extending sales tax exemption to contractors in connection to performance of a contract with a tax exempt entity. Effective date.
Sponsored By: Dave Rader (Republican)
Signed by Governor
Senate Committee
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Bill Overview
Analyzed Economic Effects
17 provisions identified: 17 benefits, 0 costs, 0 mixed.
Contractors pay no tax on exempt jobs
Contractors and subcontractors do not pay sales tax on items and services needed for an exempt‑entity contract. They must show the entity’s Oklahoma Tax Commission exemption letter and contract proof, and the seller keeps copies. Beginning November 1, 2026, this also covers church construction jobs. This lowers project costs for small contractors.
Tax break for nonprofit home builders
Effective November 1, 2021, 501(c)(3) groups that mainly build or remodel and sell affordable homes and provide homeownership education to Oklahomans at or below 100% of HUD family median income do not pay sales tax on items and services used only for those projects. To qualify, they must serve public or charitable purposes and align funding, fees, and pay so staff act in clients’ best interests.
Tax break for health and disability nonprofits
Beginning November 1, 2026, 501(c)(3) member nonprofits of a qualifying health‑focused membership group do not pay sales tax on purchases if they provide proof of membership to the Tax Commission. 501(c)(3) groups that train and support people with developmental disabilities and use purchases only for charitable or educational work are exempt. 501(c)(3) groups whose main purpose is funding medical scholarships are exempt on food and snack sales to or by the group.
Sales tax relief tied to hospitals
Beginning November 1, 2026, tickets to events held by 501(c)(3) groups that support state‑licensed general hospitals are exempt from sales tax. Separately, from June 1, 2021 through July 1, 2022, nonprofit clinical practices in a joint operating agreement with the University Hospitals Trust were exempt on certain items and services bought from specified university entities.
No sales tax on short charity events
Beginning November 1, 2026, a 501(c)(3) can skip sales tax on tickets and donated items sold at a fundraiser that lasts five days or less and is not regular business. Tickets to an annual event run by a qualifying women’s charitable group are also tax‑free.
Some pro sports tickets are tax-free
Tickets to NBA games in city or county facilities are tax‑free for sales on or after September 21, 2005. NHL tickets in such facilities are tax‑free for sales on or after July 1, 2007. Beginning November 1, 2026, tickets to some non‑national pro leagues are also tax‑free if the league is centralized, not national, and pays players.
Sales tax break for top-rated child care
Beginning November 1, 2026, licensed child care centers with a 3‑star state rating or national accreditation that host on‑site universal pre‑K for four‑year‑olds through a public‑school contract do not pay sales tax on their purchases. Buyers acting for the center must certify the purchase on the invoice. Knowingly false certification is a misdemeanor with a fine equal to double the tax, up to 60 days in jail, or both.
Hospice construction materials are tax-exempt
Beginning November 1, 2026, 501(c)(3) hospices that serve low‑income people in a facility they own do not pay sales tax on materials and services used only for their construction projects. The exemption also covers their contractors and subcontractors. Buyers must list the hospice on the invoice. Knowingly false certification is a misdemeanor with a fine equal to double the tax or up to 60 days in jail.
Tax relief for disaster-recovery nonprofits
Effective November 1, 2021, 501(c) nonprofits formed in Oklahoma before January 1, 2022 that spend at least 75% of funds on restoring or replacing single‑family homes after disasters are exempt from sales tax on purchases. For sales on or after July 1, 2022, 501(c) nonprofits formed before January 1, 2019 that coordinate volunteers to repair single‑family homes statewide and offer services free to low‑income survivors are also exempt.
Fab Lab nonprofits pay no sales tax
Beginning November 1, 2026, 501(c)(3) Fab Labs verified by the MIT Fab Foundation and focused on community STEAM access are exempt from sales tax on purchases. They must comply with the Fab Charter.
Help for veteran transition and care packages
Effective July 1, 2022, 501(c)(3) groups that help veterans transition to civilian life do not pay sales tax if they show to the Tax Commission that over 70% of revenue funds transition services. Beginning November 1, 2026, the Blue Star Mothers can get a refund of the state sales tax on items they buy and ship to U.S. troops in combat zones. Sellers still collect the tax. The group must apply within 60 days after each quarter and certify shipments; false claims face a $500 penalty.
Sales tax breaks for veterans groups
Sales to the American Legion, Veterans of Foreign Wars (Oklahoma chapters), and the Oklahoma Women Veterans Organization are exempt from state sales tax beginning November 1, 2026. The National Guard Association of Oklahoma and the Marine Corps League of Oklahoma have been exempt since July 1, 2018. These groups pay no state sales tax on qualifying purchases.
Tax break for NRA-supporting foundation
Beginning November 1, 2026, a specified 501(c)(3) foundation that raises deductible donations to support NRA‑related public‑interest activities and its grassroots fundraisers are exempt from state sales tax on qualifying purchases.
Tax relief for child and family nonprofits
Beginning November 1, 2026, churches and qualifying 501(c)(3) groups can sell boxes of only staple foods without sales tax if organized to feed the needy or require volunteer service to buy food. Purchases by 501(c)(3) shelters for abused, neglected, or abandoned children are tax‑exempt. Since November 1, 2017, collaborative victim‑service centers that bring many agencies together and provide free help are tax‑exempt on purchases. Beginning November 1, 2026, in‑state 501(c)(3) groups focused on giving school supplies or clothing to underserved public school students are also tax‑exempt on purchases.
Temporary tax break for small museums
From November 1, 2021 through December 31, 2024, purchases by small, non‑accredited 501(c)(3) museums with budgets under $1,000,000 are exempt from state sales tax. The exemption ends after December 31, 2024.
Women’s service groups get tax break
Beginning November 1, 2026, local chapters of a national volunteer women’s service group dedicated to patriotism, preserving history, and better education for children do not pay sales tax on purchases if the national group has at least 168,000 members and 3,000 chapters.
YMCA and YWCA purchases are tax-free
Beginning November 1, 2026, local YMCA and YWCA organizations that are part of the national nonprofit do not pay sales tax on covered purchases.
Sponsors & Cosponsors
Sponsor
Dave Rader
Republican • Senate
Cosponsors
Scott Fetgatter
Republican • House
Roll Call Votes
House vote • 5/4/2026
THIRD READING
Yes: 62 • No: 26
House vote • 4/21/2026
DO PASS
Yes: 24 • No: 0
House vote • 4/21/2026
DO PASS
Yes: 24 • No: 0
House vote • 4/8/2026
DO PASS
Yes: 9 • No: 0
House vote • 4/8/2026
DO PASS
Yes: 9 • No: 0
Senate vote • 3/16/2026
THIRD READING
Yes: 36 • No: 8
Senate vote • 3/3/2025
Committee vote: Revenue & Taxation
Yes: 6 • No: 3
Actions Timeline
Approved by Governor 05/11/2026
5/11/2026SenateSent to Governor
5/5/2026SenateSigned, returned to Senate
5/5/2026HouseEnrolled, to House
5/5/2026SenateReferred for enrollment
5/4/2026SenateSigned, returned to Senate
5/4/2026HouseThird Reading, Measure passed: Ayes: 62 Nays: 26
5/4/2026HouseGeneral Order
5/4/2026HouseCR; Do Pass Appropriations and Budget Committee
4/23/2026HouseRecommendation to the full committee; Do Pass Appropriations and Budget Finance Subcommittee
4/13/2026HouseReferred to Appropriations and Budget Finance Subcommittee
3/31/2026HouseSecond Reading referred to Appropriations and Budget
3/30/2026HouseFirst Reading
3/17/2026HouseEngrossed to House
3/17/2026SenateReferred for engrossment
3/16/2026SenateMeasure passed: Ayes: 36 Nays: 8
3/16/2026SenateGeneral Order, Considered
3/16/2026SenateCoauthored by Representative Fetgatter (principal House author)
3/5/2025SenatePlaced on General Order
3/5/2025SenateReported Do Pass Revenue and Taxation committee; CR filed
3/3/2025SenateSecond Reading referred to Revenue and Taxation
2/4/2025SenateAuthored by Senator Rader
2/3/2025SenateFirst Reading
2/3/2025Senate
Bill Text
Enrolled (final version)
5/5/2026
Floor (House)
4/23/2026
House Committee Report
4/23/2026
House Committee Report
4/8/2026
Engrossed
3/17/2026
Floor (Senate)
3/4/2025
Senate Committee Report
3/3/2025
Introduced
12/18/2024
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