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OklahomaSB 680Oklahoma 2026 Regular SessionSenateWALLET

Tobacco products; modifying definition; providing exemption. Effective date.

Sponsored By: Lonnie Paxton (Republican)

Became Law

Senate Committee

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Half-tax exemption for heated cigarettes

Beginning November 1, 2026, cigarettes intended to be heated rather than burned get a 50% exemption from applicable cigarette taxes. The Oklahoma Tax Commission must have stamps ready for these products by that date and set rules for the exemption. The law does not guarantee lower prices for buyers.

Cigarette tax rules cover heated tobacco

Beginning November 1, 2026, Oklahoma's cigarette definition includes products intended to be heated or burned, weighing up to three pounds per 1,000 cigarettes. These products enter the cigarette-tax system. Wholesale rules include direct manufacturer purchases, at least 75% of gross sales at wholesale, and wholesale stock at the main business location. Retailer rules cover consumer sellers and people holding more than 1,000 cigarettes outside the wholesale or retailer classifications. Delivery-sale rules cover Oklahoma consumer orders placed by phone, mail, or internet, or delivered by mail or delivery service, wherever sellers are located. Nonpersonal-use sales to wholesalers or retailers are excluded; first in-state use of untaxed cigarettes received from outside Oklahoma also falls under the tax rules.

One tribal cigarette tax exemption ends

Beginning November 1, 2026, the law removes one cigarette-tax exemption for sales to federally recognized tribes or their licensees. The removed exemption applies when the tax identified in Section 4 of the act has been paid. Separate tribal compact exemptions remain when the required payments in place of taxes are made. Exemptions for sales to the United States, veterans hospitals, and state-operated veterans homes also remain.

Sponsors & Cosponsors

Sponsor

  • Lonnie Paxton

    Republican • Senate

Cosponsors

  • Trey Caldwell

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 112 • No: 70

House vote • 3/24/2026

THIRD READING

Yes: 52 • No: 38

House vote • 4/15/2025

DO PASS

Yes: 15 • No: 12

House vote • 4/7/2025

DO PASS

Yes: 7 • No: 1

Senate vote • 3/26/2025

THIRD READING

Yes: 31 • No: 14 • Other: 1

Senate vote • 2/24/2025

Committee vote: Revenue & Taxation

Yes: 7 • No: 5

Actions Timeline

  1. Becomes law without Governor's signature 04/01/2026

    4/1/2026Senate

  2. Sent to Governor

    3/25/2026Senate

  3. Signed, returned to Senate

    3/25/2026House

  4. Enrolled, to House

    3/25/2026Senate

  5. Referred for enrollment

    3/24/2026Senate

  6. Signed, returned to Senate

    3/24/2026House

  7. Third Reading, Measure passed: Ayes: 52 Nays: 38

    3/24/2026House

  8. General Order

    3/24/2026House

  9. CR; Do Pass Appropriations and Budget Committee

    4/17/2025House

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

    4/8/2025House

  11. Referred to Appropriations and Budget General Government Subcommittee

    4/2/2025House

  12. Second Reading referred to Appropriations and Budget

    4/1/2025House

  13. First Reading

    3/27/2025House

  14. Engrossed to House

    3/27/2025Senate

  15. Referred for engrossment

    3/26/2025Senate

  16. Measure passed: Ayes: 31 Nays: 14

    3/26/2025Senate

  17. General Order, Considered

    3/26/2025Senate

  18. Placed on General Order

    2/26/2025Senate

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

    2/24/2025Senate

  20. Coauthored by Representative Caldwell (Trey) (principal House author)

    2/12/2025Senate

  21. Second Reading referred to Revenue and Taxation

    2/4/2025Senate

  22. Authored by Senator Paxton

    2/3/2025Senate

  23. First Reading

    2/3/2025Senate

Bill Text

  • Enrolled (final version)

    3/25/2026

    PDF

  • Floor (House)

    4/17/2025

    PDF

  • House Committee Report

    4/17/2025

    PDF

  • House Committee Report

    4/8/2025

    PDF

  • Engrossed

    3/27/2025

    PDF

  • Floor (Senate)

    2/25/2025

    PDF

  • Senate Committee Report

    2/24/2025

    PDF

  • Introduced

    1/14/2025

    PDF

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