OKLAHOMA CITY – On Wednesday, the Senate approved Senate Bill 1075 to reinstate the full sales tax exemption on motor vehicles and tractor trailers. The Legislature removed the 1.25% of the exemption in 2017, but Sen. Kim David, R-Porter, said with revenues at record highs, it’s time to restore the much-needed tax relief for Oklahomans.
“Ever since we removed part of this exemption to balance the state budget in 2017, it’s been our intention to fully restore the tax exemption on motor vehicles as soon as was fiscally responsible,” David said. “This year, we have historic revenues, so there is no better time to keep our promise to Oklahomans and provide this welcomed tax relief.”
SB 1075 now moves to the House for further consideration. If approved, it will go to the governor’s desk.
“Oklahomans have had to endure so much throughout the pandemic, including skyrocketing inflation,” David said. “The price of vehicles, like most other products, has climbed significantly. Eliminating this sales tax will lessen some of the financial burden for hardworking Oklahomans as our state and nation continue to recover from the economic impacts of the pandemic.”
If signed into law, the tax exemption would go into effect on July 1, 2022.