Senate Bill 1075 reestablishes the exemption on motor vehicle and tractor trailer sales tax. Currently, Oklahoma consumers are paying 1.25% on vehicle purchases because the exemption was removed to help bolster state revenues in 2017.
SB 1075 author Senator Kim David says the Legislature made a promise to restore the sales tax exemption when state revenues stabilized.
“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.”
David contends this comes at a time when Oklahomans are suffering under inflation.
“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.”
SB 1075 now heads to the House.
