Bill > SB736

This bill establishes the Health Care Sharing Ministry (HCSM) Tax Parity Act, which creates a tax deduction for members of health care sharing ministries in Oklahoma starting in tax year 2026. An HCSM is defined as a not-for-profit, tax-exempt organization that brings together members with shared ethical or religious beliefs to voluntarily share medical expenses, without functioning as traditional insurance. The bill allows qualified Oklahoma residents who have been active HCSM members for at least one month to deduct their health care sharing expenses from their state adjusted gross income. This applies to self-employed individuals, employer contributions, and personal membership costs. To claim the deduction, individuals must submit documentation of their HCSM membership and contributions, and the Oklahoma Tax Commission will develop specific forms and guidelines. The bill also stipulates that funds received from HCSM members to cover medical expenses will not be considered taxable income. To prevent misuse, the legislation includes penalties for fraudulent claims, such as repayment of improperly claimed tax benefits, a $500 civil penalty, and a three-year prohibition on claiming the deduction. The Oklahoma Tax Commission will oversee the implementation and provide annual reports to the Legislature about the deduction's usage and impact.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb736&Session=2600