Bill > HB1834

This bill creates the Inhofe Disaster Savings Account Act, which establishes a special tax-advantaged savings account for Oklahoma residents to help cover expenses related to natural disasters. Individuals can open a single disaster savings account specifically for their primary residence to save money for insurance deductibles or uninsured losses from events like hurricanes, tornadoes, floods, and windstorms. Taxpayers can contribute up to either $2,000 or twice their insurance deductible (not exceeding $15,000), with self-insured individuals allowed to save up to $350,000 (adjusted annually). Contributions to these accounts are tax-deductible, and interest earned is tax-exempt. Withdrawals are only tax-free if used for qualified disaster expenses, such as those related to a federally or state-declared emergency. If funds are withdrawn for non-qualifying purposes, they will be subject to income tax with an additional 2.5% tax penalty. The account has special protections, including being exempt from attachment or legal process, and if the account holder dies, the account can be transferred to a spouse without tax consequences. The law will take effect on November 1, 2025, and will be administered by the Oklahoma Tax Commission.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb1834&Session=2600