Bill > SB1387

This bill modifies Oklahoma's sales and use tax laws to provide tax relief for vehicle purchases by allowing individuals to deduct the value of a previously sold vehicle from the sales tax calculation when buying a new vehicle. Specifically, if a person sells a vehicle within six months before or after purchasing a new vehicle, they can calculate the sales tax based only on the difference between the value of the sold vehicle and the actual purchase price of the new vehicle. Additionally, if someone pays the full sales tax on a vehicle purchase and then sells their vehicle within six months, they are entitled to a refund of the portion of tax paid, equal to 1.25% of the value of the vehicle sold, not exceeding the total tax paid on the original vehicle purchase. This change applies to both sales tax (Section 1355) and use tax (Section 1404) calculations, aiming to provide financial flexibility for vehicle owners by reducing their tax burden when buying and selling vehicles within a short timeframe. The bill will become effective on November 1, 2026.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1387&Session=2600