The bill amends Section 1357 of the Oklahoma Sales Tax Code to introduce a new sales tax exemption for veterans who are residents of Oklahoma and have been honorably discharged from active service. This exemption applies to sales of tangible personal property or services, provided that the veterans are certified by the United States Department of Veterans Affairs as receiving permanent disability compensation at the one-hundred-percent rate due to military-related causes. The bill also retains existing exemptions for various sales categories, such as transportation services and sales to nonprofit organizations, aiming to reduce the tax burden on qualifying veterans.

Additionally, the bill modifies existing tax exemption provisions for disabled veterans and their surviving spouses by introducing a new exemption for non-vehicle purchases, allowing up to $25,000 per year per individual while the disabled veteran is living. It also establishes a separate vehicle purchase exemption capped at $20,000, with specific conditions regarding prior use of the exemption. Unremarried surviving spouses can claim an exemption of up to $1,000 per year. Individuals claiming these exemptions must submit a sworn statement to the Oklahoma Tax Commission, and any excess exempt sales will incur a direct sales tax liability. The Tax Commission is responsible for implementing these provisions, and the bill is set to take effect on November 1, 2025.

Statutes affected:
Introduced: 68-1357