The bill, known as Senate Bill No. 1112, amends the current lodging tax regulations in Oklahoma by excluding discounted or complimentary rooms from the gross receipts on which the lodging tax is calculated. Specifically, it establishes that for any county or municipal lodging tax, the gross receipts will not include any discounts or free lodging provided to customers or employees when no payment or reimbursement is received by the seller from a third party. This change aims to clarify the tax base for lodging taxes and ensure that only actual revenue is subject to taxation.

The new legal language will be codified as Section 1370.11 of Title 68 in the Oklahoma Statutes, and the bill is set to take effect on January 1, 2026. This legislative change was passed by the Senate on March 27, 2025, and reflects an effort to streamline the lodging tax process by eliminating the inclusion of non-revenue-generating transactions.