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ENGROSSED HOUSE
BILL NO. 1604 By: Gise of the House
and
Guthrie of the Senate
[ revenue and taxation - vehicle excise tax -
transfer of vehicle ownership - excluded transfers
- effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE O F OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2103, as
amended by Section 236, Chapter 282, O.S.L. 2022 (68 O.S. Supp.
2024, Section 2103), is amended to read as follows:
Section 2103. A. 1. Except as otherwise provid ed in Sections
2101 through 2108 of this title, there shall be levied an excise tax
upon the transfer of legal ownership of any vehicle registered in
this state and upon the use of any vehicle registered in this state
and upon the use of any vehicle regist ered for the first time in
this state. Except for persons that possess an agricultural
exemption pursuant to Section 1358.1 of this title, the excise tax
shall be levied upon transfers of legal ownership of all -terrain
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vehicles and motorcycles used exclus ively off roads and highways
which occur on or after July 1, 2005, and upon transfers of legal
ownership of utility vehicles used exclusively off roads and
highways which occur on or after July 1, 2008. The excise tax for
new and used all-terrain vehicles, utility vehicles and motorcycles
used exclusively off roads and highways shall be levied at four and
one-half percent (4 1/2%) of the actual sales price of each new and
used all-terrain vehicle and motorcycle used exclusively off roads
and highways before any discounts or credits are given for a trade -
in. Provided, the minimum excise tax assessment for such all -
terrain vehicles, utility vehicles and motorcycles used exclusively
off roads and highways shall be Five Dollars ($5.00). The excise
tax for new vehicles shall be levied at three and one -fourth percent
(3 1/4%) of the value of each new vehicle. The excise tax for used
vehicles shall be as follows:
a. from October 1, 2000, until June 30, 2001, Twenty
Dollars ($20.00) on the first One Thousand Doll ars
($1,000.00) or less of value of such vehicle, and
three and one-fourth percent (3 1/4%) of the remaining
value of such vehicle,
b. for the year beginning July 1, 2001, and ending June
30, 2002, Twenty Dollars ($20.00) on the first One
Thousand Two Hundred Fifty Dollars ($1,250.00) or less
of value of such vehicle, and three and one -fourth
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percent (3 1/4%) of the remaining value of such
vehicle, and
c. for the year beginning July 1, 2002, and all
subsequent years, Twenty Dollars ($20.00) on the first
One Thousand Five Hundred Dollars ($1,500.00) or less
of value of such vehicle, and three and one -fourth
percent (3 1/4%) of the remaining value of such
vehicle.
2. There shall be levied an excise tax of Ten Dollars ($10.00)
for any:
a. truck or truck-tractor registered under the provisions
of subsection A of Section 1133 of Title 47 of the
Oklahoma Statutes, for a laden weight or combined
laden weight of fifty -five thousand (55,000) pounds or
more,
b. trailer or semitrailer registered under subsection C
of Section 1133 of Title 47 of the Oklahoma Statutes,
which is primarily designed to transport cargo over
the highways of this state and generally recognized as
such, and
c. frac tank, as defined by Section 54 of Title 17 of the
Oklahoma Statutes, and register ed under subsection C
of Section 1133 of Title 47 of the Oklahoma Statutes.
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Except for frac tanks, the excise tax levied pursuant to this
paragraph shall not apply to special mobilized machinery, trailers,
or semitrailers manufactured, modified or remanufa ctured for the
purpose of providing services other than transporting cargo over the
highways of this state. The excise tax levied pursuant to this
paragraph shall also not apply to pickup trucks, vans, or sport
utility vehicles.
3. The tax levied pursuan t to this section shall be due at the
time of the transfer of legal ownership or first registration in
this state of such vehicle; provided, the tax shall not be due at
the time of the issuance of a certificate of title for an all -
terrain vehicle, utility vehicle or motorcycle used exclusively off
roads and highways which is not required to be registered but which
the owner chooses to register pursuant to the provisions of
subsection B of Section 1115.3 of Title 47 of the Oklahoma Statutes,
and shall be collected by Service Oklahoma or the Corporation
Commission, as applicable, or an appointed licensed operator, at the
time of the issuance of a certificate of title for any such vehicle.
In the event an excise tax is collected on the transfer of legal
ownership or use of the vehicle during any calendar year, then an
additional excise tax must be collected upon all subsequent
transfers of legal ownership. In computing the motor vehicle excise
tax, the amount collected shall be rounded to the nearest dollar.
The excise tax levied by this section shall be delinquent from and
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after the thirtieth day after the legal ownership or possession of
any vehicle is obtained. Any person failing or refusing to pay the
tax as herein provided on or before date of delinquenc y shall pay in
addition to the tax a penalty of One Dollar ($1.00) per day for each
day of delinquency, but such penalty shall in no event exceed the
amount of the tax. Of each dollar penalty collected pursuant to
this subsection:
a. twenty-five cents ($0.25) shall be apportioned as
provided in Section 1104 of this title,
b. twenty-five cents ($0.25) shall be retained by the
licensed operator, and
c. fifty cents ($0.50) shall be deposited in the General
Revenue Fund for the fiscal year beginning on July 1,
2011, and for all subsequent fiscal years, shall be
deposited in the State Highway Construction and
Maintenance Fund.
B. The excise tax levied in subsection A of this section and
assessed on all commercial vehicles registered pursuant to Section
1120 of Title 47 of the Oklahoma Statutes and trailers and
semitrailers registered under subsection C of Section 1133 of Title
47 of the Oklahoma Statutes to transport cargo over the highways of
this state shall be in lieu of all sales and use taxes levied
pursuant to the Sales Tax Code or the Use Tax Code. The transfer of
legal ownership of any motor vehicle as used in this section and the
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Sales Tax Code and the Use Tax Code shall include the lease, lease
purchase or lease finance agreement involving any truck in excess of
eight thousand (8,000) pounds combined laden weight or any truck -
tractor provided the vehicle is registered in Oklahoma pursuant to
Section 1120 of Title 47 of the Oklahoma Statutes or any frac tank,
trailer, semitrailer or open commercial vehic le registered pursuant
to Section 1133 of Title 47 of the Oklahoma Statutes. The excise
tax levied pursuant to this section shall not be subsequently
collected at the end of the lease period if the lessee acquires
complete legal title of the vehicle.
C. The provisions of this section shall not apply to transfers
made without consideration between:
1. Husband and wife;
2. Parent and child; or
3. Legal guardian and child;
4. Grandparent and grandchild; or
3. 5. An individual and an express trust which that individual
or the spouse, child or, grandchild, parent, legal guardian, or
grandparent of that individual has a right to revoke.
D. 1. There shall be a credit allowed with respect to the
excise tax paid for a new vehicle which is a replacement for:
a. a new original vehicle which is stolen from the
purchaser/registrant within ninety (90) days of the
date of purchase of the original vehicle as certified
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by a police report or other documentation as required
by Service Oklahoma, or
b. a defective new original vehicle returned by the
purchaser/registrant to the seller within six (6)
months of the date of purchase of the defective new
original vehicle as certified by the manufacturer.
2. The credit allowed pursuant to paragraph 1 of this
subsection shall be in the amount of the excise tax which was paid
for the new original vehicle and shall be applied to the excise tax
due on the replacement vehicle. In no event shall the credit be
refunded.
E. Despite any other definitions of the terms "new vehicle" and
"used vehicle", to the contrary, contained in any other law, the
term "new vehicle" as used in this section shall also include any
vehicle of the latest manufactured model which is owned or acquired
by a licensed used motor vehicle dealer which has not p reviously
been registered in this state and upon which the motor vehicle
excise tax as set forth in this section has not been paid. However,
upon the sale or transfer by a licensed used motor vehicle dealer
located in this state of any such vehicle which is the latest
manufactured model, the vehicle shall be considered a used vehicle
for purposes of determining excise tax.
F. The provisions of this section shall not apply to state
government entities.
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SECTION 2. This act shall become effe ctive November 1, 2025.
Passed the House of Representatives the 11th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the ______ day of ______, 2025.
Presiding Officer of the Senate