Oklahoma 2025 Regular Session

Oklahoma House Bill HB1834 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 1834 Page 1 1
	3	+	HB1834 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 1834 By: Hefner and Deck of the
30		-	House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 60th Legislature (2025)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 1834 By: Hefner of the House
31	38
32	39		and
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34	41		Frix of the Senate
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	46	+
	47	+	COMMITTEE SUBSTITUTE
39	48
40	49		[ revenue – taxation – account – definitions –
41	50		deduction – income – contributions – amounts –
42	51		limitations – tax – death – Oklahoma Tax Commission
43	52		– notice – codification – effective date ]
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48	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
49	58		SECTION 1. NEW LAW A new section of law to be codified
50	59		in the Oklahoma Statutes as Section 2387 of Title 68, unless there
51	60		is created a duplication in numbering, reads as follows:
52	61		This act shall be known and may be cited as the "Inhofe Disaster
53	62		Savings Account Act".
54		-	SECTION 2. NEW LAW A new section of law to be codified
55		-	in the Oklahoma Statutes as Section 2388 of Title 68, unless there
56		-	is created a duplication in numbering, reads as follows:
57		-	As used in the Inhofe Disaster Savings Account Act:
58		-	1. "Disaster savings account" means a regular savings account
59		-	or money market account established by an insurance policyholder for
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61		-	ENGR. H. B. NO. 1834 Page 2 1
	64	+	HB1834 HFLR Page 2
	65	+	BOLD FACE denotes Committee Amendments. 1
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	90	+	SECTION 2. NEW LAW A new section of law to be codified
	91	+	in the Oklahoma Statutes as Section 2388 of Title 68, unless there
	92	+	is created a duplication in numbering, reads as follows:
	93	+	As used in the Inhofe Disaster Savings Account Act:
	94	+	1. "Disaster Savings Account" means a regular savings account
	95	+	or money market account established by an insurance policyholder for
86	96		residential property in this state to cover an insurance deductible
87	97		under an insurance policy for the taxpayer's primary res idence that
88	98		covers hurricanes, rising floodwaters, tornadoes, hail, or other
89	99		catastrophic windstorm event damage, or by an individual to cover
90	100		self-insured losses for the taxpayer's primary residence from
91	101		hurricanes, rising floodwaters, tornadoes, hail, or other
92	102		catastrophic windstorm event. The account may also cover costs
93	103		incurred in proactively protecting the taxpayer's primary residence
94	104		from hurricanes, rising floodwaters, tornadoes, hail, or other
95	105		catastrophic windstorm event damage. The account must be labeled as
96	106		a Disaster Savings Account to qualify as a Disaster Savings Account
97	107		as defined in this paragraph. A taxpayer shall establish only one
98	108		Disaster Savings Account and shall specify that the purpose of the
99	109		account is to cover the amount of insur ance deductible and other
100	110		uninsured portions of risks of loss from hurricanes, rising
101	111		floodwaters, tornadoes, hail, or other catastrophic windstorm event
102	112		and costs incurred in proactively protecting the taxpayer's primary
103		-	residence from hurricanes, rising floodwaters, tornadoes, hail, or
104		-	other catastrophic windstorm event damage;
105		-	2. "Qualified deductible" means the deductible for the
106		-	individual's homeowner's policy for a taxpayer's primary residence;
107		-	and
108		-	3. "Qualified disaster expenses" means expenses paid or
109		-	incurred by reason of a major disaster that has been declared by the
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111		-	ENGR. H. B. NO. 1834 Page 3 1
	114	+	HB1834 HFLR Page 3
	115	+	BOLD FACE denotes Committee Amendments. 1
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	140	+	residence from hurricanes, rising floodwaters, tornadoes, hail, or
	141	+	other catastrophic windstorm event damage;
	142	+	2. "Qualified deductible" means the deductible for the
	143	+	individual's homeowner's policy for a taxpayer's primary residence;
	144	+	and
	145	+	3. "Qualified disaster expenses" means expenses pai d or
	146	+	incurred by reason of a major disaster that has been declared by the
136	147		President of the United States or the Governor of the State of
137	148		Oklahoma to be an emergency by executive order.
138	149		SECTION 3. NEW LAW A new section of law to be c odified
139	150		in the Oklahoma Statutes as Section 2389 of Title 68, unless there
140	151		is created a duplication in numbering, reads as follows:
141	152		A. For taxable years beginning on or after January 1, 2026, an
142	153		individual is allowed a deduction from Oklahoma taxable inco me for
143	154		amounts contributed to a Disaster Savings Account in accordance with
144	155		subsection C of this section. All interest income earned by the
145	156		Disaster Savings Account is exempt from the tax imposed pursuant to
146	157		Section 2355 of Title 68 of the Oklahoma Statut es.
147	158		B. A Disaster Savings Account is not subject to attachment,
148	159		levy, garnishment, or legal process in this state.
149	160		C. The total amount that may be contributed to a Disaster
150	161		Savings Account must not exceed:
151		-	1. In the case of an individual whose qualified deductible is
152		-	less than or equal to One Thousand Dollars ($1,000.00), Two Thousand
153		-	Dollars ($2,000.00);
154		-	2. In the case of an indivi dual whose qualified deductible is
155		-	greater than One Thousand Dollars ($1,000.00), the amount equal to
156		-	the lesser of Fifteen Thousand Dollars ($15,000.00) or twice the
157		-	amount of the taxpayer's qualified deductible; and
158		-	3. In the case of a self -insured individual who chooses not to
159		-	obtain insurance on his or her primary residence, Three Hundred
160	162
161		-	ENGR. H. B. NO. 1834 Page 4 1
	163	+	HB1834 HFLR Page 4
	164	+	BOLD FACE denotes Committee Amendments. 1
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	189	+	1. In the case of an individual whose qualified deductible is
	190	+	less than or equal to One Thousand Dollars ($1,000.00), Two Thousand
	191	+	Dollars ($2,000.00);
	192	+	2. In the case of an individual whose qualified deductible is
	193	+	greater than One Thousand Dollars ($1,000.00), the amount equal to
	194	+	the lesser of Fifteen Thousand Dollars ($15,000.00) or twice the
	195	+	amount of the taxpayer's qualified deductible; and
	196	+	3. In the case of a self -insured individual who chooses not to
	197	+	obtain insurance on his or her primary residence, Three Hundred
186	198		Fifty Thousand Dollars ($350,000. 00), but shall not exceed the value
187	199		of the individual taxpayer's primary residence. The amount
188	200		prescribed by this paragraph shall be adjusted annually to reflect
189	201		an increase of five percent (5%). Each five -percent increase shall
190	202		be applied to the amount as previously adjusted pursuant to the
191	203		provisions of this paragraph.
192	204		If a taxpayer contributes in excess of the limits as provided
193	205		for in this subsection, the taxpayer shall withdraw the amount of
194	206		excess contributions from the individual's Disaster Savings Account.
195	207		The excess amount shall be withdrawn from the Disaster Savings
196	208		Account not later than the due date of the income tax return for the
197	209		applicable income tax year, including any extension. The amount of
198	210		excess contributions withdrawn under this sub section shall be
199	211		subject to the tax imposed pursuant to Section 2355 of Title 68 of
200	212		the Oklahoma Statutes, but shall not be subject to the additional
201		-	two and one-half percent (2.5%) rate increase as prescribed by
202		-	subsection B of Section 4 of this act.
203		-	SECTION 4. NEW LAW A new section of law to be codified
204		-	in the Oklahoma Statutes as Section 2390 of Title 68, unle ss there
205		-	is created a duplication in numbering, reads as follows:
206		-	A. A distribution from a disaster savings account must be
207		-	included in the income of the taxpayer unless the amount of the
208		-	distribution is used to cover qualified disaster expenses. No
209		-	amount is included in income if the qualified disaster expenses of
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211		-	ENGR. H. B. NO. 1834 Page 5 1
	214	+	HB1834 HFLR Page 5
	215	+	BOLD FACE denotes Committee Amendments. 1
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	240	+	two and one-half percent (2.5%) rate increase as prescribed by
	241	+	subsection B of Section 4 of this act.
	242	+	SECTION 4. NEW LAW A new section of law to be codified
	243	+	in the Oklahoma Statutes as Section 2390 of Title 68, unless there
	244	+	is created a duplication in numbering, reads as follows:
	245	+	A. A distribution from a Disaster Savings Account must b e
	246	+	included in the income of the taxpayer unless the amount of the
	247	+	distribution is used to cover qualified disaster expenses. No
	248	+	amount is included in income if the qualified disaster expenses of
236	249		the taxpayer during the taxable year are equal to or greater than
237	250		the aggregate distributions during the taxable year. If aggregate
238	251		distributions exceed the qualified disaster expenses during the
239	252		taxable year, the amount otherwise included in income must be
240	253		reduced by the amount of the distributions for qualified disaster
241	254		expenses.
242	255		B. The tax paid pursuant to Section 2355 of Title 68 of the
243	256		Oklahoma Statutes attributable to a taxable distribution must be
244	257		increased by two and one -half percent (2.5%) of the amount which is
245	258		includable in income. This additional tax does not apply if the:
246	259		1. Taxpayer no longer owns a residence; or
247	260		2. Distribution is from an account conforming with Section 3 of
248	261		this act and is made on or after the date on which the taxpayer
249	262		attains the age of seventy (70).
250		-	C. If a taxpayer who owns a disaster savings account dies, his
251		-	or her account shall be included in the income of the person who
252		-	receives the account, unless th at person is the surviving spouse of
253		-	the taxpayer. Upon death of the surviving spouse, the account is
254		-	included in the income of the person who receives the account. The
255		-	additional tax in subsection B of this section does not apply to
256		-	distribution on deat h of the taxpayer or the surviving spouse.
257		-	D. The Oklahoma Tax Commission shall promulgate rules necessary
258		-	to implement and administer this act. The Oklahoma Tax Commission
259		-	shall provide written notice to the Oklahoma Insurance Department
260	263
261		-	ENGR. H. B. NO. 1834 Page 6 1
	264	+	HB1834 HFLR Page 6
	265	+	BOLD FACE denotes Committee Amendments. 1
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	290	+	C. If a taxpayer who owns a Disaster Savings Account dies, his
	291	+	or her account shall be included in the income of the person who
	292	+	receives the account, unless that person is the surviving spouse of
	293	+	the taxpayer. Upon death of the surviving spouse, the account is
	294	+	included in the inco me of the person who receives the account. The
	295	+	additional tax in subsection B of this section does not apply to
	296	+	distribution on death of the taxpayer or the surviving spouse.
	297	+	D. The Oklahoma Tax Commission shall promulgate rules necessary
	298	+	to implement and administer this act. The Oklahoma Tax Commission
	299	+	shall provide written notice to the Oklahoma Insurance Department
286	300		upon the promulgation of any rules or changes to rules related to
287	301		this act.
288	302		SECTION 5. This act shall become effective No vember 1, 2025.
289		-	Passed the House of Representatives the 11th day of March, 2025.
290	303
291		-
292		-
293		-
294		-	Presiding Officer of the House
295		-	of Representatives
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298		-
299		-	Passed the Senate the ____ day of _________, 2025.
300		-
301		-
302		-
303		-
304		-	Presiding Officer of the Senate
	304	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	305	+	03/05/2025 - DO PASS, As Amended and Coauthored.
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