OK
Oklahoma Senate Bill SB736

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB736 Compare Versions

OldNewDifferences
11
22
3-Req. No. 1659 Page 1 1
3+
4+Req. No. 1321 Page 1 1
5+2
6+3
7+4
8+5
9+6
10+7
11+8
12+9
13+10
14+11
15+12
16+13
17+14
18+15
19+16
20+17
21+18
22+19
23+20
24+21
25+22
26+23
27+24
28+ 1
429 2
530 3
631 4
732 5
833 6
934 7
1035 8
1136 9
1237 10
1338 11
1439 12
1540 13
1641 14
1742 15
1843 16
1944 17
2045 18
2146 19
2247 20
2348 21
2449 22
2550 23
2651 24
2752
2853 STATE OF OKLAHOMA
2954
3055 1st Session of the 60th Legislature (2025)
3156
32-COMMITTEE SUBSTITUTE
33-FOR
3457 SENATE BILL 736 By: Deevers
3558
3659
3760
3861
3962
40-COMMITTEE SUBSTITUTE
63+AS INTRODUCED
4164
42-An Act relating to income tax; creating the Health
43-Care Sharing Ministry Tax Parity Act; providing short
44-title; defining terms; providing income tax
45-deduction; providing procedure for claiming deduction
46-on certain payments; requiring Oklahoma Tax
47-Commission to prescribe forms and guidelines; making
48-certain income nontaxable; providing Oklahoma Tax
49-Commission with administrative oversight; providing
50-penalties for fraudulent claims; providing for
51-noncodification; providing for codification; and
52-providing an effective date .
65+An Act relating to revenue and taxation; creating the
66+Health Care Sharing Ministry Tax Parity Act;
67+providing short title; defining terms; providing for
68+income tax deduction; providing procedure for
69+claiming deduction; requiring Oklahoma Tax Commission
70+to create forms and guidelines; providing funds to be
71+nontaxable; providing Oklahoma Tax Commission with
72+administrative oversight; providing penalties for
73+fraudulent claims; providing for severability;
74+providing for noncodification; providing for
75+codification; and providing an effective date .
5376
5477
5578
5679
5780
5881 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5982 SECTION 1. NEW LAW A new section of law not to be
6083 codified in the Oklahoma Statutes reads as follows:
6184 This act shall be known and may be cited as the “Health Care
6285 Sharing Ministry Tax Parity Act ”.
6386 SECTION 2. NEW LAW A new section of law not to be
6487 codified in the Oklahoma Statutes reads as follows:
6588 The Legislature finds and declares that:
89+1. Health care sharing ministries (HCSMs) play a significant
90+role in addressing medical needs for individuals and families,
6691
67-Req. No. 1659 Page 2 1
92+
93+Req. No. 1321 Page 2 1
94+2
95+3
96+4
97+5
98+6
99+7
100+8
101+9
102+10
103+11
104+12
105+13
106+14
107+15
108+16
109+17
110+18
111+19
112+20
113+21
114+22
115+23
116+24
117+ 1
68118 2
69119 3
70120 4
71121 5
72122 6
73123 7
74124 8
75125 9
76126 10
77127 11
78128 12
79129 13
80130 14
81131 15
82132 16
83133 17
84134 18
85135 19
86136 20
87137 21
88138 22
89139 23
90140 24
91141
92-1. Health care sharing ministries (HCSMs) play a significant
93-role in addressing medical needs for individuals and families,
94-providing financial a nd emotional support outside of health
95-insurance;
142+providing financial and emotional support outside of traditional
143+health insurance;
96144 2. HCSMs enable their members to share health care costs in a
97145 voluntary and community -focused manner consistent with their ethical
98146 and religious beliefs ;
99147 3. Despite their critical function, HCSM contributi ons and
100-payments are not currently afforded the same tax treatment as health
101-insurance premiums under s tate law; and
148+payments are not currently afforded the same tax treatment as
149+traditional health insurance premiums under state law ; and
102150 4. To ensure fairness and eliminate financial discrimination,
103151 this act allows HCSM members to deduct qualifying expenses and
104152 contributions on their state income tax returns, achieving tax
105153 parity with health insurance plans.
106154 SECTION 3. NEW LAW A new section of law to be codified
107155 in the Oklahoma Statutes as Section 2358.111 of Title 68, unless
108156 there is created a duplication in numbering, reads as follows:
109157 A. As used in this act:
110158 1. “Health care sharing ministry” (HCSM) means a not-for-profit
111159 organization that is tax -exempt under Section 501(c)(3) of the
112160 Internal Revenue Code of 1986, as amended, and:
113161 a. limits its members to those who share a common set of
114162 ethical or religious beliefs,
163+b. facilitates sharing of medical expenses between
164+members in accordance with its published guidelines,
115165
116-Req. No. 1659 Page 3 1
166+
167+Req. No. 1321 Page 3 1
168+2
169+3
170+4
171+5
172+6
173+7
174+8
175+9
176+10
177+11
178+12
179+13
180+14
181+15
182+16
183+17
184+18
185+19
186+20
187+21
188+22
189+23
190+24
191+ 1
117192 2
118193 3
119194 4
120195 5
121196 6
122197 7
123198 8
124199 9
125200 10
126201 11
127202 12
128203 13
129204 14
130205 15
131206 16
132207 17
133208 18
134209 19
135210 20
136211 21
137212 22
138213 23
139214 24
140215
141-b. facilitates sharing of medical expenses between
142-members in accordance with its ethical or religious
143-beliefs,
144216 c. requires regular contributions from members with no
145217 assumption of risk or promise to pay for medical
146218 expenses,
147219 d. provides a quarterly report to m embers detailing the
148220 amount of needs shared and contributions received,
149221 e. conducts annual independent audits that are publicly
150222 available, and
151223 f. provides a disclaimer stating th at it is not an
152224 insurance company and participation is voluntary;
153-2. “Qualified health care sharing expenses ” means amounts paid
154-by a qualified individual as a member of an HCSM; and
225+2. “Qualified health care sharing expenses” means contributions
226+made by a qualified individual to a recognized HCSM for the purpose
227+of sharing medical expenses or covering administrative fe es; and
155228 3. “Qualified individual” means any resident of Oklahoma who
156229 has been an active member of an HCSM for at least one (1) month
157230 during the applicable tax year.
158-B. 1. For tax year 2026 and subsequent tax years , the total
159-amount of qualified health care sharing expenses paid by a qualified
160-individual during the tax year may be dedu cted from Oklahoma
161-adjusted gross income.
231+B. 1. For tax years beginning on or after January 1, 2026, a
232+qualified individual is ent itled to deduct the total amount of
233+qualified health care sharing expenses paid during the taxable year
234+from his or her adjusted gross income (AGI) on their Oklahoma state
235+income tax return.
162236 2. The deduction allowed under this section shall be applicable
163237 to:
238+a. self-employed individuals, in the same manner as
239+deductions for health insurance premiums,
164240
165-Req. No. 1659 Page 4 1
241+
242+Req. No. 1321 Page 4 1
243+2
244+3
245+4
246+5
247+6
248+7
249+8
250+9
251+10
252+11
253+12
254+13
255+14
256+15
257+16
258+17
259+18
260+19
261+20
262+21
263+22
264+23
265+24
266+ 1
166267 2
167268 3
168269 4
169270 5
170271 6
171272 7
172273 8
173274 9
174275 10
175276 11
176277 12
177278 13
178279 14
179280 15
180281 16
181282 17
182283 18
183284 19
184285 20
185286 21
186287 22
187288 23
188289 24
189290
190-a. self-employed individuals, in the same manner as
191-deductions for health insurance premiums,
192291 b. employer contributions toward HCSM membership for
193292 employees, which shall be treated as nontaxable fringe
194293 benefits, and
195-c. individuals paying amounts for HCSM membership for
196-themselves or their dependents.
197-C. 1. To claim the deduction, a qualified individual shall:
294+c. individuals purchasing HCSM membe rship for themselves
295+or their dependents.
296+C. 1. To claim the deduction, a qualified individual must:
198297 a. submit documentation of membership and contributions
199298 to an HCSM, including any records issued by the
200299 ministry, and
201300 b. file any additional forms or inf ormation required by
202301 the Oklahoma Tax Commission to verify eligibility.
203302 2. The Oklahoma Tax Commission shall develop forms, guidelines,
204303 and procedures for the implementation of this section.
205-D. For tax year 2026 and subsequent tax years, fund s received
206-by a qualified individual from HCSM members to assist with medical
207-expenses shall not be considered taxable income.
208-E. The Oklahoma Tax Comm ission shall administer the provisions
209-of this act. The Tax Commission shall electronically submit an
210-annual report to the Legislature detailing the number of deductions
211-claimed, the total revenue impact, and any other relevant data.
304+D. Funds received by a qualified individual from HCSM members
305+to assist with medical expenses shall not be considered taxable
306+income under Oklahoma state law.
307+E. The Oklahoma Tax Commission shall be responsible for
308+administering the provisions of this act. The Tax Commission shall
309+issue an annual report to the Legis lature detailing the number of
310+deductions claimed, the total fiscal impact, an d any other relevant
311+data.
312+F. Any individual who knowingly submits false documentation to
313+claim the deductions or exemptions under this act shall be subject
314+to:
212315
213-Req. No. 1659 Page 5 1
316+
317+Req. No. 1321 Page 5 1
318+2
319+3
320+4
321+5
322+6
323+7
324+8
325+9
326+10
327+11
328+12
329+13
330+14
331+15
332+16
333+17
334+18
335+19
336+20
337+21
338+22
339+23
340+24
341+ 1
214342 2
215343 3
216344 4
217345 5
218346 6
219347 7
220348 8
221349 9
222350 10
223351 11
224352 12
225353 13
226354 14
227355 15
228356 16
229357 17
230358 18
231359 19
232360 20
233361 21
234362 22
235363 23
236364 24
237365
238-F. Any individual wh o knowingly submits false documentation to
239-claim the deductions or exemptions under this act shall be su bject
240-to:
241366 1. Repayment of any income tax amount attributable to
242367 improperly claimed deductions;
243368 2. A civil penalty of Five Hundred Dollars ($500.00) per
244369 offense; and
245370 3. Ineligibility to claim deductions under this act for a
246371 period of three (3) years.
372+G. If any provision of this act is found unconstitutional or
373+invalid by a court of competent jurisdiction, the remaining
374+provisions shall remain in full force and effect.
247375 SECTION 4. This act shall become effective November 1, 2025.
248376
249-60-1-1659 QD 2/13/2025 8:54:46 PM
377+60-1-1321 CAD 1/15/2025 12:19:43 PM