Jech comments on passage of vehicle sales tax exemption

A bill that would remove the 1.25% sales tax on motor vehicles and tractor trailers was approved by the Senate Wednesday, a measure Sen. Darcy Jech said would provide immediate tax relief for Oklahomans needing to make vehicle purchases.

Senate Bill 1075 restores the tax exemption on motor vehicle and tractor trailer purchases that was removed in 2017 when the state was in a budget crisis and revenue was needed. Now that the economy is strong, Jech said it’s the right time to remove the tax.

“I’ve been an advocate for removing this tax as soon as possible, even filing my own legislation to modify the tax on vehicle purchases,” said Jech, R-Kingfisher. “I’m thrilled this tax relief was included in the Fiscal Year 2023 budget, which will provide immediate inflation relief for Oklahomans that need real solutions to the rising cost of goods.”

SB 1075 must now be approved by the House before heading to the governor’s desk for his signature. If signed into law, the tax would be removed July 1.