HB 1202 Summary

• Allows sellers and vendors a 1% deduction from sales tax due to compensate them for record-keeping, filing reports, and remitting taxes, excluding those with direct payment permits.

• Caps the monthly deduction at $2,500 per sales tax permit, with vendors prohibited from changing permit status to circumvent this limit.

• Amounts exceeding the $2,500 monthly cap are retained by the state as administrative expenses and deposited to the General Revenue Fund.

• Extends an identical deduction to vendors for use tax compliance, equal to the amount provided under the Oklahoma Sales Tax Code.

• Becomes effective July 1, 2025, with an emergency clause allowing immediate implementation upon passage and approval.