OK HB3602

Oklahoma Health Care Authority must submit an annual report to the Governor and Legislature by October 1 each year, detailing all health care-related taxes including which provider classes are taxed, whether taxes are broad-based and uniform, and the percentage of net patient revenue each tax represents as of July 4, 2025.

Health care-related taxes are prohibited from increasing above the percentage of net patient revenue in effect as of July 4, 2025.

Gradual reduction in allowable health care-related tax rates is mandated: 5.5% in federal fiscal year 2028, 5% in 2029, 4.5% in 2030, 4% in 2031, and 3.5% in 2032 and thereafter (with exceptions for certain service classes).

Health care-related taxes that vary by volume or percentage of Medicaid taxable units are prohibited.

Effective date is November 1, 2026.