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OK SB1401

Bill

Status

Introduced

2/2/2026

Primary Sponsor

Dave Rader

Click for details

Origin

Senate

2026 Regular Session

AI Summary

  • Reduces the insurance premium tax rate from 2.25% to 1.96% beginning July 1, 2026, applicable to all insurance companies, health maintenance organizations, and medical professional liability trusts doing business in Oklahoma

  • Eliminates the "Home Office Credit" for foreign, alien, and domestic insurers after June 30, 2026; this credit previously allowed insurers with 200+ full-time Oklahoma employees maintaining regional or home offices to reduce their premium tax liability by 15-50%

  • Maintains the reduced tax rate of 0.1% for employer-owned life insurance policy premiums exceeding $100,000 per policy year

  • Premium taxes collected from contracted entities under the Ensuring Access to Medicaid Act continue to be deposited in the Medicaid Health Improvement Revolving Fund, exempt from standard apportionments

  • Effective date is July 1, 2026, with an emergency clause for immediate effect upon passage and approval

Legislative Description

Insurance premium tax; modifying rate for certain fiscal years; limiting home office credit to certain fiscal years. Effective date. Emergency.

Last Action

Second Reading referred to Revenue and Taxation Committee then to Appropriations Committee

2/3/2026

Committee Referrals

Revenue and Taxation2/3/2026

Full Bill Text

No bill text available