Grandparent Excise Tax Exemption Passes House

Mar 17, 2026
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OKLAHOMA CITY – Rep. Rick West, R-Heavener, on Tuesday passed a bill in the House that would allow legal guardians and grandparents to be exempt from paying vehicle excise tax on the transfer of vehicle ownership to a child or grandchild.

House Bill 2967 would expand the list of vehicle transfers that would qualify for the exemption. Currently, husbands and wives and parents to children are allowed to transfer vehicle titles without paying excise tax.

"I'm calling this my grandpa bill," West explained. "Grandparents should be allowed to gift or sell their vehicles to their grandchildren without having to pay additional tax to the government."

The bill was requested by a constituent of West.

Current state law requires excise tax to be levied upon the transfer of legal ownership of any vehicle registered in Oklahoma, upon the use of any vehicle registered in this state and upon the use of any vehicle registered for the first time in the state. There are some exemptions for vehicles used for agriculture and for 100% disabled veterans, among others.

HB2967 passed the House on a vote of 69-10. It now moves to the State Senate where it is authored by Sen. Shane Jett, R-Shawnee.