Permanent Forestry Equipment Tax Exemption Becomes Law

May 15, 2026
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OKLAHOMA CITY – A bill making a sales tax exemption for commercial forestry equipment permanent has been signed into law.

House Bill 3661, authored by Rep. Eddy Dempsey, R-Valliant, and Sen. Casey Murdock, R-Felt, removes the January 2027 sunset date on the sales tax exemption for commercial forestry service equipment used by logging, timber and tree farming businesses.

Dempsey said the measure will continue supporting one of southeast Oklahoma’s longstanding industries and help forestry businesses reinvest in their operations.

"Forestry is an important part of the economy in my district, southeast Oklahoma and across many rural communities in our state," Dempsey said. "Making this exemption permanent gives businesses certainty and helps keep operating costs manageable so they can continue investing in equipment and the future of the industry."

By removing the sunset date, qualifying equipment will continue to include forwarders, fellers, bunchers, skidders, hydraulic excavators, delimbers, soil compactors and skid steer loaders used in commercial forestry operations.

HB3661 takes effect Nov. 1.