Motor Vehicle Excise Tax Change to Become Law
OKLAHOMA CITY – Rep. Jim Grego, R-Wilburton, today praised the governor's signing of a bill that will save taxpayers money on vehicle registration. House Bill 1183 simplifies how motor vehicle excise tax is determined for vehicle purchases by requiring the tax to be based on the actual sales price of the vehicle. Any consideration to the average retail price of the vehicle is removed from the formula for determining the tax. "I've been looking for ways to save the taxpayer money without increasing fees somewhere else, and this I believe is a great solution," Grego said. "Requiring Service Oklahoma to base excise tax on the actual sales price of a vehicle rather than using a National Auto Dealers Association value, will result in savings for car buyers when registering their vehicle." HB1183 eliminates the 20% adjustment above and below the average retail price when determining the taxable value. To allow Service Oklahoma time to adjust for the change, the act will take effect July 1, 2026. The bill was authored in the Senate by Sen. Avery Frix, R-Muskogee.