Bill Filed to stop fraudulent use of disabled veterans sales tax exemption

OKLAHOMA CITY – According to the Oklahoma Tax Commission (OTC) Oklahoma currently has twice as many military tax-exempt certificates as 100% disabled veterans in the state. Sen. Frank Simpson, R-Springer, has filed Senate Bill 415 to stop this fraudulent use of the disabled veterans sales tax exemption.

The bill authorizes the OTC to disclose taxpayer information to the Oklahoma Department of Veterans Affairs (ODVA) relating to 100% service-disabled veterans who qualify for the sales tax exemption.

“This sales tax exemption is a token of our state’s respect and deep gratitude for these brave men and women who sacrificed so much for our country. For someone else to dishonor their service and sacrifice by using the sales tax exemption is intolerable,” Simpson said. “This bill will ensure that our true heroes are honored by providing businesses a better way to verify one’s qualification for the exemption.”

Veterans will be required to register with the Oklahoma Veterans Registry to remain qualified for the sales tax exemption. The measure will also require the ODVA to verify eligibility for the sales tax exemption upon the OTC’s request.

In 2020, the OTC showed approximated 32,000 military tax-exempt certificates on record. However, the USDVA showed only 16,000 fully disabled veterans in Oklahoma.

The bill, which was approved by the Senate Finance Committee Tuesday, will next be considered by the Senate Appropriations Committee.