OKLAHOMA CITY – The Oklahoma House of Representatives Appropriations & Budget Committee has approved legislation to exempt 501(c)3 nonprofits from sales tax.

Rep. Marilyn Stark, R-Bethany, said making Oklahoma's 501(c)3 charitable nonprofit organizations sales tax exempt has been one of her top priorities for years and House Bill 1568 is the culmination of several sessions spent learning, tweaking and working with agencies and committees. Under the bill, 501(c)3 nonprofit organizations established in the state who receive $3 million or less in annual gross revenue would be exempt from sales tax.

"Historically, a dollar in the hands of a nonprofit yields about $5 in assistance to their clients," said Stark, who held an interim study on sales tax exemptions for nonprofits in October 2022. "Nonprofit entities are passionate about what they do and most of them do it very well. The government shouldn't be limiting people who are passionate about caring for others; instead, we should be empowering those who help lessen the reliance on government, and exempting our nonprofits is a fantastic step in the right direction."

The measure stipulates that alcohol and tobacco purchases are not considered exempt purchases.

HB1568 passed the House A&B Committee 33-0 on Wednesday and now moves to the House floor.