Oklahoma House Passes Bill Exempting Grandparents from Vehicle Excise Tax

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The Oklahoma House of Representatives has passed a bill that would exempt legal guardians and grandparents from paying vehicle excise tax when transferring vehicle ownership to a child or grandchild. The bill, authored by Rep. Rick West, R-Heavener, is aimed at making it easier for grandparents to gift or sell their vehicles to their grandchildren without additional tax burdens.

Why it matters

Currently, only transfers between husbands and wives or parents and children are exempt from the vehicle excise tax in Oklahoma. This new legislation would expand those exemptions to include grandparents, which could provide financial relief to older residents looking to pass down their vehicles to younger family members.

The details

House Bill 2967 would expand the list of vehicle transfers that would qualify for the excise tax exemption. Under current state law, excise tax must be paid upon the transfer of legal ownership of any vehicle registered in Oklahoma, with some exceptions for agricultural use and disabled veterans. The new bill, if passed by the State Senate, would add legal guardians and grandparents to the list of those exempt from the excise tax when transferring a vehicle to a child or grandchild.

• On March 25, 2026, the Oklahoma House of Representatives passed HB2967.
• The bill now moves to the State Senate, where it is authored by Sen. Shane Jett, R-Shawnee.

What they’re saying

What’s next

The bill must now pass the Oklahoma State Senate before it can be signed into law by the governor.