In the world of legislative updates, Oklahoma Rep. Marilyn Stark, R-Bethany, seeks a tax break for the smaller nonprofits in the state. As per a new bill introduced by Stark, nonprofit organizations hauling in $3 million or less per annum in gross revenue might soon enjoy an exemption from paying sales tax - should her legislation pass muster. The proposed House Bill 1171 aims to lighten the fiscal load of these entities, already stretched thin in many a case, by cutting the sales tax out of their list of expenses. This could translate into more resources at their disposal to drive their community-focused missions, according to the Oklahoma House of Representatives.
It appears that the lawmaker has been nurturing this policy pitch for some time. The Oklahoma House of Representatives shared Stark's position on the matter, "I've been working on this policy proposal for several years now, and I hope that this is the year we get it across the finish line." Stark cited inflation's erosion of the dollar's purchasing power as a chief factor backing the bill. "Thanks to inflation, a dollar, whether it's donated or provided through a grant, doesn't have the same buying power it did five years ago," she added, noting the potential boon to nonprofits and their beneficiaries alike, should the exemption come into effect.
A previous version of the bill, known as House Bill 1568, found favor in the Oklahoma House in 2023 with a resounding vote of 70-17 but unfortunately hit a snag in the Senate, failing to secure a hearing on the floor. She's not deterred, however, and following an October 2023 study on the topic, she's back at the legislative table with renewed vigor and a tweaked proposal. The new bill, like its predecessor, prohibits exemptions for alcohol and tobacco purchases by nonprofits, as per the Oklahoma House of Representatives.
Small nonprofit organizations are facing financial challenges with rising costs and a competitive grant process. An exemption in the upcoming legislation could help by allowing them to focus more on programs and less on paperwork. The fate of this exemption will be decided during the legislative session starting on Feb. 3, and Oklahoma's nonprofit community is watching closely to see if this year's bill, HB1171, can overcome the obstacles that stopped last year's version.
