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SB 1112

Lodging tax; excluding discounted or comped rooms or lodging from gross receipts upon which a lodging tax is levied. Effective date.

2025 Regular Session Introduced by Steve Bashore and 1 co-sponsor

Oklahoma excludes discounted and complimentary lodging from gross receipts subject to lodging tax, reducing hospitality sector tax obligations and local tourism funding.

Becomes law without Governor's signature 05/15/2025
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WeVote Research Nonpartisan
Bill Summary · SB 1112

Legislative bill overview

SB 1112 modifies Oklahoma's lodging tax by excluding discounted or complimentary rooms from the gross receipts calculation used to determine tax liability. This means hotels and lodging facilities will only pay taxes on revenue actually received, not on the full retail value of rooms given away or sold at reduced rates.

Why is this important

Lodging taxes fund tourism infrastructure, convention centers, and promotional activities in Oklahoma communities. This change reduces tax revenue from the hospitality sector, potentially affecting local tourism funding while lowering operational costs for lodging businesses that offer promotions or comps.

Potential points of contention

  • Revenue impact: Municipalities and tourism boards relying on lodging tax revenue may face budget reductions, particularly in smaller markets dependent on these funds
  • Competitive advantage: This may disproportionately benefit larger hotel chains with established loyalty/comp programs versus smaller independent lodging operations
  • Definition ambiguity: The bill's treatment of various discount types (employee discounts, group rates, loyalty programs) could create administrative complexity and disputes with tax authorities

Compiled from official sources — confirm details with the bill’s official record.

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