In order to provide equal access and equal opportunity to people with diverse abilities, this site has been designed with accessibility in mind. Click here to view

back to press releases

Compromise Tag Bill to Deliver Motorists $22 Million in Savings, Annual Tags to Cost $85 or Less

The Oklahoma State Senate gave final approval Thursday to car tag reform legislation that will ultimately deliver more than $22 million in savings to Oklahoma motorists, charging them no more than $85 for their annual license plate. The measure, which passed the Senate on a 42-3 vote, now goes to Governor Keating for his signature.

"It looks like Oklahoma motorists are going to get the tag relief that they deserve. They've been stuck with a bad system for a long time, but if we get our way, the nightmare that is the Oklahoma tag system will finally end," said Senator Jim Maddox, author of HB 2663.

Under the compromise bill, annual license plates will cost $85 or less, depending on the age of the vehicle. The measure would also change the way the excise tax is assessed on vehicle purchases, basing it on the actual sales price rather than the higher sticker price as current law requires.

Under the latest version of the tag bill, the excise tax will remain at 3.25 percent. Earlier versions had proposed a slight increase.

"I think this compromise bill is a win-win solution to the tag dilemma. We're getting rid of the old, broken down tag system that Oklahoma motorists hated and saving them money in the process. For the first time in state history, license plates will be affordable to the average Oklahoman," said Senator Maddox.

The compromise measure will create a tiered system of flat tag fees, with annual costs depending on the age of the vehicle.

Vehicle Age Tag Fee 1-4 years old $85 5-8 years old $75 9-12 years old $55 13-16 years old $35 17 years and older $15

The bill will also change the way excise taxes are assessed on vehicle purchases, levying the tax on the actual sales price instead of the inflated sticker price as current law requires. The excise tax rate of 3.25 percent will remain the same.

The tag reduction and tax changes will return motorists an estimated $22 million a year, but that revenue will not come out of the back pockets of education, road construction or other services that currently receive vehicle dollars. That's because the bill contains a provision mandating that any funding losses be absorbed by the state general fund.

"Unlike some of the other proposals we considered this year, this bill protects funding for education and road construction. It gives the people a fair deal on car tags without gutting the services that they depend on. For that reason and others, it is the best proposal on the table," said Senator Maddox.

It's not yet clear whether Governor Keating will sign the car tag reform measure. Even though he vetoed similar legislation last year, Senator Maddox is optimistic that the Governor will be more receptive to the latest bill.

"I think we've delivered the Governor a better bill, one that addresses the concerns he raised last year. I think it would be difficult for Governor Keating to explain why he denied the people lower car tag fees two years in a row," said Senator Maddox.

(See Examples of Tag Savings Below)


Tag Facts - HB 2663 (House/Senate Compromise)

HB 2663 would provide savings to buyers of both new and used cars, and unlike current law, would apply the excise tax to the actual sales price, rather than the inflated sticker price.

Scenario 1:
New vehicle
Sticker Price: $25,000
Actual Sales Price: $22,500

Current Law HB 2663 Tax & Tag (year one) $1,134 $816 Tag (year two) $291 $85 Tag (year five) $216 $75 TOTAL (year 1-6) $2,338 $1,221

Scenario 2:
Used Vehicle, two-years old
Original Sticker Price: $35,000
Actual Sales Price: $19,000

Current Law HB 2663 Tax & Tag (year one) $820 $690 Tag (year two) $307 $85 Tag (year five) $228 $75 TOTAL (year 1-6) $2,089 $1,075

Scenario 3:
Used Vehicle, one-year old
Original Sticker Price:$35,000
Actual Sales Price:$20,000

Current Law HB 2663 Tax & Tag (year one) $1,120 $723 Tag (year two) $344 $85 Tag (year four) $282 $75 TOTAL (year 1-6) $2,543 $1,118

Scenario 4:
Used Vehicle, Three-years old
Original Sticker Price: $20,000
Actual Sales Price: $8,000

Current Law HB 2663 Tax & Tag (year one) $371 $333 Tag (year two) $175 $75 Tag (year six) $120 $55 TOTAL (year 1-6) $1,101 $688

Scenario 5:
Used Vehicle, 10-years old
Original Sticker Price: $10,000
Sales Price: $1,500

Current Law HB 2663 Tax & Tag (year one) $67 $91 Tag (year two) $55 $55 Tag (year three) $55 $35 TOTAL (year 1-6) $342 $286
Contact info
Senate Communications Division - (405) 521-5605