Oklahoma Vehicle Excise Tax Exemption for 100 Percent Disabled Veterans

A veteran paid by VA at the 100 percent rate for a permanent service-connected disability pays no Oklahoma motor vehicle excise tax on one vehicle every three years, or sooner if the vehicle is a total loss. There is no surviving spouse route.

Also called: 68 O.S. 2105, motor vehicle excise tax, three years, total loss, Service Oklahoma, Form 701-31.

For: Veteran or service member.

Where it applies

Written for the jurisdictions listed here.

OklahomaState

Oklahoma charges an excise tax when a vehicle is titled, in place of sales tax. Title 68, section 2105, paragraph 16 exempts "any vehicle which is purchased by an individual who has been honorably discharged from active service in any branch of the Armed Forces of the United States or Oklahoma National Guard" whom VA or the Armed Forces certify "to be a disabled veteran in receipt of compensation at the one-hundred- percent rate for a permanent disability", and who is registered with the Veterans Registry, unless the veteran already received the exemption before registration was required. The limit. The exemption "may not be claimed by an individual for more than one vehicle in a consecutive three-year period, unless the vehicle is a replacement for a vehicle which was destroyed and declared by the insurer to be a total loss claim". It is the veteran's purchase, so a surviving spouse cannot claim it; the Army benefits library says the same. How to claim. At titling with Service Oklahoma or a tag agent, with the 100 percent letter or the sales tax exemption card. As with the other 100 percent benefits the test is the rate of pay and permanence, so a permanent unemployability rating qualifies.

Thresholds

Thresholds for Oklahoma Vehicle Excise Tax Exemption for 100 Percent Disabled Veterans
Gate	Rule
Paid at the 100 percent rate on a schedular rating	68 O.S. § 2105(16): "in receipt of compensation at the one-hundred-percent rate" for a disability that "shall be permanent".
The disability must be permanent	68 O.S. § 2105(16). A temporary 100 percent rating does not meet the words.
Or paid at the 100 percent rate through individual unemployability	68 O.S. § 2105(16). The test is the rate of compensation, which unemployability pays, not the schedular percentage.
Permanent on the unemployability route too	68 O.S. § 2105(16). Unemployability that VA has not found permanent does not meet the words.
One vehicle every three years unless the last was a total loss	68 O.S. § 2105(16).

Sources

Title 68, Revenue and Taxation (68 O.S. § 2105)Official
Service Oklahoma, military and veteransOfficial

Legislation

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2017 Okla. Sess. Laws c. 229 (HB 1198) Created the Oklahoma Veterans Registry and made registration a condition of most state veteran benefits

Catalog reconciledEnactedProgram created Scope changed

Signed 2017-05-12Takes effect 2020-11-01

Introduced Done, 2017-02-06, step 1 of 6
In committee Done, 2017-02-07, step 2 of 6
Passed one chamber Done, 2017-03-20, step 3 of 6
Passed both chambers Done, 2017-05-04, step 4 of 6
Signed by the governor Done, 2017-05-12, step 5 of 6
In effect Done, 2020-11-01, step 6 of 6

Restricts benefits Made registration with the Veterans Registry a condition of most state veteran benefits.

Created 72 O.S. § 421 and, from November 1, 2020, required registration with the Veterans Registry for the disabled veteran sales tax and vehicle excise tax exemptions, the 100 percent driver licence fee waiver, the licence veteran designation, disabled veteran hunting and fishing licences and the private employer preference. Approved May 12, 2017. The Department of Veterans Affairs registry page attributes the requirement to "Senate Bill 1215, effective November 1, 2021"; SB 1215 of 2020 and of 2022 concerned alcoholic beverage receipts and pharmacist prescribing.

Updated

Last updated 2026-09-30.

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Disclaimer

VetTOC is not affiliated with the U.S. Department of Veterans Affairs or the Department of Defense. Information is for reference only and is not an eligibility determination. Verify with VA, the relevant state or territory, or an accredited VSO.