Governor Kevin Stitt signed the motor vehicle excise tax change into law Thursday. 

House Bill 1183 will simplify how motor vehicle excise tax is determined for vehicle purchases by requiring the tax to be based on the actual sales price of the vehicle. Any consideration to the average retail price of the vehicle is removed from the formula for determining the tax.

The signed bill eliminates the 20% adjustment above and below the average retail price when determining the taxable value.

The bill is set to take effect on July 1, 2026 to allow Service Oklahoma time to adjust for the change.

Sen. Avery Frix, R-Muskogee, authored the bill in the state Senate.