Okla. Stat. tit. 68, § 68-2358.5: Interest on certain governmental obligations exempt

from income tax.

A. Interest on local governmental obligations issued after the

effective date of this act for purposes other than to provide

financing for projects for nonprofit corporations shall be exempt

from Oklahoma income taxation. For these purposes, local

governmental obligations shall include bonds or notes issued by, or

on behalf of, or for the benefit of Oklahoma educational

institutions, cities, towns, or counties or by public trusts of

which any of the foregoing is a beneficiary.

B. Interest on governmental obligations issued by the Oklahoma

Department of Transportation after the effective date of this act

for purposes of highway construction and maintenance shall be exempt

from Oklahoma income taxation.