1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 1 By: Bergstrom
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6 AS INTRODUCED
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7 An Act relating to taxation; amending 62 O.S. 2021,
7 Section 34.103, which relates to the duties of the
8 State Board of Equalization; requiring certification
8 of certain collections in certain fiscal years;
9 amending 68 O.S. 2021, Section 2355, as last amended
9 by Section 1, Chapter 27, 1st Extraordinary Session,
10 O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), which
10 relates to income tax; modifying tax rates for
11 certain tax years; requiring the reduction of tax
11 rates for certain tax years upon certain
12 certification by the State Board of Equalization;
12 prohibiting reduction of certain rates upon
13 declaration of revenue failure; updating statutory
13 language and references; and declaring an emergency.
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16 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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17 SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.103, is
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18 amended to read as follows:
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19 Section 34.103. A. In addition to any other duties prescribed
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20 by law, at the meeting required by Section 23 of Article X of the
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21 Oklahoma Constitution to be held in February of 2017, and at the
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22 February meeting of the State Board of Equalization each year
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23 thereafter, the State Board of Equalization shall certify:
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 1 1. For the revenue derived from the tax levied on oil pursuant
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2 to Section 1001 of Title 68 of the Oklahoma Statutes, which would
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3 otherwise be apportioned to the General Revenue Fund, the average
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4 annual amount of actual revenue apportioned to the General Revenue
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5 Fund for the immediately preceding five (5) complete fiscal years.
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6 For any year after the first year during which a deposit to the
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7 Revenue Stabilization Fund is made, the amount of any deposit to the
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8 Revenue Stabilization Fund shall be disregarded for purposes of this
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9 paragraph and the average shall be computed using the total amount
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10 of revenue that was available to be apportioned to the General
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11 Revenue Fund for the applicable period of time;
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12 2. For the revenue derived from the tax levied on natural gas
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13 pursuant to Section 1001 of Title 68 of the Oklahoma Statutes, which
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14 would otherwise be apportioned to the General Revenue Fund, the
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15 average annual amount of actual revenue apportioned to the General
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16 Revenue Fund for the previous five (5) fiscal years. For any year
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17 after the first year during which a deposit to the Revenue
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18 Stabilization Fund is made, the amount of any deposit to the Revenue
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19 Stabilization Fund shall be disregarded for purposes of this
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20 paragraph and the average shall be computed using the total amount
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21 of revenue that was available to be apportioned to the General
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22 Revenue Fund for the applicable period of time; and
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23 3. For the revenue derived from the corporate income tax levied
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24 pursuant to Section 2355 of Title 68 the Oklahoma Statutes, which
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 1 would otherwise be apportioned to the General Revenue Fund, the
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2 average annual amount of actual revenue apportioned to the General
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3 Revenue Fund for the previous five (5) fiscal years. For any year
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4 after the first year during which a deposit to the Revenue
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5 Stabilization Fund is made, the amount of any deposit to the Revenue
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6 Stabilization Fund shall be disregarded for purposes of this
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7 paragraph and the average shall be computed using the total amount
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8 of revenue that was available to be apportioned to the General
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9 Revenue Fund for the applicable period of time.
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10 B. If the amount of revenue available for apportionment to the
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11 General Revenue Fund for the next ensuing fiscal year exceeds the
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12 amounts certified pursuant to paragraph 1 or 2 of subsection A of
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13 this section, with respect to each such revenue source, one hundred
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14 percent (100%) of such amount in excess of the separately computed
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15 five-year average, which would otherwise be apportioned to the
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16 General Revenue Fund, shall be deposited to the credit of the
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17 Revenue Stabilization Fund.
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18 C. If the amount of revenue available for apportionment to the
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19 General Revenue Fund for the next ensuing fiscal year exceeds the
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20 amount certified pursuant to paragraph 3 of subsection A of this
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21 section:
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22 1. Twenty-five percent (25%) of such amount in excess of the
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23 five-year average, which would otherwise be apportioned to the
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24 General Revenue Fund, shall be deposited to the credit of the
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 1 Constitutional Reserve Fund unless such deposit would exceed the
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2 maximum balance permitted pursuant to Section 23 of Article X of the
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3 Oklahoma Constitution and in such case the amount in excess of the
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4 maximum balance shall be deposited to the credit of the Revenue
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5 Stabilization Fund; and
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6 2. Seventy-five percent (75%) of such amount in excess of the
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7 five-year average, which would otherwise be apportioned to the
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8 General Revenue Fund, shall be deposited to the credit of the
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9 Revenue Stabilization Fund, together with any amount required for
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10 deposit pursuant to the provisions of paragraph 1 of this
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11 subsection.
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12 D. In addition to any other duties prescribed by law, at the
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13 meeting required by Section 23 of Article X of the Oklahoma
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14 Constitution to be held in February of 2026, and at the February
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15 meeting of the State Board of Equalization each year thereafter, the
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16 State Board of Equalization shall certify:
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17 1. For the revenue derived from all taxes levied by this state,
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18 an itemized estimate of collections for the ensuing fiscal year;
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19 2. For the revenue derived from all taxes levied by this state,
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20 whether the difference between the itemized estimate certified
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21 pursuant to paragraph 1 of this subsection and the actual
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22 collections in fiscal year 2024 exceeds Four Hundred Million Dollars
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23 ($400,000,000.00) in growth, until a reduction in the marginal tax
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 1 rates occurs pursuant to subsection D of Section 2355 of Title 68 of
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2 the Oklahoma Statutes; and
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3 3. For the revenue derived from all taxes levied by this state,
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4 whether the difference between the itemized estimate certified
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5 pursuant to paragraph 1 of this subsection and the actual
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6 collections in the latest full fiscal year before the most recent
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7 reduction in the marginal tax rates pursuant to subsection D of
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8 Section 2355 of Title 68 of the Oklahoma Statutes exceeds Four
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9 Hundred Million Dollars ($400,000,000.00) in growth.
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10 On July 1, 2035, and every ten (10) years thereafter, the
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11 threshold of Four Hundred Million Dollars ($400,000,000.00) provided
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12 in paragraphs 2 and 3 of this subsection shall be adjusted for
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13 inflation to reflect the percentage change in the Consumer Price
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14 Index published by the Bureau of Labor Statistics of the United
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15 States Department of Labor for that period.
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16 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2355, as
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17 last amended by Section 1, Chapter 27, 1st Extraordinary Session,
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18 O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), is amended to read
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19 as follows:
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20 Section 2355. A. Individuals. For all taxable years beginning
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21 after December 31, 1998, and before January 1, 2006, a tax is hereby
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22 imposed upon the Oklahoma taxable income of every resident or
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23 nonresident individual, which tax shall be computed at the option of
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24 the taxpayer under one of the two following methods:
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 1 1. METHOD 1.
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2 a. Single individuals and married individuals filing
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3 separately not deducting federal income tax:
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4 (1) 1/2% tax on first $1,000.00 or part thereof,
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5 (2) 1% tax on next $1,500.00 or part thereof,
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6 (3) 2% tax on next $1,250.00 or part thereof,
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7 (4) 3% tax on next $1,150.00 or part thereof,
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8 (5) 4% tax on next $1,300.00 or part thereof,
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9 (6) 5% tax on next $1,500.00 or part thereof,
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10 (7) 6% tax on next $2,300.00 or part thereof, and
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11 (8) (a) for taxable years beginning after December
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12 31, 1998, and before January 1, 2002, 6.75%
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13 tax on the remainder,
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14 (b) for taxable years beginning on or after
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15 January 1, 2002, and before January 1, 2004,
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16 7% tax on the remainder, and
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17 (c) for taxable years beginning on or after
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18 January 1, 2004, 6.65% tax on the remainder.
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19 b. Married individuals filing jointly and surviving
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20 spouse to the extent and in the manner that a
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21 surviving spouse is permitted to file a joint return
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22 under the provisions of the Internal Revenue Code and
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23 heads of households as defined in the Internal Revenue
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24 Code not deducting federal income tax:
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 1 (1) 1/2% tax on first $2,000.00 or part thereof,
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2 (2) 1% tax on next $3,000.00 or part thereof,
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3 (3) 2% tax on next $2,500.00 or part thereof,
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4 (4) 3% tax on next $2,300.00 or part thereof,
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5 (5) 4% tax on next $2,400.00 or part thereof,
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6 (6) 5% tax on next $2,800.00 or part thereof,
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7 (7) 6% tax on next $6,000.00 or part thereof, and
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8 (8) (a) for taxable years beginning after December
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9 31, 1998, and before January 1, 2002, 6.75%
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10 tax on the remainder,
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11 (b) for taxable years beginning on or after
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12 January 1, 2002, and before January 1, 2004,
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13 7% tax on the remainder, and
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14 (c) for taxable years beginning on or after
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15 January 1, 2004, 6.65% tax on the remainder.
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16 2. METHOD 2.
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17 a. Single individuals and married individuals filing
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18 separately deducting federal income tax:
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19 (1) 1/2% tax on first $1,000.00 or part thereof,
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20 (2) 1% tax on next $1,500.00 or part thereof,
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21 (3) 2% tax on next $1,250.00 or part thereof,
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22 (4) 3% tax on next $1,150.00 or part thereof,
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23 (5) 4% tax on next $1,200.00 or part thereof,
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24 (6) 5% tax on next $1,400.00 or part thereof,
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 1 (7) 6% tax on next $1,500.00 or part thereof,
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2 (8) 7% tax on next $1,500.00 or part thereof,
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3 (9) 8% tax on next $2,000.00 or part thereof,
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4 (10) 9% tax on next $3,500.00 or part thereof, and
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5 (11) 10% tax on the remainder.
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6 b. Married individuals filing jointly and surviving
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7 spouse to the extent and in the manner that a
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8 surviving spouse is permitted to file a joint return
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9 under the provisions of the Internal Revenue Code and
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10 heads of households as defined in the Internal Revenue
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11 Code deducting federal income tax:
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12 (1) 1/2% tax on the first $2,000.00 or part thereof,
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13 (2) 1% tax on the next $3,000.00 or part thereof,
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14 (3) 2% tax on the next $2,500.00 or part thereof,
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15 (4) 3% tax on the next $1,400.00 or part thereof,
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16 (5) 4% tax on the next $1,500.00 or part thereof,
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17 (6) 5% tax on the next $1,600.00 or part thereof,
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18 (7) 6% tax on the next $1,250.00 or part thereof,
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19 (8) 7% tax on the next $1,750.00 or part thereof,
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20 (9) 8% tax on the next $3,000.00 or part thereof,
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21 (10) 9% tax on the next $6,000.00 or part thereof, and
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22 (11) 10% tax on the remainder.
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23 B. Individuals. For all taxable years beginning on or after
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24 January 1, 2008, and ending any tax year which begins after December
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 1 31, 2015, for which the determination required pursuant to Sections
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2 4 2355.1F and 5 Section 2355.1G of this act title is made by the
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3 State Board of Equalization, a tax is hereby imposed upon the
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4 Oklahoma taxable income of every resident or nonresident individual,
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5 which tax shall be computed as follows:
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6 1. Single individuals and married individuals filing
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7 separately:
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8 (a) 1/2% tax on first $1,000.00 or part thereof,
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9 (b) 1% tax on next $1,500.00 or part thereof,
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10 (c) 2% tax on next $1,250.00 or part thereof,
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11 (d) 3% tax on next $1,150.00 or part thereof,
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12 (e) 4% tax on next $2,300.00 or part thereof,
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13 (f) 5% tax on next $1,500.00 or part thereof,
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14 (g) 5.50% tax on the remainder for the 2008 tax year and
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15 any subsequent tax year unless the rate prescribed by
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16 subparagraph (h) of this paragraph is in effect, and
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17 (h) 5.25% tax on the remainder for the 2009 and subsequent
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18 tax years. The decrease in the top marginal
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19 individual income tax rate otherwise authorized by
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20 this subparagraph shall be contingent upon the
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21 determination required to be made by the State Board
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22 of Equalization pursuant to Section 2355.1A of this
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23 title.
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 1 2. Married individuals filing jointly and surviving spouse to
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2 the extent and in the manner that a surviving spouse is permitted to
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3 file a joint return under the provisions of the Internal Revenue
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4 Code and heads of households as defined in the Internal Revenue
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5 Code:
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6 (a) 1/2% tax on first $2,000.00 or part thereof,
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7 (b) 1% tax on next $3,000.00 or part thereof,
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8 (c) 2% tax on next $2,500.00 or part thereof,
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9 (d) 3% tax on next $2,300.00 or part thereof,
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10 (e) 4% tax on next $2,400.00 or part thereof,
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11 (f) 5% tax on next $2,800.00 or part thereof,
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12 (g) 5.50% tax on the remainder for the 2008 tax year and
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13 any subsequent tax year unless the rate prescribed by
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14 subparagraph (h) of this paragraph is in effect, and
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15 (h) 5.25% tax on the remainder for the 2009 and subsequent
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16 tax years. The decrease in the top marginal
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17 individual income tax rate otherwise authorized by
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18 this subparagraph shall be contingent upon the
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19 determination required to be made by the State Board
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20 of Equalization pursuant to Section 2355.1A of this
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21 title.
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22 C. Individuals. For all taxable years beginning on or after
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23 January 1, 2024, a tax is hereby imposed upon the Oklahoma taxable
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Req. No.