This bill amends Oklahoma tax law by modifying the responsibilities of the State Board of Equalization and adjusting individual income tax rates. It mandates the Board to certify revenue collections and estimates for upcoming fiscal years, particularly focusing on revenues from oil, natural gas, and corporate income tax. A significant new requirement is introduced, which obligates the Board to provide an itemized estimate of all state tax collections starting in February 2026. Additionally, the bill establishes a threshold for tax rate reductions based on revenue growth exceeding $400 million, adjusted for inflation, ensuring that tax relief is tied to fiscal performance.

The legislation also proposes substantial changes to the taxation of nonresident aliens and corporations, reducing the tax rate for nonresident aliens from thirty percent (30%) to eight percent (8%) on their Oklahoma taxable income, and for foreign corporations from thirty percent (30%) to four percent (4%) on income sourced within the state. Furthermore, it aligns the tax rates for fiduciaries, trusts, and estates with those of single individuals and introduces a new tax rate table for individuals with taxable income below a specified ceiling. The bill includes various insertions to clarify provisions and ensure compliance with the Oklahoma Income Tax Act, while deleting references to the State of Oklahoma for more general language. An emergency clause is included, allowing the act to take effect immediately upon passage and approval.

Statutes affected:
Introduced: 68-2355