This bill amends Oklahoma tax law by modifying the duties of the State Board of Equalization and adjusting income tax rates. It mandates the Board to certify certain tax collections for specific fiscal years, including an itemized estimate of tax collections and revenue growth exceeding $400 million. New provisions will take effect in 2026, requiring the Board to assess and certify revenue estimates and growth, with inflation adjustments every ten years. Tax rates will be reduced based on the Board's certification of revenue growth, but reductions will be prohibited during declared revenue failures. Additionally, the bill establishes a new income tax structure for individuals, with lower tax rates starting in 2024 and further reductions planned for 2025, while disallowing deductions for federal income taxes paid.

The bill also significantly alters the taxation of nonresident aliens and foreign corporations in Oklahoma. It reduces the tax rate for nonresident aliens from 30% to 8% on their Oklahoma taxable income and requires payers to withhold this tax with specific reporting obligations to the Oklahoma Tax Commission. For foreign corporations, the tax rate is lowered from 30% to 4% for income sourced within the state, with similar withholding and reporting requirements. The legislation introduces new legal language regarding the Board's certification process, updates references to the Oklahoma Tax Commission, and clarifies that fiduciaries will be taxed at the same rates as single individuals. The bill declares an emergency, allowing it to take effect immediately upon passage and approval.

Statutes affected:
Introduced: 68-2355