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 for specific fiscal years, including an itemized estimate for the upcoming fiscal year and a comparison of actual collections to estimates. A new certification process will begin in February 2026, which will allow for adjustments to the revenue growth threshold based on inflation. The bill also revises the income tax structure, introducing new tax rates effective for taxable years starting January 1, 2024, and establishes a framework for reducing marginal tax rates when revenue growth exceeds $400 million, while preventing reductions during revenue failures.

Additionally, the bill modifies the Oklahoma Income Tax Act by lowering tax rates for nonresident aliens from 30% to 8% and for foreign corporations from 30% to 4% on income sourced within the state. It outlines the responsibilities of payers to withhold and remit these taxes to the Oklahoma Tax Commission, including the requirement for written statements to payees. The bill also updates various legal references and clarifies that fiduciaries will be taxed at the same rates as single individuals. It declares an emergency, allowing for immediate implementation upon passage and approval.

Statutes affected:
Introduced: 68-2355