The bill amends various sections of the Oklahoma income tax code, focusing on adjustments to taxable income for individuals and corporations. Key changes include the elimination of limitations on itemizing wagering losses, allowing taxpayers to deduct these losses without restriction. The bill also updates statutory language, replacing "Federal" with "United States" and "State" with "Oklahoma" in multiple instances. Additionally, it introduces new standard deduction amounts for different filing statuses, with specific increases outlined for taxable years from 2006 to 2017, and establishes a cap on itemized deductions at $17,000 for taxable years beginning on or after January 1, 2018.

Moreover, the bill proposes new tax exemptions and deductions, particularly for retirement benefits, contributions to college savings plans, and organ donations. It gradually increases the percentage of retirement benefits exempt from taxable income for Armed Forces and federal civil service retirees. The bill also clarifies the treatment of capital gains from the sale of property in Oklahoma, ensuring certain payments, such as those for organ donations, are exempt from taxable income. Overall, the bill aims to modernize the tax code, promote agricultural investment, and provide tax relief to specific sectors while ensuring compliance with federal tax standards.

Statutes affected:
Introduced: 68-2358