The bill amends Oklahoma's income tax laws, introducing a new tiered tax structure for individuals starting in tax year 2024, with rates beginning at 0.25% and increasing to 4.75% for taxable income. For tax year 2025 and beyond, a flat tax rate of 4.75% will apply to all individuals. Additionally, the bill reduces the tax rate for nonresident aliens from 30% to 8% and maintains a 4% tax rate for corporations. It also updates statutory references, incorporates the Internal Revenue Code of 1986, and modifies personal exemptions and standard deductions for specific tax years. The bill declares an emergency for immediate effect upon passage, aiming to streamline the tax process and potentially reduce the tax burden on individuals and corporations.

Further amendments focus on the allocation of income and taxation for businesses, clarifying how income from property with a nonunitary business should be allocated based on location and specifying the inclusion of interest income from investments in apportionable income. The bill also modifies the treatment of insurance companies' taxable income and introduces new exemptions and deductions, such as a $1,000 exemption for individuals who are blind or aged 65 and older. Significant legal language changes include the insertion of "of 1986, as amended" in various sections and the replacement of "Oklahoma" with "this state" for consistency. Overall, the bill aims to refine the tax framework for individuals and businesses while ensuring compliance with federal tax regulations.

Statutes affected:
Introduced: 68-2355, 68-2358