The bill proposes significant amendments to Oklahoma's income tax laws, focusing on tax rates and exemptions for individuals and corporations. Starting in tax year 2024, a new tiered tax rate structure will be implemented for individuals, beginning at 0.25% and increasing to 4.75% for taxable income. From tax year 2025 onward, a flat tax rate of 4.75% will apply to all individuals, with no deductions for federal income taxes allowed. The bill also reduces tax rates for nonresident aliens and foreign corporations from 30% to 8% and 4%, respectively. Additionally, it introduces new exemptions, such as a $1,000 exemption for blind individuals and those aged 65 or older, and modifies the standard deduction amounts for various filing statuses.

Furthermore, the bill updates statutory language to align with the Internal Revenue Code of 1986, as amended, and introduces provisions for the allocation of capital gains or losses from publicly traded partnerships. It establishes a tax exemption for owners of new or expanded agricultural commodity processing facilities and allows for adjustments to the percentage of investment excluded from taxable income. The bill also clarifies the treatment of farming losses and introduces deductions for contributions to Oklahoma College Savings Plan accounts, organ donations, and retirement benefits for military and civil service retirees. Overall, the legislation aims to streamline tax calculations, enhance revenue collection, and provide targeted tax relief to specific groups.

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