The Taxpayer Protection Act establishes a framework for Oklahoma to assert its sovereignty against perceived federal overreach in taxation. It creates the Federal Tax Fund, a revolving fund for the Oklahoma Tax Commission, which will receive all federal tax collections from the state. Taxpayers are required to electronically submit federal tax forms to the Tax Commission, which will review these filings and ensure compliance with state laws. The Act also stipulates that if the Tax Commission or Attorney General determines that any federal tax provisions are unconstitutional, disbursements to the U.S. Treasury will cease, and funds will be redirected to the Special Cash Fund of the State Treasury.

Additionally, the Act declares any federal fines or penalties imposed for compliance with its provisions as null and void, limiting enforcement to state penalties for noncompliance. It mandates that a simple majority vote of the Legislature will determine the constitutionality of any federal sanctions imposed as a result of the Act. The Governor is authorized to call a special session of the Legislature to address federal actions against the state, and all state officials are required to implement the Act regardless of federal opposition. The Act is set to take effect on November 1, 2025.