The proposed Taxpayer Protection Act aims to assert Oklahoma's sovereignty against perceived federal overreach, particularly regarding taxation and the authority of the Internal Revenue Service (IRS). The Act establishes the Federal Tax Fund, a revolving fund for the Oklahoma Tax Commission, which will collect federal tax withholdings and estimated payments. Taxpayers will be required to electronically submit federal tax forms to the Tax Commission, which will review compliance and file these forms on behalf of taxpayers. The Act also stipulates that any federal fines or penalties for compliance with its provisions will be deemed null and void, and noncompliance will only incur penalties under Oklahoma law.

Additionally, the Act empowers the Legislature to determine the constitutionality of federal sanctions imposed as a result of its implementation, with a simple majority vote required for such determinations. If deemed unconstitutional, funds in the Federal Tax Fund will be transferred to the Special Cash Fund of the State Treasury. The Act mandates that state officials, including the Governor, implement its provisions regardless of federal opposition and allows the Governor to call a special legislative session to address any federal actions against the state. The Act is set to take effect on November 1, 2025.