Bill No. 304 proposes comprehensive amendments to the Oklahoma income tax code, focusing on tax rates, personal exemptions, and standard deductions. Starting from tax year 2024, the bill introduces new tax brackets with a lower tax rate structure for individuals, beginning at 0.25% for the first $1,000 for single filers and 0.25% for the first $2,000 for married couples filing jointly, both reaching a maximum of 4.75% on the remainder. The bill also eliminates the allowance for federal income tax deductions when calculating taxable income. Additionally, it reduces the tax rate for nonresident aliens from 30% to 8% and establishes a flat tax rate of 4.75% for all individuals starting in 2025, while updating references to the Internal Revenue Code to the version of 1986, as amended.

Further amendments include changes to the treatment of income for unitary business enterprises and insurance companies, as well as provisions for agricultural commodity processing facilities, allowing tax exemptions for new or expanded facilities. The bill introduces new standard deduction amounts for individuals starting in 2025, with specific figures for different filing statuses, and modifies moving expense deductions. It also clarifies the treatment of contributions to the Oklahoma College Savings Plan and establishes deductions for contributions to the ABLE program and for individuals donating human organs. Overall, the bill aims to modernize the tax code, simplify tax calculations, and provide additional benefits to taxpayers, with an effective date of November 1, 2025.

Statutes affected:
Introduced: 68-2355, 68-2358
Committee Substitute: 68-2355, 68-2358
Floor (House): 68-2355, 68-2358
Floor (Senate): 68-2355, 68-2358
Engrossed: 68-2355, 68-2358