The bill amends Section 2355 of the Oklahoma Statutes to introduce a new income tax structure for individuals and corporations, effective January 1, 2024. It establishes lower tax rates for individuals, starting at 0.25% on the first $1,000 and increasing to 4.75% on higher income brackets. Additionally, the bill creates a mechanism for further tax rate reductions based on "qualifying cumulative revenue growth," defined as an increase of at least $300 million in total revenue collections, with the State Board of Equalization responsible for determining if these conditions are met. The tax rate for nonresident aliens is significantly reduced from 30% to 8%, while the corporate tax rate remains at 4%.

Furthermore, the bill updates the taxation of income for trusts and estates, imposing a tax at the same rates applicable to single individuals and clarifying that fiduciaries cannot deduct federal income tax paid. It modifies tax rate tables for individuals and includes several insertions to enhance clarity and consistency in tax law, particularly regarding the Tax Commission's role in determining the "ceiling amount" for taxpayers. The act is set to take effect on November 1, 2025, following its passage in the House of Representatives on March 25, 2025.

Statutes affected:
Introduced: 68-2355
Floor (House): 68-2355
Floor (Senate): 68-2355
Engrossed: 68-2355
Amended And Engrossed: 68-2355