The bill amends Section 2355 of the Oklahoma Statutes to introduce a new income tax structure for individuals, effective January 1, 2024. The new rates are set at 0.25% for the first $1,000, 0.75% for the next $1,500, 1.75% for the next $1,250, 2.75% for the next $1,150, 3.75% for the next $2,300, and 4.75% on the remainder. It also establishes a mechanism for further tax reductions based on "qualifying cumulative revenue growth," defined as an increase of at least $300 million in total revenue collections compared to a base year, with the State Board of Equalization responsible for determining compliance with these conditions. Additionally, the bill reduces the tax rate for nonresident aliens from 30% to 8% while maintaining a 4% rate for corporations.

Moreover, the bill updates reporting requirements for payers regarding withholding taxes and the taxation of trusts and estates. It mandates that payers provide a written statement to each payee by January 31 of the following year, detailing necessary tax information. Non-compliance with these withholding requirements will result in personal liability to the State of Oklahoma. The tax rates for trusts and estates will be aligned with those for single individuals, and the tax rate tables for individuals will be modified to reflect a new structure determined by the Tax Commission. The act is set to take effect on November 1, 2025.

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