House Bill No. 2764 amends Oklahoma's revenue and taxation laws, focusing on the responsibilities of the State Board of Equalization and the structure of income tax rates. The bill mandates the Board to certify specific revenue amounts for designated fiscal years and to determine income tax rate reductions based on these certifications. It introduces new terms such as "base year total collections" and "income tax rate reduction threshold," which will guide the Board's assessments. The legislation stipulates that tax rates can only be reduced if certain revenue conditions are met and prohibits reductions during declared revenue failures. Additionally, it modifies tax rates for certain tax years and outlines the process for implementing these reductions, emphasizing the Board's role in revenue certification and reporting.

The bill also revises the income tax structure for individuals and corporations, introducing new tax rates effective for tax years 2024 and beyond. For single individuals and married individuals filing separately, the tax rates will start at 0.25% on the first $1,000 and increase to 4.75% on the remainder, while married couples filing jointly will have similar rates starting at 0.25% on the first $2,000. For tax year 2026 and beyond, a new tax structure will apply, featuring a 0% tax on the first $3,750 for single individuals and $7,500 for married couples, with rates increasing thereafter. The bill also establishes an 8% tax rate for nonresident aliens, replacing the previous 30% rate, and sets a corporate tax rate of 4% for corporations operating in Oklahoma. The provisions are designed to ensure fiscal responsibility and are set to take effect on November 1, 2025.

Statutes affected:
House Committee Substitute: 68-2355
Floor (House): 68-2355
Engrossed: 68-2355
Enrolled (final version): 68-2355