House Bill No. 2764 amends Oklahoma's revenue and taxation laws, particularly focusing on the responsibilities of the State Board of Equalization and adjustments to income tax rates. The bill mandates the Board to certify revenue amounts for specific fiscal years and determine income tax rate reductions based on these certifications. It introduces new definitions related to revenue collection and tax rate reductions, such as "base year total collections" and "income tax rate reduction threshold." Tax rate reductions are permitted upon certification by the Board, but are prohibited in cases of revenue failure declarations. The bill also updates statutory language, imposes new duties on the Board, and requires collaboration with government entities for effective implementation.

Furthermore, the bill revises the income tax structure for individuals and corporations, establishing new tax rates and brackets for the years 2024, 2025, and 2026. It introduces a tiered tax rate system for single individuals and married individuals filing separately, starting at 0.25% on the first $1,000 and reaching 4.75% on the remainder. For married couples filing jointly, the rates begin at 0.25% on the first $2,000. By 2026, the bill proposes further reductions, with single individuals paying 0% on the first $3,750 and married couples 0% on the first $7,500. Additionally, it reduces tax rates for nonresident aliens and foreign corporations and disallows deductions for federal income taxes paid when calculating taxable income. The State Board of Equalization is tasked with analyzing the revenue implications of these changes in December 2025 and February 2027, with the act 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