This bill amends Oklahoma's revenue and taxation statutes, specifically addressing the duties of the State Board of Equalization and the structure of income tax. It eliminates certain responsibilities of the Board and removes the requirement for tax rate reductions for specific years. The bill updates how revenue from oil, natural gas, and corporate income taxes is calculated for the General Revenue Fund, particularly in relation to the Revenue Stabilization Fund, ensuring that deposits to this fund are disregarded when calculating average revenue over the previous five fiscal years.

Furthermore, the bill introduces a new income tax rate schedule for individuals starting in the tax year 2026, which includes a 0% tax on the first $3,750 for single filers and $7,500 for married couples filing jointly. It also establishes a 4% tax on corporate taxable income, replacing the previous 30% rate, and disallows deductions for federal income taxes when calculating taxable income. The bill removes provisions for gradual tax rate reductions based on revenue collections and clarifies that fiduciaries will be taxed at the same rates as single individuals. The act is set to take effect on November 1, 2026.

Statutes affected:
Introduced: 62-34.103, 68-2355