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Oklahoma Legislature· HB 2228Referred to Appropriations and Budget Finance Subcommittee

An act relating to revenue and taxation, the official text

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1                   STATE OF OKLAHOMA

2   1st Session of the 60th Legislature (2025)

3 HOUSE BILL 2228               By: Munson

4

5

6                               AS INTRODUCED

7   An Act relating to revenue and taxation; amending 68

    O.S. 2021, Section 5011, which relates to eligibility

8   for computation within the Sales Tax Relief Act;

    modifying references to income amounts; prescribing

9   credit based upon income and certain other qualifying

    features; providing for credit phase out; providing

10  an effective date; and declaring an emergency.

11

12

13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

14  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 5011, is

15 amended to read as follows:

16  Section 5011. A. Except as otherwise provided by this section,

17 beginning with the calendar year 1990 and for each calendar year

18 through 1998, and for calendar year 2003, any individual who is a

19 resident of and is domiciled in this state during the entire

20 calendar year for which the filing is made and whose gross household

21 income for such year does not exceed Twelve Thousand Dollars

22 ($12,000.00) may file a claim for sales tax relief.

23  B. For calendar years 1999, 2002 and 2004, any individual who

24 is a resident of and is domiciled in this state during the entire

    Req. No. 11081                                               Page 1
1 calendar year for which the filing is made may file a claim for

2 sales tax relief if the gross household income for such year does

3 not exceed the following amounts:

4   1. For an individual not subject to the provisions of paragraph

5 2 of this subsection and claiming no allowable personal exemption

6 other than the allowable personal exemption for that individual or

7 the spouse of that individual, Fifteen Thousand Dollars

8 ($15,000.00); or

9   2. For an individual claiming one or more allowable personal

10 exemptions other than the allowable personal exemption for that

11 individual or the spouse of that individual, an individual with a

12 physical disability constituting a substantial handicap to

13 employment, or an individual who is sixty-five (65) years of age or

14 older at the close of the tax year, Thirty Thousand Dollars

15 ($30,000.00).

16  C. For calendar years 2000, 2001, 2005 and following, an

17 individual who is a resident of and is domiciled in this state

18 during the entire calendar year for which the filing is made may

19 file a claim for sales tax relief if the gross household income for

20 such year does not exceed the following amounts:

21  1. For an individual not subject to the provisions of paragraph

22 2 of this subsection and claiming no allowable personal exemption

23 other than the allowable personal exemption for that individual or

24

    Req. No. 11081                                                  Page 2
1 the spouse of that individual, Twenty Thousand Dollars ($20,000.00);

2 or

3     2. For an individual claiming one or more allowable personal

4 exemptions other than the allowable personal exemption for that

5 individual or the spouse of that individual, an individual with a

6 physical disability constituting a substantial handicap to

7 employment, or an individual who is sixty-five (65) years of age or

8 older at the close of the tax year, Fifty Thousand Dollars

9 ($50,000.00).

10    D. The amount of the claim filed pursuant to the Sales Tax

11 Relief Act shall be Forty Dollars ($40.00) based on the following

12 categories and amounts, multiplied by the number of allowable

13 personal exemptions.:

14 FILING           SINGLE 65 OR  DISABLED DEPENDENTS

15 CATEGORY         ADULT  OLDER

16 Gross

17 Household        Credit Credit Credit Credit

18 Income           Amount Amount Amount Amount

19 30,000 or less $200.00 $200.00 $200.00 $200.00

20 30,001-34,999 $200.00 $200.00 $200.00 $200.00

21 35,000-39,999 $200.00 $200.00 $200.00 $200.00

22 40,000-44,999 $200.00 $200.00 $200.00 $200.00

23 45,000-49,999 $200.00 $200.00 $200.00 $200.00

24 50,000-54,999 $200.00 $200.00 $200.00 $200.00

    Req. No. 11081                                                 Page 3
1 55,000-59,999 $200.00 $200.00 $200.00 $200.00

2 60,000 and over       $200.00 $200.00 $200.00 $200.00

3   As used in the Sales Tax Relief Act, "allowable personal

4 exemption" means a personal exemption to which the taxpayer would be

5 entitled pursuant to the provisions of the Oklahoma Income Tax Act,

6 except for:

7   1. The exemptions such taxpayer would be entitled to pursuant

8 to Section 2358 of this title if such taxpayer or spouse is blind or

9 sixty-five (65) years of age or older at the close of the tax year;

10  2. An exemption for a person convicted of a felony if during

11 all or any part of the calendar year for which the claim is filed

12 such person was an inmate in the custody of the Department of

13 Corrections; or

14  3. An exemption for a person if during all or any part of the

15 calendar year for which the claim is filed such person resided

16 outside of this state.

17  C. 1. If the gross household income exceeds Seventy-Five

18 Thousand Dollars ($75,000.00), the credit amount provided for in

19 subsection B of this section shall be reduced by 1.1429% for the

20 first dependent claimed, and an additional .5714% for each dependent

21 claimed thereafter;

22  2. If the gross household income exceeds Seventy-Five Thousand

23 Dollars ($75,000.00), and the taxpayer is sixty-five (65) years of

24

    Req. No. 11081                                                 Page 4
1 age or older, the credit amount provided for in subsection B of this

2 section shall be reduced by .5714%;

3   3. If the gross household income exceeds Seventy-Five Thousand

4 Dollars ($75,000.00), and the taxpayer is disabled, the credit

5 amount provided for in subsection B of this section shall be reduced

6 by .5714%; and

7   4. If the gross household income exceeds Fifty-Five Thousand

8 Dollars ($55,000.00), and the taxpayer is filing individually, the

9 credit amount provided for in subsection B of this section shall be

10 reduced by 1%.

11  E. D. A person convicted of a felony shall not be permitted to

12 file a claim for sales tax relief pursuant to the provisions of

13 Sections 5010 through 5016 of this title for the period of time

14 during which the person is an inmate in the custody of the

15 Department of Corrections. Such period of time shall include the

16 entire calendar year if the person is in the custody of the

17 Department of Corrections during any part of the calendar year. The

18 provisions of this subsection shall not prohibit all other members

19 of the household of an inmate from filing a claim based upon the

20 personal exemptions to which the household members would be entitled

21 pursuant to the provisions of the Oklahoma Income Tax Act.

22  F. E. The Department of Corrections shall withhold up to fifty

23 percent (50%) of any money inmates receive for claims made pursuant

24

    Req. No. 11081                                                  Page 5
1 to the Sales Tax Relief Act prior to September 1, 1991, for costs of

2 incarceration.

3   G. F. For purposes of Section 139.105 of Title 17 of the

4 Oklahoma Statutes, the gross household income of any individual who

5 may file a claim for sales tax relief shall not exceed Twelve

6 Thousand Dollars ($12,000.00).

7   SECTION 2. This act shall become effective July 1, 2025.

8   SECTION 3. It being immediately necessary for the preservation

9 of the public peace, health or safety, an emergency is hereby

10 declared to exist, by reason whereof this act shall take effect and

11 be in full force from and after its passage and approval.

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13  60-1-11081      AO  01/15/25

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    Req. No. 11081                                               Page 6
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