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1 STATE OF OKLAHOMA
1
2 2nd Session of the 60th Legislature (2026)
2
3 SENATE BILL 1302 By: Kirt
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to revenue and taxation; amending 62
7 O.S. 2021, Section 34.103, as amended by Section 1,
8 Chapter 307, O.S.L. 2025 (62 O.S. Supp. 2025, Section
8 34.103), which relates to the duties of the State
9 Board of Equalization; eliminating certain duties;
9 amending 68 O.S. 2021, Section 2355, as last amended
10 by Section 2, Chapter 307, O.S.L. 2025 (68 O.S. Supp.
10 2025, Section 2355), which relates to income tax;
11 eliminating required reduction of tax rates for
11 certain tax years; updating statutory references; and
12 providing an effective date.
12
13
13
14
14
15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
15
16 SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.103, as
16
17 amended by Section 1, Chapter 307, O.S.L. 2025 (62 O.S. Supp. 2025,
17
18 Section 34.103), is amended to read as follows:
18
19 Section 34.103. A. In addition to any other duties prescribed
19
20 by law, at the meeting required by Section 23 of Article X of the
20
21 Oklahoma Constitution to be held in February of 2017, and at the
21
22 February meeting of the State Board of Equalization each year
22
23 thereafter, the State Board of Equalization shall certify:
23
24
24
Req. No. 2752 Page 1
1 1. For the revenue derived from the tax levied on oil pursuant
1
2 to Section 1001 of Title 68 of the Oklahoma Statutes, which would
2
3 otherwise be apportioned to the General Revenue Fund, the average
3
4 annual amount of actual revenue apportioned to the General Revenue
4
5 Fund for the immediately preceding five (5) complete fiscal years.
5
6 For any year after the first year during which a deposit to the
6
7 Revenue Stabilization Fund is made, the amount of any deposit to the
7
8 Revenue Stabilization Fund shall be disregarded for purposes of this
8
9 paragraph and the average shall be computed using the total amount
9
10 of revenue that was available to be apportioned to the General
10
11 Revenue Fund for the applicable period of time;
11
12 2. For the revenue derived from the tax levied on natural gas
12
13 pursuant to Section 1001 of Title 68 of the Oklahoma Statutes, which
13
14 would otherwise be apportioned to the General Revenue Fund, the
14
15 average annual amount of actual revenue apportioned to the General
15
16 Revenue Fund for the previous five (5) fiscal years. For any year
16
17 after the first year during which a deposit to the Revenue
17
18 Stabilization Fund is made, the amount of any deposit to the Revenue
18
19 Stabilization Fund shall be disregarded for purposes of this
19
20 paragraph and the average shall be computed using the total amount
20
21 of revenue that was available to be apportioned to the General
21
22 Revenue Fund for the applicable period of time; and
22
23 3. For the revenue derived from the corporate income tax levied
23
24 pursuant to Section 2355 of Title 68 the Oklahoma Statutes, which
24
Req. No. 2752 Page 2
1 would otherwise be apportioned to the General Revenue Fund, the
1
2 average annual amount of actual revenue apportioned to the General
2
3 Revenue Fund for the previous five (5) fiscal years. For any year
3
4 after the first year during which a deposit to the Revenue
4
5 Stabilization Fund is made, the amount of any deposit to the Revenue
5
6 Stabilization Fund shall be disregarded for purposes of this
6
7 paragraph and the average shall be computed using the total amount
7
8 of revenue that was available to be apportioned to the General
8
9 Revenue Fund for the applicable period of time.
9
10 B. If the amount of revenue available for apportionment to the
10
11 General Revenue Fund for the next ensuing fiscal year exceeds the
11
12 amounts certified pursuant to paragraph 1 or 2 of subsection A of
12
13 this section, with respect to each such revenue source, one hundred
13
14 percent (100%) of such amount in excess of the separately computed
14
15 five-year average, which would otherwise be apportioned to the
15
16 General Revenue Fund, shall be deposited to the credit of the
16
17 Revenue Stabilization Fund.
17
18 C. If the amount of revenue available for apportionment to the
18
19 General Revenue Fund for the next ensuing fiscal year exceeds the
19
20 amount certified pursuant to paragraph 3 of subsection A of this
20
21 section:
21
22 1. Twenty-five percent (25%) of such amount in excess of the
22
23 five-year average, which would otherwise be apportioned to the
23
24 General Revenue Fund, shall be deposited to the credit of the
24
Req. No. 2752 Page 3
1 Constitutional Reserve Fund unless such deposit would exceed the
1
2 maximum balance permitted pursuant to Section 23 of Article X of the
2
3 Oklahoma Constitution and in such case the amount in excess of the
3
4 maximum balance shall be deposited to the credit of the Revenue
4
5 Stabilization Fund; and
5
6 2. Seventy-five percent (75%) of such amount in excess of the
6
7 five-year average, which would otherwise be apportioned to the
7
8 General Revenue Fund, shall be deposited to the credit of the
8
9 Revenue Stabilization Fund, together with any amount required for
9
10 deposit pursuant to the provisions of paragraph 1 of this
10
11 subsection.
11
12 D. 1. As used in this subsection and as used in subsection D
12
13 of Section 2355 of Title 68 of the Oklahoma Statutes:
13
14 a. "base year total collections" means the amount of
14
15 revenue certified by the State Board of Equalization
15
16 at its December meeting and includes all revenue
16
17 sources reported in the annual report of the Oklahoma
17
18 Tax Commission excluding any tax collected by the
18
19 Commission from levies imposed by counties, cities,
19
20 towns or any other entity of local government, which
20
21 for purposes of implementation of any income tax rate
21
22 reductions otherwise authorized by this act shall be
22
23 the highest preceding total collections amount as
23
24 defined by subparagraph b of this paragraph. For
24
Req. No. 2752 Page 4
1 purposes of reporting total collections for purposes
1
2 of this subsection, the Oklahoma Tax Commission shall
2
3 use the same methodology used to report estimated
3
4 revenues to the State Board of Equalization that was
4
5 used to make the report for the December 2024 meeting,
5
6 b. "highest preceding total collections" means the
6
7 largest amount of revenue reported for any single
7
8 fiscal year prior to the immediately preceding full
8
9 fiscal year, determined by the State Board of
9
10 Equalization at its December meeting and including all
10
11 revenue sources reported in the annual report of the
11
12 Oklahoma Tax Commission excluding any tax collected by
12
13 the Commission from levies imposed by counties,
13
14 cities, towns or any other entity of local government.
14
15 For purposes of reporting total collections for
15
16 purposes of this subsection, the Oklahoma Tax
16
17 Commission shall use the same methodology used to
17
18 report estimated revenues to the State Board of
18
19 Equalization that was used to make the report for the
19
20 December 2024 meeting,
20
21 c. "income tax rate reduction threshold" means the amount
21
22 of revenue determined by the Oklahoma Tax Commission
22
23 for twelve (12) months comprising a single tax year
23
24 predicted to be foregone as a result of any reduction
24
Req. No. 2752 Page 5
1 in income tax rates pursuant to the provisions of this
1
2 act, including the provisions of subsection D of
2
3 Section 2355 of Title 68 of the Oklahoma Statutes
3
4 multiplied by the number one and twenty-five
4
5 hundredths (1.25). The income tax rate reduction cost
5
6 threshold shall not be less than the amount of revenue
6
7 loss attributable to a reduction in the income tax
7
8 rates for the previous fiscal year and shall not be
8
9 greater than such revenue loss for the previous fiscal
9
10 year multiplied by the number one and twenty-five
10
11 hundredths (1.25), and
11
12 d. "comparison year total collections" means the amount
12
13 of revenue determined by the State Board of
13
14 Equalization at its December meeting for the
14
15 immediately preceding fiscal year and includes all
15
16 revenue sources reported in the annual report of the
16
17 Oklahoma Tax Commission excluding any tax collected by
17
18 the Commission from levies imposed by counties,
18
19 cities, towns or any other entity of local government.
19
20 For purposes of reporting total collections for
20
21 purposes of this subsection, the Oklahoma Tax
21
22 Commission shall use the same methodology used to
22
23 report estimated revenues to the State Board of
23
24
24
Req. No. 2752 Page 6
1 Equalization that was used to make the report for the
1
2 December 2024 meeting.
2
3 2. In addition to any other duties prescribed by law, at the
3
4 meeting required by Section 23 of Article X of the Oklahoma
4
5 Constitution to be held in December of 2026, and at the December
5
6 meeting of the State Board of Equalization each year thereafter, the
6
7 State Board of Equalization shall make a preliminary certification:
7
8 a. and report the base year total collections, the income
8
9 tax rate reduction threshold, and the comparison year
9
10 total collections,
10
11 b. if the comparison year total collections amount
11
12 exceeds the base year total collections amount plus
12
13 the income tax reduction cost threshold, the tax rates
13
14 otherwise prescribed pursuant to subsection D of
14
15 Section 2355 of Title 68 of the Oklahoma Statutes
15
16 shall be reduced according to the provisions of
16
17 Section 2355 of Title 68 of the Oklahoma Statutes and
17
18 any reduction in such rates shall become effective on
18
19 the January 1 date following the final February
19
20 certification by the State Board of Equalization that
20
21 an income tax rate reduction is authorized by the
21
22 provisions of this act, and
22
23 c. with respect to all subsequent meetings of the Board,
23
24 the Board shall make a preliminary finding at its
24
Req. No. 2752 Page 7
1 December meeting each year and, if the requirements of
1
2 this act are fulfilled, the State Board shall make a
2
3 final determination at its February meeting each year
3
4 whether the comparison year total collections exceeds
4
5 the base year total collections plus the income tax
5
6 reduction cost threshold, and a reduction in the
6
7 income tax rates otherwise prescribed pursuant to
7
8 paragraphs 1 and 2 of subsection D of Section 2355 of
8
9 Title 68 of the Oklahoma Statutes shall be implemented
9
10 and any reduction in such rates shall become effective
10
11 on the January 1 date following the final February
11
12 certification by the State Board of Equalization that
12
13 an income tax rate reduction is authorized by the
13
14 provisions of this act.
14
15 3. In addition to any other requirements of this act for the
15
16 implementation of a reduction of individual income tax rates
16
17 pursuant to this subsection and pursuant to subsection E of Section
17
18 2355 of Title 68 of the Oklahoma Statutes, at the State Board of
18
19 Equalization meeting to be held in December 2026, the State Board
19
20 must certify that the revenues accruing to certified funds during
20
21 the first five and one-half (5 1/2) months of fiscal year ending
21
22 June 30, 2027, were within ninety-five percent (95%) of the estimate
22
23 made in February 2026, and no revenue failure was declared.
23
24
24
Req. No. 2752 Page 8
1 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2355, as
1
2 last amended by Section 2, Chapter 307, O.S.L. 2025 (68 O.S. Supp.
2
3 2025, Section 2355), is amended to read as follows:
3
4 Section 2355. A. Individuals. For all taxable years beginning
4
5 after December 31, 1998, and before January 1, 2006, a tax is hereby
5
6 imposed upon the Oklahoma taxable income of every resident or
6
7 nonresident individual, which tax shall be computed at the option of
7
8 the taxpayer under one of the two following methods:
8
9 1. METHOD 1.
9
10 a. Single individuals and married individuals filing
10
11 separately not deducting federal income tax:
11
12 (1) 1/2% tax on first $1,000.00 or part thereof,
12
13 (2) 1% tax on next $1,500.00 or part thereof,
13
14 (3) 2% tax on next $1,250.00 or part thereof,
14
15 (4) 3% tax on next $1,150.00 or part thereof,
15
16 (5) 4% tax on next $1,300.00 or part thereof,
16
17 (6) 5% tax on next $1,500.00 or part thereof,
17
18 (7) 6% tax on next $2,300.00 or part thereof, and
18
19 (8) (a) for taxable years beginning after December
19
20 31, 1998, and before January 1, 2002, 6.75%
20
21 tax on the remainder,
21
22 (b) for taxable years beginning on or after
22
23 January 1, 2002, and before January 1, 2004,
23
24 7% tax on the remainder, and
24
Req. No. 2752 Page 9
1 (c) for taxable years beginning on or after
1
2 January 1, 2004, 6.65% tax on the remainder.
2
3 b. Married individuals filing jointly and surviving
3
4 spouse to the extent and in the manner that a
4
5 surviving spouse is permitted to file a joint return
5
6 under the provisions of the Internal Revenue Code of
6
7 1986, as amended, and heads of households as defined
7
8 in the Internal Revenue Code of 1986, as amended, not
8
9 deducting federal income tax:
9
10 (1) 1/2% tax on first $2,000.00 or part thereof,
10
11 (2) 1% tax on next $3,000.00 or part thereof,
11
12 (3) 2% tax on next $2,500.00 or part thereof,
12
13 (4) 3% tax on next $2,300.00 or part thereof,
13
14 (5) 4% tax on next $2,400.00 or part thereof,
14
15 (6) 5% tax on next $2,800.00 or part thereof,
15
16 (7) 6% tax on next $6,000.00 or part thereof, and
16
17 (8) (a) for taxable years beginning after December
17
18 31, 1998, and before January 1, 2002, 6.75%
18
19 tax on the remainder,
19
20 (b) for taxable years beginning on or after
20
21 January 1, 2002, and before January 1, 2004,
21
22 7% tax on the remainder, and
22
23 (c) for taxable years beginning on or after
23
24 January 1, 2004, 6.65% tax on the remainder.
24
Req. No. 2752 Page 10
1 2. METHOD 2.
1
2 a. Single individuals and married individuals filing
2
3 separately deducting federal income tax:
3
4 (1) 1/2% tax on first $1,000.00 or part thereof,
4
5 (2) 1% tax on next $1,500.00 or part thereof,
5
6 (3) 2% tax on next $1,250.00 or part thereof,
6
7 (4) 3% tax on next $1,150.00 or part thereof,
7
8 (5) 4% tax on next $1,200.00 or part thereof,
8
9 (6) 5% tax on next $1,400.00 or part thereof,
9
10 (7) 6% tax on next $1,500.00 or part thereof,
10
11 (8) 7% tax on next $1,500.00 or part thereof,
11
12 (9) 8% tax on next $2,000.00 or part thereof,
12
13 (10) 9% tax on next $3,500.00 or part thereof, and
13
14 (11) 10% tax on the remainder.
14
15 b. Married individuals filing jointly and surviving
15
16 spouse to the extent and in the manner that a
16
17 surviving spouse is permitted to file a joint return
17
18 under the provisions of the Internal Revenue Code of
18
19 1986, as amended, and heads of households as defined
19
20 in the Internal Revenue Code of 1986, as amended,
20
21 deducting federal income tax:
21
22 (1) 1/2% tax on the first $2,000.00 or part thereof,
22
23 (2) 1% tax on the next $3,000.00 or part thereof,
23
24 (3) 2% tax on the next $2,500.00 or part thereof,
24
Req. No. 2752 Page 11
1 (4) 3% tax on the next $1,400.00 or part thereof,
1
2 (5) 4% tax on the next $1,500.00 or part thereof,
2
3 (6) 5% tax on the next $1,600.00 or part thereof,
3
4 (7) 6% tax on the next $1,250.00 or part thereof,
4
5 (8) 7% tax on the next $1,750.00 or part thereof,
5
6 (9) 8% tax on the next $3,000.00 or part thereof,
6
7 (10) 9% tax on the next $6,000.00 or part thereof, and
7
8 (11) 10% tax on the remainder.
8
9 B. Individuals. For all taxable years beginning on or after
9
10 January 1, 2008, and ending any tax year which begins after December
10
11 31, 2015, for which the determination required pursuant to Sections
11
12 2355.1F and 2355.1G of this title is made by the State Board of
12
13 Equalization, a tax is hereby imposed upon the Oklahoma taxable
13
14 income of every resident or nonresident individual, which tax shall
14
15 be computed as follows:
15
16 1. Single individuals and married individuals filing
16
17 separately:
17
18 (a) 1/2% tax on first $1,000.00 or part thereof,
18
19 (b) 1% tax on next $1,500.00 or part thereof,
19
20 (c) 2% tax on next $1,250.00 or part thereof,
20
21 (d) 3% tax on next $1,150.00 or part thereof,
21
22 (e) 4% tax on next $2,300.00 or part thereof,
22
23 (f) 5% tax on next $1,500.00 or part thereof,
23
24
24
Req. No. 2752 Page 12
1 (g) 5.50% tax on the remainder for the 2008 tax year and
1
2 any subsequent tax year unless the rate prescribed by
2
3 subparagraph (h) of this paragraph is in effect, and
3
4 (h) 5.25% tax on the remainder for the 2009 and subsequent
4
5 tax years. The decrease in the top marginal
5
6 individual income tax rate otherwise authorized by
6
7 this subparagraph shall be contingent upon the
7
8 determination required to be made by the State Board
8
9 of Equalization pursuant to Section 2355.1A of this
9
10 title.
10
11 2. Married individuals filing jointly and surviving spouse to
11
12 the extent and in the manner that a surviving spouse is permitted to
12
13 file a joint return under the provisions of the Internal Revenue
13
14 Code of 1986, as amended, and heads of households as defined in the
14
15 Internal Revenue Code of 1986, as amended:
15
16 (a) 1/2% tax on first $2,000.00 or part thereof,
16
17 (b) 1% tax on next $3,000.00 or part thereof,
17
18 (c) 2% tax on next $2,500.00 or part thereof,
18
19 (d) 3% tax on next $2,300.00 or part thereof,
19
20 (e) 4% tax on next $2,400.00 or part thereof,
20
21 (f) 5% tax on next $2,800.00 or part thereof,
21
22 (g) 5.50% tax on the remainder for the 2008 tax year and
22
23 any subsequent tax year unless the rate prescribed by
23
24 subparagraph (h) of this paragraph is in effect, and
24
Req. No. 2752 Page 13
1 (h) 5.25% tax on the remainder for the 2009 and subsequent
1
2 tax years. The decrease in the top marginal
2
3 individual income tax rate otherwise authorized by
3
4 this subparagraph shall be contingent upon the
4
5 determination required to be made by the State Board
5
6 of Equalization pursuant to Section 2355.1A of this
6
7 title.
7
8 C. Individuals. For tax years 2024 and 2025, a tax is hereby
8
9 imposed upon the Oklahoma taxable income of every resident or
9
10 nonresident individual, which tax shall be computed as follows:
10
11 1. Single individuals and married individuals filing
11
12 separately:
12
13 (a) 0.25% tax on first $1,000.00 or part thereof,
13
14 (b) 0.75% tax on next $1,500.00 or part thereof,
14
15 (c) 1.75% tax on next $1,250.00 or part thereof,
15
16 (d) 2.75% tax on next $1,150.00 or part thereof,
16
17 (e) 3.75% tax on next $2,300.00 or part thereof, and
17
18 (f) 4.75% tax on the remainder.
18
19 2. Married individuals filing jointly and surviving spouse to
19
20 the extent and in the manner that a surviving spouse is permitted to
20
21 file a joint return under the provisions of the Internal Revenue
21
22 Code of 1986, as amended, and heads of households as defined in the
22
23 Internal Revenue Code of 1986, as amended:
23
24 (a) 0.25% tax on first $2,000.00 or part thereof,
24
Req. No. 2752 Page 14
1 (b) 0.75% tax on next $3,000.00 or part thereof,
1
2 (c) 1.75% tax on next $2,500.00 or part thereof,
2
3 (d) 2.75% tax on next $2,300.00 or part thereof,
3
4 (e) 3.75% tax on next $4,600.00 or part thereof, and
4
5 (f) 4.75% tax on the remainder.
5
6 No deduction for federal income taxes paid shall be allowed to
6
7 any taxpayer to arrive at taxable income.
7
8 D. Individuals. For tax year 2026 and for subsequent tax years
8
9 subject to rate reductions as provided by subsection E of this
9
10 section, a tax is hereby imposed upon the Oklahoma taxable income of
10
11 every resident or nonresident individual, which tax shall be
11
12 computed as follows:
12
13 1. Single individuals and married individuals filing
13
14 separately:
14
15 (a) 0% tax on first $3,750.00 or part thereof,
15
16 (b) 2.5% tax on the next $1,150.00 or part thereof,
16
17 (c) 3.5% tax on next $2,300.00 or part thereof, and
17
18 (d) 4.5% tax on the remainder.
18
19 2. Married individuals filing jointly and surviving spouse to
19
20 the extent and in the manner that a surviving spouse is permitted to
20
21 file a joint return under the provisions of the Internal Revenue
21
22 Code of 1986, as amended, and heads of households as defined in the
22
23 Internal Revenue Code of 1986, as amended:
23
24 (a) 0% tax on first $7,500.00 or part thereof,
24
Req. No. 2752 Page 15
1 (b) 2.5% tax on the next $2,300.00 or part thereof,
1
2 (c) 3.5% tax on next $4,600.00 or part thereof, and
2
3 (d) 4.5% tax on the remainder.
3
4 No deduction for federal income taxes paid shall be allowed to
4
5 any taxpayer to arrive at taxable income.
5
6 E. As provided by subsection D of Section 34.103 of Title 62 of
6
7 the Oklahoma Statutes, if the comparison year total collections
7
8 exceeds the base year total collections plus the income tax rate
8
9 reduction threshold, as certified by the State Board of Equalization
9
10 pursuant to paragraph 2 of subsection D of Section 34.103 of Title
10
11 62 of the Oklahoma Statutes, the tax rates otherwise prescribed in
11
12 paragraphs 1 and 2 of subsection D of this section shall each be
12
13 reduced by twenty-five one-hundredths (0.25) of a percentage point
13
14 (0.0025) until the applicable rate equals zero percent (0%). Each
14
15 successive certification by the State Board of Equalization with
15
16 respect to which the comparison year total collections exceeds the
16
17 base year total collections plus the income tax rate reduction
17
18 threshold, as determined by the State Board of Equalization as
18
19 provided by subsection D of Section 34.103 of Title 62 of the
19
20 Oklahoma Statutes, shall further reduce the individual income tax
20
21 rates by twenty-five one-hundredths (0.25) of a percentage point
21
22 (0.0025) until the applicable rate equals zero percent (0%). Any
22
23 reduction in the income tax rates authorized by this section and by
23
24 this act shall take effect on January 1 following the final
24
Req. No. 2752 Page 16
1 certification by the State Board of Equalization, if any, made
1
2 during its meeting in February each year.
2
3 F. If a revenue failure is declared pursuant to the provisions
3
4 of Section 34.49 of Title 62 of the Oklahoma Statutes prior to the
4
5 end of the calendar year in which the Board makes a certification
5
6 pursuant to paragraph 2 of subsection D of Section 34.103 of Title
6
7 62 of the Oklahoma Statutes, the reduction in tax rates, as
7
8 otherwise provided for in this section, shall not occur until a
8
9 subsequent certification is made by the State Board of Equalization
9
10 pursuant to paragraph 2 of subsection D of Section 34.103 of Title
10
11 62 of the Oklahoma Statutes.
11
12 G. Nonresident aliens. In lieu of the rates set forth in
12
13 subsection A above, there shall be imposed on nonresident aliens, as
13
14 defined in the Internal Revenue Code of 1986, as amended, a tax of
14
15 eight percent (8%) instead of thirty percent (30%) as used in the
15
16 Internal Revenue Code of 1986, as amended, with respect to the
16
17 Oklahoma taxable income of such nonresident aliens as determined
17
18 under the provision of the Oklahoma Income Tax Act.
18
19 Every payer of amounts covered by this subsection shall deduct
19
20 and withhold from such amounts paid each payee an amount equal to
20
21 eight percent (8%) thereof. Every payer required to deduct and
21
22 withhold taxes under this subsection shall for each quarterly period
22
23 on or before the last day of the month following the close of each
23
24 such quarterly period, pay over the amount so withheld as taxes to
24
Req. No. 2752 Page 17
1 the Oklahoma Tax Commission, and shall file a return with each such
1
2 payment. Such return shall be in such form as the Tax Commission
2
3 shall prescribe. Every payer required under this subsection to
3
4 deduct and withhold a tax from a payee shall, as to the total
4
5 amounts paid to each payee during the calendar year, furnish to such
5
6 payee, on or before January 31 of the succeeding year, a written
6
7 statement showing the name of the payer, the name of the payee and
7
8 the payee's Social Security account number, if any, the total amount
8
9 paid subject to taxation, and the total amount deducted and withheld
9
10 as tax and such other information as the Tax Commission may require.
10
11 Any payer who fails to withhold or pay to the Tax Commission any
11
12 sums herein required to be withheld or paid shall be personally and
12
13 individually liable therefor to the State of Oklahoma.
13
14 H. F. Corporations. For all taxable years beginning after
14
15 December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
15
16 income of every corporation doing business within this state or
16
17 deriving income from sources within this state in an amount equal to
17
18 four percent (4%) thereof.
18
19 There shall be no additional Oklahoma income tax imposed on
19
20 accumulated taxable income or on undistributed personal holding
20
21 company income as those terms are defined in the Internal Revenue
21
22 Code of 1986, as amended.
22
23 I. G. Certain foreign corporations. In lieu of the tax imposed
23
24 in the first paragraph of subsection G D of this section, for all
24
Req. No. 2752 Page 18
1 taxable years beginning after December 31, 2021, there shall be
1
2 imposed on foreign corporations, as defined in the Internal Revenue
2
3 Code of 1986, as amended, a tax of four percent (4%) instead of
3
4 thirty percent (30%) as used in the Internal Revenue Code of 1986,
4
5 as amended, where such income is received from sources within this
5
6 state, in accordance with the provisions of the Internal Revenue
6
7 Code of 1986, as amended, and the Oklahoma Income Tax Act.
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8 Every payer of amounts covered by this subsection shall deduct
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9 and withhold from such amounts paid each payee an amount equal to
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10 four percent (4%) thereof. Every payer required to deduct and
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11 withhold taxes under this subsection shall for each quarterly period
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12 on or before the last day of the month following the close of each
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13 such quarterly period, pay over the amount so withheld as taxes to
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14 the Tax Commission, and shall file a return with each such payment.
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15 Such return shall be in such form as the Tax Commission shall
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16 prescribe. Every payer required under this subsection to deduct and
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17 withhold a tax from a payee shall, as to the total amounts paid to
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18 each payee during the calendar year, furnish to such payee, on or
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19 before January 31 of the succeeding year, a written statement
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20 showing the name of the payer, the name of the payee and the payee's
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21 Social Security account number, if any, the total amounts paid
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22 subject to taxation, the total amount deducted and withheld as tax,
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23 and such other information as the Tax Commission may require. Any
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24 payer who fails to withhold or pay to the Tax Commission any sums
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Req. No. 2752 Page 19
1 herein required to be withheld or paid shall be personally and
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2 individually liable therefor to the State of Oklahoma.
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3 J. H. Fiduciaries. A tax is hereby imposed upon the Oklahoma
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4 taxable income of every trust and estate at the same rates as are
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5 provided in subsections B through D of this section for single
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6 individuals. Fiduciaries are not allowed a deduction for any
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7 federal income tax paid.
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8 K. I. Tax rate tables. For all taxable years beginning after
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9 December 31, 1991, in lieu of the tax imposed by subsections A
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10 through D of this section, as applicable there is hereby imposed for
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11 each taxable year on the taxable income of every individual, whose
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12 taxable income for such taxable year does not exceed the ceiling
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13 amount, a tax determined under tables, applicable to such taxable
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14 year which shall be prescribed by the Tax Commission and which shall
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15 be in such form as it determines appropriate. In the table so
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16 prescribed, the amounts of the tax shall be computed on the basis of
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17 the rates prescribed by subsections A through D of this section.
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18 For purposes of this subsection, the term "ceiling amount" means,
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19 with respect to any taxpayer, the amount determined by the Tax
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20 Commission for the tax rate category in which such taxpayer falls.
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21 SECTION 3. This act shall become effective November 1, 2026.
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23 60-2-2752 QD 12/28/2025 5:59:36 PM
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Req. No. 2752 Page 20Every fact on this page links to its source, starting with the official bill record.