Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 306 By: Deevers
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6 AS INTRODUCED
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7 An Act relating to federal taxation; creating the
7 Taxpayer Protection Act; providing short title;
8 stating intent; creating the Federal Tax Fund;
8 providing sources of funds; providing for
9 disbursement of funds; providing for transfer of
9 funds upon certain determination or vote of the
10 Legislature; requiring taxpayers to remit certain
10 federal forms to the Oklahoma Tax Commission;
11 requiring the Tax Commission to review filings and
11 file certain forms; requiring employers and
12 individuals to make certain payment in lieu of
12 withholding and estimated tax payments; requiring
13 deposit of payments in certain revolving fund;
13 declaring certain federal punishment null and void;
14 limiting enforcement of certain penalties; requiring
14 vote of Legislature upon imposition of federal
15 sanctions; requiring officers of this state to
15 implement certain provisions; authorizing the
16 Governor to call special session of the Legislature;
16 requiring the state to defend certain actions;
17 providing for noncodification; providing for
17 codification; and providing an effective date.
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20 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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21 SECTION 1. NEW LAW A new section of law not to be
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22 codified in the Oklahoma Statutes reads as follows:
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23 This act shall be known and may be cited as the "Taxpayer
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24 Protection Act".
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1 SECTION 2. NEW LAW A new section of law not to be
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2 codified in the Oklahoma Statutes reads as follows:
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3 This Legislature finds that:
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4 1. Federal overreach: The Tenth Amendment to the United States
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5 Constitution reserves powers not delegated to the federal government
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6 to the states or the people. The Legislature finds that the Tenth
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7 Amendment limits the scope of federal authority to those powers
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8 explicitly enumerated;
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9 2. Constitutional taxation: Congress's authority to levy taxes
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10 is explicitly limited to the powers enumerated in Sections 8 and 9
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11 of Article I and the Sixteenth Amendment of the United States
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12 Constitution. Federal mandates that withhold funds or impose
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13 conditions on states fall outside these powers, infringe upon state
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14 sovereignty, and violate the constitutional principles of federalism
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15 protected by the Tenth Amendment;
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16 3. Complexity of the federal tax code: The federal tax code,
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17 exceeding seventy thousand (70,000) pages, imposes an undue burden
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18 on citizens by being overly complex, incomprehensible, and
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19 inaccessible. This system disproportionately penalizes average
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20 taxpayers, facilitates selective enforcement, and serves as a tool
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21 for unconstitutional federal overreach;
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22 4. Unconstitutionality of the Internal Revenue Service: The
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23 Internal Revenue Service (IRS), an unelected federal agency,
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24 unlawfully consolidates legislative, executive, and judicial powers,
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1 violating the separation of powers doctrine established by Articles
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2 I, II, and III of the United States Constitution. Its actions
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3 exceed Congress's delegated authority, undermining the
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4 constitutional framework and imposing undue harm on citizens and
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5 states; and
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6 5. State sovereignty: In light of unconstitutional federal
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7 mandates and the IRS's unauthorized authority, this state reasserts
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8 its sovereignty under the Tenth Amendment and affirms its duty to
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9 protect its citizens from unconstitutional federal actions,
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10 including those perpetuated by the Internal Revenue Service and
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11 federal tax mandates.
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12 SECTION 3. NEW LAW A new section of law to be codified
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13 in the Oklahoma Statutes as Section 284 of Title 68, unless there is
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14 created a duplication in numbering, reads as follows:
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15 A. There is hereby created in the State Treasury a revolving
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16 fund for the Oklahoma Tax Commission to be designated the "Federal
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17 Tax Fund". The fund shall be a continuing fund, not subject to
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18 fiscal year limitations, and shall consist of all monies received by
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19 the Tax Commission from federal income tax withholdings, estimated
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20 tax payments, and all other federal tax collections for remittance
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21 collected in this state. All monies accruing to the credit of the
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22 fund are hereby appropriated and may be budgeted and expended by the
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23 Tax Commission for the purposes provided for in this section and
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24 Section 4 of this act. Expenditures from the fund shall be made
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1 upon warrants issued by the State Treasurer against claims filed as
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2 prescribed by law with the Director of the Office of Management and
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3 Enterprise Services for approval and payment.
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4 B. Except as provided for in Subsection C of this section, the
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5 Tax Commission shall make quarterly disbursements of all deposits to
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6 the United States Treasury.
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7 C. If the Tax Commission or the Attorney General determines
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8 that the provisions of the United States Code or the Code of Federal
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9 Regulations violate the United States Constitution or upon a vote
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10 affirming the unconstitutionality of a federal sanction pursuant to
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11 subsection A of Section 6 of this act, the Tax Commission shall
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12 cease the quarterly disbursements as required by subsection B of
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13 this section and transfer the funds to the Special Cash Fund of the
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14 State Treasury, until such time that the unconstitutional provisions
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15 are rescinded or the federal sanctions are lifted.
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16 SECTION 4. NEW LAW A new section of law to be codified
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17 in the Oklahoma Statutes as Section 285 of Title 68, unless there is
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18 created a duplication in numbering, reads as follows:
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19 A. For tax year 2025 and subsequent tax years, taxpayers shall
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20 remit all required federal tax forms electronically to the Oklahoma
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21 Tax Commission, along with the taxpayer identification number of the
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22 taxpayer.
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1 B. The Tax Commission shall review the filings and federal tax
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2 payments of all taxpayers to ensure compliance with the Oklahoma
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3 Statutes.
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4 C. Upon the effective date of this act, all employers in this
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5 state required to withhold federal taxes pursuant to Publication 15
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6 of the Internal Revenue Service using the federal form W-4 of an
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7 employee shall withhold the amount prescribed pursuant to
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8 Publication 15 and form W-4 and make payment of the withholding to
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9 the Tax Commission. All taxpayers required to submit estimated tax
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10 pursuant to Publication 505 of the Internal Revenue Service using
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11 federal Form 1040-ES or 1040-SS or any other withholdings required
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12 pursuant to Publication 505 of the Internal Revenue Service shall
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13 calculate the amount of estimated tax or withholding pursuant to the
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14 Publication and make payment to the Tax Commission.
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15 D. The Tax Commission, upon receipt of funds pursuant to
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16 subsection C of this section, shall deposit the funds in the Federal
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17 Tax Fund created in Section 3 of this act.
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18 E. After the Tax Commission ensures compliance as required by
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19 subsection B of this section, the Tax Commission shall file the
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20 federal forms with the Internal Revenue Service on behalf of the
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21 taxpayer, ensuring that the taxpayer receives all credits for their
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22 federal income tax liability.
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1 SECTION 5. NEW LAW A new section of law to be codified
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2 in the Oklahoma Statutes as Section 286 of Title 68, unless there is
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3 created a duplication in numbering, reads as follows:
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4 A. Any federal fines, sanctions, punishment, or penalties
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5 levied or enforced against any individual or employer for compliance
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6 with the provisions of this act shall be null and void.
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7 B. Noncompliance with the provisions of this act by any
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8 taxpayer shall only result in penalties enforceable under the
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9 provisions of the Oklahoma Statutes.
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10 SECTION 6. NEW LAW A new section of law to be codified
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11 in the Oklahoma Statutes as Section 287 of Title 68, unless there is
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12 created a duplication in numbering, reads as follows:
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13 A. If the federal government imposes sanctions resulting from
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14 the implementation of the provisions of this act, a simple majority
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15 vote of the Legislature shall determine the constitutionality of
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16 such sanctions.
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17 B. Upon a majority vote determining a sanction to be
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18 unconstitutional pursuant to the provisions of subsection A of this
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19 section, the funds deposited in the Federal Tax Fund shall be
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20 transferred to the Special Cash Fund of the State Treasury.
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21 SECTION 7. NEW LAW A new section of law to be codified
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22 in the Oklahoma Statutes as Section 288 of Title 68, unless there is
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23 created a duplication in numbering, reads as follows:
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1 A. All officers of this state, including the Governor,
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2 Legislature, Attorney General, and other relevant officials, shall
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3 implement this act regardless of federal opposition.
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4 B. The Governor shall call a special session of the
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5 Legislature, if necessary, to address federal actions against this
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6 state resulting from the implementation of the provisions of this
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7 act.
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8 C. This state shall defend actions taken under this act and
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9 recover associated costs.
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10 SECTION 8. This act shall become effective November 1, 2025.
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12 60-1-1435 QD 12/30/2024 11:52:09 PM
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Req. No. 1435 Page 7Every fact on this page links to its source, starting with the official bill record.