Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB585

Introduced
2/6/23  
Refer
2/7/23  
Report Pass
2/8/23  
Refer
2/8/23  

Caption

Income tax; providing income tax exemption for beneficiary payments from certain military plans. Effective date.

Impact

If enacted, SB585 will significantly impact how retirement benefits are taxed in Oklahoma, particularly exempting specific federal retirement benefits from state income tax. This change could provide financial relief to retirees and their beneficiaries, potentially influencing their residency and retirement decisions within the state. Additionally, it seeks to provide a clearer and more detailed framework regarding the taxation of survivor benefits, which could enhance financial planning for individuals in these categories.

Summary

Senate Bill 585 (SB585) introduces amendments to the Oklahoma state income tax law, particularly focusing on retirement and survivor benefit plans. The bill aims to adjust the calculation of taxable income and provides specific exemptions related to retirement benefits, particularly for federal civil service retirees and service members. This legislation seeks to alleviate the tax burdens on these groups, allowing for a more taxpayer-friendly environment while still adhering to federal guidelines.

Sentiment

The sentiment around SB585 seems generally positive among its proponents, who view it as a necessary step toward a more equitable tax system that recognizes the contributions of public servants. However, there might be concerns from skeptics who worry about the long-term implications of tax exemptions on state revenues. Nonetheless, discussions indicate a recognition of the need to support retirees and enhance their financial security.

Contention

Notable points of contention may arise regarding the balance between exempting certain income from taxation and ensuring sufficient state revenue to support public services. Critics may argue that increased tax exemptions could lead to reduced funding for essential services, while supporters contend that providing for retirees should take precedence, given their service to the state.

Companion Bills

OK SB585

Carry Over Income tax; providing income tax exemption for beneficiary payments from certain military plans. Effective date.

Previously Filed As

OK SB585

Income tax; providing income tax exemption for beneficiary payments from certain military plans. Effective date.

OK SB81

Income tax; providing exemption for retirement income. Effective date.

OK HB1953

Revenue and taxation; income tax; income tax rates; effective date.

OK SB992

Income tax; unborn child exemption; definitions. Effective date.

OK SB383

Income tax; modifying reporting requirement on exemption for certain transfer of technology. Effective date.

OK SB626

Income tax; exempting gambling losses from limitation on itemized deductions. Effective date.

OK SB405

Income tax; modifying reporting requirement on exemption for certain transfer of technology. Effective date.

OK HB1645

Revenue and taxation; income tax; taxable income; business entities; sales factor; effective date.

OK SB384

Income tax; providing deduction for certain wages paid during the use of certain family medical leave. Effective date.

OK SB389

Income tax; providing deduction for certain expenses of licensed medical marijuana business. Effective date.

Similar Bills

OK SB585

Income tax; providing income tax exemption for beneficiary payments from certain military plans. Effective date.

OK SB405

Income tax; modifying reporting requirement on exemption for certain transfer of technology. Effective date.

OK SB405

Income tax; modifying reporting requirement on exemption for certain transfer of technology. Effective date.

OK SB401

Income tax adjustments; exempting military retirement benefits from tax. Effective date.

OK SB1843

Income tax; modifying payroll allocation for taxable income to include home office workers in this state. Effective date.

OK SB1452

Income tax; authorizing an income tax credit for employers that provide employee paid leave for volunteering for poll work. Effective date.

OK SB60

Income tax; modifying certain apportionment factors for determining Oklahoma taxable income for certain tax years. Effective date.

OK SB299

Income tax; modifying certain apportionment factor for calculation of Oklahoma taxable income. Effective date.