Oklahoma Senate Bill SJR25

Oklahoma 2024 Regular Session

• Introduced: 2/5/24
• Refer: 2/6/24

Caption

Constitution; creating the Taxpayer Allocation Program Fund; providing for individual income tax credit when Fund exceeds certain balance.

Impact

The bill requires that when the balance of the Taxpayer Allocation Program Fund exceeds $400 million, the excess amount is to be returned to Oklahoma residents in the form of a tax credit for the following tax year. This process will adjust for inflation every ten years, ensuring the threshold remains relevant over time. The individual tax credit amount will be proportionate to the taxes each taxpayer has paid relative to total taxes collected from all residents in the previous year, promoting equitable distribution of benefits.

Summary

SJR25 proposes an amendment to the Oklahoma Constitution by introducing the 'Taxpayer Allocation Program Fund'. This fund is created to assist in returning excess individual income tax revenue back to the taxpayers. Specifically, the bill stipulates that any income tax collections that exceed the average of the previous five years' revenue will be allocated to this fund. The intention is to ensure that taxpayers benefit directly from favorable economic conditions reflected in state revenue collections.

Contention

One of the notable points of contention surrounding SJR25 is the management of the funds and the criteria that determine eligibility for tax credits. Critics may argue that linking tax credits to excess revenue could lead to less predictable tax burdens for residents, potentially making budgeting more challenging for families. Additionally, adjusting for inflation every ten years might not adequately reflect the real-world economic changes experienced by taxpayers, creating concerns about the long-term viability and fairness of the program.