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Oklahoma House Bill HB2960

Oklahoma 2022 Regular Session

Oklahoma House Bill HB2960 Compare Versions

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1-An Act
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329 BILL NO. 2960 By: McCall, Wallace, Hilbert,
430 Lepak and Russ of the House
531
632 and
733
834 Treat, Thompson and Hall of
935 the Senate
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1542 An Act relating to revenue and taxation; amending 68
1643 O.S. 2011, Section 2355, as last amended by Section
1744 2, Chapter 195, O.S.L. 2014 (68 O.S. Supp. 2020,
1845 Section 2355), which relates to income taxation;
1946 modifying income tax rate for corporations; and
2047 providing an effective date.
2148
2249
23-SUBJECT: Revenue and taxation
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2451
2552 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
26-
2753 SECTION 1. AMENDATORY 68 O.S. 2011, Section 2355, as
2854 last amended by Section 2, Chapter 195, O.S.L. 2014 (68 O.S. Supp.
2955 2020, Section 2355), is amended to read as follows:
30-
3156 Section 2355. A. Individuals. For all taxable years beginning
3257 after December 31, 199 8, and before January 1, 2006, a tax is hereby
3358 imposed upon the Oklahoma taxable income of every resident or
3459 nonresident individual, which tax shall be computed at the option of
3560 the taxpayer under one of the two following methods:
36-
3761 1. METHOD 1.
38-
3962 a. Single individuals and married individuals filing
4063 separately not deducting federal income tax:
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4290 (1) 1/2% tax on first $1,000.00 or part thereof,
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4491 (2) 1% tax on next $1,500.00 or part thereof,
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46-(3) 2% tax on next $1,250.00 or part th ereof, ENR. H. B. NO. 2960 Page 2
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92+(3) 2% tax on next $1,250.00 or part thereof,
4893 (4) 3% tax on next $1,150.00 or part thereof,
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5094 (5) 4% tax on next $1,300.00 or part thereof,
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5295 (6) 5% tax on next $1,500.00 or part thereof,
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5496 (7) 6% tax on next $2,300.00 or part thereof, and
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5697 (8) (a) for taxable years beginning after December
5798 31, 1998, and before January 1, 2002, 6.75%
5899 tax on the remainder,
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60100 (b) for taxable years beginning on or after
61101 January 1, 2002, and before January 1, 2004,
62102 7% tax on the remainder, and
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64103 (c) for taxable years beginning on or after
65104 January 1, 2004, 6.65% tax on the remainder.
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67105 b. Married individuals filin g jointly and surviving
68106 spouse to the extent and in the manner that a
69107 surviving spouse is permitted to file a joint return
70108 under the provisions of the Internal Revenue Code and
71109 heads of households as defined in the Internal Revenue
72110 Code not deducting feder al income tax:
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74111 (1) 1/2% tax on first $2,000.00 or part thereof,
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76112 (2) 1% tax on next $3,000.00 or part thereof,
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78113 (3) 2% tax on next $2,500.00 or part thereof,
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80140 (4) 3% tax on next $2,300.00 or part thereof,
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82141 (5) 4% tax on next $2,400.00 or part thereof,
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84142 (6) 5% tax on next $2,800.00 or part thereof,
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86143 (7) 6% tax on next $6,000.00 or part thereof, and
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88144 (8) (a) for taxable years beginning after December
89145 31, 1998, and before January 1, 2002, 6.75%
90146 tax on the remainder,
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92147 (b) for taxable years beginning on or after
93148 January 1, 2002, and before January 1, 2004,
94149 7% tax on the remainder, and
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96150 (c) for taxable years beginning on or after
97151 January 1, 2004, 6.65% tax on the remainder.
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99152 2. METHOD 2.
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101153 a. Single individuals and married individuals filing
102154 separately deducting federal inco me tax:
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104155 (1) 1/2% tax on first $1,000.00 or part thereof,
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106156 (2) 1% tax on next $1,500.00 or part thereof,
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108157 (3) 2% tax on next $1,250.00 or part thereof,
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110158 (4) 3% tax on next $1,150.00 or part thereof,
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112159 (5) 4% tax on next $1,200.00 or part thereof,
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114160 (6) 5% tax on next $1,400.00 or part thereof,
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116161 (7) 6% tax on next $1,500.00 or part thereof,
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118162 (8) 7% tax on next $1,500.00 or part thereof,
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120163 (9) 8% tax on next $2,000.00 or part thereof,
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122190 (10) 9% tax on next $3,500.00 or part thereof, and
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124191 (11) 10% tax on the remainder.
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126192 b. Married individuals filing jointly and surviving
127193 spouse to the extent and in the manner that a
128194 surviving spouse is permitted to file a joint return
129195 under the provisions of the Internal Revenue Code and
130196 heads of households as defined in the Internal Revenue
131197 Code deducting federal income tax:
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133198 (1) 1/2% tax on the first $2,000.00 or part thereof,
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135199 (2) 1% tax on the next $3,000.00 or part thereof,
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137200 (3) 2% tax on the next $2,500.00 or part thereof,
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139201 (4) 3% tax on the next $1,400.00 or part thereof,
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141202 (5) 4% tax on the next $1,500.00 or part thereof,
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143203 (6) 5% tax on the next $1,600.00 or part thereof,
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145204 (7) 6% tax on the next $1,250.00 or part thereof,
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147205 (8) 7% tax on the next $1,750.00 or part thereof,
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149206 (9) 8% tax on the next $3,000.00 or part thereof,
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151207 (10) 9% tax on the next $ 6,000.00 or part thereof, and
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153208 (11) 10% tax on the remainder.
154-
155209 B. Individuals. For all taxable years beginning on or after
156210 January 1, 2008, and ending any tax year which begins after December
157211 31, 2015, for which the determination required pursuant to Secti ons
158212 4 and 5 of this act is made by the State Board of Equalization, a
159213 tax is hereby imposed upon the Oklahoma taxable income of every
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160240 resident or nonresident individual, which tax shall be computed as
161241 follows:
162-
163242 1. Single individuals and married individuals filing
164243 separately:
165-
166244 (a) 1/2% tax on first $1,000.00 or part thereof,
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168245 (b) 1% tax on next $1,500.00 or part thereof,
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170246 (c) 2% tax on next $1,250.00 or part thereof,
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172247 (d) 3% tax on next $1,150.00 or part thereof,
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174248 (e) 4% tax on next $2,300.00 or part thereof,
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176249 (f) 5% tax on next $1,500.00 or part thereof,
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178250 (g) 5.50% tax on the remainder for the 2008 tax year and
179251 any subsequent tax year unless the rate prescribed by
180252 subparagraph (h) of this paragraph is in effect, and
181- ENR. H. B. NO. 2960 Page 5
182253 (h) 5.25% tax on the remainder for the 2009 and s ubsequent
183254 tax years. The decrease in the top marginal
184255 individual income tax rate otherwise authorized by
185256 this subparagraph shall be contingent upon the
186257 determination required to be made by the State Board
187258 of Equalization pursuant to Section 2355.1A of thi s
188259 title.
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190260 2. Married individuals filing jointly and surviving spouse to
191261 the extent and in the manner that a surviving spouse is permitted to
192262 file a joint return under the provisions of the Internal Revenue
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193289 Code and heads of households as defined in the Int ernal Revenue
194290 Code:
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196291 (a) 1/2% tax on first $2,000.00 or part thereof,
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198292 (b) 1% tax on next $3,000.00 or part thereof,
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200293 (c) 2% tax on next $2,500.00 or part thereof,
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202294 (d) 3% tax on next $2,300.00 or part thereof,
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204295 (e) 4% tax on next $2,400.00 or part thereof,
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206296 (f) 5% tax on next $2,800.00 or part thereof,
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208297 (g) 5.50% tax on the remainder for the 2008 tax year and
209298 any subsequent tax year unless the rate prescribed by
210299 subparagraph (h) of this paragraph is in effect, and
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212300 (h) 5.25% tax on the remainder for the 2009 and s ubsequent
213301 tax years. The decrease in the top marginal
214302 individual income tax rate otherwise authorized by
215303 this subparagraph shall be contingent upon the
216304 determination required to be made by the State Board
217305 of Equalization pursuant to Section 2355.1A of thi s
218306 title.
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220307 C. Individuals. For all taxable years beginning on or after
221308 January 1, 2016, and for which the determination required pursuant
222309 to Sections 4 and 5 of this act is made by the State Board of
223310 Equalization, a tax is hereby imposed upon the Oklahoma taxable
224311 income of every resident or nonresident individual, which tax shall
225312 be computed as follows:
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227339 1. Single individuals and married individuals filing
228340 separately:
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230341 (a) 1/2% tax on first $1,000.00 or part thereof,
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232342 (b) 1% tax on next $1,500.00 or part ther eof,
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234343 (c) 2% tax on next $1,250.00 or part thereof,
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236344 (d) 3% tax on next $1,150.00 or part thereof,
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238345 (e) 4% tax on next $2,300.00 or part thereof,
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240346 (f) 5% tax on the remainder if the State Board of
241347 Equalization makes a determination pursuant to Section
242348 4 of this act or four and eighty -five hundredths
243349 (4.85%) tax on the remainder if the State Board of
244350 Equalization makes a determination pursuant to Section
245351 5 of this act.
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247352 2. Married individuals filing jointly and surviving spouse to
248353 the extent and in the manner th at a surviving spouse is permitted to
249354 file a joint return under the provisions of the Internal Revenue
250355 Code and heads of households as defined in the Internal Revenue
251356 Code:
357+(a) 1/2% tax on first $2,000.00 or part thereof,
358+(b) 1% tax on next $3,000.00 or pa rt thereof,
359+(c) 2% tax on next $2,500.00 or part thereof,
360+(d) 3% tax on next $2,300.00 or part thereof,
361+(e) 4% tax on next $2,400.00 or part thereof,
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253-(a) 1/2% tax on first $2,000.00 or part thereof,
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255-(b) 1% tax on next $3,000.00 or part thereof,
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257-(c) 2% tax on next $2,500.00 or part thereof,
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259-(d) 3% tax on next $2,300.00 or part thereof,
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261-(e) 4% tax on next $2,400.00 or part ther eof,
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263388 (f) 5% tax on the remainder if the State Board of
264389 Equalization makes a determination pursuant to Section
265390 4 of this act or four and eighty -five hundredths
266391 percent (4.85%) tax on the remainder if the State
267392 Board of Equalization makes a determination pursuant
268393 to Section 5 of this act.
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270394 No deduction for federal income taxes paid shall be allowed to
271-any taxpayer to arrive at taxable income. ENR. H. B. NO. 2960 Page 7
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395+any taxpayer to arrive at taxable income.
273396 D. Nonresident aliens. In lieu of the rates set forth in
274397 subsection A above, there shall be imposed on nonresident aliens, as
275398 defined in the Internal Revenue Code, a tax of eight percent (8%)
276399 instead of thirty percent (30%) as u sed in the Internal Revenue
277400 Code, with respect to the Oklahoma taxable income of such
278401 nonresident aliens as determined under the provision of the Oklahoma
279402 Income Tax Act.
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281403 Every payer of amounts covered by this subsection shall deduct
282404 and withhold from such amounts paid each payee an amount equal to
283405 eight percent (8%) thereof. Every payer required to deduct and
284406 withhold taxes under this subsection shall for each quarterly period
285407 on or before the last day of the month following the close of each
286408 such quarterly period, pay over the amount so withheld as taxes to
287409 the Tax Commission, and shall file a return with each such payment.
288410 Such return shall be in such form as the Tax Commission shall
289411 prescribe. Every payer required under this subsection to deduct and
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290438 withhold a tax from a payee shall, as to the total amounts paid to
291439 each payee during the calendar year, furnish to such payee, on or
292440 before January 31, of the succeeding year, a written statement
293441 showing the name of the payer, the name of the payee and the payee's
294442 social security account number, if any, the total amount paid
295443 subject to taxation, and the total amount deducted and withheld as
296444 tax and such other information as the Tax Commission may require.
297445 Any payer who fails to withhold or pay to the Tax Co mmission any
298446 sums herein required to be withheld or paid shall be personally and
299447 individually liable therefor to the State of Oklahoma.
300-
301448 E. Corporations. For all taxable years beginning after
302449 December 31, 1989 2021, a tax is hereby imposed upon the Oklaho ma
303450 taxable income of every corporation doing business within this state
304451 or deriving income from sources within this state in an amount equal
305452 to six percent (6%) four percent (4%) thereof.
306-
307453 There shall be no additional Oklahoma income tax imposed on
308454 accumulated taxable income or on undistributed personal holding
309455 company income as those terms are defined in the Internal Revenue
310456 Code.
311-
312457 F. Certain foreign corporations. In lieu of the tax imposed in
313458 the first paragraph of subsection D of this section, for all ta xable
314459 years beginning after December 31, 1989 2021, there shall be imposed
315460 on foreign corporations, as defined in the Internal Revenue Code, a
316-tax of six percent (6%) four percent (4%) instead of thirty percent ENR. H. B. NO. 2960 Page 8
461+tax of six percent (6%) four percent (4%) instead of thirty percent
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317488 (30%) as used in the Internal Revenue Code, w here such income is
318489 received from sources within Oklahoma, in accordance with the
319490 provisions of the Internal Revenue Code and the Oklahoma Income Tax
320491 Act.
321-
322492 Every payer of amounts covered by this subsection shall deduct
323493 and withhold from such amounts paid ea ch payee an amount equal to
324494 six percent (6%) four percent (4%) thereof. Every payer required to
325495 deduct and withhold taxes under this subsection shall for each
326496 quarterly period on or before the last day of the month following
327497 the close of each such quarter ly period, pay over the amount so
328498 withheld as taxes to the Tax Commission, and shall file a return
329499 with each such payment. Such return shall be in such form as the
330500 Tax Commission shall prescribe. Every payer required under this
331501 subsection to deduct and w ithhold a tax from a payee shall, as to
332502 the total amounts paid to each payee during the calendar year,
333503 furnish to such payee, on or before January 31, of the succeeding
334504 year, a written statement showing the name of the payer, the name of
335505 the payee and the payee's social security account number, if any,
336506 the total amounts paid subject to taxation, the total amount
337507 deducted and withheld as tax and such other information as the Tax
338508 Commission may require. Any payer who fails to withhold or pay to
339509 the Tax Commission any sums herein required to be withheld or paid
340510 shall be personally and individually liable therefor to the State of
341511 Oklahoma.
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343538 G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
344539 taxable income of every trust and estate at the same rates as a re
345540 provided in subsection B or C of this section for single
346541 individuals. Fiduciaries are not allowed a deduction for any
347542 federal income tax paid.
348-
349543 H. Tax rate tables. For all taxable years beginning after
350544 December 31, 1991, in lieu of the tax imposed by subsection A, B or
351545 C of this section, as applicable there is hereby imposed for each
352546 taxable year on the taxable income of every individual, whose
353547 taxable income for such taxable year does not exceed the ceiling
354548 amount, a tax determined under tables, appli cable to such taxable
355549 year which shall be prescribed by the Tax Commission and which shall
356550 be in such form as it determines appropriate. In the table so
357551 prescribed, the amounts of the tax shall be computed on the basis of
358552 the rates prescribed by subsectio n A, B or C of this section. For
359553 purposes of this subsection, the term "ceiling amount" means, with
360554 respect to any taxpayer, the amount determined by the Tax Commission
361-for the tax rate category in which such taxpayer falls. ENR. H. B. NO. 2960 Page 9
555+for the tax rate category in which such taxpayer falls.
556+SECTION 2. This act shall become effective January 1, 2022.
362557
363-SECTION 2. This act shall become effective January 1, 2022.
364- ENR. H. B. NO. 2960 Page 10
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365583 Passed the House of Representatives the 18th day of May, 2021.
366584
367585
368586
369587
370588 Presiding Officer of the House
371589 of Representatives
372590
373591
374-Passed the Senate the 20th day of May, 2021.
592+Passed the Senate the ___ day of __________, 2021.
375593
376594
377595
378596
379597 Presiding Officer of the Senat e
380-
381-
382-
383-OFFICE OF THE GOVERNOR
384-Received by the Office of the Governor this ____________________
385-day of ___________________, 20_______, at ___ ____ o'clock _______ M.
386-By: _________________________________
387-Approved by the Governor of the State of Oklahoma this _________
388-day of ___________________, 20_______, at _______ o'clock _______ M.
389-
390-
391- _________________________________
392- Governor of the State of Oklahoma
393-
394-OFFICE OF THE SECRETARY OF STATE
395-Received by the Office of the Secretary of State this __________
396-day of ___________________, 20_______, at _______ o'clock _______ M.
397-By: _________________________________