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3 | + | ENGR. H. B. NO. 2962 Page 1 1 | |
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28 | + | ENGROSSED HOUSE | |
3 | 29 | BILL NO. 2962 By: McCall, Wallace, Hilbert, | |
4 | 30 | Russ and Lepak of the House | |
5 | 31 | ||
6 | 32 | and | |
7 | 33 | ||
8 | 34 | Treat, Thompson and Hall of | |
9 | 35 | the Senate | |
10 | 36 | ||
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16 | 42 | An Act relating to revenue and taxation; amending 68 | |
17 | 43 | O.S. 2011, Section 2355, as last amended by Section | |
18 | 44 | 2, Chapter 195, O.S.L. 2014 (68 O.S. Supp. 2020, | |
19 | 45 | Section 2355), which relates to individual income | |
20 | 46 | tax; modifying tax rates; amending 68 O.S. 2011, | |
21 | 47 | Section 2357.43, as amended by Section 1, Chapter | |
22 | 48 | 341, O.S.L. 2016 (68 O.S. Supp. 2020, Section | |
23 | 49 | 2357.43), which relates to the earned income tax | |
24 | 50 | credit; modifying provisions related to | |
25 | 51 | refundability; providing method for computation of | |
26 | 52 | tax credit using designated tax year; and providing | |
27 | 53 | an effective date. | |
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33 | 59 | ||
34 | 60 | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | |
35 | - | ||
36 | 61 | SECTION 1. AMENDATORY 68 O.S. 2011, Section 2355, as | |
37 | 62 | last amended by Section 2, Chapter 195, O.S.L. 2014 (68 O.S. Supp. | |
38 | 63 | 2020, Section 2355), is amended to read as follows: | |
39 | - | ||
40 | 64 | Section 2355. A. Individuals. For all taxable years beginn ing | |
41 | 65 | after December 31, 1998, and before January 1, 2006, a tax is hereby | |
42 | 66 | imposed upon the Oklahoma taxable income of every resident or | |
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43 | 93 | nonresident individual, which tax shall be computed at the option of | |
44 | 94 | the taxpayer under one of the two following methods: | |
45 | - | ||
46 | - | 1. METHOD 1. ENR. H. B. NO. 2962 Page 2 | |
47 | - | ||
95 | + | 1. METHOD 1. | |
48 | 96 | a. Single individuals and married individuals filing | |
49 | 97 | separately not deducting federal income tax: | |
50 | - | ||
51 | 98 | (1) 1/2% tax on first $1,000.00 or part thereof, | |
52 | - | ||
53 | 99 | (2) 1% tax on next $1,500.00 or part thereof, | |
54 | - | ||
55 | 100 | (3) 2% tax on next $1,250.00 or part thereof, | |
56 | - | ||
57 | 101 | (4) 3% tax on next $1,150.00 or part thereof, | |
58 | - | ||
59 | 102 | (5) 4% tax on next $1,300.00 or part thereof, | |
60 | - | ||
61 | 103 | (6) 5% tax on next $1,500.00 or part thereof, | |
62 | - | ||
63 | 104 | (7) 6% tax on next $2,300.00 or part thereof, and | |
64 | - | ||
65 | 105 | (8) (a) for taxable years beginning after December | |
66 | 106 | 31, 1998, and before January 1, 2002, 6.75% | |
67 | 107 | tax on the remainder, | |
68 | - | ||
69 | 108 | (b) for taxable years beginning on or after | |
70 | 109 | January 1, 2002, and before January 1, 2004, | |
71 | 110 | 7% tax on the remainder, and | |
72 | - | ||
73 | 111 | (c) for taxable years beginning on or after | |
74 | 112 | January 1, 2004, 6.65% tax on the remainder. | |
113 | + | b. Married individuals filing jointly and surviving | |
114 | + | spouse to the extent and in the manner that a | |
115 | + | surviving spouse is permitted to file a joint return | |
116 | + | under the provisions of the Internal Revenue Code and | |
75 | 117 | ||
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143 | + | heads of households as defined in the Internal Revenu e | |
144 | + | Code not deducting federal income tax: | |
145 | + | (1) 1/2% tax on first $2,000.00 or part thereof, | |
146 | + | (2) 1% tax on next $3,000.00 or part thereof, | |
147 | + | (3) 2% tax on next $2,500.00 or part thereof, | |
148 | + | (4) 3% tax on next $2,300.00 or part thereof, | |
149 | + | (5) 4% tax on next $2,400.00 or part thereof, | |
150 | + | (6) 5% tax on next $2,800.00 or part thereof, | |
151 | + | (7) 6% tax on next $6,000.00 or part thereof, and | |
152 | + | (8) (a) for taxable years beginning after December | |
153 | + | 31, 1998, and before January 1, 2002, 6.75% | |
154 | + | tax on the remainder, | |
155 | + | (b) for taxable years beg inning on or after | |
156 | + | January 1, 2002, and before January 1, 2004, | |
157 | + | 7% tax on the remainder, and | |
158 | + | (c) for taxable years beginning on or after | |
159 | + | January 1, 2004, 6.65% tax on the remainder. | |
160 | + | 2. METHOD 2. | |
161 | + | a. Single individuals and married individuals filing | |
162 | + | separately deducting federal income tax: | |
163 | + | (1) 1/2% tax on first $1,000.00 or part thereof, | |
164 | + | (2) 1% tax on next $1,500.00 or part thereof, | |
165 | + | (3) 2% tax on next $1,250.00 or part thereof, | |
166 | + | (4) 3% tax on next $1,150.00 or part thereof, | |
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193 | + | (5) 4% tax on next $1,200.00 or par t thereof, | |
194 | + | (6) 5% tax on next $1,400.00 or part thereof, | |
195 | + | (7) 6% tax on next $1,500.00 or part thereof, | |
196 | + | (8) 7% tax on next $1,500.00 or part thereof, | |
197 | + | (9) 8% tax on next $2,000.00 or part thereof, | |
198 | + | (10) 9% tax on next $3,500.00 or part thereof, and | |
199 | + | (11) 10% tax on the remainder. | |
76 | 200 | b. Married individuals filing jointly and surviving | |
77 | 201 | spouse to the extent and in the manner that a | |
78 | 202 | surviving spouse is permitted to file a joint return | |
79 | 203 | under the provisions of the Internal Revenue Code and | |
80 | 204 | heads of households as defined in the Internal Revenue | |
81 | - | Code not deducting federal income tax: | |
82 | - | ||
83 | - | (1) 1/2% tax on first $2,000.00 or part thereof, | |
84 | - | ||
85 | - | (2) 1% tax on next $3,000.00 or part thereof, | |
86 | - | ||
87 | - | (3) 2% tax on next $2,500.00 or part thereof, | |
88 | - | ||
89 | - | (4) 3% tax on next $2,300. 00 or part thereof, | |
90 | - | ||
91 | - | (5) 4% tax on next $2,400.00 or part thereof, ENR. H. B. NO. 2962 Page 3 | |
92 | - | ||
93 | - | (6) 5% tax on next $2,800.00 or part thereof, | |
94 | - | ||
95 | - | (7) 6% tax on next $6,000.00 or part thereof, and | |
96 | - | ||
97 | - | (8) (a) for taxable years beginning after December | |
98 | - | 31, 1998, and before January 1, 2002, 6 .75% | |
99 | - | tax on the remainder, | |
100 | - | ||
101 | - | (b) for taxable years beginning on or after | |
102 | - | January 1, 2002, and before January 1, 2004, | |
103 | - | 7% tax on the remainder, and | |
104 | - | ||
105 | - | (c) for taxable years beginning on or after | |
106 | - | January 1, 2004, 6.65% tax on the remainder. | |
107 | - | ||
108 | - | 2. METHOD 2. | |
109 | - | ||
110 | - | a. Single individuals and married individuals filing | |
111 | - | separately deducting federal income tax: | |
112 | - | ||
113 | - | (1) 1/2% tax on first $1,000.00 or part thereof, | |
114 | - | ||
115 | - | (2) 1% tax on next $1,500.00 or part thereof, | |
116 | - | ||
117 | - | (3) 2% tax on next $1,250.00 or part thereof, | |
118 | - | ||
119 | - | (4) 3% tax on next $1,150.00 or part thereof, | |
120 | - | ||
121 | - | (5) 4% tax on next $1,200.00 or part thereof, | |
122 | - | ||
123 | - | (6) 5% tax on next $1,400.00 or part thereof, | |
124 | - | ||
125 | - | (7) 6% tax on next $1,500.00 or part thereof, | |
126 | - | ||
127 | - | (8) 7% tax on next $1,500.00 or part thereof, | |
128 | - | ||
129 | - | (9) 8% tax on next $2,000.00 or part there of, | |
130 | - | ||
131 | - | (10) 9% tax on next $3,500.00 or part thereof, and | |
132 | - | ||
205 | + | Code deducting federal income tax: | |
206 | + | (1) 1/2% tax on the first $2,000.00 or part thereof, | |
207 | + | (2) 1% tax on the next $3,000.00 or part thereof, | |
208 | + | (3) 2% tax on the next $2,500.00 or part thereof, | |
209 | + | (4) 3% tax on the next $1,400.00 or part th ereof, | |
210 | + | (5) 4% tax on the next $1,500.00 or part thereof, | |
211 | + | (6) 5% tax on the next $1,600.00 or part thereof, | |
212 | + | (7) 6% tax on the next $1,250.00 or part thereof, | |
213 | + | (8) 7% tax on the next $1,750.00 or part thereof, | |
214 | + | (9) 8% tax on the next $3,000.00 or part thereof, | |
215 | + | (10) 9% tax on the next $6,000.00 or part thereof, and | |
133 | 216 | (11) 10% tax on the remainder. | |
134 | 217 | ||
135 | - | b. Married individuals filing jointly and surviving | |
136 | - | spouse to the extent and in the manner that a ENR. H. B. NO. 2962 Page 4 | |
137 | - | surviving spouse is permitted to file a joint return | |
138 | - | under the provisions of the Internal Revenue Code and | |
139 | - | heads of households as defined in the Internal Revenue | |
140 | - | Code deducting federal income tax: | |
141 | - | ||
142 | - | (1) 1/2% tax on the first $2,000.00 or part thereof, | |
143 | - | ||
144 | - | (2) 1% tax on the next $3,000.00 or part thereof, | |
145 | - | ||
146 | - | (3) 2% tax on the next $2,500.00 or part thereof, | |
147 | - | ||
148 | - | (4) 3% tax on the next $1,400.00 or part thereof, | |
149 | - | ||
150 | - | (5) 4% tax on the next $1,500.00 or part thereof, | |
151 | - | ||
152 | - | (6) 5% tax on the next $1,600.00 or part thereof, | |
153 | - | ||
154 | - | (7) 6% tax on the next $1,250.00 or part thereof, | |
155 | - | ||
156 | - | (8) 7% tax on the next $1,750.00 or part thereof, | |
157 | - | ||
158 | - | (9) 8% tax on the next $3,000.00 or part thereof, | |
159 | - | ||
160 | - | (10) 9% tax on the next $6,000.00 or part thereof, and | |
161 | - | ||
162 | - | (11) 10% tax on the remainder. | |
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163 | 242 | ||
164 | 243 | B. Individuals. For all taxable years beginning on or after | |
165 | 244 | January 1, 2008, and ending any tax year which begins after December | |
166 | 245 | 31, 2015, for which the determination required pursuant to Sections | |
167 | 246 | 4 and 5 of this act is made by the State Board of Equalization, a | |
168 | 247 | tax is hereby imposed upon the Oklahoma taxable income of every | |
169 | 248 | resident or nonresident individual, which tax shall be computed as | |
170 | 249 | follows: | |
171 | - | ||
172 | 250 | 1. Single individua ls and married individuals filing | |
173 | 251 | separately: | |
174 | - | ||
175 | 252 | (a) 1/2% tax on first $1,000.00 or part thereof, | |
176 | - | ||
177 | 253 | (b) 1% tax on next $1,500.00 or part thereof, | |
178 | - | ||
179 | 254 | (c) 2% tax on next $1,250.00 or part thereof, | |
180 | - | ||
181 | - | (d) 3% tax on next $1,150.00 or part thereof, ENR. H. B. NO. 2962 Page 5 | |
182 | - | ||
255 | + | (d) 3% tax on next $1,150.00 or part thereof, | |
183 | 256 | (e) 4% tax on next $2,300.00 or part thereof, | |
184 | - | ||
185 | 257 | (f) 5% tax on next $1,500.00 or part thereof, | |
186 | - | ||
187 | 258 | (g) 5.50% tax on the remainder for the 2008 tax year and | |
188 | 259 | any subsequent tax year unless the rate prescribed by | |
189 | 260 | subparagraph (h) of this paragraph is in effect, and | |
261 | + | (h) 5.25% tax on the remainder for the 2009 and subsequent | |
262 | + | tax years. The decrease in the top marginal | |
263 | + | individual income tax rate otherwise authorized by | |
264 | + | this subparagraph shall be contingent upon the | |
265 | + | determination required to be made by the State Board | |
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292 | + | of Equalization pursuant to Section 2355.1A of this | |
293 | + | title. | |
294 | + | 2. Married individuals filing jointly and surviving spouse to | |
295 | + | the extent and in the manner that a surviving spouse is permitted to | |
296 | + | file a joint return under the provisions of the Internal Revenue | |
297 | + | Code and heads of househ olds as defined in the Internal Revenue | |
298 | + | Code: | |
299 | + | (a) 1/2% tax on first $2,000.00 or part thereof, | |
300 | + | (b) 1% tax on next $3,000.00 or part thereof, | |
301 | + | (c) 2% tax on next $2,500.00 or part thereof, | |
302 | + | (d) 3% tax on next $2,300.00 or part thereof, | |
303 | + | (e) 4% tax on next $2,400.00 or part thereof, | |
304 | + | (f) 5% tax on next $2,800.00 or part thereof, | |
305 | + | (g) 5.50% tax on the remainder for the 2008 tax year and | |
306 | + | any subsequent tax year unless the rate prescribed by | |
307 | + | subparagraph (h) of this paragraph is in effect, and | |
191 | 308 | (h) 5.25% tax on the remainder for the 2009 and subsequent | |
192 | 309 | tax years. The decrease in the top marginal | |
193 | 310 | individual income tax rate otherwise authorized by | |
194 | 311 | this subparagraph shall be contingent upon the | |
195 | 312 | determination required to be made by the State Board | |
196 | 313 | of Equalization pursuant to Section 2355.1A of this | |
197 | 314 | title. | |
198 | 315 | ||
199 | - | 2. Married individuals filing jointly and surviving spouse to | |
200 | - | the extent and in the manner that a surviving spouse is permitted to | |
201 | - | file a joint return under the provisions of the Internal Revenue | |
202 | - | Code and heads of households as defined in the Internal Revenue | |
203 | - | Code: | |
204 | - | ||
205 | - | (a) 1/2% tax on first $2,000.00 or part thereof, | |
206 | - | ||
207 | - | (b) 1% tax on next $3,000.00 or part thereof, | |
208 | - | ||
209 | - | (c) 2% tax on next $2,500.00 or part thereof, | |
210 | - | ||
211 | - | (d) 3% tax on next $2,300.00 or part thereof, | |
212 | - | ||
213 | - | (e) 4% tax on next $2,400.00 or part thereof, | |
214 | - | ||
215 | - | (f) 5% tax on next $2,800.00 or part thereof, | |
216 | - | ||
217 | - | (g) 5.50% tax on the remainder for the 2008 tax year and | |
218 | - | any subsequent tax year unless th e rate prescribed by | |
219 | - | subparagraph (h) of this paragraph is in effect, and | |
220 | - | ||
221 | - | (h) 5.25% tax on the remainder for the 2009 and subsequent | |
222 | - | tax years. The decrease in the top marginal | |
223 | - | individual income tax rate otherwise authorized by | |
224 | - | this subparagraph shall be contingent upon the | |
225 | - | determination required to be made by the State Board ENR. H. B. NO. 2962 Page 6 | |
226 | - | of Equalization pursuant to Section 2355.1A of this | |
227 | - | title. | |
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228 | 340 | ||
229 | 341 | C. Individuals. For all taxable years beginning on or after | |
230 | 342 | January 1, 2016 2022, and for which the determination required | |
231 | 343 | pursuant to Sections 4 and 5 of this act is made by the State Board | |
232 | 344 | of Equalization, a tax is hereby imposed upon the Oklahoma taxable | |
233 | 345 | income of every resident or nonresident individual, which tax shall | |
234 | 346 | be computed as follows: | |
235 | - | ||
236 | 347 | 1. Single individuals and married individuals filing | |
237 | 348 | separately: | |
238 | - | ||
239 | 349 | (a) 1/2% 0.25% tax on first $1,000.00 or part thereof, | |
240 | - | ||
241 | 350 | (b) 1% 0.75% tax on next $1,500.00 or part thereof, | |
242 | - | ||
243 | 351 | (c) 2% 1.75% tax on next $1,250.00 or part thereof, | |
244 | - | ||
245 | 352 | (d) 3% 2.75% tax on next $1,150.00 or part thereof, | |
246 | - | ||
247 | 353 | (e) 4% 3.75% tax on next $2,300.00 or part thereof, | |
248 | - | ||
249 | 354 | (f) 5% 4.75% tax on the remainder if the State Board of | |
250 | 355 | Equalization makes a determination pursuant to Section | |
251 | 356 | 4 of this act or four and eighty -five hundredths | |
252 | 357 | (4.85%) tax on the remainder if the State Board of | |
253 | 358 | Equalization makes a determination pursuant to Section | |
254 | 359 | 5 of this act. | |
255 | - | ||
256 | 360 | 2. Married individuals fil ing jointly and surviving spouse to | |
257 | 361 | the extent and in the manner that a surviving spouse is permitted to | |
258 | 362 | file a joint return under the provisions of the Internal Revenue | |
259 | 363 | Code and heads of households as defined in the Internal Revenue | |
260 | 364 | Code: | |
261 | 365 | ||
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262 | 391 | (a) 1/2% 0.25% tax on first $2,000.00 or part thereof, | |
263 | - | ||
264 | 392 | (b) 1% 0.75% tax on next $3,000.00 or part thereof, | |
265 | - | ||
266 | 393 | (c) 2% 1.75% tax on next $2,500.00 or part thereof, | |
267 | - | ||
268 | 394 | (d) 3% 2.75% tax on next $2,300.00 or part thereof, | |
269 | - | ||
270 | - | (e) 4% 3.75% tax on next $2,400.00 or part thereof, ENR. H. B. NO. 2962 Page 7 | |
271 | - | ||
395 | + | (e) 4% 3.75% tax on next $2,400.00 or part thereof, | |
272 | 396 | (f) 5% 4.75% tax on the remainder if the State Board of | |
273 | 397 | Equalization makes a determination pursuant to Section | |
274 | 398 | 4 of this act or four and eighty -five hundredths | |
275 | 399 | percent (4.85%) tax on the remainder if the State | |
276 | 400 | Board of Equalization makes a determination pursuant | |
277 | 401 | to Section 5 of this act . | |
278 | - | ||
279 | 402 | No deduction for federal income taxes paid shall be allowed to | |
280 | 403 | any taxpayer to arrive at taxable income. | |
281 | - | ||
282 | 404 | D. Nonresident aliens. In lieu of the rates set forth in | |
283 | 405 | subsection A above, there shall be imposed on nonresident aliens, as | |
284 | 406 | defined in the Internal Revenue Code, a tax of eight percent (8%) | |
285 | 407 | instead of thirty percent (30%) as used in the Internal Revenue | |
286 | 408 | Code, with respect to the Oklahoma taxable income of such | |
287 | 409 | nonresident aliens as determined under the provision of the Oklahom a | |
288 | 410 | Income Tax Act. | |
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290 | 411 | Every payer of amounts covered by this subsection shall deduct | |
291 | 412 | and withhold from such amounts paid each payee an amount equal to | |
292 | 413 | eight percent (8%) thereof. Every payer required to deduct and | |
293 | 414 | withhold taxes under this subsection shall fo r each quarterly period | |
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294 | 441 | on or before the last day of the month following the close of each | |
295 | 442 | such quarterly period, pay over the amount so withheld as taxes to | |
296 | 443 | the Tax Commission, and shall file a return with each such payment. | |
297 | 444 | Such return shall be in such form as the Tax Commission shall | |
298 | 445 | prescribe. Every payer required under this subsection to deduct and | |
299 | 446 | withhold a tax from a payee shall, as to the total amounts paid to | |
300 | 447 | each payee during the calendar year, furnish to such payee, on or | |
301 | 448 | before January 31, of the succeeding year, a written statement | |
302 | 449 | showing the name of the payer, the name of the payee and the payee's | |
303 | 450 | social security account number, if any, the total amount paid | |
304 | 451 | subject to taxation, and the total amount deducted and withheld as | |
305 | 452 | tax and such other information as the Tax Commission may require. | |
306 | 453 | Any payer who fails to withhold or pay to the Tax Commission any | |
307 | 454 | sums herein required to be withheld or paid shall be personally and | |
308 | 455 | individually liable therefor to the State of Oklahoma. | |
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310 | 456 | E. Corporations. For all taxable years beginning after | |
311 | 457 | December 31, 1989, a tax is hereby imposed upon the Oklahoma taxable | |
312 | 458 | income of every corporation doing business within this state or | |
313 | 459 | deriving income from sources within this state in an amount equal to | |
314 | 460 | six percent (6%) thereof. | |
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316 | 461 | There shall be no additional Oklahoma income tax imposed on | |
317 | 462 | accumulated taxable income or on undistributed personal holding | |
318 | 463 | company income as those terms are defined in the Internal Revenue | |
319 | 464 | Code. | |
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321 | 491 | F. Certain foreign corporations. In lieu of th e tax imposed in | |
322 | 492 | the first paragraph of subsection D of this section, for all taxable | |
323 | 493 | years beginning after December 31, 1989, there shall be imposed on | |
324 | 494 | foreign corporations, as defined in the Internal Revenue Code, a tax | |
325 | 495 | of six percent (6%) instead of thi rty percent (30%) as used in the | |
326 | 496 | Internal Revenue Code, where such income is received from sources | |
327 | 497 | within Oklahoma, in accordance with the provisions of the Internal | |
328 | 498 | Revenue Code and the Oklahoma Income Tax Act. | |
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330 | 499 | Every payer of amounts covered by this subse ction shall deduct | |
331 | 500 | and withhold from such amounts paid each payee an amount equal to | |
332 | 501 | six percent (6%) thereof. Every payer required to deduct and | |
333 | 502 | withhold taxes under this subsection shall for each quarterly period | |
334 | 503 | on or before the last day of the month f ollowing the close of each | |
335 | 504 | such quarterly period, pay over the amount so withheld as taxes to | |
336 | 505 | the Tax Commission, and shall file a return with each such payment. | |
337 | 506 | Such return shall be in such form as the Tax Commission shall | |
338 | 507 | prescribe. Every payer require d under this subsection to deduct and | |
339 | 508 | withhold a tax from a payee shall, as to the total amounts paid to | |
340 | 509 | each payee during the calendar year, furnish to such payee, on or | |
341 | 510 | before January 31, of the succeeding year, a written statement | |
342 | 511 | showing the name of th e payer, the name of the payee and the payee's | |
343 | 512 | social security account number, if any, the total amounts paid | |
344 | 513 | subject to taxation, the total amount deducted and withheld as tax | |
345 | 514 | and such other information as the Tax Commission may require. Any | |
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346 | 541 | payer who fails to withhold or pay to the Tax Commission any sums | |
347 | 542 | herein required to be withheld or paid shall be personally and | |
348 | 543 | individually liable therefor to the State of Oklahoma. | |
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350 | 544 | G. Fiduciaries. A tax is hereby imposed upon the Oklahoma | |
351 | 545 | taxable income of every trust and estate at the same rates as are | |
352 | 546 | provided in subsection B or C of this section for single | |
353 | 547 | individuals. Fiduciaries are not allowed a deduction for any | |
354 | 548 | federal income tax paid. | |
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356 | 549 | H. Tax rate tables. For all taxable years beginning after | |
357 | 550 | December 31, 1991, in lieu of the tax imposed by subsection A, B or | |
358 | 551 | C of this section, as applicable there is hereby imposed for each | |
359 | 552 | taxable year on the taxable income of every individual, whose | |
360 | - | taxable income for such taxable year does not exceed the ceiling | |
553 | + | taxable income for such taxable year does not exceed the ceiling | |
361 | 554 | amount, a tax determined under tables, applicable to such taxable | |
362 | 555 | year which shall be prescribed by the Tax Commission and which shall | |
363 | 556 | be in such form as it determines appropriate. In the table so | |
364 | 557 | prescribed, the amounts of the tax shall be computed on the bas is of | |
365 | 558 | the rates prescribed by subsection A, B or C of this section. For | |
366 | 559 | purposes of this subsection, the term "ceiling amount" means, with | |
367 | 560 | respect to any taxpayer, the amount determined by the Tax Commission | |
368 | 561 | for the tax rate category in which such taxpaye r falls. | |
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370 | 562 | SECTION 2. AMENDATORY 68 O.S. 2011, Section 2357.43, as | |
371 | 563 | amended by Section 1, Chapter 341, O.S.L. 2016 (68 O.S. Supp. 2020, | |
372 | 564 | Section 2357.43), is amended to read as follows: | |
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374 | 591 | Section 2357.43 For tax years beginning on or after December | |
375 | 592 | 31, 2001 January 1, 2022, there shall be allowed to a resident | |
376 | 593 | individual or a part -year resident individual as a credit against | |
377 | 594 | the tax imposed by Section 2355 of this title five percent (5%) of | |
378 | 595 | the earned income tax credit allowed under Sec tion 32 of the | |
379 | 596 | Internal Revenue Code of the United States, 26 U.S.C., Section 32 , | |
380 | 597 | which for the taxable year beginning January 1, 2022, and the | |
381 | 598 | taxable year beginning each January 1 thereafter shall be computed | |
382 | 599 | using the same requirements, other than the f ive percent (5%) amount | |
383 | 600 | to compute the credit as prescribed by this section which shall | |
384 | 601 | remain constant, in effect for computation of the earned income tax | |
385 | 602 | credit for federal income tax purposes for the 2020 income tax year . | |
386 | 603 | However, this credit shall not be paid in advance pursuant to the | |
387 | 604 | provisions of Section 3507 of the Internal Revenue Code. For tax | |
388 | 605 | years which begin before on or after January 1, 2016 2022, if the | |
389 | 606 | credit exceeds the tax imposed by Section 2355 of this title, the | |
390 | 607 | excess amount shall be refunded to the taxpayer. The maximum earned | |
391 | 608 | income tax credit allowable on the Oklahoma income tax return shall | |
392 | 609 | be prorated on the ratio that Oklahoma adjusted gross income bears | |
393 | 610 | to the federal adjusted gross income. | |
611 | + | SECTION 3. This act shall become effective January 1, 2022. | |
394 | 612 | ||
395 | - | SECTION 3. This act shall become effective January 1, 2022. | |
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397 | 638 | Passed the House of Representatives the 18th day of May, 2021. | |
398 | 639 | ||
399 | 640 | ||
400 | 641 | ||
401 | 642 | ||
402 | 643 | Presiding Officer of the House | |
403 | 644 | of Representatives | |
404 | 645 | ||
405 | 646 | ||
406 | - | Passed the Senate the | |
647 | + | Passed the Senate the ___ day of __________, 2021. | |
407 | 648 | ||
408 | 649 | ||
409 | 650 | ||
410 | 651 | ||
411 | 652 | Presiding Officer of the Senate | |
412 | - | ||
413 | - | ||
414 | - | ||
415 | - | OFFICE OF THE GOVERNOR | |
416 | - | Received by the Office of the Governor this ____________________ | |
417 | - | day of ___________________, 20_______, at ______ _ o'clock _______ M. | |
418 | - | By: _________________________________ | |
419 | - | Approved by the Governor of the State of Oklahoma this _________ | |
420 | - | day of ___________________, 20_______, at _______ o'clock _______ M. | |
421 | - | ||
422 | - | ||
423 | - | _________________________________ | |
424 | - | Governor of the State of Oklahoma | |
425 | - | ||
426 | - | OFFICE OF THE SECRETARY OF STATE | |
427 | - | Received by the Office of the Secretary of State this __________ | |
428 | - | day of ___________________, 20_______, at _______ o'clock _______ M. | |
429 | - | By: _________________________________ | |
430 | - |