Oklahoma 2023 Regular Session

Oklahoma House Bill HB1954 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	ENGR. H. B. NO. 1954 Page 1 1
	3	+	HB1954 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
4	5		2
5	6		3
6	7		4
7	8		5
8	9		6
9	10		7
10	11		8
11	12		9
12	13		10
13	14		11
14	15		12
15	16		13
16	17		14
17	18		15
18	19		16
19	20		17
20	21		18
21	22		19
22	23		20
23	24		21
24	25		22
25	26		23
26	27		24
27	28
28		-	ENGROSSED HOUSE
29		-	BILL NO. 1954 By: McCall, O'Donnell, Echols,
30		-	and Sims of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
31	30
32		-	~~and~~
	31	+	STATE OF OKLAHOMA
33	32
34		-	Bullard of the Senate
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 1954 By: McCall and O'Donnell
35	36
36	37
37	38
38	39
39	40
	41	+	AS INTRODUCED
	42	+
40	43		An Act relating to revenue and taxation; a mending 68
41	44		O.S. 2021, Section 235 5, as amended by Section 45,
42		-	Chapter ~~228,~~ O.S.L. 2022 (68 O.S. Supp. 2022, Section
	45	+	Chapter 28 O.S.L. 2022 (68 O.S. Supp. 2022, Section
43	46		2355), which relates to income tax rates; modifying
44	47		individual income tax rates; and providing an
45	48		effective date.
	49	+
	50	+
46	51
47	52
48	53
49	54
50	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
51	56		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
52	57		amended by Section 45, Chapter 228, O.S.L. 2022 (68 O.S. Supp. 2022,
53	58		Section 2355), is amended to read as follows:
54	59		Section 2355. A. Individuals. For all taxable years beginni ng
55	60		after December 31, 1998 , and before January 1, 2006, a tax is hereby
56	61		imposed upon the Oklahoma taxable in come of every resident or
57	62		nonresident individu al, which tax shall be computed at the option of
58	63		the taxpayer under one of the two following methods:
59	64		1. METHOD 1.
60		-	a. Single individuals and married individuals filing
61		-	separately not deducting federal income tax:
62		-	(1) 1/2% tax on first $1,000.00 or part th ereof,
63	65
64		-	ENGR. H. B. NO. 1954 Page 2 1
	66	+	HB1954 HFLR Page 2
	67	+	BOLD FACE denotes Committee Amendments. 1
65	68		2
66	69		3
67	70		4
68	71		5
69	72		6
70	73		7
71	74		8
72	75		9
73	76		10
74	77		11
75	78		12
76	79		13
77	80		14
78	81		15
79	82		16
80	83		17
81	84		18
82	85		19
83	86		20
84	87		21
85	88		22
86	89		23
87	90		24
88	91
	92	+	a. Single individuals and married individuals filing
	93	+	separately not deducting federal income t ax:
	94	+	(1) 1/2% tax on first $1,000.00 or part th ereof,
89	95		(2) 1% tax on next $1,500.00 or part thereof,
90	96		(3) 2% tax on next $1,250.00 or part thereof,
91	97		(4) 3% tax on next $1,150.00 or part thereof,
92	98		(5) 4% tax on next $1,300.00 or part th ereof,
93	99		(6) 5% tax on next $1,500.00 or part thereof,
94	100		(7) 6% tax on next $2,300.00 or part thereof, and
95	101		(8) (a) for taxable years beginning after December
96	102		31, 1998, and before January 1, 2002, 6.75%
97	103		tax on the remainder,
98	104		(b) for taxable years beginning on o r after
99	105		January 1, 2002, and before January 1, 2004,
100	106		7% tax on the remainder, and
101	107		(c) for taxable years beginning on or after
102	108		January 1, 2004, 6.65% tax on the remainde r.
103	109		b. Married individuals filing jointly and surviving
104	110		spouse to the extent and in the m anner that a
105	111		surviving spouse is permitted to file a joint return
106	112		under the provisions of the Internal Revenue Code and
107	113		heads of households as defined in the Internal Revenue
108	114		Code not deducting federa l income tax:
109	115		(1) 1/2% tax on first $2,000.00 or part th ereof,
110		-	(2) 1% tax on next $3,000.00 or part thereof,
111		-	(3) 2% tax on next $2,500.00 or part thereof,
112		-	(4) 3% tax on next $2,300.00 or part thereof,
113	116
114		-	ENGR. H. B. NO. 1954 Page 3 1
	117	+	HB1954 HFLR Page 3
	118	+	BOLD FACE denotes Committee Amendments. 1
115	119		2
116	120		3
117	121		4
118	122		5
119	123		6
120	124		7
121	125		8
122	126		9
123	127		10
124	128		11
125	129		12
126	130		13
127	131		14
128	132		15
129	133		16
130	134		17
131	135		18
132	136		19
133	137		20
134	138		21
135	139		22
136	140		23
137	141		24
138	142
	143	+	(2) 1% tax on next $3,000.00 or part thereof,
	144	+	(3) 2% tax on next $2,500.00 or part thereof,
	145	+	(4) 3% tax on next $2,300.00 or part thereof,
139	146		(5) 4% tax on next $2,400.00 or part thereof,
140	147		(6) 5% tax on next $2,800.00 or part thereof,
141	148		(7) 6% tax on next $6,000.00 or part thereof, and
142	149		(8) (a) for taxable years beginning after December
143	150		31, 1998, and before January 1, 2002 , 6.75%
144	151		tax on the remainder,
145	152		(b) for taxable years beginning on or after
146	153		January 1, 2002, and before January 1, 2004,
147	154		7% tax on the remainder, and
148	155		(c) for taxable years beginning on or after
149	156		January 1, 2004, 6.65% tax on the remainder.
150	157		2. METHOD 2.
151	158		a. Single individuals and married individu als filing
152	159		separately deducting federal incom e tax:
153	160		(1) 1/2% tax on first $1,000.00 or part thereof,
154	161		(2) 1% tax on next $1,500. 00 or part thereof,
155	162		(3) 2% tax on next $1,250. 00 or part thereof,
156	163		(4) 3% tax on next $1,150.00 or part thereof,
157	164		(5) 4% tax on next $1,200.00 or part thereof,
158	165		(6) 5% tax on next $1,400.00 or part thereof,
159	166		(7) 6% tax on next $1,500. 00 or part thereof,
160		-	(8) 7% tax on next $1,500.00 or part thereof,
161		-	(9) 8% tax on next $2,000.00 or part thereof,
162		-	(10) 9% tax on next $3,500.00 or part thereof, and
163	167
164		-	ENGR. H. B. NO. 1954 Page 4 1
	168	+	HB1954 HFLR Page 4
	169	+	BOLD FACE denotes Committee Amendments. 1
165	170		2
166	171		3
167	172		4
168	173		5
169	174		6
170	175		7
171	176		8
172	177		9
173	178		10
174	179		11
175	180		12
176	181		13
177	182		14
178	183		15
179	184		16
180	185		17
181	186		18
182	187		19
183	188		20
184	189		21
185	190		22
186	191		23
187	192		24
188	193
	194	+	(8) 7% tax on next $1,500.00 or part thereof,
	195	+	(9) 8% tax on next $2,000.00 or part thereof,
	196	+	(10) 9% tax on next $3,500.00 or part thereof, and
189	197		(11) 10% tax on the remainder.
190	198		b. Married individuals filing jointly and surviving
191	199		spouse to the extent and in the mann er that a
192	200		surviving spouse is permitted to fil e a joint return
193	201		under the provisions of the Internal Revenue Code and
194	202		heads of households as defined in the Internal Revenue
195	203		Code deducting federal income tax:
196	204		(1) 1/2% tax on the first $2,000.00 or part there of,
197	205		(2) 1% tax on the next $3,000.00 or part t hereof,
198	206		(3) 2% tax on the next $2,500.00 or part thereof,
199	207		(4) 3% tax on the next $1,400.00 or part the reof,
200	208		(5) 4% tax on the next $1,500.00 or part thereof,
201	209		(6) 5% tax on the next $1, 600.00 or part thereof,
202	210		(7) 6% tax on the next $1,250.00 or part thereof ,
203	211		(8) 7% tax on the next $1,750.00 or part thereof,
204	212		(9) 8% tax on the next $3,000.00 or part thereof,
205	213		(10) 9% tax on the next $6 ,000.00 or part thereof, and
206	214		(11) 10% tax on the remaind er.
207	215		B. Individuals. For all taxable years beginning on or after
208	216		January 1, 2008, and ending any tax year which begins after Decem ber
209	217		31, 2015, for which the determination r equired pursuant to Sectio ns
210		-	4 and 5 of this act is made by the State Board of Equ alization, a
211		-	tax is hereby imposed upon the Oklahoma taxable income of e very
212	218
213		-	ENGR. H. B. NO. 1954 Page 5 1
	219	+	HB1954 HFLR Page 5
	220	+	BOLD FACE denotes Committee Amendments. 1
214	221		2
215	222		3
216	223		4
217	224		5
218	225		6
219	226		7
220	227		8
221	228		9
222	229		10
223	230		11
224	231		12
225	232		13
226	233		14
227	234		15
228	235		16
229	236		17
230	237		18
231	238		19
232	239		20
233	240		21
234	241		22
235	242		23
236	243		24
237	244
	245	+	4 and 5 of this act is made by the State Board of Equ alization, a
	246	+	tax is hereby imposed upon the Oklahoma taxable income of e very
238	247		resident or nonresident individual, which tax shall be computed as
239	248		follows:
240	249		1. Single individuals and married individuals filing
241	250		separately:
242	251		(a) 1/2% tax on first $1,000.00 or pa rt thereof,
243	252		(b) 1% tax on next $1,500.00 or part thereof,
244	253		(c) 2% tax on next $1,250.00 or part thereof,
245	254		(d) 3% tax on next $1,150.00 or part thereof,
246	255		(e) 4% tax on next $2,30 0.00 or part thereof,
247	256		(f) 5% tax on next $1,500.00 or part thereof,
248	257		(g) 5.50% tax on the remainder for the 2 008 tax year and
249	258		any subsequent tax year unles s the rate prescribed by
250	259		subparagraph (h) of this p aragraph is in effect, and
251	260		(h) 5.25% tax on the rem ainder for the 2009 and su bsequent
252	261		tax years. The decrease in the top marginal
253	262		individual income tax rate o therwise authorized by
254	263		this subparagraph shall be contingent upon the
255	264		determination required to be made by the State Board
256	265		of Equalization pursuant to Section 2355.1A of this
257	266		title.
258	267		2. Married individuals filing jointly and survi ving spouse to
259	268		the extent and in the manner that a surviving spouse is p ermitted to
260		-	file a joint return under the provisi ons of the Internal Revenue
261	269
262		-	ENGR. H. B. NO. 1954 Page 6 1
	270	+	HB1954 HFLR Page 6
	271	+	BOLD FACE denotes Committee Amendments. 1
263	272		2
264	273		3
265	274		4
266	275		5
267	276		6
268	277		7
269	278		8
270	279		9
271	280		10
272	281		11
273	282		12
274	283		13
275	284		14
276	285		15
277	286		16
278	287		17
279	288		18
280	289		19
281	290		20
282	291		21
283	292		22
284	293		23
285	294		24
286	295
	296	+	file a joint return under the provisi ons of the Internal Revenue
287	297		Code and heads of househo lds as defined in the Inte rnal Revenue
288	298		Code:
289	299		(a) 1/2% tax on first $2,000.00 or pa rt thereof,
290	300		(b) 1% tax on next $3,000.00 or part thereof,
291	301		(c) 2% tax on next $2,500.00 or part thereof,
292	302		(d) 3% tax on next $2,300.00 or part thereof,
293	303		(e) 4% tax on next $2,40 0.00 or part thereof,
294	304		(f) 5% tax on next $2,800.00 or part thereof,
295	305		(g) 5.50% tax on the remainder for the 2 008 tax year and
296	306		any subsequent tax year unles s the rate prescribed by
297	307		subparagraph (h) of this paragraph is in effect, and
298	308		(h) 5.25% tax on the rem ainder for the 2009 and su bsequent
299	309		tax years. The decrease in the top marginal
300	310		individual income tax rate o therwise authorized by
301	311		this subparagraph shall be contingent upon the
302	312		determination required to be made by the State Board
303	313		of Equalization pursuant to Section 2355.1A of this
304	314		title.
305	315		C. Individuals. For all taxable years beginnin g on or after
306	316		January 1, 2022 2024, a tax is hereby imposed upon the Oklahoma
307	317		taxable income of every resident or non resident individual, which
308	318		tax shall be computed as follo ws:
309		-	1. Single individuals and married individuals filing
310		-	separately:
311	319
312		-	ENGR. H. B. NO. 1954 Page 7 1
	320	+	HB1954 HFLR Page 7
	321	+	BOLD FACE denotes Committee Amendments. 1
313	322		2
314	323		3
315	324		4
316	325		5
317	326		6
318	327		7
319	328		8
320	329		9
321	330		10
322	331		11
323	332		12
324	333		13
325	334		14
326	335		15
327	336		16
328	337		17
329	338		18
330	339		19
331	340		20
332	341		21
333	342		22
334	343		23
335	344		24
336	345
	346	+	1. Single individuals and married individuals filing
	347	+	separately:
337	348		(a) 0.25% 0.00% tax on first $1,000.00 or part thereof,
338	349		(b) 0.75% 0.25% tax on next $1,500.00 or part thereof,
339	350		(c) 1.75% 1.25% tax on next $1,250.00 or part thereof,
340	351		(d) 2.75% 2.25% tax on next $1,150.00 or part thereof,
341	352		(e) 3.75% 3.25% tax on next $2,300.00 or part thereof,
342	353		(f) 4.75% 4.25% tax on the remainder.
343	354		2. Married individuals filing jointly and surviving spouse to
344	355		the extent and in the manner that a surviving spouse is permitted to
345	356		file a joint return under the provisions of the In ternal Revenue
346	357		Code and heads of households as defined in the Internal Revenue
347	358		Code:
348	359		(a) 0.25% 0.00% tax on first $2,000.00 or part thereof,
349	360		(b) 0.75% 0.25% tax on next $3,000.00 or part thereof,
350	361		(c) 1.75% 1.25% tax on next $2,500.00 or part thereof,
351	362		(d) 2.75% 2.25% tax on next $2,300.00 or part thereof,
352	363		(e) 3.75% 3.25% tax on next $2,400.00 or part thereof,
353	364		(f) 4.75% 4.25% tax on the remainder.
354	365		No deduction for federal income taxes paid shall be allowed to
355	366		any taxpayer to arrive at taxable income.
356	367		D. Nonresident aliens. In lieu of the rates set forth in
357	368		subsection A above this section, there shall be imposed on
358	369		nonresident aliens, as defi ned in the Internal Revenue Code, a tax
359		-	of eight percent (8%) instead of thirty percent (30%) as used in the
360		-	Internal Revenue Code, with respect to the Okla homa taxable income
361	370
362		-	ENGR. H. B. NO. 1954 Page 8 1
	371	+	HB1954 HFLR Page 8
	372	+	BOLD FACE denotes Committee Amendments. 1
363	373		2
364	374		3
365	375		4
366	376		5
367	377		6
368	378		7
369	379		8
370	380		9
371	381		10
372	382		11
373	383		12
374	384		13
375	385		14
376	386		15
377	387		16
378	388		17
379	389		18
380	390		19
381	391		20
382	392		21
383	393		22
384	394		23
385	395		24
386	396
	397	+	of eight percent (8%) instead of thirty percent (30%) as used in the
	398	+	Internal Revenue Code, with respect to the Oklahoma taxable income
387	399		of such nonresident aliens as determined un der the provision of the
388	400		Oklahoma Income Tax Act.
389	401		Every payer of amounts covered by this subsection shall deduct
390	402		and withhold from such amounts paid each pa yee an amount equal to
391	403		eight percent (8%) thereof . Every payer required to deduct and
392	404		withhold taxes under this subsection shall for eac h quarterly period
393	405		on or before the last day of the month following the close of each
394	406		such quarterly period, pay over t he amount so withheld as taxes to
395	407		the Tax Commission, and shall file a return with each such payment .
396	408		Such return shall be in such form as the Tax Commission shall
397	409		prescribe. Every payer required under this subsection to deduct and
398	410		withhold a tax from a payee shall, as to the total amounts paid to
399	411		each payee during the calendar year, furnish to such pa yee, on or
400	412		before January 31, of the succeeding year, a written statement
401	413		showing the name of the payer, the name of the payee and the payee 's
402	414		Social Security account number, if any, the total amount paid
403	415		subject to taxation, and the total amount deducted and withheld as
404	416		tax and such other in formation as the Tax Commission may require.
405	417		Any payer who fails to withhold or pay to the Tax Commission any
406	418		sums herein required to be withheld or paid shall be perso nally and
407	419		individually liable therefor to the Stat e of Oklahoma.
408		-	E. Corporations. For all taxable years beginning after
409		-	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
410		-	income of every corporation doing business within th is state or
411	420
412		-	ENGR. H. B. NO. 1954 Page 9 1
	421	+	HB1954 HFLR Page 9
	422	+	BOLD FACE denotes Committee Amendments. 1
413	423		2
414	424		3
415	425		4
416	426		5
417	427		6
418	428		7
419	429		8
420	430		9
421	431		10
422	432		11
423	433		12
424	434		13
425	435		14
426	436		15
427	437		16
428	438		17
429	439		18
430	440		19
431	441		20
432	442		21
433	443		22
434	444		23
435	445		24
436	446
	447	+	E. Corporations. For all taxable years beginning after
	448	+	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
	449	+	income of every corporation doing business within this state or
437	450		deriving income from sources within this state in a n amount equal to
438	451		four percent (4%) thereof.
439	452		There shall be no additional Oklahoma income tax imposed on
440	453		accumulated taxable income or on undistributed pers onal holding
441	454		company income as those terms are defined in the Internal Revenue
442	455		Code.
443	456		F. Certain foreign corporations. In lieu of the tax imposed in
444		-	the first paragraph of subsection D E of this section, for all
445		-	~~taxable~~ years beginning after ~~Dece mber~~ 31, 2021, there shall be
446		-	~~imposed on~~ foreign corporations, as defined in the Internal Revenue
447		-	~~Code, a tax~~ of four percent (4%) instead of thirty percent (30%) as
448		-	~~used in the~~ Internal Revenue Code, where such income is received
449		-	~~from sources~~ within ~~Oklah oma~~, in ~~accordance~~ with the provisions of
450		-	~~the Internal~~ Revenue Code and the Oklahoma Income Tax Act.
	457	+	the first paragraph of subsection D of this section, for all taxable
	458	+	years beginning after December 31, 2021, there shall be impo sed on
	459	+	foreign corporations, as defined in the Internal Revenue Code, a tax
	460	+	of four percent (4%) instead of thirty percent (30%) as used in the
	461	+	Internal Revenue Code, where such income is received from sources
	462	+	within Oklahoma, in acc ordance with the provisions of the Internal
	463	+	Revenue Code and the Oklahoma Income Tax Act.
451	464		Every payer of amounts covered by this subsection shall deduct
452	465		and withhold from such amounts paid each payee an amount equal to
453	466		four percent (4%) thereof. Every payer required to deduct and
454	467		withhold taxes under this subsection shall for eac h quarterly period
455	468		on or before the last day of the month fo llowing the close of ea ch
456	469		such quarterly period, pay over the amount so withheld as taxes to
457	470		the Tax Commission, and shall file a return with each such payment .
458		-	Such return shall be in such form as the Tax Commission shall
459		-	prescribe. Every payer required under this subsection to deduct and
460		-	withhold a tax from a payee shall, as to the total amounts paid to
461	471
462		-	ENGR. H. B. NO. 1954 Page 10 1
	472	+	HB1954 HFLR Page 10
	473	+	BOLD FACE denotes Committee Amendments. 1
463	474		2
464	475		3
465	476		4
466	477		5
467	478		6
468	479		7
469	480		8
470	481		9
471	482		10
472	483		11
473	484		12
474	485		13
475	486		14
476	487		15
477	488		16
478	489		17
479	490		18
480	491		19
481	492		20
482	493		21
483	494		22
484	495		23
485	496		24
486	497
	498	+	Such return shall be in such form as the Tax Commission shall
	499	+	prescribe. Every payer required under this subsection to deduct and
	500	+	withhold a tax from a payee shall, as to the total amounts paid to
487	501		each payee during the calendar year, furnish to such payee, o n or
488	502		before January 31, of the succeeding year, a written statement
489	503		showing the name of the payer, the name of the payee and the payee's
490	504		Social Security account number, if any, the total amounts paid
491	505		subject to taxation, the total amount deducted and withh eld as tax
492	506		and such other infor mation as the Tax Commission may require. Any
493	507		payer who fails to withhold or pay t o the Tax Commission any sums
494	508		herein required to be withheld or paid shall be personal ly and
495	509		individually liable therefor to the State of Okla homa.
496	510		G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
497	511		taxable income of every trust and estate at the same rates as are
498		-	provided in subsection B or C of this section for single
	512	+	provided in subsection B or, C, or D of this section for single
499	513		individuals. Fiduciaries are not allowed a deduction for any
500	514		federal income tax paid.
501	515		H. Tax rate tables. For all taxable years beginning after
502		-	December 31, 1991, in lieu of th e tax imposed by subsection A, B or
503		-	C of this section, as applicable there is hereby ~~imposed~~ for ~~each~~
504		-	taxable year on the taxable income of every individual, whose
	516	+	December 31, 1991, in lieu of th e tax imposed by subsection A, B or,
	517	+	C or D of this section, as applicable there is hereby i mposed for
	518	+	each taxable year on the taxable income of every individual, whose
505	519		taxable income for such taxable year does not exceed the ceiling
506	520		amount, a tax determined un der tables, applicable to such taxable
507	521		year which shall be prescribed by the Tax Commi ssion and which shall
508		-	be in such form as it determines appropriate. In the table so
509		-	prescribed, the amounts of the tax shall be computed on the ba sis of
510		-	the rates prescribed by subsection A, B or C of this section. For
511	522
512		-	ENGR. H. B. NO. 1954 Page 11 1
	523	+	HB1954 HFLR Page 11
	524	+	BOLD FACE denotes Committee Amendments. 1
513	525		2
514	526		3
515	527		4
516	528		5
517	529		6
518	530		7
519	531		8
520	532		9
521	533		10
522	534		11
523	535		12
524	536		13
525	537		14
526	538		15
527	539		16
528	540		17
529	541		18
530	542		19
531	543		20
532	544		21
533	545		22
534	546		23
535	547		24
536	548
537		-	purposes of this subsection, the term "ceiling amount" means, with
538		-	respect to any taxpayer, the amount determined by the Tax Commission
539		-	for the tax rate category in which such taxpay er falls.
	549	+	be in such form as it determines appropriate. In the table so
	550	+	prescribed, the amounts of the tax shall be computed on the ba sis of
	551	+	the rates prescribed by subsection A, B or, C or D of this section.
	552	+	For purposes of this subsection, the term "ceiling amount" means,
	553	+	with respect to any t axpayer, the amount determined by the Tax
	554	+	Commission for the tax rate category in which such taxpay er falls.
540	555		SECTION 2. This act shall become effective January 1, 2024.
541		-	Passed the House of Representatives the 22nd day of March, 2023.
542	556
543		-
544		-
545		-
546		-	Presiding Officer of the House
547		-	of Representatives
548		-
549		-
550		-	Passed the Senate the ___ day of __________, 2023.
551		-
552		-
553		-
554		-
555		-	Presiding Officer of the Senate
556		-
557		-
	557	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	558	+	03/02/2023 - DO PASS, As Coauthored.