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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023 )
HOUSE BILL 2138 By: McDugle
AS INTRODUCED
An Act relating to revenue and taxation; defining
terms; providing for certain income tax exemption;
providing income limit for exemptio n; authorizing
refund; authorizing appropriation of Oklahoma Income
Tax Adjustment Fund for refund; authorizing Oklahoma
Tax Commission to promulgate rules; providing for
codification; and providing an effective date .
BE IT ENACTED BY THE PEOPL E OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codi fied
in the Oklahoma Statutes as Section 2358.8 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. As used in this sec tion:
1. "Income" means income received directly from the qualifying
employment as compensation for that employment;
2. "Qualifying employment" means full-time employment in the
State of Oklahoma; and
3. "Qualifying taxpayer" means a taxpayer who:
a. is within twelve (12) months of graduating with a
degree from either an accredited private or public
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university or college or an accredited technology
center school, and
b. becomes employed in a qualifying employment .
B. Any income received by a qualifying taxpayer from qualifying
employment, up to Seventy-five Thousand Dollars ($75,000.00), shall
be exempt from Oklahoma income tax during the taxable year in which
the qualifying taxpayer became employed in the qualifying employment
and for the two (2) subsequent taxable years.
C. In any case where income tax has been paid upon a ny income
exempt pursuant to subs ection B of this section, the tax monies
shall be refunded to the qualifying taxpayer. The refund shall be
made by the Oklahoma Tax Commission out of the Oklahoma Income Tax
Adjustment Fund, and so much of such fund as is necessary for such
purpose is hereby appropriated.
D. The Oklahoma Tax Commission shall promulgate rule s necessary
to implement and administer the income tax exemption authorized by
this section.
SECTION 2. This act shall become effective January 1, 2024.
59-1-5072 AQH 11/03/22