Oklahoma 2023 Regular Session

Oklahoma House Bill HB2697 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 2697 Page 1 1
	3	+	HB2697 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 2697 By: Maynard, Kendrix, Cantrell,
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 2697 By: Maynard, Kendrix, Cantrell,
30	36		Hays, George, Duel, Kane,
31	37		Staires, and Tedford of the
32	38		House
33	39
34	40		and
35	41
36	42		Howard of the Senate
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	47	+	AS INTRODUCED
41	48
42	49		[ revenue and taxation – income tax brackets -
43	50		effective date ]
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48	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
49	56		SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
50	57		amended by Section 45, Chapte r 228, O.S.L. 2022 (68 O.S. Supp. 2022,
51	58		Section 2355), is amended to read as follows:
52	59		Section 2355. A. Individuals. For all taxable years beginning
53	60		after December 31, 1998, and before January 1, 2006, a tax is h ereby
54	61		imposed upon the Oklahoma taxable in come of every resident or
55	62		nonresident individual, w hich tax shall be computed at the option of
56	63		the taxpayer under one of the two following methods:
57	64		1. METHOD 1.
58		-	a. Single individuals and married individuals filing
59		-	separately not deducting federal income t ax:
60		-	(1) 1/2% tax on first $1,000.00 or part thereof ,
61	65
62		-	ENGR. H. B. NO. 2697 Page 2 1
	66	+	HB2697 HFLR Page 2
	67	+	BOLD FACE denotes Committee Amendments. 1
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	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 thereof ,
87	95		(2) 1% tax on next $1,500.00 or part thereof,
88	96		(3) 2% tax on next $1,250.00 or part thereof,
89	97		(4) 3% tax on next $1,150.00 or part thereof,
90	98		(5) 4% tax on next $1,300.00 or part thereof,
91	99		(6) 5% tax on next $1,500.00 or part thereof,
92	100		(7) 6% tax on next $2,30 0.00 or part thereof, and
93	101		(8) (a) for taxable years beginning after December
94	102		31, 1998, and before January 1, 2002, 6 .75%
95	103		tax on the remainder,
96	104		(b) for taxable years beginning on or after
97	105		January 1, 2002, and before January 1, 2004,
98	106		7% tax on the remainder, and
99	107		(c) for taxable years beginning on or after
100	108		January 1, 2004, 6.65% tax on the remainde r.
101	109		b. Married individuals filing jointly and surviving
102	110		spouse to the extent and in the manner that a
103	111		surviving spouse is permitted to file a joint return
104	112		under the provisions of the Internal Revenue Code and
105	113		heads of households as defined in the Internal Revenue
106	114		Code not deducting federal income tax:
107	115		(1) 1/2% tax on first $2,0 00.00 or part thereof,
108		-	(2) 1% tax on next $3,000.00 or part thereof,
109		-	(3) 2% tax on next $2,50 0.00 or part thereof,
110		-	(4) 3% tax on next $2,300.00 or part thereof,
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112		-	ENGR. H. B. NO. 2697 Page 3 1
	117	+	HB2697 HFLR Page 3
	118	+	BOLD FACE denotes Committee Amendments. 1
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	143	+	(2) 1% tax on next $3,000.00 or part thereof,
	144	+	(3) 2% tax on next $2,50 0.00 or part thereof,
	145	+	(4) 3% tax on next $2,300.00 or part thereof,
137	146		(5) 4% tax on next $2,400.00 or part thereof,
138	147		(6) 5% tax on next $2,800.00 or part thereof,
139	148		(7) 6% tax on next $6,000.00 or part thereof, and
140	149		(8) (a) for taxable years beginning after Dece mber
141	150		31, 1998, and before January 1, 2002 , 6.75%
142	151		tax on the remainder,
143	152		(b) for taxable years beginning on or after
144	153		January 1, 2002, and before January 1, 2004,
145	154		7% tax on the remainder, and
146	155		(c) for taxable years beginning on or after
147	156		January 1, 2004, 6.65% tax on the remainder.
148	157		2. METHOD 2.
149	158		a. Single individuals and married individu als filing
150	159		separately deducting federa l income tax:
151	160		(1) 1/2% tax on first $1,000.00 o r part thereof,
152	161		(2) 1% tax on next $1,500. 00 or part thereof,
153	162		(3) 2% tax on next $1,250.00 or part thereof,
154	163		(4) 3% tax on next $1,150.00 or part thereof,
155	164		(5) 4% tax on next $1,200.00 or part thereof,
156	165		(6) 5% tax on next $1,400.00 or part thereof,
157	166		(7) 6% tax on next $1,500.00 or part thereof,
158		-	(8) 7% tax on next $1,500.00 or part thereof,
159		-	(9) 8% tax on next $2,000.00 or part thereof,
160		-	(10) 9% tax on next $3,500.00 or part thereof, and
161	167
162		-	ENGR. H. B. NO. 2697 Page 4 1
	168	+	HB2697 HFLR Page 4
	169	+	BOLD FACE denotes Committee Amendments. 1
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	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
187	197		(11) 10% tax on the remainder.
188	198		b. Married individuals filing jointly and surv iving
189	199		spouse to the extent and in the mann er that a
190	200		surviving spouse is permitted to file a j oint return
191	201		under the provisions of the Internal Revenue Code and
192	202		heads of households as defined in the Internal Rev enue
193	203		Code deducting federal income tax:
194	204		(1) 1/2% tax on the first $2,000.00 or part there of,
195	205		(2) 1% tax on the next $3,000.00 or part thereo f,
196	206		(3) 2% tax on the next $2,500.00 or part thereof,
197	207		(4) 3% tax on the next $1,400.00 or part thereof,
198	208		(5) 4% tax on the next $1,500.00 or part thereof,
199	209		(6) 5% tax on the next $1,600.00 or part thereof,
200	210		(7) 6% tax on the next $1,250.00 or part thereof,
201	211		(8) 7% tax on the next $1,750.00 or part thereof,
202	212		(9) 8% tax on the next $3,000.00 or part thereof,
203	213		(10) 9% tax on the next $6,000.00 or part thereof, and
204	214		(11) 10% tax on the remainder.
205	215		B. Individuals. For all taxable years beginning on or after
206	216		January 1, 2008, and ending any tax year which begins after Decem ber
207	217		31, 2015, for which the determination required pursuant to Sections
208		-	4 and 5 of this act is made by the St ate Board of Equalization, a
209		-	tax is hereby imposed upon the Oklahoma taxable income of every
210	218
211		-	ENGR. H. B. NO. 2697 Page 5 1
	219	+	HB2697 HFLR Page 5
	220	+	BOLD FACE denotes Committee Amendments. 1
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	245	+	4 and 5 of this act is made by the St ate Board of Equalization, a
	246	+	tax is hereby imposed upon the Oklahoma taxable income of every
236	247		resident or nonresident individual, which tax shall be computed as
237	248		follows:
238	249		1. Single individuals and married indiv iduals filing
239	250		separately:
240	251		(a) 1/2% tax on first $1,000.00 or part thereof,
241	252		(b) 1% tax on next $1,500.00 or part thereof,
242	253		(c) 2% tax on next $1,250.00 or part thereof,
243	254		(d) 3% tax on next $1,150.00 or part thereof,
244	255		(e) 4% tax on next $2,300.00 or part thereo f,
245	256		(f) 5% tax on next $1,500.00 or part thereof ,
246	257		(g) 5.50% tax on the remainder for the 2 008 tax year and
247	258		any subsequent tax year unless the rate prescribed by
248	259		subparagraph (h) of this p aragraph is in effect, and
249	260		(h) 5.25% tax on the remainder for the 2009 and subsequent
250	261		tax years. The decrease in the top marginal
251	262		individual income tax rate o therwise authorized by
252	263		this subparagraph shall be c ontingent upon the
253	264		determination required to be made by the State Board
254	265		of Equalization pursuant to Section 2355.1A of this
255	266		title.
256	267		2. Married individuals filing j ointly and surviving spouse to
257	268		the extent and in the manner that a surviving spouse is permit ted to
258		-	file a joint return under the provisi ons of the Internal Revenue
259	269
260		-	ENGR. H. B. NO. 2697 Page 6 1
	270	+	HB2697 HFLR Page 6
	271	+	BOLD FACE denotes Committee Amendments. 1
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	296	+	file a joint return under the provisi ons of the Internal Revenue
285	297		Code and heads of households as defined in t he Internal Revenue
286	298		Code:
287	299		(a) 1/2% tax on first $2,000.00 or part thereof,
288	300		(b) 1% tax on next $3,000.00 or part thereof,
289	301		(c) 2% tax on next $2,500.00 or part thereof,
290	302		(d) 3% tax on next $2,300.00 or part thereof,
291	303		(e) 4% tax on next $2,400.00 or part thereo f,
292	304		(f) 5% tax on next $2,800.00 or part thereof ,
293	305		(g) 5.50% tax on the remainder for the 2 008 tax year and
294	306		any subsequent tax year unless the rate prescribed by
295	307		subparagraph (h) of this paragraph is in effect, and
296	308		(h) 5.25% tax on the remainder for the 2009 and subsequent
297	309		tax years. The decrease in the top marginal
298	310		individual income tax rate o therwise authorized by
299	311		this subparagraph shall be contingent upon the
300	312		determination required to be made by the State Board
301	313		of Equalization pursuant to Section 2355.1A of this
302	314		title.
303	315		C. Individuals. For all taxable years beginning on or after
304	316		January 1, 2022 2024, a tax is hereby imposed upon the Oklahom a
305	317		taxable income of every resident or non resident individual, which
306	318		tax shall be computed as follows:
307		-	1. Single individuals and married individuals filing
308		-	separately:
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310		-	ENGR. H. B. NO. 2697 Page 7 1
	320	+	HB2697 HFLR Page 7
	321	+	BOLD FACE denotes Committee Amendments. 1
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	346	+	1. Single individuals and married individuals filing
	347	+	separately:
335	348		(a) 0.25% tax on first $1,000.00 or part thereof,
336	349		(b) 0.75% tax on next $1,500.00 or part thereof,
337	350		(c) 1.75% tax on next $1,250.00 or part thereof,
338	351		(d) 2.75% tax on next $1,150.00 or part thereof,
339	352		(e) 3.75% tax on next $2,300.00 or part thereof,
340	353		(f) 4.75% tax on the remainder.
341	354		2. Married individuals filing jointly and surviving spouse to
342	355		the extent and in the manner that a surviving spouse is permitted to
343	356		file a joint return under the provisions of the Int ernal Revenue
344	357		Code and heads of households as d efined in the Internal Revenue
345	358		Code:
346	359		(a) 0.25% tax on first $2,000.00 or part thereof,
347	360		(b) 0.75% tax on next $3,000.00 or part thereof,
348	361		(c) 1.75% tax on next $2,500.00 or part thereof,
349	362		(d) 2.75% tax on next $2,300.00 or part thereof,
350	363		(e) 3.75% tax on next $2,400.00 $4,600.00 or part thereof,
351	364		(f) 4.75% tax on the remainder.
352	365		No deduction for federal income taxes paid shall be allowed to
353	366		any taxpayer to arrive at taxable income.
354	367		D. Nonresident aliens. In lieu of the rates set forth in
355	368		subsection A above, the re shall be imposed on nonresident aliens, as
356	369		defined in the Internal Revenue Code, a tax of eight percent (8%)
357		-	instead of thirty percent (30%) as used in the Inter nal Revenue
358		-	Code, with respect to the Oklahom a taxable income of such
359	370
360		-	ENGR. H. B. NO. 2697 Page 8 1
	371	+	HB2697 HFLR Page 8
	372	+	BOLD FACE denotes Committee Amendments. 1
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	397	+	instead of thirty percent (30%) as used in the Internal Revenue
	398	+	Code, with respect to the Oklahom a taxable income of such
385	399		nonresident aliens as determined under the provision of the Oklahoma
386	400		Income Tax Act.
387	401		Every payer of amounts covered by this subsection shall deduct
388	402		and withhold from such amounts paid each payee an amount equal to
389	403		eight percent (8%) thereof. Every payer required to deduct and
390	404		withhold taxes under this subsection shall for each quarterly period
391	405		on or before the last day of the month following the close of each
392	406		such quarterly period, pay over the amount so withheld as taxes to
393	407		the Tax Commission, and shall file a return with each such payment.
394	408		Such return shall be in such form as the Tax Commission shall
395	409		prescribe. Every payer required under this subsection to deduct and
396	410		withhold a tax from a payee shall, as to the total amounts pai d to
397	411		each payee during the calendar year, furni sh to such payee, on or
398	412		before January 31, of the succeeding year, a written statement
399	413		showing the name of the payer, the name of the payee and the payee 's
400	414		Social Security account number, if any, the total amo unt paid
401	415		subject to taxation, and the total amo unt deducted and withheld as
402	416		tax and such other information as the Tax Commission may require.
403	417		Any payer who fails to withhold or pay to the Tax Commission any
404	418		sums herein required to be withheld or paid shal l be personally and
405	419		individually liable therefo r to the State of Oklahoma.
406		-	E. Corporations. For all taxable years beginning after
407		-	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
408		-	income of every corporation doing business within this state or
409	420
410		-	ENGR. H. B. NO. 2697 Page 9 1
	421	+	HB2697 HFLR Page 9
	422	+	BOLD FACE denotes Committee Amendments. 1
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	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
435	450		deriving income from sources within th is state in an amount equal to
436	451		four percent (4%) thereof.
437	452		There shall be no additional Oklahoma income tax imposed on
438	453		accumulated taxable income or on undistributed personal holding
439	454		company income as those terms are defined in the Internal Revenue
440	455		Code.
441	456		F. Certain foreign corporatio ns. In lieu of the tax imposed in
442	457		the first paragraph of subsection D of this section, for all taxable
443	458		years beginning after December 31, 2021, there shall be impo sed on
444	459		foreign corporations, as defined in the Internal Revenue Code, a tax
445	460		of four percent (4%) instead of thirty percent (30%) as used in the
446	461		Internal Revenue Code, where such income is received from sources
447	462		within Oklahoma, in accordanc e with the provisions of the Inter nal
448	463		Revenue Code and the Oklahoma Income Tax Ac t.
449	464		Every payer of amounts covered by this subsection shall deduct
450	465		and withhold from such amounts paid each payee an amount equal to
451	466		four percent (4%) thereof. Every payer required to deduct and
452	467		withhold taxes under this subsection shall for eac h quarterly period
453	468		on or before the last day of the m onth following the close of each
454	469		such quarterly period, pay over the amount so withheld as taxes to
455	470		the Tax Commission, and shall file a return with each such payment .
456		-	Such return shall be in such form as the Tax Commission shall
457		-	prescribe. Every payer required under this subsection to deduct and
458		-	withhold a tax from a payee shall, as to the total amounts paid to
459	471
460		-	ENGR. H. B. NO. 2697 Page 10 1
	472	+	HB2697 HFLR Page 10
	473	+	BOLD FACE denotes Committee Amendments. 1
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	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
485	501		each payee during the calendar year, furnish to such pay ee, on or
486	502		before January 31, of the succeeding year, a written statement
487	503		showing the name of the payer, the name of the payee and the payee's
488	504		Social Security account number, if any, the total amounts paid
489	505		subject to taxation, the total amount deducted and withheld as tax
490	506		and such other infor mation as the Tax Commission may require . Any
491	507		payer who fails to withhold or pay to the Tax Commission any sums
492	508		herein required to be withheld or paid shall be personal ly and
493	509		individually liable therefor to the State of Oklahoma.
494	510		G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
495	511		taxable income of every trust and estate at the same rates as are
496	512		provided in subsection B or C of this section for single
497	513		individuals. Fiduciaries are not allowed a deduction for any
498	514		federal income tax paid.
499	515		H. Tax rate tables. For all taxable years beginning after
500	516		December 31, 1991, in lieu of the tax imposed by subsection A, B or
501	517		C of this section, as applicable there is hereby imp osed for each
502	518		taxable year on the taxable income of every individual, whose
503	519		taxable income for such taxable year does not exceed the ceiling
504	520		amount, a tax determined under tables, applicable to such taxable
505	521		year which shall be prescribed by the Tax Commiss ion and which shall
506		-	be in such form as it determine s appropriate. In the table so
507		-	prescribed, the amounts of the tax shall be computed on t he basis of
508		-	the rates prescribed by subsection A, B or C of this section. For
509	522
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	523	+	HB2697 HFLR Page 11
	524	+	BOLD FACE denotes Committee Amendments. 1
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525	539		16
526	540		17
527	541		18
528	542		19
529	543		20
530	544		21
531	545		22
532	546		23
533	547		24
534	548
	549	+	be in such form as it determine s appropriate. In the table so
	550	+	prescribed, the amounts of the tax shall be computed on t he basis of
	551	+	the rates prescribed by subsection A, B or C of this section. For
535	552		purposes of this subsection, the term "ceiling amount" means, with
536	553		respect to any taxpay er, the amount determined by the Tax Commission
537	554		for the tax rate category in which such t axpayer falls.
538	555		SECTION 2. This act shall become effective November 1, 2023.
539		-	Passed the House of Represent atives the 13th day of March, 2023.
540	556
541		-
542		-
543		-
544		-	Presiding Officer of the House
545		-	of Representatives
546		-
547		-
548		-	Passed the Senate the ___ day of __________, 2023.
549		-
550		-
551		-
552		-
553		-	Presiding Officer of the Senate
554		-
555		-
	557	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
	558	+	03/02/2023 - DO PASS, As Amended and Coauthored.