Taxation; directing State Board of Equalization to make certain certification; reduction of income tax rate upon certain certification. Emergency.
Impact
If enacted, SB1's provisions would directly influence the marginal income tax rates applicable to both individual and corporate taxpayers. The proposed adjustments aim to provide financial relief to taxpayers when state revenues surpass certain thresholds. However, the bill establishes that such tax reductions would not occur in the event of a declared revenue failure, ensuring a safeguard against budgetary constraints.
Summary
Senate Bill 1 (SB1) proposes significant amendments to Oklahoma’s tax structure, specifically targeting income tax rates and the responsibilities of the State Board of Equalization. The bill requires the State Board to certify certain fiscal year tax collections and mandates a reduction in income tax rates contingent on certified growth exceeding $400 million. It introduces a system of automatic tax rate reductions based on fiscal performance metrics, promoting fiscal responsibility within the state's taxation framework.
Contention
The bill has sparked debate regarding the implications of reducing tax rates on state revenue generation and the potential risks associated with revenue failure declarations. Proponents advocate for the long-term economic benefits of tax cuts, arguing that they would stimulate economic growth and increase compliance among taxpayers. Conversely, opponents express concerns that preferential tax breaks may ultimately strain public funds, particularly in crucial sectors such as education and healthcare.
Revenue and taxation; income tax rates; revenue determinations; State Board of Equalization; comparisons; rate reductions; standard deductions; effective date.
Revenue and taxation; income tax rates; revenue determinations; State Board of Equalization; comparisons; rate reductions; standard deductions; effective date.
Revenue and taxation; individual income tax; rates; State Board of Equalization; revenue computations; reductions; threshold tax rate; further reductions; effective date.
Child care facilities; criminal history checks; requiring notification when there is a substantiated finding of heinous and shocking abuse; effective date.
Income tax credits: prohibiting claims for deduction from certain tax credit; providing exemption for certain tax credits received; parental choice tax credits, modifying income limitations; allowing certain credit to qualifying students; establishing credit amount for certain private schools; emergency.