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28	28	STATE OF OKLAHOMA
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30	30	1st Session of the 59th Legislature (2023)
31	31
32	32	HOUSE BILL 2021 By: Wolfley
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38	38	AS INTRODUCED
39	39
40	40	An Act relating to revenue and taxation; amending 68
41	41	O.S. 2021, Section 2355, as amended by Section 45,
42	42	Chapter 228, O.S.L. 2022 (68 O.S. Supp. 2022, Section
43	43	2355), which relates to income tax; modifying income
44	44	tax rates with respect to certain amounts of taxable
45	45	income; and providing an effective da te.
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56	56	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
57	57	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
58	58	amended by Section 45, Cha pter 228, O.S.L. 2022 (68 O.S. Supp. 2022,
59	59	Section 2355), is amended to read as follows:
60	60	Section 2355. A. Individuals. For all taxable years beginning
61	61	after December 31, 1998, and before January 1, 2006, a tax i s hereby
62	62	imposed upon the Oklahoma taxable income of every resident or
63	63	nonresident individual, w hich tax shall be computed at the option of
64	64	the taxpayer under one of the two following methods:
65	65	1. METHOD 1.
66	66
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92	92	a. Single individuals and married individuals fil ing
93	93	separately not deducting federal income tax:
94	94	(1) 1/2% tax on first $1,000.00 or part thereof ,
95	95	(2) 1% tax on next $1,500.00 or part thereof,
96	96	(3) 2% tax on next $1,250.00 or part thereof,
97	97	(4) 3% tax on next $1,150.00 or part thereof,
98	98	(5) 4% tax on next $1,300.00 or part thereof,
99	99	(6) 5% tax on next $1,500.00 or part thereof,
100	100	(7) 6% tax on next $2,30 0.00 or part thereof, and
101	101	(8) (a) for taxable years beginning after December
102	102	31, 1998, and before January 1, 2002 , 6.75%
103	103	tax on the remainder,
104	104	(b) for taxable years beginning on or after
105	105	January 1, 2002, and before January 1, 2004,
106	106	7% tax on the remainder, and
107	107	(c) for taxable years beginning on or after
108	108	January 1, 2004, 6.65% tax on the remainde r.
109	109	b. Married individuals filing jointly and surviving
110	110	spouse to the extent and in the manner that a
111	111	surviving spouse is permitted to file a joint return
112	112	under the provisions of the Internal Revenue Code and
113	113	heads of households as defined in the Internal Revenue
114	114	Code not deducting federal income tax:
115	115	(1) 1/2% tax on first $2,000.00 or part thereof,
116	116
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142	142	(2) 1% tax on next $3,000.00 or part thereof,
143	143	(3) 2% tax on next $2,50 0.00 or part thereof,
144	144	(4) 3% tax on next $2,300.00 or part thereof,
145	145	(5) 4% tax on next $2,400.00 or part thereof,
146	146	(6) 5% tax on next $2,800.00 or part thereof,
147	147	(7) 6% tax on next $6,000.00 or part thereof, and
148	148	(8) (a) for taxable years beginning after Dece mber
149	149	31, 1998, and before January 1, 2002 , 6.75%
150	150	tax on the remainder,
151	151	(b) for taxable years beginning on or afte r
152	152	January 1, 2002, and before January 1, 2004,
153	153	7% tax on the remainder, and
154	154	(c) for taxable years beginning on or after
155	155	January 1, 2004, 6.65% tax on the remainder.
156	156	2. METHOD 2.
157	157	a. Single individuals and married individu als filing
158	158	separately deducting fed eral income tax:
159	159	(1) 1/2% tax on first $1,000.0 0 or part thereof,
160	160	(2) 1% tax on next $1,500.00 or part thereof,
161	161	(3) 2% tax on next $1,250.00 or part thereof,
162	162	(4) 3% tax on next $1,150.00 or part thereof,
163	163	(5) 4% tax on next $1,200.00 or part thereof,
164	164	(6) 5% tax on next $1,400.00 or part thereof,
165	165	(7) 6% tax on next $1,500.00 or part thereof,
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192	192	(8) 7% tax on next $1,500.00 or part thereof,
193	193	(9) 8% tax on next $2,000.00 or part thereof,
194	194	(10) 9% tax on next $3,500.00 or part thereof, and
195	195	(11) 10% tax on the remaind er.
196	196	b. Married individuals filing jointly and s urviving
197	197	spouse to the extent and in the manner that a
198	198	surviving spouse is permitted to file a j oint return
199	199	under the provisions of the Internal Revenue Code and
200	200	heads of households as defined in the Internal Revenue
201	201	Code deducting federal income tax:
202	202	(1) 1/2% tax on the first $2,000.00 or part thereof,
203	203	(2) 1% tax on the next $3,000.00 or part thereo f,
204	204	(3) 2% tax on the next $2,500.00 or part thereof,
205	205	(4) 3% tax on the next $1,400.00 or part thereof,
206	206	(5) 4% tax on the next $1,500.00 or part thereof,
207	207	(6) 5% tax on the next $1,600.00 or part thereof,
208	208	(7) 6% tax on the next $1,250.00 or part thereof,
209	209	(8) 7% tax on the next $1,750.00 or part thereof,
210	210	(9) 8% tax on the next $3,000.00 or part thereof,
211	211	(10) 9% tax on the next $6,000.00 or part thereof, and
212	212	(11) 10% tax on the remainder.
213	213	B. Individuals. For all taxable years beginning on or after
214	214	January 1, 2008, and ending any tax year which begins after Decem ber
215	215	31, 2015, for which the determination required pursuant to Sections
216	216
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242	242	4 and 5 of this act is made by the State Board of Equalization, a
243	243	tax is hereby imposed upon the Oklahoma taxable income of every
244	244	resident or nonresident individual, which tax shall be computed as
245	245	follows:
246	246	1. Single individuals and married in dividuals filing
247	247	separately:
248	248	(a) 1/2% tax on first $1,000.00 or part thereof,
249	249	(b) 1% tax on next $1,500.00 or part thereof,
250	250	(c) 2% tax on next $1,250.00 or part thereof,
251	251	(d) 3% tax on next $1,150.00 or part thereof,
252	252	(e) 4% tax on next $2,300.00 or part the reof,
253	253	(f) 5% tax on next $1,500.00 or part ther eof,
254	254	(g) 5.50% tax on the remainder for the 2008 tax year and
255	255	any subsequent tax year unless the rate prescribed by
256	256	subparagraph (h) of this p aragraph is in effect, and
257	257	(h) 5.25% tax on the remainder for the 2 009 and subsequent
258	258	tax years. The decrease in the top marginal
259	259	individual income tax rate otherwise authorized by
260	260	this subparagraph shall be c ontingent upon the
261	261	determination required to be made by the State Board
262	262	of Equalization pursuant to Section 2355. 1A of this
263	263	title.
264	264	2. Married individuals filin g jointly and surviving spouse to
265	265	the extent and in the manner that a surviving spouse is permit ted to
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292	292	file a joint return under the provisi ons of the Internal Revenue
293	293	Code and heads of households as defined i n the Internal Revenue
294	294	Code:
295	295	(a) 1/2% tax on first $2,000.00 or part thereof,
296	296	(b) 1% tax on next $3,000.00 or part thereof,
297	297	(c) 2% tax on next $2,500.00 or part thereof,
298	298	(d) 3% tax on next $2,300.00 or part thereof,
299	299	(e) 4% tax on next $2,400.00 or part the reof,
300	300	(f) 5% tax on next $2,800.00 or part ther eof,
301	301	(g) 5.50% tax on the remainder for the 2008 tax year and
302	302	any subsequent tax year unless the rate prescribed by
303	303	subparagraph (h) of this paragraph is in effect, and
304	304	(h) 5.25% tax on the remainder for the 2 009 and subsequent
305	305	tax years. The decrease in the top marginal
306	306	individual income tax rate otherwise authorized by
307	307	this subparagraph shall be contingent upon the
308	308	determination required to be made by the State Board
309	309	of Equalization pursuant to Section 2355. 1A of this
310	310	title.
311	311	C. Individuals. For all taxable years beginning on or after
312	312	January 1, 2022 2024, a tax is hereby imposed upon the Oklahom a
313	313	taxable income of every resident or non resident individual, which
314	314	tax shall be computed as follows:
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341	341	1. Single individuals and married individuals filing
342	342	separately:
343	343	(a) 0.25% 0.00% tax on first $1,000.00 $7,200.00 or part
344	344	thereof,
345	345	(b) 0.75% tax on next $1,500.00 or part thereof,
346	346	(c) 1.75% tax on next $1,250.00 or part thereof,
347	347	(d) 2.75% tax on next $1,150.00 or par t thereof,
348	348	(e) 3.75% tax on next $2,300.00 or part thereof,
349	349	(f) 4.75% tax on the remainder.
350	350	2. Married individuals filing jointly and surviving spouse to
351	351	the extent and in the manner that a surviving spouse is permitted to
352	352	file a joint return under the pr ovisions of the Internal Revenue
353	353	Code and heads of households as defined in the Internal Revenue
354	354	Code:
355	355	(a) 0.25% 0.00% tax on first $2,000.00 $14,400.00 or part
356	356	thereof,
357	357	(b) 0.75% tax on next $3,000.00 or part thereof,
358	358	(c) 1.75% tax on next $2,500.00 or part thereof,
359	359	(d) 2.75% tax on next $2,300.00 or part thereof,
360	360	(e) 3.75% tax on next $2,400.00 or part thereof,
361	361	(f) 4.75% tax on the remainder.
362	362	No deduction for federal income taxes paid shall be allowed to
363	363	any taxpayer to arrive at taxable income.
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390	390	D. Nonresident aliens. In lieu of the rates set forth in
391	391	subsection A above, there shall be imposed on nonresident aliens, as
392	392	defined in the Internal Revenue Code, a tax of eight percent (8%)
393	393	instead of thirty percent (30%) as used in the Internal Revenue
394	394	Code, with respect to the Oklahoma taxable income of such
395	395	nonresident aliens as determined under the provision of the Oklahoma
396	396	Income Tax Act.
397	397	Every payer of amounts covered by this subsection shall deduct
398	398	and withhold from such amounts paid each payee an amount equal to
399	399	eight percent (8%) thereof . Every payer required to deduct and
400	400	withhold taxes under this subsection shall for eac h quarterly period
401	401	on or before the last day of the month following the close of each
402	402	such quarterly period, pay over the amount so w ithheld as taxes to
403	403	the Tax Commission, and shall file a return with each such payment.
404	404	Such return shall be in such form as the Tax Commission shall
405	405	prescribe. Every payer required under this subsection to deduct and
406	406	withhold a tax from a payee shall, a s to the total amounts paid to
407	407	each payee during the calendar year, furnish to such payee, on or
408	408	before January 31, of the succeeding year, a written statement
409	409	showing the name of the payer, the name of the payee and the payee 's
410	410	Social Security account number, if any, the total amount paid
411	411	subject to taxation, and the total amount deducted and withheld as
412	412	tax and such other in formation as the Tax Commission may require.
413	413	Any payer who fails to withhold or pay to the Tax Commission any
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440	440	sums herein required t o be withheld or paid shall be perso nally and
441	441	individually liable therefor to the State of Oklahoma.
442	442	E. Corporations. For all taxable years beginning after
443	443	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
444	444	income of every corporation d oing business within this state or
445	445	deriving income from sources within this state in an amount equal to
446	446	four percent (4%) thereof.
447	447	There shall be no additional Oklahoma income tax imposed on
448	448	accumulated taxable income or on undistributed personal holding
449	449	company income as those terms are defined in the Internal Rev enue
450	450	Code.
451	451	F. Certain foreign corporations. In lieu of the tax imposed in
452	452	the first paragraph of subsection D of this section, for all taxable
453	453	years beginning after December 31, 2021, there shall be imposed on
454	454	foreign corporations, as defined in the Inte rnal Revenue Code, a tax
455	455	of four percent (4%) instead of thirty percent (30%) as used in the
456	456	Internal Revenue Code, where such income is received from sources
457	457	within Oklahoma, in accordanc e with the provisions of the Internal
458	458	Revenue Code and the Oklahoma Income Tax Act.
459	459	Every payer of amounts covered by this subsection shall deduct
460	460	and withhold from such amounts paid each payee an amount equal to
461	461	four percent (4%) thereof. Every payer required to deduct and
462	462	withhold taxes under this subsection shall for e ach quarterly period
463	463	on or before the last day of the month following the close of ea ch
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490	490	such quarterly period, pay over the amount so withheld as taxes to
491	491	the Tax Commission, and shall file a return with each such payment .
492	492	Such return shall be in such for m as the Tax Commission shall
493	493	prescribe. Every payer required under this subsection to deduct and
494	494	withhold a tax from a payee shall, as to the total amounts paid to
495	495	each payee during the calendar year, furnish to such payee, o n or
496	496	before January 31, of th e succeeding year, a written statement
497	497	showing the name of the payer, the name of the payee and the payee's
498	498	Social Security account number, if any, the total amounts paid
499	499	subject to taxation, the total amount deducted and withh eld as tax
500	500	and such other information as the Tax Commission may require. Any
501	501	payer who fails to withhold or pay t o the Tax Commission any sums
502	502	herein required to be withheld or paid shall be personal ly and
503	503	individually liable therefor to the State of Okla homa.
504	504	G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
505	505	taxable income of every trust and estate at the same rates as are
506	506	provided in subsection B or C of this section for single
507	507	individuals. Fiduciaries are not allowed a deduction for any
508	508	federal income tax paid.
509	509	H. Tax rate tables. For all taxable years beginning after
510	510	December 31, 1991, in lieu of th e tax imposed by subsection A, B or
511	511	C of this section, as applicable there is hereby imp osed for each
512	512	taxable year on the taxable income of ever y individual, whose
513	513	taxable income for such taxable year does not exceed the ceiling
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540	540	amount, a tax determined un der tables, applicable to such taxable
541	541	year which shall be prescribed by the Tax Commiss ion and which shall
542	542	be in such form as it determines app ropriate. In the table so
543	543	prescribed, the amounts of the tax shall be computed on the basis of
544	544	the rates prescribed by subsection A, B or C of this section. For
545	545	purposes of this subsection, the term "ceiling amount" means, with
546	546	respect to any taxpayer, t he amount determined by the T ax Commission
547	547	for the tax rate category in which such taxpayer falls.
548	548	SECTION 2. This act shall become effective January 1, 2024.
549	549
550	550	59-1-7139 MAH 01/17/23
551	551

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2021 Compare Versions