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28	28	STATE OF OKLAHOMA
29	29
30	30	2nd Session of the 59th Legislature (2024)
31	31
32	32	HOUSE BILL 2952 By: McCall
33	33
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35	35
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37	37
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 last amended by Section
42	42	1, Chapter 27, 1st Extraordinary Session, O.S.L. 2023
43	43	(68 O.S. Supp. 2023, Section 2355), which relates to
44	44	individual income tax rates; prescribing individual
45	45	income tax rates for designated taxable years; and
46	46	providing an effective date .
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48	48
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51	51
52	52	BE IT ENACTED BY THE PEOPLE OF THE ST ATE OF OKLAHOMA:
53	53	SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as
54	54	last amended by Section 1, Chapter 27, 1st Extraordinary Session,
55	55	O.S.L. 2023 (68 O.S. Supp. 2023, Section 2355), is amended to read
56	56	as follows:
57	57	Section 2355. A. Individuals. For all taxable years beginning
58	58	after December 31, 1998, and before January 1, 2006, a tax is hereby
59	59	imposed upon the Oklahoma taxable in come of every resident or
60	60	nonresident individual, which tax shall be computed at the option of
61	61	the taxpayer under one of the two following methods:
62	62
63	63	1. METHOD 1.
64	64
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90	90	a. Single individuals and married individuals filing
91	91	separately not deducting federal income t ax:
92	92	(1) 1/2% tax on first $1,000.00 or part there of,
93	93	(2) 1% tax on next $1,500.00 or part thereof,
94	94	(3) 2% tax on next $1,250.00 or part thereof,
95	95	(4) 3% tax on next $1,150.00 or part thereof,
96	96	(5) 4% tax on next $1,300.00 or part thereof,
97	97	(6) 5% tax on next $1,500.00 or part thereof,
98	98	(7) 6% tax on next $2,300.00 or part thereof, and
99	99	(8) (a) for taxable years beginning after December
100	100	31, 1998, and before January 1, 2002, 6.75%
101	101	tax on the remainder,
102	102	(b) for taxable years beginning on or after
103	103	January 1, 2002, and before January 1, 2004,
104	104	7% tax on the remainde r, and
105	105	(c) for taxable years beginning on or after
106	106	January 1, 2004, 6.65% tax on the remainder.
107	107	b. Married individuals filing jointly and surviving
108	108	spouse to the extent and in the manner that a
109	109	surviving spouse is permitted to file a joint return
110	110	under the provisions of the Internal Revenue Code and
111	111	heads of households as defined in the Internal Revenue
112	112	Code not deducting federal income tax:
113	113	(1) 1/2% tax on first $2,000.00 or part thereof,
114	114
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140	140	(2) 1% tax on next $3,000.00 or part thereof,
141	141	(3) 2% tax on next $2,500.00 or part thereof,
142	142	(4) 3% tax on next $2,300.00 or part thereof,
143	143	(5) 4% tax on next $2,400.00 or part thereof,
144	144	(6) 5% tax on next $2,800.00 or part thereof,
145	145	(7) 6% tax on next $6,000.00 or part thereof, and
146	146	(8) (a) for taxable years beginning after De cember
147	147	31, 1998, and before January 1, 2002, 6.75%
148	148	tax on the remainder,
149	149	(b) for taxable years beginning on or after
150	150	January 1, 2002, and before January 1, 2004,
151	151	7% tax on the remainder, and
152	152	(c) for taxable years beginning on or after
153	153	January 1, 2004, 6.65 % tax on the remainder.
154	154	2. METHOD 2.
155	155	a. Single individuals and married individuals filing
156	156	separately deducting federal income tax:
157	157	(1) 1/2% tax on first $1,000.00 or part thereof,
158	158	(2) 1% tax on next $1,500. 00 or part thereof,
159	159	(3) 2% tax on next $1,250.00 or part thereof,
160	160	(4) 3% tax on next $1,150.00 or part thereof,
161	161	(5) 4% tax on next $1,200.00 or part thereof,
162	162	(6) 5% tax on next $1,400.00 or part thereof,
163	163	(7) 6% tax on next $1,500.00 or part thereof,
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190	190	(8) 7% tax on next $1,500.00 or part thereof,
191	191	(9) 8% tax on next $2,000.00 or part thereof,
192	192	(10) 9% tax on next $3,500.00 or part thereof, and
193	193	(11) 10% tax on the remainder.
194	194	b. Married individuals filing jointly and surviving
195	195	spouse to the extent and in the mann er that a
196	196	surviving spouse is permitted to file a joint return
197	197	under the provisions of the Internal Revenue Code and
198	198	heads of households as defined in the Internal Revenue
199	199	Code deducting federal income tax:
200	200	(1) 1/2% tax on the first $2,000.00 or part there of,
201	201	(2) 1% tax on the next $3,000.00 or part thereof,
202	202	(3) 2% tax on the next $2,500.00 or part there of,
203	203	(4) 3% tax on the next $1,400.00 or part thereof,
204	204	(5) 4% tax on the next $1,500.00 or part thereof,
205	205	(6) 5% tax on the next $1,600.00 or part thereof,
206	206	(7) 6% tax on the next $1,250.00 or part thereof,
207	207	(8) 7% tax on the next $1,750.00 or part thereof,
208	208	(9) 8% tax on the next $3,000.00 or part thereof,
209	209	(10) 9% tax on the next $6,000.00 or part thereof, and
210	210	(11) 10% tax on the remainder.
211	211	B. Individuals. For all taxable years beginning on or after
212	212	January 1, 2008, and ending any tax year which begins afte r December
213	213	31, 2015, for which the determination required pursuant to Sections
214	214
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240	240	4 and 5 of this act is made by the State Board of Equalization, a
241	241	tax is hereby imposed upon the Oklahoma taxable income of every
242	242	resident or nonresident individual, which tax s hall be computed as
243	243	follows:
244	244	1. Single individuals and married individuals filing
245	245	separately:
246	246	(a) 1/2% tax on first $1,000.00 or part thereof,
247	247	(b) 1% tax on next $1,500.00 or part thereof,
248	248	(c) 2% tax on next $1,250.00 or part thereof,
249	249	(d) 3% tax on next $1,150.00 or part thereof,
250	250	(e) 4% tax on next $2,300.00 or part thereof,
251	251	(f) 5% tax on next $1,500.00 or part thereof,
252	252	(g) 5.50% tax on the remainder for the 2 008 tax year and
253	253	any subsequent tax year unless the rate prescribed by
254	254	subparagraph (h) of this paragraph is in effect, and
255	255	(h) 5.25% tax on the remainder for the 2009 and subsequent
256	256	tax years. The decrease in the top marginal
257	257	individual income tax rate o therwise authorized by
258	258	this subparagraph shall be contingent upon the
259	259	determination required to be made by the State Board
260	260	of Equalization pursuant to Section 2355.1A of this
261	261	title.
262	262	2. Married individuals filing jointly and surviving spouse to
263	263	the extent and in the manner that a surviving spouse is permitted to
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290	290	file a joint return under the provisions of the Internal Revenue
291	291	Code and heads of households as defined in the Internal Revenue
292	292	Code:
293	293	(a) 1/2% tax on first $2,000.00 or part thereof,
294	294	(b) 1% tax on next $3,000.00 or part thereof,
295	295	(c) 2% tax on next $2,500.00 or part thereof,
296	296	(d) 3% tax on next $2,300.00 or part thereof,
297	297	(e) 4% tax on next $2,400.00 or part thereof,
298	298	(f) 5% tax on next $2,800.00 or part thereof,
299	299	(g) 5.50% tax on the remainder for the 2 008 tax year and
300	300	any subsequent tax year unless the rate prescribed by
301	301	subparagraph (h) of this paragraph is in effect, and
302	302	(h) 5.25% tax on the remainder for the 2009 and subsequent
303	303	tax years. The decrease in the top marginal
304	304	individual income tax rate o therwise authorized by
305	305	this subparagraph shall be contingent upon the
306	306	determination required to be made by the State Board
307	307	of Equalization pursuant to Section 2355.1A of this
308	308	title.
309	309	C. Individuals. For all taxable years beginning on or after
310	310	January 1, 2024, and ending not later than December 31, 2025, a tax
311	311	is hereby imposed upon the Oklaho ma taxable income of every resident
312	312	or nonresident individual, which tax shall be computed as follows:
313	313
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339	339	1. Single individuals and married individuals filing
340	340	separately:
341	341	(a) 0.25% 0.00% tax on first $1,000.00 or part thereof,
342	342	(b) 0.75% 0.25% tax on next $1,500.00 or part thereof,
343	343	(c) 1.75% 1.25% tax on next $1,250.00 or part thereof,
344	344	(d) 2.75% 2.25% tax on next $1,150.00 or part thereof,
345	345	(e) 3.75% 3.25% tax on next $2,300.00 or part thereof,
346	346	(f) 4.75% 4.25% tax on the remainder.
347	347	2. Married individuals filing jointly and surviving spouse to
348	348	the extent and in the manner that a surviving spouse is permi tted to
349	349	file a joint return under the provisions of the Int ernal Revenue
350	350	Code and heads of households as defined in the Internal Revenue
351	351	Code:
352	352	(a) 0.25% 0.00% tax on first $2,000.00 or part thereof,
353	353	(b) 0.75% 0.25% tax on next $3,000.00 or part thereof,
354	354	(c) 1.75% 1.25% tax on next $2,500.00 or part thereof,
355	355	(d) 2.75% 2.25% tax on next $2,300.00 or part thereof,
356	356	(e) 3.75% 3.25% tax on next $4,600.00 or part thereof,
357	357	(f) 4.75% 4.25% tax on the remainder.
358	358	No deduction for federal income taxes paid shall be allowed to
359	359	any taxpayer to arrive at taxable income.
360	360	D. Individuals. For all taxable years beginning on or after
361	361	January 1, 2026, a tax is hereby imposed upon the Oklaho ma taxable
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388	388	income of every resident or nonresident individual, which tax shall
389	389	be computed as follows:
390	390	1. Single individuals and married individuals filing
391	391	separately:
392	392	(a) 0.25% tax on first $1,000.00 or part thereof,
393	393	(b) 0.75% tax on next $1,500.00 or part thereof,
394	394	(c) 1.75% tax on next $1,250.00 or part thereof,
395	395	(d) 2.75% tax on next $1,150.00 or part thereof,
396	396	(e) 3.75% tax on next $2,300.00 or part thereof,
397	397	(f) 4.75% tax on the remainder.
398	398	2. Married individuals filing jointly and surviving spouse to
399	399	the extent and in the manner that a surviving spouse is permitted to
400	400	file a joint return under the provisions of the Int ernal Revenue
401	401	Code and heads of households as defined in the Internal Revenue
402	402	Code:
403	403	(a) 0.25% tax on first $2,000.00 or part thereof,
404	404	(b) 0.75% tax on next $3,000.00 or part thereof,
405	405	(c) 1.75% tax on next $2,500.00 or part thereof,
406	406	(d) 2.75% tax on next $2,300.00 or part thereof,
407	407	(e) 3.75% tax on next $4,600.00 or part thereof,
408	408	(f) 4.75% tax on the remainder.
409	409	No deduction for federal income taxes paid shall be allowed to
410	410	any taxpayer to arrive at taxable income.
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437	437	E. Nonresident aliens. In lieu of the rates set forth in
438	438	subsection A above this section, there shall be imposed on
439	439	nonresident aliens, as defined in the Internal Revenue Code, a tax
440	440	of eight percent (8%) instead of thirty percent (30%) as used in the
441	441	Internal Revenue Code, with respect to the Oklahom a taxable income
442	442	of such nonresident aliens as determined under the provision of the
443	443	Oklahoma Income Tax Act.
444	444	Every payer of amounts covered by this subsection shall deduct
445	445	and withhold from such amounts paid each payee an amount equal to
446	446	eight percent (8%) thereof. Every payer required to deduct and
447	447	withhold taxes under this subsection shall for each quarterly period
448	448	on or before the last day of the month following the close of each
449	449	such quarterly period, pay over the amount so withheld as taxes to
450	450	the Tax Commission, and shall file a return with each such payment.
451	451	Such return shall be in such form as the Tax Commission shall
452	452	prescribe. Every payer required under this subsection to deduct and
453	453	withhold a tax from a payee shall, as to the total amounts pai d to
454	454	each payee during the calendar year, furnish to such payee, on or
455	455	before January 31, of the succeeding year, a written statement
456	456	showing the name of the payer, the name of the payee and the payee's
457	457	Social Security account number, if any, the total amo unt paid
458	458	subject to taxation, and the total amount deducted and withheld as
459	459	tax and such other information as the Tax Commission may require.
460	460	Any payer who fails to withhold or pay to the Tax Commission any
461	461
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487	487	sums herein required to be withheld or paid shal l be personally and
488	488	individually liable therefor to the State of Oklahoma.
489	489	E. F. Corporations. For all taxable years beginning after
490	490	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
491	491	income of every corporation doing business within this state or
492	492	deriving income from sources within this state in an amount equal to
493	493	four percent (4%) thereof.
494	494	There shall be no additional Oklahoma income tax imposed on
495	495	accumulated taxable income or on undistributed personal holding
496	496	company income as those terms are defined in the Internal Rev enue
497	497	Code.
498	498	F. G. Certain foreign corporatio ns. In lieu of the tax imposed
499	499	in the first paragraph of subsection D F of this section, for all
500	500	taxable years beginning after December 31, 2021, there shall be
501	501	imposed on foreign corporations, as defined in the Inte rnal Revenue
502	502	Code, a tax of four percent (4%) instead of thirty percent (30%) as
503	503	used in the Internal Revenue Code, where such income is received
504	504	from sources within Oklahoma, in accordance with the provisions of
505	505	the Internal Revenue Code and t he Oklahoma Income Tax Act.
506	506	Every payer of amounts covered by this subsection shall deduct
507	507	and withhold from such amounts paid each payee an amount equal to
508	508	four percent (4%) thereof. Every payer required to deduct and
509	509	withhold taxes under this subsection shall for e ach quarterly period
510	510	on or before the last d ay of the month following the close of each
511	511
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537	537	such quarterly period, pay over the amount so withheld as taxes to
538	538	the Tax Commission, and shall file a return with each such payment .
539	539	Such return shall be in such for m as the Tax Commission shall
540	540	prescribe. Every payer required under this subsection to deduct and
541	541	withhold a tax from a payee shall, as to the total amounts paid to
542	542	each payee during the calendar year, furnish to such pay ee, on or
543	543	before January 31, of th e succeeding year, a written statement
544	544	showing the name of the payer, the name of the payee and the payee's
545	545	Social Security account number, if any, the total amounts paid
546	546	subject to taxation, the total amount deducted and withheld as tax
547	547	and such other information as the Tax Commission may require . Any
548	548	payer who fails to withhold or pay to the Tax Commission any sums
549	549	herein required to be withheld or paid shall be personally and
550	550	individually liable therefor to the State of Oklahoma.
551	551	G. H. Fiduciaries. A tax is hereby imposed upon the Oklahoma
552	552	taxable income of every trust and estate at the same rates as are
553	553	provided in subsection B or, C or D of this section for single
554	554	individuals. Fiduciaries are not allowed a deduction for any
555	555	federal income tax paid.
556	556	H. I. Tax rate tables. For all taxable years beginni ng after
557	557	December 31, 1991, in lieu of the tax imposed by subsection A, B or,
558	558	C or D of this section, as applicable there is h ereby imposed for
559	559	each taxable year on the taxable income of every individual, whose
560	560	taxable income for such taxable year does not excee d the ceiling
561	561
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587	587	amount, a tax determined under tables, applicable to such taxable
588	588	year which shall be prescribed by the Ta x Commission and which shall
589	589	be in such form as it determine s appropriate. In the table so
590	590	prescribed, the amounts of the tax shall be computed on the basis of
591	591	the rates prescribed by subsection A, B or, C or D of this section.
592	592	For purposes of this subse ction, the term "ceiling amount" means,
593	593	with respect to any taxpay er, the amount determined by the T ax
594	594	Commission for the tax rate category in which such taxpayer falls.
595	595	SECTION 2. This act shall become effec tive January 1, 2024.
596	596
597	597	59-2-9790 MAH 12/13/23

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2952 Compare Versions