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28	28	STATE OF OKLAHOMA
29	29
30	30	2nd Session of the 59th Legislature (2024)
31	31
32	32	SENATE BILL 1250 By: Paxton
33	33
34	34
35	35
36	36
37	37
38	38	AS INTRODUCED
39	39
40	40	An Act relating to income tax; 68 O.S. 2021, Section
41	41	2355, as last amended by Section 1, Chapter 27, 1st
42	42	Extraordinary Session , O.S.L. 2023 (68 O.S. Supp.
43	43	2023, Section 2355), which relates to tax imposed and
44	44	classes of taxpayers; modifying income tax rate for
45	45	certain tax years; updating statutory references;
46	46	updating statutory language; and providing an
47	47	effective date.
48	48
49	49
50	50
51	51
52	52	BE IT ENACTED BY THE PEOPLE OF THE STATE 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 re ad
56	56	as follows:
57	57	Section 2355. A. Individuals. For all ta xable years beginning
58	58	after December 31, 1998, and before January 1, 2006, a tax is hereby
59	59	imposed upon the Oklahoma taxable income of every resi dent or
60	60	nonresident individual, which tax shall be co mputed at the option of
61	61	the taxpayer under one of the two following methods:
62	62	1. METHOD 1.
63	63
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89	89	a. Single individuals and married individuals filing
90	90	separately not deducting federal income tax:
91	91	(1) 1/2% tax on first $1,000.00 or part thereof,
92	92	(2) 1% tax on next $1,500.00 or part thereof,
93	93	(3) 2% tax on next $1,250.00 o r part thereof,
94	94	(4) 3% tax on next $1,150.00 or part thereof,
95	95	(5) 4% tax on next $1,300.00 or part thereof,
96	96	(6) 5% tax on next $1,500.00 or part thereof,
97	97	(7) 6% tax on next $2,300.00 or part thereof , and
98	98	(8) (a) for taxable years beginning after December
99	99	31, 1998, and before J anuary 1, 2002, 6.75%
100	100	tax on the remainder,
101	101	(b) for taxable years beginning on or after
102	102	January 1, 2002, and before January 1, 2004,
103	103	7% tax on the remainder, and
104	104	(c) for taxable years beginning on or after
105	105	January 1, 2004, 6.65% tax on the remainder.
106	106	b. Married individuals filing jointly and surviving
107	107	spouse to the extent and in the manner that a
108	108	surviving spouse is permitted t o file a joint return
109	109	under the provisions of the Int ernal Revenue Code and
110	110	heads of households as defined in the Internal Revenue
111	111	Code not deducting federal income tax:
112	112	(1) 1/2% tax on first $2,000.00 or part thereof,
113	113
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139	139	(2) 1% tax on next $3,000.00 or part thereof,
140	140	(3) 2% tax on next $2,500.00 or part thereof ,
141	141	(4) 3% tax on next $2,300.00 or part thereof,
142	142	(5) 4% tax on next $2,400.00 or part thereof,
143	143	(6) 5% tax on next $2,800.00 or part thereof,
144	144	(7) 6% tax on next $6,000.00 or part thereof, and
145	145	(8) (a) for taxable years beginning after December
146	146	31, 1998, and before January 1, 2002, 6.75%
147	147	tax on the remainder,
148	148	(b) for taxable years beginn ing on or after
149	149	January 1, 2002, and before January 1, 2004,
150	150	7% tax on the remainder, and
151	151	(c) for taxable years beginning on or after
152	152	January 1, 2004, 6.65% tax on the remainder .
153	153	2. METHOD 2.
154	154	a. Single individuals and married individuals filing
155	155	separately deducting federal income tax:
156	156	(1) 1/2% tax on first $1,000.00 or part thereof,
157	157	(2) 1% tax on next $1,500.00 or part thereof ,
158	158	(3) 2% tax on next $1,250.00 or part thereof,
159	159	(4) 3% tax on next $1,150.00 or part thereof,
160	160	(5) 4% tax on next $1,200.00 or part t hereof,
161	161	(6) 5% tax on next $1,400.00 or part thereof,
162	162	(7) 6% tax on next $1,500.00 or part thereof,
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189	189	(8) 7% tax on next $1,500.00 or part thereof,
190	190	(9) 8% tax on next $2,000.00 or part thereof,
191	191	(10) 9% tax on next $3,500.00 or part there of, and
192	192	(11) 10% tax on the remainder.
193	193	b. Married individuals filing jointly and surviving
194	194	spouse to the extent and in the manner that a
195	195	surviving spouse is permitted to file a joint return
196	196	under the provisions of the Internal Revenue Code and
197	197	heads of households as defined in the Internal Revenue
198	198	Code deducting federal income tax:
199	199	(1) 1/2% tax on the first $2,000.00 or part thereof,
200	200	(2) 1% tax on the next $3,000.00 or part thereof,
201	201	(3) 2% tax on the next $2,500.00 or part thereof,
202	202	(4) 3% tax on the next $1 ,400.00 or part thereof,
203	203	(5) 4% tax on the next $1,500.00 or part thereof,
204	204	(6) 5% tax on the next $1,600.00 or part thereof,
205	205	(7) 6% tax on the next $1,250.00 or part thereof,
206	206	(8) 7% tax on the next $1,750.00 or part thereof,
207	207	(9) 8% tax on the next $3,000.00 or part thereof,
208	208	(10) 9% tax on the next $6,000.00 or part thereof, and
209	209	(11) 10% tax on the remainder.
210	210	B. Individuals. For all taxable years beginning on or after
211	211	January 1, 2008, and ending any tax year which begins after December
212	212	31, 2015, for which the determination required pursuant to Sections
213	213
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239	239	4 2355.1F and 5 Section 2355.1G of this act title is made by the
240	240	State Board of Equalization, a tax is hereby imposed upon the
241	241	Oklahoma taxable income of every resident or nonresident individual,
242	242	which tax shall be computed as fo llows:
243	243	1. Single individuals and married individuals filing
244	244	separately:
245	245	(a) 1/2% tax on first $1,000.00 or part thereof,
246	246	(b) 1% tax on next $1,500.00 or part thereof,
247	247	(c) 2% tax on next $1,250.00 or part thereof,
248	248	(d) 3% tax on next $1,150.00 or part thereof,
249	249	(e) 4% tax on next $2,300.00 or part thereof,
250	250	(f) 5% tax on next $1,500.0 0 or part thereof,
251	251	(g) 5.50% tax on the remainder for the 2008 tax year and
252	252	any subsequent tax year unless the rate prescribed by
253	253	subparagraph (h) of this paragraph is in effect, and
254	254	(h) 5.25% tax on the remainder for the 2009 and subsequent
255	255	tax years. The decrease in the top marginal
256	256	individual income tax rate otherwise authorized by
257	257	this subparagraph shall be contingent upon the
258	258	determination required to be made by the State Board
259	259	of Equalization pursuant to Section 2355.1A of this
260	260	title.
261	261	2. Married individuals filing jointly and surviving spouse to
262	262	the extent and in the manner that a surviving spouse is permitted to
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289	289	file a joint return under the provisions of the Internal Reven ue
290	290	Code and heads of households as defined in the Internal Revenue
291	291	Code:
292	292	(a) 1/2% tax on first $2,000.00 or part thereof,
293	293	(b) 1% tax on next $3,000.00 or part thereof,
294	294	(c) 2% tax on next $2,500.00 or part thereof,
295	295	(d) 3% tax on next $2,300.00 or part thereof,
296	296	(e) 4% tax on next $2,400.00 or part thereof,
297	297	(f) 5% tax on next $2,800.0 0 or part thereof,
298	298	(g) 5.50% tax on the remainder for the 2008 tax year and
299	299	any subsequent tax year unless the rate prescribed by
300	300	subparagraph (h) of this paragraph is in effect, and
301	301	(h) 5.25% tax on the remainder for the 2009 and subsequent
302	302	tax years. The decrease in the top marginal
303	303	individual income tax rate otherwise authorized by
304	304	this subparagraph shall be contingent upon the
305	305	determination required to be made by the State Board
306	306	of Equalization pursuant to Section 2355.1A of this
307	307	title.
308	308	C. Individuals. For all taxable years beginning on or after
309	309	January 1, 2024, a tax is hereby imposed upon the Okl ahoma taxable
310	310	income of every resident or nonresident individual, which tax sha ll
311	311	be computed as follows:
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338	338	1. Single individuals and married individuals filing
339	339	separately:
340	340	(a) 0.25% 0.125% tax on first $1,000.00 or part thereof,
341	341	(b) 0.75% 0.625% tax on next $1,500.00 or part thereof,
342	342	(c) 1.75% 1.625% tax on next $1,250.00 or part thereof,
343	343	(d) 2.75% 2.625% tax on next $1,150.00 or part thereof,
344	344	(e) 3.75% 3.625% tax on next $2,300.00 or part thereof,
345	345	and
346	346	(f) 4.75% 4.625% tax on the remainder.
347	347	2. Married individuals filing jointly and surviving spouse to
348	348	the extent and in the manner tha t a surviving spouse is permitted to
349	349	file a joint return under the provisions of the Internal Revenue
350	350	Code and heads of households as defined in the Internal Revenue
351	351	Code:
352	352	(a) 0.25% 0.125% tax on first $2,000.00 or part thereof,
353	353	(b) 0.75% 0.625% tax on next $3,000.00 or part thereof,
354	354	(c) 1.75% 1.625% tax on next $2,500.00 or part thereof,
355	355	(d) 2.75% 2.625% tax on next $2,300.00 or part thereof,
356	356	(e) 3.75% 3.625% tax on next $4,600.00 or part thereof,
357	357	and
358	358	(f) 4.75% 4.625% tax on the remainder.
359	359	No deduction for federal income taxes paid shall be allowed to
360	360	any taxpayer to arrive at taxable income.
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387	387	D. Nonresident aliens. In lieu of the rates set forth in
388	388	subsection A above, there sha ll be imposed on nonresident aliens, as
389	389	defined in the Internal Revenue Code, a tax of eight percent (8%)
390	390	instead of thirty percent (30%) as used in the Internal Revenue
391	391	Code, with respect to the Oklahoma taxable income of such
392	392	nonresident aliens as determ ined under the provision of t he Oklahoma
393	393	Income Tax Act.
394	394	Every payer of amounts covered by this subsection shall deduct
395	395	and withhold from such amounts paid each payee an amount equal to
396	396	eight percent (8%) thereof. Every payer required to deduct and
397	397	withhold taxes under this subsection shall for each quarterly period
398	398	on or before the last day of the month following the close of each
399	399	such quarterly period, pay over the amount so withheld as taxes to
400	400	the Oklahoma Tax Commission, and shall file a return with e ach such
401	401	payment. Such return shall be in such form as t he Tax Commission
402	402	shall prescribe. Every payer required under this subsection to
403	403	deduct and withhold a tax from a payee shall, as to the total
404	404	amounts paid to each payee during the calend ar year, furnish to such
405	405	payee, on or before January 31, of the succeeding year, a written
406	406	statement showing the name of the payer, the name of the payee and
407	407	the payee’s Social Security account number, if any, the total amount
408	408	paid subject to taxation, and the total amount deducted and withheld
409	409	as tax and such other inform ation as the Tax Commi ssion may require.
410	410	Any payer who fails to withhold or pay to the Tax Commission any
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437	437	sums herein required to be withheld or paid shall be personally and
438	438	individually liable therefor to the State of Oklahoma this state.
439	439	E. Corporations. For all taxable years beginning after
440	440	December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable
441	441	income of every corporation doing busi ness within this state or
442	442	deriving income from sou rces within this state in an amount equal to
443	443	four percent (4%) thereof.
444	444	There shall be no additional Oklahoma income tax imposed on
445	445	accumulated taxable income or on undistributed personal holding
446	446	company income as those terms are defined in the Internal Re venue
447	447	Code.
448	448	F. Certain foreign corporations. In lieu of the tax imposed in
449	449	the first paragraph of subsection D of this section, for all taxable
450	450	years beginning after December 31, 2021, there shall be imposed on
451	451	foreign corporations, as defined in the Int ernal Revenue Code, a tax
452	452	of four percent (4%) instead of thirty percent (30%) as used in the
453	453	Internal Revenue Code, where such income is received from sources
454	454	within Oklahoma this state, in accordance with the provisions of the
455	455	Internal Revenue Code and t he Oklahoma Income Tax Act.
456	456	Every payer of amounts covered by this subsection shall deduct
457	457	and withhold from such amounts paid each payee an amount equal to
458	458	four percent (4%) thereof. Every payer requ ired to deduct and
459	459	withhold taxes under this subsection shall for each quarterly period
460	460	on or before the last day of the month followi ng the close of each
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487	487	such quarterly period, pay over the amount so withheld as taxes to
488	488	the Tax Commission, and shall file a return with each such payment.
489	489	Such return shall be in such form as the Tax Com mission shall
490	490	prescribe. Every payer required under this subsection to deduct and
491	491	withhold a tax from a payee shall, as to the total amounts paid to
492	492	each payee during the c alendar year, furnish to such payee, on or
493	493	before January 31, of the succeeding year, a written statement
494	494	showing the name of the paye r, the name of the payee and the payee ’s
495	495	Social Security account number, if any, the total amounts paid
496	496	subject to taxation, the total amount deducted and withheld as tax
497	497	and such other information as the Tax Commission may require. Any
498	498	payer who fails to withhold or pay to the Tax Commis sion any sums
499	499	herein required to be withheld or paid shall be personally and
500	500	individually liable therefor to the State of Oklahoma .
501	501	G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
502	502	taxable income of every trust and estate at the same rates as are
503	503	provided in subsection B or C of this section for single
504	504	individuals. Fiduciaries are not allowed a deduction for any
505	505	federal income tax pai d.
506	506	H. Tax rate tables. For all taxable years beginning after
507	507	December 31, 1991, in lieu of the tax imposed by subsection A, B or
508	508	C of this section, as applicable there is hereby imposed for each
509	509	taxable year on the taxabl e income of every individual, who se
510	510	taxable income for such taxable year does not exceed the ceiling
511	511
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537	537	amount, a tax determined under tables, applicable to such taxable
538	538	year which shall be prescribed by the Tax Commission and which shall
539	539	be in such form as it determines appropriate. In the table so
540	540	prescribed, the amounts of the tax shall be computed on the basis of
541	541	the rates prescribed by subsection A, B or C of this section. For
542	542	purposes of this subsection, the term “ceiling amount” means, with
543	543	respect to any taxpayer, the amount determi ned by the Tax Commission
544	544	for the tax rate category in which such taxpayer fall s.
545	545	SECTION 2. This act shall become effective November 1, 2024.
546	546
547	547	59-2-2513 QD 12/7/2023 3:34:45 PM

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1250 Compare Versions