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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 1263 By: Daniels
33	33
34	34
35	35
36	36
37	37
38	38	AS INTRODUCED
39	39
40	40	An Act relating to income tax; amending 68 O.S. 2021,
41	41	Section 2355, as amended by Section 1, Chapter 27,
42	42	1st Extraordinary Session, O.S .L. 2023 (68 O.S. Supp.
43	43	2023, Section 2355), which relates to tax imposed on
44	44	classes of taxpayers; modifying income tax rate for
45	45	certain tax years; updating statutory re ferences;
46	46	updating statutory language; providing an effective
47	47	date; and declaring an em ergency.
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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	amended by Section 1, Chapter 27, 1st Extraordinary Session, O.S.L.
55	55	2023 (68 O.S. Supp. 2023, Section 2355), is amended to read as
56	56	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 computed at the option of
61	61	the taxpayer under one of the tw o following methods:
62	62	1. METHOD 1.
63	63
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89	89	a. Single individuals and married ind ividuals filing
90	90	separately not deducting federal income tax:
91	91	(1) 1/2% tax on first $1,000.00 or part ther eof,
92	92	(2) 1% tax on next $1,500.00 or p art 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 January 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 remaind er, and
104	104	(c) for taxable years beginnin g 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 Internal 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 D ecember
146	146	31, 1998, and before January 1, 2002, 6.75%
147	147	tax on the remainder,
148	148	(b) for taxable years beginning on or after
149	149	January 1, 2002, and before Janua ry 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, 6.6 5% 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 thereof,
161	161	(6) 5% tax on next $1,400.00 or part ther eof,
162	162	(7) 6% tax on next $1,500.00 or part thereof,
163	163
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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 inco me 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 the reof,
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 follows:
243	243	1. Single individuals and married individ uals 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 t hereof,
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 p aragraph is in effect, and
254	254	(h) 5.25% tax on the remainder for the 2009 a nd subsequent
255	255	tax years. The decrease in the top marginal
256	256	individual income tax rate otherwise authorize d 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 23 55.1A 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
263	263
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289	289	file a joint return under the provision s of the Internal Revenue
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 t hereof,
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 p aragraph is in effect, and
301	301	(h) 5.25% tax on the remainder for the 2009 a nd subsequent
302	302	tax years. The decrease in the top marginal
303	303	individual income tax rate otherwise authorize d 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 23 55.1A 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 Oklahoma taxable
310	310	income of every resident or nonresident in dividual, which tax shall
311	311	be computed as follows:
312	312
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338	338	1. Single individuals and married individuals filing
339	339	separately:
340	340	(a) 0.25% 0.0% tax on first $1,000.00 or part thereof,
341	341	(b) 0.75% 0.5% tax on next $1,500.00 or part thereof,
342	342	(c) 1.75% 1.5% tax on next $1,250.00 or part there of,
343	343	(d) 2.75% 2.5% tax on next $1,150.00 or p art thereof,
344	344	(e) 3.75% 3.5% tax on next $2,300.00 or part thereof, and
345	345	(f) 4.75% 4.5% tax on the remainder.
346	346	2. Married individuals filing jointly and surviving spouse to
347	347	the extent and in the manner that a surviving spouse is permitted to
348	348	file a joint return unde r the provisions of the Internal Revenue
349	349	Code and heads of households as defined in the Internal Revenue
350	350	Code:
351	351	(a) 0.25% 0.0% tax on first $2,000.00 or part thereof,
352	352	(b) 0.75% 0.5% tax on next $3,000.00 or part thereof,
353	353	(c) 1.75% 1.5% tax on next $2,500.00 or part thereof,
354	354	(d) 2.75% 2.5% tax on next $2,300.00 or part thereof,
355	355	(e) 3.75% 3.5% tax on next $4,600.00 or part thereof, and
356	356	(f) 4.75% 4.5% tax on the remainder.
357	357	No deduction for federal income taxes paid shall be allowed to
358	358	any taxpayer to arrive at taxable income.
359	359	D. Nonresident aliens. In lieu of the rates set forth in
360	360	subsection A above, there shal l be imposed on nonresident aliens, as
361	361	defined in the Internal Revenue Code, a tax of eight percen t (8%)
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388	388	instead of thirty percent (30%) as used in the Internal Revenue
389	389	Code, with respect to the Oklahoma taxable income of such
390	390	nonresident aliens as determi ned under the provision o f the Oklahoma
391	391	Income Tax Act.
392	392	Every payer of amounts covered by this subsection shall deduct
393	393	and withhold from such amounts p aid each payee an amount equal to
394	394	eight percent (8%) thereof. Every payer required to deduct and
395	395	withhold taxes under this subsection shall for each quarterly period
396	396	on or before the last day of the mon th following the close of each
397	397	such quarterly period, pay over the amount so withheld as taxes to
398	398	the Oklahoma Tax Commission, and shall file a return with ea ch such
399	399	payment. Such return shall be in such form as t he Tax Commission
400	400	shall prescribe. Every payer required under this subsection to
401	401	deduct and withhold a tax from a payee shall, as to the total
402	402	amounts paid to each payee during the calend ar year, furnish to such
403	403	payee, on or before January 31 , of the succeeding year, a written
404	404	statement showing the name of the payer, the name of the payee and
405	405	the payee’s Social Security account number, if any, the total amount
406	406	paid subject to taxation, and the total a mount deducted and withheld
407	407	as tax and such other inform ation as the Tax Commis sion may require.
408	408	Any payer who fails to withhold or pay to the Tax Commis sion any
409	409	sums herein required to be withheld or paid shall be personally and
410	410	individually liable therefor to the State of Oklahoma this state.
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437	437	E. Corporations. For all taxable years beginning after
438	438	December 31, 2021, a tax is hereby imposed upon the Oklaho ma taxable
439	439	income of every corporation doing busi ness within this state or
440	440	deriving income from sour ces within this state in an amount equal to
441	441	four percent (4%) thereof.
442	442	There shall be no additional Oklahoma income tax imposed on
443	443	accumulated taxable inc ome or on undistributed personal holding
444	444	company income as those terms are defined in the Internal Rev enue
445	445	Code.
446	446	F. Certain foreign corporations. In lieu of the tax imposed in
447	447	the first paragraph of subsection D of this section, for all taxable
448	448	years beginning after December 31, 2021, there shall be imposed on
449	449	foreign corporations, as defined in the Inte rnal Revenue Code, a tax
450	450	of four percent (4%) instead of thirty percent (30%) a s used in the
451	451	Internal Revenue Code, where such income is received from sou rces
452	452	within Oklahoma this state, in accordance with the provisions of the
453	453	Internal Revenue Code and th e Oklahoma Income Tax Act.
454	454	Every payer of amounts covered by this subsection shall deduct
455	455	and withhold from such amounts paid each payee an amount equal to
456	456	four percent (4%) thereof. Every payer requ ired to deduct and
457	457	withhold taxes under this subsection shall for each quarterly period
458	458	on or before the last day of the month followin g the close of each
459	459	such quarterly period, pay over the amount so withheld as taxes to
460	460	the Tax Commission, and shall file a return with each such payment.
461	461
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487	487	Such return shall be in such form as the Tax Com mission shall
488	488	prescribe. Every payer required under this subsection to deduct and
489	489	withhold a tax from a payee shall, as to the t otal amounts paid to
490	490	each payee during the c alendar year, furnish to such payee, on or
491	491	before January 31, of the succeeding year, a written statement
492	492	showing the name of the payer , the name of the payee and the payee ’s
493	493	Social Security account number, if any, the total amounts paid
494	494	subject to taxation, the total amount deducted and withheld as tax
495	495	and such other information as the Tax Commission may require. Any
496	496	payer who fails to withhold or pay to the Tax Commission any sums
497	497	herein required to be withheld or paid shall be personally and
498	498	individually liable therefor to the State of Oklahoma .
499	499	G. Fiduciaries. A tax is hereby imposed upon the Oklahoma
500	500	taxable income of every trust a nd estate at the same rates as are
501	501	provided in subsection B or C of this section for single
502	502	individuals. Fiduciaries are not allowed a deduction for any
503	503	federal income tax paid .
504	504	H. Tax rate tables. For all taxable years beginning after
505	505	December 31, 1991, in lieu of the ta x imposed by subsection A, B or
506	506	C of this section, as applicable there is hereby imposed for each
507	507	taxable year on the taxabl e income of every individual, whos e
508	508	taxable income for such taxable year does not exceed the ceiling
509	509	amount, a tax determined under tables, applicable to such taxable
510	510	year which shall be p rescribed by the Tax Commission and which shall
511	511
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537	537	be in such form as it determines appropriate. In the table so
538	538	prescribed, the amounts of the tax shall be computed on the basis of
539	539	the rates prescribed by subsection A, B or C of this section. For
540	540	purposes of this subsection, the term “ceiling amount” means, with
541	541	respect to any taxpayer, the amount determin ed by the Tax Commission
542	542	for the tax rate category in which such taxpayer falls .
543	543	SECTION 2. This act shall become effective July 1, 2024.
544	544	SECTION 3. It being immediately necessary for the preservation
545	545	of the public peace, health or safety, an emergency is hereby
546	546	declared to exist, by reason whereof thi s act shall take effect and
547	547	be in full force from and after its passage and approval.
548	548
549	549	59-2-2812 QD 12/8/2023 12:02:19 PM

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1263 Compare Versions