| 55 | 44 | | |
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| 56 | 45 | | |
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| 57 | 46 | | |
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| 58 | 47 | | |
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| 59 | 48 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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| 60 | 49 | | SECTION 1. AMENDATORY 68 O.S. 2021, Section 2355, as |
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| 61 | 50 | | last amended by Section 1, Chapter 27, 1st Extraordinary Session, |
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| 62 | 51 | | O.S.L. 2023 (68 O.S. Supp. 2024, Section 2355), is amended to read |
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| 63 | 52 | | as follows: |
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| 64 | 53 | | Section 2355. A. Individuals. For all taxable years beginning |
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| 65 | 54 | | after December 31, 1998, and before January 1, 2006, a tax is hereby |
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| 66 | 55 | | imposed upon the Oklahoma taxable income of every resident or |
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| 99 | 87 | | (1) 1/2% tax on first $1,000.00 or part thereof, |
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| 100 | 88 | | (2) 1% tax on next $1,500.0 0 or part thereof, |
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| 101 | 89 | | (3) 2% tax on next $1,250.00 or part thereof, |
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| 102 | 90 | | (4) 3% tax on next $1,150.00 or part thereof, |
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| 103 | 91 | | (5) 4% tax on next $1,300.00 or part thereof, |
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| 104 | 92 | | (6) 5% tax on next $1,500.00 or part thereof, |
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| 105 | 93 | | (7) 6% tax on next $2,300.00 or part thereof, and |
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| 106 | 94 | | (8) (a) for taxable years beginning after December |
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| 107 | 95 | | 31, 1998, and before January 1, 2002, 6.75% |
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| 108 | 96 | | tax on the remainder, |
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| 109 | 97 | | (b) for taxable years beginning on or after |
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| 110 | 98 | | January 1, 2002, and before January 1, 2004, |
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| 111 | 99 | | 7% tax on the remainder, and |
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| 112 | 100 | | (c) for taxable years be ginning on or after |
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| 113 | 101 | | January 1, 2004, 6.65% tax on the remainder. |
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| 114 | 102 | | b. Married individuals filing jointly and surviving |
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| 115 | 103 | | spouse to the extent and in the manner that a |
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| 116 | 104 | | surviving spouse is permitted to file a joint return |
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| 117 | 105 | | under the provisions of the Internal Rev enue Code and |
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| 150 | 137 | | (4) 3% tax on next $2,300.00 or part thereof, |
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| 151 | 138 | | (5) 4% tax on next $2,400.00 or part thereof, |
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| 152 | 139 | | (6) 5% tax on next $2,800.00 or part thereof, |
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| 153 | 140 | | (7) 6% tax on next $6,000.00 or part thereof, and |
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| 154 | 141 | | (8) (a) for taxable years beginning after December |
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| 155 | 142 | | 31, 1998, and before Jan uary 1, 2002, 6.75% |
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| 156 | 143 | | tax on the remainder, |
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| 157 | 144 | | (b) for taxable years beginning on or after |
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| 158 | 145 | | January 1, 2002, and before January 1, 2004, |
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| 159 | 146 | | 7% tax on the remainder, and |
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| 160 | 147 | | (c) for taxable years beginning on or after |
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| 161 | 148 | | January 1, 2004, 6.65% tax on the remainder. |
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| 162 | 149 | | 2. METHOD 2. |
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| 163 | 150 | | a. Single individuals and married individuals filing |
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| 164 | 151 | | separately deducting federal income tax: |
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| 165 | 152 | | (1) 1/2% tax on first $1,000.00 or part thereof, |
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| 166 | 153 | | (2) 1% tax on next $1,500.00 or part thereof, |
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| 167 | 154 | | (3) 2% tax on next $1,250.00 or part thereof, |
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| 168 | 155 | | (4) 3% tax on next $1,150.00 or part thereof, |
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| 196 | 156 | | (5) 4% tax on next $1,200.00 or part thereof, |
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| 197 | 157 | | (6) 5% tax on next $1,400.00 or part thereof, |
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| 198 | 158 | | (7) 6% tax on next $1,500.00 or part thereof, |
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| 199 | 159 | | (8) 7% tax on next $1,500.00 or part thereof, |
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| 200 | 160 | | (9) 8% tax on next $2,000.00 or part the reof, |
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| 201 | 187 | | (10) 9% tax on next $3,500.00 or part thereof, and |
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| 202 | 188 | | (11) 10% tax on the remainder. |
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| 203 | 189 | | b. Married individuals filing jointly and surviving |
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| 204 | 190 | | spouse to the extent and in the manner that a |
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| 205 | 191 | | surviving spouse is permitted to file a joint return |
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| 206 | 192 | | under the provisions of the Internal Revenue Code and |
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| 207 | 193 | | heads of households as defined in the Internal Revenue |
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| 208 | 194 | | Code deducting federal income tax: |
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| 209 | 195 | | (1) 1/2% tax on the first $2,000.00 or part thereof, |
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| 210 | 196 | | (2) 1% tax on the next $3,000.00 or part thereof, |
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| 211 | 197 | | (3) 2% tax on the next $2, 500.00 or part thereof, |
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| 212 | 198 | | (4) 3% tax on the next $1,400.00 or part thereof, |
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| 213 | 199 | | (5) 4% tax on the next $1,500.00 or part thereof, |
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| 214 | 200 | | (6) 5% tax on the next $1,600.00 or part thereof, |
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| 215 | 201 | | (7) 6% tax on the next $1,250.00 or part thereof, |
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| 216 | 202 | | (8) 7% tax on the next $1,750.00 or part thereof, |
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| 217 | 203 | | (9) 8% tax on the next $3,000.00 or part thereof, |
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| 218 | 204 | | (10) 9% tax on the next $6,000.00 or part thereof, and |
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| 219 | 205 | | (11) 10% tax on the remainder. |
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| 252 | 237 | | resident or nonresident indiv idual, which tax shall be computed as |
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| 253 | 238 | | follows: |
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| 254 | 239 | | 1. Single individuals and married individuals filing |
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| 255 | 240 | | separately: |
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| 256 | 241 | | (a) 1/2% tax on first $1,000.00 or part thereof, |
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| 257 | 242 | | (b) 1% tax on next $1,500.00 or part thereof, |
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| 258 | 243 | | (c) 2% tax on next $1,250.00 or part thereof, |
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| 259 | 244 | | (d) 3% tax on next $1,150.00 or part thereof, |
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| 260 | 245 | | (e) 4% tax on next $2,300.00 or part thereof, |
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| 261 | 246 | | (f) 5% tax on next $1,500.00 or part thereof, |
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| 262 | 247 | | (g) 5.50% tax on the remainder for the 2008 tax year and |
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| 263 | 248 | | any subsequent tax year unless the rate prescribed by |
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| 264 | 249 | | subparagraph (h) of this paragraph is in effect, and |
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| 265 | 250 | | (h) 5.25% tax on the remainder for the 2009 and subsequent |
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| 266 | 251 | | tax years. The decrease in the top marginal |
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| 267 | 252 | | individual income tax rate otherwise authorized by |
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| 268 | 253 | | this subparagraph shall be contingent upon the |
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| 269 | 254 | | determination required to be made by the State Board |
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| 302 | 286 | | Code and heads of households as defined in the Internal Revenue |
|---|
| 303 | 287 | | Code: |
|---|
| 304 | 288 | | (a) 1/2% tax on first $2,000.00 or part thereof, |
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| 305 | 289 | | (b) 1% tax on next $3,000.00 or part thereof, |
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| 306 | 290 | | (c) 2% tax on next $2,500.00 or part thereof, |
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| 307 | 291 | | (d) 3% tax on next $2,300.00 or part thereof, |
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| 308 | 292 | | (e) 4% tax on next $2,400.00 or part thereof, |
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| 309 | 293 | | (f) 5% tax on next $2,800.00 or part thereof, |
|---|
| 310 | 294 | | (g) 5.50% tax on the remainder for the 2008 tax year and |
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| 311 | 295 | | any subsequent tax year unless the rate prescribed by |
|---|
| 312 | 296 | | subparagraph (h) of this paragraph is in effect, and |
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| 313 | 297 | | (h) 5.25% tax on the remainder for the 2009 and subsequent |
|---|
| 314 | 298 | | tax years. The decrease in the top marginal |
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| 315 | 299 | | individual income tax rate otherwise authorized by |
|---|
| 316 | 300 | | this subparagraph shall be contingent upon the |
|---|
| 317 | 301 | | determination required to be made by the State Board |
|---|
| 318 | 302 | | of Equalization pursuant to Section 2355.1A of this |
|---|
| 319 | 303 | | title. |
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| 353 | 336 | | (a) 0.25% tax on first $1,000.00 or part thereof, |
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| 354 | 337 | | (b) 0.75% tax on next $1,500.00 or part thereof, |
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| 355 | 338 | | (c) 1.75% tax on next $1,250.00 or part thereof, |
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| 356 | 339 | | (d) 2.75% tax on next $1,150.00 or part thereof, |
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| 357 | 340 | | (e) 3.75% tax on next $2,300.00 or part thereof, |
|---|
| 358 | 341 | | (f) 4.75% tax on the remainder all Oklahoma taxable |
|---|
| 359 | 342 | | income. |
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| 360 | 343 | | 2. Married individuals filing jointly and surviving spouse to |
|---|
| 361 | 344 | | the extent and in the manner that a surviving spouse is permitted to |
|---|
| 362 | 345 | | file a joint return under the provisions of the Internal Revenue |
|---|
| 363 | 346 | | Code and heads of households as defined in the Internal Revenue |
|---|
| 364 | 347 | | Code: |
|---|
| 365 | 348 | | (a) 0.25% tax on first $2,000.00 or part thereof, |
|---|
| 366 | 349 | | (b) 0.75% tax on next $3,000.00 or part thereof, |
|---|
| 367 | 350 | | (c) 1.75% tax on next $2,500.00 or part thereof, |
|---|
| 368 | 351 | | (d) 2.75% tax on next $2,300.00 or part thereof, |
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| 369 | 352 | | (e) 3.75% tax on next $4,600.00 or part thereof, |
|---|
| 404 | 386 | | instead of thirty percent (30%) as used in the Internal Revenue |
|---|
| 405 | 387 | | Code, with respect to the Oklahoma taxable income of such |
|---|
| 406 | 388 | | nonresident aliens as determined under the provision of the Oklahoma |
|---|
| 407 | 389 | | Income Tax Act. |
|---|
| 408 | 390 | | Every payer of amounts covered by this subsection shall deduct |
|---|
| 409 | 391 | | and withhold from such amounts paid each payee an amount equal to |
|---|
| 410 | 392 | | eight percent (8%) thereof. Every payer required to deduct and |
|---|
| 411 | 393 | | withhold taxes under this subsection shall for each quarterly period |
|---|
| 412 | 394 | | on or before the last day of the month following the close of each |
|---|
| 413 | 395 | | such quarterly period, pay over the amount so withheld as taxes to |
|---|
| 414 | 396 | | the Tax Commission, and shall file a return with each such payment. |
|---|
| 415 | 397 | | Such return shall be in such form as the Tax Commission shal l |
|---|
| 416 | 398 | | prescribe. Every payer required under this subsection to deduct and |
|---|
| 417 | 399 | | withhold a tax from a payee shall, as to the total amounts paid to |
|---|
| 418 | 400 | | each payee during the calendar year, furnish to such payee, on or |
|---|
| 419 | 401 | | before January 31, of the succeeding year, a written statement |
|---|
| 420 | 402 | | showing the name of the payer, the name of the payee and the payee 's |
|---|
| 454 | 435 | | E. Corporations. For all taxable years beginni ng after |
|---|
| 455 | 436 | | December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable |
|---|
| 456 | 437 | | income of every corporation doing business within this state or |
|---|
| 457 | 438 | | deriving income from sources within this state in an amount equal to |
|---|
| 458 | 439 | | four percent (4%) thereof. |
|---|
| 459 | 440 | | There shall be no additional Oklahoma income tax imposed on |
|---|
| 460 | 441 | | accumulated taxable income or on undistributed personal holding |
|---|
| 461 | 442 | | company income as those terms are defined in the Internal Revenue |
|---|
| 462 | 443 | | Code. |
|---|
| 463 | 444 | | F. Certain foreign corporations. In lieu of the tax imposed in |
|---|
| 464 | 445 | | the first paragraph of subsection D of by this section, for all |
|---|
| 465 | 446 | | taxable years beginning after December 31, 2021, there shall be |
|---|
| 466 | 447 | | imposed on foreign corporations, as defined in the Internal Revenue |
|---|
| 467 | 448 | | Code, a tax of four percent (4%) instead of thirty percent (30%) as |
|---|
| 468 | 449 | | used in the Internal Revenue Code, where such income is received |
|---|
| 469 | 450 | | from sources within Oklahoma, in accordance with the provisions of |
|---|
| 470 | 451 | | the Internal Revenue Code and the Oklahoma Income Tax Act. |
|---|
| 498 | 452 | | Every payer of amounts covered by this subsection shall deduct |
|---|
| 499 | 453 | | and withhold from such amounts paid each payee an amount equal to |
|---|
| 500 | 454 | | four percent (4%) thereof. Every payer required to deduct and |
|---|
| 501 | 455 | | withhold taxes under this subsection shall for each quarterly period |
|---|
| 502 | 456 | | on or before the last day of the month following the close of eac h |
|---|
| 503 | 457 | | such quarterly period, pay over the amount so withheld as taxes to |
|---|
| 504 | 458 | | the Tax Commission, and shall file a return with each such payment. |
|---|
| 505 | 485 | | Such return shall be in such form as the Tax Commission shall |
|---|
| 506 | 486 | | prescribe. Every payer required under this subsection t o deduct and |
|---|
| 507 | 487 | | withhold a tax from a payee shall, as to the total amounts paid to |
|---|
| 508 | 488 | | each payee during the calendar year, furnish to such payee, on or |
|---|
| 509 | 489 | | before January 31, of the succeeding year, a written statement |
|---|
| 510 | 490 | | showing the name of the payer, the name of the payee and the payee's |
|---|
| 511 | 491 | | Social Security account number, if any, the total amounts paid |
|---|
| 512 | 492 | | subject to taxation, the total amount deducted and withheld as tax |
|---|
| 513 | 493 | | and such other information as the Tax Commission may require. Any |
|---|
| 514 | 494 | | payer who fails to withhold or pay to the Tax Commission any sums |
|---|
| 515 | 495 | | herein required to be withheld or paid shall be personally and |
|---|
| 516 | 496 | | individually liable therefor to the State of Oklahoma. |
|---|
| 517 | 497 | | G. Fiduciaries. A tax is hereby imposed upon the Oklahoma |
|---|
| 518 | 498 | | taxable income of every trust and estate at the s ame rates as are |
|---|
| 519 | 499 | | provided in subsection B or C of this section for single |
|---|
| 520 | 500 | | individuals. Fiduciaries are not allowed a deduction for any |
|---|
| 521 | 501 | | federal income tax paid. |
|---|
| 549 | 502 | | H. Tax rate tables. For all taxable years beginning after |
|---|
| 550 | 503 | | December 31, 1991, in lieu of the t ax imposed by subsection A, B or |
|---|
| 551 | 504 | | C of this section, as applicable there is hereby imposed for each |
|---|
| 552 | 505 | | taxable year on the taxable income of every individual, whose |
|---|
| 553 | 506 | | taxable income for such taxable year does not exceed the ceiling |
|---|
| 554 | 507 | | amount, a tax determined under tables, applicable to such taxable |
|---|
| 555 | 508 | | year which shall be prescribed by the Tax Commission and which shall |
|---|
| 556 | 535 | | be in such form as it determines appropriate. In the table so |
|---|
| 557 | 536 | | prescribed, the amounts of the tax shall be computed on the basis of |
|---|
| 558 | 537 | | the rates prescribed by subsection A, B or C of this section. For |
|---|
| 559 | 538 | | purposes of this subsection, the term "ceiling amount" means, with |
|---|
| 560 | 539 | | respect to any taxpayer, the amount determined by the Tax Commission |
|---|
| 561 | 540 | | for the tax rate category in which such taxpayer falls. |
|---|
| 562 | 541 | | SECTION 2. AMENDATORY 68 O.S. 2021, Section 2358, as |
|---|
| 563 | 542 | | last amended by Section 2, Chapter 277, O.S.L. 2024 (68 O.S. Supp. |
|---|
| 564 | 543 | | 2024, Section 2358), is amended to read as follows: |
|---|
| 565 | 544 | | Section 2358. For all tax years beginning after December 31, |
|---|
| 566 | 545 | | 1981, taxable income and adjusted gross income shall be adjusted to |
|---|
| 567 | 546 | | arrive at Oklahoma taxable income and Oklahoma adjusted gross income |
|---|
| 568 | 547 | | as required by this section. |
|---|
| 569 | 548 | | A. The taxable income of any taxpayer shall be adjusted to |
|---|
| 570 | 549 | | arrive at Oklahoma taxable income for corp orations and Oklahoma |
|---|
| 571 | 550 | | adjusted gross income for individuals, as follows: |
|---|
| 606 | 584 | | Federal Constitution, the State Constit ution, federal laws or laws |
|---|
| 607 | 585 | | of Oklahoma. |
|---|
| 608 | 586 | | 3. The amount of any federal net operating loss deduction shall |
|---|
| 609 | 587 | | be adjusted as follows: |
|---|
| 610 | 588 | | a. For carryovers and carrybacks to taxable years |
|---|
| 611 | 589 | | beginning before January 1, 1981, the amount of any |
|---|
| 612 | 590 | | net operating loss deduc tion allowed to a taxpayer for |
|---|
| 613 | 591 | | federal income tax purposes shall be reduced to an |
|---|
| 614 | 592 | | amount which is the same portion thereof as the loss |
|---|
| 615 | 593 | | from sources within this state, as determined pursuant |
|---|
| 616 | 594 | | to this section and Section 2362 of this title, for |
|---|
| 617 | 595 | | the taxable year in which such loss is sustained is of |
|---|
| 618 | 596 | | the total loss for such year; |
|---|
| 619 | 597 | | b. For carryovers and carrybacks to taxable years |
|---|
| 620 | 598 | | beginning after December 31, 1980, the amount of any |
|---|
| 621 | 599 | | net operating loss deduction allowed for the taxable |
|---|
| 622 | 600 | | year shall be an amount equal to the aggregate of the |
|---|
| 650 | 601 | | Oklahoma net operating loss carryovers and carrybacks |
|---|
| 651 | 602 | | to such year. Oklahoma net operating losses shall be |
|---|
| 652 | 603 | | separately determined by reference to Section 172 of |
|---|
| 653 | 604 | | the Internal Revenue Code, 26 U.S.C., Section 172, as |
|---|
| 654 | 605 | | modified by the Oklahoma Income Tax Act, Section 2351 |
|---|
| 655 | 606 | | et seq. of this title, and shall be allowed without |
|---|
| 656 | 607 | | regard to the existence of a federal net operating |
|---|
| 657 | 634 | | loss. For tax years beginning after December 31, |
|---|
| 658 | 635 | | 2000, and ending before January 1, 2008, the years to |
|---|
| 659 | 636 | | which such losses may be carried shall be determined |
|---|
| 660 | 637 | | solely by reference to Section 172 of the Internal |
|---|
| 661 | 638 | | Revenue Code, 26 U.S.C., Section 172, with the |
|---|
| 662 | 639 | | exception that the terms "net operating loss" and |
|---|
| 663 | 640 | | "taxable income" shall be replaced with "Oklahoma net |
|---|
| 664 | 641 | | operating loss" and "Oklahoma taxable income ". For |
|---|
| 665 | 642 | | tax years beginning after December 31, 2007, and |
|---|
| 666 | 643 | | ending before January 1, 2009, years to which such |
|---|
| 667 | 644 | | losses may be carried back shall be limited to two (2) |
|---|
| 668 | 645 | | years. For tax years beginning after December 31, |
|---|
| 669 | 646 | | 2008, the years to which such losses may be carried |
|---|
| 670 | 647 | | back shall be determined solely by reference to |
|---|
| 671 | 648 | | Section 172 of the Internal Revenue Code, 26 U.S.C., |
|---|
| 672 | 649 | | Section 172, with the exception that the terms "net |
|---|
| 673 | 650 | | operating loss" and "taxable income" shall be replaced |
|---|
| 708 | 684 | | a. Income from real and tangible personal property, such |
|---|
| 709 | 685 | | as rents, oil and mining production or royalties, and |
|---|
| 710 | 686 | | gains or losses from sales of such property, shal l be |
|---|
| 711 | 687 | | allocated in accordance with the situs of such |
|---|
| 712 | 688 | | property; |
|---|
| 713 | 689 | | b. Income from intangible personal property, such as |
|---|
| 714 | 690 | | interest, dividends, patent or copyright royalties, |
|---|
| 715 | 691 | | and gains or losses from sales of such property, shall |
|---|
| 716 | 692 | | be allocated in accordance with th e domiciliary situs |
|---|
| 717 | 693 | | of the taxpayer, except that: |
|---|
| 718 | 694 | | (1) where such property has acquired a nonunitary |
|---|
| 719 | 695 | | business or commercial situs apart from the |
|---|
| 720 | 696 | | domicile of the taxpayer such income shall be |
|---|
| 721 | 697 | | allocated in accordance with such business or |
|---|
| 722 | 698 | | commercial situs; in terest income from |
|---|
| 723 | 699 | | investments held to generate working capital for |
|---|
| 724 | 700 | | a unitary business enterprise shall be included |
|---|
| 759 | 734 | | (2) for taxable years beginning after December 31, |
|---|
| 760 | 735 | | 2003, capital or ordinary gains or losses from |
|---|
| 761 | 736 | | the sale of an ownership interest in a publicly |
|---|
| 762 | 737 | | traded partnership, as defined by Section 7704(b) |
|---|
| 763 | 738 | | of the Internal Revenue Code, shall be allocated |
|---|
| 764 | 739 | | to this state in the ratio of the original cost |
|---|
| 765 | 740 | | of such partnership's tangible property in this |
|---|
| 766 | 741 | | state to the original cost of such partnership's |
|---|
| 767 | 742 | | tangible property everywhere, as determined at |
|---|
| 768 | 743 | | the time of the sale; if more than fifty percent |
|---|
| 769 | 744 | | (50%) of the value of the partnership 's assets |
|---|
| 770 | 745 | | consists of intangible assets, capital or |
|---|
| 771 | 746 | | ordinary gains or losses from the sale o f an |
|---|
| 772 | 747 | | ownership interest in the partnership shall be |
|---|
| 773 | 748 | | allocated to this state in accordance with the |
|---|
| 774 | 749 | | sales factor of the partnership for its first |
|---|
| 775 | 750 | | full tax period immediately preceding its tax |
|---|
| 809 | 783 | | treatment as defined in subparagraph a of |
|---|
| 810 | 784 | | paragraph 2 of subsection F of this section, |
|---|
| 811 | 785 | | (3) income from such property which is required to be |
|---|
| 812 | 786 | | allocated pursuant to the provisions of paragraph |
|---|
| 813 | 787 | | 5 of this subsection shall be allocated as herein |
|---|
| 814 | 788 | | provided; |
|---|
| 815 | 789 | | c. Net income or loss from a business activity which i s |
|---|
| 816 | 790 | | not a part of business carried on within or without |
|---|
| 817 | 791 | | the state of a unitary character shall be separately |
|---|
| 818 | 792 | | allocated to the state in which such activity is |
|---|
| 819 | 793 | | conducted; |
|---|
| 820 | 794 | | d. In the case of a manufacturing or processing |
|---|
| 821 | 795 | | enterprise the business of which in this state |
|---|
| 822 | 796 | | consists solely of marketing its products by: |
|---|
| 823 | 797 | | (1) sales having a situs without this state, shipped |
|---|
| 824 | 798 | | directly to a point from without the state to a |
|---|
| 825 | 799 | | purchaser within the state, commonly known as |
|---|
| 826 | 800 | | interstate sales, |
|---|
| 859 | 832 | | (3) sales of the product stored in public warehouses |
|---|
| 860 | 833 | | within the state where the shipment to s uch |
|---|
| 861 | 834 | | warehouses is not covered by "in transit" |
|---|
| 862 | 835 | | tariffs, as prescribed and allowed by the |
|---|
| 863 | 836 | | Interstate Commerce Commission, to a purchaser |
|---|
| 864 | 837 | | within or without the state, |
|---|
| 865 | 838 | | the Oklahoma net income shall, at the option of the |
|---|
| 866 | 839 | | taxpayer, be that portion of the total n et income of |
|---|
| 867 | 840 | | the taxpayer for federal income tax purposes derived |
|---|
| 868 | 841 | | from the manufacture and/or processing and sales |
|---|
| 869 | 842 | | everywhere as determined by the ratio of the sales |
|---|
| 870 | 843 | | defined in this section made to the purchaser within |
|---|
| 871 | 844 | | the state to the total sales everywhe re. The term |
|---|
| 872 | 845 | | "public warehouse" as used in this subparagraph means |
|---|
| 873 | 846 | | a licensed public warehouse, the principal business of |
|---|
| 874 | 847 | | which is warehousing merchandise for the public; |
|---|
| 875 | 848 | | e. In the case of insurance companies, Oklahoma taxable |
|---|
| 876 | 849 | | income shall be taxable inco me of the taxpayer for |
|---|
| 877 | 850 | | federal tax purposes, as adjusted for the adjustments |
|---|
| 910 | 882 | | to this state by multiplying such income by a |
|---|
| 911 | 883 | | fraction, the numerator of which is the direct |
|---|
| 912 | 884 | | premiums written for insurance on property or |
|---|
| 913 | 885 | | risks in this state, and the denominator of which |
|---|
| 914 | 886 | | is the direct premiums written for insurance on |
|---|
| 915 | 887 | | property or risks everywhere. For purposes of |
|---|
| 916 | 888 | | this subsection, the term "direct premiums |
|---|
| 917 | 889 | | written" means the total amount of direct |
|---|
| 918 | 890 | | premiums written, assessments and annuity |
|---|
| 919 | 891 | | considerations as reported f or the taxable year |
|---|
| 920 | 892 | | on the annual statement filed by the company with |
|---|
| 921 | 893 | | the Insurance Commissioner in the form approved |
|---|
| 922 | 894 | | by the National Association of Insurance |
|---|
| 923 | 895 | | Commissioners, or such other form as may be |
|---|
| 924 | 896 | | prescribed in lieu thereof, |
|---|
| 925 | 897 | | (2) if the principal sour ce of premiums written by an |
|---|
| 926 | 898 | | insurance company consists of premiums for |
|---|
| 927 | 899 | | reinsurance accepted by it, the taxable income of |
|---|
| 928 | 900 | | such company shall be apportioned to this state |
|---|
| 961 | 932 | | or risks in this state, and the denominator of |
|---|
| 962 | 933 | | which is the sum of (c) direct premiums written |
|---|
| 963 | 934 | | for insurance on property or risks everywhere, |
|---|
| 964 | 935 | | plus (d) premiums written for reinsurance |
|---|
| 965 | 936 | | accepted in respect of property or risks |
|---|
| 966 | 937 | | everywhere. For purposes of this paragraph, |
|---|
| 967 | 938 | | premiums written for reinsurance accepted in |
|---|
| 968 | 939 | | respect of property or risks in this state, |
|---|
| 969 | 940 | | whether or not otherwise determinable, may at the |
|---|
| 970 | 941 | | election of the company be determined on the |
|---|
| 971 | 942 | | basis of the proportion which premiums written |
|---|
| 972 | 943 | | for insurance accepted from companies |
|---|
| 973 | 944 | | commercially domiciled in this state bears to |
|---|
| 974 | 945 | | premiums written for reinsurance accep ted from |
|---|
| 975 | 946 | | all sources, or alternatively in the proportion |
|---|
| 976 | 947 | | which the sum of the direct premiums written for |
|---|
| 977 | 948 | | insurance on property or risks in this state by |
|---|
| 978 | 949 | | each ceding company from which reinsurance is |
|---|
| 979 | 950 | | accepted bears to the sum of the total direct |
|---|
| 1012 | 982 | | this state on the basis of the arithmetical average of three factors |
|---|
| 1013 | 983 | | consisting of property, payroll and sales or gross revenue |
|---|
| 1014 | 984 | | enumerated as subparagraphs a, b and c of this paragraph. Net |
|---|
| 1015 | 985 | | income or loss as used in this paragraph includes that derived from |
|---|
| 1016 | 986 | | patent or copyright royalties, purchase discounts, and interest on |
|---|
| 1017 | 987 | | accounts receivable relating to or arising from a business activity, |
|---|
| 1018 | 988 | | the income from which is apportioned pursuant to this subsection, |
|---|
| 1019 | 989 | | including the sale or other disposition of such property and any |
|---|
| 1020 | 990 | | other property used in the unitary enterprise. Deductions used in |
|---|
| 1021 | 991 | | computing such net income or loss shall not include taxes based on |
|---|
| 1022 | 992 | | or measured by income. Provided, for corporations whose property |
|---|
| 1023 | 993 | | for purposes of the tax imposed by Section 2355 of this title has an |
|---|
| 1024 | 994 | | initial investment cost equaling or exceeding Two Hundred Million |
|---|
| 1025 | 995 | | Dollars ($200,000,000.00) and such investment is made on or after |
|---|
| 1026 | 996 | | July 1, 1997, or for corporations which expand their property or |
|---|
| 1027 | 997 | | facilities in this state and such expansi on has an investment cost |
|---|
| 1028 | 998 | | equaling or exceeding Two Hundred Million Dollars ($200,000,000.00) |
|---|
| 1029 | 999 | | over a period not to exceed three (3) years, and such expansion is |
|---|
| 1030 | 1000 | | commenced on or after January 1, 2000, the three factors shall be |
|---|
| 1062 | 1031 | | a. The property factor is a fraction, the numerat or of |
|---|
| 1063 | 1032 | | which is the average value of the taxpayer 's real and |
|---|
| 1064 | 1033 | | tangible personal property owned or rented and used in |
|---|
| 1065 | 1034 | | this state during the tax period and the denominator |
|---|
| 1066 | 1035 | | of which is the average value of all the taxpayer 's |
|---|
| 1067 | 1036 | | real and tangible personal property everywhere owned |
|---|
| 1068 | 1037 | | or rented and used during the tax period. |
|---|
| 1069 | 1038 | | (1) Property, the income from which is separately |
|---|
| 1070 | 1039 | | allocated in paragraph 4 of this subsection, |
|---|
| 1071 | 1040 | | shall not be included in determining this |
|---|
| 1072 | 1041 | | fraction. The numerator of the fraction shall |
|---|
| 1073 | 1042 | | include a portion of the investment in |
|---|
| 1074 | 1043 | | transportation and other equipment having no |
|---|
| 1075 | 1044 | | fixed situs, such as rolling stock, buses, trucks |
|---|
| 1076 | 1045 | | and trailers, including machinery and equipment |
|---|
| 1077 | 1046 | | carried thereon, airplanes, salespersons ' |
|---|
| 1078 | 1047 | | automobiles and other similar equipment, in t he |
|---|
| 1079 | 1048 | | proportion that miles traveled in this state by |
|---|
| 1080 | 1049 | | such equipment bears to total miles traveled, |
|---|
| 1113 | 1081 | | rental rate received by the taxpayer from |
|---|
| 1114 | 1082 | | subrentals, |
|---|
| 1115 | 1083 | | (3) The average value of property shall be determined |
|---|
| 1116 | 1084 | | by averaging the values at the beginning and |
|---|
| 1117 | 1085 | | ending of the tax per iod but the Oklahoma Tax |
|---|
| 1118 | 1086 | | Commission may require the averaging of monthly |
|---|
| 1119 | 1087 | | values during the tax period if reasonably |
|---|
| 1120 | 1088 | | required to reflect properly the average value of |
|---|
| 1121 | 1089 | | the taxpayer's property; |
|---|
| 1122 | 1090 | | b. The payroll factor is a fraction, the numerator of |
|---|
| 1123 | 1091 | | which is the total compensation for services rendered |
|---|
| 1124 | 1092 | | in the state during the tax period, and the |
|---|
| 1125 | 1093 | | denominator of which is the total compensation for |
|---|
| 1126 | 1094 | | services rendered everywhere during the tax period. |
|---|
| 1127 | 1095 | | "Compensation", as used in this subsection, means |
|---|
| 1128 | 1096 | | those paid-for services to the extent related to the |
|---|
| 1129 | 1097 | | unitary business but does not include officers ' |
|---|
| 1130 | 1098 | | salaries, wages and other compensation. |
|---|
| 1158 | 1099 | | (1) In the case of a transportation enterprise, the |
|---|
| 1159 | 1100 | | numerator of the fraction shall include a portion |
|---|
| 1160 | 1101 | | of such expenditure in conne ction with employees |
|---|
| 1161 | 1102 | | operating equipment over a fixed route, such as |
|---|
| 1162 | 1103 | | railroad employees, airline pilots, or bus |
|---|
| 1163 | 1104 | | drivers, in this state only a part of the time, |
|---|
| 1164 | 1131 | | in the proportion that mileage traveled in this |
|---|
| 1165 | 1132 | | state bears to total mileage traveled by such |
|---|
| 1166 | 1133 | | employees, |
|---|
| 1167 | 1134 | | (2) In any case the numerator of the fraction shall |
|---|
| 1168 | 1135 | | include a portion of such expenditures in |
|---|
| 1169 | 1136 | | connection with itinerant employees, such as |
|---|
| 1170 | 1137 | | traveling salespersons, in this state only a part |
|---|
| 1171 | 1138 | | of the time, in the proportion that time spent in |
|---|
| 1172 | 1139 | | this state bears to total time spent in |
|---|
| 1173 | 1140 | | furtherance of the enterprise by such employees; |
|---|
| 1174 | 1141 | | c. The sales factor is a fraction, the numerator of which |
|---|
| 1175 | 1142 | | is the total sales or gross revenue of the taxpayer in |
|---|
| 1176 | 1143 | | this state during the tax period, and the denominator |
|---|
| 1177 | 1144 | | of which is the total sales or gross revenue of the |
|---|
| 1178 | 1145 | | taxpayer everywhere during the tax period. "Sales", |
|---|
| 1179 | 1146 | | as used in this subsection, does not include sales or |
|---|
| 1180 | 1147 | | gross revenue which are separately allocated in |
|---|
| 1181 | 1148 | | paragraph 4 of this subsection. |
|---|
| 1215 | 1181 | | warehouse, factory or other place of storage in |
|---|
| 1216 | 1182 | | this state and (a) the purchaser is the United |
|---|
| 1217 | 1183 | | States government or (b) the taxpayer is not |
|---|
| 1218 | 1184 | | doing business in the state of the destination of |
|---|
| 1219 | 1185 | | the shipment. |
|---|
| 1220 | 1186 | | (2) In the case of a railroad or interurb an railway |
|---|
| 1221 | 1187 | | enterprise, the numerator of the fraction shall |
|---|
| 1222 | 1188 | | not be less than the allocation of revenues to |
|---|
| 1223 | 1189 | | this state as shown in its annual report to the |
|---|
| 1224 | 1190 | | Corporation Commission. |
|---|
| 1225 | 1191 | | (3) In the case of an airline, truck or bus |
|---|
| 1226 | 1192 | | enterprise or freight car, tank ca r, refrigerator |
|---|
| 1227 | 1193 | | car or other railroad equipment enterprise, the |
|---|
| 1228 | 1194 | | numerator of the fraction shall include a portion |
|---|
| 1229 | 1195 | | of revenue from interstate transportation in the |
|---|
| 1230 | 1196 | | proportion that interstate mileage traveled in |
|---|
| 1231 | 1197 | | this state bears to total interstate mileage |
|---|
| 1232 | 1198 | | traveled. |
|---|
| 1266 | 1231 | | denominator of which shall be the total of |
|---|
| 1267 | 1232 | | traffic units of the enterprise or the revenue of |
|---|
| 1268 | 1233 | | the enterprise everywhere as appropriate to the |
|---|
| 1269 | 1234 | | numerator. A "traffic unit" is hereby defined as |
|---|
| 1270 | 1235 | | the transportation for a distance of one (1) mile |
|---|
| 1271 | 1236 | | of one (1) barrel of oil, one (1) gallon of |
|---|
| 1272 | 1237 | | gasoline or one thousand (1,000) cubic feet of |
|---|
| 1273 | 1238 | | natural or casinghead gas, as the case may be. |
|---|
| 1274 | 1239 | | (5) In the case of a telephone or telegraph or other |
|---|
| 1275 | 1240 | | communication enterprise, the numerator of the |
|---|
| 1276 | 1241 | | fraction shall include that portion of the |
|---|
| 1277 | 1242 | | interstate revenue as is allocated pursuant to |
|---|
| 1278 | 1243 | | the accounting procedures prescribed by the |
|---|
| 1279 | 1244 | | Federal Communications Commission; provided that |
|---|
| 1280 | 1245 | | in respect to each corporation or business entity |
|---|
| 1281 | 1246 | | required by the Federal Comm unications Commission |
|---|
| 1282 | 1247 | | to keep its books and records in accordance with |
|---|
| 1283 | 1248 | | a uniform system of accounts prescribed by such |
|---|
| 1317 | 1281 | | shall be those as are determined pursuant to the |
|---|
| 1318 | 1282 | | accounting procedures prescribed by the Federal |
|---|
| 1319 | 1283 | | Communications Commission. |
|---|
| 1320 | 1284 | | In any case where the apportionment of the three factors |
|---|
| 1321 | 1285 | | prescribed in this paragraph attributes to this state a portion of |
|---|
| 1322 | 1286 | | net income of the enterprise out of all appropriate proportion to |
|---|
| 1323 | 1287 | | the property owned and/or business transacted wit hin this state, |
|---|
| 1324 | 1288 | | because of the fact that one or more of the factors so prescribed |
|---|
| 1325 | 1289 | | are not employed to any appreciable extent in furtherance of the |
|---|
| 1326 | 1290 | | enterprise; or because one or more factors not so prescribed are |
|---|
| 1327 | 1291 | | employed to a considerable extent in further ance of the enterprise; |
|---|
| 1328 | 1292 | | or because of other reasons, the Tax Commission is empowered to |
|---|
| 1329 | 1293 | | permit, after a showing by taxpayer that an excessive portion of net |
|---|
| 1330 | 1294 | | income has been attributed to this state, or require, when in its |
|---|
| 1331 | 1295 | | judgment an insufficient portion of net income has been attributed |
|---|
| 1332 | 1296 | | to this state, the elimination, substitution, or use of additional |
|---|
| 1333 | 1297 | | factors, or reduction or increase in the weight of such prescribed |
|---|
| 1334 | 1298 | | factors. Provided, however, that any such variance from such |
|---|
| 1367 | 1330 | | 6. For calendar years 1997 and 1998, the owner of a new or |
|---|
| 1368 | 1331 | | expanded agricultural commodity processing facility in this state |
|---|
| 1369 | 1332 | | may exclude from Oklahoma taxable income, or in the case of an |
|---|
| 1370 | 1333 | | individual, the Oklahoma adjusted gross income, fiftee n percent |
|---|
| 1371 | 1334 | | (15%) of the investment by the owner in the new or expanded |
|---|
| 1372 | 1335 | | agricultural commodity processing facility. For calendar year 1999, |
|---|
| 1373 | 1336 | | and all subsequent years, the percentage, not to exceed fifteen |
|---|
| 1374 | 1337 | | percent (15%), available to the owner of a new or exp anded |
|---|
| 1375 | 1338 | | agricultural commodity processing facility in this state claiming |
|---|
| 1376 | 1339 | | the exemption shall be adjusted annually so that the total estimated |
|---|
| 1377 | 1340 | | reduction in tax liability does not exceed One Million Dollars |
|---|
| 1378 | 1341 | | ($1,000,000.00) annually. The Tax Commission shall promulgate rules |
|---|
| 1379 | 1342 | | for determining the percentage of the investment which each eligible |
|---|
| 1380 | 1343 | | taxpayer may exclude. The exclusion provided by this paragraph |
|---|
| 1381 | 1344 | | shall be taken in the taxable year when the investment is made. In |
|---|
| 1382 | 1345 | | the event the total reduction in tax l iability authorized by this |
|---|
| 1383 | 1346 | | paragraph exceeds One Million Dollars ($1,000,000.00) in any |
|---|
| 1384 | 1347 | | calendar year, the Tax Commission shall permit any excess over One |
|---|
| 1385 | 1348 | | Million Dollars ($1,000,000.00) and shall factor such excess into |
|---|
| 1417 | 1379 | | for a period not exceeding six (6 ) years following the year in which |
|---|
| 1418 | 1380 | | the investment was originally made. |
|---|
| 1419 | 1381 | | For purposes of this paragraph: |
|---|
| 1420 | 1382 | | a. "Agricultural commodity processing facility " means |
|---|
| 1421 | 1383 | | buildings, structures, fixtures and improvements used |
|---|
| 1422 | 1384 | | or operated primarily for the processing or production |
|---|
| 1423 | 1385 | | of marketable products from agricultural commodities. |
|---|
| 1424 | 1386 | | The term shall also mean a dairy operation that |
|---|
| 1425 | 1387 | | requires a depreciable investment of at least Two |
|---|
| 1426 | 1388 | | Hundred Fifty Thousand Dollars ($250,000.00) and which |
|---|
| 1427 | 1389 | | produces milk from dairy cows. The t erm does not |
|---|
| 1428 | 1390 | | include a facility that provides only, and nothing |
|---|
| 1429 | 1391 | | more than, storage, cleaning, drying or transportation |
|---|
| 1430 | 1392 | | of agricultural commodities, and |
|---|
| 1431 | 1393 | | b. "Facility" means each part of the facility which is |
|---|
| 1432 | 1394 | | used in a process primarily for: |
|---|
| 1433 | 1395 | | (1) the processing of agricultural commodities, |
|---|
| 1434 | 1396 | | including receiving or storing agricultural |
|---|
| 1435 | 1397 | | commodities, or the production of milk at a dairy |
|---|
| 1436 | 1398 | | operation, |
|---|
| 1467 | 1428 | | (3) packaging or otherwise preparing the product for |
|---|
| 1468 | 1429 | | sale or shipment. |
|---|
| 1469 | 1430 | | 7. Despite any provision to the contrary in paragraph 3 of this |
|---|
| 1470 | 1431 | | subsection, for taxable years beginning after December 31, 1999, in |
|---|
| 1471 | 1432 | | the case of a taxpayer which has a farming loss, such farming loss |
|---|
| 1472 | 1433 | | shall be considered a net operating loss carryback in accordance |
|---|
| 1473 | 1434 | | with and to the extent of the Internal Revenue Code, 26 U.S.C., |
|---|
| 1474 | 1435 | | Section 172(b)(G). However, the amount of the net operating loss |
|---|
| 1475 | 1436 | | carryback shall not exceed the lesser of: |
|---|
| 1476 | 1437 | | a. Sixty Thousand Dolla rs ($60,000.00), or |
|---|
| 1477 | 1438 | | b. the loss properly shown on Schedule F of the Internal |
|---|
| 1478 | 1439 | | Revenue Service Form 1040 reduced by one -half (1/2) of |
|---|
| 1479 | 1440 | | the income from all other sources other than reflected |
|---|
| 1480 | 1441 | | on Schedule F. |
|---|
| 1481 | 1442 | | 8. In taxable years beginning after December 31, 1995 , all |
|---|
| 1482 | 1443 | | qualified wages equal to the federal income tax credit set forth in |
|---|
| 1483 | 1444 | | 26 U.S.C.A., Section 45A, shall be deducted from taxable income. |
|---|
| 1484 | 1445 | | The deduction allowed pursuant to this paragraph shall only be |
|---|
| 1485 | 1446 | | permitted for the tax years in which the federal tax credit pursuant |
|---|
| 1486 | 1447 | | to 26 U.S.C.A., Section 45A, is allowed. For purposes of this |
|---|
| 1518 | 1478 | | Consultation Service provided by the Oklahoma Department of Labor |
|---|
| 1519 | 1479 | | shall receive an exemption from taxable income in the amount of One |
|---|
| 1520 | 1480 | | Thousand Dollars ($1,000.00) for the tax year that the service is |
|---|
| 1521 | 1481 | | utilized. |
|---|
| 1522 | 1482 | | 10. For taxable years beginning on or after January 1, 2010, |
|---|
| 1523 | 1483 | | there shall be added to Oklahoma taxable income an amount equal to |
|---|
| 1524 | 1484 | | the amount of deferred income not included in such taxable income |
|---|
| 1525 | 1485 | | pursuant to Section 108(i)(1) of the In ternal Revenue Code of 1986 |
|---|
| 1526 | 1486 | | as amended by Section 1231 of the American Recovery and Reinvestment |
|---|
| 1527 | 1487 | | Act of 2009 (P.L. No. 111 -5). There shall be subtracted from |
|---|
| 1528 | 1488 | | Oklahoma taxable income an amount equal to the amount of deferred |
|---|
| 1529 | 1489 | | income included in such taxable income pursuant to Section 108(i)(1) |
|---|
| 1530 | 1490 | | of the Internal Revenue Code by Section 1231 of the American |
|---|
| 1531 | 1491 | | Recovery and Reinvestment Act of 2009 (P.L. No. 111 -5). |
|---|
| 1532 | 1492 | | 11. For taxable years beginning on or after January 1, 2019, |
|---|
| 1533 | 1493 | | there shall be subtracted from Oklahoma taxable income or adjusted |
|---|
| 1534 | 1494 | | gross income any item of income or gain, and there shall be added to |
|---|
| 1535 | 1495 | | Oklahoma taxable income or adjusted gross income any item of loss or |
|---|
| 1536 | 1496 | | deduction that in the absence of an election pursuant to the |
|---|
| 1537 | 1497 | | provisions of the Pass -Through Entity Tax Equity Act of 2019 would |
|---|
| 1569 | 1528 | | provisions of the Pass -Through Entity Tax Equity Act of 2019, and |
|---|
| 1570 | 1529 | | (ii) the total amount of tax attributable to any resulting Oklahoma |
|---|
| 1571 | 1530 | | net entity income has been paid. The Oklahoma Tax Commission shall |
|---|
| 1572 | 1531 | | promulgate rules for the reporting of such exclusion to direct and |
|---|
| 1573 | 1532 | | indirect members of the electing pass -through entity. As used in |
|---|
| 1574 | 1533 | | this paragraph, "electing pass-through entity", "indirect member", |
|---|
| 1575 | 1534 | | and "member" shall be defined in the same manner as prescri bed by |
|---|
| 1576 | 1535 | | Section 2355.1P-2 of this title. Notwithstanding the application of |
|---|
| 1577 | 1536 | | this paragraph, the adjusted tax basis of any ownership interest in |
|---|
| 1578 | 1537 | | a pass-through entity for purposes of Section 2351 et seq. of this |
|---|
| 1579 | 1538 | | title shall be equal to its adjusted tax basi s for federal income |
|---|
| 1580 | 1539 | | tax purposes. |
|---|
| 1581 | 1540 | | B. 1. The taxable income of any corporation shall be further |
|---|
| 1582 | 1541 | | adjusted to arrive at Oklahoma taxable income, except those |
|---|
| 1583 | 1542 | | corporations electing treatment as provided in subchapter S of the |
|---|
| 1584 | 1543 | | Internal Revenue Code, 26 U.S.C ., Section 1361 et seq., and Section |
|---|
| 1585 | 1544 | | 2365 of this title, deductions pursuant to the provisions of the |
|---|
| 1586 | 1545 | | Accelerated Cost Recovery System as defined and allowed in the |
|---|
| 1587 | 1546 | | Economic Recovery Tax Act of 1981, Public Law 97 -34, 26 U.S.C., |
|---|
| 1588 | 1547 | | Section 168, for depreciati on of assets placed into service after |
|---|
| 1620 | 1578 | | U.S.C., Section 1 et seq., in effect immediately prior to the |
|---|
| 1621 | 1579 | | enactment of the Accelerated Cost Recovery System. The Oklahoma tax |
|---|
| 1622 | 1580 | | basis for all such assets placed into service after December 31, |
|---|
| 1623 | 1581 | | 1981, calculated in this section shall be retained and utilized for |
|---|
| 1624 | 1582 | | all Oklahoma income tax purposes through the final disposition of |
|---|
| 1625 | 1583 | | such assets. |
|---|
| 1626 | 1584 | | Notwithstanding any other provisions of the Oklahoma Income Tax |
|---|
| 1627 | 1585 | | Act, Section 2351 et seq. of this title, or of the Internal Revenue |
|---|
| 1628 | 1586 | | Code to the contrary, this subsection shall control calculation of |
|---|
| 1629 | 1587 | | depreciation of assets placed into service after December 31, 1981, |
|---|
| 1630 | 1588 | | and before January 1, 1983. |
|---|
| 1631 | 1589 | | For assets placed in service and held by a corporation in which |
|---|
| 1632 | 1590 | | the Accelerated Cost Recovery System was previously disallowed, an |
|---|
| 1633 | 1591 | | adjustment to taxable income is required in the first taxable year |
|---|
| 1634 | 1592 | | beginning after December 31, 1982, to reconcile the basis of such |
|---|
| 1635 | 1593 | | assets to the basis allowed in the Internal Revenue Code. The |
|---|
| 1636 | 1594 | | purpose of this adjustment is to equalize the basis and allowance |
|---|
| 1637 | 1595 | | for depreciation accounts between that reported to the Internal |
|---|
| 1638 | 1596 | | Revenue Service and that reported to this state. |
|---|
| 1670 | 1627 | | small business expense under Internal Revenue Code, Section 179 as |
|---|
| 1671 | 1628 | | provided in the Americ an Recovery and Reinvestment Act of 2009. |
|---|
| 1672 | 1629 | | C. 1. For taxable years beginning after December 31, 1987, the |
|---|
| 1673 | 1630 | | taxable income of any corporation shall be further adjusted to |
|---|
| 1674 | 1631 | | arrive at Oklahoma taxable income for transfers of technology to |
|---|
| 1675 | 1632 | | qualified small busin esses located in this state. Such transferor |
|---|
| 1676 | 1633 | | corporation shall be allowed an exemption from taxable income of an |
|---|
| 1677 | 1634 | | amount equal to the amount of royalty payment received as a result |
|---|
| 1678 | 1635 | | of such transfer; provided, however, such amount shall not exceed |
|---|
| 1679 | 1636 | | ten percent (10%) of the amount of gross proceeds received by such |
|---|
| 1680 | 1637 | | transferor corporation as a result of the technology transfer. Such |
|---|
| 1681 | 1638 | | exemption shall be allowed for a period not to exceed ten (10) years |
|---|
| 1682 | 1639 | | from the date of receipt of the first royalty payment accrui ng from |
|---|
| 1683 | 1640 | | such transfer. No exemption may be claimed for transfers of |
|---|
| 1684 | 1641 | | technology to qualified small businesses made prior to January 1, |
|---|
| 1685 | 1642 | | 1988. |
|---|
| 1686 | 1643 | | 2. For purposes of this subsection: |
|---|
| 1687 | 1644 | | a. "Qualified small business " means an entity, whether |
|---|
| 1688 | 1645 | | organized as a corporat ion, partnership, or |
|---|
| 1689 | 1646 | | proprietorship, organized for profit with its |
|---|
| 1721 | 1677 | | (2) Having at least fifty percent (50%) of its |
|---|
| 1722 | 1678 | | employees and assets located in this state at the |
|---|
| 1723 | 1679 | | time of the transfer, and |
|---|
| 1724 | 1680 | | (3) Not a subsidiary or affiliate of the transferor |
|---|
| 1725 | 1681 | | corporation; |
|---|
| 1726 | 1682 | | b. "Technology" means a proprietary process, formula, |
|---|
| 1727 | 1683 | | pattern, device or comp ilation of scientific or |
|---|
| 1728 | 1684 | | technical information which is not in the public |
|---|
| 1729 | 1685 | | domain; |
|---|
| 1730 | 1686 | | c. "Transferor corporation " means a corporation which is |
|---|
| 1731 | 1687 | | the exclusive and undisputed owner of the technology |
|---|
| 1732 | 1688 | | at the time the transfer is made; and |
|---|
| 1733 | 1689 | | d. "Gross proceeds" means the total amount of |
|---|
| 1734 | 1690 | | consideration for the transfer of technology, whether |
|---|
| 1735 | 1691 | | the consideration is in money or otherwise. |
|---|
| 1736 | 1692 | | D. 1. For taxable years beginning after December 31, 2005, the |
|---|
| 1737 | 1693 | | taxable income of any corporation, estate or trust, shall be further |
|---|
| 1738 | 1694 | | adjusted for qualifying gains receiving capital treatment. Such |
|---|
| 1739 | 1695 | | corporations, estates or trusts shall be allowed a deduction from |
|---|
| 1740 | 1696 | | Oklahoma taxable income for the amount of qualifying gains receiving |
|---|
| 1772 | 1727 | | a. "qualifying gains receiving capital treatment " means |
|---|
| 1773 | 1728 | | the amount of net capital gains, as defined in Section |
|---|
| 1774 | 1729 | | 1222(11) of the Internal Revenue Code, included in the |
|---|
| 1775 | 1730 | | federal income tax return of the corporation, estate |
|---|
| 1776 | 1731 | | or trust that result from: |
|---|
| 1777 | 1732 | | (1) the sale of real property or tangible personal |
|---|
| 1778 | 1733 | | property located within this state that has been |
|---|
| 1779 | 1734 | | directly or indirectly owned by the corporation, |
|---|
| 1780 | 1735 | | estate or trust for a holding period of at least |
|---|
| 1781 | 1736 | | five (5) years prior to the date of the |
|---|
| 1782 | 1737 | | transaction from which such net capital gains |
|---|
| 1783 | 1738 | | arise, |
|---|
| 1784 | 1739 | | (2) the sale of stock or on the sale of an ownership |
|---|
| 1785 | 1740 | | interest in an Oklahoma company, limited |
|---|
| 1786 | 1741 | | liability company, or partnership where such |
|---|
| 1787 | 1742 | | stock or ownership interest has been directly or |
|---|
| 1788 | 1743 | | indirectly owned by the corporation, estate or |
|---|
| 1789 | 1744 | | trust for a holding period of at least three (3) |
|---|
| 1790 | 1745 | | years prior to the date of the transaction from |
|---|
| 1791 | 1746 | | which the net capital gains arise, or |
|---|
| 1823 | 1777 | | company, limited liability company, or |
|---|
| 1824 | 1778 | | partnership where such property has been directly |
|---|
| 1825 | 1779 | | or indirectly owned by such entity owned by the |
|---|
| 1826 | 1780 | | owners of such entity, and used in or derived |
|---|
| 1827 | 1781 | | from such entity for a period of at least three |
|---|
| 1828 | 1782 | | (3) years prior to the date of the transaction |
|---|
| 1829 | 1783 | | from which the net c apital gains arise, |
|---|
| 1830 | 1784 | | b. "holding period" means an uninterrupted period of |
|---|
| 1831 | 1785 | | time. The holding period shall include any additional |
|---|
| 1832 | 1786 | | period when the property was held by another |
|---|
| 1833 | 1787 | | individual or entity, if such additional period is |
|---|
| 1834 | 1788 | | included in the taxpayer 's holding period for the |
|---|
| 1835 | 1789 | | asset pursuant to the Internal Revenue Code, |
|---|
| 1836 | 1790 | | c. "Oklahoma company", "limited liability company ", or |
|---|
| 1837 | 1791 | | "partnership" means an entity whose primary |
|---|
| 1838 | 1792 | | headquarters have been located in this state for at |
|---|
| 1839 | 1793 | | least three (3) uninterrupted years prior to the date |
|---|
| 1840 | 1794 | | of the transaction from which the net capital gains |
|---|
| 1841 | 1795 | | arise, |
|---|
| 1873 | 1826 | | entities) that sells the asset that gives rise to the |
|---|
| 1874 | 1827 | | qualifying gains receiving capital treatment. |
|---|
| 1875 | 1828 | | (1) With respect to sales of real property or |
|---|
| 1876 | 1829 | | tangible personal property located within this |
|---|
| 1877 | 1830 | | state, the deduction described in this subsection |
|---|
| 1878 | 1831 | | shall not apply unless the pass -through entity |
|---|
| 1879 | 1832 | | that makes the sale has held the property for not |
|---|
| 1880 | 1833 | | less than five (5) uninterrupted years prior to |
|---|
| 1881 | 1834 | | the date of the transaction that created the |
|---|
| 1882 | 1835 | | capital gain, and each pass -through entity |
|---|
| 1883 | 1836 | | included in the chain of ownership has been a |
|---|
| 1884 | 1837 | | member, partner, or shareholder of the pass- |
|---|
| 1885 | 1838 | | through entity in the tier immediately below it |
|---|
| 1886 | 1839 | | for an uninterrupted period of not less than five |
|---|
| 1887 | 1840 | | (5) years. |
|---|
| 1888 | 1841 | | (2) With respect to sales of stock or ownership |
|---|
| 1889 | 1842 | | interest in or sales of all or substantially all |
|---|
| 1890 | 1843 | | of the assets of an Oklahoma company, limited |
|---|
| 1891 | 1844 | | liability company, or partnership, the deduction |
|---|
| 1892 | 1845 | | described in this subsection shall not apply |
|---|
| 1924 | 1876 | | transaction that created the capital gain, and |
|---|
| 1925 | 1877 | | each pass-through entity included in the chain of |
|---|
| 1926 | 1878 | | ownership has been a member, partner or |
|---|
| 1927 | 1879 | | shareholder of the pass -through entity in the |
|---|
| 1928 | 1880 | | tier immediately below it for an uninterrupted |
|---|
| 1929 | 1881 | | period of not less than three (3) years. |
|---|
| 1930 | 1882 | | E. The Oklahoma adjusted gross income of any individual |
|---|
| 1931 | 1883 | | taxpayer shall be further adjusted as follows to arrive at Oklahoma |
|---|
| 1932 | 1884 | | taxable income: |
|---|
| 1933 | 1885 | | 1. a. In the case of individuals, there shall be added or |
|---|
| 1934 | 1886 | | deducted, as the case may be, the difference necessary |
|---|
| 1935 | 1887 | | to allow personal exemptions of One Thousand Dollars |
|---|
| 1936 | 1888 | | ($1,000.00) in lieu of the personal exemptions allowed |
|---|
| 1937 | 1889 | | by the Internal Revenue Code. |
|---|
| 1938 | 1890 | | b. There shall be allowed an additional exemption of One |
|---|
| 1939 | 1891 | | Thousand Dollars ($1,000.00) for each taxpayer or |
|---|
| 1940 | 1892 | | spouse who is blind at the close of the tax year. For |
|---|
| 1941 | 1893 | | purposes of this subparagraph, an individual is blind |
|---|
| 1942 | 1894 | | only if the central visual acuity of the individual |
|---|
| 1943 | 1895 | | does not exceed 20/200 in the better eye with |
|---|
| 1974 | 1925 | | widest diameter of the visual field subtends an angle |
|---|
| 1975 | 1926 | | no greater than twenty (20) degrees. |
|---|
| 1976 | 1927 | | c. There shall be allowed an additional exemption of One |
|---|
| 1977 | 1928 | | Thousand Dollars ($1,000.00) for each taxpayer or |
|---|
| 1978 | 1929 | | spouse who is sixty-five (65) years of age or older at |
|---|
| 1979 | 1930 | | the close of the tax year based upon the filing status |
|---|
| 1980 | 1931 | | and federal adjusted gross income of the taxpayer. |
|---|
| 1981 | 1932 | | Taxpayers with the following filing status may claim |
|---|
| 1982 | 1933 | | this exemption if the federal adjusted gross income |
|---|
| 1983 | 1934 | | does not exceed: |
|---|
| 1984 | 1935 | | (1) Twenty-five Thousand Dollars ($25,000.00) if |
|---|
| 1985 | 1936 | | married and filing jointly; |
|---|
| 1986 | 1937 | | (2) Twelve Thousand Five Hundred Dollars ($12,500.00) |
|---|
| 1987 | 1938 | | if married and filing separately; |
|---|
| 1988 | 1939 | | (3) Fifteen Thousand Dollars ($15,000.00) if single; |
|---|
| 1989 | 1940 | | and |
|---|
| 1990 | 1941 | | (4) Nineteen Thousand Dollars ($19,000.00) if a |
|---|
| 1991 | 1942 | | qualifying head of household. |
|---|
| 1992 | 1943 | | Provided, for taxable years beginning after December |
|---|
| 1993 | 1944 | | 31, 1999, amounts included in the c alculation of |
|---|
| 1994 | 1945 | | federal adjusted gross income pursuant to the |
|---|
| 2025 | 1975 | | purposes of the income thresholds provide d in this |
|---|
| 2026 | 1976 | | subparagraph. |
|---|
| 2027 | 1977 | | 2. a. For taxable years beginning on or before December 31, |
|---|
| 2028 | 1978 | | 2005, in the case of individuals who use the standard |
|---|
| 2029 | 1979 | | deduction in determining taxable income, there shall |
|---|
| 2030 | 1980 | | be added or deducted, as the case may be, the |
|---|
| 2031 | 1981 | | difference necessary to allow a standard deduction in |
|---|
| 2032 | 1982 | | lieu of the standard deduction allowed by the Internal |
|---|
| 2033 | 1983 | | Revenue Code, in an amount equal to the larger of |
|---|
| 2034 | 1984 | | fifteen percent (15%) of the Oklahoma adjusted gross |
|---|
| 2035 | 1985 | | income or One Thousand Dollars ($1,000.00), but not to |
|---|
| 2036 | 1986 | | exceed Two Thousand Dollars ($2,000.00), except that |
|---|
| 2037 | 1987 | | in the case of a married individual filing a separate |
|---|
| 2038 | 1988 | | return such deduction shall be the larger of fifteen |
|---|
| 2039 | 1989 | | percent (15%) of such Oklahoma adjusted gross income |
|---|
| 2040 | 1990 | | or Five Hundred Dollars ($500.00), but not to excee d |
|---|
| 2041 | 1991 | | the maximum amount of One Thousand Dollars |
|---|
| 2042 | 1992 | | ($1,000.00). |
|---|
| 2043 | 1993 | | b. For taxable years beginning on or after January 1, |
|---|
| 2044 | 1994 | | 2006, and before January 1, 2007, in the case of |
|---|
| 2045 | 1995 | | individuals who use the standard deduction in |
|---|
| 2076 | 2025 | | deduction allowed by the Internal Revenue Code, in an |
|---|
| 2077 | 2026 | | amount equal to: |
|---|
| 2078 | 2027 | | (1) Three Thousand Dollars ($3,000.00), if the filing |
|---|
| 2079 | 2028 | | status is married filing joint, head of household |
|---|
| 2080 | 2029 | | or qualifying widow; or |
|---|
| 2081 | 2030 | | (2) Two Thousand Dollars ($2,000.00), if the filing |
|---|
| 2082 | 2031 | | status is single or married filing separate. |
|---|
| 2083 | 2032 | | c. For the taxable year beginning on January 1, 2007, and |
|---|
| 2084 | 2033 | | ending December 31, 2007, in the case of indiv iduals |
|---|
| 2085 | 2034 | | who use the standard deduction in determining taxable |
|---|
| 2086 | 2035 | | income, there shall be added or deducted, as the case |
|---|
| 2087 | 2036 | | may be, the difference necessary to allow a standard |
|---|
| 2088 | 2037 | | deduction in lieu of the standard deduction allowed by |
|---|
| 2089 | 2038 | | the Internal Revenue Code, in an amount equal to: |
|---|
| 2090 | 2039 | | (1) Five Thousand Five Hundred Dollars ($5,500.00), |
|---|
| 2091 | 2040 | | if the filing status is married filing joint or |
|---|
| 2092 | 2041 | | qualifying widow; or |
|---|
| 2093 | 2042 | | (2) Four Thousand One Hundred Twenty -five Dollars |
|---|
| 2094 | 2043 | | ($4,125.00) for a head of household; or |
|---|
| 2127 | 2075 | | who use the standard deduction in determining taxable |
|---|
| 2128 | 2076 | | income, there shall be added or deducted, as the case |
|---|
| 2129 | 2077 | | may be, the difference necessary to allow a standard |
|---|
| 2130 | 2078 | | deduction in lieu of the standard deduction allowed by |
|---|
| 2131 | 2079 | | the Internal Revenue Code, in an amount equal to: |
|---|
| 2132 | 2080 | | (1) Six Thousand Five Hundred Dollars ($6,500. 00), if |
|---|
| 2133 | 2081 | | the filing status is married filing joint or |
|---|
| 2134 | 2082 | | qualifying widow, or |
|---|
| 2135 | 2083 | | (2) Four Thousand Eight Hundred Seventy -five Dollars |
|---|
| 2136 | 2084 | | ($4,875.00) for a head of household, or |
|---|
| 2137 | 2085 | | (3) Three Thousand Two Hundred Fifty Dollars |
|---|
| 2138 | 2086 | | ($3,250.00), if the filing status is single or |
|---|
| 2139 | 2087 | | married filing separate. |
|---|
| 2140 | 2088 | | e. For the taxable year beginning on January 1, 2009, and |
|---|
| 2141 | 2089 | | ending December 31, 2009, in the case of individuals |
|---|
| 2142 | 2090 | | who use the standard deduction in determining taxable |
|---|
| 2143 | 2091 | | income, there shall be added or deducted, as the case |
|---|
| 2144 | 2092 | | may be, the difference necessary to allow a standard |
|---|
| 2177 | 2124 | | (2) Six Thousand Three Hundred Seventy -five Dollars |
|---|
| 2178 | 2125 | | ($6,375.00) for a head of household, or |
|---|
| 2179 | 2126 | | (3) Four Thousand Two Hundred Fifty Dollars |
|---|
| 2180 | 2127 | | ($4,250.00), if the filing status is single or |
|---|
| 2181 | 2128 | | married filing separate. |
|---|
| 2182 | 2129 | | Oklahoma adjusted gross income sh all be increased by |
|---|
| 2183 | 2130 | | any amounts paid for motor vehicle excise taxes which |
|---|
| 2184 | 2131 | | were deducted as allowed by the Internal Revenue Code. |
|---|
| 2185 | 2132 | | f. For taxable years beginning on or after January 1, |
|---|
| 2186 | 2133 | | 2010, and ending on December 31, 2016, in the case of |
|---|
| 2187 | 2134 | | individuals who use the standard deduction in |
|---|
| 2188 | 2135 | | determining taxable income, there shall be added or |
|---|
| 2189 | 2136 | | deducted, as the case may be, the difference necessary |
|---|
| 2190 | 2137 | | to allow a standard deduction equal to the standard |
|---|
| 2191 | 2138 | | deduction allowed by the Internal Revenue Code, based |
|---|
| 2192 | 2139 | | upon the amount and filing status prescribed by such |
|---|
| 2193 | 2140 | | Code for purposes of filing federal individual income |
|---|
| 2194 | 2141 | | tax returns. |
|---|
| 2222 | 2142 | | g. For taxable years beginning on or after January 1, |
|---|
| 2223 | 2143 | | 2017, and ending not later than December 31, 2025, in |
|---|
| 2224 | 2144 | | the case of individuals who use the standard deduction |
|---|
| 2225 | 2145 | | in determining taxable income, there shall be added or |
|---|
| 2226 | 2146 | | deducted, as the case may be, the difference necessary |
|---|
| 2227 | 2147 | | to allow a standard deduction in lieu of the standard |
|---|
| 2228 | 2174 | | deduction allowed by the Internal Revenue Code, as |
|---|
| 2229 | 2175 | | follows: |
|---|
| 2230 | 2176 | | (1) Six Thousand Three Hundred Fifty Dollars |
|---|
| 2231 | 2177 | | ($6,350.00) for single or married filing |
|---|
| 2232 | 2178 | | separately, |
|---|
| 2233 | 2179 | | (2) Twelve Thousand Seven Hundred Dollars |
|---|
| 2234 | 2180 | | ($12,700.00) for married filing jointly or |
|---|
| 2235 | 2181 | | qualifying widower with dependent child, and |
|---|
| 2236 | 2182 | | (3) Nine Thousand Three Hundred Fifty Dollars |
|---|
| 2237 | 2183 | | ($9,350.00) for head of household. |
|---|
| 2238 | 2184 | | h. For taxable years beginning on or after January 1, |
|---|
| 2239 | 2185 | | 2026, in the case of individuals who use the standard |
|---|
| 2240 | 2186 | | deduction in determining taxable income, there shall |
|---|
| 2241 | 2187 | | be added or deducted, as the case may be, the |
|---|
| 2242 | 2188 | | difference necessary to allow a standard deduction in |
|---|
| 2243 | 2189 | | lieu of the standard deduction allowed by the Internal |
|---|
| 2244 | 2190 | | Revenue Code, as follows: |
|---|
| 2278 | 2223 | | (3) Twenty Thousand Three Hundred Twenty -five Dollars |
|---|
| 2279 | 2224 | | ($20,325.00) for head of household. |
|---|
| 2280 | 2225 | | 3. |
|---|
| 2281 | 2226 | | 2. a. In the case of resident and part -year resident |
|---|
| 2282 | 2227 | | individuals having adjusted gross income from sources |
|---|
| 2283 | 2228 | | both within and without the state, the itemized or |
|---|
| 2284 | 2229 | | standard deductions and personal exemptions shall be |
|---|
| 2285 | 2230 | | reduced to an amount which is the same portion of the |
|---|
| 2286 | 2231 | | total thereof as Oklahoma adjusted gross income is of |
|---|
| 2287 | 2232 | | adjusted gross income. To the extent itemized |
|---|
| 2288 | 2233 | | deductions include allowable moving expense, proration |
|---|
| 2289 | 2234 | | of moving expense shall not be required or permitted |
|---|
| 2290 | 2235 | | but allowable moving expense shall be fully deductible |
|---|
| 2291 | 2236 | | for those taxpayers moving within or into this state |
|---|
| 2292 | 2237 | | and no part of moving expense shall be deductible for |
|---|
| 2293 | 2238 | | those taxpayers moving without or out of this state. |
|---|
| 2294 | 2239 | | All other itemized or standard deductions and personal |
|---|
| 2322 | 2240 | | exemptions shall be subject to proration as provided |
|---|
| 2323 | 2241 | | by law. |
|---|
| 2324 | 2242 | | b. For taxable years begin ning on or after January 1, |
|---|
| 2325 | 2243 | | 2018, the net amount of itemized deductions allowable |
|---|
| 2326 | 2244 | | on an Oklahoma income tax return, subject to the |
|---|
| 2327 | 2245 | | provisions of paragraph 24 of this subsection, shall |
|---|
| 2328 | 2246 | | not exceed Seventeen Thousand Dollars ($17,000.00). |
|---|
| 2329 | 2273 | | For purposes of this subparagraph, charitable |
|---|
| 2330 | 2274 | | contributions and medical expenses deductible for |
|---|
| 2331 | 2275 | | federal income tax purposes shall be excluded from the |
|---|
| 2332 | 2276 | | amount of Seventeen Thousand Dollars ($17,000.00) as |
|---|
| 2333 | 2277 | | specified by this subparagraph. |
|---|
| 2334 | 2278 | | 4. 3. A resident individual with a phy sical disability |
|---|
| 2335 | 2279 | | constituting a substantial handicap to employment may deduct from |
|---|
| 2336 | 2280 | | Oklahoma adjusted gross income such expenditures to modify a motor |
|---|
| 2337 | 2281 | | vehicle, home or workplace as are necessary to compensate for his or |
|---|
| 2338 | 2282 | | her handicap. A veteran certified by the Department of Veterans |
|---|
| 2339 | 2283 | | Affairs of the federal government as having a service -connected |
|---|
| 2340 | 2284 | | disability shall be conclusively presumed to be an individual with a |
|---|
| 2341 | 2285 | | physical disability constituting a substantial handicap to |
|---|
| 2342 | 2286 | | employment. The Tax Commission shal l promulgate rules containing a |
|---|
| 2343 | 2287 | | list of combinations of common disabilities and modifications which |
|---|
| 2344 | 2288 | | may be presumed to qualify for this deduction. The Tax Commission |
|---|
| 2345 | 2289 | | shall prescribe necessary requirements for verification. |
|---|
| 2373 | 2290 | | 5. |
|---|
| 2374 | 2291 | | 4. a. Before July 1, 2010, th e first One Thousand Five |
|---|
| 2375 | 2292 | | Hundred Dollars ($1,500.00) received by any person |
|---|
| 2376 | 2293 | | from the United States as salary or compensation in |
|---|
| 2377 | 2294 | | any form, other than retirement benefits, as a member |
|---|
| 2378 | 2295 | | of any component of the Armed Forces of the United |
|---|
| 2379 | 2296 | | States shall be deduct ed from taxable income. |
|---|
| 2380 | 2323 | | b. On or after July 1, 2010, one hundred percent (100%) |
|---|
| 2381 | 2324 | | of the income received by any person from the United |
|---|
| 2382 | 2325 | | States as salary or compensation in any form, other |
|---|
| 2383 | 2326 | | than retirement benefits, as a member of any component |
|---|
| 2384 | 2327 | | of the Armed Forces of the United States shall be |
|---|
| 2385 | 2328 | | deducted from taxable income. |
|---|
| 2386 | 2329 | | c. Whenever the filing of a timely income tax return by a |
|---|
| 2387 | 2330 | | member of the Armed Forces of the United States is |
|---|
| 2388 | 2331 | | made impracticable or impossible of accomplishment by |
|---|
| 2389 | 2332 | | reason of: |
|---|
| 2390 | 2333 | | (1) absence from the United States, which term |
|---|
| 2391 | 2334 | | includes only the states and the District of |
|---|
| 2392 | 2335 | | Columbia; |
|---|
| 2393 | 2336 | | (2) absence from this state while on active duty; or |
|---|
| 2394 | 2337 | | (3) confinement in a hospital within the United |
|---|
| 2395 | 2338 | | States for treatment of wounds, injuries or |
|---|
| 2396 | 2339 | | disease, |
|---|
| 2431 | 2373 | | to this state if the extension is granted |
|---|
| 2432 | 2374 | | pursuant to subparagraph b of this paragraph |
|---|
| 2433 | 2375 | | or be discharged from such hospital if the |
|---|
| 2434 | 2376 | | extension is granted pursuant to |
|---|
| 2435 | 2377 | | subparagraph c of thi s paragraph; or |
|---|
| 2436 | 2378 | | (b) An executor, administrator, or conservator |
|---|
| 2437 | 2379 | | of the estate of the taxpayer is appointed, |
|---|
| 2438 | 2380 | | whichever event occurs the earliest. |
|---|
| 2439 | 2381 | | Provided, that the Tax Commission may, in its discretion, grant |
|---|
| 2440 | 2382 | | any member of the Armed Forces of the United Sta tes an extension of |
|---|
| 2441 | 2383 | | time for filing of income tax returns and payment of income tax |
|---|
| 2442 | 2384 | | without incurring liabilities for interest or penalties. Such |
|---|
| 2443 | 2385 | | extension may be granted only when in the judgment of the Tax |
|---|
| 2444 | 2386 | | Commission a good cause exists therefor and may be for a period in |
|---|
| 2445 | 2387 | | excess of six (6) months. A record of every such extension granted, |
|---|
| 2446 | 2388 | | and the reason therefor, shall be kept. |
|---|
| 2474 | 2389 | | 6. 5. Before July 1, 2010, the salary or any other form of |
|---|
| 2475 | 2390 | | compensation, received from the United States by a member of any |
|---|
| 2476 | 2391 | | component of the Armed Forces of the United States, shall be |
|---|
| 2477 | 2392 | | deducted from taxable income during the time in which the person is |
|---|
| 2478 | 2393 | | detained by the enemy in a conflict, is a prisoner of war or is |
|---|
| 2479 | 2394 | | missing in action and not deceased; provided, after July 1, 2010, |
|---|
| 2480 | 2395 | | all such salary or compensation shall be subject to the deduction as |
|---|
| 2481 | 2396 | | provided pursuant to paragraph 5 of this subsection. |
|---|
| 2482 | 2423 | | 7. |
|---|
| 2483 | 2424 | | 6. a. An individual taxpayer, whether resident or |
|---|
| 2484 | 2425 | | nonresident, may deduct an amount equal to the federal |
|---|
| 2485 | 2426 | | income taxes paid by the taxpayer during the taxable |
|---|
| 2486 | 2427 | | year. |
|---|
| 2487 | 2428 | | b. Federal taxes as described in subparagraph a of this |
|---|
| 2488 | 2429 | | paragraph shall be deductible by any individual |
|---|
| 2489 | 2430 | | taxpayer, whether resident or nonresident, only to the |
|---|
| 2490 | 2431 | | extent they relate to income subject to taxation |
|---|
| 2491 | 2432 | | pursuant to the provisions of the Oklahoma Income Tax |
|---|
| 2492 | 2433 | | Act. The maximum amount allowable in the preceding |
|---|
| 2493 | 2434 | | paragraph shall be prorated on the ratio of the |
|---|
| 2494 | 2435 | | Oklahoma adjusted gross income to federal adjusted |
|---|
| 2495 | 2436 | | gross income. |
|---|
| 2496 | 2437 | | c. For the purpose of this paragraph, "federal income |
|---|
| 2497 | 2438 | | taxes paid" shall mean federal income taxes, surtaxes |
|---|
| 2525 | 2439 | | imposed on incomes or excess profits taxes, as though |
|---|
| 2526 | 2440 | | the taxpayer was on the accrual basis. In determining |
|---|
| 2527 | 2441 | | the amount of deduction for federal income taxes for |
|---|
| 2528 | 2442 | | tax year 2001, the amount of the dedu ction shall not |
|---|
| 2529 | 2443 | | be adjusted by the amount of any accelerated ten |
|---|
| 2530 | 2444 | | percent (10%) tax rate bracket credit or advanced |
|---|
| 2531 | 2445 | | refund of the credit received during the tax year |
|---|
| 2532 | 2446 | | provided pursuant to the federal Economic Growth and |
|---|
| 2533 | 2473 | | Tax Relief Reconciliation Act of 2001, P.L. No. 107- |
|---|
| 2534 | 2474 | | 16, and the advanced refund of such credit shall not |
|---|
| 2535 | 2475 | | be subject to taxation. |
|---|
| 2536 | 2476 | | d. The provisions of this paragraph shall apply to all |
|---|
| 2537 | 2477 | | taxable years ending after December 31, 1978, and |
|---|
| 2538 | 2478 | | beginning before January 1, 2006. |
|---|
| 2539 | 2479 | | 8. 7. Retirement benefits not to exceed Five Thousand Five |
|---|
| 2540 | 2480 | | Hundred Dollars ($5,500.00) for the 2004 tax year, Seven Thousand |
|---|
| 2541 | 2481 | | Five Hundred Dollars ($7,500.00) for the 2005 tax year and Ten |
|---|
| 2542 | 2482 | | Thousand Dollars ($10,000.00) for the 2006 tax year and all |
|---|
| 2543 | 2483 | | subsequent tax years, which are r eceived by an individual from the |
|---|
| 2544 | 2484 | | civil service of the United States, the Oklahoma Public Employees |
|---|
| 2545 | 2485 | | Retirement System, the Teachers ' Retirement System of Oklahoma, the |
|---|
| 2546 | 2486 | | Oklahoma Law Enforcement Retirement System, the Oklahoma |
|---|
| 2547 | 2487 | | Firefighters Pension and Retire ment System, the Oklahoma Police |
|---|
| 2548 | 2488 | | Pension and Retirement System, the employee retirement systems |
|---|
| 2576 | 2489 | | created by counties pursuant to Section 951 et seq. of Title 19 of |
|---|
| 2577 | 2490 | | the Oklahoma Statutes, the Uniform Retirement System for Justices |
|---|
| 2578 | 2491 | | and Judges, the Oklahoma Wi ldlife Conservation Department Retirement |
|---|
| 2579 | 2492 | | Fund, the Oklahoma Employment Security Commission Retirement Plan, |
|---|
| 2580 | 2493 | | or the employee retirement systems created by municipalities |
|---|
| 2581 | 2494 | | pursuant to Section 48 -101 et seq. of Title 11 of the Oklahoma |
|---|
| 2582 | 2495 | | Statutes shall be exemp t from taxable income. |
|---|
| 2583 | 2522 | | 9. 8. In taxable years beginning after December 3l, 1984, |
|---|
| 2584 | 2523 | | Social Security benefits received by an individual shall be exempt |
|---|
| 2585 | 2524 | | from taxable income, to the extent such benefits are included in the |
|---|
| 2586 | 2525 | | federal adjusted gross income pursuant to the provisions of Section |
|---|
| 2587 | 2526 | | 86 of the Internal Revenue Code, 26 U.S.C., Section 86. |
|---|
| 2588 | 2527 | | 10. 9. For taxable years beginning after December 31, 1994, |
|---|
| 2589 | 2528 | | lump-sum distributions from employer plans of deferred compensation, |
|---|
| 2590 | 2529 | | which are not qualified plans within the meaning of Section 401(a) |
|---|
| 2591 | 2530 | | of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which |
|---|
| 2592 | 2531 | | are deposited in and accounted for within a separate bank account or |
|---|
| 2593 | 2532 | | brokerage account in a financial institution within this state, |
|---|
| 2594 | 2533 | | shall be excluded from taxabl e income in the same manner as a |
|---|
| 2595 | 2534 | | qualifying rollover contribution to an individual retirement account |
|---|
| 2596 | 2535 | | within the meaning of Section 408 of the Internal Revenue Code, 26 |
|---|
| 2597 | 2536 | | U.S.C., Section 408. Amounts withdrawn from such bank or brokerage |
|---|
| 2598 | 2537 | | account, including any earnings thereon, shall be included in |
|---|
| 2599 | 2538 | | taxable income when withdrawn in the same manner as withdrawals from |
|---|
| 2633 | 2571 | | 12. 11. For taxable years beginning after D ecember 31, 1996, |
|---|
| 2634 | 2572 | | the Oklahoma adjusted gross income of any individual taxpayer who is |
|---|
| 2635 | 2573 | | a swine or poultry producer may be further adjusted for the |
|---|
| 2636 | 2574 | | deduction for depreciation allowed for new construction or expansion |
|---|
| 2637 | 2575 | | costs which may be computed using the sa me depreciation method |
|---|
| 2638 | 2576 | | elected for federal income tax purposes except that the useful life |
|---|
| 2639 | 2577 | | shall be seven (7) years for purposes of this paragraph. If |
|---|
| 2640 | 2578 | | depreciation is allowed as a deduction in determining the adjusted |
|---|
| 2641 | 2579 | | gross income of an individual, any de preciation calculated and |
|---|
| 2642 | 2580 | | claimed pursuant to this section shall in no event be a duplication |
|---|
| 2643 | 2581 | | of any depreciation allowed or permitted on the federal income tax |
|---|
| 2644 | 2582 | | return of the individual. |
|---|
| 2645 | 2583 | | 13. |
|---|
| 2646 | 2584 | | 12. a. In taxable years beginning after December 31, 2002, |
|---|
| 2647 | 2585 | | nonrecurring adoption expenses paid by a resident |
|---|
| 2648 | 2586 | | individual taxpayer in connection with: |
|---|
| 2649 | 2587 | | (1) the adoption of a minor, or |
|---|
| 2684 | 2621 | | c. The Tax Commission shall promulgate rules to implement |
|---|
| 2685 | 2622 | | the provisions of this paragraph which shall contain a |
|---|
| 2686 | 2623 | | specific list of nonrecurring adoption expenses which |
|---|
| 2687 | 2624 | | may be presumed to qualify for the deduction. The Tax |
|---|
| 2688 | 2625 | | Commission shall prescribe necessary requirements for |
|---|
| 2689 | 2626 | | verification. |
|---|
| 2690 | 2627 | | d. "Nonrecurring adoption expenses " means adoption fees, |
|---|
| 2691 | 2628 | | court costs, medical expenses, attorney fees and |
|---|
| 2692 | 2629 | | expenses which are directly related to the legal |
|---|
| 2693 | 2630 | | process of adoption of a child including, but not |
|---|
| 2694 | 2631 | | limited to, costs relating to the adoption study, |
|---|
| 2695 | 2632 | | health and psychological examinations, transportation |
|---|
| 2696 | 2633 | | and reasonable costs of lodging and food for the child |
|---|
| 2697 | 2634 | | or adoptive parents which are incurred to complete the |
|---|
| 2698 | 2635 | | adoption process and are not reimbursed by other |
|---|
| 2699 | 2636 | | sources. The term nonrecurring adoption expenses |
|---|
| 2700 | 2637 | | shall not include attorney fees incurred for the |
|---|
| 2735 | 2671 | | 13. a. In taxable years beginning before January 1, 2005, |
|---|
| 2736 | 2672 | | retirement benefits not to exceed the amounts |
|---|
| 2737 | 2673 | | specified in this paragraph, which are received by an |
|---|
| 2738 | 2674 | | individual sixty-five (65) years of age or older and |
|---|
| 2739 | 2675 | | whose Oklahoma adjusted gross incom e is Twenty-five |
|---|
| 2740 | 2676 | | Thousand Dollars ($25,000.00) or less if the filing |
|---|
| 2741 | 2677 | | status is single, head of household, or married filing |
|---|
| 2742 | 2678 | | separate, or Fifty Thousand Dollars ($50,000.00) or |
|---|
| 2743 | 2679 | | less if the filing status is married filing joint or |
|---|
| 2744 | 2680 | | qualifying widow, shall be exempt from taxable income. |
|---|
| 2745 | 2681 | | In taxable years beginning after December 31, 2004, |
|---|
| 2746 | 2682 | | retirement benefits not to exceed the amounts |
|---|
| 2747 | 2683 | | specified in this paragraph, which are received by an |
|---|
| 2748 | 2684 | | individual whose Oklahoma adjusted gross income is |
|---|
| 2749 | 2685 | | less than the qualifying amount specified in this |
|---|
| 2750 | 2686 | | paragraph, shall be exempt from taxable income. |
|---|
| 2778 | 2687 | | b. For purposes of this paragraph, the qualifying amount |
|---|
| 2779 | 2688 | | shall be as follows: |
|---|
| 2780 | 2689 | | (1) in taxable years beginning after December 31, |
|---|
| 2781 | 2690 | | 2004, and prior to January 1, 2007, the |
|---|
| 2782 | 2691 | | qualifying amount shall be Thirty-seven Thousand |
|---|
| 2783 | 2692 | | Five Hundred Dollars ($37,500.00) or less if the |
|---|
| 2784 | 2693 | | filing status is single, head of household, or |
|---|
| 2785 | 2694 | | married filing separate, or Seventy -five Thousand |
|---|
| 2786 | 2721 | | Dollars ($75,000.00) or less if the filing status |
|---|
| 2787 | 2722 | | is married filing jointly or qualifying widow, |
|---|
| 2788 | 2723 | | (2) in the taxable year beginning January 1, 2007, |
|---|
| 2789 | 2724 | | the qualifying amount shall be Fifty Thousand |
|---|
| 2790 | 2725 | | Dollars ($50,000.00) or less if the filing status |
|---|
| 2791 | 2726 | | is single, head of household, or married filing |
|---|
| 2792 | 2727 | | separate, or One Hundred Thousand Dolla rs |
|---|
| 2793 | 2728 | | ($100,000.00) or less if the filing status is |
|---|
| 2794 | 2729 | | married filing jointly or qualifying widow, |
|---|
| 2795 | 2730 | | (3) in the taxable year beginning January 1, 2008, |
|---|
| 2796 | 2731 | | the qualifying amount shall be Sixty -two Thousand |
|---|
| 2797 | 2732 | | Five Hundred Dollars ($62,500.00) or less if the |
|---|
| 2798 | 2733 | | filing status is single, head of household, or |
|---|
| 2799 | 2734 | | married filing separate, or One Hundred Twenty - |
|---|
| 2800 | 2735 | | five Thousand Dollars ($125,000.00) or less if |
|---|
| 2828 | 2736 | | the filing status is married filing jointly or |
|---|
| 2829 | 2737 | | qualifying widow, |
|---|
| 2830 | 2738 | | (4) in the taxable year beginning January 1, 2009, |
|---|
| 2831 | 2739 | | the qualifying amount shall be One Hundred |
|---|
| 2832 | 2740 | | Thousand Dollars ($100,000.00) or less if the |
|---|
| 2833 | 2741 | | filing status is single, head of household, or |
|---|
| 2834 | 2742 | | married filing separate, or Two Hundred Thousand |
|---|
| 2835 | 2743 | | Dollars ($200,000.00) or less if the filing |
|---|
| 2836 | 2770 | | status is married filing jointly or qua lifying |
|---|
| 2837 | 2771 | | widow, and |
|---|
| 2838 | 2772 | | (5) in the taxable year beginning January 1, 2010, |
|---|
| 2839 | 2773 | | and subsequent taxable years, there shall be no |
|---|
| 2840 | 2774 | | limitation upon the qualifying amount. |
|---|
| 2841 | 2775 | | c. For purposes of this paragraph, "retirement benefits" |
|---|
| 2842 | 2776 | | means the total distributions or withdrawa ls from the |
|---|
| 2843 | 2777 | | following: |
|---|
| 2844 | 2778 | | (1) an employee pension benefit plan which satisfies |
|---|
| 2845 | 2779 | | the requirements of Section 401 of the Internal |
|---|
| 2846 | 2780 | | Revenue Code, 26 U.S.C., Section 401, |
|---|
| 2847 | 2781 | | (2) an eligible deferred compensation plan that |
|---|
| 2848 | 2782 | | satisfies the requirements of Section 457 of t he |
|---|
| 2849 | 2783 | | Internal Revenue Code, 26 U.S.C., Section 457, |
|---|
| 2850 | 2784 | | (3) an individual retirement account, annuity or |
|---|
| 2851 | 2785 | | trust or simplified employee pension that |
|---|
| 2879 | 2786 | | satisfies the requirements of Section 408 of the |
|---|
| 2880 | 2787 | | Internal Revenue Code, 26 U.S.C., Section 408, |
|---|
| 2881 | 2788 | | (4) an employee annuity subject to the provisions of |
|---|
| 2882 | 2789 | | Section 403(a) or (b) of the Internal Revenue |
|---|
| 2883 | 2790 | | Code, 26 U.S.C., Section 403(a) or (b), |
|---|
| 2884 | 2791 | | (5) United States Retirement Bonds which satisfy the |
|---|
| 2885 | 2792 | | requirements of Section 86 of the Internal |
|---|
| 2886 | 2793 | | Revenue Code, 26 U.S.C., Section 86, or |
|---|
| 2887 | 2820 | | (6) lump-sum distributions from a retirement plan |
|---|
| 2888 | 2821 | | which satisfies the requirements of Section |
|---|
| 2889 | 2822 | | 402(e) of the Internal Revenue Code, 26 U.S.C., |
|---|
| 2890 | 2823 | | Section 402(e). |
|---|
| 2891 | 2824 | | d. The amount of the exemption provided by this paragraph |
|---|
| 2892 | 2825 | | shall be limited to Five Thousand Five H undred Dollars |
|---|
| 2893 | 2826 | | ($5,500.00) for the 2004 tax year, Seven Thousand Five |
|---|
| 2894 | 2827 | | Hundred Dollars ($7,500.00) for the 2005 tax year and |
|---|
| 2895 | 2828 | | Ten Thousand Dollars ($10,000.00) for the tax year |
|---|
| 2896 | 2829 | | 2006 and for all subsequent tax years. Any individual |
|---|
| 2897 | 2830 | | who claims the exemption p rovided for in paragraph 8 7 |
|---|
| 2898 | 2831 | | of this subsection shall not be permitted to claim a |
|---|
| 2899 | 2832 | | combined total exemption pursuant to this paragraph |
|---|
| 2900 | 2833 | | and paragraph 8 of this subsection in an amount |
|---|
| 2901 | 2834 | | exceeding Five Thousand Five Hundred Dollars |
|---|
| 2902 | 2835 | | ($5,500.00) for the 2004 tax year, Seven Thousand Five |
|---|
| 2930 | 2836 | | Hundred Dollars ($7,500.00) for the 2005 tax year and |
|---|
| 2931 | 2837 | | Ten Thousand Dollars ($10,000.00) for the 2006 tax |
|---|
| 2932 | 2838 | | year and all subsequent tax years. |
|---|
| 2933 | 2839 | | 15. 14. In taxable years beginning after December 31, 1999, for |
|---|
| 2934 | 2840 | | an individual engaged in production agriculture who has filed a |
|---|
| 2935 | 2841 | | Schedule F form with the taxpayer 's federal income tax return for |
|---|
| 2936 | 2842 | | such taxable year, there shall be excluded from taxable income any |
|---|
| 2937 | 2843 | | amount which was included as federal taxable income or federal |
|---|
| 2938 | 2870 | | adjusted gross income and which consists of the discharge of an |
|---|
| 2939 | 2871 | | obligation by a creditor of the taxpayer incurred to finance the |
|---|
| 2940 | 2872 | | production of agricultural products. |
|---|
| 2941 | 2873 | | 16. 15. In taxable years beginning December 31, 2000, an amount |
|---|
| 2942 | 2874 | | equal to one hundred percent (100%) of the amo unt of any scholarship |
|---|
| 2943 | 2875 | | or stipend received from participation in the Oklahoma Police Corps |
|---|
| 2944 | 2876 | | Program, as established in Section 2 -140.3 of Title 47 of the |
|---|
| 2945 | 2877 | | Oklahoma Statutes shall be exempt from taxable income. |
|---|
| 2946 | 2878 | | 17. |
|---|
| 2947 | 2879 | | 16. a. In taxable years beginning after Dece mber 31, 2001, |
|---|
| 2948 | 2880 | | and before January 1, 2005, there shall be allowed a |
|---|
| 2949 | 2881 | | deduction in the amount of contributions to accounts |
|---|
| 2950 | 2882 | | established pursuant to the Oklahoma College Savings |
|---|
| 2951 | 2883 | | Plan Act. The deduction shall equal the amount of |
|---|
| 2952 | 2884 | | contributions to accounts, but in no event shall the |
|---|
| 2953 | 2885 | | deduction for each contributor exceed Two Thousand |
|---|
| 2981 | 2886 | | Five Hundred Dollars ($2,500.00) each taxable year for |
|---|
| 2982 | 2887 | | each account. |
|---|
| 2983 | 2888 | | b. In taxable years beginning after December 31, 2004, |
|---|
| 2984 | 2889 | | each taxpayer shall be allowed a deduction for |
|---|
| 2985 | 2890 | | contributions to accounts established pursuant to the |
|---|
| 2986 | 2891 | | Oklahoma College Savings Plan Act. The maximum annual |
|---|
| 2987 | 2892 | | deduction shall equal the amount of contributions to |
|---|
| 2988 | 2893 | | all such accounts plus any contributions to such |
|---|
| 2989 | 2920 | | accounts by the taxpayer for prior taxable years after |
|---|
| 2990 | 2921 | | December 31, 2004, which were not deducted, but in no |
|---|
| 2991 | 2922 | | event shall the deduction for each tax year exceed Ten |
|---|
| 2992 | 2923 | | Thousand Dollars ($10,000.00) for each individual |
|---|
| 2993 | 2924 | | taxpayer or Twenty Thousand Dollars ($20,000.00) for |
|---|
| 2994 | 2925 | | taxpayers filing a joint return. Any amount o f a |
|---|
| 2995 | 2926 | | contribution that is not deducted by the taxpayer in |
|---|
| 2996 | 2927 | | the year for which the contribution is made may be |
|---|
| 2997 | 2928 | | carried forward as a deduction from income for the |
|---|
| 2998 | 2929 | | succeeding five (5) years. For taxable years |
|---|
| 2999 | 2930 | | beginning after December 31, 2005, deductions may b e |
|---|
| 3000 | 2931 | | taken for contributions and rollovers made during a |
|---|
| 3001 | 2932 | | taxable year and up to April 15 of the succeeding |
|---|
| 3002 | 2933 | | year, or the due date of a taxpayer 's state income tax |
|---|
| 3003 | 2934 | | return, excluding extensions, whichever is later. |
|---|
| 3031 | 2935 | | Provided, a deduction for the same contributio n may |
|---|
| 3032 | 2936 | | not be taken for two (2) different taxable years. |
|---|
| 3033 | 2937 | | c. In taxable years beginning after December 31, 2006, |
|---|
| 3034 | 2938 | | deductions for contributions made pursuant to |
|---|
| 3035 | 2939 | | subparagraph b of this paragraph shall be limited as |
|---|
| 3036 | 2940 | | follows: |
|---|
| 3037 | 2941 | | (1) for a taxpayer who qualified for the five-year |
|---|
| 3038 | 2942 | | carryforward election and who takes a rollover or |
|---|
| 3039 | 2943 | | nonqualified withdrawal during that period, the |
|---|
| 3040 | 2970 | | tax deduction otherwise available pursuant to |
|---|
| 3041 | 2971 | | subparagraph b of this paragraph shall be reduced |
|---|
| 3042 | 2972 | | by the amount which is equal to the rollover or |
|---|
| 3043 | 2973 | | nonqualified withdrawal, and |
|---|
| 3044 | 2974 | | (2) for a taxpayer who elects to take a rollover or |
|---|
| 3045 | 2975 | | nonqualified withdrawal within the same tax year |
|---|
| 3046 | 2976 | | in which a contribution was made to the |
|---|
| 3047 | 2977 | | taxpayer's account, the tax deduction otherwise |
|---|
| 3048 | 2978 | | available pursuant to subparagraph b o f this |
|---|
| 3049 | 2979 | | paragraph shall be reduced by the amount of the |
|---|
| 3050 | 2980 | | contribution which is equal to the rollover or |
|---|
| 3051 | 2981 | | nonqualified withdrawal. |
|---|
| 3052 | 2982 | | d. If a taxpayer elects to take a rollover on a |
|---|
| 3053 | 2983 | | contribution for which a deduction has been taken |
|---|
| 3054 | 2984 | | pursuant to subparagraph b of t his paragraph within |
|---|
| 3090 | 3019 | | in the adjusted gross income of the taxpayer in the |
|---|
| 3091 | 3020 | | taxable year of the nonqualified withdrawal. |
|---|
| 3092 | 3021 | | f. As used in this paragraph: |
|---|
| 3093 | 3022 | | (1) "non-qualified withdrawal " means a withdrawal |
|---|
| 3094 | 3023 | | from an Oklahoma College Savings Plan account |
|---|
| 3095 | 3024 | | other than one of the following: |
|---|
| 3096 | 3025 | | (a) a qualified withdrawal, |
|---|
| 3097 | 3026 | | (b) a withdrawal made as a result of the death |
|---|
| 3098 | 3027 | | or disability of the designate d beneficiary |
|---|
| 3099 | 3028 | | of an account, |
|---|
| 3100 | 3029 | | (c) a withdrawal that is made on the account of |
|---|
| 3101 | 3030 | | a scholarship or the allowance or payment |
|---|
| 3102 | 3031 | | described in Section 135(d)(1)(B) or (C) or |
|---|
| 3103 | 3032 | | by the Internal Revenue Code, received by |
|---|
| 3104 | 3033 | | the designated beneficiary to the extent the |
|---|
| 3105 | 3034 | | amount of the refund does not exceed the |
|---|
| 3139 | 3067 | | (2) "rollover" means the transfer of funds from the |
|---|
| 3140 | 3068 | | Oklahoma College Savings Plan to any other plan |
|---|
| 3141 | 3069 | | under Section 529 of the Internal Revenue Code. |
|---|
| 3142 | 3070 | | 18. 17. For tax years 2006 through 2021, retirement benefits |
|---|
| 3143 | 3071 | | received by an individual from any component of the Armed Forces of |
|---|
| 3144 | 3072 | | the United States in an amount not to exceed the greater of seventy - |
|---|
| 3145 | 3073 | | five percent (75%) of such benefits or Ten Thousand Dollars |
|---|
| 3146 | 3074 | | ($10,000.00) shall be exempt from taxable income but in no case less |
|---|
| 3147 | 3075 | | than the amount of the exemption provided by paragraph 14 of this |
|---|
| 3148 | 3076 | | subsection. For tax year 2022 and subsequent tax years, retirement |
|---|
| 3149 | 3077 | | benefits received by an individual from any component of the Armed |
|---|
| 3150 | 3078 | | Forces of the United States shall be exempt from taxable income. |
|---|
| 3151 | 3079 | | 19. 18. For taxable years beginning after December 31, 2006, |
|---|
| 3152 | 3080 | | retirement benefits received by federal civil service retirees, |
|---|
| 3153 | 3081 | | including survivor annuities, paid in lieu of Social Security |
|---|
| 3154 | 3082 | | benefits shall be exempt from taxable income to the extent such |
|---|
| 3155 | 3083 | | benefits are included in the federal adjusted gross income pursuant |
|---|
| 3183 | 3084 | | to the provisions of Section 86 of the Internal Revenue Code, 26 |
|---|
| 3184 | 3085 | | U.S.C., Section 86, according to the following schedule: |
|---|
| 3185 | 3086 | | a. in the taxable year beginning January 1, 2007, twenty |
|---|
| 3186 | 3087 | | percent (20%) of such benefits shall be exempt, |
|---|
| 3187 | 3088 | | b. in the taxable year beginning January 1, 2008, forty |
|---|
| 3188 | 3089 | | percent (40%) of such benefits shall be exempt, |
|---|
| 3189 | 3116 | | c. in the taxable year beginning January 1, 2009, sixty |
|---|
| 3190 | 3117 | | percent (60%) of such benefits shall be exempt, |
|---|
| 3191 | 3118 | | d. in the taxable year beginning January 1, 2010, eighty |
|---|
| 3192 | 3119 | | percent (80%) of such benefits shall be exempt, and |
|---|
| 3193 | 3120 | | e. in the taxable year beginning January 1, 2011, and |
|---|
| 3194 | 3121 | | subsequent taxable years, one hundred percent (100%) |
|---|
| 3195 | 3122 | | of such benefits shall be exempt. |
|---|
| 3196 | 3123 | | 20. |
|---|
| 3197 | 3124 | | 19. a. For taxable years beginning after December 31, 2007, a |
|---|
| 3198 | 3125 | | resident individual may deduct up to Ten Thousand |
|---|
| 3199 | 3126 | | Dollars ($10,000.00) from Oklahoma adjusted gross |
|---|
| 3200 | 3127 | | income if the individual, or the dependent of the |
|---|
| 3201 | 3128 | | individual, while living, donates one or more human |
|---|
| 3202 | 3129 | | organs of the individual to another human being for |
|---|
| 3203 | 3130 | | human organ transplantation. As used in this |
|---|
| 3204 | 3131 | | paragraph, "human organ" means all or part of a liver, |
|---|
| 3205 | 3132 | | pancreas, kidney, intestine, lung, or bone marrow. A |
|---|
| 3206 | 3133 | | deduction that is claimed under this paragraph may be |
|---|
| 3240 | 3166 | | c. The Oklahoma Tax Commission shall promulgate rules to |
|---|
| 3241 | 3167 | | implement the provisions of this paragraph which shall |
|---|
| 3242 | 3168 | | contain a specific list of expenses which may be |
|---|
| 3243 | 3169 | | presumed to qualify for the deduction. The Tax |
|---|
| 3244 | 3170 | | Commission shall prescribe necessary requirements for |
|---|
| 3245 | 3171 | | verification. |
|---|
| 3246 | 3172 | | 21. 20. For taxable years beginning after December 31, 2009, |
|---|
| 3247 | 3173 | | there shall be exempt from taxable income any amount received by the |
|---|
| 3248 | 3174 | | beneficiary of the death benefit for an emergency medical technician |
|---|
| 3249 | 3175 | | or a registered emergency medical responder provided by Section 1 - |
|---|
| 3250 | 3176 | | 2505.1 of Title 63 of the Oklahoma Statutes. |
|---|
| 3251 | 3177 | | 22. 21. For taxable years beginning after December 31, 2008, |
|---|
| 3252 | 3178 | | taxable income shall be increased by any unemployment compensation |
|---|
| 3253 | 3179 | | exempted under Section 85(c) of the Internal Revenue Code, 26 |
|---|
| 3254 | 3180 | | U.S.C., Section 85(c)(2009). |
|---|
| 3255 | 3181 | | 23. 22. For taxable years beginning after December 31, 2008, |
|---|
| 3256 | 3182 | | there shall be exempt from taxable income any payment in an amount |
|---|
| 3257 | 3183 | | less than Six Hundred Dollars ($600.00) received by a person as an |
|---|
| 3290 | 3215 | | 24. 23. For taxable years beginning on or after January 1, |
|---|
| 3291 | 3216 | | 2016, taxable income shall be increased by any amount of state and |
|---|
| 3292 | 3217 | | local sales or income taxes deducted under 26 U.S.C., Section 164 of |
|---|
| 3293 | 3218 | | the Internal Revenue Code. If the amount of state and local taxes |
|---|
| 3294 | 3219 | | deducted on the federal return is limited, taxable income on the |
|---|
| 3295 | 3220 | | state return shall be increased only by the amount actually deducted |
|---|
| 3296 | 3221 | | after any such limitations are applied. |
|---|
| 3297 | 3222 | | 25. 24. For taxable years beginning after December 31, 2020, |
|---|
| 3298 | 3223 | | each taxpayer shall be allowed a deduction for contributions to |
|---|
| 3299 | 3224 | | accounts established pursuant to the Achieving a Better Life |
|---|
| 3300 | 3225 | | Experience (ABLE) Program as established in Section 4001.1 et seq. |
|---|
| 3301 | 3226 | | of Title 56 of the Oklahoma Statutes. For any tax year, the |
|---|
| 3302 | 3227 | | deduction provided for in this paragraph shall not exceed Ten |
|---|
| 3303 | 3228 | | Thousand Dollars ($10,000.00) for an individual taxpayer or Twenty |
|---|
| 3304 | 3229 | | Thousand Dollars ($20,000.00) for taxpayers filing a joint return. |
|---|
| 3305 | 3230 | | Any amount of contribution not deducted by the taxpayer in the tax |
|---|
| 3306 | 3231 | | year for which the contribution is made may be carried forward as a |
|---|
| 3307 | 3232 | | deduction from income for up to five (5) tax years. Deductions may |
|---|
| 3308 | 3233 | | be taken for contributions made during the tax year and through |
|---|
| 3340 | 3264 | | 26. 25. For tax year 2024 and subsequent tax years, tax credits |
|---|
| 3341 | 3265 | | received pursuant to the Oklahoma Parental Choice Tax Credit Act in |
|---|
| 3342 | 3266 | | Section 28-101 of Title 70 of the Oklahoma Statutes shall be exempt |
|---|
| 3343 | 3267 | | from taxable income. |
|---|
| 3344 | 3268 | | F. 1. For taxable years beginning after December 31, 2004, a |
|---|
| 3345 | 3269 | | deduction from the Oklahoma adjusted gross income of any individual |
|---|
| 3346 | 3270 | | taxpayer shall be allowed for qualifying gains receiving capital |
|---|
| 3347 | 3271 | | treatment that are included in the federal adjusted gross income of |
|---|
| 3348 | 3272 | | such individual taxpayer during the taxable year. |
|---|
| 3349 | 3273 | | 2. As used in this subsection: |
|---|
| 3350 | 3274 | | a. "qualifying gains receiving capital treatment" means |
|---|
| 3351 | 3275 | | the amount of net capital gains, as defined in Section |
|---|
| 3352 | 3276 | | 1222(11) of the Internal Revenue Code, included in an |
|---|
| 3353 | 3277 | | individual taxpayer's federal income tax return that |
|---|
| 3354 | 3278 | | result from: |
|---|
| 3355 | 3279 | | (1) the sale of real property or tangible personal |
|---|
| 3356 | 3280 | | property located within this state that has been |
|---|
| 3357 | 3281 | | directly or indirectly owned by the individual |
|---|
| 3358 | 3282 | | taxpayer for a holding period of at least five |
|---|
| 3391 | 3314 | | partnership where such stock or ownership |
|---|
| 3392 | 3315 | | interest has been directly or indirectly owned by |
|---|
| 3393 | 3316 | | the individual taxpayer for a holding period of |
|---|
| 3394 | 3317 | | at least two (2) years prior to the date of the |
|---|
| 3395 | 3318 | | transaction from which the net capital gains |
|---|
| 3396 | 3319 | | arise, or |
|---|
| 3397 | 3320 | | (3) the sale of real property, tangible personal |
|---|
| 3398 | 3321 | | property or intangible personal property located |
|---|
| 3399 | 3322 | | within this state as part of the sale of all or |
|---|
| 3400 | 3323 | | substantially all of the assets of an Oklahoma |
|---|
| 3401 | 3324 | | company, limited liability company, or |
|---|
| 3402 | 3325 | | partnership or an Oklahoma proprietorship |
|---|
| 3403 | 3326 | | business enterprise where such property has been |
|---|
| 3404 | 3327 | | directly or indirectly owned by such entity or |
|---|
| 3405 | 3328 | | business enterprise or owned by the owners of |
|---|
| 3406 | 3329 | | such entity or business enterprise for a period |
|---|
| 3407 | 3330 | | of at least two (2) years prior to the date of |
|---|
| 3408 | 3331 | | the transaction from which the net capital gains |
|---|
| 3409 | 3332 | | arise, |
|---|
| 3441 | 3363 | | included in the taxpayer 's holding period for the |
|---|
| 3442 | 3364 | | asset pursuant to the Internal Revenue Code, |
|---|
| 3443 | 3365 | | c. "Oklahoma company," "limited liability company, " or |
|---|
| 3444 | 3366 | | "partnership" means an entity whose primary |
|---|
| 3445 | 3367 | | headquarters have been located in this state for at |
|---|
| 3446 | 3368 | | least three (3) uninterrupted years prior to the date |
|---|
| 3447 | 3369 | | of the transaction from which the net capital gains |
|---|
| 3448 | 3370 | | arise, |
|---|
| 3449 | 3371 | | d. "direct" means the individual taxpayer directly owns |
|---|
| 3450 | 3372 | | the asset, |
|---|
| 3451 | 3373 | | e. "indirect" means the individual taxpayer owns an |
|---|
| 3452 | 3374 | | interest in a pass-through entity (or chain of pass - |
|---|
| 3453 | 3375 | | through entities) that sells the asset that gives rise |
|---|
| 3454 | 3376 | | to the qualifying gains receiving capital treatment. |
|---|
| 3455 | 3377 | | (1) With respect to sales of real prop erty or |
|---|
| 3456 | 3378 | | tangible personal property located within this |
|---|
| 3457 | 3379 | | state, the deduction described in this subsection |
|---|
| 3458 | 3380 | | shall not apply unless the pass -through entity |
|---|
| 3459 | 3381 | | that makes the sale has held the property for not |
|---|
| 3460 | 3382 | | less than five (5) uninterrupted years prior to |
|---|
| 3492 | 3413 | | through entity in the tier immediately below it |
|---|
| 3493 | 3414 | | for an uninterrupted period of not l ess than five |
|---|
| 3494 | 3415 | | (5) years. |
|---|
| 3495 | 3416 | | (2) With respect to sales of stock or ownership |
|---|
| 3496 | 3417 | | interest in or sales of all or substantially all |
|---|
| 3497 | 3418 | | of the assets of an Oklahoma company, limited |
|---|
| 3498 | 3419 | | liability company, partnership or Oklahoma |
|---|
| 3499 | 3420 | | proprietorship business enterprise, the deduc tion |
|---|
| 3500 | 3421 | | described in this subsection shall not apply |
|---|
| 3501 | 3422 | | unless the pass-through entity that makes the |
|---|
| 3502 | 3423 | | sale has held the stock or ownership interest for |
|---|
| 3503 | 3424 | | not less than two (2) uninterrupted years prior |
|---|
| 3504 | 3425 | | to the date of the transaction that created the |
|---|
| 3505 | 3426 | | capital gain, and each pass-through entity |
|---|
| 3506 | 3427 | | included in the chain of ownership has been a |
|---|
| 3507 | 3428 | | member, partner or shareholder of the pass - |
|---|
| 3508 | 3429 | | through entity in the tier immediately below it |
|---|
| 3509 | 3430 | | for an uninterrupted period of not less than two |
|---|
| 3510 | 3431 | | (2) years. For purposes of this division , |
|---|
| 3511 | 3432 | | uninterrupted ownership prior to July 1, 2007, |
|---|
| 3542 | 3462 | | f. "Oklahoma proprietorship business enterprise " means a |
|---|
| 3543 | 3463 | | business enterprise whose income and expenses h ave |
|---|
| 3544 | 3464 | | been reported on Schedule C or F of an individual |
|---|
| 3545 | 3465 | | taxpayer's federal income tax return, or any similar |
|---|
| 3546 | 3466 | | successor schedule published by the Internal Revenue |
|---|
| 3547 | 3467 | | Service and whose primary headquarters have been |
|---|
| 3548 | 3468 | | located in this state for at least three (3) |
|---|
| 3549 | 3469 | | uninterrupted years prior to the date of the |
|---|
| 3550 | 3470 | | transaction from which the net capital gains arise. |
|---|
| 3551 | 3471 | | G. 1. For purposes of computing its Oklahoma taxable income |
|---|
| 3552 | 3472 | | under this section, the dividends -paid deduction otherwise allowed |
|---|
| 3553 | 3473 | | by federal law in computing net income of a real estate investment |
|---|
| 3554 | 3474 | | trust that is subject to federal income tax shall be added back in |
|---|
| 3555 | 3475 | | computing the tax imposed by this state under this title if the real |
|---|
| 3556 | 3476 | | estate investment trust is a captive real estate investment trust. |
|---|
| 3557 | 3477 | | 2. For purposes of computing its Oklahoma taxable income under |
|---|
| 3558 | 3478 | | this section, a taxpayer shall add back otherwise deductible rents |
|---|
| 3559 | 3479 | | and interest expenses paid to a captive real estate investment trust |
|---|
| 3560 | 3480 | | that is not subject to the provisions of paragraph 1 of this |
|---|
| 3561 | 3481 | | subsection. As used in this subsection: |
|---|
| 3592 | 3511 | | b. the term "captive real estate investment trust " means |
|---|
| 3593 | 3512 | | a real estate investment trust, t he shares or |
|---|
| 3594 | 3513 | | beneficial interests of which are not regularly traded |
|---|
| 3595 | 3514 | | on an established securities market and more than |
|---|
| 3596 | 3515 | | fifty percent (50%) of the voting power or value of |
|---|
| 3597 | 3516 | | the beneficial interests or shares of which are owned |
|---|
| 3598 | 3517 | | or controlled, directly or indir ectly, or |
|---|
| 3599 | 3518 | | constructively, by a single entity that is: |
|---|
| 3600 | 3519 | | (1) treated as an association taxable as a |
|---|
| 3601 | 3520 | | corporation under the Internal Revenue Code, and |
|---|
| 3602 | 3521 | | (2) not exempt from federal income tax pursuant to |
|---|
| 3603 | 3522 | | the provisions of Section 501(a) of the Internal |
|---|
| 3604 | 3523 | | Revenue Code. |
|---|
| 3605 | 3524 | | The term shall not include a real estate investment |
|---|
| 3606 | 3525 | | trust that is intended to be regularly traded on an |
|---|
| 3607 | 3526 | | established securities market, and that satisfies the |
|---|
| 3608 | 3527 | | requirements of Section 856(a)(5) and (6) of the U.S. |
|---|
| 3609 | 3528 | | Internal Revenue Code by reason of Secti on 856(h)(2) |
|---|
| 3610 | 3529 | | of the Internal Revenue Code, |
|---|
| 3611 | 3530 | | c. the term "association taxable as a corporation " shall |
|---|
| 3612 | 3531 | | not include the following entities: |
|---|
| 3643 | 3561 | | (2) any qualified real estate investment trust |
|---|
| 3644 | 3562 | | subsidiary under Section 856(i) of the Internal |
|---|
| 3645 | 3563 | | Revenue Code, other than a qualified REIT |
|---|
| 3646 | 3564 | | subsidiary of a captive real estate investment |
|---|
| 3647 | 3565 | | trust, or |
|---|
| 3648 | 3566 | | (3) any listed Australian property trust (mean ing an |
|---|
| 3649 | 3567 | | Australian unit trust registered as a "managed |
|---|
| 3650 | 3568 | | investment scheme" under the Australian |
|---|
| 3651 | 3569 | | Corporations Act 2001 in which the principal |
|---|
| 3652 | 3570 | | class of units is listed on a recognized stock |
|---|
| 3653 | 3571 | | exchange in Australia and is regularly traded on |
|---|
| 3654 | 3572 | | an established securi ties market), or an entity |
|---|
| 3655 | 3573 | | organized as a trust, provided that a listed |
|---|
| 3656 | 3574 | | Australian property trust owns or controls, |
|---|
| 3657 | 3575 | | directly or indirectly, seventy -five percent |
|---|
| 3658 | 3576 | | (75%) or more of the voting power or value of the |
|---|
| 3659 | 3577 | | beneficial interests or shares of such trust, or |
|---|
| 3660 | 3578 | | (4) any qualified foreign entity, meaning a |
|---|
| 3661 | 3579 | | corporation, trust, association or partnership |
|---|
| 3662 | 3580 | | organized outside the laws of the United States |
|---|
| 3663 | 3581 | | and which satisfies the following criteria: |
|---|
| 3694 | 3611 | | estate assets, as defined in Section |
|---|
| 3695 | 3612 | | 856(c)(5)(B) of the Internal Revenue Code, |
|---|
| 3696 | 3613 | | thereby including shares or certificates of |
|---|
| 3697 | 3614 | | beneficial interest in any real estate |
|---|
| 3698 | 3615 | | investment trust, cash and cash equivalents, |
|---|
| 3699 | 3616 | | and U.S. Government securities, |
|---|
| 3700 | 3617 | | (b) the entity receives a dividend -paid |
|---|
| 3701 | 3618 | | deduction comparable to Section 561 of the |
|---|
| 3702 | 3619 | | Internal Revenue Code, or is exempt from |
|---|
| 3703 | 3620 | | entity level tax, |
|---|
| 3704 | 3621 | | (c) the entity is required to distribute at |
|---|
| 3705 | 3622 | | least eighty-five percent (85%) of its |
|---|
| 3706 | 3623 | | taxable income, as computed in the |
|---|
| 3707 | 3624 | | jurisdiction in which it is organized, to |
|---|
| 3708 | 3625 | | the holders of its shares or certificates of |
|---|
| 3709 | 3626 | | beneficial interest on an annual basis, |
|---|
| 3710 | 3627 | | (d) not more than ten percent (10%) of the |
|---|
| 3711 | 3628 | | voting power or value in such entity is held |
|---|
| 3712 | 3629 | | directly or indirectly or constructively by |
|---|
| 3713 | 3630 | | a single entity or individual, or the shares |
|---|
| 3714 | 3631 | | or beneficial interests of such entity are |
|---|
| 3744 | 3660 | | (e) the entity is organized in a country which |
|---|
| 3745 | 3661 | | has a tax treaty with the United States. |
|---|
| 3746 | 3662 | | 3. For purposes of this subsection, the constructive ownership |
|---|
| 3747 | 3663 | | rules of Section 318(a) of the Internal Revenue Code, as modified by |
|---|
| 3748 | 3664 | | Section 856(d)(5) of the Internal Revenue Code, shall apply in |
|---|
| 3749 | 3665 | | determining the ownership of s tock, assets, or net profits of any |
|---|
| 3750 | 3666 | | person. |
|---|
| 3751 | 3667 | | 4. A real estate investment trust that does not become |
|---|
| 3752 | 3668 | | regularly traded on an established securities market within one (1) |
|---|
| 3753 | 3669 | | year of the date on which it first becomes a real estate investment |
|---|
| 3754 | 3670 | | trust shall be deeme d not to have been regularly traded on an |
|---|
| 3755 | 3671 | | established securities market, retroactive to the date it first |
|---|
| 3756 | 3672 | | became a real estate investment trust, and shall file an amended |
|---|
| 3757 | 3673 | | return reflecting such retroactive designation for any tax year or |
|---|
| 3758 | 3674 | | part year occurring during its initial year of status as a real |
|---|
| 3759 | 3675 | | estate investment trust. For purposes of this subsection, a real |
|---|
| 3760 | 3676 | | estate investment trust becomes a real estate investment trust on |
|---|
| 3761 | 3677 | | the first day it has both met the requirements of Section 856 of the |
|---|
| 3762 | 3678 | | Internal Revenue Code and has elected to be treated as a real estate |
|---|
| 3763 | 3679 | | investment trust pursuant to Section 856(c)(1) of the Internal |
|---|
| 3764 | 3680 | | Revenue Code. |
|---|