Oklahoma Senate Bill SB282

Oklahoma 2025 Regular Session

• Introduced: 2/3/25
• Refer: 2/4/25

Caption

Federal taxes; creating the Budget Accountability for State's Economic Defense (BASED) Act; requiring certain withholding and estimated tax payments be made to State Treasurer. Effective date. Emergency.

Impact

If enacted, SB282 would significantly alter the flow of federal tax revenues from Oklahoma to the federal government, effectively creating a situation where Oklahoma taxpayers would make their tax payments to the state instead. This withholding mechanism is designed to shield citizens and local entities from punitive federal actions while they comply with Oklahoma's law. Furthermore, the bill creates a legal structure that aims to ensure that citizens and businesses are defended against any federal retaliatory measures incited by their adherence to these new state provisions.

Summary

Senate Bill 282, known as the Budget Accountability for State's Economic Defense (BASED) Act, aims to address issues associated with federal fiscal mismanagement by establishing a framework for Oklahoma to withhold federal tax payments until a balanced federal budget is enacted. The bill emphasizes state sovereignty under the Tenth Amendment, claiming that Oklahoma has both the authority and duty to protect its citizens from economic threats posed by the federal government's financial irresponsibility. The Act establishes a Taxpayer Protection Escrow Revolving Fund into which all federal tax withholdings collected in Oklahoma will be directed until the federal government meets the outlined fiscal requirements.

Contention

The bill encapsulates a considerable point of contention as it juxtaposes state rights against federal authority. Supporters may argue that this sort of legislative action is necessary to curb federal overreach and promote fiscal responsibility at the federal level. However, critics might contend that such measures could lead to legal challenges and further discord between state and federal governments. The bill's provisions declaring any federal actions in response to the state's tax policy as null and void also invite scrutiny and raise questions about the potential legal ramifications of such a broad assertion of state authority.