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ENGROSSED SENATE
BILL NO. 291 By: Pugh and Jech of the Senate
and
Kendrix of the House
[ income tax credit - duties for the State Board of
Equalization - calculation - publish credit amount -
revenue failure - codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.103, is
amended to read as follows:
Section 34.103. A. In addition to any other duties prescribed
by law, at the meeting requ ired by Section 23 of Article X of the
Oklahoma Constitution to be held in February of 2017, and at the
February meeting of the State Board of Equalization each year
thereafter, the State Board of Equalization shall certify:
1. For the revenue derived from the tax levied on oil pursuant
to Section 1001 of Title 68 of the Oklahoma Statutes, which would
otherwise be apportioned to the General Revenue Fund, the average
annual amount of actual revenue apportioned to the General Revenue
Fund for the immediately preceding five (5) complete fiscal years.
For any year after the first year during which a deposit to the
Revenue Stabilization Fund is made, the amount of any deposit to the
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Revenue Stabilization Fund shall be disregarded for purposes of this
paragraph and the average shall be computed using the total amount
of revenue that was available to be apportioned to the General
Revenue Fund for the applicable period of time;
2. For the revenue derived from the tax levied on natural gas
pursuant to Section 1001 of Title 68 of the Oklahoma Statutes, which
would otherwise be apportioned to the General Revenue Fund, the
average annual amount of actual revenue apportioned to the General
Revenue Fund for the previous five (5) fiscal years. For any year
after the first year during which a deposit to the Revenue
Stabilization Fund is made, the amount of any deposit to the Revenue
Stabilization Fund shall be disregarded for purposes of this
paragraph and the average shall be computed using the total amount
of revenue that was available to be apportioned to the General
Revenue Fund for the applicable period of time; and
3. For the revenue derived from the corporate income tax levied
pursuant to Section 2355 of Title 68 the Oklahoma Statutes, which
would otherwise be a pportioned to the General Revenue Fund, the
average annual amount of actual revenue apportioned to the General
Revenue Fund for the previous five (5) fiscal years. For any year
after the first year during which a deposit to the Revenue
Stabilization Fund is m ade, the amount of any deposit to the Revenue
Stabilization Fund shall be disregarded for purposes of this
paragraph and the average shall be computed using the total amount
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of revenue that was available to be apportioned to the General
Revenue Fund for the applicable period of time.
B. If the amount of revenue available for apportionment to the
General Revenue Fund for the next ensuing fiscal year exceeds the
amounts certified pursuant to paragraph 1 or 2 of subsection A of
this section, with respect to e ach such revenue source, one hundred
percent (100%) of such amount in excess of the separately computed
five-year average, which would otherwise be apportioned to the
General Revenue Fund, shall be deposited to the credit of the
Revenue Stabilization F und.
C. If the amount of revenue available for apportionment to the
General Revenue Fund for the next ensuing fiscal year exceeds the
amount certified pursuant to paragraph 3 of subsection A of this
section:
1. Twenty-five percent (25%) of such amount in exc ess of the
five-year average, which would otherwise be apportioned to the
General Revenue Fund, shall be deposited to the credit of the
Constitutional Reserve Fund unless such deposit would exceed the
maximum balance permitted pursuant to Section 23 of Article X of the
Oklahoma Constitution and in such case the amount in excess of the
maximum balance shall be deposited to the credit of the Revenue
Stabilization Fund; and
2. Seventy-five percent (75%) of such amount in excess of the
five-year average, which would otherwise be apportioned to the
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General Revenue Fund, shall be deposited to the credit of the
Revenue Stabilization Fund, together with any amount required for
deposit pursuant to the provisions of paragraph 1 of this
subsection.
D. In addition to any other duties prescribed by law, at the
meeting required by Section 23 of Article X of the Oklahoma
Constitution to be held in February of 2026, and at the February
meeting of the State Board of Equalization each year thereafter, the
State Board of Equalization shall certify:
1. The percentage growth of the amounts available for
appropriation, pursuant to paragraph 1 of Section 23 of Article X of
the Oklahoma Constitution, for the ensuing fiscal year from the
current fiscal year, as certified by the Board during the previous
February meeting; and
2. If the percentage growth certified pursuant to paragraph 1
of this subsection exceeds ten percent (10%), the Board shall
certify the amount of revenues exceeding five (5) percentage points
of the growth certified for calculating the amount of tax credit
provided in Section 2 of this act.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2357.207 of Title 68, unless
there is created a duplica tion in numbering, reads as follows:
A. For calendar years where the State Board of Equalization
certifies an amount pursuant to paragraph 2 of subsection D of
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Section 34.103 of Title 62 of the Oklahoma Statutes, for the
corresponding tax year, there shall be allowed a refundable credit
against the tax imposed pursuant to Section 2355 of Title 68 of the
Oklahoma Statutes in an amount, rounded to the nearest whole dollar,
to be calculated by the Oklahoma Tax Commission by taking the amount
certified by the Board pursuant to paragraph 2 of subsection D of
Section 34.103 of Title 62 of the Oklahoma Statutes and dividing by
the summation of the following:
1. The number of individual, married filing separate, surviving
spouse, and head of household state personal i ncome tax returns
filed in the second preceding tax year, multiplied by the number one
and five thousandths (1.005); and
2. The number of married filing jointly state personal income
tax returns filed in the second preceding tax year, multiplied by
the number two and one hundredth s (2.01).
B. The credit amount calculated by the Commission as provided
in subsection A of this section shall be doubled for those married
filing jointly.
C. Within forty-five (45) days of the Board certifying an
amount pursuant to paragraph 2 of subsection D of Section 34.103 of
Title 62 of the Oklahoma Statutes, the Commission shall publish on
its website the amount of tax credit calculated pursuant to
subsection A of this section.
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D. If a revenue failure is declared pursu ant to the provisions
of Section 34.49 of Title 62 of the Oklahoma Statutes prior to
November 1 of the calendar year corresponding to the tax year in
which a tax credit is provided pursuant to this section, the tax
credit shall not be provided for that tax yea r.
SECTION 3. This act shall become effective November 1, 2025.
Passed the Senate the 25th day of March, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2025.
Presiding Officer of the House
of Representatives