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Bill > HB3674

OK HB3674

Revenue and taxation; individual income tax; rates; State Board of Equalization; revenue computations; reductions; threshold tax rate; further reductions; effective date.

summary

Introduced
02/05/2024
In Committee
02/06/2024
Crossed Over
Passed
Dead
05/31/2024

Introduced Session

2024 Regular Session

Bill Summary

An Act relating to revenue and taxation; amending 68 O.S. 2021, Section 2355, as last amended by Section 1, Chapter 27, 1st Extraordinary Session, O.S.L. 2023 (68 O.S. Supp. 2023, Section 2355), which relates to income tax levies; reducing income tax rate; providing for revenue computations by the State Board of Equalization; providing for reductions in certain income tax rate based upon increases in total collections; defining term; prescribing formula for further reductions of income tax rates; providing for reductions until individual income tax rate equals zero; and providing an effective date.

AI Summary

This bill amends the Oklahoma Income Tax Act to reduce individual income tax rates over time. Starting in 2024, the top individual income tax rate will be gradually reduced from 4.75% to 3%, and then further reduced by 0.3% annually until the individual income tax rate reaches 0%. These reductions are contingent on the State Board of Equalization certifying that total revenue collections have increased by at least $300 million over the previous year's base amount. The bill also defines key terms like "qualifying cumulative revenue growth" and establishes a process for the Board of Equalization to make the necessary determinations to trigger the tax rate reductions. The bill is effective January 1, 2024.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Recommendation to the full committee; Do Pass Appropriations and Budget Finance - Revenue and Taxation Subcommittee (on 02/26/2024)

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