Bill > SB1

This bill modifies Oklahoma's taxation system, focusing on income tax rates and the State Board of Equalization's certification responsibilities. It introduces a mechanism for automatic income tax rate reductions based on state revenue growth. Specifically, the bill requires the State Board of Equalization to certify revenue estimates and growth in February of 2026 and subsequent years. If state tax collections exceed $400 million (adjusted for inflation every ten years) compared to the previous fiscal year, the marginal income tax rates will automatically decrease by 0.25 percentage points. For individual taxpayers, this means a gradual reduction in income tax rates from the 2024 rates of 0.25% to 4.75% to potential future rates starting in 2025 that range from 0% to 4.5%, depending on revenue growth. The bill also includes a provision that prevents tax rate reductions if a revenue failure is declared. The emergency clause means the law will take effect immediately upon passage, highlighting the legislature's view of the bill's urgency in addressing state taxation.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1&Session=2600