Bill > SB46

This bill amends Oklahoma's income tax law by adding a new provision that allows taxpayers to subtract state and local income tax refunds from their adjusted gross income for tax year 2026 and subsequent tax years. Specifically, the bill adds a new paragraph to the existing tax code that permits taxpayers to deduct the amount of state or local income tax refunds, credits, or offsets as reported on federal income tax Form 1099-G when calculating their Oklahoma adjusted gross income. This change means that when taxpayers receive a refund of previously paid state or local income taxes, they can reduce their taxable income by the amount of that refund, potentially lowering their overall state tax liability. The bill will take effect on November 1, 2025, meaning it will first apply to tax returns filed in 2026 for the 2025 tax year.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb46&Session=2600