Bill > SB60

This bill modifies certain apportionment factors for determining Oklahoma taxable income, specifically changing how businesses calculate their state income tax liability. For tax year 2025 and previous years, businesses will continue to use the traditional three-factor apportionment method that considers property, payroll, and sales. However, for tax year 2026 and subsequent years, the bill mandates that businesses will apportion their net income solely based on the sales factor. This means that a company's Oklahoma taxable income will be calculated by determining what percentage of their total sales occur within the state. The bill also makes several technical amendments to existing tax law, such as updating references to the Internal Revenue Code and clarifying language around various tax calculations. The change in apportionment methodology could potentially impact how much state income tax certain businesses will owe, depending on their sales and operations in Oklahoma. The bill is set to become effective on November 1, 2025, giving businesses and tax authorities time to prepare for the new apportionment approach.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb60&Session=2500