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Bill > SB227
OK SB227
OK SB227Taxation; modifying and limiting certain credits, deductions, and exemptions; modifying income tax rate for certain years. Effective date. Emergency.
summary
Introduced
02/03/2025
02/03/2025
In Committee
02/04/2025
02/04/2025
Crossed Over
Passed
Dead
Introduced Session
2025 Regular Session
Bill Summary
An Act relating to taxation; stating intent; amending 68 O.S. 2021, Section 1001.3a, as amended by Section 9, Chapter 346, O.S.L. 2022 (68 O.S. Supp. 2024, Section 1001.3a), which relates to exemptions from gross production tax; limiting exemption to certain years; 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. 2024, Section 2355), which relates to income tax; modifying certain income tax rate for certain tax years; modifying certain withholding requirement for certain tax years; amending 68 O.S. 2021, Section 2357.4, which relates to tax credit for investments; limiting credit to certain tax years; 68 O.S. 2021, Section 2357.43, which relates to the Oklahoma earned income tax credit; limiting refundability of credit to certain tax years; amending 68 O.S. 2021, Section 2358, as last amended by Section 155, Chapter 452, O.S.L. 2024 (68 O.S. Supp. 2024, Section 2358), which relates to adjustments; modifying amount of deduction for qualifying gains receiving capital treatment for certain tax years; modifying standard deduction amount for certain tax years; amending 68 O.S. 2021, Section 5011, which relates to the Sales Tax Relief Act; limiting claims to certain years; updating statutory references; updating statutory language; clarifying statutory language; providing for noncodificaton; providing an effective date; and declaring an emergency.
AI Summary
This bill modifies various aspects of Oklahoma's tax code, focusing on income tax rates, credits, and deductions for tax years 2024 and 2025. It reduces income tax rates for individuals across different filing statuses, with rates dropping from a previous maximum of 5.50% to 4.75% in 2024 and further reducing to 4.25% in 2025. The bill limits and modifies several tax credits and exemptions, including the gross production tax exemption for oil and gas leases (restricting it to calendar years 2022 through 2024), and the earned income tax credit (making it non-refundable after 2024). For qualifying capital gains, the bill provides a 100% deduction through 2024, which will be reduced to 50% in 2025. The legislation also adjusts standard deductions, increasing them significantly in 2025 to $15,000 for single filers, $30,000 for joint filers, and $22,500 for heads of household. Additionally, the bill limits sales tax relief claims to calendar year 2024, with no claims allowed for 2025 and subsequent years. The bill aims to reduce the tax burden on Oklahoma taxpayers while managing state revenue collections, with most changes taking effect on July 1, 2025.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Coauthored by Senator Paxton (on 02/26/2026)
Official Document
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