Bill > SB306

This bill establishes the Taxpayer Protection Act, a comprehensive legislative effort by Oklahoma to challenge federal taxation and assert state sovereignty. The bill creates a new Federal Tax Fund in the state treasury where all federal tax withholdings and payments will be collected, and requires Oklahoma employers and taxpayers to remit federal tax forms and payments to the Oklahoma Tax Commission instead of directly to the Internal Revenue Service (IRS). The legislation fundamentally argues that the federal tax system is unconstitutional, citing the Tenth Amendment and claiming the IRS improperly consolidates legislative, executive, and judicial powers. Under the bill, the Tax Commission will review tax filings, deposit funds into the new revolving fund, and ultimately file federal forms on behalf of taxpayers. Critically, the bill allows the state to cease quarterly disbursements to the U.S. Treasury if state officials determine that federal tax regulations are unconstitutional, with the Legislature having the power to vote on the constitutionality of any federal sanctions. The bill also nullifies any federal fines or penalties imposed for compliance with this act and mandates that state officers, including the Governor, must implement the law regardless of federal opposition. The Taxpayer Protection Act is set to become effective on November 1, 2025, representing a significant challenge to federal tax authority from the state of Oklahoma.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb306&Session=2600