Bill > SB297

This bill amends Oklahoma's income tax law to make several updates and modifications to existing tax provisions. The bill updates references from "Federal" to "United States" and "State" to "Oklahoma" throughout the existing law, and makes various technical corrections to terminology. The most significant changes include adding a new provision that will exempt tip income reported on IRS Form 4137 from state taxable income starting in tax year 2026, which could benefit service workers who receive gratuities. The bill also makes several minor technical updates to language related to references to the Internal Revenue Code, ensuring that references consistently include "of 1986, as amended" when citing federal tax regulations. The effective date of these changes is set for November 1, 2025, which means the new provisions will primarily impact tax returns filed in 2026 and subsequent years. The bill continues Oklahoma's practice of making incremental, precise adjustments to its state income tax code to align with federal tax changes and address specific state tax policy goals.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb297&Session=2600