Bill > SB383

This bill amends Oklahoma's income tax law, specifically updating Section 2358 of the state tax code to modify various income tax provisions. The most notable addition is a new provision (Section 25) that will exempt income reported as tips from taxable income starting in tax year 2026. The bill makes several technical updates, such as replacing references to "Federal" or "State" with more specific language like "United States" or "Oklahoma" and updating references to the Internal Revenue Code to specify "of 1986, as amended." The bill includes numerous modifications to how different types of income are taxed, including adjustments for retirement benefits, capital gains, and various exemptions for specific types of income or contributions. The changes appear to be primarily technical in nature, with the most significant new provision being the tip income exemption. The bill is set to become effective on November 1, 2025, and will apply to tax year 2026 and subsequent years.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb383&Session=2600