Bill > HB2730

This bill modifies the interest rate calculations for state tax liabilities in Oklahoma by replacing the previous fixed rate of 1.25% per month with a more dynamic rate tied to the Wall Street Prime rate. Specifically, the bill changes the interest rate for delinquent taxes and estimated tax underpayments to an annual rate calculated by taking the Wall Street Prime rate as of January 1 of the given year and adding three percentage points. This means the interest rate will now fluctuate based on the current prime rate, potentially providing more flexibility and fairness in tax interest calculations. The changes will apply to all tax delinquencies occurring on or after November 1, 2025, including any existing delinquent accounts at that time. The bill maintains existing penalty structures for late tax payments, such as the 10% penalty for taxes not paid within specified timeframes, but updates the underlying interest rate methodology. The goal appears to be creating a more responsive and market-aligned approach to calculating tax interest rates, which could benefit both taxpayers and the Oklahoma Tax Commission by using a more current economic indicator.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2730&Session=2600