Bill > HB2764

This bill modifies Oklahoma's revenue and taxation laws, focusing primarily on income tax rates and the State Board of Equalization's certification process. The bill establishes a mechanism for potential automatic income tax rate reductions based on state revenue performance. Specifically, for tax years 2024 and 2025, the bill sets lower income tax rates compared to previous years, with single filers and married couples having progressively lower tax brackets. For tax year 2026 and beyond, the bill introduces a new tax rate structure with the potential for further reductions. The key mechanism for these reductions is tied to the State Board of Equalization's annual certification of state revenues. If the "comparison year total collections" exceed the "base year total collections" plus an "income tax rate reduction threshold," the tax rates will be automatically reduced by 0.25 percentage points until they potentially reach zero percent. However, these reductions cannot occur if a revenue failure is declared. The bill also requires the State Board of Equalization to perform preliminary analyses in December 2025 and February 2026 to prepare for implementing these potential tax rate changes, and mandates cooperation from state government entities to support this process. The bill is set to become effective on November 1, 2025.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2764&Session=2600