The revenue triggers included in the bill would ensure that the state continues to lower its income tax rates when revenues meet certain benchmarks over time. A reduction to 4.5 percent would continue to improve Oklahoma’s competitive edge, bringing the state closer to neighboring Colorado’s 4.4 percent and even further below the national median of 5 percent. Oklahoma’s current top rate of 4.75 percent is the ninth lowest of states that levy a wage individual income tax, tied with North Carolina. If all were enacted, Oklahoma’s overall rank on the State Business Tax Climate Index would break into the top 10, improving from 23 rd to 9 th (absent policy changes from other states). ![]() House Bill 2695 would repeal the state’s franchise tax House Bill 2285 would create a flat income tax of 4.5 percent, with revenue triggers for additional rate reductions in the future and House Bill 1375 would repeal the state’s throwback rule and shift the state’s apportionment formula from three-factor to single sales factor. Those efforts, however, were not wasted, as they appear to be on the verge of paying off this year with a package of bills that would significantly improve Oklahoma’s competitiveness at a time when residents and businesses are more mobile than ever. Tax reform was front of mind for Oklahoma lawmakers during the 2022 legislative session, but major structural reforms didn’t cross the finish line.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |