The Senate Oklahoma this week passed legislation that would lower the state’s income tax rate to below 5 percent if the state’s economy continues to improve.
NFIB/Oklahoma supports the legislation. Many entrepreneurs and small-business owners pay taxes at the individual rate.
Sen. Brian Bingman, Senate president and sponsor of the legislation, said, “We believe this year’s budget shortfall is an anomaly and anticipate revenue growth in the years to come as our state’s economy continues to grow. We believe the taxpayers of Oklahoma deserve to have some of that growth returned to them to spend how they see fit.
Senate Bill 1246 reduces the state’s income tax rate from 5.25 percent to 5 percent as soon as our state’s fiscal environment returns to the level it was last year when the Legislature and governor first agreed to the tax reduction.
The legislation additionally mirrors language from last year’s House Bill 2032 (which was overturned by the court) that would put in place a further cut in the rate to 4.85 percent once the economic conditions and growth revenue allow for such a cut.