Signed by Governor Mary Fallin

Vote Smart's Synopsis:

Vote to pass a bill that amends state personal income tax rates.

Highlights:

• Increases the top marginal state income tax rates for single individuals, married individuals filing separately, married individuals filing jointly, and a surviving spouse for the 2015 tax year as follows (Secs. 1 & 2):
• From 5 percent to 5.50 percent; or
• From 5 percent to 5.25 percent if authorized by the State Board of Equalization.

• Requires the Board to authorize the 5.25 percent tax rate if the Board finds that the total General Revenue Fund estimate for the following fiscal year is equal to or greater than the estimated revenue lost by the increase in standard deduction plus 4 percent (Secs. 1 & 2).

• Amends the top marginal state income tax rates for single individuals, married individuals filing separately, married individuals filing jointly, and a surviving spouse for the 2016 tax year and all subsequent tax years as follows (Secs. 1, 2, 4 & 5):
• Existing law:
• 5 percent; or
• 4.85 percent if authorized by the Board.
• New law:
• 5 percent if authorized by the Board; or
• 4.85 percent if authorized by the Board.

• Requires the Board to authorize the 5 percent tax rate if the Board finds that the total Fund estimate for fiscal year 2016 is equal to or greater than the total Fund estimate for fiscal year 2014 (Sec. 4).

• Prohibits the Board from authorizing the 5 percent tax rate if the Board finds that the total Fund estimate for fiscal year 2016 is not equal to or greater than the total Fund estimate for fiscal year 2014 (Sec. 4).

• Specifies that if the Board finds that the revenue computations do not authorize the 5 percent tax rate beginning with calendar year 2016, such procedures shall be repeated by the Board for each successive 2 year comparison until the rate is implemented (Sec. 4).

• Requires the Board to further authorize a reduced tax rate from 5 percent to 4.85 percent if the Board finds that the amount of estimated revenue growth in the Fund beginning the following fiscal year is equal to or greater than the estimated revenue lost from decreasing the tax rate by .15 percent (Sec. 5).

• Prohibits the Board from authorizing the 4.85 percent tax rate if the Board finds that the total revenue growth in the Fund estimate beginning the following fiscal year is not equal to or greater than the estimated revenue lost from decreasing the tax rate by .15 percent (Sec. 5).

• Specifies that if the Board finds that the revenue computations do not authorize the 4.85 percent tax rate, such procedures shall be repeated by the Board for each successive 2 year comparison until the rate is implemented (Sec. 4).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends state personal income tax rates.

Highlights:

• Increases the top marginal state income tax rates for single individuals, married individuals filing separately, married individuals filing jointly, and a surviving spouse for the 2015 tax year as follows (Secs. 1 & 2):
• From 5 percent to 5.50 percent; or
• From 5 percent to 5.25 percent if authorized by the State Board of Equalization.

• Requires the Board to authorize the 5.25 percent tax rate if the Board finds that the total General Revenue Fund estimate for the following fiscal year is equal to or greater than the estimated revenue lost by the increase in standard deduction plus 4 percent (Secs. 1 & 2).

• Amends the top marginal state income tax rates for single individuals, married individuals filing separately, married individuals filing jointly, and a surviving spouse for the 2016 tax year and all subsequent tax years as follows (Secs. 1, 2, 4 & 5):
• Existing law:
• 5 percent; or
• 4.85 percent if authorized by the Board.
• New law:
• 5 percent if authorized by the Board; or
• 4.85 percent if authorized by the Board.

• Requires the Board to authorize the 5 percent tax rate if the Board finds that the total Fund estimate for fiscal year 2016 is equal to or greater than the total Fund estimate for fiscal year 2014 (Sec. 4).

• Prohibits the Board from authorizing the 5 percent tax rate if the Board finds that the total Fund estimate for fiscal year 2016 is not equal to or greater than the total Fund estimate for fiscal year 2014 (Sec. 4).

• Specifies that if the Board finds that the revenue computations do not authorize the 5 percent tax rate beginning with calendar year 2016, such procedures shall be repeated by the Board for each successive 2 year comparison until the rate is implemented (Sec. 4).

• Requires the Board to further authorize a reduced tax rate from 5 percent to 4.85 percent if the Board finds that the amount of estimated revenue growth in the Fund beginning the following fiscal year is equal to or greater than the estimated revenue lost from decreasing the tax rate by .15 percent (Sec. 5).

• Prohibits the Board from authorizing the 4.85 percent tax rate if the Board finds that the total revenue growth in the Fund estimate beginning the following fiscal year is not equal to or greater than the estimated revenue lost from decreasing the tax rate by .15 percent (Sec. 5).

• Specifies that if the Board finds that the revenue computations do not authorize the 4.85 percent tax rate, such procedures shall be repeated by the Board for each successive 2 year comparison until the rate is implemented (Sec. 4).

Full Bill Text