The Oklahoma State Senate today passed the "Oklahoma Tax Reduction and Simplification Act," a tax measure first proposed by Governor Mary Fallin in her February State of the State address. Fallin's plan reduces the top income tax rate from 5.25% to 3.5%, simplifies the tax code by reducing the total number of tax brackets from seven to three, and eliminates many tax credits and tax exemptions. The plan also provides for the eventual elimination of the state income tax, with additional yearly reductions of .25% to the tax rate linked to a 5% rate of growth in state tax revenue collections.
"I am grateful to the Senate for passing the "Oklahoma Tax Reduction and Simplification Act,' as well as their continued focus on tax relief and reform," Fallin said. "This is one of several tax cut bills that has now passed in both the House and Senate, and it is clear that a majority of our legislators are committed to responsibly reducing the income tax burden in Oklahoma."
"In the coming days and weeks, it is my hope that a substantial tax cut deal is reached in the course of comprehensive budget negotiations between the Legislature and governor's office. During these negotiations, my office will continue to push for the largest tax cut possible coupled with a reduction in outdated tax credits and an overall simplification of the tax code."
The bill is numbered HB 3061 and is sponsored by House Speaker Kris Steele and Senate President Pro Tem Brian Bingman. It will now go to a joint conference committee.