SJR 61 Summary

• Establishes the Oklahoma Business Activity Tax Code effective for tax years 2010-2012, imposing an annual $25 base tax plus 1% tax on net revenue from business activity allocated to Oklahoma.

• Creates a revenue-neutral mechanism replacing franchise tax and ad valorem taxes on intangible personal property for most businesses, except public service corporations, air carriers, and railroads.

• Provides tax credits and discounts for smaller businesses, with 100% discount for net revenue under $50,000, declining to 20% discount for net revenue between $200,000-$250,000.

• Declares a moratorium on franchise tax and certification fee payments for tax periods July 1, 2010 through June 30, 2013.

• Establishes a 21-member Task Force on Comprehensive Tax Reform to review and recommend amendments to the tax code, with a final report due January 1, 2012; the tax code expires December 31, 2012 unless made permanent by the Legislature.