OK SB132

Increases Oklahoma income tax exemption for Armed Forces retirement benefits from 75% (up to $10,000) to 100% (up to $12,000) starting January 1, 2016.

Maintains the prior exemption level of 75% or $10,000 (whichever is greater) for tax years 2006-2015 to phase in the increased exemption.

Exemption applies to retirement benefits received from any component of the U.S. Armed Forces but does not include other retirement income sources.

Effective date is November 1, 2011 for the bill's enactment.