ENGROSSED SENATE BILL 1437 - Summary

• Modifies Oklahoma individual income tax rates for taxable years beginning January 1, 2013 and later, reducing the top marginal rate from 5.50% to 5.25% (initially) and eventually to 4.50% for 2016 and subsequent tax years.

• Establishes a multi-year tax rate schedule: 5.25% effective in 2012, maintained through 2015, then reduced to 4.50% in 2016 if revenue conditions permit.

• Reduces the corporate income tax rate from 6% to 5% for taxable years beginning January 1, 2013 and thereafter.

• Makes the 4.50% individual income tax rate contingent upon determinations by the State Board of Equalization based on General Revenue Fund growth and fiscal impact analyses compared to specified benchmark amounts.

• Becomes effective January 1, 2013.