Senate Bill 648 Summary

• Amends Oklahoma income tax law (68 O.S. 2011, Section 2352) to modify how income tax revenue is apportioned among various state funds beginning in fiscal year 2014.

• For FY 2014 and beyond, establishes a variable percentage (instead of fixed 85.66%) of income tax revenue to be apportioned to the General Revenue Fund, to be determined based on Ad Valorem Reimbursement Fund deposits.

• Triggers a revenue shift mechanism: if the Ad Valorem Reimbursement Fund receives less than $30 million in deposits during a fiscal year, the General Revenue Fund apportionment decreases by 1% and the Ad Valorem Reimbursement Fund apportionment increases by 1% for the following fiscal year.

• Applies the same apportionment adjustment mechanism to subsection (2) revenues, reducing General Revenue Fund allocations from 77.50% to 76.50% when Ad Valorem fund deposits fall below $30 million.

• Effective July 1, 2013, with emergency declaration for immediate implementation.