SB 1246 Summary

• Eliminates the expiration date for the 5.25% top marginal individual income tax rate that was set to expire in 2014, making it permanent for tax years 2009 and beyond.

• Creates a new 5% top marginal individual income tax rate for tax years beginning January 1, 2016, contingent upon the State Board of Equalization making a favorable revenue determination by comparing General Revenue Fund estimates from February 2013 to fiscal year 2016 projections.

• Establishes a further reduced 4.85% top marginal individual income tax rate for tax years beginning after the 5% rate becomes effective, also contingent upon State Board of Equalization revenue determinations comparing estimated revenue growth to income tax revenue loss projections.

• Requires the State Board of Equalization to conduct biennial comparisons at December and February meetings to determine if revenue conditions permit implementation of the lower tax rates, with specific procedures outlined for two-year rolling evaluations.

• Repeals Section 3, Chapter 253, O.S.L. 2013, which previously implemented a top marginal income tax rate of 4.85% beginning in 2015.