HB 1551 Summary

• Amends Oklahoma corporate income tax rates effective January 1, 2016, changing from a flat 6% rate to match the highest individual income tax rate under subsection C of Section 2355.

• Corporate tax rate will be either 5% or 4.85% depending on State Board of Equalization determinations, with the rate based on filing status but not applied cumulatively.

• Modifies foreign corporation tax rates from a flat 6% to the same variable rate structure as applied to corporations, with withholding and reporting requirements adjusted accordingly.

• Eliminates the requirement that individual taxpayers be allowed to deduct federal income taxes paid when calculating Oklahoma taxable income.

• Changes the starting date for the corporate tax rate modification from December 31, 1989 to December 31, 2015.