HB 1200: Revenue; taxation rates; income; exemptions; deductions; effective date. - Oklahoma

Floor (House) → Floor (Senate) · 6 edits

MODERATE

The bill was amended to reflect Senate floor changes, updating the legislative session date to April 23, 2025, and adding additional sponsors (Hill, Fetgatter, Townley, Boles, Cantrell, and Howard) to the House bill. The core statutory text remains largely unchanged, with the Senate version adopting the House's proposed amendments to Oklahoma tax law regarding revenue stabilization and apportionment factors.

Scope change

The bill's substantive scope regarding tax law amendments remains unchanged; the Senate version incorporates the House's proposed changes to the Oklahoma Tax Code.

TECHNICAL

Updated legislative session date from '1st Session of the 60th Legislature (2025)' to 'April 23, 2025' in the Senate version header.

Added additional House sponsors (Hill, Fetgatter, Townley, Boles, and Cantrell) and Senate sponsor (Howard) to the bill's sponsor list.

Changed the bill classification from 'HOUSE BILL 1200' to 'COMMITTEE SUBSTITUTE FOR ENGROSSED HOUSE BILL NO. 1200' to reflect Senate amendments.

Updated the citation in Section 1 from '68 O.S. 2021, Section 2358' to '62 O.S. 2021, Section 34.103' to reflect the correct statutory section being amended.

TIMELINE

Changed the constitutional meeting date reference from 'February of 2017' to 'February of 2026' in the Senate version.

REQUIREMENT

Modified the threshold for tax rate reductions from 'Four Hundred Million Dollars ($400,000,000.00) in growth, until a reduction in the marginal tax rates occurs' to 'exceeds Four Hundred Million Dollars ($400,000,000.00) in growth' with a specific effective date of July 1, 2035.

HB1200 (5-07-25) (GRELLNER) FA4.PDF → Floor (House) · 5 edits

MODERATE

The bill was converted from a Senate floor amendment to a House floor version, changing the document format and authorship. The substantive tax provisions remain unchanged, with the House version now listing sponsors from both chambers and presenting the full enacted text rather than amendment instructions.

Scope change

The bill's scope remains focused on Oklahoma income tax calculations, but the document format changed from Senate amendment instructions to a complete House floor version with full statutory language.

TECHNICAL

Changed from Senate Chamber amendment format to House of Representatives Floor Version format

Added House bill sponsors (Maynard, Kendrix, Lepak, Burns, and Rader) instead of Senate sponsor

Removed Senate amendment instructions and committee amendment sections

Added complete statutory text with page headers and section numbers

SUBSTANTIVE

Core tax calculation provisions regarding interest income, deductions, net operating losses, and apportionment factors remain identical

HB1200 (5-06-25) (RADER) FS FA3.PDF → HB1200 (5-07-25) (GRELLNER) FA4.PDF · 3 edits

MINOR

The bill was amended to change the corporate income tax rate from 4.75% to 4.5% and to update the threshold for tax rate reductions from $400 million to an inflation-adjusted amount. This affects how much tax corporations pay and when tax rate reductions occur.

Scope change

The bill's scope remains focused on Oklahoma corporate income tax, but the specific tax rate and reduction thresholds have been modified.

FISCAL

Corporate income tax rate reduced from 4.75% to 4.5%

REQUIREMENT

Tax rate reduction threshold changed from fixed $400 million to inflation-adjusted amount

TIMELINE

Updated reference dates for tax rate reduction triggers

HB1200 (5-06-25) (JETT) FA2.PDF → HB1200 (5-06-25) (RADER) FS FA3.PDF · 5 edits

MODERATE

This floor amendment modifies Oklahoma's tax bill HB 1200 by changing the tax rate from 4.7% to 4.25%, updating revenue certification procedures, and establishing new thresholds for depositing excess revenue into stabilization funds. The amendment also introduces a $400 million growth threshold for tax rate reductions and adjusts the timeline for revenue certification meetings.

Scope change

The bill's scope expanded to include new revenue certification requirements and modified thresholds for revenue stabilization fund deposits.

FISCAL

Tax rate reduced from 4.7% to 4.25% on oil, natural gas, and corporate income taxes

Established $400 million growth threshold for triggering tax rate reductions and revenue stabilization fund deposits

Changed revenue stabilization fund deposit percentages from 100% to 25% for Constitutional Reserve Fund and 75% for Revenue Stabilization Fund

REQUIREMENT

New revenue certification procedures requiring the State Board of Equalization to certify revenue estimates and growth thresholds

TIMELINE

Updated revenue certification meeting dates from 2017 to 2026, with inflation-adjusted thresholds every ten years starting in 2035

HB1200 (5-05-25) (DEEVERS) FA1.PDF → HB1200 (5-06-25) (JETT) FA2.PDF · 2 edits

MINOR

The amendment changed the specific page and line numbers where tax rate modifications are applied, and updated the sponsor's name from Senator Deevers to Senator Jett. The substantive tax rate changes remain the same, but the amendment instructions were revised to reference different locations in the bill text.

TECHNICAL

Amendment instructions changed from Page 12, Line 4 to Page 12, Line 12 for inserting a 3.75% tax rate, and from Lines 6-21 to Line 21 for deleting 4.7% and inserting 4.25%.

Amendment sponsor name changed from Senator Deevers to Senator Jett with updated filing timestamp.

Senate Committee Substitute for House Bill → HB1200 (5-05-25) (DEEVERS) FA1.PDF · 3 edits

MINOR

The bill was amended to add a floor amendment that modifies tax rate calculations and removes specific language regarding individual income tax provisions. The changes adjust how revenue thresholds are calculated for the Revenue Stabilization Fund and alter the timing for tax rate reductions.

Scope change

The bill's scope was modified to include specific floor amendments that change how tax revenue thresholds are calculated and removed language related to individual income tax provisions.

REQUIREMENT

Added a requirement to insert a specific tax rate of 3.75% in the individual income tax section.

Removed language specifying the tax rate calculation period for individual income tax, which previously covered taxable years beginning after December 31, 1998, and before January 1, 2006.

TIMELINE

Changed the threshold adjustment timeline from every ten years starting July 1, 2035, to a different calculation method based on Consumer Price Index changes.

Engrossed → Senate Committee Substitute for House Bill · 3 edits

MINOR

The bill was amended to update the title page information, change the legislative session reference from the 2024 session to the 2025 session, and add new sponsors to the House and Senate. The substantive policy content regarding tax rates, revenue stabilization, and apportionment rules remains unchanged in this diff.

Scope change

The bill's scope and applicability remain the same; only administrative metadata and sponsorship information were updated.

TECHNICAL

Updated the legislative session reference from the 1st Session of the 60th Legislature (2024) to the 1st Session of the 60th Legislature (2025).

Added new sponsors to the House (Fetgatter, Townley, Boles, and Cantrell) and Senate (Rader) to the bill sponsorship list.

Changed the bill title from 'ENGROSSED HOUSE' to 'COMMITTEE SUBSTITUTE FOR ENGROSSED HOUSE BILL 1200'.

Introduced → Engrossed · 5 edits · Mar 5, 2025

MODERATE

This bill amends Oklahoma's income tax law to update how taxable income is calculated, particularly regarding interest income, net operating loss deductions, and apportionment rules for different types of income. The changes clarify how interest from state obligations is treated, adjust how federal net operating losses are carried forward or back, and modify allocation rules for various income sources like real property, intangible assets, and partnership interests.

Scope change

The bill modifies the scope of Oklahoma's income tax calculations to align with updated federal tax rules and clarify allocation methods for different income types, affecting corporations and individuals filing state tax returns.

REQUIREMENT

Updated rules for adding interest income from state obligations that is not otherwise exempt, clarifying it should be included when not already in taxable income.

Revised how federal net operating loss deductions are adjusted, with different rules for losses carried to years before 1981 versus those after December 31, 1980.

Changed net operating loss carryback periods, limiting carrybacks to two years for tax years beginning after December 31, 2008, while maintaining different rules for earlier years.

Updated allocation rules for partnership interest sales, specifying how gains or losses are allocated based on tangible property costs when intangible assets exceed 50% of partnership value.

DEFINITION

Adjusted terminology to replace 'net operating loss' and 'taxable income' with 'Oklahoma net operating loss' and 'Oklahoma taxable income' in specific contexts to distinguish state from federal calculations.

Revenue; taxation rates; income; exemptions; deductions; effective date.

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