Municipal taxation; requiring the withholding of municipal collections upon determination the municipality is obstructing enforcement of immigration law. Effective date.

SB 1123 requires Oklahoma's Tax Commission to withhold municipal tax collections from cities or towns determined by the Attorney General to be obstructing federal immigration enforcement. If such a determination is made, the Tax Commission must place those funds into a special account instead of distributing them to the municipality. The bill amends existing tax collection rules to create this exception, directly affecting municipalities found in violation of immigration law enforcement cooperation. This policy change shifts control of municipal tax revenue during enforcement disputes.