SB 299: Income tax; modifying certain apportionment factor for calculation of Oklahoma taxable income. Effective date. - Oklahoma

Floor (House) → Floor (Senate) · 7 edits

MODERATE

The bill was amended to transition from a House version to a Senate floor version, incorporating committee amendments that clarify how Oklahoma taxable income and adjusted gross income are calculated. Key changes include adjustments to how interest income is treated, modifications to net operating loss carryovers and carrybacks, and updated rules for allocating income from real, tangible personal, and intangible personal property.

Scope change

The bill's scope remains focused on Oklahoma income tax adjustments, but the Senate version adds specific language about how certain income types are allocated and how net operating losses are calculated for different tax years.

DEFINITION

Clarified that taxable income and adjusted gross income must be adjusted to arrive at Oklahoma-specific figures for corporations and individuals.

REQUIREMENT

Added interest income from state obligations that is not otherwise exempted, but only if it is not already included in taxable income and adjusted gross income.

Modified how federal net operating loss deductions are adjusted, with different rules for losses sustained before January 1, 1981, versus after December 31, 1980.

Updated rules for net operating loss carryovers and carrybacks, specifying different timeframes for when losses can be carried back or forward based on the tax year.

Added allocation rules for income from real and tangible personal property, intangible personal property, and gains or losses from sales of such property.

Modified how interest income from investments held to generate working capital for a unitary business enterprise is treated, and how resident trusts and estates are handled.

Added rules for allocating capital or ordinary gains or losses from the sale of an ownership interest in a publicly traded partnership.

Engrossed → Floor (House) · 3 edits

MINOR

The bill was renumbered and reorganized as it moved from Senate to House floor version, with additional sponsors added. The substantive tax law text remains largely unchanged, though some formatting and page references were adjusted during the legislative process.

TECHNICAL

Bill header changed from 'Engrossed Senate' to 'House of Representatives - Floor Version' with updated sponsor list

Page numbering and formatting adjusted to reflect House floor version with new page markers

Added committee amendment notation indicating bold face text denotes changes

Amended And Engrossed → Engrossed · 3 edits · Mar 25, 2025

MINOR

The bill adds new rules for allocating capital gains from selling interests in publicly traded partnerships to the state. This change affects how income from these specific investments is taxed based on the partnership's tangible property location.

Scope change

The bill's scope expanded to include a new category of taxable income (partnership interest sales) that was not previously addressed in the allocation rules.

SCOPE

Added allocation rules for capital gains from selling publicly traded partnership interests, requiring gains to be allocated based on the ratio of the partnership's tangible property in the state versus everywhere.

REQUIREMENT

Established a new threshold where if more than 50% of partnership assets are intangible, different allocation rules apply for those gains.

DEFINITION

Incorporated the definition of 'publicly traded partnership' from Section 7704(b) of the Internal Revenue Code into state tax allocation rules.

Introduced → Amended And Engrossed · 4 edits · Mar 25, 2025

MODERATE

The bill was amended to add House coauthors, update the effective date section, and expand the allocation rules for intangible personal property income. The most significant change is the addition of new provisions clarifying how income from intangible assets (like interest and dividends) should be allocated when those assets have a nonunitary business situs separate from the taxpayer's domicile. This affects how Oklahoma calculates taxable income for businesses with complex asset structures.

Scope change

The bill's scope remains focused on Oklahoma income tax adjustments, but the amendment expands the rules for allocating intangible property income to address situations where assets have acquired a separate business situs apart from the taxpayer's domicile.

DEFINITION

Added new language clarifying that intangible property income should be allocated based on business or commercial situs when the property has acquired a nonunitary business situs separate from the taxpayer's domicile.

REQUIREMENT

Modified the effective date section to include new House coauthors (Maynard and Lepak) and updated the Senate passage date line.

TECHNICAL

Added provisions treating resident trusts and estates as having a separate commercial or business situs for undistributed income, but not for distributed income.

TIMELINE

Added a new subsection for taxable years beginning after December 31, 2003, regarding capital or ordinary gains or losses allocation rules.

Income tax; modifying certain apportionment factor for calculation of Oklahoma taxable income. Effective date.

What changed between versions

How they voted

Actions timeline

Sponsors