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

Floor (House) → Floor (Senate) · 5 edits

MODERATE

The bill was amended to reflect Senate floor changes, including updating the legislative session date to 2025, adding new sponsors, and modifying the statutory references from 68 O.S. 2021 to 62 O.S. 2021. The core tax provisions remain substantively similar, though the Senate version reorganized the text and adjusted the citation for the State Board of Equalization meeting dates.

Scope change

The bill's scope remains focused on Oklahoma income tax apportionment and revenue stabilization, but the Senate version includes additional sponsors and updates the legislative session reference.

TECHNICAL

Updated the legislative session reference from the 60th Legislature (2025) to reflect the Senate floor version dated April 23, 2025.

Added additional sponsors (Hill, Fetgatter, Townley, Boles, Cantrell, and Howard) to the bill authorship list.

Changed the statutory citation from 68 O.S. 2021, Section 2358 to 62 O.S. 2021, Section 34.103 in the first amendment section.

Updated the State Board of Equalization meeting date from February 2017 to February 2026 in the Senate version.

Reorganized the text structure and formatting of the tax provisions to align with Senate floor markup conventions.

HB1200 (5-07-25) (GRELLNER) FA4.PDF → Floor (House) · 3 edits

MINOR

The bill was converted from a Senate chamber amendment to a House floor version, changing the document structure and removing specific Senate amendment instructions. The substantive tax rate changes (4.75% to 4.5%) were removed from the amendment text, while the core tax apportionment rules remain intact.

Scope change

The bill's scope remains focused on Oklahoma income tax apportionment rules, but the specific Senate amendment instructions for changing tax rates were removed in the House floor version.

TECHNICAL

Senate amendment instructions to change tax rates from 4.75% to 4.5% were removed from the House floor version.

Document header changed from Senate Chamber to House of Representatives Floor Version, indicating the bill moved to the House for consideration.

TIMELINE

Added reference to the 1st Session of the 60th Legislature (2025) to establish the legislative session context.

HB1200 (5-06-25) (RADER) FS FA3.PDF → HB1200 (5-07-25) (GRELLNER) FA4.PDF · 4 edits

MODERATE

The bill text was reformatted from a House substitute version to a Senate floor amendment version. The substantive policy content regarding tax rates and revenue stabilization remains unchanged, though the document now includes Senate amendment markings and procedural notes.

TECHNICAL

Document format changed from House Floor Substitute to Senate Floor Amendment with added amendment markings and procedural information.

Header information updated to reflect Senate Chamber disposition and committee amendment status.

Added Senate amendment procedural notes including submission by Senator Grellner and filing timestamp.

Page numbering and formatting markers changed to reflect Senate amendment process.

HB1200 (5-06-25) (JETT) FA2.PDF → HB1200 (5-06-25) (RADER) FS FA3.PDF · 4 edits

MODERATE

This bill amends Oklahoma's tax code to adjust oil and gas tax rates from 4.7% to 4.25%, modify how revenue is apportioned to the General Revenue Fund, and establish new thresholds for depositing excess revenue into stabilization and reserve funds. The changes also update certification requirements for the State Board of Equalization and introduce a $400 million growth threshold for tax rate reductions.

Scope change

The bill expands the State Board of Equalization's certification duties to include growth threshold monitoring and adjusts the revenue stabilization fund calculation methodology to exclude deposits from the five-year average computation.

FISCAL

Oil and gas tax rates reduced from 4.7% to 4.25% effective for taxable years beginning on or after January 1, 2026.

Revenue stabilization fund calculations now exclude deposits from the five-year average used to determine excess revenue for deposit requirements.

REQUIREMENT

State Board of Equalization must now certify whether tax revenue growth exceeds $400 million since the last tax rate reduction, triggering potential tax rate adjustments.

TIMELINE

New certification requirements established for February 2026 and every ten years thereafter, with inflation adjustments to the $400 million growth threshold.

HB1200 (5-05-25) (DEEVERS) FA1.PDF → HB1200 (5-06-25) (JETT) FA2.PDF · 3 edits

MINOR

The amendment revised the tax rate changes in HB 1200, shifting from adding a 3.75% tax to replacing an existing 4.7% rate with 4.25%, and consolidated the deletion instructions to a single line rather than a multi-line range. This change affects how the tax rate is applied and simplified the amendment language.

Scope change

The amendment's scope was narrowed from affecting multiple lines (6-21) to affecting only line 21, and the tax adjustment changed from an addition to a replacement.

FISCAL

The tax rate adjustment changed from inserting 3.75% after the word 'a' to replacing 4.7% with 4.25% after the letter '(d)'.

TECHNICAL

The amendment instructions were consolidated from a multi-line deletion (lines 6-21) to a single-line deletion (line 21), simplifying the amendment language.

The amendment was updated from Senator Deevers to Senator Jett, reflecting a change in sponsor or drafter.

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

MINOR

This bill amendment modifies Oklahoma's tax certification and revenue stabilization procedures. It adds a Senate chamber disposition header, adjusts the timing of certain tax rate reduction triggers, and introduces a floor amendment process for further modifications to the bill's text.

Scope change

The bill's scope remains focused on tax certification and revenue stabilization, but the amendment introduces procedural changes for Senate floor consideration and modifies specific tax rate reduction thresholds.

PROCEDURAL

Added Senate Chamber disposition header and floor amendment notation to track legislative processing.

TIMELINE

Changed the tax rate reduction trigger from a fixed 2035 date to a dynamic threshold based on actual revenue growth exceeding $400 million since fiscal year 2023.

TECHNICAL

Added floor amendment instructions to modify specific tax rate percentages and delete certain text sections from the income tax provisions.

Engrossed → Senate Committee Substitute for House Bill · 4 edits

MODERATE

The bill was amended to update its title and formatting, change the legislative session reference from 2024 to 2025, and add new sponsors to the House. The substantive policy content regarding tax rates, revenue stabilization, and certification procedures remains unchanged in this version.

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 bill: Fetgatter, Townley, Boles, and Cantrell.

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

Removed the descriptive subject matter tags (revenue and taxation, taxable income, etc.) from the bill header.

Introduced → Engrossed · 6 edits · Mar 5, 2025

MODERATE

This bill amends Oklahoma's tax code to clarify how taxable income is calculated for corporations and individuals, specifically regarding interest income from state obligations, deductions for federally prohibited taxes, and adjustments to federal net operating loss calculations. The changes ensure that certain interest income is added back to taxable income while allowing deductions for amounts the state cannot tax due to constitutional or federal restrictions.

Scope change

The bill applies to all tax years beginning after December 31, 1981, and modifies how net operating losses are carried forward or back based on specific tax year ranges.

REQUIREMENT

Interest income from state obligations that is not otherwise exempted must now be added to taxable income if it was not already included in the taxpayer's income.

Amounts included in income that the state is prohibited from taxing due to federal or state constitutional provisions must be deducted from taxable income.

Federal net operating loss deductions are adjusted based on the tax year, with different rules for losses sustained before January 1, 1981, and after December 31, 1980.

Net operating loss carryovers and carrybacks are calculated differently depending on the tax year, with specific limitations for years beginning after December 31, 2007.

Allocation rules for income from real and tangible personal property remain based on the property's location, while intangible property income is generally allocated based on the taxpayer's domicile.

Capital or ordinary gains or losses from the sale of an ownership interest in a publicly traded partnership are allocated to Oklahoma based on the ratio of the partnership's tangible property in the state to its total tangible property.

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

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