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

SB 1123 requires Oklahoma municipalities to enter into tax collection agreements with the state Tax Commission. If the Attorney General determines a municipality is obstructing immigration law enforcement, the Tax Commission must withhold that municipality’s tax collections and place them in a special account instead of remitting funds. This directly affects cities or towns that the state deems impeding immigration enforcement, as their local tax revenue would be held until the issue is resolved. The bill modifies existing tax collection procedures to create this withholding mechanism upon official determination. It does not change tax rates or create new taxes, but alters how municipal tax funds are handled based on immigration enforcement compliance.