Budget & Taxes

SB 323 amends Oklahoma's individual income tax code to establish new tax rates for tax years beginning January 1, 2024. It directly affects Oklahoma residents and nonresidents filing individual income tax returns. The bill creates a tiered rate structure: for single filers and married filing separately, it sets rates from 0.25% on the first $1,000 up to 4.75% on income above $6,200. This replaces prior rates (which had a top rate of 5.50% for 2008-2008), reducing the highest marginal tax rate for most filers.

HB 1372 temporarily lowers the gross production tax rate for oil and gas from existing wells (spudded before the law's effective date) to 5% for 36 months, instead of the standard 7%. It also creates two new tax exemptions: 1) 5 years of tax-free production for secondary/tertiary recovery projects approved after July 2022, and 2) a 24-month tax exemption for wells using recycled water (proportional to recycled water usage). For orphaned wells, producers must post a $25,000 surety bond per well to qualify for a 50% tax reduction for 36 months. The bill sets annual refund limits of $15 million for recovery projects and $10 million for recycled water exemptions, requiring producers to apply for refunds through the Tax Commission.