Governor Fallin today signed an income tax cut measure into law.
Senate Bill 1246 will gradually lower Oklahoma’s top income tax rate from 5.25 percent to 4.85 percent over several years. The cuts are dependent on revenue triggers, meaning general revenue in Oklahoma must see an increase before the cuts take effect.
“This is a responsible, measured tax cut that will make Oklahoma more economically competitive while providing much needed tax relief to working families,” said Fallin. “If Oklahoma wants to attract and retain good jobs – rather than losing them to neighboring states – we must improve our tax climate. I am proud that the Legislature has taken action to do so and I am happy to sign this bill into law.
“This tax cut will put more than $200 million annually into the economy and make Oklahoma a better place to do business, meaning more opportunities and jobs for Oklahoma families and more revenue for core government services.”
SB 1246 affects Oklahoma’s top income tax bracket, which applies to individuals earning more than $8,700 a year or couples earning more than $15,000 a year. The Tax Commission estimates that approximately 1,726,000 taxpayers will be placed in the top income tax bracket in tax year 2016, resulting in a tax cut to 63 percent of all returns filed under SB 1246.
The average tax cut at the 4.85 percent rate will be $158 per year.
“Most Oklahomans will receive a tax cut from this legislation,” said Fallin. “But every Oklahoman will benefit from a stronger economy and a state that is more attractive to work, live and invest in. SB 1246 responsibly lays the foundation for sustained economic growth, job creation and the long term growth of state revenue.”
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