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Oklahoma
State Senate
Communications Division
State Capitol
Oklahoma City, Oklahoma 73105
For Immediate Release: February 21, 2012
Income tax legislation Clears Finance Committee
The Senate Finance Committee has approved two measures reforming
Oklahoma’s income tax laws. Legislation approved by the committee
on Tuesday includes Senate Bill 1623, by Sen. Mike
Mazzei, R-Tulsa, and Senate Bill 1571, by Sen. Clark
Jolley, R-Edmond.
SB 1623 lowers the state income tax over a two-year period and eliminates
most special interest tax preferences. Mazzei said the bill is the
result of the Legislature’s Task Force on Comprehensive Tax
Reform.
“As these measures move through the legislative process, lawmakers
will have ample opportunity for careful consideration and deliberation,”
Mazzei said. “Each bill embodies the belief that lowering
taxes and enabling Oklahomans to keep more of their hard-earned
money while continuing to fund core state functions will result
in job creation and greater economic growth for our state.”
Sen. Clark Jolley, Senate Appropriations Chairman, is author of
SB 1571, also known as the OCPA/Laffer Plan, to phase out the state
income tax.
“The committee vote was a crucial step for all of us who believe
eliminating the income tax is the right thing to do for Oklahoma,”
Jolley said. “Tuesday’s committee action means meaningful
dialogue and debate can continue as we work to create greater prosperity
for our citizens.”
SB1623—SEN. MIKE MAZZEI
• Lowers the personal income tax rate from 5.25% to 4.75%
over two years
• Maintains revenue neutrality by eliminating most special
interest tax preference items
• Eliminates the personal exemption for single filers making
more than $30,000 and joint filers making $50,000 or more
• Reduces the corporate income tax rate from 6% to 5.5%
• Eliminates the franchise tax and allows the business activity
tax to expire
• Maintains revenue neutrality by eliminating corporate tax
credit items
• Establishes a trigger to lower the income tax rate to 4.5%
upon 4% revenue growth.
• FY2013 revenue increase of $3,344,000 (Oklahoma Tax Commission
est.)
• FY2014 revenue decrease of $2,668,000 (Oklahoma Tax Commission
est.)
• FY2015 revenue decrease of $39,000 (Oklahoma Tax Commission
est.)
SB1571—SEN. CLARK JOLLEY
• First year decrease from 5.25% to 2.25%
• Yearly reductions of .25 until income tax eliminated in
2022
• Eliminates all income tax credits, deductions, exemptions
and exclusions for individual income tax filers beginning with tax
year 2013
• No tax imposed on single filers with taxable income of $8,700
or less and for married filers with taxable income of $15,000 or
less
• Addresses dedicated funding for TRS, ROADS, OHLAP and Ad
Valorem Reimbursement from all major tax revenues
• FY2013 revenue decrease of $260 million (Oklahoma Tax Commission
est.)
• FY2014 revenue decrease of $779 million (Oklahoma Tax Commission
est.)
• FY2015 revenue decrease of $1,118 billion (Oklahoma Tax
Commission est.)
Both measures now move to the full Senate for further consideration.
For more information contact:
Sen. Mazzei: (405) 521-5675
Sen. Jolley: (405) 521-5622
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