Many Oklahomans to receive tax cut very soon
OKLAHOMA CITY – Many Oklahomans will be seeing a tax cut very soon.
On Monday Governor Mary Fallin signed an income tax cut measure into law.
Senate Bill 1246 is said to gradually lower Oklahoma’s top income tax rate from 5.25% to 4.85% over several years.
However, the cuts are dependent on revenue triggers, meaning general revenue in Oklahoma must see an increase before the cuts take effect.
Gov. Fallin praised the bill and believes it is a great move for Oklahoma.
“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.”
According to the Office of Governor Mary Fallin, 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.
According to the Tax Commission, approximately 1,726,000 taxpayers will be placed in the top income tax bracket in the 2016 tax year.
The average tax cut at the 4.85% 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 strong 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.”