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68-2355.


68-2355.
   
   A. Individuals. Except as otherwise provided in Section 3 of this act,
   for all taxable years beginning after December 31, 1998, a tax is
   hereby imposed upon the Oklahoma taxable income of every resident or
   nonresident individual, which tax shall be computed at the option of
   the taxpayer under one of the two following methods:
   
   1. METHOD 1.
   
   a. Single individuals and married individuals filing separately not
   deducting federal income tax:
   
   (1) 1/2% tax on first $1,000.00 or part thereof,
   
   (2) 1% tax on next $1,500.00 or part thereof,
   
   (3) 2% tax on next $1,250.00 or part thereof,
   
   (4) 3% tax on next $1,150.00 or part thereof,
   
   (5) 4% tax on next $1,300.00 or part thereof,
   
   (6) 5% tax on next $1,500.00 or part thereof,
   
   (7) 6% tax on next $2,300.00 or part thereof, and
   
   (8) (a) for taxable years beginning after December 31, 1998, 6.75% tax
   on the remainder, or
   
   (b) for taxable years beginning after December 31, 1999, for which the
   State Board of Equalization suspends the provisions of subdivision (a)
   of this division pursuant to the provisions of Section 3 of this act,
   7% tax on the remainder.
   
   b. Married individuals filing jointly and surviving spouse to the
   extent and in the manner that a surviving spouse is permitted to file
   a joint return under the provisions of the Internal Revenue Code and
   heads of households as defined in the Internal Revenue Code not
   deducting federal income tax:
   
   (1) 1/2% tax on first $2,000.00 or part thereof,
   
   (2) 1% tax on next $3,000.00 or part thereof,
   
   (3) 2% tax on next $2,500.00 or part thereof,
   
   (4) 3% tax on next $2,300.00 or part thereof,
   
   (5) 4% tax on next $2,400.00 or part thereof,
   
   (6) 5% tax on next $2,800.00 or part thereof,
   
   (7) 6% tax on next $6,000.00 or part thereof, and
   
   (8) (a) for taxable years beginning after December 31, 1998, 6.75% tax
   on the remainder, or
   
   (b) for taxable years beginning after December 31, 1999, for which the
   State Board of Equalization suspends the provisions of subdivision (a)
   of this division pursuant to the provisions of Section 3 of this act,
   7% tax on the remainder.
   
   2. METHOD 2.
   
   a. Single individuals and married individuals filing separately
   deducting federal income tax:
   
   (1) 1/2% tax on first $1,000.00 or part thereof,
   
   (2) 1% tax on next $1,500.00 or part thereof,
   
   (3) 2% tax on next $1,250.00 or part thereof,
   
   (4) 3% tax on next $1,150.00 or part thereof,
   
   (5) 4% tax on next $1,200.00 or part thereof,
   
   (6) 5% tax on next $1,400.00 or part thereof,
   
   (7) 6% tax on next $1,500.00 or part thereof,
   
   (8) 7% tax on next $1,500.00 or part thereof,
   
   (9) 8% tax on next $2,000.00 or part thereof,
   
   (10) 9% tax on next $3,500.00 or part thereof, and
   
   (11) 10% tax on the remainder.
   
   b. Married individuals filing jointly and surviving spouse to the
   extent and in the manner that a surviving spouse is permitted to file
   a joint return under the provisions of the Internal Revenue Code and
   heads of households as defined in the Internal Revenue Code deducting
   federal income tax:
   
   (1) 1/2% tax on the first $2,000.00 or part thereof,
   
   (2) 1% tax on the next $3,000.00 or part thereof,
   
   (3) 2% tax on the next $2,500.00 or part thereof,
   
   (4) 3% tax on the next $1,400.00 or part thereof,
   
   (5) 4% tax on the next $1,500.00 or part thereof,
   
   (6) 5% tax on the next $1,600.00 or part thereof,
   
   (7) 6% tax on the next $1,250.00 or part thereof,
   
   (8) 7% tax on the next $1,750.00 or part thereof,
   
   (9) 8% tax on the next $3,000.00 or part thereof,
   
   (10) 9% tax on the next $6,000.00 or part thereof, and
   
   (11) 10% tax on the remainder.
   
   B. Nonresident aliens. In lieu of the rates set forth in subsection A
   above, there shall be imposed on nonresident aliens, as defined in the
   Internal Revenue Code, a tax of eight percent (8%) instead of thirty
   percent (30%) as used in the Internal Revenue Code, with respect to
   the Oklahoma taxable income of such nonresident aliens as determined
   under the provision of the Oklahoma Income Tax Act.
   
   Every payer of amounts covered by this subsection shall deduct and
   withhold from such amounts paid each payee an amount equal to eight
   percent (8%) thereof. Every payer required to deduct and withhold
   taxes under this subsection shall for each quarterly period on or
   before the last day of the month following the close of each such
   quarterly period, pay over the amount so withheld as taxes to the Tax
   Commission, and shall file a return with each such payment. Such
   return shall be in such form as the Tax Commission shall prescribe.
   Every payer required under this subsection to deduct and withhold a
   tax from a payee shall, as to the total amounts paid to each payee
   during the calendar year, furnish to such payee, on or before January
   31, of the succeeding year, a written statement showing the name of
   the payer, the name of the payee and his social security account
   number, if any, the total amount paid subject to taxation, and the
   total amount deducted and withheld as tax and such other information
   as the Tax Commission may require. Any payer who fails to withhold or
   pay to the Tax Commission any sums herein required to be withheld or
   paid shall be personally and individually liable therefor to the State
   of Oklahoma.
   
   C. Corporations. For all taxable years beginning after December 31,
   1989, a tax is hereby imposed upon the Oklahoma taxable income of
   every corporation doing business within this state or deriving income
   from sources within this state in an amount equal to six percent (6%)
   thereof.
   
   There shall be no additional Oklahoma income tax imposed on
   accumulated taxable income or on undistributed personal holding
   company income as those terms are defined in the Internal Revenue
   Code.
   
   D. Certain foreign corporations. In lieu of the tax imposed in the
   first paragraph of subsection C of this section, for all taxable years
   beginning after December 31, 1989, there shall be imposed on foreign
   corporations, as defined in the Internal Revenue Code, a tax of six
   percent (6%) instead of thirty percent (30%) as used in the Internal
   Revenue Code, where such income is received from sources within
   Oklahoma, in accordance with the provisions of the Internal Revenue
   Code and the Oklahoma Income Tax Act.
   
   Every payer of amounts covered by this subsection shall deduct and
   withhold from such amounts paid each payee an amount equal to six
   percent (6%) thereof. Every payer required to deduct and withhold
   taxes under this subsection shall for each quarterly period on or
   before the last day of the month following the close of each such
   quarterly period, pay over the amount so withheld as taxes to the Tax
   Commission, and shall file a return with each such payment. Such
   return shall be in such form as the Tax Commission shall prescribe.
   Every payer required under this subsection to deduct and withhold a
   tax from a payee shall, as to the total amounts paid to each payee
   during the calendar year, furnish to such payee, on or before January
   31, of the succeeding year, a written statement showing the name of
   the payer, the name of the payee and his social security account
   number, if any, the total amounts paid subject to taxation, the total
   amount deducted and withheld as tax and such other information as the
   Tax Commission may require. Any payer who fails to withhold or pay to
   the Tax Commission any sums herein required to be withheld or paid
   shall be personally and individually liable therefor to the State of
   Oklahoma.
   
   E. Fiduciaries. A tax is hereby imposed upon the Oklahoma taxable
   income of every trust and estate at the same rates as are provided in
   subsection A of this section for single individuals. Fiduciaries are
   not allowed a deduction for any federal income tax paid.
   
   F. Tax rate tables. For all taxable years beginning after December 31,
   1991, in lieu of the tax imposed by subsection A of this section,
   there is hereby imposed for each taxable year on the taxable income of
   every individual, whose taxable income for such taxable year does not
   exceed the ceiling amount, a tax determined under tables, applicable
   to such taxable year which shall be prescribed by the Tax Commission
   and which shall be in such form as it determines appropriate. In the
   table so prescribed, the amounts of the tax shall be computed on the
   basis of the rates prescribed by subsection A of this section. For
   purposes of this subsection, the term "ceiling amount" means, with
   respect to any taxpayer, the amount determined by the Tax Commission
   for the tax rate category in which such taxpayer falls.
   

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