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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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