OKLAHOMA CITY (AP) — Legislation that would trim Oklahoma's personal income tax rate when state revenue increases has been approved by the state House.
House members voted 54-40 for the Senate-passed measure that is one of Republican Gov. Mary Fallin's top goals for the 2014 Legislature. It now goes to Fallin to be signed into law.
The measure will reduce the personal income tax rate from 5.25 percent to 5 percent in 2016 if state revenue projections are greater than projections in December 2014.
If growth continues, then a second reduction will take place lowering the rate from 5 percent to 4.85 percent no sooner than two years after the 5 percent rate is enacted, providing that there is sufficient revenue to cover the cost of the reduction.