Implementation of 5% top marginal rate.

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A. The provisions of this section shall be applicable with respect to the implementation of the five percent (5%) top marginal rate of individual income tax otherwise authorized pursuant to the provisions of subparagraph (f) of paragraphs 1 and 2 of subsection C of Section 2355 of Title 68 of the Oklahoma Statutes, which shall be contingent upon a determination by the State Board of Equalization made by a comparison described by this section which shall be conducted until the income tax rate of five percent (5%) is effective.

B. In addition to any other duties prescribed by law, at the meeting required by paragraph 1 of Section 23 of Article X of the Oklahoma Constitution to be held in December 2014, and for any subsequent December meeting of the State Board of Equalization, if the five percent (5%) top marginal income tax rate prescribed by subparagraph (f) of paragraphs 1 and 2 of subsection C of Section 2355 of Title 68 of the Oklahoma Statutes has not become effective, the State Board of Equalization shall compare:

1. The total General Revenue Fund proposed estimate for fiscal year 2014 which was certified at the State Board of Equalization meeting held in February 2013; and

2. The total General Revenue Fund proposed estimate for fiscal year 2016, or if the five percent (5%) top marginal income tax rate prescribed by subparagraph (f) of paragraphs 1 and 2 of subsection C of Section 2355 of Title 68 of the Oklahoma Statutes has not become effective, the fiscal year for which the Board is certifying a proposed estimate.

If the amount determined pursuant to the provisions of paragraph 2 of this subsection is equal to or greater than the amount determined pursuant to the provisions of paragraph 1 of this subsection, the Board shall make a finding that the revenue computations required by this section will authorize the implementation of the five percent (5%) top marginal income tax rate prescribed by subparagraph (f) of paragraphs 1 and 2 of subsection C of Section 2355 of Title 68 of the Oklahoma Statutes beginning on the second January 1 following the December meeting.

If the amount determined pursuant to the provisions of paragraph 2 of this subsection is less than the amount determined pursuant to the provisions of paragraph 1 of this subsection, the Board shall make a finding that the revenue computations required by this section will not authorize the implementation of the five percent (5%) top marginal income tax rate prescribed by subparagraph (f) of paragraphs 1 and 2 of subsection C of Section 2355 of Title 68 of the Oklahoma Statutes beginning on the second January 1 following the December meeting.

C. If the Board makes a finding that the revenue computations required by this section do not authorize the implementation of the 5% top marginal income tax rate prescribed by of subparagraph (f) of paragraphs 1 and 2 of subsection C of Section 2355 of Title 68 of the Oklahoma Statutes beginning with calendar year 2016 pursuant to the provisions of subsection B of this section, such procedures shall be repeated by the State Board of Equalization for each successive two-year comparison until the rate is implemented.

Added by Laws 2014, c. 195, § 4.


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