OKLAHOMA CITY (KFOR) — On Wednesday, State Senator Michael Bergstrom (R-Adair) filed a tax reform proposal aimed at gradually lowering the state income tax in Oklahoma.
If passed, the newly-filed Senate Bill 1 would initially reduce the state's marginal income tax by 0.25 percentage points across all tax brackets, then tie future reductions to the state's revenue growth.
If the total state revenue increases by at least $400 million in comparison to the previous fiscal year, another 0.25 percentage point decrease would be triggered. This would continue until the income tax rate reaches zero.
In addition to the gradual cuts, the $400 million benchmark will be adjusted every ten years to account for inflation starting in 2035.
“I’m proud to champion a policy that supports hardworking Oklahomans and promotes economic growth,” Bergstrom said. “This measured, step-by-step approach ensures that our state remains on a sound financial footing while giving families and businesses more of their hard-earned money back.”
SB 1 may be considered when the 2025 legislative starts on February 3.
