Okla. Stat. tit. 62, § 62-34.103

Board of Equalization.

A. In addition to any other duties prescribed by law, at the

meeting required by Section 23 of Article X of the Oklahoma

Constitution to be held in February of 2017, and at the February

meeting of the State Board of Equalization each year thereafter, the

State Board of Equalization shall certify:

1. For the revenue derived from the tax levied on oil pursuant

to Section 1001 of Title 68 of the Oklahoma Statutes, which would

otherwise be apportioned to the General Revenue Fund, the average

annual amount of actual revenue apportioned to the General Revenue

Fund for the immediately preceding five (5) complete fiscal years.

For any year after the first year during which a deposit to the

Revenue Stabilization Fund is made, the amount of any deposit to the

Revenue Stabilization Fund shall be disregarded for purposes of this

paragraph and the average shall be computed using the total amount

of revenue that was available to be apportioned to the General

Revenue Fund for the applicable period of time;

2. For the revenue derived from the tax levied on natural gas

pursuant to Section 1001 of Title 68 of the Oklahoma Statutes, which

would otherwise be apportioned to the General Revenue Fund, the

average annual amount of actual revenue apportioned to the General

Revenue Fund for the previous five (5) fiscal years. For any year

Oklahoma Statutes - Title 62. Public Finance Page 133

after the first year during which a deposit to the Revenue

Stabilization Fund is made, the amount of any deposit to the Revenue

Stabilization Fund shall be disregarded for purposes of this

paragraph and the average shall be computed using the total amount

of revenue that was available to be apportioned to the General

Revenue Fund for the applicable period of time; and

3. For the revenue derived from the corporate income tax levied

pursuant to Section 2355 of Title 68 the Oklahoma Statutes, which

would otherwise be apportioned to the General Revenue Fund, the

average annual amount of actual revenue apportioned to the General

Revenue Fund for the previous five (5) fiscal years. For any year

after the first year during which a deposit to the Revenue

Stabilization Fund is made, the amount of any deposit to the Revenue

Stabilization Fund shall be disregarded for purposes of this

paragraph and the average shall be computed using the total amount

of revenue that was available to be apportioned to the General

Revenue Fund for the applicable period of time.

B. If the amount of revenue available for apportionment to the

General Revenue Fund for the next ensuing fiscal year exceeds the

amounts certified pursuant to paragraph 1 or 2 of subsection A of

this section, with respect to each such revenue source, one hundred

percent (100%) of such amount in excess of the separately computed

five-year average, which would otherwise be apportioned to the

General Revenue Fund, shall be deposited to the credit of the

Revenue Stabilization Fund.

C. If the amount of revenue available for apportionment to the

General Revenue Fund for the next ensuing fiscal year exceeds the

amount certified pursuant to paragraph 3 of subsection A of this

section:

1. Twenty-five percent (25%) of such amount in excess of the

five-year average, which would otherwise be apportioned to the

General Revenue Fund, shall be deposited to the credit of the

Constitutional Reserve Fund unless such deposit would exceed the

maximum balance permitted pursuant to Section 23 of Article X of the

Oklahoma Constitution and in such case the amount in excess of the

maximum balance shall be deposited to the credit of the Revenue

Stabilization Fund; and

2. Seventy-five percent (75%) of such amount in excess of the

five-year average, which would otherwise be apportioned to the

General Revenue Fund, shall be deposited to the credit of the

Revenue Stabilization Fund, together with any amount required for
titution and in such case the amount in excess of the

maximum balance shall be deposited to the credit of the Revenue

Stabilization Fund; and

2. Seventy-five percent (75%) of such amount in excess of the

five-year average, which would otherwise be apportioned to the

General Revenue Fund, shall be deposited to the credit of the

Revenue Stabilization Fund, together with any amount required for

deposit pursuant to the provisions of paragraph 1 of this

subsection.

D. 1. As used in this subsection and as used in subsection D

of Section 2355 of Title 68 of the Oklahoma Statutes:

a. "base year total collections" means the amount of

revenue certified by the State Board of Equalization

Oklahoma Statutes - Title 62. Public Finance Page 134

at its December meeting and includes all revenue

sources reported in the annual report of the Oklahoma

Tax Commission excluding any tax collected by the

Commission from levies imposed by counties, cities,

towns or any other entity of local government, which

for purposes of implementation of any income tax rate

reductions otherwise authorized by this act shall be

the highest preceding total collections amount as

defined by subparagraph b of this paragraph. For

purposes of reporting total collections for purposes

of this subsection, the Oklahoma Tax Commission shall

use the same methodology used to report estimated

revenues to the State Board of Equalization that was

used to make the report for the December 2024 meeting,

b. "highest preceding total collections" means the

largest amount of revenue reported for any single

fiscal year prior to the immediately preceding full

fiscal year, determined by the State Board of

Equalization at its December meeting and including all

revenue sources reported in the annual report of the

Oklahoma Tax Commission excluding any tax collected by

the Commission from levies imposed by counties,

cities, towns or any other entity of local government.

For purposes of reporting total collections for

purposes of this subsection, the Oklahoma Tax

Commission shall use the same methodology used to

report estimated revenues to the State Board of

Equalization that was used to make the report for the

December 2024 meeting,

c. "income tax rate reduction threshold" means the amount

of revenue determined by the Oklahoma Tax Commission

for twelve (12) months comprising a single tax year

predicted to be foregone as a result of any reduction

in income tax rates pursuant to the provisions of this

act, including the provisions of subsection D of

Section 2355 of Title 68 of the Oklahoma Statutes

multiplied by the number one and twenty-five

hundredths (1.25). The income tax rate reduction cost

threshold shall not be less than the amount of revenue

loss attributable to a reduction in the income tax

rates for the previous fiscal year and shall not be

greater than such revenue loss for the previous fiscal

year multiplied by the number one and twenty-five

hundredths (1.25), and

d. "comparison year total collections" means the amount

of revenue determined by the State Board of

Equalization at its December meeting for the

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immediately preceding fiscal year and includes all

revenue sources reported in the annual report of the

Oklahoma Tax Commission excluding any tax collected by

the Commission from levies imposed by counties,

cities, towns or any other entity of local government.

For purposes of reporting total collections for

purposes of this subsection, the Oklahoma Tax

Commission shall use the same methodology used to

report estimated revenues to the State Board of

Equalization that was used to make the report for the

December 2024 meeting.

2. In addition to any other duties prescribed by law, at the

meeting required by Section 23 of Article X of the Oklahoma

Constitution to be held in December of 2026, and at the December
his subsection, the Oklahoma Tax

Commission shall use the same methodology used to

report estimated revenues to the State Board of

Equalization that was used to make the report for the

December 2024 meeting.

2. In addition to any other duties prescribed by law, at the

meeting required by Section 23 of Article X of the Oklahoma

Constitution to be held in December of 2026, and at the December

meeting of the State Board of Equalization each year thereafter, the

State Board of Equalization shall make a preliminary certification:

a. and report the base year total collections, the income

tax rate reduction threshold, and the comparison year

total collections,

b. if the comparison year total collections amount

exceeds the base year total collections amount plus

the income tax reduction cost threshold, the tax rates

otherwise prescribed pursuant to subsection D of

Section 2355 of Title 68 of the Oklahoma Statutes

shall be reduced according to the provisions of

Section 2355 of Title 68 of the Oklahoma Statutes and

any reduction in such rates shall become effective on

the January 1 date following the final February

certification by the State Board of Equalization that

an income tax rate reduction is authorized by the

provisions of this act, and

c. with respect to all subsequent meetings of the Board,

the Board shall make a preliminary finding at its

December meeting each year and, if the requirements of

this act are fulfilled, the State Board shall make a

final determination at its February meeting each year

whether the comparison year total collections exceeds

the base year total collections plus the income tax

reduction cost threshold, and a reduction in the

income tax rates otherwise prescribed pursuant to

paragraphs 1 and 2 of subsection D of Section 2355 of

Title 68 of the Oklahoma Statutes shall be implemented

and any reduction in such rates shall become effective

on the January 1 date following the final February

certification by the State Board of Equalization that

an income tax rate reduction is authorized by the

provisions of this act.

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3. In addition to any other requirements of this act for the

implementation of a reduction of individual income tax rates

pursuant to this subsection and pursuant to subsection E of Section

2355 of Title 68 of the Oklahoma Statutes, at the State Board of

Equalization meeting to be held in December 2026, the State Board

must certify that the revenues accruing to certified funds during

the first five and one-half (5 1/2) months of fiscal year ending

June 30, 2027, were within ninety-five percent (95%) of the estimate

made in February 2026, and no revenue failure was declared.