Fallin and Shannon proposed a reduction of the top personal income tax rate from 5.25 percent to 5 percent, effective Jan. 1. Senate Republicans rewrote the proposal and called for reducing the top personal income tax rate to 4.95 percent, taking effect in 2015. It also ends the practice of five popular economic tax credits being sold to others who need to reduce their income tax liability to the state.
The latest income tax agreement does not involve tax credits, but Bingman said changes to some tax credits would be pursued in other legislation.
Senate 1062 still would change Oklahoma's workers' compensation from a judicial system to an administrative one. It still includes language that would allow certain businesses to opt out of the workers' compensation system as long as they provide equivalent benefits to injured workers.