However, predicting the future revenue loss of corporate tax is difficult because Fallin describes this tax as “one of the most volatile sources of revenue.”
In the last decade, Corporate Income Tax accumulated as little as $105 million in 2004, and as much as $452 million in 2013, according to the Oklahoma Office of Management and Enterprise Services. This means the tax has contributed between 2.3 percent to 8.1 percent of the state budget.
Overall, for taxpayers, the elimination of the Corporate Income Tax means either less resources for state agencies or creating new streams of revenue. The 2018 Executive Budget presents taxing services to compensate.
So, who pays Corporate Income Tax?
A corporation is a more complex business structure, a chartered legal entity, according to the Oklahoma Secretary of State.
Every partnership, corporation, resident estate and trust and nonresident estate and trust with Oklahoma source income is required to file and Oklahoma income tax return.
Only six states do not levy a corporate income tax; Texas, South Dakota, Wyoming, Nevada, Washington and Ohio. In Oklahoma, corporations pay six percent flat tax rate.
Currently, corporations are required to make quarterly estimated tax payments if the liability is expected to exceed $500 or more, and taxpayers who fail to file are charged interest.
The corporate income tax affects incorporated companies, not LLC’s, partnerships or sole proprietorships.
We help business owners who are launching their business determine the right business structure for their goals. If you have a business and have a question about taxes give us a call at 844-841-9857 to schedule your free consultation. We're open 8am-5pm Central.