Senate Bill 1085, authored by state Sen. Nathan Dahm, will create a checkoff box to allow individuals to donate all or a portion of their state income tax refund or make a direct donation to the state General Revenue Fund (GRF).
“We’re facing a historic revenue shortfall because of the tumbling energy prices and other economic factors. Some have criticized the legislature and governor saying the state’s debt is because of past decisions and that we should or shouldn’t have taken certain actions like reducing the income tax rate,” said Dahm, Broken Arrow-33 (R). “This new law will provide those individuals the opportunity to donate their income tax refund back to the state since they claim they are very willing to pay more in taxes. It’ll be interesting to see how much money is actually donated.”
The Tax Commission indicates the establishment of an income tax checkoff for the benefit of the GRF may result in a minimal increase in revenue to the fund. There was nearly $122,000 donated in FY’15 by taxpayers to the various existing income tax checkoffs, with the largest designation receiving approximately $26,000.
The new law will go into effect January 1, 2017.