SB 102 Oklahoma Senate · 2026 Regular Session

Income tax; excluding certain compensation to certain nonresidents; prohibiting requirement of employers to withhold taxes from certain compensation. Effective date.

SB 102 modifies Oklahoma's income tax code to exclude certain income from nonresident workers who spend limited time in the state. Specifically, it excludes compensation for nonresidents working in Oklahoma for less than 30 days per year if their total earnings from that work are $20,000 or less, effective for tax years starting in 2026. This applies directly to temporary workers, contractors, or short-term business visitors with minimal Oklahoma presence. The change simplifies tax calculations for these individuals by removing their limited-service income from Oklahoma taxable income.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 3, 2025 Last action Feb 23, 2026

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What changed between versions

Introduced → Committee Substitute · 5 edits

MODERATE

SB 102 was revised from an Introduced version to a Committee Substitute, expanding its scope from solely amending Section 2362 (nonresident taxable income) to also amending Sections 2385.2 and 2385.3 (withholding requirements). The bill now includes new definitions for 'professional athlete', 'professional entertainer', and 'public figure', and adds an exemption for nonresidents working 30 days or fewer in Oklahoma during tax year 2027 and later, with exceptions for athletes, entertainers, and public figures.

Scope change

The bill's scope expanded from only addressing nonresident taxable income calculation to also covering withholding requirements, and added specific exemptions for short-term nonresident workers while creating exceptions for certain high-profile individuals.

SCOPE

Added amendments to Sections 2385.2 and 2385.3 regarding withholding requirements, which were not present in the original Introduced version.

DEFINITION

Created new definitions for 'professional athlete', 'professional entertainer', and 'public figure' to clarify who is excluded from the short-term worker exemption.

ELIGIBILITY

Added an exemption for nonresidents working 30 days or fewer in Oklahoma during tax year 2027 and later, but this exemption does not apply to professional athletes, entertainers, or public figures.

TIMELINE

Changed the effective date for the new nonresident exemption from 2026 to 2027, and updated the general tax year reference from 1994 to include 'and subsequent tax years'.

TECHNICAL

Reorganized subsection lettering in Section 2362 (e.g., changed B to B.C., C to C.D., etc.) and updated the requirement number from 615 to 2408.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 23, 2026

Committee

Referred to Appropriations

upper

Feb 23, 2026

Upper · Passed

Reported Do Pass, amended by committee substitute Revenue and Taxation committee; CR filed

upper

Feb 3, 2025

Introduced

First Reading

upper

2 primary · 0 co-sponsors