USA – OKLAHOMA Law and Practice Contributed by: Aaron Bundy and Danya Bundy, Bundy
1.6 Stability of Tax Laws Oklahoma tax law is particularly stable in one direc - tion. Under Article 5, Section 33 of the Oklahoma Con - stitution, adopted by the voters in 1992, a revenue- raising bill must pass both legislative chambers by a three-fourths supermajority or be approved by a vote of the people, must originate in the House, and can - not pass in the last five days of session. Tax increases are therefore rare events, and the practical legislative trend for two decades has been reduction. The 2025 session cut the top income tax rate to 4.5% begin - ning in 2026 and set a trigger path toward eventual elimination, with safeguards that pause reductions if revenue fails. For estate planners, the state has not taxed trans - fers at death in more than fifteen years, and clients do not build plans around fear of state tax change. The uncertainty that drives planning is federal. The 2025 federal tax legislation made the USD15 million exemption permanent rather than scheduled to sun - set, although permanence in tax law lasts only until Congress revisits it. That is a reason to build flexibility into irrevocable structures, through broad powers of appointment, trust protectors, directed-trust provi - sions, and the new Uniform Trust Code’s modifica - tion tools. 1.7 Transparency and Increased Global Reporting The United States has not adopted the Common Reporting Standard, and EU DAC 6 has no direct application to purely domestic Oklahoma planning. FATCA applies as federal law to foreign accounts held by US persons, and clients with offshore assets carry the associated reporting burdens. The federal Corporate Transparency Act was sharply narrowed in March 2025, when FinCEN issued an interim final rule exempting domestic companies from beneficial ownership reporting and limiting the regime to foreign reporting companies. The rule has not been finalised as of mid-2026 and litigation continues. Oklahoma maintains no public beneficial ownership register. Limited liability company filings with the Sec - retary of State disclose little about ownership, and trusts are not recorded instruments. The practical exception is real estate. Land records are public, and
should address federal pre-immigration planning with specialist counsel before arrival, and any foreign client should review Oklahoma’s land ownership restrictions before acquiring a home or ranch. 1.5 Taxation of Real Estate Owned by Non- Residents and Non-Citizens Property taxation does not distinguish between resi - dents and non-residents, and ad valorem taxes are assessed locally at the same rates for everyone. For income tax purposes, non-residents pay Oklahoma tax on rents and gains from Oklahoma real estate, and foreign sellers face federal FIRPTA withholding of 15% of the amount realised on disposition. The distinctive Oklahoma issue is not taxation but eli - gibility to own. Under 60 O.S. Section 121, a person who is not a citizen and not a bona fide resident of Oklahoma may not acquire Oklahoma land, whether directly or indirectly through a business entity or trust. 2024 amendments layered on a prohibition aimed at designated foreign government adversaries. Since 1 November 2023, every deed presented for recording must include an affidavit attesting that the grantee is in compliance, and county clerks must reject deeds without one. The statute now expressly excludes oil, gas, and other minerals from the definition of land, so mineral conveyances need no affidavit, and practical exemptions cover corrective deeds, transfer-on-death deeds, security instruments, and transfers under court orders, including probate and divorce decrees. Vio - lations can lead to escheat proceedings, a resident alien who ceases Oklahoma residence has five years to alienate the land, and land passing to a nonresident alien by devise or descent may be held for only five years, a period that turns an ordinary inheritance into a forced sale. Enforcement is real, with many Attorney General for - feiture actions against foreign-controlled land, most tied to illegal marijuana operations. Although com - mentators have flagged constitutional vulnerabilities, no court has invalidated the regime. Indirect owner - ship structures do not solve the problem, because the statute reaches entities and trusts. Foreign clients interested in Oklahoma real estate need this analysis completed before contracting, not at closing.
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