OKLAHOMA CITY, Okla. — The State Senate passed House Bill 1955 by a vote of 42-2. If signed by Gov. Stitt, this would eliminate the state’s portion of the sales tax collected on groceries.
Support was growing at the state capitol again for the complete elimination of the state’s portion of the sales tax collected on groceries.
The cut is being proposed as an alternative Oklahomans would actually feel in their real lives instead of a smaller income tax cut that would give them money back in their paychecks, but it would only be the equivalent of a few more dollars per check.
State Senator Greg Treat (R-Edmond) who leads the State Senate and the Senate GOP Supermajority released a statement Tuesday “doubling down” on his support for the elimination of the state’s portion of the grocery sales tax.
“With the average Oklahoman spending nearly $300 per trip to the grocery store and prices continuing to rise, we need to do what we can to help Oklahomans now,” said Treat. “Cutting the state portion of the grocery tax makes sense and will provide relief to all Oklahomans.”
The announcement came out on the same day two reports were released about the state of the economy and inflation. The U.S. Bureau of Labor Statistics announced inflation rose last month by nearly four percent from last year. State lawmakers also received a report on sales tax estimates that showed Oklahomans were averaging $300 per trip at the grocery store.
“I am hoping my colleagues will come together on this plan and we can pass it, get it signed, and get Oklahomans immediate relief every time they buy groceries for their families,” Treat said.
Governor Kevin Stitt said at his weekly news conference last week that he would easily support the elimination of the state’s portion of the grocery sales tax if it got to this desk. He even said he preferred that tax cut as opposed to his previous ask of a .25% income tax cut for all.
“I’ve always said it’s a regressive tax, let’s get rid of it,” Stitt said.
Stitt said he supported the cut because the current tax hits poor families the hardest, and it also falls more in line with his plans to keep government spending under control and at current levels.
“That’s a $400 million cut to revenue as opposed to just a cut of $100 million. So I’d like to see how they deal with that,” Stitt said about his disappointment in no tax cuts being passed during his previous two special session requests.
Stitt scolded lawmakers for increasing spending when they passed last year’s state budget.
The Oklahoma House of Representatives has passed both the .25% income tax cut and bills to eliminate the state’s portion of the grocery sales tax, but they have both been stalled in the State Senate.
Treat said his caucus was waiting for state budget data to see what tax cuts could be afforded without cutting services at state agencies also dealing with inflation.
“We are not opposed to tax cuts,” Treat told FOX23 News last month. “We just want to make sure we understand just how much that will cost.”
All bills to eliminate the state’s portion of the sales tax on groceries would leave in place city and county sales taxes on groceries. Those taxes are used mainly for public safety services like police and fire protection.
Treat has his bill pending in the State Senate (Senate Bill 1238), but Stitt said the Senate should pass House Bill 1955, also pending in the State Senate, that he said would provide immediate relief.
Oklahomans should keep in mind when it comes to any bill passed, it doesn’t mean everything at the grocery store would be subjected to fewer taxes. Some of the bills being proposed exclude prepared hot items ready for immediate consumption, as well as wine and beer will continue to have liquor taxes on them.