Residents in Oklahoma will soon enjoy reduced grocery expenses following the state’s decision to remove a portion of the grocery sales tax. Lawmakers in Oklahoma recently approved House Bill 1955. The bill was passed in a 42 to 2 vote to abolish the 4.5 percent state-levied tax on food and drink purchases.
The bill won’t take effect until 90 days after the current legislative session concludes on May 31. This is because the Senate neglected to address its emergency clause, as reported by The Oklahoman. Oklahoma Senator Greg Treat, who sponsored the bill, estimates that each Oklahoman will save some money. According to him, Oklahomans will save roughly $104 in taxes. The state’s population stands at approximately four million, according to the U.S. Census Bureau.
With the estimated population, the tax reduction is estimated to cost the state about $312 million this year, as reported to the senator. Highlighting its impact on the state’s gross revenue, he mentioned that the Senate could allocate an additional $2 billion this year.
The bill will then proceed to be endorsed by Republican Governor Kevin Stitt.
In a statement released on his website on February 22, he said, “Today, we fulfill a pledge to all four million Oklahomans by enacting the largest single-year tax reduction in Oklahoma’s history. Cutting the grocery tax offers relief to all Oklahomans”.
“I remain committed to advocating for limited government and reduced taxes and will persist in efforts to get us towards zero income tax. This triumph is one I am eager to celebrate,” the governor said. The governor shared the statement on X, formerly known as Twitter. He presented it in the format of a stylized shopping receipt.
Senate minority leader Kay Floyd, a Democrat, backed the bill. She said that her party has supported and will continue to support the ongoing commitment to reduce the state’s sales tax on groceries. They will continue to aid hard-working Oklahomans and their families.
It has been and will always be our priority to safeguard our revenue base. We will always do this while advocating for policies to reduce expenses for Oklahoma families most in need.” Cindy Munson, the Democratic House minority leader, made this statement.
“By removing the state sales tax on groceries, we are achieving a long-standing objective supported by House Democrats for years,” she further stated.
Treat remarked, “The bipartisan nature of the vote shows our responsiveness to the people of Oklahoma.”
He stated that Oklahoma residents shouldn’t expect any further tax reductions this year. “Just to clarify, this is the sole tax relief initiative the Senate will pursue this year,” he said. “We have to ensure state services and recent critical investments in education and infrastructure remain intact in the long and short term. To achieve this, additional tax reduction measures are currently not feasible.”