Oklahoma Says Goodbye to Grocery Tax
On Feb. 28, Oklahoma Gov. Kevin Stitt signed House Bill 1955 into law, eliminating the state portion of the 4.5% grocery tax.
“Oklahomans have waited for this day for years, and I’m proud to be the governor that Oklahomans chose to eliminate the state portion of the grocery tax,” said Stitt. “I’ve called for tax cuts every year since I’ve been in office — and when we see such broad bipartisan support for a bill like this, we know we’re doing something right.”
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Previously, Oklahoma was one of only 13 states that imposed a state tax on groceries.
“Cutting the state portion of the grocery tax has been a priority of mine for several years,” said Senate President Pro Tempore Greg Treat. “I appreciate and applaud the governor for signing this important piece of legislation. Once it takes effect, it will begin to save Oklahomans hundreds of dollars per year at the grocery store. I also appreciate my Senate colleagues and our House counterparts who worked hard to deliver this for everyone.”
Taking effect in late August, House Bill 1955 will not cover all grocery items. Alcoholic beverages, ready-to-eat prepared foods, grocery deli items, dietary supplements, and tobacco and marijuana products are still taxable.
“I would like to thank my colleagues in the House for their tireless work over the past three years, passing multiple tax cut bills to try and help the citizens of our state. Their efforts have made today possible,” noted Speaker Charles McCall. “I would also like to thank Gov. Stitt for his leadership throughout this process and his unwavering support in cutting taxes. He has been an ally and vocal proponent of getting tax relief legislation to his desk, and I am glad we finally got this across the finish line. Our work is not done as we seek to give tax relief to hardworking Oklahomans. The House is continuing to pass meaningful tax relief legislation, and we hope our Senate counterparts will bring it up for a vote on behalf of their constituents. As we have seen, if you bring it up for a vote, it will pass and benefit all the citizens of our state.”
As reported by Kiplinger, the tax cut applies only to the state’s 4.5% portion of sales tax. That being the case, Oklahomans will still pay local sales tax on all types of groceries, which can reach as high as 7% in some areas of the state.
Elevated food prices continue to weigh heavily on consumers across the nation. The Consumer Price Index for food at home rose 0.4% in January, following several months of slight increases in the 0.2% range. Four of the six groups within grocery experienced higher inflation in January: nonalcoholic beverages (up 1.2%), fruits and vegetables (up 0.4%), dairy and related products (up 0.2%) and “other” food at home, such as sugar and sweets, fats, and oils (up 0.6%). On a year-over-year basis, grocery inflation is up 1.2% from the first month of 2023.
WK Kellogg Co CEO Gary Pilnick’s recent suggestion that consumers eat cereal for dinner in a bid to save money on groceries didn’t go over well with shoppers, with some even suggesting a three-month boycott of Kellogg’s products.
