OKLAHOMA CITY — A second legislative committee has passed a bill that would eliminate the state sales tax on groceries, moving it closer to becoming law.
Senate Bill 1495, by Senate Pro Tem Greg Treat, R-Oklahoma City, passed the Senate Appropriations Committee on Wednesday by a vote of 19-2.
The bill had passed the Senate Finance Committee on Feb. 15 by a vote of 12-0 and had to go through the Appropriations Committee before consideration by the full Senate and going on to the House of Representatives.
The measure would not affect what taxes cities and counties assess, Treat said.
The state rate is 4.5%, and with the loss of that income, the measure would cost the state about $300 million in sales tax revenue when fully implemented.
“Tax cuts while federal money is flowing in scares me to death,” said Sen. J.J. Dossett, D-Owasso. “We have done it before and had a hard time after.”
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Because of State Question 640, which voters approved in 1992, raising taxes in Oklahoma requires either a supermajority in both legislative chambers or a vote of the people. Therefore, increasing taxes when state coffers are running low is a difficult undertaking. But Treat said the bill would provide tax relief to Oklahomans while inflation is at an all-time high. He said people need help purchasing basic necessities.
Dossett and Sen. Dewayne Pemberton, R-Muskogee, cast the two dissenting votes.
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