Tax cuts on groceries, income taxes, advance through state Senate panel

House Bill 3349 would put a two-year exemption on the 4.5% state sales tax on groceries. The measure would not affect what cities and counties assess, so some sales taxes would still be charged on groceries.

The measure, which passed the House on March 22, passed the Senate Finance Committee on Tuesday by a vote of 9-0 and now heads to the Senate Appropriations Committee.

HB 3350, which also passed the Senate Finance Committee on Tuesday, would cut the state’s income tax rate by another 0.25 percentage points. Last year, lawmakers reduced the top rate, which most Oklahomans pay, from 5 percent to 4.75 percent.

Senate Pro Tem Greg Treat, R-Oklahoma City, said the measure would take effect in January if approved.

Sen. Carri Hicks, D-Oklahoma City, asked why lawmakers were considering the measure at this time.

“I think people know best how to use their money, and we need to constrain the growth of government,” Treat said.

He also said the state is currently seeing record revenue collections.

Hicks said she was concerned about the measure because it takes a supermajority in both chambers to increase taxes should state revenues take a downturn.

The measure passed by a vote of 8-2 and also goes to the Senate Appropriations Committee.

The Senate Finance Committee also passed House Bill 3351, which would provide a tax credit of up to $1,000 per child per year for parents who donate to supplement a classroom teacher’s income. The total amount of tax credits from all parents could not exceed $5 million per year.

Sen. Adam Pugh, R-Edmond, was asked about potential conflicts of interest.

Pugh said he didn’t think teachers or coaches who also teach would show preferential treatment to students whose parents donated to them.

Opponents also are concerned that the bill would widen the discrepancies between wealthier and poorer school districts.

Hicks said she agreed that classrooms needed additional resources, but she said she didn’t like the bill’s approach.

It could result in reduced school foundation funding, and some high-poverty districts would not see a benefit, she said.

The measure passed by a vote of 7-2 and also goes on to the Senate Appropriations Committee.