Sept. 27, 2022 video via Gov. Stitt's Youtube page. The governor asked the state legislature to pass legislation on the issue during the upcoming special session.
OKLAHOMA CITY — Gov. Kevin Stitt’s call that lawmakers eliminate the grocery tax when they return Wednesday in special session on another matter was dead on arrival in the Senate.
Lawmakers return to the Capitol to finish a special session to dole out more than $1 billion in American Rescue Plan Act funds and $250 million from a fund to bolster rural economic development.
Stitt held a news conference on the south steps of the Capitol on Tuesday to ask residents to call lawmakers to seek the elimination of the 4.5% state sales tax on groceries to help deal with inflation.
But the Senate on Friday said it would be working only on the ARPA money and economic development issues.
Stitt is running for his second term, and polls show that his lead is narrowing.
People are also reading…
“President Biden’s inflation crisis is out of control, and the Democrats in Washington are showing no signs of slowing down their spending spree,” Stitt said.
Stitt said hardworking residents are losing money in their retirement plans, delaying retirement and paying more for gas, groceries, energy and everyday items.
“The bottom line — everything is more expensive, and Oklahomans are hurting,” he said.
Stitt said that because the state has $3 billion in savings and a projected $1 billion surplus next year, the state can provide fiscally responsible inflation relief now.
Lawmakers met in June in a special session called by Stitt on inflation relief. The House sent the Senate several tax-cut measures, including elimination of the state sales tax on groceries. The House then ended the special session.
The Senate said that because the House had ended the session, it could not take up the bills.
The House, however, disagreed with that assessment.
The Senate appointed a panel to study the issue of tax reform.
“As we enter a recession, we must remember just a few short years ago we were scrambling with a $1.3 billion shortfall,” said Senate Pro Tem Greg Treat, R-Oklahoma City. “We must be mindful and do tax cuts the right way.
“That is why I have appointed a tax policy working group. The members of this group are making serous strides to a long-term, sustainable plan to responsibly cut and reform taxes in our state.”
Stitt said he didn’t think the state was on the brink of a recession, saying Oklahoma is in a great situation.
Oklahoma is one of 13 states that tax groceries, Stitt said, adding that he has called to end the grocery tax since 2019. Both the House and the Senate have passed bills to get that done, he said.
“Eliminating it can save families hundreds each year,” Stitt said.
Lawmakers are returning to spend $2 billion, Stitt said. The least they can do, he said, is pass a bill to eliminate the grocery tax.
