Melissa Jacques
Tulsa World Capitol Bureau Staff Writer
OKLAHOMA CITY — The Oklahoma Legislature has eliminated the grocery sales tax, but don’t expect an immediate price drop or no sales tax at all.
Gov. Kevin Stitt is scheduled to sign the bill into law on Tuesday.
When will this go into effect?
The governor has shared his excitement about signing House Bill 1955, but it won’t go into effect immediately. The bill was passed without an emergency clause attached, so it will go into effect 90 days after the Legislature adjourns on May 31, meaning Oklahomans will get relief from the state grocery sales tax around Aug. 29.
What products will this affect?
The bill removes the 4.5% state sales tax on all food and food ingredients, including candy, soft drinks and bottled water.
People are also reading…
The sales tax will still apply to marijuana, tobacco products and alcohol. The 4.5% sales tax will also apply to dietary supplements such as vitamins and minerals, and it will still apply to prepared foods.
Beer and premade pizza will still be taxed by the state under these carve-outs.
Prepared food is any food that is made or heated on site, so rotisserie chicken, items from the grocery store bakery, and meals packaged by the store will not be exempt from the state sales tax.
Lou Lewis helps a customer check out in the prepared food section at a Reasor’s supermarket in 2017. House Bill 1955 removes the 4.5% state sales tax on food and food ingredients at grocery stores, but the tax will still apply to premade food.
What will this tax cut do for Tulsans?
Because the state sales tax on groceries is the only tax being eliminated, the county and local sales taxes will still apply. People in Tulsa County will see a decrease in their sales tax costs, though there will be variation from city to city.
This bill also contains a yearlong moratorium, ending June 30, 2025, on cities and counties raising or creating a sales tax or excise tax on “food and food ingredients.” So, until June 2025, these rates can’t be increased.
Could the grocery tax come back?
The state sales tax on groceries would be tough to revive. State Question 640, which was passed by Oklahomans in 1992, amended the Oklahoma Constitution to require a three-quarter majority in both legislative chambers to pass a tax increase. This makes raising taxes more difficult than cutting taxes for lawmakers in Oklahoma.
How large is this tax cut for Oklahomans?
Terminating the tax will take a $370.3 million bite out of state revenue, according to an estimate attached to the legislation. But House Speaker Charles McCall, who wrote the bill, said in a written statement: “With the passage of House Bill 1955, the Legislature has managed to give Oklahomans the largest single-year tax cut in state history, returning $411 million to our citizens at a time when they need it the most.”
An estimate shared on a press release about the bill said the state grocery tax cut will save Oklahomans an average of $400 annually.
The new Tulsa World app offers personalized features. Download it today.
Users can customize the app so you see the stories most important to you. You can also sign up for personalized notifications so you don't miss any important news.
If you're on your phone, download it here now: Apple Store or Google Play
