Grocery Tax To Be Scrapped for Millions

Oklahoma residents will soon be paying less at the grocery store as the state has eliminated a portion of grocery sales tax.

Lawmakers in the southern state have voted for a bill that will end state-levied grocery sales tax on food and drink purchases. House Bill 1955 was passed in a 42 to 2 vote to eliminate the 4.5 percent tax.

The bill will not go into law for 90 days after the current legislative session adjourns on May 31 as the Senate did not act on its emergency clause, according to a report by The Oklahoman.

According to Oklahoma Senator Greg Treat, who sponsored the bill, Oklahomans will save approximately $104 in taxes per person. Oklahoma has a population of around four million people, according to the U.S. Census Bureau.

The cut would cost the state about $312 million this year, he said to the Oklahoman. As the change will have an effect on the state's gross revenue, he added that the Senate could spend an additional $2 billion this year.

The bill will now proceed to be signed by Republican Governor Kevin Stitt. In a statement issued on his website on February 22, he said: "Today, we get to fulfill a promise to all four million Oklahomans and pass the largest single-year tax cut in Oklahoma history. Cutting the grocery tax means relief for all Oklahomans.

"I'm going to always fight for limited government and lower taxes, and I will still advocate to get us on path to zero income tax. This is a victory I'm excited to celebrate."

Newsweek has contacted the governor for additional comment via email. He also posted the statement on X, formerly Twitter, in the form of a stylized shopping receipt.

Senate minority leader Kay Floyd, a Democrat, gave her backing to the bill, saying her party has "supported and continue to support cutting the state portion of the sales tax on groceries, giving relief to hard-working Oklahomans and their families."

"It has always been our priority—and will remain a priority—for us to protect our revenue base while also advocating for policies that will lower costs for Oklahoma families who need it the most," House minority leader Cindy Munson, a Democrat, said. "By eliminating the state sales tax on groceries, we are accomplishing a goal House Democrats have been working on and supported for many years."

Treat said: "I think the bipartisan nature of the vote showed the people of Oklahoma that we are listening."

But he said there would be no more tax cuts coming for Oklahoma residents this year. "To be clear — this is the only tax relief the Senate will be seeking this year," he said. "To ensure state services and recent critical investments in education and infrastructure remain intact in the long and short term, there is no way to do more at this time."