TULSA, Okla. — Oklahoma House Minority Leader Emily Virgin introduced House Bill 3621 which would eliminate the 4.5% state sales tax on groceries.
The tax would be reduced in phases, 3% starting July 1, 2022, 1.5% starting July 1, 2023, and full exemption from state sales tax July 1, 2024.
HB3621 unanimously passed the House Appropriations and Budget Subcommittee on Finance on Wednesday.
“We know that now more than ever people need that relief,” Virgin said.
While the bill would cut the state sales tax, Virgin says it would not affect the county or city portion of the tax.
“We want to make sure those funds are preserved. They use them for things like fire, police, public safety,” said Virgin.
She says the state sales tax on groceries goes into the general revenue fund where they use the money for programs funded by the state.
She says it’s good timing to phase out the tax now, because we’re in a good fiscal situation across Oklahoma.
“We should also make sure that since we’re in this good economic situation, this good fiscal situation, we should give some of that money back to folks in the form of this sales tax relief,” she says.
Oklahoma is one of only 13 states that charge sales tax on groceries.
Shopper Starr Hayes, from Michigan, doesn’t pay sales tax on groceries where she lives.
“I just couldn’t envision people who are impoverished and struggling already to buy groceries having to pay an additional tax on groceries and food that’s a necessity. That’s ridiculous,” said Hayes.
For shopper Diontrae Hayes, she says eliminating the state sales tax will help families across our area.
“I think if you eliminate the sales tax, it frees up money for people to be able to invest in other things that they need,” said Hayes.
HB3621 has to go to the full Appropriations and Budget Committee, a vote on the House floor, then the same process in the State Senate before it’s approved.
Virgin says she’s hopeful it’ll pass this session because there’s some bipartisan support.
Oklahoma Gov. Kevin Stitt talked about eliminating the state sales tax on groceries in his State of the State address.
Senator Greg Treat, President Pro Tempore, also authored a bill that would cut the grocery sales tax.
The City of Broken Arrow released a statement about the push to remove the state sales tax on groceries.
“It is our understanding that local sales tax will not be impacted by the bills proposing elimination of state sales tax on groceries. However, we are currently analyzing these bills and we will continue to monitor the legislative process as they advance through the State Capitol. Approximately $10 million dollars is generated annually from grocery sales here in Broken Arrow. Without question this is a significant and necessary amount to fund essential city services like Public Safety, Parks and Recreation, and Community Development to ensure Broken Arrow maintains its high quality of life. Grocery receipts represent 17 percent of the $59 million dollars generated in sales tax collections for the city last fiscal year.”
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