OKLAHOMA CITY— Gov. Kevin Stitt on Tuesday signed a bill to eliminate the state’s 4.5% sales tax on groceries.
“This has been in the making for years now,” Stitt said. “I am proud of the bipartisan support that made this possible.”
Oklahoma was among 13 states that taxed groceries, Stitt said.
“To us in leadership, the grocery tax was one of the most regressive taxes that we had,” Stitt said. “It affected people on the lower income bracket much more than people that made a lot of money.”
Stitt said the measure is needed to combat higher inflation.
The measure is expected to reduce state revenue by $418 million a year.
It is the largest single year tax cut in state history, Stitt said.
House Bill 1955 will take effect 90 days after the Legislature adjourns and likely become effective in late August.
The measure does not eliminate the local sales tax on groceries, but prohibits cities and counties from increasing it until July 1, 2025.
Food items prepared to be ready to eat, such as warm pizza and fruit bowls, are not tax exempt.
While House Speaker Charles McCall, R-Atoka, and Stitt are hopeful for additional tax cuts, such as a .25% cut in the income tax, Senate Pro Tem Greg Treat, R-Oklahoma City, said his caucus will not go further this session.
“We went to what we think is the maximum we could do this year and delivered it early,” Treat said.
Stitt is advocating for a pathway to get the state income tax to zero.
This article is from nonprofit news outlet Oklahoma Voice.