Get ready, folks, because the clock is ticking on the state grocery tax in Oklahoma City. As of August 29th, Oklahomans can start celebrating the elimination of the state’s portion of the tax. This means that shoppers will finally see some significant savings at the grocery store.
Food, did you know, is the third-largest expense for households, with the average Oklahoma adult spending $2,852 on groceries every year? Regrettably, the cost of necessary grocery items has increased since 2019.
According to the U.S. Census Bureau’s March 2024 data, a significant 60 percent of individuals from Oklahoma have reported facing difficulties in meeting their regular household expenses in the past week. Federal data also reveals that the price of a dozen eggs has doubled, while a loaf of white bread now costs $1.96, representing a substantial 51 percent increase within a span of just four years.
The Oklahoma Legislature took action by passing House Bill 1955 to remove the state sales tax on groceries, offering vital financial relief to those in need. However, it’s important to note that certain items, including ready-to-eat prepared foods, heated foods, and grocery deli items, will still be subject to taxation. To find out which specific items are exempt from the state sales tax, please refer to Oklahoma.gov/tax.html.
The main objective of this tax cut is to provide Oklahomans with more money in their pockets, enabling them to have the freedom to spend it as they wish. By eliminating the state grocery tax, individuals can immediately experience savings without having to navigate through complex policies that take a long time to bring about any noticeable change. Projections suggest that approximately $418 million will be returned to Oklahomans, resulting in an average annual savings of $105.79 per person at the checkout counter.
Since my reelection in 2018, Oklahoma has taken a different approach amidst a trend of increasing taxes in many states. The Legislature has actively worked towards reducing individual income tax from 5 percent to 4.75 percent, as well as lowering corporate income tax. Moreover, the state has recently eliminated the portion of the grocery sales tax.
This is a major achievement in the effort to eliminate the state grocery tax, bringing much-needed relief to Oklahoma families. However, there is still work to be done in order to further alleviate the tax burden on the people of Oklahoma.
Thank you for choosing me to represent District 37. It is a great honor and privilege to serve as your representative at the State Capitol. Please feel free to contact me anytime at 405-557-7355 or ken.luttrell@okhouse.gov if you have any concerns.