On Thursday, the Senate passed the House’s measure to get rid of the state grocery tax!
Oklahoma is currently one of only 13 states that still has a sales tax on groceries, but House Bill 1955 would eliminate the 4.5% state portion of the tax. Our House Fiscal staff estimates that Oklahomans will each see a savings of $105.79 per year once this takes effect in August. This bill is particularly important because it is equitable to all taxpayers. Since everybody must buy groceries, HB1955 saves money for everybody!
The House passed this bill in March 2023, and it’s been sitting in the Senate ever since, despite widespread support from our citizens. The Senate finally put HB1955 up for a vote this week and it passed 42-2!
The sales tax reduction will apply to all groceries, but there are certain items that are still taxable, such as alcoholic beverages, dietary supplements and tobacco and marijuana products.
The bill also outlines certain “prepared foods” as still being taxable by the state. These items include hot food, which is defined as food sold after it is heated by the seller or food that is sold frozen or cold but is then heated by the seller.
Other items that are still taxable are hot drinks like cocoa, coffee or tea, cold drinks sold with meals or with eating utensils, any food sold with eating utensils, prepared sandwiches, and other food or drinks that can be eaten immediately without further preparation by the purchaser. The sales tax exemption also does not include items from a vending machine or food created by combining two or more food ingredients that are sold as one item, like salad or salsa.
HB1955 only deals with the state grocery sales tax, so local and county sales taxes will still be collected. Municipalities depend heavily on sales tax in Oklahoma, so we don’t want to take that funding away. To make sure Oklahomans get the tax relief they need, HB1955 prohibits any increase in local or county sales tax rates for two years.
The bill passed Thursday morning and, as of Friday afternoon, the Governor has not taken action on the bill yet. He said in his State of the State address at the beginning of the month that he would sign any tax cut bill sent to his desk, so I expect he will sign the bill early next week.
One of the best parts of my week at the State Capitol is what we call the Tuesday Devotional. This weekly lunchtime Bible study has been going on for over 30 years, and I took over the coordination of it last year when the previous sponsoring member termed out of office.
There’s a different speaker every week, typically a local pastor. The devotional is always a highlight of my day. It is a joy to bring together lawmakers and staff to take a break and recharge.
Before I wrap up, I want to give a shout-out to my intern for the session!
Ty Vizenor is a senior at OU and is pursuing a bachelor’s degree in political science. He’s originally from the West Coast, and he loves to sing and play guitar in his free time. Ty is getting real world experience here at the State Capitol because he someday wants to run for office and represent his own community. I look forward to continuing to work with him throughout the remainder of session.
As always, please feel free to reach out to me at 405-557-7304 or john.talley@okhouse.gov with any questions or concerns I may be able to assist with. Thank you for the honor of representing House District 33 at the State Capitol!
Rep. John Talley, a Republican, serves District 33 in the Oklahoma House of Representatives, which covers Logan and Payne Counties.
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