Fact Check: Will Oklahoma families save $800 a year from eliminating the state portion of the grocery sales tax?

On Aug. 14, Gov. Kevin Stitt said that Oklahoma would again not be participating in a summer food program for hungry schoolchildren. In that announcement, his spokesperson suggested it was not necessary, in part, because “Governor Stitt delivered for families by signing the grocery tax elimination bill, saving Oklahomans an average of about $800 per year at the grocery store.“

Let’s take a closer look at the governor’s claim about savings from the elimination of the state portion of the grocery sales tax.

Q. Will Oklahoma families save $800 a year from eliminating the state portion of the grocery sales tax?

A. No. Not even close.

• Oklahoma lawmakers signed House Bill 1955 into law in spring 2024. It is scheduled to take effect on Aug. 29, 2024.
• An Oklahoma family earning $40,000 per year will likely save about $125 per year. A family at the top of the income spectrum (more than $619,000 per year) would save an average of $408 per year.
• This is all less than $800 per year that the governor’s statement claimed.
• The Institute on Taxation and Economic Policy found the savings for Oklahoma households in the following income ranges:

• The new law eliminates only the state portion of the sales tax on groceries, which is 4.5 percent — or $3.83 on an $85 grocery bill.
• The fiscal impact statement for HB 1955 produced by the Oklahoma Tax Commission said the bill would create about $370.3 million in savings for more than 1.5 million Oklahoma households. This would be an average of about $246 per household. This calculation does not account for spending differences between lower-income and higher-income households.
• Supporting public documentation available to Oklahoma lawmakers for HB 1955 did not not include a breakdown for how much Oklahoma households would save from elimination of grocery sales tax.
• Eliminating the state sales tax on groceries did not alleviate the costs of county and local grocery taxes for low-income households, or state sales taxes on toilet paper, diapers, feminine hygiene products, shoes, and other necessities.

The claim about savings due to state grocery sales tax elimination wasn’t the only falsehood in the governor’s statement. Hunger Free Oklahoma has already made the case about the dire need for feeding hungry schoolchildren, as well as debunked inaccurate statements in the governor’s statement about the Summer EBT program and nutrition assistance generally.

One in five Oklahoma children live in households without consistent access to food. When searching for solutions to combat food insecurity, it’s important to be working with facts.