OKPOLICY.ORG
Statement from OK Policy about proposals that would eliminate the state portion of grocery sales taxes:
For about half the cost of eliminating the state portion of the sales tax on groceries, our lawmakers can deliver targeted fiscal relief to nearly all taxpayers through the expanded Sales Tax Relief Credit.
Given available options, eliminating the state portion of the sales tax on groceries is neither the most fiscally responsible way nor the most effective way to put money back in pockets of everyday Oklahomans.
It also would also create confusion when — after having been told that their state elected officials had eliminated the sales tax on groceries — they find sales taxes remain on their grocery bill. The most likely legislation for eliminating the state portion of the grocery sales tax doesn’t impact city and county sales taxes — which can be up to 5.5% for cities and up to 2.5% for counties.
Instead, modernizing Oklahoma’s Sales Tax Relief Credit — an existing credit that already helps offset some sales tax costs for low-income families — would cost the state just $157 million annually, compared to $370 million annually to eliminate the state portion of the grocery sales tax. Expanding the STRC would deliver 98.3% of the tax benefit to taxpayers making less than $76,000/year. Finally, for many Oklahomans, expanding the STRC saves them more money compared to eliminating the state share of the sales tax on groceries.
We urge lawmakers to explore options that would more effectively deliver targeted relief to Oklahoma families.
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Additional Resources from OK Policy:
- Modernizing the Sales Tax Relief Credit will cut taxes for those who need it
- Fact sheet: Oklahoma’s Sales Tax Relief Credit is due for an update
- A county-by-county look at how increasing Oklahoma’s Sales Tax Relief Credit benefits families, seniors
