After Senate President Pro Tem Greg Treat announced earlier this week the Senate Republican Caucus had come to an agreement on eliminating the state’s portion of the grocery sales tax, the Senate followed through with its passage on Thursday.
The state’s portion of the tax is 4.5 percent. There is a restriction on when a municipality may propose a grocery sales tax increase until July 2025, however, that part of the sales tax will continue to be collected.
Since the House already passed HB 1955, it now heads to Governor Kevin Stitt. He’s promised to sign any tax cut that comes to his desk.
“Today, we get to fulfill a promise to all four million Oklahomans and pass the largest single year tax cut in Oklahoma history. Cutting the grocery tax means relief for all Oklahomans.
“I’ve called for tax cuts since 2019 and in 2022 I called a special session specifically to cut the grocery tax. I want to thank Speaker McCall and the House for tirelessly fighting for tax cuts, and to Pro Tem Treat and the Senate for sending this to my desk,” said Stitt.
While Treat has previously said this grocery tax cut will be the only tax cut the Senate will pursue, Stitt is hopeful more tax relief will be considered.
“I’m going to always fight for limited government and lower taxes, and I will still advocate to get us on path to zero income tax. This is a victory I’m excited to celebrate,” Stitt said.
House Speaker Charles McCall also celebrated moving the grocery tax cut forward.
“This is a truly historic day. With the passage of House Bill 1955, the Legislature has managed to give Oklahomans the largest single year tax cut in state history, returning $411 million to our citizens at a time when they need it the most,” McCall said. “I would like to give a tremendous amount of credit to my colleagues in the House who have fought through both regular and special sessions over the past three years to cut taxes and provide relief to the citizens of Oklahoma. Their persistence and willingness to come in on weekends, holidays and during the interim to do the work of the people has led to a policy that will help all Oklahomans.”
McCall says he would have liked to have seen this tax cut get into place sooner.
“I would also like to thank President Pro Temp Greg Treat and our colleagues in the Senate for finally voting this legislation through to the governor’s desk. The delay in the vote cost Oklahomans an estimated additional $374 million in taxes, and the lack of an emergency to immediately put the cuts in place will cost our citizens another $200M, but Senate leadership did their best to at least secure passage. The House has sent several tax cuts to the Senate over the last three years only to have them stall and not be heard. Thankfully this legislation has finally passed after 332 days of waiting. Oklahomans are currently facing some of the worst inflation of the last three decades, and the Senate’s vote today means that help is finally on the way.”
The House Speaker wants to continue the tax cut conversation, especially the quarter of a percent personal income tax bill on the table.
House Democratic Leader Representative Cyndi Munson said that her caucus has been on board with the grocery sales tax cut for years.
“I am pleased the Oklahoma State Senate has finally taken action on what we already know will help so many Oklahoma families. For the past several legislative sessions, including special sessions, the House Democratic Caucus has filed legislation to eliminate the state sales tax on groceries to provide immediate tax relief for working Oklahomans each time they go to the grocery store. It has always been our priority – and will remain a priority – for us to protect our revenue base while also advocating for policies that will lower costs for Oklahoma families who need it the most. By eliminating the state sales tax on groceries, we are accomplishing a goal House Democrats have been working on and supported for many years.”
Senate Democratic Leader Senator Kay Floyd echoed Munson’s sentiment.
“Senate Democrats have supported and continue to support cutting the state portion of the sales tax on groceries, giving relief to hard-working Oklahomans and their families.
“We will also continue to advocate for comprehensive tax reform that truly benefits those who need it most. We need a long-term structure that will give our citizens certainty about how those policies will impact their finances, as well as the critical functions of government Oklahomans rely on, such as public education, health, mental health, public safety, infrastructure, and other vital services,” said Floyd.
