Oklahoma Lawmakers Show Bipartisan Support For Ending Grocery Sales Tax 

Oklahoma Gov. Kevin Stitt said he wants to “eliminate” the state’s 4.5% sales tax on grocery products.   

Stitt made the remarks during his State of the State address on Monday to kick off the 2022 legislative session.   

“Oklahoma is just one of 13 states that taxes groceries, and ours is one of the highest,” Stitt said. “Many Oklahomans are already struggling under the weight of record inflation. Let’s give them more help this year.”   

The Oklahoma Tax Commission projects the state sales tax levied on groceries would earn the state $306 million in Fiscal Year 2023.   

Sales tax is a vital source of revenue for cities and counties, according to Mike Fina, the executive director of the Oklahoma Municipal League.   

Oklahoma law prohibits municipalities from using property tax revenue for city operations, forcing local leaders to rely heavily on sales tax.   

Fina said the OML "can be supportive" of the proposal to end the statewide grocery sales tax only if municipalities are still able to issue their own version.  

“Grocery taxes are the number one driver of sales tax in municipal government,” Fina said. “It’s the most important avenue for sales that municipalities have.”  

Senate Pro Tem Greg Treat and Rep. Sean Roberts, both Republicans, have filed bills that would eliminate the tax, as well as Minority Leaders Rep. Emily Virgin.   

Roberts’ bill was filed as HB2844, Virgin’s version of the measure was HB3621, and Treat’s Senate version was SB1495.  

Fina said all versions of the bill would target only the statewide sales tax by including groceries as an exemption. Each bill would allow municipalities to create its own version of the tax.  

Virgin said her version of the bill would phase the existing 4.5% tax rate down by year  

“My legislation actually phases it out over three years, a percent and a half-cut each year. So we can make sure our fiscal estimates are accurate,” Virgin said.  

“The state sales tax on groceries is a regressive tax that harms working families the most. I look forward to partnering with the governor to pursue the elimination of the state's grocery sales tax so that we can give Oklahoma families meaningful tax relief,” Treat said.