The Taxpayers Guide to Tax at the Grocery Store

As the state grocery sales tax is phased out today, here's a helpful video from the Oklahoma Tax Commission: The Taxpayers Guide to Tax at the Grocery Store.

Additional information from the Tax Commission with FAQs for consumers and vendors can be viewed here.

Pro Tem Treat: Grocery tax cut this week "will provide immediate relief" from inflation, higher cost of living

Senate Pro Tem Treat Comments on Oklahoma Grocery Tax Cut Taking Effect Thursday

OKLAHOMA CITY – Senate Pro Tem Greg Treat, R-Oklahoma City, today announced the long-awaited reduction in Oklahoma's grocery tax will take effect Thursday. 

The tax cut, which was approved during this year's legislative session, marks a significant step toward easing the financial burden on Oklahoma families. It also represents the largest tax cut in state history. 

Legislature ends state grocery sales tax: groceries to get slightly cheaper (at least temporarily)

The Oklahoma State Senate voted today 42-2 to end the state's 4.5% sales tax applied to groceries, sending the measure to Governor Kevin Stitt for his signature (the House voted 88-7 to pass HB1955 last year, meaning the bill was still eligible for Senate action this session). The change will likely take effect in August.

Local sales tax on groceries still applies; Locally assessed sales taxes on groceries will remain unchanged by the law through June 30th, 2025, after which point it seems counties and municipalities can change their rates (... which I'm sure they will).

Phase-out of state grocery sales tax unanimously passes House committee

Elimination of State Grocery Tax ‘Sales’ Through Committee

OKLAHOMA CITY -- A bill to provide relief to Oklahoma families at the grocery store unanimously passed the House Appropriations and Budget Subcommittee on Finance on Wednesday.

House Bill 3621, authored by House Minority Leader Emily Virgin, D-Norman, phases out the 4.5% state portion of the grocery tax over three years:

• 3 percent, starting July 1, 2022 
• 1.5 percent, starting July 1, 2023
• Fully exempt from state sales tax effective July 1, 2024

Democrats called for the end of the grocery tax last session in their 2021 Oklahoma Focused Budget. This session, the initiative has found bipartisan support from members of the House, members of the Senate, and the Governor. 

State Rep. Sean Roberts wants state question to remove grocery sales tax

Roberts Plans to Push for Legislative Referendum to Remove Grocery Sales Tax

OKLAHOMA CITY – Rep. Sean Roberts, R-Hominy, today announced that he plans to continue his push for a referendum to remove Oklahoma's sales tax on groceries.

"Currently only six states allow full taxes on groceries, Oklahoma being one," Roberts said. "We currently have a surplus in funds and revenues are up, so now is the time to bring this much needed relief to Oklahoma families."

A legislative referendum is the mechanism by which the Oklahoma Legislature can submit a constitutional amendment or statutory change to a vote of the people. It is one of two ways to place a State Question on the ballot in Oklahoma, the other being by initiative petition. Roberts previously filed House Bill 2844 last session and will be advocating for its passage again this session.

Rep. Sean Roberts challenges Dems on grocery sales tax talking point, offered ballot referendum

Creating a Ballot Referendum to End the Taxation on Groceries, by Rep. Sean Roberts

OKLAHOMA CITY – This week consisted of the House accepting or rejecting amendments, and we also came to an agreement on the budget with the Senate and the Governor. In a response to the budget, the Democrat Caucus said:

"While an extra $500 million in savings sounds nice, our citizens are literally paying the price. With this money, we could end the state sales tax on groceries, which would save Oklahomans more than $250 million per year.”

If my Democrats colleagues truly believe in reducing the tax burden on Oklahomans, why did they vote for the largest tax increase in state history, but fail to file a bill to remove the sales tax on groceries this session?

Buying 5-dozen eggs at Walmart? $3.78 in Broken Arrow, $16.88 in Wagoner for same product

Wagoner resident Mel Bass recently went on a mission to compare egg prices between various Walmart locations in northeast Oklahoma. The results were astonishing.

Prices for 60-count large white Grade A eggs, Great Value brand:

• Broken Arrow: $3.78
• Pryor: $5.72
• Coweta: $9.12
• Muskogee: $14.40
• Wagoner: $16.88

Exact same product, with prices gathered on April 19th and April 20th.

For the price of 5-dozen eggs in Wagoner, a shopper could have bought 20-dozen eggs in Broken Arrow with $1.76 to spare.

Does Walmart price-match their own stores? 

1889 Institute: "Food Deserts" are not a crisis

“FOOD DESERTS” ARE NOT A CRISIS

Tulsa and OKC City Councils just don’t like choices people make

OKLAHOMA CITY, OK (March 2, 2020) – The 1889 Institute has published “’Food Deserts’ – Health Crisis or Mere Inconvenience?” In it, 1889 Research Fellow, Mike Davis, makes the case that “food deserts” are not the crisis that they have been portrayed to be in Tulsa and Oklahoma City. This means recent zoning regulations limiting small-box “dollar” stores are detrimental. Nevertheless, recommendations are made in the paper that would better address concerns regarding access to full-line grocery stores.

“To the extent that there is reason to be genuinely concerned about the nutrition of some Tulsa and Oklahoma City residents, studies show that it is not about access to traditional grocery stores,” said Davis. “Private transportation options are readily available in addition to underutilized public ones, so the real issue is the preferences of residents as reflected by their buying habits. Besides, the non-perishable food items already available at small-box dollar stores in these neighborhoods are just as nutritious as their perishable counterparts,” he said.

In his paper, Davis points out that the new zoning restrictions create an opportunity for existing dollar stores to raise their prices, hurting the very people the regulations are purported to help. While the idea of the restrictions is to limit competition for full-line grocery stores and encourage their entry into an area, potential competition is only one of many reasons a grocery might not be located in the targeted areas.

“My recommendations are all about de-regulating rather than piling on more regulation. New regulation always involves unintended consequences,” Davis said. “Keeping regulations from getting in the way of private transportation solutions, having the cities pick up the tab for cleaning dilapidated buildings off land where a grocery store will be located, and getting out of the way of the development of community gardens would be more productive than the zoning regulations,” he said.


About the 1889 Institute
The 1889 Institute is an Oklahoma think tank committed to independent, principled state policy fostering limited and responsible government, free enterprise and a robust civil society. The publication, “’Food Deserts’ – Health Crisis or Mere Inconvenience?” can be found on the nonprofit’s website at https://1889institute.org/corporate-welfare-1.