(The Center Square) - Oklahomans will pay less at the grocery store starting Thursday as the state sales tax on food ends.
But the tax doesn't cover everything at the grocery store. Oklahomans who want wine with their meal will still pay the 4.5% state sales tax, according to the Oklahoma Tax Commission.
Fido and Fluffy's food, or food for any pet, is still taxable. And prepared foods, like restaurant and fast food meals, are still taxable.
The elimination of the state grocery tax was approved by lawmakers early in the 2024 legislative session and quickly signed by Gov. Kevin Stitt.
"The grocery tax is a regressive tax that impacts everyone every time they buy groceries," Senate Pro Tem Greg Treat said Monday. "While this tax cut represents the largest tax cut in state history, it also supports the well-being of our citizens."
The law puts $411 million back in taxpayer pockets, lawmakers said during a discussion of the bill.
Gov. Kevin Stitt and the House of Representatives fought for additional tax cuts during the 2024 session but were hampered by the Senate. The governor is still advocating for a reduction in personal income and grocery taxes.
The Office of Management and Enterprise Services said earlier this month that General Reserve Fund collections were $8.5 billion for fiscal year 2024, up $177.7 million or 2.1% above this year’s estimate.
"Oklahoma's economy is strong, our fiscal policies are working, and I'm pleased that revenue exceeded expectations this year," Stitt said in a statement to The Center Square. "But to kick our economy into overdrive, we have to cut our corporate and personal income tax rates to encourage even more business growth and to put more money in the pockets of taxpayers."
The governor's plan would have eliminated income taxes for Oklahomans earning less than $27,100 a year, which Stitt said would return $300 million to taxpayers.
