Oklahoma will stop collecting state sales tax on groceries under a bill signed into law Tuesday by Gov. Kevin Stitt, who said he is still seeking a reduction in personal income taxes.
The elimination of the 4.5% sales tax, which
The Republican governor called the measure the largest single-year tax cut in Oklahoma history.
“By cutting the state’s portion of the grocery tax we’re going to be delivering on real relief for real Oklahoma families,” he said at the bill’s signing event, where he reiterated his call for a quarter-point drop in the income tax rate, which tops out at 4.75%. Tax cuts in special legislative sessions called by Stitt
Stitt said the state can accommodate some growth in government spending, while pursuing a path to eliminating the personal income tax, which is Oklahoma’s
“We would never put Oklahoma in a bad situation,” he said. “We know we have core services, we know we have roads and bridges, we have infrastructure, but we need limited government.”
Additional tax cuts this legislative session are unlikely. Republican Senate President Pro Tempore Greg Treat said House Bill 1955 was the maximum tax relief his chamber would support this year in the wake of a State Board of Equalization revenue certification adopted Feb. 15.
The
The grocery tax elimination comes as Oklahoma taxes are generating less than in the prior fiscal year. For the first seven months of fiscal 2024, general revenue fund
Earlier this month, Oklahoma received its