Senate Committee Passes Repeal of Grocery Sales Tax

Staff and Wire Reports

OKLAHOMA CITY -- A Senate committee has approved a bill to eliminate the sales tax on groceries once state revenues return to where they were before the economic downturn.

The Senate Finance Committee voted 10-4 on Tuesday for Senate Bill 1328 by Democratic Senator Jay Paul Gumm of Durant.

"The amazing thing about that vote - there were Republicans and Democrats voting for it. There were Republicans and Democrats voting against it," Gumm said.

Read Senate Bill 1328.

With the state facing an estimated $1.3 billion shortfall, Gumm acknowledged now is not the time to eliminate the tax, which would cost the state an estimated $406 million each year.

"Once revenues recover to where they are 110 percent of the amount of revenue we had in 2008, then a trigger will fire, and in July 1 of that year, groceries will then become tax-free in the state of Oklahoma," Gumm said.

Once the state's economy has recovered to pre-downturn levels, Gumm said the proposal would provide a big financial boost to low- and middle-income families.

Holly Tunney has a family of five to feed, and she said her weekly trips to the store quickly add up.

"Usually about $150 to $200 a week on groceries," Tunney said.

Tunney said she came to Oklahoma from Florida, which is one of many states that have eliminated the sales tax on groceries. Oklahoma is one of 15 still taxing them.

Tunney said the tax repeal would be a great help to her family.

"I think it'd be great. It would save a lot of money to be able to buy more food and to put it towards more use for the kids," Tunney said.

The measure also would require the state to reimburse cities and counties for the local sales taxes.

If passed the tax exemption would not apply to alcohol or tobacco products.