Grocery tax repeal yields bipartisan support

A Norman state representative’s modification to a bill that would eliminate Oklahoma’s grocery tax has support from across the aisle.

State House Minority Leader. Emily Virgin, D-Norman, has proposed through House Bill 3621 the state gradually eliminate its 4.5% grocery tax through a 1.5% stairstep over three years.

It’s a less sudden approach than what’s outlined in Senate Bill 1495 from Senate President Pro Tem Greg Treat, R-Oklahoma City, which, if passed, would eliminate the tax at once.

Virgin said Oklahoma, which is already heavily dependent on sales tax revenue, would lose an estimated $300 million if the tax was fully eliminated.

She argued the stairstep outlined in her bill would allow state officials to “make sure the fiscal impact is accurate.”

“I think it’s a smarter way to do it,” said State Sen. Rob Standridge, R-Norman, at a Friday legislative forum featuring Norman’s state legislators.

The bill was introduced two days after Oklahoma Gov. Kevin Stitt expressed his desire to get rid of the tax in his State of the State address.

Some local governments in the state have imposed additional taxes that have increased the rate to more than 10%, according to the Associated Press.

Virgin’s bill would not eliminate sales taxes levied by cities for municipal operations.

State Democrats like Virgin have long pushed for the elimination of the statewide grocery tax, AP reports.

Virgin said legislators have debated how goods prepared and sold at restaurants should be taxed.

She also said the proposed elimination of the grocery tax has bipartisan support, but has not drawn enthusiasm from leaders of the House and Senate appropriations committees.

“It will still be sort of an uphill battle, even though it does have bipartisan support, so that’s a huge sign of potential success. But it costs money, and everybody sort of has their open priorities, and so I think that’s something that’s going to be ongoing during the session,” she said.

Norman Chamber of Commerce CEO Scott Martin said the elimination of grocery taxes in the state presents “an interesting discussion” over the impact of eliminating the tax versus how it would help residents.

He said anything that can be done to help families is good, but also mentioned Oklahoma and its cities are highly reliant on sales taxes for operation.

The chamber has not officially taken a position on the grocery tax.

“As long as they address that need, then I think that’s great, and they don’t do anything that’s going to adversely impact our local businesses,” Martin said. “But if it’s something we can do to support them, then certainly, it’s something that we’d like to consider as a chamber.”