OKLAHOMA, USA — In a 42-2 vote, the Oklahoma State Senate passed a bill to eliminate the sales tax on groceries, and Governor Kevin Stitt signed the bill into law. The tax cut is expected to save Oklahoma shoppers $400 a year.
The bill was approved by Oklahoma's House of Representatives almost a year ago.
"I am extremely proud to be the leader of this chamber that has not rushed into a decision," said the Republican leader of the State Senate, President Pro Tempore Greg Treat. "I can no longer provide for my family going in weekly for $100 or less, and most Oklahoma families can't."
Oklahoma House Democratic Leader Cyndi Munson also celebrated the law saying, calling it "a great policy with consistent bipartisan support. I am happy we get to come together to celebrate today ... a win for all Oklahomans."
Oklahoma is one of 13 states that still has a grocery tax. Their tax is 4.5% compared to Arkansas' 0.125%.
"We're in an interesting spot in that we technically have one, but it's so negligible that Arkansans likely don't even notice it when they're there," said Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration. "Of the states that still have a tax on groceries, Arkansas is the lowest it's such a small amount."
Hardin says the tax goes towards the state's conservation funds, including Arkansas Game and Fish.
While Arkansans could easily travel across state lines and avoid the tax on their groceries in Oklahoma if passed, Steve Goode, Director for Arkansas Grocers and Retail Merchants, says he believes this won't have much of an impact.
"I don't think the consumers would really have any need to crossover. There's not going to be any substantial savings, if Oklahoma eliminates theirs," Goode said.
If approved, cities and counties will still be able to tax groceries at the city and county level.
Those against the bill were concerned about the $411 million the state would lose.
"When I got here in 2014, we were $600 million in the red $1.3 billion in the red," said Senator Roger Thompson. "Without any humor I still have flashbacks of 2018. Those were difficult days."
If the bill is passed it will take effect in mid-August.
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