OKLAHOMA CITY – Though it was praised by the governor and legislative leaders, the law that cut the state’s portion of the grocery sales tax is now being crit icized by at least one member of the Oklahoma Grocers Association, who said the change is doing more harm than good.
Enacted during the 2024 legislative session, House Bill 1955 eliminated the state’s 4.5% tax on groceries. The measure also restricted any increases in local sales taxes from affecting food and food ingredients until June 30, 2025.
While the amount of money each family saves depends on their grocery budget, Gov. Kevin Stitt and other Republicans said they championed the cut because they consider the tax the most regressive tax the state levies.
And while the bill got rid of the state’s portion of the sales tax on many consumables, it didn’t apply to others such as alcoholic beverages, dietary supplements, marijuana products, prepared food or tobacco. The definition of food and food ingredients that did qualify for the exemption included bottled water, candy and soft drinks.
The Oklahoma Policy Institute – a statewide think tank in Tulsa – estimated the measure would save a family earning about $40,000 about $125 per year.
Stitt, a supporter of the proposal, said the bill was necessary. He said Oklahomans had waited for this day for years.
“I’ve called for tax cuts every year since I’ve been in office — and when we see such broad bipartisan support for a bill like this, we know we’re doing something right,” the governor said during a press conference when he signed the bill. “I’m proud of Pro Tem (Greg) Treat and Speaker (Charles) McCall for their hard work and dedication to returning money to our fellow Oklahomans.”
Treat, who has since retired, said at the time the bill was signed that the tax cut would help Oklahomans.
“Cutting the state portion of the grocery tax has been a priority of mine for several years,” he said in 2024. “I appreciate and applaud the governor for signing this important piece of legislation. Once it takes effect, it will begin to save Oklahomans hundreds of dollars per year at the grocery store. I also appreciate my Senate colleagues and our House counterparts who worked hard to deliver this for everyone.”
But not everyone thinks the cut is a good idea.
Jena Good, a member of the Board of Directors of the Oklahoma Grocers Association said the grocery tax cut really hasn’t helped Oklahoma.
“No, it hasn’t made a difference,” Good said. “It just made (our) customers angry.”
Because of the state’s tax code, Oklahoma really cannot have a true cut in the grocery sales tax, she said. Good said the legislation didn’t really change anything but, instead, cost grocers a lot of money because each store had to have its point-of-sale equipment changed.
“It was like pulling teeth from the Oklahoma Tax Commission to get the right information,” she said. Good said grocers also are charged with educating the public about what items qualify for the tax cut.
“Your groceries are not completely state sales tax free,” she said. Good said she was also concerned that many communities might increase their retail sales tax to offset the cut.
However, Mike Fina, executive director of the Oklahoma Municipal League, said that hasn’t happened – yet.
“I have not had one city do that,” he said.
Still, Fina said the legislation doesn’t have that big of an impact. “It’s a problem in that (the cut) only saves the average Oklahoman about $2.47 (per week) on groceries,” he said.
He said the bill caused confusion right after it went into effect: some grocery stores weren’t remitting any sales tax at first and some cities had to do audits to ensure they were receiving the proper amount of sales tax.
“We’re not complaining about it,” Fina said. “Other than it was a tax cut that didn’t really help.”
Fina said the debate over the grocery sales tax is an example of why Oklahoma needs to diversify its revenue base for cities and towns.
“If we do not diversify from sales tax and figure out a better way to fund municipalities, we will remain behind,” he said. “Municipal inflation is going up faster than regular inflation.”
Oklahoma’s cities and towns need more revenue to provide services, he said.
“Everything has gone up like crazy on us,” Fina said. “We also have to be thoughtful to the taxpayer.”
State lawmakers will return to the Capitol in February 2026.