Daniels Votes for Bill to Eliminate State Sales Tax on Groceries

OKLAHOMA CITY – On Thursday, the Senate voted to eliminate the 4.5 percent state sales tax on groceries.  The bill had already passed the House.  It now heads to the Governor’s desk.

“Eliminating the state sales tax on groceries will bring much-needed tax relief to Oklahomans reeling from inflated prices, due to bad policies in Washington, D.C.  They will start to benefit this year and every time they purchase groceries," Daniels said. “It was important to make this decision now so we can move ahead crafting the state budget as that must be done by the end of May.”

The tax cut is estimated to save each Oklahoman an average of $104.25 per year. It will reduce state revenue by $418,000,000 per year.

Grocery items are defined in the bill. Local and county sales taxes on groceries will still be collected. Any municipality seeking to propose a sales tax increase to local voters will have to wait until after July 2025 to do so.

Daniels served on the senate tax reform task force created in 2021.  "I am committed to continuing to work to implement tax reform, which I believe is critically important to the long-term prosperity of Oklahomans and our ability to attract new business to our state," Daniels said.

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For more information, contact:  Sen. Julie Daniels at 405-521-5634 or email Julie.Daniels@oksenate.gov.