Will Local Taxes Increase After the State’s Elimination?
Oklahoma’s Grocery Tax Elimination: What You Need to Know
According to Oklahoma voice, As of August 29, Oklahomans will enjoy a significant reduction in their food bill as the state’s 4.5% sales tax on groceries is eliminated. Families, especially those with smaller incomes, should feel better because of this change. The Oklahoma Policy Institute says that a family making $40,000 a year will save about $125, and a family making more than $619,000 a year will save about $408.
It’s important to remember that local taxes will still be due, even though this change may seem like a relief. It is still possible for cities and counties to charge their own sales taxes, which could lead to higher rates. However, experts don’t think this will happen on a large scale. It is expected that the state’s income will drop by about $370 million after getting rid of the food tax.
Grocery Tax Relief: Who Benefits and By How Much?
Governor Kevin Stitt and House Speaker Charles McCall pushed for getting rid of the food tax because they wanted to help families who were having a hard time with inflation.
Even though they wanted more cuts at first, like lowering the income tax, it didn’t get enough support in the Senate. Still, getting rid of the food tax should help a lot of Oklahomans by making the things they buy every day cheaper.