Oklahoma could have bipartisan support for removing grocery tax
Oklahoma City, Okla. (KOKH) — There could be bipartisan support in Oklahoma for getting rid of the state's grocery tax.
Right now, the state takes four and a half percent every time you stock up at the store.
Oklahoma is one of only 13 states that puts a tax on groceries.
“We haven’t heard anybody just say it’s a bad idea," said Rep. Emily Virgin, the house's minority leader. "We’ve seen some bipartisan support, so that’s encouraging."
Lawmakers on both sides of the aisle think cutting it could help spur economic growth.
Virgin is requesting an interim study on the topic.
“How do we lessen the tax burden for folks who are working minimum wage jobs, folks who are middle income, because we know that in Oklahoma those folks are paying more of their share in income than people at the top," Virgin said.
The main sticking point could be whether they replace that revenue by taxing something else and where that comes from.
"That’s why we talk about this in combination with a more fair income tax and making sure that we have brackets based on income levels that actually make sense," Virgin said.
Majority Floor Leader Jon Echols told Fox 25 over the phone that he supports cutting the grocery tax and that an interim study is a good idea.
But he says raising taxes anywhere else will be a different conversation.
Virgin says she's not sure if she can support the cut without replacing the revenue for core services like education.
She says a law can be written that won't impact how local municipalities collect their sales tax but she would like to see that change at some point too.
“What we’d love to do is find a different way to fund municipalities because they are solely dependent upon the sales tax and we are I think the only state that actually funds local government that way," Virgin said.
Rep. Virgin says in an interim study they could also look at the possibility of removing the grocery tax on certain foods and keeping it for others.
Depending on the results of the study, Virgin could introduce a bill on it next year.
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