Oklahoma grocery tax cut countdown begins: What's taxed and what's not?

EDMOND, Okla. (KOKH) — July 1st marks the beginning of the state's fiscal year, but we still have nearly two months until the state grocery tax is eliminated.

Starting August 29th, grocery stores, movie theaters and farmers markets across Oklahoma won't be able to charge the 4.5% state portion of the grocery tax on certain items.

Your typical grocery items including produce, dairy products and most snacks won't be taxes.

That list includes deli meats, even if you buy them at a deli counter.

What is taxed comes down to how it's prepared. If you buy a beverage already packaged, it can't be taxed. But if you buy a fountain drink, it will be taxed.

Alcoholic beverages, dietary supplements and prepared food will be taxed still.

The prepared food list includes everything sold with utensils provided by the store, such as heated meals.

How the food is served could determine if it is exempt from the state tax.

Buying a burrito at a convenience store and heating it up on site isn't taxed because a customer cooked it instead of the store.

Frozen meals are technically prepared meals, but because they aren't cooked or served at the store, they also can't be taxed.

The tax elimination only applies to the state tax. Local taxes will still be charged on grocery bills.

For more information on what qualifies as tax exempt, you can head to the Tax Commission's website.