State House Votes To Lower Grocery Tax

Wednesday, March 11th 2009, 8:36 am
By: News On 6

Associated Press

OKLAHOMA CITY (AP) -- The Oklahoma House has approved legislation to phase out the state sales tax on groceries.

The state House voted 80-16 Tuesday for a measure that would reduce the grocery sales tax. It's similar to a bill passed by the state Senate that would phase out the tax over five years.

The Senate-approved tax cut would cost $44 million next year and $300 million when fully implemented. Officials have said it is unlikely because the state faces a $900 million revenue shortfall.

The measure by Rep. John Trebilcock of Broken Arrow, House Bill 2204, would lower the state grocery tax each year by one-half a percent, bringing it down from 4 percent in 2010 to 0.5 percent in 2017.