Bid to end tax on groceries renewed

TULSA, Okla. (AP) _ A Republican state representative from Tulsa plans to try again to eliminate Oklahoma&#39;s sales tax on groceries. <br><br>Rep. John Sullivan has introduced legislation for the past

Friday, December 1st 2000, 12:00 am

By: News On 6


TULSA, Okla. (AP) _ A Republican state representative from Tulsa plans to try again to eliminate Oklahoma's sales tax on groceries.

Rep. John Sullivan has introduced legislation for the past three years to eliminate the tax. But his latest attempt comes with a twist: It would also eliminate the sales tax on certain over-the-counter drugs.

In addition, Sullivan said he will sponsor an initiative petition drive to do away with the tax if his bill doesn't survive the legislative process.

``I've spent so much time (on the issue), I'm not about to fold,'' Sullivan said.

His proposal would reduce revenues by about $190 million a year. The tax exemption would generally apply to nonprepared food, which can be bought with food stamps. Sullivan said the sales tax on groceries and certain nonprescription drugs was regressive and unfair.

Sullivan's past bills have been allowed to die because of the potentially large hit on state revenue. He said he would be willing to phase in the cut over several years to soften the impact. He also said the state could make use of its annual growth revenue to help soften the financial blow.

``Right now, we've got a record budget surplus of more than $80 million _ it's the perfect time,'' Sullivan said.

Although the bill would not affect local sales taxes, the Oklahoma Municipal League has voiced qualms about the proposal. Elimination of the state sales tax on groceries could prompt residents to seek a similar elimination of municipal sales taxes, on which cities and towns depend heavily.

Sullivan said he and Rep. Forrest Claunch, R-Midwest City, are building an organization to run the initiative petition if the Legislature does nothing.

Twenty-five states and the District of Columbia exempt grocery sales from taxes. Alcoholic beverages generally remain taxable.

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