Some grocery shoppers may have seen a slight decrease in cost at the check out. On Thursday, Aug. 29, the elimination of the 4.5% state tax on groceries went into effect. This comes as families across the state continue to struggle with inflation and the rising cost of living. It may not seem like much but an average family can save around $400 a year on their grocery bill. The sales tax will remain on items like alcohol, toothpaste and food items prepared by the grocery store.
The measure will not eliminate all state sales taxes in grocery stores.
Prepared foods, such as hot rotisserie chicken, will still be taxed. Dog food, hot deli soups, and toiletries will still be taxed as well as over-the-counter medications, beer, self-serve fountain drinks and sushi. The sales tax will remain on items like alcohol, toothpaste. Frozen meals, fish, meats, baby food, candy, canned foods and potato chips will not be taxed.
The elimination of the 4.5 percent state sales tax represents the largest tax cut in the history of Oklahma.