Brogdon, Proctor Target Grocery Sales Tax

Senator Randy Brogdon and Rep. Eric Proctor have filed legislation to end Oklahoma’s state sales tax on groceries by July 1, 2009.

Brogdon, R-Owasso, is the principal author of Senate Bill 600, which would end the 4.5 percent state sales tax on groceries. The tax exemption would not apply to alcohol or tobacco products since they are taxed at the wholesale level.

“If we want to pass tax relief that will genuinely help every single person in Oklahoma, then we need to end the state sales tax on groceries,” Brogdon said. “Families will be able to use that savings to buy clothing or other necessities for their children, and seniors already struggling on fixed incomes would be able to purchase more of the things they need as well. Those dollars will go right back into our economy.”

While local municipalities currently cannot levy a sales tax on items exempted by the state, Brogdon stressed SB 600 would amend that provision so that those entities could continue to collect sales taxes on food and beverages if they so choose. “This means local governments would still have that much-needed funding source,” Brogdon said.

Proctor, D-Tulsa, will carry SB 600 in the House. He said it was important to find ways to approve tax relief that will both help Oklahomans have greater purchasing power and put more money into local economies, “Senate Bill 600 will help us achieve both goals,” Proctor said. “Thirty-one states and the District of Columbia do not impose a sales tax on groceries. It’s time for Oklahoma to eliminate this tax as well.”

Share |

Gumm Promises New Grocery Tax Push

Senator Jay Paul Gumm, D-Durant, says he'll continue his fight to eliminate the sales tax on groceries in the 2009 session of the Legislature.

That word comes as others offer proposals that also would impact the sales tax, thus ensuring it is likely to be hot topic next year.

Gumm's proposal to eliminate the tax was introduced for the 2008 session, but died at the hands of those opposed to it.

Share |

Terrill: Democrats Refuse Grocery Sales Tax Cut

House Democrats procedurally killed an amendment today that would have eliminated the state sales tax on groceries in Oklahoma.

Rep. Randy Terrill (left), author of an omnibus tax cut bill that passed today, attempted to suspend the rules to file an amendment to his bill that would have ended state sales tax on groceries. A suspension of rules takes a two-thirds vote of the House. But, the suspension failed because 42 House Democrats either voted against or failed to vote to add the amendment to the bill.

"Their unwillingness to suspend the rules came as a shock and surprise to me given that they have previously voiced support for the removal of the sales tax on groceries," said Terrill, R-Moore. "Refusing to allow the rules suspension for the purpose of attaching an amendment to do just that is hypocritical to say the least. What I find particularly surprising is that Rep. Richard Morrissette, who earlier in the day proclaimed his support for the sales tax elimination, refused to vote though he was physically present in the House chamber, even after being reminded that failure to vote is a direct violation of House rules."

House Democrats also killed the emergency on the bill, which means the back-to-school sales tax expansion will not go into effect for the school year this fall.

"Apparently House Democrats want to see Oklahoma parents paying state sales tax on school supplies for at least another year," said Terrill.

Share |

Sales Tax Opponents Say Cost Is Too High

Opponents of a sales tax to raise $121 million for improvements to the Ford Center and construction of an NBA practice facility pushed the argument Friday that the cost is too high.

Voters will decide Tuesday whether to approve the one-cent sales tax.

At a news conference Friday, Oklahoma City area resident David Glover handed out copies of an e-mail from Oklahoma City special projects manager Tom Anderson informing him that the proposal aimed at luring the NBA's Seattle SuperSonics would cost the average resident $10 per month or $150 per year.

Glover said he would support the relocation of an NBA team to Oklahoma City, but this price is too much to pay. "If I thought it would be just a penny or just a couple of pennies, I'd be for it," said Glover, who lives in The Village.

Share |

Grocery Sales Tax Cut Idea Makes '100 Ideas' List

A proposal by Senator Jay Paul Gumm, D-Durant, to end the state’s grocery tax made the list of “100 Ideas” made by Oklahomans to improve the state.

Over the course of the past year, more than 3,500 ideas were submitted through a website and thousands more were collected at “Idea Raisers” held by communities across Oklahoma. The proposal to end the grocery tax was the “Number 25” idea.

The book, 100 Ideas—Innovation for the Second Century, was released Tuesday.

The publication of the book was the conclusion of a year-long, bipartisan project getting Oklahomans more involved in the policymaking process as the state enters its second century of statehood.
In promoting repeal of the state grocery tax, the book states: “Oklahoma should eliminate the regressive grocery sales tax. Oklahoma is one of the few states in the nation that taxes groceries. Food is a basic necessity, and working families should not be taxed on food purchases at the grocery store.”

Gumm said he could not agree more. “Cleary Oklahomans have embraced the idea that ending the sales tax on groceries is an idea whose time has come,” he said.

“With a sluggish economy, there is no better time to move this proposal forward to put real money back into the pockets of working and middle class families as soon as possible. Not only will we directly help them, we give the Oklahoma economy an extra boost.”

Share |

Gumm Tries Again On Grocery Sales Taxes

Senator Jay Paul Gumm of Durant will try again in 2008 to remove the state's portion of the sales tax on groceries.

The measure would remove the state’s portion of the sales tax on groceries; if enacted, Gumm said, the bill would save Oklahoma families 4.5 cents on every dollar they spend at the grocery store. Families spending $500 per month on groceries would save $270 annually on sales taxes under the bill.

“Working families are feeling the pain of all-time high gas prices, and could use the relief at the checkout stand when they buy food for their families,” Gumm said. “Eliminating this unfair tax will allow Oklahomans to have more money in their pockets to spend on necessities and to boost their local economies.”

This will be the third year Gumm will try to end collection of the state’s portion of the sales tax on groceries. He introduced similar legislation last year, however that bill was never granted a hearing in the Senate Finance Committee.

Share |

Gumm Again Calls For Repeal Of Grocery Sales Tax

Calling it a “moral imperative” for Oklahoma’s working families, southern Oklahoma Senator Jay Paul Gumm said he again will introduce legislation to remove the state sales tax on groceries.

This will be the third year Gumm will try to end collection of the state’s portion of the sales tax on groceries. The state sales tax on groceries is 4.5 cents on every dollar spent at the check-out stand.

Gumm, D-Durant, introduced Senate Bill 34 last year; that measure was never granted a hearing in the Senate Finance Committee. The lawmaker said he will continue to press for passage of such a measure, vowing “to work with any of my colleagues, Democrat or Republican, who will help pass this important bill.”

The exemption would not extend to alcoholic beverages or tobacco. Gumm’s proposal would allow municipalities and counties to continue collecting the grocery sales tax unless each jurisdiction individually makes the decision to honor the exemption.

“Oklahomans I represent, and people across the state, tell me time and again: ‘When the budget gets better, please end the sales tax on groceries,’’ he said. “Now is the time and this bill is a response to that plea from people in every region of Oklahoma.”

The lawmaker has long advocated removing the state sales tax on groceries. The proposal has run into resistance because some prefer to focus on cutting the income tax or on not cutting taxes at all. That alliance from both ends of the political spectrum repeatedly spelled doom for the proposal.

Two years ago, according to legislative records, a bill to cut the grocery sales tax was denied a hearing in the House of Representatives’ Revenue and Taxation Committee, effectively killing it. Last year, Gumm’s proposal was denied a hearing in the Senate Finance Committee.

“Clearly, this policy deserves a chance to be considered by the House and Senate’s tax policy committees rather than being killed in the proverbial ‘smoke-filled room,’” he said. “Now is time for both parties to focus on cutting the most regressive of taxes – the grocery sales tax.”

The lawmaker explained the grocery sales tax is a heavier burden than any other tax on families who can least afford it. The Alliance for Oklahoma’s Future reported last year the bottom three-fifths of taxpayers – most Oklahomans – pay an effective tax rate of 11 percent for state and local taxes. The wealthiest Oklahomans, however, pay an effective state and local tax rate of less than 9 percent.

Middle- and lower-income families also spend a greater percentage of their income on necessities like groceries than do the wealthy. That creates for most Oklahoma families what Gumm calls a “double-whammy.”

“Removing the sales tax on groceries will certainly make the tax system fairer for Oklahoma’s working families,” he said. “This is the tax cut that should be at the top of the agenda if my colleagues are going to look at cutting taxes. We can, and we should, remove this undue burden on those least able to afford it.”

Gumm said most of the money consumers would save through ending the state’s grocery sales tax would be pumped right back into the economy. The first sales tax cut in decades – Oklahoma’s first “Back-to-School” sales tax holiday passed this year and championed by Gumm for years – had that affect.

According to figures released by the Office of State Finance, August sales tax revenue jumped by $4.6 million over what was collected in 2006 and was $4.8 million more than budget planners estimated. The only policy change that could have been responsible for the boost was the sales tax holiday.

“Removal of the grocery sales tax will help those Oklahomans who need it the most: working families,” Gumm concluded. “It will be a boost for Oklahoma’s grocers and retailers, and I still believe removing sales tax on groceries is a moral imperative for the people of Oklahoma.”

Share |