Leader Munson Proposes Interim Study for Modernizing Sales Tax Relief Credit

OKLAHOMA CITY – House Democratic Leader Cyndi Munson, D-Oklahoma City, proposed an interim study that would examine the benefits of modernizing the Sales Tax Relief Credit.

In 1990, the Oklahoma Legislature passed the Sales Tax Relief Credit as a way to offset the cost of sales tax on groceries for middle and low-income Oklahoma families. Eligibility for the credit was expanded in 1998, but the credit amount has remained frozen at $40.

“I am very proud of our bipartisan effort to eliminate the sales tax on groceries. Now, we need to consider other measures to lower costs for working Oklahomans. This study will examine expanding eligibility and modernizing the amount of the credit to ensure fiscal responsibility and greatest benefit to middle and low-income working Oklahomans,” Leader Munson said. “This is a solution that when updated actually puts money into the pockets of Oklahomans who need it most.”

According to the Oklahoma Tax Commission’s 2021-2022 Tax Expenditure report, the Sales Tax Relief Credit was claimed by 424,294 households in 2020 for $33.6M. Roughly one-fifth of the state’s population received the credit that year, but the number of credit recipients has lessened over time as eligibility for the credit remained flat.