Should groceries be tax-free?

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February 14, 2009

By Jessica Jackson - newspress The Stillwater News Press Sat Feb 14, 2009, 10:18 PM CST

Groceries may be less of the budget buster in the next few years if a state Senate bill makes its way through the system.

Senate Bill 318, authored by Sen. Mile Mazzei, R-Tulsa, would eliminate the 4.5 percent sales tax on groceries.

The bill passed the Senate Finance Committee, of which Mazzei is the chairman, on Feb. 3, but Mazzei’s office did not know when it would be heard by the full Senate.

Sen. Jim Halligan, R-Stillwater, said he didn’t think the bill would pass the legislature.

“We have too many unknowns at this point, but I think the probability is unlikely,” he said.

Opponents say the bill eliminates money for the budget in a year with a budget shortfall.

“I think in these difficult times, everyone would be in favor of that if we could possibly do it and keep the state budget in balance,” Halligan said. “I’m in favor of the concept, but there’s a big difference between the concept and the bill.”

Charles Fowler, owner of Consumers, said he didn’t think it would affect his business at all.

“It would probably raise a few eyebrows on which way it would go,” Fowler said. “I just have to wait and see what happens.”

Micaela Herbert, Consumers shopper, said her support of the bill would depend on where the earned sales tax goes.

“If it cuts back on teachers or education, then we should go ahead and pay,” she said.

She said she didn’t think the tax break would benefit her much.

On the other hand, Jay Outhier, Consumers customer, said he’d like to see the state issue more taxes to help pay for improving the state.

“I don’t like being here in the state because we don’t pay any taxes, and we’re trying to pay less,” Outhier said. “Personally, I wish they would tax the hell out of us ... so we’d have a nice place to live.”

A second bill eliminating grocery sales tax, Senate Bill 600 proposed by Sen. Randy Brogdon, R-Owasso, and Rep. Eric Proctor, D-Tulsa, has been assigned to Mazzei’s Senate Finance Committee, but it has not been scheduled to be heard.

A major difference in the bills is Brogdon’s calls for immediate tax relief, effective July 1, whereas Mazzei’s bill will be fully implemented in five years.

If the bill passes the Senate, it will go to the House of Representatives for a vote.

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Should groceries be tax-free?

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