Oklahoma’s House Bill 1955 will take effect on August 29, reducing the state portion of the sales and use tax rate on food and food ingredients to 0%.
House Bill 1955 is commonly referred to as the “grocery tax” bill and applies to select items typically purchased in a grocery store.
A product guide has been created to break down which items are exempt from the full state sales and use tax rate of 4.5 percent. These items will continue to be subject to local sales and use tax rates.
A flow chart is also available to assist grocery vendors in determining taxability on food and food ingredients. In addition, the Oklahoma Tax Commission has drafted a sales and use tax guide for food, food ingredients and prepared foods.
For additional information visit tax.ok.gov.
