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Jim Coffman went grocery shopping Thursday morning at Crest Foods at 4503 NW 23 St., stocking up on his usual grocery items. Soda, Oreos and manufactured snacks poked out of the paper bags packing his full cart. Many of those items fall under the state's new grocery tax cut, yet Coffman had no idea the law had gone into effect.
"I shop so rarely, I don't know," Coffman said. "But $146 looks like a lot to me, but I'm not a regular."
Oklahoma's grocery tax cut went into effect Thursday, reducing the cost to shoppers of many food items.
Some shoppers like Coffman were unaware the cut was coming. Some thought it would help a bit. Others thought its effect had already been eroded by inflation. Overall, it may not have been the "monumental" event proclaimed by House Speaker Charles McCall when the cut was signed into law by Gov. Kevin Stitt in February.
Sen. Lonnie Paxton, R-Tuttle, the designated new leader of the Senate, had sent out a news release Wednesday saying that Oklahomans would see an immediate savings at the checkout counter. However, some shoppers at local food stores and chain supermarkets had no idea the cut had been implemented.
Related: Oklahomans have some of the most expensive grocery bills in the US, a survey showed
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Coffman said he had noticed higher prices due to inflation on all of the food products on his receipt.
Don Murray, another Crest shopper, also said inflation has increased his overall grocery bill. He noticed the price hikes in chicken, beef and eggs and how they impacted his budget.
Unfortunately, the new tax cut won't help him with the product he buys most. Known as the "critter man," Murray spends a substantial amount of his money to feed his animals. The receipt in his hand showed the same price for his dog's favorite treats as it did the day before.
"I spend about $150 on animal feed alone," Murray said. "I have a lot of critters, and I rescue them, too."
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Still, Murray remains optimistic. He said the bill will lower the overall costs of grocery bills and hopes animal feed prices will remain steady despite rising inflation.
"We already pay so much on taxes, Murray said. "You work, you get taxed. You have property taxes ... Anything helps. It's definitely going to help in the long run. "
What grocery items no longer have a state sales tax in Oklahoma?
The "grocery tax cut," as it is popularly called, eliminated the state's 4.5% tax on most food products. It is one of the largest tax cuts in state history, according to government officials. The Oklahoma Legislature approved the new bill earlier this year to support taxpayers across the state, which is expected to save shoppers hundreds of dollars in grocery bills annually.
Popular food items, such as milk, baby food, manufactured products and cereal will now be tax-free at the register. Not all food items are covered under the tax cut. It does not cover deli meats, any food or beverage items sold with utensils, or alcoholic beverages.
More: Oklahoma's grocery tax cut starts this week: What to know, what's exempt
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When the governor signed the grocery tax cut into law in February, he said the action would be "delivering on real relief for real Oklahoma families."
And outgoing Senate Leader Greg Treat, R-OKC, said in a news release Monday, “This legislation reflects our commitment to making life more affordable for all Oklahomans. The grocery tax is a regressive tax that impacts everyone every time they buy groceries. While this tax cut represents the largest tax cut in state history, it also supports the well-being of our citizens. I am proud to have supported this tax cut for many years and am proud to finally getting it across the finish line.”
Aaron Kimberlin, a shopper at the Neighborhood Walmart off 23rd Street felt skeptical about the grocery tax cuts amid inflated prices.
"In general, prices go up," Kimberlin said. "I mean, I don't see how grocery prices won't go down if the tax on them goes down. But, I mean, if taxes are being cut here, are other taxes going [up] somewhere else to make up for it?"
Other taxes might not play a part in expected grocery bill decreases, but food item price trends might. The bill was approved to provide financial relief to Oklahoma families as part of a broader effort by the state Legislature to address rising inflation costs. However, the tax has no effect on how commercial products are priced by manufacturers or producers.
The U.S. Department of Agriculture Consumer Price Index categorizes percent increases of all food items in two categories: food-at-home prices, which includes groceries, and food-away-from-home, which encompasses restaurant dining, takeout and similar activities. Grocery prices rose by 0.3% from June to July this year and are up 1.1% from 2023. The USDA expects inflation to increase food-at-home prices by 1.2% through 2024, although at a reduced pace from the last several years. Food-away-from-home prices are expected to increase by 4.1% this year and all food items will likely rise by 2.3%.
This article originally appeared on Oklahoman: 'Anything helps': For some Oklahoma shoppers, grocery tax cut came as a surprise
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