Oklahoma committee greenlights income, grocery tax breaks

(The Center Square) – Two bills that would reduce personal income taxes and one that would eliminate the state’s portion of the grocery tax received “do pass” recommendations from the Oklahoma House Appropriations and Budget Committee Thursday.

House Bill 1953 would decrease the personal income tax rates for all tax brackets by .25% beginning next year. That means the top marginal individual income tax rate would be 4.5% compared to the current 4.75%, according to the bill.

If passed, an estimated $92.2 million would remain in taxpayers’ hands in 2024. That number goes up substantially in 2025, where an estimated $235.2 million would stay with taxpayers, according to the bill’s fiscal analysis.

House Bill 1954 would reduce the personal income tax rate by one-half of a percentage point for all tax brackets beginning in 2024. That would make the top marginal personal income tax rate 4.25%, slightly lower than HB 1953 would.

It would result in $182.2 million remaining in taxpayers’ hands in 2024 and $464.8 million in 2025, the fiscal analysis estimates.

The committee also approved eliminating the state’s portion of the grocery tax.

Doing away with the state’s grocery tax has long been on Gov. Kevin Stitt’s agenda. After failing to get it through the Senate, he called for it again during his State of the State address last month.

“These cuts will save each family in Oklahoma hundreds of dollars each year,” Stitt said. “And it will continue to make Oklahoma one of the best states to live, work, and raise your family.”

The governor has also been a proponent of reducing personal income taxes and proposed dropping it to 3.99% during his address.

The tax cut proposals come as Oklahoma’s state government currently has a $1.8 billion surplus and $4 billion in savings, according to the governor.

This article First appeared in the center square

Follow by Email