Which items are still taxed and what shoppers think

TULSA, Okla. – Oklahoma officially said goodbye to the so-called food tax on August 29th.

However, the state has only removed the 4.5 percent tax on certain types of food products.

However, shoppers told 2 News that this change is a huge relief for them and their families and that a heavy financial burden is now lifted from their shoulders.

Buyers’ struggles

The U.S. Census Bureau reported in October 2023 that Oklahomans spend an average of $279.16 a week on groceries — not far from what the average U.S. household spends, which is about $270.

2 News caught up with Patricia, an Oasis Fresh Market shopper who spends about $350 on each grocery trip.

She’s had to spend more on food as her baby has grown, telling us her average take was $175 two or three years ago.

Patricia felt that eliminating this grocery tax would save her a lot of money each week.

“It makes me feel good because … you could save, you know, especially when you have family at home and everything, and things are so high,” she said. “And coming from a family that saves and bargains, so I’d like to do that. In fact, I don’t even do the coupon anymore. But it’s only a good thing if we can save money.”

2 News also met an Oasis customer named Mylikia, who has “a big household right now, like 5 to 6 people.”

She said food prices have “spiked” due to COVID-19. “Not even food,” she added, “like napkins, household items.”

How much she tends to spend: “I say if you wanted to go grocery shopping like once a month, it would be like $400 or so, maybe $500, so it’s kind of expensive when we go. at the grocery store every month or just every day.”

As a single mother of four, not paying 4.5% more for certain groceries is a godsend.

“I feel like this is going to affect us in a very positive way because everything is high right now, inflation, food, you know, taxes are high,” Mylikia said. “So with them going, I feel like that’s going to help every family, community and, you know, every race.”

Which items do not have sales tax now?

The state sales tax is only eliminated on what Oklahoma says are “foods and food ingredients.”

The new tax guidelines classify those as “substances in a form (liquid, concentrate, solid, frozen, dry or dehydrated) that are sold for ingestion or chewing by humans” and “consumed for their taste or nutritional value”.

This is pretty bureaucratic language, so it might be easier to understand what is not considered food or food ingredients:

• Alcoholic beverages
• Tobacco products
• Food supplements
• Marijuana, usable marijuana, or marijuana-infused products
• Non-prescription drugs with drug or active ingredient information label
• Prepared food

“Prepared food” is intended to be consumed immediately on or off the seller’s property. It means a few other things:

• Food that is sold in a heated state or that is heated by the seller; or
• Food in which two or more ingredients are mixed or combined by the seller and sold as a single item; or
• Food sold with eating utensils, plates, bowls, cups, glasses, napkins or straws provided by the seller.

The Oklahoma Tax Commission has an in-depth list detailing the types of items on which buyers must still pay state sales tax.

Although Oklahomans no longer have to pay state sales taxes on food and food ingredients, they still have to pay local sales taxes and excise taxes on these items.

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