Senate OKs repeal of grocery sales tax

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@ February 10, 2010 6:01 AM

OKLAHOMA CITY (AP) – A Senate committee has approved a bill to eliminate the sales tax on groceries once state revenues return to where they were before the economic downturn.

The Senate Finance Committee voted 10-4 on Tuesday for the bill by Durant Democrat Jay Paul Gumm.

With the state facing an estimated $1.3 billion shortfall, Gumm acknowledged now is not the time to eliminate the tax, which would cost the state an estimated $406 million each year.

But he says once the state’s economy has recovered to pre-downturn levels, the proposal would provide a big financial boost to low- and middle-income families.

The measure also would require the state to reimburse cities and counties for the local sales taxes.