After years of discussion and votes that carried over from 2023 to 2024, the Oklahoma House and Senate have sent to the governor a bill that reduces the tax on groceries.
TRANSCRIPT
Dick Pryor: This is Capitol Insider - taking you inside politics, policy, and government in Oklahoma. I'm Dick Pryor with Quorum Call publisher Shawn Ashley. The reduction of the grocery sales tax rate from 4.5% to zero has moved close to reality. The Senate voted in favor of it 42 to 2 after the House passed it last year. So, Shawn, what happens now?
Shawn Ashley: Well, the bill is now on Governor Kevin Stitt’s desk and he said during his State of the State address and has reiterated several times since then that he would sign any tax cut bill that reaches his desk. Stitt signaled Thursday he would, in fact, sign the bill. “Today, we get to fulfill a promise to all four million Oklahomans and pass the largest single year tax cut in Oklahoma history,” Stitt said. “Cutting the grocery tax means relief for all Oklahomans.” Now, the bill did not pass with an emergency clause, so that means it cannot take effect until 90 days after the legislature adjourns Sine Die. That means it will probably take effect sometime in August following the legislature's May adjournment.
Dick Pryor: What moved the Senate to finally take up the bill and approve it?
Shawn Ashley: Senate President Pro Tem Greg Treat announced after a lengthy Senate caucus meeting Wednesday that the Senate would take up the grocery tax bill. Now those meetings take place behind closed doors, so we don't know exactly what was discussed. But Treat said on the Senate floor Thursday his caucus had discussed reducing the income tax rate, raising the standard deduction and other tax cut ideas before agreeing on the grocery sales tax reduction. Treat also noted on the Senate floor that the budget was another consideration. Eliminating the state sales tax on groceries eats up most of the reoccurring revenue growth, so state agency budgets will have to remain flat. At the same time, Treat noted, the state has sufficient savings to address one time needs.
Dick Pryor: A resolution has passed out of the House Rules Committee that would dramatically change the initiative petition process in Oklahoma. That's the process that allows citizens to place state questions on the ballot, rather than going through the legislature. As currently drafted, what would this resolution do?
Shawn Ashley: H.J.R.1045 proposes a vote of the people on a constitutional amendment that would require voters’ signature percentage thresholds being met on a county-by- county basis, rather than statewide, before any initiative petition or referendum petition could be placed on the ballot as a state question.
Dick Pryor: The initiative petition process has been available to Oklahomans since statehood. What's the problem this legislation is supposed to solve?
Shawn Ashley: Representative David Harden, the resolution's author, said it would give rural Oklahomans a voice in proposed state questions. Harden said, “it allows each county to have their voice. If we're going to do a state question, someone will have to go to each of the 77 counties and collect at least 5% of the registered voters’ signatures.”
Dick Pryor: That's a curious argument. As a practical matter, if this bill becomes law, it will be virtually impossible for citizens to put issues on the ballot, leaving everything up to the Oklahoma legislature. What are lawmakers afraid of?
Shawn Ashley: Consider the last three state questions that have been approved by voters: medical marijuana, felony sentence reduction, and Medicaid expansion. All three passed largely because of support from Oklahoma's urban centers and tended to fail in rural areas. Under the resolution, it is doubtful those proposals would have even made it to the ballot. Michelle Tilley, an attorney who has worked on several initiative petitions, told a House committee in September, “this is not some free-for-all where we're going out and changing things every five minutes. This is for serious, serious issues.”
Dick Pryor: Legislators consider many different issues during the session. One they have talked about for years concerns licensing of cosmetologists and barbers. There's a bill addressing that. What is it?
Shawn Ashley: Senate Bill 1489, which transfers all the duties of the State Board of Cosmetology to the state Department of Health. Lawmakers for years have been expressing concern about the board regarding delays in issuing licensing and conducting inspections, and an interim study was held about it in the fall. It appears the issue may be nearing a resolution, although there are still a lot of details to be worked out in that bill.
Dick Pryor: What should we watch for in the week ahead?
Shawn Ashley: Thursday is the deadline for committees to be heard in their chamber of origin - House bills in House committees, Senate bills in Senate committees. So, we'll be seeing a lot of committee meetings and action there.
Dick Pryor: Thanks, Shawn.
Shawn Ashley: You're very welcome.
Dick Pryor: For more information, go to quorumcall.online. You can find audio and transcripts at kgou.org and look for Capitol Insider where you get podcasts. Until next time, with Shawn Ashley, I'm Dick Pryor.
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