Oklahoma Governor Eliminates State Portion of Grocery Sales Tax

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Oklahoma Governor Eliminates State Portion of Grocery Sales Tax

Shawnee, Oklahoma, June 3, 2024 – In February of 2024, Governor Stitt signed House Bill 1955 into law, eliminating the State’s portion of the grocery sales tax. The new law is set to take effect in late August of 2024. While the State sales tax on groceries will be removed, city or county grocery sales taxes will still apply.

The grocery sales tax is a major source of recurring revenue for the City of Shawnee general government operations. 

Within Shawnee, taxable purchases currently incur a 9.995% sales tax, of which 4.5% go to the State of Oklahoma, 1.495% fund various Pottawatomie County activities, and 4.0% are collected for the City of Shawnee operations. The City’s portion specifically includes the following components:
  • 2% Permanent Tax: Approved by Shawnee voters in 1976, this tax supports the City’s General Fund, which funds municipal functions including the operations of the Fire, Police, and Streets Departments.
  • 1% Permanent Tax: Approved by Shawnee voters on March 2, 1999, this tax is divided as follows:
    • 7/8 is allocated for Capital Improvements, Economic Development, and Debt Service Payments.
    • 1/8 is allocated for Fire and Police Departments’ salaries, equipment, training, and hiring.
  • 0.5% Temporary Tax: Approved by Shawnee voters on June 26, 2018, this ten-year tax is allocated for capital improvements and is divided as follows:
    • 1/4 for Public Safety.
    • 1/4 for Streets and Roads.
    • 1/2 for Parks and Public Facilities.
  • 0.5% Permanent Tax: Approved by Shawnee voters in 2023 and effective since April 1, 2023, this tax funds capital improvements and is currently pledged for the Wastewater Treatment Plant project.

The elimination of the State of Oklahoma’s grocery sales tax will provide financial relief to residents while maintaining the essential City tax revenues needed for vital public services and infrastructure projects. The City of Shawnee remains committed to utilizing taxpayer funds effectively to support our community’s growth and wellbeing.

For more information, please contact the City Manager’s Office at 405-878-1601.
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