Oklahoma Senate Approves State Grocery Tax Repeal

http://www.nytimes.com/aponline/2010/02/09/business/AP-US-Grocery-Tax-Re...

By THE ASSOCIATED PRESS
Published: February 9, 2010
Filed at 2:59 p.m. ET

OKLAHOMA CITY (AP) -- An Oklahoma 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.