Bills passed to give residents financial relief

Almost everyone I talk to is concerned about the economy and how inflation is hurting them in one way or another. In response to the pressure everyone is feeling right now, the House passed several measures designed to give Oklahomans some financial relief during this time of inflation, unrest and uncertainty. Not all of these bills will make it to the Governor’s desk, but one that I hope does is House Bill 3349.

This measure would suspend the state’s 4.5% portion of the sales tax on groceries for two years. This will grant temporary relief while we continue our discussions on comprehensive tax reform. This does not affect county or municipal sales taxes on groceries. Local governments rely on these tax dollars to offer services such as police, fire, roads, and more to the citizens they serve.    

House Bill 3353 would allow a grocery sales tax credit to up to $180 a year for low-income Oklahomans, depending on income levels, age and household size. This tax credit enhancement also would be in place for two years and would help those most in need.

House Bill 1358 would grant a one-time tax rebate of $125 for individuals and $250 for households this year for Oklahomans who filed a state income tax return in 2021. The cost of the rebates would be paid for out of surplus state revenues as one-time expenses, leaving no impact on the overall state budget. 

House Bill 3350 would grant a permanent 0.25% reduction to all personal income tax brackets. The bill reduces the top personal income tax rate from 4.75% to 4.5%, saving the average taxpayer $121 per year, according to the Oklahoma Tax Commission. This is on top of a 0.25% reduction for personal income tax we passed last year. 

These bills passed the House but must still be picked up and passed through the Senate. If they pass in that chamber, they move to the governor for his consideration of signing them into law or vetoing.

Taxes are necessary to provide core services to our citizens. Public schools, roads and bridges, hospitals and health departments, public safety services, and more all rely on tax dollars. It is the Legislature’s responsibility to ensure those services are funded adequately and that the money expended is spent in fiscally responsible and transparent ways.

But we also must be mindful of balance. Oklahomans should be able to keep as much of their hard-earned money as possible – particularly at a time when the food at the grocery store, fuel for our cars, building materials, and many other products and services cost more comparatively than at any time in the last 40 years. 

It’s easy for some to make a discussion on tax relief a partisan issue. It shouldn’t be. It should always be about doing what’s right for Oklahomans in an ever-shifting economic picture. When times are lean, we grant relief. When times are better, we plan for when times are lean again. And the economic cycle continues. 

Please feel free to contact me at marcus.mcentire@okhouse.gov or (405) 557-7327.