Tuesday, February 10, 2009

Increase OK grocery tax credit

Oklahoma is one of 16 states that taxes groceries. The state has offers a tax credit to low-income households and individuals to help offset the sales tax they pay on groceries, but the amount of the credit has not been raised since 1990. The eligibility level has not been adjusted for inflation since 1998.

According to the Oklahoma Policy Institute, Oklahoma has one of the highest rates of hunger and food insecurity in the nation. They're supporting action in the state house and senate to expand the grocery tax credit. According to OPI's fact sheet:
HB 2204 (Rep. Trebilcock) and SB 567 (Sen. Rice) would help hard-pressed Oklahoma families by increasing Oklahoma’s Sales Tax Relief credit, an existing tax credit intended to offset the sales tax on groceries for low- and moderate-income households. The bills as introduced would:
  • Increase the amount of the Sales Tax Relief credit from $40 to $60 per household member for those who are currently eligible for the credit (up to $50,000 for tax filers claiming a dependent child, senior, or person with disability status, or $20,000 for others);
  • Expand eligibility for a partial credit to $60,000 or $30,000, depending on household status. Those with income between current eligibility and expanded eligibility levels would receive a $30 credit;
  • Index eligibility levels annually to inflation beginning in 2011.
You can find email addresses and phone numbers here to encourage committee chairs in the House and Senate to hear these bills. For more information on the grocery tax credit, you can read the Oklahoma Policy Institute's policy brief.

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