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OKLAHOMA CITY — Starting Thursday, Oklahoma residents will have lower grocery bills as a measure to eliminate the state tax on groceries takes effect.

House bill of 1955, authored by Speaker of the House Charles McCall (R-Atoka), repealing the 4.5% state tax.

It’s a measure that has received broad, bipartisan support in both houses of the Oklahoma Legislature, as inflation in the state and around the world is expected to rise in 2021. Democratic leaders in the House and Senate say their caucuses have been pushing for repeal of the grocery tax for years.

Shiloh Kantz, executive director of the Oklahoma Policy Institute, said the measure provides far too little support for low- and middle-income families and seniors who need the help most.

Governor Kevin Stitt said earlier this year that Oklahoma families would save $800 annually by eliminating the state’s sales tax on groceries. A fact check released this month by the institute, which included the Institute on Taxation and Economic Policy, found that an annual income of $40,000 would save $125, while families earning over $619,000 would save only about $408 a year. The middle 20 percent of earners, who make between $44,000 and $74,900, would save about $178.

Local taxes will continue to accrue, meaning that if counties and cities increase their tax rates, there could be a tax increase in the future.

McCall said people are reminded every week that there is inflation in the grocery business, which is why the bill includes a two-year moratorium that prevents municipalities and counties from raising their taxes on groceries for two years.

“We know that over time there will be pressure at the local level. They may want to raise taxes, which will completely negate the federal relief measures,” McCall said in February.

The Republican senator pro tempore from Oklahoma City said the tax cut would provide immediate relief to families struggling with rising living costs and inflation.

“This bill reflects our commitment to making life more affordable for all Oklahomans,” Treat said in a statement Thursday. “The grocery tax is a regressive tax that hits everyone every time they shop for groceries. Not only is this tax cut the largest tax cut in state history, it also contributes to the well-being of our citizens.”

Oklahoma has the sixth-highest tax rate when combining state and local taxes at 8.99%, according to the Tax Foundation. Oklahoma was one of 13 states that taxed food at the state level.

Standard foods such as bread, raw meat and dairy products are exempt from tax. However, the state tax still applies to deli platters, sushi, hot foods such as fried chicken and hygiene products.