OKLAHOMA CITY – Oklahoma residents will see a reduction in their grocery bills with the impending elimination of the state sales tax on groceries.

House of Representatives Bill of 1955 repeals the state’s 4.5 percent tax on food, effective August 29.

Local taxes, such as those levied by cities, remain in place.

The law does not prohibit cities from increasing their share of the food tax.

“Yes, there is a possibility that cities and counties could raise their sales taxes after the state sales tax is repealed,” said Dave Hamby, spokesman for the Oklahoma Policy Institute. “But given the difficulty many local governments have in getting voters to approve a sales tax increase, that is very unlikely. And certainly not to a degree that is anywhere near the state sales tax rate of 4.5%.”

According to the Tax Foundation, Oklahoma sixth nationally in the combination of state and local sales tax rates. The maximum local rate in Oklahoma is 7%.

The measure does not eliminate all state sales taxes in grocery stores.

Ready meals such as fried chicken will continue to be taxed. Dog food, hot deli soups and toiletries will continue to be taxed, as will over-the-counter medicines, beer, vending machines and sushi.

Frozen meals, fish, meat, baby food, sweets, canned goods and potato chips are not taxed.

According to the Oklahoma Policy Institute, a family earning $40,000 a year saves about $125.

A family with an income of over $619,000 saves about $408 per year.

According to figures from the Oklahoma Tax Commission, state revenues are expected to decline by just over $370 million as a result of the measure.

The preparation of this much-vaunted measure took years.

Governor Kevin Stitt said it was necessary to give families a break from inflation as state coffers recorded record savings.

He and Republican House Speaker Charles McCall of Atoka wanted further cuts, such as a reduction in income taxes, but they did not find enough support in the Senate.