Oklahoma Gov. Kevin Stitt calls on lawmakers to end state grocery tax
Oklahoma Gov. Kevin Stitt asked state lawmakers to pass legislation to end the state grocery tax during a media conference at the state Capitol.
Addison Kliewer, Oklahoman
As Oklahoma has some of the highest average grocery bills in the country in 2024, two bills working their way through the Oklahoma Legislature aim to reduce a 6% markup on groceries that’s been in place since the 1950s.
Senate Bill 638, introduced by Senate Majority Leader Julie Daniels (R-Bartlesville), and House Bill 1024, introduced by Rep. Steve Bashore (R-Miami), both target Oklahoma’s “Unfair Sales Act” of 1949. The law mandates a markup of up to 6% on most grocery store goods – including baby food, some medicines and gasoline – to cover a “proportionate part of the cost of doing business.”
At the time, proponents of the act said that the markups protected small businesses from big box stores like Sam’s Club, Walmart and Target, who could afford to undercut local sellers.
But today, Daniels and Bashore argue this cost is now prohibitive to business in the state and unnecessary for Oklahoma shoppers to shoulder.
“Oklahoma is one of only seven states with this mandatory markup on retail goods still in place, and it creates an uneven playing field for our consumers and store owners,” Bashore said in a press release. “This legislation should give Oklahomans some inflation relief, and it will give retailers greater discretion over setting their own prices.”
The business landscape has changed drastically since 1949, Daniels said, and telling businesses how to price their goods is not productive in the modern business landscape.
“To tell a larger retailer, who has been forced to mark up their goods over the years to protect a smaller retailer, that they are now hamstrung in being able to compete [in this global landscape], that’s just not something our government should be doing,” Daniels said.
For Daniels, she feels the bill will act almost as a “tax decrease” for consumers without adjusting the tax line.
“It still protects businesses from predatory pricing and low-cost pricing because we still have that statute on the books,” Daniels said. “It may have been well-intentioned back in 1949, but that’s a long time for us to artificially determine what things should cost in the marketplace.”
Sam’s Club, Walmart show support for bills in OKC
Since the bill was introduced, Sam’s Club and its owner Walmart have both made an effort to show support for SB 638 by placing stickers with information about the bill in stores and on gas pumps at their locations around Oklahoma City.
When asked to comment on why they support the bill, a Walmart spokesperson said, “Walmart is committed to helping our customers save money and live better. Senate Bill 638 is an approach aimed at providing cost savings to Oklahomans by repealing an outdated 6% markup law. This bill will allow customers the opportunity to save money on essential goods and fuel.”
At Sam’s Club on W Memorial Road, text on the sticker suggests Oklahomans “could pay less for gas” and that it was time to “lower prices and repeal mandatory markups in Oklahoma.”
The stickers include Sam’s Club logos, a QR code to scan for more information, and a statement saying “paid for by Sam’s Club in support of Consumer Action Network.”
According to data provided by ProPublica, the Consumer Action Network, Inc. is registered as a 501(c)(4) corporation, which is a tax-exempt entity focused on social welfare with more flexibility in political lobbying compared to 501(c)(3) charities. According to the organization’s 2023 tax forms, the latest available, officers and directors of CAN include two people who run an East Coast corporate public relations company, one person who worked in public affairs and government relations for Walmart, and a lobbyist.
A political action committee associated with Walmart has reported giving $3,000 to Bashore’s campaign and $4,000 to Daniels’ campaign over the last three years, according to state and federal campaign filings.
What happens next with SB 628, HB 1024?
Daniels and Bashore are co-authors of the others’ bill. Their respective House and Senate measures are similar, but Bashore’s HB 1024 would not eliminate the markup on gasoline.
The legislators haven’t discussed which they’d prefer to get signed over the other if they advance to Gov. Kevin Stitt’s desk for approval. Both bills aim to take effect on Nov. 1 if approved.
If SB638 is passed, businesses will decide whether to keep the markup at 6%, lower it or even eliminate it.
“It doesn’t necessarily mean it will be eliminated, but at least the State of Oklahoma will not be putting this artificial floor on what somebody can charge,” Daniels said.
Daniels said she plans to present the bill before the Senate this week as that is the final time to showcase a bill before it can be passed to the opposite chamber.
