OKLAHOMA CITY (OBV) — Oklahoma House of Representatives Democratic Leader Cyndi Munson wants to expand sales tax relief for struggling Oklahomans.
Munson, D-Oklahoma City, recently filed House Bill 2228 to modernize and expand the state’s Sales Tax Relief Credit.
The Sales Tax Relief Credit was created in 1990 to offset the sales tax on groceries for low-income households, according to OKPolicy.org.
“In two weeks, we will head back to the State Capitol to work on behalf of all Oklahomans,” Munson said last week. “My focus will be to tackle the number one issue I heard on the doorsteps: providing financial relief for working families. As bills are being filed today, Oklahomans will be able to see what and who their state leaders prioritize. For me, it is finding ways to lower costs for working families who need it the most.”
OKPolicy says the Sales Tax Relief Credit provides a $40 rebate to each member of a household with incomes at or below the following levels:
$50,000 per year for filers who are elderly, have a physical disability, or claim a dependent; or
$20,000 per year for everyone else.
The state expanded credit eligibility in 1998 but the amount remained frozen at $40.
“We talk a lot about finding the best solutions to provide financial and economic relief for every day, working Oklahomans. Modernizing and expanding the sales tax relief credit will provide relief for lower and middle-income earners while protecting our state’s revenue base,” Munson said. “HB 2228 will help thousands of Oklahomans who currently stretch their dollars for rent, groceries, utilities, and gasoline for their cars. I am hopeful for bipartisan support on this piece of legislation so we can begin to truly address the real economic challenges of Oklahoma families.”
The refundable credit can be claimed in an amount that exceeds a taxpayer’s income tax liability.
Oklahomans who file for individual sales relief must physically live in Oklahoma for the entire year of filing, and their total gross household income cannot exceed $20,000 unless one of the following applies:
- You can claim an exemption for your dependent, or
- You are 65 years of age or older by 12/31/06, or
- You have a physical disability constituting a substantial handicap to employment (provide proof, see Form 538-S).
If any one of the above three items pertains to you, your total gross household income limit is increased to $50,000. Fill out and enclose Form 538-S if you qualify for this credit.
In Tax Year 2022, 357,684 households claimed the credit, which amounted to a total of $28.6 million, according to the Oklahoma Tax Commission’s 2023-24 Tax Expenditure Report.
