Oklahoma – OK Governor Mary Fallin tells lawmakers to rescind sales tax on groceries, hike tax on smokes and gas

By Barbara Hoberock Tulsa World  – Posted: Tuesday, February 7, 2017 12:00 am

OKLAHOMA CITY — Gov. Mary Fallin proposed on Monday that the state sales tax be eliminated for groceries but expanded to some services.

She also proposed eliminating the corporate income tax but increasing taxes on cigarettes and gasoline to the regional average while giving teachers a meager raise.

At current projections, the state expects to have $868 million less to craft a fiscal year 2018 budget than it has for the current fiscal year.

Any move to increase taxes would have to start in the state House of Representatives and would require a supermajority in both legislative chambers or a vote of the people.

Fallin made the proposals during her 30-minute, seventh State of the State address to a joint legislative session assembled in the House Chamber.

She also included a plan to use bonds to help the Oklahoma Department of Corrections, to pay for a new Department of Health laboratory and to help the state’s mental health and juvenile affairs agencies.