The state has now dropped its 4.5% grocery tax for food and food ingredients. But what exactly is on the list of items excluded from the tax?

The main difference is unprepared versus prepared food, which is usually what indicated if something will be taxed at the state level. New guidance released by the state this week dives deeper into what is tax-exempt after state lawmakers passed the tax cut and Gov. Kevin Stitt approved House Bill 1955 last session. Traditional food and ingredients won’t be taxed, but things can get complicated at the deli.

Lunch meats and deli salad sold are both exempt. But if that deli salad is on a plate, it is taxed by the state.

Any heated meat, like rotisserie chicken, will also be taxed at 4.5%. However, items like part trays are exempt. \\Other exempt items include uncooked meats, baby food, produce and candy.

Examples of items that will remain taxed: aluminum foil, toiletries, vitamins and flowers, Alcoholic beverages, beer, dietary supplements, self-serve fountain drinks, rotisserie chicken, pet food, vitamins, toiletries, over-the-counter medications and food made by the seller (e.g., birthday cakes, sushi, sandwiches, deli and salad).

“The data is pretty clear that it will generate more for economic activity, which, in the end, not only are you putting more money back in the pockets of everyday Oklahomans, you’re also helping those businesses as well,” Pugh said.

The change is only for state taxes. Counties and municipalities that have a sales tax or grocery tax will still be in place.