Oklahoma residents are preparing for the annual back-to-school sales tax holiday set to occur this Friday through Sunday. During this period, state, city, and county sales taxes will not be collected on clothing and footwear priced under $100. However, the holiday does not extend to back-to-school supplies such as backpacks and books, nor to accessories or specialized athletic and protective clothing and footwear.
The Legislative Journey
Senate Bill 861, enacted in 2007, established this sales tax holiday. Then-Senator Jay Paul Gumm, a Democrat from Durant, was a leading advocate for the measure. Reflecting on his efforts, Gumm shared, “I was the one jumping up and down and made sure they couldn’t not do it. You know, there were a lot of lukewarm feelings about it.”
Cities and towns initially hesitated to support the holiday until an agreement was made for the state to reimburse them for any lost revenue. Gumm highlighted the impact of Texas’s sales tax holiday on Oklahoma retailers, stating, “We watched our stores empty out on the Texas sales tax holiday because our constituents who were on the border were crossing the state to take advantage of that. And it wasn’t just border counties. People from Cleveland and Oklahoma counties could be found shopping in north Texas.”
Ultimately, Oklahoma’s lawmakers adopted a similar model to Texas’s holiday. According to the Oklahoma Tax Commission, the holiday has cost the state an estimated $125 million since its inception, including lost state sales tax revenue and reimbursements to cities and counties.
Economic Impact and Future Considerations
Despite the initial concerns about lost revenue, studies showed that shoppers often spend more during the tax holiday, boosting overall sales for cities and counties. Gumm mentioned that while he wished school supplies could be included in the holiday, compromises were necessary to get the bill passed.
The idea of expanding the sales tax holiday to include more items, such as school supplies, resurfaces annually. Mike Fina, Executive Director of the Oklahoma Municipal League, expressed the organization’s consistent opposition to removing sales tax from any items due to cities’ dependence on this revenue for providing services.
House Speaker Designate Kyle Hilbert, a Republican from Bristow, noted that while bills to expand the holiday are proposed every year, recent legislative focus has been on eliminating the state’s sales tax on groceries. However, he remains open to discussions about expanding the back-to-school holiday in the future.
A Lasting Legacy
Gumm, who left office in 2010, continues to receive messages of gratitude for his role in creating the sales tax holiday. “It’s one of the things I’m most proud of for my time in office because it really does help everyday families struggling to make ends meet,” he said.
As Oklahomans prepare for the upcoming tax holiday, the tradition stands as a testament to legislative efforts aimed at easing the financial burden on families during the back-to-school season.