Food Tax Rebate Program Grocery Tax Exemption Revised
Food Tax Rebate Program
Grocery Tax Exemption • Revised estimate of impact of exempting food for home consumption on the 2019 budget is a loss of $9. 41 million • General Fund - $4. 53 million • Public Improvement Fund - $800, 000 • Open Space Fund - $533, 000 • Streets Fund - $2 million • Public Safety Fund - $1. 55 million
Food Tax Rebate Programs • Arvada – Resident Tax Rebate Program • Boulder – Food Tax Rebate Program
Arvada Program Statistics • • • Population: 115, 000 Sales tax rate: 3. 46% Process 1, 100 to 1, 200 rebates annually Amount rebated: $120, 750 Average rebate: $105 Rebate of $85 for 1 st person; $50 each additional
Boulder Program Statistics • • • Population : 108, 000 Sales tax rate: 3. 86% Process 920 rebates annually Amount rebated: $100, 000 Average rebate: $108 Rebate of $83 for individual & $253 for families
Eligibility Options Senior citizens – minimum age of… 62? 65? Disabled individuals Single – age 55 to 65, living alone Single head of household with dependent children • Family with children under 18 in the household • •
Income Eligibility HUD annual income limits - 50% of Median Family Income Family Size Annual Income Limit 1 $38, 050 2 $43, 450 3 $48, 900 4 $54, 300 5 $58, 650 6 $63, 000 7 $67, 350 8 $71, 700
Rebate amount Longmont sales tax rate is 3. 53% • $85 Is equal to $2, 408 of purchases • $100 $2, 834 • $125 $3, 541 • $150 $4, 249 • $200 $5, 666 • $250 $7, 082
Program Cost/Timing Assuming similar criteria to Arvada & Boulder • Estimated rebates $100, 000 • Administrative expenses 20, 000 • Prepare ordinance within two months • Include in 2019 proposed budget • Implement in 2019
Council Direction: • Does City Council want to implement a food tax rebate program for Longmont? • What eligibility criteria? • How much of a rebate?
- Slides: 10