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 1st 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?