1. Sales Tax Rebate Methodology All City Rebate Administration
City Rebates
Sales Tax Rebate Methodology
All City Rebate Administration

2. Sales Tax Rebate Council request for new sales tax rebate
Discussed Rebate Card – legal issues
It would require significant work with the grocery stores in town for them to charge sales tax, then rebate on the same bill
Not all vendors who sell food, regardless of size, would be able to accommodate it 
Concerns over the inability to control the use of the card and limit it to eligible individuals.  It would be burdensome on the vendors for the City to expect them to be responsible for insuring appropriate use. 
As a rebate (versus an exemption), the store would effectively be collecting the tax, then up-fronting a rebate, that the City would then need to pay back to the store/vendor to make them whole, which again would be burdensome.

3. Sales Tax Rebate – Proposed Design
According to the US Department of Agriculture Economic Studies Division, in 2016 (the latest data available), people in the US spent approximately $2, per capita on food at home (which includes food acquired from grocery stores, convenience stores, other food stores, home delivery and purchases directly from farmers), or $5, per household, based on an average household size of 2.62.  If the City of Longmont tax rate of 3.53% was applied, in general, $77.77 would be paid by individuals, and $ by a household in any given year.  Recommended administration with other rebates.
Program
Application Location
Income Level
Demographic/Other Requirements
Amount of Rebate
Application Timeframe
Sales Tax Rebate
Online, Phone, In Person (various City facilities)
LEAP (160% Federal Poverty level)
N/A
$78 for single applicant, $78 for each additional family member, limit of $204 per family
All Year

4. Rebate Administration Today
Program
Application Location
Income Level
Demographic/Other Requirements
Legal Requirements
Application Timeframe
Park & Greenway Fee Rebate
Senior Center
104PTC (113% Federal Poverty, or $13,608 per person/$18,343 per couple)
65+ or disabled
Lawful Presence Affidavit
Tax Prep Period (Feb – Apr)
Electric Discount
Service Center/Mail
All Year
Electric Life Support Discount
None
Uses life support equipment
Rent/Property Tax Rebate
Water Rebate
Online/Mail
LEAP (160% Federal Poverty, or $19,296 for individual/ $26,796 per couple/$33,696 per family of 3)
N/A

5. Central Rebate Administrator
Proposed Process
Documents Reviewed
Rebate Issued
Central Rebate Administrator
Online
Phone
In Person
Utility Bill Credit
Application Methods

6. Proposed Changes Program Current Income Qualifier
Proposed Income Qualifier
Current # participants
Estimated Participants
Additional Cost
Park & Greenway Fee Rebate
104PTC (113% Federal Poverty, or $13,608 per person/$18,343 per couple)
LEAP (160% Federal Poverty, or $19,296 for individual/ $26,796 per couple/$33,696 per family of 3)
60 ($24/ year per household)
600
$12,960
Electric Discount 68
($48/ year per household)
$25, % rate change
Electric Life Support Discount
None
Current applicants stay on the list, new applicants qualify via LEAP (160% Federal Poverty, or $19,296 for individual/ $26,796 per couple/$33,696 per family of 3)
160 ($ average/ year per household)
Unknown, may decrease, as now will be income qualified and need life support equipment
Rent/Property Tax Rebate
73 ($67.37 average/ year per household)
$35,504
Water Rebate
39 ($72/ year per household)
Only additional cost through additional participants

7. Community Engagement Process
Focus Groups
Tabling
Interviews

8. Questions for Council
What is your preferred methodology for processing the existing rebates? Some things to consider include if you want to:
Standardize eligibility requirements (LEAP, 104PTC, something else)?
If so, standardize eligibility requirements at what rate (LEAP, 104PTC, something else)?
Lump sum rebate or monthly?
Direct check or rebate on utility bill?
What is your preferred methodology for processing the new Sales Tax Rebate?
What eligibility requirements would you like to use?
What rebate amount do you prefer?
How would you like refunds processed?
What other information would be helpful in your decision making?