1. Food Tax Rebate Program

2. 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

3. Food Tax Rebate Programs
Arvada – Resident Tax Rebate Program
Boulder – Food Tax Rebate Program

4. 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

5. 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

6. 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

7. 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

8. Rebate amount Longmont sales tax rate is 3.53%
$85 Is equal to $2,408 of purchases
$ $2,834
$ $3,541
$ $4,249
$ $5,666
$ $7,082

9. Program Cost/Timing Assuming similar criteria to Arvada & Boulder
Estimated rebates $100,000
Administrative expenses ,000
Prepare ordinance within two months
Include in 2019 proposed budget
Implement in 2019

10. Council Direction:
Does City Council want to implement a food tax rebate program for Longmont?
What eligibility criteria?
How much of a rebate?