Illinois: Cook County Soda Tax Could Cost 87 Million In Fed Food Stamp Funding – IOTW Report

Illinois: Cook County Soda Tax Could Cost 87 Million In Fed Food Stamp Funding

Illinois Policy:

An error in implementing Cook County’s wildly unpopular penny-per-ounce sweetened beverage tax could cost the state millions in federal aid.

Although federal law requires drinks purchased through the Supplemental Nutrition Assistance Program, or SNAP, commonly known as food stamps, to be exempt from the county’s new penny-per-ounce sweetened beverage tax, the county’s ordinance does not adhere to federal food stamp regulations, according to state officials.

A retailer selling sweetened beverages to a customer with food stamps may comply with the tax in one of three ways, according to Cook County. Retailers can include the tax in the selling price of the beverage, add the tax at the point of sale, or POS, or by modifying their POS systems to not charge for the tax when food stamps pay for the transaction. If retailers choose one of the former two options, they are obligated to refund the customer with food stamps the amount of tax paid.

The U.S. Department of Agriculture’s Food and Nutrition Services, or FNS, which runs SNAP, deems these logistics illegal because FNS does not permit food stamp users to be charged with a sales tax at any point in the sale.

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7 Comments on Illinois: Cook County Soda Tax Could Cost 87 Million In Fed Food Stamp Funding

  1. Most of the food stamp recipients I have seen at the grocery store eat better than I do (steaks, Salmon, Shrimp, lobster and other premium foods). It’s not that I don’t buy these foods, it is infrequent and for special occasions, not every month.
    I live on a moderate retirement and still pay taxes so EBT recipients can eat high on the hog.

  2. This so called soda tax was a classic kneejerk reaction by cook county who did not investigate laws already on the books. I would be embarrassed if I was on the board. Granted, Cook county/Shitcago is desperate for funds due to decades of overspending and pure waste. I think the common sense solution would be to decrease spending but that’s just me. Iffen ya shit in your own messkit, don’t ask me to clean it up.

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