Battle Over 3% Food Tax Repeal: Loveland Residents Clash on Ballot Initiative

A contentious issue has taken center stage in Loveland as proponents and opponents engage in a heated debate over a proposed ballot initiative seeking the 3% food tax repeal for home consumption.

Proponents and opponents are actively working to garner support for their positions on food tax repeal. (Photo: KIDK)

Battle Over 3% Food Tax Repeal

Supporters of the food tax repeal argue that it will bring much-needed relief to Loveland’s low and fixed-income households, who are grappling with the burden of inflation.

They maintain that food tax repeal will result in substantial savings for residents.

Let Us Vote, a registered issue committee backing the food tax repeal initiative estimates that a four-member household could save between $450 to $500 annually on grocery expenses, while a single individual might expect to save between $130 to $165 per year. These savings, though not astronomical can make a significant difference for those struggling to make ends meet.

Mayor Jacki Marsh, a vocal proponent of the food tax repeal highlights the plight of vulnerable residents, emphasizing that the additional funds could mean a world of difference for seniors on fixed incomes or those facing financial hardships.

Loveland City Council members caution that eliminating 15% of the city’s total sales tax revenue each year would have an impact that cannot be easily absorbed.

READ ALSO: Grocery Tax In Illinois; Poll Shows 7 In 10 Illinoisans Call For Its Permanent Removal

Food Tax Repeal Opponents

On the other side of the debate, opponents raise concerns about the potential $9 million loss to the city’s general fund if the food tax repeal is implemented.

They argue that such a substantial reduction in revenue would threaten important city programs and services, which residents have come to rely on.

Opponents of the food tax repeal also question the projected savings offered by supporters, contending that the figures may be exaggerated and rely on misleading financial data.

Councilor Steve Olson, in particular, challenges the notion that families could save as much as $15,000 annually on food expenses, suggesting that a more realistic estimate would be around $275.

Additionally, there are concerns that the food tax repeal could have ripple effects on ongoing development projects in the city.  Any reduction in sales tax sharing could potentially slow down downtown growth and infrastructure improvements.

Both sides are actively working to garner support for their positions in food tax repeal, with Let Us Vote engaging in a petition drive to gather the required signatures by August 9th. If successful, Loveland residents will have the opportunity to vote on the issue in November, with the proposed food tax repeal going into effect on January 1, 2024, should it pass.

READ ALSO: $20.9 Billion Property Tax Relief Bill For Teachers, Renters Announced In Texas