Most Illinois residents will soon be paying the one-percent state sales tax on their groceries again.
Governor JB Pritzker's temporary tax relief is set to expire July 1 following a one-year suspension. It covered what the state refers to as "low-rate" grocery items, not the "high-rate" foods and beverages taxed at the full 6.25%.
Manuel Villaneuva, western regional director for Restaurant Opportunities Center United, a nonprofit advocating for workers in the restaurant industry, said the return of the 1% tax can be tough for the low-wage workforce, as pay is still relatively low since the pandemic, even as Illinois rents continue to climb.
He pointed out inflation is not making things any easier.
"Those little pennies on the dollar -- once you go to the grocery store -- for a family of four that is an average of $500 every two weeks," Villaneuva observed. "That can be really detrimental for their expenses."
Although many believe exempting groceries from state sales tax bases has a progressive effect, research from the Tax Foundation suggests it is not the case. It called grocery exemptions a middle-income, not a low-income, benefit, noting middle earners can more efficiently recoup the expense through grocery tax credits.
There is always some confusion about low-tax-rate versus high-tax-rate foods, based on the state's guidelines for what qualifies as a "prepared" food product.
Villanueva covers California and Minnesota as well as Illinois, and asserted although all states tax prepared foods, it is sometimes difficult to distinguish what is considered a "prepared" food.
"The only thing that I've heard of is maybe like a service charge for service workers and food workers, but never a tax on food," Villanueva emphasized. "If something like this were to happen in Illinois, you know, it would spark the flame. It's not sustainable for a lot of states, and it's not fair."
For people located within the Illinois Regional Transportation Authority or Metro-East Mass Transit District, the 1% local tax on food was never suspended. Thirty-seven states do not tax groceries at all, and of the 13 states doing so, Hawaii, Idaho, Kansas and Oklahoma provide a tax credit or rebate to offset costs for lower-income households.
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A New York City nonprofit is helping communities fight food insecurity.
Rethink Food began in 2017 with the mission of taking excess food from top restaurants such as Eleven Madison Park to be redistributed to food-insecure communities across the city. Despite declines, post-pandemic food insecurity in the city remains high as one in nine families doesn't often have enough to eat.
Matt Jozwiak, founder and CEO of Rethink Food, said the organization filled a unique niche during the pandemic.
"There's not a lot of nonprofits that are working with, like, a soul-food restaurant in Harlem and a community center down the street," Jozwiak pointed out. "We were really ready and prepared even before the lockdown. We put together a plan to basically grant capital resources to small businesses to make meals for local community centers."
As beneficial as the group's work is, Jozwiak acknowledged some neighborhoods do not care for certain meals. He noted some areas might not care for couscous while others are not big on dairy-based dishes. The feedback has helped guide Rethink Food's work. He added they are branching out to work in other areas, such as developing medically tailored meals.
Beyond food excess, Rethink Food is looking to see how it can improve food procurement in New York City. The city has been seeking out ways to diversify its food procurement systems.
Ken Baker, culinary director for the group, said Rethink Food and the coalition of primarily independent, minority, women-owned restaurants they work with can do it.
"We know restaurants run on tight margins; us being the primary cudgel that holds that capacity in place, and then we subcontract out that capacity to restaurant partners," Baker explained. "(It) gives them a meaningful way to have a stakehold in their community and demonstrate their ability to compete with your big players."
The challenge in doing it is lacking trust in getting paid on time by the city. Reports showed the number of procurement contracts registered late has grown since 2021. For the first half of 2024, 77% of contracts were registered late, resulting in payment delays for numerous businesses.
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The Ohio Association of Foodbanks has recently sounded the alarm over worsening conditions in the state's hunger relief network, with food insecurity continuing to rise. A new report says Ohioans are forced to make difficult choices between food and other essential needs.
Joree Novotny, executive director, Ohio Association of Foodbanks, said this concerning trend is not limited to Ohio but reflects a broader national struggle.
"Things for us in the Charitable Hunger Relief Network in Ohio and across the rest of the country are not getting better. They're actually worsening," Novotny said.
Despite these challenges, the federal government has yet to reauthorize the Farm Bill, which Novotny says is vital for funding programs such as the Emergency Food Assistance Program. As a result, food banks are receiving less food, even as demand increases.
Novotny emphasized the need for both state and federal action to prevent further hardship.
"About two-thirds of the households that we're serving across Ohio told us that the adults in their households are skipping meals or cutting the size of meals because they didn't have enough food," she stressed.
With Ohio's state budget discussions underway and the Farm Bill still pending, the future of hunger relief efforts remains uncertain. Novotny says the recent report shows why more consistent support to address food insecurity is increasingly urgent.
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Colorado students will not go hungry this school year, thanks to the Healthy School Meals for All initiative approved by voters in 2022.
Their parents will need to fill out some paperwork to tap critical federal dollars to help pay for the popular program.
Laura Segura, a community council member of Hunger Free Colorado and a parent, urged parents to complete their child's school benefits form no later than Sept. 30.
"We need to fill out those forms, no matter what," Segura stressed. "If the parents don't do their job, which is to advocate for their kid's needs, who else is going to do that?"
The one-page application goes by many names depending on the school district: school, meal, community or educational benefits. Segura emphasized if parents and caregivers do not know how to access the form, they should contact their child's school.
Filling out the form helps bring federal taxes already paid by Coloradans back to the state to help pay for school meals. It also helps families and schools get Summer EBT benefits, get discounts on school fees and activities and other community benefits.
School districts have until Sept. 16 to officially opt into the meal program and most of the state's largest districts are already on board. Segura noted investing in children's nutrition pays significant dividends in their health, academic success and lifetime earning potential. She added it is much harder to stay focused in the classroom on an empty stomach.
"If the kids don't have what they need, they are going to suffer mentally, emotionally and physically," Segura asserted. "Most importantly, they are not going to be focused on their academics."
A recent poll found 70% of Republicans, 79% of independents and 91% of Democrats support Healthy School Meals for All, which is paid for by Coloradans earning $300,000 or more per year.
Since its launch, participation in school breakfasts has grown by 36%, and lunch participation is up by 31%.
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