LAKEWOOD — Cash registers in this city of 144,000 are not ringing up a sales tax on grocery food at the ringing in of the new year.
A 2 percent tax on food for home consumption was eliminated by the City Council after a citizens committee made the recommendation last spring.
Mayor Bob Murphy called the end of the food tax “a highlight of our accomplishments for 2008.”
Items that won’t be taxed include meat, dairy products, bread, vegetables, infant formula, special dietary foods, fruit and spices.
However, food prepared for consumption such as in-the-store deli items, alcoholic and coffee beverages and food sold by restaurants, cafes, coffee shops, snack bars and other businesses still will be taxed.
Halting the tax on basic necessities “is good news in these difficult times,” Murphy said.
City officials estimate the change will allow a family of four to save $112 annually.
About 80 percent of Colorado cities and two-thirds of its counties tax grocery food. Lakewood joins Denver, Aurora, Littleton, Colorado Springs and Commerce City in not taxing food for home consumption.
The tax change will take a $4 million bite out of the city’s budget. To replace about $3 million of the lost revenues, the City Council rescinded a waiver that excluded Colorado Mills mall and the Wal-Mart Superstore on West Colfax Avenue and Wads worth Boulevard from collecting a 1-cent sales tax.
Ann Schrader: 303-278-3217 or aschrader@denverpost.com
