Des Moines, Iowa — The tax bill Governor Kim Reynolds signed into law this past week includes a sales tax break for the state’s Food Banks.
The state sales tax isn’t charged on food, but Iowa food banks pay an estimated 200-thousand dollars every year in sales taxes on other supplies and equipment. Linda Gorkow, executive director of the Iowa Food Bank Association, says that savings will translate into an additional one million meals.
Advocates have been lobbying legislators for this move for about a decade. Gorkow says food bank warehouses spend a lot of money on things like forklifts, trucks, cleaning supplies, and refrigeration units — all of which were subject to the state sales tax until this change. While food banks used to focus primarily on shelf-stable food that did not require refrigeration, Gorkow says freezers and coolers are essential to operations now.
The Iowa Food Bank Association represents the six food banks that serve all 99 Iowa counties. Officials say for a variety of reasons, an estimated 400-thousand Iowans are struggling to afford a reliable supply of food and they rely on local food pantries and food banks for meals.
