Tax-Free Meals at Retirement Homes

(June 1) – Gov. John Hickenlooper signed a bill this afternoon by Rep. Tracy Kraft-Tharp, D-Arvada, to save thousands of Colorado seniors from having to pay more taxes for their meals.

“This law provides clarity to ensure that Coloradans in retirement communities—our mothers and fathers, grandmas and grandpas—aren’t being unfairly taxed on their meals,” Rep. Kraft-Tharp. “I like to call it my ‘don’t tax grandma’s meatloaf’ bill because it’s just that simple.”
The state Department of Revenue had recently ruled that the institutionally prepared food served in assisted living centers and other retirement communities is subject to sales and use tax. The tax amounts to a penalty for using one of the key services that allow elderly Coloradans to maintain some level of independence.

HB16-1187 clarifies that all groceries and meals consumed by residents on the premises of retirement communities are not subject to Colorado sales and use tax. All Colorado grocery shoppers should enjoy a state tax exemption for food purchased for home consumption, including those whose homes are in an assisted living facility or nursing home.

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