Downtown Core Grocery Sales Tax Exemption Referendum and Household Food Costs

Downtown Core residents will vote in November on a ballot measure that exempts basic grocery items from the local portion of the sales tax, changing the amount collected at checkout for food purchases at stores throughout the jurisdiction.

Why the measure reaches the ballot now

The referendum appears on the ballot after the Downtown Core City Council placed it before voters following public hearings held in spring 2026. The election guide published by the Downtown Core Board of Elections on June 15 outlines the proposal and its revenue effects on the municipal budget adopted for fiscal year 2027.

Local households currently pay the combined state and municipal sales tax on most food bought for home consumption. The measure targets only the city’s share and applies to items such as milk, bread, fresh produce and packaged staples sold at retailers inside city limits.

How the change would reach daily budgets

Shoppers at locations including the Core District market and neighborhood grocers would see the municipal tax line removed from qualifying purchases if the measure passes. Renters and homeowners in the same zip codes would both receive the same treatment at the register, since the exemption follows the point of sale rather than property ownership.

The fiscal impact statement attached to the referendum estimates the city would forgo several million dollars in annual sales tax receipts that currently support general fund services. The statement notes that any resulting budget gap would require the council to identify other revenue or spending adjustments in future budget cycles.

If approved, the exemption would begin January 1, 2027. Retailers would update point-of-sale systems during the final quarter of 2026, and the Downtown Core finance department would issue compliance guidance by October.