Committee approves distribution policy for junk food tax

WINDOW ROCK

Kelly Charley, 17, described to the Budget and Finance Committee that she and her sister are two different types of active people.

Charley, the co-president of the Na’taanii Youth Council, told the committee she is the type who can farm, ride horses and chase cattle all day. Her sister is the type who would rather play recreational sports than do what she considers chores.

The difference is significant, because while Charley has plenty of horses and cattle to work with, Charley’s little sister doesn’t have a gym, basketball goal or soccer field to be active when she’s at her grandmother’s home in Sweetwater, Arizona. Charley wants her sister to have the same easy access to fitness resources that she does. Which is why she came to the committee in hopes they would approve the Healthy Dine Nation Community Wellness Development project guidelines and distribution policy.

“I can ride horses and chase in cattle but to some that’s just work,” said Charley. “A part of this initiative is to encourage other people’s interest to try to get people to want to get healthy, to want to exercise.”

In the end, she went home satisfied, but it was a tense debate.

The Budget and Finance committee was the final authority for the Healthy Diné Nation Community Wellness Development Project Guidelines and Distribution Policy. This will allow the Division of Community Development to allocate funds from the Healthy Diné Nation Act of 2014 to all 110 chapters for projects such as wellness center, playgrounds, community gardens, sports fields … basically anything that will encourage chapter members to be more active or make better food choices.

Also referred to as the “junk food tax,” the Healthy Diné Nation Act faced an uphill battle when it was first brought to council by the Diné Community Advocacy Alliance. Taking nearly two years and multiple attempts on the council floor, it was finally approved and signed into law by former Navajo Nation President Ben Shelly. Now communities are hoping that the 2 percent sales tax revenue placed on foods deemed unhealthy will be brought to them to go toward a myriad of projects to encourage healthy living.

“Comments are being said that the tax is hurting the people. It’s not the tax, it’s the food that’s hurting the communities,” said Denisa Livingston, member of DCAA and fierce proponent of the junk food tax.

Livingston was referring to Budget and Finances members’ comments about the tax being more regressive than progressive, since it mostly affects poor, remote Navajos who may have no choice but to shop at a convenience store for their groceries. These types of comments during the debate gave the impression that this legislation would be tabled, and in fact new Budget and Finance member Leonard Tsosie (Littlewater/Pueblo Pintado/Torreon/Whitehorse Lake/Baca/Brewitt/Casamero Lake/Ojo Encino/ Counselor) motioned for that action.

“I think there is better use for this money,” said Tsosie. “I wouldn’t mind tabling and wait for a better plan. This is a recipe for a waste of money.”

According to Martin Ashley, executive director for Office of the Tax Commission, $332,000 currently is available for chapters, and at least a million more will have to wait until the end of the fiscal year before it can be considered for distribution.

Budget and Finance Committee member Tom Chee (Shiprock) called the tax a burden on the poor and the elderly. He also asked for proof that consumer behavior had changed since this tax was implemented.

No one mentioned that although junk food is taxed, fresh vegetables, fruit and water are now tax-free under the act.

“Imposing taxes to the poorest section of our Navajo population is a distress caller,” said Chee. “Is there a better way to approach this?”

Navajo Nation Vice President Jonathan Nez supported the Healthy Diné Nation Act when he was a council delegate, and that support never waivered; during Tuesday’s meeting he was there to show his support again, this time for the distribution guidelines.

“It didn’t need to go into the legislative process, “ said Nez on the distribution guidelines. “This is a policy decision by the executive branch. But it’s good that they supported it; now the chapters are expecting these dollars.”

Seeing that there would be confusion on how to distribute the funds and how to actually tax, Nez said that the administration would be holding a tax summit to better educate businesses on the 2 percent junk food tax. And he noted that the only way to identify the impact of this whole tax endeavor is by beginning with distributing the money to the chapters so they can implement their projects. The legislation has a sunset date of 2018.

“The dollars is estimated at one-point-five to two million that this tax will generate every year. That’s nine to ten thousand for each chapter, and you can do a lot with that,” said Nez. (Actually, if it hits the $2 million mark, it would be over $18,000 per chapter.) “We’ve been having meetings with the tax office, Division of Economic Development, Division of Community Development and the idea was to have a Navajo Nation-wide summit on junk food tax.”

With a vote of 3-1, the Healthy Dine Nation Community Wellness Development Project Guidelines and Distribution Policy passed.

“I felt pretty confident, especially with my own personal opinion that this will benefit my community,” said Charley. “If it didn’t go through we could’ve revised and make it better. There’s always a way to make it better.”

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