The Navajo Nation Council is considering legislation which would implement a two percent tax on certain “junk” foods and beverages while also eliminating the sales tax on fresh fruits and vegetables on the Navajo Nation. During the 2013 Summer Session, the council voted down a similar legislation, which aimed to enact the Navajo Nation Junk Food Sales Tax Act of 2013.
On Sept. 23, legislation was introduced which aims to impose a two percent tax on the sale of junk food such as: chips, candy, cookies, and pastries with the proceeds going toward funding community wellness projects.
“This legislation basically implements a tax on unhealthy foods that will eventually lead to healthy food purchases on the Nation,” said co‐sponsor Council Delegate Jonathan Hale.
Although HEHSC members expressed support for the legislation’s intent to improve the quality of health by decreasing diabetes and obesity, several members were skeptical over specific definitions and language included in the legislation.
“This legislation essentially says we know you can’t make good decisions, so we want to tax you to help you make good choices,” said HEHSC member Council Delegate Dwight Witherspoon. “I am concerned with the enforcement and what provisions you have made with the help of the [Navajo Nation] Tax Commission.”
HEHSC member Council Delegate Joshua Lavar Butler also asked if the Tax Commission was involved in writing the legislation and insisted that Navajo People should decide whether to implement the tax.
“The Navajo People need to be involved in this initiative. Have you explored a referendum vote?” said Delegate Butler. “The people need to have an input on this. If this is really what they want and if it is coming from the people, they will vote on it.”
HEHSC member Council Delegate Walter Phelps agreed with his colleagues and requested for the Tax Commission to provide their insight about the impacts of the legislation.
HEHSC Vice Chair Council Delegate Charles Damon II requested for the sponsor and agents to consult with the Navajo Tax Commission, Office of Management and Budget, Office of the Controller, Elections Administration, and Navajo Division of Health.
The HEHSC voted to delay the item to allow for the sponsor to work with the various Navajo Nation entities to improve the language of both legislations.