Grocery cooperatives

From the 2024 DOR Tax Exemption Study

82.04.298(2) - Grocery distribution co-ops Description Qualified grocery cooperatives can take a deduction from the gross proceeds of sales of groceries for resale to their members that is equal to the portion of the gross proceeds of sales for resale that represents the actual cost of the merchandise sold to members. However, commission income is subject to tax under the service classification. Purpose To provide a deduction for qualified grocery cooperatives on goods distributed to their members when the cooperative retains the title to the goods. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions This deduction impacts fewer than three taxpayers; any impacts are confidential. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Business Year Enacted: 2001 Primary Beneficiaries: Grocery distribution cooper