August 9, 2017
Toni Preckwinkle, President
Cook County Board of Commissioners
118 North Clark Street, Room 537
Chicago, Illinois 60602
Dear President Preckwinkle:
I am writing to inform you that the United States Department of Agriculture (USDA) Food and
Nutrition Service (FNS) has determined that one method of implementing the Cook County
Sweetened Beverage Tax in relation to Supplemental Nutrition Assistance Program (SNAP) clients
violates federal law. FNS states that it will take action to suspend administrative funds to the State
of Illinois unless corrective action is taken ($86.8 million last fiscal year). Please be advised that
FNS powers against the State in this regard are substantial.
Through Sweetened Beverage Tax Regulation 2017-3, the Cook County Department of Revenue
provides an accommodation to retailers whose point of sale (POS) systems cannot immediately be
programmed to reduce the price of sweetened beverages by the amount of the tax when the
beverages are purchased using SNAP benefits. That accommodation allows retailers to put in place
a procedure whereby a purchaser who uses SNAP benefits can receive an immediate refund at the
customer service desk or other location within the retailer’s premises. It is FNS’s strict
interpretation that retailers may not charge the tax to SNAP recipients at any time and that
providing an immediate subsequent refund at a customer service desk does not cure the problem
or the violation of the law.
FNS has informed DHS that it will send a notice via USPS to all Cook County retailers on Friday,
August 10, 2017. That notice will provide general guidance on handling taxes on SNAP eligible
foods and will also inform retailers that they may not charge a distributor’s tax or sales tax at the
point-of-sale and then offer a refund of that tax to SNAP clients.
Please provide information on how Cook County will come into compliance with federal law in the
timeframes provided in the attached letter so that DHS can provide the requested Corrective Action
Plan (CAP) to FNS by the deadline of August 21, 2017. DHS appreciates your immediate attention
to the concerns stated by FNS and looks forward to working with you on solutions. If you have
questions or wish to discuss this matter further, please contact me at 312-793-1547. Thank you.
Sincerely,

James T. Dimas
Secretary