GMM Sales Tax Ruling Helps Offset Rising Cost of Food, Price Adjustment
GMM Announces New Meal Plan Costs and Sales Tax Decrease: Both Take Effect in February
On top of higher food costs in 2011, the Consumer Price Index for food has projected an increase of 3.25 – 3.75 percent in 2012, according to the USDA.**
And while Good Measure Meals™ is pleased that we have been able to hold our pricing steady for more than a year by streamlining other areas of our business, these rising costs have finally caught up with us.
In order to continue to provide you with the high quality meals that you have come to expect, we are forced to make a slight adjustment to the cost of our meal plans. But don’t fret — because we have some great news that will more than make up for this price increase.
Effective February 1, 2012, we will make the following adjustments to our pricing:
All 3-meal-a-day meal plans will increase by 50 cents per day.
All Dinner-only meal plans will increase by 20 cents per day.
So, depending on which meal plan you order, the new Good Measure Meals™ pricing structure actually represents an overall increase of only 1.7 – 2.4 percent. This is in line with or, in many cases, lower than the increases for other home-delivered meal plans in the area.
Now, for the GOOD news!
Open Hand, our parent organization, operates as a community-based 501(c)(3) nonprofit organization. And several months ago, Open Hand petitioned the State for a ruling on whether or not we are required to collect Georgia State sales tax for meals sold through our Good Measure Meals™ social enterprise. Recently, the State issued their ruling, which was confirmed by our auditors, stating that, based on current tax code we are no longer required to collect State sales tax on the Good Measure Meals™ meal plans.
Effective February 1, 2012, GMM is no longer required to collect the 4% State sales tax (subject to change by the state).
We will, however, still be required to charge local taxes such as city or county taxes as they apply to each customer.
What’s the net for our GMM customers?
We’ll use a typical meal plan as an example: A customer who lives in Atlanta and orders a 1200 calorie/5-day meal plan for one week is currently paying $113.35 plus delivery.
Meal plan cost with price adjustment + old tax rate = $116.05 plus delivery
Meal plan cost with price adjustment + new tax rate = $111.75 plus delivery
So ultimately, because of the adjusted tax rate, the net is that
you will pay LESS for your meal plan as of 2/1/2012.
Of course, if you have any questions about the price increase or the change in the tax rate, please contact our customer service department at 404-815-7695 or email firstname.lastname@example.org.
The choice you make to purchase Good Measure Meals™ not only helps improve your own quality of life, but it improves the quality of life for those in our community who need our support. Since the launch of Good Measure Meals™ in 2005, 100% of the proceeds from the sale of our meal plans go directly to Open Hand.
Thank you so much for your continued support!