First Nations Development Institute Applauds Navajo Junk-Food Tax as a National Precedent

LONGMONT, Colorado (Nov. 21, 2014) – First Nations Development Institute (*First Nations* [ http://www.firstnations.org ]), a national Native American nonprofit organization that works to improve Native economies and communities, today sent its congratulations and appreciation to the Navajo Nation for passing – again – an increased sales tax on junk food sold on the reservation.

The added tax on junk food, as well as the elimination of sales taxes on healthy foods, were the key legislative priorities of the Diné Community Advocacy Alliance (DCAA). Both bills – together called the Healthy Diné Nation Act of 2014 – were passed on January 30, 2014, but only the elimination of sales taxes on healthy foods survived and was signed into law.

First Nations is happy to have supported DCAA in its successful efforts.

The first time the junk-food tax passed, it was vetoed by the Navajo Nation president. But after the Navajo Nation Council again passed the added tax last week, Navajo Nation President Ben Shelly today signed the legislation. With today's signing, both bills will now be law on the Navajo Nation. Now the Navajo Nation has become the first in the country on two fronts: 1) the first to eliminate a tax on local fruits, vegetables and water, aiming to increase access to fresh and healthy foods, and 2) passed a tax on junk food, including sugary beverages sold on the reservation, with revenue aimed at supporting health and wellness programs across the Navajo reservation.

"It has taken a long time, but we applaud the Diné Community Advocacy Alliance and appreciate its persistence, patience and great effort at getting these passed and signed, in what we believe to be the first special junk-food tax in both the U.S. and Indian Country, which makes it a trailblazing precedent as we attempt to address the root causes of diet-related diseases such as type 2 diabetes, obesity and heart disease that are particularly rampant on reservations and in other Native American communities," said First Nations President Michael E. Roberts. "We commend DCAA and the Navajo Nation for proactively exploring legislative efforts to combat these detrimental health issues troubling Navajo and other Indian communities."

DCAA had championed the legislative package as a way to begin to improve the health and nutrition of citizens on the Navajo Nation, who also suffer high rates of diabetes, heart disease and other diet-related illnesses. The Healthy Diné Nation Act imposes a two percent sales tax, in addition to the Navajo Nation's current five percent sales tax, on junk food sold within the Navajo Nation. The legislation takes aim at sweetened beverages and snacks low in essential nutrients and high in salt, fat and sugar, including chips, candy, cookies and pastries, but it excludes nuts, nut butters and seeds. According to the council, the revenue collected from the two percent sales tax will be deposited into a Community Wellness Development Projects Fund to be administered by the Navajo Nation Division of Community Development, following the development of a fund-management plan. The revenue will be used by Navajo chapters to develop community parks, basketball courts, walking, running and bike trails, community gardens, family picnic grounds, and health education classes.

The other part of the act, which was already passed and signed, eliminates the current five percent sales tax on fresh fruits and vegetables to encourage the purchase and consumption of high-quality foods.

*About First Nations Development Institute*

For 34 years, using a three-pronged strategy of educating grassroots practitioners, advocating for systemic change, and capitalizing Indian communities, First Nations has been working to restore Native American control and culturally-compatible stewardship of the assets they own – be they land, human potential, cultural heritage or natural resources – and to establish new assets for ensuring the long-term vitality of Native American communities. First Nations serves Native American communities throughout the United States. For more information, visit *www.firstnations.org* [ http://www.firstnations.org ].