AZ Legislature passes bill to block cities from taxing groceries

By Greg Hahne
Howard Fischer/Capitol Media Services
Published: Thursday, March 23, 2023 - 2:51pm

The state Legislature passed a bill that would overrule the ability of cities and towns to levy taxes on groceries. 

Food taxes raise about $161 million for cities every year.

Proponents argue it could save consumers $200 to $300 annually.

However, opponents such as Rep. Lupe Contreras said it would save only pennies on the dollar and have other effects.

“But where we are going to impact them is on the fire districts, when they call the fire, when something happens at their home, when they need an ambulance, when they need police at their homes. That's where they're going to be impacted," Contreras said. 

The measure now goes to Gov. Katie Hobbs’ desk.

She vetoed a similar bill earlier this year that would have blocked cities being able to tax residential rentals. 

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