PROP 316Limits on local grocery taxes
The measure would restrict when cities and other local taxing jurisdictions can create or raise taxes on food and certain sealed nonalcoholic drinks for home consumption.
The law, with a human translation.
Section 2 · Existing grocery taxes
For a jurisdiction with a covered tax approved by January 1, 2025, an increase must be voter-approved and may not exceed two percent of the tax base.
Cities already taxing groceries could continue, but voters must approve an increase and the rate cannot rise above the cap.
Section 2 · New grocery taxes
Where no covered tax was approved by January 1, 2025, adoption and later increases must be approved by voters.
A city starting a grocery tax would need voter permission. Future increases would need another vote.
Section 2 · Covered food
The limitation covers food and certain ready-to-drink, closed-container nonalcoholic beverages intended for home consumption.
It covers groceries for home use, including some sealed nonalcoholic drinks—not every food or drink sale.
The headline can sound like a total ban, but the official analysis describes limits rather than universal repeal.
Lower grocery taxes can reduce household costs; they can also reduce flexible local revenue.
Definitions matter: the protection covers food and specified ready-to-drink, closed-container beverages intended for home use.
Read every word for yourself.
This is the complete adopted or enrolled document, reproduced from the official government source. Page and part labels follow the source file.
- i - REFERENCE TITLE: food; municipal tax; exemption State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HCR 2021 Introduced by Representatives Biasiucci: Aguilar, Carbone, Carter P, Diaz, Heap, Hendrix, Keshel, Kupper, Livingston, Lopez, Marshall, Montenegro, Olson, Peña, Pingerelli, Powell, Rivero, Way, Weninger, Wilmeth A CONCURRENT RESOLUTION ENACTING AND ORDERING THE SUBMISSION TO THE PEOPLE OF A MEASURE RELATING TO MUNICIPAL TRANSACTION PRIVILEGE TAX. (TEXT OF BILL BEGINS ON NEXT PAGE)
HCR 2021 - 1 - Be it resolved by the House of Representatives of the State of Arizona, 1 the Senate concurring: 2 1. Under the power of the referendum, as vested in the Legislature, 3 the following measure, relating to municipal transaction privilege tax, is 4 enacted to become valid as a law if approved by the voters and on 5 proclamation of the Governor: 6 AN ACT 7 AMENDING SECTION 42-6015, ARIZONA REVISED STATUTES; RELATING 8 TO MUNICIPAL TRANSACTION PRIVILEGE TAX. 9 Be it enacted by the Legislature of the State of 10 Arizona: 11 Section 1. Section 42-6015, Arizona Revised Statutes, 12 is amended to read: 13 42-6015. Municipal transaction privilege tax; food; 14 exemption 15 A. If a city, town or other taxing jurisdiction imposes 16 a transaction privilege, sales, use, franchise or other 17 similar tax or fee, however denominated, on: 18 1. THROUGH JUNE 30, 2027, the sale of food items 19 intended for human consumption as defined by rule adopted 20 pursuant to section 42-5106 or items prescribed by section 21 42-5106, subsection D for home consumption, the tax must be 22 applied uniformly with respect to all food, and an additional 23 tax or fee differential may not be assessed or applied with 24 respect to any specific food item. 25 2. The sale of food items intended for human 26 consumption as defined by rule adopted pursuant to section 27 42-5106 or items prescribed by section 42-5106, subsection D 28 for consumption on the premises, the tax must be applied 29 uniformly with respect to all food items, and an additional 30 tax or fee differential may not be assessed or applied with 31 respect to any specific food item. 32 B. A city, town or other taxing jurisdiction may not 33 levy a transaction privilege, sales, use, franchise or other 34 similar tax or fee, however denominated, with respect to: 35 1. FROM AND AFTER JUNE 30, 2027, THE SALE OF FOOD ITEMS 36 INTENDED FOR HUMAN CONSUMPTION AS DEFINED BY RULE ADOPTED 37 PURSUANT TO SECTION 42-5106 OR ITEMS PRESCRIBED BY SECTION 38 42-5106, SUBSECTION D FOR HOME CONSUMPTION. 39 1. 2. The manufacture, wholesale or distribution to or 40 among any wholesalers, distributors or retailers , of food 41 items intended for human consumption as defined by rule 42 adopted pursuant to section 42-5106 or items prescribed by 43 section 42-5106, subsection D for home consumption or for 44 consumption on the premises. 45
HCR 2021 - 2 - 2. 3. Any container or packaging used exclusively for 1 transporting, protecting or consuming food items intended for 2 human consumption as defined by rule adopted pursuant to 3 section 42-5106 or items prescribed by section 42-5106, 4 subsection D for home consumption or for consumption on the 5 premises. 6 3. 4. The sale of food or other items purchased with 7 United States department of agriculture food stamp coupons 8 issued under the food stamp act of 1977 (P.L. 95-113; 91 Stat. 9 958) or food instruments issued under section 17 of the child 10 nutrition act (P.L. 95-627; 92 Stat. 3603; P.L. 99-661, 11 section 4302; 42 United States Code section 1786) but may 12 impose such a tax consistent with this section on other sales 13 of food. 14 4. 5. The sale of low or reduced-cost articles of food 15 or drink to eligible elderly or homeless persons or persons 16 with a disability by a business subject to tax under the 17 restaurant classification pursuant to section 42-5074 that 18 contracts with the department of economic security and that is 19 approved by the food and nutrition service of the United 20 States department of agriculture pursuant to the supplemental 21 nutrition assistance program established by the food and 22 nutrition act of 2008 (7 United States Code sections 2011 23 through 2036c), if the purchases are made with the benefits 24 issued pursuant to the supplemental nutrition assistance 25 program. 26 2. The Secretary of State shall submit this proposition to the 27 voters at the next general election as provided by article IV, part 1, 28 section 1, Constitution of Arizona. 29