Could Arizona Make Groceries Cheaper? New Bill Sparks Big Debate

Every grocery trip seems to cost more. As tariffs and taxes rise, so does my weekly food bill.

Arizona legislators have proposed a bill to lower family food costs. If it passes, you could save money.

What Is Arizona’s Current Policy On Taxing Groceries?

Currently, Arizona doesn’t tax groceries at the state level, but cities and towns can add their own local sales taxes. These are called transaction privilege taxes, and they apply to food you buy for home use. So, your city or town might be taxing your groceries, and some places depend on this money.

People who get help from SNAP or the WIC program already don’t pay tax on certain groceries, thanks to federal rules. This means low-income families don’t have to pay local food taxes on qualifying items.

Get our free mobile app

If Passed, What Would Arizona’s HB2839 Change?

A new bill in Arizona would eliminate local taxes on groceries. If passed, HB2839 would stop all cities and towns in Arizona from charging local taxes on food items that qualify for SNAP or WIC, regardless of who buys them. This means everyone, not just SNAP or WIC recipients, would benefit from the exemption on these items.

In other words, if people using SNAP or WIC don’t pay tax on things like milk, bread, meat, fruits, and vegetables, HB2839 would make those items tax-free for everyone.

The bill would change state law to create a local tax exemption for food.

Who Would Benefit From HB2839?

Supporters of the bill say it would help with the rising cost of living in Arizona. Representative Leo Biasiucci, who sponsors the bill, says the goal is to help “hardworking Arizona families” deal with higher grocery prices.

Everyone who shops for groceries would benefit if this local tax went away. The bill would be especially helpful for middle-income families who don’t qualify for SNAP or WIC.

READ: How Arizona's SAVE Act Affects Voter Registration For Women

Low-income households already get these exemptions, but they could see even more stable prices. Anyone who shops in cities with high local food taxes could better manage their grocery bills.

Who Opposes The Bill And Why?

Not everyone supports removing this tax. The main opponents are the cities and towns that currently collect and rely on this money.

They argue that ending grocery taxes would shrink local budgets and reduce funding for police, fire, parks, and community services. They also say it would make it harder for cities to manage their revenue.

READ: Why Are Arizona Shoppers Frustrated With Self-Checkout Kiosks?

Local governments say they need the food tax to keep budgets stable during tough economic times. They also claim the state is taking away local control for political reasons.

Staying Within Budget

Some believe it is time to support Arizona families who are experiencing higher costs at the checkout line.

Supporters argue that passing HB2839 would give quick relief to all grocery shoppers, especially those who do not receive federal assistance but face financial challenges. They contend that other services are already funded by different taxes.

Some suggest that if Arizona shoppers have to stick to a budget, then cities and towns might also need to adjust their spending.