Arizona voters will decide in November whether cities taxing groceries at 2% or less must get voter approval before imposing or raising the tax. Local officials warn the rule could constrain funding for fire trucks, wastewater systems and road repairs.
Bisbee Mayor Ken Budge said the city's 3.5% grocery tax brings in about $700,000 annually in a budget of roughly $9 million and helps pay for infrastructure and wastewater treatment. Page officials said grocery and rental taxes provide stable resident-generated revenue; hotel and lodging tax revenue fell 7.4% and amusement tax revenue 15.4% in FY26.
Republican lawmakers have promoted versions of the proposal since 2023 as a cost-of-living measure. An earlier version would have eliminated grocery taxes entirely, but Gov. Katie Hobbs vetoed it after city officials objected. Chandler Mayor Kevin Hartke said lobbying helped shape the current proposal into a compromise between the state's food-tax goals and cities' interest in protecting revenue.
