ARIZONA HOUSE OF REPRESENTATIVES

HB 2638: municipal tax; exemption; food

PRIME SPONSOR: Representative Bolick, LD 20

BILL STATUS: Caucus & COW

Ways and Means: DP 6-4-0-0

Overview

Prohibits a city, town or other jurisdiction at or above a population threshold from levying a tax on food items intended for home consumption.

History

Food items sold by a qualified retailer and intended for home consumption are exempt by law from the Arizona transaction privilege tax (A.R.S. §42-5102). Current law permits cities towns and other taxing jurisdictions to impose a transaction privilege, sales, use, franchise or other similar tax or fee on food items intended for home consumption provided that the tax is applied uniformly and that no additional taxes or fees are applied to a specific items. Cities, towns or other taxing jurisdictions are not permitted to levy a tax on food items specified in statute which include the supplemental nutrition assistance program and other federal programs (A.R.S. §42-6015). 

Provisions

1. Prohibits a city, town or other taxing jurisdiction with a population of 625,000 persons or more from imposing a tax or fee on the sale of food items intended for home consumption as defined in statute. (Sec. 1)

2. Specifies that if a city, town or other taxing jurisdiction with a population of less than 625,000 persons imposes a tax or fee on the sale of food items defined in statute the tax must be applied uniformly to all food and prohibits the application of additional taxes or fees on specific food items. (Sec. 1)

3. Makes a technical and a conforming change. (Sec. 1)

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7. Fifty-fourth Legislature                       HB 2638

8. First Regular Session                            Version 2: Caucus & COW

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