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BILL # HCR 2021 |
TITLE: food; municipal tax; exemption |
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SPONSOR: Biasiucci |
STATUS: As Introduced |
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PREPARED BY: Hans Olofsson |
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If approved by voters at the 2026 General Election, the resolution would eliminate the municipal Transaction Privilege Tax (TPT) on food for home consumption, beginning in FY 2028.
Estimated Impact
We estimate that HCR 2021 would reduce municipal TPT by $(227.6) million, beginning in FY 2028.
The resolution would have no impact on the General Fund since the state does not levy TPT on food for home consumption.
According to public data provided by the Department of Revenue (DOR), 70 of Arizona's 91 incorporated cities and towns taxed food for home consumption in FY 2024, for a total of $196.4 million. A recent forecast by S&P Global indicates that consumer spending on food and beverages for home consumption in Arizona is projected to grow by 15.9% from FY 2024 to FY 2028. Based on this projection, we estimate that municipal TPT collections under current law will be $227.6 million in FY 2028. This means that if the resolution were enacted, the total reduction in municipal TPT revenue is estimated to be $(227.6) million, beginning in FY 2028.
1/31/25