Arizona Governor Katie Hobbs has spoken out against a Republican legislative proposal to ban cities from imposing sales taxes on groceries.

News promotion: Senate Bill 1063 Bans cities from taxing food consumed at home from July 2025.

State of play: Seventy of Arizona’s 91 incorporated municipalities impose a sales tax on food, including most of Maricopa County, according to the Arizona Federation of Municipalities.

• Phoenix, Mesa, and Surprise are the only cities in the Valley that don’t tax food.
• Joint Legislative and Budget Committee Estimate Cities and towns will collect nearly $183 million in sales taxes on food next fiscal year.

Big picture: Arizona eliminated its statewide sales tax on food in 1980, but did not eliminate the ability of the city to tax food.

• Banning a sales tax on food would have no effect on state finances, but it would affect cities.
• Hobbs told reporters last week that he was concerned about the impact SB1063 would have on cities, especially public safety budgets.
• Smaller communities rely on food sales taxes. Reported by Capitol Media Service.

By numbers: Glendale collected the most food taxes in the state last fiscal year, with $17.8 million accounting for 7.2% of the budget.

• Litchfield Park was the Valley’s most dependent on food sales taxes. Revenues accounted for 16.8% of the budget, with Apache Junction (13.7%), Cave Creek (12.1%), El Mirage (11.7%), Fountain Hills (10.7%) and Gilbert (10.5%).
• Other Valley cities, such as Paradise Valley (0.1%), Guadalupe (2.9%), and Scottsdale (3.5%), rely less on food sales taxes for their budgets.

context: While Democrats have defended the interests of local governments for years, Republicans are often quick to pass laws that limit their ability to act against dissenting voices.

what she says: Hobbes told reporters that instead of abolishing the food sales tax, “more could be done to make things more affordable.”

• She’s pushing to eliminate the sales tax on diapers and feminine hygiene products in Arizona, but points out that cities won’t get the same effect as the sales tax cuts on food and rent.
• Hobbs said she hasn’t looked into the details of SB1063 yet and will make a decision when it reaches her desk.

Opposite side: Republicans tout the bill as a relief for families struggling to cope with skyrocketing inflation, saying it will especially benefit low-income Arizonans.

• “This is about tax exemption on items that are essential for people to survive and live.” bill sponsor Lake Havasu City Republican Senator Sonny Borrelli said:

Catch up soon: Hobbes last month vetoed another Republican bill It would have prohibited cities from collecting sales tax on rent. Among her objections was the financial implications for local government.

• Eliminating municipal sales taxes on rent and food was part of Republican gubernatorial candidate Kari Lake’s platform and was incorporated into the Republican legislative agenda after Hobbes’ victory.

What we see: Whether or not Hobbes vetoes the bill, the idea could be revived later in the legislative session as part of budget negotiations.