Small Towns Rally Against Food Tax Elimination: Discover Their Concerns and Solutions

TUCSON, Ariz. – High grocery prices are frustrating many people. To help with this, state Republican lawmakers have suggested removing the tax on food. However, this move could create challenges for smaller towns.

For example, Bisbee is one of 70 cities in Arizona that currently collects a food tax. If the tax goes away, it could severely impact their budget. Mayor Ken Budge mentioned that it would cost the city about $620,000, which is around 14% of their total budget.

Across Arizona, cities and towns earn about $200 million from grocery taxes. In Douglas, Mayor Jose Grijalva expressed concern over a potential loss of $2.5 million, a significant part of their surplus. Interestingly, 70% of those who pay the food tax in border towns like Douglas are visitors from Mexico.

This raises a point: while Arizona’s Republican leaders argue that families could save up to $500 a year without the tax, these savings come at a cost to local budgets.

Governor Katie Hobbs previously rejected a similar bill, warning it could lead to cuts in services and higher property taxes. Now, GOP lawmakers are hoping to avoid her veto by putting the decision to a vote, largely appealing to residents in larger cities like Tucson and Phoenix, which do not have a food tax.

Mayor Budge is concerned that voters from those bigger cities may not understand the impact on local towns. Without the food tax, he worries about cuts to essential services like the fire department, which he emphasized is critical for community safety.

The sponsor of the bill, Leo Biasiucci, responded to these concerns by stating that cities have other budget options available. He dismissed the notion that emergency services would be jeopardized due to tax cuts.

The bill, known as HCR 2021, is set to be discussed in a committee soon. It is shaping up to be a pivotal issue for many communities as they weigh local needs against potential savings for families.