food; municipal tax; exemption

HCR 2021 would require Arizona cities and towns to exempt most food for home or on-premises consumption from municipal sales taxes, prohibiting differential tax rates on specific food items. It sets a deadline of June 30, 2027, for cities to comply, limits tax increases to 2% without voter approval, and bans new food taxes or rate hikes in the 24 months before that date. This affects local governments (cities/towns), food retailers, restaurants, and residents purchasing food, as it standardizes food tax treatment and restricts local tax authority over food sales. The bill also exempts SNAP/food stamp purchases and food packaging from taxation. It requires voter approval for any new food tax or rate increase beyond 2% and applies retroactively to December 31, 2024.