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HB2839 • 2026

municipal tax; exemption; food

HB2839 - municipal tax; exemption; food

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Leo Biasiucci, Cesar Aguilar, Neal Carter, Pamela Carter, Joseph Chaplik, Lupe Diaz, John Gillette, Matt Gress, Gail Griffin, Alma Hernandez, Consuelo Hernandez, Lydia Hernandez, Rachel Keshel, Alexander Kolodin, David Marshall, Sr., Justin Olson, Beverly Pingerelli, Tony Rivero, James Taylor, Michael Way, Justin Wilmeth, Brian Fernandez
Last action
Official status
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on enforcement mechanisms, future actions by taxing jurisdictions, or the effectiveness of exemptions for low-cost food sales.

Food Tax Exemption

HB2839 removes certain food items from municipal taxes and exempts specific groups from paying tax on low-cost food purchases.

What This Bill Does

  • Removes the ability of cities, towns, or other taxing jurisdictions to impose additional taxes on specific food items intended for human consumption.
  • Exempts containers and packaging used exclusively with food items from being taxed.
  • Allows people who use food stamps or similar benefits to purchase food without paying an extra tax.
  • Permits businesses that contract with the state's economic security department to sell low-cost food items to eligible elderly, homeless, or disabled individuals without charging them additional taxes.

Who It Names or Affects

  • Taxing jurisdictions such as cities and towns
  • Food manufacturers, wholesalers, distributors, and retailers
  • People who use food stamps or similar benefits
  • Elderly, homeless, or disabled individuals purchasing low-cost food items

Terms To Know

Municipal transaction privilege tax
A type of local sales tax imposed by cities, towns, or other jurisdictions.
Food stamps
Government-issued coupons or benefits used to purchase food for low-income individuals and families.

Limits and Unknowns

  • The bill does not specify how the tax exemption will be enforced.
  • It is unclear what happens if a city, town, or other taxing jurisdiction tries to impose additional taxes on exempted items after this law passes.
  • The effectiveness of the exemptions for low-cost food sales to eligible individuals may depend on business compliance and state approval.

Bill History

No action history is stored for this bill yet.

Official Summary Text

HB2839 - municipal tax; exemption; food

Current Bill Text

Read the full stored bill text 
HB2839 - 572R - I Ver

REFERENCE TITLE:
municipal tax; exemption; food

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2839

Introduced by

Representatives
Biasiucci: Aguilar, Carter N, Carter P, Chaplik, Diaz, Gillette, Gress,
Griffin, Hernandez A, Hernandez C, Hernandez L, Keshel, Kolodin, Marshall,
Olson, Pingerelli, Rivero, Taylor, Way, Wilmeth;� Senator Fernandez

AN
ACT

amending section 42-6015, Arizona
Revised Statutes; relating to MUNICIPAL transaction PRIVILEGE tax.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-6015, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-6015.

Municipal transaction privilege tax; food; exemption

A. If a city, town or other taxing jurisdiction
imposes a transaction privilege, sales, use, franchise or other similar tax or
fee, however denominated, on:

1. The sale of food items intended for human
consumption as defined by rule adopted pursuant to section 42-5106 or
items prescribed by section 42-5106, subsection D for home consumption,
the tax must be applied uniformly with respect to all
food, and an additional tax or fee differential may not be assessed or applied
with respect to any specific food item.

2. The sale of food items intended for human
consumption as defined by rule adopted pursuant to section 42-5106 or
items prescribed by section 42-5106, subsection D for consumption on the
premises, the tax must be applied uniformly with respect to all food items, and
an additional tax or fee differential may not be assessed or applied with
respect to any specific food item.

B. A city, town or other taxing jurisdiction may not
levy a transaction privilege, sales, use, franchise or other similar tax or
fee, however denominated, with respect to:

1. The manufacture, wholesale or distribution to or
among any wholesalers, distributors or retailers, of food items intended for
human consumption as defined by rule adopted pursuant to section 42-5106
or items prescribed by section 42-5106, subsection D for home consumption
or for consumption on the premises.

2. Any container or packaging used exclusively for
transporting, protecting or consuming food items intended for human consumption
as defined by rule adopted pursuant to section 42-5106 or items prescribed by
section 42-5106, subsection D for home consumption or for consumption on
the premises.

3. The sale of food or other items
purchased

that are eligible for purchase
with
United
States department of agriculture food stamp coupons issued under the food stamp
act of 1977 (P.L. 95-113; 91 Stat. 958)

benefits
issued pursuant to the supplemental nutrition assistance program under 7 United
States Code sections 2011 through 2036
d

or food
instruments issued
pursuant to the special supplemental food
program for women, infants, and children
under
section 17
of the child nutrition act (P.L. 95-627; 92 Stat. 3603;
P.L. 99-661, section 4302;
42 United States Code section 1786
)

regardless of whether the purchaser is
eligible to participate in the supplemental nutrition assistance program or the
special supplemental food program for women, infants, and children,
but
may impose such a tax consistent with this section on other sales of food.

4. The sale of low or reduced-cost articles of food
or drink to eligible elderly or homeless persons or persons with a disability
by a business subject to tax under the restaurant classification pursuant to
section 42-5074 that contracts with the department of economic security
and that is approved by the food and nutrition service of the United States
department of agriculture pursuant to the supplemental nutrition assistance
program established by the food and nutrition act of 2008 (7 United States
Code sections 2011 through 2036c), if the purchases are made with the benefits
issued pursuant to the supplemental nutrition assistance program.
END_STATUTE

Sec. 2.
Applicability

This act applies retroactively to
taxable periods beginning on or after the first day of the month following the
general effective date.