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Gov. Hobbs vetoes bill trying to eliminate grocery tax

Senate Bill 1063 is the latest piece of legislation vetoed by Gov. Katie Hobbs.

PHOENIX — Gov. Katie Hobbs has vetoed legislation that would have prohibited Arizona municipalities from taxing groceries. 

Republicans in the Arizona Legislature passed Senate Bill 1063, claiming it would help Arizonans stave off the financial burden of inflation. But Democrats argued the bill would be detrimental to city budgets.  

The bill would have stopped cities from levying a tax on food and beverage items intended for home consumption. It would not have taken effect until July 2025. 

Some municipalities in Arizona already don't levy a grocery tax.

In her veto letter, the governor said SB 1063 would force cities to find other ways to fund public services. 

"...it's clear that this bill doesn't actually eliminate costs for our residents," Hobbs wrote in her letter. "It simply moves those costs around."

VERSIÓN EN ESPAÑOL: La gobernadora Hobbs veta propuesta que intentaba eliminar el impuesto en comestibles en Arizona

Republican legislators have condemned Hobbs' rejection of the bill, arguing that a grocery tax hurts everyone in Arizona.

"This veto is a disgraceful windfall for cities and an absolute gouge for families," said Majority Leader Sonny Borrelli in a statement.

The governor has also vetoed Senate Bill 1096, which would have prohibited public entities from contracting with companies that "discriminate against a firearm entity."

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