The resolution HCR 2021 proposes to prohibit cities, towns, or other taxing jurisdictions in Arizona from imposing a municipal transaction privilege tax on the sale of food items intended for home consumption, effective from June 30, 2027. This measure aims to ensure that food sold for home consumption is exempt from such taxes, thereby potentially reducing the cost of living for residents. The resolution also requires that any city or town wishing to impose or increase such a tax must obtain voter approval, and any existing tax rates above two percent must be reduced to that level by the specified date.

Additionally, the resolution mandates that the Secretary of State submit this proposition to voters during the next general election, allowing the public to decide on the implementation of this tax exemption. The resolution reflects a broader effort to alleviate financial burdens on consumers by ensuring that essential food items remain affordable and free from additional taxation at the municipal level.

Statutes affected:
Introduced Version: 42-6015
House Engrossed Version: 42-6015