Will Governor Katie Hobbs Back Grocery Tax Cut After Vetoing Republican Tax Plan?

As hundreds of thousands of Arizona families navigate a struggling food assistance system, State Representative Leo Biasiucci (R-AZ) is taking aim at what he calls an unfair burden on local taxes on groceries.

The Republican representative introduced House Bill 2839 on Tuesday, proposing to ban cities and towns across Arizona from collecting sales taxes on any food items eligible for federal nutrition programs such as SNAP and WIC.

However, the tax break would apply to everyone who buys those basic groceries, not just benefit recipients.

"Taxing SNAP and WIC food purchases is wrong," Biasiucci said. "These are necessities, not luxuries."

The bill would clarify that municipalities cannot impose transaction privilege taxes or similar levies on the basic, essential foods covered by SNAP and WIC programs, which are designed specifically to help families afford the fundamentals.

Arizona's food assistance landscape has grown increasingly complicated. Just before Christmas, Governor Katie Hobbs (D-AZ) committed $7.5 million to help the Department of Economic Security tackle a massive backlog in SNAP applications and appeals.

That emergency funding will immediately bring 15 temporary staff on board, expand vendor capacity by 100 positions, and modernize technology to help families submit required paperwork more easily.

Growing Challenges

But the challenges keep piling up as adjustments to Social Security payments this month could alter benefit amounts for some households.

Reports have shown that in November, 680,000 Arizonans received SNAP benefits, a drop of more than 200,000 people since August.

Biasiucci is framing his proposal as a direct response to the governor's recent call for tax relief. In her State of the State address, Gov. Hobbs emphasized lowering taxes for working families.

"I'm taking her at her word," Biasiucci said. He added that if the Democratic governor vetoes the bipartisan measure, "Arizonans will know exactly where she really stands when she talks about tax relief for families."

This follows Hobbs' controversial veto of a Republican tax plan that would have saved residents an estimated $1.1 billion over three years. She rejected it within 24 hours, claiming it favored wealthy corporations while raising taxes on working seniors. She subsequently responded by introducing her own bill.

So, what does this say for Biasiucci's recent legislation?

This legislation will be a test of political will in a divided government.