Arizona Gov. Katie Hobbs issued yet another veto on the Republican’s legislative agenda, specifically over proposed tax cuts.
Hobbs did not sign SB 1063 into law, which would have stopped municipalities from taxing groceries starting on June 30, 2025.
Most larger cities in Arizona, like Phoenix and Tucson, do not tax groceries, but many rural communities do as a method to generate tax revenue.
“The bill, originally unveiled as a way to mitigate inflation, does not take effect for more than two years. What’s more, it does nothing for the more than 800,000 Arizonans who use SNAP and WIC benefits for their groceries, as these constituents are already exempt from the tax,” Hobbs said in her veto letter to Senate President Warren Petersen.
The Arizona League of Cities and Towns opposed the legislation, as well as the recently floated legislation scrapping the rent tax in municipalities, according to legislative records. Senate Bill 1184, the rent tax bill, was vetoed by Hobbs on February 23, with her administration dubbing it as a “tax cut bill for landlords,” according to their website.
Hobbs hinted last Friday that she would likely veto the bill.
“This is a tax relief that doesn’t kick in immediately, and I, you know, talked to many city leaders who are very concerned about the impact this will have on their resources, particularly for public safety, particularly in rural communities,” she said.
Republicans criticized the decision as hurting middle-class Arizonans.
“This veto is a disgraceful windfall for cities and an absolute gouge for families,” said Majority Leader Sonny Borrelli, R-Lake Havasu City. “We’re not only paying inflated prices to feed our families, but we’re also paying more in taxes as the cost of food rises. Food is not a luxury; it is a necessity.”
Unless legislative Republicans can convince several House and Senate Democrats to cross Hobbs’, her veto will stand.
Republished with the permission of The Center Square.
