Arizonans have struggled with rising costs since early in the Biden Administration. In fact, the cost of groceries alone are up 11% just since last January. That is one reason so many 2022 candidates campaigned on promises of tackling inflation and providing relief to Arizona families, including many state legislators and Governor Katie Hobbs herself. To their credit, Republican legislators did their part and passed a bill to end the tax on food, but on Wednesday, Democrat Katie Hobbs vetoed the bill and blocked the much anticipated relief for Arizonans struggling with higher costs.
The legislation, sponsored by Rep. Leo Biasiucci and Sen. Sonny Borrelli, would have prohibited cities and towns from placing a sales tax on food, and replaced the revenue lost by the communities with funding from the State’s general fund.
Remember when @KatieHobbs criticized the Phoenix City Council for creating a food tax?
Now, thanks to raking in some municipal lobbyist $, Hobbs wants to allow cities to lap-up food tax revenue at the expense of families who need it most. #AZGov #AZLeghttps://t.co/n2Gfj0wj7q pic.twitter.com/1DrGunCHIz
— Brian Anderson (@AZBrianAnderson) March 28, 2023
Brian Anderson, a political consultant, accurately pointed out in a tweet that while Hobbs was a legislator, she criticized the Phoenix City Council for creating a food tax. However, as Anderson noted, lobbyists for the cities and towns swarmed the Capitol in an aggressive effort to kill the bill, and Hobbs admitted as much in a tweet.
“I’ve heard from dozens of local leaders about the impact this legislation would have on municipalities,” tweeted Hobbs.
I have vetoed SB1063. I’ve heard from dozens of local leaders about the impact this legislation would have on municipalities. 🧵
— Governor Katie Hobbs (@GovernorHobbs) March 28, 2023
The Phoenix Valley saw the nation’s highest inflation rate for metro areas across the country. The consumer price index for Phoenix-Mesa-Scottsdale in October was 12.1% higher than it was in October 2021. The next-highest metro areas were Atlanta, which posted a 10.7% increase, followed by Tampa-St. Petersburg at 10.5% and Miami at 10.1%.
Over the past year, food prices have skyrocketed between 15% and 45% on many items Arizonans rely on to feed their families. Data shows that a family of four on a low-cost grocery budget currently spends about $1,000 per month on food. Right now, 65 cities and towns within Arizona levy a sales tax of up to 4% on food for home consumption. “This veto is a disgraceful windfall for cities and an absolute gouge for families,” said Majority Leader Sonny Borrelli who sponsored the bill.
“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. A tax on our groceries is regressive and hurts everyone. Over the next four fiscal years, cities and towns are estimated to receive an average of $2.3 billion per year in state-shared revenues, which is an increase of $844 million more than the average for the last four fiscal years. And yet the governor vetoed this bill, only padding cities’ bloated budgets instead of leaving more money in the wallets of hardworking taxpayers.”
“Senate Republicans have been working to pass legislation necessary to provide financial relief to all Arizonans, especially low-income families who are feeling the tremendous burden of inflation,” said Senate President Warren Petersen. “It’s very clear the governor has no interest in helping with that financial burden.”
“This veto was partisan and it shouldn’t have been.” said State Representative Steve Montenegro, who supported the bill. “Democrats love to campaign as the party of the poor, but when it is time to actually get government off the backs of our working poor and improve their lives, legislative Democrats vote NO and the Governor vetoes the bill to make sure everyone pays more to put food on their tables. Voters everywhere need to remember these games every time they buy groceries and especially next year at the ballot box.”