Limit Local Tax Rate on Groceries to 2% of Base Price and Require Voter Approval to Increase Tax Rate Measure
Ballot Measure Process & Food/Beverage Taxes
Summarized
What Would This Do?
Proposition 316 would do two things. First, it would stop cities or local tax jurisdictions from increasing the sales tax on groceries above 2% of the base price. For cities where the tax rate is already above 2%, the rate would not be rolled back, but it could never increase further. Second, it would require any city or local tax jurisdiction seeking to increase the sales tax on groceries to get voter approval before the increase takes effect — and even with voter approval, the rate could never exceed 2%.
Proposition 316 would not affect the state government's ability to levy taxes on groceries. As of 2026, Arizona does not levy a state sales or use tax on groceries.
A “Yes” Vote
A "yes" vote supports prohibiting local governments from imposing or increasing a tax on the sale of groceries without voter approval, and capping the tax rate at 2%.
A “No” Vote
A "no" vote opposes prohibiting local governments from imposing or increasing a tax on the sale of groceries without voter approval and capping the tax rate at 2%, maintaining current law on local taxation.
Official Language
Full Legal Text
Ballot Title & Summary (as filed with the Secretary of State)
Ballot Title
PROPOSITION 316 — REFERRED TO THE PEOPLE BY THE LEGISLATURE RELATING TO MUNICIPAL TRANSACTION PRIVILEGE TAX. OFFICIAL TITLE: AMENDING TITLE 42, CHAPTER 6, ARTICLE 1, SECTION 42-6015, ARIZONA REVISED STATUTES. DESCRIPTIVE TITLE: RETROACTIVELY PROHIBITS LOCAL GOVERNMENTS FROM ADOPTING OR INCREASING A TAX ON GROCERIES WITHOUT VOTER APPROVAL AND SETS A MAXIMUM RATE OF 2%.
Ballot Summary
A "yes" vote shall have the effect of: (1) retroactively prohibiting local governments from adopting or increasing a tax on groceries from July 1, 2025, through June 30, 2027; and (2) after that time, prohibiting local governments from adopting or increasing a tax on groceries without voter approval and limiting any new or increased tax to a maximum rate of 2%. A "no" vote shall have the effect of maintaining the current laws relating to local government taxation.
Support
Officials
State Sen. Warren Petersen (R) · State Rep. Leo Biasiucci (R) · Mayor of Chandler Kevin Hartke (R)
“This is really a thing that I believe in personally. I don't believe that we should be taxing essential foods like eggs and milk and meat. These are the things that every family needs to survive.”
Opposition
Officials
Bisbee Mayor Ken Budge
Organizations
Arizona Municipal Clerks' Association · Civic Engagement Beyond Voting LD3 Democrats Northeastern Maricopa County
“Why should the state be able to tell local governments and their residents how much and how they are willing to be taxed to support their town? Let these decisions be made by the people that are affected, not by state representatives trying to make one size fit all municipalities.”
“Cities depend on sales taxes; particularly rural cities and towns depend on sales taxes for a significant part of their budget, and their hands are tied in terms of what other revenue they collect.”
Verify