municipal tax; exemption; food

HB 2766 requires Arizona cities and towns to apply municipal sales taxes uniformly to all food items (without differential rates), while exempting most food for home consumption, food packaging, and sales paid with SNAP benefits. It specifically excludes candy, confectionaries, soft drinks, and soda from the general food exemption, ensuring these remain taxable. The bill also exempts low-cost food sales to vulnerable groups (elderly, homeless, disabled) when purchased using SNAP benefits through approved programs. This amendment, effective January 1, 2026, modifies existing tax code to standardize food taxation and expand specific exemptions.