Arizona Voters Limit City Grocery Taxes

Proposition 316 requires voter approval for new or higher city grocery taxes and caps any such rate at 2 percent.

Updated on Nov. 10, 2026 in City Hall

Live Poll

Do you support capping local city taxes on groceries at 2 percent?

Arizona voters approved Proposition 316 on November 9, 2026, limiting how cities can tax groceries. Cities will now need voter approval to create a new grocery tax or increase an existing one.

Why it matters

The measure restricts how cities across Arizona can raise revenue from groceries, a tax that directly affects household food costs. Existing local grocery tax rates are not changed by the proposition.

Proposition 316 caps any new or increased city grocery tax at 2 percent and requires voter approval for such changes. Current local grocery tax rates are 1.7% in Yuma, 3.3% in Somerton and 4% in San Luis, and those rates remain unchanged.

The details

Proposition 316 requires cities to get voter approval before creating a new grocery tax or raising an existing one. The restrictions take effect after June 30, 2027, and do not alter rates already in place.

November 9, 2026: Arizona voters approve Proposition 316.
After June 30, 2027: New grocery tax restrictions take effect.

Legal Context

Proposition 316 imposes a 2 percent cap on new or increased city grocery taxes and requires voter approval for such changes across Arizona. The measure sets a statewide ceiling on local grocery taxation going forward.

Residents in Arizona cities will see grocery tax rates stay at current levels unless voters approve any future increase. New or higher city grocery taxes will be capped at 2 percent once the restrictions take effect after June 30, 2027.

The takeaway

Arizona shoppers should watch for ballot measures on local grocery taxes, since new or higher rates now require voter approval and are capped at 2 percent.