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Apache Junction officials warn state food-tax measure could cut millions from city budget
Summary
City staff and councilors discussed HCR 2021, a proposed state referendum to cap or eliminate municipal food taxes, and its projected fiscal impact on Apache Junction’s general fund and departments including public works and public safety.
Rob Whistler, management analyst in the city manager’s office, told the Apache Junction City Council on March 4 that a pending state measure, identified in his presentation as HCR 20‑21, would limit or eliminate cities’ authority to levy local taxes on retail food and could sharply reduce municipal revenue.
“Arizona, we have a transaction privilege tax, TPT,” Whistler said, explaining the state framework that allows municipalities to set local TPT rates on specific categories of transactions. He said the bill originally would have eliminated municipal food taxes entirely; an amendment posted in mid‑February would instead cap municipal retail‑food tax rates at 2 percent.
Whistler ran through the city’s numbers. He said Apache Junction currently imposes a 2.4 percent…
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