Register | Forgot Your Password? | Close

PHOENIX -- Phoenix city council members are scheduled to vote this week on reducing the food tax from 2 percent to 1 percent.

In 2010, city leaders said an emergency tax on groceries was needed to make up for a budget shortfall, protect police and fire jobs and preserve after-school programs. The city council thus passed a 2 percent tax on food to run from April 1, 2010 to March 31, 2015.

Critics, including Councilman Sal DiCiccio, have been trying to reduce or eliminate the tax. They said the threat to public safety jobs was overblown and point to raises and bonuses that have been given to various city employees.

If council members approve the reduction when they meet on Wednesday, the tax will drop to 1 percent starting on Jan. 1, 2014, and will completely expire on March 31, 2015. In order to reduce the tax, leaders said they need to make sure there is no negative impact to public safety, no reduction in city services and no negative impact to the city's AAA bond rating.

According to a city council report, reducing the tax to 1 percent will decrease revenue by $12.1 million in the fiscal year ending in 2014. City leaders estimated the food tax as it stands will generate $54.45 million over that same span.

Christina Estes, Reporter

share this story:
Attention KTAR.com Comment Users: We have recently changed our comments boards.
We would like you to be part of the conversation and The Voice of Arizona by logging in with your Facebook, Twitter, Google+ or Disqus account. Existing KTAR (Arizona Sports) account members will need to create a Disqus account or use one of the aforementioned social media logins. Thank you.
comments powered by Disqus

World Class Arizona

  • Dignity Health

    World Class People. World Class Company. Excellent care, delivered with compassion, for all in need.

Voice For A Better Arizona

  • Family in Focus

    KTAR spends the week taking a look at the issues a modern Arizona family faces.