Gilbert Town Council members expressed serious concerns about the potential elimination of the town's food tax during a legislative update Jan. 2.
The possible repeal could significantly impact the town’s budget, a matter raised by both council members and state representatives in attendance.
Councilmember Jim Torgeson highlighted the gravity of the issue.
“I would hope that if you guys cut revenues to us, whether it be food tax or shared revenues or rental taxes, help us find a way to have a revenue stream to replace it rather than just cutting our budget,” Torgeson told legislators present at the town’s annual legislative breakfast.
He emphasized the town’s reliance on the food tax, which generates over $17 million annually, as one of the few available revenue sources.
State Rep. Laurin Hendrix, R-Gilbert, acknowledged the council’s concerns and noted that while eliminating the food tax isn’t officially on the legislative agenda, it remains a topic of discussion. Hendrix said he expects the legislature to take up the issue again this session.
In March 2023, Gov. Katie Hobbs vetoed Senate Bill 1063, which would have banned cities from levying a food tax. Gilbert’s is at 1.5%.
Torgeson also pointed out Gilbert’s unique financial situation. The town lacks a primary property tax, making it especially vulnerable to state-level revenue cuts.
“Food tax, yes, it’s regressive, but we count on it right now because it's one of the few avenues of revenue that we get,” he said.
He urged the legislature to consider providing relief or alternative revenue options to offset any potential losses.
Town officials noted that the food tax contributes directly to Gilbert’s general fund, which supports critical services, including public safety. The town’s police department budget, which totals around $80 million annually, would be significantly impacted by a reduction in food tax revenues.
We would like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org. Tom Blodgett can be reached by email at tblodgett@iniusa.org or follow him @sp_blodgett on X.
Meet Tom Tom Blodgett joined Independent Newsmedia, Inc., USA, in 2022, when the company acquired Community Impact Newspaper's Phoenix-area properties. Raised in Arizona, he has spent more than 35 years in journalism in the state.
Community: He has served as an instructional professional in the Walter Cronkite School of Journalism and Mass Communication since 2005, and is editorial adviser to The State Press, the university's independent student media outlet. He also is director of operations for an 18U girls fastpitch softball team from Gilbert.
Education: Arizona State University with a BS in Journalism.
Random Fact: He lived in Belgium during his freshman year of high school.
Hobbies: Tweeting enthusiastically about ASU softball (season-ticket holder) and grumpily about other local sports (pessimistic fan).
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