AZ HB2638

Prohibits cities and towns with populations of 625,000 or more from imposing any transaction privilege, sales, use, franchise, or similar tax on food items intended for human consumption for home use.

Requires cities and towns with populations under 625,000 that tax food for home consumption to apply the tax uniformly to all food items without assessing differential rates on specific items.

Requires uniform taxation of food for consumption on premises, with no additional tax or fee differentials allowed for specific food items.

Prohibits local taxes on food manufacturing, wholesale, and distribution activities, as well as on containers and packaging used exclusively for food transport and consumption.

Maintains existing exemptions for food purchased with federal nutrition assistance programs (SNAP and WIC benefits) and low-cost food provided to eligible elderly, homeless, or disabled persons through approved supplemental nutrition assistance programs.