AZ HB2766

Amends Arizona Revised Statutes section 42-6015 to expand municipal tax exemptions on food items for home consumption to exclude candy, confectionaries, soft drinks, and soda from the exemption.

Requires any municipal transaction privilege tax applied to candy, confectionaries, soft drinks, and soda for home consumption to be applied uniformly without additional tax or fee differentials on specific items.

Prohibits cities and towns from levying taxes on the sale of most food items (excluding candy, confectionaries, soft drinks, and soda) intended for human consumption when sold for home consumption.

Maintains existing prohibitions on taxes for food items purchased with USDA food stamps, nutrition assistance program benefits, and low-cost food sold to eligible elderly, homeless, or disabled persons.

Effective December 31, 2025.