By Lora Neu | Casa Grande Dispatch
The Eloy City Council voted Nov.25 to eliminate the city’s 3 percent sales tax on groceries effective July 1.
In late October, council members received the results of a study on the sales tax structure which they authorized last March to be conducted.
The city expects to collect about $100,000 from the tax on food in the current fiscal year.
“A tax on food is the most regressive of all taxes and affects low-income individuals the most because it is a greater percentage of their income,” the report states. A chart showed people with incomes below $15,000 a year spent 19 percent of their income on food, compared to incomes of $40,000 to $49,999 at 7 percent
and $70,000 to $79,999 at 6 percent.
