Public commenters urge repeal of Chandler’s 1.5% grocery tax; staff warns $17 million annual revenue shortfall

Two residents asked the Chandler City Council on May 7 to repeal the city’s 1.5% transaction-privilege tax on raw groceries and raised related local concerns; city staff responded that the tax is local and that repealing it would reduce ongoing city revenue by about $17 million.

Henry Chen, who identified himself as a registered nurse, urged the council to repeal the tax that he said was first imposed on May 1, 1994. "This tax is deeply regressive. It places the heavier burden on those with the least ability to pay — low-income families, working-class households and seniors on fixed incomes," Chen said, arguing the city’s financial position should allow tax relief.

After the comment, a council member asked whether the grocery tax is a state issue. A staff member replied, "It is not a state issue. It is various cities that have a 1.5% transaction privilege tax on food as well as retail. It falls in the retail category," and added that removing the tax would "reduce the revenue that comes into the city to the tune of about $17,000,000, ongoing." The staff member said the city would need to plan how to replace those revenues if repeal were pursued.

The council entered two comment cards into the record for the meeting (Cindy Barnes and Mr. Chen) and took no formal vote on the tax during the May 7 session. Councilmembers who asked questions expressed interest in understanding legal and budgetary implications; staff indicated further analysis would be required before any action could be taken.