By Matthew Holloway |
Arizona State Representative Chris Lopez (R-LD16) introduced legislation aimed at reducing costs for ranchers and, ultimately, consumers at the grocery store.
House Bill 2152, dubbed the “No Tax on Troughs” bill, would eliminate Arizona’s transaction privilege tax on water systems and infrastructure improvements on both public and private grazing lands.
The measure targets essential ranching expenses, including fence lines, fence posts, drinking troughs, water lines, and storage tanks, by exempting them from a tax that Lopez says unnecessarily raises operational costs for livestock producers.
“Families are paying more for beef every time they check out at the grocery store,” Representative Lopez said in a press release announcing the bill’s introduction. “Ranchers are facing higher costs just to keep cattle fenced and hydrated, and Arizona is taxing those costs. That cost gets passed straight to consumers.”
Under current law, improvements to grazing infrastructure on federal grazing land, which become federal property once installed, remain subject to Arizona’s sales tax, with no reimbursement to ranchers after ownership transfers. Lopez’s proposal would end that tax treatment.
“At a time when federal land policies already make ranching harder, Arizona should not be adding another layer of cost,” he added.
The Arizona Farm Bureau has publicly argued that farms and ranches face substantial tax pressures, anticipating a potential $5,125 per year increase if federal agriculture tax provisions lapse. The Bureau added that these strains affect decisions on capital expenses like water systems and fencing.
The proposal comes as ranchers across Arizona continue to face rising operational pressures tied to drought conditions, water access, regulatory requirements, and higher input costs. Agricultural groups have warned that these factors have tightened margins for livestock producers and contributed to higher beef prices nationwide.
Arizona’s transaction privilege tax, which functions as a tax on the privilege of doing business rather than a traditional sales tax, has been the subject of multiple reform efforts in recent years as lawmakers debate exemptions and carve-outs for various industries.
Supporters of HB 2152 argue that reducing tax burdens on ranching infrastructure would help lower costs for producers, support wildlife habitat stewardship on public lands, and provide downstream relief for Arizona families at the grocery store.
Lopez represents Legislative District 16, which includes portions of Pinal and Pima Counties.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
