STATE CAPITOL, PHOENIX – Arizona State Representative Chris Lopez today introduced House Bill 2152 to eliminate the state transaction privilege tax on water and infrastructure improvements made on public and private grazing lands to help ranchers push back on rising food prices.

The legislation applies to essential improvements such as fence lines, fence posts, drinking troughs, water lines, and storage tanks necessary to herd and protect livestock. Ranchers pay for this infrastructure to keep cattle safe on the open range and to provide a dependable water source, which also often benefits wildlife.

“Families are paying more for beef every time they check out at the grocery store,” said Representative Lopez. “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.”

Additionally, under current law, improvements made on federal grazing land become federal property once installed, even though ranchers pay for them. Arizona still applies state sales tax to those purchases, and ranchers receive no reimbursement after ownership transfers.

“At a time when federal land policies already make ranching harder, Arizona should not be adding another layer of cost,” Representative Lopez said.

By eliminating the tax on grazing improvements, the legislation lowers operating costs for ranchers who help manage public lands, support wildlife habitat, and supply beef to Arizona families.

Chris Lopez is a Republican member of the Arizona House of Representatives serving Legislative District 16, which includes portions of Pinal and Pima Counties.