A new 2% sales tax on grocery items will be levied in Phoenix beginning April 1 following approval last week by the City Council. The tax is scheduled to expire in five years.

Phoenix residents currently pay an 8.3% sales tax on non-food item purchases, including the city’s 2% sales tax. The new 2% food sales tax is expected to generate $12.5 million in fiscal 2010, which ends June 30, and $50 million in fiscal 2011.

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