No Tax on Troughs: Supporting Ranchers and Arizona’s Public Lands

Written by Gabriel Flores (Goverment Relations Intern)

Arizona agriculture doesn’t stop at the fence line. Introduced in January 2026, No Tax on Troughs (House Bill 2152) aims to remove the state transaction privilege tax (TPT) on essential ranching infrastructure. While the bill may sound technical, its impacts extend well beyond agriculture, reaching Arizona’s food system, public lands, and outdoor spaces. We see it here in Arizona that ranching commonly occurs on public lands that are also used for recreation, wildlife habitat, and conservation. By understanding how this bill highlights specific benefits, a brand-new targeted policy change can support ranchers while benefiting the broader public.

"Water for cattle, wildlife, and public lands"

What Is the “No Tax on Troughs” Bill?

House Bill 2152 was introduced by Representative Chris Lopez (R–Casa Grande) and focuses on exempting certain agricultural materials from Arizona’s transaction privilege tax. These materials include:

• Drinking troughs

• Water storage tanks

• Water lines

• Fence lines and fence posts

These improvements are used on both private and public grazing lands and are critical to keeping livestock safely contained and properly watered in Arizona’s desert environment.

Under current law, ranchers pay taxes on these materials—even when they are installed on public lands and ultimately become federal property. HB 2152 proposes removing that tax burden to reduce ranchers' operating costs.

Why This Infrastructure Matters

Infrastructure related to water and fencing is essential to ranching in Arizona. Drinking troughs and water lines guarantee livestock have consistent access to water over large grazing areas in arid environments. Fencing enhances human and animal safety, helps control grazing patterns, and safeguards sensitive areas.

These are permanent, long-term investments. They frequently stay in place for decades after installation and become a part of the public land system, particularly on federal grazing allotments; these improvements remain with the land even if the rancher no longer leases the ground. Although the infrastructure supports more than just livestock, ranchers are responsible for the initial outlay and continuing upkeep, an often pricey dilemma. 

Supporting Wildlife and Recreation on Public Lands

Livestock aren't the only ones who benefit from ranching infrastructure. There are a great number of birds that we observe, elk, deer, antelope, and other wildlife must also drink from stock tanks or water troughs placed for cattle during dry seasons, as these are the only sources of water available in many areas. Fencing can be designed to enable wildlife to pass safely while protecting sensitive habitats. Thus, well-managed grazing via fencing (taxed item) can result in positive benefits such as reduced fire danger and improved soil conditions in areas of improper grazing.

Ranching in Arizona allows for a variety of multiple uses such as hunting, hiking, wildlife watching, and any other form of outdoor recreation as infrastructure has been developed to ensure that wildlife and the environment are sustained for generations to come. Our landscapes can be sustained and continued to be enjoyed by future generations. Ranchers are an important part of public lands upkeep indirectly supporting food chains, and the natural beauty of Arizona.

The Bigger Picture: Food Costs and Supply Chains

Proponents of the bill believe that ultimately, consumers will be impacted by the taxation of essential infrastructure. Ranchers are already facing increased costs related to fuel, labor, feed, and water. Continued costs of infrastructure will have a domino effect on the food industry.

Industry statistics indicate that beef prices skyrocketed in 2025, with some retailers noting a 15-20% price increase in a short period of time. While various factors contribute to food prices, minimizing unnecessary taxes on food production is one method by which policymakers can work to stabilize food prices without subsidies or mandates.

When ranchers are already subject to federal land regulations and market fluctuations, Arizona should not present additional hurdles to food production. - Rep. Lopez

Where the Bill Stands

HB 2152 received its first and second readings in the Arizona House in January 2026 and has been assigned to a committee. While the legislative process is ongoing, the bill has drawn attention from agricultural groups and policymakers seeking practical solutions that support both rural economies and public land stewardship.

Why It Matters for Arizona

At its core, No Tax on Troughs is about recognizing the shared value of agricultural infrastructure. Ranchers are not only producing food, they are maintaining water systems, managing land, and supporting ecosystems that benefit all Arizonans.

By removing taxes on essential, permanent improvements, HB 2152 acknowledges the role agriculture plays in sustaining Arizona’s landscapes, wildlife, and food supply. It is a policy proposal rooted in practicality, partnership, and the long-term health of the state’s public lands.

References

Arizona House Republicans. “Rep. Chris Lopez Introduces ‘No Tax on Troughs’ Bill to Support Arizona Ranchers and Ease Beef Prices.” Arizona House GOP, Jan. 2026.

Arizona Legislature. House Bill 2152: No Tax on Troughs. Arizona State Legislature, 2026, www.azleg.gov.

Meat Institute. U.S. Meat Industry Economic Report. Meat Institute, Oct. 2025.

Spencer, Monica D. “‘No Tax on Troughs’: Locally Backed Bill Aims to Ease Arizona Beef Prices.” InMaricopa, 9 Jan. 2026.