Arizona SB1745 limits local excise tax rates and requires voter approval for increases in certain cities.

Arizona SB1745 sets a cap on transaction privilege and excise tax rates in cities with populations over 550,000, limiting them to 2.5%. The bill mandates that any proposed tax increase must be submitted to and approved by the city's qualified electors. If approved by voters during a consolidated election in an even-numbered year, the tax increase is exempt from the rate limit. The bill also allows for the withholding of state shared revenues by the state treasurer if a city violates the tax rate limit, until the violation is resolved. This provision does not apply to ad valorem property taxes.

Arizona SB1745 limits local excise tax rates and requires voter approval for increases in certain cities.

Arizona SB1745 sets a cap on transaction privilege and excise tax rates in cities with populations over 550,000, limiting them to 2.5%. The bill mandates that any proposed tax increase must be submitted to and approved by the city's qualified electors. If approved by voters during a consolidated election in an even-numbered year, the tax increase is exempt from the rate limit. The bill also allows for the withholding of state shared revenues by the state treasurer if a city violates the tax rate limit, until the violation is resolved. This provision does not apply to ad valorem property taxes.