SB1745

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.